FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------------- ------------
Commission File Number 1-2578
OHIO EDISON COMPANY
(Exact name of Registrant as specified in its charter)
Ohio 34-0437786
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
76 South Main Street, Akron, Ohio 44308
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 216-384-5100
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Yes X No
--- ---
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date:
152,569,437 shares of common stock, $9 par value, outstanding
as of November 3, 1995.
OHIO EDISON COMPANY
TABLE OF CONTENTS
Pages
Part I. Financial Information
Consolidated Statements of Income 1
Consolidated Balance Sheets 2-3
Consolidated Statements of Cash Flows 4
Notes to Consolidated Financial Statements 5-6
Report of Independent Public Accountants 7
Management's Discussion and Analysis of Results
of Operations and Financial Condition 8-10
Part II.Other Information
<TABLE>
PART I. FINANCIAL INFORMATION
OHIO EDISON COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- ---------------------
1995 1994 1995 1994
-------- -------- -------- --------
(In thousands, except per share amounts)
<S> <C> <C> <C> <C>
OPERATING REVENUES $667,013 $614,390 $1,848,585 $1,801,066
-------- -------- ---------- ----------
OPERATING EXPENSES AND TAXES:
Fuel and purchased power 126,589 109,199 346,690 340,826
Nuclear operating costs 73,083 80,021 225,049 235,575
Other operating costs 116,648 102,431 324,546 324,905
-------- -------- ---------- ----------
Total operation and maintenance expenses 316,320 291,651 896,285 901,306
Provision for depreciation 61,473 58,579 174,238 164,918
Amortization of net regulatory assets 6,382 (1,244) 13,009 (7,214)
General taxes 63,436 61,255 183,745 180,361
Income taxes 60,413 52,332 149,092 139,405
-------- -------- ---------- ----------
Total operating expenses and taxes 508,024 462,573 1,416,369 1,378,776
-------- -------- ---------- ----------
OPERATING INCOME 158,989 151,817 432,216 422,290
OTHER INCOME 1,190 5,032 8,016 10,821
-------- -------- ---------- ----------
TOTAL INCOME 160,179 156,849 440,232 433,111
-------- -------- ---------- ----------
NET INTEREST AND OTHER CHARGES:
Interest on long-term debt 61,619 65,638 185,355 195,767
Deferred nuclear unit interest - (2,124) (4,250) (6,383)
Allowance for borrowed funds used during
construction and capitalized interest (1,595) (1,224) (3,898) (3,796)
Other interest expense 5,946 5,167 17,708 13,124
Subsidiary's preferred stock dividend requirements 1,157 1,167 3,618 4,204
-------- -------- ---------- ----------
Net interest and other charges 67,127 68,624 198,533 202,916
-------- -------- ---------- ----------
NET INCOME 93,052 88,225 241,699 230,195
PREFERRED STOCK DIVIDEND REQUIREMENTS 5,349 5,356 16,245 16,316
-------- -------- ---------- ----------
EARNINGS ON COMMON STOCK $ 87,703 $ 82,869 $ 225,454 $ 213,879
======== ======== ========== ==========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 143,750 143,310 143,636 143,168
======== ======== ========== ==========
EARNINGS PER SHARE OF COMMON STOCK $ .61 $ .58 $ 1.57 $ 1.49
===== ===== ====== ======
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK $.375 $.375 $1.125 $1.125
===== ===== ====== ======
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
</TABLE>
- 1 -
<TABLE>
OHIO EDISON COMPANY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<CAPTION>
September 30, December 31,
1995 1994
------------- ------------
(In thousands)
ASSETS
------
<S> <C> <C>
UTILITY PLANT:
In service, at original cost $8,602,933 $8,518,050
Less--Accumulated provision for depreciation 3,044,512 2,910,587
---------- ----------
5,558,421 5,607,463
---------- ----------
Construction work in progress-
Electric plant 157,965 174,970
Nuclear fuel 22,316 52,470
---------- ----------
180,281 227,440
---------- ----------
5,738,702 5,834,903
---------- ----------
OTHER PROPERTY AND INVESTMENTS:
Letter of credit collateralization 277,763 277,763
Other 243,274 197,546
---------- ----------
521,037 475,309
---------- ----------
CURRENT ASSETS:
Cash and cash equivalents 112,566 23,291
Receivables-
Customers (less accumulated provisions of $2,367,000
and $2,517,000, respectively, for uncollectible accounts) 262,685 254,515
Other 45,586 54,713
Materials and supplies, at average cost-
Fuel 33,693 40,528
Other 72,391 81,809
Prepayments 66,111 71,836
---------- ----------
593,032 526,692
---------- ----------
DEFERRED CHARGES:
Regulatory assets 1,967,495 2,005,333
Unamortized sale and leaseback costs 104,134 106,883
Other 51,570 44,844
---------- ----------
2,123,199 2,157,060
---------- ----------
$8,975,970 $8,993,964
========== ==========
</TABLE>
- 2 -
<TABLE>
OHIO EDISON COMPANY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<CAPTION>
September 30, December 31,
1995 1994
------------- ------------
(In thousands)
<S> <C> <C>
CAPITALIZATION AND LIABILITIES
------------------------------
CAPITALIZATION:
Common stockholders' equity-
Common stock, $9 par value, authorized 175,000,000
shares-152,569,437 shares outstanding $1,373,125 $1,373,125
Other paid-in capital 725,646 724,848
Retained earnings 453,484 389,600
Unallocated employee stock ownership plan common
stock - 8,774,025 and 9,076,489 shares, respectively (164,729) (170,376)
---------- ----------
Total common stockholders' equity 2,387,526 2,317,197
Preferred stock-
Not subject to mandatory redemption 277,335 277,335
Subject to mandatory redemption 25,000 25,000
Preferred stock of consolidated subsidiary-
Not subject to mandatory redemption 50,905 50,905
Subject to mandatory redemption 15,000 15,000
Long-term debt 2,877,421 3,166,593
---------- ----------
5,633,187 5,852,030
---------- ----------
CURRENT LIABILITIES:
Currently payable long-term debt 447,300 227,496
Short-term borrowings 89,735 174,642
Accounts payable 89,116 100,884
Accrued taxes 120,619 140,629
Accrued interest 61,970 65,743
Other 212,645 152,856
---------- ----------
1,021,385 862,250
---------- ----------
DEFERRED CREDITS:
Accumulated deferred income taxes 1,797,609 1,799,324
Accumulated deferred investment tax credits 217,528 223,827
Property taxes 108,813 106,458
Other 197,448 150,075
---------- ----------
2,321,398 2,279,684
---------- ----------
COMMITMENTS, GUARANTEES AND
CONTINGENCIES (Note 2) ---------- ----------
$8,975,970 $8,993,964
========== ==========
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral part of these balance sheets.
</TABLE>
- 3 -
<TABLE>
OHIO EDISON COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- -------------------
1995 1994 1995 1994
-------- -------- -------- --------
(In thousands)
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 93,052 $ 88,225 $241,699 $230,195
Adjustments to reconcile net income to net
cash from operating activities-
Provision for depreciation 61,473 58,579 174,238 164,918
Nuclear fuel and lease amortization 19,569 19,028 51,769 51,216
Deferred income taxes, net 7,185 8,499 17,893 23,689
Investment tax credits, net (2,287) (2,009) (6,299) (6,027)
Allowance for equity funds used during construction 1,315 (1,094) - (4,160)
Deferred fuel costs, net 65 (6,423) 6,082 (6,105)
Receivables (6,434) 23,956 957 27,617
Materials and supplies 12,527 3,697 16,253 6,268
Accounts payable (5,577) (47,304) (5,491) (12,822)
Other 98,151 47,426 81,174 47,948
-------- -------- -------- --------
Net cash provided from operating activities 279,039 192,580 578,275 522,737
-------- -------- -------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
New Financing-
Long-term debt 126,397 93,167 253,620 324,964
Short-term borrowings, net - 136,758 - 125,535
Redemptions and Repayments-
Preferred stock - 6,000 - 56,362
Long-term debt 121,860 216,782 329,155 356,256
Short-term borrowings, net 141,215 - 84,907 -
Dividend Payments-
Common stock 47,882 54,684 163,267 163,101
Preferred stock 5,329 5,533 16,063 16,678
-------- -------- -------- --------
Net cash used for financing activities 189,889 53,074 339,772 141,898
-------- -------- -------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions 35,055 60,895 128,991 206,265
Letter of credit collateralization deposit - 77,763 - 277,763
Other 1,896 1,849 20,237 9,351
-------- -------- -------- --------
Net cash used for investing activities 36,951 140,507 149,228 493,379
-------- -------- -------- --------
Net increase (decrease) in cash and cash equivalents 52,199 (1,001) 89,275 (112,540)
Cash and cash equivalents at beginning of period 60,367 48,151 23,291 159,690
-------- -------- -------- --------
Cash and cash equivalents at end of period $112,566 $ 47,150 $112,566 $ 47,150
======== ======== ======== ========
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
</TABLE> - 4 -
OHIO EDISON COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1 - FINANCIAL STATEMENTS:
The condensed consolidated financial statements reflect
all normal recurring adjustments that, in the opinion of
management, are necessary to fairly present results of operations
for the interim periods. These statements should be read in
conjunction with the consolidated financial statements and notes
included in Ohio Edison Company's (Company) 1994 Annual Report to
Stockholders. The results of operations are not intended to be
indicative of results of operations for any future period.
2 - COMMITMENTS, GUARANTEES AND CONTINGENCIES:
Construction Program --
The Company and its wholly owned subsidiary, Pennsylvania
Power Company (Companies), currently forecast expenditures of
approximately $800,000,000 for property additions and improvements
from 1995-1999, of which approximately $180,000,000 is applicable
to 1995. The Companies' nuclear fuel investments are expected to be
approximately $149,000,000 during the 1995-1999 period, of which
approximately $17,000,000 is applicable to 1995.
Guarantees --
The Companies, together with the other Central Area Power
Coordination Group companies, have each severally guaranteed
certain debt and lease obligations in connection with a coal supply
contract for the Bruce Mansfield Plant. As of September 30, 1995,
the Companies' share of the guarantees were $72,851,000. The price
under the coal supply contract, which includes certain minimum
payments, has been determined to be sufficient to satisfy the debt
and lease obligations.
Environmental Matters --
Various federal, state and local authorities regulate the
Companies with regard to air and water quality and other
environmental matters. The Companies have estimated additional
capital expenditures for environmental compliance of approximately
$70,000,000 for the period 1995 through 1999, which is included in
the construction forecast under "Construction Program."
The Clean Air Act Amendments of 1990 required significant
reductions of sulfur dioxide (SO2) and nitrogen oxides (NOx) from
the Companies' coal-fired generating units by 1995 and additional
- 5 -
OHIO EDISON COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)
(Unaudited)
emission reductions by 2000. SO2 reductions for the years
1995 through 1999 are being achieved by burning lower-sulfur fuel,
generating more electricity from lower-emitting plants and/or
purchasing emission allowances. Equipment already installed
provides NOx reductions sufficient to meet the 1995 requirements.
Plans for complying with reductions required for the year 2000 and
thereafter have not been finalized. The Environmental Protection
Agency (EPA) is conducting additional studies which could indicate
the need for additional NOx reductions from the Companies'
Pennsylvania facilities by the year 2003. The cost of such
reductions, if required, may be substantial. The Company continues
to evaluate its compliance plans and other compliance options.
The Companies are required to meet federally approved SO2
regulations. Violations of such regulations can result in shutdown
of the generating unit involved, and/or civil or criminal penalties
of up to $25,000 for each day the unit is in violation. The EPA has
an interim enforcement policy for SO2 regulations in Ohio that
allows for compliance based on a 30-day averaging period. The EPA
has proposed regulations that could change the interim enforcement
policy, including the method of determining compliance with
emission limits. The Companies cannot predict what action the EPA
may take in the future with respect to the proposed regulations or
the interim enforcement policy.
The Pennsylvania Department of Environmental Resources
has issued regulations dealing with the storage, treatment,
transportation and disposal of residual waste such as coal ash and
scrubber sludge. These regulations impose additional requirements
relating to permitting, ground water monitoring, leachate
collection systems, closure, liability insurance and operating
matters. The Companies are considering various compliance options
but are presently unable to determine the ultimate increase in
capital and operating costs at existing sites.
Legislative, administrative and judicial actions will
continue to change the way that the Companies must operate in order
to comply with environmental laws and regulations. With respect to
any such changes and to the environmental matters described above,
the Companies expect that any resulting additional capital costs
which may be required, as well as any required increase in
operating costs, would ultimately be recovered from their
customers.
- 6 -
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Ohio Edison Company:
We have reviewed the accompanying consolidated balance
sheet of Ohio Edison Company (an Ohio corporation) and subsidiaries
as of September 30, 1995, and the related consolidated statements
of income and cash flows for the three-month and nine-month periods
ended September 30, 1995 and 1994. These financial statements are
the responsibility of the Company's management.
We conducted our review in accordance with standards
established by the American Institute of Certified Public
Accountants. A review of interim financial information consists
principally of applying analytical procedures to financial data and
making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards,
the objective of which is the expression of an opinion regarding
the financial statements taken as a whole. Accordingly, we do not
express such an opinion.
Based on our review, we are not aware of any material
modifications that should be made to the financial statements
referred to above for them to be in conformity with generally
accepted accounting principles.
We have previously audited, in accordance with generally
accepted auditing standards, the consolidated balance sheet and
consolidated statement of capitalization of Ohio Edison Company and
subsidiaries as of December 31, 1994, and the related consolidated
statements of income, retained earnings, capital stock and other
paid-in capital, cash flows and taxes for the year then ended (not
presented separately herein). In our opinion, the information set
forth in the accompanying consolidated balance sheet as of December
31, 1994, is fairly stated, in all material respects, in relation
to the balance sheet from which it has been derived.
ARTHUR ANDERSEN LLP
Cleveland, Ohio
November 3, 1995
- 7 -
OHIO EDISON COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Results of Operations
Earnings on common stock increased to $1.57 per share for
the nine month period ended September 30, 1995, from $1.49 per
share in the same period of 1994. Earnings increased to $.61 per
share in the third quarter of 1995 compared to $.58 per share for
the same period last year. The improved earnings were due to record
retail sales for the quarter and year to date periods in
conjunction with continuing cost reductions that partially offset
the increased maintenance expenses discussed below.
During the first nine months of 1995, retail kilowatt-hour
sales increased 3.5% over the same period last year. Residential
and commercial sales increased 2.9% and 2.0%, respectively, during
this period. An improving local economy pushed industrial sales up
5.0% compared to the nine month period ended September 30, 1994.
The Company began supplying 300 megawatts of power to another
utility in the second quarter of 1995 under a short-term contract
that expires at the end of 1995. This contract contributed to a
16.6% increase in sales to other utilities during the period. This
increase coupled with the higher level of retail sales caused total
kilowatt-hour sales to increase by 5.8% during the first nine
months of 1995.
Warmer than normal temperatures during the third quarter
of 1995 and an improving local economy contributed to a 9.9%
increase in retail kilowatt-hour sales. Residential and commercial
sales increased 13.7% and 5.1%, respectively, compared to the same
period last year. A 10.7% increase in industrial sales was
favorably impacted by the resumption of operations by two major
customers that had reduced operations in 1994. Excluding sales to
these customers, industrial sales were 4.9% higher than last year's
level. Sales to other utilities increased 43.0% during the period
as a result of the short-term contract discussed above. Total
kilowatt-hour sales were up 15.4% during the quarter.
Fuel and purchased power costs were higher during the three
and nine months ended September 30, 1995 due primarily to increased
sales. Nuclear expenses were lower in the first nine months of 1995
than they were last year because of corrective maintenance work
that was being performed during the scheduled refueling outage at
the Perry Plant in 1994. Expenses associated with scheduled
maintenance outages at other generating units contributed to the
increase in other operating costs during the third quarter of 1995,
compared to last year.
- 8 -
OHIO EDISON COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION (Cont'd)
Increased depreciation charges in 1995 reflect a higher
level of depreciable utility plant combined with an increase in the
accrual for nuclear decommissioning costs. The change in
amortization of net regulatory assets resulted from the absence of
credits in 1995 compared to last year due to limitations contained
in the Company's Rate Stabilization and Service Area Development
Program authorized by the Public Utilities Commission of Ohio
(PUCO) in 1992. Amortization of these credits will continue in the
fourth quarter of 1995 as a result of the Company's Rate Reduction
and Economic Development Plan which is discussed below. In
addition, the Company discontinued deferring postretirement
benefits in the third quarter of 1995 due to the rate plan filing.
Overall, interest costs were lower during the first nine
months of 1995 than the same period last year. Interest on long-
term debt decreased due to refinancing and redemption of higher-
cost debt that occurred subsequent to September 30, 1994. Other
interest expense increased compared to last year due primarily to
higher levels of short-term borrowings. The Company also
discontinued deferring nuclear unit interest in the third quarter
of 1995 in connection with its rate plan filing.
Capital Resources and Liquidity
The Companies have continuing cash requirements for
planned capital expenditures and debt maturities. During the fourth
quarter of 1995, capital requirements for property additions and
capital leases are expected to be about $65,000,000, including
$4,000,000 for nuclear fuel. The Companies have additional cash
requirements of approximately $13,000,000 to meet maturities of
long-term debt during the remainder of 1995. These cash
requirements are expected to be satisfied with internal cash and/or
short-term credit arrangements.
As of September 30, 1995, the Companies had about
$113,000,000 of cash and temporary investments. Of that amount,
$74,250,000 was held in escrow for the redemption of pollution
control obligations discussed below. The Companies also had
approximately $90,000,000 of short-term indebtedness. The Company
had the capability to borrow approximately $127,000,000 as of
September 30, 1995 through OES Fuel credit facilities. In addition,
the Companies had $52,000,000 of unused short-term bank lines of
credit, and $45,000,000 of bank facilities that provide for
borrowings on a short-term basis at the banks' discretion. OES
Capital had approximately $30,000,000 of unused, short-term
borrowing capability as of September 30, 1995.
- 9 -
OHIO EDISON COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION (Cont'd)
In July 1995, the Company issued $60,000,000 of 7.05%
pollution control notes under a forward refunding arrangement. The
proceeds from that issue were used to refund $60,000,000 of 10.5%
pollution control notes on October 1, 1995. The Company also repaid
at maturity $75,000,000 of 9.44% term notes subsequent to the end
of the third quarter. During September 1995, Penn Power issued
$14,250,000 of 6% pollution control notes. The proceeds from that
issue were used to redeem a like amount of 8.125% pollution control
notes on October 1, 1995. Penn Power also optionally redeemed
$6,500,000 of 7.625% first mortgage bonds during the third quarter.
During October 1995, the Company, through the Ohio Edison
Financing Trust, issued $120,000,000 of 9% Trust Preferred Capital
Securities. Proceeds from that issue will be used to retire
$116,370,000 of preferred stock with a weighted average dividend
rate of 7.65%. This refinancing is expected to result in annualized
cash savings of approximately $2,200,000 per year.
On October 18, 1995, the PUCO approved the Company's
Comprehensive Rate Reduction and Economic Development Plan (Plan).
The Plan is designed to enhance and accelerate economic development
within the Company's service area and to assure the Company's
customers of long-term competitive pricing for energy services.
The Plan, which is effective November 1, 1995, provides for
freezing the Company's base electric rates until January 1, 2006,
at which time base electric rates will be reduced by approximately
$300,000,000, or 20 percent, on an annual basis. During the ten-
year rate freeze period, which will remain in effect unless certain
significant events occur, transition rate credits will be
implemented for customers served under the Company's General
Service-Large rates (primarily industrial customers). Also, the
monthly customer charge will be reduced for customers served under
the Company's General Service-Secondary and Residential rates.
Taken together, these transition rate credits are expected to
reduce operating revenues by approximately $600,000,000 during the
ten-year rate freeze period.
A major component of the Plan is the Company's commitment
to reduce fixed costs during the ten-year period by implementing
regulatory accounting modifications, such as accelerating
depreciation of generating assets and increasing amortization of
regulatory assets which are being recovered from customers. The
Company has established aggressive targets to reduce costs and
increase revenue opportunities through its performance initiatives
program. Achieving those targets enables the Company to implement
- 10 -
OHIO EDISON COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION (Cont'd)
these accounting modifications and offer the transition rate
credits during the Plan period, and preserve the opportunity to
maintain a reasonable return to shareholders. The Plan includes a
cap (based upon the most recent common equity return authorized for
the Company by the PUCO) on the amount the Company may earn
applicable to its common stockholders in any calendar year during
the Plan period. If the cap is exceeded, such excess will be
credited to customers in a future period.
In connection with proceedings before the Federal Energy
Regulatory Commission (FERC) between Penn Power and one of its
municipal customers, both parties have filed proposals with the
FERC requesting it to establish final terms. No ruling has yet been
issued. Sales to this municipality were approximately $1,468,000
for the year 1994.
- 11 -
PART II. OTHER INFORMATION
Item 1.Legal Proceedings
Reference is made to "Item 3. Legal Proceedings" in the Company's
Annual Report on Form 10-K for the year ended December 31, 1994,
for a discussion of an adverse decision in a Central Area Power
Coordination Group (CAPCO) suit against Westinghouse Electric
Corporation. In September 1995, the United States Court of Appeals
for the Third Circuit upheld the decision in an appeal by the CAPCO
companies.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits
Exhibit
Number
-------
15 Letter from independent public accountants.
Pursuant to paragraph (b)(4)(iii)(A) of Item 601 of Regulation S-K,
the Company has not filed as an exhibit to this Form 10-Q any
instrument with respect to long-term debt if the total amount of
securities authorized thereunder does not exceed 10% of the total
assets of the Company and its subsidiaries on a consolidated basis,
but hereby agrees to furnish to the Commission on request any such
documents.
(b) Reports on Form 8-K
The Company filed one report on Form 8-K since June 30, 1995. A
report dated September 7, 1995, reported the filing of an
application with the Public Utilities Commission of Ohio for
authority to implement the Company's Comprehensive Rate Reduction
and Economic Development Plan.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
November 3, 1995
OHIO EDISON COMPANY
-------------------
Registrant
/s/ H. P. Burg
------------------------
H. P. Burg
Senior Vice President and
Chief Financial Officer
<PAGE>
EXHIBIT 15
Ohio Edison Company
76 South Main Street
Akron, Ohio 44308
Gentlemen:
We are aware that Ohio Edison Company has incorporated by reference
in previously filed Registration Statements No. 33-49135, No. 33-
49259, No. 33-49413 and No. 33-51139, the Company's Quarterly
Report on Form 10-Q for the quarter ended September 30, 1995, which
includes our report dated November 3, 1995, covering the unaudited
interim consolidated financial statements contained therein.
Pursuant to Rule 436(c) of Regulation C of the Securities Act of
1933, such report is not considered a part of the Registration
Statements prepared or certified by our firm or a report prepared
or certified by our firm within the meaning of Sections 7 and 11 of
the Act.
Very truly yours,
ARTHUR ANDERSEN LLP
Cleveland, Ohio
November 3, 1995
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
(Amounts in 1,000's, except earnings per share)
Income tax expense includes $5,733,000 related to other income.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 5,738,702
<OTHER-PROPERTY-AND-INVEST> 521,037
<TOTAL-CURRENT-ASSETS> 593,032
<TOTAL-DEFERRED-CHARGES> 2,123,199
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 8,975,970
<COMMON> 1,373,125
<CAPITAL-SURPLUS-PAID-IN> 560,917
<RETAINED-EARNINGS> 453,484
<TOTAL-COMMON-STOCKHOLDERS-EQ> 2,387,526
40,000
328,240
<LONG-TERM-DEBT-NET> 2,877,421
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 89,735
<LONG-TERM-DEBT-CURRENT-PORT> 441,354
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 5,946
<OTHER-ITEMS-CAPITAL-AND-LIAB> 2,805,748
<TOT-CAPITALIZATION-AND-LIAB> 8,975,970
<GROSS-OPERATING-REVENUE> 1,848,585
<INCOME-TAX-EXPENSE> 154,825
<OTHER-OPERATING-EXPENSES> 1,267,277
<TOTAL-OPERATING-EXPENSES> 1,416,369
<OPERATING-INCOME-LOSS> 432,216
<OTHER-INCOME-NET> 8,016
<INCOME-BEFORE-INTEREST-EXPEN> 440,232
<TOTAL-INTEREST-EXPENSE> 198,533
<NET-INCOME> 241,699
16,245
<EARNINGS-AVAILABLE-FOR-COMM> 225,454
<COMMON-STOCK-DIVIDENDS> 161,570
<TOTAL-INTEREST-ON-BONDS> 185,355
<CASH-FLOW-OPERATIONS> 578,275
<EPS-PRIMARY> 1.57
<EPS-DILUTED> 1.57
</TABLE>
