<PAGE>
CENTRAL OHIO COAL COMPANY
QUARTERLY REPORT PER REQUIREMENTS
OF HOLDING COMPANY ACT RELEASE NO. 22770
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 1996
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 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, 1996
(UNAUDITED)
<CAPTION>
Three
Months
Month Ended Ended
January 31, February 29, March 31, March 31,
1996 1996 1996 1996
(in thousands)
<S> <C> <C> <C> <C>
OPERATING REVENUES -
Sales to Parent . . . . . . . . $8,802 $8,154 $7,500 $24,456
COST OF OPERATION (including
Depreciation, Depletion and
Amortization of Mining Plant of
$527,000 in January, $569,000
in February and $541,000
in March) . . . . . . . . . . . 8,580 8,559 7,302 24,441
OPERATING INCOME (LOSS) . . . . . 222 (405) 198 15
NONOPERATING INCOME . . . . . . . 114 778 146 1,038
INCOME BEFORE INTEREST CHARGES. . 336 373 344 1,053
INTEREST CHARGES -
to Parent Company . . . . . . . 4 4 4 12
INCOME BEFORE FEDERAL
INCOME TAXES. . . . . . . . . . 332 369 340 1,041
FEDERAL INCOME TAXES. . . . . . . 132 169 139 440
NET INCOME. . . . . . . . . . . . $ 200 $ 200 $ 201 $ 601
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, 1996
(UNAUDITED)
<CAPTION>
January 31, February 29, March 31,
1996 1996 1996
(in thousands)
ASSETS
<S> <C> <C> <C>
MINING PLANT:
Mining Plant in Service . . . . . . . . . . . . $74,512 $74,394 $73,696
Construction Work in Progress . . . . . . . . . 2 2 2
Total Mining Plant . . . . . . . . . . . 74,514 74,396 73,698
Accumulated Depreciation and Amortization . . . 49,261 49,647 49,721
NET MINING PLANT . . . . . . . . . . . . 25,253 24,749 23,977
CURRENT ASSETS:
Cash and Cash Equivalents . . . . . . . . . . . 14,967 20,758 24,543
Accounts Receivable:
General . . . . . . . . . . . . . . . . . . . 731 778 749
Affiliated Companies. . . . . . . . . . . . . 5,560 3,509 3,758
Coal. . . . . . . . . . . . . . . . . . . . . . 14 69 23
Materials and Supplies. . . . . . . . . . . . . 7,997 7,996 7,779
Other . . . . . . . . . . . . . . . . . . . . . 954 2,927 2,704
TOTAL CURRENT ASSETS . . . . . . . . . . 30,223 36,037 39,556
DEFERRED INCOME TAXES . . . . . . . . . . . . . . 16,141 16,763 17,367
REGULATORY ASSETS . . . . . . . . . . . . . . . . 2,664 2,535 2,368
DEFERRED CHARGES. . . . . . . . . . . . . . . . . 307 256 159
TOTAL. . . . . . . . . . . . . . . . . $74,588 $80,340 $83,427
</TABLE>
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<TABLE>
CENTRAL OHIO COAL COMPANY
BALANCE SHEETS
BY MONTH-END, FOR THE QUARTER ENDED MARCH 31, 1996
(UNAUDITED)
<CAPTION>
January 31, February 29, March 31,
1996 1996 1996
(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 . . . . . . . . . . . . . . . 200 400 7
TOTAL SHAREHOLDER'S EQUITY . . . . . . . 20,169 20,369 19,976
LONG-TERM DEBT:
Finance Obligations . . . . . . . . . . . . . . 381 372 364
Advances from Parent Company. . . . . . . . . . 1,500 1,500 1,500
TOTAL LONG-TERM DEBT . . . . . . . . . . 1,881 1,872 1,864
OTHER NONCURRENT LIABILITIES:
Obligations Under Capital Leases. . . . . . . . 8,056 8,205 8,335
Operating Reserves. . . . . . . . . . . . . . . 21,997 23,434 24,759
TOTAL OTHER NONCURRENT LIABILITIES . . . 30,053 31,639 33,094
CURRENT LIABILITIES:
Long-term Debt Due Within One Year. . . . . . . 104 104 104
Accounts Payable:
General . . . . . . . . . . . . . . . . . . . 986 1,266 842
Affiliated Companies. . . . . . . . . . . . . 617 554 433
Taxes Accrued . . . . . . . . . . . . . . . . . 80 783 2,248
Accrued Reclamation Costs . . . . . . . . . . . 4,813 4,586 4,251
Accrued Vacation Pay. . . . . . . . . . . . . . 688 758 818
Workers' Compensation Claims. . . . . . . . . . 1,286 1,283 1,266
Obligations Under Capital Leases. . . . . . . . 4,069 3,715 3,361
Other . . . . . . . . . . . . . . . . . . . . . 1,474 1,752 1,477
TOTAL CURRENT LIABILITIES. . . . . . . . 14,117 14,801 14,800
DEFERRED CREDITS. . . . . . . . . . . . . . . . . 8,368 11,659 13,693
TOTAL. . . . . . . . . . . . . . . . . $74,588 $80,340 $83,427
</TABLE>
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CENTRAL OHIO COAL COMPANY
STATEMENTS OF RETAINED EARNINGS
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 1996
(UNAUDITED)
<CAPTION>
Three
Months
Month Ended Ended
January 31, February 29, March 31, March 31,
1996 1996 1996 1996
(in thousands)
<S> <C> <C> <C> <C>
BALANCE AT BEGINNING OF PERIOD. . $ - $200 $400 $ -
NET INCOME. . . . . . . . . . . . 200 200 201 601
CASH DIVIDENDS DECLARED . . . . . - - 594 594
BALANCE AT END OF PERIOD. . . . . $200 $400 $ 7 $ 7
</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, 1996
<CAPTION>
January February March
1996 1996 1996
(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:
12.81% per annum, 1.0675% per month . . . . . . . . . . . . .010675 .010675 .010675
C. Earnings Allowable: (re investment in item A)
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 78 $ 78 $ 79
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 78 $ 156 $ 235
D. Equity Investment - January 1983 (Preparation Plant). . . . . $ 6,431 $ 6,431 $ 6,431
E. Rate of Return Allowable per HCAR No. 22770:
11.90% per annum, 0.99167% per month. . . . . . . . . . . . .0099167 .0099167 .0099167
F. Earnings Allowable: (re investment in item D)
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 64 $ 64 $ 64
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 64 $ 128 $ 192
G. Equity Investment - January 1983 (Other Assets) . . . . . . . $ 6,188 $ 6,188 $ 6,188
H. Rate of Return Allowable per HCAR No. 22770:
11.26% per annum, 0.9383% per month . . . . . . . . . . . . .009383 .009383 .009383
I. Earnings Allowable: (re investment in item G)
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 58 $ 58 $ 58
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 58 $ 116 $ 174
J. Total Earnings Allowable:
1. Current Month (C.1. + F.1. + I.1.) . . . . . . . . . . . $ 200 $ 200 $ 201
2. Year-to-Date (C.2. + F.2. + I.2.). . . . . . . . . . . . $ 200 $ 400 $ 601
K. Net Income per Statements of Income . . . . . . . . . . . . . $ 200 $ 200 $ 201
Add: Interest Charges . . . . . . . . . . . . . . . . . . . 4 4 4
Less: Nonoperating Income . . . . . . . . . . . . . . . . . 114 778 146
L. Applied Cost-of-Capital Billing Adder:
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 90 $ (574) $ 59
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 90 $ (484) $ (425)
II. Monthly Billing Calculation:
A. Total Operating Expenses(a) . . . . . . . . . . . . . . . . . $ 8,712 $ 8,728 $ 7,441
B. Add: Monthly Cost-of-Capital Billing
Adder as Applied per L. 1. of Section I . . . . . . . . . . 90 (574) 59
C. Cost Applicable to Current Month Coal Billings(b) . . . . . . $ 8,802 $ 8,154 $ 7,500
D. Coal Sold and Shipped in Current Month (in tons)(b) . . . . . 135,273 141,102 133,632
E. Average Price per Ton (in dollars) (C/D)(b) . . . . . . . . . $65.07 $57.79 $56.12
(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 MARCH 31, 1996
<CAPTION>
January 31, February 29, March 31,
1996 1996 1996
(in thousands)
<S> <C> <C> <C>
Operating Reserves:
Accrued Pensions. . . . . . . . . . . . . . . . $ 907 $ 915 $ 918
Accrued Postretirement Benefits Other
Than Pensions . . . . . . . . . . . . . . . . 10,230 10,495 10,665
Accrued Reclamation Costs . . . . . . . . . . . 6,420 7,192 7,942
Accrued Rent. . . . . . . . . . . . . . . . . . 3,407 3,814 4,221
Workers' Compensation . . . . . . . . . . . . . 670 655 650
Postemployment Benefits . . . . . . . . . . . . 363 363 363
Total Operating Reserves. . . . . . . . . . $21,997 $23,434 $24,759
Regulatory Liabilities and Deferred Credits:
Gain on Sale and Leaseback of Plant . . . . . . $5,959 $ 5,820 $ 5,681
Mining Cost Normalization . . . . . . . . . . . 2,409 5,839 8,012
Total Regulatory Liabilities and
Deferred Credits. . . . . . . . . . . . . $8,368 $11,659 $13,693
</TABLE>
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CENTRAL OHIO COAL COMPANY
INFORMATION CONCERNING CAPITAL IMPROVEMENTS
FOR THE QUARTER ENDED MARCH 31, 1996
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, 1996
<CAPTION>
January 31, 1996 February 29, 1996 March 31, 1996
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. . . . . . . . 64,080 47,165 16,915 64,374 47,546 16,828 64,059 47,615 16,444
Coal Interests
(net of depletion) . . . . . 7,816 - 7,816 7,404 - 7,404 7,021 - 7,021
Mine Development Costs . . . . 2,292 2,096 196 2,292 2,101 191 2,292 2,106 186
Total Mining Plant in
Service. . . . . . . . . $74,512 $49,261 $25,251 $74,394 $49,647 $24,747 $73,696 $49,721 $23,975
/TABLE
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CENTRAL OHIO COAL COMPANY
INFORMATION CONCERNING OPERATIONS
FOR THE QUARTER ENDED MARCH 31, 1996
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, 1996
<CAPTION>
Three
Months
January February March Ended
1996 1996 1996 3/31/96
(in thousands)
<S> <C> <C> <C> <C>
Direct Labor-UMW* . . . . . . . . . . . . . . . . $ 105 $ 101 $ 109 $ 315
Indirect Labor-UMW* . . . . . . . . . . . . . . . 401 408 426 1,235
Benefits-UMW* . . . . . . . . . . . . . . . . . . 727 662 392 1,781
Salaries and Benefits-Nonunion. . . . . . . . . . 426 403 461 1,290
Operating Supplies. . . . . . . . . . . . . . . . 480 550 507 1,537
Repair Parts and Materials. . . . . . . . . . . . 206 286 396 888
Electricity and Other Utilities . . . . . . . . . 441 28 226 695
Outside Services-Maintenance, Haulage
and Reclamation . . . . . . . . . . . . . . . . 29 78 126 233
Taxes Other Than Income Taxes** . . . . . . . . . 170 175 170 515
Rental of Equipment . . . . . . . . . . . . . . . 729 736 736 2,201
Depreciation, Depletion and Amortization. . . . . 527 569 541 1,637
Mining Cost Normalization***. . . . . . . . . . . 2,409 3,430 2,173 8,012
Reclamation Cost - Net. . . . . . . . . . . . . . 1,091 545 414 2,050
Other Production Costs. . . . . . . . . . . . . . 619 643 579 1,841
Subtotal. . . . . . . . . . . . . . . . . . . . . 8,360 8,614 7,256 24,230
Transfers of Production Costs (to)/from
Coal Inventory. . . . . . . . . . . . . . . . . 220 (55) 46 211
Total . . . . . . . . . . . . . . . . . $8,580 $8,559 $7,302 $24,441
* 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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<TABLE>
CENTRAL OHIO COAL COMPANY
SCHEDULE OF CHANGES IN COAL INVENTORY
BY MONTH, FOR THE QUARTER ENDED MARCH 31, 1996
<CAPTION>
January February March
1996 1996 1996
(in thousands)
<S> <C> <C> <C>
Coal Stockpile:*
Ending Inventory. . . . . . . . . . . . . . . . . . . . . $ 14 $69 $ 23
Beginning Inventory . . . . . . . . . . . . . . . . . . . 234 14 69
Increase (Decrease) in Coal
Stockpile Inventory . . . . . . . . . . . . . . . . . . $(220) $55 $(46)
* The production level of coal has been greater than the demand for coal at Muskingum
River Plant, which created a raw coal stockpile.
</TABLE>
