<PAGE>
WINDSOR COAL COMPANY
QUARTERLY REPORT PER REQUIREMENTS
OF HOLDING COMPANY ACT RELEASE NO. 22179
BY MONTH, FOR THE QUARTER ENDED SEPTEMBER 30, 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 Deferred Credits
and Regulatory Liabilities 6
Information Concerning Capital Improvements 7
Analysis of Mining Plant in Service 8
Information Concerning Operations 9
Statements of Cost of Operation 10
<PAGE>
<TABLE>
WINDSOR COAL COMPANY
STATEMENTS OF INCOME
BY MONTH, FOR THE QUARTER ENDED SEPTEMBER 30, 1994
(UNAUDITED)
<CAPTION>
Three
Months
Month Ended Ended
July 31, August 31, September 30, September 30,
1994 1994 1994 1994
(in thousands)
<S> <C> <C> <C> <C>
OPERATING REVENUES -
Sales to Affiliated Companies . $1,309 $1,966 $3,577 $6,852
COST OF OPERATION (including
Depreciation, Depletion and
Amortization of Mining Plant
of $100,000 in July,
$106,000 in August
and $107,000 in September). . . 1,099 1,754 3,376 6,229
OPERATING INCOME. . . . . . . . . 210 212 201 623
NONOPERATING INCOME . . . . . . . - - 1 1
INCOME BEFORE INTEREST CHARGES. . 210 212 202 624
INTEREST CHARGES -
to Parent Company . . . . . . . 1 1 1 3
INCOME BEFORE FEDERAL
INCOME TAXES. . . . . . . . . . 209 211 201 621
FEDERAL INCOME TAXES. . . . . . . 95 97 88 280
NET INCOME. . . . . . . . . . . . $ 114 $ 114 $ 113 $ 341
The common stock of the Company is
wholly owned by Ohio Power Company.
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<TABLE>
WINDSOR COAL COMPANY
BALANCE SHEETS
BY MONTH-END, FOR THE QUARTER ENDED SEPTEMBER 30, 1994
(UNAUDITED)
<CAPTION>
July 31, August 31, September 30,
1994 1994 1994
(in thousands)
<S> <C> <C> <C>
ASSETS
MINING PLANT:
Mining Plant in Service . . . . . . . . . . . . $66,148 $66,140 $66,126
Construction Work in Progress . . . . . . . . . 332 352 372
Total Mining Plant . . . . . . . . . . . 66,480 66,492 66,498
Accumulated Depreciation and Amortization . . . 25,055 25,370 25,679
NET MINING PLANT . . . . . . . . . . . . 41,425 41,122 40,819
CURRENT ASSETS:
Cash and Cash Equivalents . . . . . . . . . . . 21 34 20
Accounts Receivable:
General . . . . . . . . . . . . . . . . . . . 97 103 119
Affiliated Companies. . . . . . . . . . . . . 366 3 40
Coal. . . . . . . . . . . . . . . . . . . . . . 160 379 594
Materials and Supplies. . . . . . . . . . . . . 3,752 3,737 3,768
Other . . . . . . . . . . . . . . . . . . . . . 271 345 354
TOTAL CURRENT ASSETS . . . . . . . . . . 4,667 4,601 4,895
REGULATORY ASSETS . . . . . . . . . . . . . . . . 5,740 7,516 6,945
TOTAL. . . . . . . . . . . . . . . . . $51,832 $53,239 $52,659
</TABLE>
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<TABLE>
WINDSOR COAL COMPANY
BALANCE SHEETS
BY MONTH-END, FOR THE QUARTER ENDED SEPTEMBER 30, 1994
(UNAUDITED)
<CAPTION>
July 31, August 31, September 30,
1994 1994 1994
(in thousands)
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
SHAREOWNER'S EQUITY:
Common Stock - Par Value $100:
Authorized - 5,000 Shares
Outstanding - 4,064 Shares. . . . . . . . . . $ 406 $ 406 $ 406
Paid-in Capital . . . . . . . . . . . . . . . . 10,470 10,470 10,470
Retained Earnings . . . . . . . . . . . . . . . 815 929 1,042
TOTAL SHAREOWNER'S EQUITY. . . . . . . . 11,691 11,805 11,918
LONG-TERM DEBT:
Finance Obligations . . . . . . . . . . . . . . 8,958 8,911 8,911
Advances from Parent Company. . . . . . . . . . 225 225 225
TOTAL LONG-TERM DEBT . . . . . . . . . . 9,183 9,136 9,136
OTHER NONCURRENT LIABILITIES:
Obligations Under Capital Leases. . . . . . . . 3,440 3,273 3,108
Operating Reserves. . . . . . . . . . . . . . . 1,414 1,488 1,550
TOTAL OTHER NONCURRENT LIABILITIES . . . 4,854 4,761 4,658
CURRENT LIABILITIES:
Long-term Debt Due Within One Year. . . . . . . 567 567 570
Short-term Debt . . . . . . . . . . . . . . . . 51 51 -
Accounts Payable:
General . . . . . . . . . . . . . . . . . . . 605 785 608
Affiliated Companies. . . . . . . . . . . . . 173 201 175
Accrued Vacation Pay. . . . . . . . . . . . . . 626 663 677
Workers' Compensation Claims. . . . . . . . . . 2,138 2,119 2,086
Accrued Other Postretirement Benefits . . . . . 3,492 3,693 3,786
Obligations Under Capital Leases. . . . . . . . 2,063 2,058 2,052
Other . . . . . . . . . . . . . . . . . . . . . 2,309 2,094 1,101
TOTAL CURRENT LIABILITIES. . . . . . . . 12,024 12,231 11,055
DEFERRED CREDITS AND REGULATORY LIABILITIES . . . 14,080 15,306 15,892
TOTAL. . . . . . . . . . . . . . . . . $51,832 $53,239 $52,659
</TABLE>
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<TABLE>
WINDSOR COAL COMPANY
STATEMENTS OF RETAINED EARNINGS
BY MONTH, FOR THE QUARTER ENDED SEPTEMBER 30, 1994
(UNAUDITED)
<CAPTION>
Three
Months
Month Ended Ended
July 31, August 31, September 30, September 30,
1994 1994 1994 1994
(in thousands)
<S> <C> <C> <C> <C>
BALANCE AT BEGINNING OF PERIOD. . $701 $815 $ 929 $ 701
NET INCOME. . . . . . . . . . . . 114 114 113 341
BALANCE AT END OF PERIOD. . . . . $815 $929 $1,042 $1,042
</TABLE>
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<TABLE>
WINDSOR COAL COMPANY
STATEMENTS OF COST OF COMMERCIAL COAL SOLD AND SHIPPED
BY MONTH, FOR THE QUARTER ENDED SEPTEMBER 30, 1994
<CAPTION>
July August September
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. . . . . . . . . . . . . . . . . . . . . . . . $ 406 $ 406 $ 406
Paid-in Capital (excluding item D). . . . . . . . . . . . . 8,353 8,353 8,353
Excess of Acquisition Cost Over Net Book Value. . . . . . . 172 172 172
8,931 8,931 8,931
B. Rate of Return Allowable per HCAR No. 22179:
12.04% per annum, 1.0033% per month (a) . . . . . . . . . . .010033 .010033 .010033
C. Earnings Allowable on Equity Investment
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 90 $ 90 $ 89
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 627 $ 717 $ 806
D. Equity Investment for the month of December 1982 . . . . . . . $ 2,117 $ 2,117 $ 2,117
E. Rate of Return Allowable per HCAR No. 22179:
13.58% per annum, 1.1317% per month . . . . . . . . . . . . .011317 .011317 .011317
F. Earnings Allowable: (re investment in item D)
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 24 $ 24 $ 24
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 168 $ 192 $ 216
G. Total Earnings Allowable:
1. Current Month (C.1. + F.1.). . . . . . . . . . . . . . . $ 114 $ 114 $ 113
2. Year-to-Date (C.2. + F.2.) . . . . . . . . . . . . . . . $ 795 $ 909 $ 1,022
H. Net Income per Statements of Income. . . . . . . . . . . . . . $ 114 $ 114 $ 113
Add: Interest Charges . . . . . . . . . . . . . . . . . . . 1 1 1
Less: Nonoperating Income (Loss). . . . . . . . . . . . . . - - 1
I. Applied Cost-of-Capital Billing Adder:
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 115 $ 115 $ 113
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 810 $ 925 $ 1,038
II. Monthly Billing Calculation:
A. Total Operating Expense (b). . . . . . . . . . . . . . . . . . $ 1,194 $ 1,851 $ 3,464
B. Add: Monthly Cost-of Capital Billing
Adder as Applied per I. 1. of Section I. . . . . . . . . . . 115 115 113
C. Cost Applicable to Coal Sold and Shipped (c) . . . . . . . . . $ 1,309 $ 1,966 $ 3,577
D. Coal Sold and Shipped in Current Month (in tons) (c) . . . . . 33,166 46,636 45,996
E. Average Price per Ton Sold and Shipped (in dollars) (C/D) (c). $39.47 $42.17 $77.77
(a) HCAR No. 22179 pertains to only a portion of the equity investment ($7,497,000), however, the approved rate
is being applied to Ohio Power Company's full equity investment, excluding retained earnings.
(b) As represented by "Cost of Operation" plus "Federal Income Taxes" reported in Statements of Income.
(c) Sales were to an affiliated company for the Cardinal Plant.
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<TABLE>
WINDSOR COAL COMPANY
ANALYSIS OF OPERATING RESERVES AND DEFERRED CREDITS AND REGULATORY LIABILITIES
BY MONTH-END, FOR THE QUARTER ENDED SEPTEMBER 30, 1994
<CAPTION>
July 31, August 31, September 30,
1994 1994 1994
(in thousands)
<S> <C> <C> <C>
Operating Reserves:
Workers' Compensation . . . . . . . . . . . . . $ 756 $ 830 $ 892
Postemployment Benefits . . . . . . . . . . . . 655 655 655
Public Liability Insurance. . . . . . . . . . . 3 3 3
Total Operating Reserves. . . . . . . . . . $1,414 $1,488 $1,550
Deferred Credits and Regulatory Liabilities:
Federal Income Taxes. . . . . . . . . . . . . . $ 4,750 $ 4,602 $ 4,451
Amounts Due to Customers For Future
Federal Income Taxes. . . . . . . . . . . . . 3,880 3,914 3,942
Receipts for Future Coal Deliveries . . . . . . 5,265 6,601 7,307
West Liberty Portal Regulatory Liability. . . . 185 189 192
Total Deferred Credits and
Regulatory Liabilities. . . . . . . . . . $14,080 $15,306 $15,892
</TABLE>
<PAGE>
WINDSOR COAL COMPANY
INFORMATION CONCERNING CAPITAL IMPROVEMENTS
FOR THE QUARTER ENDED SEPTEMBER 30, 1994
There were no significant changes with regard to the Company's mining plant
during the quarter.
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<TABLE>
WINDSOR COAL COMPANY
ANALYSIS OF MINING PLANT IN SERVICE
AND RELATED ACCUMULATED PROVISIONS FOR
DEPRECIATION AND AMORTIZATION
BY MONTH-END, FOR THE QUARTER ENDED SEPTEMBER 30, 1994
<CAPTION>
July 31, 1994 August 31, 1994 September 30, 1994
Net Net Net
Gross Accumulated Carrying Gross Accumulated Carrying Gross Accumulated Carrying
Cost Provisions Amount Cost Provisions Amount Cost Provisions Amount
(in thousands)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Description
Surface Lands. . . . . $ 638 $ - $ 638 $ 638 $ - $ 638 $ 638 $ - $ 638
Mining Structures
and Equipment. . . . 53,138 22,083 31,055 53,137 22,386 30,751 53,131 22,683 30,448
Coal Interests
(net of depletion) . 2,331 - 2,331 2,324 - 2,324 2,316 - 2,316
Mine Development Costs 10,041 2,972 7,069 10,041 2,984 7,057 10,041 2,996 7,045
Total Mining Plant
in Service . . . $66,148 $25,055 $41,093 $66,140 $25,370 $40,770 $66,126 $25,679 $40,447
</TABLE>
<PAGE>
WINDSOR COAL COMPANY
INFORMATION CONCERNING OPERATIONS
FOR THE QUARTER ENDED SEPTEMBER 30, 1994
There were no significant changes with regard to the Company's operations
during the quarter.
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<TABLE>
WINDSOR COAL COMPANY
STATEMENTS OF COST OF OPERATION
BY MONTH, FOR THE QUARTER ENDED SEPTEMBER 30, 1994
<CAPTION>
Three
Months
July August September Ended
1994 1994 1994 9/30/94
(in thousands)
<S> <C> <C> <C> <C>
Direct Labor-UMW* . . . . . . . . . . . . . . . .$ 96 $ 155 $ 152 $ 403
Indirect Labor-UMW* . . . . . . . . . . . . . . . 283 421 401 1,105
Benefits-UMW* . . . . . . . . . . . . . . . . . . 545 508 458 1,511
Salaries and Benefits-Nonunion. . . . . . . . . . 518 600 520 1,638
Operating Supplies. . . . . . . . . . . . . . . . 179 216 266 661
Repair Parts and Materials. . . . . . . . . . . . 295 369 344 1,008
Electricity and Other Utilities . . . . . . . . . 112 120 137 369
Outside Services-Maintenance, Haulage
and Reclamation . . . . . . . . . . . . . . . . 324 333 237 894
Taxes Other Than Federal Income Taxes** . . . . . 201 223 222 646
Rental of Equipment . . . . . . . . . . . . . . . 415 418 416 1,249
Depreciation, Depletion and Amortization. . . . . 100 106 107 313
Royalties . . . . . . . . . . . . . . . . . . . . 15 19 19 53
Mining Cost Normalization***. . . . . . . . . . . (2,238) (1,897) - (4,135)
Other Production Costs. . . . . . . . . . . . . . 329 382 312 1,023
Subtotal. . . . . . . . . . . . . . . . . . . . . 1,174 1,973 3,591 6,738
Transfers of Production Costs (to)/from
Coal Inventory. . . . . . . . . . . . . . . . . (75) (219) (215) (509)
Total . . . . . . . . . . . . . . . . .$ 1,099 $ 1,754 $3,376 $ 6,229
* 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>
