Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1996 and Ending December 31, 1996
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
CENTERIOR SERVICE COMPANY
(Exact Name of Reporting Company)
A Subsidiary Service Company
("Mutual" or "Subsidiary")
Date of Incorporation April 9, 1986 If not Incorporated, Date of
Organization
State or Sovereign Power under which Incorporated or Organized State of
Ohio
Location of Principal Executive 6200 Oaktree Blvd.
Offices of Reporting Company Independence, OH 44131
Name, title, and address of officer to whom correspondence concerning
this report should be addressed:
6200 Oak Tree Blvd.
E.L. Pepin Controller Independence, OH 44131
(Name) (Title) (Address)
Name of Principal Holding Company Whose Subsidiaries are served by
Reporting Company:
THE CENTERIOR ENERGY CORPORATION
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time Of Filing.--Rule 94 provides that on or before the first
day of May in each calendar year, each mutual service company and each
subsidiary service company as to which the Commission shall have made a
favorable finding pursuant to Rule 88, and every service company whose
application for approval or declaration pursuant to Rule 88 is pending
shall file with the Commission an annual report on Form U-13-60 and in
accordance with the Instructions for that form.
2. Number Of Copies.--Each annual report shall be filed in
duplicate. The company should prepare and retain at least one extra
copy for itself in case correspondence with reference to the report
become necessary.
3. Period Covered By Report.--The first report filed by any
company shall cover the period from the date the Uniform System of
Accounts was required to be made effective as to that company under
Rules 82 and 93 to the end of that calendar year. Subsequent reports
should cover a calendar year.
4. Report Format.--Reports shall be submitted on the forms
prepared by the Commission. If the space provided on any sheet of such
form is inadequate, additional sheets may be inserted of the same size
as a sheet of the form or folded to such size.
5. Money Amounts Displayed.--All money amounts required to be
shown in financial statements may be expressed in whole dollars, in
thousands of dollars or in hundred thousands of dollars, as appropriate
and subject to provisions of Regulation S-X (S210.3-01(b)).
6. Deficits Displayed.--Deficits and other like entries shall be
indicated by the use of either brackets or a parenthesis with
corresponding reference in footnotes. (Regulation S-X, S210.3-01(c))
7. Major Amendments Or Corrections.--Any company desiring to
amend or correct a major omission or error in a report after it has been
filed with the Commission shall submit an amended report including only
those pages, schedules, and entries that are to be amended or corrected.
A cover letter shall be submitted requesting the Commission to
incorporate the amended report changes and shall be signed by a duly
authorized officer of the company.
8. Definitions.--Definitions contained in Instruction 01-8 to the
Uniform System of Accounts for Mutual Service Companies and Subsidiary
Service Companies, Public Utility Holding Company Act of 1935, as
amended February 2, 1979 shall be applicable to words or terms used
specifically within this Form U-13-60.
9. Organization Chart.--The service company shall submit with
each annual report a copy of its current organization chart.
10. Methods Of Allocation.--The service company shall submit with
each annual report a listing of the currently effective methods of
allocation being used by the service company and on file with the
Securities and Exchange Commission pursuant to the Public Utility
Holding Company Act of 1935.
11. Annual Statement Of Compensation For Use Of Capital
Billed.--The service company shall submit with each annual report a copy
of the annual statement supplied to each associate company in support of
the amount of compensation for use of capital billed during the calendar
year.
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or Account Page
Description of Schedules Number Number
and Accounts
COMPARATIVE BALANCE SHEET Schedule I 6,7
SERVICE COMPANY PROPERTY Schedule II 8,9
ACCUMULATED PROVISION FOR DEPRECIATION
AND AMORTIZATION OF SERVICE COMPANY
PROPERTY Schedule III 10
INVESTMENTS Schedule IV 11
ACCOUNTS RECEIVABLE FROM ASSOCIATE
COMPANIES Schedule V 12
FUEL STOCK EXPENSES UNDISTRIBUTED Schedule VI 13
STORES EXPENSE UNDISTRIBUTED Schedule VII 14
MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 15
MISCELLANEOUS DEFERRED DEBITS Schedule IX 16
RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES Schedule X 17
PROPRIETARY CAPITAL Schedule XI 18
LONG-TERM DEBT Schedule XII 19
CURRENT AND ACCRUED LIABILITIES Schedule XIII 20
NOTES TO FINANCIAL STATEMENTS Schedule XIV 21
COMPARATIVE INCOME STATEMENT Schedule XV 22
ANALYSIS OF BILLING - ASSOCIATE COMPANIES Account 457 23
ANALYSIS OF BILLING - NONASSOCIATE
COMPANIES Account 458 24
ANALYSIS OF CHARGES FOR SERVICE -
ASSOCIATE AND NONASSOCIATE COMPANIES Schedule XVI 25,26,27
SCHEDULE OF EXPENSE BY DEPARTMENT OR
SERVICE FUNCTION Schedule XVII 28,29
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 30
OUTSIDE SERVICES EMPLOYED Account 923 31,32,
33,34,35
EMPLOYEE PENSIONS AND BENEFITS Account 926 36
GENERAL ADVERTISING EXPENSES Account 930.1 37
MISCELLANEOUS GENERAL EXPENSES Account 930.2 38
RENTS Account 931 39
TAXES OTHER THAN INCOME TAXES Account 408 40
DONATIONS Account 426.1 41
OTHER DEDUCTIONS Account 426.5 42
NOTES TO STATEMENT OF INCOME Schedule XVIII 43
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Description of Reports or Statements Page
ORGANIZATION CHART 44
METHODS OF ALLOCATION 45
ANNUAL STATEMENT OF COMPENSATION FOR USE N/A
OF CAPITAL BILLED
NOTE: Dollar figures in this report are shown in thousands
unless otherwise noted.
ANNUAL REPORT OF CENTERIOR SERVICE COOMPANY - 1996
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and
prior year.
ACCOUNT ASSETS AND OTHER DEBITS As of December 31
CURRENT PRIOR
SERVICE COMPANY PROPERTY
101 Service Company property (Schedule II) $ - $ -
107 Construction work in progress (Schedule II) - -
Total Property - -
108 Less accumulated provision for depreciation
and amortization of service company
property (Schedule III) - -
Net Service Company Property - -
INVESTMENTS
123 Investments in associate companies (Schedule IV)
124 Other investments (Schedule IV) - 122
Total Investments - 122
CURRENT AND ACCRUED ASSETS
128 Other Special Funds 178 579
131 Cash 168 129
134 Special deposits - -
135 Working funds - -
136 Temporary cash investments (Schedule IV) 100 100
141 Notes receivable (20) (343)
143 Accounts receivable 281 230
144 Accumulated provision for uncollectible
accounts - -
146 Accounts receivable from associate
companies (Schedule V) 67,517 64,520
152 Fuel stock expenses undistributed
(Schedule VI) - -
154 Materials and supplies - -
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 1,031 1,374
171 Interest Receivable - -
174 Miscellaneous current and accrued
assets (Schedule VIII) - -
Total Current and Accrued Assets 69,255 66,589
DEFERRED DEBITS
181 Unamortized debt expense - -
182 Regulatory Assets (240) (240)
184 Clearing accounts - -
186 Miscellaneous deferred debits (Schedule IX) 2,628 1,957
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 1,972 2,717
Total Deferred Debits 4,360 4,434
TOTAL ASSETS AND OTHER DEBITS $73,615 $71,145
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY - 1996
SCHEDULE I - COMPARATIVE BALANCE SHEET
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL As of December 31
CURRENT PRIOR
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) $ 1 $ 1
211 Miscellaneous paid-in-capital (Schedule XI) - -
215 Appropriated retained earnings (Schedule XI) - -
216 Unappropriated retained earnings (Schedule XI) - -
Total Proprietary Capital 1 1
LONG-TERM DEBT
223 Advances from associate companies
(Schedule XII) 24,235 22,132
224 Other long-term debt (Schedule XII) - -
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
Total Long-term Debt 24,235 22,132
OTHER NON-CURRENT LIABILITIES
228.3 Accumulated provision for pensions & benefits 23,066 19,146
228.4 Partnership funds 989 -
Total Other Non-Current Liabilities 24,055 19,146
CURRENT AND ACCRUED LIABILITIES
231 Notes payable - -
232 Accounts payable 9,056 7,466
233 Notes payable to associate
companies (Schedule XIII) - --
234 Accounts payable to associate
companies Schedule XIII) (1,512) (242)
236 Taxes accrued (381) 440
237 Interest accrued (9) 192
238 Dividends declared - -
241 Tax collections payable 767 529
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 9,404 12,075
Total Current and Accrued Liabilities 17,325 20,460
DEFERRED CREDITS
253 Other deferred credits 3,501 5,383
255 Accumulated deferred investment tax credits - -
Total Deferred Credits 3,501 5,383
282 ACCUMULATED DEFERRED INCOME TAXES - -
283 Accumulated Deferred Income Taxes - Other 4,498 4,023
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $73,615 $71,145
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE II - SERVICE COMPANY PROPERTY
Retirements
Beginning or Other Close of
Description of Year Additions Sales Changes 1/ Year
SERVICE COMPANY PROPERTY
Account
301 ORGANIZATION $ $ $ $ $
303 MISCELLANEOUS
INTANGIBLE PLANT
LAND AND LAND RIGHTS
305 STRUCTURES AND
IMPROVEMENTS
306 LEASEHOLD
IMPROVEMENTS
307 EQUIPMENT 2/ __
308 OFFICE FURNITURE
AND EQUIPMENT
309 AUTOMOBILES, OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY 3/ _ _
SUB-TOTAL - - - - -
107 CONSTRUCTION WORK
IN PROGRESS 4/__
TOTAL $ - $ - $ - $ - $ -
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
SCHEDULE II - CONTINUED
2/ SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE
SERVICE - COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF
EQUIPMENT ADDITIONS DURING THE YEAR AND THE BALANCE AT THE CLOSE
OF THE YEAR:
Balance at
Close of
Subaccount Description Additions Year
NONE
3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
4/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE III - ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
Additions
Charged Other
Beginning to Changes Close of
Description of Year Account 403 Retirements (Deduct)1/ Year
Account
301 ORGANIZATION
303 MISCELLANEOUS
INTANGIBLE PLANT
304 LAND AND LAND
RIGHTS
305 STRUCTURES AND
IMPROVEMENTS
306 LEASEHOLD
IMPROVEMENTS
307 EQUIPMENT
308 OFFICE FURNITURE
AND FIXTURES
309 AUTOMOBILES, OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY
$ - $ - $ - $ $ -
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124, "Other Investments", state each
investment separately, with description, including,
the name of issuing company, number of shares or
principal amount, etc.
Under Account 136, "Temporary Cash Investments", list
each investment separately.
Balance at Balance at
Beginning Close of
Description of Year Year
ACCOUNT 123 - INVESTMENT IN ASSOCIATE
COMPANIES $ - $ -
ACCOUNT 124 - OTHER INVESTMENTS :
Purchase of emission allowance 122 -
Account 136 - TEMPORARY CASH INVESTMENTS 100 100
TOTAL $222 $100
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts
receivable from each associate company.
Where the service company has provided accommodation
or convenience payments for associate companies, a
separate listing of total payments for each associate
company by subaccount should be provided.
Balance at Balance at
Beginning Close of
Description of Year Year
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM
ASSOCIATE COMPANIES:
THE CLEVELAND ELECTRIC
ILLUMINATING CO. $44,654 $48,615
THE TOLEDO EDISON COMPANY 19,802 18,733
CENTERIOR ENERGY CORPORATION 2 12
CENTERIOR PROPERTIES COMPANY 33 -
CCO COMPANY 29 157
TOTAL $64,520 $67,517
ANALYSIS OF CONVENIENCE OR ACCOMMODATION
PAYMENTS: Total
Payments
-
TOTAL PAYMENTS $ -
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with
respect to fuel stock expenses during the year and
indicate amount attributable to each associate
company. Under the section headed "Summary" listed
below give an overall report of the fuel functions
performed by the service company.
Labor Expenses Total
ACCOUNT 152 - FUEL STOCK EXPENSES
UNDISTRIBUTED
NONE
TOTAL -- -- --
SUMMARY:
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with
respect to stores expense during the year and indicate
amount attributable to each associate company.
Description Labor Expenses Total
ACCOUNT 163 - STORES EXPENSE
UNDISTRIBUTED $ $ $
NONE
TOTAL $ - $ - $ -
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE VIII - MISCELLANEOUS CURRENT AND ACCRUED ASSETS
INSTRUCTIONS: Provide detail of items in this account. Items less
than $10,000 may be grouped, showing the number of
items in each group.
Balance at Balance at
Beginning Close of
Description of Year Year
ACCOUNT 174 - MISCELLANEOUS CURRENT
AND ACCRUED ASSETS
NONE
TOTAL - -
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less
than $10,000 may be grouped by class showing the
number of items in each class.
Balance at Balance at
Beginning Close of
Description of Year Year
ACCOUNT 186 - MISCELLANEOUS DEFERRED
DEBITS
Deferred Dental Benefit Cost $ 194 $ 201
Deferred Office Equipment 1,208 1,220
Other 555 1,207
TOTAL $1,957 $2,628
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE X - RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide a description of each material research,
development, or demonstration project which incurred
costs by the service corporation during the year.
Description Amount
ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR
DEMONSTRATION
NONE
TOTAL $ -
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE XI - PROPRIETARY CAPITAL
Par Or Outstanding Close
Account Number Of Stated Of Period
Number Class Of Stock Shares Value No. Of Total
201 COMMON STOCK ISSUED 750 $- 750 $1
INSTRUCTIONS: Classify amounts in each account with brief explanation,
disclosing the general nature of transactions which gave
rise to the reported amounts.
Description
ACCOUNT 211 - MISCELLANEOUS PAID IN CAPITAL
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS
TOTAL $ -
INSTRUCTIONS: Give particulars concerning net income or (loss) during
the year, distinguishing between compensation for the use
of capital owed or net loss remaining from servicing
nonassociates per the General Instructions of the Uniform
System of Accounts. For dividends paid during the year in
cash or otherwise, provide rate percentage, amount of
dividend, date declared and date paid.
Balance Net Income Balance
Beginning Or Dividends Close Of
Description of Year (Loss) Paid Year
ACCOUNT 216 - UNAPPROPRIATED
RETAINED EARNINGS
NONE
TOTAL $ - $ - $ - $ -
<TABLE>
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE XII - LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be reported
separately for advances on notes, and advances on open
account. Names of associate companies from which advances
were received shall be shown under the class and series
of obligation column. For Account 224 - Other long term
debt provide the name of creditor company or
organization, terms of the obligation, date of maturity,
interest rate, and the amount authorized and outstanding.
<CAPTION>
Terms of Oblig Date Balance At Balance At Balance At
Class & Series Of Interest Amount Beginning At Close
Name Of Creditor Of Obligation Maturity Rate Authorized Of Year Additions Deductions Of Year
ACCOUNT 223 - ADVANCES
FROM ASSOCIATE
<S> <C> <C> <C> <C>
COMPANIES: Advance on Open $22,132 $341,438 $339,335 $24,235
Account Centerior
Energy Corp.
ACCOUNT 224 - OTHER LONG-TERM DEBT - - - -
TOTAL $22,132 $341,438 $339,335 $24,235
1/GIVE AN EXPLANATION OF DEDUCTIONS: Payments Per Agreements
</TABLE>
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to each
associate company. Give description and amount of
miscellaneous current and accrued liabilities. Items
less than $10,000 may be grouped, showing the number
of items in each group.
Balance at Balance at
Beginning Close of
Description of Year Year
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE
COMPANIES
NONE
TOTAL - -
ACCOUNT 234 - ACCOUNTS PAYABLE TO
ASSOCIATE COMPANIES
The Cleveland Electric Illuminating Co. $(204) $ 600
The Toledo Edison Co. (124) (2,188)
Centerior Energy Corporation 86 76
TOTAL $(242) $(1,512)
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
ACCRUALS - Deferred Compensation -
Exec. Officers $ 141 $ 130
- Net Payroll Payable 1,927 1,941
- Bond Purchase Plan (164) 7
- Stock Purchase Plan 120 53
- Employee Savings Plan-
Before Tax 293 118
- Court Bankruptcy 15 -
- CSC - United Way 41 14
- CSC - Child Support 17 16
- Accrued Vacation 4,296 4,290
- Flexible Spending Acct. -
Health Care 73 -
- Flexible Spending Acct. -
Dependent Care 41 -
- GULP - Executive Insurance 132 132
- Miscellaneous - Other 6 8
- Unclaimed Funds (78) -
- Employee Savings Plan -
After Tax 44 24
- SFAS 112 Workers Comp Liability 537 150
- SFAS 112 Long-Term
Disability 1,164 804
- SFAS 112 Short-Term
Disability 1,585 1,661
- TECO FCU 60 56
- Corporate Incentive
Compensation Payout 1,825 -
TOTAL $12,075 $9,404
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE XIV - NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes
regarding the financial statements or any account
thereof. Furnish particulars as to any significant
contingent assets or liabilities existing at the end
of the year. Notes relating to financial statements
shown elsewhere in this report may be indicated here
by reference.
1. SIGNIFICANT ACCOUNTING POLICIES:
General - Centerior Service Company (Service Company) was
incorporated in 1986 and is a wholly owned subsidiary of Centerior
Energy Corporation (Centerior Energy). The Service Company
provides management, financial, administrative, engineering, legal
and other services to Centerior Energy and Centerior Energy's five
wholly owned subsidiaries, including two electric utilities, The
Cleveland Electric Illuminating Company (Cleveland Electric) and
The Toledo Edison Company (Toledo Edison).
The Service Company follows the Uniform System of Accounts for
Mutual Service Companies as prescribed by the Securities and
Exchange Commission under the Public Utility Holding Company Act
of 1935.
Income And Expense - The Service Company provides its services at
cost. These costs are determined on a direct charge basis to the
extent possible and on a reasonable basis of proration for
indirect costs.
Monthly Billings - As soon as practical after the close of each
month, each company receiving services from the Service Company is
billed for services, overheads and expenses for such month. Such
bills are paid within five business days after receipt of the
bill. The charges for services include no compensation for the use
of equity capital, all of which is furnished to the Service
Company by it's parent, Centerior Energy.
2. SHORT-TERM BORROWING ARRANGEMENTS:
As of December 31, 1996, the Service Company had no bank lines of
credit. The Service Company may borrow up to $25,000,000 under a
$125,000,000 revolving credit facility of Centerior Energy.
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE XV - STATEMENT OF INCOME
Account Description Current Year Prior Year
INCOME
457 Services rendered to associate companies $208,612 $208,076
458 Services rendered to nonassociate
companies - -
415 Jobbing - -
421 Miscellaneous income or loss - -
Total Income 208,612 208,076
EXPENSE
920 Salaries and wages 94,745 69,817
921 Office supplies and expenses 77,152 105,818
922 Administrative expense transferred-
credit - -
923 Outside services employed 20,748 7,615
924 Property insurance - -
925 Injuries and damages (14) 321
926 Employee pensions and benefits 181 7,640
928 Regulatory commission expense - -
930.1 General advertising expenses - -
930.2 Miscellaneous general expenses 4,324 4,952
931 Rents 3,960 2,588
932 Maintenance of structures and equipment - -
403 Depreciation and amortization expense - -
408 Taxes other than income taxes 6,788 9,120
409 Income taxes (679) (453)
410 Provision for deferred income taxes 3,303 1,758
411 Provision for deferred income taxes -
credit (2,082) (1,306)
411.5 Investment tax credit - -
417 Non-utility business venture expense 186 -
426.1 Donations - -
426.5 Other deductions - -
427 Interest on long-term debt - -
430 Interest on debt to associate
companies - -
431 Other interest expense - 206
Total Expense 208,612 208,076
Net Income or (Loss) $ - $ -
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
ANALYSIS OF BILLING
ASSOCIATE COMPANIES - ACCOUNT 457
Direct Indirect Compensation Total
Costs Costs For Use Amount
Name Of Associate Charged Charged Of Capital Billed
Company
457-1 457-2 457-3
Cleveland Electric
Illuminating Company $131,361 $17,227 $ - $148,588
Toledo Edison Company 50,277 9,499 59,776
Centerior Energy
Corporation - 248 - 248
TOTAL $181,638 $26,974 $ - $208,612
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES - ACCOUNT 458
INSTRUCTION: Provide a brief description of the services rendered
to each nonassociate company:
Compen-
sation Excess
Name Of Nonassociate Direct Indirect For Use Or
Company Costs Costs Of Total Defici- Total
Charged Charged Capital Cost ency Amount
458-1 458-2 458-3 458-4 Billed
TOTAL $ - $ - $ - $ - $ - $ -
<TABLE>
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE XVI - ANALYSIS OF CHARGES FOR SERVICE AND
ASSOCIATE AND NONASSOCIATE COMPANIES
INSTRUCTION: Total cost of service will equal for associate and
nonassociate companies the total amount billed under
their separate analysis of billing schedules.
<CAPTION>
ASSOCIATE COMPANY NONASSOCIATE
CHARGES CO. CHARGES
DIRECT INDIRECT DIRECT INDIRECT
COST COST TOTAL COST COST TOTAL
<S> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES $82,138 $12,607 $94,745 $ - $ - $ -
921 OFFICE SUPPLIES AND 67,227 9,925 77,152 - - -
EXPENSES
922 ADMINISTRATIVE
EXPENSE - CREDIT - - - - - -
923 OUTSIDE SERVICES
EMPLOYED 20,135 613 20,748 - - -
924 PROPERTY INSURANCE - - - - - -
925 INJURIES AND DAMAGES (10) (4) (14) - - -
926 EMPLOYEE PENSIONS
AND BENEFITS 78 103 181 - - -
928 REGULATORY COMMISSION - - - - - -
EXPENSE
930.1 GENERAL ADVERTISING - - - - - -
EXPENSE
930.2 MISCELLANEOUS GENERAL 3,378 946 4,324 - - -
EXPENSES
931 RENTS 3,960 - 3,960 - - -
932 MAINTENANCE OF
STRUCTURES AND - - - - - -
EQUIPMENTS
403 DEPRECIATION AND
AMORTIZATION - - - - - -
408 TAXES OTHER THAN
INCOME TAXES 4,004 2,784 6,788 - - -
409 INCOME TAXES (679) - (679) - - -
410 PROVISION FOR
DEFERRED INCOME TAXES 3,303 - 3,303 - - -
411 PROVISION FOR
DEFERRED INCOME
- CREDIT (2,082) - (2,082) - - -
411.5 INVESTMENT TAX
CREDIT - - - - - -
417 NON-UTILITY BUSINESS
VENTURE EXPENSE. 186 - 186 - - -
426.1 DONATIONS - - - - - -
426.5 OTHER DEDUCTIONS - - - - - -
427 INTEREST ON
LONG-TERM DEBT - - - - - -
431 OTHER INTEREST EXPENSE -- -- - - - -
TOTAL EXPENSES = 181,638 26,974 208,612 - - -
COMPENSATION FOR USE
OF EQUITY CAPITAL =
430 INT ON DEBT TO ASSOC.
COMPANIES =
TOTAL COST OF
SERVICE = $181,638 $26,974 $208,612 $ - $ - $ -
</TABLE>
TOTAL CHARGES FOR SERVICE
DIRECT INDIRECT
COST COST TOTAL
920 SALARIES AND WAGES $ 82,138 $12,607 $ 94,745
921 OFFICE SUPPLIES AND EXPENSES 67,227 9,925 77,152
922 ADMINISTRATIVE EXPENSE TRANSFERRED
-CREDIT - - -
923 OUTSIDE SERVICES EMPLOYED 20,135 613 20,748
924 PROPERTY INSURANCE - - -
925 INJURIES AND DAMAGES (10) (4) (14)
926 EMPLOYEE PENSIONS AND BENEFITS 78 103 181
928 REGULATORY COMMISION EXPENSE - - -
930.1 GENERAL ADVERTISING EXPENSE - - -
930.2 MISCELLANEOUS GENERAL EXPENSES 3,378 946 4,324
931 RENTS 3,960 - 3,960
932 MAINTENANCE OF STRUCTURES AND
EQUIPMENTS - - -
403 DEPRECIATION AND AMORTIZATION - - -
408 TAXES OTHER THAN INCOME TAXES 4,004 2,784 6,788
409 INCOME TAXES (679) - (679)
410 PROVISION FOR DEFERRED INCOME TAXES 3,303 - 3,303
411 PROVISION FOR DEFERRED INCOME TAXES
- CREDIT (2,082) - (2,082)
411.5 INVESTMENT TAX CREDIT - - -
417 NON-UTILITY BUSINESS VENTURE EXPENSE 186 - 186
426.1 DONATIONS - - -
426.5 OTHER DEDUCTIONS - - -
427 INTEREST ON LONG-TERM DEBT - - -
431 OTHER INTEREST EXPENSE - - -
TOTAL EXPENSES = 181,638 26,974 208,612
COMPENSATION FOR USE OF EQUITY CAPITAL =
430 INT ON DEBT TO ASSOC.
COMPANIES = - - -
TOTAL COST OF SERVICE = $181,638 $26,974 $208,612
<TABLE>
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE XVII - SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR
SERVICE FUNCTION
Instructions: Indicate each department or service function.
(See Instruction 01-3 General Structure of Accounting
System: Uniform System of Accounts.
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
TOTAL Exec Corporate Strategic Human
AMOUNT OVERHEAD Staff Controllers Treasury Relations Auditing Planning Resources Rates
920 SALARIES AND
<S> <C> <S> <C> <C> <C> <C> <C> <C> <C> <C>
WAGES $ 94,745 - $ 1,885 $ 6,103 $ 2,333 $ 210 $ 1,238 $ 1,029 $ 9,702 $ 1,417
921 OFFICE SUPPLIES
AND EXPENSES 77,152 - 773 (1,295) 2,073 2,882 123 792 19,707 345
922 ADMINISTRATIVE
EXPENSE - - - - - - - - - -
TRANSFERRED
-CREDIT
923 OUTSIDE
SERVICES
EMPLOYED 20,748 - 231 72 286 725 529 23 (1,179) 378
924 PROPERTY
INSURANCE - - - - - - - - - -
925 INJURIES AND
DAMAGES (14) - - - 370 - - - - -
926 EMPLOYEE
PENSIONS AND 181 - - - - - - - 181 -
BENEFITS
928 REGULATORY
COMMISSION - - - - - - - - - -
EXPENSE
930.1 GENERAL
ADVERTISING - - - - - - - - - -
EXPENSE
930.2 MISCELLANEOUS-
GENERAL 4,324 - - - (34) 364 - - (10) -
EXPENSES
931 RENTS 3,960 - - - - - - - - -
932 MAINTENANCE OF
STRUCTURES - - - - - - - - - -
AND EQUIPMENTS
403 DEPRECIATION AND
AMORTIZATION - - - - - - - - - -
408 TAXES OTHER THAN
INCOME TAXES 6,788 - - 6,788 - - - - - -
409 INCOME TAXES (679) - - (679) - - - - - -
410 PROVISION FOR
DEFERRED 3,303 - - 3,303 - - - - - -
INCOME TAXES
411 PROVISION FOR
DEFERRED (2,082) - - (2,082) - - - - - -
INCOME TAXES
- CREDIT
411.5 INVESTMENT TAX
CREDIT - - - - - - - - - -
417 NON-UTILITY BUSINES
VENTURE EXPENSE 186 - - - - - - 1 - -
426.1 DONATIONS - - - - - - - - - -
426.5 OTHER DEDUCTIONS - - - - - - - - - -
427 INTEREST ON
LONG-TERM DEBT - - - - - - - - - -
431 OTHER INTEREST
EXPENSE - - - - - - - - -
TOTAL
EXPENSES = $208,612 $ - $ 2,889 $12,210 $ 5,028 $ 4,181 $ 1,890 $ 1,845 $28,401 $ 2,140
</TABLE>
<TABLE>
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE XVII - SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR
SERVICE FUNCTION
<CAPTION>
Legal & Corprate Fossil & Operations Environ-
ACCOUNT Info Pro- Gov't Communi- Operations System Corporate Customer Customer mental &
NUMBER Systems curement Affairs cations Services Nuclear Planning Mkt Engineer Services Support Safety
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 $10,830 $ 2,548 $ 2,717 $ 1,409 $16,276 $ 240 $ 8,928 $14,098 $ 6,311 $ 4,544 $ 1,299 $ 1,628
921 8,708 1,713 (1,376) 857 3,854 54 1,799 20,228 2,333 12,584 491 507
922 - - - - - - - - - - - -
923 2,549 591 6,685 166 5,765 78 58 1,233 1,164 1,278 - 116
924 - - - - - - - - - - - -
925 - - - - - - - - - (384) - -
926 - - - - - - - - - - - -
928 - - - - - - - - - - - -
930.1 - - - - - - - - - - - -
930.2 - - 4,004 - - - - - - - - -
931 - - - - - - - - - 3,960 - -
932 - - - - - - - - - - - -
403 - - - - - - - - - - - -
408 - - - - - - - - - - - -
409 - - - - - - - - - - - -
410 - - - - - - - - - - - -
411.5 - - - - - - - - - - - -
417 - - - - 185 - - - - - - -
421 - - - - - - - - - - - -
426.1 - - - - - - - - - - - -
426.5 - - - - - - - - - - - -
427 - - - - - - - - - - - -
430 - - - - - - - - - - - -
431 - - - - - - - - - - - -
TOTAL $22,087 $4,852 $12,030 $2,432 $26,080 $372 $10,785 $35,559 $9,808 $21,982 $1,790 $2,251
</TABLE>
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
DEPARTMENTAL ANALYSIS OF SALARIES - ACCOUNT 920
DEPARTMENTAL SALARY EXPENSE NUMBER OF
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO PERSONNEL
Indicate each TOTAL PARENT OTHER NON END OF
department AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
or service function.
Executive Staff $ 1,885 $ - $ 1,885 $ - 11
Controllers 6,103 - 6,103 - 112
Treasury 2,333 - 2,333 - 15
Corporate Relations 210 - 210 - 20
Auditing 1,238 - 1,238 - 17
Strategic Planning 1,029 - 1,029 - 14
Human Resources 9,702 - 9,702 - 73
Procurement 2,548 - 2,548 - 38
Information Systems 10,830 - 10,830 - 154
Legal & Governmental
Affairs 2,717 - 2,717 - 51
Corporate Communi-
cations 1,409 - 1,409 - 20
Fossil Operations
& Services 16,276 - 16,276 - 260
Nuclear 240 - 240 - 1
System Planning 8,928 - 8,928 - 135
Marketing 14,098 - 14,098 - 146
T&D Operations
& Engineering 6,311 - 6,311 - 68
Corporate Services 4,544 - 4,544 - 74
Customer Support 1,299 - 1,299 - 21
Environmental &
Safety 1,628 - 1,628 - 16
Rates 1,417 - 1,417 - 21
TOTAL $94,745 $ - $94,745 $ 0 1,267
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
OUTSIDE SERVICES EMPLOYED - ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee
and included within one subaccount is less than $25,000,
only the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a
subtotal for each type of service.
"A"=ASSOCIATE
"NA"- NON
FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT
Management Consulting
Fees & Expenses
Arter & Hadden Washington, DC 20006 NA $ 81
Bill Usery Associates Washington, DC 20006 NA 503
CAPI West Chester, OH 45071 NA 31
CSC Index Charlotte, NC 28920 NA 1,925
Casazza, Shultz and
Associates Arlington, VA 22209 NA 122
Coopers & Lybrand LLP Chicago, IL 60673 NA 81
Dames & Moore Los Angeles, CA 90070 NA 387
Delta Research Company Chicago, IL 60610 NA 218
Dix & Eaton, Inc. Cleveland, OH 44190 NA 157
ECAR General Account Canton, OH 44702 NA 28
Ernst & Young Cleveland, OH 44115 NA 339
Independent Consulting North Olmsted, OH 44070 NA 26
Jastech Inc. Cleveland, OH 44190-1547 NA 325
Johnson & Higgins Chicago, IL 60673-0998 NA 90
Price Waterhouse Pittsburgh, PA 15264-1252 NA 435
PSP Human Resource
Development Pittsburgh, PA 15219 NA 32
Quadres Corporation Cleveland, OH 44131 NA 450
Ruvolo & Associates Toledo, OH 43604-1220 NA 25
Saunders, Donald H. Toledo, OH 43652 NA 98
Shelton, Donald C Toledo, OH 43652 NA 37
Tim D. Martin &
Associates Herndon, VA 20170 NA 115
UMS Group Inc. Parsippany, NJ 07054 NA 99
Other Payees (25) NA 151
5,755
Auditors Fees & Expenses
Arthur Andersen & Co. Cleveland, OH 44114 NA 1,001
1,001
Legal Fees & Expenses
Baker & Hostetler Cleveland, OH 44190 NA 50
Brown & Wood New York, NY 10048 NA 52
Calfee, Halter &
Griswold Cleveland, OH 44114-2688 NA 559
Fuller & Henry Toledo, OH 43603-2088 NA 234
Jones, Day Reavis
& Pogue Cleveland, OH 44190 NA 97
McHugh & McCarthy Sylvania, OH 43560 NA 97
McLaren, Richard W. Moreland Hills, OH 44022 NA 212
Reid & Priest New York, NY 10009-4097 NA 123
Shaw, Pittman, Potts
& Trowbridge Washington, DC 20037-1128 NA 235
Sidley & Austin Chicago, IL 60603 NA 81
Slover & Loftus Washington, DC 20036 NA 165
Squire, Sanders,
& Dempsey Cleveland, OH 44114-1304 NA 2,598
Swidler & Berlin Washington, DC 20007 NA 73
Wilkes, Artis & Hedrick Washington DC 20006-2897 NA 34
Other Payees (43) NA 125
4,735
Engineering Services
Babcock & Wilcox Company Pittsburgh, PA 15251 NA 80
CDI Corporation Chicago, Il 60693 NA 112
Dames & Moore Los Angeles, CA 90070 NA 51
Erin Enginering &
Research Walnut Creek, CA 94596 NA 139
Fischer Resources Inc. Mayfield Hts, OH 44124 NA 48
Gillett Lehman Associates Town & Country, MS 63017 NA 25
Sargent & Lundy Chicago, IL 60603-5780 NA 54
Other Payees (10) NA 38
547
Programming Services
IBM Corporation Chicago, IL 60603 NA 105
Network Compatability Group Delaware, OH 43015 NA 234
Pacific Dataware Inc. Lake Oswego, OR 97035 NA 42
Software Answers Inc. Macedonia, OH 44056 NA 71
Tech Resource Group Midwest Cincinnati, OH 45242 NA 32
Other Payees (8) NA 60
544
Other Services
Barr Devlin Associates New York, NY 10022 NA 1,560
Barbour Research, Inc. Toledo, OH 43614 NA 155
Buckeye State Locating Service Westlake, OH 44145 NA 140
Business Research Service Cleveland, OH 44122 NA 33
Central Locating Service Syracuse, NY 13206 NA 26
Cleveland Electric
Illuminating Co Cleveland, OH 44101 A 1,115
Co-Development International Los Gatos, CA 95030 NA 379
Comys Technical Services Charlotte, NC 28260 NA 114
Connecticut General Life Hartford, CT 06152 NA 127
Control Solutions Inc. Brookpark, OH 44142 NA 46
CPM Scheduling Services Concord, Oh 44060 NA 175
Cutler/Williams Charlotte, NC 28260 NA 30
Dorsey and Company Cleveland, OH 44115 NA 93
Energy Services Group Toledo, OH 43614 NA 43
EPRI Chicago, IL 60693 NA 54
EVTC Independece, OH 44131 NA 50
FTI Corporation Baltimore, MD 21263 NA 84
Gateway Commerce Center Wampum, Pa 16157 NA 55
Geschke Kasper & Associates Independence, OH 44131 NA 27
Glazer Research Associates Cleveland, OH 44022 NA 30
Hamilton & Associates Columbus, OH 43215 NA 44
Health Care Solutions Toledo, OH 45271 NA 40
McHale USConnect Akron, OH 44309 NA 699
Medical College of Ohio Toledo, OH 43609 NA 55
National Decision Systems San Deigo, CA 92191 NA 133
New Harbor Incorporated New York, NY 10022 NA 211
New Media Incorporated Cleveland, OH 44194 NA 42
Ohio Edison Akron, OH 44308 NA 447
Penn Mutual Insurance Cleveland, OH 44115 NA 98
Pioneer-Standard Electronics Pittsburgh, PA 15250 NA 322
Potomac Communications Group Washington, DC 20006 NA 30
RGP/Associates Parkersburg, WV 26104 NA 37
Root Learning Inc. Perrysburg, OH 43552 NA 60
Ryder Integrated Logistics Pittsburgh, PA 15251 NA 34
S&P Solutions Cleveland, OH 44192 NA 85
SRC Systems Inc. Bala Cynwyd, PA 19004 NA 460
St. Charles Hospital Oregon, OH 43616 NA 26
St. Vincent Medical Center Toledo, OH 43652 NA 39
Sharon Mutter Field Source Carmel, IN 46032 NA 35
Strategic Consumer Research Cleveland, OH 44132 NA 33
Strategic Global Policy Columbus, OH 43215 NA 150
Sybase Cleveland, OH 44115 NA 71
TAD Technical Services Co. Charlotte, NC 28260 NA 189
Toledo Edison Company Toledo, OH 43652 A (1,567)
Walker Information Indianapolis, IN 46266 NA 103
Other Payees(487) NA 1,954
(8,166)
Total Outside Services $20,748
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
EMPLOYEE PENSIONS AND BENEFITS - ACCOUNT 926
INSTRUCTIONS: Provide a listing of each pension plan and benefit program
provided by the service company. Such listing should be
limited to $25,000.
D E S C R I P T I O N AMOUNT
Blue Cross/Blue Shield $1,039
Group Life Insurance 220
HMO-Health Ohio 74
AETNA 56
Kaiser Permanente 72
Dental Insurance 137
Prescription Drug Program 127
Executives - Misc Supplemental Benefits 47
Educational Assistance Program 86
SFAS 106 (1,825)
Employee Assistance Program 104
Company Picnics 44
TOTAL $ 181
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
GENERAL ADVERTISING EXPENSES ACCOUNT 930.1
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses", classifying the items according
to the nature of the advertising and as defined in the account
definition. If a particular class includes an amount in excess
of $3,000 applicable to a single payee, show separately the
name of the payee and the aggregate amount applicable thereto.
D E S C R I P T I O N NAME OF PAYEE AMOUNT
NONE
TOTAL $
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
MISCELLANEOUS GENERAL EXPENSES - ACCOUNT 930.2
INSTRUCTIONS: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses", classifying such expenses
according to their nature. Payments and expenses permitted by
Section 321 (b) (2) of the Federal Election Campaign Act, as
amended by Public Law 94-283 in 1976 (2 U.S.C.S. 441 (b) (2)
shall be separately classified.
D E S C R I P T I O N AMOUNT
Board of Directors Fees $ 364
Corporate, Civic, Employee Membership,
Industry Dues and Corporate Contributions 3,960
TOTAL $4,324
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
RENTS - ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account 931,
"Rents", classifying such expenses by major groupings of
property, as defined in the account definition of the
Uniform System of Accounts.
T Y P E O F P R O P E R T Y AMOUNT
Office Buildings & Grounds $3,960
TOTAL $3,960
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
TAXES OTHER THAN INCOME TAXES - ACCOUNT 408
INSTRUCTION: Provide an analysis of Account 408, "Taxes Other Than Income
Taxes". Separate the analysis into two groups: (1) other than
U.S. Government taxes, and (2) U.S. Government taxes. Specify
each of the various kinds of taxes and show the amounts thereof.
Provide a subtotal for each class of tax.
K I N D O F T A X AMOUNT
(1) OTHER THAN U.S. GOVERNMENT TAXES
Sales & Use Tax $1,740
State Unemployment Tax 38
Real & Personal Property Tax 5
Subtotal 1,783
(2) US GOVERNMENT TAXES
FICA 4,919
Federal Unemployment Tax 86
SubTotal 5,005
TOTAL $6,788
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
DONATIONS - ACCOUNT 426.1
INSTRUCTION: Provide a listing of the amount included in Account
426.1, "Donations", classifying such expenses by its
purpose. The aggregate number and amount of all items
of less than $3,000 may be shown in lieu of details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
NONE
TOTAL $
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
OTHER DEDUCTIONS - ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account
426.5,"Other Deductions", classifying such expenses
according to their nature.
D E S C R I P T I O N NAME OF PAYEE AMOUNT
NONE
TOTAL
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
For the Year Ended December 31, 1996
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
INSTRUCTIONS: The space below is provided for important notes
regarding the statement of income or any account
thereof. Furnish particulars as to any significant
increase in services rendered or expenses incurred
during the year. Notes relating to financial
statements shown elsewhere in this report may be
indicated here by reference.
See Schedule XIV - Notes to Financial Statements
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
ORGANIZATION CHART
BOARD OF DIRECTORS
Chairman, President & CEO
Executive Vice President,
Operations & Engineering
V. P. Customer Support
Sr. V. P. Fossil and T&D Operations
V.P. T&D Operations
Senior V. P. Nuclear and V. P. Nuclear-Perry
V. P. Nuclear - Davis-Besse
V. P. Finance & Administration
Controller and Assistant Secretary
Treasurer
V. P. Legal & Government Affairs
and General Counsel
Corporate Secretary
V. P. Sales and Marketing
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
METHODS OF ALLOCATION
A. Kilowatt Sales Ratio
B. Company Load Ratio
C. Number of Customers Ratio
D. Number of Company Employees Ratio
E. Plant Investment Ratio
F. Level of Construction Ratio
G. Total Asset Ratio
H. Computer Resource Unit Ratio
I. Tons of Fuel Acquired Ratio
J. Nuclear Capacity Ratio
K. Number of Service Company Employees by Group Ratio
L. Amount of Nuclear Generation Ratio
M. Composite Factor Ratio
ANNUAL REPORT OF CENTERIOR SERVICE COMPANY
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935 and the rules and regulations of the
Securities and Exchange Commission issued thereunder, the
undersigned Company has duly caused this report to be signed on
its behalf by the undersigned officer thereunto duly authorized.
CENTERIOR SERVICE COMPANY
(Name of Reporting Company)
By: E. LYLE PEPIN
(Signature of Signing Officer)
E. Lyle Pepin, Controller
(Printed Name and Title of
Signing Officer)
Date: February 25, 1997
<TABLE> <S> <C>
<ARTICLE> OPUR2
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 0
<TOTAL-INVESTMENTS> 0
<TOTAL-CURRENT-ASSETS> 69,255
<TOTAL-DEFERRED-DEBITS> 4,360
<OTHER-ASSETS-AND-DEBITS> 0
<TOTAL-ASSETS-AND-DEBITS> 73,615
<TOTAL-PROPRIETARY-CAPITAL> 1
<TOTAL-LONG-TERM-DEBT> 24,235
<NOTES-PAYABLE> 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0
<OTHER-CURR-AND-ACCRUED-LIAB> 41,380
<TOTAL-DEFERRED-CREDITS> 3,501
<DEFERRED-INCOME-TAX> 4,498
<TOT-LIABIL-AND-PROPRIET-CAP> 73,615
<SERVICES-ASSOCIATE-COMPANIES> 0
<SERVICES-NON-ASSOCIATE-COMP> 0
<MISC-INCOME-OR-LOSS> 0
<TOTAL-INCOME> 208,612
<SALARIES-AND-WAGES> 94,745
<EMPLOYEE-PENSION-AND-BENEFIT> 181
<OTHER-EXPENSES> 113,686
<TOTAL-EXPENSES> 208,612
<NET-INCOME> 0
<TOTAL-EXPENSES-DIRECT-COST> 181,638
<TOTAL-EXPENSES-INDIRECT-COST> 26,974
<TOT-EXP-DIRECT-AND-INDIRECT> 208,612
<PERSONNEL-END-OF-YEAR> 1,267
</TABLE>
