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Previous: VANGUARD PENNSYLVANIA TAX FREE FUND, 24F-2NT, 1998-02-27 |
Next: OPPENHEIMER BOND FUND FOR GROWTH /MA/, NSAR-B, 1998-02-27 |
<PAGE> 1
File No. 1-9120
FORM U-3A-2
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
Statement by Holding Company
Claiming Exemption Under Rule U-3A-2
from the Provisions of the
Public Utility Holding Company Act of 1935
To Be Filed Annually Prior to March 1
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
--------------------------------------------
(Name of company)
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
its statement claiming exemption as a holding company from the provisions of the
Public Utility Holding Company Act of 1935 and submits the following
information:
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1. Name, State of organization, location and nature of business of
claimant, and every subsidiary thereof, other than any exempt wholesale
generator (EWG) or foreign utility company in which claimant directly or
indirectly holds an interest.
1. Public Service Enterprise Group Incorporated (Enterprise), a New Jersey
corporation, has its principal executive offices at 80 Park Plaza, Newark, New
Jersey 07101. Enterprise has two direct wholly-owned subsidiaries, Public
Service Electric and Gas Company (PSE&G) and Enterprise Diversified Holdings
Incorporated (EDHI). Enterprise also has 217 indirect subsidiaries. Details are
as follows:
1.1. PSE&G, a New Jersey corporation, with its principal executive offices at 80
Park Plaza, Newark, New Jersey 07101, is an operating public utility company
engaged principally in the generation, transmission, distribution and sale of
electric energy service and in the transmission, distribution and sale of gas
service in New Jersey. PSE&G supplies its gas customers principally with natural
gas. PSE&G supplements natural gas with purchased refinery gas and liquefied
petroleum gas produced from propane. About 40% of PSE&G's daily gas capacity is
high load factor natural gas and is available every day of the year. The
remainder comes from field storage, liquefied natural gas, seasonal sales,
contract peaking supply, propane and refinery gas. The adequacy of supply of all
types of gas is affected by the nationwide availability of all sources for
energy production. PSE&G is Enterprise's principal operating subsidiary. As of
December 31, 1997, PSE&G comprised 83% of Enterprise's assets. PSE&G's 1997
revenues were 96% of Enterprise's revenues and PSE&G's earnings available to
Enterprise were 92% of Enterprise's net income. Generation, transmission,
distribution and sale of electric energy service and the transmission,
distribution and sale of gas service will continue as the principal business of
Enterprise for the foreseeable future. The accounting and rates of PSE&G are
subject in certain respects to the requirements of the New Jersey Board of
Public Utilities (BPU) and the Federal Energy Regulatory Commission (FERC).
PSE&G has eight direct wholly-owned subsidiaries, one direct 99%-owned
subsidiary (the remaining 1% of which is owned by PSE&G's subsidiary, Public
Service Corporation of New Jersey), and one indirect wholly-owned subsidiary, as
follows:
1.1.A. PSE&G Fuel Corporation (Fuelco), a New Jersey corporation, has its
principal executive offices at 80 Park Plaza, Newark, New Jersey 07101. Fuelco
provides financing, unconditionally guaranteed by PSE&G, of up to $125 million
aggregate principal amount at any one time outstanding with respect to its
42.49% interest in the nuclear fuel acquired for Peach Bottom Atomic Power
Station Units 2 and 3.
1.1.B. New Jersey Properties, Inc. (NJP), a New Jersey corporation, has its
principal executive offices at 80 Park Plaza, Newark, New Jersey 07101. NJP
acquires certain real estate from time to time.
1.1.C. Public Service Corporation of New Jersey (PSC of NJ), a New Jersey
corporation, has its principal executive offices at 80 Park Plaza, Newark, New
Jersey 07101. PSC of NJ owns 1% of Public Service New Millennium Economic
Development Fund L.L.C. (see below).
1.1.D. Public Service Conservation Resources Corporation (PSCRC), a New Jersey
corporation, has its principal executive offices at 499 Thornall Street, Edison,
New Jersey 08837. PSCRC finances, markets and develops energy conservation
projects, mostly within PSE&G's service territory.
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1.1.E. Soil Extraction Technologies, Inc., a New Jersey corporation, has its
principal executive offices at 80 Park Plaza, Newark, New Jersey 07101, and is
presently inactive.
1.1.F. The Francis Corporation (TFC), a New Jersey corporation, has its
principal executive offices at 80 Park Plaza, Newark, New Jersey 07101. TFC
acquires certain real estate from time to time.
1.1.G. Enterprise Ventures & Services Corporation, a New Jersey corporation, has
its principal executive offices at 80 Park Plaza, Newark, New Jersey 07101, and
is presently inactive.
1.1.H. Public Service New Millennium Economic Development Fund L.L.C. (New
Millennium), a New Jersey limited liability company formed in 1997, has its
principal executive offices at 80 Park Plaza, Newark, New Jersey 07101. New
Millennium is a direct 99% - owned subsidiary of PSE&G, with the remaining 1%
owned by PSC of NJ. New Millennium supports economic development and programs
providing technology to improve education and health care in urban areas of New
Jersey.
1.1.H.1. Tradelink New Jersey International Business Center, Inc. (Tradelink), a
New Jersey corporation formed in 1997, has its principal executive offices at 80
Park Plaza, Newark, New Jersey 07101. Tradelink is a direct subsidiary of Public
Service New Millennium Economic Development Fund L.L.C. and operates a full
service turn-key office suite facility designed to attract foreign firms to
establish a business presence in New Jersey.
1.1.I. Public Service Energy Trading Company (PS Trading), a New Jersey
corporation formed in 1997, has its principal executive offices at 80 Park
Plaza, Newark, New Jersey, 07101 and is currently inactive.
1.2. EDHI, a New Jersey corporation, has its principal executive offices at 80
Park Plaza, Newark, New Jersey 07101. EDHI is the parent of Enterprise's
nonutility businesses. As of December 31, 1997, EDHI comprised 16% of
Enterprise's assets. EDHI's 1997 revenues were 4% of Enterprise's revenues and
EDHI's 1997 net income was 8% of Enterprise's net income. EDHI's six direct
wholly-owned subsidiaries and 201 indirect subsidiaries are as follows:
1.2.A. Public Service Resources Corporation (PSRC), a New Jersey corporation,
has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07101.
PSRC makes primarily passive investments in assets that can provide funds for
future growth as well as provide incremental earnings for EDHI, including
leveraged and direct financing leases, project financings, venture capital
funds, leveraged buyout funds and securities. Some of the transactions in which
PSRC and its subsidiaries participate involve other equity investors. As of
December 31, 1997, PSRC comprised 9% of Enterprise's assets. PSRC's 1997
revenues were 2% of Enterprise's revenues and PSRC's 1997 net income was 10% of
Enterprise's net income. PSRC is a wholly-owned subsidiary of EDHI. PSRC has
thirteen direct and six indirect wholly-owned subsidiaries as follows:
1.2.A.1. Resources Capital Financing Corporation (RCFC), a New Jersey
corporation, has its principal executive offices at 80 Park Plaza, Newark, New
Jersey 07101. RCFC has as its sole investment an undivided interest in the
Beaver Valley 2 Nuclear Generating Station, Shippingport, Pennsylvania by virtue
of a leveraged lease transaction.
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1.2.A.2. Resources Capital Investment Corporation (RCIC), a New Jersey
corporation, has its principal executive offices at 80 Park Plaza, Newark, New
Jersey 07101. RCIC has investments in several leveraged lease transactions.
1.2.A.3. The Water Source, Inc., a New Jersey corporation, has its principal
executive offices at 80 Park Plaza, Newark, New Jersey 07101, and is presently
inactive.
1.2.A.4. Resources Capital Sales Corporation (RCSC) is incorporated under the
laws of the United States Virgin Islands and has its principal executive offices
at Guardian Building, Havensight, Saint Thomas, United States Virgin Islands
00801. RCSC was formed in connection with investment activities of PSRC to
receive the benefits available to a foreign sales corporation (FSC) under the
Internal Revenue Code for the purpose of arranging the export of sales and
leases of United States manufactured products, including the financing,
management, negotiation and contracting of such sales and leases.
1.2.A.5. Resources Capital Management Corporation (RCMC), a New Jersey
corporation, has its principal executive offices at 80 Park Plaza, Newark, New
Jersey 07101. As of December 31, 1997, RCMC comprised 3% of Enterprise's assets.
RCMC's 1997 revenues were 0.7% of Enterprise's revenues and RCMC's 1997 net
income was 4% of Enterprise's net income. RCMC has investments in a project
financing and several leveraged leases. RCMC has six direct wholly-owned
subsidiaries as follows:
1.2.A.5.(a) Franklin Street Real Estate, Inc. (Franklin), a Delaware
corporation, has its principal executive offices at 80 Park Plaza, Newark, New
Jersey 07101. Franklin acts as a lessee under a master lease and lessor under an
operating lease with regard to the leveraged lease investment of RCMC in a
Detroit, Michigan office complex.
1.2.A.5.(b) Renaissance Tower Associates, Inc. (Tower), a Connecticut
corporation, has its principal executive offices at 80 Park Plaza, Newark, New
Jersey 07101. Tower is the lender under a loan agreement and issuer of lender
notes under a leveraged lease transaction.
1.2.A.5.(c) RCMC Sales Corporation (RCMC SC) is incorporated under the laws of
the United States Virgin Islands, and has its principal executive offices at
Guardian Building, Havensight, Saint Thomas, United States Virgin Islands 00801.
RCMC SC was formed as a FSC in connection with investment activities of RCMC.
1.2.A.5.(d) RCMC One, Incorporated, a New Jersey corporation, has its principal
executive offices at 80 Park Plaza, Newark, New Jersey 07101, and is presently
inactive.
1.2.A.5.(e) RCMC, Inc. (RCMCI), a Delaware corporation, has its principal
executive offices at 1105 North Market Street, Suite 1128, P.O. Box 8985,
Wilmington, Delaware 19899. RCMCI has investments in four foreign aircraft
leveraged leases, a limited partnership investment in an advanced flue gas
desulfurization facility and a limited partnership investment in an ethylene
facility in Sweeney, Texas.
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1.2.A.5.(f) RCMC I, Inc. (RCMC I), a Delaware corporation, has its principal
executive offices at 1105 North Market Street, Suite 1128, P.O. Box 8985,
Wilmington, Delaware 19899. RCMC I has investments in a leveraged lease of an
undivided interest of System Energy Resources Inc.'s interest in a nuclear
generating station in Port Gibson, Mississippi and in a leveraged lease of an
office facility in Denver, Colorado.
1.2.A.6. PSRC Sales Corporation One (PSRC One) is incorporated under the laws of
the United States Virgin Islands and has its principal executive offices at
Guardian Building, Havensight, Saint Thomas, United States Virgin Islands 00801.
PSRC One was formed as a FSC in connection with certain investment activities of
PSRC.
1.2.A.7. PSRC Sales Corporation Two (PSRC Two) is incorporated under the laws of
the United States Virgin Islands and has its principal executive offices at
Guardian Building, Havensight, Saint Thomas, United States Virgin Islands 00801.
PSRC Two was formed as a FSC in connection with certain investment activities of
PSRC.
1.2.A.8. PSRC Sales Corporation Three (PSRC Three) is incorporated under the
laws of the United States Virgin Islands and has its principal executive offices
at Guardian Building, Havensight, Saint Thomas, United States Virgin Islands
00801. PSRC Three was formed as a FSC in connection with certain investment
activities of PSRC.
1.2.A.9. PSRC Sales Corporation Four (PSRC Four) is incorporated under the laws
of the United States Virgin Islands and has its principal executive offices at
Guardian Building, Havensight, Saint Thomas, United States Virgin Islands 00801.
PSRC Four was formed as a FSC in connection with certain investment activities
of PSRC.
1.2.A.10. Public Service Gas Marketing Company, a Delaware corporation, has its
principal executive offices at 80 Park Plaza, Newark, New Jersey 07101, and is
presently inactive.
1.2.A.11. PSRC, Inc. (PSRCI), a Delaware corporation, has its principal
executive offices at 1105 North Market Street, Suite 1128, P.O. Box 8985,
Wilmington, Delaware 19899. PSRCI has investments in the leveraged lease of a
zinc sintering facility in Monaca, Pennsylvania and a limited partnership
interest in a developer of an historic real estate rehabilitation project in
Philadelphia, Pennsylvania.
1.2.A.12. PSRC I, Inc. (PSRC I), (formerly PSRC Del. Inc.) a Delaware
corporation, has its principal executive offices at 1105 North Market Street,
Suite 1128, P.O. Box 8985, Wilmington, Delaware 19899. PSRC I has investments in
leveraged buyout funds, limited partnerships and securities.
1.2.A.13. Enterprise Energy Technology Group, Inc., a Delaware corporation, has
its principal executive offices at 80 Park Plaza, Newark, New Jersey 07101, and
is presently inactive.
1.2.B. Community Energy Alternatives Incorporated (CEA), a New Jersey
corporation, has its principal executive offices at 1200 East Ridgewood Avenue,
Ridgewood, New Jersey 07450. CEA is a direct and indirect investor in and
developer and operator of domestic and foreign cogeneration, distribution and
power production facilities, the majority of which are domestic facilities
designated as "qualifying
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facilities" (QFs) under the Public Utility Regulatory Policies Act of 1978, as
amended (PURPA), four of which are designated as a "foreign utility companies"
(FUCOs) under the Public Utility Holding Company Act of 1935, as amended
(PUHCA), and six of which are designated as "exempt wholesale generators" (EWGs)
under PUHCA. CEA is a wholly-owned subsidiary of EDHI. CEA has two direct
wholly-owned subsidiaries, CEA New Jersey, Inc. (CEA NJ) and CEA USA, Inc. (CEA
USA), as well as 165 indirect subsidiaries including limited and general
partnership interests. CEA NJ and its subsidiaries invest in projects in New
Jersey which sell power to PSE&G. CEA USA and its subsidiaries invest in
projects which sell power to other domestic and foreign entities as well as
transmission and distribution projects. In addition to its investment in CEA NJ
and CEA USA, CEA is a limited partner in two QF's: (i) UAH-Hydro Kennebec
Limited Partnership (15.6% partnership interest) which owns a hydroelectric
facility in Winslow, Maine, and (ii) Luz Solar Partners, III (8.9% partnership
interest) which owns a solar facility in Kramer Junction, California. CEA also
is a limited partner in (i) Indeck North American Power Fund, L.P. (Indeck)
(6.8% partnership interest) which invests in QFs and EWGs, and (ii) Indeck
North American Power Partners, L.P. (13.3% partnership interest), which is the
general partner of Indeck. As of December 31, 1997, CEA comprised 7% of
Enterprise's assets. CEA's 1997 revenues were 1% of Enterprise's revenues and
CEA's 1997 net income was 3% of Enterprise's net income.
1.2.B.1. CEA NJ, a New Jersey corporation, has its principal executive offices
at 1200 East Ridgewood Avenue, Ridgewood, New Jersey 07450. CEA NJ has four
direct subsidiaries and four indirect subsidiaries as described below:
1.2.B.1.(a) CEA Bayonne, Inc. (CEA BI), a New Jersey corporation, has its
principal executive offices at 1200 East Ridgewood Avenue, Ridgewood, New Jersey
07450. CEA BI is a joint venturer in Cogen Technologies NJ Venture (5.25%
interest) which owns a natural gas-fired cogeneration QF in Bayonne, New Jersey.
1.2.B.1.(b) CEA Eagle Point, Inc. (CEA EPI), a New Jersey corporation, has its
principal executive offices at 1200 East Ridgewood Avenue, Ridgewood, New Jersey
07450. CEA EPI is a 50% general partner in Eagle Point Cogeneration Partnership
(EPCP).
1.2.B.1.(b)(i) EPCP, a New Jersey limited partnership, has its principal
executive offices at U.S. Route 130 and Interstate 295, West Deptford, New
Jersey 08096, and owns a natural gas-fired cogeneration QF in West Deptford, New
Jersey.
1.2.B.1.(c) CEA Newark Bay, Inc. (CEA NBI), a New Jersey corporation, has its
principal executive offices at 1200 East Ridgewood Avenue, Ridgewood, New Jersey
07450. CEA NBI is a 1% general partner in Newark Bay Cogeneration Partnership,
L.P. (NBCPLP). CEA NJ is a 49% limited partner in NBCPLP.
1.2.B.1.(c)(i) NBCPLP, a New Jersey limited partnership, has its principal
executive offices at 414-462 Avenue P, Newark, New Jersey 07105. NBCPLP owns a
natural gas-fired cogeneration QF in Newark, New Jersey. NBCPLP also owns 100%
of NBCP Urban Renewal Corporation (NBCPURC) and a 99% limited partnership
interest in NBCP Urban Renewal Partnership (NBCPURP).
1.2.B.1.(c)(i)(A) NBCPURC, a New Jersey corporation, has its principal executive
offices at 1200 East Ridgewood Avenue, Ridgewood, New Jersey 07450. NBCPURC is a
1% general partner in NBCPURP.
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1.2.B.1.(c)(i)(A)(i) NBCPURP, a New Jersey limited partnership, has its
principal executive offices at 414-462 Avenue P, Newark, New Jersey 07105.
NBCPURP leases the site of a natural gas-fired cogeneration QF in Newark, New
Jersey.
1.2.B.1.(d) CEA Newark Bay Services, Inc. (CEA NBS), a New Jersey corporation,
has its principal executive offices at 1200 East Ridgewood Avenue, Ridgewood,
New Jersey 07450. CEA NBS provides operation and maintenance services to a
natural gas-fired cogeneration facility in Newark, New Jersey, which is a QF.
(See CEA NBI above.)
1.2.B.2. CEA USA, a New Jersey corporation, has its principal executive offices
at 1200 East Ridgewood Avenue, Ridgewood, New Jersey 07450. CEA USA has a total
of 157 direct and indirect subsidiaries including limited and general
partnership interests as described below:
1.2.B.2.(a) CEA Asia, Inc. (CEA Asia), a Delaware corporation, has its principal
executive offices at Room 1710 Harbour Centre, 25 Harbour Road, Wanchai, Hong
Kong and is a developer of power production facilities in Asia which are each
expected to qualify upon completion as an EWG or a FUCO. CEA Asia has the
following direct and indirect wholly-owned subsidiaries:
1.2.B.2.(a)(i) CEA Asia Ltd., a Bermuda corporation, has its principal executive
offices at Clarendon House, 2 Church Street, Hamilton, Bermuda, and is a
developer of EWG and FUCO power production facilities in Asia. CEA Asia, Ltd.
has one wholly-owned subsidiary.
1.2.B.2.(a)(i)(A) Shanghai Yaneng Trading Company Limited, a Chinese company,
has its principal executive offices at No. 1 Ji Long Road, Room 2104, Wai Gao
Qiao Bonded Zone, Shanghai, People's Republic of China, and provides personnel
and other services for the development of CEA Asia Ltd.'s projects in China.
1.2.B.2.(b) CEA Baja, Inc., a Delaware corporation, has its registered office at
1209 Orange Street, Wilmington, Delaware 19801, and is presently inactive.
1.2.B.2.(c) CEA Conemaugh Management, Inc. (CEA CMI), a New Jersey corporation,
has its principal executive offices at 1200 East Ridgewood Avenue, Ridgewood,
New Jersey 07450. CEA CMI is a 0.5% general partner in Pennsylvania Renewable
Resources, Associates (PRRA).
1.2.B.2.(c)(i) PRRA, a Pennsylvania limited partnership, has its principal
executive offices at 50 Tice Boulevard, Woodcliff Lake, New Jersey 07675. PRRA
owns a hydroelectric QF in Saltsburg, Pennsylvania. CEA Mount Carmel, Inc.
(described below) is a 49.5% limited partner in PRRA.
1.2.B.2.(d) CEA GWF, Inc., a New Jersey corporation, has its principal executive
offices at 1200 East Ridgewood Avenue, Ridgewood, New Jersey 07450, and has two
direct wholly-owned subsidiaries as well as a 24.25% limited partnership
interest in each of GWF Power System, L.P. (GWFLP) and Hanford L.P. (HLP) whose
operations are described below:
1.2.B.2.(d)(i) CEA Bay Area, Inc. (CEA Bay), a Delaware corporation, has its
principal executive offices at 225 Lennon Lane, Suite 120, Walnut Creek,
California 94598. CEA Bay is a 0.5% general partner in GWFLP (described below),
which is the owner and operator of five petroleum coke-fired small power
production facilities in Contra Costa County, California. All five facilities
are QFs.
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1.2.B.2.(d)(ii) CEA Hanford, Inc. (CEA HI), a Delaware corporation, has its
principal executive offices at 225 Lennon Lane, Suite 120, Walnut Creek,
California 94598. CEA HI is a 0.5% general partner in HLP (described below),
which is the owner of a petroleum coke and natural gas-fired cogeneration QF in
Hanford, California.
1.2.B.2.(e) CEA Hawaiian Investment, Inc., a Delaware corporation, has its
registered office at 1209 Orange Street, Wilmington, Delaware 19801, and owns a
48.49% limited partnership interest in Kalaeloa Investment Partners, L.P.
(KIPLP), a Delaware limited partnership.
1.2.B.2.(f) CEA Hawaiian Management, Inc., a Delaware corporation, has its
registered office at 1209 Orange Street, Wilmington, Delaware 19801, and is a
general partner (1% partnership interest) in KIPLP.
1.2.B.2.(f)(i) KIPLP, a Delaware limited partnership, has its registered office
at 1209 Orange Street, Wilmington, Delaware 19801, and owns a 99% limited
partnership interest in Kalaeloa Partners, L.P. (KPLP).
1.2.B.2.(f)(i)(a) KPLP, a Delaware limited partnership, has its registered
office at 1209 Orange Street, Wilmington, Delaware 19801, and owns a heavy
oil-fired cogeneration QF on the Island of Oahu in Hawaii.
1.2.B.2.(g) CEA India, Inc., a Delaware corporation, has its principal executive
offices at Ashok Hotel, 50-B, Chanakya Puri, New Delhi 110021, India and is a
developer of power production facilities in India, each of which is expected to
qualify upon completion as an EWG.
1.2.B.2.(h) CEA International, Inc., a Delaware corporation, has its registered
office at 1209 Orange Street, Wilmington, Delaware 19801, and has the following
direct and indirect wholly and partially owned subsidiaries:
1.2.B.2.(h)(i) CEA Americas, Inc., a Delaware corporation, has its registered
office at 1209 Orange Street, Wilmington, Delaware 19801, and has the following
direct and indirect wholly and partially owned subsidiaries and owns a 0.01%
interest in CEA Americas Operating Company:
1.2.B.2.(h)(i)(A) CEA Americas Ltd., a Bermuda corporation, has its principal
executive offices at Clarendon House, 2 Church Street, Hamilton, Bermuda. CEA
Americas Ltd. has ten wholly-owned direct subsidiaries, one direct 99% owned
subsidiary (CEA do Brazil Ltda.), one direct 90% owned subsidiary (CEA Americas
Operating Company), three direct 50% owned subsidiaries (Termo Santander
Management Company Ltd., C.A. Turbogeneradores de Venezuela and Turbogeneradores
de Venezuela Company), a 0.01% ownership interest in CEA Inversora S.A. and
indirect subsidiaries, as follows:
1.2.B.2.(h)(i)(A)(i) Alpha Colombia Power Resources Opon (BVI) Limited
("Alpha"), a British Virgin Islands company, has its registered office at
Wickhams Cay I, Roadtown, Tortola, British Virgin Islands, and has a 26% limited
partnership interest in Termo Santander de Colombia E.S.P. ("Termo E.S.P.").
1.2.B.2.(h)(i)(A)(i)(a) Termo E.S.P., a Colombian company, has its principal
executive offices at Carrera 11, No. 9353, Piso 6, Bogota, Colombia, and owns a
55 MW natural gas-fired power production facility in
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the State of Santander in Colombia. Beta Colombia Power Resources - Opon (BVI)
Limited ("Beta") (described below) has a 24% limited partnership interest in
Termo E.S.P., and Termo Santander Management Company Ltd. (described below) is a
general partner with a 0.001% profit interest in Termo E.S.P. As a result, CEA
Americas Ltd. indirectly owns a 50% interest in Termo E.S.P, and is an EWG.
1.2.B.2.(h)(i)(A)(ii) Beta, a British Virgin Islands company, has its registered
office at Wickhams Cay I, Roadtown, Tortola, British Virgin Islands, and has a
24% limited partnership interest in Termo E.S.P. (described above).
1.2.B.2.(h)(i)(A)(iii) CEA Americas Operating Company, a Cayman Island company
has its registered office at Ugland House, South Church Street, George Town,
Grand Cayman, Cayman Islands, British West Indies, and owns a 99.99% interest in
CEA Operating Argentina S.A.(CEA OA) (the remaining 0.01% interest is owned by
CEMAS Corporation) (described below).
1.2.B.2.(h)(i)(A)(iii)(a) CEA OA, an Argentina company, has its registered
office at Marcelo T. de Alvear 684, Piso 2, Buenos Aires, Argentina, and has two
33.34% owned subsidiaries:
1.2.B.2.(h)(i)(A)(iii)(a)(i) Empresa Distribuidora de Energia Norte S.A., an
Argentine company, has its principal executive offices at Calle 48, numero 786,
La Plata, Argentina and owns a distribution facility in the province of Buenos
Aires, Argentina, and is a FUCO.
1.2.B.2.(h)(i)(A)(iii)(a)(ii) Empresa Distribuidora de Energia Sur S.A., an
Argentine company, has its principal executive offices at Calle 48, numero 786,
La Plata, Argentina and owns a distribution facility in the province of Buenos
Aires, Argentina, and is a FUCO.
1.2.B.2.(h)(i)(A)(iv) CEA Brazil II Company, a Cayman Islands company, has its
registered office at Ugland House, South Church Street, George Town, Grand
Cayman, Cayman Islands, British West Indies, and is presently inactive.
1.2.B.2.(h)(i)(A)(v) CEA Brazil III Company, a Cayman Islands company, has its
registered office at Ugland House, South Church Street, George Town, Grand
Cayman, Cayman Islands, British West Indies, and is presently inactive.
1.2.B.2.(h)(i)(A)(vi) CEA Brazil Investment Company, a Cayman Islands company,
has its registered office at Ugland House, South Church Street, George Town,
Grand Cayman, Cayman Islands, British West Indies, and was formed for the
purpose of indirectly acquiring privatized assets in Brazil. CEA Brazil
Investment Company has the following direct and indirect wholly-owned
subsidiaries:
1.2.B.2.(h)(i)(A)(vi)(a) Pampa Energia Ltda., a Cayman Islands company, has its
registered office at Ugland House, South Church Street, George Town, Grand
Cayman, Cayman Islands, British West Indies, and was formed for the purpose of
indirectly acquiring privatized assets in Brazil. Pampa Energia Ltda. has the
following direct and indirect wholly-owned subsidiaries:
1.2.B.2.(h)(i)(A)(vi)(a)(i) CEA Brazil Company, a Cayman Islands company, has
its registered office at Ugland House, South Church Street, George Town, Grand
Cayman, Cayman Islands, British West Indies,
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and was formed for the purpose of indirectly acquiring an interest in Rio Grande
Energia, S.A., (formerly Companhia Norte-Nordeste de Distribuicao de Energia
Eletrica), a Brazilian electrical distribution company located in the State of
Rio Grande do Sul ("RGE") and currently owns a 50% interest in IPE Energia S.A.
("IPE") (the other 50% interest is owned by CEA Brazil I Company).
1.2.B.2.(h)(i)(A)(vi)(a)(i)(A) IPE, a Brazilian company has its registered
office at Rua Luigi Galvani #81, Sao Paulo, Brazil, and owns a 33.33% interest
in Doc 3 Participacoes, S.A., a Brazilian company, that in turn owns a 91.80%
interest in RGE.
1.2.B.2.(h)(i)(A)(vi)(a)(i)(A)(i) Doc 3 Participacoes S.A. (Doc 3), a Brazilian
company, has its registered office at Avenida Presidente Wilson 231, 27th Floor
(Part), Rio de Janeiro, Brazil 20030021 and is 33.33% owned by IPE.
1.2.B.2.(h)(i)(A)(vi)(a)(i)(A)(i)(a) RGE, a Brazilian company, has its
registered office at Rua da Consolaco #247, 8th Floor, Room 12, Sao Paulo,
Brazil 01301903 and is 91.80% owned by Doc 3, and is a FUCO.
1.2.B.2.(h)(i)(A)(vi)(a)(ii) CEA Brazil I Company, a Cayman Islands company, has
its registered office at Ugland House, South Church Street, George Town, Grand
Cayman, Cayman Islands, British West Indies, and was formed for the purpose of
acquiring an indirect ownership interest in RGE and currently owns a 50%
interest in IPE (the remaining 50% interest is owned by CEA Brazil Company)
(described above).
1.2.B.2.(h)(i)(A)(vii) CEA Brazil Operating Co., a Cayman Islands company, has
its registered office at Ugland House, South Church Street, George Town, Grand
Cayman, Cayman Islands, British West Indies, and is presently inactive.
1.2.B.2.(h)(i)(A)(viii) CEA Cayman Americas Company, a Cayman Islands company,
has its registered office at Ugland House, South Church Street, George Town,
Grand Cayman, Cayman Islands, British West Indies, and has five wholly-owned
subsidiaries and one indirect 99.99% owned subsidiary (described below):
1.2.B.2.(h)(i)(A)(viii)(a) CEA Cayman Americas I Company, a Cayman Islands
company, has its registered office at Ugland House, South Church Street, George
Town, Grand Cayman, Cayman Islands, British West Indies, and owns a 99.99%
interest in CEA Inversora S.A. (the remaining 0.01% is owned by CEA Americas
Ltd.).
1.2.B.2.(h)(i)(A)(viii)(a)(i) CEA Inversora S.A., an Argentine company, has its
registered office at Marcelo T. de Alvear 684, Piso 2, Buenos Aires, Argentina,
and was formed for the purpose of making future investments in Latin America.
1.2.B.2.(h)(i)(A)(viii)(b) CEA Cayman Americas II Company, a Cayman Islands
company, has its registered office at Ugland House, South Church Street, George
Town, Grand Cayman, Cayman Islands, British West Indies, and was formed for the
purpose of making future investments in Latin America.
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1.2.B.2.(h)(i)(A)(viii)(c) CEA Cayman Americas III Company, a Cayman Islands
company, has its registered office at Ugland House, South Church Street, George
Town, Grand Cayman, Cayman Islands, British West Indies, and was formed for the
purpose of making future investments in Latin America.
1.2.B.2.(h)(i)(A)(viii)(d) CEA Cayman Americas IV Company, a Cayman Islands
company, has its registered office at Ugland House, South Church Street, George
Town, Grand Cayman, Cayman Islands, British West Indies, and was formed for the
purpose of making future investments in Latin America.
1.2.B.2.(h)(i)(A)(viii)(e) CEA Cayman Americas V Company, a Cayman Islands
company, has its registered office at Ugland House, South Church Street, George
Town, Grand Cayman, Cayman Islands, British West Indies, and was formed for the
purpose of making future investments in Latin America.
1.2.B.2.(h)(i)(A)(ix) CEA do Brazil Ltda., a Brazilian company, has its
registered office at Rua Luigi Galvani #81, Sao Paulo, Brazil, and provides
management and business development services. CEA do Brazil Ltda. is 99% owned
by CEA Americas Ltd. (described above) and 1% owned by CEA Americas II, Ltd.
(described below).
1.2.B.2.(h)(i)(A)(x) CEA Peru L.L.C., a Delaware limited liability company, has
its registered office at 1209 Orange Street, Wilmington, Delaware 19801, and
provides management and operational support services to projects in Latin
America.
1.2.B.2.(h)(i)(A)(xi) Peru Power Ltd., a Cayman Islands company, has its
registered office at Ugland House, South Church Street, George Town, Grand
Cayman, Cayman Islands, British West Indies, and is presently inactive.
1.2.B.2.(h)(i)(A)(xii) Terra Roxa I Ltda., a Cayman Islands company, has its
registered office at Ugland House, South Church Street, George Town, Grand
Cayman, Cayman Islands, British West Indies, and is presently inactive.
1.2.B.2.(h)(i)(A)(xiii) Termo Santander Management Company Ltd., a Bermuda
limited liability company, has its principal executive offices at Clarendon
House, 2 Church Street, Hamilton, Bermuda, and is a general partner in Termo
E.S.P. (described above) with a 0.001% profit interest.
1.2.B.2.(h)(i)(A)(xiv) CEA Americas Ltd. has a 50% interest in C.A.
Turbogeneradores Venezuela (TGV II), a Venezuelan company. TGV II has its
principal executive offices at Avenida Francisco de Miranda, Torre Country Club,
Chacaito, Caracas 1050, Venezuela. TGV II is currently inactive and owns 100% of
C.A. Turbogeneradores Maracay.
1.2.B.2.(h)(i)(A)(xiv)(a) C.A. Turbogeneradores Maracay, a Venezuelan company,
has its principal executive offices at Avenida Francisco de Miranda, Torre
County Club, Chacaito, Caracas 1050, Venezuela and is presently inactive.
1.2.B.2.(h)(i)(A)(xv) Turbogeneradores de Venezuela Company ("TVC"), a Cayman
Islands company, has its registered office at Ugland House, South Church Street,
George Town, Grand Cayman, Cayman Islands, British West Indies, and was formed
in February, 1998. TVC has three direct wholly-owned subsidiaries, also formed
in February, 1998, described below:
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1.2.B.2.(h)(i)(A)(xv)(a) Turbogeneradores de Cagua Company ("TGCC"), a Cayman
Islands company, has its registered office at Ugland House, South Church Street,
George Town, Grand Cayman, Cayman Islands, British West Indies, and was formed
for the purpose of investing in power facilities in Venezuela.
1.2.B.2.(h)(i)(A)(xv)(b) Turbogeneradores de Maracay Company ("TGMC"), a Cayman
Islands company, has its registered office at Ugland House, South Church Street,
George Town, Grand Cayman, Cayman Islands, British West Indies, and was formed
for the purpose of investing in power facilities in Venezuela.
1.2.B.2.(h)(i)(A)(xv)(c) Turbogeneradores de Valencia Company ("TGVC"), a Cayman
Islands company, has its registered office at Ugland House, South Church Street,
George Town, Grand Cayman, Cayman Islands, British West Indies, and was formed
for the purpose of investing in power facilities in Venezuela.
1.2.B.2.(h)(i)(B) CEA Americas II, Ltd. (CEAAII), a Bermuda limited liability
company, has its principal executive offices at Clarendon House, 2 Church
Street, Hamilton, Bermuda. CEAAII has two direct wholly-owned subsidiaries, one
direct 50% owned subsidiary, one indirect 17.13% owned subsidiary (described
below), and a 1% interest in CEA do Brazil Ltda. (described above):
1.2.B.2.(h)(i)(B)(i) Bahia Participacoes Ltda., a Cayman Islands company, has
its registered office at Ugland House, South Church Street, George Town, Grand
Cayman, Cayman Islands, British West Indies, and is presently inactive.
1.2.B.2.(h)(i)(B)(ii) CEA (Peru) S.A., a Peruvian corporation, has its principal
executive offices at Malecon Cisneros 738, Suite 602, Miraflores, Lima, Peru,
and is presently inactive.
1.2.B.2.(h)(i)(B)(iii) Turbogeneradores de Venezuela, C.A. (TGV), a Venezuela
company, has its principal executive offices at Avenida Francisco de Miranda,
Torre Country Club, Chacaito, Caracas 1050, Venezuela. TGV owns 17.13% of
Turbogeneradores Maracay, C.A. (TGM).
1.2.B.2.(h)(i)(B)(iii)(a) TGM, a Venezuela company, has its principal executive
offices at Avenida Francisco de Miranda, Torre Country Club, Chacaito, Caracas
1050, Venezuela. TGM owns an investment in a gas-fired electric power generation
facility in Maracay, Venezuela, and is a FUCO.
1.2.B.2.(h)(i)(C) CEA (Peru), Inc., a Delaware corporation, has its registered
office at 1209 Orange Street, Wilmington, Delaware 19801, and is presently
inactive.
1.2.B.2.(h)(i)(D) CEALECT, INC., a Delaware limited liability company, has its
registered office at 1200 East Ridgewood Avenue, Ridgewood, NJ 07450, and was
formed for the purpose of making investments in Latin America.
1.2.B.2.(h)(i)(E) Transarg, Inc., a Delaware limited liability company, has its
registered office at 1200 East Ridgewood Avenue, Ridgewood, NJ 07450, and was
formed for the purpose of investing in transmission businesses in Argentina, and
has one wholly-owned subsidiary (described below).
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1.2.B.2.(h)(i)(E)(i) Transarg Company, a Cayman Islands company, has its
registered office at Ugland House, South Church Street, George Town, Grand
Cayman, Cayman Islands, British West Indies, and was formed for the purpose of
investing in transmission businesses in Argentina.
1.2.B.2.(h)(ii) CEA Americas Services, Inc. (CEA-ASI), a Delaware corporation,
has its registered office at 1209 Orange Street, Wilmington, Delaware 19801.
CEA-ASI provides management, operations and maintenance personnel to some of the
international subsidiaries of CEA USA.
1.2.B.2.(h)(iii) CEA Barka, Inc., a Delaware corporation, has its registered
office at 1209 Orange Street, Wilmington, Delaware 19801, and has one direct
wholly-owned subsidiary:
1.2.B.2.(h)(iii)(A) Barka Power Holdings Ltd. (BPH), a Bermuda corporation, has
its principal offices at Clarendon House, 2 Church Street, Hamilton HMCX,
Bermuda. BPH was formed for the purpose of investing in power facilities in
Muscat, Oman, which are expected to qualify upon completion as an EWG.
1.2.B.2.(h)(iv) CEA (Bermuda) Holdings II, Ltd., a Bermuda limited liability
company, has its principal executive offices at Clarendon House, 2 Church
Street, Hamilton, Bermuda, and has the following direct and indirect
wholly-owned subsidiaries:
1.2.B.2.(h)(iv)(A) CEA India Limited, a Mauritius company, has its registered
office at 608 St. James Court, St. Denis Street, Port Louis, Mauritius, and owns
the following six direct wholly-owned and one indirect partially-owned
subsidiaries:
1.2.B.2.(h)(iv)(A)(i) CEA Ambalamugal Energy Company Ltd., a Mauritius company,
has its registered office at 608 St. James Court, St. Denis Street, Port Louis,
Mauritius, and was formed for the purpose of investing in power facilities in
Cochin, India, each of which upon completion is expected to qualify as an EWG.
1.2.B.2.(h)(iv)(A)(ii) CEA Bhilai Energy Company Ltd., a Mauritius company, has
its registered office at 608 St. James Court, St. Denis Street, Port Louis,
Mauritius has one direct 45% owned subsidiary, and is an EWG.
1.2.B.2.(h)(iv)(A)(ii)(a) Bhilai Power Supply Company Limited, an Indian
company, has its registered office at Vijaya Building (7th Floor), 17 Barakhamba
Road, New Delhi 110001, India, and will construct and own a 587 MW coal-fired
power plant in Malhya Pradish, India.
1.2.B.2.(h)(iv)(A)(iii) CEA Manali Energy Company, a Mauritius company, has its
registered office at 608 St. James Court, St. Denis Street, Port Louis,
Mauritius, and was formed for the purpose of investing in power facilities in
India which are expected to qualify upon completion as an EWG.
1.2.B.2.(h)(iv)(A)(iv) CEA Operations Ltd., a Mauritius company, has its
registered office at 608 St. James Court, St. Denis Street, Port Louis,
Mauritius, and was formed for the purpose of operating power facilities in India
which are expected to qualify upon completion as an EWG.
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1.2.B.2.(h)(iv)(A)(v) CEA PPN Energy Company Limited, a Mauritius company, has
its registered office at 608 St. James Court, St. Denis Street, Port Louis,
Mauritius, and was formed for the purpose of investing in power facilities in
Kerala, India, which are expected to qualify upon completion as an EWG.
1.2.B.2.(h)(iv)(A)(vi) CEA Punjab Energy Company Ltd., a Mauritius company, has
its registered office at 608 St. James Court, St. Denis Street, Port Louis,
Mauritius, and was formed for the purpose of investing in power facilities in
India which are expected to qualify upon completion as an EWG.
1.2.B.2.(h)(v) CEA China, Inc. (CEA China), a Delaware corporation, has its
registered office at 1209 Orange Street, Wilmington, Delaware 19801, and has the
following direct and indirect wholly and partially owned subsidiaries:
1.2.B.2.(h)(v)(A) CEA Anqing Power, Ltd., a Bermuda limited liability company,
has its principal executive offices at Clarendon House, 2 Church Street,
Hamilton, Bermuda, and was formed for the purpose of investing in power
facilities in Anhui Province, China which are expected to qualify upon
completion as an EWG.
1.2.B.2.(h)(v)(B) CEA Asia Power, Ltd., a Bermuda limited liability company, has
its principal executive offices at Clarendon House, 2 Church Street, Hamilton,
Bermuda, and was formed for the purpose of investing in power facilities in
Anhui Province, China which are expected to qualify upon completion as an EWG.
1.2.B.2.(h)(v)(C) CEA Gongyi Power Ltd., a Bermuda limited liability company,
has its principal offices at Clarendon House, 2 Church Street, Hamilton, Bermuda
and has four wholly-owned subsidiaries:
1.2.B.2.(h)(v)(C)(i) CEA Philippines Power LLC, a Delaware limited liability
company, has its registered office at 1209 Orange Street, Wilmington, Delaware
19801, and is presently inactive.
1.2.B.2.(h)(v)(C)(ii) CEA Xuzhou Cogeneration Ltd., a Mauritius company, has its
registered office at 608 St. James Court, St. Denis Street, Port Louis,
Mauritius, and was formed for the purpose of investing in power facilities in
Xuzhou, China which are expected to qualify upon completion as an EWG.
1.2.B.2.(h)(v)(C)(iii) CEA Zhuzhou Cogen Power Ltd., a Mauritius company, has
its registered office at 608 St. James Court, St. Denis Street, Port Louis,
Mauritius, and was formed for the purpose of investing in power facilities in
Zhuzhou, China which are expected to qualify upon completion as an EWG.
1.2.B.2.(h)(v)(C)(iv) CEA Zuojiang Hydropower Ltd., a Mauritius company, has its
registered office at 608 St. James Court, St. Denis Street, Port Louis,
Mauritius, and was formed for the purpose of investing in power facilities in
Zuojiang, China which are expected to qualify upon completion as an EWG.
1.2.B.2.(h)(v)(D) CEA Huangshi Power, Ltd., a Bermuda limited liability company,
has its principal offices at Clarendon House, 2 Church Street, Hamilton, Bermuda
and was formed for the purpose of investing in power facilities in Huangshi,
China which are expected to qualify upon completion as an EWG.
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1.2.B.2.(h)(v)(E) CEA Meiya Power, Ltd., a Bermuda limited liability company,
has its principal executive offices at Clarendon House, 2 Church Street,
Hamilton, Bermuda, and is an EWG.
1.2.B.2.(h)(v)(F) CEA Philippines Holdings LLC, a Delaware limited liability
company, has its registered office at 1209 Orange Street, Wilmington, Delaware
19801, is an EWG, and has one direct 27.8% owned subsidiary and one indirect
partially owned subsidiary described below:
1.2.B.2.(h)(v)(F)(i) Magellan Capital Holdings Corporation, a Philippine
company, has its offices at 4/F Ortigas Bldg., Ortigas Avenue, Pasig City,
Philippines, was formed for the purpose of investing in power facilities in the
Philippines which are expected to qualify upon completion as EWGs and has one
direct 56% owned subsidiary described below:
1.2.B.2.(h)(v)(F)(i)(a) Magellan Cogeneration Inc., a Philippine company, has
its offices at 4/F Ortigas Bldg., Ortigas Avenue, Pasig City, Philippines, and
owns and operates a diesel-fired power generation facility in Cavite,
Philippines.
1.2.B.2.(h)(v)(G) CEA Shanghai BFG Company, a Cayman Island company, has its
registered office at Ugland House, South Church Street, George Town, Grand
Cayman, Cayman Islands, British West Indies, and has two direct 50% owned
subsidiaries described below:
1.2.B.2.(h)(v)(G)(i) Can Am Energy China Holdings, LLC, a Delaware limited
liability company, has its registered office at 1209 Orange Street, Wilmington,
Delaware 19801, and was formed for the purpose of investing in power facilities
in China which are expected to qualify upon completion as an EWG.
1.2.B.2.(h)(v)(G)(ii) WEI/CEA China Ltd., a Mauritius company, has its
registered office at 608 St. James Court, St. Denis Street, Port Louis,
Mauritius, and was formed for the purpose of investing in power facilities in
Shanghai, China which are expected to qualify upon completion as an EWG.
1.2.B.2.(h)(v)(H) CEA Thailand Power, Ltd., a Bermuda limited liability company,
has its principal executive offices at Clarendon House, 2 Church Street,
Hamilton, Bermuda, and has two direct wholly-owned and one 49.9% owned
subsidiary (Energy and Infrastructure Development Co., Ltd.).
1.2.B.2.(h)(v)(H)(i) CEA Full Moon (Malaysia) (L) Ltd., a Malaysian company, has
its offices at Level 9, Wisma Oceanic, Jalan O.K.K. Awang Besar, 87016 Labuan
F.T., Malaysia, and was formed for the purpose of investing in power facilities
in Cilicop, Indonesia which are expected to qualify upon completion as an EWG.
1.2.B.2.(h)(v)(H)(ii) CEA Pontianak (Malaysia) (L) Ltd., a Malaysian company,
has its offices at Level 9, Wisma Oceanic, Jalan O.K.K. Awang Besar, 87016
Labuan F.T., Malaysia, and was formed for the purpose of investing in power
facilities in Pontianak, Indonesia which are expected to qualify upon completion
as an EWG.
1.2.B.2.(h)(v)(H)(iii) Energy and Infrastructure Development Co., Ltd., ("EID"),
a Thailand company, has its offices at 388 Phahobyothin Rd., 12th Fl., S.P.
Bldg., Bangkok, Thailand and is a developer of power production facilities in
Southeast Asia which are each expected to qualify upon completion as an EWG or
FUCO. EID owns 95% of Sri U-Thong Co. Ltd. (Sri U), 75% of The Environmental and
Energy
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Management Co., Ltd. (EEM), 75% of A & R Consultant Co., Ltd. (A&R), and 35% of
Yala Power Producer Co., Ltd. (Yala), all of which are described below:
1.2.B.2.(h)(v)(H)(iii)(a) Sri U, a Thailand company, has its offices at 388
Phahobyothin Rd., 12th Fl., S.P. Bldg., Bangkok, Thailand, and provides
engineering, procurement and construction services for electric power
transmission lines and substations in Southeast Asia.
1.2.B.2.(h)(v)(H)(iii)(b) EEM, a Thailand company, has its offices at 388
Phahobyothin Rd., 12th Fl., S.P. Bldg., Bangkok, Thailand, and is a developer of
alternative-fueled energy production facilities in Thailand.
1.2.B.2.(h)(v)(H)(iii)(c) A & R, a Thailand company, has its offices at 388
Phahobyothin Rd., 12th Fl., S.P. Bldg., Bangkok, Thailand, and provides
environmental and water management consulting services in Thailand.
1.2.B.2.(h)(v)(H)(iii)(d) Yala, a Thailand company, has its offices at 388
Phahobyothin Rd., 12th Fl., S.P. Bldg., Bangkok, Thailand, and is developing a
wood-waste-fired power production facility in Thailand which is expected to
qualify upon completion as an EWG.
1.2.B.2.(h)(v)(I) CEA Tongzhou Cogen Power Ltd., a Bermuda limited liability
company, has its principal executive offices at Clarendon House, 2 Church
Street, Hamilton, Bermuda, and has one direct 80% owned subsidiary described
below:
1.2.B.2.(h)(v)(I)(i) CEA Tongzhou Meiya Cogeneration Company Limited, a Chinese
joint venture company, has its offices at Tinsha Toun, Tongzhou City, Jiangsu
Province, China, and owns and operates a coal-fired cogeneration facility in
Tongzhou City, Jiansu Province, China, which is expected to qualify upon
completion as an EWG.
1.2.B.2.(h)(v)(J) CEA Zhou Kou Power, Ltd., a Bermuda limited liability company,
has its principal executive offices at Clarendon House, 2 Church Street,
Hamilton, Bermuda, and has one direct wholly-owned subsidiary.
1.2.B.2.(h)(v)(J)(i) CEA Zhou Kou Power Company, Ltd., a Mauritius company, has
its registered office at 608 St. James Court, St. Denis Street, Port Louis,
Mauritius, and was formed for the purpose of investing in power facilities in
Zhou Kou, China which are expected to qualify upon completion as an EWG.
1.2.B.2.(h)(v)(K) C.T. Meiya Power Company, Ltd., a Bermuda limited liability
company, has its principal executive offices at Clarendon House, 2 Church
Street, Hamilton, Bermuda, is 50% owned by CEA China and is presently inactive.
1.2.B.2.(h)(v)(L) Meiya Power Company, Ltd., a Bermuda corporation, has its
principal executive offices at Clarendon House, 2 Church Street, Hamilton,
Bermuda, is 50% owned by CEA China and has the following direct and indirect
wholly and partially owned subsidiaries:
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1.2.B.2.(h)(v)(L)(i) CEA (Bermuda) Holdings, Ltd., a Bermuda corporation, has
its principal executive offices at Clarendon House, 2 Church Street, Hamilton,
Bermuda, and owns a 60% interest in Shanghai Meiya Jinqiao Energy Co., Ltd.
(SMJE), described below:
1.2.B.2.(h)(v)(L)(i)(a) SMJE, a Chinese joint venture company, has its
registered office at Lot #21, Jinqiao EPZ, Shanghai, China, and owns and
operates an oil-fired steam plant in Shanghai, China. CEA China indirectly owns
30% of SMJE.
1.2.B.2.(h)(v)(L)(ii) China U.S. Power Partners I, Ltd., a Bermuda corporation,
has its principal executive offices at Clarendon House, 2 Church Street,
Hamilton, Bermuda, is an EWG, and has a 30% interest in Jingyuan Second Power
Co., Ltd., (Jingyuan), described below:
1.2.B.2.(h)(v)(L)(ii)(a) Jingyuan, a Chinese joint venture company, has its
registered office at Lanzhou City, Gansu Province, China, and owns a coal-fired
electric power generation facility in Jingyuan, China which is an EWG. CEA China
indirectly owns 15% of Jingyuan.
1.2.B.2.(h)(vi) CEA Elcho (Delaware), Inc. (CEA ELCHO), a Delaware corporation,
has its registered office at 1209 Orange Street, Wilmington, Delaware 19801, and
has the following direct and indirect wholly and partially owned subsidiaries:
1.2.B.2.(h)(vi)(A) CEA Europe B.V. (CEA Europe), a Netherlands company, has its
principal executive offices at Weena 340, Rotterdam, The Netherlands, and has
one direct wholly-owned subsidiary, Ramat Hovav B.V., three direct 99% owned
subsidiaries, (the remaining 1% interest in each of the three subsidiaries is
owned by CEA ELCHO) and one indirect partially owned subsidiary.
1.2.B.2.(h)(vi)(A)(i) CEA Investments B.V., a Netherlands company, has its
principal executive offices at Weena 340, Rotterdam, The Netherlands, and was
formed for the purpose of investing in a Turkish company which will own a coal
mine located in Turkey.
1.2.B.2.(h)(vi)(A)(ii) CEA Poland B.V., a Netherlands company, has its principal
executive offices at Weena 340, Rotterdam, The Netherlands, and directly owns a
17% equity interest in Elektrocieplownia Chorzow Elcho, S.z.o.o.
("Chorzow").
1.2.B.2.(h)(vi)(A)(ii)(a) Chorzow, a Polish company, has its principal executive
offices at W. Sklodowskiez 3, 41-503 Chorzow, Poland, and is developing a
coal-fired power station in Chorzow, Poland, which is expected to qualify upon
completion as an EWG.
1.2.B.2.(h)(vi)(A)(iii) Konya Ilgin Electric Production B.V., a Netherlands
company, has its principal executive offices at Weena 340, Rotterdam, The
Netherlands, and was formed for the purpose of investing in power facilities in
Konya Ilgin, Turkey, which are expected to qualify upon completion as an EWG.
1.2.B.2.(h)(vi)(A)(iv) Ramat Hovav, B.V., a Netherlands company, has its
principal executive offices at Weena 340, Rotterdam, The Netherlands, and was
formed for the purpose of investing in power facilities in Israel, which are
expected to qualify upon completion as an EWG.
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1.2.B.2.(h)(vii) CEA Salalah, Inc. (CEA SI), a Delaware corporation, has its
registered office at 1209 Orange Street, Wilmington, Delaware 19801. CEA SI has
the following direct and indirect wholly and partially owned subsidiaries
including one 50% directly-owned subsidiary, Salalah Power Holdings, Ltd.:
1.2.B.2.(h)(vii)(A) CEA International, Ltd., a Bermuda limited liability
company, has its principal executive offices at Clarendon House, 2 Church
Street, Hamilton, Bermuda, and has the following direct and indirect
wholly-owned subsidiaries:
1.2.B.2.(h)(vii)(A)(i) CEA Holdings Pte Ltd., a Singapore company, has its
principal executive offices at 95 South Bridge Road, #09-00 Pidemco Centre,
Singapore 058717, and was formed for the purpose of investing in power
facilities in Israel. CEA Holdings Pte Ltd. has one 50% directly-owned
subsidiary described below:
1.2.B.2.(h)(vii)(A)(i)(a) OPC Ramat Hovav Ltd., an Israeli company, has its
registered office at 2 Hanamal Street, Haifa, Israel, and was formed in
February, 1998 for the purpose of investing in power facilities in Israel.
1.2.B.2.(h)(vii)(A)(ii) Community Energy Alternatives LLC, a Delaware limited
liability company, has its registered office at 1209 Orange Street, Wilmington,
Delaware 19801, and was formed for the purpose of investing in power facilities
in Tunisia which are expected to qualify as an EWG.
1.2.B.2.(h)(vii)(B) Salalah Power Holdings, Ltd., a Bermuda limited liability
company, has its principal executive offices at Clarendon House, 2 Church
Street, Hamilton, Bermuda, and has two direct wholly-owned subsidiaries.
1.2.B.2.(h)(vii)(B)(i) Salalah Power Holdings I, Ltd., a Bermuda limited
liability company, has its principal executive offices at Clarendon House, 2
Church Street, Hamilton, Bermuda, and was formed for the purpose of investing in
power facilities in Salalah, Oman, which are expected to qualify upon completion
as EWGs.
1.2.B.2.(h)(vii)(B)(ii) Salalah Power Holdings II, Ltd., a Bermuda limited
liability company, has its principal executive offices at Clarendon House, 2
Church Street, Hamilton, Bermuda, and was formed for the purpose of investing in
power facilities in Salalah, Oman, which are expected to qualify upon completion
as an EWG.
1.2.B.2.(h)(viii) Community Energy Alternatives, Ltd., a United Kingdom company,
has its registered office at 100 New Bridge Street, London, England EC4V 6JA,
and was formed for the purpose of managing development activities in Europe,
India and the Middle East.
1.2.B.2.(h)(ix) ECI International Development, Inc., a Delaware corporation, has
its registered office at 1209 Orange Street, Wilmington, Delaware 19801, and is
presently inactive.
1.2.B.2.(i) CEA International Services, Inc., a Delaware corporation, has its
registered office at 1209 Orange Street, Wilmington, Delaware 19801, and
provides management, operations and maintenance personnel to some of the
international subsidiaries of CEA USA.
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1.2.B.2.(j) CEA Kalaeloa, Inc., a Delaware corporation, has its registered
office at 1209 Orange Street, Wilmington, Delaware 19801, and was formed for the
purpose of acquiring a 1% general partnership interest in KPLP (described
above), a Delaware limited partnership (the remaining 99% limited partnership
interest is owned by KIPLP, which is also described above).
1.2.B.2.(k) CEA Leasing, Inc., a New Jersey corporation, has its principal
executive offices at 1200 East Ridgewood Avenue, Ridgewood, New Jersey 07450,
and is a 50% general partner in National Energy Leasing Partners, (NELP).
1.2.B.2.(k)(i) NELP, a Delaware limited partnership, has its principal executive
offices at One Riverchase Parkway South, Birmingham, Alabama 35244. NELP has
entered into lease transactions with respect to certain of the equipment
installed at the Hanford cogeneration facility of HLP (described below) and the
five Contra Costa County, California small power production facilities of GWFLP
(described above).
1.2.B.2.(l) CEA Long Island, Inc., a Delaware corporation, has its registered
office at 1209 Orange Street, Wilmington, Delaware 19801, and was formed in
January 1998 for the purpose of holding indirect investments in power facilities
in New York and has the following direct and indirect wholly and partially owned
subsidiaries:
1.2.B.2.(l)(i) CEA Kennedy Airport, Inc., a Delaware corporation, has its
registered office at 1209 Orange Street, Wilmington, Delaware 19801, and was
formed in January 1998 for the purpose of holding indirect investments in power
facilities in New York.
1.2.B.2.(l)(i)(A) CEA Kennedy Operators, Inc. (CKO), a New York corporation, has
its principal executive offices at Building No. 49, JFK International Airport,
Jamaica, New York 11430. CKO provides operation and maintenance services to the
central heating and refrigeration plant at John F. Kennedy International Airport
in Jamaica, New York (JFK) and provides operation and maintenance services to a
natural gas-fired cogeneration facility at JFK (see CEA KIA, Inc. (CEA K)
below).
1.2.B.2.(l)(i)(B) CEA K, a New York corporation, has its principal executive
offices at c/o KIAC Partners, JFK International Airport, Trailer Complex at the
Central Heating Plant, Jamaica, New York 11430. CEA K is a 50% general partner
in KIAC Partners.
1.2.B.2.(l)(i)(B)(i) KIAC Partners, a New York limited partnership, has its
principal executive offices at JFK International Airport, Trailer Complex at the
Central Heating Plant, Jamaica, New York 11430, and owns a natural gas-fired
cogeneration QF constructed by a partnership, EnergyPro Construction Partners,
in which CEA K is a 50% general partner at JFK.
1.2.B.2.(l)(ii) CEA University Power, Inc., a Delaware corporation, has its
registered office at 1209 Orange Street, Wilmington, Delaware 19801, and was
formed in January 1998 for the purpose of holding indirect investments in power
facilities in New York.
1.2.B.2.(l)(ii)(A) CEA Stony Brook, Inc.(CSBI), a New York corporation, has its
principal executive offices at 1200 East Ridgewood Avenue, Ridgewood, New Jersey
07450. CSBI is a 50% general partner in Nissequogue Cogen Partners (NCP).
19
<PAGE> 20
1.2.B.2.(l)(ii)(A)(i) NCP, a New York limited partnership, has its principal
executive offices at Gymnasium Road, SUNY Campus, Stony Brook, Long Island, New
York 11794, and owns a natural gas-fired cogeneration facility in Stony Brook,
New York, which is a QF.
1.2.B.2.(l)(ii)(B) CEA Stony Brook Operators, Inc. (CSBO), a New York
corporation, has its principal executive offices at 1200 East Ridgewood Avenue,
Ridgewood, New Jersey 07450. CSBO provides operation and maintenance services to
the CSBI natural gas-fired cogeneration facility in Stony Brook, New York (see
CSBI above).
1.2.B.2.(m) CEA Mexico, Inc., a Delaware corporation, has its registered office
at 1209 Orange Street, Wilmington, Delaware 19801, and is presently inactive.
1.2.B.2.(n) CEA Mount Carmel, Inc., a New Jersey corporation, has its principal
executive offices at 1200 East Ridgewood Avenue, Ridgewood, New Jersey 07450,
and is a 49.5% limited partner in PRRA (described above). CEA Conemaugh
Management, Inc., also owns 0.5% of PRRA, resulting in a 50% indirect ownership
by CEA USA.
1.2.B.2.(o) CEA New Hampshire Incorporated (CEA NH), a New Hampshire
corporation, has its principal executive offices in Bridgewater, New Hampshire.
CEA NH is a co-managing 40% general partner in Bridgewater Power Company, L.P.
(BPCLP).
1.2.B.2.(o)(i) BPCLP, a New Hampshire limited partnership, has its principal
executive offices at Route 3, Bridgewater, New Hampshire 03222. BPCLP owns a
biomass-fired small power production QF in Bridgewater, New Hampshire.
1.2.B.2.(p) CEA Project Services, Inc. (CEA PRO), a New Jersey corporation, has
its principal executive offices at 1200 East Ridgewood Avenue, Ridgewood, New
Jersey 07450. CEA PRO provides engineering, procurement, construction and
management services and owns a 50% partnership interest in each of the two
following limited partnerships:
1.2.B.2.(p)(i) National Energy Constructors, a California limited partnership,
has its principal executive offices at 14800 West Schulte Road, Tracy,
California 95376, under which CEA PRO constructed five petroleum coke-fired
small power production facilities owned and operated by GWFLP (described above)
and a petroleum coke and natural gas-fired cogeneration QF owned by HLP
(described above).
1.2.B.2.(p)(ii) Tracy Operators, a California limited partnership, has its
principal executive offices at 14800 West Schulte Road, Tracy, California 95376,
and operates and maintains a biomass-fired small power production facility in
Tracy, California in which CEA Tracy, Inc. (described below) has an ownership
interest.
1.2.B.2.(q) CEA Tracy, Inc., a New Jersey corporation has its principal
executive offices at 1200 East Ridgewood Avenue, Ridgewood, New Jersey 07450,
and is a co-managing 34.5% general partner in Thermal Energy Development
Partnership, L.P. (TEDPLP).
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<PAGE> 21
1.2.B.2.(q)(i) TEDPLP, a Delaware limited partnership, has its principal
executive offices at New York Life Building, 501 W. Weber Avenue, Suite 104A,
Stockton, California 95203. TEDPLP owns a small biomass-fired power production
QF in Tracy, California.
1.2.B.2.(r) CEMAS Corporation (CEMAS), a Delaware corporation, has its
registered office at 1209 Orange Street, Wilmington, Delaware 19801. CEMAS owns
directly and indirectly, through AES San Nicolas, Inc. (ASNI), an 18.63%
stockholder interest in Inversora de San Nicolas, S.A. (ISN).
1.2.B.2.(r)(i) ASNI, a Delaware corporation, has its principal office at 1001 N.
19th Street, Arlington, Virginia 22209, and is owned 4.95% by CEMAS. ASNI owns
62.74% of ISN.
1.2.B.2.(r)(i)(A) ISN, an Argentine corporation, has its principal executive
offices at Cerrito 1294, Piso 3, (1062), Buenos Aires (Capital Federal),
Argentina. ISN owns an 88% controlling stockholder interest in Central Termica
San Nicolas, S.A. (CTSN).
1.2.B.2.(r)(i)(A)(i) CTSN, an Argentine corporation, has its principal executive
offices at Cerrito 1294, Piso 3, (1062), Buenos Aires (Capital Federal),
Argentina. CTSN owns a coal-fired electric generating station in San Nicolas,
Argentina, and is an EWG.
1.2.B.2.(s) Deblois Investments, Inc., a New Jersey corporation, has its
principal executive offices at 1200 East Ridgewood Avenue, Ridgewood, New Jersey
07450, and is presently inactive.
1.2.B.2.(t) National Energy Partners, a Delaware limited partnership, has its
principal executive offices at 11645 Wilshire Blvd., Suite 750, Los Angeles,
California 90024, and of which CEA USA is a 50% general partner, owns 100% of
GWF Power Systems Company, Inc. (GWF PSC).
1.2.B.2.(t)(i) GWF PSC, a California corporation, has its principal executive
offices at 225 Lennon Lane, Suite 120, Walnut Creek, California 94598. GWF PSC
and GWFLP together hold a 50% indirect interest in the revenues (but do not
share in operating or other costs) derived from the (1) capacity payments
related to 11.3 MW of incremental capacity and (2) net dispatch payment received
by the owner of a natural gas-fired cogeneration QF in Newhall, California. GWF
PSC has the following direct and indirect wholly and partially owned
subsidiaries:
1.2.B.2.(t)(i)(A) GWF Bay Area, Inc. (GWF Bay), a California corporation, has
its principal executive offices at 225 Lennon Lane, Suite 120, Walnut Creek,
California 94598. GWF Bay is a 2% managing general partner of GWFLP. GWF Bay is
an indirect 50% owned subsidiary of CEA USA.
1.2.B.2.(t)(i)(A)(i) GWFLP, a Delaware limited partnership, has its principal
executive offices at 225 Lennon Lane, Suite 120, Walnut Creek, California 94598,
and owns and operates five petroleum coke-fired small power production QF's in
Contra Costa County, California. CEA USA directly owns a 24.25% limited
partnership interest in GWFLP. In addition, as described above, CEA GWF owns a
24.25% limited partnership interest in GWFLP and CEA Bay owns a 0.5% general
partnership interest in GWFLP.
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<PAGE> 22
1.2.B.2.(t)(i)(B) GWF Hanford, Inc. (GWF HI), a California corporation, has its
principal executive offices at 225 Lennon Lane, Suite 120, Walnut Creek,
California 94598. GWF HI is a 2% managing general partner of HLP. GWF HI is an
indirect 50% owned subsidiary of CEA USA.
1.2.B.2.(t)(i)(B)(i) HLP, a Delaware limited partnership, has its registered
office at 1209 Orange Street, Wilmington, Delaware 19801, and is the owner of a
petroleum coke and natural gas-fired cogeneration QF in Hanford, California. CEA
USA directly owns a 24.25% limited partnership interest in HLP. In addition, as
described above, CEA GWF owns a 24.25% limited partnership interest in HLP and
CEA HI owns a 0.5% general partnership interest in HLP.
1.2.C. Enterprise Group Development Corporation (EGDC), a New Jersey
corporation, has its principal executive offices at 80 Park Plaza, Newark, New
Jersey 07101. EGDC is a nonresidential real estate development and investment
business. EGDC has investments in nine commercial real estate properties (one of
which is developed) in several states, both directly and in joint ventures in
which it has a 50% or greater interest. On December 31, 1997, EGDC - State
Street I, Incorporated; EGDC - State Street II, Incorporated; EGDC - State
Street III, Incorporated; EGDC - NSB, Incorporated; and EGDC - 36 West,
Incorporated merged with Enterprise Group Development Corporation. EGDC is an
80% joint venture partner in each of State Street Square Urban Renewal Partners
(SSSURPI), State Street Square Urban Renewal Partners II (SSSURPIII), State
Street Square Partners III (SSSIII), State Street Square 36 West Partners
(SSS36W) and State Street Square NSB Partners (SSSNSB). As of December 31, 1997,
EGDC comprised 0.5% of Enterprise's assets and EGDC's 1997 net income comprised
(1)% of Enterprise's net income. EGDC is a wholly-owned subsidiary of EDHI. EGDC
has nine direct and two indirect subsidiaries described below:
1.2.C.1. EGDC - Concourse, Incorporated (Concourse), a Florida corporation, has
its principal executive offices at 80 Park Plaza, Newark, New Jersey 07101.
Concourse owns land on which it intends to develop an office building in
Jacksonville, Florida and is a 75% general partner in Concourse at Maitland
Associates (CMA). EGDC owns 100% of Concourse.
1.2.C.1.(a) CMA, a Florida general partnership, has its principal executive
offices at One Riverchase Parkway South, Birmingham, Alabama 35201, and owns
land on which it intends to develop an office complex in Orange County, Florida.
1.2.C.2. EGDC - Fairfax, Incorporated (Fairfax), a Virginia corporation, has its
principal executive offices at 80 Park Plaza, Newark, New Jersey 07101. Fairfax
is a 50% general partner in Monument Place Associates (MPA).
1.2.C.2.(a) MPA, a Virginia general partnership, has its principal executive
offices at 1416 Dodge Street, Room 1100, Omaha, Nebraska 68179, and owns land on
which it plans to develop an office complex in Fairfax County, Virginia.
1.2.C.3. SSSURPI, a New Jersey general partnership, has its principal executive
offices at 50 West State Street, Trenton, New Jersey 08608, and owns one phase
of a commercial office complex in Trenton, New Jersey.
22
<PAGE> 23
1.2.C.4. SSSURPII, a New Jersey general partnership, has its principal executive
offices at 50 West State Street, Trenton, New Jersey 08608, and owns one phase
of a commercial office complex in Trenton, New Jersey.
1.2.C.5. SSSPIII, a New Jersey general partnership, has its principal executive
offices at 50 West State Street, Trenton, New Jersey 08608, and owns one phase
of a commercial office complex in Trenton, New Jersey.
1.2.C.6. SSSNSB, a New Jersey general partnership, has its principal executive
offices at 50 West State Street, Trenton, New Jersey 08608, and owns one phase
of a commercial office complex in Trenton, New Jersey.
1.2.C.7. SSS36W, a New Jersey general partnership, has its principal executive
offices at 50 West State Street, Trenton, New Jersey 08608, and is presently
inactive.
1.2.C.8. EGDC - Largo Incorporated (Largo), a Maryland corporation, has its
principal executive offices at 80 Park Plaza, Newark, New Jersey 07101, and owns
land on which it plans to develop an office complex in Largo, Maryland.
1.2.C.9. EGDC - Largo Management Incorporated (Largo Management), a Maryland
corporation, has its principal executive offices at 80 Park Plaza, Newark, New
Jersey 07101, and is presently inactive.
1.2.D. Energis Resources Incorporated (Energis), a New Jersey corporation, has
its principal executive offices at 499 Thornall Street, Edison, New Jersey
08837. Energis is a wholly-owned subsidiary of EDHI. Energis provides a variety
of energy related services to industrial and commercial customers. As of
December 31, 1997, Energis comprised 0.3% of Enterprise's assets, and 0.1% of
Enterprise's revenues, and Energis' 1997 net income comprised (3.0)% of
Enterprise's net income. Energis has the following direct and indirect
wholly-owned subsidiaries:
1.2.D.1. The Dowling Group Inc. (Dowling Group), a Pennsylvania corporation, has
its principal executive offices at 1117 Club House Road, Gladwynne, Pennsylvania
19035. Dowling Group is a wholly-owned subsidiary of Energis. Dowling Group has
one direct subsidiary and two indirect subsidiaries, as follows:
1.2.D.2. Fluidics, Inc. (Fluidics), a Pennsylvania corporation, has its
principal executive offices at 4140 Whitaker Avenue, Philadelphia, Pennsylvania
19124. Fluidics is a 14% directly owned subsidiary of Energis and an 86%
directly owned subsidiary of Dowling Group. Fluidics provides mechanical and
building services. Fluidics has two wholly-owned subsidiaries, as follows:
1.2.D.2.(a) Fluidics of New Jersey, Inc., a New Jersey corporation, has its
principal executive offices at 499 Thornall Street, Edison, New Jersey 08837.
Fluidics of New Jersey, Inc. is a wholly-owned subsidiary of Fluidics and
provides mechanical and building services.
1.2.D.2.(b) Wrenda, Inc. (Wrenda), a Delaware Corporation, has its principal
executive offices at 900 Market Street, Suite 200, Wilmington, Delaware 19801.
Wrenda is a wholly-owned subsidiary of Fluidics and owns various Fluidics trade
and service marks which it licenses to Fluidics.
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<PAGE> 24
1.2.E. PSEG Capital Corporation (Capital), a New Jersey corporation, has its
principal executive offices at 80 Park Plaza, Newark, New Jersey 07101. Capital
is a wholly-owned financing subsidiary of EDHI, which serves as a capital
financing vehicle for EDHI's businesses (excluding Energis), borrowing up to
$650 million at any one time outstanding on their behalf on the basis of a
minimum net worth maintenance agreement with Enterprise. Intercompany borrowing
rates are established with reference to Capital's cost of funds. Capital's
assets consist principally of demand notes of CEA and PSRC. As of December 31,
1997, Capital had $609 million of its long-term debt outstanding.
1.2.F. Enterprise Capital Funding Corporation (Funding), a New Jersey
corporation, has its principal executive offices at 80 Park Plaza, Newark, New
Jersey 07101. Funding, a wholly-owned subsidiary of EDHI, serves as a capital
financing vehicle for EDHI's businesses (excluding EGDC and Energis), borrowing
on their behalf, as well as investing their short-term funds. Short-term
investments are made only if the funds cannot be employed in intercompany loans.
Intercompany borrowing rates are established based upon Funding's cost of funds.
Funding is providing both long and short-term capital for the non-utility
businesses other than EGDC and Energis on the basis of an unconditional guaranty
from EDHI, but without direct support from Enterprise. As of December 31, 1997,
Funding's assets consisted of demand notes of CEA and PSRC, all of which are
pledged to Funding's lenders and which aggregated $395 million and short-term
investments of $3 million.
2. A brief description of the properties of claimant and each of its
subsidiary public utility companies used for the generation, transmission, and
distribution of electric energy for sale, or for the production, transmission,
and distribution of natural or manufactured gas, indicating the location of
principal generating plants, transmission lines, producing fields, gas
manufacturing plants, and electric and gas distribution facilities, including
all such properties which are outside the State in which claimant and its
subsidiaries are organized and all transmission or pipelines which deliver or
receive electric energy or gas at the borders of such State.
Enterprise owns no property used for the generation, transmission, or
distribution of electric energy for sale, or for the production, transmission,
and distribution of natural or manufactured gas.
Enterprise's only subsidiary public utility company is PSE&G, which is an
operating electric and gas utility company. A description of the properties of
PSE&G used for the generation, transmission, and distribution of electric energy
for sale, and for the transmission and distribution of natural gas, which are
located predominantly in New Jersey, follows:
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<PAGE> 25
Electric Properties
As of December 31, 1997, PSE&G's share of installed generating capacity
was 10,251 MW, as shown in the following table:
Installed Principal
Name and Location Capacity(MW) Fuel Used
- ----------------- ------------ ---------
Steam:
Hudson, Jersey City, NJ ............................. 983 Coal
Mercer, Hamilton, NJ ................................ 648 Coal
Sewaren, Woodbridge Twp., NJ ........................ 453 Gas
Linden, Linden, NJ .................................. 415 Oil
Keystone, Shelocta, PA--22.84%(B) ................... 388 Coal
Conemaugh, New Florence, PA--22.50%(B) .............. 382 Coal
Kearny, Kearny, NJ .................................. 280 Oil
------
Total Steam .................................... 3,549
------
Nuclear: (Capacity factor calculated in accordance with
industry maximum dependable capability standards)
Hope Creek, Lower Alloways Creek, NJ 95%(B) ......... 979 Nuclear
Salem 1, Lower Alloways Creek, NJ 42.59%(B) ......... 471 Nuclear
Salem 2, Lower Alloways Creek, NJ 42.59%(B) ......... 471 Nuclear
Peach Bottom 2, Peach Bottom, PA 42.49%(B) .......... 465 Nuclear
Peach Bottom 3, Peach Bottom, PA 42.49%(B) .......... 465 Nuclear
------
Total Nuclear .................................. 2,851
------
Combined Cycle:
Bergen, Ridgefield, NJ .............................. 682 Gas
Burlington, Burlington, NJ .......................... 240 Gas
------
Total Combined Cycle ................................ 922
------
Combustion Turbine:
Essex, Newark, NJ ................................... 617 Gas
Edison, Edison Township, NJ ......................... 504 Gas
Kearny, Kearny, NJ .................................. 504 Gas
Burlington, Burlington, NJ .......................... 389 Oil
Linden, Linden, NJ .................................. 223 Gas
Hudson, Jersey City, NJ ............................. 129 Oil
Mercer, Hamilton, NJ ................................ 129 Oil
Sewaren, Woodbridge Township, NJ .................... 129 Oil
Bayonne, Bayonne, NJ ................................ 42 Oil
Bergen, Ridgefield, NJ .............................. 21 Gas
National Park, National Park, NJ .................... 21 Oil
Salem, Lower Alloways Creek, NJ 42.59%(B) ........... 16 Oil
------
Total Combustion Turbine ............................ 2,724
------
Internal Combustion:
Conemaugh, New Florence, PA--22.50%(B) .............. 3 Oil
Keystone, Shelocta, PA--22.84%(B) ................... 2 Oil
------
Total Internal Combustion ...................... 5
------
Pumped Storage:
Yards Creek, Blairstown, NJ--50%(B)(C) .............. 200
------
Total PSE&G .................................... 10,251 (A)
======
(A) Excludes 687 MW of non-utility generation and 302 MW of temporary capacity
sales.
(B) PSE&G's share of jointly owned facility.
(C) Excludes energy for pumping and synchronous condensers.
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<PAGE> 26
In addition to the generating facilities in New Jersey and Pennsylvania as
indicated in the table above, as of December 31, 1997, PSE&G owned 41 switching
and/or generating stations with an aggregate installed capacity of 30,255,000
kilovolt-amperes, and 222 substations with an aggregate installed capacity of
7,295,000 kilovolt-amperes. In addition, seven substations having an aggregate
installed capacity of 115,250 kilovolt-amperes were operated on leased property.
All of these facilities are located in New Jersey.
As of December 31, 1997, PSE&G's transmission and distribution system
included 153,238 circuit miles, of which 37,694 miles were underground, and
801,811 poles, of which 537,208 poles were jointly owned. Approximately 99% of
this property is located in New Jersey.
In addition, as of December 31, 1997, PSE&G owned four electric
distribution headquarters and five subheadquarters in four operating divisions
all located in New Jersey.
Gas Properties
As of December 31, 1997, the daily gas capacity of PSE&G's 100%-owned
peaking facilities (the maximum daily gas delivery available during the three
peak winter months) consisted of liquid petroleum air gas (LPG) and liquefied
natural gas (LNG) and aggregated 2,973,000 therms (approximately 288,600,000
cubic feet on an equivalent basis of 1,030 Btu/cubic foot) as shown in the
following table:
Daily Capacity
--------------
Plant Location (Therms)
----- --------
Burlington LNG........................ Burlington, NJ 773,000
Camden LPG............................ Camden, NJ 280,000
Central LPG........................... Edison Twp., NJ 960,000
Harrison LPG.......................... Harrison, NJ 960,000
-------
Total............................... 2,973,000
=========
As of December 31, 1997, PSE&G owned and operated approximately 16,000
miles of gas mains, owned 11 gas distribution headquarters and two
subheadquarters all in two operating regions located in New Jersey and owned one
meter shop in New Jersey serving all such areas. In addition, PSE&G operated 61
natural gas metering or regulating stations, all located in New Jersey, of which
28 were located on land owned by customers or natural gas pipeline companies
supplying PSE&G with natural gas and were operated under lease, easement or
other similar arrangement. In some instances, portions of the metering and
regulating facilities were owned by the pipeline companies.
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3. The following information is for the last calendar year with respect to
claimant and each of its subsidiary public utility companies:
(a) Number of kwh. (megawatt (Mwh.) = 1,000 kilowatts) of
electric energy sold (at retail or wholesale), and Mcf.
of natural or manufactured gas distributed at retail.
Enterprise - None
PSE&G - 49,184,107 Mwh. (retail and wholesale)
PSE&G - 392,528,143 Mcf. (1997 basis of 1,034 BTU/cubic
foot)
(b) Number of kwh. of electric energy and Mcf. of natural or
manufactured gas distributed at retail outside the State
in which each such company is organized.
Enterprise - None
PSE&G - None
(c) Number of Mwh. of electric energy and Mcf. of natural or
manufactured gas sold at wholesale outside the State in
which each such company is organized, or at the State
line.
Enterprise - None
PSE&G - 21,960,726 Mwh. interchanged
PSE&G - 54,447,815 Mcf. total off-system sales (including
off-system sales at N.J. City-Gate)
(d) Number of Mwh. of electric energy and Mcf. of natural or
manufactured gas purchased outside the State in which
each such company is organized or at the State line.
Enterprise - None
PSE&G - 26,436,292 Mwh. purchased
PSE&G - 340,466,810 Mcf. received through sales and
transportation agreements with interstate
pipelines having delivery points within the
State.
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4. The following information for the reporting period with respect to
claimant and each interest it holds directly or indirectly in an EWG or a
foreign utility company, stating monetary amounts in United States dollars:
(a) Name, location, business address and description of the
facilities used by the EWG or foreign utility company
for the generation, transmission and distribution of
electric energy for sale or the distribution at retail
of natural or manufactured gas.
(i) CEA Bhilai Energy Company Ltd. (BHILAI), a
Mauritius company, has its registered office at
608 St. James Court, St. Denis Street, Port Louis,
Mauritius. BHILAI has a 45% interest in Bhilai
Power Supply Company Limited, which will construct
and own a 587 MW coal-fired power plant in Malhya
Pradish, India. BHILAI is a direct wholly-owned
subsidiary of CEA India Limited.
(ii) CEA Meiya Power, Ltd. (CMP), a Bermuda limited
liability company, has its principal executive
offices at Clarendon House, 2 Church Street,
Hamilton, Bermuda. CMP was formed for the purpose
of acquiring a controlling interest (51%) in the
voting securities of Meiya Jingling (Nanjing)
Cogen Power Co. Ltd. (MJCP), a Sino-Foreign
Cooperative Joint Venture to be formed under the
laws of the People's Republic of China. MJCP,
after formation, will acquire an existing 100 MW
coal-fired generation facility, consisting of
three pulverized coal-fired boilers and two 50 MW
extracting/condensing steam turbine generating
sets located in Nanjing, Jiangsu Province,
People's Republic of China. CMP is a direct
wholly-owned subsidiary of CEA China.
(iii) CEA Philippines Holdings LLC (CPHLLC), a Delaware
limited liability company, has its registered
office at 1209 Orange Street, Wilmington, Delaware
19801. CPHLLC has a 27.8% interest in Magellan
Capital Holdings Corporation, a Philippine
company, which in turn has a 56% interest in
Magellan Cogeneration Inc., a Philippine company,
which owns and operates a diesel-fired power
generation facility in Cavite, Philippines. CPHLLC
is a direct wholly-owned subsidiary of CEA China.
(iv) Central Termica San Nicolas, S.A. (CTSN), an
Argentine corporation, has its principal executive
offices at Cerrito 1294, Piso 3, (1062), Buenos
Aires (Capital Federal), Argentina. CTSN owns and
operates a coal, petroleum coke, natural gas and
oil-fired electric power generating facility
located at San Nicolas,
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<PAGE> 29
Argentina. CTSN is an indirectly owned subsidiary
of CEMAS Corporation.
(v) China U.S. Power Partners I, Ltd. (CUPPI), a
Bermuda limited liability company, has its
registered office at Clarendon House, 2 Church
Street, Hamilton, Bermuda. CUPPI has a 30%
interest in Jingyuan Second Power Co., Ltd.
(Jingyuan), which owns a coal-fired electric power
generation facility in Jingyuan, China. CEA China
indirectly owns 15% of Jingyuan.
(vi) Rio Grande Energia, S.A.,("RGE"), (formerly
Companhia Norte-Nordeste de Distribuicao de
Energia Eletrica), a Brazilian company, has its
registered office at Rua da Consolacao #247, 8th
Floor, Room 12, Sao Paulo, Brazil 01301903. RGE is
an electric distribution company serving the State
of Rio Grande do Sul, Brazil. RGE is 91.80% owned
by Doc 3 Participacoes S.A., a Brazilian company,
which in turn is 33.33% owned by IPE. IPE is 50%
owned by each of CEA Brazil Company and CEA Brazil
I Company, both Cayman companies, which in turn
are wholly-owned by Pampa Energia Ltda.
(vii) Empresa Distribuidora de Energia Norte S.A.
(EDEN), an Argentine company, has its principal
executive offices at Colle 48, numero 786, La
Plata, Argentina. EDEN owns a distribution
facility in the province of Buenos Aires,
Argentina. EDEN is a direct 33.34% owned
subsidiary of CEA OA, which in turn is 99.99%
owned by CEA Americas Operating Company (CEAAOC),
a Cayman company and .01% owned by CEMAS
Corporation. CEAAOC is in turn 90% owned by CEA
Americas Ltd., a Bermuda limited liability
company. CEA Americas Ltd. is a wholly-owned
subsidiary of CEA Americas, Inc.
(viii)Empresa Distribuidora de Energia Sur S.A. (EDES),
an Argentine company, has its principal executive
offices at Colle 48, numero 786, La Plata,
Argentina. EDES owns a distribution facility in
the province of Buenos Aires, Argentina. EDES is a
direct 33.34% owned subsidiary of CEA OA, which in
turn is 99.99% owned by CEA Americas Operating
Company (CEAAOC), a Cayman company and .01% owned
by CEMAS Corporation. CEAAOC is in turn 90% owned
by CEA Americas Ltd., a Bermuda limited liability
company. CEA Americas Ltd. is a wholly-owned
subsidiary of CEA Americas, Inc.
(ix) Termo Santander de Colombia E.S.P. (Termo E.S.P.),
a Colombian company, has its principal executive
offices at Carrera
29
<PAGE> 30
11, No. 9353, Piso 6, Bogota, Columbia. Termo
E.S.P. owns a 55 MW natural gas-fired power
production facility in the State of Santander in
Colombia. Alpha has a 26% limited partnership
interest. Beta has a 24% limited partnership
interest and Termo Santander Management Company
Ltd. is a general partner with a .001% profit
interest in Termo E.S.P. As a result, CEA Americas
Ltd. indirectly owns a 50% interest in Termo
E.S.P.
(x) Turbogeneradores Maracay, C.A. (TGM), a Venezuela
company, has its principal offices located at
Avenida Francisco de Miranda, Piso 12, Torre
Country Club, Chacaito, Caracas, Venezuela. TGM
owns and operates two nominal 20 MW simple-cycle
gas turbine generators at the paper mill
facilities of Manufacturas de Papel C.A. in
Maracay, Venezuela. TGM is a direct 17.13% owned
subsidiary of Turbogeneradores de Venezuela, C.A.,
(TGV). TGV is a direct 50% owned subsidiary of CEA
Americas II, Ltd.
(b) Name of each system company that holds an interest in
such EWG or foreign utility company; and description of
the interest held.
See Exhibit C attached hereto.
(c) Type and amount of capital invested, directly or
indirectly, by the holding company claiming exemption;
any direct or indirect guarantee of the security of the
EWG or foreign utility company by the holding company
claiming exemption; and any debt or other financial
obligation for which there is recourse, directly or
indirectly, to the holding company claiming exemption or
another system company, other than the EWG or foreign
utility company.
(i) BHILAI
As of December 31, 1997, Enterprise has an
indirect aggregate capital investment in BHILAI of
U.S. $0.
(ii) CMP
As of December 31, 1997, Enterprise has an
indirect aggregate capital investment in CMP of
U.S. $0.
(iii) CPHLLC
As of December 31, 1997, Enterprise has an
indirect aggregate capital investment in CPHLLC of
U.S. $8,298,627, all of which is equity.
30
<PAGE> 31
(iv) CTSN
As of December 31, 1997, Enterprise has an
indirect aggregate capital investment in CTSN of
U.S. $22,076,869 of which U.S. $22,076,869 is
equity and U.S. $3,719,460 is debt (including
interest).
(v) CUPPI
As of December 31, 1997, Enterprise has an
indirect aggregate capital investment in CUPPI of
U.S. $56,009,430 all of which is equity. CEA has
committed to fund up to a total of $130 million in
Jingyuan, (system company of CUPPI) pursuant to
the joint venture contract governing Jingyuan.
(vi) RGE
As of December 31, 1997, Enterprise has an
indirect aggregate capital investment in RGE of
U.S. $503,855,051 of which U.S. $365,736,789 is
equity and U.S. $0 is debt (including interest).
(vii) EDEN
As of December 31, 1997, Enterprise has an
indirect aggregate capital investment in EDEN of
U.S. $155,363,943 of which U.S. $84,826,884 is
equity and U.S. $0 is debt (including interest).
(viii)EDES
As of December 31, 1997, Enterprise has an
indirect aggregate capital investment in EDES of
U.S. $61,475,099 of which U.S. $33,565,460 is
equity and U.S. $0 is debt (including interest).
(ix) Termo E.S.P.
As of December 31, 1997, Enterprise has an
indirect aggregate capital investment in Termo
E.S.P. of U.S. $60,061,573 all of which is equity.
(x) TGM
As of December 31, 1997, Enterprise has an
indirect capital investment in TGM of U.S.
$1,981,855 all of which is equity. Enterprise and
its subsidiaries (direct and indirect) have no
other security guarantees, debt or other financial
obligations relative to TGM.
31
<PAGE> 32
(d) Capitalization and earnings of the EWG or foreign
utility company during the reporting period.
(i) BHILAI
----------
12/31/97
$ U.S.
------------
Capitalization $ 0
============
Net Income $ 0
============
(ii) CMP
--------
12/31/97
$ U.S.
------------
Capitalization $ 0
============
Net Income $ 0
============
(iii) CPHLLC
------------
12/31/97
$ U.S.
------------
Assets
Current Assets $ 0
Non-current Assets 8,298,627
------------
Total Assets $ 8,298,627
============
Liabilities
Current Liabilities $ 11,874,263
Non-current Liabilities (28,302)
------------
Total Liabilities 11,845,961
Equity (3,547,334)
------------
Total Liabilities and Equity $ 8,298,627
============
Net Income for Year-Ended 12/31/97 U.S. $ (254,719)
32
<PAGE> 33
(iv) CTSN
---------
12/31/97
$ U.S.
------------
Assets
Current Assets $ 49,688,474
Non-current Assets 147,292,840
------------
Total Assets $196,981,314
============
Liabilities
Current Liabilities $ 55,395,975
Non-current Liabilities 48,192,113
------------
Liabilities 103,588,088
Equity 93,393,226
------------
Total Liabilities and Equity $196,981,314
============
Net Income for Year-Ended 12/31/97 U.S. $ 14,157,060
(v) CUPPI
---------
12/31/97
$ U.S.
------------
Assets
Current Assets $ 0
Non-current Assets 94,932,701
------------
Total Assets $ 94,932,701
============
Liabilities
Current Liabilities $ 65,883,960
Non-current Liabilities 0
------------
Liabilities 65,883,960
Equity 29,048,741
------------
Total Liabilities and Equity $ 94,932,701
============
Net Income for Year-Ended 12/31/97 U.S. $ 4,167,227
33
<PAGE> 34
(vi) RGE
--------
12/31/97
$ U.S.
------------
Assets
Current Assets $150,947,348
Non-current Assets 605,970,051
------------
Total Assets $756,917,399
============
Liabilities
Current Liabilities $ 85,310,694
Non-current Liabilities 326,134,010
------------
Total Liabilities 411,444,704
Equity 345,472,695
------------
Total Liabilities and Equity $756,917,399
============
Net Income for Year-Ended 12/31/97 U.S. $ 57,390,418
(vii) EDEN
----------
12/31/97
$ U.S.
------------
Assets
Current Assets $ 91,203,412
Non-current Assets 456,247,104
------------
Total Assets $547,450,516
============
Liabilities
Current Liabilities $ 55,251,610
Non-current Liabilities 71,000,000
------------
Total Liabilities 126,251,610
Equity 421,198,906
------------
Total Liabilities and Equity $547,450,516
============
Net Income for Year-Ended 12/31/97 U.S. $ 4,527,492
34
<PAGE> 35
(viii) EDES
-----------
12/31/97
$ U.S.
------------
Assets
Current Assets $ 33,338,156
Non-current Assets 161,889,780
------------
Total Assets $195,227,936
============
Liabilities
Current Liabilities $ 14,555,516
Non-current Liabilities 24,000,000
------------
Total Liabilities 38,555,516
Equity 156,672,420
------------
Total Liabilities and Equity $195,227,936
============
Net Income for Year-Ended 12/31/97 U.S. $ 3,993,468
(ix) TERMO E.S.P
----------------
12/31/97
$ U.S.
------------
Assets
Current Assets $ 6,252,294
Non-current Assets 106,278,621
------------
Total Assets $112,530,915
============
Liabilities
Current Liabilities $ 17,637,056
Non-current Liabilities 0
------------
Total Liabilities 17,637,056
Equity 94,893,859
------------
Total Liabilities and Equity $112,530,915
============
Net Income for Year-Ended 12/31/97 U.S. $ 494,537
35
<PAGE> 36
(x) TGM
--------
12/31/97
$ U.S.
----------
Assets
Current Assets $3,688,190
Non-current Assets 5,590,262
----------
Total Assets $9,278,452
==========
Liabilities
Current Liabilities $ 127,060
Non-current Liabilities 1,348,594
----------
Total Liabilities 1,475,654
Equity 7,802,798
----------
Total Liabilities and Equity $9,278,452
==========
Net Income for Year-Ended 12/31/97 U.S. $3,639,949
36
<PAGE> 37
(e) Identify any service, sales or construction contract(s)
between the EWG or foreign utility company and a system
company, and describe the services to be rendered or
goods sold and fees or revenues under such agreement(s).
(i) BHILAI
None.
(ii) CMP
None.
(iii) CPHLLC
None.
(iv) CTSN
None.
(v) CUPPI
None.
(vi) RGE
None.
(vii) EDEN
None.
(viii) EDES
None.
(ix) Termo E.S.P.
None.
(x) TGM
None.
37
<PAGE> 38
EXHIBIT A
A consolidating statement of income and surplus of claimant and its direct
or indirect affiliated subsidiary companies for the last calendar year, together
with a consolidating balance sheet of claimant and its subsidiary companies as
of the close of such calendar year.
Exhibit A includes all required consolidating financial statements
described above to be filed with this report and are attached hereto.
Subsidiaries described under Item 1 above include all Enterprise's direct
and indirect subsidiaries. Direct and indirect subsidiaries of Enterprise
that exceeded 2% of Enterprise's consolidated assets or consolidated
revenues are PSE&G, EDHI, PSRC, RCMC, CEA, CEA USA, CEA International, CEA
Americas Inc., CEA Americas LTD, CEA Brazil, and CEA Pampa Energia Ltda.
and are included in Exhibit A and cross-referenced for additional
information to Item I.
EXHIBIT B
Financial Data Schedule
If, at the time a report on this form is filed, the registrant is required
to submit this report and any amendments thereto electronically via EDGAR, the
registrant shall furnish a Financial Data Schedule. The Schedule shall set forth
the financial and other data specified below that are applicable to the
registrant on a consolidated basis.
Exhibit B, attached to this report, includes all financial and other data
that are applicable to the registrant on a consolidated basis.
EXHIBIT C
An organizational chart showing the relationship of each EWG or foreign
utility company to the associate companies in the holding-company system.
See attached Exhibit C.
38
<PAGE> 39
EXHIBIT A
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
(Millions of Dollars)
<TABLE>
<CAPTION>
INTERCOMPANY
PSEG ELIMINATIONS PSE&G & EDHI &
CONSOL. & RECLASS. SUBS. SUBS. PSEG
--------- ------------ ------- ------- -----
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES
Electric $ 4,188 $ - $ 4,188 $ - $ -
Gas 1,937 - 1,937 - -
Nonutility Activities 245 - - 244 1
--------- ----- ------- ----- -----
TOTAL OPERATING REVENUES 6,370 - 6,125 244 1
--------- ----- ------- ----- -----
OPERATING EXPENSES
Operation
Fuel for Electric Generation and
Interchanged Power 1,179 - 1,179 - -
Gas Purchased 1,101 - 1,101 - -
Other 1,082 - 994 87 1
Maintenance 282 - 282 - -
Depreciation and Amortization 630 - 616 14 -
Taxes:
Federal Income Taxes 329 1 307 22 (1)
New Jersey Gross Receipts Taxes 576 - 576 - -
Other 76 - 72 4 -
--------- ----- ------- ----- -----
TOTAL OPERATING EXPENSES 5,255 1 5,127 127 -
--------- ----- ------- ----- -----
OPERATING INCOME 1,115 (1) 998 117 1
--------- ----- ------- ----- -----
OTHER INCOME AND DEDUCTIONS
Settlement of Salem Litigation - Net of
Taxes of $29 (53) - (53) - -
Equity in Earnings of Subsidiary Companies - (560) - - 560
Other - net 7 - 7 - -
--------- ----- ------- ----- -----
TOTAL OTHER INCOME AND DEDUCTIONS (46) (560) (46) - 560
--------- ----- ------- ----- -----
INCOME BEFORE INTEREST CHARGES
AND DIVIDENDS ON PREFERRED SECURITIES 1,069 (561) 952 117 561
--------- ----- ------- ----- -----
INTEREST EXPENSE AND PREFERRED DIVIDENDS
Interest Expense 470 - 395 74 1
Allowance for Funds Used During
Construction - Debt and Capitalized Interest (20) - (15) (5) -
Preferred Securities Dividend Requirements 56 12 44 - -
Net Loss on Preferred Stock Redemptions 3 3 - - -
--------- ----- ------- ----- -----
TOTAL INTEREST EXPENSE AND PREFERRED
DIVIDENDS 509 15 424 69 1
--------- ----- ------- ----- -----
NET INCOME $ 560 $(576) $ 528 $ 48 $ 560
========= ===== ======= ===== =====
AVERAGE SHARES OF COMMON STOCK
OUTSTANDING (000's) 231,986
TOTAL EARNINGS PER AVERAGE SHARE $ 2.41
=========
DIVIDENDS PAID PER SHARE OF COMMON STOCK $ 2.16
=========
</TABLE>
PSEG - Public Service Enterprise Group Incorporated
PSE&G - Public Service Electric and Gas Company
EDHI - Enterprise Diversified Holdings Incorporated
<PAGE> 40
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
(Millions of Dollars)
<TABLE>
<CAPTION>
Intercompany
PSEG Eliminations PSE&G & EDHI &
Consol. & Reclass. Subs. Subs. PSEG
------ ------------ ------- ------ ------
<S> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $1,586 $(1,468) $ 1,365 $103 $1,586
ADD:
Net Income 560 (576) 528 48 560
------ ------- ------- ---- ------
Total 2,146 (2,044) 1,893 151 2,146
DEDUCT:
Cash Dividends:
Preferred Stock, at required rates - (12) 12 - -
Common Stock 501 (523) 523 - 501
------ ------- ------- ---- ------
Total Cash Dividends 501 (535) 535 - 501
Retirement of Common Stock 19 - - - 19
Preferred Securities Issuance Expenses 3 (3) 3 - 3
------ ------- ------- ---- ------
Total Deductions 523 (538) 538 - 523
------ ------- ------- ---- ------
Net gain (loss) on Preferred Stock Redemptions - 3 (3) - -
------ ------- ------- ---- ------
BALANCE DECEMBER 31, 1997 $1,623 $(1,503) $ 1,352 $151 $1,623
====== ======= ======= ==== ======
</TABLE>
<PAGE> 41
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
(Millions of Dollars)
<TABLE>
<CAPTION>
Intercompany
PSEG Eliminations PSE&G & EDHI &
Consol. & Reclass. Subs. Subs. PSEG
------ ------------ ------- ------ ------
<S> <C> <C> <C> <C> <C>
ASSETS
UTILITY PLANT - Original Cost
Electric $13,692 $ - $13,692 $ - $ -
Gas 2,697 - 2,697 - -
Common 558 - 558 - -
------- ------- ------- ------ ------
Total 16,947 - 16,947 - -
Less: Accumulated Depreciation
and Amortization 6,463 - 6,463 - -
------- ------- ------- ------ ------
Net 10,484 - 10,484 - -
Nuclear Fuel in Service, net of
accumulated amortization 216 - 216 - -
------- ------- ------- ------ ------
Net Utility Plant in Service 10,700 - 10,700 - -
Construction Work in Progress including
Nuclear Fuel in Process 326 - 326 - -
Plant Held for Future Use 24 - 24 - -
------- ------- ------- ------ ------
Net Utility Plant 11,050 - 11,050 - -
------- ------- ------- ------ ------
INVESTMENTS AND OTHER NONCURRENT ASSETS
Long-Term Investments, net of
amortization and net of valuation allowances 2,873 (5,239) 137 2,736 5,239
Nuclear Decommissioning and Other Special Funds 492 - 492 - -
Other Noncurrent Assets 167 - 45 91 31
------- ------- ------- ------ ------
Total Investments and Other Noncurrent Assets 3,532 (5,239) 674 2,827 5,270
------- ------- ------- ------ ------
CURRENT ASSETS
Cash and Cash Equivalents 83 - 17 11 55
Accounts Receivable:
Customer Accounts Receivable 520 - 488 32 -
Other Accounts Receivable 293 - 232 35 26
Less: Allowance for Doubtful Accounts 41 - 41 - -
Accounts Receivable - Associated Companies - (13) - 1 12
Unbilled Revenues 270 - 270 - -
Fuel, at average cost 310 - 310 - -
Materials and Supplies, at average cost, net of
inventory valuation reserves 142 - 142 - -
Miscellaneous Current Assets 86 - 81 5 -
------- ------- ------- ------ ------
Total Current Assets 1,663 (13) 1,499 84 93
------- ------- ------- ------ ------
DEFERRED DEBITS
Unamortized Debt Expense 136 - 135 1 -
Deferred OPEB Costs 289 - 289 - -
Unrecovered Environmental Costs 122 - 122 - -
Underrecovered Electric Energy
and Gas Costs 167 - 167 - -
Unrecovered SFAS 109 Deferred Income Taxes 725 - 725 - -
Deferred Demand Side Management Costs 116 - 116 - -
Other 143 - 143 - -
------- ------- ------- ------ ------
Total Deferred Debits 1,698 - 1,697 1 -
------- ------- ------- ------ ------
TOTAL ASSETS $17,943 $(5,252) $14,920 $2,912 $5,363
======= ======= ======= ====== ======
</TABLE>
<PAGE> 42
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
(Millions of Dollars)
<TABLE>
<CAPTION>
Intercompany
PSEG Eliminations PSE&G & EDHI &
Consol. & Reclass. Subs. Subs. PSEG
------ ------------ ------- ------ ------
<S> <C> <C> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stockholders' Equity:
Common Stock $ 3,603 $(2,563) $ 2,563 $ - $ 3,603
Contributed Capital - (1,113) 594 519 -
Retained Earnings 1,623 (1,503) 1,352 151 1,623
Foreign Currency Translation Adjustment (15) 15 - (15) (15)
-------- ------- ------- ------- -------
Total Common Stockholders' Equity: 5,211 (5,164) 4,509 655 5,211
Subsidiaries' Preferred Securities:
Preferred Stock Without Mandatory Redemption 95 (75) 95 75 -
Preferred Stock With Mandatory Redemption 75 - 75 - -
Monthly Guaranteed Preferred Beneficial
Interest in PSE&G's Subordinated Debentures 210 - 210 - -
Quarterly Guaranteed Preferred Beneficial
Interest in PSE&G's Subordinated Debentures 303 - 303 - -
Long- Term Debt 4,873 - 4,126 747 -
-------- ------- ------- ------- -------
TOTAL CAPITALIZATION 10,767 (5,239) 9,318 1,477 5,211
-------- ------- ------- ------- -------
OTHER LONG-TERM LIABILITIES
Decontamination and Decommissioning Costs 43 - 43 - -
Environmental Costs 73 - 73 - -
Capital Lease Obligations 52 - 52 - -
-------- ------- ------- ------- -------
Total Other Long - Term Liabilities 168 - 168 - -
-------- ------- ------- ------- -------
CURRENT LIABILITIES
Long- Term Debt due within one year 340 - 118 222 -
Commercial Paper and Loans 1,448 - 1,106 267 75
Accounts Payable 686 (4) 602 22 66
Accounts Payable - Associated Companies - (9) 6 26 (23)
Other 353 - 268 51 34
-------- ------- ------- ------- -------
TOTAL CURRENT LIABILITIES 2,827 (13) 2,100 588 152
-------- ------- ------- ------- -------
DEFERRED CREDITS
Deferred Income Taxes 3,394 - 2,569 825 -
Deferred Investment Tax Credits 343 - 333 10 -
Deferred OPEB Costs 289 - 289 - -
Other 155 - 143 12 -
-------- ------- ------- ------- -------
TOTAL DEFERRED CREDITS 4,181 - 3,334 847 -
-------- ------- ------- ------- -------
TOTAL CAPITALIZATION AND LIABILITIES $ 17,943 $(5,252) $14,920 $ 2,912 $ 5,363
======== ======= ======= ======= =======
</TABLE>
<PAGE> 43
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
(Millions of Dollars)
<TABLE>
<CAPTION>
INTERCOMPANY
PSE&G ELIMINATIONS CAPITAL E & G
CONSOL. & RECLASS. PSE&G PSCRC FUELCO TRUST CAPITAL
------- ------------ -------- ----- ------ ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES
Electric $ 4,188 $ (35) $ 4,167 $ 21 $35 $ - $ -
Gas 1,937 - 1,937 - - - -
------- ----- ------- ---- --- --- ---
TOTAL OPERATING REVENUES 6,125 (35) 6,104 21 35 - -
------- ----- ------- ---- --- --- ---
OPERATING EXPENSES
Operation
Fuel for Electric Generation and
Interchanged Power 1,179 - 1,179 - - - -
Gas Purchased 1,101 - 1,101 - - - -
Other 994 - 985 9 - - -
Maintenance 282 - 282 - - - -
Depreciation and Amortization 616 (35) 607 9 35 - -
Taxes:
Federal Income Taxes 307 - 307 - - - -
New Jersey Gross Receipts Taxes 576 - 576 - - - -
Other 72 - 72 - - - -
------- ----- ------- ---- --- --- ---
TOTAL OPERATING EXPENSES 5,127 (35) 5,109 18 35 - -
------- ----- ------- ---- --- --- ---
OPERATING INCOME 998 - 995 3 - - -
------- ----- ------- ---- --- --- ---
OTHER INCOME AND DEDUCTIONS
Settlement of Salem Litigation - Net of Applicable
Taxes of $29 (53) - (53) - - - -
Other - net 7 (46) 11 (3) - 26 19
------- ----- ------- ---- --- --- ---
TOTAL OTHER INCOME AND DEDUCTIONS (46) (46) (42) (3) - 26 19
------- ----- ------- ---- --- --- ---
INCOME BEFORE INTEREST CHARGES
AND DIVIDENDS ON PREFERRED SECURITIES 952 (46) 953 - - 26 19
------- ----- ------- ---- --- --- ---
INTEREST EXPENSES AND PREFERRED SECURITIES DIVIDENDS
Interest Expense 395 (45) 440 - - - -
Allowance for Funds Used During Construction - Debt (15) - (15) - - - -
Preferred Securities Dividend Requirements of Subsidiaries 44 (1) - - - 26 19
------- ----- ------- ---- --- --- ---
TOTAL INTEREST EXPENSE AND PREFERRED
SECURITIES DIVIDEND 424 (46) 425 - - 26 19
------- ----- ------- ---- --- --- ---
NET INCOME 528 - 528 - - - -
Preferred Stock Dividend Requirements 12 - 12 - - - -
Net Loss on Preferred Stock Redemptions 3 - 3 - - - -
------- ----- ------- ---- --- --- ---
EARNINGS AVAILABLE TO PUBLIC SERVICE
ENTERPRISE GROUP INCORPORATED $ 513 $ - $ 513 $ - $ - $ - $ -
======= ===== ======= ==== === === ===
</TABLE>
PSE&G - Public Service Electric and Gas Company
PSCRC - Public Service Conservation Resources Corporation
FUELCO - PSE&G Fuel Corporation
SETI - Soil Extraction Technologies, Incorporated
CAPITAL TRUST - Public Service Electric and Gas Capital Trust I
E&G CAPITAL - Public Service Electric and Gas Capital, L.P.
NJP - New Jersey Properties
PSC of NJ - Public Service Corporation of New Jersey
<PAGE> 44
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
(Millions of Dollars)
<TABLE>
<CAPTION>
Intercompany
PSE&G Eliminations
Consol. & Reclass. PSE&G PSCRC SETI
------- ------------ ----- ----- ----
<S> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $ 1,365 $7 $ 1,365 $(5) $(2)
ADD:
Net Income 528 - 528 - -
------- -- ------- --- ---
Total 1,893 7 1,893 (5) (2)
------- -- ------- --- ---
DEDUCT:
Cash Dividends:
Preferred Stock, at required rates 12 - 12 - -
Common Stock 523 - 523 - -
------- -- ------- --- ---
Total Cash Dividends 535 - 535 - -
Preferred Securities Issuance Expenses 3 - 3 - -
------- -- ------- --- ---
Total Deductions 538 - 538 - -
------- -- ------- --- ---
Net gain (loss) on Preferred Stock Redemptions (3) - (3) - -
------- -- ------- --- ---
BALANCE DECEMBER 31, 1997 $ 1,352 $7 $ 1,352 $(5) $(2)
======= == ======= === ===
</TABLE>
<PAGE> 45
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
(Millions of Dollars)
<TABLE>
<CAPTION>
Intercompany
PSE&G Eliminations
Consol. & Reclass. PSE&G Fuelco NJP SETI PSC of NJ
------- ------------ ----- ------ --- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
UTILITY PLANT - ORIGINAL COST
Electric $13,692 $ - $13,692 $ - $ - $- $ -
Gas 2,697 - 2,697 - - - -
Common 558 - 558 - - - -
------- ----- ------- --- --- --- ---
Total 16,947 - 16,947 - - - -
Less: Accumulated Depreciation
and Amortization 6,463 - 6,463 - - - -
------- ----- ------- --- --- --- ---
Net 10,484 - 10,484 - - - -
Nuclear Fuel in Service, net of
accumulated amortization 216 - 139 77 - - -
------- ----- ------- --- --- --- ---
Net Utility Plant in Service 10,700 - 10,623 77 - - -
Construction Work in Progress including
Nuclear Fuel in Process 326 - 326 - - - -
Plant Held for Future Use 24 - 24 - - - -
------- ----- ------- --- --- --- ---
NET UTILITY PLANT 11,050 - 10,973 77 - - -
------- ----- ------- --- --- --- ---
INVESTMENTS AND OTHER NONCURRENT ASSETS
Long-Term Investments, net of
amortization and net of valuation allowances 137 1 47 - - - -
Investment in Subsidiaries - (74) 74 - - - -
Nuclear Decommissioning and Other Special Funds 492 - 492 - - - -
Other Noncurrent Assets 45 - 44 - - - -
------- ----- ------- --- --- --- ---
TOTAL INVESTMENTS AND OTHER NONCURRENT ASSETS 674 (73) 657 - - - -
------- ----- ------- --- --- --- ---
CURRENT ASSETS
Cash and Cash Equivalents 17 - 17 - - - -
Accounts Receivable:
Customer Accounts Receivable 488 - 488 - - - -
Other Accounts Receivable 232 - 202 - - - -
Less: Allowance for Doubtful Accounts 41 - 33 - - - -
Accounts Receivable - Associated Companies - (590) 58 3 - 1 -
Unbilled Revenues 270 - 270 - - - -
Fuel, at average cost 310 - 310 - - - -
Materials and Supplies, at average cost, net of
inventory valuation reserves 142 - 142 - - - -
Miscellaneous Current Assets 81 - 79 1 - - -
------- ----- ------- --- --- --- ---
Total Current Assets 1,499 (590) 1,533 4 - 1 -
------- ----- ------- --- --- --- ---
DEFERRED DEBITS
Unamortized Debt Expense 135 - 135 - - - -
Deferred OPEB Costs 289 - 289 - - - -
Unrecovered Environmental Costs 122 - 110 - 12 - -
Underrecovered Electric Energy
and Gas Costs 167 - 167 - - - -
Unrecovered SFAS 109 Deferred Income Taxes 725 - 725 - - - -
Deferred Demand Side Management Costs 116 - 116 - - - -
Other 143 - 143 - - - -
------- ----- ------- --- --- --- ---
TOTAL DEFERRED DEBITS 1,697 - 1,685 - 12 - -
------- ----- ------- --- --- --- ---
TOTAL ASSETS $14,920 $(663) $14,848 $81 $12 $1 $ -
======= ===== ======= === === === ===
</TABLE>
<PAGE> 46
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
(Millions of Dollars)
<TABLE>
<CAPTION>
New PSE&G PSE&G Capital PSE&G Capital
PSCRC TFC Millennium Capital, L.P. Trust I Trust II
---- ---- ---- ---- ---- ---
<S> <C> <C> <C> <C> <C> <C>
ASSETS
UTILITY PLANT - ORIGINAL COST
Electric $ - $ - $ - $ - $ - $ -
Gas - - - - - -
Common - - - - - -
---- ---- ---- ---- ---- ---
Total - - - - - -
Less: Accumulated Depreciation
and Amortization - - - - - -
---- ---- ---- ---- ---- ---
Net - - - - - -
Nuclear Fuel in Service, net of
accumulated amortization - - - - - -
---- ---- ---- ---- ---- ---
Net Utility Plant in Service - - - - - -
Construction Work in Progress including
Nuclear Fuel in Process - - - - - -
Plant Held for Future Use - - - - - -
---- ---- ---- ---- ---- ---
NET UTILITY PLANT - - - - - -
---- ---- ---- ---- ---- ---
INVESTMENTS AND OTHER NONCURRENT ASSETS
Long-Term Investments, net of
amortization and net of valuation allowances 88 1 - - - -
Investment in Subsidiaries - - - - - -
Nuclear Decommissioning and Other Special Funds - - - - - -
Other Noncurrent Assets - - 1 - - -
---- ---- ---- ---- ---- ---
TOTAL INVESTMENTS AND OTHER NONCURRENT ASSETS 88 1 1 - - -
---- ---- ---- ---- ---- ---
CURRENT ASSETS
Cash and Cash Equivalents - - - - - -
Accounts Receivable:
Customer Accounts Receivable - - - - - -
Other Accounts Receivable 30 - - - - -
Less: Allowance for Doubtful Accounts 8 - - - - -
Accounts Receivable - Associated Companies - - - 216 214 98
Unbilled Revenues - - - - - -
Fuel, at average cost - - - - - -
Materials and Supplies, at average cost, net of
inventory valuation reserves - - - - - -
Miscellaneous Current Assets 1 - - - - -
---- ---- ---- ---- ---- ---
TOTAL CURRENT ASSETS 23 - - 216 214 98
---- ---- ---- ---- ---- ---
DEFERRED DEBITS
Unamortized Debt Expense - - - - - -
Deferred OPEB Costs - - - - - -
Unrecovered Environmental Costs - - - - - -
Underrecovered Electric Energy
and Gas Costs - - - - - -
Unrecovered SFAS 109 Deferred Income Taxes - - - - - -
Deferred Demand Side Management Costs - - - - - -
Other - - - - - -
---- ---- ---- ---- ---- ---
TOTAL DEFERRED DEBITS - - - - - -
---- ---- ---- ---- ---- ---
TOTAL ASSETS $111 $ 1 $ 1 $216 $214 $98
==== ==== ==== ==== ==== ===
</TABLE>
<PAGE> 47
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
(Millions of Dollars)
<TABLE>
<CAPTION>
Intercompany
PSE&G Eliminations
Consol. & Reclass. PSE&G Fuelco NJP SETI PSC of NJ
------- ------------ ----- ------ --- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stockholder's Equity:
Common Stock $ 2,563 $ - 2,563 $ - $ - $- $ -
Contributed Capital 594 (65) 594 - - 3 -
Retained Earnings 1,352 7 1,352 - - (2) -
------- ----- ------- --- ---- ---- ---
Total Common Stockholder's Equity 4,509 (58) 4,509 - - 1 -
Preferred Stock Without Mandatory Redemption 95 - 95 - - - -
Preferred Stock With Mandatory Redemption 75 - 75 - - - -
Subsidiaries' Preferred Securities:
Monthly Guaranteed Preferred Beneficial Interest
in PSE&G's Subordinated Debentures 210 (6) - - - - -
Quarterly Guaranteed Preferred Beneficial Interest
in PSE&G's Subordinated Debentures 303 (9) - - - - -
Long- Term Debt 4,126 (529) 4,655 - - - -
------- ----- ------- --- ---- ---- ---
TOTAL CAPITALIZATION 9,318 (602) 9,334 - - 1 -
------- ----- ------- --- ---- ---- ---
OTHER LONG-TERM LIABILITIES
Decontamination and Decommissioning Costs 43 - 43 - - - -
Environmental Costs 73 - 73 - - - -
Capital Lease Obligations 52 - 52 - - - -
------- ----- ------- --- ---- ---- ---
TOTAL OTHER LONG - TERM LIABILITIES 168 - 168 - - - -
------- ----- ------- --- ---- ---- ---
CURRENT LIABILITIES
Long - Term Debt due within one year 118 - 118 - - - -
Commercial Paper and Loans 1,106 - 1,025 81 - - -
Accounts Payable 602 - 595 - - - -
Accounts Payable - Associated Companies 6 (62) 14 - 12 -
Other 268 - 268 - - - -
------- ----- ------- --- ---- ---- ---
TOTAL CURRENT LIABILITIES 2,100 (62) 2,020 81 12 - -
------- ----- ------- --- ---- ---- ---
DEFERRED CREDITS
Deferred Income Taxes 2,569 - 2,575 - - - -
Deferred Investment Tax Credits 333 - 333 - - - -
Deferred OPEB Costs 289 - 289 - - - -
Other 143 1 129 - - - -
------- ----- ------- --- ---- ---- ---
TOTAL DEFERRED CREDITS 3,334 1 3,326 - - - -
------- ----- ------- --- ---- ---- ---
TOTAL CAPITALIZATION AND LIABILITIES $14,920 $(663) $14,848 $81 $ 12 $1 $ -
======= ===== ======= === ==== ==== ===
</TABLE>
<PAGE> 48
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
(Millions of Dollars)
<TABLE>
<CAPTION>
New PSE&G PSE&G Capital PSE&G Capital
PSCRC TFC Millennium Capital, L.P. Trust I Trust II
---- ---- ---- ---- ---- ---
<S> <C> <C> <C> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stockholder's Equity:
Common Stock $ - $ - $ - $ - $ - $ -
Contributed Capital 60 1 1 - - -
Retained Earnings (5) - - - - -
----- ---- ---- ---- ---- ----
Total Common Stockholder's Equity 55 1 1 - - -
Preferred Stock Without Mandatory Redemption - - - - - -
Preferred Stock With Mandatory Redemption - - - - - -
Subsidiaries' Preferred Securities:
Monthly Guaranteed Preferred Beneficial Interest
in PSE&G's Subordinated Debentures - - - 216 - -
Quarterly Guaranteed Preferred Beneficial Interest
in PSE&G's Subordinated Debentures - - - - 214 98
Long- Term Debt - - - - - -
----- ---- ---- ---- ---- ----
TOTAL CAPITALIZATION 55 1 1 216 214 98
----- ---- ---- ---- ---- ----
OTHER LONG-TERM LIABILITIES
Decontamination and Decommissioning Costs - - - - - -
Environmental Costs - - - - - -
Capital Lease Obligations - - - - - -
----- ---- ---- ---- ---- ----
TOTAL OTHER LONG - TERM LIABILITIES - - - - - -
----- ---- ---- ---- ---- ----
CURRENT LIABILITIES
Long - Term Debt due within one year - - - - - -
Commercial Paper and Loans - - - - - -
Accounts Payable 7 - - - - -
Accounts Payable - Associated Companies 42 - - - - -
Other - - - - - -
----- ---- ---- ---- ---- ----
TOTAL CURRENT LIABILITIES 49 - - - - -
----- ---- ---- ---- ---- ----
DEFERRED CREDITS
Deferred Income Taxes (6) - - - - -
Deferred Investment Tax Credits - - - - - -
Deferred OPEB Costs - - - - - -
Other 13 - - - - -
----- ---- ---- ---- ---- ----
TOTAL DEFERRED CREDITS 7 - - - - -
----- ---- ---- ---- ---- ----
TOTAL CAPITALIZATION AND LIABILITIES $ 111 $ 1 $ 1 $216 $214 $ 98
===== ==== ==== ==== ==== ====
</TABLE>
<PAGE> 49
ENTERPRISE DIVERSIFIED HOLDINGS INCORPORATED
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
(MILLIONS OF DOLLARS)
<TABLE>
<CAPTION>
INTERCOMPANY
EDHI ELIMINATIONS
CONSOL. & RECLASS. EDHI CEA PSRC
------- ------------ ---- --- -------
<S> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ 128 $ - $ - $ 79 $ 49
Income from capital lease agreements 65 - - - 65
Unrealized gains (losses) on investments 34 - - - 34
Realized gains (losses) on investments (7) - - - (7)
Interest and dividend income 6 - - - 4
Consulting and O&M fees 17 - - 12 -
Energy supply revenues 1 - - - -
Rental income - - - - -
Interest and other - associated cos. - (72) 7 - -
Equity in subsidiary earnings - (48) 48 - -
----- ----- ---- ---- -----
Total revenues 244 (120) 55 91 145
----- ----- ---- ---- -----
OPERATING EXPENSES:
Operation and maintenance 11 - - 7 -
Depreciation and amortization 5 - - 2 2
Property impairment 10 - - - -
Administrative and general 78 (7) 7 37 9
----- ----- ---- ---- -----
Total operating expenses 104 (7) 7 46 11
----- ----- ---- ---- -----
OPERATING INCOME 140 (113) 48 45 134
----- ----- ---- ---- -----
OTHER INCOME 1 - - 1 -
----- ----- ---- ---- -----
INTEREST EXPENSE:
PSEG Capital Corporation - (41) - 11 30
Enterprise Capital Funding Corp. - (22) - 8 14
Enterprise Group Development Corp. - (1) - - -
Enterprise Diversified Holdings Inc. - - - - -
Energis Resources Inc. - (1) - - -
Other 73 - - 8 2
Capitalized interest (5) - - (5) -
----- ----- ---- ---- -----
Net interest expense 68 (65) - 22 46
----- ----- ---- ---- -----
INCOME BEFORE INCOME TAXES 73 (48) 48 24 88
----- ----- ---- ---- -----
INCOME TAXES:
Current (104) - 6 4 (99)
Deferred 130 - (6) 6 129
Investment and energy tax credits - net (1) - - - (1)
----- ----- ---- ---- -----
Total income taxes 25 - - 10 29
----- ----- ---- ---- -----
MINORITY INTERESTS - - - - -
----- ----- ---- ---- -----
NET INCOME 48 (48) 48 14 59
----- ----- ---- ---- -----
Preferred stock dividend requirements 1 - 1 - -
----- ----- ---- ---- -----
EARNINGS AVAILABLE TO COMMON STOCK $ 47 $ (48) $ 47 $ 14 $ 59
===== ===== ==== ==== =====
</TABLE>
EDHI - Enterprise Diversified Holdings Incorporated
CEA - Community Energy Alternatives Incorporated
PSRC - Public Service Resources Corporation
ERI - Energis Resources Incorporated
EGDC - Enterprise Group Development Corporation
PSEG CAPITAL - PSEG Capital Corporation
ECFC - Enterprise Capital Funding Corporation
<PAGE> 50
ENTERPRISE DIVERSIFIED HOLDINGS INCORPORATED
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
(MILLIONS OF DOLLARS)
<TABLE>
<CAPTION>
PSEG
ENERGIS EGDC CAPITAL ECFC
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ - $ - $ - $ -
Income from capital lease agreements - - - -
Unrealized gains (losses) on investments - - - -
Realized gains (losses) on investments - - - -
Interest and dividend income - - - 2
Consulting and O&M fees 5 - - -
Energy supply revenues 1 - - -
Rental income - - - -
Interest and other - associated cos. 1 1 41 22
Equity in subsidiary earnings - - - -
---- ---- ---- ----
Total revenues 7 1 41 24
---- ---- ---- ----
OPERATING EXPENSES:
Operation and maintenance 3 1 - -
Depreciation and amortization 1 - - -
Property impairment - 10 - -
Administrative and general 31 1 - -
---- ---- ---- ----
Total operating expenses 35 12 - -
---- ---- ---- ----
OPERATING INCOME (28) (11) 41 24
---- ---- ---- ----
OTHER INCOME - - - -
---- ---- ---- ----
INTEREST EXPENSE:
PSEG Capital Corporation - - - -
Enterprise Capital Funding Corp. - - - -
Enterprise Group Development Corp. - - 1 -
Enterprise Diversified Holdings Inc. - - - -
Energis Resources Inc. - - - 1
Other - - 40 23
Capitalized interest - - - -
---- ---- ---- ----
Net interest expense - - 41 24
---- ---- ---- ----
INCOME BEFORE INCOME TAXES (28) (11) - -
---- ---- ---- ----
INCOME TAXES:
Current (9) (6) - -
Deferred (1) 2 - -
Investment and energy tax credits - net - - - -
---- ---- ---- ----
Total income taxes (10) (4) - -
---- ---- ---- ----
MINORITY INTERESTS - - - -
---- ---- ---- ----
NET INCOME (18) (7) - -
---- ---- ---- ----
Preferred stock dividend requirements - - - -
---- ---- ---- ----
EARNINGS AVAILABLE TO COMMON STOCK $(18) $ (7) $ - $ -
==== ==== ==== ====
EDHI - Enterprise Diversified Holdings Incorporated
CEA - Community Energy Alternatives Incorporated
PSRC - Public Service Resources Corporation
ERI - Energis Resources Incorporated
EGDC - Enterprise Group Development Corporation
PSEG CAPITAL - PSEG Capital Corporation
ECFC - Enterprise Capital Funding Corporation
</TABLE>
<PAGE> 51
ENTERPRISE DIVERSIFIED HOLDINGS INCORPORATED
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
(MILLIONS OF DOLLARS)
<TABLE>
<CAPTION>
INTERCOMPANY
EDHI ELIMINATIONS
CONSOL. & RECLASS. EDHI CEA PSRC
---- ----- ---- --- ----
<S> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $103 $(160) $103 $50 $203
NET INCOME 48 (48) 48 14 59
---- ----- ---- --- ----
TOTAL 151 (208) 151 64 262
---- ----- ---- --- ----
DIVIDENDS DECLARED - (133) - - 133
---- ----- ---- --- ----
---- ----- ---- --- ----
BALANCE DECEMBER 31, 1997 $151 $ (75) $151 $64 $129
==== ===== ==== === ====
</TABLE>
<PAGE> 52
ENTERPRISE DIVERSIFIED HOLDINGS INCORPORATED
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
(MILLIONS OF DOLLARS)
<TABLE>
<CAPTION>
PSEG
ENERGIS EGDC CAPITAL ECFC
---- ---- ---- ----
<S> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $ (8) $(85) $ - $ -
NET INCOME (18) (7) - -
---- ---- ---- ----
TOTAL (26) (92) - -
---- ---- ---- ----
DIVIDENDS DECLARED - - - -
---- ---- ---- ----
---- ---- ---- ----
BALANCE DECEMBER 31, 1997 $(26) $(92) $ - $ -
==== ==== ==== ====
</TABLE>
<PAGE> 53
ENTERPRISE DIVERSIFIED HOLDINGS INCORPORATED
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
(MILLIONS OF DOLLARS)
<TABLE>
<CAPTION>
INTERCOMPANY
EDHI ELIMINATIONS
CONSOL. & RECLASS. EDHI CEA PSRC
------- ------------ ----- ------- -------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ 11 $ - $ - $ 2 $ 4
Accounts receivable:
Trade 32 - - 12 -
Other 35 2 - 1 20
PSE&G - (1) - - -
PSEG - (1) 1 - -
Other associated companies - (13) 1 - -
Notes receivable:
Associated companies - (1,036) - - -
Other 1 - - - -
Interest and dividends receivable 1 - - - 1
Prepayments 4 - - 1 -
------- ------- ----- ------- -------
Total Current Assets 84 (1,049) 2 16 25
------- ------- ----- ------- -------
PROPERTY, PLANT AND EQUIPMENT
Real estate 71 - - - 17
Other 13 1 2 6 -
Accum. depr. and amortization (12) - (1) (3) (7)
Valuation allowances (7) - - - -
------- ------- ----- ------- -------
Property, Plant and Equipment-net 65 1 1 3 10
------- ------- ----- ------- -------
INVESTMENTS
Subsidiaries - (758) 758 - -
Capital lease agreements 1,151 - - - 1,151
Partnership interests 681 - - 240 407
Corporate joint ventures 885 - - 885 -
Securities 27 (1) - - 27
Valuation allowances (8) - - - (4)
------- ------- ----- ------- -------
Total Investments 2,736 (759) 758 1,125 1,581
------- ------- ----- ------- -------
OTHER ASSETS
Debt service reserve 7 - - 7 -
Prepaid pension 1 - - 1 -
Other 19 (2) - 18 -
------- ------- ----- ------- -------
Total Other Assets 27 (2) - 26 -
------- ------- ----- ------- -------
TOTAL ASSETS $ 2,912 $(1,809) $ 761 $ 1,170 $ 1,616
======= ======= ===== ======= =======
</TABLE>
<PAGE> 54
ENTERPRISE DIVERSIFIED HOLDINGS INCORPORATED
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
(MILLIONS OF DOLLARS)
<TABLE>
<CAPTION>
PSEG
ENERGIS EGDC CAPITAL ECFC
------- ---- ------- ----
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ 2 $ - $ - $ 3
Accounts receivable:
Trade 20 - - -
Other 11 1 - -
PSE&G 1 - - -
PSEG - - - -
Other associated companies - - 9 3
Notes receivable:
Associated companies 18 3 605 410
Other - 1 - -
Interest and dividends receivable - - - -
Prepayments 3 - - -
---- ---- ---- ----
Total Current Assets 55 5 614 416
---- ---- ---- ----
PROPERTY, PLANT AND EQUIPMENT
Real estate 54 - -
Other 4 - - -
Accum. depr. and amortization (1) - - -
Valuation allowances - (7) - -
---- ---- ---- ----
Property, Plant and Equipment-net 3 47 - -
---- ---- ---- ----
INVESTMENTS
Subsidiaries - - - -
Capital lease agreements - - - -
Partnership interests - 34 - -
Corporate joint ventures - - - -
Securities 1 - - -
Valuation allowances - (4) - -
---- ---- ---- ----
Total Investments 1 30 - -
---- ---- ---- ----
OTHER ASSETS
Debt service reserve - - - -
Prepaid pension - - - -
Other 1 1 - 1
---- ---- ---- ----
Total Other Assets 1 1 - 1
---- ---- ---- ----
TOTAL ASSETS $ 60 $ 83 $614 $417
==== ==== ==== ====
</TABLE>
<PAGE> 55
ENTERPRISE DIVERSIFIED HOLDINGS INCORPORATED
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
(MILLIONS OF DOLLARS)
<TABLE>
<CAPTION>
INTERCOMPANY
EDHI ELIMINATIONS
CONSOL. & RECLASS. EDHI CEA PSRC
------- ------------ ----- ------- -------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ 22 $ - $ - $ 6 $ -
Taxes 6 - 4 1 1
Other 30 (2) 13 7 3
Interest 14 - - 5 2
Associated companies 26 (13) - 12 26
Notes payable:
PSEG Capital Corporation - (605) - 257 348
Enterprise Capital Funding Corp. - (409) 3 173 233
Enterprise Group Development Corp. - (3) - - -
Energis Resources Inc. - (18) - - -
Other 267 - - - -
Preferred stock dividends payable 1 - 1 - -
Current portion of long-term debt 222 1 - 26 -
------- ------- ----- ------ ------
Total Current Liabilities 588 (1,049) 21 487 613
------- ------- ----- ------ ------
TOTAL LONG-TERM DEBT 747 - - 206 -
------- ------- ----- ------ ------
DEFERRED CREDITS
Deferred income taxes 824 (2) (6) 66 766
Deferred investment and energy tax credits 10 - - 10 -
Deferred revenues 3 - - 3 -
Long-term liabilities 5 - 1 4 -
------- ------- ----- ------ ------
Total Deferred Taxes and Other Liabilities 842 (2) (5) 83 766
------- ------- ----- ------ ------
MINORITY INTERESTS 5 - - 3 -
------- ------- ----- ------ ------
STOCKHOLDER'S EQUITY
Capital stock - (170) - 63 107
Preferred stock 75 - 75 - -
Contributed capital 519 (512) 519 279 -
Retained earnings 151 (76) 151 64 130
Foreign currency translation adjustments (15) - - (15) -
------- ------- ----- ------ ------
Total Stockholder's Equity 730 (758) 745 391 237
------- ------- ----- ------ ------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 2,912 $(1,809) $ 761 $1,170 $1,616
======= ======= ===== ====== ======
</TABLE>
<PAGE> 56
ENTERPRISE DIVERSIFIED HOLDINGS INCORPORATED
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
(MILLIONS OF DOLLARS)
<TABLE>
<CAPTION>
PSEG
ENERGIS EGDC CAPITAL ECFC
------- ---- ------- ----
<S> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ 16 $ - $ - $ -
Taxes - - - -
Other 9 - - -
Interest - - 3 4
Associated companies - 1 - -
Notes payable:
PSEG Capital Corporation - - - -
Enterprise Capital Funding Corp. - - - -
Enterprise Group Development Corp. - - 3 -
Energis Resources Inc. - - - 18
Other - - - 267
Preferred stock dividends payable - - - -
Current portion of long-term debt - - 112 83
---- ----- ---- ----
Total Current Liabilities 25 1 118 372
---- ----- ---- ----
TOTAL LONG-TERM DEBT - - 496 45
---- ----- ---- ----
DEFERRED CREDITS
Deferred income taxes - - - -
Deferred investment and energy tax credits - - - -
Deferred revenues - - - -
Long-term liabilities - - - -
---- ----- ---- ----
Total Deferred Taxes and Other Liabilities - - - -
---- ----- ---- ----
MINORITY INTERESTS - 2 - -
---- ----- ---- ----
STOCKHOLDER'S EQUITY
Capital stock - - - -
Preferred stock - - - -
Contributed capital 61 172 - -
Retained earnings (26) (92) - -
Foreign currency translation adjustments - - - -
---- ----- ---- ----
Total Stockholder's Equity 35 80 - -
---- ----- ---- ----
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 60 $ 83 $614 $417
==== ===== ==== ====
</TABLE>
<PAGE> 57
PUBLIC SERVICE RESOURCES CORPORATION
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
PSRC ELIMINATIONS RCMC
CONSOL. & RECLASS. PSRC CONSOL. RCIC
--------- ------------ -------- ---------- -------
<S> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ 48,929 $ - $ 1,052 $ 21,105 $ -
Income from capital lease agreements 65,443 - 31,046 22,210 9,040
Unrealized gains (losses) on investments 33,610 - (380) - -
Realized gains (losses) on investments (7,874) - (85) - -
Interest and dividend income 4,226 - 3,106 - -
Other - - (27) 5 -
Equity in subsidiary earnings - (64,918) 64,918 - -
--------- -------- -------- -------- -------
Total revenues 144,334 (64,918) 99,630 43,320 9,040
--------- -------- -------- -------- -------
OPERATING EXPENSES:
Operation and maintenance - - - - -
Depreciation and amortization 1,327 - 201 217 -
Administrative and general 8,946 - 8,427 398 20
--------- -------- -------- -------- -------
Total operating expenses 10,273 - 8,628 615 20
--------- -------- -------- -------- -------
OPERATING INCOME 134,061 (64,918) 91,002 42,705 9,020
--------- -------- -------- -------- -------
INTEREST EXPENSE:
PSEG Capital Corporation 29,741 - 23,939 5,270 342
Enterprise Capital Funding Corp. 14,130 - 11,659 2,245 145
Other 2,050 - 1,452 310 (80)
Capitalized interest - - - - -
--------- -------- -------- -------- -------
Net interest expense 45,921 - 37,050 7,825 407
--------- -------- -------- -------- -------
INCOME BEFORE INCOME TAXES 88,140 (64,918) 53,952 34,880 8,613
--------- -------- -------- -------- -------
INCOME TAXES:
Current (98,905) - (37,766) (55,289) (6,149)
Deferred 128,507 - 32,876 68,106 8,794
Investment and energy tax credits - net (604) - (300) (272) (32)
--------- -------- -------- -------- -------
Total income taxes 28,998 - (5,190) 12,545 2,613
--------- -------- -------- -------- -------
MINORITY INTERESTS - - - - -
--------- -------- -------- -------- -------
INCOME FROM CONTINUING OPERATIONS 59,142 (64,918) 59,142 22,335 6,000
--------- -------- -------- -------- -------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - - -
--------- -------- -------- -------- -------
INCOME FROM DISCONTINUED OPERATIONS - - - - -
--------- -------- -------- -------- -------
NET INCOME $ 59,142 $(64,918) $ 59,142 $ 22,335 $ 6,000
========= ======== ======== ======== =======
</TABLE>
<PAGE> 58
PUBLIC SERVICE RESOURCES CORPORATION
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
PSRCSC PSRCSC PSRCSC PSRCSC
RCSC RCFC ONE TWO THREE FOUR
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ - $ - $ - $ - $ - $ -
Income from capital lease agreements - (136) - - - -
Unrealized gains (losses) on investments - - - - - -
Realized gains (losses) on investments - - - - - -
Interest and dividend income - - - - - -
Other 6 - 4 4 4 4
Equity in subsidiary earnings - - - - - -
------ ------ ------ ------ ------ ------
Total revenues 6 (136) 4 4 4 4
------ ------ ------ ------ ------ ------
OPERATING EXPENSES:
Operation and maintenance - - - - - -
Depreciation and amortization - - - - - -
Administrative and general 6 16 4 4 4 4
------ ------ ------ ------ ------ ------
Total operating expenses 6 16 4 4 4 4
------ ------ ------ ------ ------ ------
OPERATING INCOME - (152) - - - -
------ ------ ------ ------ ------ ------
INTEREST EXPENSE:
PSEG Capital Corporation - 190 - - - -
Enterprise Capital Funding Corp. - 81 - - - -
Other - - - - - -
Capitalized interest - - - - - -
------ ------ ------ ------ ------ ------
Net interest expense - 271 - - - -
------ ------ ------ ------ ------ ------
INCOME BEFORE INCOME TAXES - (423) - - - -
------ ------ ------ ------ ------ ------
INCOME TAXES:
Current - (2,608) - - - -
Deferred - 2,579 - - - -
Investment and energy tax credits - net - - - - - -
------ ------ ------ ------ ------ ------
Total income taxes - (29) - - - -
------ ------ ------ ------ ------ ------
MINORITY INTERESTS - - - - - -
------ ------ ------ ------ ------ ------
INCOME FROM CONTINUING OPERATIONS - (394) - - - -
------ ------ ------ ------ ------ ------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - - - -
------ ------ ------ ------ ------ ------
INCOME FROM DISCONTINUED OPERATIONS - - - - - -
------ ------ ------ ------ ------ ------
NET INCOME $ - $ (394) $ - $ - $ - $ -
====== ====== ====== ====== ====== ======
</TABLE>
<PAGE> 59
PUBLIC SERVICE RESOURCES CORPORATION
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
THE PSGMC PSRC
WATER SOURCE CONSOL. PSRC, INC. ENTECH I, INC.
------------ ------- ---------- ------- --------
<S> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ - $ - $ - $ - $ 26,772
Income from capital lease agreements - - 3,283 - -
Unrealized gains (losses) on investments - - - - 33,990
Realized gains (losses) on investments - - - - (7,789)
Interest and dividend income - - 2 - 1,118
Other - - - - -
Equity in subsidiary earnings - - - - -
---- ------- ------- ------- --------
Total revenues - - 3,285 - 54,091
---- ------- ------- ------- --------
OPERATING EXPENSES:
Operation and maintenance - - - - -
Depreciation and amortization - - 909 - -
Administrative and general - - 48 - 15
---- ------- ------- ------- --------
Total operating expenses - - 957 - 15
---- ------- ------- ------- --------
OPERATING INCOME - - 2,328 - 54,076
---- ------- ------- ------- --------
INTEREST EXPENSE:
PSEG Capital Corporation - - - - -
Enterprise Capital Funding Corp. - - - - -
Other - - - - 368
Capitalized interest - - - - -
---- ------- ------- ------- --------
Net interest expense - - - - 368
---- ------- ------- ------- --------
INCOME BEFORE INCOME TAXES - - 2,328 - 53,708
---- ------- ------- ------- --------
INCOME TAXES:
Current (71) - (3,668) (1) 6,647
Deferred 71 - 4,549 1 11,531
Investment and energy tax credits - net - - - - -
---- ------- ------- ------- --------
Total income taxes - - 881 - 18,178
---- ------- ------- ------- --------
MINORITY INTERESTS - - - - -
---- ------- ------- ------- --------
INCOME FROM CONTINUING OPERATIONS - - 1,447 - 35,530
---- ------- ------- ------- --------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - - -
---- ------- ------- ------- --------
INCOME FROM DISCONTINUED OPERATIONS - - - - -
---- ------- ------- ------- --------
NET INCOME $ - $ - $ 1,447 $ - $ 35,530
==== ======= ======= ======= ========
</TABLE>
<PAGE> 60
PUBLIC SERVICE RESOURCES CORPORATION
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
PSRC ELIMINATIONS RCMC
CONSOL. & RECLASS. PSRC CONSOL. RCIC RCSC
-------- ------------ -------- ------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $203,744 $ (73,126) $203,744 $25,219 $3,186 $ (39)
NET INCOME 59,142 (64,918) 59,142 22,335 6,000 -
-------- --------- -------- ------- ------ ------
TOTAL 262,886 (138,044) 262,886 47,554 9,186 (39)
-------- --------- -------- ------- ------ ------
DIVIDENDS DECLARED 133,245 - 133,245 - - -
-------- --------- -------- ------- ------ ------
BALANCE DECEMBER 31, 1997 $129,641 $(138,044) $129,641 $47,554 $9,186 $ (39)
======== ========= ======== ======= ====== ======
</TABLE>
<PAGE> 61
PUBLIC SERVICE RESOURCES CORPORATION
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
PSRCSC PSRCSC PSRCSC PSRCSC
RCFC ONE TWO THREE FOUR
------- --- --- --- ---
<S> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $(1,958) $(3) $(3) $ - $ -
NET INCOME (394) - - - -
------- --- --- --- ---
TOTAL (2,352) (3) (3) - -
------- --- --- --- ---
DIVIDENDS DECLARED - - - - -
------- --- --- --- ---
BALANCE DECEMBER 31, 1997 $(2,352) $(3) $(3) $ - $ -
======= === === === ===
</TABLE>
<PAGE> 62
PUBLIC SERVICE RESOURCES CORPORATION
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
THE PSGMC PSRC
WATER SOURCE CONSOL. PSRC, INC. ENTECH I, INC.
------- ------ ------- -------- -------
<S> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $(1,055) $ - $ 613 $ (974) $ 48,140
NET INCOME - - 1,447 - 35,530
------- ------ ------- -------- -------
TOTAL (1,055) - 2,060 (974) 83,670
------- ------ ------- -------- -------
DIVIDENDS DECLARED - - - - -
------- ------ ------- -------- -------
BALANCE DECEMBER 31, 1997 $(1,055) $ - $ 2,060 $ (974) $83,670
======= ====== ======= ======== =======
</TABLE>
<PAGE> 63
PUBLIC SERVICE RESOURCES CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
PSRC ELIMINATIONS RCMC
CONSOL. & RECLASS. PSRC CONSOL. RCIC
----------- --------- ----------- -------- --------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ 3,263 $ - $ 3,205 $ 20 $ -
Accounts and Notes receivable:
Trade - - - - -
Other 20,252 - 170 3,071 -
PSE&G - - - - -
PSEG - - - - -
Other associated companies 11 (249,138) 109,918 66,582 -
Notes receivable:
Associated companies - - - - -
Other 87 - 87 - -
Interest receivable 802 - 1 - -
Prepayments 161 - 5 74 -
----------- --------- ----------- -------- --------
Total Current Assets 24,576 (249,138) 113,386 69,747 -
----------- --------- ----------- -------- --------
PROPERTY, PLANT AND EQUIPMENT
Real estate 17,170 - 2,728 - -
Other 390 - 283 - -
Accum. depr. and amortization (7,070) - (1,062) - -
Valuation allowances - - - - -
----------- --------- ----------- -------- --------
Property, Plant and Equipment-net 10,490 - 1,949 - -
----------- --------- ----------- -------- --------
INVESTMENTS
Subsidiaries - (576,463) 564,693 11,770 -
Capital lease agreements 1,151,326 - 477,249 480,992 126,253
Partnership interests 407,166 - 2,788 39,177 -
Corporate joint ventures - - - - -
Securities 26,508 - 14,508 - -
Valuation allowances (4,000) - (4,000) - -
----------- --------- ----------- -------- --------
Total Investments 1,581,000 (576,463) 1,055,238 531,939 126,253
----------- --------- ----------- -------- --------
OTHER ASSETS
Special funds-pension 56 - 56 - -
----------- --------- ----------- -------- --------
Total Other Assets 56 - 56 - -
----------- --------- ----------- -------- --------
TOTAL ASSETS $ 1,616,122 $(825,601) $ 1,170,629 $601,686 $126,253
=========== ========= =========== ======== ========
</TABLE>
<PAGE> 64
PUBLIC SERVICE RESOURCES CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
PSRCSC PSRCSC PSRCSC PSRCSC
RCSC RCFC ONE TWO THREE FOUR
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ 9 $ - $ 5 $ 5 $ 5 $ 5
Accounts and Notes receivable:
Trade - - - - - -
Other - - - - - -
PSE&G - - - - - -
PSEG - - - - - -
Other associated companies - 7,531 2 2 5 5
Notes receivable:
Associated companies - - - - - -
Other - - - - - -
Interest receivable - - - - - -
Prepayments - - - - - -
------ ------ ------ ------ ------ ------
Total Current Assets 9 7,531 7 7 10 10
------ ------ ------ ------ ------ ------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - - - -
Other - - - - - -
Accum. depr. and amortization - - - - - -
Valuation allowances - - - - - -
------ ------ ------ ------ ------ ------
Property, Plant and Equipment-net - - - - - -
------ ------ ------ ------ ------ ------
INVESTMENTS
Subsidiaries - - - - - -
Capital lease agreements - 30,028 - - - -
Partnership interests - - - - - -
Corporate joint ventures - - - - - -
Securities - - - - - -
Valuation allowances - - - - - -
------ ------ ------ ------ ------ ------
Total Investments - 30,028 - - - -
------ ------ ------ ------ ------ ------
OTHER ASSETS
Special funds-pension - - - - - -
------ ------ ------ ------ ------ ------
Total Other Assets - - - - - -
------ ------ ------ ------ ------ ------
TOTAL ASSETS $ 9 $37,559 $ 7 $ 7 $ 10 $ 10
====== ====== ====== ====== ====== ======
</TABLE>
<PAGE> 65
PUBLIC SERVICE RESOURCES CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
THE PSGMC PSRC
WATER SOURCE CONSOL. PSRC, INC. ENTECH I, INC.
------------ ------- ---------- ------- --------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ - $ - $ 4 $ - $ 5
Accounts and Notes receivable:
Trade - - - - -
Other - - - - 17,011
PSE&G - - - - -
PSEG - - - - -
Other associated companies 30 - - 46 65,028
Notes receivable:
Associated companies - - - - -
Other - - - - -
Interest receivable - - - - 801
Prepayments - - - - 82
--- --- -------- ------- --------
Total Current Assets 30 - 4 46 82,927
--- --- -------- ------- --------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - 14,442 - -
Other - - 107 - -
Accum. depr. and amortization - - (6,008) - -
Valuation allowances - - - - -
--- --- -------- ------- --------
Property, Plant and Equipment-net - - 8,541 - -
--- --- -------- ------- --------
INVESTMENTS
Subsidiaries - - - - -
Capital lease agreements - - 36,804 - -
Partnership interests - - - - 365,201
Corporate joint ventures - - - - -
Securities - - - - 12,000
Valuation allowances - - - - -
--- --- -------- ------- --------
Total Investments - - 36,804 - 377,201
--- --- -------- ------- --------
OTHER ASSETS
Special funds-pension - - - - -
--- --- -------- ------- --------
Total Other Assets - - - - -
--- --- -------- ------- --------
TOTAL ASSETS $30 $ - $ 45,349 $ 46 $460,128
=== === ======== ======= ========
</TABLE>
<PAGE> 66
PUBLIC SERVICE RESOURCES CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
PSRC ELIMINATIONS RCMC
CONSOL. & RECLASS. PSRC CONSOL. RCIC
----------- --------- ----------- -------- --------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ - $ - $ - $ - $ -
Taxes 667 - 220 414 -
Other 2,926 - 1,740 8 1,170
Interest 2,025 - - 310 -
Associated companies 25,867 (249,140) 164,059 35,240 57,122
Notes payable:
PSEG Capital Corporation 347,836 - 293,584 49,132 3,290
Enterprise Capital Funding Corp. 233,545 - 197,111 32,996 2,209
Enterprise Group Development Corp. - - - - -
Enterprise Diversified Holdings Inc. - - - - -
U.S.Energy Incorporated - - - - -
Current portion of long-term debt - - - - -
----------- --------- ----------- -------- --------
Total Current Liabilities 612,866 (249,140) 656,714 118,100 63,791
----------- --------- ----------- -------- --------
TOTAL LONG-TERM DEBT - - - - -
----------- --------- ----------- -------- --------
DEFERRED CREDITS
Deferred income taxes 766,142 - 276,966 370,302 47,446
Deferred investment
and energy tax credits 165 - - - 165
Other 307 - 307 - -
----------- --------- ----------- -------- --------
Total Deferred Credits 766,614 - 277,273 370,302 47,611
----------- --------- ----------- -------- --------
STOCKHOLDER'S EQUITY
Capital stock 107,001 (67) 107,001 2 1
Contributed capital - (438,352) - 65,728 5,663
Retained earnings 129,641 (138,042) 129,641 47,554 9,187
----------- --------- ----------- -------- --------
Total Stockholder's Equity 236,642 (576,461) 236,642 113,284 14,851
----------- --------- ----------- -------- --------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 1,616,122 $(825,601) $ 1,170,629 $601,686 $126,253
=========== ========= =========== ======== ========
</TABLE>
<PAGE> 67
PUBLIC SERVICE RESOURCES CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
PSRCSC PSRCSC PSRCSC PSRCSC
RCSC RCFC ONE TWO THREE FOUR
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ - $ - $ - $ - $ - $ -
Taxes - 33 - - - -
Other - - - - - -
Interest - - - - - -
Associated companies 38 34 - - - -
Notes payable:
PSEG Capital Corporation - 1,830 - - - -
Enterprise Capital Funding Corp. - 1,229 - - - -
Enterprise Group Development Corp. - - - - - -
Enterprise Diversified Holdings Inc. - - - - - -
U.S.Energy Incorporated - - - - - -
Current portion of long-term debt - - - - - -
---- -------- ---- ---- --- ---
Total Current Liabilities 38 3,126 - - - -
---- -------- ---- ---- --- ---
TOTAL LONG-TERM DEBT - - - - - -
---- -------- ---- ---- --- ---
DEFERRED CREDITS
Deferred income taxes - 32,973 - - - -
Deferred investment
and energy tax credits - - - - - -
Other - - - - - -
---- -------- ---- ---- --- ---
Total Deferred Credits - 32,973 - - - -
---- -------- ---- ---- --- ---
STOCKHOLDER'S EQUITY
Capital stock 10 1 10 10 10 10
Contributed capital - 3,812 - - - -
Retained earnings (39) (2,353) (3) (3) - -
---- -------- ---- ---- --- ---
Total Stockholder's Equity (29) 1,460 7 7 10 10
---- -------- ---- ---- --- ---
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 9 $ 37,559 $ 7 $ 7 $10 $10
==== ======== ==== ==== === ===
</TABLE>
<PAGE> 68
PUBLIC SERVICE RESOURCES CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
THE PSGMC PSRC
WATER SOURCE CONSOL. PSRC, INC. ENTECH I, INC.
------------ ------- ---------- ------- --------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ - $ - $ - $ - $ -
Taxes - - - - -
Other - - 8 - -
Interest - - - - 1,715
Associated companies - - 18,514 - -
Notes payable:
PSEG Capital Corporation - - - - -
Enterprise Capital Funding Corp. - - - - -
Enterprise Group Development Corp. - - - - -
Enterprise Diversified Holdings Inc. - - - - -
U.S.Energy Incorporated - - - - -
Current portion of long-term debt - - - - -
------- ------- ------- --------- --------
Total Current Liabilities - - 18,522 - 1,715
------- ------- ------- --------- --------
TOTAL LONG-TERM DEBT - - - - -
------- ------- ------- --------- --------
DEFERRED CREDITS
Deferred income taxes 58 - 10,233 2 28,162
Deferred investment
and energy tax credits - - - - -
Other - - - - -
------- ------- ------- --------- --------
Total Deferred Credits 58 - 10,233 2 28,162
------- ------- ------- --------- --------
STOCKHOLDER'S EQUITY
Capital stock 10 - 1 1 1
Contributed capital 1,017 - 14,534 1,018 346,580
Retained earnings (1,055) - 2,059 (975) 83,670
------- ------- ------- --------- --------
Total Stockholder's Equity (28) - 16,594 44 430,251
------- ------- ------- --------- --------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 30 $ - $45,349 $ 46 $460,128
======= ======= ======= ========= ========
</TABLE>
<PAGE> 69
RESOURCES CAPITAL MANAGEMENT CORPORATION
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
RCMC ELIMINATIONS
CONSOL. & RECLASS. RCMC RCMCSC RCMC, INC. RCMC I, INC.
-------- ------------ ------- ------ ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ 21,105 $ - $ 10,412 $ - $10,693 $ -
Income from capital lease agreements 22,210 - 16,522 - 419 5,269
Unrealized gains (losses) on investments - - - - - -
Realized gains (losses) on investments - - - - - -
Interest and dividend income - - - - - -
Other 5 - - 5 - -
Equity in subsidiary earnings - (8,063) 8,063 - - -
-------- ------- -------- ---- ------- --------
Total revenues 43,320 (8,063) 34,997 5 11,112 5,269
-------- ------- -------- ---- ------- --------
OPERATING EXPENSES:
Operation and maintenance - - - - - -
Depreciation and amortization 217 - 217 - - -
Administrative and general 398 - 144 5 42 207
-------- ------- -------- ---- ------- --------
Total operating expenses 615 - 361 5 42 207
-------- ------- -------- ---- ------- --------
OPERATING INCOME 42,705 (8,063) 34,636 - 11,070 5,062
-------- ------- -------- ---- ------- --------
INTEREST EXPENSE:
PSEG Capital Corporation 5,270 - 3,080 - - 2,190
Enterprise Capital Funding Corp. 2,245 - 1,312 - - 933
Other 310 - - - 310 -
Capitalized interest - - - - - -
-------- ------- -------- ---- ------- --------
Net interest expense 7,825 - 4,392 - 310 3,123
-------- ------- -------- ---- ------- --------
INCOME BEFORE INCOME TAXES 34,880 (8,063) 30,244 - 10,760 1,939
-------- ------- -------- ---- ------- --------
INCOME TAXES:
Current (55,289) - (48,336) - 3,755 (10,708)
Deferred 68,106 - 56,517 - 18 11,571
Investment and energy tax credits - net (272) - (272) - - -
-------- ------- -------- ---- ------- --------
Total income taxes 12,545 - 7,909 - 3,773 863
-------- ------- -------- ---- ------- --------
MINORITY INTERESTS - - - - - -
-------- ------- -------- ---- ------- --------
INCOME FROM CONTINUING OPERATIONS 22,335 (8,063) 22,335 - 6,987 1,076
-------- ------- -------- ---- ------- --------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - - - -
-------- ------- -------- ---- ------- --------
INCOME FROM DISCONTINUED OPERATIONS - - - - - -
-------- ------- -------- ---- ------- --------
NET INCOME $ 22,335 $(8,063) $ 22,335 $ - $ 6,987 $ 1,076
======== ======= ======== ==== ======= ========
</TABLE>
<PAGE> 70
RESOURCES CAPITAL MANAGEMENT CORPORATION
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
RCMC ELIMINATIONS
CONSOL. & RECLASS. RCMC RCMCSC RCMC, INC. RCMC I, INC.
-------- ------------ -------- -------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $ 25,219 $ (3,724) $ 25,219 $ (16) $ 2,524 $ 1,216
NET INCOME 22,335 (8,063) 22,335 - 6,987 1,076
-------- -------- -------- -------- ------- --------
TOTAL 47,554 (11,787) 47,554 (16) 9,511 2,292
-------- -------- -------- -------- ------- --------
DIVIDENDS DECLARED - - - - - -
-------- -------- -------- -------- ------- --------
BALANCE DECEMBER 31, 1997 $ 47,554 $(11,787) $ 47,554 $ (16) $ 9,511 $ 2,292
======== ======== ======== ======== ======= ========
</TABLE>
<PAGE> 71
RESOURCES CAPITAL MANAGEMENT CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
RCMC ELIMINATIONS
CONSOL. & RECLASS. RCMC RCMCSC RCMC, INC. RCMC I, INC.
-------- ------------ -------- -------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ 20 $ - $ - $ 10 $ 5 $ 5
Accounts and Notes receivable:
Trade - - - - - -
Other 3,071 - - - 3,071 -
PSE&G - - - - - -
PSEG - - - - - -
Other associated companies 66,582 - 52,256 - 14,326 -
Notes receivable:
Associated companies - - - - - -
Prepayments 74 - 14 - - 60
-------- -------- -------- -------- ------- --------
Total Current Assets 69,747 - 52,270 10 17,402 65
-------- -------- -------- -------- ------- --------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - - - -
Other - - - - - -
Accum. depr. and amortization - - - - - -
Valuation allowances - - - - - -
-------- -------- -------- -------- ------- --------
Property, Plant and Equipment-net - - - - - -
-------- -------- -------- -------- ------- --------
INVESTMENTS
Subsidiaries 11,770 (26,206) 37,976 - - -
Capital lease agreements 480,992 - 281,345 - 32,229 167,418
Partnership interests 39,177 - - - 39,177 -
Corporate joint ventures - - - - - -
Securities - - - - - -
Valuation allowances - - - - - -
-------- -------- -------- -------- ------- --------
Total Investments 531,939 (26,206) 319,321 - 71,406 167,418
-------- -------- -------- -------- ------- --------
OTHER ASSETS
Other - - - - - -
-------- -------- -------- -------- ------- --------
Total Other Assets - - - - - -
-------- -------- -------- -------- ------- --------
TOTAL ASSETS $601,686 $(26,206) $371,591 $ 10 $88,808 $167,483
======== ======== ======== ======== ======= ========
</TABLE>
<PAGE> 72
RESOURCES CAPITAL MANAGEMENT CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
RCMC ELIMINATIONS
CONSOL. & RECLASS. RCMC RCMCSC RCMC, INC. RCMC I, INC.
-------- ------------ -------- -------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ - $ - $ - $ - $ - $ -
Taxes 414 - - - - 414
Other 8 - 8 - - -
Interest 310 - - - 310 -
Associated companies 35,240 - 553 15 - 34,672
Notes payable:
PSEG Capital Corporation 49,132 - 28,049 - - 21,083
Enterprise Capital Funding Corp. 32,996 - 18,841 - - 14,155
Enterprise Group Development Corp. - - - - - -
Enterprise Diversified Holdings Inc. - - - - - -
U.S.Energy Incorporated - - - - - -
Current portion of long-term debt - - - - - -
-------- -------- -------- -------- ------- --------
Total Current Liabilities 118,100 - 47,451 15 310 70,324
-------- -------- -------- -------- ------- --------
TOTAL LONG-TERM DEBT - - - - - -
-------- -------- -------- -------- ------- --------
DEFERRED CREDITS
Deferred income taxes 370,302 - 222,625 - 38,196 109,481
Deferred investment
and energy tax credits - - - - - -
Other - - - - - -
-------- -------- -------- -------- ------- --------
Total Deferred Credits 370,302 - 222,625 - 38,196 109,481
-------- -------- -------- -------- ------- --------
STOCKHOLDER'S EQUITY
Capital stock 2 (3) 2 1 1 1
Contributed capital 65,728 (14,416) 53,959 10 40,790 (14,615)
Retained earnings 47,554 (11,787) 47,554 (16) 9,511 2,292
-------- -------- -------- -------- ------- --------
Total Stockholder's Equity 113,284 (26,206) 101,515 (5) 50,302 (12,322)
-------- -------- -------- -------- ------- --------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $601,686 $(26,206) $371,591 $ 10 $88,808 $167,483
======== ======== ======== ======== ======= ========
</TABLE>
<PAGE> 73
COMMUNITY ENERGY ALTERNATIVES INCORPORATED (CEA)
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
CEA ELIMINATIONS CEA USA CEA NJ
CONSOL. & RECLASS. CEA CONSOL. CONSOL.
----------- --------- --------- ----------- --------
<S> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ 78,814 $ - $ 1,698 $ 53,792 $ 23,324
Income from capital lease agreements - - - - -
Unrealized gains (losses) on investments - - - - -
Realized gains (losses) on investments - - - - -
Interest and dividend income - - - - -
Other 12,072 (405) 434 9,415 2,628
Equity in subsidiary earnings - (14,881) 14,881 - -
----------- --------- --------- ----------- --------
Total revenues 90,886 (15,286) 17,013 63,207 25,952
----------- --------- --------- ----------- --------
OPERATING EXPENSES:
Operation and maintenance 6,721 6,491 - 230 -
Depreciation and amortization 1,597 - 1,057 536 4
Administrative and general 37,533 (6,896) (983) 38,597 6,815
----------- --------- --------- ----------- --------
Total operating expenses 45,851 (405) 74 39,363 6,819
----------- --------- --------- ----------- --------
OPERATING INCOME 45,035 (14,881) 16,939 23,844 19,133
----------- --------- --------- ----------- --------
OTHER INCOME
Foreign currency Translation Gain/Loss 685 - - 685 -
----------- --------- --------- ----------- --------
Total Other Income 685 - - 685 -
----------- --------- --------- ----------- --------
INTEREST EXPENSE:
PSEG Capital Corporation 10,950 - 9,261 1,262 427
Enterprise Capital Funding Corp. 7,567 - 6,711 641 215
Other Associated Companies 113 - (10,543) 10,656 -
Other 8,362 - 240 8,093 29
Capitalized interest (5,066) - (1,882) (3,184) -
----------- --------- --------- ----------- --------
Net interest expense 21,926 - 3,787 17,468 671
----------- --------- --------- ----------- --------
INCOME BEFORE INCOME TAXES 23,794 (14,881) 13,152 7,061 18,462
----------- --------- --------- ----------- --------
INCOME TAXES:
Current 4,059 - (8,400) 6,027 6,432
Deferred 6,701 - 7,844 (2,260) 1,117
Investment and energy tax credits - net (484) - (25) (438) (21)
----------- --------- --------- ----------- --------
Total income taxes 10,276 - (581) 3,329 7,528
----------- --------- --------- ----------- --------
MINORITY INTERESTS (215) - - (215) -
----------- --------- --------- ----------- --------
INCOME FROM CONTINUING OPERATIONS 13,733 (14,881) 13,733 3,947 10,934
----------- --------- --------- ----------- --------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - - -
----------- --------- --------- ----------- --------
INCOME FROM DISCONTINUED OPERATIONS - - - - -
----------- --------- --------- ----------- --------
NET INCOME $ 13,733 $ (14,881) $ 13,733 $ 3,947 $ 10,934
=========== ========= ========= =========== ========
</TABLE>
<PAGE> 74
COMMUNITY ENERGY ALTERNATIVES INCORPORATED (CEA)
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
CEA ELIMINATIONS CEA USA CEA NJ
CONSOL. & RECLASS. CEA CONSOL. CONSOL.
----------- --------- --------- ----------- --------
<S> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $ 50,040 $ (9,677) $ 50,040 $ 4,373 $ 5,304
NET INCOME 13,733 $ (14,881) 13,733 3,947 10,934
----------- --------- --------- ----------- --------
TOTAL 63,773 (24,558) 63,773 8,320 16,238
----------- --------- --------- ----------- --------
DIVIDENDS DECLARED - - - - -
----------- --------- --------- ----------- --------
----------- --------- --------- ----------- --------
BALANCE DECEMBER 31, 1997 $ 63,773 $ (24,558) $ 63,773 $ 8,320 $ 16,238
=========== ========= ========= =========== ========
</TABLE>
<PAGE> 75
COMMUNITY ENERGY ALTERNATIVES INCORPORATED (CEA)
CONSOLIDATING BALANCE SHEET
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
CEA ELIMINATIONS CEA USA CEA NJ
CONSOL. & RECLASS. CEA CONSOL. CONSOL.
----------- --------- --------- ----------- --------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ 2,236 $ - $ - $ 2,236 $ -
Accounts and Notes receivable:
Trade 12,318 2 810 10,942 564
Other 1,153 (1) 173 981 -
PSE&G - - - - -
PSEG - - - - -
Other associated companies - (403,800) 356,485 29,770 17,545
Notes receivable:
Associated companies - - - - -
Other - - - - -
Interest receivable 17 (1) - 18 -
Prepayments 507 - 77 419 11
----------- --------- --------- ----------- --------
Total Current Assets 16,231 (403,800) 357,545 44,366 18,120
----------- --------- --------- ----------- --------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - - -
Other 5,993 (1) 2,977 2,999 18
Accum. depr. and amortization (2,957) (1) (2,010) (942) (4)
Valuation allowances - - - - -
----------- --------- --------- ----------- --------
Property, Plant and Equipment-net 3,036 (2) 967 2,057 14
----------- --------- --------- ----------- --------
INVESTMENTS
Subsidiaries - (487,410) 487,410 - -
Capital lease agreements - - - - -
Partnership interests 239,645 - 4,673 198,931 36,041
Corporate joint ventures 884,898 (1) 3,480 881,419 -
Securities - - - - -
Valuation allowances - - - - -
----------- --------- --------- ----------- --------
Total Investments 1,124,543 (487,411) 495,563 1,080,350 36,041
----------- --------- --------- ----------- --------
OTHER ASSETS
Other 26,138 1 10,397 15,650 90
----------- --------- --------- ----------- --------
Total Other Assets 26,138 1 10,397 15,650 90
----------- --------- --------- ----------- --------
TOTAL ASSETS $ 1,169,948 $(891,212) $ 864,472 $ 1,142,423 $ 54,265
=========== ========= ========= =========== ========
</TABLE>
<PAGE> 76
COMMUNITY ENERGY ALTERNATIVES INCORPORATED (CEA)
CONSOLIDATING BALANCE SHEET
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
CEA ELIMINATIONS CEA USA CEA NJ
CONSOL. & RECLASS. CEA CONSOL. CONSOL.
----------- --------- --------- ----------- --------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ 5,809 $ - $ 1,341 $ 4,388 $ 80
Taxes 1,288 - 10 330 948
Other 7,293 - 3,325 3,878 90
Interest 4,636 - - 4,636 -
Associated companies 11,778 (413,793) 62,515 361,445 1,611
Notes payable:
PSEG Capital Corporation 257,512 - 238,267 14,693 4,552
Enterprise Capital Funding Corp. 172,898 - 159,977 9,865 3,056
Enterprise Group Development Corp. - - - - -
Enterprise Diversified Holdings Inc. - - - - -
U.S.Energy Incorporated - - - - -
Current portion of long-term debt 26,431 - - 26,431 -
----------- --------- --------- ----------- --------
Total Current Liabilities 487,645 (413,793) 465,435 425,666 10,337
----------- --------- --------- ----------- --------
TOTAL LONG-TERM DEBT 205,498 9,990 - 195,508 -
----------- --------- --------- ----------- --------
DEFERRED CREDITS
Deferred income taxes 66,118 1 6,386 47,332 12,399
Deferred investment
and energy tax credits 9,500 - 690 8,583 227
Other 6,829 - 727 4,544 1,558
----------- --------- --------- ----------- --------
Total Deferred Credits 82,447 1 7,803 60,459 14,184
----------- --------- --------- ----------- --------
MINORITY INTEREST 3,124 - - 3,124 -
----------- --------- --------- ----------- --------
STOCKHOLDER'S EQUITY
Capital stock 62,880 (20) 62,880 10 10
Contributed capital 279,100 (477,351) 279,100 463,855 13,496
Retained earnings 63,773 (24,558) 63,773 8,320 16,238
Cumulative Translation Adjustment (14,519) 14,519 (14,519) (14,519) -
----------- --------- --------- ----------- --------
Total Stockholder's Equity 391,234 (487,410) 391,234 457,666 29,744
----------- --------- --------- ----------- --------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 1,169,948 $(891,212) $ 864,472 $ 1,142,423 $ 54,265
=========== ========= ========= =========== ========
</TABLE>
<PAGE> 77
CEA USA
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
CEA USA ELIMINATIONS CEA CEA CEA
CONSOL. & RECLASS. USA Conemaugh Tracy
----------- --------- --------- ----------- --------
<S> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ 53,792 $ - $ 21,554 $ - $ -
Income from capital lease agreements - - - - -
Unrealized gains (losses) on investments - - - - -
Realized gains (losses) on investments - - - - -
Interest and dividend income - - - - -
Other 9,415 - - - 325
Equity in subsidiary earnings - 1,898 (1,898) - -
----------- --------- --------- ----------- --------
Total revenues 63,207 1,898 19,656 - 325
----------- --------- --------- ----------- --------
OPERATING EXPENSES:
Operation and maintenance 230 - - - -
Depreciation and amortization 536 - 35 - -
Administrative and general 38,597 - 4,744 - 735
----------- --------- --------- ----------- --------
Total operating expenses 39,363 - 4,779 - 735
----------- --------- --------- ----------- --------
OPERATING INCOME 23,844 1,898 14,877 - (410)
----------- --------- --------- ----------- --------
OTHER INCOME
Foreign currency Translation Gain/Loss 685 - - - -
----------- --------- --------- ----------- --------
Total Other Income 685 - - - -
----------- --------- --------- ----------- --------
INTEREST EXPENSE:
PSEG Capital Corporation 1,262 - - - -
Enterprise Capital Funding Corp. 641 - - - -
Other Associated Companies 10,656 - 10,887 - -
Other 8,093 - - - -
Capitalized interest (3,184) - (3,182) - -
----------- --------- --------- ----------- --------
Net interest expense 17,468 - 7,705 - -
----------- --------- --------- ----------- --------
INCOME BEFORE INCOME TAXES 7,061 1,898 7,172 - (410)
----------- --------- --------- ----------- --------
INCOME TAXES:
Current 6,027 - 4,213 (749) 207
Deferred (2,260) - (779) 749 (350)
Investment and energy tax credits - net (438) - (209) - -
----------- --------- --------- ----------- --------
Total income taxes 3,329 - 3,225 - (143)
----------- --------- --------- ----------- --------
MINORITY INTERESTS (215) - - - -
----------- --------- --------- ----------- --------
INCOME FROM CONTINUING OPERATIONS 3,947 1,898 3,947 - (267)
----------- --------- --------- ----------- --------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - - -
----------- --------- --------- ----------- --------
INCOME FROM DISCONTINUED OPERATIONS - - - - -
----------- --------- --------- ----------- --------
NET INCOME $ 3,947 $ 1,898 $ 3,947 $ - $ (267)
=========== ========= ========= =========== ========
</TABLE>
<PAGE> 78
CEA USA
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA CEA CEA
Project GWF CEA Deblois Mount
Services CONSOL. Leasing Investment Carmel
-------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ - $ 14,688 $ - $ - $ (769)
Income from capital lease agreements - - - - -
Unrealized gains (losses) on investments - - - - -
Realized gains (losses) on investments - - - - -
Interest and dividend income - - - - -
Other - - - - -
Equity in subsidiary earnings - - - - -
-------- -------- -------- ------- --------
Total revenues - 14,688 - - (769)
-------- -------- -------- ------- --------
OPERATING EXPENSES:
Operation and maintenance - - - - -
Depreciation and amortization - - - - -
Administrative and general 208 1,285 - - 51
-------- -------- -------- ------- --------
Total operating expenses 208 1,285 - - 51
-------- -------- -------- ------- --------
OPERATING INCOME (208) 13,403 - - (820)
-------- -------- -------- ------- --------
OTHER INCOME
Foreign currency Translation Gain/Loss - - - - -
-------- -------- -------- ------- --------
Total Other Income - - - - -
-------- -------- -------- ------- --------
INTEREST EXPENSE:
PSEG Capital Corporation - - - - -
Enterprise Capital Funding Corp. - - - - -
Other Associated Companies - - - - -
Other - - - - -
Capitalized interest - - - - -
-------- -------- -------- ------- --------
Net interest expense - - - - -
-------- -------- -------- ------- --------
INCOME BEFORE INCOME TAXES (208) 13,403 - - (820)
-------- -------- -------- ------- --------
INCOME TAXES:
Current (1,223) 5,283 1 - (996)
Deferred 1,150 300 (1) - 709
Investment and energy tax credits - net - (154) - - -
-------- -------- -------- ------- --------
Total income taxes (73) 5,429 - - (287)
-------- -------- -------- ------- --------
MINORITY INTERESTS - - - - -
-------- -------- -------- ------- --------
INCOME FROM CONTINUING OPERATIONS (135) 7,974 - - (533)
-------- -------- -------- ------- --------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - - -
-------- -------- -------- ------- --------
INCOME FROM DISCONTINUED OPERATIONS - - - - -
-------- -------- -------- ------- --------
NET INCOME $ (135) $ 7,974 $ - $ - $ (533)
======== ======== ======== ======= ========
</TABLE>
<PAGE> 79
CEA USA
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
Stony CEA CEA
CEA CEA Brook Stony Kennedy
Mexico Baja Operators Brook Operators
------- ------- --------- ------- ---------
<S> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ - $ - $ - $ 1,049 $ -
Income from capital lease agreements - - - - -
Unrealized gains (losses) on investments - - - - -
Realized gains (losses) on investments - - - - -
Interest and dividend income - - - - -
Other - - 3,011 - 3,127
Equity in subsidiary earnings - - - - -
------- ------- ------- ------- -------
Total revenues - - 3,011 1,049 3,127
------- ------- ------- ------- -------
OPERATING EXPENSES:
Operation and maintenance - - 121 - 109
Depreciation and amortization - - 28 - 13
Administrative and general - - 1,950 1,448 2,428
------- ------- ------- ------- -------
Total operating expenses - - 2,099 1,448 2,550
------- ------- ------- ------- -------
OPERATING INCOME - - 912 (399) 577
------- ------- ------- ------- -------
OTHER INCOME
Foreign currency Translation Gain/Loss - - - - -
------- ------- ------- ------- -------
Total Other Income - - - - -
------- ------- ------- ------- -------
INTEREST EXPENSE:
PSEG Capital Corporation - - - 114 -
Enterprise Capital Funding Corp. - - - 58 -
Other Associated Companies - - (6) - -
Other - - - - -
Capitalized interest - - - - -
------- ------- ------- ------- -------
Net interest expense - - (6) 172 -
------- ------- ------- ------- -------
INCOME BEFORE INCOME TAXES - - 918 (571) 577
------- ------- ------- ------- -------
INCOME TAXES:
Current 1 - 366 (332) 294
Deferred (1) - 10 132 (24)
Investment and energy tax credits - net - - - - -
------- ------- ------- ------- -------
Total income taxes - - 376 (200) 270
------- ------- ------- ------- -------
MINORITY INTERESTS - - - - -
------- ------- ------- ------- -------
INCOME FROM CONTINUING OPERATIONS - - 542 (371) 307
------- ------- ------- ------- -------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - - -
------- ------- ------- ------- -------
INCOME FROM DISCONTINUED OPERATIONS - - - - -
------- ------- ------- ------- -------
NET INCOME $ - $ - $ 542 $ (371) $ 307
======= ======= ======= ======= =======
</TABLE>
<PAGE> 80
CEA USA
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
CEA Asia CEA
CEA International Inc. India
KIAC CEMAS Services CONSOL. Inc.
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ (1,745) $ 3,324 $ - $ 1,205 $ -
Income from capital lease agreements - - - - -
Unrealized gains (losses) on investments - - - - -
Realized gains (losses) on investments - - - - -
Interest and dividend income - - - - -
Other - 353 - 1,205 -
Equity in subsidiary earnings - - - - -
-------- -------- -------- -------- -------
Total revenues (1,745) 3,677 - 2,410 -
-------- -------- -------- -------- -------
OPERATING EXPENSES:
Operation and maintenance - - - - -
Depreciation and amortization - - - 295 161
Administrative and general 4,320 432 2,316 9,798 277
-------- -------- -------- -------- -------
Total operating expenses 4,320 432 2,316 10,093 438
-------- -------- -------- -------- -------
OPERATING INCOME (6,065) 3,245 (2,316) (7,683) (438)
-------- -------- -------- -------- -------
OTHER INCOME
Foreign currency Translation Gain/Loss - - - - -
-------- -------- -------- -------- -------
Total Other Income - - - - -
-------- -------- -------- -------- -------
INTEREST EXPENSE:
PSEG Capital Corporation 1,148 - - - -
Enterprise Capital Funding Corp. 583 - - - -
Other Associated Companies - - - (225) -
Other 11 - - 13 -
Capitalized interest - - - - -
-------- -------- -------- -------- -------
Net interest expense 1,742 - - (212) -
-------- -------- -------- -------- -------
INCOME BEFORE INCOME TAXES (7,807) 3,245 (2,316) (7,471) (438)
-------- -------- -------- -------- -------
INCOME TAXES:
Current (1,666) 157 (737) (103) (188)
Deferred (1,066) 489 (81) (2,511) 35
Investment and energy tax credits - net - - - - -
-------- -------- -------- -------- -------
Total income taxes (2,732) 646 (818) (2,614) (153)
-------- -------- -------- -------- -------
MINORITY INTERESTS - - - - -
-------- -------- -------- -------- -------
INCOME FROM CONTINUING OPERATIONS (5,075) 2,599 (1,498) (4,857) (285)
-------- -------- -------- -------- -------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - - -
-------- -------- -------- -------- -------
INCOME FROM DISCONTINUED OPERATIONS - - - - -
-------- -------- -------- -------- -------
NET INCOME $ (5,075) $ 2,599 $ (1,498) $ (4,857) $ (285)
======== ======== ======== ======== =======
</TABLE>
<PAGE> 81
CEA USA
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
International CEA CEA CEA CEA
Inc. New Hawaiian Hawaiian Kalaeloa
CONSOL. Hampshire Mgt. Investment Inc.
------------- --------- --------- ----------- --------
<S> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ 9,462 $ 3,312 $ 36 $ 1,676 $ -
Income from capital lease agreements - - - - -
Unrealized gains (losses) on investments - - - - -
Realized gains (losses) on investments - - - - -
Interest and dividend income - - - - -
Other 1,262 132 - - -
Equity in subsidiary earnings - - - - -
----------- --------- --------- ----------- --------
Total revenues 10,724 3,444 36 1,676 -
----------- --------- --------- ----------- --------
OPERATING EXPENSES:
Operation and maintenance - - - - -
Depreciation and amortization 4 - - - -
Administrative and general 8,266 339 - - -
----------- --------- --------- ----------- --------
Total operating expenses 8,270 339 - - -
----------- --------- --------- ----------- --------
OPERATING INCOME 2,454 3,105 36 1,676 -
----------- --------- --------- ----------- --------
OTHER INCOME
Foreign currency Translation Gain/Loss 685 - - - -
----------- --------- --------- ----------- --------
Total Other Income 685 - - - -
----------- --------- --------- ----------- --------
INTEREST EXPENSE:
PSEG Capital Corporation - - - - -
Enterprise Capital Funding Corp. - - - - -
Other Associated Companies - - - - -
Other 8,069 - - - -
Capitalized interest (2) - - - -
----------- --------- --------- ----------- --------
Net interest expense 8,067 - - - -
----------- --------- --------- ----------- --------
INCOME BEFORE INCOME TAXES (4,928) 3,105 36 1,676 -
----------- --------- --------- ----------- --------
INCOME TAXES:
Current (343) 1,172 14 656 -
Deferred (962) (59) - - -
Investment and energy tax credits - net - (75) - - -
----------- --------- --------- ----------- --------
Total income taxes (1,305) 1,038 14 656 -
----------- --------- --------- ----------- --------
MINORITY INTERESTS (215) - - - -
----------- --------- --------- ----------- --------
INCOME FROM CONTINUING OPERATIONS (3,408) 2,067 22 1,020 -
----------- --------- --------- ----------- --------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - - -
----------- --------- --------- ----------- --------
INCOME FROM DISCONTINUED OPERATIONS - - - - -
----------- --------- --------- ----------- --------
NET INCOME $ (3,408) $ 2,067 $ 22 $ 1,020 $ -
=========== ========= ========= =========== ========
</TABLE>
<PAGE> 82
CEA USA
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
CEA USA ELIMINATIONS CEA CEA CEA
CONSOL. & RECLASS. USA Conemaugh Tracy
----------- --------- --------- ----------- --------
<S> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $ 4,373 16,952 $ 4,373 $ (80) $ (5,866)
NET INCOME 3,947 1,898 3,947 - (267)
----------- --------- --------- ----------- --------
TOTAL 8,320 18,850 8,320 (80) (6,133)
----------- --------- --------- ----------- --------
DIVIDENDS DECLARED - - - - --
----------- --------- --------- ----------- --------
----------- --------- --------- ----------- --------
BALANCE DECEMBER 31, 1997 $ 8,320 $ 18,850 $ 8,320 $ (80) $ (6,133)
=========== ========= ========= =========== ========
</TABLE>
<PAGE> 83
CEA USA
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA CEA CEA
Project GWF CEA Deblois Mount CEA CEA
Services CONSOL. Leasing Investment Carmel Mexico Baja
-------- -------- -------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $ (1,085) $ 6,080 $ (1,361) $(2,533) $ (1,859) $ (5) $ (885)
NET INCOME (135) 7,974 - - (533) - -
-------- -------- -------- ------- -------- ------- -------
TOTAL (1,220) 14,054 (1,361) (2,533) (2,392) (5) (885)
-------- -------- -------- ------- -------- ------- -------
DIVIDENDS DECLARED - - - - - - -
-------- -------- -------- ------- -------- ------- -------
-------- -------- -------- ------- -------- ------- -------
BALANCE DECEMBER 31, 1997 $ (1,220) $ 14,054 $ (1,361) $(2,533) $ (2,392) $ (5) $ (885)
======== ======== ======== ======= ======== ======= =======
</TABLE>
<PAGE> 84
CEA USA
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
Stony CEA CEA CEA
Brook Stony Kennedy CEA International
Operators Brook Operators KIAC CEMAS Services
--------- ------- --------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $ 616 $(1,667) $ 1,686 $(10,343) $ 2,291 $ (2,334)
NET INCOME 542 (371) 307 (5,075) 2,599 (1,498)
------- ------- ------- -------- -------- --------
TOTAL 1,158 (2,038) 1,993 (15,418) 4,890 (3,832)
------- ------- ------- -------- -------- --------
DIVIDENDS DECLARED - - - - -
------- ------- ------- -------- -------- --------
------- ------- ------- -------- -------- --------
BALANCE DECEMBER 31, 1997 $ 1,158 $(2,038) $ 1,993 $(15,418) $ 4,890 $ (3,832)
======= ======= ======= ======== ======== ========
</TABLE>
<PAGE> 85
CEA USA
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
Asia CEA International CEA CEA CEA
Inc. India Inc. New Hawaiian Hawaiian
CONSOL. Inc. CONSOL. Hampshire Mgt. Investment
-------- ------- ------------- --------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $ (5,517) $(1,578) $ 41 $ 7,447 $ - $ -
NET INCOME (4,857) (285) (3,408) 2,067 22 1,020
-------- ------- ----------- --------- --------- -----------
TOTAL (10,374) (1,863) (3,367) 9,514 22 1,020
-------- ------- ----------- --------- --------- -----------
DIVIDENDS DECLARED - - - - - -
-------- ------- ----------- --------- --------- -----------
-------- ------- ----------- --------- --------- -----------
BALANCE DECEMBER 31, 1997 $(10,374) $(1,863) $ (3,367) $ 9,514 $ 22 $ 1,020
======== ======= =========== ========= ========= ===========
</TABLE>
<PAGE> 86
CEA USA
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
Kalaeloa
Inc.
--------
<S> <C>
BALANCE JANUARY 1, 1997 $ -
NET INCOME -
--------
TOTAL -
--------
DIVIDENDS DECLARED -
--------
--------
BALANCE DECEMBER 31, 1997 $ -
========
</TABLE>
<PAGE> 87
CEA USA
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
CEA USA ELIMINATIONS CEA CEA
CONSOL. & RECLASS. USA Conemaugh
----------- --------- --------- -----------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ 2,236 $ - $ 78 $ -
Accounts and Notes receivable:
Trade 10,942 (9) 45 -
Other 981 - 4 -
PSE&G - - - -
PSEG - - - -
Other associated companies 29,770 (155,083) 105,916 4,260
Notes receivable:
Associated companies - (25,360) - -
Other - - - -
Interest receivable 18 - - -
Prepayments 419 - 233 (1)
----------- --------- --------- -----------
Total Current Assets 44,366 (180,452) 106,276 4,259
----------- --------- --------- -----------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - -
Other 2,999 - 597 -
Accum. depr. and amortization (942) - (35) -
Valuation allowances - - - -
----------- --------- --------- -----------
Property, Plant and Equipment-net 2,057 - 562 -
----------- --------- --------- -----------
INVESTMENTS
Subsidiaries - (520,592) 520,574 -
Capital lease agreements - - - -
Partnership interests 198,931 - 56,765 2
Corporate joint ventures 881,419 - 3,182 -
Securities - - - -
Valuation allowances - - - -
----------- --------- --------- -----------
Total Investments 1,080,350 (520,592) 580,521 2
----------- --------- --------- -----------
OTHER ASSETS
Other 15,650 - 197 -
----------- --------- --------- -----------
Total Other Assets 15,650 - 197 -
----------- --------- --------- -----------
TOTAL ASSETS $ 1,142,423 $(701,044) $ 687,556 $ 4,261
=========== ========= ========= ===========
</TABLE>
<PAGE> 88
CEA USA
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
CEA Project GWF CEA CEA
Tracy Services CONSOL. Leasing Deblois
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ - $ - $ - $ - $ -
Accounts and Notes receivable:
Trade 125 - - - -
Other - - - - -
PSE&G - - - - -
PSEG - - - - -
Other associated companies 3 - - 40,807 -
Notes receivable:
Associated companies - - - 25,360 -
Other - - - - -
Interest receivable - - - - -
Prepayments - 3 - - -
-------- -------- -------- -------- -------
Total Current Assets 128 3 - 66,167 -
-------- -------- -------- -------- -------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - - -
Other - - - - -
Accum. depr. and amortization - - - - -
Valuation allowances - - - - -
-------- -------- -------- -------- -------
Property, Plant and Equipment-net - - - - -
-------- -------- -------- -------- -------
INVESTMENTS
Subsidiaries - - - - -
Capital lease agreements - - - - -
Partnership interests - 7,580 42,350 (2,671) -
Corporate joint ventures - - - - -
Securities - - - - -
Valuation allowances - - - - -
-------- -------- -------- -------- -------
Total Investments - 7,580 42,350 (2,671) -
-------- -------- -------- -------- -------
OTHER ASSETS
Other - - - - -
-------- -------- -------- -------- -------
Total Other Assets - - - - -
-------- -------- -------- -------- -------
TOTAL ASSETS $ 128 $ 7,583 $ 42,350 $ 63,496 $ -
======== ======== ======== ======== =======
</TABLE>
<PAGE> 89
CEA USA
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
CEA Stony CEA
Mount CEA CEA Brook Stony
Carmel Mexico Baja Operators Brook
------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ - $ - $ - $ - $ -
Accounts and Notes receivable:
Trade - 1 1 874 1
Other - - - 8 -
PSE&G - - - - -
PSEG - - - - -
Other associated companies 1,220 10 2,647 339 -
Notes receivable:
Associated companies - - - - -
Other - - - - -
Interest receivable - - - - -
Prepayments - - - 55 -
------- ------- ------- ------- -------
Total Current Assets 1,220 11 2,648 1,276 1
------- ------- ------- ------- -------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - - -
Other - - - 35 -
Accum. depr. and amortization - - - (13) -
Valuation allowances - - - - -
------- ------- ------- ------- -------
Property, Plant and Equipment-net - - - 22 -
------- ------- ------- ------- -------
INVESTMENTS
Subsidiaries - - - - -
Capital lease agreements - - - - -
Partnership interests 198 - - - 11,164
Corporate joint ventures - - - - -
Securities - - - - -
Valuation allowances - - - - -
------- ------- ------- ------- -------
Total Investments 198 - - - 11,164
------- ------- ------- ------- -------
OTHER ASSETS
Other - - - 124 -
------- ------- ------- ------- -------
Total Other Assets - - - 124 -
------- ------- ------- ------- -------
TOTAL ASSETS $ 1,418 $ 11 $ 2,648 $ 1,422 $11,165
======= ======= ======= ======= =======
</TABLE>
<PAGE> 90
CEA USA
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
CEA CEA Asia
Kennedy CEA International Inc.
Operators KIAC CEMAS Services CONSOL.
--------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ - $ - $ - $ - $ 854
Accounts and Notes receivable:
Trade 690 4 44 180 5,640
Other 27 - - - 529
PSE&G - - - - -
PSEG - - - - -
Other associated companies 1,425 1,214 15,143 1,928 1,870
Notes receivable:
Associated companies - - - - -
Other - - - - -
Interest receivable - - - - -
Prepayments 60 - 24 11 3
------- -------- -------- -------- --------
Total Current Assets 2,202 1,218 15,211 2,119 8,896
------- -------- -------- -------- --------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - - -
Other 46 - - - 1,633
Accum. depr. and amortization (18) - - - (591)
Valuation allowances - - - - -
------- -------- -------- -------- --------
Property, Plant and Equipment-net 28 - - - 1,042
------- -------- -------- -------- --------
INVESTMENTS
Subsidiaries - - 18 - -
Capital lease agreements - - - - -
Partnership interests - 49,934 - - -
Corporate joint ventures - - 22,077 - -
Securities - - - - -
Valuation allowances - - - - -
------- -------- -------- -------- --------
Total Investments - 49,934 22,095 - -
------- -------- -------- -------- --------
OTHER ASSETS
Other 119 - - 885 425
------- -------- -------- -------- --------
Total Other Assets 119 - - 885 425
------- -------- -------- -------- --------
TOTAL ASSETS $ 2,349 $ 51,152 $ 37,306 $ 3,004 $ 10,363
======= ======== ======== ======== ========
</TABLE>
<PAGE> 91
CEA USA
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
CEA International CEA CEA CEA CEA
India Inc. New Hawaiian Hawaiian Kalaeloa
Inc. CONSOL. Hampshire Mgt. Investment Inc.
------- ------------- --------- --------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ 439 $ 865 $ - $ - $ - $ -
Accounts and Notes receivable:
Trade 1 3,343 - 1 - 1
Other 230 183 - - - -
PSE&G - - - - - -
PSEG - - - - - -
Other associated companies 2,717 138 4,678 40 498 -
Notes receivable:
Associated companies - - - - - -
Other - - - - - -
Interest receivable - 18 - - - -
Prepayments 23 8 - - - -
------- ----------- --------- --------- ----------- --------
Total Current Assets 3,410 4,555 4,678 41 498 1
------- ----------- --------- --------- ----------- --------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - - - -
Other 534 154 - - - -
Accum. depr. and amortization (280) (5) - - - -
Valuation allowances - - - - - -
------- ----------- --------- --------- ----------- --------
Property, Plant and Equipment-net 254 149 - - - -
------- ----------- --------- --------- ----------- --------
INVESTMENTS
Subsidiaries - - - - - -
Capital lease agreements - - - - - -
Partnership interests - - 6,584 521 26,504 -
Corporate joint ventures - 856,160 - - - -
Securities - - - - - -
Valuation allowances - - - - - -
------- ----------- --------- --------- ----------- --------
Total Investments - 856,160 6,584 521 26,504 -
------- ----------- --------- --------- ----------- --------
OTHER ASSETS
Other 221 13,679 - - - -
------- ----------- --------- --------- ----------- --------
Total Other Assets 221 13,679 - - - -
------- ----------- --------- --------- ----------- --------
TOTAL ASSETS $ 3,885 $ 874,543 $ 11,262 $ 562 $ 27,002 $ 1
======= =========== ========= ========= =========== ========
</TABLE>
<PAGE> 92
CEA USA
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
INTERCOMPANY
CEA USA ELIMINATIONS CEA CEA
CONSOL. & RECLASS. USA Conemaugh
----------- --------- --------- -----------
<S> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ 4,388 $ - $ 194 $ -
Taxes 330 - (410) (4)
Other 3,878 - 1,014 -
Interest 4,636 - - -
Associated companies 361,445 (155,083) 180,396 -
Notes payable:
PSEG Capital Corporation 14,693 - - -
Enterprise Capital Funding Corp. 9,865 - - -
Enterprise Group Development Corp. - - - -
Enterprise Diversified Holdings Inc. - - - -
Other Associated companies - (25,360) - -
U.S.Energy Incorporated - - - -
Current portion of long-term debt 26,431 - - -
----------- --------- --------- -----------
Total Current Liabilities 425,666 (180,443) 181,194 (4)
----------- --------- --------- -----------
TOTAL LONG-TERM DEBT 195,508 - - -
----------- --------- --------- -----------
DEFERRED CREDITS
Deferred income taxes 47,332 - 40,661 4,340
Deferred investment
and energy tax credits 8,583 - 8,026 -
Other 4,544 - - -
----------- --------- --------- -----------
Total Deferred Credits 60,459 - 48,687 4,340
----------- --------- --------- -----------
MINORITY INTEREST 3,124 (18) - -
----------- --------- --------- -----------
STOCKHOLDER'S EQUITY
Capital stock 10 (45) 10 5
Stock Subs Payable - (9) 9 -
Contributed capital 463,855 (553,898) 463,855 -
Retained earnings 8,320 18,850 8,320 (80)
Cumulative Translation Adjustment (14,519) 14,519 (14,519) -
----------- --------- --------- -----------
Total Stockholder's Equity 457,666 (520,583) 457,675 (75)
----------- --------- --------- -----------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 1,142,423 $(701,044) $ 687,556 $ 4,261
=========== ========= ========= ===========
</TABLE>
<PAGE> 93
CEA USA
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
CEA Project GWF CEA CEA
Tracy Services CONSOL. Leasing Deblois
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ - $ - $ - $ - $ -
Taxes (2) 1 222 (1) -
Other - - - - -
Interest - - - - -
Associated companies 1,462 7,741 28,209 8,897 2,528
Notes payable:
PSEG Capital Corporation - - - 14,693 -
Enterprise Capital Funding Corp. - - - 9,865 -
Enterprise Group Development Corp. - - - - -
Enterprise Diversified Holdings Inc. - - - - -
Other Associated companies - - - - -
U.S.Energy Incorporated - - - - -
Current portion of long-term debt - - - - -
-------- -------- -------- -------- -------
Total Current Liabilities 1,460 7,742 28,431 33,454 2,528
-------- -------- -------- -------- -------
TOTAL LONG-TERM DEBT - - - - -
-------- -------- -------- -------- -------
DEFERRED CREDITS
Deferred income taxes 1,466 1,056 33 (541) -
Deferred investment
and energy tax credits - - (173) - -
Other 3,330 - - - -
-------- -------- -------- -------- -------
Total Deferred Credits 4,796 1,056 (140) (541) -
-------- -------- -------- -------- -------
MINORITY INTEREST - - - - -
-------- -------- -------- -------- -------
STOCKHOLDER'S EQUITY
Capital stock 5 5 5 5 5
Stock Subs Payable - - - - -
Contributed capital - - - 31,939 -
Retained earnings (6,133) (1,220) 14,054 (1,361) (2,533)
Cumulative Translation Adjustment - - - - -
-------- -------- -------- -------- -------
Total Stockholder's Equity (6,128) (1,215) 14,059 30,583 (2,528)
-------- -------- -------- -------- -------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 128 $ 7,583 $ 42,350 $ 63,496 $ -
======== ======== ======== ======== =======
</TABLE>
<PAGE> 94
CEA USA
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
CEA Stony CEA
Mount CEA CEA Brook Stony
Carmel Mexico Baja Operators Brook
------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ - $ - $ - $ 23 $ -
Taxes (7) - - 45 59
Other - - - 151 -
Interest - - - - -
Associated companies 2,606 15 1 29 1,789
Notes payable:
PSEG Capital Corporation - - - - -
Enterprise Capital Funding Corp. - - - - -
Enterprise Group Development Corp. - - - - -
Enterprise Diversified Holdings Inc. - - - - -
Other Associated companies - - - - 7,835
U.S.Energy Incorporated - - - - -
Current portion of long-term debt - - - - -
------- ------- ------- ------- -------
Total Current Liabilities 2,599 15 1 248 9,683
------- ------- ------- ------- -------
TOTAL LONG-TERM DEBT - - - - -
------- ------- ------- ------- -------
DEFERRED CREDITS
Deferred income taxes 2,795 - (169) 15 256
Deferred investment
and energy tax credits - - - - -
Other - - - - -
------- ------- ------- ------- -------
Total Deferred Credits 2,795 - (169) 15 256
------- ------- ------- ------- -------
MINORITY INTEREST - - - - -
------- ------- ------- ------- -------
STOCKHOLDER'S EQUITY
Capital stock - 1 1 1 1
Stock Subs Payable - - - - -
Contributed capital (1,584) - 3,700 - 3,263
Retained earnings (2,392) (5) (885) 1,158 (2,038)
Cumulative Translation Adjustment - - - - -
------- ------- ------- ------- -------
Total Stockholder's Equity (3,976) (4) 2,816 1,159 1,226
------- ------- ------- ------- -------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 1,418 $ 11 $ 2,648 $ 1,422 $11,165
======= ======= ======= ======= =======
</TABLE>
<PAGE> 95
CEA USA
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
CEA CEA Asia
Kennedy CEA International Inc.
Operators KIAC CEMAS Services CONSOL.
--------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ 28 $ - $ - $ - $ 1,321
Taxes 95 205 - - 17
Other 167 - - 2,440 106
Interest - - - - -
Associated companies 54 40,013 1 3,393 19,499
Notes payable:
PSEG Capital Corporation - - - - -
Enterprise Capital Funding Corp. - - - - -
Enterprise Group Development Corp. - - - - -
Enterprise Diversified Holdings Inc. - - - - -
Other Associated companies - 17,525 - - -
U.S.Energy Incorporated - - - - -
Current portion of long-term debt - - - - -
------- -------- -------- -------- --------
Total Current Liabilities 344 57,743 1 5,833 20,943
------- -------- -------- -------- --------
TOTAL LONG-TERM DEBT - - - - -
------- -------- -------- -------- --------
DEFERRED CREDITS
Deferred income taxes 10 327 1,228 (236) (4,006)
Deferred investment
and energy tax credits - - - - -
Other 1 - 1,048 39 -
------- -------- -------- -------- --------
Total Deferred Credits 11 327 2,276 (197) (4,006)
------- -------- -------- -------- --------
MINORITY INTEREST - - - - -
------- -------- -------- -------- --------
STOCKHOLDER'S EQUITY
Capital stock 1 1 - - -
Stock Subs Payable - - - - -
Contributed capital - 8,499 30,139 1,200 3,800
Retained earnings 1,993 (15,418) 4,890 (3,832) (10,374)
Cumulative Translation Adjustment - - - - -
------- -------- -------- -------- --------
Total Stockholder's Equity 1,994 (6,918) 35,029 (2,632) (6,574)
------- -------- -------- -------- --------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 2,349 $ 51,152 $ 37,306 $ 3,004 $ 10,363
======= ======== ======== ======== ========
</TABLE>
<PAGE> 96
CEA USA
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
CEA International CEA CEA CEA CEA
India Inc. New Hawaiian Hawaiian Kalaeloa
Inc. CONSOL. Hampshire Mgt. Investment Inc.
------- ------------- --------- --------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ 72 $ 2,750 $ - $ - $ - $ -
Taxes - - - 3 107 -
Other - - - - - -
Interest - 4,636 - - - -
Associated companies 5,973 213,860 62 - - -
Notes payable:
PSEG Capital Corporation - - - - - -
Enterprise Capital Funding Corp. - - - - - -
Enterprise Group Development Corp. - - - - - -
Enterprise Diversified Holdings Inc. - - - - - -
Other Associated companies - - - - - -
U.S.Energy Incorporated - - - - - -
Current portion of long-term debt - 26,431 - - - -
------- ----------- --------- --------- ----------- --------
Total Current Liabilities 6,045 247,677 62 3 107 -
------- ----------- --------- --------- ----------- --------
TOTAL LONG-TERM DEBT - 195,508 - - - -
------- ----------- --------- --------- ----------- --------
DEFERRED CREDITS
Deferred income taxes (298) (556) 951 - - -
Deferred investment
and energy tax credits - - 730 - - -
Other - 126 - - - -
------- ----------- --------- --------- ----------- --------
Total Deferred Credits (298) (430) 1,681 - - -
------- ----------- --------- --------- ----------- --------
MINORITY INTEREST - 3,142 - - - -
------- ----------- --------- --------- ----------- --------
STOCKHOLDER'S EQUITY
Capital stock 1 1 5 1 - 1
Stock Subs Payable - - - - - -
Contributed capital - 446,531 - 536 25,875 -
Retained earnings (1,863) (3,367) 9,514 22 1,020 -
Cumulative Translation Adjustment - (14,519) - - - -
------- ----------- --------- --------- ----------- --------
Total Stockholder's Equity (1,862) 428,646 9,519 559 26,895 1
------- ----------- --------- --------- ----------- --------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 3,885 $ 874,543 $ 11,262 $ 562 $ 27,002 $ 1
======= =========== ========= ========= =========== ========
</TABLE>
<PAGE> 97
CEA INTERNATIONAL INC.
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA CEA
International INTERCOMPANY CEA Americas Americas
Inc. ELIMINATIONS International Inc. Services
CONSOL. & RECLASS. Inc. CONSOL. Inc.
------------ -------------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ 9,462 $ - $ - $ 6,161 $ -
Income from capital lease agreements - - - - -
Unrealized gains (losses) on investments - - - - -
Realized gains (losses) on investments - - - - -
Interest and dividend income - - - - -
Other 1,262 - - 1,262 -
Equity in subsidiary earnings - 3,401 (3,401) - -
------------ -------------- ----------- ---------- ------------
Total revenues 10,724 3,401 (3,401) 7,423 -
------------ -------------- ----------- ---------- ------------
OPERATING EXPENSES:
Operation and maintenance - - - - -
Depreciation and amortization 4 - - - 1
Administrative and general 8,266 - 11 232 262
------------ -------------- ----------- ---------- ------------
Total operating expenses 8,270 - 11 235 263
------------ -------------- ----------- ---------- ------------
OPERATING INCOME 2,454 3,401 (3,412) 7,188 (263)
------------ -------------- ----------- ---------- ------------
OTHER INCOME
Foreign currency Translation Gain/Loss 685 - - 685 -
------------ -------------- ----------- ---------- ------------
Total Other Income 685 - - 685 -
------------ -------------- ----------- ---------- ------------
INTEREST EXPENSE:
PSEG Capital Corporation - - - - -
Enterprise Capital Funding Corp. - - - - -
Other Associated Companies - - - 1 -
Other 8,069 - - 8,066 -
Capitalized interest (2) - - (1) -
------------ -------------- ----------- ---------- ------------
Net interest expense 8,067 - - 8,066 -
------------ -------------- ----------- ---------- ------------
INCOME BEFORE INCOME TAXES (4,928) 3,401 (3,412) (193) (263)
------------ -------------- ----------- ---------- ------------
INCOME TAXES:
Current (343) - (5) (5) (15)
Deferred (962) - 1 12 (77)
Investment and energy tax credits - net - - - - -
------------ -------------- ----------- ---------- ------------
Total income taxes (1,305) - (4) 7 (92)
------------ -------------- ----------- ---------- ------------
MINORITY INTERESTS (215) - - (215) -
------------ -------------- ----------- ---------- ------------
INCOME FROM CONTINUING OPERATIONS (3,408) 3,401 (3,408) 15 (171)
------------ -------------- ----------- ---------- ------------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - - -
------------ -------------- ----------- ---------- ------------
INCOME FROM DISCONTINUED OPERATIONS - - - - -
------------ -------------- ----------- ---------- ------------
NET INCOME $(3,408) $ 3,401 $ (3,408) $ 15 $ (171)
============ ============== =========== ========== ============
</TABLE>
<PAGE> 98
CEA INTERNATIONAL INC.
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
Bermuda CEA CEA
CEA Holdings China CEA Salalah
Barka II Ltd. Inc. Elcho Inc.
Inc. CONSOL. CONSOL. CONSOL. CONSOL.
----------- ----------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ - $ - $ 3,301 $ - $ -
Income from capital lease agreements - - - - -
Unrealized gains (losses) on investments - - - - -
Realized gains (losses) on investments - - - - -
Interest and dividend income - - - - -
Other - - - - -
Equity in subsidiary earnings - - - - -
----------- ----------- ------------ ------------- ------------
Total revenues - - 3,301 - -
----------- ----------- ------------ ------------- ------------
OPERATING EXPENSES:
Operation and maintenance - - - - -
Depreciation and amortization - - - - -
Administrative and general 3 3,932 2,963 366 4
----------- ----------- ------------ ------------- ------------
Total operating expenses 3 3,932 2,963 366 4
----------- ----------- ------------ ------------- ------------
OPERATING INCOME (3) (3,932) 338 (366) (4)
----------- ----------- ------------ ------------- ------------
OTHER INCOME
Foreign currency Translation Gain/Loss - - - - -
----------- ----------- ------------ ------------- ------------
Total Other Income - - - - -
----------- ----------- ------------ ------------- ------------
INTEREST EXPENSE:
PSEG Capital Corporation - - - - -
Enterprise Capital Funding Corp. - - - - -
Other Associated Companies - (1) - - -
Other - - 2 1 -
Capitalized interest - - - - (1)
----------- ----------- ------------ ------------- ------------
Net interest expense - (1) 2 1 (1)
----------- ----------- ------------ ------------- ------------
INCOME BEFORE INCOME TAXES (3) (3,931) 336 (367) (3)
----------- ----------- ------------ ------------- ------------
INCOME TAXES:
Current (1) - (597) 282 (1)
Deferred - (1,376) 1,041 (411) -
Investment and energy tax credits - net - - - - -
----------- ----------- ------------ ------------- ------------
Total income taxes (1) (1,376) 444 (129) (1)
----------- ----------- ------------ ------------- ------------
MINORITY INTERESTS - - - - -
----------- ----------- ------------ ------------- ------------
INCOME FROM CONTINUING OPERATIONS (2) (2,555) (108) (238) (2)
----------- ----------- ------------ ------------- ------------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - - -
----------- ----------- ------------ ------------- ------------
INCOME FROM DISCONTINUED OPERATIONS - - - - -
----------- ----------- ------------ ------------- ------------
NET INCOME $ (2) $ (2,555) $ (108) $ (238) $ (2)
=========== =========== ============ ============= ============
</TABLE>
<PAGE> 99
CEA INTERNATIONAL INC.
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
ECI Kannur Bermuda
International CEA Energy Holdings
Development Ltd. Inc. Inc.
----------- ------------ ------------- --------
<S> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ - $ - $ - $ -
Income from capital lease agreements - - - -
Unrealized gains (losses) on investments - - - -
Realized gains (losses) on investments - - - -
Interest and dividend income - - - -
Other - - - -
Equity in subsidiary earnings - - - -
----------- ------------ ------------- --------
Total revenues - - - -
----------- ------------ ------------- --------
OPERATING EXPENSES:
Operation and maintenance - - - -
Depreciation and amortization - 3 - -
Administrative and general - 487 - 3
----------- ------------ ------------- --------
Total operating expenses - 490 - 3
----------- ------------ ------------- --------
OPERATING INCOME - (490) - (3)
----------- ------------ ------------- --------
OTHER INCOME
Foreign currency Translation Gain/Loss - - - -
----------- ------------ ------------- --------
Total Other Income - - - -
----------- ------------ ------------- --------
INTEREST EXPENSE:
PSEG Capital Corporation - - - -
Enterprise Capital Funding Corp. - - - -
Other Associated Companies - - - -
Other - - - -
Capitalized interest - - - -
----------- ------------ ------------- --------
Net interest expense - - - -
----------- ------------ ------------- --------
INCOME BEFORE INCOME TAXES - (490) - (3)
----------- ------------ ------------- --------
INCOME TAXES:
Current - - - (1)
Deferred - (152) - -
Investment and energy tax credits - net - - - -
----------- ------------ ------------- --------
Total income taxes - (152) - (1)
----------- ------------ ------------- --------
MINORITY INTERESTS - - - -
----------- ------------ ------------- --------
INCOME FROM CONTINUING OPERATIONS - (338) - (2)
----------- ------------ ------------- --------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - -
----------- ------------ ------------- --------
INCOME FROM DISCONTINUED OPERATIONS - - - -
----------- ------------ ------------- --------
NET INCOME $ - $ (338) $ - $ (2)
=========== ============ ============= ========
</TABLE>
<PAGE> 100
CEA INTERNATIONAL INC.
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
International INTERCOMPANY CEA Americas
Inc. ELIMINATIONS International Inc.
CONSOL. & RECLASS. Inc. CONSOL.
------------ -------------- ----------- ----------
<S> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 41 $ (55) $ 41 $ (17)
NET INCOME (3,408) 3,401 (3,408) 15
------------ -------------- ----------- ----------
TOTAL (3,367) 3,346 (3,367) (2)
------------ -------------- ----------- ----------
DIVIDENDS DECLARED - - - -
------------ -------------- ----------- ----------
------------ -------------- ----------- ----------
BALANCE DECEMBER 31, 1997 (3,367) $ 3,346 $ (3,367) $ (2)
============ ============== =========== ==========
</TABLE>
<PAGE> 101
CEA INTERNATIONAL INC.
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
CEA Bermuda CEA
Americas CEA Holdings China
Services Barka II Ltd. Inc.
Inc. Inc. CONSOL. CONSOL.
------------ ----------- ----------- -------------
<S> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $ (63) $ - $ 324
NET INCOME (171) (2) (2,555) (108)
------------ ----------- ----------- -------------
TOTAL (234) (2) (2,555) 216
------------ ----------- ----------- -------------
DIVIDENDS DECLARED - - - -
------------ ----------- ----------- -------------
------------ ----------- ----------- -------------
BALANCE DECEMBER 31, 1997 $ (234) $ (2) $ (2,555) $ 216
============ =========== =========== =============
</TABLE>
<PAGE> 102
CEA INTERNATIONAL INC.
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
CEA CEA ECI Kannur
Elcho Salalah International CEA Energy
CONSOL. Inc. Development Ltd. Inc.
------------- ------------ ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $ (189) $ - $ - $ - $ -
NET INCOME (238) (2) - (338) -
------------- ------------ ----------- ----------- ------------
TOTAL (427) (2) - (338) -
------------- ------------ ----------- ----------- ------------
DIVIDENDS DECLARED - - - - -
------------- ------------ ----------- ----------- ------------
------------- ------------ ----------- ----------- ------------
BALANCE DECEMBER 31, 1997 $ (427) $ (2) $ - $ (338) $ -
============= ============ =========== =========== ============
</TABLE>
<PAGE> 103
CEA INTERNATIONAL INC.
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
Bermuda
Holdings
Inc.
-------
<S> <C>
BALANCE JANUARY 1, 1997 $ -
NET INCOME (2)
-------
TOTAL (2)
-------
DIVIDENDS DECLARED -
-------
-------
BALANCE DECEMBER 31, 1997 $ (2)
=======
</TABLE>
<PAGE> 104
CEA INTERNATIONAL INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA CEA
International INTERCOMPANY CEA Americas Americas
Inc. ELIMINATIONS International Inc. Services
CONSOL. & RECLASS. Inc. CONSOL. Inc.
------------ -------------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ 865 $ - $ - $ 263 $ 50
Accounts and Notes receivable:
Trade 3,343 (1) 1 3,337 6
Other 183 - 150 13 7
PSE&G - - - - -
PSEG - - - - -
Other associated companies 138 (2) 87 - 12
Notes receivable:
Associated companies - - - - -
Other - - - - -
Interest receivable 18 - - 18 -
Prepayments 8 - - 5 -
------------ -------------- ----------- ---------- ------------
Total Current Assets 4,555 (3) 238 3,636 75
------------ -------------- ----------- ---------- ------------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - - -
Other 154 - - 62 5
Accum. depr. and amortization (5) - - - (2)
Valuation allowances - - - - -
------------ -------------- ----------- ---------- ------------
Property, Plant and Equipment-net 149 - - 62 3
------------ -------------- ----------- ---------- ------------
INVESTMENTS
Subsidiaries - (435,128) 435,128 - -
Capital lease agreements - - - - -
Partnership interests - - - - -
Corporate joint ventures 856,160 - - 779,556 -
Securities - - - - -
Valuation allowances - - - - -
------------ -------------- ----------- ---------- ------------
Total Investments 856,160 (435,128) 435,128 779,556 -
------------ -------------- ----------- ---------- ------------
OTHER ASSETS
Other 13,679 - 15 7,273 76
------------ -------------- ----------- ---------- ------------
Total Other Assets 13,679 - 15 7,273 76
------------ -------------- ----------- ---------- ------------
TOTAL ASSETS $ 874,543 $ (435,131) $ 435,381 $ 790,527 $ 154
============ ============== =========== ========== ============
</TABLE>
<PAGE> 105
CEA INTERNATIONAL INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA CEA CEA
CEA Bermuda China Elcho Salalah
Barka Holdings Inc. Inc. Inc.
Inc. II Ltd. CONSOL. CONSOL. CONSOL.
------------ ----------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ - $ 13 $ - $ 167 $ -
Accounts and Notes receivable:
Trade - - - - -
Other - - - - -
PSE&G - - - - -
PSEG - - - - -
Other associated companies - - - - -
Notes receivable:
Associated companies - - - - -
Other - - - - -
Interest receivable - - - - -
Prepayments - - - - -
------------ ----------- ------------ ------------- ------------
Total Current Assets - 13 - 167 -
------------ ----------- ------------ ------------- ------------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - - -
Other - - - - -
Accum. depr. and amortization - - - - -
Valuation allowances - - - - -
------------ ----------- ------------ ------------- ------------
Property, Plant and Equipment-net - - - - -
------------ ----------- ------------ ------------- ------------
INVESTMENTS
Subsidiaries - - - - -
Capital lease agreements - - - - -
Partnership interests - - - - -
Corporate joint ventures - - 76,604 - -
Securities - - - - -
Valuation allowances - - - - -
------------ ----------- ------------ ------------- ------------
Total Investments - - 76,604 - -
------------ ----------- ------------ ------------- ------------
OTHER ASSETS
Other - 3,915 1,396 981 -
------------ ----------- ------------ ------------- ------------
Total Other Assets - 3,915 1,396 981 -
------------ ----------- ------------ ------------- ------------
TOTAL ASSETS $ - $ 3,928 $ 78,000 $ 1,148 $ -
============ =========== ============ ============= ============
</TABLE>
<PAGE> 106
CEA INTERNATIONAL INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
ECI Kannur Bermuda
International CEA Energy Holdings
Development Ltd. Inc. Inc.
------------ ----------- ------------- -------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ - $ 370 $ 2 $ -
Accounts and Notes receivable:
Trade - - - -
Other - 13 - -
PSE&G - - - -
PSEG - - - -
Other associated companies - 41 - -
Notes receivable:
Associated companies - - - -
Other - - - -
Interest receivable - - - -
Prepayments - 3 - -
------------ ----------- ------------- -------
Total Current Assets - 427 2 -
------------ ----------- ------------- -------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - -
Other - 87 - -
Accum. depr. and amortization - (3) - -
Valuation allowances - - - -
------------ ----------- ------------- -------
Property, Plant and Equipment-net - 84 - -
------------ ----------- ------------- -------
INVESTMENTS
Subsidiaries - - - -
Capital lease agreements - - - -
Partnership interests - - - -
Corporate joint ventures - - - -
Securities - - - -
Valuation allowances - - - -
------------ ----------- ------------- -------
Total Investments - - - -
------------ ----------- ------------- -------
OTHER ASSETS
Other - 23 - -
------------ ----------- ------------- -------
Total Other Assets - 23 - -
------------ ----------- ------------- -------
TOTAL ASSETS $ - $ 534 $ 2 $ -
============ =========== ============= =======
</TABLE>
<PAGE> 107
CEA INTERNATIONAL INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA CEA
International INTERCOMPANY CEA Americas Americas
Inc. ELIMINATIONS International Inc. Services
CONSOL. & RECLASS. Inc. CONSOL. Inc.
------------ -------------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ 2,750 $ - $ - $ 2,524 $ (1)
Taxes - - - - -
Other - - - - -
Interest 4,636 - - 4,636 -
Associated companies 213,860 (1) 6,733 121,323 500
Notes payable:
PSEG Capital Corporation - - - - -
Enterprise Capital Funding Corp. - - - - -
Enterprise Group Development Corp. - - - - -
Enterprise Diversified Holdings Inc. - - - - -
U.S.Energy Incorporated - - - - -
Current portion of long-term debt 26,431 - - 26,431 -
------------ -------------- ----------- ---------- ------------
Total Current Liabilities 247,677 (1) 6,733 154,914 499
------------ -------------- ----------- ---------- ------------
TOTAL LONG-TERM DEBT 195,508 - - 195,508 -
------------ -------------- ----------- ---------- ------------
DEFERRED CREDITS
Deferred income taxes (556) - 1 9 (111)
Deferred investment
and energy tax credits - - - - -
Other 126 - - 126 -
------------ -------------- ----------- ---------- ------------
Total Deferred Credits (430) - 1 135 (111)
------------------------------ ----------- ---------- ------------
MINORITY INTEREST 3,142 - - 3,142 -
------------ -------------- ----------- ---------- ------------
STOCKHOLDER'S EQUITY
Capital stock 1 (1) 1 - -
Stock Subs Payable - (1) 1 - -
Contributed capital 446,531 (452,993) 446,531 443,006 -
Retained earnings (3,367) 3,346 (3,367) (2) (234)
Cumulative Translation Adjustment (14,519) 14,519 (14,519) (6,176) -
------------ -------------- ----------- ---------- ------------
Total Stockholder's Equity 428,646 (435,130) 428,647 436,828 (234)
------------ -------------- ----------- ---------- ------------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 874,543 $ (435,131) $ 435,381 $ 790,527 $ 154
============ ============== =========== ========== ============
</TABLE>
<PAGE> 108
CEA INTERNATIONAL INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA CEA CEA
CEA Bermuda China Elcho Salalah
Barka Holdings Inc. Inc. Inc.
Inc. II Ltd. CONSOL. CONSOL. CONSOL.
------------ ----------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ - $ - $ - $ 143 $ -
Taxes - - - - -
Other - - - - -
Interest - - - - -
Associated companies 2 7,859 74,655 1,843 2
Notes payable:
PSEG Capital Corporation - - - - -
Enterprise Capital Funding Corp. - - - - -
Enterprise Group Development Corp. - - - - -
Enterprise Diversified Holdings Inc. - - - - -
U.S.Energy Incorporated - - - - -
Current portion of long-term debt - - - - -
------------ ----------- ------------ ------------- ------------
Total Current Liabilities 2 7,859 74,655 1,986 2
------------ ----------- ------------ ------------- ------------
TOTAL LONG-TERM DEBT - - - - -
------------ ----------- ------------ ------------- ------------
DEFERRED CREDITS
Deferred income taxes - (1,376) 1,484 (411) -
Deferred investment
and energy tax credits - - - - -
Other - - - - -
------------ ----------- ------------ ------------- ------------
Total Deferred Credits - (1,376) 1,484 (411) -
------------ ----------- ------------ ------------- ------------
MINORITY INTEREST - - - - -
------------ ----------- ------------ ------------- ------------
STOCKHOLDER'S EQUITY
Capital stock - - 1 - -
Stock Subs Payable - - - - -
Contributed capital - - 9,987 - -
Retained earnings (2) (2,555) 216 (427) (2)
Cumulative Translation Adjustment - - (8,343) - -
------------ ----------- ------------ ------------- ------------
Total Stockholder's Equity (2) (2,555) 1,861 (427) (2)
------------ ----------- ------------ ------------- ------------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ - $ 3,928 $ 78,000 $ 1,148 $ -
============ =========== ============ ============= ============
</TABLE>
<PAGE> 109
CEA INTERNATIONAL INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
ECI Kannur Bermuda
International CEA Energy Holdings
Development Ltd. Inc. Inc.
------------ ----------- ------------- -------
<S> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ - $ 84 $ - $ -
Taxes - - - -
Other - - - -
Interest - - - -
Associated companies - 940 2 2
Notes payable:
PSEG Capital Corporation - - - -
Enterprise Capital Funding Corp. - - - -
Enterprise Group Development Corp. - - - -
Enterprise Diversified Holdings Inc. - - - -
U.S.Energy Incorporated - - - -
Current portion of long-term debt - - - -
------------ ----------- ------------- -------
Total Current Liabilities - 1,024 2 2
------------ ----------- ------------- -------
TOTAL LONG-TERM DEBT - - - -
------------ ----------- ------------- -------
DEFERRED CREDITS
Deferred income taxes - (152) - -
Deferred investment
and energy tax credits - - - -
Other - - - -
------------ ----------- ------------- -------
Total Deferred Credits - (152) - -
------------ ----------- ------------- -------
MINORITY INTEREST - - - -
------------ ----------- ------------- -------
STOCKHOLDER'S EQUITY
Capital stock - - - -
Stock Subs Payable - - - -
Contributed capital - - - -
Retained earnings - (338) - (2)
Cumulative Translation Adjustment - - - -
------------ ----------- ------------- -------
Total Stockholder's Equity - (338) - (2)
------------ ----------- ------------- -------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ - $ 534 $ 2 $ -
============ =========== ============= =======
</TABLE>
<PAGE> 110
CEA AMERICAS INC.
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
Americas INTERCOMPANY CEA CEA Americas
Inc. ELIMINATIONS Americas Americas II Ltd.
CONSOL. & RECLASS. Inc. Ltd. CONSOL.
------------ -------------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ 6,161 $ - $ - $ - $ 6,161
Income from capital lease agreements - - - - -
Unrealized gains (losses) on investments - - - - -
Realized gains (losses) on investments - - - - -
Interest and dividend income - - - - -
Other 1,262 - - - 1,262
Equity in subsidiary earnings - 99 (99) - -
------------ -------------- ----------- ---------- ------------
Total revenues 7,423 99 (99) - 7,423
------------ -------------- ----------- ---------- ------------
OPERATING EXPENSES:
Operation and maintenance - - - - -
Depreciation and amortization - - - - -
Administrative and general 235 - 10 - 225
------------ -------------- ----------- ---------- ------------
Total operating expenses 235 - 10 - 225
------------ -------------- ----------- ---------- ------------
OPERATING INCOME 7,188 99 (109) - 7,198
------------ -------------- ----------- ---------- ------------
OTHER INCOME
Foreign currency Translation Gain/Loss 685 - - - 685
------------ -------------- ----------- ---------- ------------
Total Other Income 685 - - - 685
------------ -------------- ----------- ---------- ------------
INTEREST EXPENSE:
PSEG Capital Corporation - - - - -
Enterprise Capital Funding Corp. - - - - -
Other Associated Companies 1 - - - 1
Other 8,066 - - - 8,066
Capitalized interest (1) - - - (1)
------------ -------------- ----------- ---------- ------------
Net interest expense 8,066 - - - 8,066
------------ -------------- ----------- ---------- ------------
INCOME BEFORE INCOME TAXES (193) 99 (109) - (183)
------------ -------------- ----------- ---------- ------------
INCOME TAXES:
Current (5) - (4) - (1)
Deferred 12 - (120) - 132
Investment and energy tax credits - net - - - - -
------------ -------------- ----------- ---------- ------------
Total income taxes 7 - (124) - 131
------------ -------------- ----------- ---------- ------------
MINORITY INTERESTS (215) - - - (215)
------------ -------------- ----------- ---------- ------------
INCOME FROM CONTINUING OPERATIONS 15 99 15 - (99)
------------ -------------- ----------- ---------- ------------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - - -
------------ -------------- ----------- ---------- ------------
INCOME FROM DISCONTINUED OPERATIONS - - - - -
------------ -------------- ----------- ---------- ------------
NET INCOME $ 15 $ 99 $ 15 $ - $ (99)
============ ============== =========== ========== ============
</TABLE>
<PAGE> 111
CEA AMERICAS INC.
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
Americas INTERCOMPANY CEA CEA Americas
Inc. ELIMINATIONS Americas Americas II Ltd.
CONSOL. & RECLASS. Inc. Ltd. CONSOL.
------------ -------------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $ (17) $ 3 $ (17) $ - $ (3)
NET INCOME 15 99 15 - (99)
------------ -------------- ----------- ---------- ------------
TOTAL (2) 102 (2) - (102)
------------ -------------- ----------- ---------- ------------
DIVIDENDS DECLARED - - - - -
------------ -------------- ----------- ---------- ------------
------------ -------------- ----------- ---------- ------------
BALANCE DECEMBER 31, 1997 $ (2) $ 102 $ (2) $ - $ (102)
============ ============== =========== ========== ============
</TABLE>
<PAGE> 112
CEA AMERICAS INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
Americas INTERCOMPANY CEA Americas CEA
Inc. ELIMINATIONS Americas Ltd. Americas II
CONSOL. & RECLASS. Inc. CONSOL. Ltd.
------------ -------------- ----------- -------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ 263 $ - $ - $ 263 $ -
Accounts and Notes receivable:
Trade 3,337 - 255 3,082 -
Other 13 - - 13 -
PSE&G - - - - -
PSEG - - - - -
Other associated companies - (86) 84 - 2
Notes receivable: -
Associated companies - - - - -
Other - - - - -
Interest receivable 18 - - 18 -
Prepayments 5 - - 5 -
------------ -------------- ----------- ---------- ------------
Total Current Assets 3,636 (86) 339 3,381 2
------------ -------------- ----------- ---------- ------------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - - -
Other 62 - - 62 -
Accum. depr. and amortization - - - - -
Valuation allowances - - - - -
------------ -------------- ----------- ---------- ------------
Property, Plant and Equipment-net 62 - - 62 -
------------ -------------- ----------- ---------- ------------
INVESTMENTS
Subsidiaries - (435,958) 435,956 - 2
Capital lease agreements - - - - -
Partnership interests - - - - -
Corporate joint ventures 779,556 - 4,816 774,740 -
Securities - - - - -
Valuation allowances - - - - -
------------ -------------- ----------- ---------- ------------
Total Investments 779,556 (435,958) 440,772 774,740 2
------------ -------------- ----------- ---------- ------------
OTHER ASSETS
Other 7,273 - - 7,273 -
------------ -------------- ----------- ---------- ------------
Total Other Assets 7,273 - - 7,273 -
------------ -------------- ----------- ---------- ------------
TOTAL ASSETS $ 790,527 $(436,044) $ 441,111 $ 785,456 $ 4
============ ============== =========== ========== ============
</TABLE>
<PAGE> 113
CEA AMERICAS INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
Americas INTERCOMPANY CEA Americas CEA
Inc. ELIMINATIONS Americas Ltd. Americas II
CONSOL. & RECLASS. Inc. CONSOL. Ltd.
------------ -------------- ----------- -------------------------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ 2,524 $ - $ - $ 2,524 $ -
Taxes - - - - -
Other - - - - -
Interest 4,636 - - 4,636 -
Associated companies 121,323 (86) 4,405 117,000 4
Notes payable:
PSEG Capital Corporation - - - - -
Enterprise Capital Funding Corp. - - - - -
Enterprise Group Development Corp. - - - - -
Enterprise Diversified Holdings Inc. - - - - -
U.S.Energy Incorporated - - - - -
Current portion of long-term debt 26,431 - - 26,431 -
------------ -------------- ----------- ---------- ------------
Total Current Liabilities 154,914 (86) 4,405 150,591 4
------------ -------------- ----------- ---------- ------------
TOTAL LONG-TERM DEBT 195,508 - - 195,508 -
------------ -------------- ----------- ---------- ------------
DEFERRED CREDITS
Deferred income taxes 9 (122) 131 -
Deferred investment -
and energy tax credits - -
Other 126 - - 126 -
------------ -------------- ----------- ---------- ------------
Total Deferred Credits 135 - (122) 257 -
------------------------------ ----------- ---------- ------------
MINORITY INTEREST 3,142 (5) - 3,147 -
------------ -------------- ----------- ---------- ------------
STOCKHOLDER'S EQUITY
Capital stock - - - - -
Contributed capital 443,006 (442,231) 443,006 442,231 -
Retained earnings (2) 102 (2) (102) -
Cumulative Translation Adjustment (6,176) 6,176 (6,176) (6,176) -
------------ -------------- ----------- ---------- ------------
Total Stockholder's Equity 436,828 (435,953) 436,828 435,953 -
------------ -------------- ----------- ---------- ------------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 790,527 $ (436,044) $ 441,111 $ 785,456 $ 4
============ ============== =========== ========== ============
</TABLE>
<PAGE> 114
CEA AMERICAS LTD.
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
Americas INTERCOMPANY CEA CEA Alpha
Ltd. ELIMINATIONS Americas Peru Colombia
CONSOL. & RECLASS. Ltd. LLC Power
------------ -------------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ 6,161 $ - $ (23) $ - $ 71
Income from capital lease agreements - - - - -
Unrealized gains (losses) on investments - - - - -
Realized gains (losses) on investments - - - - -
Interest and dividend income - - - - -
Other 1,262 (3,786) 1,125 - -
Equity in subsidiary earnings - 8,615 (8,615) - -
------------ -------------- ----------- ---------- ------------
Total revenues 7,423 4,829 (7,513) - 71
------------ -------------- ----------- ---------- ------------
OPERATING EXPENSES:
Operation and maintenance - - - - -
Depreciation and amortization - - - - -
Administrative and general 225 (3,786) 147 (4) -
------------ -------------- ----------- ---------- ------------
Total operating expenses 225 (3,786) 147 (4) -
------------ -------------- ----------- ---------- ------------
OPERATING INCOME 7,198 8,615 (7,660) 4 71
------------ -------------- ----------- ---------- ------------
OTHER INCOME
Foreign currency Translation Gain/Loss 685 - - - -
------------ -------------- ----------- ---------- ------------
Total Other Income 685 - - - -
------------ -------------- ----------- ---------- ------------
INTEREST EXPENSE:
PSEG Capital Corporation - - - - -
Enterprise Capital Funding Corp. - - - - -
Other Associated Companies 1 - - - -
Other 8,066 - (7,561) - -
Capitalized interest (1) (1) - - -
------------ -------------- ----------- ---------- ------------
Net interest expense 8,066 (1) (7,561) - -
------------ -------------- ----------- ---------- ------------
INCOME BEFORE INCOME TAXES (183) 8,616 (99) 4 71
------------ -------------- ----------- ---------- ------------
INCOME TAXES:
Current (1) - - (1) -
Deferred 132 - - 3 7
Investment and energy tax credits - net - - - - -
------------ -------------- ----------- ---------- ------------
Total income taxes 131 - - 2 7
------------ -------------- ----------- ---------- ------------
MINORITY INTERESTS (215) (215) - - -
------------ -------------- ----------- ---------- ------------
INCOME FROM CONTINUING OPERATIONS (99) 8,831 (99) 2 64
------------ -------------- ----------- ---------- ------------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - - -
------------ -------------- ----------- ---------- ------------
INCOME FROM DISCONTINUED OPERATIONS - - - - -
------------ -------------- ----------- ---------- ------------
NET INCOME $ (99) $ 8,831 $ (99) $ 2 $ 64
============ ============== =========== ========== ============
</TABLE>
<PAGE> 115
CEA AMERICAS LTD.
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
CEA Americas CEA
Beta Operating CEA Brazil
Colombia Company do Investment
Power CONSOL. Brazil CONSOL.
------------ ----------- ------------ -------------
<S> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ 65 $ 2,548 $ - $ 3,500
Income from capital lease agreements - - - -
Unrealized gains (losses) on investments - - - -
Realized gains (losses) on investments - - - -
Interest and dividend income - - - -
Other - 3,923 - -
Equity in subsidiary earnings - - - -
------------ ----------- ------------ -------------
Total revenues 65 6,471 - 3,500
------------ ----------- ------------ -------------
OPERATING EXPENSES:
Operation and maintenance - - - -
Depreciation and amortization - - - -
Administrative and general - 3,786 82 -
------------ ----------- ------------ -------------
Total operating expenses - 3,786 82 -
------------ ----------- ------------ -------------
OPERATING INCOME 65 2,685 (82) 3,500
------------ ----------- ------------ -------------
OTHER INCOME
Foreign currency Translation Gain/Loss - - - 685
------------ ----------- ------------ -------------
Total Other Income - - - 685
------------ ----------- ------------ -------------
INTEREST EXPENSE:
PSEG Capital Corporation - - - -
Enterprise Capital Funding Corp. - - - -
Other Associated Companies - - 1 -
Other - 12,404 - 3,223
Capitalized interest - - - -
------------ ----------- ------------ -------------
Net interest expense - 12,404 1 3,223
------------ ----------- ------------ -------------
INCOME BEFORE INCOME TAXES 65 (9,719) (83) 962
------------ ----------- ------------ -------------
INCOME TAXES:
Current - - - -
Deferred 6 - 20 96
Investment and energy tax credits - net - - - -
------------ ----------- ------------ -------------
Total income taxes 6 - 20 96
------------ ----------- ------------ -------------
MINORITY INTERESTS - - - -
------------ ----------- ------------ -------------
INCOME FROM CONTINUING OPERATIONS 59 (9,719) (103) 866
------------ ----------- ------------ -------------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - -
------------ ----------- ------------ -------------
INCOME FROM DISCONTINUED OPERATIONS - - - -
------------ ----------- ------------ -------------
NET INCOME $ 59 $ (9,719) $ (103) $ 866
============ =========== ============ =============
</TABLE>
<PAGE> 116
CEA AMERICAS LTD.
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
Americas INTERCOMPANY CEA CEA Alpha
Ltd. ELIMINATIONS Americas Peru Colombia
CONSOL. & RECLASS. Ltd. LLC Power
------------ -------------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $ (3) $ 2 $ (3) $ (2) $ -
NET INCOME (99) 8,831 (99) 2 64
------------ -------------- ----------- ---------- ------------
TOTAL (102) 8,833 (102) - 64
------------ -------------- ----------- ---------- ------------
DIVIDENDS DECLARED - - - - -
------------ -------------- ----------- ---------- ------------
------------ -------------- ----------- ---------- ------------
BALANCE DECEMBER 31, 1997 $ (102) $ 8,833 $ (102) $ - $ 64
============ ============== =========== ========== ============
</TABLE>
<PAGE> 117
CEA AMERICAS LTD.
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
CEA Americas
Beta Operating CEA CEA
Colombia Company do Brazil
Power CONSOL. Brazil Investment
------------ ----------- ------------ -------------
<S> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $ - $ - $ - $ -
NET INCOME 59 (9,719) (103) 866
------------ ----------- ------------ -------------
TOTAL 59 (9,719) (103) 866
------------ ----------- ------------ -------------
DIVIDENDS DECLARED - - - -
------------ ----------- ------------ -------------
------------ ----------- ------------ -------------
BALANCE DECEMBER 31, 1997 $ 59 $ (9,719) $ (103) $ 866
============ =========== ============ =============
</TABLE>
<PAGE> 118
CEA AMERICAS LTD.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
Americas INTERCOMPANY CEA CEA Alpha
Ltd. ELIMINATIONS Americas Peru Colombia
CONSOL. & RECLASS. Ltd. LLC Power
------------ -------------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ 263 $ - $ - $ 6 $ -
Accounts and Notes receivable:
Trade 3,082 - 2,021 - -
Other 13 - - - -
PSE&G - - - - -
PSEG - - - - -
Other associated companies - (99,211) 99,074 - -
Notes receivable:
Associated companies - - - - -
Other - - - - -
Interest receivable 18 - - - -
Prepayments 5 - - - -
------------ -------------- ----------- ---------- ------------
Total Current Assets 3,381 (99,211) 101,095 6 -
------------ -------------- ----------- ---------- ------------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - - -
Other 62 - - - -
Accum. depr. and amortization - - - - -
Valuation allowances - - - - -
------------ -------------- ----------- ---------- ------------
Property, Plant and Equipment-net 62 - - - -
------------ -------------- ----------- ---------- ------------
INVESTMENTS
Subsidiaries - (439,754) 439,754 - -
Capital lease agreements - - - - -
Partnership interests - - - - -
Corporate joint ventures 774,740 - 954 - 28,104
Securities - - - - -
Valuation allowances - - - - -
------------ -------------- ----------- ---------- ------------
Total Investments 774,740 (439,754) 440,708 - 28,104
------------ -------------- ----------- ---------- ------------
OTHER ASSETS
Other 7,273 - 483 - -
------------ -------------- ----------- ---------- ------------
Total Other Assets 7,273 - 483 - -
------------ -------------- ----------- ---------- ------------
TOTAL ASSETS $ 785,456 $ (538,965) $ 542,286 $ 6 $ 28,104
============ ============== =========== ========== ============
</TABLE>
<PAGE> 119
CEA AMERICAS LTD.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
CEA Americas CEA
Beta Operating CEA Brazil
Colombia Company do Investment
Power CONSOL. Brazil CONSOL.
------------ ----------- ------------ -------------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ - $ 12 $ 121 $ 124
Accounts and Notes receivable:
Trade - 898 - 163
Other - - 13 -
PSE&G - - - -
PSEG - - - -
Other associated companies - 137 - -
Notes receivable:
Associated companies - - - -
Other - - - -
Interest receivable - 18 - -
Prepayments - - 5 -
------------ ----------- ------------ -------------
Total Current Assets - 1,065 139 287
------------ ----------- ------------ -------------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - -
Other - - 62 -
Accum. depr. and amortization - - - -
Valuation allowances - - - -
------------ ----------- ------------ -------------
Property, Plant and Equipment-net - - 62 -
------------ ----------- ------------ -------------
INVESTMENTS
Subsidiaries - - - -
Capital lease agreements - - - -
Partnership interests - - - -
Corporate joint ventures 25,942 215,885 - 503,855
Securities - - - -
Valuation allowances - - - -
------------ ----------- ------------ -------------
Total Investments 25,942 215,885 - 503,855
------------ ----------- ------------ -------------
OTHER ASSETS
Other - 6,660 115 15
------------ ----------- ------------ -------------
Total Other Assets - 6,660 115 15
------------ ----------- ------------ -------------
TOTAL ASSETS $ 25,942 $ 223,610 $ 316 $ 504,157
============ =========== ============ =============
</TABLE>
<PAGE> 120
CEA AMERICAS LTD.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
Americas INTERCOMPANY CEA CEA Alpha
Ltd. ELIMINATIONS Americas Peru Colombia
CONSOL. & RECLASS. Ltd. LLC Power
------------ -------------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ 2,524 $ - $ - $ - $ -
Taxes - - - - -
Other - - - - -
Interest 4,636 - - - -
Associated companies 117,000 (99,211) 106,207 5 -
Notes payable:
PSEG Capital Corporation - - - - -
Enterprise Capital Funding Corp. - - - - -
Enterprise Group Development Corp. - - - - -
Enterprise Diversified Holdings Inc. - - - - -
U.S.Energy Incorporated - - - - -
Current portion of long-term debt 26,431 - - - -
------------ -------------- ----------- ---------- ------------
Total Current Liabilities 150,591 (99,211) 106,207 5 -
------------ -------------- ----------- ---------- ------------
TOTAL LONG-TERM DEBT 195,508 - - - -
------------ -------------- ----------- ---------- ------------
DEFERRED CREDITS
Deferred income taxes 131 - - 1 7
Deferred investment
and energy tax credits - - - - -
Other 126 - 126 - -
------------ -------------- ----------- ---------- ------------
Total Deferred Credits 257 - 126 1 7
------------------------------ ----------- ---------- ------------
MINORITY INTEREST 3,147 3,129 - - -
------------ -------------- ----------- ---------- ------------
STOCKHOLDER'S EQUITY
Capital stock - - - - -
Contributed capital 442,231 (457,892) 442,231 - 28,033
Retained earnings (102) 8,833 (102) - 64
Cumulative Translation Adjustment (6,176) 6,176 (6,176) - -
------------ -------------- ----------- ---------- ------------
Total Stockholder's Equity 435,953 (442,883) 435,953 - 28,097
------------ -------------- ----------- ---------- ------------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 785,456 $ (538,965) $ 542,286 $ 6 $ 28,104
============ ============== =========== ========== ============
</TABLE>
<PAGE> 121
CEA AMERICAS LTD.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
CEA Americas CEA
Beta Operating CEA Brazil
Colombia Company do Investment
Power CONSOL. Brazil CONSOL.
------------ ----------- ------------ -------------
<S> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ - $ 2,524 $ - $ -
Taxes - - - -
Other - - - -
Interest - 1,413 - 3,223
Associated companies - 108,822 232 945
Notes payable:
PSEG Capital Corporation - - - -
Enterprise Capital Funding Corp. - - - -
Enterprise Group Development Corp. - - - -
Enterprise Diversified Holdings Inc. - - - -
U.S.Energy Incorporated - - - -
Current portion of long-term debt - - - 26,431
------------ ----------- ------------ -------------
Total Current Liabilities - 112,759 232 30,599
------------ ----------- ------------ -------------
TOTAL LONG-TERM DEBT - 87,044 - 108,464
------------ ----------- ------------ -------------
DEFERRED CREDITS
Deferred income taxes 7 - 20 96
Deferred investment
and energy tax credits - - - -
Other - - - -
------------ ----------- ------------ -------------
Total Deferred Credits 7 - 20 96
------------ ----------- ------------ -------------
MINORITY INTEREST - 18 - -
------------ ----------- ------------ -------------
STOCKHOLDER'S EQUITY
Capital stock - - - -
Contributed capital 25,876 33,508 167 370,308
Retained earnings 59 (9,719) (103) 866
Cumulative Translation Adjustment - - - (6,176)
------------ ----------- ------------ -------------
Total Stockholder's Equity 25,935 23,789 64 364,998
------------ ----------- ------------ -------------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 25,942 $ 223,610 $ 316 $ 504,157
============ =========== ============ =============
</TABLE>
<PAGE> 122
CEA BRAZIL INVESTMENT
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
CEA Pampa
Brazil INTERCOMPANY CEA Energia
Investment ELIMINATIONS Brazil Ltda.
CONSOL. & RECLASS. Investment CONSOL.
------------ -------------- ----------- ----------
<S> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ 3,500 $ - $ - $ 3,500
Income from capital lease agreements - - - -
Unrealized gains (losses) on investments - - - -
Realized gains (losses) on investments - - - -
Interest and dividend income - - - -
Other - - - -
Equity in subsidiary earnings - (866) 866 -
------------ -------------- ----------- ----------
Total revenues 3,500 (866) 866 3,500
------------ -------------- ----------- ----------
OPERATING EXPENSES:
Operation and maintenance - - - -
Depreciation and amortization - - - -
Administrative and general - - - -
------------ -------------- ----------- ----------
Total operating expenses - - - -
------------ -------------- ----------- ----------
OPERATING INCOME 3,500 (866) 866 3,500
------------ -------------- ----------- ----------
OTHER INCOME
Foreign currency Translation Gain/Loss 685 - - 685
------------ -------------- ----------- ----------
Total Other Income 685 - - 685
------------ -------------- ----------- ----------
INTEREST EXPENSE:
PSEG Capital Corporation - - - -
Enterprise Capital Funding Corp. - - - -
Other Associated Companies - - - -
Other 3,223 - - 3,223
Capitalized interest - - - -
------------ -------------- ----------- ----------
Net interest expense 3,223 - - 3,223
------------ -------------- ----------- ----------
INCOME BEFORE INCOME TAXES 962 (866) 866 962
------------ -------------- ----------- ----------
INCOME TAXES:
Current - - - -
Deferred 96 - - 96
Investment and energy tax credits - net - - - -
------------ -------------- ----------- ----------
Total income taxes 96 - - 96
------------ -------------- ----------- ----------
MINORITY INTERESTS - - - -
------------ -------------- ----------- ----------
INCOME FROM CONTINUING OPERATIONS 866 (866) 866 866
------------ -------------- ----------- ----------
DISCONTINUED OPERATIONS
Income from Discontinued Operations - Net of Taxes - - - -
Gain on Sale of Discontinued Operations - Net of Taxes - - - -
------------ -------------- ----------- ----------
INCOME FROM DISCONTINUED OPERATIONS - - - -
------------ -------------- ----------- ----------
NET INCOME $ 866 $ (866) $ 866 $ 866
============ ============== =========== ==========
</TABLE>
<PAGE> 123
CEA BRAZIL INVESTMENT
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
Brazil INTERCOMPANY CEA Pampa
Investment ELIMINATIONS Brazil Energia
CONSOL. & RECLASS. Investment Ltda.
------------ -------------- ----------- ----------
<S> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $ - $ - $ - $ -
NET INCOME 866 (866) 866 866
------------ -------------- ----------- ----------
TOTAL 866 (866) 866 866
------------ -------------- ----------- ----------
DIVIDENDS DECLARED - - - -
------------ -------------- ----------- ----------
------------ -------------- ----------- ----------
BALANCE DECEMBER 31, 1997 $ 866 $ (866) $ 866 $ 866
============ ============== =========== ==========
</TABLE>
<PAGE> 124
CEA BRAZIL INVESTMENT
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
Brazil INTERCOMPANY CEA Pampa
Investment ELIMINATIONS Brazil Energia
CONSOL. & RECLASS. Investment Ltda.
------------ -------------- ----------- ----------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ 124 $ - $ - $ 124
Accounts and Notes receivable:
Trade 163 - - 163
Other - - - -
PSE&G - - - -
PSEG - - - -
Other associated companies - - - -
Notes receivable:
Associated companies - - - -
Other - - - -
Interest receivable - - - -
Prepayments - - - -
------------ -------------- ----------- ----------
Total Current Assets 287 - - 287
------------ -------------- ----------- ----------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - -
Other - - - -
Accum. depr. and amortization - - - -
Valuation allowances - - - -
------------ -------------- ----------- ----------
Property, Plant and Equipment-net - - - -
------------ -------------- ----------- ----------
INVESTMENTS
Subsidiaries - (364,998) 364,998 -
Capital lease agreements - - - -
Partnership interests - - - -
Corporate joint ventures 503,855 - - 503,855
Securities - - - -
Valuation allowances - - - -
------------ -------------- ----------- ----------
Total Investments 503,855 (364,998) 364,998 503,855
------------ -------------- ----------- ----------
OTHER ASSETS
Other 15 - - 15
------------ -------------- ----------- ----------
Total Other Assets 15 - - 15
------------ -------------- ----------- ----------
TOTAL ASSETS $ 504,157 $ (364,998) $ 364,998 $ 504,157
============ ============== =========== ==========
</TABLE>
<PAGE> 125
CEA BRAZIL INVESTMENT
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA CEA
Brazil INTERCOMPANY CEA Pampa
Investment ELIMINATIONS Brazil Energia
CONSOL. & RECLASS. Investment Ltda.
------------ -------------- ----------- ----------
<S> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ - $ - $ - $ -
Taxes - - - -
Other - - - -
Interest 3,223 - - 3,223
Associated companies 945 - - 945
Notes payable:
PSEG Capital Corporation - - - -
Enterprise Capital Funding Corp. - - - -
Enterprise Group Development Corp. - - - -
Enterprise Diversified Holdings Inc. - - - -
U.S.Energy Incorporated - - - -
Current portion of long-term debt 26,431 - - 26,431
------------ -------------- ----------- ----------
Total Current Liabilities 30,599 - - 30,599
------------ -------------- ----------- ----------
TOTAL LONG-TERM DEBT 108,464 - - 108,464
------------ -------------- ----------- ----------
DEFERRED CREDITS
Deferred income taxes 96 - - 96
Deferred investment
and energy tax credits - - - -
Other - - - -
------------ -------------- ----------- ----------
Total Deferred Credits 96 - - 96
------------ -------------- ----------- ----------
STOCKHOLDER'S EQUITY
Capital stock - - - -
Contributed capital 370,308 (370,308) 370,308 370,308
Retained earnings 866 (866) 866 866
Cumulative Translation Adjustment (6,176) 6,176 (6,176) (6,176)
------------ -------------- ----------- ----------
Total Stockholder's Equity 364,998 (364,998) 364,998 364,998
------------ -------------- ----------- ----------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 504,157 $ (364,998) $ 364,998 $ 504,157
============ ============== =========== ==========
</TABLE>
<PAGE> 126
CEA PAMPA ENERGIA LTDA.
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
Pampa CEA
Energia INTERCOMPANY Pampa CEA
Ltda. ELIMINATIONS Energia Brazil CEA IPE'
CONSOL. & RECLASS. Ltda. I Brazil Energia
----------- -------------- ----------- ---------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
Income from partnerships $ 3,500 $ - $ - $ - $ - $ 3,500
Income from capital lease agreements - - - - - -
Unrealized gains (losses) on investments - - - - - -
Realized gains (losses) on investments - - - - - -
Interest and dividend income - - - - - -
Other - - - - - -
Equity in subsidiary earnings - (866) 866 - - -
----------- -------------- ----------- ---------- ------------ -----------
Total revenues 3,500 (866) 866 - - 3,500
----------- -------------- ----------- ---------- ------------ -----------
OPERATING EXPENSES:
Operation and maintenance - - - - - -
Depreciation and amortization - - - - - -
Administrative and general - - - - - -
----------- -------------- ----------- ---------- ------------ -----------
Total operating expenses - - - - - -
----------- -------------- ----------- ---------- ------------ -----------
OPERATING INCOME 3,500 (866) 866 - - 3,500
----------- -------------- ----------- ---------- ------------ -----------
OTHER INCOME:
Foreign currency translation Gain/Loss 685 - - - - 685
----------- -------------- ----------- ---------- ------------ -----------
Total Other Income 685 - - - - 685
----------- -------------- ----------- ---------- ------------ -----------
INTEREST EXPENSE:
PSEG Capital Corporation - - - - - -
Enterprise Capital Funding Corp. - - - - - -
Other Associated Companies - - - - - -
Other 3,223 - - - - 3,223
Capitalized interest - - - - - -
----------- -------------- ----------- ---------- ------------ -----------
Net interest expense 3,223 - - - - 3,223
----------- -------------- ----------- ---------- ------------ -----------
INCOME BEFORE INCOME TAXES 962 (866) 866 - - 962
----------- -------------- ----------- ---------- ------------ -----------
INCOME TAXES:
Current - - - - - -
Deferred 96 - - - - 96
Investment and energy tax credits - net - - - - - -
----------- -------------- ----------- ---------- ------------ -----------
Total income taxes 96 - - - - 96
----------- -------------- ----------- ---------- ------------ -----------
MINORITY INTERESTS - - - - - -
----------- -------------- ----------- ---------- ------------ -----------
INCOME FROM CONTINUING OPERATIONS 866 (866) 866 - - 866
----------- -------------- ----------- ---------- ------------ -----------
DISCONTINUED OPERATIONS
Income from Discontinued Operations -
Net of Taxes - - - - - -
Gain on Sale of Discontinued Operations -
Net of Taxes - - - - - -
----------- -------------- ----------- ---------- ------------ -----------
INCOME FROM DISCONTINUED OPERATIONS - - - - - -
----------- -------------- ----------- ---------- ------------ -----------
NET INCOME $ 866 $ (866) $ 866 $ - $ - $ 866
=========== ============== =========== ========== ============ ===========
</TABLE>
<PAGE> 127
CEA PAMPAS ENERGIA LTDA.
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDING DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
Pampa CEA
Energia INTERCOMPANY Pampa CEA
Ltda. ELIMINATIONS Energia Brazil CEA IPE'
CONSOL. & RECLASS. Ltda. I Brazil Energia
------------ -------------- ----------- ---------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
BALANCE JANUARY 1, 1997 $ - $ - $ - $ - $ - $ -
NET INCOME 866 (866) 866 - - 866
------------ -------------- ----------- ---------- ------------ -----------
TOTAL 866 (866) 866 - - 866
------------ -------------- ----------- ---------- ------------ -----------
DIVIDENDS DECLARED - - - - - -
------------ -------------- ----------- ---------- ------------ -----------
BALANCE DECEMBER 31, 1997 $ 866 $ (866) $ 866 $ - $ - $ 866
============ ============== =========== ========== ============ ===========
</TABLE>
<PAGE> 128
CEA PAMPA ENERGIA LTDA.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
Pampa CEA
Energia INTERCOMPANY Pampa CEA
Ltda. ELIMINATIONS Energia Brazil CEA IPE'
CONSOL. & RECLASS. Ltda. I Brazil Energia
------------ -------------- ----------- ---------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ 124 $ - $ - $ - $ - $ 124
Accounts and Notes receivable:
Trade 163 - - - - 163
Other - - - - - -
PSE&G - - - - - -
PSEG - - - - - -
Other associated companies - (740,616) 370,308 185,154 185,154 -
Notes receivable:
Associated companies - - - - - -
Other - - - - - -
Interest receivable - - - - - -
Prepayments - - - - - -
------------ -------------- ----------- ---------- ------------ -----------
Total Current Assets 287 (740,616) 370,308 185,154 185,154 287
------------ -------------- ----------- ---------- ------------ -----------
PROPERTY, PLANT AND EQUIPMENT
Real estate - - - - - -
Other - - - - - -
Accum. depr. and amortization - - - - - -
Valuation allowances - - - - - -
------------ -------------- ----------- ---------- ------------ -----------
Property, Plant and Equipment-net - - - - - -
------------ -------------- ----------- ---------- ------------ -----------
INVESTMENTS
Subsidiaries - (866) 866 - - -
Capital lease agreements - - - - - -
Partnership interests - - - - - -
Corporate joint ventures 503,855 - - - - 503,855
Securities - - - - - -
Valuation allowances - - - - - -
------------ -------------- ----------- ---------- ------------ -----------
Total Investments 503,855 (866) 866 - - 503,855
------------ -------------- ----------- ---------- ------------ -----------
OTHER ASSETS
Other 15 - - - - 15
------------ -------------- ----------- ---------- ------------ -----------
Total Other Assets 15 - - - - 15
------------ -------------- ----------- ---------- ------------ -----------
TOTAL ASSETS $ 504,157 $ (741,482) $ 371,174 $ 185,154 $ 185,154 $ 504,157
============ ============== =========== ========== ============ ===========
</TABLE>
<PAGE> 129
CEA PAMPA ENERGIA LTDA.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
($ IN THOUSANDS)
<TABLE>
<CAPTION>
CEA
Pampa CEA
Energia INTERCOMPANY Pampa CEA
Ltda. ELIMINATIONS Energia Brazil CEA IPE'
CONSOL. & RECLASS. Ltda. I Brazil Energia
----------- -------------- ----------- ---------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable:
Trade $ - $ - $ - $ - $ - $ -
Taxes - - - - - -
Other - - - - - -
Interest 3,223 - - - - 3,223
Associated companies 945 (740,616) - 185,154 185,154 371,253
Notes payable:
PSEG Capital Corporation - - - - - -
Enterprise Capital Funding Corp. - - - - - -
Enterprise Group Development Corp. - - - - - -
Enterprise Diversified Holdings Inc. - - - - - -
U.S.Energy Incorporated - - - - - -
Current portion of long-term debt 26,431 - - - - 26,431
----------- -------------- ----------- ---------- ------------ -----------
Total Current Liabilities 30,599 (740,616) - 185,154 185,154 400,907
----------- -------------- ----------- ---------- ------------ -----------
TOTAL LONG-TERM DEBT 108,464 - - - - 108,464
----------- -------------- ----------- ---------- ------------ -----------
DEFERRED CREDITS
Deferred income taxes 96 - - - - 96
Deferred investment
and energy tax credits - - - - - -
Other - - - - - -
----------- -------------- ----------- ---------- ------------ -----------
Total Deferred Credits 96 - - - - 96
----------- -------------- ----------- ---------- ------------ -----------
STOCKHOLDER'S EQUITY
Capital stock - - - - - -
Contributed capital 370,308 - 370,308 - - -
Retained earnings 866 (866) 866 - - 866
Cumulative Translation Adjustment (6,176) - - - - (6,176)
----------- -------------- ----------- ---------- ------------ -----------
Total Stockholder's Equity 364,998 (866) 371,174 - - (5,310)
----------- -------------- ----------- ---------- ------------ -----------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 504,157 $ (741,482) $ 371,174 $ 185,154 $ 185,154 $ 504,157
=========== ============== =========== ========== ============ ===========
</TABLE>
<PAGE> 130
EXHIBIT B
Financial Data Schedule
Public Service Enterprise Group Incorporated
December 31, 1997
(Millions of Dollars)
<TABLE>
<S> <C>
Consolidated Total Assets $ 17,943
Consolidated Total Operating Revenues $ 6,370
Consolidated Net Income $ 560
</TABLE>
<PAGE> 131
Exhibit C
Organizational Chart - Response 4(b)(i)
BHILAI
-----------------------------------------
Enterprise
-----------------------------------------
100%
-----------------------------------------
EDHI
-----------------------------------------
100%
-----------------------------------------
CEA
-----------------------------------------
100%
-----------------------------------------
CEA USA
-----------------------------------------
100%
-----------------------------------------
CEA International, Inc.
-----------------------------------------
100%
-----------------------------------------
CEA (Bermuda) Holdings II, Ltd.
-----------------------------------------
100%
-----------------------------------------
CEA India Limited
-----------------------------------------
100%
-----------------------------------------
Bhilai
-----------------------------------------
45%
-----------------------------------------
Bhilai Power Supply Company Limited
-----------------------------------------
<PAGE> 132
Exhibit C
Organizational Chart - Response 4(b)(ii)
CEA Meiya Power, Ltd.
(CMP)
-----------------------------------------
Enterprise
-----------------------------------------
100%
-----------------------------------------
EDHI
-----------------------------------------
100%
-----------------------------------------
CEA
-----------------------------------------
100%
-----------------------------------------
CEA USA
-----------------------------------------
100%
-----------------------------------------
CEA International, Inc.
-----------------------------------------
100%
-----------------------------------------
CEA China, Inc.
-----------------------------------------
100%
-----------------------------------------
CMP
-----------------------------------------
51%*
-----------------------------------------
MJCP**
-----------------------------------------
* The 51 % ownership interest shown is our anticipated investment.
** This company has not yet been formed.
<PAGE> 133
Exhibit C
Organizational Chart - Response 4(b)(iii)
CPHLLC
-----------------------------------------
Enterprise
-----------------------------------------
100%
-----------------------------------------
EDHI
-----------------------------------------
100%
-----------------------------------------
CEA
-----------------------------------------
100%
-----------------------------------------
CEA USA
-----------------------------------------
100%
-----------------------------------------
CEA International, Inc.
-----------------------------------------
100%
-----------------------------------------
CEA CHINA, Inc.
-----------------------------------------
100%
-----------------------------------------
CPHLLC
-----------------------------------------
27.8%
-----------------------------------------
Magellan Capital Holdings Corporation
-----------------------------------------
56%
-----------------------------------------
Magellan Cogeneration Inc.
-----------------------------------------
<PAGE> 134
Exhibit C
Organizational Chart - Response 4(b)(iv)
CTSN
-----------------------------------------
Enterprise
-----------------------------------------
100%
-----------------------------------------
EDHI
-----------------------------------------
100%
-----------------------------------------
CEA
-----------------------------------------
100%
-----------------------------------------
CEA USA
-----------------------------------------
100%
-----------------------------------------
CEMAS
-----------------------------------------
4.95% 18.63%
-----------------------------------------
ASNI
-----------------------------------------
62.74%
-----------------------------------------
ISN
-----------------------------------------
88%
-----------------------------------------
CTSN
-----------------------------------------
<PAGE> 135
Exhibit C
Organizational Chart - Response 4(b)(v)
JINGYUAN
-----------------------------------------
Enterprise
-----------------------------------------
100%
-----------------------------------------
EDHI
-----------------------------------------
100%
-----------------------------------------
CEA
-----------------------------------------
100%
-----------------------------------------
CEA USA
-----------------------------------------
100%
-----------------------------------------
CEA International,lnc.
-----------------------------------------
100%
-----------------------------------------
CEA China, lnc.
-----------------------------------------
50%
-----------------------------------------
Meiya Power Company Limited
-----------------------------------------
100%
-----------------------------------------
CUPPI
-----------------------------------------
30%
-----------------------------------------
Jingyuan
-----------------------------------------
<PAGE> 136
Exhibit C
Organizational Chart - Response 4(b)(vi)
RGE
-----------------------------------------
Enterprise
-----------------------------------------
100%
-----------------------------------------
EDHI
-----------------------------------------
100%
-----------------------------------------
CEA
-----------------------------------------
100%
-----------------------------------------
CEA USA
-----------------------------------------
100%
-----------------------------------------
CEA International, Inc.
-----------------------------------------
100%
-----------------------------------------
CEA Americas, Inc.
-----------------------------------------
100%
-----------------------------------------
CEA Americas, Ltd.
-----------------------------------------
100%
-----------------------------------------
CEA Brazil Investment Company
-----------------------------------------
100%
-----------------------------------------
Pampa Energia Ltda.
-----------------------------------------
100% 100%
- ---------------------------- ----------------------------
CEA Brazil Company CEA Brazil I Company
- ---------------------------- ----------------------------
50% 50%
-----------------------------------------
IPE Energia S.A.
-----------------------------------------
33.33%
-----------------------------------------
Doc 3 Participacoes S.A.
-----------------------------------------
91.8%
-----------------------------------------
Rio Grande Energia,S.A.
-----------------------------------------
<PAGE> 137
Exhibit C
Organizational Chart - Response 4(b)(vii)
EDEN
-----------------------------------------
Enterprise
-----------------------------------------
100%
-----------------------------------------
EDHI
-----------------------------------------
100%
-----------------------------------------
CEA
-----------------------------------------
100%
-----------------------------------------
CEA USA
-----------------------------------------
100%
-----------------------------------------
CEA International, Inc.
-----------------------------------------
100%
-----------------------------------------
CEA Americas, Inc.
-----------------------------------------
100%
-----------------------------------------
CEA Americas Ltd.
-----------------------------------------
90%
-----------------------------------------
CEA Americas Operating Company
-----------------------------------------
99.99%
-----------------------------------------
CEA Operating Argentina S.A.
-----------------------------------------
33.34%
-----------------------------------------
EDEN
-----------------------------------------
<PAGE> 138
Exhibit C
Organizational Chart - Response 4(b)(viii)
EDES
-----------------------------------------
Enterprise
-----------------------------------------
100%
-----------------------------------------
EDHI
-----------------------------------------
100%
-----------------------------------------
CEA
-----------------------------------------
100%
-----------------------------------------
CEA USA
-----------------------------------------
100%
-----------------------------------------
CEA International, Inc.
-----------------------------------------
100%
-----------------------------------------
CEA Americas, Inc.
-----------------------------------------
100%
-----------------------------------------
CEA Americas Ltd.
-----------------------------------------
90%
-----------------------------------------
CEA Americas Operating Company
-----------------------------------------
99.99%
-----------------------------------------
CEA Operating Argentina S.A.
-----------------------------------------
33.34%
-----------------------------------------
EDES
-----------------------------------------
<PAGE> 139
Exhibit C
Organizational Chart - Response 4(b)(ix)
TERMO E.S.P
-----------------------------------------
Enterprise
-----------------------------------------
100%
-----------------------------------------
EDHI
-----------------------------------------
100%
-----------------------------------------
CEA
-----------------------------------------
100%
-----------------------------------------
CEA USA
-----------------------------------------
100%
-----------------------------------------
CEA INTERNATIONAL, Inc.
-----------------------------------------
100%
-----------------------------------------
CEA Americas,Inc.
-----------------------------------------
100%
-----------------------------------------
CEA Americas Ltd.
50%
- -------------------- ------------------------- --------------------
Alpha Termo Santander Beta
Management
Company Ltd.
- -------------------- ------------------------- --------------------
0.001% Profit Interest
26% LP 24% LP
-----------------------------------------
Termo E.S.P.
-----------------------------------------
<PAGE> 140
Exhibit C
Organizational Chart - Response 4(b)(x)
TGM
-----------------------------------------
Enterprise
-----------------------------------------
100%
-----------------------------------------
EDHI
-----------------------------------------
100%
-----------------------------------------
CEA
-----------------------------------------
100%
-----------------------------------------
CEA USA
-----------------------------------------
100%
-----------------------------------------
CEA International, Inc.
-----------------------------------------
100%
-----------------------------------------
CEA Americas, Inc.
-----------------------------------------
100%
-----------------------------------------
CEA Americas II, Ltd.
-----------------------------------------
50%
-----------------------------------------
TGV
-----------------------------------------
17.13%
-----------------------------------------
TGM
-----------------------------------------
<PAGE> 141
The above-named Claimant (Enterprise) has caused this statement to be duly
executed on its behalf by its authorized officer on this 27th day of February,
1998.
Public Service Enterprise Group Incorporated
(Name of Claimant)
By PATRICIA A. RADO
-------------------------
Patricia A. Rado
Vice President and Controller
(Principal Accounting Officer)
(CORPORATE SEAL)
Attest:
E. J. BIGGINS, JR.
- ----------------------
E. J. Biggins, Jr.
Corporate Secretary
Name, title, and address of officer to whom notices and correspondence
concerning this statement should be addressed:
James T. Foran Associate General Counsel
-------------- -------------------------
(Name) (Title)
80 Park Plaza, T5B, P.0. Box 1171, Newark, New Jersey 07101-1171
----------------------------------------------------------------
(Address)
<TABLE> <S> <C>
<ARTICLE> OPUR3
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 17,943
<TOTAL-OPERATING-REVENUES> 6,370
<NET-INCOME> 560
</TABLE>
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