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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, 1996
MCN CORPORATION d/b/a MCN ENERGY GROUP INC.
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), doing business
as MCN Energy Group Inc. since January 14, 1997, is a diversified energy
holding company with natural gas markets and investments throughout North
America. At its 1997 Annual Meeting of Shareholders to be held on April 22,
1997, MCN's Shareholders will vote on a proposed amendment to the MCN Articles
of Incorporation to change the name of the Corporation to MCN Energy Group Inc.
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 groups are Gas
Distribution and Diversified Energy. In June 1996, MCN completed the sale of
its computer operations subsidiary, The Genix Group, Inc. (Genix), to
Affiliated Computer Services, Inc. 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.
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1. Michigan Consolidated Homes Limited Dividend Housing Corporation
a/k/a MichCon Homes, 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.
3. Blue Lake Holdings, Inc. (Blue Lake), 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, the other half is
owned by Storage Development Company, a subsidiary of MCNIC. In
February 1997, Diversified Energy signed an agreement to sell its
share of Blue Lake effective December 1997.
4. MichCon Fuel Services Company markets natural gas as a vehicular
fuel.
5. MichCon Pipeline Company, through the subsidiaries below, is engaged
in pipeline projects.
a. MichCon Gathering Company owns and operates the Antrim Expansion
Pipeline.
b. 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.
c. 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.
d. Westside Pipeline Company invests in various pipeline assets
through its 82.62% interest in the Jordan Valley Partnership.
On January 1, 1996 Westside Pipeline Company transferred its
interests in Warner Treating Limited Liability Company and
Terra Westside Processing Company to MCNIC Michigan Holdings,
Inc. In addition, Westside Pipeline Company transferred its 6
mile pipeline to MCNIC Michigan Holdings, Inc. Westside Pipeline
Company was then transferred from MCNIC to MichCon.
e. Thunder Bay Gathering Company was formed in 1996 and holds an
option to acquire the Thunder Bay Pipeline.
6. Huron Pipeline Company was formed in 1996 to acquire an ownership
interest in the ANR Link Pipeline, which interconnects with a
pipeline owned by Niagara Gas Transmission Limited, a subsidiary of
The Consumers Gas Co. Ltd.
7. G-T Energy Concepts, Inc. ceased business operations on August 31,
1996 and is planned to be dissolved during 1997. G-T Energy
Concepts, Inc., developed a natural gas torch and the related
fueling modules which were adapted for use in metal cutting, brazing
and soldering.
8. Fuel Concepts, Inc. was sold on December 6, 1996. Fuel Concepts,
Inc., was involved in the development and commercialization of low
pressure natural gas storage and related technologies.
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 140 years.
Citizens serves approximately 14,000 residential, commercial and
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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 was subject to MCN obtaining authorization from
the SEC for the acquisition under Section 9(a)(2) of PUHCA of 1935. In
September 1996, MCN received notification from the SEC that the
acquisition was consistent with its exemption under PUHCA of 1935.
Southern Missouri Gas Company, L.P. ("SMGC") was formed effective
November 1, 1996.
SMGC is a public utility engaged in the distribution and transmission of
natural gas. SMGC, with its predecessors, has been in business since
1995. At year-end 1996 SMGC served approximately 4,000 residential,
commercial, and industrial customers in southern Missouri. The
principal executive offices of SMGC are located at 301 East 17th Street,
Mountain Grove, Missouri 65711. SMGC conducts all of its business in the
state of Missouri and is subject to the jurisdiction of the Missouri Public
Service Commission as to various phases of its operations, including gas
sales rates, service, and accounting.
DIVERSIFIED ENERGY
D. MCN INVESTMENT CORPORATION: MCNIC, organized in 1986, is the holding
company for MCN's various diversified energy subsidiaries. MCNIC's major
business segment is Gas Services. In the Gas Services segment, MCNIC,
through its subsidiaries and joint ventures, engages in gas and oil
exploration and production (E&P), provides pipeline and processing
services, provides gas storage services, markets natural gas to
large-volume customers and develops gas cogeneration and electric
generation facilities. The sale of MCNIC's computer operations services
subsidiary, Genix, was completed in June 1996. Except where otherwise
indicated, the companies set forth below are wholly owned subsidiaries of
MCNIC.
Gas Services
Exploration & Production
1. MCNIC Oil & Gas Company (MOG), formerly known as
Supply Development Group, Inc., is engaged in natural gas and
oil exploration, development and production in the
Midwest/Appalachia, Midcontinent/Gulf Coast and Western
regions of the U.S. Effective December 31, 1996, Huron Energy
Company was merged into MOG. The following companies are
direct subsidiaries of MOG:
a. Elmira Antrim Company
b. Geo Trend Exploration, Inc.
c. Green Oak Development Company
d. Green River Antrim Company
e. Otsego Exploration Company, L.L.C.
f. MCNIC Enhanced Production, Inc. (formerly known as
CoEnergy Enhanced Production, Inc.), has a 75% interest
in Otsego EOR, L.L.C.
g. MCNIC Oil & Gas Midcontinent, Inc., as the surviving
entity after merger with CoEnergy Anadarko, Inc., MCNIC Oil
& Gas Operating Company (formerly known as CoEnergy
Operating Company), CoEnergy Midcontinent, Inc., and P'Bell
Energy Company.
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h. MCNIC Oil & Gas Canada, Inc. (a New Brunswick
corporation), (formerly known as CoEnergy Canadian
Exploration, Inc.)
i. MCNIC Oil & Gas Properties, Inc. (formerly known as
CoEnergy Rockies, Inc.). Effective February 28, 1997,
PetroVentures Exploration Company, Southwest Gas Supply,
Inc., MGS Development Company and CoEnergy Central
Exploration, Inc. will be merged into MCNIC Oil & Gas
Properties, Inc.
j. MCNIC Oil & Gas Reid Properties, Inc. (a Delaware
corporation), (formerly known as Reid Holdings, Inc.)
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.
iii. MCNIC Oakwood Gathering, Inc. (a Delaware
corporation), (formerly Oakwood Gathering, Inc.)
k. MCNIC West Coast Company
l. Warner Antrim Company
Pipelines & Processing
MCNIC's Pipelines & Processing businesses are involved in ventures that
gather and transport natural gas from producing fields to processing plants
and/or markets. This business also includes plants which process natural gas to
remove CO2 and other impurities and recover natural gas liquids. Additionally
this segment has an investment in a methanol production facility.
2. MCNIC Pipeline & Processing Company, formerly known as
Pipeline & Processing Group, Inc., engages in pipeline and
processing projects through the following subsidiaries and
partnerships.
a. MCNIC Offshore Pipeline & Processing Company (formerly
known as CoEnergy Offshore Pipeline & Processing Company),
holds a 33% interest in the Blue Dolphin System.
b. MCNIC Michigan Holdings, Inc., (formerly known as Otsego
Holdings, Inc.)
i. MCNIC CSG Pipeline Company (formerly known as CoEnergy
CSG Pipeline Company), holds a 50% interest in
Cardinal States Gathering.
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)
c. MCNIC East Coast Pipeline Company (formerly known as East
Coast Pipeline Company), holds a 20% interest in Portland
Natural Gas Transmission System.
d. MCNIC Jonah Pipeline Company (formerly known as Jonah
Pipeline Company), holds a 33% partnership interest in
Jonah Gas Gathering Company.
e. MCNIC Gulf Coast Gathering Corporation, holds a 1% general
partnership interest in Copano Field Services Group, L.P.
f. MCNIC Gulf Coast Limited, Inc., holds a 49% limited
partnership interest in Copano Field Services Group, L.P.
g. MCNIC Mobile Bay Gathering Company holds a 35% interest in
Dauphin Island Gathering Partners.
h. MCNIC Mobile Bay Processing Company holds a 49.5% interest
in Mobile Bay Processing Partners.
i. MCNIC South Texas Gathering Company holds a 1% general
partnership interest in each of CFS/Copano Bay, L.P.,
CFS/South Texas, L.P., and CFS/Agua Dulce, L.P.
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j. MCNIC Rodeo Gathering, Inc. (formerly known as Rodeo
Gathering, Inc.) holds an 80% interest in Black Bear
Venture, L.L.C.
k. MCNIC General Methanol Company holds a 1% general
partnership interest in Lyondell Methanol Company, L.P.
l. MCNIC Methanol Holdings Company holds a 24% limited
partnership interest in Lyondell Methanol Company, L.P.
Gas Storage
3. 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.
Storage Development Company holds a 33% interest in South
Romeo Gas Storage Corporation.
a. South Romeo Gas Storage Company, a Michigan partnership
in which Storage Development Company has a 50% interest,
owns and operates the Washington 28 Storage Field, a
10 Bcf storage field in southeastern Michigan which
provides storage services to MCNIC's Energy & Power
Generation operations. South Romeo Gas Storage Company
holds a 33% interest in South Romeo Gas Storage
Corporation.
b. W-10 Holdings, Inc., holds a 50% interest in a
partnership that intends to develop and operate the
Washington 10 Storage Field, 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.
Energy Marketing & Power Generation
MCNIC's Energy Marketing & Power Generation 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 and electric generation related projects
and facilities.
4. 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, a
50% interest in Torch-CoEnergy Limited Liablity Company and a
50% interest in Michigan Gas Exchange LLC.
5. CoEnergy Canadian Holdings, Ltd., a New Brunswick corporation,
was formed to market and sell natural gas in Canada and the
northeastern United States.
6. CoEnergy Supply Company engages in the purchase and sale of
natural gas, a portion of which is produced by MOG, an
affiliate.
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7. MCNIC Power Company, formerly known as Cogen Development
Company, pursues cogeneration related opportunities
throughout the United States and Canada.
a. CDC Ada, Inc., is a 99% limited partner in Ada
Cogeneration Limited Partnership, which owns and operates
a 30 megawatt natural gas-fueled cogeneration facility in
western Michigan.
b. MCNIC Ada GP, Inc., was formed in 1996 to hold the 1%
general partnership interest in the Ada Cogeneration
Limited Partnership.
c. Ludington Cogeneration Co. is the 1% general partner in
Michigan Power L.P., a joint venture that built and
operates a 123 megawatt natural gas-fueled cogeneration
plant in western Michigan.
d. Ludington Cogeneration Holdings, Ltd. is a 49% limited
partner in the 123 megawatt cogeneration plant mentioned
above.
Gas Technology
8. Combustion Concepts, Inc., is engaged in the development of
pressurized combustion technologies which provides increased
fuel efficiency, heat uniformity and compactness of equipment.
Other
9. MCNIC International Holdings and MCNIC - GP International
Holdings, each of Grand Cayman, Cayman Islands, hold a 99% and
1% interest, respectively, in IG-ONE LTD of Port-Louis,
Mauritius. Subject to certain regulatory and other approvals,
MCNIC, through IG-ONE LTD, has agreed to invest approximately
$115 million (of which half will be funded through nonrecourse
financing) in return for a 40 percent interest in Torrent
Power Private Limited, a joint venture with Torrent Group of
Ahmedabad, India. The joint venture will be involved in the
electric generation and distribution business in western
India.
COMPUTER OPERATIONS SERVICES (SOLD JUNE 1996 - DISCONTINUED OPERATIONS)
MCNIC completed the sale of its computer operations services subsidiary,
Genix, in June 1996. At the time of its sale, Genix and its subsidiaries made
up the largest Michigan based computer operations management firm and one of
the top ten in the United States.
1. The Genix Group, Inc., through the subsidiaries listed below,
provided computer operations management, data processing,
network design and management, large-scale electronic
printing and mailing and business process solution services.
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.
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.
F. MCN FINANCING I: MCN is the sole owner of MCN Financing I, a Delaware
Business Trust. MCN Financing I exists for the sole purpose of issuing
preferred securities to the public and lending the gross proceeds thereof
to MCN in exchange for MCN's Junior Subordinated Debentures.
G. MCN FINANCING II: MCN is the sole owner of MCN Financing II, a Delaware
Business Trust. MCN Financing II exists for the sole purpose of issuing
preferred securities and lending the gross proceeds thereof to MCN.
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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, 1996, MichCon's distribution system included 16,257
miles of distribution mains, 1,065,088 service lines and 1,185,445 active
meters. MichCon owns 2,509 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 28,300 horsepower and 4,764 horsepower,
respectively. Properties relating to five underground natural gas
storage fields with an aggregate working gas storage capacity of
approximately 126 Bcf consist principally of 475 gas storage wells (89 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, 1996, Citizens' distribution system included 438
miles of distribution mains, 13,045 service lines, and 14,035 active
meters. Citizens owns all of its properties used in the conduct of the
utility business. Included are a two story office building and a one
story service center (a new two story office building is under
construction).
C. SMGC owns the following properties, all of which are located in Missouri.
At December 31, 1996, SMGC's distribution system included 242 miles
of distribution mains, 5,418 service lines, and 4,122 active meters.
SMGC owns 117 miles of transmission lines which deliver natural gas to
the various cities it serves and metering stations. SMGC leases its
office/service center.
III. PUBLIC UTILITY DISTRIBUTION AND PURCHASE OF NATURAL GAS
A. During the year ended December 31, 1996, MichCon distributed and
purchased the following volumes of natural gas:
1. 217,672,000 Mcf of natural gas was distributed at retail within the
state of Michigan. Also, 146,662,000 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. 142,417,000 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, 1996, Citizens distributed and
purchased the following volumes of natural gas:
1. 3,286,000 Mcf of natural gas was distributed at retail within
the state of Michigan and 233,000 Mcf of natural gas was distributed
at retail under transportation contracts within the state of
Michigan.
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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.
C. During the year ended December 31, 1996, SMGC distributed and purchased
the following volumes of natural gas:
1. 279,000 Mcf of natural gas was distributed at retail within
the state of Missouri and 149,000 Mcf of natural gas was distributed
at retail under transportation contracts within the state of
Missouri.
2. No volumes of natural gas were distributed at retail outside
the state of Missouri.
3. No volumes of natural gas were distributed at wholesale
outside the state of Missouri.
4. 280,000 Mcf of natural gas was purchased from suppliers
outside the state of Missouri. These volumes were transported by
Williams Natural Gas Company to a point of delivery within the state
of Missouri.
IV. INTEREST IN EXEMPT WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES
None.
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EXHIBITS
Exhibit A - Attached hereto as Exhibit A are the unaudited Consolidating
Statements of Income for the year ended December 31, 1996 and
Consolidating Statements of Financial Position as of December 31,
1996, for MCN Corporation, MCNIC and the Gas Services segment of
MCNIC.
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.
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SIGNATURES
The above-named claimant has caused this statement to be duly executed on
its behalf by its authorized officer on this 25th day of February, 1997.
MCN CORPORATION
By: /s/ Harold Gardner
------------------
Harold Gardner
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
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MCN ENERGY GROUP INC.
CONSOLIDATING INCOME STATEMENT
(IN THOUSANDS)
FOR THE YEAR ENDED DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
BLUE LAKE MCN MCN MCNIC
MCN MICHCON CITIZENS HOLDINGS FINANCING MICHIGAN CONSOL.
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<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES
Gas and oil sales $ - $1,085,845 $17,112 $ - $ - $ - $722,790
Transportation - 130,781 257 - - - 441
Other - 42,159 100 - - - 11,210
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- 1,258,785 17,469 - - - 734,441
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OPERATING EXPENSES
Cost of gas - 636,594 9,655 - - - 557,340
Operation and maintenance (3,291) 294,281 4,082 - - (6) 80,330
Depreciation, depletion and amortization 1,272 98,147 668 - - - 45,903
Property and other taxes 1,553 61,762 581 - - - 10,531
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(466) 1,090,784 14,986 - - (6) 694,104
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OPERATING INCOME 466 168,001 2,483 - - 6 40,337
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EQUITY IN EARNINGS (LOSS) OF JOINT VENTURES (325) 886 - 3,965 - - 15,915
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OTHER INCOME AND (DEDUCTIONS)
Equity in earnings of subsidiaries 150,356 - - - - - -
Interest income 138 3,900 67 - 3,082 9,478 3,220
Interest on long-term debt 150 (40,703) (37) - - - (25,928)
Other interest expense (1,204) (8,012) (95) - - - (14,595)
Dividends on preferred securities of subsidiaries - (18) - - - - -
Gains related to DIGP - - - - - - 6,384
Minority interest - (988) - - - - (71)
Other 331 (1,756) 5 - - - (1,054)
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149,771 (47,577) (60) - 3,082 9,478 (32,044)
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INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 149,912 121,310 2,423 3,965 3,082 9,484 24,208
INCOME TAX PROVISION (BENEFIT) (428) 41,486 851 1,390 - - (6,925)
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INCOME FROM CONTINUING OPERATIONS 150,340 79,824 1,572 2,575 3,082 9,484 31,133
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DISCONTINUED OPERATIONS
Income from operations - - - - - - 1,595
Gain on sale - - - - - - 36,176
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- - - - - - 37,771
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NET INCOME $150,340 $ 79,824 $ 1,572 $2,575 $3,082 $9,484 $ 68,904
===========================================================================
<CAPTION>
ELIM. & MCN
RECLASSES CONSOL.
------------------------
<S> <C> <C>
OPERATING REVENUES
Gas and oil sales $ 1,451 $1,827,198
Transportation (11,460) 120,019
Other (3,418) 50,051
------------------------
(13,427) 1,997,268
------------------------
OPERATING EXPENSES
Cost of gas (10,011) 1,193,578
Operation and maintenance (3,416) 371,980
Depreciation, depletion and amortization - 145,990
Property and other taxes - 74,427
------------------------
(13,427) 1,785,975
------------------------
OPERATING INCOME - 211,293
------------------------
EQUITY IN EARNINGS (LOSS) OF JOINT VENTURES (2,574) 17,867
------------------------
OTHER INCOME AND (DEDUCTIONS)
Equity in earnings of subsidiaries (150,356) -
Interest income (12,651) 7,234
Interest on long-term debt 1 (66,517)
Other interest expense 12,642 (11,264)
Dividends on preferred securities of subsidiaries (12,356) (12,374)
Gains related to DIGP - 6,384
Minority interest - (1,059)
Other (146) (2,620)
------------------------
(162,866) (80,216)
------------------------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (165,440) 148,944
INCOME TAX PROVISION (BENEFIT) 1 36,375
------------------------
INCOME FROM CONTINUING OPERATIONS (165,441) 112,569
------------------------
DISCONTINUED OPERATIONS
Income from operations - 1,595
Gain on sale - 36,176
------------------------
- 37,771
------------------------
NET INCOME $(165,441) $ 150,340
========================
</TABLE>
<PAGE> 12
MCN ENERGY GROUP INC.
CONSOLIDATING BALANCE SHEET
(IN THOUSANDS)
AS OF DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
BLUE LAKE MCN MCN MCNIC
MCN MICHCON CITIZENS HOLDINGS FINANCING MICHIGAN CONSOL.
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<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ 2,750 $ 10,010 $ (55) $ - $ - $ - $ 19,608
Accounts receivable 18,858 187,143 1,541 - - - 198,777
Allowance for doubtful accounts - (17,707) (70) - - - (710)
Accrued unbilled revenues - 107,377 1,131 - - - -
Gas in inventory - 67,910 - - - - 11,251
Property taxes assessed applicable to
future periods 167 60,592 28 - - - 2,179
Accrued gas cost recovery revenues - 27,672 - - - - -
Other 1,084 23,025 508 - - - 28,315
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22,859 466,022 3,083 - - - 259,420
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DEFERRED CHARGES AND OTHER ASSETS
Investment in subsidiaries 947,986 - - - - - -
Investment in and advances to joint ventures 6,675 19,479 - 18,176 - - 236,057
Deferred swap losses and receivables - - - - - - 65,051
Deferred postretirement benefit costs - 4,863 - - - - -
Deferred environmental costs - 28,233 3,000 - - - -
Prepaid benefit costs - 64,307 - - - - -
Other 1,871 50,206 3,212 260 82,474 101,100 45,104
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956,532 167,088 6,212 18,436 82,474 101,100 346,212
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PROPERTY, PLANT AND EQUIPMENT, AT COST 11,222 2,668,294 20,745 - - - 1,017,296
Less: Accumulated depreciation and depletion 3,254 1,243,060 7,728 - - - 81,158
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7,968 1,425,234 13,017 - - - 936,138
----------------------------------------------------------------------------
$987,359 $2,058,344 $22,312 $18,436 $82,474 $101,100 $1,541,770
============================================================================
<CAPTION>
ELIM. & MCN
RECLASSES CONSOL.
-------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ (1,851) $ 30,462
Accounts receivable (25,236) 381,083
Allowance for doubtful accounts - (18,487)
Accrued unbilled revenues 1 108,509
Gas in inventory - 79,161
Property taxes assessed applicable to
future periods - 62,966
Accrued gas cost recovery revenues - 27,672
Other (70) 52,862
-------------------------
(27,156) 724,228
-------------------------
DEFERRED CHARGES AND OTHER ASSETS
Investment in subsidiaries (947,986) -
Investment in and advances to joint ventures (14,999) 265,388
Deferred swap losses and receivables - 65,051
Deferred postretirement benefit costs 696 5,559
Deferred environmental costs - 31,233
Prepaid benefit costs (5,059) 59,248
Other (183,886) 100,341
-------------------------
(1,151,234) 526,820
-------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST - 3,717,557
Less: Accumulated depreciation and depletion 1 1,335,201
-------------------------
(1) 2,382,356
-------------------------
$(1,178,391) $3,633,404
=========================
</TABLE>
<PAGE> 13
MCN ENERGY GROUP INC.
CONSOLIDATING BALANCE SHEET
(IN THOUSANDS)
AS OF DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
BLUE LAKE MCN MCN MCNIC
MCN MICHCON CITIZENS HOLDINGS FINANCING MICHIGAN CONSOL.
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ 2,354 $ 130,725 $ 3,170 $ 624 $ - $ - $ 205,073
Notes payable - 265,126 1,965 - - - 71,000
Current portion of long-term debt, capital
lease obligations and redeemable
cumulative preferred securities - 53,232 55 - - - 31,460
Federal income, property and other taxes
payable 99 84,788 136 46 - - 12,578
Customer deposits - 12,860 21 - - - -
Other 7,985 63,309 1,384 - - - 25,701
------------------------------------------------------------------------------
10,438 610,040 6,731 670 - - 345,812
------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes (5,789) 76,523 2,085 2,501 - - 74,940
Unamortized investment tax credit - 34,588 331 - - - -
Tax benefits amortizable to customers - 116,313 - - - - -
Deferred swap gains and payables - - - - - - 48,365
Accrued environmental costs - 32,000 3,000 - - - -
Minority interest - 17,604 - - - - 306
Other 198,101 43,954 1,375 - - - 18,466
------------------------------------------------------------------------------
192,312 320,982 6,791 2,501 - - 142,077
------------------------------------------------------------------------------
CAPITALIZATION
Long-term debt, including capital
lease obligations - 550,318 365 - - - 701,357
Redeemable preferred securities of subsidiaries - - - - 77,236 96,573 -
Common shareholders' equity 784,609 577,004 8,425 15,265 5,238 4,527 352,524
------------------------------------------------------------------------------
784,609 1,127,322 8,790 15,265 82,474 101,100 1,053,881
------------------------------------------------------------------------------
$987,359 $2,058,344 $22,312 $18,436 $82,474 $101,100 $1,541,770
==============================================================================
<CAPTION>
ELIM. & MCN
RECLASSES CONSOL.
------------------------
<S> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ (24,024) $ 317,922
Notes payable (1,965) 336,126
Current portion of long-term debt, capital
lease obligations and redeemable
cumulative preferred securities - 84,747
Federal income, property and other taxes
payable (1) 97,646
Customer deposits - 12,881
Other (506) 97,873
------------------------
(26,496) 947,195
------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes (422) 149,838
Unamortized investment tax credit - 34,919
Tax benefits amortizable to customers 183 116,496
Deferred swap gains and payables - 48,365
Accrued environmental costs - 35,000
Minority interest 1 17,911
Other (188,633) 73,263
------------------------
(188,871) 475,792
------------------------
CAPITALIZATION
Long-term debt, including capital
lease obligations - 1,252,040
Redeemable preferred securities of subsidiaries - 173,809
Common shareholders' equity (963,024) 784,568
------------------------
(963,024) 2,210,417
------------------------
$(1,178,391) $3,633,404
========================
</TABLE>
<PAGE> 14
MCN ENERGY GROUP INC.
MCN INVESTMENT CORPORATION
CONSOLIDATING INCOME STATEMENT
(IN THOUSANDS)
FOR THE YEAR ENDED DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
THE TOTAL
COMBUSTION GENIX GAS ELIM. & MCNIC
MCNIC BRIDGEWATER CONCEPTS GROUP, INC. SERVICES RECLASSES CONSOL.
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES
Gas and oil sales $ - $ - $ - $ - $722,789 $ 1 $722,790
Transportation - - - - 441 - 441
Other - - - 54,880 11,211 (54,881) 11,210
--------------------------------------------------------------------------
- - - 54,880 734,441 (54,880) 734,441
--------------------------------------------------------------------------
OPERATING EXPENSES
Cost of gas - - - (3) 557,340 3 557,340
Operation and maintenance 2,770 - 83 45,552 77,477 (45,552) 80,330
Depreciation, depletion and amortization (340) - 6 3,425 46,238 (3,426) 45,903
Property and other taxes 440 33 3 1,791 10,053 (1,789) 10,531
--------------------------------------------------------------------------
2,870 33 92 50,765 691,108 (50,764) 694,104
--------------------------------------------------------------------------
OPERATING INCOME (LOSS) (2,870) (33) (92) 4,115 43,333 (4,116) 40,337
--------------------------------------------------------------------------
EQUITY IN EARNINGS (LOSS) OF JOINT VENTURES - - - - 15,915 - 15,915
--------------------------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Equity in earnings of subsidiaries 48,834 - - - - (48,834) -
Interest income 19,904 - - 171 1,424 (18,279) 3,220
Interest on long-term debt (27,097) - - (23) 1,168 24 (25,928)
Other interest expense (13,643) - - (1,279) (19,060) 19,387 (14,595)
Gains related to DIGP - - - - 6,384 - 6,384
Minority interest - - - - (71) - (71)
Other (975) 31 (3) (315) (107) 315 (1,054)
--------------------------------------------------------------------------
27,023 31 (3) (1,446) (10,262) (47,387) (32,044)
--------------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 24,153 (2) (95) 2,669 48,986 (51,503) 24,208
INCOME TAX PROVISION (BENEFIT) (8,510) (8) (37) 1,074 1,630 (1,074) (6,925)
--------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 32,663 6 (58) 1,595 47,356 (50,429) 31,133
DISCONTINUED OPERATIONS
Income from operations - - - - - 1,595 1,595
Gain on sale 36,241 - (65) - - - 36,176
--------------------------------------------------------------------------
36,241 - (65) - - 1,595 37,771
--------------------------------------------------------------------------
NET INCOME (LOSS) $ 68,904 $ 6 $(123) $ 1,595 $ 47,356 $(48,834) $ 68,904
==========================================================================
</TABLE>
<PAGE> 15
MCN ENERGY GROUP INC.
MCN INVESTMENT CORPORATION
CONSOLIDATING BALANCE SHEET
(IN THOUSANDS)
AS OF DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
TOTAL
COMBUSTION GAS ELIM. & MCNIC
MCNIC BRIDGEWATER CONCEPTS SERVICES RECLASSES CONSOL.
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ 446,945 $ 31 $ 9 $ 20,802 $ (448,179) $ 19,608
Accounts receivable 148 - 53 210,460 (11,884) 198,777
Allowance for doubtful accounts - - - (710) - (710)
Gas in inventory - - - 11,251 - 11,251
Property taxes assessed applicable to
future periods - 13 - 2,165 1 2,179
Other 4,315 - - 13,163 10,837 28,315
-------------------------------------------------------------------------
451,408 44 62 257,131 (449,225) 259,420
-------------------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Investment in subsidiaries 612,349 - - - (612,349) -
Investment in and advances to joint ventures 1,427 - - 234,630 - 236,057
Deferred swap losses and receivables - - - 65,051 - 65,051
Other 19,250 63 91 74,000 (48,300) 45,104
-------------------------------------------------------------------------
633,026 63 91 373,681 (660,649) 346,212
-------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 21 984 51 1,016,655 (415) 1,017,296
Less: Accumulated depreciation and depletion - - 37 81,121 - 81,158
-------------------------------------------------------------------------
21 984 14 935,534 (415) 936,138
-------------------------------------------------------------------------
$1,084,455 $1,091 $167 $1,566,346 $(1,110,289) $1,541,770
=========================================================================
</TABLE>
<PAGE> 16
MCN ENERGY GROUP INC.
MCN INVESTMENT CORPORATION
CONSOLIDATING BALANCE SHEET
(IN THOUSANDS)
AS OF DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMBUSTION GAS ELIM. & MCNIC
MCNIC BRIDGEWATER CONCEPTS SERVICES RECLASSES CONSOL.
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ 3,998 $ 1 $ 51 $ 201,023 $ - $ 205,073
Notes payable 128,336 - - 449,844 (507,180) 71,000
Current portion of long-term debt, capital lease
obligations and redeemable cumulative
preferred securities - - - 1,460 30,000 31,460
Federal income, property and other taxes
payable 10,431 288 19 1,839 1 12,578
Other 13,100 - - 10,209 2,392 25,701
------------------------------------------------------------------------
155,865 289 70 664,375 (474,787) 345,812
------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 1,291 432 28 118,131 (44,942) 74,940
Deferred swap gains and payables - - - 48,365 - 48,365
Minority interest - - - 306 - 306
Other 11,912 - 64 13,283 (6,793) 18,466
------------------------------------------------------------------------
13,203 432 92 180,085 (51,735) 142,077
------------------------------------------------------------------------
CAPITALIZATION
Long-term debt, including capital
lease obligations 562,822 - - 109,952 28,583 701,357
Common shareholders' equity 352,565 370 5 611,934 (612,350) 352,524
------------------------------------------------------------------------
915,387 370 5 721,886 (583,767) 1,053,881
------------------------------------------------------------------------
$1,084,455 $1,091 $167 $1,566,346 $(1,110,289) $1,541,770
========================================================================
</TABLE>
<PAGE> 17
MCN ENERGY GROUP INC.
GAS SERVICES
CONSOLIDATING INCOME STATEMENT
(IN THOUSANDS)
FOR THE YEAR ENDED DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
MCNIC
PIPELINE &
MCNIC STORAGE MCNIC PROCESSING
COENERGY COENERGY COENERGY POWER DEVEL. OIL & GAS GROUP
CANADIAN TRADING SUPPLY CONSOL. CONSOL. CONSOL. CONSOL.
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES
Gas and oil sales $ - $590,861 $76,836 $41,871 $ 8 $ 133,977 $ -
Transportation - - - - - - 441
Other - 1,047 - 271 4,410 3,965 5,928
---------------------------------------------------------------------------
- 591,908 76,836 42,142 4,418 137,942 6,369
---------------------------------------------------------------------------
OPERATING EXPENSES
Cost of gas - 568,811 74,043 35,068 7 173 -
Operation and maintenance - 18,418 - 2,216 5,680 50,608 4,964
Depreciation, depletion and amortization - 916 - (90) - 44,469 944
Property and other taxes - 81 63 125 - 9,457 327
---------------------------------------------------------------------------
- 588,226 74,106 37,319 5,687 104,707 6,235
---------------------------------------------------------------------------
OPERATING INCOME (LOSS) - 3,682 2,730 4,823 (1,269) 33,235 134
---------------------------------------------------------------------------
EQUITY IN EARNINGS (LOSS) OF JOINT VENTURES - 212 - (211) 5,324 - 10,590
---------------------------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income 82 678 - 82 186 208 189
Interest on long-term debt - - - - (28) 1,926 (730)
Other interest expense - (3,397) - - - (10,302) (5,359)
Dividends on preferred securities subsidiaries - - - - - - 6,384
Minority interest - - - - - - (71)
Other (4) 30 (1) 152 (276) (47) 35
---------------------------------------------------------------------------
78 (2,689) (1) 234 (118) (8,215) 448
---------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 78 1,205 2,729 4,846 3,937 25,020 11,172
INCOME TAX PROVISION (BENEFIT) 35 457 955 1,687 928 (6,487) 4,055
---------------------------------------------------------------------------
NET INCOME $43 $ 748 $ 1,774 $ 3,159 $ 3,009 $ 31,507 $ 7,117
===========================================================================
<CAPTION>
TOTAL
GAS
ELIM. SERVICES
--------------------
<S> <C> <C>
OPERATING REVENUES
Gas and oil sales $(120,764) $722,789
Transportation - 441
Other (4,410) 11,211
--------------------
(125,174) 734,441
--------------------
OPERATING EXPENSES
Cost of gas (120,762) 557,340
Operation and maintenance (4,409) 77,477
Depreciation, depletion and amortization (1) 46,238
Property and other taxes - 10,053
--------------------
(125,172) 691,108
--------------------
OPERATING INCOME (LOSS) (2) 43,333
--------------------
EQUITY IN EARNINGS (LOSS) OF JOINT VENTURES - 15,915
--------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income (1) 1,424
Interest on long-term debt - 1,168
Other interest expense (2) (19,060)
Dividends on preferred securities subsidiaries - 6,384
Minority interest - (71)
Other 4 (107)
--------------------
1 (10,262)
--------------------
INCOME BEFORE INCOME TAXES (1) 48,986
INCOME TAX PROVISION (BENEFIT) - 1,630
--------------------
NET INCOME $ (1) $ 47,356
====================
</TABLE>
<PAGE> 18
MCN ENERGY GROUP INC.
GAS SERVICES
CONSOLIDATING BALANCE SHEET
(IN THOUSANDS)
AS OF DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
MCNIC
PIPELINE &
MCNIC STORAGE MCNIC PROCESSING
COENERGY COENERGY COENERGY POWER DEVEL. OIL & GAS GROUP,
CANADIAN TRADING SUPPLY CO. CONSOL. CONSOL. CONSOL. CONSOL.
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $1,895 $ 10,374 $ - $ 4,108 $ 82 $ 960 $ 3,384
Accounts receivable - 154,750 6,834 7,231 (1) 54,622 2,615
Allowance for doubtful account - (710) - - - - -
Gas in inventory - 9,640 - 1,611 - - -
Property taxes assessed applicable to
future periods - 1 - - - 1,782 382
Other - 13,343 - 50 25 641 (896)
------------------------------------------------------------------------
1,895 187,398 6,834 13,000 106 58,005 5,485
------------------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Investment in and advances to joint ventures - 504 - 27,233 29,946 - 176,946
Deferred swap losses and receivables - 65,051 - - - - -
Other 9 14,591 - 4,594 4,048 39,029 11,973
------------------------------------------------------------------------
9 80,146 - 31,827 33,994 39,029 188,919
------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST - 2,961 - 2,885 598 982,318 27,895
Less: Accumulated depreciation and depletion - 422 - 3 - 79,427 1,269
------------------------------------------------------------------------
- 2,539 - 2,882 598 902,891 26,626
------------------------------------------------------------------------
$1,904 $270,083 $6,834 $47,709 $34,698 $999,925 $221,030
========================================================================
<CAPTION>
TOTAL
GAS
ELIM. SERVICES
---------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ (1) $ 20,802
Accounts receivable (15,591) 210,460
Allowance for doubtful account - (710)
Gas in inventory - 11,251
Property taxes assessed applicable to
future periods - 2,165
Other - 13,163
---------------------
(15,592) 257,131
---------------------
DEFERRED CHARGES AND OTHER ASSETS
Investment in and advances to joint ventures 1 234,630
Deferred swap losses and receivables - 65,051
Other (244) 74,000
---------------------
(243) 373,681
---------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST (2) 1,016,655
Less: Accumulated depreciation and depletion - 81,121
---------------------
(2) 935,534
---------------------
$(15,837) $1,566,346
=====================
</TABLE>
<PAGE> 19
MCN ENERGY GROUP INC.
GAS SERVICES
CONSOLIDATING BALANCE SHEET
(IN THOUSANDS)
AS OF DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
MCNIC
PIPELINE &
MCNIC STORAGE MCNIC PROCESSING
COENERGY COENERGY COENERGY POWER DEVEL. OIL & GAS GROUP,
CANADIAN TRADING SUPPLY CONSOL. CONSOL. CONSOL. CONSOL.
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $1,474 $113,168 $15,705 $ 5,250 $ 420 $ 68,794 $ 12,050
Notes payable - 101,863 - 3,000 - 219,826 125,156
Current portion of long-term debt, capital
lease obligations and redeemable
cumulative preferred securities - - - - - 1,460 -
Federal income, property and other taxes
payable (107) (320) (38) 454 443 486 921
Other - 6,272 - (2) - 2,938 1,001
------------------------------------------------------------------------
1,367 220,983 15,667 8,702 863 293,504 139,128
------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes - (355) 21 11,000 3,473 96,302 7,689
Deferred swap gains and payables - 48,365 - - - - -
Minority interest - - - - - - 306
Other - 6,349 (1) 2,035 (1) 2,501 2,399
------------------------------------------------------------------------
- 54,359 20 13,035 3,472 98,803 10,394
------------------------------------------------------------------------
CAPITALIZATION
Long-term debt, including capital
lease obligations - - - - 759 109,098 95
Common shareholders' equity 537 (5,259) (8,853) 25,972 29,604 498,520 71,413
------------------------------------------------------------------------
537 (5,259) (8,853) 25,972 30,363 607,618 71,508
------------------------------------------------------------------------
$1,904 $270,083 $ 6,834 $47,709 $34,698 $999,925 $221,030
=========================================================================
<CAPTION>
TOTAL
GAS
ELIM. SERVICES
---------------------
<S> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $(15,838) $ 201,023
Notes payable (1) 449,844
Current portion of long-term debt, capital
lease obligations and redeemable
cumulative preferred securities - 1,460
Federal income, property and other taxes
payable - 1,839
Other - 10,209
---------------------
(15,839) 664,375
---------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 1 118,131
Deferred swap gains and payables - 48,365
Minority interest - 306
Other 1 13,283
---------------------
2 180,085
---------------------
CAPITALIZATION
Long-term debt, including capital
lease obligations - 109,952
Common shareholders' equity - 611,934
---------------------
- 721,886
---------------------
$(15,837) $1,566,346
=====================
</TABLE>
<PAGE> 20
MCN Corporation
Financial Data Schedule
This schedule contains MCN Corporation's summary financial information
extracted from the consolidated balance sheet as of December 31, 1996, and the
related statement of consolidated income for the year ended December 31, 1996,
and is qualified in its entirety by reference to such financial statements.
1996
MCN Corporation
Item No. Caption Heading Consolidated (000s)
-------- ------------------------ -------------------
1 Total Assets $3,633,404
2 Total Operating Revenues 1,997,268
3 Net Income 150,340
<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, 1996, AND THE RELATED
STATEMENT OF CONSOLIDATED INCOME FOR THE YEAR ENDED DECEMBER 31, 1996, 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-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 3,633,404
<TOTAL-OPERATING-REVENUES> 1,997,268
<NET-INCOME> 150,340
</TABLE>
