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File Nos. 69-362
69-412
69-419
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),
DQE Enterprises, Inc.
(formerly Duquesne Enterprises, Inc.)
(File No. 69-412)
and
DQE Energy Services, Inc.
(File No. 69-419)
(Names of Companies)
For the year ended December 31, 1999
Each of DQE, Inc.; DQE Enterprises, Inc.; and DQE Energy Services, 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, and submits the following
information:
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 an interest.
DQE, Inc.; DQE Enterprises, Inc.; and DQE Energy Services, Inc. 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 eight wholly owned subsidiaries: Duquesne Light Company;
AquaSource, Inc.; DQE Enterprises; DQE Energy Services; DQE Systems, Inc.
(formerly DQEnergy Partners, Inc.); DQE Financial Corp. (formerly Montauk,
Inc.); DQE Capital Corporation; and Brighter Light Corporation.
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(1) Duquesne Light and Subsidiaries. Duquesne Light is a public utility
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company as defined by the Pennsylvania Public Utility Code and the Public
Utility Holding Company Act of 1935 ("PUHCA"). Duquesne Light is engaged in the
transmission, distribution and sale of electric energy and provides service to
approximately 580,000 direct customers in southwestern Pennsylvania, a territory
of approximately 800 square miles. At December 31, 1999, Duquesne Light had
2,142 employees. On April 28, 2000, Duquesne Light completed the sale of its
generation assets to Orion Power MidWest, L.P.
Duquesne Light has two wholly owned subsidiaries, Monongahela Light & Power
Company and Duquesne Financial LLC. Duquesne Light is also the general partner
of Duquesne Capital L.P. and the 99 percent limited partner of Duquesne
Financial L.P. (of which Duquesne Financial LLC is the one percent general
partner).
Monongahela Light & Power has two wholly owned subsidiaries: Oakridge
Resources, Inc. and DataCom Information Systems LLC. Oakridge Resources owns a
50 percent joint venture interest in Laurel Ventures, which in turn is engaged
in the mining, marketing and sale of coal. DataCom owns and operates the
Customer Advanced Reliability System, the electronic automated meter-reading
and reliability system used by Duquesne Light.
Duquesne Financial L.P. has one wholly owned subsidiary, DQU II Funding
Corporation, which will be providing financing to other subsidiaries of Duquesne
Light.
Duquesne Light, Monongahela Light & Power, Oakridge Resources and Duquesne
Financial L.P. are organized under the laws of Pennsylvania. Duquesne Capital
L.P., DataCom, DQU II Funding and Duquesne Financial LLC are organized under the
laws of Delaware.
(2) AquaSource and Subsidiaries. AquaSource is a water resource
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management company that acquires, develops and manages water and wastewater
utility companies. AquaSource has six wholly owned subsidiaries: AquaSource
Utility, Inc.; AquaSource Services and Technologies, Inc.; AquaSource
Construction, Inc.; The Reynolds Group; Polaris Water Company Inc.; Pure Water
Corporation; and Stellen Investments, Ltd.
AquaSource Utility, through its subsidiaries, owns regulated utility assets
and holds investments in regulated utility companies. AquaSource Utility has
the following direct wholly owned subsidiaries: Altex Environmental
Corporation; AquaSource/BMWS, Inc.; AquaSource/CB, Inc.; AquaSource/CTU, Inc.;
AquaSource/CU, Inc.; AquaSource/DWC, Inc.; AquaSource/GWS, Inc.; AquaSource/H2M,
Inc.; AquaSource/HCUW, Inc.; AquaSource/IWS, Inc.; AquaSource/RU, Inc.;
AquaSource/S&B, Inc.; AquaSource/UC, Inc.; AquaSource Utility-Arizona, Inc.;
AquaSource Utility-New Jersey, Inc.; AquaSource Utility-North Carolina, Inc.;
AquaSource Utility-Pennsylvania, Inc.; AquaSource Utility-Virginia, Inc.;
Arrendondo Utility Company, Inc.; Britmore Utility, Inc.; Brookside Sewer
District, Inc.; Brushy Creek Utility, Inc.; Buffalo Creek Utility, Inc.;
Cambridge Water Works Company, Inc.; Candlelight Service Company; Creekside
Utilities, Inc.; Crystal River Utilities, Inc.; Dolomite Utilities Corp.;
Earlysville Forest Water Company; Eastern Connecticut Regional Water Company,
Inc.; Environmental Wastewater Services, Inc.; Forest Water and Sewer Service
Corporation; Industrial Utilities Service, Inc.; Jasmine Lakes Utilities Corp.;
Kingsvale Water Company, Inc.; Lake Palestine Water Company; Lake Suzy Utility,
Inc.; Lake Vista Utility Company; Lakeside Utilities, Inc.; Land `Or Utility,
Inc.; Leisurewoods Water Company; Maxim Sewerage Corporation; Mayfore Water
Company, Inc.; Meadow Woods Water Supply, Inc.; Mountainview Water Co., Inc.;
Ocala Oaks Utilities Inc.; Peek Road Utilities, Inc.; Pine Trails Utility Co.,
Inc.; Rainbow Forest Water Corporation; Redwood Utilities, Inc.; Rivercrest
Water Systems, Inc.; Shady Hollow Estates Water Supply Corporation; Suburban
Austin Water Systems, Inc.; Sydnor Hydrodynamics, Inc.; Water Distributors,
Inc.; Wild Oaks Water Company, Inc.; Williams Water Company; and Woodcreek
Utilities, Inc. AquaSource/UC has one wholly owned subsidiary: Utility Center,
Inc. Dolomite has one wholly owned subsidiary: Kennsington Park Utilities,
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Inc., which in turn has one wholly owned subsidiary, Longwood Run Utilities,
Inc. Lakeside Utilities has two wholly owned subsidiaries: Sandy Creek
Utilities, Inc. and Tal/Tex, Inc. Sydnor has six wholly owned subsidiaries:
Alpha Water Corporation; Caroline Utilities, Inc.; Ellerson Wells, Incorporated;
James River Service Corporation; Powhatan Water Works, Incorporated; and Sydnor
Water Corporation.
AquaSource Services and Technologies, with its subsidiaries, employs the
operational personnel and performs the daily operations and management for
AquaSource utility and third party water and wastewater systems. AquaSource
Services and Technologies has 12 wholly owned subsidiaries: AquaSource/AU,
Inc.; AquaSource/HCUC, Inc.; AquaSource/MMS, Inc.; AquaSource/TEE, Inc.;
AquaSource/WMS, Inc.; Associated Water Services, Inc.; H.M. Northcutt
Corporation; Lab-Tech Corporation; Muniservice Corporation; Rhodes Pump Service,
Inc.; Teb-Co Services, Inc.; and Water Quality Management. AquaSource/MMS has
one wholly owned subsidiary: AquaSource Operations Services, Inc. Water
Quality Management has one wholly owned subsidiary: H2O Construction and
Maintenance, Inc.
AquaSource Construction, with its subsidiaries, fabricates new facilities
and performs major repairs for the water operations. AquaSource Construction
has six wholly owned subsidiaries: AquaSource/B&S, Inc.; AquaSource/H2M
Construction, Inc.; AquaSource/Whisenant, Inc.; AquaSource Development Company;
Brune Pump Company; and Quindaro Enterprises, Inc. Brune Pump has one wholly
owned subsidiary: Western Hills Water System, Inc.
The Reynolds Group, with its subsidiaries, owns water and wastewater
facilities, operates such facilities for third parties, and designs and builds
water and wastewater facilities. The Reynolds Group has five wholly owned
subsidiaries: Capitol Engineering, Inc.; Indiana Water Infrastructure Group,
Inc.; Reynolds Construction Management, Inc.; Reynolds International, Inc.; and
Reynolds Operations Corporation. Indiana Water Infrastructure Group has six
wholly owned subsidiaries: Country View Sewage Plant Inc.; Chimney Wood Sewage
Works, Inc.; Wastewater One, LLC; Water One, Inc.; Wildwood Shores Utilities
Corp.; and Wymberley Sanitary Works, Inc. The Reynolds Group also owns an 80
percent limited liability company interest in Hendricks County Wastewater, LLC.
Each of Polaris Water Company, Pure Water Corporation and Stellen
Investments, with its respective subsidiaries, produces and sells bottled water.
Polaris has four wholly owned subsidiaries: Canadian Polaris Water Company,
Inc.; Pollas Water Company Inc.; Everclear Water Co. Ltd.; and Cool Water-Water
Ind. Ltd. Stellen has two wholly owned subsidiaries: Whistler Water Inc. and
World Choice Bottling Corp.
AquaSource is organized under the laws of Delaware. AquaSource Utility and
31 of its subsidiaries are organized under the laws of Texas. Arrendondo
Utility Company, Crystal River Utilities, Dolomite Utilities, Jasmine Lake
Utilities, Kennsington Park Utilities, Lake Suzy Utility and Ocala Oaks
Utilities are organized under the laws of Florida. AquaSource Utility-North
Carolina and Environmental Wastewater Services are organized under the laws of
North Carolina. AquaSource Utility-Pennsylvania is organized under the laws of
Pennsylvania. Brookside Sewer District is organized under the laws of South
Carolina. Cambridge Water Works, Kingsvale Water Company and Wild Oaks Water
Company are organized under the laws of New York. AquaSource/CU and
AquaSource/RU are organized under the laws of Missouri. AquaSource/UC and
Utility Center are organized under the laws of Indiana. AquaSource Utility--
Arizona is organized under the laws of Arizona. AquaSource Utility--New Jersey
is organized under the laws of New Jersey. AquaSource Utility--Virginia,
Earlysville Forest Water Company, Land `Or Utility, Maxim Sewage, Mayfore Water
Company, Mountainview Water, Rainbow Forest Water, Sydnor Hydrodynamics, Water
Distributors, Alpha Water, Caroline Utilities, Ellerson Wells, James River
Service, Powhatan Water Works and Sydnor Water are organized under the laws of
Virginia. Eastern Connecticut Regional Water Company is organized under the
laws of Connecticut.
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AquaSource Services and Technologies and its subsidiaries are organized
under the laws of Texas except for the following: Associated Water Services and
Rhodes Pump Service are organized under the laws of Connecticut; Water Quality
Management and H2O Construction and Maintenance are organized under the laws of
Colorado; AquaSource/WMS is organized under the laws of Missouri; and H.M.
Northcutt Corporation is organized under the laws of South Carolina.
AquaSource Construction and all its subsidiaries are organized under the
laws of Texas. The Reynolds Group and all its subsidiaries are organized under
the laws of Indiana. Polaris Water Company, Stellen Investments and their
respective subsidiaries are organized under the laws of British Columbia,
Canada. Pure Water Corporation is organized under the laws of Washington.
(3) DQE Enterprises and Subsidiaries. DQE Enterprises is building
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businesses in the energy services and technologies and electronic commerce
industries, and in communications. DQE Enterprises has five wholly owned
subsidiaries: Allegheny Development Corporation; Property Ventures, Ltd.; JLK
Technology, Inc.; On-Demand Energy, Inc.; and Keystone Power Services, Inc. DQE
Enterprises' name was changed from Duquesne Enterprises in the first quarter of
2000.
Allegheny Development owns the energy facilities for the Pittsburgh
International Airport. Allegheny Development is not a public utility company
for purposes of the Pennsylvania Public Utility Code. DQE has, however, elected
to treat Allegheny Development as an electric utility company for purposes of
PUHCA. See DQE, Inc., Holding Co. Act Release No. 26257 (Mar. 24, 1995)
(authorizing the acquisition of Allegheny Development under Sections 9(a)(2) and
10 of the Act). Allegheny Development's utility operations, which are located
within the service territory of Duquesne Light, are currently integrated with
those of Duquesne Light.
Property Ventures owns and develops real estate in southwestern
Pennsylvania.
JLK Technology was formed to hold a 50 percent limited and general
partnership interest in Kommco, L.P., a joint venture formed with ITRON, Inc. to
offer wireless communications for monitoring and control services.
On-Demand markets energy-related products such as demand controls,
electronic commerce facilitated energy procurement and energy-efficient
lighting.
Keystone holds a 49 percent interest in Control Solutions, LLC, a
commercial and industrial heating, ventilation and air conditioning service and
energy controls company.
DQE Enterprises owns 40 percent of the voting securities of Lab Cor, Inc.,
which provides inorganic air analytical laboratory services. DQE Enterprises
owns approximately 24 percent of the voting securities of Recra Environmental,
which provides environmental testing and measurement services. DQE Enterprises
owns approximately 17 percent of the voting securities of BroadPoint
Communications, Inc., which provides sponsored communications and integrated new
media, including the FreeWay/SM/ advertiser-sponsored long distance telephone
service. DQE Enterprises owns 19 percent of Enermetrix.com, Inc. (formerly
North American Power Brokers), which provides an Internet auction for the
purchase of natural gas and electricity. DQE Enterprises owns 22 percent of
OnlineChoice.com, Inc., which uses the Internet to create customer pools to
purchase goods and services, such as electricity, natural gas and telephone
service, at lower prices through volume discounts.
DQE Enterprises, Allegheny Development, Property Ventures, Keystone and On-
Demand are organized under the laws of Pennsylvania. BroadPoint Communications,
JLK Technology, Kommco, OnlineChoice.com and Enermetrix.com are organized under
the laws of Delaware. Recra is organized under the laws of New York. Lab Cor,
Inc. is organized under the laws of Oregon. Control Solutions is organized
under the laws of Ohio.
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(4) DQE Energy Services and Subsidiaries. DQE Energy Services is a
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diversified energy services company offering a wide range of energy solutions
for industrial, utility and consumer markets worldwide. DQE Energy Services
initiatives include energy facility development and operation, domestic and
international independent power production and the production and supply of
innovative fuels. DQE Energy Services has seven wholly owned subsidiaries: DQE
Power International, Inc. ("Power International"); Duquesne Energy, Inc.
("DEN"); DH Energy, Inc.; MT Energy, Inc.; DH Canada, Inc.; MT Detroit, Inc.;
and Monmouth Energy, Inc., which is an EWG and discussed in Item 4 below.
Power International was initially formed to pursue power projects in
selected international markets, and has eight wholly owned subsidiaries:
ElectroGen International-DQE Power Limited, ElectroGen International-DQE Power
Gamma Limited, ElectroGen International-DQE Power Delta Limited, ElectroGen
International-DQE Power Epsilon Limited, ElectroGen International-DQE Power
Quang Ninh Limited, ElectroGen International-DQE Quang Ninh B.V., The Energy
Group Limited and The Energy Group Two Limited. Power International also owns a
50% interest in ElectroGen International, L.L.C., which in turn has one wholly
owned subsidiary, ElectroGen International Limited, which were formed to
identify and develop project opportunities in Asia and the Pacific Rim.
ElectroGen International-DQE Power Limited, ElectroGen International-DQE
Power Gamma Limited, ElectroGen International-DQE Power Delta Limited and
ElectroGen International-DQE Power Epsilon Limited were formed to develop power
projects outside the United States. ElectroGen International-DQE Power Quang
Ninh Limited owns a 50 percent joint-venture interest in ElectroGen Quang Ninh
Sdn. Bhd., and these two companies, together with ElectroGen International-DQE
Quang Ninh B.V., were formed to develop power projects in Vietnam. The Energy
Group and The Energy Group Two were originally formed to develop a power
projects in Brazil.
Although Power International and its subsidiaries were originally formed to
pursue international power projects, none currently has active operations.
DEN produces E-Fuel(R), a coal-based synthetic fuel. DEN is also engaged
in developing fuel and fuel-related technologies.
DH Energy provides energy services to the Heinz factory complex in
Pittsburgh, Pennsylvania. DQE has elected to treat DH Energy as an electric
utility company for purposes of PUHCA. See DQE, Inc., Holding Co. Act Release
No. 26728 (June 10, 1997) (authorizing the acquisition of DH Energy). The
utility operations of DH Energy are currently integrated with those of Duquesne
Light.
MT Energy operates the Pittsburgh Airport facilities pursuant to an
operating and maintenance agreement with Allegheny Development. DQE has elected
to treat MT Energy as an electric utility company for purposes of PUHCA. See
DQE, Inc., Holding Co. Act Release No. 26728 (June 10, 1997). The utility
operations of MT Energy are currently integrated with those of Duquesne Light.
DH Canada provides steam, compressed air and operations and maintenance
services to the Heinz factory complex in Leamington, Ontario.
MT Detroit, through its 50 percent membership interest in Metro Energy,
LLC, is engaged in the construction and subsequent operation of the Midfield
Terminal energy facility at the Detroit Metropolitan Airport pursuant to a
construction agreement and an operating and maintenance agreement with Northwest
Airlines Inc. and Charter County of Wayne Michigan. MT Detroit is not treated
as an electric utility company for the purposes of PUHCA.
DQE Energy Services, DEN, MT Energy and DH Energy are organized under the
laws of Pennsylvania. Power International is organized under the laws of
Delaware. DH Canada is organized
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under the laws of New Brunswick, Canada. ElectroGen International-DQE Power
Quang Ninh Limited, ElectroGen International-DQE Power Limited, ElectroGen
International L.L.C., ElectroGen International-DQE Power Gamma Limited,
ElectroGen International-DQE Power Delta Limited, ElectroGen International-DQE
Power Epsilon Limited, ElectroGen International-DQE Quang Ninh B.V., The Energy
Group and The Energy GroupTwo are organized under the laws of the Cayman
Islands. ElectroGen Quang Ninh Sdn. Bhd. and ElectroGen International Limited
are organized under the laws of Mauritius. MT Detroit is organized under the
laws of Delaware. Metro Energy, LLC, is organized under the laws of Michigan.
(5) DQE Systems and Subsidiaries. DQE Systems is an aggregator, developer
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and operator of telecommunications, propane gas and utility distribution
systems. DQE Systems has five wholly owned subsidiaries: DQE Communications,
Inc.; Secure Energy, Inc.; DQEnergy Propane, Inc.; Pro Am, Inc.; and DQEnergy
Partners, Inc. DQE Systems' name was changed from DQEnergy Partners in the
first quarter of 2000.
DQE Communications owns, operates and maintains a high-speed, fiber optic-
based transmission network for the provision of fiber to telecommunications
companies and others desiring broadband capacity.
Secure Energy conducts marketing initiatives on behalf of DQE Systems and
its affiliate companies. The activities of Secure Energy are intended to ensure
that DQE's investments are fully utilized. Secure Energy aggregates a mix of
products offered by DQE's non-utility affiliates, combining them into a single
product package for DQE delivery system customers.
DQEnergy Propane formerly owned propane distribution business that have
recently been merged into subsidiaries of Pro Am. DQEnergy Propane now serves
as an escrow agent pursuant to various acquisition agreements involving Pro Am
subsidiaries.
Pro Am was formed to act as a holding company for propane business assets
and owns 100 percent of five operating companies: Pro Am Louisiana, Inc.; Pro
Am Mississippi, Inc.; Pro Am Northeast, Inc.; Pro Am Southeast, Inc.; and Pro Am
Texas, Inc. Pro Am also owns 100 percent of another corporation (also named Pro
Am, Inc. and hereinafter referred to as "Pro Am 2") that was used to secure the
rights to the name "Pro Am" in Pennsylvania and now manages the use of that name
in Pennsylvania.
DQEnergy Partners was formed to work as a gas, electricity and water
operating company, focusing on the operation of municipal and government owned
utility distribution systems.
DQE Systems, DQE Communications, Secure Energy, DQEnergy Partners, DQEnergy
Propane and Pro Am 2 are organized under the laws of Pennsylvania. Pro Am, Pro
Am Northeast, Pro Am Southeast and Pro Am Texas are organized under the laws of
Delaware. Pro Am Louisiana is organized under the laws of Louisiana. Pro Am
Mississippi is organized under the laws of Mississippi.
(6) DQE Financial and Subsidiaries. DQE Financial makes long-term
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investments in alternative energy, sale/leasebacks, lease/leasebacks
and investments in affordable housing projects. DQE Financial's name was changed
from Montauk in the first quarter of 2000.
DQE Financial has three wholly owned subsidiaries: (i) North Shore
Affordable Housing, Inc. (formerly Bushton Company), which holds various
investments and acts as general partner in certain limited partnerships, (ii)
Mariner Investment Strategies, Inc., which invests in sale/leaseback,
lease/leaseback and other structured finance investments; and (iii) Montauk
Energy Capital, Inc. (formerly Amagansett, Inc.), which owns certain passive
investment interests in landfill gas recovery and other alternative energy
subsidiaries.
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Mariner Investment Strategies has the following wholly owned subsidiaries:
- Alkmaar, Inc., which is the sole beneficiary of the HVC Facility Trust
No. 3 ("HVC Trust"), with the Wilmington Trust Company as Trustee.
The HVC Trust is a party to certain financial transactions involving
the lease and leaseback of nonvoting, noncontrolling interests in a
waste-to-energy facility located in the Netherlands.
- Diemen-Flevo Co., which owns a 100 percent membership interest in
Liberation II, LLC, which in turn is the sole beneficial owner of CLI
Equipment Trust XI, which holds computer equipment. Diemen-Flevo is
also the beneficial owner of the Diemen-Flevo Trust, which is a party
to financial transactions involving certain commercial equipment
leases, including the sale and lease-back of non-voting, non-
controlling interests in two generating facilities in the Netherlands.
The subject lease transactions are passive investments which generate
certain tax benefits.
- Diemen No. 33 Corporation, which holds the beneficial interest in UNA
Diemen 33 Trusts Nos. 1 and 2, with the Wilmington Trust Company as
Trustee. The trusts are party to certain financial transactions
involving the lease and leaseback of nonvoting, noncontrolling
interests in a power facility in the Netherlands.
- Holyhead Corp., which holds the beneficial interest in Stena Explorer
Trust 1997-A ("Explorer Trust"), with the Wilmington Trust Company as
Trustee. The Explorer Trust is party to certain financial
transactions involving the lease and leaseback of nonvoting,
noncontrolling interests in HSS Stena Explorer, a high-speed ferry
that runs across the Irish Sea. Holyhead also holds a beneficial
interest in Stena Voyager Trust 1997-A ("Voyager Trust"), with the
Wilmington Trust Company as Trustee. The Voyager Trust is party to
certain financial transactions involving the lease and leaseback of
nonvoting, noncontrolling interests in HSS Stena Voyager, another
high-speed ferry that runs across the Irish Sea.
- Maasvlakte Corporation, which holds the beneficial interest in EZH
Facility Trust No. 1997 A-3 and EZH Facility Trust No. 1997 A-6
(together, the "EZH Trusts"), with the Wilmington Trust Company as
Trustee. The EZH Trusts are party to certain financial transactions
involving the lease and leaseback of nonvoting, noncontrolling
interests in a power facility in the Netherlands.
- Monticello Corporation, which is the one percent general partner of
Monticello Leasing L.P., which is the beneficial owner of an unnamed
trust (the "Monticello L.P. Trust"), with Fleet National Bank of
Connecticut as Trustee. The Monticello L.P. Trust holds legal title
to a bucket wheel excavator and cross-pit spreader in a transaction
involving a sale and leaseback to Texas Utilities Mining Company.
- Monticello Two Corporation, which is the 99 percent limited partner of
Monticello Leasing L.P.
- Liberation I, LLC, which holds the sole beneficial interest in CLI
Equipment Trust No. I, CLI Equipment Trust V and CLI Equipment Trust
VII. The trusts are party to certain financial transactions involving
the lease and leaseback of computer equipment and municipal equipment.
- Schiphol Corporation, which holds the sole beneficial interest in the
UNA Facility Trust No. 5, with the Wilmington Trust Company as
Trustee. The UNA Facility Trust No. 5 is
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a party to a financial transaction involving the lease and leaseback
of nonvoting, noncontrolling interests in a generating facility in The
Netherlands known as Hemwegcentrale Unit 8.
- Utrecht Company, which holds the sole beneficial interest in UNA
Facility Trust No. 2, with the Wilmington Trust Company as Trustee.
The UNA Facility Trust No. 2 is a party to a financial transaction
involving the lease and leaseback of nonvoting, noncontrolling
interests in a generating facility in the Netherlands known as
Hemwegcentrale Unit 8.
Mariner Investment Strategies is also the sole beneficiary under a business
trust that was formed to facilitate certain financial transactions, the Bushton
Equipment Trust 1991-D, with First Chicago National Bank as Trustee. The
Bushton Equipment Trust 1991-D holds an undivided interest with four other
trusts in a natural gas plant in Kansas that is leased to Oneok, Inc.
Montauk Energy Capital has the following wholly owned subsidiaries:
- Carthage Field Corporation, which holds approximately 42 percent of
the beneficial interest in Seagull Series 1995 Trust, a Delaware
business trust which owns certain interests in oil and gas
investments. These interests are nonvoting and noncontrolling.
- EnviroGas Holdings, Inc., which is the holder of a 100 percent
membership interest in CBM Capital, L.L.C., and LFG Capital, L.L.C.
CBM Capital is engaged in gathering, processing and selling coal bed
methane gas on a wholesale basis to gas pipeline companies. LFG
Capital is engaged in landfill gas recovery projects in Pennsylvania.
- LFG Management Services, L.L.C., which acts as manager of certain
landfill gas limited liability companies and operator of certain
landfill gas collection facilities.
- Pigeon Point LFG, Inc. which makes passive investments in landfill gas
recovery projects.
- Monteco Gas, L.L.C., which has four wholly owned subsidiaries of its
own: GSF Energy, L.L.C.; Landfill Gas Production, L.L.C.; San Antonio
LGP, L.L.C.; and Dade County LGP, L.L.C. Monteco Gas and its
subsidiaries own and operate landfill gas collection systems.
- BV LFG, L.L.C., a new subsidiary which owns a landfill gas collection
system and invests in alternative energy projects.
- COP LFG, L.L.C., which makes passive investments in landfill gas
recovery projects.
Montauk Energy Capital owns certain passive limited liability company
interests in landfill gas recovery investments. Montauk Energy Capital owns a 50
percent limited liability company interest in Waste Energy Technology L.L.C.,
which provides landfill gas management and related services, and owns a 50
percent limited liability company interest in Fresh Gas L.L.C., which is
involved in the collection and sale of landfill gas to a single utility customer
on a wholesale basis.
North Shore Affordable Housing is the general partner of several limited
partnerships which, in turn, are limited partners in the following limited
partnerships that invest in affordable housing: Bushton BCP Investment
Partnerships I-VI, L.P.; Bushton BFG Investment Partnerships I-IV, L.P.; and
Bushton TRG Investment Partnerships I-V, L.P. North Shore Affordable Housing is
general partner in Bushton ECH Investment Partnership I, L.P., which in turn is
the managing member of Bushton Acquisition LLC. Bushton Acquisition is a
limited partner in three limited partnerships that invest in affordable housing.
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North Shore Affordable Housing is also a limited partner in limited partnerships
that invest in affordable housing. Because these limited partnership interests
are nonvoting and noncontrolling, the subject limited partnerships are not
subsidiaries of DQE within the meaning of PUHCA. North Shore Affordable Housing
owns a one percent limited liability company interest in COP LFG, described
above.
DQE Financial, North Shore Affordable Housing, Mariner Investment
Strategies, Monticello Corporation, MonticelloLeasing, Monticello Two, Carthage
Field, Utrecht, Schiphol, Alkmaar, Montauk Energy Capital, Maasvlakte, Holyhead,
Diemen-Flevo, Diemen No. 33, Pigeon Point, COP LFG, Liberation I, Liberation II,
EnviroGas, LFG Management, CBM Capital, LFG Capital, Monteco Gas, GSF Energy,
Landfill Gas Production, San Antonio LGP, Dade County LGP and Bushton
Acquisition are organized under the laws of Delaware. Waste Energy Technology
is organized under the laws of Nevada. Fresh Gas is organized under the laws of
New York.
(7) DQE Capital Corporation. DQE Capital, a Delaware corporation, is a
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financial services company that provides financing for DQE and its affiliates,
other than Duquesne Light.
As of December 31, 1999, Duquesne Capital L.P. and Brighter Light did not
have active operations.
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ITEM 2. Properties
None of DQE, DQE Enterprises or DQE Energy Services 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.
On December 3, 1999, Duquesne Light completed a power station exchange with
FirstEnergy Corporation, acquiring ownership of three fossil-powered plants
(located in Avon Lake and Niles, Ohio, and in New Castle, Pennsylvania) in
exchange for its ownership interests in two nuclear-powered plants (located in
Beaver Valley, Pennsylvania and Perry, Ohio) and three fossil-powered plants
(located in Bruce Mansfield, Pennsylvania and Sammis and Eastlake). On April
28, 2000, Duquesne Light completed the divestiture of its generation assets
(including the three newly-acquired plants) through the sale of generation
assets to Orion Power MidWest, L.P. More information regarding the divestiture
is set forth in DQE's Annual Report on Form 10-K for the year ended December
31, 1999.
The principal properties of Duquesne Light consist of electric
transmission and distribution facilities and supplemental properties and
appurtenances, located substantially in Allegheny and Beaver counties in
southwestern Pennsylvania.
Duquesne Light owns 17 transmission substations (including two acquired in
the power station exchange) and 557 distribution substations. Duquesne Light
has 671 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.
Duquesne Light 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.
Substantially all of Duquesne Light'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 Allegheny Development 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.
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The following table sets forth Duquesne Light's ownership of
generating stations at December 31, 1999. All of these plants were sold to
Orion Power MidWest, L.P. on April 28, 2000.
<TABLE>
<CAPTION>
Duquesne Light's Share of Net Plant Output
Net Demonstrated Capability Year Ended
December 31, 1999 December 31, 1999
Name and Location Type (Megawatts) (Megawatt-hours)
- ------------------------------------ ------ --------------------------------- ---------------------
Summer Winter
---------------- ---------------
<S> <C> <C> <C> <C>
Cheswick Coal 562 570 3,031,366
Springdale, PA
Elrama Coal 474 487 1,752,001
Elrama, PA
Sammis Unit 7 (1) Coal 187 187 1,071,148
Stratton, OH
Eastlake Unit 5 (1) Coal 186 186 833,510
Eastlake, OH
Beaver Valley Unit 1 (1) Nuclear 385 385 2,657,210
Shippingport, PA
Beaver Valley Unit 2 (1) Nuclear 113 113 755,862
Shippingport, PA
Perry Unit 1 (1) Nuclear 161 164 1,141,338
North Perry, OH
Bruce Mansfield Unit 1 (1) Coal 228 228 1,004,164
Shippingport, PA
Bruce Mansfield Unit 2 (1) Coal 62 62 315,458
Shippingport, PA
Bruce Mansfield Unit 3 (1) Coal 110 110 522,458
Shippingport, PA
Brunot Island Oil 189 234 18,817
Brunot Island, PA
Avon Lake (2) Coal 731 739 301,109
Avon Lake, OH
New Castle (2) Coal 339 338 122,400
New Castle, OH
Niles (2) Coal 246 246 115,069
Niles, OH ----- ----- ----------
Total 13,641,910
==========
Share of Capacity 1/1/99-12/3/99 2,657 2,726
===== =====
Share of Capacity 12/3/99-12/31/99 2,541 2,614
===== =====
</TABLE>
__________________________
(1) Amounts represent Duquesne Light's share of the unit which was owned in
common with one or more other electric utilities (or, in the case of Beaver
Valley Unit 2, leased). Plant output shown is from January 1, 1999 through
December 3, 1999, the date of the power station exchange. These plants
were transferred to FirstEnergy in the power station exchange.
(2) Plant output shown is from December 3, 1999 through December 31, 1999.
These plants were acquired from FirstEnergy in the power station exchange.
11
<PAGE>
ITEM 3. Electric energy sold, purchased and distributed.
None of DQE, DQE Enterprises or DQE Energy Services sold, distributed or
purchased (except for its own use) any kwh of electric energy during 1999.
(a) During 1999, Duquesne Light sold to customers 13,031,203,267 kwh of
electric energy at retail and no kwh of electric energy at wholesale,
with associated revenues of approximately $1,022.4 million. During
1999, Duquesne Light sold to other utilities 3,346,924,438 kwh of
electric energy at wholesale, with associated revenues of
approximately $76.3 million. During 1999, Allegheny Development sold
91,621,403 kwh of electric energy at retail to a single customer, the
County of Allegheny. During 1999, DH Energy sold 23,426,000 kwh of
electric energy at retail to a single customer, Heinz USA. Although
treated as an electric utility under PUHCA, MT Energy only operates
the airport energy facility owned by Allegheny Development, and did
not sell any electric energy at wholesale or retail during 1999.
(b) During 1999, none of Duquesne Light, Allegheny Development, MT Energy
or DH Energy sold at retail any electric energy outside the
Commonwealth of Pennsylvania, the jurisdiction in which Duquesne
Light, Allegheny Development, MT Energy and DH Energy are
incorporated.
(c) During 1999, Duquesne Light sold at wholesale 1,936,632,000 kwh of
electric energy outside the Commonwealth of Pennsylvania or at the
Commonwealth line, with associated revenues of approximately $47.7
million. During 1999, none of Allegheny Development, DH Energy or MT
Energy sold, or had the ability to sell, at wholesale, any electric
energy outside the Commonwealth of Pennsylvania or at the Commonwealth
line.
(d) During 1999, Duquesne Light purchased 413,079,000 kwh of electric
energy outside the Commonwealth of Pennsylvania or at the Commonwealth
line, with associated expenses of approximately $37.0 million. During
1999, none of Allegheny Development, DH Energy or MT Energy purchased
any electric energy outside the Commonwealth of Pennsylvania or at the
Commonwealth line.
12
<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.
(a) DQE Enterprises holds no interest directly or indirectly in an
EWG or a foreign utility company. DQE and DQE Energy Services
hold no interest directly or indirectly in a foreign utility
company.
Monmouth Energy, Inc. is the sole EWG within the DQE system, and
is located in Neptune, New Jersey. Its facility is capable of
producing a nominal 10.0 megawatts of power from approximately
5.9 million standard cubic feet a day (dry basis) of landfill
gas.
(b) DQE Energy Services owns 100 percent of Monmouth's common stock.
DQE owns 100 percent of DQE Energy Services' common stock.
(c) As of December 31, 1999, DQE Energy Services had invested $11.1
million in Monmouth for construction of the facility. DQE has
made no direct investment.
There are no direct or indirect guarantees by DQE or DQE Energy
Services of Monmouth's security.
There is no direct or indirect recourse to DQE Energy Services or
DQE or any other system company for any debt or other financial
obligation of Monmouth.
(d) Monmouth's capitalization in 1999 was $11.1 million. Monmouth's
net income after tax in 1999 was $1.0 million.
(e) There are no service, sales or construction contracts between
Monmouth and any system company.
13
<PAGE>
EXHIBIT A
A consolidating statement of income and surplus of DQE for 1999,
together with a consolidating balance sheet of DQE as of December 31, 1999,
is attached as Exhibit 99.1 (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, 1999 (Securities
and Exchange Commission File No. 1-10290), and incorporated herein by
reference).
A consolidating statement of income and surplus of DQE Enterprises for
1999, together with a consolidating balance sheet of DQE Enterprises as of
December 31, 1999, is attached as Exhibit 99.2.
A consolidating statement of income and surplus of DQE Energy Services
for 1999, together with a consolidated balance sheet of DQE Energy Services
as of December 31, 1999, is attached as Exhibit 99.3.
Consolidating financial statements of Duquesne Light, AquaSource, DQE
Systems and DQE Financial for 1999 have been filed separately pursuant to a
request for confidential treatment.
EXHIBIT B
The required Financial Data Schedules are attached as Exhibit 27.
EXHIBIT C
An organizational chart showing the relationship of each EWG or foreign
utility company to associate companies in the holding-company system.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
-------
| DQE |
-------
|
----------------------------------------------------------------------------------------------------------------------
| | | | | | | |
------------ -------------- --------------- ------------ ----------- ------------- --------------- ------------
| Duquesne | | AquaSource | | DQE | | DQE | | DQE | | DQE | | DQE | | Brighter |
| Light | -------------- | Enterprises | | Energy | | Systems | | Financial | | Capital | | Light |
----------- --------------- | Services | ----------- ------------- | Corporation | ------------
------------ ---------------
|
------------
| Monmouth |
| (EWG) |
------------
</TABLE>
14
<PAGE>
Each of the above-named claimants has caused this statement to be duly
executed on its behalf by its authorized officers on April 28, 2000.
ATTEST: DQE, INC.
/s/ Diane S. Eismont By: /s/ Morgan K. O'Brien
- ---------------------- ------------------------
Diane S. Eismont Morgan K. O'Brien
Secretary Executive Vice President--
Corporate Development
CORPORATE SEAL
ATTEST: DQE ENTERPRISES, INC.
/s/ Diane S. Eismont By: /s/ Thomas A. Hurkmans
- ---------------------- -------------------------
Diane S. Eismont Thomas A. Hurkmans
Secretary President
CORPORATE SEAL
ATTEST: DQE ENERGY SERVICES, INC.
/s/ Diane S. Eismont By: /s/ Alexis Tsaggaris
- ---------------------- -----------------------
Diane S. Eismont Alexis Tsaggaris
Secretary President
CORPORATE SEAL
Name, title and address of officer to whom notice and correspondence concerning
this statement should be addressed:
Chairman, President and
David D. Marshall Chief Executive Officer
- ----------------------------------------------------------
(Name) (Title)
DQE
Cherrington Corporate Center
500 Cherrington Parkway, Suite 100
Coraopolis, PA 15108-3184
- ----------------------------------------------------------
(Address)
15
<PAGE>
DQE AND SUBSIDIARY COMPANIES EXHIBIT 99.1
CONSOLIDATING INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
Duquesne DQE
Light Company Enterprises DQE Financial DQE Energy
DQE & Subsidiaries & Subsidiaries & Subsidiaries Services, Inc.
-------------- --------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Operating Revenues $0 $1,158,799,846 $23,170,404 $21,917,935 $17,001,841
Operating Expenses:
Operating Expense 13,121,656 492,878,749 20,369,139 23,128,875 28,720,464
Maintenance 0 75,399,685 0 0 0
Depreciation and Amortization 267,741 172,423,714 4,264,448 2,313,757 3,450,845
Taxes Other Than Income Taxes 302,317 84,532,080 475,587 247,919 0
------------------------------------------------------------------------------
Total Operating Expenses 13,691,714 825,234,228 25,109,174 25,690,551 32,171,309
------------------------------------------------------------------------------
Operating Income (13,691,714) 333,565,618 (1,938,770) (3,772,616) (15,169,468)
------------------------------------------------------------------------------
Other Income 12,258,423 49,052,592 22,666,702 72,855,618 3,851,497
------------------------------------------------------------------------------
Income Before Interest and Other Charges (1,433,291) 382,618,210 20,727,932 69,083,002 (11,317,971)
------------------------------------------------------------------------------
Interest and Other Charges:
Interest Expense 612,160 118,671,606 2,342,470 14,025,912 677,044
Preferred and Preference Stock Dividends 0 3,997,425 0 72,222 0
Monthly Income Preferred Securities
Dividend Requirements 0 12,562,500 0 0 0
------------------------------------------------------------------------------
Total Interest and Other Charges 612,160 135,231,531 2,342,470 14,098,134 677,044
------------------------------------------------------------------------------
Income Before Income Taxes (2,045,451) 247,386,679 18,385,462 54,984,868 (11,995,015)
Income Taxes (922,007) 100,364,439 7,369,790 7,001,007 (5,773,938)
------------------------------------------------------------------------------
Net Income (1,123,444) 147,022,240 11,015,672 47,983,861 (6,221,077)
Preferred Dividends 1,568,853 0 0 0 0
------------------------------------------------------------------------------
Earnings Available for Common (2,692,297) 147,022,240 11,015,672 47,983,861 (6,221,077)
==============================================================================
<CAPTION>
DQE &
DQE DQE Consolidation Subsidiary
Systems AquaSource Capital Corp. Eliminations Companies
-------------- ------------ ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Operating Revenues $10,752,142 $122,329,441 $0 ($12,770,608) $1,341,201,001
Operating Expenses:
Operating Expense 10,915,377 97,141,373 814,515 (24,228,979) 662,861,169
Maintenance 0 0 0 0 75,399,685
Depreciation and Amortization 812,030 12,786,504 0 0 196,319,039
Taxes Other Than Income Taxes 132,394 2,088,559 0 0 87,778,856
------------------------------------------------------------------------------
Total Operating Expenses 11,859,801 112,016,436 814,515 (24,228,979) 1,022,358,749
------------------------------------------------------------------------------
Operating Income (1,107,659) 10,313,005 (814,515) 11,458,371 318,842,252
------------------------------------------------------------------------------
Other Income 3,179,096 4,278,349 7,835,148 (23,974,425) 152,003,000
------------------------------------------------------------------------------
Income Before Interest and Other Charges 2,071,437 14,591,354 7,020,633 (12,516,054) 470,845,252
------------------------------------------------------------------------------
Interest and Other Charges:
Interest Expense 1,297,365 7,563,272 7,010,805 (10,125,489) 142,075,145
Preferred and Preference Stock Dividends 0 0 0 0 4,069,647
Monthly Income Preferred Securities
Dividend Requirements 0 0 0 0 12,562,500
------------------------------------------------------------------------------
Total Interest and Other Charges 1,297,365 7,563,272 7,010,805 (10,125,489) 158,707,292
------------------------------------------------------------------------------
Income Before Income Taxes 774,072 7,028,082 9,828 (2,390,565) 312,137,960
Income Taxes 281,900 2,396,996 4,144 0 110,722,331
------------------------------------------------------------------------------
Net Income 492,172 4,631,086 5,684 (2,390,565) 201,415,629
Preferred Dividends 0 0 0 0 1,568,853
------------------------------------------------------------------------------
Earnings Available for Common 492,172 4,631,086 5,684 (2,390,565) 199,846,776
==============================================================================
</TABLE>
These financial statements should be read in conjunction with the DQE Annual
Report on Form 10-K.
<PAGE>
DQE AND SUBSIDIARY COMPANIES EXHIBIT 99.1 (CONT'D)
CONSOLIDATING BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
Duquesne DQE
Light Company Enterprises DQE Financial DQE Energy
DQE & Subsidiaries & Subsidiaries & Subsidiaries Services, Inc.
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Assets:
Current Assets:
Cash and Temporary Cash Investments ($2,358,772) $16,068,432 $2,060,707 $45,697,156 ($390,631)
Receivables 8,012,376 131,645,947 3,459,852 18,225,393 3,115,082
Materials & Supplies 55,240,805
Other Current Assets 27,000,000 55,893,225 32,285 49,808,837 442,171
--------------------------------------------------------------------------------------
Total Current Assets 32,653,604 258,848,409 5,552,844 113,731,386 3,166,622
--------------------------------------------------------------------------------------
Long-Term Investments:
Partnership Investments 6,958,665 159,508,179
Leveraged Leases 409,461,283
Other Leases 0 245,812
Other 1,475,249,404 73,931,850 33,284,326 0 3,053,198
--------------------------------------------------------------------------------------
Total Long-Term Investments 1,475,249,404 80,890,515 33,284,326 569,215,274 3,053,198
--------------------------------------------------------------------------------------
Property, Plant and Equipment:
Electric Plant in Service 3,855,390,439
Water Plant in Service
Construction Work in Progress 69,343,346
Property Held Under Capital Leases 25,997,538
Property Held for Future Use 1,328,287
Other 3,189,970 7,176,336 51,773,028 41,452,362 68,988,641
--------------------------------------------------------------------------------------
Total 3,189,970 3,959,235,947 51,773,028 41,452,362 68,988,641
Less Accumulated Depreciation and
Amortization (540,417) (2,500,718,520) (13,506,735) (6,469,639) (4,718,367)
--------------------------------------------------------------------------------------
Property, Plant and Equipment - Net 2,649,553 1,458,517,427 38,266,293 34,982,723 64,270,274
--------------------------------------------------------------------------------------
Other Non-Current Assets:
Transition Costs 2,008,171,045
Regulatory Assets 224,002,358
Divestiture Costs 218,653,559
Other 205,276 32,328,435 21,379,045 12,457,141 1,416,720
--------------------------------------------------------------------------------------
Total Other Non-Current Assets 205,276 2,483,155,397 21,379,045 12,457,141 1,416,720
--------------------------------------------------------------------------------------
Total Assets $1,510,757,837 $4,281,411,748 $98,482,508 $730,386,524 $71,906,814
======================================================================================
<CAPTION>
DQE &
DQE DQE Capital Consolidation Subsidiary
Systems AquaSource Corporation Eliminations Companies
-------------- ------------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C>
Assets:
Current Assets:
Cash and Temporary Cash Investments $5,297,905 $27,072 ($12,172,869) $54,229,000
Receivables 5,807,527 26,551,909 315,380,728 (327,951,849) 184,246,966
Materials & Supplies 55,240,805
Other Current Assets 1,846,485 10,529,693 (63,613,536) 81,939,160
--------------------------------------------------------------------------------------
Total Current Assets 12,951,917 37,108,674 315,380,728 (403,738,254) 375,655,931
--------------------------------------------------------------------------------------
Long-Term Investments:
Partnership Investments 166,466,844
Leveraged Leases 409,461,283
Other Leases 245,812
Other 5,089,609 0 (1,527,498,079) 63,110,308
--------------------------------------------------------------------------------------
Total Long-Term Investments 5,089,609 0 0 (1,527,498,079) 639,284,247
--------------------------------------------------------------------------------------
Property, Plant and Equipment:
Electric Plant in Service 3,855,390,439
Water Plant in Service 170,509,152 170,509,152
Construction Work in Progress 14,969,379 84,312,725
Property Held Under Capital Leases 329,303 26,326,841
Property Held for Future Use 1,328,287
Other 54,590,305 4,265,059 231,435,701
--------------------------------------------------------------------------------------
Total 54,590,305 185,807,834 0 4,265,059 4,369,303,145
Less Accumulated Depreciation and
Amortization (792,080) (10,225,545) (4,265,059) (2,541,236,362)
--------------------------------------------------------------------------------------
Property, Plant and Equipment - Net 53,798,225 175,582,289 0 0 1,828,066,783
--------------------------------------------------------------------------------------
Other Non-Current Assets:
Transition Costs 2,008,171,045
Regulatory Assets 224,002,358
Divestiture Costs 218,653,559
Other 19,142,456 233,401,941 (5,172,929) 315,158,085
--------------------------------------------------------------------------------------
Total Other Non-Current Assets 19,142,456 233,401,941 0 (5,172,929) 2,765,985,047
--------------------------------------------------------------------------------------
Total Assets $90,982,207 $446,092,904 $315,380,728 ($1,936,409,262) $5,608,992,008
======================================================================================
</TABLE>
These financial statements should be read in conjunction with the DQE Annual
Report on Form 10-K.
<PAGE>
DQE AND SUBSIDIARY COMPANIES EXHIBIT 99.1 (CONT'D)
CONSOLIDATING BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
Duquesne DQE
Light Company Enterprises DQE Financial DQE Energy
DQE & Subsidiaries & Subsidiaries & Subsidiaries Services, Inc.
------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Liabilities and Capitalization:
Current Liabilities:
Notes Payable $136,594,000
Current Maturities and Sinking Fund Req. 82,653,850 399,759,261 10,403,386 66,423,000 6,461,732
Accounts Payable (1,456,305) 92,265,806 3,470,646 3,872,485 6,865,497
Accrued Liabilities (40,839,738) 102,694,352 7,899,089 8,777,756 153,767
Dividends Declared 29,698,540 29,343,350
Other 1,030,404
---------------------------------------------------------------------------------------
Total Current Liabilities 70,056,347 761,687,173 21,773,121 79,073,241 13,480,996
---------------------------------------------------------------------------------------
Non-Current Liabilities:
Deferred Income Taxes - Net 7,715,886 760,677,224 (3,941,507) 250,145,426 (78,184)
Deferred Investment Tax Credits 22,208,225
Capital Lease Obligations 16,533,981
Other 281,366,131 607,579 24,667,382
---------------------------------------------------------------------------------------
Total Non-Current Liabilities 7,715,886 1,080,785,561 (3,333,928) 274,812,808 (78,184)
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
Capitalization:
---------------------------------------------------------------------------------------
Long-Term Debt 1,410,752,926 7,063,091 108,000,000
---------------------------------------------------------------------------------------
Non-Redeemable Preferred Stock 42,170,200 215,108,294
Non-Redeemable Preference Stock 25,278,991
Deferred Employee Stock Ownership Plan
(ESOP) Benefit (10,875,125)
---------------------------------------------------------------------------------------
Total Preferred and Preference Stock
of Subsidiaries 42,170,200 229,512,160 0 0 0
----------------------------------------------------------------------------------------
Common Shareholders Equity:
Common Stock/Capital Surplus 1,019,979,256 758,743,411 78,944,887 268,606,084 70,435,000
Retained Earnings 953,784,818 39,930,517 (5,964,663) (105,609) (11,930,998)
Accumulated Other Comprehensive Income 0
Less Treasury Stock (582,948,670)
---------------------------------------------------------------------------------------
Total Common Shareholders Equity 1,390,815,404 798,673,928 72,980,224 268,500,475 58,504,002
---------------------------------------------------------------------------------------
Total Liabilities and Capitalization $1,510,757,837 $4,281,411,748 $98,482,508 $730,386,524 $71,906,814
=======================================================================================
<CAPTION>
DQE &
DQE DQE Capital Consolidation Subsidiary
Systems AquaSource Corporation Eliminations Companies
------------- ------------ ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Liabilities and Capitalization:
Current Liabilities:
Notes Payable $206,209,910 $342,803,910
Current Maturities and Sinking Fund Req. 69,413,000 132,646,737 12,172,869 (310,686,456) 469,247,379
Accounts Payable 5,637,415 8,168,553 (12,681,121) 106,142,976
Accrued Liabilities 1,474,266 3,713,729 366,997 (51,270,130) 32,970,088
Dividends Declared (27,614,549) 31,427,341
Other 20,876 1,051,280
-------------------------------------------------------------------------------------
Total Current Liabilities 76,545,557 144,529,019 218,749,776 (402,252,256) 983,642,974
-------------------------------------------------------------------------------------
Non-Current Liabilities:
Deferred Income Taxes - Net (6,726,760) 8,012,504 4,298,032 1,020,102,621
Deferred Investment Tax Credits 22,208,225
Capital Lease Obligations 329,303 16,863,284
Other 6,767,535 15,012,252 (15,369,998) 313,050,881
-------------------------------------------------------------------------------------
Total Non-Current Liabilities 40,775 23,354,059 0 (11,071,966) 1,372,225,011
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
Capitalization:
-------------------------------------------------------------------------------------
Long-Term Debt 15,809,101 96,624,268 (5,172,929) 1,633,076,457
-------------------------------------------------------------------------------------
Non-Redeemable Preferred Stock 500,000 257,778,494
Non-Redeemable Preference Stock 25,278,991
Deferred Employee Stock Ownership Plan
(ESOP) Benefit (10,875,125)
-------------------------------------------------------------------------------------
Total Preferred and Preference Stock
of Subsidiaries 0 500,000 0 0 272,182,360
-------------------------------------------------------------------------------------
Common Shareholders Equity:
Common Stock/Capital Surplus 17,229,146 256,189,589 1,000 (1,475,193,437) 994,934,936
Retained Earnings (2,833,271) 5,711,136 5,684 (24,812,796) 953,784,818
Accumulated Other Comprehensive Income 1,834,083 1,834,083
Less Treasury Stock (19,739,961) (602,688,631)
-------------------------------------------------------------------------------------
Total Common Shareholders Equity 14,395,875 261,900,725 6,684 (1,517,912,111) 1,347,865,206
-------------------------------------------------------------------------------------
Total Liabilities and Capitalization $90,982,207 $446,092,904 $315,380,728 ($1,936,409,262) $5,608,992,008
=====================================================================================
</TABLE>
These financial statements should be read in conjunction with the DQE Annual
Report on Form 10-K.
<PAGE>
Exhibit 99.2
DQE ENTERPRISES
Consolidating YTD Income Statement
For the Periods Ending 12/31/99
<TABLE>
<CAPTION>
Allegheny Property Keystone
Development DQE Venture Power
Corporation Enterprises OnDemand Ltd. Services JLK Eliminations Total
----------- ----------- ---------- ---------- -------- ------- ------ ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RENTALS 0 0 0 10,789,572 0 0 0 0 10,789,572
ASSET SALES 0 0 0 44,662,633 0 0 0 0 44,662,633
ENERGY SALES 12,380,832 0 0 0 0 0 0 0 12,380,832
OTHER REVENUES 0 150,884 0 0 0 0 0 0 150,884
DIVIDENDS 0 2,873,357 0 0 0 0 0 (2,175,016) 698,341
ON DEMAND ENERGY REVENUE 0 0 3,113,510 0 0 0 0 (252,826) 2,860,684
JLK TECHNOLOGY REVENUES 0 0 0 0 0 338,475 0 0 338,475
----------- ----------- ---------- ---------- -------- ------- ------ ------------ ----------
TOTAL REVENUES 12,380,832 3,024,241 3,113,510 55,452,205 0 338,475 0 (2,427,842) 71,881,421
SALARIES 16,600 859,118 235,862 131,168 0 0 0 0 1,242,748
DEPRECIATION & AMORTIZATION 757,440 84,881 199,330 2,612,925 609,236 636 0 0 4,264,448
EMPLOYEE EXPENSES 365 230,472 85,063 5,504 0 0 0 0 321,404
OFFICE SUPPLIES AND EXPENSES 838 40,745 25,976 6,184 199 0 0 0 73,942
PAYROLL FRINGES AND TAXES 4,464 248,996 206,274 47,558 0 0 0 0 507,292
RENT EXPENSE 9,583 96,012 91,620 53,385 0 0 0 0 250,600
TELEPHONE EXPENSE 2,132 50,800 51,413 8,543 0 0 0 0 112,888
OFFICE EQUIPMENT LEASES 0 5,098 0 165 0 0 0 0 5,263
INSURANCE EXPENSE 46,924 12,888 11,094 19,462 0 0 0 0 90,368
MISCELLANEOUS EXPENSE 5,391 23,748 (55) 9,745 0 50 0 0 38,879
DLC-OTHER SERVICES 378 16,196 0 0 0 0 0 0 16,574
DLC-A&G CHARGE 256 15,804 2,166 2,773 0 0 0 0 20,999
DQE COST ALLOCATION 0 484,681 0 0 0 0 0 0 484,681
MANAGEMENT FEE 622,753 0 0 3,719,869 0 0 0 (4,342,622) 0
ADVERTISING & PROMOTION 0 0 47,564 0 0 0 0 0 47,564
OUTSIDE ACCOUNTING SERVICES 0 0 375 0 0 0 0 0 375
OUTSIDE LEGAL SERVICES 0 322,739 2,940 144,740 0 0 0 0 470,419
OTHER OUTSIDE SERVICES 0 1,053,399 56,023 35,140 0 0 0 (252,826) 891,736
OUTSIDE ENGINEERING SERVICES 0 0 0 3,718 0 0 0 0 3,718
MANAGEMENT SERVICES 124,350 0 0 0 0 0 0 0 124,350
STATE CAPITAL STOCK TAX 136,474 (175,832) 308 344,522 89,708 300 0 0 395,480
PROPERTY TAX 0 0 0 24,703 0 0 0 0 24,703
PGH BUSINESS PRIVILEGE TAX 0 0 8,069 47,336 0 0 0 0 55,405
</TABLE>
<PAGE>
Exhibit 99.2 (cont.)
DQE ENTERPRISES
Consolidating YTD Income Statement
For the Periods Ending 12/31/99
<TABLE>
<CAPTION>
Allegheny Property Keystone
Development DQE Venture Power
Corporation Enterprises On Demand Ltd. Services JLK Eliminations Total
----------- ----------- ---------- ---------- --------- ------- ------ ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COST OF ASSETS SOLD 0 0 0 29,070,649 0 0 0 0 29,070,649
ADC OPERATING EXPENSES 6,820,849 0 0 0 0 0 0 0 6,820,849
BROADPOINT OPERATING EXPENSES 0 25,000 0 0 0 0 0 0 25,000
RENTAL PROPERTY EXPENSES 0 0 0 5,348,674 0 0 0 0 5,348,674
ON DEMAND ENERGY OPER EXPENSES 0 0 3,120,703 0 0 0 0 0 3,120,703
ENSITE L.P. OPERATING EXPENSES 0 0 0 0 0 350,112 0 0 350,112
----------- ----------- ---------- ---------- --------- ------- ------ ---------- ----------
TOTAL OPERATING EXPENSE 8,548,797 3,394,745 4,144,725 41,636,763 699,143 351,098 0 (4,595,448) 54,179,823
----------- ----------- ---------- ---------- --------- ------- ------ ---------- ----------
TOTAL OPERATING INCOME 3,832,035 (370,504) (1,031,215) 13,815,442 (699,143) (12,623) 0 2,167,606 17,701,598
INTEREST EARNED 156,146 195,151 68,755 469,912 182,226 36,000 0 (843,503) 264,687
OTHER INCOME 0 1,012,000 110,000 (7,503) 1,464,924 0 0 182,226 2,761,647
MANAGEMENT FEE 0 4,342,622 0 0 0 0 0 (4,342,622) 0
----------- ----------- ---------- ---------- --------- ------- ------ ---------- ----------
TOTAL OTHER INCOME 156,146 5,549,773 178,755 462,409 1,647,150 36,000 0 (5,003,899) 3,026,334
----------- ----------- ---------- ---------- --------- ------- ------ ---------- ----------
INTEREST EXPENSE 0 1,949,412 102,633 951,702 0 0 0 (661,277) 2,342,470
NET INCOME BEFORE TAX 3,988,181 3,229,857 (955,093) 13,326,149 948,007 23,377 0 (2,175,016) 18,385,462
FEDERAL INCOME TAXES 1,257,212 110,888 (331,587) 4,199,323 338,663 2,983 0 0 5,577,482
STATE INCOME TAXES 398,671 57,484 0 1,331,636 (10,498) 15,015 0 0 1,792,308
----------- ----------- ---------- ---------- --------- ------- ------ ---------- ----------
NET INCOME AFTER TAX 2,332,298 3,061,485 (623,506) 7,795,190 619,842 5,379 0 (2,175,016) 11,015,672
=========== =========== ========== ========== ========= ======= ====== ========== ==========
</TABLE>
<PAGE>
Exhibit 99.2 (cont.)
DQE ENTERPRISES
Consolidating Balance Sheet
As of 12/31/99
<TABLE>
<CAPTION>
Allegheny Property Keystone
Development DQE Venture Power
Corporation Enterprises OnDemand Ltd. Services JLK Eliminations Total
----------- ----------- ---------- ---------- --------- ------- ------ ------------ ----------
ASSETS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CASH $0 $1,103,701 $0 $0 ($1) $0 $0 $1 $1,103,701
TEMPORARY INVESTMENTS 0 957,006 0 0 0 0 0 0 957,006
----------- ----------- ---------- ----------- --------- ------- ------ ------------ ----------
TOTAL CASH $0 $2,060,707 $0 $0 ($1) $0 $0 $1 $2,060,707
ACCTS RECEIVABLE-DLC $2,288 $0 $0 ($10,366) $0 $0 0 $0 ($8,078)
ACCTS RECEIVABLE-ADC 0 3,585,246 0 0 50,382 0 0 (3,635,628) 0
ACCTS RECEIVABLE-PVL 0 14,455,944 0 0 23,001 0 0 (14,478,945) 0
ACCTS RECEIVABLE-KEYSTONE 0 109,155 0 0 0 0 0 (109,155) 0
ACCTS RECEIVABLE-DQE 980 11,733 0 0 0 0 0 0 12,713
ACCTS RECEIVABLE-MONITOR.COM 0 90,511 0 0 0 0 0 0 90,511
ACCTS RECEIVABLE-JLK TECH 0 283,610 0 0 13,799 0 0 (297,409) 0
ACCTS RECEIVABLE-ON DEMAND ENE 0 (588,742) 0 0 0 0 0 588,742 0
ADVANCES RECEIVABLE-PVL 84,280 (13,233,753) 0 0 0 0 0 13,149,473 0
ADVANCES RECEIVABLE-DE 6,110,964 0 244,399 41,274,569 0 0 0 (47,629,931) 1
ACCTS RECEIVABLE-DQE COMM 0 (19,282) 0 0 0 0 0 0 (19,282)
ADVANCES RECEIVABLE-DQE CO 0 28,481 0 0 0 0 0 (28,481) 0
ACCTS RECEIVABLE-OTHER 1,255,082 1,683,060 435,498 83,543 0 0 0 (176,079) 3,281,104
ACCTS RECEIVABLE-ATS 0 102,884 0 0 0 0 0 0 102,884
OTHER CURRENT ASSETS 0 0 0 0 25,000 0 0 0 25,000
----------- ----------- ---------- ----------- --------- ------- ------ ------------ ----------
TOTAL RECEIVABLES $7,453,594 $6,508,847 $679,897 $41,347,746 $112,182 $0 $0 ($52,617,413) $3,484,852
INVENTORY $0 $0 $7,285 $0 $0 $0 $0 $0 $7,285
DEFERRED FEDERAL INCOME TAXES 0 0 0 0 0 0 0 0 0
DEFERRED STATE INCOME TAXES 0 0 0 0 0 0 0 0 0
----------- ----------- ---------- ----------- --------- ------- ------ ------------ ----------
TOTAL OTHER CURRENT ASSETS $0 $0 $7,285 $0 $0 $0 $0 $0 $7,285
----------- ----------- ---------- ----------- --------- ------- ------ ------------ ----------
TOTAL CURRENT ASSETS $7,453,594 $8,569,554 $687,182 $41,347,746 $112,181 $0 $0 ($52,617,412) $5,552,844
</TABLE>
<PAGE>
Exhibit 99.2 (cont.)
DQE ENTERPRISES
Consolidating Balance Sheet
As of 12/31/99
<TABLE>
<CAPTION>
Allegheny Property Keystone
Development DQE Venture Power
Corporation Enterprises On Demand Ltd. Services
-------------- -------------- ------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
OFFICE FURNITURE & EQUIPMENT $52,917 $420,583 $363,421 $91,952 $0
ACC DEPREC-OFF FURN & EQUIP (38,850) (226,326) (83,098) (65,216) 0
-------------- -------------- ------------- -------------- --------------
OFFICE FURNITURE & EQUIPMENT $14,067 $194,257 $280,323 $26,736 $0
BUILDINGS $0 $0 $0 $33,342,099 $0
ACC DEPREC-BUILDINGS 0 0 0 (7,006,807) 0
BUILDINGS $0 $0 $0 $26,335,292 $0
ADC ENERGY FACILITIY $11,124,429 $0 $0 $0 $0
ACC DEPREC-ADC ENERGY FACILITY (5,938,195) 0 0 0 0
-------------- -------------- ------------- -------------- --------------
ENERGY FACILITY $5,186,234 $0 $0 $0 $0
-------------- -------------- ------------- -------------- --------------
ODE-SHARED SAVINGS ASSETS $0 $0 $1,038,657 $0 $0
ODE-ACC DEP SHARED SAVINGS ASSETS 0 0 (148,243) 0 0
-------------- -------------- ------------- -------------- --------------
ODE SHARED SAVINGS ASSETS $0 $0 $890,414 $0 $0
LAND $0 $0 $0 $5,338,971 $0
-------------- -------------- ------------- -------------- --------------
TOTAL FIXED ASSETS $5,200,301 $194,257 $1,170,737 $31,700,999 $0
GOODWILL $0 $0 $0 $0 $18,768,495
DEFERRED DEBITS 1,533 300,364 24,325 563,903 570,041
DEFERRED FEDERAL INCOME TAXES 0 0 0 0 0
DEFERRED STATE INCOME TAXES 0 0 0 0 0
TOTAL DEFERRED ASSETS $1,533 $300,364 $24,325 $563,903 $19,338,536
INVESTMENTS $0 $92,486,866 $110,000 $0 $5,026,966
LEASE PAYMENT RECEIVABLE 0 0 1,167,626 0 0
-------------- -------------- ------------- -------------- --------------
TOTAL OTHER ASSETS $0 $92,486,866 $1,277,626 $0 $5,026,966
-------------- -------------- ------------- -------------- --------------
TOTAL ASSETS $12,655,428 $101,551,041 $3,159,870 $73,612,648 $24,477,683
============== ============== ============= ============== ==============
<CAPTION>
JLK Eliminations Total
-------------- ----------------- --------------
<S> <C> <C> <C> <C>
OFFICE FURNITURE & EQUIPMENT $0 $0 $0 $928,873
ACC DEPREC-OFF FURN & EQUIP 0 0 0 (413,490)
-------------- -------------- ----------------- --------------
OFFICE FURNITURE & EQUIPMENT $0 $0 $0 $515,383
BUILDINGS $0 $0 $0 $33,342,099
ACC DEPREC-BUILDINGS 0 0 0 (7,006,807)
BUILDINGS $0 $0 $0 $26,335,292
ADC ENERGY FACILITIY $0 $0 $0 $11,124,429
ACC DEPREC-ADC ENERGY FACILITY 0 0 0 (5,938,195)
-------------- -------------- ----------------- --------------
ENERGY FACILITY $0 $0 $0 $5,186,234
-------------- -------------- ----------------- --------------
ODE-SHARED SAVINGS ASSETS $0 $0 $0 $1,038,657
ODE-ACC DEP SHARED SAVINGS ASSETS 0 0 0 (148,243)
-------------- -------------- ----------------- --------------
ODE SHARED SAVINGS ASSETS $0 $0 $0 $890,414
LAND $0 $0 $0 $5,338,971
-------------- -------------- ----------------- --------------
TOTAL FIXED ASSETS $0 $0 $0 $38,266,294
GOODWILL $0 $0 $0 $18,768,495
DEFERRED DEBITS 0 0 (17,243) 1,442,923
DEFERRED FEDERAL INCOME TAXES 0 0 0 0
DEFERRED STATE INCOME TAXES 0 0 0 0
TOTAL DEFERRED ASSETS $0 $0 ($17,243) $20,211,418
INVESTMENTS $362,130 $0 ($64,701,636) $33,284,326
LEASE PAYMENT RECEIVABLE 0 0 0 1,167,626
-------------- -------------- ----------------- --------------
TOTAL OTHER ASSETS $362,130 $0 ($64,701,636) $34,451,952
-------------- -------------- ----------------- --------------
TOTAL ASSETS $362,130 $0 ($117,336,291) $98,482,508
============== ============== ================= ==============
</TABLE>
<PAGE>
Exhibit 99.2 (cont.)
DQE ENTERPRISES
Consolidating Balance Sheet
As of 12/31/99
<TABLE>
<CAPTION>
Allegheny Property Keystone
Development DQE Venture Power
Corporation Enterprises On Demand Ltd. Services JLK
-------------- -------------- ------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & OWNER'S EQUITY
ACCOUNTS PAYABLE-ODE $0 $176,079 $0 $0 $0 $0
ACCOUNTS PAYABLE-DLC 0 6,268 3,558 0 0 0
ACCTS PAYABLE-DE 3,585,246 0 (588,742) 14,455,944 109,155 283,610
ACCOUNTS PAYABLE-DQE 0 335,459 41,976 0 0 0
ACCOUNTS PAYABLE-DQEES 74,958 0 0 0 0 0
ADVANCES PAYABLE-ADC 0 6,110,964 0 84,280 0 0
ADVANCES PAYABLE-PVL 0 28,040,816 0 0 0 0
ADVANCES PAYABLE-DE 0 0 0 0 28,481 0
ADVANCES PAYABLE-ODE 0 244,399 0 0 0 0
NOTES PAYABLE-CURRENT 0 8,000,000 2,000,000 0 0 0
ACCOUNTS PAYABLE 0 0 359,463 0 0 0
ACCOUNTS PAYABLE-OTHERS 555,364 1,223,939 364,026 178,758 0 0
ACCOUNTS PAYABLE-CHECKS ISSUED 97,502 8,920 1,635 56,209 0 0
PAYROLL WITHHOLDINGS 0 5,224 6,078 0 0 0
CURRENT PORTION OF LT DEBT 0 0 0 403,386 0 0
PAYROLL ACCRUAL 0 112,000 0 7,500 0 0
ACCTS PAYABLE-LONG TERM INC 0 93,608 0 0 0 0
-------------- -------------- ------------- -------------- -------------- --------------
TOTAL SHORT TERM PAYABLES $4,313,070 $44,357,676 $2,187,994 $15,186,077 $137,636 $283,610
INTEREST ACCRUED $0 $63,715 $13,589 $0 $0 $0
STATE INCOME TAXES PAYABLE $94,444 $3,320,070 ($5,162) $1,299,087 ($2,557) $2,031
ACCRUED LOCAL TAXES 0 0 5,440 0 0 0
ACCRUED CAPITAL STOCK TAX 2,696 (251,140) (3,195) 44,062 62,735 300
RESERVES - CHESTER SALE 0 3,191,176 0 0 0 0
-------------- -------------- ------------- -------------- -------------- --------------
TOTAL OTHER LIABILITIES $97,140 $6,323,821 $10,672 $1,343,149 $60,178 $2,331
-------------- -------------- ------------- -------------- -------------- --------------
TOTAL CURRENT LIABILITIES $4,410,210 $50,681,497 $2,198,666 $16,529,226 $197,814 $285,941
<CAPTION>
Eliminations Total
----------------- --------------
<S> <C> <C> <C>
ACCOUNTS PAYABLE-ODE $0 ($176,079) $0
ACCOUNTS PAYABLE-DLC 0 0 9,826
ACCTS PAYABLE-DE 0 (17,845,213) 0
ACCOUNTS PAYABLE-DQE 0 0 377,435
ACCOUNTS PAYABLE-DQEES 0 0 74,958
ADVANCES PAYABLE-ADC 0 (6,195,244) 0
ADVANCES PAYABLE-PVL 0 (28,040,816) 0
ADVANCES PAYABLE-DE 0 (28,481) 0
ADVANCES PAYABLE-ODE 0 (244,399) 0
NOTES PAYABLE-CURRENT 0 0 10,000,000
ACCOUNTS PAYABLE 0 0 359,463
ACCOUNTS PAYABLE-OTHERS 0 0 2,322,087
ACCOUNTS PAYABLE-CHECKS ISSUED 0 0 164,266
PAYROLL WITHHOLDINGS 0 0 11,302
CURRENT PORTION OF LT DEBT 0 0 403,386
PAYROLL ACCRUAL 0 0 119,500
ACCTS PAYABLE-LONG TERM INC 0 0 93,608
-------------- ----------------- --------------
TOTAL SHORT TERM PAYABLES $0 ($52,530,232) $13,935,831
INTEREST ACCRUED $0 $0 $77,304
STATE INCOME TAXES PAYABLE $0 $0 $4,707,913
ACCRUED LOCAL TAXES 0 0 5,440
ACCRUED CAPITAL STOCK TAX 0 0 (144,542)
RESERVES - CHESTER SALE 0 0 3,191,176
-------------- ----------------- --------------
TOTAL OTHER LIABILITIES $0 $0 $7,837,291
-------------- ----------------- --------------
TOTAL CURRENT LIABILITIES $0 ($52,530,232) $21,773,122
</TABLE>
<PAGE>
Exhibit 99.2 (cont.)
DQE ENTERPRISES
Consolidating Balance Sheet
As of 12/31/99
<TABLE>
<CAPTION>
Allegheny Property Keystone
Development DQE Venture Power
Corporation Enterprises OnDemand Ltd. Services JLK
-------------- -------------- ------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
OTHER LIABILITES $178,216 $0 $297,852 $0 $0 $0
DEFERRED INCOME TAXES 384,505 (3,321,978) 23,247 (1,155,495) 131,598 (3,384)
MORTGAGE PAYABLE 0 0 0 7,063,091 0 0
OTHER LIABILITIES 0 0 131,511 0 0 0
-------------- -------------- ------------- -------------- -------------- --------------
TOTAL OTHER LIABILITES $562,721 ($3,321,978) $452,610 $5,907,596 $131,598 ($3,384)
-------------- -------------- ------------- -------------- -------------- --------------
TOTAL LIABILITIES $4,972,931 $47,359,519 $2,651,276 $22,436,822 $329,412 $282,557
SHAREHOLDER EQUITY:
COMMON STOCK $96,000 $2 $45,500 $1 $0 $0
ADDITIONAL PAID IN CAPITAL 6,889,377 79,005,562 1,654,500 50,320,822 23,217,968 0
RETAINED EARNINGS 6,993,207 27,030,648 (567,898) 3,593,253 310,461 74,193
YTD NET INCOME 2,332,299 3,061,485 (623,508) 7,795,191 619,842 5,380
DIVIDENDS (8,628,386) (54,906,175) 0 (10,533,441) 0 0
TREASURY STOCK 0 0 0 0 0 0
-------------- -------------- ------------- -------------- -------------- --------------
TOTAL SHAREHOLDER EQUITY $7,682,497 $54,191,522 $508,594 $51,175,826 $24,148,271 $79,573
-------------- -------------- ------------- -------------- -------------- --------------
TOTAL LIABILITY/OWNER EQUITY $12,655,428 $101,551,041 $3,159,870 $73,612,648 $24,477,683 $362,130
============== ============== ============= ============== ============== ==============
<CAPTION>
Eliminations Total
----------------- --------------
<S> <C> <C> <C>
OTHER LIABILITES $0 $0 $476,068
DEFERRED INCOME TAXES 0 0 (3,941,508)
MORTGAGE PAYABLE 0 0 7,063,091
OTHER LIABILITIES 0 0 131,511
-------------- ----------------- --------------
TOTAL OTHER LIABILITES $0 $0 $3,729,163
-------------- ----------------- --------------
TOTAL LIABILITIES $0 ($52,530,232) $25,502,284
SHAREHOLDER EQUITY:
COMMON STOCK $0 ($141,500) $3
ADDITIONAL PAID IN CAPITAL 0 (82,143,348) 78,944,881
RETAINED EARNINGS 0 491,979 37,925,843
YTD NET INCOME 0 (2,175,016) 11,015,673
DIVIDENDS 0 19,161,826 (54,906,176)
TREASURY STOCK 0 (1) (1)
-------------- ----------------- --------------
TOTAL SHAREHOLDER EQUITY $0 ($64,806,060) $72,980,224
-------------- ----------------- --------------
TOTAL LIABILITY/OWNER EQUITY $0 ($117,336,291) $94,482,508
============== ================= ==============
</TABLE>
<PAGE>
Exhibit 99.3
DQE ENERGY SERVICES
Consolidating Income Statement
For the Twelve Months Ending December 31, 1999
<TABLE>
<CAPTION>
DQEES DH ENERGY MT ENERGY DQEPI DEN
<S> <C> <C> <C> <C> <C>
REVENUES 124,800.00 3,041,810.64 899,277.22 0.00 5,760,125.00
DIVIDEND REVENUE 281,294.15 0.00 0.00 0.00 0.00
-------------- ------------ ----------- ----- --------------
TOTAL REVENUE 406,094.15 3,041,810.64 899,277.22 0.00 5,760,125.00
COST OF GOODS SOLD 0.00 0.00 0.00 0.00 9,571,554.21
SALARIES 1,190,820.07 44,360.03 350,408.29 0.00 620,503.20
DEPRECIATION 90,897.04 232,113.94 0.00 0.00 2,362,255.64
EMPLOYEE EXPENSES 61,747.02 1,607.46 659.87 0.00 193,588.46
OFFICE SUPPLIES AND EXPENSES 25,187.02 0.00 861.44 0.00 10,740.58
PAYROLL FRINGES AND TAXES 351,289.55 9,780.00 136,295.12 0.00 149,414.26
RENT EXPENSE 170,987.43 0.00 0.00 0.00 100,345.76
TELEPHONE EXPENSE 31,122.21 0.00 1,632.34 0.00 26,425.43
OFFICE EQUIPMENT LEASES 0.00 0.00 54.22 0.00 0.00
INSURANCE EXPENSE 771.00 0.00 0.00 0.00 115,281.23
ADVERTISING & PROMOTIONAL 4,556.01 0.00 0.00 0.00 3,593.89
COMPUTER SERVICES 0.00 0.00 0.00 0.00 73.83
DUES & MEMBERSHIPS 1,734.00 0.00 0.00 0.00 189.28
SUBSCRIPTIONS & PUBLICATIONS 527.26 0.00 0.00 0.00 245.00
POSTAGE 7,795.27 0.00 136.33 0.00 2,887.30
CONTRIBUTION 0.00 0.00 0.00 0.00 1,244.00
MISCELLANEOUS EXPENSE 69,370.47 420.78 0.00 0.00 8,147.65
DLC-OTHER SERVICES 24,409.38 0.00 0.00 0.00 (21,691.93)
DLC-A&G CHARGE 2,261.52 0.00 0.00 0.00 0.00
DQE MANAGEMENT FEE 213,298.00 0.00 0.00 0.00 0.00
LONG TERM INCENTIVE 108,518.25 0.00 0.00 0.00 0.00
OUTSIDE ACCOUNTING SERVICES 2,805.80 0.00 0.00 0.00 0.00
OUTSIDE LEGAL SERVICES 66,794.76 0.00 0.00 0.00 67,650.35
OTHER OUTSIDE SERVICES 91,347.00 0.00 0.00 0.00 299,161.21
OUTSIDE ENGINEERING SERVICES 0.00 0.00 0.00 0.00 202,485.26
CONSTRUCTION CONSULTING FEES 0.00 0.00 0.00 0.00 612,321.23
STATE CAPITAL STOCK TAX 28,910.00 46,976.00 9,270.97 0.00 115,420.00
PGH BUSINESS PRIVILEGE TAX 5,000.04 20,000.04 0.00 0.00 5,250.04
OPERATING EXP. - MT ENERGY,INC 0.00 0.00 108,141.66 0.00 0.00
OPERATING EXP. - DH ENERGY,INC 0.00 1,648,533.01 0.00 0.00 0.00
OPERATING EXP. - DEN 0.00 0.00 0.00 0.00 5,789,149.97
OPERATING EXP. - MONMOUTH 0.00 0.00 0.00 0.00 0.00
OPERATING EXP. - DHCANADA 0.00 0.00 0.00 0.00 0.00
PURCHASED POWER 0.00 0.00 0.00 0.00 0.00
-------------- ------------ ----------- ----- --------------
TOTAL OPERATING EXPENSES 2,550,149.10 2,003,791.26 607,460.24 0.00 20,236,235.85
TOTAL OPERATING INCOME (LOSS) (2,144,054.95) 1,038,019.38 291,816.98 0.00 (14,476,110.85)
INTEREST EARNED 69,450.98 0.00 0.00 0.00 0.00
OTHER (EXPENSE)/INCOME (820,966.61) 0.00 0.00 0.00 0.00
INTEREST EXPENSE 13,405.48 500,580.00 0.00 0.00 36,916.28
-------------- ------------ ----------- ----- --------------
NET INCOME BEFORE TAX (2,908,976.06) 537,439.38 291,816.98 0.00 (14,513,027.13)
FEDERAL INCOME TAXES (1,116,594.57) 169,312.22 91,932.56 0.00 (5,079,559.49)
STATE INCOME TAXES 0.00 53,690.19 29,152.52 0.00 0.00
FIT EXPENSE-SEC 29 0.00 (155,697.00) 0.00 0.00 (3,333,270.78)
-------------- ------------ ----------- ----- --------------
NET INCOME AFTER TAX ($1,792,381.49) $470,133.97 $170,731.90 $0.00 ($6,100,196.86)
============== ============ =========== ===== ==============
</TABLE>
<TABLE>
<CAPTION>
MT DETROIT MONMOUTH DHCANADA ELIMINATIONS TOTAL
<S> <C> <C> <C> <C> <C>
REVENUES 250,000.00 1,654,722.65 5,395,904.98 0.00 17,126,640.49
DIVIDEND REVENUE 0.00 0.00 0.00 (281,294.15) 0.00
----------- ------------- ------------ ----------- --------------
TOTAL REVENUE 250,000.00 1,654,722.65 5,395,904.98 (281,294.15) 17,126,640.49
COST OF GOODS SOLD 0.00 0.00 0.00 0.00 9,571,554.21
SALARIES 0.00 43,260.00 39,954.00 0.00 2,289,305.59
DEPRECIATION 0.00 498,124.49 267,454.28 0.00 3,450,845.39
EMPLOYEE EXPENSES 0.00 3,394.71 3,716.96 0.00 264,714.48
OFFICE SUPPLIES AND EXPENSES 0.00 0.00 0.00 0.00 36,789.04
PAYROLL FRINGES AND TAXES 0.00 8,307.82 4,147.00 0.00 659,233.75
RENT EXPENSE 0.00 0.00 0.00 0.00 271,333.19
TELEPHONE EXPENSE 0.00 13,020.30 2,121.53 0.00 74,321.81
OFFICE EQUIPMENT LEASES 0.00 0.00 0.00 0.00 54.22
INSURANCE EXPENSE 0.00 107,403.90 27,576.18 0.00 251,032.31
ADVERTISING & PROMOTIONAL 0.00 3,115.00 0.00 0.00 11,264.90
COMPUTER SERVICES 0.00 0.00 0.00 0.00 73.83
DUES & MEMBERSHIPS 0.00 0.00 0.00 0.00 1,923.28
SUBSCRIPTIONS & PUBLICATIONS 0.00 0.00 0.00 0.00 772.26
POSTAGE 0.00 13.75 0.00 0.00 10,832.65
CONTRIBUTION 0.00 0.00 0.00 0.00 1,244.00
MISCELLANEOUS EXPENSE 0.00 (12,525.12) 1,500.83 0.00 66,914.61
DLC-OTHER SERVICES 0.00 0.00 0.00 0.00 2,717.45
DLC-A&G CHARGE 0.00 0.00 0.00 0.00 2,261.52
DQE MANAGEMENT FEE 0.00 0.00 0.00 0.00 213,298.00
LONG TERM INCENTIVE 0.00 0.00 0.00 0.00 108,518.25
OUTSIDE ACCOUNTING SERVICES 0.00 0.00 0.00 0.00 2,805.80
OUTSIDE LEGAL SERVICES 0.00 0.00 0.00 0.00 134,445.11
OTHER OUTSIDE SERVICES 0.00 1,595.96 0.00 0.00 392,104.17
OUTSIDE ENGINEERING SERVICES 0.00 0.00 0.00 0.00 202,485.26
CONSTRUCTION CONSULTING FEES 0.00 0.00 0.00 0.00 612,321.23
STATE CAPITAL STOCK TAX 0.00 0.00 0.00 0.00 200,576.97
PGH BUSINESS PRIVILEGE TAX 0.00 0.00 0.00 0.00 30,250.12
OPERATING EXP. - MT ENERGY,INC 0.00 0.00 0.00 0.00 108,141.66
OPERATING EXP. - DH ENERGY,INC 0.00 0.00 0.00 0.00 1,648,533.01
OPERATING EXP. - DEN 0.00 0.00 0.00 0.00 5,789,149.97
OPERATING EXP. - MONMOUTH 0.00 1,031,003.11 0.00 0.00 1,031,003.11
OPERATING EXP. - DHCANADA 0.00 0.00 4,559,612.17 0.00 4,559,612.17
PURCHASED POWER 0.00 0.00 170,876.83 0.00 170,876.83
----------- ------------- ------------ ----------- --------------
TOTAL OPERATING EXPENSES 0.00 1,696,713.92 5,076,959.78 0.00 32,171,310.15
TOTAL OPERATING INCOME (LOSS) 250,000.00 (41,991.27) 318,945.20 (281,294.15) (15,044,669.66)
INTEREST EARNED 0.00 0.00 0.00 0.00 69,450.98
OTHER (EXPENSE)/INCOME 0.00 (10,898.52) (3,809.58) 0.00 (835,674.71)
INTEREST EXPENSE 17,095.89 0.00 109,046.20 0.00 677,043.85
----------- ------------- ------------ ----------- --------------
NET INCOME BEFORE TAX 232,904.11 (52,889.79) 206,089.42 (281,294.15) (16,487,937.24)
FEDERAL INCOME TAXES 73,372.95 (18,511.43) 0.00 0.00 (5,880,047.76)
STATE INCOME TAXES 23,267.12 0.00 0.00 0.00 106,109.83
FIT EXPENSE-SEC 29 0.00 (1,003,953.60) 0.00 0.00 (4,492,921.38)
----------- ------------- ------------ ----------- --------------
NET INCOME AFTER TAX $136,264.04 $969,575.24 $206,089.42 ($281,294.15) ($6,221,077.93)
=========== ============= ============ =========== ==============
</TABLE>
<PAGE>
Exhibit 99.3 (cont.)
DQE ENERGY SERVICES
Consolidating Balance Sheet
For the Twelve Months Ending December 31, 1999
<TABLE>
<CAPTION>
DQEES DH ENERGY MT ENERGY DQEPI DEN
-------------- ------------- ----------- ----- --------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS:
ACCTS RECEIVABLE-ENERGY SVCS 0.00 0.00 54.74 0.00 0.00
ACCTS RECEIVABLE-DQE 0.00 0.00 0.00 0.00 6,750.00
ACCTS RECEIVABLE-ADC 10,650.00 0.00 173,915.84 0.00 0.00
ACCTS RECEIVABLE-HEINZ 0.00 415,097.02 0.00 0.00 225,205.70
ACCTS RECEIVABLE-DEN 1,154.01 0.00 0.00 0.00 0.00
ACCTS RECEIVABLE-DH ENERGY 2,128.74 0.00 0.00 0.00 0.00
ACCTS RECEIVABLE DH CANADA 76.36 0.00 0.00 0.00 0.00
ACCTS RECEIVABLE-MT DETROIT 1,548.95 0.00 0.00 0.00 0.00
ACCTS RECEIVABLE-METRO ENRGY 0.00 0.00 0.00 0.00 0.00
ACCOUNTS RECEIVABLE-DLC 0.00 0.00 0.00 0.00 51,491.88
ACCOUNTS RECEIVABLE - GST 0.00 0.00 0.00 0.00 0.00
A/R DEN CUSTOMERS 0.00 0.00 0.00 0.00 687,796.43
ACCOUNTS RECEIVABLE - GPU 0.00 0.00 0.00 0.00 0.00
ACCTS RECEIVABLE-OTHER 66,953.92 0.00 0.00 0.00 14,428.00
FEDERAL TAX RECEIVABLE-DQEES 0.00 0.00 0.00 0.00 149,218.13
FEDERAL TAX RECEIVABLE - DQE 0.00 0.00 0.00 0.00 0.00
FEDERAL TAX RECEIVABLE - MT 2,990.70 0.00 0.00 0.00 0.00
FEDERAL TAX RECEIVABLE - DH 44,754.36 0.00 0.00 0.00 0.00
FEDERAL TAX RECEIVABLE - MME 33,406.17 0.00 0.00 0.00 0.00
FEDERAL TAX RECEIVABLE - MT DETROIT 73,372.95 0.00 0.00 0.00 0.00
NOTES RECEIVABLE-DEN 700,000.00 0.00 0.00 0.00 0.00
FEDERAL TAX REC. - SEC. 29 (169,472.45) 0.00 0.00 0.00 278,823.62
-------------- ------------- ----------- ----- --------------
TOTAL RECEIVABLES 767,563.71 415,097.02 173,970.58 0.00 1,413,713.76
CASH (564,760.60) (82,356.87) (13,894.26) 0.00 (141,666.36)
PREPAID EXPENSES 6,054.07 22,498.14 0.00 0.00 136,060.54
-------------- ------------- ----------- ----- --------------
TOTAL CURRENT ASSETS 287,040.96 355,238.29 160,076.32 0.00 1,408,107.94
INVENTORY 0.00 18,399.80 0.00 0.00 197,378.11
CONSTRUCTION WORK IN PROGRESS 0.00 177,971.99 0.00 0.00 0.00
OFFICE FURNITURE & EQUIPMENT 654,596.70 7,279.22 0.00 0.00 173,304.90
ACC DEPREC-OFF FURN & EQUIP (188,031.05) (473.88) 0.00 0.00 (76,854.91)
PLANT, PROPERTY & EQUIP. 0.00 5,762,583.52 0.00 0.00 44,409,703.19
ACCM.DEPREC. PP&E 0.00 (309,828.19) 0.00 0.00 (2,900,000.12)
PREDICTIVE OVERHALL PP&E 0.00 618,757.84 0.00 0.00 0.00
ACCUM.DEPRE. PEDICT. OVERHALL 0.00 (75,472.58) 0.00 0.00 0.00
LAND 0.00 0.00 0.00 0.00 745,588.49
-------------- ------------- ----------- ----- --------------
TOTAL FIXED ASSETS 466,565.65 6,199,217.72 0.00 0.00 42,549,119.66
CLOSURE DEPOSITS 0.00 0.00 0.00 0.00 66,759.00
PATENTS 0.00 0.00 0.00 0.00 51,250.64
LICENSES 0.00 0.00 0.00 0.00 1,284,922.19
TRADEMARKS 0.00 0.00 0.00 0.00 13,787.55
INVESTMENTS 69,299,795.71 0.00 0.00 0.00 0.00
-------------- ------------- ----------- ----- --------------
TOTAL ASSETS $70,053,402.32 $6,554,456.01 $160,076.32 $0.00 $45,373,946.98
============== ============= =========== ===== ==============
</TABLE>
<TABLE>
<CAPTION>
MT DETROIT MONMOUTH DHCANADA ELIMINATIONS TOTAL
------------- -------------- ------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS:
ACCTS RECEIVABLE-ENERGY SVCS 8,689.31 0.00 0.00 (8,744.05) 0.00
ACCTS RECEIVABLE-DQE 0.00 39,788.82 0.00 0.00 46,538.82
ACCTS RECEIVABLE-ADC 0.00 0.00 0.00 0.00 184,565.84
ACCTS RECEIVABLE-HEINZ 0.00 0.00 523,225.67 0.00 1,163,528.39
ACCTS RECEIVABLE-DEN 0.00 0.00 0.00 (1,154.01) 0.00
ACCTS RECEIVABLE-DH ENERGY 0.00 0.00 0.00 (2,128.74) 0.00
ACCTS RECEIVABLE DH CANADA 0.00 0.00 0.00 (76.36) 0.00
ACCTS RECEIVABLE-MT DETROIT 0.00 0.00 0.00 (1,548.95) 0.00
ACCTS RECEIVABLE-METRO ENRGY 593,122.76 0.00 0.00 0.00 593,122.76
ACCOUNTS RECEIVABLE-DLC 0.00 0.00 0.00 0.00 51,491.88
ACCOUNTS RECEIVABLE - GST 0.00 0.00 74,230.33 0.00 74,230.33
A/R DEN CUSTOMERS 0.00 0.00 0.00 0.00 687,796.43
ACCOUNTS RECEIVABLE - GPU 0.00 401,898.49 0.00 0.00 401,898.49
ACCTS RECEIVABLE-OTHER 0.00 0.00 0.00 0.00 81,381.92
FEDERAL TAX RECEIVABLE-DQEES 0.00 0.00 0.00 (149,218.13) 0.00
FEDERAL TAX RECEIVABLE - DQE 0.00 0.00 0.00 0.00 0.00
FEDERAL TAX RECEIVABLE - MT 0.00 0.00 0.00 (2,990.70) 0.00
FEDERAL TAX RECEIVABLE - DH 0.00 0.00 0.00 (44,754.36) 0.00
FEDERAL TAX RECEIVABLE - MME 0.00 0.00 0.00 (33,406.17) 0.00
FEDERAL TAX RECEIVABLE - MT DETROIT 0.00 0.00 0.00 (73,372.95) 0.00
NOTES RECEIVABLE-DEN 0.00 0.00 0.00 (700,000.00) 0.00
FEDERAL TAX REC. - SEC. 29 0.00 2,005,285.60 0.00 (2,284,109.23) (169,472.46)
------------- -------------- ------------- --------------- --------------
TOTAL RECEIVABLES 601,812.07 2,446,972.91 597,456.00 (3,301,503.65) 3,115,082.40
CASH 147,560.45 83,796.55 180,690.46 0.00 (390,630.63)
PREPAID EXPENSES 0.00 49,881.36 11,899.20 0.00 226,393.31
------------- -------------- ------------- --------------- --------------
TOTAL CURRENT ASSETS 749,372.52 2,580,650.82 790,045.66 (3,301,503.65) 3,029,028.86
INVENTORY 0.00 0.00 0.00 0.00 215,777.91
CONSTRUCTION WORK IN PROGRESS 0.00 327,544.96 33,412.79 0.00 538,929.74
OFFICE FURNITURE & EQUIPMENT 0.00 0.00 0.00 0.00 835,180.82
ACC DEPREC-OFF FURN & EQUIP 0.00 0.00 0.00 0.00 (265,359.84)
PLANT, PROPERTY & EQUIP. 0.00 11,162,863.91 4,790,046.18 0.00 66,125,196.80
ACCM.DEPREC. PP&E 0.00 (677,531.95) (482,634.84) 0.00 (4,369,995.10)
PREDICTIVE OVERHALL PP&E 0.00 116,439.00 8,548.37 0.00 743,745.21
ACCUM.DEPRE. PEDICT. OVERHALL 0.00 (458.42) (7,081.04) 0.00 (83,012.04)
LAND 0.00 0.00 0.00 0.00 745,588.49
------------- -------------- ------------- --------------- --------------
TOTAL FIXED ASSETS 0.00 10,928,857.50 4,342,291.46 0.00 64,486,051.99
CLOSURE DEPOSITS 0.00 0.00 0.00 0.00 66,759.00
PATENTS 0.00 0.00 0.00 0.00 51,250.64
LICENSES 0.00 0.00 0.00 0.00 1,284,922.19
TRADEMARKS 0.00 0.00 0.00 0.00 13,787.55
INVESTMENTS 3,053,197.86 0.00 0.00 (69,299,795.71) 3,053,197.86
------------- -------------- ------------- --------------- --------------
TOTAL ASSETS $3,802,570.38 $13,509,503.32 $5,132,337.12 ($72,601,299.36) $ 71,906,814
============= ============== ============= =============== ==============
</TABLE>
<PAGE>
Exhibit 99.3 (cont.)
DQE ENERGY SERVICES
Consolidating Balance Sheet
For the Twelve Months Ending December 31, 1999
<TABLE>
<CAPTION>
DQEES DH ENERGY MT ENERGY DQEPI DEN
-------------- ------------- ----------- ----- --------------
<S> <C> <C> <C> <C> <C>
LIABILITIES & OWNERS' EQUITY
CURRENT LIABILITIES:
ACCOUNTS PAYABLE-DLC 0.00 0.00 0.00 0.00 14,729.28
ACCOUNTS PAYABLE-DQE 106,750.38 0.00 0.00 0.00 25,640.90
ACCOUNTS PAYABLE-DQEES 0.00 2,128.74 0.00 0.00 1,154.01
ACCOUNTS PAYABLE-MT ENERGY 54.74 0.00 0.00 0.00 0.00
ACCOUNTS PAYABLE - HEINZ 0.00 548,188.00 0.00 0.00 0.00
ACCOUNTS PAYABLE - MT DETROIT 8,689.31 0.00 0.00 0.00 0.00
ACCOUNTS PAYABLE-OTHERS 589,019.87 116,961.62 10,400.00 0.00 3,521,248.86
PAYROLL WITHHOLDINGS 32,046.65 0.00 0.00 0.00 79,404.11
FEDERAL TAX PAYABLE - DEN 149,218.13 0.00 0.00 0.00 0.00
ACCOUNTS PAYABLE - GST 0.00 0.00 0.00 0.00 0.00
ACCTS PAYABLE-FIT SEC 29 CR 2,284,109.23 0.00 0.00 0.00 0.00
FEDERAL INCOME TAXES PAYABLE 0.00 44,754.36 2,990.70 0.00 0.00
STATE INCOME TAXES PAYABLE 0.00 9,614.96 2,003.18 0.00 0.00
ACCRUED CAPITAL STOCK TAX 17,679.00 4,518.00 272.97 0.00 96,212.00
ACCRUED PGH BUSINESS PRIV TAX 4,395.54 38,000.04 0.00 0.00 5,250.04
PROPERTY TAX PAYABLE 0.00 0.00 0.00 0.00 637,921.12
-------------- ------------- ----------- ----- --------------
TOTAL CURRENT LIABILITIES 3,191,962.85 764,165.72 15,666.85 0.00 4,381,560.32
NOTES PAYABLE - LONG TERM 3,800,000.00 0.00 0.00 0.00 700,000.00
DEFERRED COMPENSATION PAYABLE 576,183.91 0.00 0.00 0.00 0.00
DEFERRED INCOME TAXES - NET (78,184.00) 0.00 0.00 0.00 0.00
-------------- ------------- ----------- ----- --------------
TOTAL LIABILITIES 7,489,962.76 764,165.72 15,666.85 0.00 5,081,560.32
OWNERS' EQUITY:
ADDITIONAL PAID IN CAPITAL 70,435,000.00 4,402,499.26 0.00 0.00 48,200,000.00
RETAINED EARNINGS (6,157,362.95) 917,657.06 254,971.72 0.00 (1,807,416.48)
YTD NET INCOME (1,792,381.49) 470,133.97 170,731.90 0.00 (6,100,196.86)
DIVIDENDS 0.00 0.00 (281,294.15) 0.00 0.00
-------------- ------------- ----------- ----- --------------
TOTAL OWNERS' EQUITY 62,485,255.56 5,790,290.29 144,409.47 0.00 40,292,386.66
-------------- ------------- ----------- ----- --------------
TOTAL LIAB & OWNERS' EQUITY $69,975,218.32 $6,554,456.01 $160,076.32 $0.00 $45,373,946.98
============== ============= =========== ===== ==============
</TABLE>
<TABLE>
<CAPTION>
MT DETROIT MONMOUTH DHCANADA ELIMINATIONS TOTAL
------------- -------------- ------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
LIABILITIES & OWNERS' EQUITY
CURRENT LIABILITIES:
ACCOUNTS PAYABLE-DLC 0.00 0.00 0.00 0.00 14,729.28
ACCOUNTS PAYABLE-DQE 0.00 0.00 0.00 0.00 132,391.28
ACCOUNTS PAYABLE-DQEES 1,548.95 0.00 76.36 (4,908.06) 0.00
ACCOUNTS PAYABLE-MT ENERGY 0.00 0.00 0.00 (54.74) 0.00
ACCOUNTS PAYABLE - HEINZ 0.00 0.00 0.00 0.00 548,188.00
ACCOUNTS PAYABLE - MT DETROIT 0.00 0.00 0.00 (8,689.31) 0.00
ACCOUNTS PAYABLE-OTHERS 9,397.81 112,074.67 392,235.04 0.00 4,751,337.87
PAYROLL WITHHOLDINGS 0.00 1,572.24 0.00 0.00 113,023.00
FEDERAL TAX PAYABLE - DEN 0.00 0.00 0.00 (149,218.13) 0.00
ACCOUNTS PAYABLE - GST 0.00 0.00 44,077.76 0.00 44,077.76
ACCTS PAYABLE-FIT SEC 29 CR 0.00 0.00 0.00 (2,284,109.23) 0.00
FEDERAL INCOME TAXES PAYABLE 73,372.95 33,406.17 0.00 (154,524.18) 0.00
STATE INCOME TAXES PAYABLE 23,267.12 200.00 0.00 0.00 35,085.26
ACCRUED CAPITAL STOCK TAX 0.00 0.00 0.00 0.00 118,681.97
ACCRUED PGH BUSINESS PRIV TAX 0.00 0.00 0.00 0.00 47,645.62
PROPERTY TAX PAYABLE 0.00 0.00 0.00 0.00 637,921.12
------------- -------------- ------------- --------------- --------------
TOTAL CURRENT LIABILITIES 107,586.83 147,253.08 436,389.16 (2,601,503.65) 6,443,081.16
NOTES PAYABLE - LONG TERM 0.00 0.00 2,661,732.23 (700,000.00) 6,461,732.23
DEFERRED COMPENSATION PAYABLE 0.00 0.00 0.00 0.00 576,183.91
DEFERRED INCOME TAXES - NET 0.00 0.00 0.00 0.00 (78,184.00)
------------- -------------- ------------- --------------- --------------
TOTAL LIABILITIES 107,586.83 147,253.08 3,098,121.39 (3,301,503.65) 13,402,813.30
OWNERS' EQUITY:
ADDITIONAL PAID IN CAPITAL 3,558,719.51 11,094,732.73 2,043,844.21 (69,299,795.71) 70,435,000.00
RETAINED EARNINGS 0.00 1,297,947.27 (215,717.90) 0.00 (5,709,921.28)
YTD NET INCOME 136,264.04 969,575.24 206,089.42 (281,294.15) (6,221,077.93)
DIVIDENDS 0.00 0.00 0.00 281,294.15 0.00
------------- -------------- ------------- --------------- --------------
TOTAL OWNERS' EQUITY 3,694,983.55 13,362,255.24 2,034,215.73 (69,299,795.71) 58,504,000.79
------------- -------------- ------------- --------------- --------------
TOTAL LIAB & OWNERS' EQUITY $3,802,570.38 $13,509,508.32 $5,132,337.12 ($72,601,299.36) $71,906,814.09
============= ============== ============= =============== ==============
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> OPUR3
<CIK> 0000846930
<NAME> DQE, Inc.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> DEC-31-1999
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 5,608,992,008
<TOTAL-OPERATING-REVENUES> 1,341,201,001
<NET-INCOME> 201,415,629
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> OPUR3
<CIK> 0000898598
<NAME> DQE Enterprises, Inc.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> DEC-31-1999
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 98,482,508
<TOTAL-OPERATING-REVENUES> 23,170,404
<NET-INCOME> 11,015,672
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> OPUR3
<CIK> 0001041647
<NAME> DQE ENERGY SERVICES, INC.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> DEC-31-1999
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 71,906,814
<TOTAL-OPERATING-REVENUES> 17,001,841
<NET-INCOME> (6,221,077)
</TABLE>
