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<PAGE>
FORM U-3A-2
File No. 69-340
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
Statement by Holding Company Claiming Exemption
Under Rule U-2 from Provisions of the Public Utility
Holding Company Act of 1935
To be filed annually prior to March 1
NIPSCO Industries, Inc.
(Name of Company)
hereby files with the Securities and Exchange Commission, pursuant to
Rule U-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:
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. Information below is as of
December 31, 1997.
<TABLE>
<CAPTION>
State of
Name of Company Organization Location Nature of Business
====================== ============= ================= =====================
<S> <C> <C> <C>
NIPSCO Industries, Inc. Indiana Merrillville, Holding company
Indiana
NIPSCO Industries Indiana Merrillville, Management services
Management Services Indiana
Company
Hamilton Harbour Indiana Hammond, Indiana Captive insurance
Insurance Services, program
Ltd.
NI Telecomm, Inc. Indiana Merrillville, Inactive
Indiana
Crossroads Pipeline Indiana Hammond, Indiana Interstate gas
Company transmission
NIPSCO Capital Markets, Indiana Hammond, Indiana Funding agent for
Inc. all subsidiaries
other than Northern
Indiana Public Service
Company
NEM Acquisition Indiana Merrillville, Holding Company
Corporation Indiana
IWC Resources Indiana Indianapolis, Holding company
Corporation Indiana
Indianapolis Water Indiana Indianapolis, Water company
Company (1) Indiana
Harbour Water Indiana Indianapolis, Water company
Corporation (1) Indiana
Utility Data Indiana Indianapolis, Provides customer
Corporation (1) Indiana billing and data
processing services
IWC Services, Inc. Indiana Indianapolis, Majority partner
(1) Indiana in wastewater
treatment
facilities
White River Indiana Indianapolis, Operator of waste-
Environmental Indiana water treatment
Partnership(2) plants
Waterway Holdings, Inc. Indiana Indianpolis, Real-estate
(1) Indiana development
SM&P Utility Resources, Indiana Indianapolis, Provides utility
Inc. (1) Indiana locate and
marking services
Miller Pipeline Indiana Indianapolis, Pipeline
Corporation (1) Indiana construction
Primary Energy, Inc. Indiana Hammond, Indiana Arranges energy-
related projects
Harbor Coal Company (3) Indiana Hammond, Indiana Coal pulverization
project company
Lakeside Energy Indiana Merrillville, Electric generator
Corporation (3) Indiana project company
North Lake Energy Indiana Merrillville, Electric generation
Corporation (3) Indiana project company
Portside Energy Indiana Merrillville, Power generation
Corporation (3) Indiana project company
Cokenergy, Inc. (3) Indiana Merrillville, Power generation
Indiana project company
Northern Indiana Public Indiana Hammond, Indiana Electric and
Service Company gas utility
NIPSCO Exploration Indiana Hammond, Indiana Gas exploration
Company, Inc. (4) investment in
off-shore Gulf of
Mexico oil and
gas leases
Shore Line Shops, Indiana Hammond, Indiana Real estate
Incorporated (4) purchase and sale
of transferred
employees
residences
NIPSCO Energy Services, Indiana Hammond, Indiana Holding company for
Inc. energy-related
diversified
projects and
subsidiaries
Market Hub Partners, Delaware Lansdowne, Natural gas
L.P. (5) Virginia storage
Inventory Management and Texas Houston, Texas Energy risk
Distribution Company, management
L.L.C. (6) and gas storage
optimization
NIPSCO Energy Trading Indiana Hammond, Indiana Gas and other
Corp. (7) energy brokering
businesses
NIPSCO Fuel Company, Indiana Hammond, Indiana Investments in
Inc. (7) gas and oil
ventures
Bristol Resources Delaware Tulsa, Oklahoma Oil and gas
Production Company, exploration
L.L.C.(8) and production
NFCO Acquisition Company Texas Dallas, Texas Investment in
(9) gas and oil
properties
NI-TEX, Inc. (7) Indiana Hammond, Indiana Gas supply and
transportation
Laredo Nueces Pipeline Texas Dallas, Texas Intrastate gas
Company (24) pipeline company
Midtex Gas Storage Texas Matagorda Gas storage and
Company, L.L.P. (25) County, Texas intrastate pipeline
company
NESI Energy Marketing, Indiana Merrillville, Marketing of natural
L.L.C. (11) (12) Indiana gas energy and
energy services
Green Fuels, Inc. (7) Indiana Merrillville, Alternative
Indiana fuels
Parkway Engineering and Indiana Merrillville, Commercial
Distributing Company, Indiana Lighting
Inc. (7)
NESI Power Marketing, Indiana Merrillville, Electric
Inc. (7) Indiana brokering
NESI Integrated Energy Indiana Merrillville, Retail gas
Resources, Inc. (7) Indiana marketing
NESI Energy Services Indiana Merrillville, Energy
Company (7) Indiana consulting
NIPSCO Energy Services Alberta Calgary, Holding company
Canada Limited (7) Alberta
Southlake Energy, Inc. Alberta Calgary, Alberta Development and
(10) investment in gas
and oil properties
in western Canada
NESI Energy Marketing Alberta Calgary, Alberta Inactive
Canada, Ltd. (13) (In bankruptcy)
Triumph Natural Gas, Inc. Delaware Dallas, Texas Inactive
(14)
NIPSCO Development Indiana Hammond, Indiana Holding company
Company, Inc. (including real
estate development
investments)
Analytic Systems Indiana Hobart, Indiana Fluid filtration
Laboratories, Inc. (15) systems
Protonics Research, Inc. Indiana Merrillville, Energy research
(15) Indiana and development
FuelMaker Corporation (16) Canada Toronto, Canada Vehicle fueling
G. R. Clark Corporation Indiana Hobart, Indiana Inactive
(17)
International Polymer Indiana Merrillville, Inactive
Corp. (17) Indiana
JOF Transportation Indiana Hammond, Indiana Rail freight
Company (17) venture
KOGAF Enterprises, Inc. Indiana Kokomo, Indiana Real estate
(17) investments
Lake Erie Land Company Indiana Hammond, Indiana Development
(17) of commercial
and residential
real estate
SCC Services, Inc. (18) Indiana Hammond, Indiana Operation of
golf course
N Squared Aviation, Delaware Griffith, Aircraft
LLC (19) Indiana leasing
NDC Douglas Properties, Indiana Hammond, Indiana Affordable
Inc. (17) housing projects
NIPSCO International Indiana Hammond, Indiana Inactive
Power Systems Company(17)
NIPSCO Security Services, Indiana Hammond, Indiana Security services
Inc. (17)
RIC, Inc. (17) Indiana Hammond, Indiana Consulting services
for customer
information systems
Cardinal Property Indiana Hammond, Indiana Building and
Management, Inc. (20) property
management
Riverside Caloric Company Indiana Hammond, Indiana Inactive
(17)
Progeni, Inc. Illinois Chicago, Energy product
(17) Illinois development
Sun Power California Sunnyvale, Silicon-based
Corporation (23) California semiconductor
products
Kokomo Gas and Fuel Indiana Kokomo, Indiana Gas utility
Company
KGF Trading Indiana Kokomo, Indiana Gas brokering
Company (22)
Northern Indiana Fuel and Indiana Auburn, Indiana Gas utility
Light Company, Inc.
Northern Indiana Trading Indiana Auburn, Indiana Gas brokering
Company (21)
<FN>
(1) Wholly-owned subsidiary of IWC Resources Corporation.
(2) Majority-owned interest of IWC Services, Inc.
(3) Wholly-owned subsidiary of Primary Energy, Inc.
(4) Wholly-owned subsidiary of Northern Indiana Public Service Company.
(5) Minority-owned partnership of NIPSCO Energy Services, Inc.
(6) Minority-owned interest of NIPSCO Energy Services, Inc.
(7) Wholly-owned subsidiary of NIPSCO Energy Services, Inc.
(8) Majority-owned interest of NIPSCO Fuel Company, Inc.
(9) Wholly-owned subsidiary of NIPSCO Fuel Company, Inc.
(10) Wholly-owned subsidiary of NIPSCO Energy Services Canada Limited.
(11) Majority-owned interest of NIPSCO Energy Services, Inc.
(12) Minority-owned interest of NEM Acquisision Corporation.
(13) Majority-owned subsidiary of NIPSCO Energy Services Canada Limited.
(14) Majority-owned subsidiary of NIPSCO Energy Services, Inc.
(15) Majority-owned subsidiary of NIPSCO Development Company, Inc.
(16) 50% owned subsidiary of NIPSCO Energy Services Canada Limited.
Sold January 1998.
(17) Wholly-owned subsidiary of NIPSCO Development Company, Inc.
(18) Wholly-owned subsidiary of Lake Erie Land Company.
(19) Minority-owned interest of NIPSCO Development Company, Inc.
(20) Wholly-owned subsidiary of RIC, Inc.
(21) Wholly-owned subsidiary of Northern Indiana Fuel and Light Company,
Inc.
(22) Wholly-owned subsidiary of Kokomo Gas and Fuel Company.
(23) Minority-owned subsidiary of NIPSCO Development Company, Inc.
(24) 50% owned interest of NI-TEX, Inc.
(25) Minority-owned interest of NI-TEX, Inc.
</FN>
</TABLE>
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.
The claimant, NIPSCO Industries, Inc. (Industries), owns no physical
properties. All the physical properties of Northern Indiana Public Service
Company (Northern Indiana), Kokomo Gas and Fuel Company (Kokomo Gas) and
Northern Indiana Fuel and Light Company, Inc. (NIFL) are located in the State of
Indiana. Crossroads Pipeline Company (Crossroads)owns a 202-mile natural gas
interstate pipeline running from northwest Indiana to Cygnet, Ohio.
Northern Indiana Public Service Company. Northern Indiana is a public
utility operating company engaged in supplying natural gas and electrical energy
to the public. It operates in 30 counties in the northern part of Indiana,
serving an area of about 12,000 square miles with a population of approximately
2.2 million. Northern Indiana, at December 31, 1997, served approximately
662,500 customers with gas and approximately 416,300 with electricity.
ELECTRIC. Northern Indiana owns and operates four electric generating
stations using fossil fuels with net capability of 3,179,000 kilowatts (kw), two
hydroelectric generating plants with rated net capabilities of 10,000 kw,four
gas fired combustion turbine generating units with net capabilities of 203,000
kw, for a total system capacity of 3,392,000 kw. All of Northern Indiana's
generating units are located in Northwest Indiana.
Northern Indiana has 292 substations with an aggregate transformer capacity
of 23,030,500 KVA. Its transmission system with voltages from 34,500 to 345,000
consists of approximately 3,053 circuit miles of line. The electric distribution
system extends into 21 counties and consists of approximately 7,835 circuit
miles of overhead and approximately 1,440 cable miles of underground primary
distribution lines operating at various voltages from 2,400 to 12,500 volts.
GAS. In 1997, all of the gas supplied by Northern Indiana was transported
by ANR Pipeline Company (ANR), Crossroads, Midwestern Gas Transmission Company
(Midwestern), Natural Gas Pipeline Company of America (Natural), Panhandle
Eastern Pipe Line Company (Panhandle), Tennessee Gas Pipeline Company
(Tennessee), and Trunkline Gas Company (Trunkline). Approximately 69% of
Northern Indiana's 1997 gas supply was purchased on the spot market, generally
on less than 30-day agreements.
The transportation rates of Crossroads, and the transportation and storage
rates of ANR, Midwestern, Natural, Panhandle, Tennessee, and Trunkline to
Northern Indiana are subject to change in accordance with rate proceedings filed
with the Federal Energy Regulatory Commission (FERC).
Northern Indiana has in operation an underground gas storage field at Royal
Center, Indiana, which currently has a storage capacity of 6.75 billion cubic
foot (Bcf).
In addition, Northern Indiana has several gas storage service agreements
which make possible the withdrawal of substantial quantities of gas from other
storage facilities. All of the storage agreements have limitations on the daily
withdrawal volumes and the timing thereof.
Northern Indiana has a liquefied natural gas plant in LaPorte County,
Indiana, which is designed for peak shaving and has the following capacities:
maximum storage of 4.0 Bcf; maximum liquefaction rate (gas to liquid), 20,000
Mcf per day; maximum vaporization rate (output to distribution system), 300,000
Mcf per day. Northern Indiana has approximately 13,368 miles of gas mains.
OTHER PROPERTIES. Northern Indiana owns offices and service buildings,
salesrooms, garages, repair shops, motor vehicles, construction equipment and
tools, and office furniture and equipment, and also leases offices in various
localities. It also owns miscellaneous parcels of real estate not now used in
utility operations.
Kokomo Gas and Fuel Company. Kokomo Gas is a public utility operating
company which provides natural gas and natural gas transportation services to
approximately 33,500 customers at December 31, 1997. Kokomo's service
territories include all of Howard County, and parts of Carroll, Cass, Clinton,
Miami, and Tipton Counties in Indiana. Kokomo's service area has a population in
excess of 100,000 people and includes 23 cities, towns, and communities.
Kokomo Gas purchased gas on the spot market from NI-TEX, Inc. and NESI
Energy Marketing L.L.C., subsidiaries of NIPSCO Energy Services, Inc., to
satisfy all of its system requirements in 1997.
Kokomo Gas has a liquefied natural gas plant in Howard County which has the
following capacities: maximum storage of 400,000 Mcf; maximum liquefication rate
(gas to liquid), 2,850 Mcf per day; maximum vaporization rate (output to
distribution system), 30,000 Mcf per day. Kokomo Gas also has a gas holder with
a storage capacity of 12,000 Mcf. Kokomo Gas has approximately 752 miles of gas
mains.
Northern Indiana Fuel and Light Company, Inc. NIFL is a public utility
operating company which provides natural gas and natural gas transportation
services to approximately 33,400 customers at December 31, 1997. NIFL's service
territories include all of DeKalb and Steuben, and parts of Allen, LaGrange, and
Noble Counties in Indiana. NIFL's service area has a population in excess of
66,700 people and includes 22 cities, towns, and communities.
NIFL purchased gas on the spot market from a number of suppliers including
NI-TEX, Inc. and NESI Energy Marketing L.L.C., subsidiaries of NIPSCO Energy
Services, Inc., to satisfy all of its system requirements in 1997. NIFL has
approximately 809 miles of gas mains.
Crossroads Pipeline Company. Crossroads Pipeline Company is a 20-inch
interstate, natural gas pipeline that extends from near the Illinois-Indiana
state line east 202 miles to Cygnet, Ohio.
3. The following information for the year 1997 with respect to claimant
and each of its subsidiary public utility companies:
(a) Number of Kwh of electric energy sold (at retail or wholesale)
and Mcf of natural or manufactured gas distributed at retail.
<TABLE>
<CAPTION>
Total Electric Retail Gas
Sales Distributed
Company (Kwh) (Mcf)
=============================== =============== =============
<S> <C> <C>
Northern Indiana Public Service
Company 15,992,164,572 292,636,881
Kokomo Gas and Fuel Company NONE 8,747,477
Northern Indiana Fuel and Light
Company, Inc. NONE 10,845,988
</TABLE>
(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.
NONE.
(c) Number of Kwh 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.
<TABLE>
<CAPTION>
Electric Sales Gas Sales
Company (Kwh) (Mcf)
=============================== ============== =============
<S> <C> <C>
Northern Indiana Public Service
Company 861,802,000 4,130,675
Kokomo Gas and Fuel Company NONE NONE
Northern Indiana Fuel and Light
Company, Inc. NONE NONE
</TABLE>
(d) Number of Kwh 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.
<TABLE>
<CAPTION>
Electric
Purchases Gas Purchases
Company (Kwh) (Mcf)
=============================== =============== =============
<S> <C> <C>
Northern Indiana Public Service
Company 950,817,427 113,693,697
Kokomo Gas and Fuel Company NONE NONE
Northern Indiana Fuel and Light
Company, Inc. NONE NONE
</TABLE>
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 for the distribution at retail of natural or
manufactured gas.
Elm Energy and Recycling (UK) Ltd. ("Elm Energy"), an exempt
wholesale generator, is a whole tires-to-energy facility whose
registered address is Elm Energy House, Ettinshall Road,
Wolverhampton WV22LA, England. The facility incinerates waste
tires, raises steam and generates electricity for export to the
grid.
(b) Name of each system company that holds an interest in such EWG
or foreign utility company; and description of the interest held.
Development holds a 85% equity ownership position in Elm Energy.
(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.
Industries invested $23,121,000 for Ordinary Shares of Elm
Energy indirectly through Development. Industries has provided no
guarantees nor is there any debt having recourse to Industries.
(d) Capitalization and earnings of the EWG or foreign utility
company during the reporting period.
<TABLE>
<CAPTION>
Elm Energy and Recycling (UK) Ltd.
1997 (In thousands)
===================================== ============
<S> <C>
Capitalization at December 31, 1997:
Shareholders' equity $ (128)
Long-term debt 0
--------
Total $ (128)
=======
Net (loss) $ (1,060)
=======
</TABLE>
(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).
Pursuant to the Engineering Services Agreement dated June 22,
1994 between Elm Energy and Development, Development has agreed to
provide personnel to supervise the engineering operations and planning
related to the Whole Tyre Recycling Facility at Wolverhampton.
Development is to be paid 250,000 pounds sterling yearly for these
services with invoicing quarterly in arrears. During 1997, Development
earned $407,684 for these services.
<TABLE> <S> <C>
<ARTICLE> OPUR3
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements of NIPSCO Industries, Inc. for twelve months ended
December 31, 1997, and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 4,937,033
<TOTAL-OPERATING-REVENUES> 2,586,541
<NET-INCOME> 190,849
</TABLE>
<PAGE>
Exhibit 99.A
(EXHIBIT A)
December 31, 1997 ORGANIZATION CHART
A.1 NIPSCO Industries, Inc.
A.2 NIPSCO Industries Management Services Company
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.3 Hamilton Harbour Insurance Services, Ltd.
A.4 NI Telecomm, Inc.
BALANCE SHEET (None - Zero Amounts)
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.5 Crossroads Pipeline Company
A.6 NIPSCO Capital Markets, Inc.
A.7 NEM Acquisition Corporation
A.8 IWC Resources Corporation
A.9 Indianapolis Water Company
A.10 Harbour Water Corporation
A.11 Utility Data Corporation
A.12 IWC Services, Inc.
A.13 White River Environmental Partnership
BALANCE SHEET (None - Zero Amounts)
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.14 Waterway Holdings, Inc.
A.15 SM&P Utility Resources, Inc.
A.16 Miller Pipeline Corporation
A.17 Primary Energy, Inc.
A.18 Harbor Coal Company
A.19 Lakeside Energy Corporation
A.20 North Lake Energy Corporation
A.21 Portside Energy Corporation
A.22 Cokenergy, Inc.
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.23 Northern Indiana Public Service Company
A.24 NIPSCO Exploration Company, Inc.
A.25 Shore Line Shops, Incorporated
A.26 NIPSCO Energy Services, Inc.
A.27 Market Hub Partners, L.P.
BALANCE SHEET (None - Zero Amounts)
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.28 Inventory Management and Distribution Company, L.L.C.
BALANCE SHEET (None - Zero Amounts)
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.29 NIPSCO Energy Trading Corp.
BALANCE SHEET (None - Zero Amounts)
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.30 NIPSCO Fuel Company, Inc.
A.31 Bristol Resources Production Company L.L.C.
A.32 NFCO Acquisition Company
A.33 NI-TEX, Inc.
A.34 Laredo Nueces Pipeline Company
BALANCE SHEET (None - Zero Amounts)
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.35 Midtex Gas Storage Company, L.L.P.
BALANCE SHEET (None - Zero Amounts)
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.36 NESI Energy Marketing, L.L.C.
A.37 Green Fuels, Inc.
A.38 Parkway Engineering and Distributing Company, Inc.
A.39 NESI Power Marketing, Inc.
A.40 NESI Integrated Energy Resources, Inc.
A.41 NESI Energy Services Company
A.42 NIPSCO Energy Services Canada, Limited
A.43 Southlake Energy, Inc.
A.44 NESI Energy Marketing Canada, Ltd.
BALANCE SHEET (None - Zero Amounts)
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.45 Triumph Natural Gas, Inc.
BALANCE SHEET (None - Zero Amounts)
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.46 NIPSCO Development Company, Inc.
A.47 Analytic Systems Laboratories, Inc.
A.48 Protonics Research, Inc.
BALANCE SHEET (None - Zero Amounts)
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.49 FuelMaker Corporation (Interest sold January 1998)
BALANCE SHEET (None - Zero Amounts)
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.50 G.R. Clark Corporation
A.51 International Polymer Corp.
BALANCE SHEET (None - Zero Amounts)
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.52 JOF Transportation Company
A.53 KOGAF Enterprises, Inc.
A.54 Lake Erie Land Company
A.55 SCC Services, Inc.
A.56 N Squared Aviation, LLC
BALANCE SHEET (None - Zero Amounts)
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.57 NDC Douglas Properties, Inc.
A.58 NIPSCO International Power Systems Company
INCOME STATEMENT (No Activity)
A.59 NIPSCO Security Services, Inc.
A.60 RIC, Inc.
A.61 Cardinal Property Management, Inc.
A.62 Riverside Caloric Company
A.63 Progeni, Inc.
A.64 Sun Power Corporation
BALANCE SHEET (None - Zero Amounts)
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.65 Kokomo Gas and Fuel Company
A.66 KGF Trading Company
BALANCE SHEET (None - Zero Amounts)
INCOME STATEMENT (No Activity)
STATEMENT OF RETAINED EARNINGS (None - Zero Amounts)
A.67 Northern Indiana Fuel and Light Company, Inc.
A.68 Northern Indiana Trading Company
<TABLE>
<CAPTION>
A.1 NIPSCO INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Utility Plant, At Original Cost
(including construction work in
progress of $188,710):
Electric $4,066,568
Gas 1,395,140
Water 603,013
Common 351,350
----------
6,416,071
Less-Accumulated provision for
depreciation and amortization 2,759,945
----------
Total Utility Plant 3,656,126
----------
Other property, at cost, less accumulated
provision for depreciation 96,028
----------
Total Property, Plant and Equipment 3,752,154
----------
Investments:
Investments, at equity 82,855
Investments, at cost 31,771
Other investments 24,499
----------
Total Investments 139,125
----------
Current Assets:
Cash and cash equivalents 30,780
Accounts receivable, less reserve of $5,887 231,580
Other receivables 107,231
Fuel adjustment clause 2,679
Gas cost adjustment clause 89,991
Materials and supplies, at average cost 60,085
Electric production fuel, at average cost 18,837
Natural gas in storage 61,436
Prepayments and other 28,089
----------
Total Current Assets 630,708
----------
Other Assets:
Regulatory assets 211,513
Intangible assets, less accumulated provision
for amortization 68,175
Prepayments and other 135,358
----------
Total Other Assets 415,046
----------
TOTAL ASSETS $4,937,033
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shareholders' equity $1,264,788
Preferred stocks -
Northern Indiana Public Service Company:
Series without mandatory redemption provisions 81,123
Series with mandatory redemption provisions 58,841
Indianapolis Water Company:
Series without mandatory redemption provisions 4,497
Long-term debt, excluding amounts due within one year 1,667,925
----------
Total Capitalization 3,077,174
----------
Current Liabilities:
Current portion of long-term debt 54,621
Short-term borrowings 212,639
Accounts payable 226,751
Dividends declared on common and preferred stocks 30,784
Customer deposits 22,091
Taxes accrued 77,573
Interest accrued 19,124
Accrued employment costs 58,799
Other 47,930
----------
Total Current Liabilities 750,312
----------
Other:
Deferred income taxes 651,815
Deferred investment tax credits, being
amortized over life of related property 105,538
Deferred credits 73,715
Customer advances and contributions in aid
of construction 110,145
Accrued liability for postretirement benefits 132,919
Other noncurrent liabilities 35,415
----------
Total Other 1,109,547
----------
TOTAL CAPITALIZATION AND LIABILITIES $4,937,033
==========
<CAPTION>
CONSOLIDATED STATEMENT OF CAPITALIZATION
<S> <C>
Common shareholders' equity $1,264,788
----------
Preferred Stocks, Which Are Redeemable Solely
At Option of Issuer:
Northern Indiana Public Service Company -
Cumulative preferred stock - $100 par value
4-1/4% series - 209,118 shares outstanding 20,912
4-1/2% series - 79,996 shares outstanding 8,000
4.22% series - 106,198 shares outstanding 10,620
4.88% series - 100,000 shares outstanding 10,000
7.44% series - 41,890 shares outstanding 4,189
7.50% series - 34,842 shares outstanding 3,484
Premium on preferred stock 254
Cumulative preferred stock - no par value -
Adjustable Rate (6.00% at December 31, 1997) -
Series A (stated value - $50 per share),
473,285 shares outstanding 23,664
----------
81,123
----------
Redeemable Preferred Stocks, Subject to Mandatory
Redemption Requirements or Whose Redemption
Is Outside the Control of Issuer:
Northern Indiana Public Service Company -
Cumulative preferred stock - $100 par value -
8.85% series - 62,500 shares outstanding 6,250
7-3/4% series - 38,906 shares outstanding 3,891
8.35% series - 57,000 shares outstanding 5,700
Cumulative preferred stock - no par value -
6.50% series - 430,000 shares outstanding 43,000
Indianapolis Water Compnay -
Cumulative preferred stock - $100 par value -
Rates ranging from 4.005 to 5.00% -
44,966 shares outstanding 4,497
----------
63,338
----------
Long-term Debt 1,667,925
__________
TOTAL CAPITALIZATION $3,077,174
==========
<CAPTION>
CONSOLIDATED STATEMENT OF LONG-TERM DEBT
<S> <C>
Northern Indiana Public Service Company:
First mortgage bonds -
Series T, 7-1/2% - due April 1, 2002 39,500
Series NN, 7.10% - due July 1, 2017 55,000
----------
Total 94,500
----------
Pollution control notes and bonds -
Series A Note - City of Michigan City -
5.70% due October 1, 2003 18,000
Series 1988 Bonds - Jasper County -
Series A, B and C
3.81% weighted average at December 31, 1997,
due November 1, 2016 130,000
Series 1988 Bonds - Jasper County - Series D
3.78% weighted average at December 31, 1997,
due November 1, 2007 24,000
Series 1994 Bonds - Jasper County - Series A
4.25% at December 31, 1997, due August 1, 2010 10,000
Series 1994 Bonds - Jasper County - Series B
4.25% at December 31, 1997, due June 1, 2013 18,000
Series 1994 Bonds - Jasper County - Series C
4.25% at December 31, 1997, due April 1, 2019 41,000
----------
Total 241,000
----------
Medium-term Notes -
Issued at interest rates between 6.10% and
7.69%, with a weighted average interest
rate of 7.00% and various maturities
between April 5, 2000 and August 4, 2027 748,025
----------
Unamortized premium and discount on
long-term debt, net (4,029)
----------
Total Long-term Debt of
Northern Indiana Public Service Company 1,079,496
----------
Indianapolis Water Company:
First mortgage bonds -
Series 5.20% - due May 1, 2001 11,600
Series 8.00% - due Decmeber 15, 2001 3,000
Series 7 7/8% -due March 1, 2019 40,000
Series 9.83% - due June 15, 2019 5,000
Series 6.10% - due December 1, 2022 5,000
Series 8.19% - due December 1, 2022 10,000
Series 5.85% - due September 1, 2025 18,000
----------
Total Long-term Debt of
Indianapolis Water Company 92,600
----------
IWC Resources Corporation:
Senior Note Payable-6.31% due March 15, 2001 14,000
Variable Bank Loan-6.50% due August 2003 5,600
----------
Total Long-term Debt of
IWC Resources Corporation 19,600
----------
NIPSCO Capital Markets, Inc.:
Subordinated Debentures- Series A,
7.34%,due March 31, 2026 75,000
Senior Notes Payable-6.78%, due December 1, 2027 75,000
Medium-term Notes -
Issued at interest rates between 7.38% and
7.99%, with a weighted average interest
rate of 7.66% and various maturities
between April 1, 2004 and May 5, 2027 300,000
----------
Total Long-Term Debt of
NIPSCO Capital Markets, Inc. 450,000
----------
NIPSCO Development Company, Inc.:
Lake Erie Land Company - Notes Payable -
9.00%, due July 7, 2004 2,637
NDC Douglas Properties, Inc. - Notes Payable -
Interest rates between 6.72% and 8.15% with a
weighted average interest rate of 7.75% and
maturities through April 1, 2006 23,592
----------
Total Long-term Debt of
NIPSCO Development Company, Inc. 26,229
----------
TOTAL LONG-TERM DEBT,
EXCLUDING AMOUNTS DUE IN ONE YEAR $1,667,925
==========
</TABLE>
<TABLE>
<CAPTION>
A.1 NIPSCO INDUSTRIES, INC.
CONSOLIDATED INCOME STATEMENT
December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Gas $ 807,239
Electric 1,017,083
Water 60,743
Products and Services 701,476
----------
2,586,541
----------
Cost of Sales:
Gas costs 495,287
Fuel for electric generation 238,548
Power purchased 37,274
Products and Services 604,505
----------
1,375,614
----------
Operating Margin 1,210,927
----------
Operating Expenses and Taxes (except income):
Operation 390,253
Maintenance 76,552
Depreciation and amortization 249,804
Taxes (except income) 83,765
----------
800,374
----------
Operating Income 410,553
----------
Other Income (Deductions) 14,619
----------
Interest and Other Charges:
Interest on long-term debt 105,498
Other interest 10,391
Amortization of premium, reacquisition
premium, discount and expense on debt, net 4,718
Dividend requirements on preferred stocks
of subsidiaries 8,691
----------
129,298
----------
Income Taxes 105,025
----------
Net Income 190,849
Dividend Requirements on Preferred Shares 0
----------
Balance Available for Common Shareholders $ 190,849
==========
Average Common Shares Outstanding-Basic 123,849,126
===========
Basic Earnings Per Average Common Share $ 1.54
==========
Diluted Earnings Per Average Common Share $ 1.53
==========
Dividends Declared Per Common Share $ 0.915
==========
</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF COMMON SHAREHOLDERS' EQUITY
December 31, 1997
(Dollars in Thousands)
______________________________________
Additional
Common Paid-In
Total Shares Capital
============================== ========== ========== ==========
<S> <C> <C> <C>
Balance, December 31, 1996 $1,100,501 $ 870,930 $ 32,868
Net income 190,849
Dividends:
Common shares (114,303)
Treasury shares acquired (133,077)
Issued:
IWC Resources acquisition 207,417 55,008
Acquisition of minority interest 5,469 1,351
Employee stock purchase plan 697 424
Long-term incentive plan 5,004 118
Unrealized gain on
available for sale
securities 1,689
Amortization of unearned
compensation 2,099
Other (1,557) (1)
__________ __________ __________
Balance, December 31, 1997 $1,264,788 $ 870,930 $ 89,768
========== ========== ==========
<CAPTION>
(Dollars in Thousands)
______________________________________
Currency
Retained Treasury Translation
Earnings Shares Adjustment
============================== ========== ========== ==========
<S> <C> <C> <C>
Balance, December 31, 1995 $ 591,370 $ (392,995) $ (140)
Net income 190,849
Dividends:
Common shares (114,303)
Treasury shares acquired (133,077)
Issued:
IWC Resources acquisition 152,409
Acquisition of minority interest 4,118
Employee stock purchase plan 273
Long-term incentive plan 5,329
Unrealized gain on
available for sale
securities
Amortization of unearned
compensation
Other (126) (1,430)
_________ __________ __________
Balance, December 31, 1997 $ 667,790 $ (363,943) $ (1,570)
========= ========== ==========
<CAPTION>
(Dollars in
Thousands) Shares
____________ ________________________
Common Treasury
Other Shares Shares
============================== ========== ========== ==========
<S> <C> <C> <C>
Balance, December 31, 1995 $ (1,532) 147,784,218 (28,172,896)
Net income
Dividends:
Common shares
Treasury shares acquired (6,536,928)
Issued:
IWC Resources acquisition 10,580,764
Acquisition of minority interest 270,064
Employee stock purchase plan 34,376
Long-term incentive plan (443) 353,066
Unrealized gain on
available for sale
securities 1,689
Amortization of unearned
compensation 2,099
Other
__________ ___________ ___________
Balance, December 31, 1997 $ 1,813 147,784,218 (23,471,554)
========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
A.2 NIPSCO INDUSTRIES MANAGEMENT SERVICES COMPANY
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 4
Other receivables (6)
Accounts receivable - associated companies 4,482
Notes receivable - associated companies 3,050
----------
Total Current Assets 7,530
----------
Other Property and Investments:
Other property at cost less depreciation 1,422
----------
Total Other Property and Investments 1,422
----------
Other Assets:
Deferred charges and other 204
----------
Total Other Assets 204
----------
$ 9,156
TOTAL ASSETS ==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common Shares without par value $ 1
----------
Total Capitalization 1
----------
Current Liabilities:
Total accounts payable 4,056
Taxes accrued (23)
Taxes withheld payables (291)
Miscellaneous accrued liabilities 1,238
----------
Total Current Liabilities 4,980
----------
Other:
Deferred income taxes 30
Deferred credits 4,145
----------
Total Other 4,175
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 9,156
==========
</TABLE>
<TABLE>
<CAPTION>
A.2 NIPSCO INDUSTRIES MANAGEMENT SERVICES COMPANY
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.2 NIPSCO INDUSTRIES MANAGEMENT SERVICES COMPANY
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.3 HAMILTON HARBOUR INSURANCE SERVICES, LTD.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 4
---------
Total Current Assets 4
---------
TOTAL ASSETS $ 4
=========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings (4)
Retained earning - current year 0
----------
Total Capitalization (3)
----------
Current Liabilities:
Notes payable to associated companies 0
----------
Total Current Liabilities 0
----------
Noncurrent Liabilities:
Deferred credits 7
----------
Total Noncurrent Liabilities 7
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 4
==========
</TABLE>
<TABLE>
<CAPTION>
A.3 HAMILTON HARBOUR INSURANCE SERVICES, LTD.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Expenses:
Administrative and general $ (2)
----------
Total Operating Expenses (2)
----------
Income taxes 1
----------
NET INCOME (LOSS) $ 1
==========
</TABLE>
<TABLE>
<CAPTION>
A.3 HAMILTON HARBOUR INSURANCE SERVICES, LTD.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at beginning of the year $ (4)
Net Income $ 1
----------
BALANCE AT END OF YEAR $ (3)
==========
</TABLE>
<TABLE>
<CAPTION>
A.4 NI TELECOMM, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.4 NI TELECOMM, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.4 NI TELECOMM, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.5 CROSSROADS PIPELINE COMPANY
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Utility Plant:
Utility plant $ 34,551
Less - accumulated provision for depreciation
and amortization (2,827)
----------
Total Utility Plant 31,724
----------
Current Assets:
Cash and cash equivalents 2
Accounts receivable, less reserve 2,502
Prepayments and other 8
----------
Total Current Assets 2,512
----------
TOTAL ASSETS $ 34,236
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings (4,112)
Retained earnings - current year (1,415)
----------
Total Capitalization (5,526)
----------
Current Liabilities:
Total accounts payable 1,963
Taxes accrued 685
----------
Total Current Liabilities 2,648
----------
Noncurrent Liabilities:
Deferred income taxes 1,638
Deferred credits 81
Notes payable to associated companies 35,395
----------
Total Noncurrent Liabilities 37,114
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 34,236
==========
</TABLE>
<TABLE>
<CAPTION>
A.5 CROSSROADS PIPELINE COMPANY
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenue $ 4,338
----------
Operating Expenses and Taxes:
Operating expense 1,008
Administrative and general expenses 963
Depreciation and amortization 967
Taxes other than income 731
----------
Total Operating Expenses and Taxes 3,670
----------
Other Income (Deductions) 2
----------
Interest and other charges 2,974
----------
Income tax expense (889)
----------
NET INCOME (LOSS) $ (1,415)
==========
</TABLE>
<TABLE>
<CAPTION>
A.5 CROSSROADS PIPELINE COMPANY
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ (4,112)
Net Income (1,415)
----------
BALANCE AT END OF YEAR $ (5,527)
==========
</TABLE>
<TABLE>
<CAPTION>
A.6 NIPSCO CAPITAL MARKETS, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 24
Accounts receivable - associated companies 3,437
Notes receivable - associated companies 494,480
Prepayments 26
----------
Total Current Assets 497,967
----------
Other Assets:
Deferred charges and other 5,223
----------
Total Other Assets 5,223
----------
TOTAL ASSETS $ 503,190
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1,000
Retained earnings 4,379
Retained earnings - current year 2,355
Long-term debt bonds 75,000
Long-term debt other 375,000
----------
Total Capitalization 457,734
----------
Current Liabilities:
Commercial paper 17,000
Notes payable 20,100
Total accounts payable 1,088
Interest accrued 7,267
----------
Total Current Liabilities 45,455
----------
Noncurrent Liabilities:
Deferred income taxes 1
----------
Total Noncurrent Liabilities 1
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 503,190
==========
</TABLE>
<TABLE>
<CAPTION>
A.6 NIPSCO CAPITAL MARKETS, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 0
----------
Total Operating Revenues 0
----------
Operating Expenses and Taxes:
Administrative and general expenses 179
Taxes other than income 1
----------
Total Operating Expenses 180
----------
Other Income (Deductions):
Interest income 35,734
----------
Total Other Income (Deductions) 35,734
----------
Interest and other charges 31,763
----------
Income tax expense 1,436
----------
NET INCOME (LOSS) $ 2,355
==========
</TABLE>
<TABLE>
<CAPTION>
A.6 NIPSCO CAPITAL MARKETS, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 4,379
Net Income 2,355
----------
BALANCE AT END OF YEAR $ 6,734
==========
</TABLE>
<TABLE>
<CAPTION>
A.7 NEM ACQUISITION CORPORATION
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Accounts receivable - associated companies $ 267
----------
Total Current Assets 267
----------
Property and Investments:
Investments at equity (486)
----------
Total Other Property and Investments (486)
----------
Other Assets:
Deferred charges and other 5,498
----------
Total Other Assets 5,498
----------
TOTAL ASSETS $ 5,279
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings - current year (438)
----------
Total Capitalization (437)
----------
Current Liabilities:
Accounts payable 5,716
----------
Total Current Liabilities 5,716
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 5,279
==========
</TABLE>
<TABLE>
<CAPTION>
A.7 NEM ACQUISITION CORPORATION
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 0
----------
Total Operating Revenues 0
----------
Operating Expenses and Taxes:
Depreciation and amortization 214
----------
Total Operating Expenses and Taxes 214
----------
Other Income (Deductions):
Investment income (loss) (486)
----------
Total Other Income (Deductions) (486)
----------
Income tax expense (262)
----------
NET INCOME (LOSS) $ (438)
==========
</TABLE>
<TABLE>
<CAPTION>
A.7 NEM ACQUISITION CORPORATION
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 0
Net Income (Loss) (438)
----------
BALANCE AT END OF YEAR $ (438)
==========
</TABLE>
<TABLE>
<CAPTION>
A.8 IWC RESOURCES CORPORATION
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 27
Other accounts receivable 128
Accounts receivable - associated companies 13,286
----------
Total Current Assets 13,441
----------
Other Property and Investments:
Other property at cost less depreciation 1,120
Investments at equity 134,679
Other investments 6
----------
Total Other Property and Investments 135,805
----------
Other Assets:
Deferred charges and other 25,177
----------
Total Other Assets 25,177
----------
TOTAL ASSETS $ 174,423
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 102,849
Retained earnings 12,082
Retained earnings - current year 12,637
Long-term debt other 19,600
----------
Total Capitalization 147,168
----------
Current Liabilities:
Obligations due within one year 1,000
Accounts payable 28,065
Taxes accrued (2,721)
Interest accrued 332
Accrued employment costs 1,471
Taxes withheld payables 3
Miscellaneous accrued liabilities 28
----------
Total Current Liabilities 28,178
----------
Noncurrent Liabilities:
Deferred income taxes (1,362)
Deferred credits 418
Postretirement benefits accrued 21
----------
Total Noncurrent Liabilities (923)
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 174,423
==========
</TABLE>
<TABLE>
<CAPTION>
A.8 IWC RESOURCES CORPORATION
INCOME STATEMENT *
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 76
----------
Total Operating Revenues 76
----------
Operating Expenses and Taxes(except income):
Administrative and general expenses 1,424
Depreciation and amortization 1,015
Taxes other than income 38
----------
Total Operating Expenses and Taxes(except income) 2,477
----------
Other Income (Deductions):
Non-operating income (716)
----------
Total Other Income (Deductions) (716)
----------
Interest and other charges 962
----------
Income tax expense (1,202)
----------
Net Income (Loss)before subsidiaries (2,877)
----------
Subsidiary gain(loss) 15,514
----------
NET INCOME (LOSS) $ 12,637
==========
*Income Statement reflects income activity for April 1997 through December 1997.
</TABLE>
<TABLE>
<CAPTION>
A.8 IWC RESOURCES CORPORATION
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 12,082
Net Income* 12,514
----------
BALANCE AT END OF YEAR $ 24,719
==========
*Net income is for April 1997 through December 1997.
</TABLE>
<TABLE>
<CAPTION>
A.9 INDIANAPOLIS WATER COMPANY
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Utility Plant:
Utility plant $ 440,910
Less-accumulated provision for depreciation (92,055)
----------
Total Utility Plant 348,855
----------
Current Assets:
Cash and cash equivalents 940
Accounts receivable - less reserve 33,450
Material and supplies at average cost 2,480
Prepayments 227
----------
Total Current Assets 37,097
----------
Other Property and Investments:
Other property at cost 32
----------
Total Other Property and Investments 32
----------
Other Assets:
Deferred charges and other 15,369
----------
Total Other Assets 15,369
----------
TOTAL ASSETS $ 401,353
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 17,004
Additional paid-in-capital 38,996
Retained earnings 39,960
Preferred stock-without mandatory redemption 4,497
Long-term debt other 92,600
----------
Total Capitalization 193,057
----------
Current Liabilities:
Obligations due within one year 46,480
Total accounts payable 12,599
Dividends declared 51
Customer deposits 1,179
Taxes accrued 6,768
Interest accrued 1,947
Accrued employment costs 124
Other accruals 1,871
----------
Total Current Liabilities 71,019
----------
Noncurrent Liabilities:
Deferred income taxes 34,641
Deferred investment tax credits 4,516
Customer advances 47,901
Deferred credits 1,954
Postretirement accrued benefits 8,446
Contributions in aid of construction 39,819
----------
Total Noncurrent Liabilities 137,277
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 401,353
==========
</TABLE>
<TABLE>
<CAPTION>
A.9 INDIANAPOLIS WATER COMPANY
INCOME STATEMENT*
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Water revenue $ 60,141
----------
Total Operating Revenues 60,141
----------
Operating Expenses and Taxes(except income):
Operation 20,200
Administrative and general expenses 9,024
Depreciation and amortization 5,223
Taxes (except income) 4,272
----------
Total Operating Expenses and Taxes(except income) 38,719
----------
Other Income(Deductions):
Non-operating income 1,464
Taxes on other income (546)
----------
Total Other Income (Deductions) 918
----------
Interest and other charges 6,890
----------
Income tax expense 6,530
----------
NET INCOME (LOSS) $ 8,920
==========
*Income statement reflects activity for April 1997 through December 31, 1997.
</TABLE>
<TABLE>
<CAPTION>
A.9 INDIANAPOLIS WATER COMPANY
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 31,040
Net Income* 8,920
----------
BALANCE AT END OF YEAR $ 39,960
==========
*Net income is for April 1997 through December 31, 1997.
</TABLE>
<TABLE>
<CAPTION>
A.10 HARBOUR WATER CORPORATION
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Utility Plant:
Utility plant $ 6,722
Less-accumulated provision for depreciation (1,218)
----------
Total Utility Plant 5,504
----------
Current Assets:
Accounts receivable - less reserve 921
----------
Total Current Assets 921
----------
Other Assets:
Deferred charges and other 320
----------
Total Other Assets 320
----------
TOTAL ASSETS $ 6,745
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 400
Retained earnings 1,764
----------
Total Capitalization 2,164
----------
Current Liabilities:
Total accounts payable 1,331
Customer deposits 6
Taxes accrued 163
Interest accrued 1
Other accruals 3
----------
Total Current Liabilities 1,504
----------
Noncurrent Liabilities:
Deferred income taxes 46
Deferred investment tax credits 49
Customer advances 1,902
Contributions in aid of contruction 1,080
----------
Total Noncurrent Liabilities 3,077
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 6,745
==========
</TABLE>
<TABLE>
<CAPTION>
A.10 HARBOUR WATER CORPORATION
INCOME STATEMENT*
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Water revenue $ 691
----------
Total Operating Revenues 691
----------
Operating Expenses and Taxes(except income):
Operations 215
Administrative and general expenses 102
Depreciation and amortization 87
Taxes except income 62
----------
Total Operating Expenses and Taxes(except income) 466
----------
Income tax expense 105
----------
NET INCOME (LOSS) $ 120
==========
*Income statement reflects activity for April 1997 through December 1997.
</TABLE>
<TABLE>
<CAPTION>
A.10 HARBOUR WATER CORPORATION
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 1,644
Net Income* 120
----------
BALANCE AT END OF YEAR $ 1,764
==========
*Net income is for April 1997 through December 1997.
</TABLE>
<TABLE>
<CAPTION>
A.11 UTILITY DATA CORPORATION
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 165
Customer accounts receivable 26
Other accounts receivable 1
Accounts receivable - associated companies 12,240
Prepayments 128
----------
Total Current Assets 12,560
----------
Other Property and Investments:
Other property at cost less depreciation 502
----------
Total Other Property and Investments 502
----------
TOTAL ASSETS $ 13,062
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 154
Retained earnings 5,748
Retained earnings - current year 810
----------
Total Capitalization 6,712
----------
Current Liabilities:
Total accounts payable 3,021
Taxes accrued 490
Accrued employment costs 976
Taxes withheld payables (13)
Miscellaneous accrued liabilities 204
----------
Total Current Liabilities 4,678
----------
Noncurrent Liabilities:
Deferred income taxes 520
Deferred credits 315
Postretirement benefits accrued 837
----------
Total Noncurrent Liabilities 1,672
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 13,062
==========
</TABLE>
<TABLE>
<CAPTION>
A.11 UTILITY DATA CORPORATION
INCOME STATEMENT*
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 5,480
----------
Total Operating Revenues 5,480
----------
Operating Expenses and Taxes(except income):
Operation 24
Administrative and general expenses 3,842
Depreciation and amortization 117
Taxes (except income) 156
----------
Total Operating Expenses and Taxes(except income) 4,139
----------
Interest and other charges 10
----------
Income tax expense 521
----------
NET INCOME (LOSS) $ 810
==========
*Income statement reflects activity for April 1997 through December 1997.
</TABLE>
<TABLE>
<CAPTION>
A.11 UTILITY DATA CORPORATION
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 5,748
Net Income* 810
----------
BALANCE AT END OF YEAR $ 6,558
==========
*Net income is for April 1997 through December 1997.
</TABLE>
<TABLE>
<CAPTION>
A.12 IWC SERVICES, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Customer accounts receivable $ 13
Accounts receivable - associated companies 226
----------
Total Current Assets 239
----------
Other Assets:
Deferred charges and other 3,380
----------
Total Other Assets 3,380
----------
TOTAL ASSETS $ 3,619
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 50
Retained earnings 1,606
Retained earnings - current year 578
----------
Total Capitalization 2,234
----------
Current Liabilities:
Total accounts payable 763
Taxes accrued 370
----------
Total Current Liabilities 1,133
----------
Noncurrent Liabilities:
Deferred income taxes 38
Deferred credits 214
----------
Total Noncurrent Liabilities 252
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 3,619
==========
</TABLE>
<TABLE>
<CAPTION>
A.12 IWC SERVICES, INC.
INCOME STATEMENT*
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 1,118
----------
Total Operating Revenues 1,118
----------
Operating Expenses and Taxes(except income):
Administrative and general expenses 173
----------
Total Operating Expenses and Taxes(except income) 173
----------
Income tax expense 367
----------
NET INCOME (LOSS) $ 578
==========
*Income statement reflects activity for April 1997 through December 1997.
</TABLE>
<TABLE>
<CAPTION>
A.12 IWC SERVICES, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 1,606
Net Income* 578
----------
BALANCE AT END OF YEAR $ 2,184
==========
*Net Income is for April 1997 through December 1997.
</TABLE>
<TABLE>
<CAPTION>
A.13 WHITE RIVER ENVIRONMENTAL PARTNERSHIP
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.13 WHITE RIVER ENVIRONMENTAL PARTNERSHIP
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.13 WHITE RIVER ENVIRONMENTAL PARTNERSHIP
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.14 WATERWAY HOLDINGS, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Special funds $ 10 355
Other accounts receivable 318
Accounts receivable - associated companies 163
----------
Total Current Assets 10,836
----------
TOTAL ASSETS $ 10,836
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 4,749
Retained earnings 1,559
Retained earnings - current year 63
----------
Total Capitalization 6,371
----------
Current Liabilities:
Total accounts payable 3,455
Taxes accrued (62)
Interest accrued 3
----------
Total Current Liabilities 3,396
----------
Noncurrent Liabilities:
Deferred income taxes (156)
Deferred credits 1,225
----------
Total Noncurrent Liabilities 1,069
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 10,836
==========
</TABLE>
<TABLE>
<CAPTION>
A.14 WATERWAY HOLDINGS, INC.
INCOME STATEMENT*
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 186
----------
Total Operating Revenues 186
----------
Cost of Sales:
Cost of land sales 55
----------
Total Cost of Sales 55
----------
Operating Margin 131
----------
Operating Expenses and Taxes(except income):
Administrative and general expenses 1
Taxes except income 6
----------
Total Operating Expenses and Taxes(except income) 7
----------
Other Income(Deductions) 14
----------
Total Other Income (Deductions) 14
----------
Interest and other charges 34
----------
Income tax expense 41
----------
NET INCOME (LOSS) $ 63
==========
*Income statement reflects activity for April 1997 through December 1997.
</TABLE>
<TABLE>
<CAPTION>
A.14 WATERWAY HOLDINGS, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 1,559
Net Income* 63
----------
BALANCE AT END OF YEAR $ 1,622
==========
*Net income is for April 1997 through December 1997.
</TABLE>
<TABLE>
<CAPTION>
A.15 SM&P UTILITY RESOURCES, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 160
Customer accounts receivable 6,162
Other accounts receivable 97
Prepayments 141
----------
Total Current Assets 6,560
----------
Other Property and Investments:
Other property at cost less depreciation 6,641
----------
Total Other Property and Investments 6,641
----------
Other Assets:
Deferred charges and other 1,060
----------
Total Other Assets 1,060
----------
TOTAL ASSETS $ 14,261
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings 1,234
Retained earnings - current year 1,382
----------
Total Capitalization 2,617
----------
Current Liabilities:
Obligation due with one year 1,050
Total accounts payable 4,637
Taxes accrued (1,070)
Other accruals 5,576
Taxes withheld payables 75
Miscellaneous accrued liabilities 794
----------
Total Current Liabilities 11,062
----------
Noncurrent Liabilities:
Deferred income taxes 582
----------
Total Noncurrent Liabilites 582
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 14,261
==========
</TABLE>
<TABLE>
<CAPTION>
A.15 SM&P UTILITY RESOURCES, INC.
INCOME STATEMENT*
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Locate revenue $ 48,354
----------
Total Operating Revenues 48,354
----------
Cost of Sales:
Cost of sales 30,920
----------
Total Cost of Sales 30,920
----------
Operating Margin 17,434
----------
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 12,399
Depreciation and amortization 1,803
Taxes (except income) 663
----------
Total Operating Expenses and Taxes(Except Income) 14,865
----------
Other Income (Deductions) 65
----------
Interest and other charges 286
----------
Income tax expense 966
----------
NET INCOME (LOSS) $ 1,382
==========
*Income statement reflects activity for April 1997 through December 1997.
</TABLE>
<TABLE>
<CAPTION>
A.15 SM&P UTILITY RESOURCES, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 1,234
Net Income* 1,382
----------
BALANCE AT END OF YEAR $ 2,616
==========
*Net income is for April 1997 through December 1997.
</TABLE>
<TABLE>
<CAPTION>
A.16 MILLER PIPELINE CORPORATION
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 1,727
Customer accounts receivable 7,281
Other accounts receivable 41
Reserve-customer accounts (25)
Material and supplies at average cost 938
Prepayments 189
Job work in progress 1,556
----------
Total Current Assets 11,707
----------
Other Property and Investments:
Other property at cost less depreciation 18,817
----------
Total Other Property and Investments 18,817
----------
TOTAL ASSETS $ 30,524
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Additional paid-in-capital $ 10,939
Retained earnings 4,040
Retained earnings - current year 3,641
----------
Total Capitalization 18,620
----------
Current Liabilities:
Obligations due within one year 339
Total accounts payable 4,365
Taxes accrued 2,718
Accrued employment costs 980
Other accruals 819
Taxes withheld payables 177
----------
Total Current Liabilities 9,398
----------
Noncurrent Liabilities:
Deferred income taxes 2,506
----------
Total Noncurrent Liabilities 2,506
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 30,524
==========
</TABLE>
<TABLE>
<CAPTION>
A.16 MILLER PIPELINE CORPORATION
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Pipeline construction revenue $ 47,174
----------
Total Operating Revenues 47,174
----------
Cost of Sales:
Pipeline construction expense 36,183
----------
Total Cost of Sales 36,183
----------
Operating Margin 10,991
----------
Operating Expenses and Taxes(Except Income):
Operation 665
Administrative and general expenses 2,355
Depreciation and amortization 1,787
----------
Total Operating Expenses and Taxes(Except Income) 4,807
----------
Other Income (Deductions) 209
----------
Interest and other charges 83
----------
Income tax expense 2,669
----------
NET INCOME (LOSS) $ 3,641
==========
*Income statement reflects income for April 1997 through December 1997.
</TABLE>
<TABLE>
<CAPTION>
A.16 MILLER PIPELINE CORPORATION
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 4,040
Net Income* 3,641
----------
BALANCE AT END OF YEAR $ 7,681
==========
*Net income is for April 1997 through December 1997.
</TABLE>
<TABLE>
<CAPTION>
A.17 PRIMARY ENERGY, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ (1)
Other accounts receivable 980
Accounts receivable - associated companies 620
----------
Total Current Assets 1,599
----------
Other Property and Investments:
Other property at cost less depreciation 72
Investments at equity 8,795
Investments at cost 3,000
----------
Total Other Property and Investments 11,867
----------
Other Assets:
Deferred charges and other 8
----------
Total Other Assets 8
----------
TOTAL ASSETS $ 13,474
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings 4,421
Retained earning - current year 6,614
----------
Total Capitalization 11,036
----------
Current Liabilities:
Total accounts payable 161
Taxes accrued (3)
Taxes withheld payables (57)
----------
Total Current Liabilities 101
----------
Noncurrent Liabilities:
Notes payable to associated companies 1,021
Deferred income taxes 777
Deferred credits 539
----------
Total Noncurrent Liabilities 2,337
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 13,474
==========
</TABLE>
<TABLE>
<CAPTION>
A.17 PRIMARY ENERGY, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 1,830
Total Operating Revenue ----------
1,830
----------
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 2,937
Depreciation and amortization 22
Taxes (except income) 53
----------
Total Operating Expenses and Taxes(Except Income) 3,012
----------
Other Income (Deductions) 307
----------
Interest and other charges 127
----------
Income tax expense (376)
----------
Income(Loss) before subsidiaries (626)
----------
Subsidiary gain(loss) 7,239
----------
NET INCOME (LOSS) $ 6,613
==========
</TABLE>
<TABLE>
<CAPTION>
A.17 PRIMARY ENERGY, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at beginning of year $ 4,421
Net Income 6,613
----------
BALANCE AT END OF YEAR $ 11,034
==========
</TABLE>
<TABLE>
<CAPTION>
A.18 HARBOR COAL COMPANY
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 19
Accounts receivable - associated companies 490
Prepayments 84
----------
Total Current Assets 593
----------
Other Property and Investments:
Investments at equity 870
----------
Total Other Property and Investments 870
----------
TOTAL ASSETS $ 1,463
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings (16)
Retained earnings - current year 1,785
----------
Total Capitalization 1,770
----------
Current Liabilities:
Total accounts payable 1,397
----------
Total Current Liabilities 1,397
----------
Noncurrent Liabilities:
Notes payable to associated companies 1,004
Deferred income taxes (2,708)
----------
Total Noncurrent Liabilities (1,704)
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 1,463
==========
</TABLE>
<TABLE>
<CAPTION>
A.18 HARBOR COAL COMPANY
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 0
----------
Total Operating Revenues 0
----------
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 175
Taxes (except income) 62
----------
Total Operating Expenses and Taxes(Except Income) 237
----------
Other Income (Deductions) 3,205
----------
Interest and other charges 71
----------
Income tax expense 1,112
----------
NET INCOME (LOSS) $ 1,785
==========
</TABLE>
<TABLE>
<CAPTION>
A.18 HARBOR COAL COMPANY
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ (16)
Net Income 1,785
----------
BALANCE AT END OF YEAR $ 1,769
==========
</TABLE>
<TABLE>
<CAPTION>
A.19 LAKESIDE ENERGY CORPORATION
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
ASSETS
Current Assets:
Other accounts receivable $ 1,604
Accounts receivable-associated companies 15
Prepayments 1,264
----------
Total Current Assets 2,883
----------
Other Assets:
Deferred charges and other 11,504
----------
Total Other Assets 11,504
----------
TOTAL ASSETS $ 14,387
==========
CAPITALIZATION AND LIABILITIES
Capitalization:
Common shares without par value $ 1
Retained earnings-current year 2,027
----------
Total Capitalization 2,028
----------
Current Liabilities:
Total accounts payable 798
Taxes accrued 310
----------
Total Current Liabilities 1,108
----------
Noncurrent Liabilities:
Notes payable to associated companies 9,844
Deferred income taxes 1,407
----------
Total Noncurrent Liabilities 11,251
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 14,387
==========
</TABLE>
<TABLE>
<CAPTION>
A.19 LAKESIDE ENERGY CORPORATION
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 8,136
----------
Total Operating Revenues 8,136
----------
Operating Expenses and Taxes(Except Income):
Lease expense 3,556
Administrative and general expenses 338
Taxes (except income) 408
----------
Total Operating Expenses and Taxes(Except Income) 4,302
----------
Other Income (Deductions) 8
----------
Interest and other charges 539
----------
Income tax expense 1,276
----------
NET INCOME (LOSS) $ 2,027
==========
</TABLE>
<TABLE>
<CAPTION>
A.19 LAKESIDE ENERGY CORPORATION
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 0
Net Income 2,027
----------
BALANCE AT END OF YEAR $ 2,027
==========
</TABLE>
<TABLE>
<CAPTION>
A.20 NORTH LAKE ENERGY CORPORATION
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 11
Other accounts receivable 726
Accounts receivable - associated companies 763
Notes receivable - associated companies 6,223
Prepayments 33
----------
Total Current Assets 7,756
----------
TOTAL ASSETS $ 7,756
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings - 1,567
Retained earnings - current year 2,374
----------
Total Capitalization 3,942
----------
Current Liabilities:
Total accounts payable 1,161
Taxes accrued 648
----------
Total Current Liabilities 1,809
----------
Noncurrent Liabilities:
Deferred income taxes 2,005
----------
Total Noncurrent Liabilities 2,005
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 7,756
==========
</TABLE>
<TABLE>
<CAPTION>
A.20 NORTH LAKE ENERGY CORPORATION
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 7,787
---------
Total Operating Revenue 7,787
---------
Operating Expenses and Taxes(Except Income):
Lease expense 3,141
Administrative and general expenses 118
Taxes (except income) 886
---------
Total Operating Expenses and Taxes(except income) 4,145
---------
Other Income (Deductions) 234
---------
Income tax expense 1,502
---------
NET INCOME (LOSS) $ 2,374
=========
</TABLE>
<TABLE>
<CAPTION>
A.20 NORTH LAKE ENERGY CORPORATION
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance beginning of year $ 1,567
Net Income 2,374
---------
BALANCE AT END OF YEAR $ 3,941
=========
</TABLE>
<TABLE>
<CAPTION>
A.21 PORTSIDE ENERGY CORPORATION
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 41
Other accounts receivable 847
Accounts receivable-associated companies 1,137
Prepayments 3,300
----------
Total Current Assets 5,325
----------
Other Property and Investments:
Other property at cost less depreciation 3
----------
Total Other Property and Investments 3
----------
Other Assets:
Deferred charges and other 100
----------
Total Other Assets 100
----------
TOTAL ASSETS $ 5,428
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common Shares without par value $ 1
Retained earnings - current year 1,053
----------
Total Capitalization 1,054
----------
Current Liabilities:
Total accounts payable 175
Taxes accrued 97
----------
Total Current Liabilities 272
----------
Noncurrent Liabilities:
Notes payable to associated companies 1,850
Deferred income taxes 2,252
----------
Total Noncurrent Liabilities 4,102
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 5,428
==========
</TABLE>
<TABLE>
<CAPTION>
A.21 PORTSIDE ENERGY CORPORATION
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 2,872
---------
Total Operating Revenue 2,872
---------
Operating Expenses and Taxes(Except Income):
Lease expense 237
Administrative and general expenses 669
Depreciation and amortization 0
Taxes (except income) 132
---------
Total Operating Expenses and Taxes(except income) 1,038
---------
Other Income (Deductions) 2
---------
Interest and other charges 60
---------
Income tax expense 723
---------
NET INCOME (LOSS) $ 1,053
=========
</TABLE>
<TABLE>
<CAPTION>
A.21 PORTSIDE ENERGY CORPORATION
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance beginning of year $ 0
Net Income 1,053
---------
BALANCE AT END OF YEAR $ 1,053
=========
</TABLE>
<TABLE>
<CAPTION>
A.22 COKENERGY, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 3
Prepayments 102,584
----------
Total Current Assets 102,587
----------
$ 102,587
TOTAL ASSETS ==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common Shares without par value $ 1
----------
Total Capitalization 1
----------
Current Liabilities:
Total accounts payable 569
Customer deposits 30,000
----------
Total Current Liabilities 30,569
----------
Noncurrent Liabilities:
Notes payable to associated companies 72,017
----------
Total Noncurrent Liabilities 72,017
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 102,587
==========
</TABLE>
<TABLE>
<CAPTION>
A.22 COKENERGY, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.22 COKENERGY, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.23 NORTHERN INDIANA PUBLIC SERVICE COMPANY
CONSOLIDATED BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Utility Plant, At Original Cost (Including
Construction Work in Progress of $140,534:
Electric $4,066,568
Gas 1,223,693
Common 351,350
---------
5,641,611
Less - accumulated provision for
depreciation and amortization 2,613,352
----------
Total Utility Plant 3,028,259
----------
Other Property and Investments 1,215
----------
Current Assets:
Cash and cash equivalents 9,800
Accounts receivable, less reserve of $4,524 101,188
Fuel adjustment clause 2,679
Gas cost adjustment clause 86,520
Materials and supplies at average cost 53,666
Electric production fuel, at average cost 18,837
Natural gas in storage, at last-in, first-out cost 45,880
Prepayments and other 23,128
----------
Total Current Assets 341,698
----------
Other Assets:
Regulatory assets 205,965
Prepayments and other 97,777
----------
Total Other Assets 303,742
----------
TOTAL ASSETS $3,674,914
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shareholder's equity $1,018,303
Preferred stocks -
Series without mandatory redemption provisions 81,123
Series with mandatory redemption provisions 58,841
Long-term debt 1,079,496
----------
Total Capitalization 2,237,763
----------
Current Liabilities:
Obligations due within one year -
Commercial paper 71,500
First mortgage bonds -
Series P, 6.7/8% - due October 1, 1998 14,509
Medium-term notes -
Issued at interest rates of 5.83% and 5.95%
with a weighted average interest rate of
5.86% and maturities of April 6, 1998 and
April 13, 1998 35,000
Notes payable -
Issued at interest rates between 6.03% and
6.38% with a weighted average interest rate
of 5.86% and various maturities between
January 9, 1998 and January 23, 1998 47,500
Sinking funds due within one year 1,500
----------
170,009
----------
Other Current Liabilities -
Accounts payable 127,742
Dividends declared on common and preferred stocks 56,198
Customer deposits 20,236
Taxes accrued 88,852
Interest accrued 7,646
Accrued employment costs 51,095
Other accruals 34,051
----------
385,820
----------
Total Current Liabilities 555,829
----------
Other:
Deferred income taxes 602,936
Deferred investment tax credits, being
amortized over life of related property 99,853
Deferred credits 53,323
Accrued liability for postretirement benefits 115,177
Other noncurrent liabilities 10,033
----------
Total Other 881,322
----------
TOTAL CAPITALIZATION AND LIABILITIES $3,674,914
==========
<CAPTION>
CONSOLIDATED STATEMENT OF CAPITALIZATION
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Common Shareholder's Equity:
Common shares - without par value - authorized
75,000,000 shares - issued and outstanding
73,282,258 shares $ 859,488
Additional paid-in capital 12,522
Retained earnings 146,293
----------
Total Common Shareholder's Equity 1,018,303
----------
Preferred Stocks, Which Are Redeemable
Solely at Option of Northern Indiana
Public Service Company:
Cumulative preferred stock - $100 par value -
4-1/4% series - 209,118 shares outstanding 20,912
4-1/2% series - 79,996 shares outstanding 8,000
4.22% series - 106,198 shares outstanding 10,620
4.88% series - 100,000 shares outstanding 10,000
7.44% series - 41,890 shares outstanding 4,189
7.50% series - 34,842 shares outstanding 3,484
Premium on preferred stock 254
Cumulative preferred stock - no par value
Adjustable Rate (6.00% at December 31, 1998) -
Series A (stated value - $50 per share),
473,285 shares outstanding 23,664
----------
81,123
----------
Redeemable Preferred Stocks, Subject to
Mandatory Redemption Requirements or
Whose Redemption Is Outside the Control of
Northern Indiana Public Service Company:
Cumulative preferred stock - $100 par value -
8.85% series - 62,500 shares outstanding 6,250
7-3/4% series - 38,906 shares outstanding 3,891
8.35% series - 57,000 shares outstanding 5,700
Cumulative preferred stock - no par value -
6.50% series - 430,000 shares outstanding 43,000
----------
58,841
----------
Long-term Debt, excluding amounts due within one year 1,079,496
----------
TOTAL CAPITALIZATION $2,237,763
==========
<CAPTION>
CONSOLIDATED STATEMENT OF LONG-TERM DEBT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
First Mortgage Bonds -
Series T, 7-1/2% - due April 1, 2002 $ 39,500
Series NN, 7.10% - due July 1, 2017 55,000
----------
94,500
----------
Pollution Control Notes and Bonds -
Series A Note - City of Michigan City -
5.70% due October 1, 2003 18,000
Series 1988 Bonds - Jasper County -
Series A, B, and C,
3.81% weighted average at December 31, 1998,
due November 1, 2016 130,000
Series 1988 Bonds - Jasper County - Series D,
3.78% weighted average at December 31, 1998,
due November 1, 2007 24,000
Series 1994 Bonds - Jasper County - Series A,
4.25% at December 31, 1998, due August 1, 2010 10,000
Series 1994 Bonds - Jasper County - Series B,
4.25% at December 31, 1998, due June 1, 2013 18,000
Series 1994 Bonds - Jasper County - Series C,
4.25% at December 31, 1997, due April 1, 2019 41,000
----------
241,000
----------
Medium-term Notes -
Issued at interest rates between 6.10% and 7.69%,
with a weighted average interest rate of 7.00%
with various maturities between April 5, 2000
and August 4, 2027 748,025
----------
Unamortized premium and discount on long-term
debt, net (4,029)
----------
TOTAL LONG-TERM DEBT, EXCLUDING
AMOUNTS DUE WITHIN ONE YEAR $1,079,496
==========
</TABLE>
<TABLE>
<CAPTION>
A.23 NORTHERN INDIANA PUBLIC SERVICE COMPANY
CONSOLIDATED STATEMENT OF INCOME
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Gas $ 735,299
Electric 1,017,083
----------
1,752,382
----------
Cost of Energy:
Gas costs 452,436
Fuel for electric generation 238,548
Power purchased 37,274
----------
728,258
----------
Operating Margin 1,024,124
----------
Operating Expenses and Taxes (except income):
Operation 269,275
Maintenance 68,853
Depreciation and amortization 223,025
Taxes (except income) 71,752
----------
632,905
----------
Operating Income Before Utility Income Taxes 391,219
----------
Utility Income Taxes 110,099
----------
Operating Income 281,120
----------
Other Income (Deductions) (3,659)
----------
Interest:
Interest on long-term debt 69,427
Other interest 7,574
Allowance for borrowed funds used during
construction and carrying charges (354)
Amortization of premium, reacquisition
premium, discount, and expense on debt, net 4,194
----------
80,841
----------
Net Income 196,620
Dividend Requirements on Preferred Stocks 8,539
----------
Balance Available for Common Shares $ 188,081
==========
Common Dividends Declared $ 187,775
==========
</TABLE>
<TABLE>
<CAPTION>
A.23 NORTHERN INDIANA PUBLIC SERVICE COMPANY
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 145,987
Add:
Net Income 196,620
Deduct:
Dividends on cumulative preferred stock 8,539
Common share dividends 187,775
----------
Balance at End of Year $ 146,293
==========
</TABLE>
<TABLE>
<CAPTION>
A.24 NIPSCO EXPLORATION COMPANY, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 246
Accounts receivable - associated companies 2,304
----------
Total Current Assets 2,550
----------
TOTAL ASSETS $ 2,550
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1,400
Retained earnings 748
Retained earnings - current year 194
----------
Total Capitalization 2,342
----------
Current Liabilities:
Total accounts payable 77
----------
Total Current Liabilities 77
----------
Noncurrent Liabilities:
Notes payable to associated companies 125
Deferred income taxes 6
----------
Total Noncurrent Liabilities 131
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 2,550
==========
</TABLE>
<TABLE>
<CAPTION>
A.24 NIPSCO EXPLORATION COMPANY, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 54
----------
Total Revenues 54
----------
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 24
----------
Total Operating Expenses and Taxes(Except Income) 24
----------
Other Income (Deductions) 270
----------
Interest and other charges 1
----------
Income tax expense 105
----------
NET INCOME (LOSS) $ 194
==========
</TABLE>
<TABLE>
<CAPTION>
A.24 NIPSCO EXPLORATION COMPANY, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 748
Net Income 194
----------
BALANCE AT END OF YEAR $ 942
==========
</TABLE>
<TABLE>
<CAPTION>
A.25 SHORE LINE SHOPS, INCORPORATED
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 89
Accounts receivable - associated companies 651
----------
Total Current Assets 740
----------
Other Property and Investments:
Other property at cost less depreciation 17
Investments at cost 867
----------
Total Other Property and Investments 884
----------
TOTAL ASSETS $ 1,624
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 73
Retained earnings (2,265)
Retained earnings - current year (135)
----------
Total Capitalization (2,327)
----------
Current Liabilities:
Total accounts payable 2,382
Taxes accrued (5)
Taxes withheld payables 2
----------
Total Current Liabilities 2,379
----------
Noncurrent Liabilities:
Notes payable to associated companies 1,531
Deferred income taxes 41
----------
Total Noncurrent Liabilities 1,572
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 1,624
==========
</TABLE>
<TABLE>
<CAPTION>
A.25 SHORE LINE SHOPS, INCORPORATED
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ (29)
----------
Total Revenues (29)
----------
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 36
Taxes (except income) 29
----------
Total Operating Expenses and Taxes(Except Income) 65
----------
Interest and other charges 130
----------
Income tax expense (89)
----------
NET INCOME (LOSS) $ (135)
==========
</TABLE>
<TABLE>
<CAPTION>
A.25 SHORE LINE SHOPS, INCORPORATED
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ (2,265)
Net Income (135)
----------
BALANCE AT END OF YEAR $ (2,400)
==========
</TABLE>
<TABLE>
<CAPTION>
A.26 NIPSCO ENERGY SERVICES, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 2
Other accounts receivable 93
Reserve-customer accounts (626)
Accounts receivable - associated companies 4,943
Notes receivable - associated companies 12,512
----------
Total Current Assets 16,923
----------
Other Property and Investments:
Other property at cost less depreciation 1,525
Investments at equity 3,788
----------
Total Other Property and Investments 5,313
----------
Other Assets:
Deferred charges and other 1,933
----------
Total Other Assets 1,933
----------
TOTAL ASSETS $ 24,169
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 2,888
Foreign currency translation adjustment (812)
Retained earnings 4,836
Retained earnings - current year 1,667
----------
Total Capitalization 8,579
----------
Current Liabilities:
Total accounts payable 1,659
Taxes accrued (22)
Taxes withheld payables (192)
----------
Total Current Liabilities 1,445
----------
Noncurrent Liabilities:
Notes payable to associated companies 12,839
Deferred income taxes 620
Deferred credits 686
----------
Total Noncurrent Liabilities 14,145
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 24,169
==========
</TABLE>
<TABLE>
<CAPTION>
A.26 NIPSCO ENERGY SERVICES, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 3,365
----------
Total Revenues 3,365
----------
Operating Expenses and Taxes(Except Income):
Operating expenses 4
Administrative and general expenses 7,897
Depreciation and amortization 35
Taxes (except income) 289
----------
Total Operating Expenses and Taxes(Except Income) 8,225
----------
Other Income (Deductions):
Investment income 1,449
Other non-operating income (1,707)
Taxes on other income 1,009
----------
Total Other Income (Deductions) 751
----------
Interest and other charges 1,153
----------
Income tax expense (1,424)
----------
Income (Loss) Before Subsidiaries (3,838)
----------
Subsidiary Gain (Loss) 5,505
----------
NET INCOME (LOSS) $ 1,667
==========
</TABLE>
<TABLE>
<CAPTION>
A.26 NIPSCO ENERGY SERVICES, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 4,836
Net Income 1,667
----------
BALANCE AT END OF YEAR $ 6,503
==========
</TABLE>
<TABLE>
<CAPTION>
A.27 MARKET HUB PARTNERS, L.P.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.27 MARKET HUB PARTNERS, L.P.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.27 MARKET HUB PARTNERS, L.P.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.28 INVENTORY MANAGEMENT AND DISTRIBUTION COMPANY, L.L.C.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.28 INVENTORY MANAGEMENT AND DISTRIBUTION COMPANY, L.L.C.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.28 INVENTORY MANAGEMENT AND DISTRIBUTION COMPANY, L.L.C.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.29 NIPSCO ENERGY TRADING CORP.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.29 NIPSCO ENERGY TRADING CORP.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - No activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.29 NIPSCO ENERGY TRADING CORP.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.30 NIPSCO FUEL COMPANY, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 43
Other accounts receivable (22)
Accounts receivable - associated companies 5,258
Prepayments 2
----------
Total Current Assets 5,280
----------
Other Property and Investments:
Other property at cost less depreciation 3,720
Investments at equity 22,614
----------
Total Other Property and Investments 26,334
----------
Other Assets:
Deferred charges and other 1
----------
Total Other Assets 1
----------
TOTAL ASSETS $ 31,615
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings (23,271)
Retained earnings - current year 4,372
----------
Total Capitalization (18,898)
----------
Current Liabilities:
Total accounts payable 9,723
----------
Total Current Liabilities 9,723
----------
Noncurrent Liabilities:
Notes payable to associated companies 28,628
Deferred income taxes 8,662
Deferred credits 3,500
----------
Total Noncurrent Liabilities 40,790
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 31,615
==========
</TABLE>
<TABLE>
<CAPTION>
A.30 NIPSCO FUEL COMPANY, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 4,701
----------
Total Operating Revenue 4,701
----------
Cost of Sales:
Cost of Sales 1,648
----------
Total Cost of Sales 1,648
----------
Operating Margin 3,053
----------
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 771
Depreciation and amortization 1,681
Taxes (except income) 9
----------
Total Operating Expenses and Taxes(Except Income) 2,461
----------
Other Income (Deductions) 8,790
----------
Interest and other charges 2,521
----------
Incoem tax expense 2,602
----------
Income (Loss) Before Subsidiaries 4,259
----------
Subsidiary Gain (Loss) 113
----------
NET INCOME (LOSS) $ 4,372
==========
</TABLE>
<TABLE>
<CAPTION>
A.30 NIPSCO FUEL COMPANY, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ (23,271)
Net Income 4,372
----------
BALANCE AT END OF YEAR $ (18,899)
==========
</TABLE>
<TABLE>
<CAPTION>
A.31 BRISTOL RESOURCES PRODUCTION COMPANY L.L.C.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.31 BRISTOL RESOURCES PRODUCTION COMPANY L.L.C.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.31 BRISTOL RESOURCES PRODUCTION COMPANY L.L.C.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.32 NFCO ACQUISITION COMPANY
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 50
Other accounts receivable 36
Accounts receivable - associated companies 27
Material and supplies at average cost 2
Notes receivable - associated companies 403
----------
Total Current Assets 518
----------
Other Property and Investments:
Other property at cost less depreciation 316
----------
Total Other Property and Investments 316
----------
TOTAL ASSETS $ 834
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Additional paid-in-capital 450
Retained earnings 134
Retained earnings - current year 113
----------
Total Capitalization 698
----------
Current Liabilities:
Total accounts payable 95
----------
Total Current Liabilities 95
----------
Noncurrent Liabilities:
Deferred income taxes 41
----------
Total Noncurrent Liabilities 41
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 834
==========
</TABLE>
<TABLE>
<CAPTION>
A.32 NFCO ACQUISITION COMPANY
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 331
----------
Total Operating Revenue 331
----------
Cost of Sales:
Cost of Sales 91
----------
Total Cost of Sales 91
----------
Operating Margin 240
----------
Operating Expenses and Taxes(Except Income):
Administrative and general expense 17
Depreciation and amortization 66
Taxes (Except Income) 1
----------
Total Operating Expenses and Taxes(Except Income) 84
----------
Other Income (Deductions) 25
----------
Income tax expense 68
----------
NET INCOME (LOSS) $ 113
==========
</TABLE>
<TABLE>
<CAPTION>
A.32 NFCO ACQUISITION COMPANY
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 134
Net Income 113
----------
BALANCE AT END OF YEAR $ 247
==========
</TABLE>
<TABLE>
<CAPTION>
A.33 NI-TEX, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 46
Other accounts receivable (17)
Accounts receivable - associated companies 5,741
Natural gas in storage, weighted average 23
Prepayments 16
----------
Total Current Assets 5,809
----------
Other Property and Investments:
Investments at equity 7,197
----------
Total Other Property and Investments 7,197
----------
TOTAL ASSETS $ 13,006
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings 7,503
Retained earnings - current year 3,090
Dividends - common shares (6,600)
----------
Total Capitalization 3,994
----------
Current Liabilities:
Total accounts payable 7,526
Taxes accrued 21
----------
Total Current Liabilities 7,547
----------
Noncurrent Liabilities:
Notes payable to associated companies 435
Deferred income taxes 1,030
----------
Total Noncurrent Liabilities 1,465
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 13,006
==========
</TABLE>
<TABLE>
<CAPTION>
A.33 NI-TEX, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Gas sales $ (50)
Intercompany gas sales 47,770
----------
Total Operating Revenue 47,720
----------
Cost of Sales:
Gas purchases 22
Intercompany gas purchases 45,717
----------
Total Cost of Sales 45,739
----------
Operating Margin 1,981
----------
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 324
Taxes (except income) 2
----------
Total Operating Expenses and Taxes(Except Income) 326
----------
Other Income (Deductions):
Investment income 2,015
Other non-operating income 1,331
Taxes on other income (15)
----------
Total Other Income (Deductions) 3,331
----------
Interest and other charges 5
----------
Income tax expense 1,891
----------
NET INCOME (LOSS) $ 3,090
==========
</TABLE>
<TABLE>
<CAPTION>
A.33 NI-TEX, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 7,503
Net Income 3,090
Dividends declared common (6,600)
----------
BALANCE AT END OF YEAR $ 3,993
==========
</TABLE>
<TABLE>
<CAPTION>
A.34 LAREDO NUECES PIPELINE COMPANY
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.34 LAREDO NUECES PIPELINE COMPANY
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.34 LAREDO NUECES PIPELINE COMPANY
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.35 MIDTEX GAS STORAGE COMPANY, L.L.P.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.35 MIDTEX GAS STORAGE COMPANY, L.L.P.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.35 MIDTEX GAS STORAGE COMPANY, L.L.P.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.36 NESI ENERGY MARKETING, L.L.C.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 5,635
Other accounts receivable 53,501
Reserve - customer accounts (171)
Accounts receivable - associated companies 7,121
Natural gas in storage, weighted average 10,878
Prepayments 25
----------
Total Current Assets 76,989
----------
Other Property and Investments:
Other property at cost less depreciation 340
----------
Total Other Property and Investments 340
----------
Other Assets:
Deferred charges and other 1
----------
Total Other Assets 1
----------
TOTAL ASSETS $ 77,330
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Additional paid-in-capital $ (1,730)
Retained earnings - current year 666
----------
Total Capitalization (1,064)
----------
Current Liabilities:
Total accounts payable 55,562
Taxes accrued 407
Taxes withheld payables (114)
----------
Total Current Liabilities 55,855
----------
Noncurrent Liabilities:
Notes payable to associated companies 23,428
Deferred credits (889)
----------
Total Noncurrent Liabilities 22,539
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 77,330
==========
</TABLE>
<TABLE>
<CAPTION>
A.36 NESI ENERGY MARKETING, L.L.C.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Operating revenue $ 349,204
Intercompany operating revenue 57,595
----------
Total Operating Revenue 406,799
----------
Cost of Sales:
Cost of sales 398,515
Intercompany cost of sales 3,560
----------
Total Cost of Sales 402,075
----------
Operating Margin 4,724
----------
Operating Expenses and Taxes(Except Income):
Operating expenses 73
Administrative and general expenses 2,773
Depreciation and amortization 62
Taxes (except income) 75
----------
Total Operating Expenses and Taxes(Except Income) 2,983
----------
Other Income (Deductions) (58)
----------
Interest and other charges 999
----------
Income tax expense 18
----------
NET INCOME (LOSS) $ 666
==========
</TABLE>
<TABLE>
<CAPTION>
A.36 NESI ENERGY MARKETING, L.L.C.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance beginning of year $ 0
Net Income 666
----------
BALANCE AT END OF YEAR $ 666
==========
</TABLE>
<TABLE>
<CAPTION>
A.37 GREEN FUELS, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Notes receivable $ 232
Other accounts receivable 62
Accounts receivable - associated companies 451
Material and supplies at average cost 149
Prepayments 226
----------
Total Current Assets 1,120
----------
Other Property and Investments:
Other property at cost less depreciation 1,194
Investments at cost 100
----------
Total Other Property and Investments 1,294
----------
Other Assets:
Deferred charges and other 6
----------
Total Other Assets 6
----------
TOTAL ASSETS $ 2,420
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings (411)
Retained earnings - current year (582)
----------
Total Capitalization (992)
----------
Current Liabilities:
Total accounts payable 185
Taxes withheld payables (15)
----------
Total Current Liabilities 170
----------
Noncurrent Liabilities:
Notes payable to associated companies 3,137
Deferred income taxes 14
Deferred credits 91
----------
Total Noncurrent Liabilities 3,242
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 2,420
==========
</TABLE>
<TABLE>
<CAPTION>
A.37 GREEN FUELS, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Operating revenue $ 208
---------
Total Operating Revenue 208
---------
Cost of Sales:
Cost of sales 190
---------
Total Cost of Sales 190
---------
Operating Margin 18
----------
Operating Expenses and Taxes(Except Income):
Operating expenses 63
Administrative and general expenses 611
Depreciation and amortization 54
Taxes (except income) 29
---------
Total Operating Expenses and Taxes(Except Income) 757
---------
Other Income (Deductins) 10
---------
Interest and other charges 205
---------
Income tax expense (352)
----------
NET INCOME (LOSS) $ (582)
==========
</TABLE>
<TABLE>
<CAPTION>
A.37 GREEN FUELS, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at beginning of year $ (411)
Net Income (582)
----------
BALANCE AT END OF YEAR $ (993)
==========
</TABLE>
<TABLE>
<CAPTION>
A.38 PARKWAY ENGINEERING AND DISTRIBUTING COMPANY
BALANCE SHEET
For the Year Ended December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 131
Other accounts receivable 1,530
Reserve-customer accounts (9)
Acounts receivable - associated companies 243
Materials and supplies at average cost 383
-----------
Total Current Assets 2,278
-----------
Other Property and Investments:
Other property at cost less depreciation 132
-----------
Total Other Property and Investments 132
-----------
Other Assets:
Deferred charges and other 545
-----------
Total other assets 545
-----------
TOTAL ASSETS $ 2,955
===========
<CAPTION>
CAPITALIZATION AND LIABILITIES:
<S> <C>
Capitalization:
Common shares without par value $ 300
Retained earnings (588)
Retained earnings - current year (423)
----------
Total Capitalization (711)
----------
Current Liabilities:
Total accounts payable 749
Customer deposits 35
Taxes accrued 5
Other accruals 28
Taxes withheld payables 29
----------
Total Current Liabilities 846
----------
Noncurrent Liabilities:
Notes payable to associated companies 2,689
Deferred income taxes (15)
Deferred credits 146
----------
Total Noncurrent Liabilities 2,820
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 2,955
==========
</TABLE>
<TABLE>
A.38 PARKWAY ENGINEERING AND DISTRIBUTING COMPANY
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 3,603
----------
Total Operating Revenue 3,603
----------
Cost of Sales:
Cost of Sales 2,212
----------
Total Cost of Sales 2,212
----------
Operating Margin 1,391
----------
Operating Expense and Taxes(Except Income):
Operating expenses 22
Administrative and general expenses 1,764
Depreciation and amortization 72
Taxes (except income) 135
----------
Total Operating Expenses and Taxes(Except Income) 1,993
----------
Other Income (Deductions) 106
----------
Interest and other charges 182
----------
Income tax expense (255)
----------
NET INCOME (LOSS) $ (423)
==========
</TABLE>
<TABLE>
<CAPTION>
A.38 PARKWAY ENGINEERING AND DISTRIBUTING COMPANY
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at beginning of year $ (588)
Net income (loss) (423)
----------
BALANCE AT END OF YEAR $ (1,011)
==========
</TABLE>
<TABLE>
<CAPTION>
A.39 NESI POWER MARKETING, INC.
BALANCE SHEET
For the Year Ended December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Other accounts receivable $ 24,756
Reserve-customer accounts (25)
Acounts receivable - associated companies 175
Prepayments 4
-----------
Total Current Assets 24,910
-----------
Other Property and Investments:
Other property at cost less depreciation 1,762
-----------
Total Other Property and Investments 1,762
-----------
Other Assets:
Deferred charges and other (362)
-----------
Total other assets (362)
-----------
TOTAL ASSETS $ 26,310
===========
<CAPTION>
CAPITALIZATION AND LIABILITIES:
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings - current year (210)
----------
Total Capitalization (209)
----------
Current Liabilities:
Total accounts payable 26,169
----------
Total Current Liabilities 26,169
----------
Noncurrent Liabilities:
Notes payable to associated companies 350
----------
Total Other Liabilities 350
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 26,310
==========
</TABLE>
<TABLE>
A.39 NESI POWER MARKETING, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 169,248
----------
Total Operating Revenue 169,248
----------
Cost of Sales:
Cost of sales 167,757
----------
Total Cost of Sales 167,757
----------
Operating Margin 1,491
----------
Operating Expense and Taxes(Except Income):
Operating expenses 35
Administrative and general expenses 1,434
Depreciation and amortization 2
Taxes (except income) 200
----------
Total Operating Expense and Taxes(Except Income) 1,671
----------
Other Income (Deductions) 19
----------
Interest and other charges 199
----------
Income tax expense (150)
----------
NET INCOME (LOSS) $ (210)
==========
</TABLE>
<TABLE>
<CAPTION>
A.39 NESI POWER MARKETING, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at beginning of year $ 0
Net income (loss) (210)
----------
BALANCE AT END OF YEAR $ (210)
==========
</TABLE>
<TABLE>
<CAPTION>
A.40 NESI INTEGRATED ENERGY RESOURCES, INC.
BALANCE SHEET
For the Year Ended December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Other accounts receivable $ 433
Acounts receivable - associated companies 174
Material and supplies at average cost 3
Natural gas in storage - weighted average 224
Prepayments 51
-----------
Total Current Assets 885
-----------
Other Property and Investments:
Other property at cost less depreciation 3
-----------
Total Other Property and Investments 3
-----------
TOTAL ASSETS $ 888
===========
<CAPTION>
CAPITALIZATION AND LIABILITIES:
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings - current year (285)
----------
Total Capitalization (284)
----------
Current Liabilities:
Total accounts payable 387
Taxes accrued 10
----------
Total Current Liabilities 397
----------
Noncurrent Liabilities:
Notes payable to associated companies 775
----------
Total Noncurrent Liabilities 775
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 888
==========
</TABLE>
<TABLE>
A.40 NESI INTEGRATED ENERGY RESOURCES, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 548
---------
Total Operating Revenue 548
---------
Cost of Sales:
Cost of Sales 619
---------
Total Cost of Sales 619
---------
Operating Margin (71)
---------
Operating Expense and Taxes(Except Income)
Operating expenses 161
Administrative and general expenses 206
---------
Total Operating Expense and Taxes(Except Income) 367
---------
Interest and other charges 20
---------
Income tax expense (173)
---------
NET INCOME (LOSS) $ (285)
=========
</TABLE>
<TABLE>
<CAPTION>
A.40 NESI INTEGRATED ENERGY RESOURCES, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at beginning of year $ 0
Net income (loss) (285)
---------
BALANCE AT END OF YEAR $ (285)
=========
</TABLE>
<TABLE>
<CAPTION>
A.41 NESI ENERGY SERVICES COMPANY
BALANCE SHEET
For the Year Ended December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Other accounts receivable $ 141
Acounts receivable - associated companies 560
Material and supplies at average cost 78
Prepayments 4
-----------
Total Current Assets 783
-----------
Other Property and Investments:
Other property at cost less depreciation 149
-----------
Total Other Property and Investments 149
-----------
Other Assets:
Deferred charges and other 744
-----------
Total other assets 744
-----------
TOTAL ASSETS $ 1,676
===========
<CAPTION>
CAPITALIZATION AND LIABILITIES:
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings - current year (842)
----------
Total Capitalization (841)
----------
Current Liabilities:
Total accounts payable 530
----------
Total Current Liabilities 530
----------
Noncurrent Liabilities:
Notes payable to associated companies 1,985
Deferred credits 2
----------
Total Noncurrent Liabilities 1,987
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 1,676
==========
</TABLE>
<TABLE>
A.41 NESI ENERGY SERVICES COMPANY
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 886
----------
Total Operating Revenue 886
----------
Cost of Sales:
Cost of sales 435
----------
Total Cost of Sales 435
----------
Operating Margin 451
----------
Operating Expense and Taxes(Except Income):
Operating expenses 13
Administrative and general expenses 1,723
Depreciation and amortization 10
Taxes (except income) 8
----------
Total Operating Expense and Taxes(Except Income) 1,754
----------
Interest and other charges 53
----------
Income tax expense (514)
----------
NET INCOME (LOSS) $ (842)
==========
</TABLE>
<TABLE>
<CAPTION>
A.41 NESI ENERGY SERVICES COMPANY
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at beginning of year $ 0
Net income (loss) (842)
----------
BALANCE AT END OF YEAR $ (842)
=========
</TABLE>
<TABLE>
<CAPTION>
A.42 NIPSCO ENERGY SERVICE CANADA, LIMITED
BALANCE SHEET
For the Year Ended December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Notes receivable $ 350
Other accounts receivable 8
Notes receivable - associated companies 8,250
-----------
Total Current Assets 8,608
-----------
Other Property and Investments:
Investments at equity 6,314
-----------
Total Other Property and Investments 6,314
-----------
TOTAL ASSETS $ 14,922
===========
<CAPTION>
CAPITALIZATION AND LIABILITIES:
<S> <C>
Capitalization:
Common shares without par value $ 7,011
Foreign currency tranlation adjustment (149)
Retained earnings (2,397)
Retained earnings - current year (15)
----------
Total Capitalization 4,450
----------
Current Liabilities:
Total accounts payable 291
----------
Total Current Liabilities 291
----------
Noncurrent Liabilities:
Notes payable to associated companies 10,173
Deferred credits 8
----------
Total Noncurrent Liabilities 10,181
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 14,922
==========
</TABLE>
<TABLE>
A.42 NIPSCO ENERGY SERVICES CANADA, LIMITED
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Expense and Taxes(Except Income)
Administrative and general expenses $ 132
----------
Total Operating Expense and Taxes(Except Income) 132
----------
Other Income (Deductions) (680)
----------
Income (loss) before subsidiaries (812)
----------
Subsidiary gain (loss) 797
----------
NET INCOME (LOSS) $ (15)
==========
</TABLE>
<TABLE>
<CAPTION>
A.42 NIPSCO ENERGY SERVICES CANADA, LIMITED
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance - beginning of year $ (2,397)
Net income (loss) (15)
----------
BALANCE AT END OF YEAR $ (2,412)
==========
</TABLE>
<TABLE>
<CAPTION>
A.43 SOUTHLAKE ENERGY INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Other accounts receivable $ 427
Accounts receivable-associated companies 350
----------
Total Current Assets 777
----------
Other Property and Investments:
Other property at cost less depreciation 22,300
----------
Total Other Property and Investments 22,300
----------
Other Assets:
Deferred charges and other 153
----------
Total Other Assets 153
----------
TOTAL ASSETS $ 23,230
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 3,434
Foreign currency translation adjustment (192)
Retained earnings 869
Retained earnings - current year 797
----------
Total Capitalization 4,908
----------
Current Liabilities:
Total accounts payable 1,090
Other accruals 243
----------
Total Current Liabilities 1,333
----------
Noncurrent Liabilities:
Notes payable to associated companies 8,250
Note payable 7,670
Deferred income taxes 1,069
----------
Total Noncurrent Liabilities 16,989
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 23,230
==========
</TABLE>
<TABLE>
<CAPTION>
A.43 SOUTHLAKE ENERGY INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 5,747
----------
Total Operating Revenue 5,747
----------
Cost of Sales:
Cost of sales 1,658
----------
Total Cost of Sales 1,658
----------
Operating Margin 4,089
----------
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 671
Depreciation and amortization 2,388
----------
Total Operating Expenses and Taxes(Except Income) 3,059
----------
Interest and other charges 180
----------
Income tax expense 53
----------
NET INCOME (LOSS) $ 797
==========
</TABLE>
<TABLE>
<CAPTION>
A.43 SOUTHLAKE ENERGY INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 869
Net Income 797
----------
BALANCE AT END OF YEAR $ 1,666
==========
</TABLE>
<TABLE>
<CAPTION>
A.44 NESI ENERGY MARKETING CANADA, LTD.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.44 NESI ENERGY MARKETING CANADA, LTD.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.44 NESI ENERGY MARKETING CANADA, LTD.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.45 TRIUMPH NATURAL GAS, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.45 TRIUMPH NATURAL GAS, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.45 TRIUMPH NATURAL GAS, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.46 NIPSCO DEVELOPMENT COMPANY, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 13
Notes receivable 592
Other accounts receivable 581
Accounts receivable - associated companies 4,965
Notes receivable - associated companies 2,165
Prepayments 16
----------
Total Current Assets 8,332
----------
Other Property and Investments:
Other property at cost less depreciation 7,459
Investments at equity 43,094
Investments at cost 3,420
----------
Total Other Property and Investments 53,973
----------
Other Assets:
Deferred charges and other (460)
----------
Total Other Assets (460)
----------
TOTAL ASSETS $ 61,845
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Foreign currency translation adjustment (758)
Retained earnings (41,137)
Retained earnings - current year (7,863)
----------
Total Capitalization (49,757)
----------
Current Liabilities:
Total accounts payable 1,996
Taxes accrued 720
Taxes withheld payables (99)
----------
Total Current Liabilities 2,617
----------
Noncurrent Liabilities:
Notes payable to associated companies 114,813
Deferred income taxes (8,025)
Deferred credits 2,197
----------
Total Noncurrent Liabilities 108,985
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 61,845
==========
</TABLE>
<TABLE>
<CAPTION>
A.46 NIPSCO DEVELOPMENT COMPANY, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 3,881
----------
Total Revenue 3,881
----------
Operating Expenses and Taxes(Except Income):
Operating Expense 75
Administrative and general expenses 2,141
Depreciation and amortization 784
Taxes (except income) 31
----------
Total Operating Expenses and Taxes (Except Income) 3,031
----------
Other Income (Deductions):
Non-operating income 2,486
Taxes on other income (735)
----------
Total Other Income (Deductions) 1,751
----------
Interest and other charges 9,327
----------
Income tax expense (2,944)
----------
Income (Loss) Before Subsidiaries (3,782)
----------
Subsidiary Gain (Loss) (4,081)
----------
NET INCOME (LOSS) $ (7,863)
==========
</TABLE>
<TABLE>
<CAPTION>
A.46 NIPSCO DEVELOPMENT COMPANY, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ (41,137)
Net Income (7,863)
----------
BALANCE AT END OF YEAR $ (49,000)
==========
</TABLE>
<TABLE>
<CAPTION>
A.47 ANALYTIC SYSTEMS LABORATORIES, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 235
Other accounts receivable 184
Material and supplies at average cost 244
Prepayments 22
----------
Total Current Assets 685
----------
Other Property and Investments:
Other property at cost less depreciation 143
----------
Total Other Property and Investments 143
----------
Other Assets:
Deferred charges and other 2
----------
Total Other Assets 2
----------
TOTAL ASSETS $ 830
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 561
Retained earnings (3,096)
Retained earnings - current year (640)
----------
Total Capitalization (3,175)
----------
Current Liabilities:
Total accounts payable 1,834
Other accruals 6
----------
Total Current Liabilities 1,840
----------
Noncurrent Liabilities:
Notes payable to associated companies 2,165
----------
Total Noncurrrent Liabilities 2,165
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 830
==========
</TABLE>
<TABLE>
<CAPTION>
A.47 ANALYTIC SYSTEMS LABORATORIES, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 1,470
----------
Total Operating Revenue 1,470
----------
Cost of Sales:
Cost of Sales 551
----------
Total Cost of Sales 551
----------
Operating Margin 919
----------
Operating Expenses and Taxes(Except Income):
Operating expenses 122
Administrative and general expenses 1,328
Depreciation and amortization 54
Taxes (except income) 58
----------
Total Operating Expenses and Taxes(Except Income) 1,562
----------
Other Income (Deductions) 5
----------
Income tax expense 2
----------
NET INCOME (LOSS) $ (640)
==========
</TABLE>
<TABLE>
<CAPTION>
A.47 ANALYTIC SYSTEMS LABORATORIES, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ (3,096)
Net Income (640)
----------
BALANCE AT END OF YEAR $ (3,736)
==========
</TABLE>
<TABLE>
<CAPTION>
A.48 PROTONICS RESEARCH, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.48 PROTONICS RESEARCH, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.48 PROTONICS RESEARCH, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.49 FUELMAKER CORPORATION
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.49 FUELMAKER CORPORATION
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.49 FUELMAKER CORPORATION
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.50 G. R. CLARK CORPORATION
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 1,011
Other accounts receivable 418
Accounts receivable - associated companies 2
Prepayments 2
----------
Total Current Assets 1,433
----------
Other Property and Investments:
Other property at cost less depreciation 3
----------
Total Other Property and Investments 3
----------
TOTAL ASSETS $ 1,436
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Additional paid-in-capital 2,236
Retained earnings (985)
Retained earnings - current year 17
----------
Total Capitalization 1,269
----------
Current Liabilities:
Total accounts payable (22)
----------
Total Current Liabilities (22)
----------
Noncurrent Liabilities:
Notes payable to associated companies 30
Deferred income taxes 159
----------
Noncurrent Liabilities 189
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 1,436
==========
</TABLE>
<TABLE>
<CAPTION>
A.50 G. R. CLARK CORPORATION
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Expenses and Taxes(Except Income):
Administrative and general expenses $ 19
----------
Total Operating Expenses and Taxes(Except Income) 19
----------
Other Income (Deductions) 46
----------
Income tax expense 10
----------
NET INCOME (LOSS) $ 17
==========
</TABLE>
<TABLE>
<CAPTION>
A.50 G. R. CLARK CORPORATION
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ (985)
Net Income 17
----------
BALANCE AT END OF YEAR $ (968)
==========
</TABLE>
<TABLE>
<CAPTION>
A.51 INTERNATIONAL POLYMER CORP.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.51 INTERNATIONAL POLYMER CORP.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.51 INTERNATIONAL POLYMER CORP.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.52 JOF TRANSPORTATION COMPANY
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 516
Accounts receivable - associated companies 78
Notes receivable - associated companies 1,611
----------
Total Current Assets 2,205
----------
Other Property and Investments:
Investments at equity 3,319
----------
Total Other Property and Investments 3,319
----------
TOTAL ASSETS $ 5,524
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings 3,305
Retained earnings - current year 988
----------
Total Capitalization 4,294
----------
Current Liabilities:
Total accounts payable 625
Taxes accrued (11)
----------
Total Current Liabilities 614
----------
Noncurrent Liabilities:
Deferred income taxes 616
----------
Noncurrent Liabilities: 616
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 5,524
==========
</TABLE>
<TABLE>
<CAPTION>
A.52 JOF TRANSPORTATION COMPANY
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 32
Taxes (except income) 24
----------
Total Operating Expenses and Taxes(Except Income) 56
----------
Other Income (Deductions):
Investment income 1,476
Non-operating income 156
----------
Total Other Income (Deductions) 1,632
----------
Income tax expense 588
----------
NET INCOME (LOSS) $ 988
==========
</TABLE>
<TABLE>
<CAPTION>
A.52 JOF TRANSPORTATION COMPANY
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 3,305
Net Income 988
----------
BALANCE AT END OF YEAR $ 4,293
==========
</TABLE>
<TABLE>
<CAPTION>
A.53 KOGAF ENTERPRISES, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 56
Notes receivable 138
Other accounts receivable 14
Notes receivable - associated companies 1,780
----------
Total Current Assets 1,988
----------
Other Property and Investments:
Investments at equity 163
----------
Total Other Property and Investments 163
----------
TOTAL ASSETS $ 2,151
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 2,103
Retained earnings (30)
Retained earnings - current year 62
----------
Total Capitalization 2,135
----------
Current Liabilities:
Total accounts payable 48
----------
Total Current Liabilities 48
----------
Noncurrent Liabilities:
Deferred income taxes (32)
----------
Noncurrent Liabilities (32)
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 2,151
==========
</TABLE>
<TABLE>
<CAPTION>
A.53 KOGAF Enterprises, Inc.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 130
----------
Total Operating Revenue 130
----------
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 9
----------
Total Operating Expenses and Taxes(Except Income) 9
----------
Other Income (Deductions) (59)
----------
NET INCOME (LOSS) $ 62
==========
</TABLE>
<TABLE>
<CAPTION>
A.53 KOGAF ENTERPRISES, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ (30)
Net Income 62
----------
BALANCE AT END OF YEAR $ 32
==========
</TABLE>
<TABLE>
<CAPTION>
A.54 LAKE ERIE LAND COMPANY
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 298
Notes receivable 849
Other accounts receivable 23
Accounts receivable - associated companies 2,783
Prepayments 552
----------
Total Current Assets 4,505
----------
Other Property and Investments:
Other property at cost less depreciation 19,375
Investments at equity (546)
Investments at cost 22,778
----------
Total Other Property and Investments 41,607
----------
Other Assets:
Deferred charges and other 293
----------
Total Other Assets 293
----------
TOTAL ASSETS $ 46,405
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Additional paid-in capital 42,871
Retained earnings (5,800)
Retained earnings - current year (2,219)
Long term debt excluding amounts due within one year 2,636
----------
Total Capitalization 37,489
----------
Current Liabilities:
Total accounts payable 1,964
Customer deposits 4
Taxes accrued 185
Accrued interest 22
Other accruals 101
----------
Total Current Liabilities 2,276
----------
Noncurrent Liabilities:
Notes payable to associated companies 6,640
----------
Total Noncurrent Liabilities 6,640
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 46,405
==========
</TABLE>
<TABLE>
<CAPTION>
A.54 LAKE ERIE LAND COMPANY
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 2,963
----------
Total Operating Revenue 2,963
----------
Cost of Sales:
Cost of sales 1,506
----------
Total Cost of Sales 1,506
----------
Operating Margin 1,457
----------
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 2,436
Depreciation and amortization 1,135
Taxes (except income) 248
----------
Total Operating Expenses and Taxes(Except Income) 3,819
----------
Other Income (Deductions) 3
----------
Interest and other charges 809
----------
Income tax expense (1,192)
----------
Income (Loss) Before Subsidiaries (1,976)
----------
Subsidiary Gain (Loss) (243)
----------
NET INCOME (LOSS) $ (2,219)
==========
</TABLE>
<TABLE>
<CAPTION>
A.54 LAKE ERIE LAND COMPANY
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ (5,800)
Net Income (2,219)
----------
BALANCE AT END OF YEAR $ (8,019)
==========
</TABLE>
<TABLE>
<CAPTION>
A.55 SCC SERVICES, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 433
Other accounts receivable 336
Material and supplies at average cost 238
----------
Total Current Assets 1,007
----------
Other Assets:
Deferred charges and other 46
----------
Total Other Assets 46
----------
TOTAL ASSETS $ 1,053
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Additional paid-in-capital 57
Retained earnings (360)
Retained earnings - current year (243)
----------
Total Capitalization (545)
----------
Current Liabilities:
Total accounts payable 1,557
----------
Total Current Liabilities 1,557
----------
Noncurrent Liabilities:
Deferred credits 41
----------
Noncurrent Liabilities 41
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 1,053
==========
</TABLE>
<TABLE>
<CAPTION>
A.55 SCC SERVICES, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 4,517
----------
Total Operating Revenues 4,517
----------
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 4,652
Taxes (except income) 263
----------
Total Operating Expenses and Taxes(Except Income) 4,915
----------
Other Income (Deductions) 7
----------
Interest and other charges 1
----------
Income tax expense (149)
----------
NET INCOME (LOSS) $ (243)
==========
</TABLE>
<TABLE>
<CAPTION>
A.55 SCC SERVICES, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ (360)
Net Income (243)
----------
BALANCE AT END OF YEAR $ (603)
==========
</TABLE>
<TABLE>
<CAPTION>
A.56 N SQUARED AVIATION, LLC
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.56 N SQUARED AVIATION, LLC
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.56 N SQUARED AVIATION, LLC
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.57 NDC DOUGLAS PROPERTIES, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 46
Notes receivable 59
Accounts receivable - associated companies 5,357
----------
Total Current Assets 5,462
----------
Other Property and Investments:
Investments at equity 30,087
----------
Total Other Property and Investments 30,087
----------
TOTAL ASSETS $ 35,549
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings 805
Retained earnings - current year 465
Long term debt excluding amounts due 23,592
----------
Total Capitalization 24,863
----------
Current Liabilities:
Total accounts payable 40
Interest accrued 1,773
Other accruals 3,510
----------
Total Current Liabilities 5,323
----------
Noncurrent Liabilities:
Notes payable to associated companies 3,008
Deferred income taxes 2,355
----------
Noncurrent Liabilities 5,363
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 35,549
==========
</TABLE>
<TABLE>
<CAPTION>
A.57 NDC DOUGLAS PROPERTIES, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 130
----------
Total Operating Revenue 130
----------
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 22
Taxes (except income) 3
----------
Total Operating Expenses and Taxes(Except Income) 25
----------
Other Income (Deductions) (1,438)
----------
Interest and other charges 2,802
----------
Income tax expense (4,600)
----------
NET INCOME (LOSS) $ 465
==========
</TABLE>
<TABLE>
<CAPTION>
A.57 NDC DOUGLAS PROPERTIES, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 805
Net Income 465
----------
BALANCE AT END OF YEAR $ 1,270
==========
</TABLE>
<TABLE>
<CAPTION>
A.58 NIPSCO INTERNATIONAL POWER SYSTEMS COMPANY
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 1
----------
Total Current Assets 1
----------
TOTAL ASSETS $ 1
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings (2)
Retained earnings - current year (1)
----------
Total Capitalization (2)
----------
Noncurrent Liabilities:
Notes payable to associated companies 3
----------
Total Noncurrent Liabilities 3
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 1
==========
</TABLE>
<TABLE>
<CAPTION>
A.58 NIPSCO INTERNATIONAL POWER SYSTEMS COMPANY
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues $ 0
---------
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 1
---------
Total Operating Expenses and Taxes(Except Income) 1
---------
NET INCOME (LOSS) $ (1)
=========
</TABLE>
<TABLE>
<CAPTION>
A.58 NIPSCO INTERNATIONAL POWER SYSTEMS COMPANY
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ (2)
Net Income (1)
----------
BALANCE AT END OF YEAR $ (3)
==========
</TABLE>
<TABLE>
<CAPTION>
A.59 NIPSCO SECURITY SERVICES, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 83
Other accounts receivable 315
Reserve - customer accounts (21)
Accounts receivable - associated companies 579
Material and supplies at average cost 1,117
Prepayments 20
----------
Total Current Assets 2,093
----------
Other Property and Investments:
Other property at cost less depreciation 275
----------
Total Other Property and Investments 275
----------
Other Assets:
Deferred charges and other 15
----------
Total Other Assets 15
----------
TOTAL ASSETS $ 2,383
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Additional paid-in-capital 54
Retained earnings (2,270)
Retained earnings - current year (931)
----------
Total Capitalization (3,146)
----------
Current Liabilities:
Total accounts payable 419
Customer deposits 61
Taxes accrued (2)
Taxes withheld payables (48)
----------
Total Current Liabilities 430
----------
Noncurrent Liabilities:
Notes payable to associated companies 4,940
Deferred income taxes (21)
Deferred credits 180
----------
Total Noncurrent Liabilities 5,099
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 2,383
==========
</TABLE>
<TABLE>
<CAPTION>
A.59 NIPSCO SECURITY SERVICES, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 2,025
----------
Total Operating Revenue 2,025
----------
Cost of Sales:
Cost of Sales 1,040
----------
Total Cost of Sales 1,040
----------
Operating Margin 985
----------
Operating Expenses and Taxes(Except Income):
Operating expenses 194
Administrative and general expenses 1,717
Depreciation and amortization 46
Taxes (except income) 93
----------
Total Operating Expenses and Taxes(Except Income) 2,050
----------
Interest and other charges 441
----------
Income tax expense (575)
----------
NET INCOME (LOSS) $ (931)
==========
</TABLE>
<TABLE>
<CAPTION>
A.59 NIPSCO SECURITY SERVICES, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ (2,270)
Net Income (931)
----------
BALANCE AT END OF YEAR $ (3,201)
==========
</TABLE>
<TABLE>
<CAPTION>
A.60 RIC, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 125
Other accounts receivable 270
Accounts receivable - associated companies 15
Notes receivable - associated companies 300
----------
Total Current Assets 710
----------
Other Property and Investments:
Other property at cost less depreciation 21
Investments at equity 356
----------
Total Other Property and Investments 377
----------
TOTAL ASSETS $ 1,087
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings 327
Retained earnings - current year 392
----------
Total Capitalization 720
----------
Current Liabilities:
Total accounts payable 316
Taxes withheld payables (9)
----------
Total Current Liabilities 307
----------
Noncurrent Liabilities:
Deferred income taxes 60
----------
Noncurrent Liabilities 60
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 1,087
==========
</TABLE>
<TABLE>
<CAPTION>
A.60 RIC, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Operating revenue $ 1,677
----------
Total Operating Revenue 1,677
----------
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 1,262
Depreciation and amortization 3
Taxes (except income) 20
----------
Total Operating Expenses and Taxes(Except Income) 1,285
----------
Other Income (Deductions) 1
----------
Interest and other charges 7
----------
Income tax expense 147
----------
Income (Loss) Before Subsidiaries 239
----------
Subsidiary Gain (Loss) 153
----------
NET INCOME (LOSS) $ 392
==========
</TABLE>
<TABLE>
<CAPTION>
A.60 RIC, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 327
Net Income 392
----------
BALANCE AT END OF YEAR $ 719
==========
</TABLE>
<TABLE>
<CAPTION>
A.61 CARDINAL PROPERTY MANAGEMENT, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 114
Accounts receivable - associated companies 109
Notes receivable - associated companies 230
----------
Total Current Assets 453
----------
Other Property and Investments:
Other property at cost less depreciation 35
----------
Total Other Property and Investments 35
----------
TOTAL ASSETS $ 488
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings 202
Retained earnings - current year 153
----------
Total Capitalization 356
----------
Current Liabilities:
Total accounts payable 129
----------
Total Current Liabilities 129
----------
Noncurrent Liabilities:
Deferred income taxes 3
----------
Noncurrent Liabilities 3
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 488
==========
</TABLE>
<TABLE>
<CAPTION>
A.61 CARDINAL PROPERTY MANAGEMENT, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 257
----------
Total Operating Revenue 257
----------
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 22
Depreciation and amortization 8
Taxes (except income) 2
----------
Total Operating Expenses and Taxes(Except Income) 32
----------
Other Income (Deductions) 17
----------
Income tax expense 89
----------
NET INCOME (LOSS) $ 153
==========
</TABLE>
<TABLE>
<CAPTION>
A.61 CARDINAL PROPERTY MANAGEMENT, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 202
Net Income 153
----------
BALANCE AT END OF YEAR $ 355
==========
</TABLE>
<TABLE>
<CAPTION>
A.62 RIVERSIDE CALORIC COMPANY
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 2
Accounts receivable - associated companies 116
----------
Total Current Assets 118
----------
Other Property and Investments:
Investments at equity 1,342
----------
Total Other Property and Investments 1,342
----------
TOTAL ASSETS $ 1,460
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings (315)
Retained earnings - current year (543)
----------
Total Capitalization (857)
----------
Current Liabilities:
Total accounts payable 58
Taxes accrued (16)
----------
Total Current Liabilities 42
----------
Noncurrent Liabilities:
Notes payable to associated companies 2,646
Deferred income taxes (371)
----------
Noncurrent Liabilities 2,275
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 1,460
==========
</TABLE>
<TABLE>
<CAPTION>
A.62 RIVERSIDE CALORIC COMPANY
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Expenses and Taxes(Except Income):
Administrative and general expenses $ 2
----------
Total Operating Expenses and Taxes(Except Income) 2
----------
Other Income (Deductions) (658)
----------
Interest and other charges 214
----------
Income tax expense (331)
----------
NET INCOME (LOSS) $ (543)
==========
</TABLE>
<TABLE>
<CAPTION>
A.62 RIVERSIDE CALORIC COMPANY
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ (315)
Net Income (543)
----------
BALANCE AT END OF YEAR $ (858)
==========
</TABLE>
<TABLE>
<CAPTION>
A.63 PROGENI, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 1
Other accounts receivable 2
Accounts receivable - associated companies 163
----------
Total Current Assets 166
----------
Other Property and Investments:
Investments at equity 30
----------
Total Other Property and Investments 30
----------
TOTAL ASSETS $ 196
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings - current year (240)
----------
Total Capitalization (239)
----------
Current Liabilities:
Total accounts payable 104
Taxes withheld payables (9)
----------
Total Current Liabilities 95
----------
Noncurrent Liabilities:
Notes payable to associated companies 340
----------
Noncurrent Liabilities 340
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 196
==========
</TABLE>
<TABLE>
<CAPTION>
A.63 PROGENI, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Expenses and Taxes(Except Income):
Administrative and general expenses 371
Depreciation and amortization 1
Taxes (except income) 12
----------
Total Operating Expenses and Taxes(Except Income) 384
----------
Interest and other charges 3
----------
Income tax expense (147)
----------
NET INCOME (LOSS) $ (240)
==========
</TABLE>
<TABLE>
<CAPTION>
A.63 PROGENI, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 0
Net Income (240)
----------
BALANCE AT END OF YEAR $ (240)
==========
</TABLE>
<TABLE>
<CAPTION>
A.64 SUN POWER CORPORATION
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.64 SUN POWER CORPORATION
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.64 SUN POWER CORPORATION
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.65 KOKOMO GAS AND FUEL COMPANY
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Utility Plant:
Utility Plant $ 72,378
Less - accumulated provision for depreciation (29,127)
----------
Total Utility Plant 43,251
----------
Other Property and Investments:
Investments at cost 5
----------
Total Other Property and Investments 5
----------
Current Assets:
Cash and cash equivalents 1,841
Accounts receivable, less reserve 4,815
Gas cost adjustment clause 1,875
Material and supplies at average cost 354
Natural gas in storage, weighted average 743
Prepayments and other 4,851
----------
Total Current Assets 14,479
----------
Other Assets:
Regulatory assets 503
Deferred charges and other 75
----------
Total Other Assets 578
----------
TOTAL ASSETS $ 58,313
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 46,170
Retained earnings (873)
----------
Total Capitalization 45,297
----------
Current Liabilities:
Total accounts payable 4,874
Customer deposits 426
Taxes accrued 412
Interest accrued 107
Other accruals 1,176
----------
Total Current Liabilities 6,995
----------
Noncurrent Liabilities:
Deferred income taxes 3,016
Deferred income tax credits amortized 645
Deferred credits 10
Postretirement accrued benefits 503
Regulatory income tax liability 1,477
Other non-current liabilities 370
----------
Noncurrent Liabilities 6,021
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 58,313
==========
</TABLE>
<TABLE>
<CAPTION>
A.65 KOKOMO GAS AND FUEL COMPANY
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Gas $ 31,008
----------
Total Operating Revenue 31,008
----------
Cost of Sales:
Purchased gas 18,821
----------
Operating Margin 12,187
----------
Operating Expenses and Taxes(Except Income):
Operation expenses 3,359
Administrative and general expenses 2,307
Depreciation and amortization 1,495
Taxes (except income) 979
----------
Total Operating Expenses and Taxes(Except Income) 8,140
----------
Other Income (Deductions) (262)
----------
Interest and other charges 1
----------
Income tax expense 1,474
----------
NET INCOME (LOSS) $ 2,310
==========
</TABLE>
<TABLE>
<CAPTION>
A.65 KOKOMO GAS AND FUEL COMPANY
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ (783)
Net Income 2,310
Dividends declared common (2,400)
----------
BALANCE AT END OF YEAR $ (873)
==========
</TABLE>
<TABLE>
<CAPTION>
A.66 KGF TRADING COMPANY
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.66 KGF TRADING COMPANY
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(No Activity) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.66 KGF TRADING COMPANY
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
(None - Zero Amounts) $ 0
==========
</TABLE>
<TABLE>
<CAPTION>
A.67 NORTHERN INDIANA FUEL AND LIGHT COMPANY, INC.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Utility Plant:
Utility Plant $ 64,518
Less - accumulated provision for depreciation (18,640)
----------
Total Utility Plant 45,878
----------
Other Property and Investments:
Investments at equity 1,657
Investments at cost 3
----------
Total Other Property and Investments 1,660
----------
Current Assets:
Cash and cash equivalents 285
Accounts receivable, less reserve 6,156
Gas adjustment clause 1,596
Material and supplies at average cost 433
Natural gas in storage, weighted average 3,688
Prepayments and other 3,811
----------
Total Current Assets 15,969
----------
Other Assets:
Regulatory assets 322
Deferred charges and other (1)
----------
Total Other Assets 321
----------
TOTAL ASSETS $ 63,828
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 30,674
Additional paid-in-capital 7,295
Retained earnings 10,334
----------
Total Capitalization 48,303
----------
Current Liabilities:
Total accounts payable 5,116
Customer deposits 144
Taxes accrued 760
Interest accrued 26
Other accruals 1,656
----------
Total Current Liabilities 7,702
----------
Noncurrent Liabilities:
Deferred income taxes 3,175
Deferred income tax credits amortized 474
Deferred credits 2,123
Regulatory income tax liability 2,051
----------
Noncurrent Liabilities 7,823
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 63,828
==========
</TABLE>
<TABLE>
<CAPTION>
A.67 NORTHERN INDIANA FUEL AND LIGHT COMPANY, INC.
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Gas $ 36,594
----------
Total Operating Revenue 36,594
----------
Cost of Sales:
Purchased gas 23,687
----------
Total Cost of Sales 23,687
----------
Operating Margin 12,907
----------
Operating Expenses and Taxes(Except Income):
Operation expenses 3,676
Administrative and general expenses 3,272
Depreciation and amortization 1,203
Taxes (except income) 774
----------
Total Operating Expenses and Taxes(Except Income) 8,925
----------
Other Income (Deductions) (109)
----------
Interest and other charges 61
----------
Income tax expense 1,495
----------
Income before subsidiaries 2,317
----------
Subsidiary Gain (Loss) 445
----------
NET INCOME (LOSS) $ 2,762
==========
</TABLE>
<TABLE>
<CAPTION>
A.67 NORTHERN INDIANA FUEL AND LIGHT COMPANY, INC.
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 7,572
Net Income 2,762
----------
BALANCE AT END OF YEAR $ 10,334
==========
</TABLE>
<TABLE>
<CAPTION>
A.68 NORTHERN INDIANA TRADING COMPANY
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
ASSETS
<S> <C>
Current Assets:
Cash and cash equivalents $ 81
Other accounts receivable 1,669
Accounts receivable - associated companies 769
----------
Total Current Assets 2,519
----------
Other Property and Investments:
Other property at cost less depreciation 947
----------
Total Other Property and Investments 947
----------
TOTAL ASSETS $ 3,466
==========
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C>
Capitalization:
Common shares without par value $ 1
Retained earnings 1,211
Retained earnings - current year 445
----------
Total Capitalization 1,657
----------
Current Liabilities:
Total accounts payable 1,387
Taxes accrued 361
Refunds due customers within one year (7)
Other accruals 1
Taxes withheld payables 1
----------
Total Current Liabilities 1,743
----------
Noncurrent Liabilities:
Deferred income taxes 66
----------
Noncurrent Liabilities 66
----------
TOTAL CAPITALIZATION AND LIABILITIES $ 3,466
==========
</TABLE>
<TABLE>
<CAPTION>
A.68 NORTHERN INDIANA TRADING COMPANY
INCOME STATEMENT
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Operating Revenues:
Total operating revenue $ 13,891
----------
Total Operating Revenue 13,891
----------
Cost of Sales:
Cost of Sales 12,639
----------
Total Cost of Sales 12,639
----------
Operating Margin 1,252
----------
Operating Expenses and Taxes(Except Income):
Operating expenses 277
Depreciation and amortization 171
Taxes (except income) 27
----------
Total Operating Expenses and Taxes(Except Income) 475
----------
Other Income (Deductions) (321)
----------
Income tax expense 11
----------
NET INCOME (LOSS) $ 445
==========
</TABLE>
<TABLE>
<CAPTION>
A.68 NORTHERN INDIANA TRADING COMPANY
STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
<S> <C>
Balance at Beginning of Year $ 1,211
Net Income 445
----------
BALANCE AT END OF YEAR $ 1,656
==========
</TABLE>
<PAGE>
EXHIBIT-99.B
NIPSCO Industries, Inc.
The above-named claimant has caused this statement to be duly executed
on its behalf by its authorized officer on the 27th day of February, 1998.
NIPSCO Industries, Inc.
By /s/ Nina M. Rausch
----------------------------
Corporate Seal Nina M. Rausch
Attest: Secretary
Nina M. Rausch
Secretary
Name, title and address of officer to whom notices and correspondence
concerning this statement should be addressed:
Stephen P. Adik
Executive Vice President and
Chief Financial Officer and Treasurer
NIPSCO Industries, Inc.
801 E. 86th Avenue
Merrillville, Indiana 46410
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