<PAGE>
File Nos. 69-362 and 69-412
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-3A-2
Statement by Holding Company Claiming Exemption under
Rule U-3A-2 from the Provisions of the Public Utility
Holding Company Act of 1935
To Be Filed Annually prior to March 1
DQE, Inc.
(File No. 69-362)
and
Duquesne Enterprises, Inc.
(File No. 69-412)
- -------------------------------------------------------------------------------
(Name of Companies)
For the year ended December 31, 1996
Each of DQE, Inc. and Duquesne Enterprises, Inc., hereby files with the
Securities and Exchange Commission, pursuant to Rule 2, its statement claiming
exemption as a holding company from the provisions of the Public Utility Holding
Company Act of 1935 (the "Act"). In support of such claims for exemption the
following information is submitted.
ITEM 1. Name, State of organization, location and nature of business of
claimant and every subsidiary thereof, other than any exempt wholesale
generator ("EWG") or foreign utility company in which claimant
directly or indirectly holds and interest.
DQE, Inc. ("DQE") and Duquesne Enterprises, Inc. ("DE") are public
utility holding companies incorporated in the Commonwealth of Pennsylvania. DQE
is not engaged in any business independent of that conducted through its
subsidiaries. DQE has six wholly-owned subsidiaries, Duquesne Light Company
("DLC"), DE, DQE Energy Services, Inc. ("DES"), DQEnergy PARTNERS, Inc.
("DQEnergy"), Montauk, Inc. ("Montauk") and Brighter Light Corporation
("Brighter Light").
<PAGE>
DLC has one wholly-owned subsidiary, Monongahela Light & Power Company
which is registered to do business as Duquesne Ventures ("DV"), and is the
general partner of Duquesne Capital Limited Partnership ("Duquesne Capital
L.P."). DV has three wholly-owned subsidiaries, Diemen-Flevo Co. ("Diemen-
Flevo"), Oakridge Resources, Inc. ("Oakridge Resources") and EnviroGas Recovery,
Inc. ("EnviroGas"). Oakridge Resources owns a 50% joint-venture interest in
Laurel Ventures ("LV").
DE has five wholly-owned subsidiaries, Allegheny Development Corporation
("ADC"), Property Ventures, Ltd. ("Property Ventures"), Keystone Power Services,
Inc. ("Keystone"), Chester Engineers, Inc. ("Chester") and JLK Technology, Inc.
("JLK") and owns approximately 10.5% of the voting securities of Exide
Electronics Group, Inc. ("Exide"), 40% of the voting securities of LabCor, Inc.
("LabCor") and 30% of the voting securities of Recra Environmental ("Recra").
JLK owns a 50% joint venture interest in Kommco, L.P. ("Kommco"). Property
Ventures owns a 50% joint-venture interest in the Hopewell Partnership. Recra
has one wholly-owned subsidiary, Electro-Pure Systems, Inc. ("Electro-Pure").
Chester has three wholly-owned subsidiaries, Chester Engineers of Michigan, Inc.
("Chester Michigan"), CM Services, Inc.("CM"), and Chester Environmental Ohio,
Inc. ("Chester Ohio"), and owns a 50% interest in each of Caribbean
Environmental & Engineering, Ltd. ("Caribbean"), and joint ventures with
Brinjac, Kambic & Associates, Inc., Advanced Technology Systems, Inc., and
SSM/Spotts, Stevens and McCoy, Inc. (together, the "Chester Ventures"). Chester
also owns the following inactive subsidiaries (the "Chester Inactive
Subsidiaries"): New Chester, Inc., Chester Environmental, Limited, and a 50%
interest in Integrated Process Technologies, Inc.
DES has three wholly-owned subsidiaries, DQE Power International
("Power International"), Duquesne Energy, Inc. ("DEN") and DH Energy, Inc.
("DH"). Power International has one wholly-owned subsidiary, ElectroGen
International-DQE Power Limited ("EGI-DQE") and owns a 50% joint venture
interest in ElectroGen International, L.L.C. ("ElectroGen"). EGI-DQE owns a 50%
joint venture interest in ElectroGen Maveli Limited ("Maveli").
DQEnergy has one wholly-owned subsidiary, Secure Energy, Inc.
("Secure"), and owns an 80% interest in Weatherwise USA LLC ("Weatherwise").
Weatherwise owns a 50% interest in KN Weatherwise LLC ("KN").
Montauk has two wholly-owned subsidiaries, Bushton Company ("Bushton")
and Monticello Corporation ("Monticello"). Bushton has six wholly-owned
subsidiaries, Monticello Two Corporation ("Monticello Two"), Carthage Field
Corporation ("Carthage Field"), Utrecht Company ("Utrecht"), Schiphol
Corporation ("Schiphol"), Alkmaar, Inc. ("Alkmaar") and Amagansett, Inc.
("Amagansett"). Bushton is the general partner of Bushton BCP Investment
Partnerships I-IV, L.P. (collectively, "Bushton BCP L.P."), Bushton BFG
Investment Partnerships I-IV, L.P. (collectively, Bushton BFG L.P.") and Bushton
TRG Investment Partnerships I-V, L.P. (collectively, "Bushton TRG L.P.").
Monticello is the general partner of, and Monticello Two is the limited partner
of, Monticello Leasing Limited Partnership ("Monticello LP").
Each of Diemen-Flevo, Monticello L.P., Bushton, Utrecht, Schiphol and
Amagansett is a sole beneficiary under one or more business trusts (the
"Business
2
<PAGE>
Trusts"), each of which constitutes a subsidiary of DQE within the
meaning of the Act. Diemen-Flevo is the beneficial owner of the Diemen-Flevo
Trust. Monticello L.P. is the beneficial owner of an unnamed trust (the
"Monticello L.P. Trust") of which Fleet National Bank of Connecticut acts as
Trustee. Bushton is the beneficial owner of the Bushton Equipment Trust 1991-D
of which First Chicago National Bank acts as the Trustee. Utrecht is the sole
beneficiary of the UNA Facility Trust No. 2 and Schiphol is the sole
beneficiary of the UNA Facility Trust No. 5. Wilmington Trust Company acts as
the trustee under each of the UNA Facility Trusts. Alkmaar is the sole
beneficiary of the HVC Facility Trust No. 3 (the "HVC Trust"), of which
Wilmington Trust Company acts as the trustee.
All of DQE's and DE's active subsidiaries are organized under the laws of
the Commonwealth of Pennsylvania, with the exception of: (i) the Business
Trusts; (ii) Montauk, Bushton, Monticello, Monticello Two, Carthage Field,
Utrecht, Schiphol, Alkmaar, Amagansett, Monticello L.P., Bushton BCP L.P.,
Bushton BFG L.P., Bushton TRG L.P., Diemen-Flevo, JLK, Kommco, Electro-Pure,
Power International, ElectroGen, Weatherwise, KN and Duquesne Capital L.P., each
of which is organized under the laws of Delaware; (iii) LabCor, which is
organized under the laws of Oregon; (iv) Recra, which is organized under the
laws of New York; (v) Chester Michigan, which is organized under the laws of
Michigan; (vi) CM, which is organized under the laws of Kentucky; and (vii)
EGI-DQE and Caribbean, which are organized under the laws of the Cayman Islands.
Each of the Diemen-Flevo Trust, the UNA Facility Trust No. 2, the UNA
Facility Trust No. 5 and the HVC Trust are organized under the laws of, and are
located in Delaware. The Monticello L.P. Trust is organized under the laws of
New York and located in Connecticut. The Bushton Equipment Trust 1991-D is
organized under the laws of, and is located in, the State of New York.
Bushton owns certain limited partnership interests in affordable
housing, oil and gas, and energy to waste facility investments. Carthage owns
certain business trust interests in oil and gas investments. Amagansett owns
certain passive limited liability company interests in landfill gas recovery
investments. Montauk owns certain limited partnership interests in an equity
securities fund. Because these securities are non-voting and non-controlling,
such limited partnerships are not properly considered to be subsidiaries of DQE
within the meaning of the Act and, consequently, are not discussed in this
filing.
DLC is a public utility company as defined by the Pennsylvania Public
Utility Code and the Public Utility Holding Company Act of 1935. DLC is engaged
in the production, transmission, distribution and sale of electric energy and
serves an area of approximately 800 square miles, which includes the City of
Pittsburgh and municipalities in Allegheny, Beaver and, to a limited extent,
Westmoreland counties, Pennsylvania. The population of the area served by DLC,
based on 1990 census data, is approximately 1,510,000, of which 370,000 reside
in the City of Pittsburgh. At December 31, 1996, DLC had 3,413 employees,
including 1,157 employees at its Beaver Valley Power Station. DLC and four
other electric utilities serving western Pennsylvania and northern and central
Ohio have provided for the construction of jointly-owned base
3
<PAGE>
load generating units and for coordination in the operation of their respective
electrical systems.
Oakridge Resources is engaged in marketing coal, leasing coal
properties and exploring other business opportunities. Diemen-Flevo is engaged
in making investments to accumulate funds for the decommissioning of fossil-
fueled power stations. EnviroGas is engaged in gathering, processing and
selling coal bed methane gas. LV is engaged in the sale and marketing of coal
and the leasing of coal properties.
DE's business activities are comprised of holding the securities of
its subsidiaries and exploring and developing business opportunities.
ADC's primary business activity is providing energy services for the
Pittsburgh International Airport. ADC is not a public utility company as defined
by the Pennsylvania Public Utility Code, but is a public utility company as
defined by the Public Utility Holding Company Act of 1935. Property Ventures and
the Hopewell Partnership are engaged in investing in real estate in the
Pittsburgh area. Chester and each of its subsidiaries and joint ventures provide
water and wastewater engineering, consulting and related services. LabCor
provides inorganic air analytical laboratory services. JLK was formed to hold a
50% limited partnership interest in Kommco, a joint venture formed to offer
wireless communications for regional monitoring and control services. Exide is
an integrated provider of non-interruptible power quality products, systems and
services. Recra provides environmental testing and measurement services.
DES is a marketing and development company providing energy services
including energy/fuel management, energy facility development, co-generation,
independent power production and advanced energy systems. Power International
owns a 50% interest in ElectroGen, a joint venture formed to develop independent
power production facilities abroad. EGI-DQE owns a 50% interest in Maveli,
which was formed to develop offshore power projects. DEN is engaged in
developing fuel and fuel-related technologies. DH is a single-purpose entity
formed to lease, operate and maintain inside-the-fence energy facilities for a
third party's manufacturing facilities.
DQEnergy was formed to participate in energy service ventures. Secure
conducts marketing initiatives on behalf of DQEnergy and its affiliates.
Weatherwise and KN provide weather-related energy services.
Montauk, Bushton, Monticello, Monticello Two, Carthage Field, Utrecht,
Schiphol, Alkmaar, Amagansett, Monticello L.P., Bushton BCP L.P., Bushton BFG
L.P. and Bushton TRG L.P. are pursuing a variety of investment management
activities. The Business Trusts were formed to facilitate certain financial
transactions entered into in connection with these activities. The Monticello
L.P. Trust holds legal title to a bucket wheel excavator and pit spreader in a
transaction involving a sale and lease-back to Texas Utilities. The Bushton
Equipment Trust 1991-D holds an undivided interest with four other trusts in a
natural gas plant in Kansas that is leased back to Enron. Each of the Diemen-
Flevo Trust, the UNA Facility Trust No. 2 and the UNA Facility Trust No. 5 is a
party to certain financial transactions involving the sale and lease-back of
non-voting,
4
<PAGE>
non-controlling interests in two generating facilities in the Netherlands. The
HVC Trust holds an undivided interest in the lease of a waste to energy
facility.
As of December 31, 1996, DV, Duquesne Capital L.P., Keystone, Electro-
Pure, Brighter Light and the Chester Inactive Subsidiaries did not have active
operations.
ITEM 2. Properties
Neither DQE nor DE owns any properties used for the generation,
transmission and distribution of electric energy for sale, or for the
production, transmission, and distribution of natural or manufactured gas.
The principal properties of DLC consist of electric generating
stations, transmission and distribution facilities and supplemental properties
and appurtenances, comprising as a whole an integrated electric utility system,
located substantially in Allegheny and Beaver counties in southwestern
Pennsylvania. DLC owns all or a portion of the following generating units,
except its interest in Beaver Valley Unit No. 2, which is leased.
5
<PAGE>
<TABLE>
<CAPTION>
DLC's Share of Net Net
Demonstrated Plant Output
Capability Year Ended
December 31, 1996 December 31, 1996
Name and Location Type (Megawatts) (Megawatt-hours)
- ------------------------------- ------- ------------------ ------------------
Summer Winter
-------- --------
<S> <C> <C> <C> <C>
Cheswick Coal 562 570 3,101,155
Springdale, PA
Elrama Coal 474 487 2,572,107
Elrama, PA
Sammis Unit 7 (1) Coal 187 187 1,058,157
Stratton, OH
Eastlake Unit 5 (1) Coal 186 186 972,750
Eastlake, OH
Beaver Valley Unit 1 (1) Nuclear 385 385 2,713,594
Shippingport, PA
Beaver Valley Unit 2 (1) Nuclear 113 113 674,893
Shippingport, PA
Perry Unit 1 (1) Nuclear 161 164 1,026,442
North Perry, OH
Bruce Mansfield Unit 1 (1) Coal 228 228 965,248
Shippingport, PA
Bruce Mansfield Unit 2 (1) Coal 62 62 285,792
Shippingport, PA
Bruce Mansfield Unit 3 (1) Coal 110 110 480,342
Shippingport, PA
Brunot Island Oil 160 178 (6,846)
Brunot Island, PA
Ft. Martin Unit 1 (2) Coal 276 276 1,215,111
Maidsville, WV
----- ----- ----------
Total 2,910 2,946 15,058,745
----- ----- ----------
Property held for future use:
Brunot Island Oil 92 128
Phillips Coal 300 300
----- -----
Total 3,302 3,374
----- -----
</TABLE>
___________________________
(1) Amounts represent DLC's share of the unit which is owned by DLC in common
with one or more other electric utilities (or, in the case of Beaver Valley
Unit 2, leased by DLC).
(2) Amount represents DLC's share of the unit, which was sold on October 31,
1996.
6
<PAGE>
DLC owns 24 transmission substations (including interests in common in
the step-up transformers at Sammis Unit 7; Eastlake Unit 5; Beaver Valley Unit
1; Beaver Valley Unit 2, Perry Unit 1; Bruce Mansfield Unit 1; Bruce Mansfield
Unit 2; and Bruce Mansfield Unit 3) and 562 distribution substations. DLC has
714 circuit-miles of transmission lines, comprised of 345,000, 138,000 and
69,000 volt lines. Street lighting and distribution circuits of 23,000 volts
and less include approximately 50,000 miles of lines and cable.
DLC owns, but does not operate, the Warwick Mine, including 4,849
acres owned in fee of unmined coal lands and mining rights, located on the
Monongahela River in Greene County, Pennsylvania, about 83 river miles from
Pittsburgh.
Substantially all of DLC's properties are subject to a mortgage lien
of an Indenture of Mortgage and Deed of Trust dated as of April 1, 1992.
Certain pollution control facilities are subject to an additional mortgage lien.
The principal properties of ADC consist of heating and chilling
facilities and to a limited extent electrical facilities, consisting of one
busduct and three unitized capacitors, comprising as a whole a total energy
services facility to provide hot water, chilled water and electric energy to the
Pittsburgh International Airport, located in Allegheny County in southwestern
Pennsylvania.
ITEM 3. Electric energy sold, purchased and distributed.
Neither DQE nor DE sold, distributed or purchased (except for its own
use) any kwh of electric energy during 1996.
(a) DLC sold to customers during 1996, 12,413,632,744 kwh of electric
energy at retail and 12,808,000 of electric energy at wholesale. In
addition, DLC sold to other utilities during 1996, 3,310,200,000 kwh
of electric energy at wholesale. During 1996, ADC sold 90,464,484 kwh
of electric energy at retail to a single customer, the County of
Allegheny.
(b) During 1996, neither DLC nor ADC distributed at retail any electric
energy outside the Commonwealth of Pennsylvania, the jurisdiction in
which DLC and ADC are incorporated.
(c) DLC sold at wholesale during 1996, 2,818,341,000 kwh of electric
energy outside the Commonwealth of Pennsylvania or at the Commonwealth
line. During 1996, ADC did not, nor have the ability to, sell at
wholesale any electric energy outside the Commonwealth of Pennsylvania
or at the Commonwealth line.
(d) DLC purchased during 1996, 1,186,763,000 kwh of electric energy
outside the Commonwealth of Pennsylvania or at the Commonwealth line.
ADC did not purchase any electric energy outside the Commonwealth of
Pennsylvania or at the Commonwealth line during 1996.
7
<PAGE>
ITEM 4. Information for the reporting period with respect to claimant and each
interest it holds directly or indirectly in an EWG or a foreign utility company,
stating monetary amounts in United States dollars.
Neither DQE nor DE hold any interest directly or indirectly in an EWG
or a foreign utility company.
-8-
<PAGE>
EXHIBIT A
A consolidating statement of income and surplus of the claimant and
its subsidiary companies for the last calendar year, together with a
consolidating balance sheet of claimant and its subsidiary companies
as of the close of such calendar year.
A consolidating statement of income and surplus of DQE for 1996,
together with a consolidating balance sheet of DQE as of December 31, 1996 is
attached as Exhibit A-1 (which should be read in conjunction with the Footnotes
to Consolidated Financial Statements filed as part of the DQE Annual Report on
Form 10-K for the year ended December 31, 1996 (Securities and Exchange
Commission File No. 1-10290), and incorporated herein by reference).
A consolidating statement of income and surplus of DE for 1996,
together with a consolidating balance sheet of DE as of December 31, 1996 is
attached as Exhibit A-2.
<PAGE>
EXHIBIT B
The required financial data schedules are attached as Exhibit 27.1 and
Exhibit 27.2.
<PAGE>
EXHIBIT C
An organizational chart showing the relationship of each EWG or
foreign utility company to associate companies in the holding-company
system.
Not applicable.
11
<PAGE>
Each of the above-named claimants has caused this statement to be duly
executed on its behalf by its authorized officers on this 31st day of March,
1997.
ATTEST: DQE
/s/ Diane S. Eismont By: /s/ Gary L. Schwass
- -------------------- ------------------
Diane S. Eismont Gary L. Schwass
Secretary Executive Vice President, and
Chief Financial Officer
CORPORATE SEAL
ATTEST: DUQUESNE ENTERPRISES
/s/ Joan S. Senchyshyn By: /s/ Thomas A. Hurkmans
- ---------------------- ---------------------
Joan S. Senchyshyn Thomas A. Hurkmans
Assistant Secretary President
CORPORATE SEAL
Name, title and address of officer to whom notice and correspondence concerning
this statement should be addressed:
President and
David D. Marshall Chief Executive Officer
- ----------------------------------------------------------------
(Name) (Title)
DQE
Cherrington Corporate Center
500 Cherrington Parkway, Suite 100
Coraopolis, PA 15108-3184
- ----------------------------------------------------------------
(Address)
9
<PAGE>
DQE AND SUBSIDIARY COMPANIES
CONSOLIDATING INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
Duquesne
Light Duquesne
Company & Enterprises & Montauk & DQE Energy DQEnergy
DQE Subsidiaries Subsidiaries Subsidiaries Services Partners
___ ------------ ------------ ------------ ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Operating Revenues $1,176,824,515 $51,467,387 $ 2,800,852
Operating Expenses:
Operating expense $ 4,048,501 490,032,798 39,946,534 4,789,585 $ 2,440,752 $ 1,670,856
Maintenance 78,386,090
Depreciation and 50,530 216,337,678 4,560,467 32,065
amortization
Taxes other than 723,352 84,624,687 626,332
income taxes
----------------------------------------------------------------------------------------
Total Operating 4,822,383 869,381,253 45,133,333 4,789,585 2,472,817 1,670,856
Expenses
----------------------------------------------------------------------------------------
Operating Income (4,822,383) 307,443,262 6,334,054 (1,988,733) (2,472,817) (1,670,856)
----------------------------------------------------------------------------------------
Other Income 7,031,645 22,206,339 5,638,389 42,201,087 57,479 893,177
----------------------------------------------------------------------------------------
Income Before Interest and 2,209,262 329,649,601 11,972,443 40,212,354 (2,415,338) (777,679)
Other Charges
----------------------------------------------------------------------------------------
Interest and Other Charges:
Interest expense 17,724 88,860,119 2,816,534 7,801,063
Preferred and 4,045,105 150,000
preference stock
dividends
Monthly Income
Preferred Securities 7,921,355
dividend
requirements
----------------------------------------------------------------------------------------
Total Interest and Other 17,724 100,826,579 2,816,534 7,951,063
Charges
----------------------------------------------------------------------------------------
Income Before Income Taxes 2,191,538 228,823,022 9,155,909 32,261,291 (2,415,338) (777,679)
Income Taxes 780,656 83,007,946 2,970,907 1,899,043 (947,642) (323,000)
----------------------------------------------------------------------------------------
Net Income $ 1,410,882 $ 145,815,076 $ 6,185,002 $30,362,248 ($1,467,696) $ (454,679)
========================================================================================
<CAPTION>
DQE &
Consolidation Subsidiary
Eliminations Companies
------------ --------------
<S> <C> <C>
Operating Revenues ($5,898,122) $1,225,194,632
Operating Expenses:
Operating expense (7,028,964) 535,900,062
Maintenance 78,386,090
Depreciation and 1,947,000 222,927,740
amortization
Taxes other than 85,974,371
income taxes
----------------------------
Total Operating (5,081,964) 923,188,263
Expenses
----------------------------
Operating Income (816,158) 302,006,369
----------------------------
Other Income (3,238,095) 74,790,021
----------------------------
Income Before Interest and (4,054,253) 376,796,390
Other Charges
----------------------------
Interest and Other Charges:
Interest expense (1,341,525) 98,153,915
Preferred and 4,195,105
preference stock
dividends
Monthly Income
Preferred Securities
dividend
requirements 7,921,355
----------------------------
Total Interest and Other (1,341,525) 110,270,375
Charges
----------------------------
Income Before Income Taxes (2,712,728) 266,526,015
Income Taxes 87,387,910
----------------------------
Net Income ($2,712,728) $ 179,138,105
============================
</TABLE>
These financial statements should be read in conjunction with the DQE Annual
Report on Form 10-K.
<PAGE>
DQE AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
Duquesne Duquesne
Light Company Enterprises Montauk & DQE Energy
DQE & Subsidiaries & Subsidiaries & Subsidiaries Services, Inc.
-------------- ---------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Assets:
Current Assets:
Cash and Temporary Cash $ 224,668,262 $ 154,413,946 $ 5,421,579 $ 25,296,336 $ 1,177,697
Investments
Receivables 3,382,363 105,645,240 16,912,892 5,489,982 (1,250,437)
Materials & Supplies:
Coal 19,096,536
Operating and 52,669,088
Construction
Other Current Assets 8,828,363 1,021,080 33,101,841
------------------------------------------------------------------------------
Total Current Assets 228,050,625 340,653,173 23,355,551 63,888,159 (72,740)
------------------------------------------------------------------------------
Long-Term Investments:
Affordable Housing 12,150,855 138,118,990
Natural Gas Reserve 79,915,575
Leveraged Leases 134,133,841
Other Leases 50,149,310 35,744,243
Other 1,241,886,797 99,966,922 23,114,534 6,439,671 3,000
------------------------------------------------------------------------------
Total Long-Term 1,241,886,797 162,267,087 23,114,534 394,352,320 3,000
Investments
------------------------------------------------------------------------------
Property, Plant and
Equipment:
Electric Plant in Service 4,275,109,321
Construction Work in 45,059,270
Progress
Property Held Under 99,608,326
Capital Leases
Property Held for Future 190,820,638
Use
Other 264,055 (1,824,894) 103,094,860 72,339,380 276,249
------------------------------------------------------------------------------
Total 264,055 4,608,772,661 103,094,860 72,339,380 276,249
Less Accumulated (1,891,300,023) (15,653,473) (62,201,118)
Depreciation and
Amortization
------------------------------------------------------------------------------
Property, Plant and 264,055 2,717,472,638 87,441,387 10,138,262 276,249
Equipment - Net
------------------------------------------------------------------------------
Other Non-Current Assets:
Regulatory Assets 636,815,810
Other 39,877,261 3,168,705 3,640,433 12,568
------------------------------------------------------------------------------
Total Other Non-Current 0 676,693,071 3,168,705 3,640,433 12,568
Assets
------------------------------------------------------------------------------
Total Assets $1,470,201,477 $ 3,897,085,969 $137,080,177 $472,019,174 $ 219,077
==============================================================================
<CAPTION>
DQE &
DQEnergy Consolidation Subsidiary
Partners Eliminations Companies
---------- ----------------- ----------------
<S> <C> <C> <C>
Assets:
Current Assets:
Cash and Temporary Cash $ 0 $ 0 $ 410,977,820
Investments
Receivables 2,079,275 (2,134,430) 130,124,885
Materials & Supplies: 0
Coal 19,096,536
Operating and 52,669,088
Construction
Other Current Assets (33,591,657) 9,359,627
-----------------------------------------------
Total Current Assets 2,079,275 (35,726,087) 622,227,956
-----------------------------------------------
Long-Term Investments:
Affordable Housing 150,269,845
Natural Gas Reserve 79,915,575
Leveraged Leases 134,133,841
Other Leases 85,893,553
Other (1,302,934,445) 68,476,479
-----------------------------------------------
Total Long-Term 0 (1,302,934,445) 518,689,293
Investments
-----------------------------------------------
Property, Plant and
Equipment:
Electric Plant in Service 4,275,109,321
Construction Work in 45,059,270
Progress
Property Held Under 99,608,326
Capital Leases
Property Held for Future 190,820,638
Use
Other 236,214 2,486,265 176,872,129
-----------------------------------------------
Total 236,214 2,486,265 4,787,469,684
Less Accumulated (790,057) (1,969,944,671)
Depreciation and
Amortization
-----------------------------------------------
Property, Plant and 236,214 1,696,208 2,817,525,013
Equipment - Net
-----------------------------------------------
Other Non-Current Assets:
Regulatory Assets 636,815,810
Other (2,964,573) 43,734,394
-----------------------------------------------
Total Other Non-Current 0 (2,964,573) 680,550,204
Assets
-----------------------------------------------
Total Assets $2,315,489 ($1,339,928,897) $ 4,638,992,466
===============================================
</TABLE>
These financial statements should be read in conjunction with the DQE Annual
Report on Form 10-K.
<PAGE>
DQE AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED
DECEMBER 31, 1996
<TABLE>
<CAPTION>
Duquesne Duquesne
Light Company Enterprises Montauk & DQE Energy
DQE & Subsidiaries & Subsidiaries Subsidiaries Services, Inc.
--------------- --------------- -------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
Liabilities and
Capitalization:
Current Liabilities:
Notes Payable $ 0 $ 0 $ 22,749,177 $ 0 $ 0
Current Maturities and 70,912,486 1,917,962
Sinking Fund Req.
Accounts Payable (875,641) 84,271,591 12,467,661 2,138,439 276,047
Accrued Liabilities 815,032 59,019,698 239,126 11,321,809 (131,655)
Dividends Declared 26,958,623 2,371,359
Other 4,074,944
-----------------------------------------------------------------------------
Total Current 26,898,014 220,650,078 37,373,926 13,460,248 144,392
Liabilities
-----------------------------------------------------------------------------
Non-Current Liabilities:
Deferred Income Taxes - Net 726,517,465 1,460,256 39,792,837 (808,000)
Deferred Investment Tax 106,201,305
Credits
Capital Lease Obligations 28,407,207
Deferred Income 139,074,567 50,218,779
Other 191,239,393 163,061 46,915,914 131
-----------------------------------------------------------------------------
Total Non-Current 0 1,191,439,937 1,623,317 136,927,530 (807,869)
Liabilities
-----------------------------------------------------------------------------
Capitalization:
Long-Term Debt 1,271,961,519 20,749,307 150,000,000
-----------------------------------------------------------------------------
Non-Redeemable Preferred 213,608,294
Stock
Non-Redeemable Preference 28,996,550
Stock
Deferred Employee Stock (19,532,789)
Ownership Plan (ESOP)
Benefit
-----------------------------------------------------------------------------
Total Preferred and 0 223,072,055 0 0 0
Preference Stock of
Subsidiaries
-----------------------------------------------------------------------------
Common Shareholders'
Equity:
Common Stock/Capital 1,016,091,019 825,540,027 75,369,136 165,122,751 2,623,728
Surplus
Retained Earnings 777,606,477 164,422,353 1,964,491 6,508,645 (1,741,174)
Less Treasury Stock (350,394,033)
-----------------------------------------------------------------------------
Total Common 1,443,303,463 989,962,380 77,333,627 171,631,396 882,554
Shareholders' Equity
-----------------------------------------------------------------------------
Total Liabilities and $1,470,201,477 $3,897,085,969 $137,080,177 $472,019,174 $ 219,077
Capitalization
=============================================================================
<CAPTION>
DQE &
DQEnergy Consolidation Subsidiary
Partners Eliminations Companies
----------- ------------ --------------
<S> <C> <C> <C>
Liabilities and
Capitalization:
Current Liabilities:
Notes Payable $ 0 ($22,000,000) $ 749,177
Current Maturities and 72,830,448
Sinking Fund Req.
Accounts Payable 86,921 (2,134,430) 96,230,588
Accrued Liabilities (77,000) (13,143,219) 58,043,791
Dividends Declared (696,582) 28,633,400
Other 4,074,944
---------------------------------------------
Total Current 9,921 (37,974,231) 260,562,348
Liabilities
---------------------------------------------
Non-Current Liabilities:
Deferred Income Taxes - Net (7,873,566) 759,088,992
Deferred Investment Tax 106,201,305
Credits
Capital Lease Obligations 28,407,207
Deferred Income 189,293,346
Other 2,443,975 240,762,474
---------------------------------------------
Total Non-Current 2,443,975 (7,873,566) 1,323,753,324
Liabilities
---------------------------------------------
Capitalization:
Long-Term Debt (2,964,573) 1,439,746,253
---------------------------------------------
Non-Redeemable Preferred 213,608,294
Stock
Non-Redeemable Preference 28,996,550
Stock
Deferred Employee Stock (19,532,789)
Ownership Plan (ESOP)
Benefit
---------------------------------------------
Total Preferred and 0 0 223,072,055
Preference Stock of
Subsidiaries
---------------------------------------------
Common Shareholders'
Equity:
Common Stock/Capital 316,272 (1,094,560,983) 990,501,950
Surplus
Retained Earnings (454,679) (170,699,636) 777,606,477
Less Treasury Stock (25,855,908) (376,249,941)
---------------------------------------------
Total Common (138,407) (1,291,116,527) 1,391,858,486
Shareholders' Equity
---------------------------------------------
Total Liabilities and $2,315,489 ($1,339,928,897) $4,638,992,466
Capitalization
=============================================
</TABLE>
These financial statements should be read in conjunction with the DQE
Annual Report on Form 10-K.
<PAGE>
EXHIBIT A-2
DUQUESNE ENTERPRISES AND SUBSIDIARY COMPANIES
CONSOLIDATING INCOME STATEMENT
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1996
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
Property Duquesne
Allegheny Chester Keystone JLK Ventures Enterprises &
Duquesne Development Environmental Power Technology Ltd. & Consolidation Subsidiary
Enterprises Corporation & Subsidiaries Services Inc. Subsidiaries Eliminations Companies
----------- ----------- -------------- -------- ---------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues $88 $11,013 $31,069 $0 $0 $9,385 ($78) $51,477
Operating Expenses:
Operation Expense (1,132) 7,607 24,428 0 6 11,693 58 42,660
Depreciation and
amortization 33 749 1,391 0 0 2,387 0 4,560
Taxes other than income
taxes 176 103 0 0 0 345 2 626
------ ------- ------- ---- ---- ------- -------- --------
Total operating expenses (923) 8,459 25,819 0 6 14,425 60 47,846
Operating Income 1,011 2,554 5,250 0 (6) (5,040) (138) 3,631
Other Income 0 0 0 0 0 7,058 0 7,058
------ ------- ------- ---- ---- ------- -------- --------
Income Before Interest and
Other Charges 1,011 2,554 5,250 0 (6) 2,018 (138) 10,689
Interest and Other Charges:
Interest Expense 1,011 0 454 0 0 1,493 (141) 2,817
Preferred and Preference
stock dividends 0 0 0 0 0 0 0 0
------ ------- ------- ---- ---- ------- -------- --------
Total Interest and Other
Charges 1,011 0 454 0 0 1,493 (141) 2,817
Income Before Income Taxes 0 2,554 4,796 0 (6) 525 3 7,872
------ ------- ------- ---- ---- ------- -------- --------
Federal income taxes 380 549 1,236 0 (2) (1,256) 0 907
State income taxes 0 330 399 0 0 51 0 780
------ ------- ------- ---- ---- ------- -------- --------
Net Income ($380) $1,675 $3,161 $0 ($4) $1,730 $3 $6,185
</TABLE>
<PAGE>
DUQUESNE ENTERPRISES AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET
31-Dec-96
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
Property Duquesne
Allegheny Chester Keystone JLK Ventures Enterprises &
Duquesne Development Environmental Power Technology Ltd. & Consolidation Subsidiary
Enterprises Corporation & Subsidiaries Services Inc. Subsidiaries Eliminations Companies
----------- ----------- -------------- -------- ---------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Current Assets:
Cash and Temporary Cash
Investments $1,723 $0 $3,533 $0 $0 $165 $0 $5,421
Receivables 9,335 4,255 14,670 0 0 1,085 (12,432) 16,913
Other Current Assets 0 0 1,021 0 0 0 0 1,021
------- ------- ------- ---- ---- ------- -------- --------
Total Current Assets 11,058 4,255 19,224 0 0 1,250 (12,432) 23,355
Fixed Assets:
Energy Facility 0 11,106 0 0 0 0 0 11,106
Buildings and Land 0 0 13,700 0 0 71,175 0 84,875
Office Furniture and
Equipment 207 36 6,805 0 0 66 0 7,114
Accumulated Depreciation
and Amortization (91) (3,710) (6,409) 0 0 (5,444) 0 (15,654)
------- ------- ------- ---- ---- ------- -------- --------
Net Fixed Assets 116 7,432 14,096 0 0 65,797 0 87,441
Other Assets:
Investments in Subsidiaries 57,640 0 0 0 0 0 (57,640) 0
Other Investments 21,794 0 0 0 (4) 1,322 3 23,115
Other Deferred Debits 1,425 3 220 0 0 1,538 (17) 3,169
------- ------- ------- ---- ---- ------- -------- --------
Total Other Assets 80,859 3 220 0 (4) 2,860 (57,654) 26,284
Total Assets $92,033 $11,690 $33,540 $0 ($4) $69,907 ($70,086) $137,080
LIABILITIES AND STOCKHOLDERS'
EQUITY:
Current Liabilities:
Notes Payable $22,000 $0 $0 $0 $0 $0 $0 $22,000
Current Maturities &
Sinking Fund Req. 0 0 749 0 0 1,918 0 2,667
Accounts Payable 3,545 3,341 9,781 0 0 7,869 (12,428) 12,108
Accrued Liabilities 119 152 277 0 0 51 0 599
------- ------- ------- ---- ---- ------- -------- --------
Total Current Liabilities 25,664 3,493 10,807 0 0 9,838 (12,428) 37,374
Long-Term Debt 0 0 11,273 0 0 9,476 0 20,749
Other Liabilities 3,189 637 0 0 0 (395) 0 3,431
Stockholders' Equity:
Common Stock 0 96 4,000 0 0 0 (4,096) 0
Paid-in Capital &
Treasury Stock 73,561 6,889 8,103 0 0 50,321 (65,313) 73,561
Retained Earnings (10,381) 575 (643) 0 (4) 667 11,751 1,965
------- ------- ------- ---- ---- ------- -------- --------
Total Stockholders' Equity 63,180 7,560 11,460 0 (4) 50,988 (57,658) 75,526
Total Liabilities and
Stockholders' Equity $92,033 $11,690 $33,540 $0 ($4) $69,907 ($70,086) $137,080
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> OPUR3
<CIK> 0000898598
<NAME> DUQUESNE ENTERPRISES, INC.
<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> 137,080
<TOTAL-OPERATING-REVENUES> 51,477
<NET-INCOME> 6,185
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> OPUR3
<CIK> 0000846930
<NAME> DQE, INC.
<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> 4,638,992
<TOTAL-OPERATING-REVENUES> 1,225,195
<NET-INCOME> 179,138
</TABLE>
