<PAGE>
CENTRAL OHIO COAL COMPANY
QUARTERLY REPORT PER REQUIREMENTS
OF HOLDING COMPANY ACT RELEASE NO. 22770
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 1994
CONTENTS
Page
Statements of Income 1
Balance Sheets 2-3
Statements of Retained Earnings 4
Statements of Cost of Commercial Coal Sold and Shipped 5
Analysis of Operating Reserves and
Regulatory Liabilities and Deferred Credits 6
Information Concerning Capital Improvements 7
Analysis of Mining Plant in Service 8
Information Concerning Operations 9
Statements of Cost of Operation 10
Schedule of Changes in Coal Inventory 11
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<TABLE>
CENTRAL OHIO COAL COMPANY
STATEMENTS OF INCOME
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 1994
(UNAUDITED)
<CAPTION>
Three
Months
Month Ended Ended
January 31, February 28, March 31, March 31,
1994 1994 1994 1994
(in thousands)
<S> <C> <C> <C> <C>
OPERATING REVENUES -
Sales to Parent . . . . . . . . $5,838 $8,033 $11,093 $24,964
COST OF OPERATION (including
Depreciation, Depletion and
Amortization of Mining Plant of
$152,000 in January, $156,000
in February and $160,000
in March) . . . . . . . . . . . 5,838 7,815 10,912 24,565
OPERATING INCOME. . . . . . . . . - 218 181 399
NONOPERATING INCOME . . . . . . . 82 96 94 272
INCOME BEFORE INTEREST CHARGES. . 82 314 275 671
INTEREST CHARGES - (including
$4,000 each in January,
February and March
to Parent Company). . . . . . . 4 9 4 17
INCOME BEFORE FEDERAL
INCOME TAXES. . . . . . . . . . 78 305 271 654
FEDERAL INCOME TAX
EXPENSE (CREDIT). . . . . . . . (143) 84 49 (10)
NET INCOME. . . . . . . . . . . . $ 221 $ 221 $ 222 $ 664
The common stock of the Company is
wholly owned by Ohio Power Company.
</TABLE>
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<TABLE>
CENTRAL OHIO COAL COMPANY
BALANCE SHEETS
BY MONTH-END, FOR THE QUARTER ENDED MARCH 31, 1994
(UNAUDITED)
<CAPTION>
January 31, February 28, March 31,
1994 1994 1994
(in thousands)
ASSETS
<S> <C> <C> <C>
MINING PLANT:
Mining Plant in Service . . . . . . . . . . . . $88,624 $87,236 $87,276
Construction Work in Progress . . . . . . . . . 245 316 609
Total Mining Plant . . . . . . . . . . . 88,869 87,552 87,885
Accumulated Depreciation and Amortization . . . 52,530 51,105 51,622
NET MINING PLANT . . . . . . . . . . . . 36,339 36,447 36,263
CURRENT ASSETS:
Cash and Cash Equivalents . . . . . . . . . . . 10,313 10,382 13,038
Accounts Receivable:
General . . . . . . . . . . . . . . . . . . . 916 978 563
Affiliated Companies. . . . . . . . . . . . . 4,146 5,352 6,234
Coal. . . . . . . . . . . . . . . . . . . . . . 3,965 3,582 3,894
Materials and Supplies. . . . . . . . . . . . . 10,748 11,014 10,580
Other . . . . . . . . . . . . . . . . . . . . . 1,078 2,581 2,607
TOTAL CURRENT ASSETS . . . . . . . . . . 31,166 33,889 36,916
DEFERRED FEDERAL INCOME TAXES . . . . . . . . . . 5,132 5,407 5,432
REGULATORY ASSETS:
Amounts Due From Customer For Future
Federal Income Taxes. . . . . . . . . . . . . 4,059 4,013 3,977
Other . . . . . . . . . . . . . . . . . . . . . 1,968 1,827 2,471
TOTAL REGULATORY ASSETS. . . . . . . . . 6,027 5,840 6,448
TOTAL. . . . . . . . . . . . . . . . . $78,664 $81,583 $85,059
</TABLE>
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<TABLE>
CENTRAL OHIO COAL COMPANY
BALANCE SHEETS
BY MONTH-END, FOR THE QUARTER ENDED MARCH 31, 1994
(UNAUDITED)
<CAPTION>
January 31, February 28, March 31,
1994 1994 1994
(in thousands)
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C>
SHAREOWNER'S EQUITY:
Common Stock - Par Value $100:
Authorized - 100,000 Shares
Outstanding - 69,000 Shares . . . . . . . . . $ 6,900 $ 6,900 $ 6,900
Paid-in Capital . . . . . . . . . . . . . . . . 13,069 13,069 13,069
Retained Earnings . . . . . . . . . . . . . . . 568 789 348
TOTAL SHAREOWNER'S EQUITY. . . . . . . . 20,537 20,758 20,317
LONG-TERM DEBT - to Parent Company. . . . . . . . 1,500 1,500 1,500
OTHER NONCURRENT LIABILITIES:
Obligations Under Capital Leases. . . . . . . . 14,260 14,417 14,173
Operating Reserves. . . . . . . . . . . . . . . 9,597 10,165 10,843
TOTAL OTHER NONCURRENT LIABILITIES . . . 23,857 24,582 25,016
CURRENT LIABILITIES:
Accounts Payable:
General . . . . . . . . . . . . . . . . . . . 1,559 2,067 1,537
Affiliated Companies. . . . . . . . . . . . . 668 592 645
Taxes Accrued . . . . . . . . . . . . . . . . . 949 949 1,085
Accrued Reclamation Costs . . . . . . . . . . . 7,282 7,003 7,616
Accrued Vacation Pay. . . . . . . . . . . . . . 876 972 1,067
Accrued Rent. . . . . . . . . . . . . . . . . . 991 1,528 1,103
Accrued Other Postretirement Benefits . . . . . 4,267 4,506 4,768
Obligations Under Capital Leases. . . . . . . . 3,917 3,951 3,879
Other . . . . . . . . . . . . . . . . . . . . . 3,542 3,611 3,543
TOTAL CURRENT LIABILITIES. . . . . . . . 24,051 25,179 25,243
REGULATORY LIABILITIES AND DEFERRED CREDITS . . . 8,719 9,564 12,983
TOTAL. . . . . . . . . . . . . . . . . $78,664 $81,583 $85,059
</TABLE>
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CENTRAL OHIO COAL COMPANY
STATEMENTS OF RETAINED EARNINGS
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 1994
(UNAUDITED)
<CAPTION>
Three
Months
Month Ended Ended
January 31, February 28, March 31, March 31,
1994 1994 1994 1994
(in thousands)
<S> <C> <C> <C> <C>
BALANCE AT BEGINNING OF PERIOD. . $347 $568 $789 $347
NET INCOME. . . . . . . . . . . . 221 221 222 664
CASH DIVIDENDS DECLARED . . . . . - - 663 663
BALANCE AT END OF PERIOD. . . . . $568 $789 $348 $348
</TABLE>
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CENTRAL OHIO COAL COMPANY
STATEMENTS OF COST OF COMMERCIAL COAL SOLD AND SHIPPED
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 1994
<CAPTION>
January February March
1994 1994 1994
(in thousands, except as noted)
<S> <C> <C> <C>
I. Calculation of Cost-of-Capital Compensation:
A. Equity Investment at Beginning of Month:
Common Stock. . . . . . . . . . . . . . . . . . . . . . . . $ 6,900 $ 6,900 $ 6,900
Paid-in Capital (excluding item D and item G) . . . . . . . 450 450 450
7,350 7,350 7,350
B. Rate of Return Allowable per HCAR No. 22770:
14.34% per annum, 1.195% per month. . . . . . . . . . . . . .01195 .01195 .01195
C. Earnings Allowable: (re investment in item A)
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 88 $ 88 $ 88
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 88 $ 176 $ 264
D. Equity Investment - January 1983 (Preparation Plant). . . . . $ 6,431 $ 6,431 $ 6,431
E. Rate of Return Allowable per HCAR No. 22770:
13.01% per annum, 1.0842% per month . . . . . . . . . . . . .010842 .010842 .010842
F. Earnings Allowable: (re investment in item D)
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 70 $ 70 $ 70
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 70 $ 140 $ 210
G. Equity Investment - January 1983 (Other Assets) . . . . . . . $ 6,188 $ 6,188 $ 6,188
H. Rate of Return Allowable per HCAR No. 22770:
12.37% per annum, 1.0308% per month . . . . . . . . . . . . .010308 .010308 .010308
I. Earnings Allowable: (re investment in item G)
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 63 $ 63 $ 64
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 63 $ 126 $ 190
J. Total Earnings Allowable:
1. Current Month (C.1. + F.1. + I.1.) . . . . . . . . . . . $ 221 $ 221 $ 222
2. Year-to-Date (C.2. + F.2. + I.2.). . . . . . . . . . . . $ 221 $ 442 $ 664
K. Net Income per Statements of Income . . . . . . . . . . . . . $ 221 $ 221 $ 222
Add: Interest Charges . . . . . . . . . . . . . . . . . . . 4 9 4
Less: Nonoperating Income . . . . . . . . . . . . . . . . . 82 96 94
L. Applied Cost-of-Capital Billing Adder:
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 143 $ 134 $ 132
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 143 $ 277 $ 409
II. Monthly Billing Calculation:
A. Total Operating Expenses(a) . . . . . . . . . . . . . . . . . $ 5,695 $ 7,899 $ 10,961
B. Add: Monthly Cost-of-Capital Billing
Adder as Applied per L. 1. of Section I . . . . . . . . . . 143 134 132
C. Cost Applicable to Current Month Coal Billings(b) . . . . . . $ 5,838 $ 8,033 $ 11,093
D. Coal Sold and Shipped in Current Month (in tons)(b) . . . . . 95,211 132,616 175,130
E. Average Price per Ton (in dollars) (C/D)(b) . . . . . . . . . $61.32 $60.57 $63.34
(a) As represented by "Cost of Operation" plus "Federal Income Taxes" reported in Statements of Income.
(b) Sales were to the Parent Company - Ohio Power Company for the Muskingum River Plant.
/TABLE
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CENTRAL OHIO COAL COMPANY
ANALYSIS OF OPERATING RESERVES AND REGULATORY LIABILITIES AND DEFERRED CREDITS
BY MONTH-END, FOR THE QUARTER ENDED MARCH 31, 1994
<CAPTION>
January 31, February 28, March 31,
1994 1994 1994
(in thousands)
<S> <C> <C> <C>
Operating Reserves:
Accrued Reclamation Costs . . . . . . . . . . . $9,361 $ 9,942 $ 9,940
Public Liability Insurance. . . . . . . . . . . 20 20 20
Workers' Compensation . . . . . . . . . . . . . 216 203 31
Postemployment Benefits . . . . . . . . . . . . - - 852
Total Operating Reserves. . . . . . . . . . $9,597 $10,165 $10,843
Regulatory Liabilities and Deferred Credits:
Gain on Sale and Leaseback of Plant . . . . . . $7,852 $7,803 $ 7,753
Mining Cost Normalization . . . . . . . . . . . 867 1,755 5,230
Other . . . . . . . . . . . . . . . . . . . . . - 6 -
Total Regulatory Liabilities
and Deferred Credits. . . . . . . . . . . $8,719 $9,564 $12,983
</TABLE>
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CENTRAL OHIO COAL COMPANY
INFORMATION CONCERNING CAPITAL IMPROVEMENTS
FOR THE QUARTER ENDED MARCH 31, 1994
There were no significant changes with regard to the Company's mining
plant during the quarter.
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CENTRAL OHIO COAL COMPANY
ANALYSIS OF MINING PLANT IN SERVICE
AND RELATED ACCUMULATED PROVISIONS FOR
DEPRECIATION AND AMORTIZATION
BY MONTH-END, FOR THE QUARTER ENDED MARCH 31, 1994
<CAPTION>
January 31, 1994 February 28, 1994 March 31, 1994
Net Net Net
Gross Accumulated Carrying Gross Accumulated Carrying Gross Accumulated Carrying
Cost Provisions Amount Cost Provisions Amount Cost Provisions Amount
(in thousands)
Description
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Surface Lands. . . . . . . . . $ 324 $ - $ 324 $ 324 $ - $ 324 $ 324 $ - $ 324
Mining Structures
and Equipment. . . . . . . . 75,456 50,034 25,422 74,081 48,602 25,479 74,137 49,113 25,024
Coal Interests
(net of depletion) . . . . . 9,861 - 9,861 9,848 - 9,848 9,832 - 9,832
Mine Development Costs . . . . 2,983 2,496 487 2,983 2,503 480 2,983 2,509 474
Total Mining Plant in
Service. . . . . . . . . $88,624 $52,530 $36,094 $87,236 $51,105 $36,131 $87,276 $51,622 $35,654
/TABLE
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CENTRAL OHIO COAL COMPANY
INFORMATION CONCERNING OPERATIONS
FOR THE QUARTER ENDED MARCH 31, 1994
There were no significant changes with regard to the Company's operations
during the quarter.
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<TABLE>
CENTRAL OHIO COAL COMPANY
STATEMENTS OF COST OF OPERATION
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 1994
<CAPTION>
Three
Months
January February March Ended
1994 1994 1994 3/31/94
(in thousands)
<S> <C> <C> <C> <C>
Direct Labor-UMW* . . . . . . . . . . . . . . . . $ 165 $ 148 $ 479 $ 792
Indirect Labor-UMW* . . . . . . . . . . . . . . . 581 618 397 1,596
Benefits-UMW* . . . . . . . . . . . . . . . . . . 736 795 1,051 2,582
Salaries and Benefits-Nonunion. . . . . . . . . . 650 556 633 1,839
Operating Supplies. . . . . . . . . . . . . . . . 559 616 898 2,073
Repair Parts and Materials. . . . . . . . . . . . 338 722 734 1,794
Electricity and Other Utilities . . . . . . . . . 416 367 383 1,166
Outside Services-Maintenance, Haulage
and Reclamation . . . . . . . . . . . . . . . . (3) 182 254 433
Taxes Other Than Income Taxes** . . . . . . . . . 177 201 220 598
Rental of Equipment . . . . . . . . . . . . . . . 1,498 1,492 1,499 4,489
Depreciation, Depletion and Amortization. . . . . 152 156 160 468
Coal Contractor Billings. . . . . . . . . . . . . 147 178 186 511
Mining Cost Normalization***. . . . . . . . . . . 867 888 3,475 5,230
Reclamation Cost - Net. . . . . . . . . . . . . . 295 302 611 1,208
Other Production Costs. . . . . . . . . . . . . . 332 211 244 787
Subtotal. . . . . . . . . . . . . . . . . . . . . 6,910 7,432 11,224 25,566
Transfers of Production Costs (to)/from
Coal Inventory. . . . . . . . . . . . . . . . . (1,072) 383 (312) (1,001)
Total . . . . . . . . . . . . . . . . . $5,838 $7,815 $10,912 $24,565
* United Mine Workers of America.
** Excludes FICA, Federal Unemployment and State Unemployment. These costs are
reflected in employee benefits.
*** Represents the deferral/accrual required to establish a selling price based on
forecasted results for the remainder of the year. The amount of mining cost
normalization is established on an "overall" company basis (i.e., not itemized)
and is eliminated by year-end.
</TABLE>
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CENTRAL OHIO COAL COMPANY
SCHEDULE OF CHANGES IN COAL INVENTORY
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 1994
<CAPTION>
January February March
1994 1994 1994
(in thousands)
Coal Stockpile:*
<S> <C> <C> <C>
Ending Inventory. . . . . . . . $ 13 $14 $101
Beginning Inventory . . . . . . 28 13 14
Increase (Decrease) in Coal
Stockpile Inventory . . . . . $(15) $ 1 $ 87
Coal in Process:**
Ending Inventory. . . . . . . . $3,952 $3,568 $3,793
Beginning Inventory . . . . . . 2,865 3,952 3,568
Increase (Decrease) in Coal in
Process Inventory . . . . . . $1,087 $ (384) $ 225
* The production level of coal at the Company has been greater than the demand for coal
at Muskingum River Plant, which has created a raw coal stockpile.
** In connection with its strip-mining operations, the Company defers, as an element of
inventory, costs of removing over-burden. Such deferred costs will be charged to
expense as the uncovered coal is mined and sold.
</TABLE>
