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WINDSOR COAL COMPANY
QUARTERLY REPORT PER REQUIREMENTS
OF HOLDING COMPANY ACT RELEASE NO. 22179
BY MONTH, FOR THE QUARTER ENDED DECEMBER 31, 1993
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
Statements of Customer Billings 6
Analysis of Operating Reserves and Deferred Credits
and Regulatory Liabilities 7
Information Concerning Capital Improvements 8
Analysis of Mining Plant in Service 9
Information Concerning Operations 10
Statements of Cost of Operation 11
Construction Expenditure Budget - 1994 12
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<TABLE>
WINDSOR COAL COMPANY
STATEMENTS OF INCOME
BY MONTH, FOR THE QUARTER ENDED DECEMBER 31, 1993
(UNAUDITED)
<CAPTION>
Three
Months
Month Ended Ended
October 31, November 30, December 31, December 31,
1993 1993 1993 1993
(in thousands)
<S> <C> <C> <C> <C>
OPERATING REVENUES -
Sales to Affiliated Companies . $5,419 $5,392 $5,939 $16,750
COST OF OPERATION (including
Depreciation, Depletion and
Amortization of Mining Plant
of $150,000 in October, $148,000
in November and $130,000
in December). . . . . . . . . . 5,194 5,149 5,825 16,168
OPERATING INCOME. . . . . . . . . 225 243 114 582
NONOPERATING INCOME (LOSS). . . . 28 - 30 58
INCOME BEFORE INTEREST CHARGES. . 253 243 144 640
INTEREST CHARGES (including
$23,000 in October, November and
December to Parent Company) . . 63 61 62 186
INCOME BEFORE FEDERAL
INCOME TAXES. . . . . . . . . . 190 182 82 454
FEDERAL INCOME TAXES. . . . . . . 77 68 (32) 113
NET INCOME. . . . . . . . . . . . $ 113 $ 114 $ 114 $ 341
The common stock of the Company is
wholly owned by Ohio Power Company.
</TABLE>
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<TABLE>
WINDSOR COAL COMPANY
BALANCE SHEETS
BY MONTH-END, FOR THE QUARTER ENDED DECEMBER 31, 1993
(UNAUDITED)
<CAPTION>
October 31, November 30, December 31,
1993 1993 1993
(in thousands)
ASSETS
<S> <C> <C> <C>
MINING PLANT:
Mining Plant in Service . . . . . . . . . . . $66,138 $66,034 $66,027
Construction Work in Progress . . . . . . . . 1,977 2,404 3,365
Total Mining Plant. . . . . . . . . . 68,115 68,438 69,392
Accumulated Depreciation and Amortization . . 25,446 25,739 26,109
NET MINING PLANT. . . . . . . . . . . 42,669 42,699 43,283
CURRENT ASSETS:
Cash and Cash Equivalents . . . . . . . . . . 963 1,216 2,211
Accounts Receivable:
General . . . . . . . . . . . . . . . . . . 107 42 142
Affiliated Companies. . . . . . . . . . . . 3,443 3,414 3,652
Coal. . . . . . . . . . . . . . . . . . . . . 553 592 302
Materials and Supplies. . . . . . . . . . . . 3,636 3,871 3,895
Other . . . . . . . . . . . . . . . . . . . . 323 308 273
TOTAL CURRENT ASSETS. . . . . . . . . 9,025 9,443 10,475
REGULATORY ASSETS . . . . . . . . . . . . . . . 2,581 1,395 565
TOTAL . . . . . . . . . . . . . . . $54,275 $53,537 $54,323
</TABLE>
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<TABLE>
WINDSOR COAL COMPANY
BALANCE SHEETS
BY MONTH-END, FOR THE QUARTER ENDED DECEMBER 31, 1993
(UNAUDITED)
<CAPTION>
October 31, November 30, December 31,
1993 1993 1993
(in thousands)
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C>
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 . . . . . . . . . . . . . . 812 926 700
TOTAL SHAREOWNER'S EQUITY . . . . . . 11,688 11,802 11,576
LONG-TERM DEBT:
Finance Obligations . . . . . . . . . . . . . 6,185 6,152 6,119
Advances from Parent Company. . . . . . . . . 225 225 225
TOTAL LONG-TERM DEBT. . . . . . . . . 6,410 6,377 6,344
OTHER NONCURRENT LIABILITIES:
Obligations Under Capital Leases. . . . . . . 4,767 4,599 4,431
Operating Reserves. . . . . . . . . . . . . . 800 807 865
TOTAL OTHER NONCURRENT LIABILITIES. . 5,567 5,406 5,296
CURRENT LIABILITIES:
Long-term Debt Due Within One Year. . . . . . 8,697 8,697 8,697
Short-term Debt . . . . . . . . . . . . . . . 1,639 1,700 2,251
Accounts Payable:
General . . . . . . . . . . . . . . . . . . 1,122 870 1,144
Affiliated Companies. . . . . . . . . . . . 206 231 550
Accrued Other Postretirement Benefits . . . . 1,864 1,948 2,121
Workers' Compensation Claims. . . . . . . . . 1,381 1,396 1,330
Obligations Under Capital Leases. . . . . . . 2,249 2,200 2,151
Other . . . . . . . . . . . . . . . . . . . . 3,384 3,439 3,495
TOTAL CURRENT LIABILITIES . . . . . . 20,542 20,481 21,739
DEFERRED CREDITS AND REGULATORY LIABILITIES . . 10,068 9,471 9,368
TOTAL . . . . . . . . . . . . . . . $54,275 $53,537 $54,323
/TABLE
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WINDSOR COAL COMPANY
STATEMENTS OF RETAINED EARNINGS
BY MONTH, FOR THE QUARTER ENDED DECEMBER 31, 1993
(UNAUDITED)
<CAPTION>
Three
Months
Month Ended Ended
October 31, November 30, December 31, December 31,
1993 1993 1993 1993
(in thousands)
<S> <C> <C> <C> <C>
BALANCE AT BEGINNING OF PERIOD. . $699 $812 $926 $699
NET INCOME. . . . . . . . . . . . 113 114 114 341
CASH DIVIDENDS DECLARED . . . . . - - 340 340
BALANCE AT END OF PERIOD. . . . . $812 $926 $700 $700
</TABLE>
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<TABLE>
WINDSOR COAL COMPANY
STATEMENTS OF COST OF COMMERCIAL COAL SOLD AND SHIPPED
BY MONTH, FOR THE QUARTER ENDED DECEMBER 31, 1993
<CAPTION>
October November December
1993 1993 1993
(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. . . . . . . . . . . . . . . . . . . . . . $ 89 $ 90 $ 90
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 895 $ 985 $ 1,075
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 . . . . . . . . . . . . . . . . . . . . . . $ 240 $ 264 $ 288
G. Total Earnings Allowable:
1. Current Month (C.1. + F.1.). . . . . . . . . . . . . . . $ 113 $ 114 $ 114
2. Year-to-Date (C.2. + F.2.) . . . . . . . . . . . . . . . $ 1,135 $ 1,249 $ 1,363
H. Net Income per Statements of Income . . . . . . . . . . . . . $ 113 $ 114 $ 114
Add: Interest Charges . . . . . . . . . . . . . . . . . . . 63 61 62
Less: Nonoperating Income (Loss). . . . . . . . . . . . . . 28 - 30
I. Applied Cost-of-Capital Billing Adder:
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 148 $ 175 $ 146
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 1,651 $ 1,826 $ 1,972
II. Monthly Billing Calculation:
A. Total Operating Expense (b) . . . . . . . . . . . . . . . . . $ 5,271 $ 5,217 $ 5,793
B. Add: Monthly Cost-of-Capital Billing
Adder as Applied per I. 1. of Section I . . . . . . . . . . 148 175 146
C. Cost Applicable to Coal Sold and Shipped. . . . . . . . . . . $ 5,419 $ 5,392 $ 5,939
D. Coal Sold and Shipped in Current Month (in tons). . . . . . . 157,737 154,292 167,245
E. Average Price per Ton Sold and Shipped (in dollars) (C/D) . . $34.36 $34.95 $35.51
(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.
/TABLE
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<TABLE>
WINDSOR COAL COMPANY
STATEMENTS OF CUSTOMER BILLINGS
BY MONTH, FOR THE QUARTER ENDED DECEMBER 31, 1993
<CAPTION>
SALES TO AFFILIATED COMPANY:
Cardinal Operating Company
(Month/Year) Tons Unit Price Amount
(per ton) (000)
<S> <C> <C> <C>
October 1993. . . . . . . . . . . . . . 157,737 $34.36 $5,419
November 1993 . . . . . . . . . . . . . 154,292 $34.95 $5,392
December 1993 . . . . . . . . . . . . . 167,245 $35.51 $5,939
</TABLE>
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WINDSOR COAL COMPANY
ANALYSIS OF OPERATING RESERVES AND DEFERRED CREDITS AND REGULATORY LIABILITIES
BY MONTH-END, FOR THE QUARTER ENDED DECEMBER 31, 1993
<CAPTION>
October 31, November 30, December 31,
1993 1993 1993
(in thousands)
<S> <C> <C> <C>
Operating Reserves:
Workers' Compensation . . . . . . . . . . . . $796 $804 $862
Public Liability Insurance. . . . . . . . . . 4 3 3
Total Operating Reserves. . . . . . . $800 $807 $865
Deferred Credits and Regulatory Liabilities:
Federal Income Taxes. . . . . . . . . . . . . $ 5,665 $5,573 $5,532
Amounts Due To Customers For Future
Federal Income Taxes. . . . . . . . . . . . 3,677 3,683 3,673
Receipts for Future Coal Deliveries . . . . . 568 - -
West Liberty Portal Regulatory Liability. . . 157 161 163
Other . . . . . . . . . . . . . . . . . . . . 1 54 -
Total Deferred Credits and
Regulatory Liabilities. . . . . . . $10,068 $9,471 $9,368
</TABLE>
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WINDSOR COAL COMPANY
INFORMATION CONCERNING CAPITAL IMPROVEMENTS
FOR THE QUARTER ENDED DECEMBER 31, 1993
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 DECEMBER 31, 1993
<CAPTION>
October 31, 1993 November 30, 1993 December 31, 1993
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. . . . . . . . . $ 638 $ - $ 638 $ 638 $ - $ 638 $ 638 $ - $ 638
Mining Structures
and Equipment. . . . . . . . 53,029 22,727 30,302 52,950 22,984 29,966 52,950 23,318 29,632
Coal Interests
(net of depletion) . . . . . 2,430 - 2,430 2,405 - 2,405 2,398 - 2,398
Mine Development Costs . . . . 10,041 2,719 7,322 10,041 2,755 7,286 10,041 2,791 7,250
Total Mining Plant in
Service. . . . . . . . . $66,138 $25,446 $40,692 $66,034 $25,739 $40,295 $66,027 $26,109 $39,918
</TABLE>
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WINDSOR COAL COMPANY
INFORMATION CONCERNING OPERATIONS
FOR THE QUARTER ENDED DECEMBER 31, 1993
There were no significant changes with regard to the Company's
operations during this quarter.
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<TABLE>
WINDSOR COAL COMPANY
STATEMENTS OF COST OF OPERATION
BY MONTH, FOR THE QUARTER ENDED DECEMBER 31, 1993
<CAPTION>
Three
Months
October November December Ended
1993 1993 1993 12/31/93
(in thousands)
<S> <C> <C> <C> <C>
Direct Labor-UMW* . . . . . . . . . . . . . . . . $ 245 $ 214 $ 240 $ 699
Indirect Labor-UMW* . . . . . . . . . . . . . . . 537 557 832 1,926
Benefits-UMW* . . . . . . . . . . . . . . . . . . 640 654 777 2,071
Salaries and Benefits-Nonunion. . . . . . . . . . 491 494 517 1,502
Operating Supplies. . . . . . . . . . . . . . . . 358 328 295 981
Repair Parts and Materials. . . . . . . . . . . . 123 305 300 728
Electricity and Other Utilities . . . . . . . . . 126 172 194 492
Outside Services-Maintenance, Haulage
and Reclamation . . . . . . . . . . . . . . . . 52 79 60 191
Taxes Other Than Income Taxes** . . . . . . . . . 487 503 535 1,525
Rental of Equipment . . . . . . . . . . . . . . . 405 396 398 1,199
Depreciation, Depletion and Amortization. . . . . 150 148 130 428
Royalties . . . . . . . . . . . . . . . . . . . . 32 30 56 118
Mining Cost Normalization***. . . . . . . . . . . 1,049 939 958 2,946
Other Production Costs. . . . . . . . . . . . . . 570 369 243 1,182
Subtotal. . . . . . . . . . . . . . . . . . . . . 5,265 5,188 5,535 15,988
Transfers of Production Costs (to)/from
Coal Inventory. . . . . . . . . . . . . . . . . (71) (39) 290 180
Total . . . . . . . . . . . . . . . . . $5,194 $5,149 $5,825 $16,168
* 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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WINDSOR COAL COMPANY
CONSTRUCTION EXPENDITURE BUDGET - 1994*
<CAPTION>
Description Budgeted Amount
(in thousands)
<S> <C>
Clean Coal Belt $464
Mine Plant and Subsidence Blankets 200
Short Creek Seepage Remediation 61
$725
</TABLE>
* This budget does not include any possible lease transactions.
