UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM U-3A-2A
File No. 69-206
Statement by Holding Company Claiming Exemption Under
Rule U-3A-2 from the Provisions of the Public Utility
Holding Company Act of 1935
BANGOR HYDRO-ELECTRIC COMPANY
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 Utilities Holding Company Act of 1935, and submits the following
information:
1. Bangor Hydro-Electric Company (Bangor Hydro) is a Maine
corporation having its principal place of business at 33 State Street,
Bangor, Maine.
Bangor Hydro is principally engaged in the generation,
transmission, distribution and sale of electric energy in eastern Maine and
serves approximately 105,000 customers.
Bangor Gas Company, LLC ("Bangor Gas") is a limited liability
company organized under Maine law in 1997. It was formed to be a local
natural gas distribution company in the greater Bangor, Maine area. Bangor
Gas is currently seeking regulatory approvals to provide such service.
Bangor Gas's address is 21 Main Street, Bangor, Maine. Bangor Hydro
currently holds five percent (5%) of Bangor Gas's capital stock, with the
remainder held by Pacific Enterprises, Inc.
Bangor Energy Resale, Inc. ("Bangor Energy") is a corporation
organized under Maine law in 1997. It was formed for a single purpose, to
facilitate Bangor Hydro's use of a power sales agreement with Unitil Power
Corp. (the "Unitil contract") as collateral for a bank loan. Under the
arrangement (1) Bangor Hydro will assign the Unitil contract to Bangor
Energy; (2) Bangor Energy will purchase wholesale utility service from Bangor
Hydro to allow Bangor Energy to perform the Unitil contract; (3) Bangor
Energy will borrow money from a lender or lenders, assigning said lenders a
security interest in the Unitil contract; and (4) Bangor Energy will transfer
the net proceeds of the loan to Bangor Hydro. The entire transaction was
reviewed and approved by the Federal Energy Regulatory Commission and the
Maine Public Utilities Commission. Bangor Energy's address is 33 State
Street, Bangor, Maine. All of its capital stock is owned by Bangor Hydro.
Bangor Var Co., Inc. is a corporation organized under Maine law
in 1990. It was formed to be a general partner whose sole function is to own
a 50% interest in the Chester SVC Partnership, a partnership which owns the
static var compensator electrical equipment which supports the Hydro Quebec
Phase II transmission line.
East Branch Improvement Company is a water storage corporation
organized under the laws of the State of Maine. It operates on the East
Branch of the Penobscot River in Maine. Its capital stock consists of
3,029.25 shares of which Bangor Hydro owns 1,817.55 shares, the remaining
1,211.70 shares being owned by Great Northern Paper Company. East Branch
Improvement Company's office is at 33 State Street, Bangor, Maine.
Godfrey's Falls Dam Company is a Maine corporation having its
office at 33 State Street, Bangor, Maine. All of its capital stock is owned
by East Branch Improvement Company. Ownership of this corporation was
acquired to permit future water storage development in the basin of the East
Branch of the Penobscot River in the State of Maine.
The Sawtelle Brook Dam & Improvement Company is a Maine
corporation having its office at 33 State Street, Bangor, Maine. All of its
capital stock is owned by East Branch Improvement Company. This corporation
controls certain dams and water rights in the basin of the East Branch of the
Penobscot River in Maine and was acquired to permit future water storage
development in the East Branch basin.
Sebois Dam Company is a Maine corporation organized to
improve the navigation of certain of the Sebois waters which enter the
Piscataquis River. It has the right to maintain dams for the driving of logs
and lumber. It is presently an inactive corporation and has no income. All
of its capital stock is owned by Bangor Hydro. Its address is 33 State
Street, Bangor, Maine.
Pleasant River Gulf Improvement Company is a corporation
organized under Maine law. It is a water improvement company authorized by
its charter to erect and maintain dams and to improve the flow of water in
the West Branch of the Piscataquis River in Maine for the purpose of making
the West Branch floatable and facilitating the driving of logs and lumber
upon the same. It is presently an inactive corporation and has no income.
All of its capital stock is owned by Bangor Hydro. Its address is 33 State
Street, Bangor, Maine.
Northeastern Company is an inactive corporation organized under
Maine law. It was acquired to hold certain real and personal properties
useful at the time of the acquisition thereof in the conduct of Bangor
Hydro's business. These holdings have since been disposed of and the
corporation has no present assets or liabilities. All of its capital stock
is owned by Bangor Hydro. Its address is 33 State Street, Bangor, Maine.
Eastern Development Company is an inactive corporation organized
under Maine law. It was organized to acquire and hold certain properties for
ultimate transfer to Bangor Hydro. All holdings have been disposed of and
the corporation has no present assets or liabilities. Its address is 33
State Street, Bangor, Maine.
Maine Electric Power Company, Inc. ("MEPCO") is a Maine
corporation with its principal office at Edison Drive, Augusta, Maine, formed
for the purpose of constructing, owning and operating a 345 KV transmission
line between Wiscasset, Maine and the Maine-New Brunswick international
border at Orient, Maine, where its lines connect with that portion of the
interconnection constructed in the Province of New Brunswick by the New
Brunswick Power Commission. (See File No. 704798). Bangor Hydro owns
14.188% of MEPCO'S common stock; the remainder of the stock is held by other
Maine electric utility companies.
Penobscot Hydro Co., Inc. ("PHC") is a corporation organized
under Maine law in 1986 as a wholly owned subsidiary of Bangor Hydro, in
connection with the project financing of the redevelopment of a hydroelectric
generating facility on the Penobscot River in Howland and Enfield, Maine. In
1986 Bangor Hydro formed a partnership ("Bangor-Pacific Hydro Associates" or
"Bangor-Pacific") with Pacific Lighting Energy Systems ("PLES"), a California
corporation (the "West Enfield project") in order to finance the $45,000,000
redevelopment of Bangor Hydro's existing hydroelectric facility. Bangor
Hydro transferred its interest in the facility to Bangor-Pacific, and
purchases all the power from the facility pursuant to a long-term contract.
Prior to the closing of the financing, Bangor Hydro transferred its 50%
interest in the partnership to PHC. The entire transaction was reviewed and
approved by the Maine Public utilities Commission.
Neither Bangor Energy Resale, Inc., Bangor Var Co. Inc., East
Branch Improvement Company, Godfrey's Falls Dam Company, The Sawtelle Brook
Dam and Improvement Company, Northeastern Company, Eastern Development
Company, Pleasant River Gulf Improvement Company, Sebois Dam Company, nor
Penobscot Hydro Co. Inc. is a public utility. Bangor Gas Company, LLC is not
a public utility at this time, but is seeking necessary regulatory approvals
to obtain such status.
2. Bangor Hydro owns seven hydro-electric generating plants,
one steam generating plant and four internal combustion generating plants,
all located within its service area in the State of Maine. It also owns
approximately 600 miles of transmission lines and approximately 3600 miles of
distribution lines, all being located within its service area in the State of
Maine. A map of Bangor Hydro's service area indicating major transmission
lines and the location of generating plants is attached hereto. In addition,
Bangor Hydro has an approximate 7% ownership interest in Maine Yankee Atomic
Power Company in Wiscasset, Maine, a nuclear generating facility, an 8.33%
interest as a tenant in common with other utilities in Wyman Unit No. 4, a
fossil fuel generating unit located in Yarmouth, Maine.
As indicated above, MEPCO owns a 345 KV transmission line and
PHC owns a 50% interest in a hydroelectric facility.
3. Bangor Hydro submits the following information with respect
to its sales and purchases of electric energy during the calendar year 1997:
(a) 1,782,061,515 KWH of electric energy sold
(at retail and wholesale).
(b) None KWH distributed at retail
outside the State of Maine.
(c) 137,132,070 KWH of electric energy sold
at wholesale outside of Maine or
at the State line sold through
the New England Power Pool.
(d) 1,555,719,200 KWH purchased outside the State
of Maine or at the State line.
4. Bangor Hydro has no direct or indirect interest in an EWG or
a foreign utility company.
EXHIBIT A
---------
The consolidating statements of income and surplus of Bangor
Hydro and its subsidiary companies for the calendar year 1997 together with
consolidating balance sheets of Bangor Hydro and its subsidiary companies as
of the close of the calendar year 1997 are attached hereto as Exhibit A.
With the exception of MEPCO, Penobscot Hydro Co., Inc. and Bangor Var Co.,
Inc., during 1997 the subsidiaries referred to in item 1 above considered in
the aggregate would not constitute a significant subsidiary and their income
is not material in relation to the total enterprise. Consequently, financial
statements for such subsidiaries are not consolidated. In the case of MEPCO,
the Chester SVC Partnership, Bangor-Pacific and Bangor Gas, financial
statements are not consolidated because Bangor Hydro or its wholly-owned
subsidiaries do not own a majority interest. The 1997 financial statements
for East Branch Improvement Company which includes investment in its wholly
owned subsidiaries, Godfrey Falls Dam Company and Sawtelle Brook Dam &
Improvement Co. are included in Exhibit A as are the 1997 financial
statements for MEPCO, the Chester SVC Partnership and Bangor-Pacific.
EXHIBIT B
---------
A Financial Data Schedule is attached as Exhibit B.
EXHIBIT C
---------
No organizational chart is attached because Bangor Hydro has no
relationship with any EWG or foreign utility company.
Bangor Hydro has caused this statement to be executed on its
behalf by its duly authorized officer this 31st day of March, 1998.
BANGOR HYDRO-ELECTRIC COMPANY
by /s/ Frederick S. Samp
-------------------------
Frederick S. Samp
Chief Financial Officer
(Corporate Seal)
Attest: /s/ Andrew Landry
-------------------
Andrew Landry
Corporate Clerk
Name, title and address of officer to whom notices and correspondence
concerning this statement should be addressed:
Frederick S. Samp
Chief Financial Officer
Bangor Hydro-Electric Company
33 State Street
P.O. Box 932
Bangor, Maine 04402
<TABLE>
Bangor Hydro-Electric Company
Consolidating Statement of Income
For the Twelve Months Ended December 31, 1997
<CAPTION>
Bangor
Hydro PHC BVC Elimin. Reclassifications Totals
<S> <C> <C> <C> <C> <C> <C>
Total Operating Revenue 173,177,667.34 991,208.92 0.00 (360,747.19) 13,516,249.50 187,324,378.57
--------------- -------------- -------------- -------------- --------------- ---------------
Operating Expenses:
Fuel for Generation and
Purchased Power 79,176,471.59 0.00 0.00 0.00 13,615,370.39 92,791,841.98
Other Operation & Maintenance 32,471,111.43 37.70 0.00 0.00 0.00 32,471,149.13
Depreciation and Amortization 10,187,102.08 0.00 0.00 0.00 0.00 10,187,102.08
Amortization of Seabrook
Nuclear Unit 1,699,050.00 0.00 0.00 0.00 0.00 1,699,050.00
Amortization of Contract Buyouts 23,218,499.84 0.00 0.00 0.00 0.00 23,218,499.84
Taxes -
Property and Payroll 5,124,145.49 0.00 0.00 0.00 0.00 5,124,145.49
Federal and State Income (2,514,186.20) 590,341.00 8,143.00 0.00 (40,600.60) (1,956,302.80)
--------------- -------------- -------------- -------------- --------------- ---------------
Total Operating Expenses 149,362,194.23 590,378.70 8,143.00 0.00 13,574,769.79 163,535,485.72
--------------- -------------- -------------- -------------- --------------- ---------------
Operating Income 23,815,473.11 400,830.22 (8,143.00) (360,747.19) (58,520.29) 23,788,892.85
--------------- -------------- -------------- -------------- --------------- ---------------
Other Income and (Deductions):
Allowance for Equity Funds Used
During Construction 285,971.90 0.00 0.00 0.00 0.00 285,971.90
Other, Net of Applicable Income Taxes 979,269.03 0.00 19,156.72 (51,096.75) 58,520.29 1,005,849.29
--------------- -------------- -------------- -------------- --------------- ---------------
1,265,240.93 0.00 19,156.72 (51,096.75) 58,520.29 1,291,821.19
--------------- -------------- -------------- -------------- --------------- ---------------
Income Before Interest Expense 25,080,714.04 400,830.22 11,013.72 (411,843.94) 0.00 25,080,714.04
--------------- -------------- -------------- -------------- --------------- ---------------
Interest Expense:
Long-term Debt 22,638,200.90 0.00 0.00 0.00 0.00 22,638,200.90
Other 3,392,168.44 0.00 0.00 0.00 0.00 3,392,168.44
Allowance for Borrowed Funds Used
During Construction (562,966.00) 0.00 0.00 0.00 0.00 (562,966.00)
--------------- -------------- -------------- -------------- --------------- ---------------
25,467,403.34 0.00 0.00 0.00 0.00 25,467,403.34
--------------- -------------- -------------- -------------- --------------- ---------------
Net Income (Loss) (386,689.30) 400,830.22 11,013.72 (411,843.94) 0.00 (386,689.30)
--------------- -------------- -------------- -------------- ---------------
Preferred Dividend Accrual 1,375,888.39
--------------
(1,762,577.69)
==============
Weighted Avg. No. of Shares Outstanding 7,363,424.00
==============
Earnings (Loss) Per Common Share (0.24)
==============
<CAPTION>
Bangor Hydro-Electric Company
Consolidating Statement of Retained Earnings
For the Twelve Months Ended December 31, 1997
BHE PHC BVC Reclass. Elimin. Totals
<S> <C> <C> <C> <C> <C> <C>
Retained Earnings Balance at
Beginning of Year 14,534,517.98 1,342,808.55 591,161.48 0.00 (1,933,970.03) 14,534,517.98
Add: Net Income Year to Date (386,689.30) 400,830.22 11,013.72 0.00 (411,843.94) (386,689.30)
--------------- -------------- -------------- -------------- --------------- ---------------
Total 14,147,828.68 1,743,638.77 602,175.20 0.00 (2,345,813.97) 14,147,828.68
--------------- -------------- -------------- -------------- --------------- ---------------
Deduct:
Dividends -
Preferred Stock (1,314,984.67) 0.00 0.00 0.00 0.00 (1,314,984.67)
Common Stock 0.00 (400,000.00) (542,500.00) 0.00 942,500.00 0.00
Other (60,903.72) 0.00 0.00 0.00 0.00 (60,903.72)
--------------- -------------- -------------- -------------- --------------- ---------------
Total (1,375,888.39) (400,000.00) (542,500.00) 0.00 942,500.00 (1,375,888.39)
--------------- -------------- -------------- -------------- --------------- ---------------
Retained Earnings at
End of Period 12,771,940.29 1,343,638.77 59,675.20 0.00 (1,403,313.97) 12,771,940.29
=============== ============== ============== ============== =============== ===============
<CAPTION>
BANGOR HYDRO-ELECTRIC COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Bangor Penobscot Bangor
ASSETS Hydro Hydro Var Elimin. Reclasses Totals
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT IN UTILITY PLANT:
Electric Plant in Service 341,008,966.90 0.00 0.00 0.00 0.00 341,008,966.90
Less: Accumulated Deprec-
iation & Amortization 96,594,712.76 0.00 0.00 0.00 0.00 96,594,712.76
--------------- -------------- -------------- -------------- --------------- ---------------
244,414,254.14 0.00 0.00 0.00 0.00 244,414,254.14
Construction Work in Progress 7,812,532.94 0.00 0.00 0.00 4,198,713.01 12,011,245.95
--------------- -------------- -------------- -------------- --------------- ---------------
252,226,787.08 0.00 0.00 0.00 4,198,713.01 256,425,500.09
Investments in Corporate Joint Ventures:
Maine Yankee Atomic Power Co. 5,531,912.20 0.00 0.00 0.00 0.00 5,531,912.20
Maine Electric Power Co. 329,440.01 0.00 0.00 0.00 (3,434.76) 326,005.25
--------------- -------------- -------------- -------------- --------------- ---------------
258,088,139.29 0.00 0.00 0.00 4,195,278.25 262,283,417.54
--------------- -------------- -------------- -------------- --------------- ---------------
OTHER INVESTMENTS 2,633,646.42 4,043,880.33 0.00 (1,403,313.97) 0.00 5,274,212.78
--------------- -------------- -------------- -------------- --------------- ---------------
FUNDS HELD BY TRUSTEE: 21,195,772.21 0.00 0.00 0.00 0.00 21,195,772.21
--------------- -------------- -------------- -------------- --------------- ---------------
CURRENT ASSETS:
Cash & Cash Equivalents 829,611.83 1,876.97 105,306.81 0.00 0.00 936,795.61
Accounts Receivable, Net 16,616,390.90 0.00 0.00 (4,849.00) 3,434.76 16,614,976.66
Unbilled Revenue Receivable 11,605,163.00 0.00 0.00 0.00 0.00 11,605,163.00
Inventories, at Average Cost: 0.00 0.00 0.00 0.00 0.00 0.00
Materials and Supplies 2,759,090.70 0.00 0.00 0.00 0.00 2,759,090.70
Fuel Oil 34,770.95 0.00 0.00 0.00 0.00 34,770.95
Prepaid Expenses 574,603.78 0.00 0.00 0.00 631,992.48 1,206,596.26
Deferred Maine Yankee Refueling
Costs 285,894.00 0.00 0.00 0.00 0.00 285,894.00
--------------- -------------- -------------- -------------- --------------- ---------------
Total Current Assets 32,705,525.16 1,876.97 105,306.81 (4,849.00) 635,427.24 33,443,287.18
--------------- -------------- -------------- -------------- --------------- ---------------
DEFERRED CHARGES:
Investment in Seabrook
Nuclear Project 30,367,928.65 0.00 0.00 0.00 0.00 30,367,928.65
Costs to Terminate Purchased
Power Contracts 147,632,924.05 0.00 0.00 0.00 0.00 147,632,924.05
Maine Yankee Decommissioning
Costs 60,923,839.57 0.00 0.00 0.00 0.00 60,923,839.57
Investment in Basin Mills 8,958,762.19 0.00 0.00 0.00 (263,222.74) 8,695,539.45
Deferred Regulatory Assets 434,924.77 0.00 0.00 0.00 32,116,456.00 32,551,380.77
Demand-side Management Costs 1,705,310.72 0.00 0.00 0.00 0.00 1,705,310.72
Other 9,140,208.73 0.00 0.00 0.00 (3,935,490.27) 5,204,718.46
--------------- -------------- -------------- -------------- --------------- ---------------
Total Deferred Charges 259,163,898.68 0.00 0.00 0.00 27,917,742.99 287,081,641.67
--------------- -------------- -------------- -------------- --------------- ---------------
Total Assets 573,786,981.76 4,045,757.30 105,306.81 (1,408,162.97) 32,748,448.48 609,278,331.38
=============== ============== ============== ============== =============== ===============
<CAPTION>
BANGOR HYDRO-ELECTRIC COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997 Bangor Penobscot Bangor
Hydro Hydro Var Elimin. Reclasses Totals
STOCKHOLDERS' INVESTMENT & LIABILITIES
<S> <C> <C> <C> <C> <C> <C>
CAPITALIZATION:
Common Stock Investment 106,558,488.13 1,343,638.77 59,675.20 (1,403,313.97) 0.00 106,558,488.13
Preferred Stock 4,734,000.00 0.00 0.00 0.00 0.00 4,734,000.00
Preferred Stock Subject to Man-
datory Redemption Exclusive of
Current Sinking Fund Requirements 9,137,160.20 0.00 0.00 0.00 0.00 9,137,160.20
Long-term Debt, Net of Current
Portion 221,642,897.00 0.00 0.00 0.00 0.00 221,642,897.00
--------------- -------------- -------------- -------------- --------------- ---------------
Total Capitalization 342,072,545.33 1,343,638.77 59,675.20 (1,403,313.97) 0.00 342,072,545.33
--------------- -------------- -------------- -------------- --------------- ---------------
CURRENT LIABILITIES:
Notes Payable-Banks 34,000,000.00 0.00 0.00 0.00 0.00 34,000,000.00
--------------- -------------- -------------- -------------- --------------- ---------------
Other Current Liabilities-
Current Portion of Long-term Debt
and Sinking Fund Requirements on
Preferred Stock 52,172,468.30 0.00 0.00 0.00 0.00 52,172,468.30
Accounts Payable 12,538,959.19 4,849.00 0.00 (4,849.00) 631,992.48 13,170,951.67
Dividends Payable 327,443.47 0.00 0.00 0.00 0.00 327,443.47
Accrued Interest 3,666,640.86 0.00 0.00 0.00 0.00 3,666,640.86
Customers' Deposits 296,706.10 0.00 0.00 0.00 0.00 296,706.10
Deferred Revenue 1,570,994.81 0.00 0.00 0.00 0.00 1,570,994.81
Current Income Taxes Payable (34,576,943.99) (2,693,163.27) (1,524,257.06) 0.00 38,802,132.32 7,768.00
--------------- -------------- -------------- -------------- --------------- ---------------
Total Other Current Liabilities 35,996,268.74 (2,688,314.27) (1,524,257.06) (4,849.00) 39,434,124.80 71,212,973.21
--------------- -------------- -------------- -------------- --------------- ---------------
Total Current Liabilties 69,996,268.74 (2,688,314.27) (1,524,257.06) (4,849.00) 39,434,124.80 105,212,973.21
--------------- -------------- -------------- -------------- --------------- ---------------
DEFERRED CREDITS & RESERVES:
Deferred Income Taxes - Seabrook 7,489,447.00 0.00 0.00 0.00 8,276,364.00 15,765,811.00
Other Accumulated Deferred Income
Taxes 73,832,616.81 5,390,432.80 1,569,888.67 0.00 (24,934,286.32) 55,858,651.96
Maine Yankee Decommissioning Costs 60,925,586.16 0.00 0.00 0.00 0.00 60,925,586.16
Deferred Regulatory Liability 0.00 0.00 0.00 0.00 9,972,246.00 9,972,246.00
Unamort. Invest. Tax Credits 1,962,014.00 0.00 0.00 0.00 0.00 1,962,014.00
Accrued Pension 658,880.00 0.00 0.00 0.00 0.00 658,880.00
Reserve for Basin Mills 8,695,539.45 0.00 0.00 0.00 0.00 8,695,539.45
Other 8,154,084.27 0.00 0.00 0.00 0.00 8,154,084.27
--------------- -------------- -------------- -------------- --------------- ---------------
Total Deferred Credits and
Reserves 161,718,167.69 5,390,432.80 1,569,888.67 0.00 (6,685,676.32) 161,992,812.84
--------------- -------------- -------------- -------------- --------------- ---------------
Total Stockholders' Invest-
ment and Liabilities 573,786,981.76 4,045,757.30 105,306.81 (1,408,162.97) 32,748,448.48 609,278,331.38
=============== ============== ============== ============== =============== ===============
</TABLE>
EAST BRANCH IMPROVEMENT COMPANY
BALANCE SHEETS
DECEMBER 31, 1997 AND 1996
1997 1996
ASSETS
Current Assets:
Cash and cash equivalents $8,024 $8,536
Accounts receivable 25,000 37,500
Prepaid taxes 15,245 16,127
------------------------
Total Current Assets $48,269 $62,163
------------------------
Investments:
Godfrey Falls Dam Company $2,850 $2,850
Sawtelle Brook Dam and Improvement Company 825 825
------------------------
Total Investments $3,675 $3,675
------------------------
Property and Equipment:
Dams, Builds., Equip., Land & Land Rights $1,217,103 $1,217,103
Accumulated Depreciation (725,573) (699,669)
------------------------
Net Property and Equipment $491,530 $517,434
------------------------
Total Assets $543,474 $583,272
========================
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Accounts Payable-Bangor Hydro-Electric Co. $24,158 $33,291
Other Accrued Expenses 761 761
------------------------
Total Current Liabilities $24,919 $34,052
------------------------
Long-term Liabilities:
Deferred Federal and State Income Taxes $154,376 $155,348
------------------------
Capitalization:
Common Stock $302,925 $302,925
Retained Earnings 61,254 90,947
------------------------
Total Capitalization $364,179 $393,872
------------------------
$543,474 $583,272
========================
Unaudited - For Management Discussion Purposes Only
EAST BRANCH IMPROVEMENT COMPANY
STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996, AND 1995
1997 1996 1995
Revenues:
Downstream Charges $100,000 $150,000 $150,000
------------------------------------
Expenses:
Operation and Maintenance $74,622 $65,549 $74,441
Depreciation Expense 25,904 25,859 28,169
Property and Payroll Taxes 31,189 34,104 29,288
Income Taxes (972) (5,648) (2,220)
------------------------------------
Total Expenses $130,743 $119,864 $129,678
------------------------------------
Gross Profit (Loss) ($30,743) $30,136 $20,322
------------------------------------
Other Income:
Interest and Rental Income $1,050 $50 $550
------------------------------------
Net Income (Loss) ($29,693) $30,186 $20,872
Add: Retained Earnings Balance at
Beginning of Year 90,947 60,761 39,889
------------------------------------
Retained Earnings at End of Year $61,254 $90,947 $60,761
====================================
Unaudited - For Management Discussion Purposes Only
MAINE ELECTRIC POWER COMPANY
STATEMENT OF INCOME
FOR PERIOD ENDING DECEMBER 31, 1997 AND 1996
(Dollars in thousands except per share amounts)
1997 1996
OPERATING REVENUES
SALES FOR RESALE $ 21,172 $ 52,580
WHEELING 2,696 2,852
SUPPORT CHARGES AND OTHER 605 (41)
--------- ---------
TOTAL OPERATING REVENUES $ 24,473 $ 55,391
OPERATING EXPENSES
PURCHASED POWER $ 21,172 $ 52,580
OPERATION & MAINTENANCE 1,182 1,252
DEPRECIATION 222 845
TAXES
FEDERAL/STATE INCOME 589 200
LOCAL PROPERTY/OTHER 384 483
--------- ---------
TOTAL OPERATING EXPENSES $ 23,549 $ 55,360
OPERATING INCOME $ 924 $ 31
ALLOWANCE FOR EQUITY FUNDS
USED DURING CONSTRUCTION
OTHER INCOME AND DEDUCTIONS 294 250
FEDERAL AND STATE TAXES (79)
--------- ---------
INCOME BEFORE INTEREST CHARGES $ 1,139 $ 281
--------- ---------
INTEREST CHARGES
SHORT-TERM DEBT $ 20 $ 23
LONG-TERM DEBT 47 38
OTHER INTEREST CHARGES-NET
ALLOWANCE FOR BORROWED FUNDS
USED DURING CONSTRUCTION
--------- ---------
TOTAL INTEREST CHARGES $ 67 $ 61
--------- ---------
NET INCOME $ 1,072 $ 220
========= =========
WEIGHTED AVERAGE NUMBER OF
SHARES OF COMMON STOCK OUTSTANDING 8,785 8,785
========= =========
EARNINGS PER SHARE COMMON STOCK $ 122.10 $ 25.06
========= =========
MAINE ELECTRIC POWER COMPANY
BALANCE SHEET
AT DECEMBER 31, 1997 AND 1996
(Dollars in thousands)
1997 1996
ELECTRIC PROPERTY, ORIGINAL COST $ 23,510 $ 23,146
LESS:ACCUMULATED DEPRECIATION 22,618 22,545
--------- ---------
$ 892 $ 601
CONSTRUCTION WORK IN PROGRESS 25 210
--------- ---------
NET ELECTRIC PROPERTY $ 917 $ 811
--------- ---------
CURRENT ASSETS
CASH AND CASH EQUIVALENTS $ 1,859 $ 1,282
ACCOUNTS RECEIVABLE 386 7,344
ACCRUED TAXES 341 -
OTHER CURRENT ASSETS 142 149
--------- ---------
TOTAL CURRENT ASSETS $ 2,728 $ 8,775
--------- ---------
DEFERRED CHARGES $ 717 $ 1,141
--------- ---------
$ 4,362 $ 10,727
========= =========
COMMON STOCK INVESTMENT AND LIABILITIES
CAPITALIZATION
COMMON STOCK, $100 PAR VALUE, AUTHORIZED
20,000 SHARES, OUTSTANDING 8,785. $ 878 $ 878
RETAINED EARNINGS 1,486 119
--------- ---------
TOTAL COMMON STOCK EQUITY $ 2,364 $ 997
LONG TERM NOTES DUE IN ANNUAL
INSTALLMENTS THROUGH JULY 1, 1997-
LESS CURRENT SINKING FUND REQUIREMENT $ 420 $ 620
--------- ---------
TOTAL CAPITALIZATION $ 2,784 $ 1,617
--------- ---------
CURRENT LIABILITIES
CURRENT SINKING FUND REQUIREMENT $ 200 $ 200
ACCOUNTS PAYABLE 505 577
DIVIDENDS PAYABLE 24 24
ACCRUED PURCHASED POWER - 6,989
ACCRUED INTEREST. TAXES AND OTHER 13 181
--------- ---------
TOTAL CURRENT LIABILITIES $ 742 $ 7,971
--------- ---------
DEFERRED CREDITS
ACCUMULATED DEFERRED INCOME TAXES $ 216 $ 243
UNAMORTIZED INVESTMENT TAX CREDITS 21 29
OTHER DEFERRED CREDITS 599 867
--------- ---------
TOTAL DEFERRED CREDITS $ 836 $ 1,139
--------- ---------
$ 4,362 $ 10,727
========= =========
BANGOR-PACIFIC HYDRO ASSOCIATES AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1997 AND 1996
ASSETS 1997 1996
Current Assets:
Cash and Cash Equivalents $2,070,519.62 $1,727,434.15
Accounts Receivable 1,039,235.96 1,368,181.65
Prepaid Expenses 19,277.25 18,845.72
------------------------------
Total Current Assets $3,129,032.83 $3,114,461.52
------------------------------
Property, Plant and Equipment, at Cost $44,047,264.87 $44,042,793.25
Less: Accumulated Depreciation (8,163,073.04) (7,293,156.47)
------------------------------
$35,884,191.83 $36,749,636.78
------------------------------
TOTAL ASSETS $39,013,224.66 $39,864,098.30
==============================
LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities:
Current Portion of Long-term Debt $2,100,000.00 $2,000,000.00
Accrued Expenses 55,113.03 69,606.24
Accrued Interest 270,351.00 289,149.26
------------------------------
Total Current Liabilities $2,425,464.03 $2,358,755.50
Long-term Debt, Net of Current Portion 28,499,999.98 30,599,999.98
------------------------------
Total Liabilities $30,925,464.01 $32,958,755.48
Partners' Capital 8,087,760.65 6,905,342.82
------------------------------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $39,013,224.66 $39,864,098.30
==============================
UNAUDITED-FOR MANAGEMENT DISCUSSION PURPOSES ONLY
BANGOR-PACIFIC HYDRO ASSOCIATES AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME AND PARTNERS' CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 and 1995
1997 1996 1995
REVENUES:
Sale of Power $7,057,018.19 $8,252,355.39 $7,276,621.59
---------------------------------------------
EXPENSES:
Operation and Maintenance $455,641.94 $358,853.00 $282,291.53
Depreciation expense 869,916.57 866,213.00 862,279.00
Property Taxes 416,847.82 416,689.97 403,941.64
Prop., Personal, & Liab. Insur. 76,677.47 73,449.78 29,682.63
Royalty Expense 65,103.32 85,452.70 67,444.15
G & A Expenses-Pacific Energy/Ogden 1,000.00 4,851.29 11,455.60
G & A Expenses-Bangor Hydro 14,110.06 10,871.79 18,615.37
---------------------------------------------
Total Expenses $1,899,297.18 $1,816,381.53 $1,675,709.92
---------------------------------------------
Operating Income $5,157,721.01 $6,435,973.86 $5,600,911.67
---------------------------------------------
OTHER INCOME AND (EXPENSE):
Interest Expense ($3,294,184.24)($3,501,016.66)($3,657,357.35)
Investment and Other Income 118,881.06 117,942.55 107,032.28
---------------------------------------------
($3,175,303.18)($3,383,074.11)($3,550,325.07)
---------------------------------------------
NET INCOME $1,982,417.83 $3,052,899.75 $2,050,586.60
Partners' Capital Beginning of Year 6,905,342.82 6,152,443.07 4,641,856.47
Less: Partners' Distributions (800,000.00) (2,300,000.00) (540,000.00)
---------------------------------------------
Partners' Capital End of Year $8,087,760.65 $6,905,342.82 $6,152,443.07
=============================================
UNAUDITED-FOR MANAGEMENT DISCUSSION PURPOSES ONLY
Chester SVC Partnership
Balance Sheets
December 31, 1997 and 1996
1997 1996
ASSETS
Electric Property, Original Cost $31,993,248 $31,993,248
Less: Accumulated Depreciation (7,447,047) (6,371,571)
----------------------------
Net Electric Property $24,546,201 $25,621,677
----------------------------
Current Assets
Cash $131,745 $180,775
Temporary Investments 200,000 200,000
Accounts Receivable 360,531 380,756
Other Current Assets 77,946 96,209
----------------------------
Total Current Assets $770,222 $857,740
----------------------------
Other Assets
Deferred Charges $581,361 $606,822
Special Funds 1,735,654 1,811,668
----------------------------
Total Other Assets $2,317,015 $2,418,490
----------------------------
TOTAL ASSETS $27,633,438 $28,897,907
============================
LIABILITIES AND PARTNERS' CAPITAL
Capitalization
Partners' Capital $0 $0
Notes Payable, Less Current Portion 25,837,439 27,020,529
----------------------------
Total Capitalization $25,837,439 $27,020,529
----------------------------
Current Liabilities
Notes Payable $1,183,090 $1,183,090
Accounts Payable 96,989 209,692
Accrued Interest 220,795 80,661
Advanced Billing - NHH 295,125 403,935
----------------------------
Total Current Liabilities $1,795,999 $1,877,378
----------------------------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $27,633,438 $28,897,907
============================
Chester SVC Partnership
Statement of Income
For the Years Ended December 31, 1997, 1996 and 1995
1997 1996 1995
Operating Revenues $4,642,147 $4,782,131 $5,016,259
------------------------------------------
Operating Expenses:
Operation & Maintenance $694,946 $709,345 $829,974
Depreciation 1,075,476 1,075,476 1,075,038
Taxes - Property 156,565 156,640 156,716
------------------------------------------
Total Operating Expenses $1,926,987 $1,941,461 $2,061,728
------------------------------------------
Operating Income $2,715,160 $2,840,670 $2,954,531
------------------------------------------
Other Expense(Income)
Interest Charges $2,858,677 $2,987,954 $3,114,299
Interest Income (143,517) (147,284) (159,768)
------------------------------------------
Total Other Expense(Income) $2,715,160 $2,840,670 $2,954,531
------------------------------------------
Net Income $0 $0 $0
==========================================
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
This schedule contains summary financial information extracted from Bangor
Hydro's Form U3A2-A for 12/31/97 and is qualified in its entirety by
reference to such U3A2-A.
</LEGEND>
<CIK> 0000009548
<NAME> BANGOR HYDRO-ELECTRIC COMPANY
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