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WINDSOR COAL COMPANY
QUARTERLY REPORT PER REQUIREMENTS
OF HOLDING COMPANY ACT RELEASE NO. 22179
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 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
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WINDSOR 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 Affiliated Company . . $4,495 $4,785 $4,339 $13,619
COST OF OPERATION (including
Depreciation, Depletion and
Amortization of Mining Plant
of $122,000 in January,
$122,000 in February
and $113,000 in March). . . . . 4,249 4,586 4,175 13,010
OPERATING INCOME. . . . . . . . . 246 199 164 609
NONOPERATING INCOME . . . . . . . 23 9 39 71
INCOME BEFORE INTEREST CHARGES. . 269 208 203 680
INTEREST CHARGES (including
$22,000 in January, $1,000 in
February and $1,000 in March
to Parent Company). . . . . . . 64 8 3 75
INCOME BEFORE FEDERAL
INCOME TAXES. . . . . . . . . . 205 200 200 605
FEDERAL INCOME TAXES. . . . . . . 91 86 87 264
NET INCOME. . . . . . . . . . . . $ 114 $ 114 $ 113 $ 341
The common stock of the Company is
wholly owned by Ohio Power Company.
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WINDSOR 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 . . . . . . . . . . . . $66,044 $65,860 $65,934
Construction Work in Progress . . . . . . . . . 3,514 3,608 3,631
Total Mining Plant . . . . . . . . . . . 69,558 69,468 69,565
Accumulated Depreciation and Amortization . . . 26,476 26,609 27,045
NET MINING PLANT . . . . . . . . . . . . 43,082 42,859 42,520
CURRENT ASSETS:
Cash and Cash Equivalents . . . . . . . . . . . 34 15 17
Accounts Receivable:
General . . . . . . . . . . . . . . . . . . . 52 69 63
Affiliated Companies. . . . . . . . . . . . . 3 1,891 118
Coal. . . . . . . . . . . . . . . . . . . . . . 376 541 167
Materials and Supplies. . . . . . . . . . . . . 3,822 3,807 3,708
Other . . . . . . . . . . . . . . . . . . . . . 259 259 223
TOTAL CURRENT ASSETS . . . . . . . . . . 4,546 6,582 4,296
REGULATORY ASSETS . . . . . . . . . . . . . . . . 1,343 1,630 4,071
TOTAL. . . . . . . . . . . . . . . . . $48,971 $51,071 $50,887
</TABLE>
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WINDSOR 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 - 5,000 Shares
Outstanding - 4,064 Shares. . . . . . . . . . $ 406 $ 406 $ 406
Paid-in Capital . . . . . . . . . . . . . . . . 10,470 10,470 10,470
Retained Earnings . . . . . . . . . . . . . . . 814 928 701
TOTAL SHAREOWNER'S EQUITY. . . . . . . . 11,690 11,804 11,577
LONG-TERM DEBT:
Finance Obligations . . . . . . . . . . . . . . 6,085 6,052 6,019
Advances from Parent Company. . . . . . . . . . 225 225 225
TOTAL LONG-TERM DEBT . . . . . . . . . . 6,310 6,277 6,244
OTHER NONCURRENT LIABILITIES:
Obligations Under Capital Leases. . . . . . . . 4,278 4,145 3,975
Operating Reserves. . . . . . . . . . . . . . . 914 538 1,091
TOTAL OTHER NONCURRENT LIABILITIES . . . 5,192 4,683 5,066
CURRENT LIABILITIES:
Long-term Debt Due Within One Year. . . . . . . 397 397 397
Short-term Debt . . . . . . . . . . . . . . . . 2,162 2,988 2,988
Accounts Payable:
General . . . . . . . . . . . . . . . . . . . 1,031 1,324 1,195
Affiliated Companies. . . . . . . . . . . . . 512 569 502
Taxes Accrued . . . . . . . . . . . . . . . . . 654 709 905
Accrued Vacation Pay. . . . . . . . . . . . . . 780 859 933
Workers' Compensation Claims. . . . . . . . . . 1,332 1,743 2,129
Obligations Under Capital Leases. . . . . . . . 2,106 2,074 2,025
Other . . . . . . . . . . . . . . . . . . . . . 4,495 4,688 3,901
TOTAL CURRENT LIABILITIES. . . . . . . . 13,469 15,351 14,975
DEFERRED CREDITS AND REGULATORY LIABILITIES . . . 12,310 12,956 13,025
TOTAL. . . . . . . . . . . . . . . . . $48,971 $51,071 $50,887
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WINDSOR 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. . $700 $814 $928 $700
NET INCOME. . . . . . . . . . . . 114 114 113 341
CASH DIVIDENDS DECLARED . . . . . - - 340 340
BALANCE AT END OF PERIOD. . . . . $814 $928 $701 $701
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WINDSOR 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. . . . . . . . . . . . . . . . . . . . . . . . $ 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 . . . . . . . . . . . . . . . . . . . . . . $ 90 $ 180 $ 269
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 . . . . . . . . . . . . . . . . . . . . . . $ 24 $ 48 $ 72
G. Total Earnings Allowable:
1. Current Month (C.1. + F.1.). . . . . . . . . . . . . . . $ 114 $ 114 $ 113
2. Year-to-Date (C.2. + F.2.) . . . . . . . . . . . . . . . $ 114 $ 228 $ 341
H. Net Income per Statements of Income. . . . . . . . . . . . . . $ 114 $ 114 $ 113
Add: Interest Charges . . . . . . . . . . . . . . . . . . . 64 8 3
Less: Nonoperating Income . . . . . . . . . . . . . . . . . 23 9 39
I. Applied Cost-of-Capital Billing Adder:
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 155 $ 113 $ 77
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 155 $ 268 $ 345
II. Monthly Billing Calculation:
A. Total Operating Expense (b). . . . . . . . . . . . . . . . . . $ 4,340 $ 4,672 $ 4,262
B. Add: Monthly Cost-of Capital Billing
Adder as Applied per I. 1. of Section I. . . . . . . . . . . 155 113 77
C. Cost Applicable to Coal Sold and Shipped (c) . . . . . . . . . $ 4,495 $ 4,785 $ 4,339
D. Coal Sold and Shipped in Current Month (in tons) (c) . . . . . 135,969 129,154 111,596
E. Average Price per Ton Sold and Shipped (in dollars) (C/D)(c) . $33.06 $37.04 $38.88
(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.
/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 MARCH 31, 1994
<CAPTION>
January 31, February 28, March 31,
1994 1994 1994
(in thousands)
<S> <C> <C> <C>
Operating Reserves:
Workers' Compensation . . . . . . . . . . . . . $910 $534 $ 581
Postemployment Benefits . . . . . . . . . . . . - - 506
Public Liability Insurance. . . . . . . . . . . 4 4 4
Total Operating Reserves. . . . . . . . . . $914 $538 $1,091
Deferred Credits and Regulatory Liabilities:
Federal Income Taxes. . . . . . . . . . . . . . $ 5,417 $ 5,312 $ 5,191
Amounts Due to Customer For Future
Federal Income Taxes. . . . . . . . . . . . . 3,701 3,725 3,751
Receipts for Future Coal Deliveries . . . . . . 3,025 3,740 3,909
West Liberty Portal Regulatory Liability. . . . 167 170 173
Other . . . . . . . . . . . . . . . . . . . . . - 9 1
Total Deferred Credits and
Regulatory Liabilities. . . . . . . . . . $12,310 $12,956 $13,025
</TABLE>
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WINDSOR 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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WINDSOR 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. . . . . $ 638 $ - $ 638 $ 638 $ - $ 638 $ 638 $ - $ 638
Mining Structures
and Equipment. . . . 52,971 23,653 29,318 52,790 23,754 29,036 52,868 24,168 28,700
Coal Interests
(net of depletion) . 2,394 - 2,394 2,391 - 2,391 2,387 - 2,387
Mine Development Costs 10,041 2,823 7,218 10,041 2,855 7,186 10,041 2,877 7,164
Total Mining Plant
in Service . . . $66,044 $26,476 $39,568 $65,860 $26,609 $39,251 $65,934 $27,045 $38,889
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WINDSOR 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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WINDSOR 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* . . . . . . . . . . . . . . . . $ 190 $ 227 $ 289 $ 706
Indirect Labor-UMW* . . . . . . . . . . . . . . . 587 569 653 1,809
Benefits-UMW* . . . . . . . . . . . . . . . . . . 757 651 965 2,373
Salaries and Benefits-Nonunion. . . . . . . . . . 532 512 649 1,693
Operating Supplies. . . . . . . . . . . . . . . . 304 322 373 999
Repair Parts and Materials. . . . . . . . . . . . 351 451 560 1,362
Electricity and Other Utilities . . . . . . . . . 198 200 360 758
Outside Services-Maintenance, Haulage
and Reclamation . . . . . . . . . . . . . . . . 26 105 32 163
Taxes Other Than Income Taxes** . . . . . . . . . 311 452 401 1,164
Rental of Equipment . . . . . . . . . . . . . . . 410 400 425 1,235
Depreciation, Depletion and Amortization. . . . . 122 122 113 357
Royalties . . . . . . . . . . . . . . . . . . . . 237 234 143 614
Mining Cost Normalization***. . . . . . . . . . . (141) - (1,771) (1,912)
Other Production Costs. . . . . . . . . . . . . . 439 506 609 1,554
Subtotal. . . . . . . . . . . . . . . . . . . . . 4,323 4,751 3,801 12,875
Transfers of Production Costs (to)/from
Coal Inventory. . . . . . . . . . . . . . . . . (74) (165) 374 135
Total . . . . . . . . . . . . . . . . . $4,249 $ 4,586 $ 4,175 $13,010
* 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.
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