<PAGE>
CENTRAL OHIO COAL COMPANY
QUARTERLY REPORT PER REQUIREMENTS
OF HOLDING COMPANY ACT RELEASE NO. 22770
BY MONTH, FOR THE QUARTER ENDED JUNE 30, 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
Regulatory Liabilities 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 JUNE 30, 1996
(UNAUDITED)
<CAPTION>
Three
Months
Month Ended Ended
April 30, May 31, June 30, June 30,
1996 1996 1996 1996
(in thousands)
<S> <C> <C> <C> <C>
OPERATING REVENUES -
Sales to Parent . . . . . . . . $9,128 $2,786 $4,602 $16,516
COST OF OPERATION (including
Depreciation, Depletion and
Amortization of Mining Plant of
$613,000 in April, $326,000
in May and $481,000 in June). . 8,977 2,628 4,445 16,050
OPERATING INCOME. . . . . . . . . 151 158 157 466
NONOPERATING INCOME . . . . . . . 146 182 222 550
INCOME BEFORE INTEREST CHARGES. . 297 340 379 1,016
INTEREST CHARGES (including
$4,000 in each month
to Parent Company) . . . . . . . 19 4 4 27
INCOME BEFORE FEDERAL
INCOME TAXES. . . . . . . . . . 278 336 375 989
FEDERAL INCOME TAXES. . . . . . . 78 135 175 388
NET INCOME. . . . . . . . . . . . $ 200 $ 201 $ 200 $ 601
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 JUNE 30, 1996
(UNAUDITED)
<CAPTION>
April 30, May 31, June 30,
1996 1996 1996
(in thousands)
<S> <C> <C> <C>
ASSETS
MINING PLANT:
Mining Plant in Service . . . . . . . . . . . . $72,697 $72,261 $71,930
Construction Work in Progress . . . . . . . . . 2 2 2
Total Mining Plant . . . . . . . . . . . 72,699 72,263 71,932
Accumulated Depreciation and Amortization . . . 49,516 49,627 50,003
NET MINING PLANT . . . . . . . . . . . . 23,183 22,636 21,929
CURRENT ASSETS:
Cash and Cash Equivalents . . . . . . . . . . . 29,178 30,463 31,918
Accounts Receivable:
General . . . . . . . . . . . . . . . . . . . 323 683 624
Affiliated Companies. . . . . . . . . . . . . 4,342 2,852 1,734
Coal. . . . . . . . . . . . . . . . . . . . . . 34 41 97
Materials and Supplies. . . . . . . . . . . . . 7,854 7,888 8,326
Other . . . . . . . . . . . . . . . . . . . . . 2,564 2,255 1,973
TOTAL CURRENT ASSETS . . . . . . . . . . 44,295 44,182 44,672
DEFERRED INCOME TAXES . . . . . . . . . . . . . . 17,871 18,012 18,301
REGULATORY ASSETS . . . . . . . . . . . . . . . . 2,222 2,147 2,032
DEFERRED CHARGES. . . . . . . . . . . . . . . . . 767 364 460
TOTAL. . . . . . . . . . . . . . . . . $88,338 $87,341 $87,394
</TABLE>
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<TABLE>
CENTRAL OHIO COAL COMPANY
BALANCE SHEETS
BY MONTH-END, FOR THE QUARTER ENDED JUNE 30, 1996
(UNAUDITED)
<CAPTION>
April 30, May 31, June 30,
1996 1996 1996
(in thousands)
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
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 . . . . . . . . . . . . . . . 207 408 7
TOTAL SHAREHOLDER'S EQUITY . . . . . . . 20,176 20,377 19,976
LONG-TERM DEBT:
Finance Obligations . . . . . . . . . . . . . . 355 346 338
Advances from Parent Company. . . . . . . . . . 1,500 1,500 1,500
TOTAL LONG-TERM DEBT . . . . . . . . . . 1,855 1,846 1,838
OTHER NONCURRENT LIABILITIES:
Obligations Under Capital Leases. . . . . . . . 7,457 7,620 7,796
Operating Reserves. . . . . . . . . . . . . . . 25,744 26,686 27,368
TOTAL OTHER NONCURRENT LIABILITIES . . . 33,201 34,306 35,164
CURRENT LIABILITIES:
Long-term Debt Due Within One Year. . . . . . . 104 104 104
Accounts Payable:
General . . . . . . . . . . . . . . . . . . . 743 750 1,366
Affiliated Companies. . . . . . . . . . . . . 455 374 372
Taxes Accrued . . . . . . . . . . . . . . . . . 2,052 2,226 2,072
Accrued Reclamation Costs . . . . . . . . . . . 3,937 3,729 3,592
Accrued Vacation Pay. . . . . . . . . . . . . . 815 852 912
Workers' Compensation Claims. . . . . . . . . . 1,247 1,251 1,403
Obligations Under Capital Leases. . . . . . . . 4,067 3,691 3,298
Other . . . . . . . . . . . . . . . . . . . . . 1,680 1,747 1,408
TOTAL CURRENT LIABILITIES. . . . . . . . 15,100 14,724 14,527
REGULATORY LIABILITIES AND DEFERRED CREDITS . . . 18,006 16,088 15,889
TOTAL. . . . . . . . . . . . . . . . . $88,338 $87,341 $87,394
</TABLE>
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CENTRAL OHIO COAL COMPANY
STATEMENTS OF RETAINED EARNINGS
BY MONTH, FOR THE QUARTER ENDED JUNE 30, 1996
(UNAUDITED)
<CAPTION>
Three
Months
Month Ended Ended
April 30, May 31, June 30, June 30,
1996 1996 1996 1996
(in thousands)
<S> <C> <C> <C> <C>
BALANCE AT BEGINNING OF PERIOD. . $ 7 $207 $408 $ 7
NET INCOME. . . . . . . . . . . . 200 201 200 601
CASH DIVIDENDS DECLARED . . . . . - - 601 601
BALANCE AT END OF PERIOD. . . . . $207 $408 $ 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 JUNE 30, 1996
<CAPTION>
April May June
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 $ 79 $ 78
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 313 $ 392 $ 470
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 . . . . . . . . . . . . . . . . . . . . . . $ 256 $ 320 $ 384
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 . . . . . . . . . . . . . . . . . . . . . . $ 232 $ 290 $ 348
J. Total Earnings Allowable:
1. Current Month (C.1. + F.1. + I.1.) . . . . . . . . . . . $ 200 $ 201 $ 200
2. Year-to-Date (C.2. + F.2. + I.2.). . . . . . . . . . . . $ 801 $ 1,002 $ 1,202
K. Net Income per Statements of Income . . . . . . . . . . . . . $ 200 $ 201 $ 200
Add: Interest Charges . . . . . . . . . . . . . . . . . . . 19 4 4
Less: Nonoperating Income . . . . . . . . . . . . . . . . . 146 182 222
L. Applied Cost-of-Capital Billing Adder:
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 73 $ 23 $ (18)
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ (352) $ (329) $ (347)
II. Monthly Billing Calculation:
A. Total Operating Expenses(a) . . . . . . . . . . . . . . . . . $ 9,055 $ 2,763 $ 4,620
B. Add: Monthly Cost-of-Capital Billing
Adder as Applied per L. 1. of Section I . . . . . . . . . . 73 23 (18)
C. Cost Applicable to Current Month Coal Billings(b) . . . . . . $ 9,128 $ 2,786 $ 4,602
D. Coal Sold and Shipped in Current Month (in tons)(b) . . . . . 158,694 60,146 113,145
E. Average Price per Ton (in dollars) (C/D)(b) . . . . . . . . . $57.52 $46.32 $40.67
(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 REGULATORY LIABILITIES AND DEFERRED CREDITS
BY MONTH-END, FOR THE QUARTER ENDED JUNE 30, 1996
<CAPTION>
April 30, May 31, June 30,
1996 1996 1996
(in thousands)
<S> <C> <C> <C>
Operating Reserves:
Accrued Pensions. . . . . . . . . . . . . $ 921 $ 925 $ 928
Accrued Postretirement Benefits Other
Than Pensions . . . . . . . . . . . . . 10,836 11,007 11,194
Accrued Reclamation Costs . . . . . . . . 8,345 8,720 8,975
Accrued Rent. . . . . . . . . . . . . . . 4,628 5,035 5,442
Workers' Compensation . . . . . . . . . . 651 636 466
Postemployment Benefits . . . . . . . . . 363 363 363
Total Operating Reserves. . . . . . . $25,744 $26,686 $27,368
Regulatory Liabilities and Deferred Credits:
Gain on Sale and Leaseback of Plant . . . $ 5,541 $ 5,403 $ 5,265
Mining Cost Normalization . . . . . . . . 12,465 10,685 10,617
Other . . . . . . . . . . . . . . . . . . - - 7
Total Regulatory Liabilities
and Deferred Credits. . . . . . . . $18,006 $16,088 $15,889
</TABLE>
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CENTRAL OHIO COAL COMPANY
INFORMATION CONCERNING CAPITAL IMPROVEMENTS
FOR THE QUARTER ENDED JUNE 30, 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 JUNE 30, 1996
<CAPTION>
April 30, 1996 May 31, 1996 June 30, 1996
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. . . . . . . . . $ 324 $ - $ 324 $ 324 $ - $ 324 $ 324 $ - $ 324
Mining Structures
and Equipment. . . . . . . . 63,520 47,406 16,114 63,259 47,512 15,747 63,259 47,883 15,376
Coal Interests
(net of depletion) . . . . . 6,561 - 6,561 6,386 - 6,386 6,055 - 6,055
Mine Development Costs . . . . 2,292 2,110 182 2,292 2,115 177 2,292 2,120 172
Total Mining Plant in
Service. . . . . . . . . $72,697 $49,516 $23,181 $72,261 $49,627 $22,634 $71,930 $50,003 $21,927
/TABLE
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CENTRAL OHIO COAL COMPANY
INFORMATION CONCERNING OPERATIONS
FOR THE QUARTER ENDED JUNE 30, 1996
There were no significant changes with regard to the Company's operations
during the quarter.
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CENTRAL OHIO COAL COMPANY
STATEMENTS OF COST OF OPERATION
BY MONTH, FOR THE QUARTER ENDED JUNE 30, 1996
<CAPTION>
Three
Months
April May June Ended
1996 1996 1996 6/30/96
(in thousands)
<S> <C> <C> <C> <C>
Direct Labor-UMW* . . . . . . . . . . . . $ 116 $ 75 $ 113 $ 304
Indirect Labor-UMW* . . . . . . . . . . . 458 521 511 1,490
Benefits-UMW* . . . . . . . . . . . . . . 478 508 556 1,542
Salaries and Benefits-Nonunion. . . . . . 142 394 327 863
Operating Supplies. . . . . . . . . . . . 554 627 622 1,803
Repair Parts and Materials. . . . . . . . 197 282 (85) 394
Electricity and Other Utilities . . . . . 219 204 152 575
Outside Services-Maintenance, Haulage
and Reclamation . . . . . . . . . . . . 79 115 128 322
Taxes Other Than Federal Income Taxes** . 220 124 158 502
Rental of Equipment . . . . . . . . . . . 732 731 728 2,191
Depreciation, Depletion and Amortization. 613 326 481 1,420
Mining Cost Normalization***. . . . . . . 4,453 (1,780) (68) 2,605
Reclamation Cost - Net. . . . . . . . . . 90 167 119 376
Other Production Costs. . . . . . . . . . 637 341 759 1,737
Subtotal. . . . . . . . . . . . . . . . . 8,988 2,635 4,501 16,124
Transfers of Production Costs (to)/from
Coal Inventory. . . . . . . . . . . . . (11) (7) (56) (74)
Total . . . . . . . . . . . . . $8,977 $ 2,628 $4,445 $16,050
* 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 JUNE 30, 1996
<CAPTION>
April May June
1996 1996 1996
(in thousands)
<S> <C> <C> <C>
Coal Stockpile:*
Ending Inventory. . . . . . . . $34 $41 $97
Beginning Inventory . . . . . . 23 34 41
Increase (Decrease) in Coal
Stockpile Inventory . . . . . $11 $ 7 $56
* The production level of coal at the Company has been greater than the
demand for coal at Muskingum River Plant, which created a raw coal
stockpile.
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