File No: 69-352
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
---------
FORM U-3A-2
Statement by Holding Company Claiming
Exemption Under Rule U-2 from the Provisions
of the Public Utility Holding Company Act of 1935
For The Year Ended December 31, 1995
---------
MCN CORPORATION
hereby files with the Securities and Exchange Commission (SEC), pursuant to
Rule 2, its statement claiming exemption as a holding company from the
provisions of the Public Utility Holding Company Act of 1935 (PUHCA of 1935),
and submits the following information:
I. NATURE OF BUSINESS OF CLAIMANT AND EVERY SUBSIDIARY THEREOF
MCN CORPORATION: MCN Corporation (MCN or the Corporation) is a
diversified natural gas holding company. MCN is organized under the laws of
the state of Michigan and has its principal executive offices at 500 Griswold
Street, Detroit, Michigan 48226. The Corporation owns directly all of the
outstanding common stock of Michigan Consolidated Gas Company (MichCon),
Citizens Gas Fuel Company (Citizens), and MCN Investment Corporation (MCNIC).
MCN's major business segments are Gas Distribution and, within Diversified
Energy, Gas Services and Computer Operations Services. Except where otherwise
indicated, the companies set forth below are Michigan corporations located at
500 Griswold Street, Detroit, Michigan 48226.
GAS DISTRIBUTION
Gas Distribution, through the following subsidiaries, operates the
largest natural gas distribution and intrastate transmission system in
Michigan and one of the largest in the United States.
A. MICHIGAN CONSOLIDATED GAS COMPANY: MichCon is a public utility
engaged in the distribution and transmission of natural gas in the
state of Michigan. MichCon was organized in 1898 and, with its
predecessors, has been in business for nearly 150 years. MichCon
serves 1.2 million residential, commercial and industrial customers
in the Detroit, Grand Rapids, Ann Arbor, Traverse City and Muskegon
metropolitan areas and in various other communities throughout the
state of Michigan. MichCon conducts substantially all of its business
in the state of Michigan and is subject to the jurisdiction of the
Michigan Public Service Commission (MPSC) as to various phases of its
operations, including gas sales rates, service, and accounting.
Except where otherwise indicated, the companies set forth below are
wholly owned subsidiaries of MichCon.
1. Michigan Consolidated Homes Limited Dividend Housing
Corporation, a Delaware corporation, operates a 130-unit,
low and moderate income housing project in Detroit,
Michigan.
2. MichCon Development Corporation, through its various
partnership arrangements, is engaged in the design,
construction and management of Harbortown, a residential and
small commercial development constructed on a 50 acre parcel
along the Detroit River in Detroit, Michigan.
<PAGE>
3. Blue Lake Holdings, Inc., holds a 50% interest in a
partnership that has converted a depleted natural gas field
in northern Michigan into a 46 Bcf natural gas storage field
which it now operates. MichCon owns 50% of Blue Lake
Holdings, Inc., the other half is owned by Storage
Development Company, a subsidiary of MCNIC.
4. G-T Energy Concepts, Inc., developed a natural gas torch and
the related fueling modules which are adapted for use in
metal cutting, brazing and soldering. These fueling modules
utilize the patented adsorbed natural gas technology
described below.
5. Fuel Concepts, Inc., is involved in the development and
commercialization of low pressure natural gas storage and
related technologies. These research and development efforts
have pioneered and patented an adsorbed natural gas
technology which allows natural gas to be stored at
one-sixth to one-tenth the pressure of conventional methods.
6. MichCon Fuel Services Company was formed in 1995 to market
natural gas as a vehicular fuel.
7. MichCon Pipeline Company was formed in 1995 and, through
the subsidiaries below, is engaged in pipeline projects.
a. MichCon Gathering Company
b. Saginaw Bay Pipeline Company (transferred from
MCNIC on January 1, 1996)
c. Saginaw Bay Lateral Company (transferred from
MCNIC on January 1, 1996)
d. Westside Pipeline Company (transferred from MCNIC
on January 1, 1996)
B. CITIZENS GAS FUEL COMPANY: Citizens is a public utility engaged
in the distribution and transmission of natural gas. Citizens was
organized in 1951 and, with its predecessors, has been in business
for over 135 years. Citizens serves approximately 13,000 residential,
commercial and industrial customers in and around Adrian, Michigan.
Citizens' principal executive offices are located at 127 N. Main
Street, Adrian, Michigan 49221. Citizens conducts all of its business
in the state of Michigan and its rates are set by the Adrian Gas Rate
Commission. Other various phases of its operations are subject to the
jurisdiction of the MPSC.
C. SOUTHERN MISSOURI GAS COMPANY: During 1995, MCN agreed to acquire a
47.5% interest in a partnership formed to construct, own and operate
a natural gas transmission and distribution system located in
Southern Missouri. The agreement is subject to MCN obtaining
authorization from the SEC for the acquisition under Section 9(a)(2)
of PUHCA of 1935. On October 30, 1995 MCN filed a Form U-1 seeking
such authorization.
2
<PAGE>
DIVERSIFIED ENERGY
D. MCN INVESTMENT CORPORATION: MCNIC, organized in 1986, is the holding
company for MCN's various diversified services subsidiaries. MCNIC's
major business segments are Gas Services and Computer Operations
Services. Except where otherwise indicated, the companies set forth
below are wholly owned subsidiaries of MCNIC.
Gas Services
The Gas Services segment is an integrated energy group with
investments in the following businesses: Exploration and Production,
Gas Gathering and Processing, Gas Storage, and Gas Marketing and
Cogeneration.
Exploration & Production
1. Supply Development Group, Inc., through the
subsidiaries listed below, is engaged in natural
gas and oil exploration, development and production
primarily in Michigan, Ohio, and the Appalachian,
Midcontinent and Gulf Coast areas of the U.S.
a. Elmira Antrim Company
b. Green River Antrim Company
c. Warner Antrim Company
d. Green Oak Development Company
e. MGS Development Company
f. Southwest Gas Supply, Inc.
g. Geotrend Exploration, Inc.
h. Huron Energy Company
i. CoEnergy MidContinent, Inc.
j. CoEnergy Anadarko, Inc.
k. P'Bell Energy Corporation
l. CoEnergy Operating Company
m. CoEnergy Canadian Exploration, Inc.
(a New Brunswick corporation)
n. Petro Ventures Exploration Company
o. CoEnergy Rockies, Inc.
p. CoEnergy Central Exploration, Inc.
q. CoEnergy Enhanced Production, Inc.
r. Oakwood Gathering, Inc. (a Delaware
corporation)
s. Reid Holdings, Inc. (a Delaware
corporation)
i. Appalachian Methane, Inc., a
Delaware corporation, holds a 50%
interest in Buchanan Production Co.,
a Virginia general partnership.
ii. Appalachian Operators, Inc., a
Delaware corporation, holds a 50%
interest in Buchanan Production Co.,
a Virginia general partnership.
Gas Gathering and Processing
MCNIC's Gas Gathering and Processing businesses are involved
in ventures that transport natural gas from producing fields to
processing plants and/or markets. This business also includes plants
which process natural gas to remove CO2 in order to meet market
specifications.
2. Saginaw Bay Pipeline Company is the 66% general
partner in a partnership that operates a 126-mile
pipeline which transports natural gas and natural
gas liquids from reserves in east-central Michigan
to natural gas processing plants in northern
Michigan. On January 1, 1996 Saginaw Bay Pipeline
Company was transferred from MCNIC to MichCon.
3
<PAGE>
3. Saginaw Bay Lateral Company is the 46% general
partner in a partnership which owns and operates
lateral pipelines interconnecting with the 126-mile
pipeline previously described. On January 1, 1996
Saginaw Bay Lateral Company was transferred from
MCNIC to MichCon.
4. Westside Pipeline Company owns and operates a 6
mile pipeline which provides transportation
services to Citizens. In addition, Westside
Pipeline Company invests in various pipeline and
processing plants through equity interests in the
companies listed below.
a. Jordan Valley Limited Partnership
(82.62% interest)
b. Warner Treating Limited Liability Company
(95% interest)
c. Terra Westside Processing Company
(85% interest)
On January 1, 1996 Westside Pipeline Company
transferred its interests in Warner Treating Limited
Liability Company and Terra Westside Processing
Company to Otsego Holdings, Inc. In addition,
Westside Pipeline Company transferred its
6 mile pipeline to Otsego Holdings, Inc. Westside
Pipeline Company was then transferred from MCNIC to
MichCon.
5. Pipeline & Processing Group, Inc. was formed in
1995 and engages in pipeline and processing
projects through the following subsidiaries and
partnership.
a. CoEnergy Offshore Pipeline & Processing
Company
b. Otsego Holdings, Inc.
i. CoEnergy CSG
ii. Bagley Processing Company (47%
partnership interest)
iii. Warner Treating Limited Liability
Company (95% interest transferred
from Westside Pipeline Company on
January 1, 1996)
iv. Terra Westside Processing Company
(85% interest transferred from
Westside Pipeline Company on
January 1, 1996)
Gas Storage
6. Storage Development Company, through joint ventures
and strategic partnerships, develops and provides
gas storage services to affiliated marketing
companies, other gas utilities, pipeline companies
and large-volume gas users.
a. South Romeo Gas Storage Company, a
Michigan partnership in which Storage
Development Company has a 50% interest,
owns and operates a 10 Bcf storage field
in southeastern Michigan which provides
storage services to MCNIC's Gas Marketing
and Cogeneration operations.
b. W-10 Holdings, Inc., holds a 50% interest
in a partnership that intends to develop
and operate a 42 Bcf storage field in
southeastern Michigan.
c. Blue Lake Holdings, Inc. (See description
under Gas Distribution - MichCon)
d. The Orchards Golf Limited Partnership, a
Michigan partnership in which Storage
Development Company has a 50% interest,
developed, owns and operates a residential
community and golf course on 520 acres of
land above the South Romeo gas storage
field in southeastern Michigan.
4
<PAGE>
Gas Marketing and Cogeneration
MCN's Gas Marketing and Cogeneration businesses pursue
gas-related opportunities throughout the United States and Canada,
including marketing natural gas to utilities and other large-volume
customers and investing in natural gas cogeneration related projects.
7. CoEnergy Trading Company is engaged in the purchase
and sale of natural gas to large-volume gas users
and gas and electric utilities in Michigan, the
Midwest, the eastern United States and Canada.
CoEnergy Trading Company holds a 50% interest in
U.S. CoEnergy Services, a Wisconsin general
partnership.
8. CoEnergy Canadian Holdings, Ltd., a New Brunswick
corporation located at Brunswick House, 10th Floor,
44 Chipman Hill, Saint John, New Brunswick E2L 4S6,
was formed to market and sell natural gas in Canada
and the northeastern United States.
9. CoEnergy Supply Company engages in the purchase and
sale of natural gas, a portion of which is
produced by the Supply Development Group, Inc.,
an affiliate.
10. Cogen Development Company pursues cogeneration
related opportunities throughout the United States
and Canada.
a. CDC Ada, Inc., is a 99% limited partner in
a venture which owns and operates a 30
megawatt natural gas-fueled cogeneration
facility in western Michigan.
b. Ludington Cogeneration Co. is the 1%
general partner in a joint venture that
built and operates a 123 megawatt natural
gas-fueled cogeneration plant in western
Michigan.
c. Ludington Cogeneration Holdings, Ltd., is a
49% limited partner in the 123 megawatt
cogeneration plant mentioned above.
Computer Operations Services
The Genix Group and its subsidiaries make up the largest
Michigan based computer operations management firm and one of the top
ten in the United States.
11. The Genix Group, Inc., through the subsidiaries
listed below, provides computer operations
management, data processing, network design and
management, large-scale electronic printing and
mailing and business process solution services to
more than a dozen industries in 23 states.
a. Genix Corporation, a Delaware corporation,
located in Pittsburgh, Pennsylvania.
b. MCN Computer Services, Inc., located in
Dearborn, Michigan.
c. The Genix Group, Ltd., located in London,
England.
5
<PAGE>
Gas Technology
MCN's Gas Technology businesses, which also includes G-T
Energy Concepts, Inc. and Fuel Concepts, Inc. under Gas Distribution,
research and develop innovative applications for natural gas in
pressurized combustion technologies and as a fuel for vehicles and
other applications.
12. Combustion Concepts, Inc., is engaged in the
development of pressurized combustion technologies
which provides increased fuel efficiency, heat
uniformity and compactness of equipment.
Other
13. Bridgewater Holdings, Inc., is a 33-1/3% limited
partner in a 17-story commercial real estate
complex located in Grand Rapids, Michigan.
E. MCN MICHIGAN LIMITED PARTNERSHIP (MCN Michigan): MCN is the 1%
general partner in MCN Michigan, a Michigan limited partnership. MCN
Michigan exists for the sole purpose of issuing its limited
partnership interests to the public in the form of preferred
securities and investing the proceeds thereof in debt securities of
MCN.
6
<PAGE>
II. PUBLIC UTILITY PROPERTIES
A. MichCon owns the following integrated distribution, transmission,
production and storage properties and facilities, all of which
properties are located in the state of Michigan.
At December 31, 1995, MichCon's distribution system included
15,804 miles of distribution mains, 1,051,094 service lines and
1,175,020 active meters. MichCon owns 2,515 miles of transmission and
production lines which deliver natural gas to the distribution
districts and interconnect its storage fields with the sources of
supply and the market areas. MichCon's compressor facilities related
to transmission and production have a total rated capacity of 30,500
horsepower and 4,149 horsepower, respectively. Properties relating to
five underground natural gas storage fields with an aggregate working
gas storage capacity of approximately 130 Bcf consist principally of
474 gas storage wells (96 of which are observation wells), 113 miles
of field lines, dehydration plants and compressor facilities with a
total rated capacity of 71,000 horsepower. MichCon also owns district
office buildings, service buildings and gas receiving and metering
stations. MichCon occupies its principal office buildings, portions
of which are subleased, in Detroit and Grand Rapids, Michigan under
long-term leases.
B. Citizens owns the following properties, all of which are located in
Michigan.
At December 31, 1995, Citizens' distribution system included
405 miles of distribution mains, 12,645 service lines, and 13,474
active meters. Citizens owns all of its properties used in the
conduct of the utility business. Included is a two story office
building and a one story service center.
III. PUBLIC UTILITY DISTRIBUTION AND PURCHASE OF NATURAL GAS
A. During the year ended December 31, 1995, MichCon distributed and
purchased the following volumes of natural gas:
1. 206,951,000 Mcf of natural gas was distributed at retail
within the state of Michigan. Also, 145,288,000 Mcf of
natural gas was distributed at retail under transportation
contracts within the state of Michigan.
2. No volumes of natural gas were distributed at retail outside
the state of Michigan.
3. No volumes of natural gas were distributed at wholesale
outside the state of Michigan.
4. 101,881,000 Mcf of natural gas was purchased from various
suppliers outside of the state of Michigan. These volumes
were transported by interstate pipeline suppliers to points
of delivery within the state of Michigan.
B. During the year ended December 31, 1995, Citizens distributed and
purchased the following volumes of natural gas:
1. 2,865,000 Mcf of natural gas was distributed at retail
within the state of Michigan and 473,000 Mcf of natural gas
was distributed at retail under transportation contracts
within the state of Michigan.
2. No volumes of natural gas were distributed at retail outside
the state of Michigan.
3. No volumes of natural gas were distributed at wholesale
outside the state of Michigan.
4. No volumes of natural gas were purchased outside the state
of Michigan.
7
<PAGE>
IV. INTEREST IN EXEMPT WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES
None.
8
<PAGE>
EXHIBITS
Exhibit A - Attached hereto as Exhibit A are the unaudited
Consolidating Statement of Income for the year ended
December 31, 1995 and Consolidating Statement of Financial
Position as of December 31, 1995, for MCN Corporation, MCN
Investment Corporation and the Gas Services segment of MCN
Investment Corporation.
Exhibit B - Attached hereto as Exhibit B is the Financial Data
Schedule summarizing certain financial information for MCN
Corporation.
Exhibit C - Corporate Structure, Exempt Wholesale Generators and
Foreign Utility Companies
Not applicable.
9
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
MCN Corporation
Consolidating Income Statement
(Thousands of Dollars)
For the Year Ended December 31, 1995
(Unaudited)
Blue Lake MCN MCNIC MCN
MCN MichCon Citizens Holdings Michigan Consol. Elim. Consol.
--- ------- -------- --------- -------- ------- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues
Gas sales $ -- $ 917,180 $ 14,716 $ -- $ -- $ 390,040 $ (4,800) $ 1,317,136
Transportation and
storage services -- 121,130 448 -- -- 10,512 (7,642) 124,448
Computer operations
services and other -- 42,503 (2) -- -- 116,109 (15,254) 143,356
-------- ----------- -------- ------ ------- --------- --------- -----------
Total operating revenues -- 1,080,813 15,162 -- -- 516,661 (27,696) 1,584,940
-------- ----------- -------- ------ ------- --------- --------- -----------
Operating Expenses
Cost of gas -- 483,962 7,451 -- -- 302,273 (7,493) 786,193
Operation and maintenance (9,641) 294,424 4,071 -- 119 145,763 (20,203) 414,533
Depreciation, depletion
and amortization 1,036 89,128 635 -- -- 30,767 -- 121,566
Property and other taxes 742 57,012 588 -- -- 8,081 -- 66,423
-------- ----------- -------- ------ ------- --------- --------- -----------
Total operating expenses (7,863) 924,526 12,745 -- 119 486,884 (27,696) 1,388,715
-------- ----------- -------- ------ ------- --------- --------- -----------
Operating Income (Loss) 7,863 156,287 2,417 -- (119) 29,777 -- 196,225
-------- ----------- -------- ------ ------- --------- --------- -----------
Equity in Earnings (Loss)
of Joint Ventures -- (375) -- 3,433 -- 2,187 -- 5,245
-------- ----------- -------- ------ ------- --------- --------- -----------
Other Income and (Deductions)
Equity in earnings of
subsidiaries 96,756 1,114 -- -- -- 1,113 (98,983) --
Interest income 151 3,983 103 -- 9,478 1,491 (9,525) 5,681
Interest on long-term debt -- (35,820) (76) -- -- (9,860) -- (45,756)
Other interest expense (9,584) (7,053) (13) -- -- (4,516) 9,544 (11,622)
Dividends on preferred
securities of subsidiaries -- (235) -- -- -- -- (9,375) (9,610)
Minority interest -- -- -- -- -- (2,491) -- (2,491)
Other 1,586 (5,409) 42 1 21 962 (167) (2,964)
-------- ----------- -------- ------ ------- --------- --------- -----------
Total other income and
(deductions) 88,909 (43,420) 56 1 9,499 (13,301) (108,506) (66,762)
-------- ----------- -------- ------ ------- --------- --------- -----------
Income Before Income Taxes 96,772 112,492 2,473 3,434 9,380 18,663 (108,506) 134,708
Income Tax Provision (Benefit) 16 41,004 896 1,206 -- (5,170) -- 37,952
-------- ----------- -------- ------ ------- --------- --------- -----------
Net Income $ 96,756 $ 71,488 $ 1,577 $2,228 $ 9,380 $ 23,833 $(108,506) $ 96,756
======== =========== ======== ====== ======= ========= ========= ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
MCN Corporation
Consolidating Balance Sheet
(Thousands of Dollars)
As of December 31, 1995
(Unaudited)
Blue Lake MCN MCNIC MCN
MCN MichCon Citizens Holdings Michigan Consol. Elim. Reclasses Consol.
--- ------- -------- --------- -------- ------- ----- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Current Assets
Cash and temporary cash
investments at cost
(which approximates
market value) $ 1,304 $ 13,946 $ 144 $ 24 $ -- $ 10,460 $ (1,304) $ (5,315) $ 19,259
Accounts receivable 3,029 188,353 1,927 -- -- 147,511 (9,110) -- 331,710
Allowance for doubtful
accounts -- (13,250) (70) -- -- (445) -- -- (13,765)
Accrued unbilled revenues -- 91,134 1,277 -- -- -- -- (1) 92,410
Gas in inventory -- 40,191 -- -- -- 31,572 -- -- 71,763
Property taxes assessed
applicable to
future periods 150 56,949 26 -- -- 3,508 -- -- 60,633
Gas receivable -- -- -- -- -- -- -- 19,266 19,266
Other 285 32,498 494 -- -- 4,924 (182) (3,799) 34,220
---------- ----------- -------- -------- ---------- ----------- --------- ----------- -----------
4,768 409,821 3,798 24 -- 197,530 (10,596) 10,151 615,496
---------- ----------- -------- -------- ---------- ----------- --------- ----------- -----------
Deferred Charges and
Other Assets
Investment in
subsidiaries 762,409 7,914 -- -- -- 7,880 (778,203) -- --
Investment in and
advances to
joint ventures 6,600 12,404 -- 17,419 -- 92,603 -- -- 129,026
Deferred
postretirement
benefit cost -- -- -- -- -- -- -- 13,112 13,112
Deferred
environmental
costs -- -- -- -- -- -- -- 35,000 35,000
Prepaid pension costs -- -- -- -- -- -- -- 23,827 23,827
Other 5,347 212,903 6,178 262 101,100 115,413 (99,956) (195,814) 145,433
---------- ----------- -------- -------- ---------- ----------- --------- ----------- -----------
774,356 233,221 6,178 17,681 101,100 215,896 (878,159) (123,875) 346,398
---------- ----------- -------- -------- ---------- ----------- --------- ----------- -----------
Property, Plant and
Equipment, at cost 9,023 2,413,120 18,761 -- -- 719,650 -- -- 3,160,554
Less: Accumulated
depreciation
and depletion 2,055 1,151,160 7,677 -- -- 62,916 -- -- 1,223,808
---------- ----------- -------- -------- ---------- ----------- --------- ----------- -----------
6,968 1,261,960 11,084 -- -- 656,734 -- -- 1,936,746
---------- ----------- -------- -------- ---------- ----------- --------- ----------- -----------
$ 786,092 $ 1,905,002 $ 21,060 $ 17,705 $ 101,100 $ 1,070,160 $(888,755) $ (113,724) $ 2,898,640
========== =========== ======== ======== ========== =========== ========= =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MCN Corporation Exhibit A
Consolidating Balance Sheet
(Thousands of Dollars)
As of December 31, 1995
(Unaudited)
Blue Lake MCN MCNIC MCN
MCN MichCon Citizens Holdings Michigan Consol. Elim. Reclasses Consol.
--- ------- -------- --------- -------- ------- ----- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Liabilities
and Capitalization
Current Liabilities
Accounts payable $ 2,709 $ 108,208 $ 1,802 $-- $-- $ 112,468 $ (8,165) $ 162 $ 217,184
Notes payable -- 196,635 1,345 -- -- 49,000 (1,345) -- 245,635
Current portion of
long-term debt,
capital lease
obligations and
redeemable
cumulative
preferred stock -- 3,969 55 -- -- 2,976 -- -- 7,000
Federal income,
property
and other
taxes payable 908 85,195 474 (10) -- (3,182) -- (1) 83,384
Refunds payable
to customers -- 115 -- -- -- -- -- 670 785
Customer deposits -- 11,531 19 -- -- -- -- -- 11,550
Other 3,073 88,058 881 -- -- 5,278 (6) (10,494) 86,790
----------- ---------- -------- --------- ----------- ----------- --------- ----------- -----------
6,690 493,711 4,576 (10) -- 166,540 (9,516) (9,663) 652,328
----------- ---------- -------- --------- ----------- ----------- --------- ----------- -----------
Deferred Credits
and Other
Liabilities
Accumulated
deferred
income taxes (4,677) 287,184 1,981 1,956 -- 79,687 -- (240,235) 125,896
Unamortized
investment
tax credit -- 36,437 360 -- -- -- -- -- 36,797
Tax benefits
amortizable to
customers -- -- -- -- -- -- -- 114,668 114,668
Accrued
postretirement
benefit cost -- -- -- -- -- -- -- 15,551 15,551
Accrued
environmental
costs -- -- -- -- -- -- -- 35,000 35,000
Minority
interest -- -- -- -- -- 18,375 -- -- 18,375
Other 119,163 81,286 5,290 -- -- 69,800 (101,101) (29,045) 145,393
----------- ---------- -------- --------- ----------- ----------- --------- ----------- -----------
114,486 404,907 7,631 1,956 -- 167,862 (101,101) (104,061) 491,680
----------- ---------- -------- --------- ----------- ----------- --------- ----------- -----------
Long-Term Debt,
Including
Capital
Lease
Obligations -- 516,563 420 -- -- 476,424 -- -- 993,407
----------- ---------- -------- --------- ----------- ----------- --------- ----------- -----------
Redeemable
Cumulative Pref.
Securities -- -- -- -- 96,449 -- -- -- 96,449
----------- ---------- -------- --------- ----------- ----------- --------- ----------- -----------
Common
Shareholders'
Equity
Common stock 664 10,300 2,338 -- 4,914 5 (17,557) -- 664
Additional
paid-in
capital 446,195 211,777 62 7,025 -- 207,103 (426,108) -- 446,054
Retained
earnings 218,425 267,744 6,033 8,734 (263) 52,226 (334,473) -- 218,426
Unearned
compensation (368) -- -- -- -- -- -- -- (368)
----------- ---------- -------- --------- ----------- ----------- --------- ----------- -----------
664,916 489,821 8,433 15,759 4,651 259,334 (778,138) -- 664,776
----------- ---------- -------- --------- ----------- ----------- --------- ----------- -----------
$ 786,092 $1,905,002 $ 21,060 $ 17,705 $ 101,100 $ 1,070,160 $(888,755) $ (113,724) $ 2,898,640
=========== ========== ======== ========= =========== =========== ========= =========== ===========<PAGE>
</TABLE>
<TABLE>
<CAPTION>
Exhibit A
MCN Corporation
MCN Investment Corporation
Consolidating Income Statement
(Thousands of Dollars)
For the Year Ended December 31, 1995
(Unaudited)
The Genix Total
Combustion Group Gas MCNIC
MCNIC Bridgewater Concepts Consol. Services Elim. Consol.
----- ----------- -------- ---------- -------- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues
Gas sales $-- $-- $-- $-- $ 390,239 $ (199) $ 390,040
Transportation and
storage services -- -- -- -- 10,512 -- 10,512
Computer operations
services and other -- -- -- 105,161 10,947 1 116,109
-------- ------ ------ --------- --------- -------- ---------
Total operating revenues -- -- -- 105,161 411,698 (198) 516,661
-------- ------ ------ --------- --------- -------- ---------
Operating Expenses
Cost of gas -- -- -- 199 302,272 (198) 302,273
Operation and maintenance 20,776 -- 301 87,266 37,420 -- 145,763
Depreciation, depletion
and amortization (283) -- 15 6,981 24,054 -- 30,767
Property and other taxes 330 -- 4 2,719 5,028 -- 8,081
-------- ------ ------ --------- --------- -------- ---------
Total operating expenses 20,823 -- 320 97,165 368,774 (198) 486,884
-------- ------ ------ --------- --------- -------- ---------
Operating Income (Loss) (20,823) -- (320) 7,996 42,924 -- 29,777
-------- ------ ------ --------- --------- -------- ---------
Equity in Earnings (Loss)
of Joint Ventures 91 -- -- -- 2,096 -- 2,187
-------- ------ ------ --------- --------- -------- ---------
Other Income and (Deductions)
Equity in earnings of
subsidiaries 41,947 -- -- -- 1,113 (41,947) 1,113
Interest income 2,563 -- -- 453 736 (2,261) 1,491
Interest on long-term debt (5,872) -- -- (130) (3,858) -- (9,860)
Other interest expense (4,234) -- -- (2,086) (331) 2,135 (4,516)
Dividends on preferred
securities of subsidiaries -- -- -- -- -- -- --
Minority interest -- -- -- -- (2,491) -- (2,491)
Other (480) -- (8) (24) 1,348 126 962
-------- ------ ------ --------- --------- -------- ---------
Total other income and
(deductions) 33,924 -- (8) (1,787) (3,483) (41,947) (13,301)
-------- ------ ------ --------- --------- -------- ---------
Income Before Income Taxes 13,192 -- (328) 6,209 41,537 (41,947) 18,663
Income Tax Provision
(Benefit) (10,641) (5) (118) 2,622 2,972 -- (5,170)
-------- ------ ------ --------- --------- -------- ---------
Net Income (Loss) $ 23,833 $ 5 $ (210) $ 3,587 $ 38,565 $(41,947) $ 23,833
======== ====== ====== ========= ========= ======== =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
MCN Corporation
MCN Investment Corporation
Consolidating Balance Sheet
(Thousands of Dollars)
As of December 31, 1995
(Unaudited)
The Genix Total
Combustion Group Gas MCNIC
MCNIC Bridgewater Concepts Consol. Services Elim. Consol.
----- ----------- ---------- ---------- -------- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets
Current Assets
Cash and temporary
cash investments
at cost (which
approximates
market value) $ 10,869 $ 31 $ 19 $ 1,031 $ 8,163 $ (9,653) $ 10,460
Accounts receivable 154 -- 101 21,918 125,431 (93) 147,511
Allowance for doubtful
accounts -- -- -- (195) (250) -- (445)
Gas in inventory -- -- -- -- 31,572 -- 31,572
Property taxes assessed
applicable to
future periods -- 33 3 -- 3,472 -- 3,508
Other 486 -- -- 4,135 459 (156) 4,924
-------- ------ ------- --------- --------- ----------- -----------
11,509 64 123 26,889 168,847 (9,902) 197,530
-------- ------ ------- --------- --------- ----------- -----------
Deferred Charges and
Other Assets
Investment in
subsidiaries 641,527 -- -- -- 7,880 (641,527) 7,880
Investment in
and advances
to joint ventures 760 -- -- -- 91,843 -- 92,603
Other 20,808 -- 74 10,320 104,196 (19,985) 115,413
-------- ------ ------- --------- --------- ----------- -----------
663,095 -- 74 10,320 203,919 (661,512) 215,896
-------- ------ ------- --------- --------- ----------- -----------
Property, Plant and
Equipment,
at cost 818 1,480 135 50,107 667,110 -- 719,650
Less: Accumulated
depreciation
and depletion 30 -- 51 19,390 43,445 -- 62,916
-------- ------ ------- --------- --------- ----------- -----------
788 1,480 84 30,717 623,665 -- 656,734
-------- ------ ------- --------- --------- ----------- -----------
$675,392 $1,544 $ 281 $ 67,926 $ 996,431 $ (671,414) $ 1,070,160
======== ====== ======= ========= ========= =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
MCN Corporation
MCN Investment Corporation
Consolidating Balance Sheet
(Thousands of Dollars)
As of December 31, 1995
(Unaudited)
The Genix
Combustion Group Gas MCNIC
MCNIC Bridgewater Concepts Consol. Services Elim. Consol.
----- ----------- ---------- ---------- -------- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Liabilities and Capitalization
Current Liabilities
Accounts payable $ 669 $ 1 $ 95 $ 7,639 $ 104,083 $ (19) $ 112,468
Notes payable 49,244 -- -- 9,385 23 (9,652) 49,000
Current portion of
long-term
debt, capital
lease obligations
and redeemable
cumulative preferred
stock -- -- -- 103 2,873 -- 2,976
Federal income, property
and other taxes
payable (1,217) (355) 28 991 (2,629) -- (3,182)
Other 4,304 -- (1) 3,356 (2,164) (217) 5,278
--------- ------- -------- -------- --------- ----------- -----------
53,000 (354) 122 21,474 102,186 (9,888) 166,540
--------- ------- -------- -------- --------- ----------- -----------
Deferred Credits
and Other
Liabilities
Accumulated deferred
income taxes 1,987 414 60 2,595 74,631 -- 79,687
Minority interest -- -- -- -- 18,375 -- 18,375
Other 6,273 -- -- 22,809 60,718 (20,000) 69,800
--------- ------- -------- -------- --------- ----------- -----------
8,260 414 60 25,404 153,724 (20,000) 167,862
--------- ------- -------- -------- --------- ----------- -----------
Long-Term Debt,
Including Capital
Lease Obligations 354,657 -- -- 73 121,694 -- 476,424
--------- ------- -------- -------- --------- ----------- -----------
Common Shareholders'
Equity
Common stock 5 -- 1 -- 51,728 (51,729) 5
Additional paid-in
capital 207,244 1,488 1,695 18,685 508,999 (531,008) 207,103
Retained earnings 52,226 (4) (1,597) 2,290 58,100 (58,789) 52,226
--------- ------- -------- -------- --------- ----------- -----------
259,475 1,484 99 20,975 618,827 (641,526) 259,334
--------- ------- -------- -------- --------- ----------- -----------
$ 675,392 $ 1,544 $ 281 $ 67,926 $ 996,431 $ (671,414) $ 1,070,160
========= ======= ======== ======== ========= =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
MCN Corporation
Gas Services (Excluding Blue Lake Holdings)
Consolidating Income Statement
(Thousands of Dollars)
For the Year Ended December 31, 1995
(Unaudited)
Pipeline &
Cogen Storage Supply Processing Total
CoEnergy CoEnergy CoEnergy Devel. Devel. Devel. Group Gas
Canadian Trading Supply Consol. Consol. Consol. Consol. Elim. Services
-------- ------- -------- ------- ------- ------- ---------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues
Gas sales $ -- $ 336,227 $40,128 $ 17,653 $ 187 $ 61,528 $ 44 $(65,528) $ 390,239
Transportation and
storage services -- -- -- -- 4,845 2 10,510 (4,845) 10,512
Computer operations
services and other -- 164 -- 45 -- 7,641 3,097 -- 10,947
-------- --------- ------- -------- ------- -------- -------- -------- ---------
Total operating
revenues -- 336,391 40,128 17,698 5,032 69,171 13,651 (70,373) 411,698
-------- --------- ------- -------- ------- -------- -------- -------- ---------
Operating Expenses
Cost of gas -- 316,220 37,185 14,345 127 (73) (4) (65,528) 302,272
Operation and
maintenance 1 17,007 -- 766 4,614 17,563 2,314 (4,845) 37,420
Depreciation,
depletion
and
amortization -- (72) -- (182) -- 22,517 1,791 -- 24,054
Property and
other taxes -- 36 8 93 (13) 3,606 1,298 -- 5,028
-------- --------- ------- -------- ------- -------- -------- -------- ---------
Total operating
expenses 1 333,191 37,193 15,022 4,728 43,613 5,399 (70,373) 368,774
-------- --------- ------- -------- ------- -------- -------- -------- ---------
Operating Income
(Loss) (1) 3,200 2,935 2,676 304 25,558 8,252 -- 42,924
-------- --------- ------- -------- ------- -------- -------- -------- ---------
Equity in Earnings
(Loss) of
Joint Ventures -- 17 -- (994) 2,446 -- 627 -- 2,096
-------- --------- ------- -------- ------- -------- -------- -------- ---------
Other Income
and (Deductions)
Equity in earnings of
subsidiaries -- -- -- -- 1,113 -- -- -- 1,113
Interest income 32 36 -- 102 241 57 268 -- 736
Interest on
long-term debt -- (35) -- -- (22) (2,312) (1,489) -- (3,858)
Other interest
expense -- -- -- -- -- (316) (15) -- (331)
Dividends on
preferred
securities
subsidiaries -- -- -- -- -- -- -- -- --
Minority interest -- -- -- -- -- -- (2,491) -- (2,491)
Other (94) (99) -- 1,576 (220) 125 60 -- 1,348
-------- --------- ------- -------- ------- -------- -------- -------- ---------
Total other income
and (deductions) (62) (98) -- 1,678 1,112 (2,446) (3,667) -- (3,483)
-------- --------- ------- -------- ------- -------- -------- -------- ---------
Income Before
Income Taxes (63) 3,119 2,935 3,360 3,862 23,112 5,212 -- 41,537
Income Tax Provision
(Benefit) (28) 1,108 1,027 1,143 963 (3,096) 1,855 -- 2,972
-------- --------- ------- -------- ------- -------- -------- -------- ---------
Net Income $ (35) $ 2,011 $ 1,908 $ 2,217 $ 2,899 $ 26,208 $ 3,357 $-- $ 38,565
======== ========= ======= ======== ======= ======== ======== ======== =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
MCN Corporation
Gas Services (excluding Blue Lake Holdings)
Consolidating Balance Sheet
(Thousands of Dollars)
As of December 31, 1995
(Unaudited)
Pipeline &
Cogen Storage Supply Processing Total
CoEnergy CoEnergy CoEnergy Devel. Devel. Devel. Group, Gas
Canadian Trading Supply Co. Consol. Consol. Consol. Consol. Elim. Services
-------- ------- ---------- ------- -------- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Current Assets
Cash and temporary cash
investments at cost
(which approximates
market value) $ 1,822 $ 2,687 $ 82 $ 520 $ 141 $ 698 $ 2,213 $ -- $ 8,163
Accounts receivable -- 92,459 5,811 7,954 44 20,811 4,782 (6,430) 125,431
Allowance for
doubtful account -- (250) -- -- -- -- -- -- (250)
Gas in inventory -- 30,001 -- 1,571 -- -- -- -- 31,572
Property taxes
assessed applicable
to future periods -- 10 -- -- -- 2,094 1,368 -- 3,472
Other -- (10,414) -- 27 33 10,552 261 -- 459
-------- --------- ------- ------- -------- -------- --------- --------- ---------
1,822 114,493 5,893 10,072 218 34,155 8,624 (6,430) 168,847
-------- --------- ------- ------- -------- -------- --------- --------- ---------
Deferred Charges and
Other Assets
Investment in
subsidiaries -- -- -- -- 7,880 -- -- -- 7,880
Investment in and
advances to joint
ventures -- 92 -- 6,480 20,507 2,012 62,752 -- 91,843
Other 13 78,052 -- 5,108 3,336 14,506 3,312 (131) 104,196
-------- --------- ------- ------- -------- -------- --------- --------- ---------
13 78,144 -- 11,588 31,723 16,518 66,064 (131) 203,919
-------- --------- ------- ------- -------- -------- --------- --------- ---------
Property, Plant and
Equipment,
at cost -- 2,162 -- 188 795 576,810 87,155 -- 667,110
Less: Accumulated
depreciation
and depletion -- 219 -- 13 -- 34,903 8,310 -- 43,445
-------- --------- ------- ------- -------- -------- --------- --------- ---------
-- 1,943 -- 175 795 541,907 78,845 -- 623,665
-------- --------- ------- ------- -------- -------- --------- --------- ---------
$ 1,835 $ 194,580 $ 5,893 $21,835 $ 32,736 $592,580 $ 153,533 $ (6,561) $ 996,431
======== ========= ======= ======= ======== ======== ========= ========= =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
MCN Corporation
Gas Services (Excluding Blue Lake Holdings)
Consolidating Balance Sheet
(Thousands of Dollars)
As of December 31, 1995
(Unaudited)
Pipeline &
Cogen Storage Supply Processing Total
CoEnergy CoEnergy CoEnergy Devel. Devel. Devel. Group, Gas
Canadian Trading Supply Consol. Consol. Consol. Consol. Elim. Services
-------- -------- -------- ------- -------- ------- ---------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Liabilities and
Capitalization
Current Liabilities
Accounts payable $ 1,481 $ 64,021 $ 8,062 $ 4,001 $ 396 $ 30,710 $ 1,974 $ (6,562) $ 104,083
Notes payable -- -- -- -- -- -- 23 -- 23
Current portion of
long-term debt,
capital lease
obligations and
redeemable
cumulative
preferred
securities -- -- -- -- -- -- 1,113 1,760 2,873
Federal income,
property and
other taxes
payable (11) 884 (495) (118) 153 (5,383) 2,341 -- (2,629)
Other -- (3,304) -- -- (1) 1,975 926 (1,760) (2,164)
--------- --------- -------- -------- --------- --------- --------- --------- ---------
1,470 61,601 7,567 3,883 548 27,302 6,377 (6,562) 102,186
--------- --------- -------- -------- --------- --------- --------- --------- ---------
Deferred Credits and
Other Liabilities
Accumulated deferred
income taxes -- (326) -- 11,118 3,114 52,137 8,588 -- 74,631
Minority interest -- -- -- -- -- -- 18,375 -- 18,375
Other -- 58,466 -- 2,253 (1) -- (1) 1 60,718
--------- --------- -------- -------- --------- --------- --------- --------- ---------
-- 58,140 -- 13,371 3,113 52,137 26,962 1 153,724
--------- --------- -------- -------- --------- --------- --------- --------- ---------
Long-Term Debt,
Including Capital
Lease Obligations -- -- -- -- 704 103,291 17,699 -- 121,694
--------- --------- -------- -------- --------- --------- --------- --------- ---------
Common Shareholders'
Equity
Common stock -- -- -- -- 46 51,682 -- -- 51,728
Additional paid-in
capital 222 66,920 (3,582) 561 33,405 312,336 99,137 -- 508,999
Retained earnings 143 7,919 1,908 4,020 (5,080) 45,832 3,358 -- 58,100
--------- --------- -------- -------- --------- --------- --------- --------- ---------
365 74,839 (1,674) 4,581 28,371 409,850 102,495 -- 618,827
--------- --------- -------- -------- --------- --------- --------- --------- ---------
$ 1,835 $ 194,580 $ 5,893 $ 21,835 $ 32,736 $ 592,580 $ 153,533 $ (6,561) $ 996,431
========= ========= ======== ======== ========= ========= ========= ========= =========
</TABLE>
<PAGE>
SIGNATURES
The above-named claimant has caused this statement to be duly
executed on its behalf by its authorized officer on this 26th day of February,
1996.
MCN CORPORATION
By: /s/ Patrick Zurlinden
-------------------------------
Patrick Zurlinden
Vice President, Controller and
Chief Accounting Officer
CORPORATE SEAL:
Attest:
/s/ Daniel L. Schiffer
- ---------------------------
Daniel L. Schiffer
Senior Vice President,
General Counsel and Secretary
Name, title, and address of officer to whom notices and correspondence
concerning this statement should be addressed:
Daniel L. Schiffer
Senior Vice President,
General Counsel and Secretary
MCN Corporation
500 Griswold Street
Detroit, Michigan 48226
<TABLE> <S> <C>
<ARTICLE> OPUR3
<LEGEND>
THIS SCHEDULE CONTAINS MCN CORPORATION'S SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AS OF
DECEMBER 31, 1995, AND THE RELATED STATEMENT OF CONSOLIDATED
INCOME FOR THE YEAR ENDED DECEMBER 31, 1995, AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 2,898,640
<TOTAL-OPERATING-REVENUES> 1,584,940
<NET-INCOME> 96,756
</TABLE>
