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CENTRAL OHIO COAL COMPANY
QUARTERLY REPORT PER REQUIREMENTS
OF HOLDING COMPANY ACT RELEASE NO. 22770
BY MONTH, FOR THE QUARTER ENDED SEPTEMBER 30, 1995
<CAPTION>
CONTENTS
Page
<S> <C>
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 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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CENTRAL OHIO COAL COMPANY
STATEMENTS OF INCOME
BY MONTH, FOR THE QUARTER ENDED SEPTEMBER 30, 1995
(UNAUDITED)
<CAPTION>
Three
Months
Month Ended Ended
July 31, August 31, September 30, September 30,
1995 1995 1995 1995
(in thousands)
<S> <C> <C> <C> <C>
OPERATING REVENUES -
Sales to Parent . . . . . . . $6,063 $6,254 $4,372 $16,689
COST OF OPERATION (including
Depreciation, Depletion and
Amortization of Mining Plant
of $616,000 in July,
$414,000 in August and
$332,000 in September). . . . 5,819 6,093 4,322 16,234
OPERATING INCOME. . . . . . . . 244 161 50 455
NONOPERATING INCOME . . . . . . 90 76 172 338
INCOME BEFORE INTEREST CHARGES. 334 237 222 793
INTEREST CHARGES - to Parent
Company . . . . . . . . . . . 4 4 4 12
INCOME BEFORE FEDERAL
INCOME TAXES. . . . . . . . . 330 233 218 781
FEDERAL INCOME TAX
EXPENSE (CREDIT). . . . . . . 108 12 (3) 117
NET INCOME. . . . . . . . . . . $ 222 $ 221 $ 221 $ 664
The common stock of the Company is
wholly owned by Ohio Power Company.
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CENTRAL OHIO COAL COMPANY
BALANCE SHEETS
BY MONTH-END, FOR THE QUARTER ENDED SEPTEMBER 30, 1995
(UNAUDITED)
<CAPTION>
July 31, August 31, September 30,
1995 1995 1995
(in thousands)
ASSETS
<S> <C> <C> <C>
MINING PLANT:
Mining Plant in Service . . . . . . . . . . $76,508 $76,157 $75,978
Construction Work in Progress . . . . . . . 2 51 51
Total Mining Plant . . . . . . . . . 76,510 76,208 76,029
Accumulated Depreciation and Amortization . 48,148 48,625 49,157
NET MINING PLANT . . . . . . . . . . 28,362 27,583 26,872
CURRENT ASSETS:
Cash and Cash Equivalents . . . . . . . . . 3,470 7,702 8,982
Accounts Receivable:
General . . . . . . . . . . . . . . . . . 513 226 473
Affiliated Companies. . . . . . . . . . . 5,084 4,182 1,933
Coal. . . . . . . . . . . . . . . . . . . . 184 271 168
Materials and Supplies. . . . . . . . . . . 6,937 6,936 7,047
Other . . . . . . . . . . . . . . . . . . . 2,347 2,030 1,773
TOTAL CURRENT ASSETS . . . . . . . . 18,535 21,347 20,376
DEFERRED INCOME TAXES . . . . . . . . . . . . 16,260 16,313 16,487
REGULATORY ASSETS . . . . . . . . . . . . . . 4,119 4,060 4,012
DEFERRED CHARGES. . . . . . . . . . . . . . . 6,047 6,004 5,989
TOTAL. . . . . . . . . . . . . . . $73,323 $75,307 $73,736
</TABLE>
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<TABLE>
CENTRAL OHIO COAL COMPANY
BALANCE SHEETS
BY MONTH-END, FOR THE QUARTER ENDED SEPTEMBER 30, 1995
(UNAUDITED)
<CAPTION>
July 31, August 31, September 30,
1995 1995 1995
(in thousands)
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C>
SHAREHOLDER'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 . . . . . . . . . . . . . 222 443 -
TOTAL SHAREHOLDER'S EQUITY . . . . . 20,191 20,412 19,969
LONG-TERM DEBT:
Finance Obligations . . . . . . . . . . . . 433 424 416
Advance from Parent Company . . . . . . . . 1,500 1,500 1,500
TOTAL LONG-TERM DEBT . . . . . . . . 1,933 1,924 1,916
OTHER NONCURRENT LIABILITIES:
Obligations Under Capital Leases. . . . . . 7,108 7,092 7,077
Operating Reserves. . . . . . . . . . . . . 16,394 17,661 20,555
TOTAL OTHER NONCURRENT LIABILITIES . 23,502 24,753 27,632
CURRENT LIABILITIES:
Long-term Debt Due Within One Year. . . . . 104 104 104
Accounts Payable:
General . . . . . . . . . . . . . . . . . 808 1,137 800
Affiliated Companies. . . . . . . . . . . 458 465 482
Taxes Accrued . . . . . . . . . . . . . . . 910 997 531
Accrued Reclamation Costs . . . . . . . . . 6,864 5,894 3,124
Accrued Vacation Pay. . . . . . . . . . . . 781 725 772
Workers' Compensation Claims. . . . . . . . 1,321 1,307 1,284
Obligations Under Capital Leases. . . . . . 5,766 5,406 5,050
Other . . . . . . . . . . . . . . . . . . . 2,476 3,191 2,508
TOTAL CURRENT LIABILITIES. . . . . . 19,488 19,226 14,655
REGULATORY LIABILITIES AND DEFERRED CREDITS . 8,209 8,992 9,564
TOTAL. . . . . . . . . . . . . . . $73,323 $75,307 $73,736
</TABLE>
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CENTRAL OHIO COAL COMPANY
STATEMENTS OF RETAINED EARNINGS
BY MONTH, FOR THE QUARTER ENDED SEPTEMBER 30, 1995
(UNAUDITED)
<CAPTION>
Three
Months
Month Ended Ended
July 31, August 31, September 30, September 30,
1995 1995 1995 1995
(in thousands)
<S> <C> <C> <C> <C>
BALANCE AT BEGINNING OF PERIOD. . $ - $222 $443 $ -
NET INCOME. . . . . . . . . . . . 222 221 221 664
CASH DIVIDENDS DECLARED . . . . . - - 664 664
BALANCE AT END OF PERIOD. . . . . $222 $443 $ - $ -
</TABLE>
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CENTRAL OHIO COAL COMPANY
STATEMENTS OF COST OF COMMERCIAL COAL SOLD AND SHIPPED
BY MONTH, FOR THE QUARTER ENDED SEPTEMBER 30, 1995
<CAPTION>
July August September
1995 1995 1995
(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 . . . . . . . . . . . . . . . . . . . . . . $ 616 $ 704 $ 792
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 . . . . . . . . . . . . . . . . . . . . . . $ 490 $ 560 $ 630
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. . . . . . . . . . . . . . . . . . . . . . $ 64 $ 63 $ 63
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 444 $ 507 $ 570
J. Total Earnings Allowable:
1. Current Month (C.1. + F.1. + I.1.) . . . . . . . . . . . $ 222 $ 221 $ 221
2. Year-to-Date (C.2. + F.2. + I.2.). . . . . . . . . . . . $ 1,550 $ 1,771 $ 1,992
K. Net Income per Statements of Income . . . . . . . . . . . . . $ 222 $ 221 $ 221
Add: Interest Charges . . . . . . . . . . . . . . . . . . . 4 4 4
Less: Nonoperating Income . . . . . . . . . . . . . . . . . 90 76 172
L. Applied Cost-of-Capital Billing Adder:
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 136 $ 149 $ 53
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 890 $ 1,039 $ 1,092
II. Monthly Billing Calculation:
A. Total Operating Expenses (a). . . . . . . . . . . . . . . . . $ 5,927 $ 6,105 $ 4,319
B. Add: Monthly Cost-of-Capital Billing
Adder as Applied per L. 1. of Section I . . . . . . . . . . 136 149 53
C. Cost Applicable to Current Month Coal Billings(b) . . . . . . $ 6,063 $ 6,254 $ 4,372
D. Coal Sold and Shipped in Current Month (in tons)(b) . . . . . 86,514 94,110 68,590
E. Average Price per Ton (in dollars) (C/D)(b) . . . . . . . . . $70.08 $66.46 $63.73
(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 DEFERRED CREDITS
BY MONTH-END, FOR THE QUARTER ENDED SEPTEMBER 30, 1995
<CAPTION>
July 31, August 31, September 30,
1995 1995 1995
(in thousands)
<S> <C> <C> <C>
Operating Reserves:
Accrued Postretirement Benefits
Other Than Pensions . . . . . . . . . . . $ 8,740 $ 8,992 $ 9,244
Accrued Reclamation Costs . . . . . . . . . 5,022 5,609 7,813
Public Liability Insurance. . . . . . . . . 13 13 13
Workers' Compensation . . . . . . . . . . . 746 745 755
Postemployment Benefits . . . . . . . . . . 1,016 1,016 1,016
Accrued Rent. . . . . . . . . . . . . . . . 857 1,286 1,714
Total Operating Reserves. . . . . . . . $16,394 $17,661 $20,555
Regulatory Liabilities and Deferred Credits:
Gain on Sale and Leaseback of Plant . . . . $6,790 $6,651 $6,512
Mining Cost Normalization . . . . . . . . . 1,385 2,283 3,052
Other . . . . . . . . . . . . . . . . . . . 34 58 -
Total Regulatory Liabilities and
Deferred Credits. . . . . . . . . . . $8,209 $8,992 $9,564
</TABLE>
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CENTRAL OHIO COAL COMPANY
INFORMATION CONCERNING CAPITAL IMPROVEMENTS
FOR THE QUARTER ENDED SEPTEMBER 30, 1995
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 SEPTEMBER 30, 1995
<CAPTION>
July 31, 1995 August 31, 1995 September 30, 1995
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. . . . . . . . 64,655 46,082 18,573 64,565 46,554 18,011 64,565 47,081 17,484
Coal Interests
(net of depletion) . . . . . 9,237 - 9,237 8,976 - 8,976 8,797 - 8,797
Mine Development Costs . . . . 2,292 2,066 226 2,292 2,071 221 2,292 2,076 216
Total Mining Plant in
Service. . . . . . . . . $76,508 $48,148 $28,360 $76,157 $48,625 $27,532 $75,978 $49,157 $26,821
/TABLE
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CENTRAL OHIO COAL COMPANY
INFORMATION CONCERNING OPERATIONS
FOR THE QUARTER ENDED SEPTEMBER 30, 1995
In August 1995 the Company announced the reduction of 66 employees from
its Muskingum Mine as part of the American Electric Power (AEP) System's clean
air compliance plan. Approximately 230 remain in the Company's work force.
In order to reduce the high-sulfur coal inventory at the Muskingum River
Plant, the Company implemented the work force reduction in August.
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CENTRAL OHIO COAL COMPANY
STATEMENTS OF COST OF OPERATION
BY MONTH, FOR THE QUARTER ENDED SEPTEMBER 30, 1995
<CAPTION>
Three
Months
July August September Ended
1995 1995 1995 9/30/95
(in thousands)
<S> <C> <C> <C> <C>
Direct Labor-UMW* . . . . . . . . . . . . . . $ 50 $ 63 $ 35 $ 148
Indirect Labor-UMW* . . . . . . . . . . . . . 462 574 355 1,391
Benefits-UMW* . . . . . . . . . . . . . . . . 769 865 490 2,124
Salaries and Benefits-Nonunion. . . . . . . . 431 1,063 348 1,842
Operating Supplies. . . . . . . . . . . . . . 349 536 295 1,180
Repair Parts and Materials. . . . . . . . . . 588 180 208 976
Electricity and Other Utilities . . . . . . . 159 183 161 503
Outside Services-Maintenance, Haulage
and Reclamation . . . . . . . . . . . . . . 97 199 86 382
Taxes Other Than Federal Income Taxes** . . . 180 185 155 520
Rental of Equipment . . . . . . . . . . . . . 787 791 833 2,411
Depreciation, Depletion and Amortization. . . 616 414 332 1,362
Mining Cost Normalization***. . . . . . . . . 604 898 769 2,271
Reclamation Cost - Net. . . . . . . . . . . . (676) (383) (565) (1,624)
Other Production Costs. . . . . . . . . . . . 1,067 612 717 2,396
Subtotal. . . . . . . . . . . . . . . . . . . 5,483 6,180 4,219 15,882
Transfers of Production Costs (to)/from
Coal Inventory. . . . . . . . . . . . . . . 336 (87) 103 352
Total . . . . . . . . . . . . . . . $5,819 $6,093 $4,322 $16,234
* 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 SEPTEMBER 30, 1995
<CAPTION>
July August September
1995 1995 1995
(in thousands)
Coal Stockpile:*
<S> <C> <C> <C>
Ending Inventory. . . . . . . . $ 184 $271 $ 168
Beginning Inventory . . . . . . 520 184 271
Increase (Decrease) in Coal
Stockpile Inventory . . . . . $(336) $ 87 $(103)
* 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.
</TABLE>
