UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM U-3A-2
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 106,000 customers.
Penobscot Natural Gas Company, Inc. ("Penobscot Gas") is a
corporation organized under Maine law in 1998. It was formed to be a general
partner whose sole function is to own Bangor Hydro's interest in Bangor Gas
Company, LLC ("Bangor Gas"). 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 has
obtained all necessary regulatory approvals to provide such service and is
currently in the process of constructing a gas distribution system in the
Bangor area with the expectation of providing natural gas service in early
2000. Bangor Gas's address is 21 Main Street, Bangor, Maine. Penboscot Gas
has the option to acquire through capital contribution up to fifty percent
(50%) of Bangor Gas's capital stock, with the remainder held by Sempra Energy
Utility Ventures.
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 assigned the Unitil contract to Bangor Energy;
(2) Bangor Energy purchases wholesale utility service from Bangor Hydro to
allow Bangor Energy to perform the Unitil contract; (3) Bangor Energy
borrowed money from lenders, assigning said lenders a security interest in
the Unitil contract; and (4) Bangor Energy transferred 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.
CareTaker, Inc. is a corporation organized under Maine law in
1997. It was formed to provide security alarm services on a retail basis to
residential and commercial customers within Maine. CareTaker'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. Bangor Var Co.'s address is 33 State Street,
Bangor, Maine. All of its capital stock is owned by Bangor Hydro.
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., CareTaker, 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 a natural gas utility, but did not provide service during
1998 to any customers and is not expected to provide service to any customers
during 1999.
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 3,600 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 1998:
(a) KWH of electric energy sold
(at retail and wholesale):
STATE KWH REVENUES
ALL 1,911,022,949 $191,895,617
(b) KWH distributed at retail
outside the State of Maine: None
(c) KWH of electric energy sold
at wholesale outside of Maine or
at the State line sold through
the New England Power Pool:
STATE* KWH REVENUES
Massachusetts 129,516,000 $2,422,661
New Hamshire 51,795,000 $11,715,655
Kentucky 7,397,000 $262,536
TOTAL 188,708,000 $14,400,852
(d) KWH purchased outside the State
of Maine or at the State line:
STATE* KWH EXPENSES
Massachusetts 533,391,000 $14,870,644
New Hamshire 188,438,000 $4,830,646
New Brunswick 581,967,000 $12,375,293
Connecticut 184,713,000 $5,308,705
Texas 3,200,000 $79,600
TOTAL 1,491,708,000 $37,464,887
*-For purposes of this analysis, system purchases and
sales are assumed to be made in the State that is the
principal place of business of the wholesale purchaser
or seller.
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 retained earnings of
Bangor Hydro and its subsidiary companies for the calendar year 1998
together with consolidating balance sheets of Bangor Hydro and its subsidiary
companies as of the close of the calendar year 1998 are attached hereto as
Exhibit A. With the exception of MEPCO, Penobscot Hydro Co., Inc., Penobscot
Gas and Bangor Var Co., Inc., during 1998 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 1998 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 1998 financial statements for MEPCO, the Chester SVC Partnership,
Bangor Gas 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 1st day of March, 1999.
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, 1998
<CAPTION>
Bangor Penobscot
Bangor Penobscot Bangor Energy Natural
Hydro Hydro Var Resale Gas Elimins. Reclasses Totals
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total Operating Revenue 182,285,520 1,234,600 0 0 0 (2,882,190) 14,506,077 195,144,007
-------------------------------------------------------------------------------------------
Operating Expenses:
Fuel for Generation & Purchased Power 72,421,610 0 0 (5,024,287) 0 0 14,629,537 82,026,860
Other Operation & Maintenance 34,447,518 39 0 767 0 0 0 34,448,324
Depreciation and Amortization 9,749,229 0 0 0 0 0 0 9,749,229
Amortization of Seabrook Nuclear Unit 1,699,050 0 0 0 0 0 0 1,699,050
Amortization of Contract Buyouts 20,442,441 0 0 0 0 0 0 20,442,441
Taxes - 0
Property and Payroll 5,549,049 0 0 0 0 0 0 5,549,049
Federal and State Income 4,126,171 505,318 0 1,512,329 0 0 (50,532) 6,093,286
-------------------------------------------------------------------------------------------
Total Operating Expenses 148,435,068 505,357 0 (3,511,191) 0 0 14,579,005 160,008,239
-------------------------------------------------------------------------------------------
Operating Income 33,850,452 729,243 0 3,511,191 0 (2,882,190) (72,928) 35,135,768
-------------------------------------------------------------------------------------------
Other Income and (Deductions):
Allowance for Equity Funds Used
During Construction 430,028 0 0 0 0 0 0 430,028
Other, Net of Applicable Income Taxes 830,799 0 3,046 31,921 (58,271) (17,700) 72,928 862,723
-------------------------------------------------------------------------------------------
1,260,827 0 3,046 31,921 (58,271) (17,700) 72,928 1,292,751
-------------------------------------------------------------------------------------------
Income Before Interest Expense 35,111,279 729,243 3,046 3,543,112 (58,271) (2,899,890) 0 36,428,519
-------------------------------------------------------------------------------------------
Interest Expense:
Long-term Debt 21,665,252 0 0 1,240,769 0 0 0 22,906,021
Other 2,674,392 0 0 76,471 0 0 0 2,750,863
Allowance for Borrowed Funds Used
During Construction (693,682) 0 0 0 0 0 0 (693,682)
-------------------------------------------------------------------------------------------
23,645,962 0 0 1,317,240 0 0 0 24,963,202
-------------------------------------------------------------------------------------------
Net Income 11,465,317 729,243 3,046 2,225,872 (58,271) (2,899,890) 0 11,465,317
-------------------------------------------------------------------------------------------
Preferred Dividend Accrual 1,244,488
----------
10,220,829
==========
Weighted Avg. No. of Shares Outstanding 7,363,424
==========
Earnings Per Common Share 1.39
==========
</TABLE>
<TABLE>
BANGOR HYDRO-ELECTRIC COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
<CAPTION>
Bangor Penobscot
Bangor Penobscot Bangor Energy Natural
ASSETS Hydro Hydro Var Resale Gas Elimins. Reclasses Totals
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT IN UTILITY PLANT:
Electric Plant in Service 352,975,549 0 0 0 0 0 0 352,975,549
Less: Accumulated Depreciation
& Amortization 101,633,446 0 0 0 0 0 0 101,633,446
-------------------------------------------------------------------------------------------
251,342,103 0 0 0 0 0 0 251,342,103
Construction Work in Progress 7,664,607 0 0 0 0 0 6,265,333 13,929,940
-------------------------------------------------------------------------------------------
259,006,710 0 0 0 0 0 6,265,333 265,272,043
Investments in Corporate Joint Ventures:
Maine Yankee Atomic Power Co. 5,590,770 0 0 0 0 0 (152,250) 5,438,520
Maine Electric Power Co. 442,188 0 0 0 0 0 (3,435) 438,753
-------------------------------------------------------------------------------------------
265,039,668 0 0 0 0 0 6,109,648 271,149,316
-------------------------------------------------------------------------------------------
OTHER INVESTMENTS 5,005,146 4,753,480 0 0 76,813 (3,953,453) 0 5,881,986
-------------------------------------------------------------------------------------------
FUNDS HELD BY TRUSTEE: 28,360,940 0 0 1,506,665 0 0 0 29,867,605
-------------------------------------------------------------------------------------------
CURRENT ASSETS:
Cash & Cash Equivalents 1,267,502 1,838 111,003 1,565,603 0 0 0 2,945,946
Accounts Receivable, Net 18,010,789 0 0 23,743,661 0 (24,352,050) 155,684 17,558,084
Unbilled Revenue Receivable 12,086,003 0 0 0 0 0 0 12,086,003
Inventories, at Average Cost: 0 0 0 0 0 0 0 0
Materials and Supplies 2,909,219 0 0 0 0 0 0 2,909,219
Fuel Oil 16,233 0 0 0 0 0 0 16,233
Prepaid Expenses 527,480 0 0 0 0 0 601,779 1,129,259
Deferred Maine Yankee Refueling Cost 0 0 0 0 0 0 0 0
-------------------------------------------------------------------------------------------
Total Current Assets 34,817,226 1,838 111,003 25,309,264 0 (24,352,050) 757,463 36,644,744
-------------------------------------------------------------------------------------------
DEFERRED CHARGES:
Investment in Seabrook Nuclear
Project 28,668,879 0 0 0 0 0 0 28,668,879
Costs to Terminate Purchased
Power Contracts 136,979,490 0 0 0 0 0 0 136,979,490
Maine Yankee Decommissioning Costs 50,054,620 0 0 0 0 0 0 50,054,620
Deferred Regulatory Assets 364,396 0 0 0 0 0 32,631,236 32,995,632
Demand-side Management Costs 778,742 0 0 0 0 0 0 778,742
Other 18,546,290 0 0 385,855 0 0 (6,265,332) 12,666,813
-------------------------------------------------------------------------------------------
Total Deferred Charges 235,392,417 0 0 385,855 0 0 26,365,904 262,144,176
-------------------------------------------------------------------------------------------
Total Assets 568,615,397 4,755,318 111,003 27,201,784 76,813 (28,305,503) 33,233,015 605,687,827
===========================================================================================
</TABLE>
<TABLE>
BANGOR HYDRO-ELECTRIC COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
<CAPTION>
Bangor Penobscot
Bangor Penobscot Bangor Energy Natural
Hydro Hydro Var Resale Gas Elimins. Reclasses Totals
STOCKHOLDERS' INVESTMENT & LIABILITIES
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CAPITALIZATION:
Common Stock Investment 118,864,092 1,547,882 62,721 2,225,871 116,979 (3,953,453) 0 118,864,092
Preferred Stock 4,734,000 0 0 0 0 0 0 4,734,000
Preferred Stock Subject to Mandatory
Redemption Exclusive of Current
Sinking Fund Requirements 7,604,150 0 0 0 0 0 0 7,604,150
Long-term Debt,Net of Current Portion 245,867,692 0 0 17,160,000 0 0 0 263,027,692
-------------------------------------------------------------------------------------------
Total Capitalization 377,069,934 1,547,882 62,721 19,385,871 116,979 (3,953,453) 0 394,229,934
-------------------------------------------------------------------------------------------
CURRENT LIABILITIES:
Notes Payable-Banks 12,000,000 0 0 0 0 0 0 12,000,000
-------------------------------------------------------------------------------------------
Other Current Liabilities-
Current Portion of Long-term Debt and
Sinking Fund Requirements on
Preferred Stock 22,369,119 0 0 4,740,000 0 0 0 27,109,119
Accounts Payable 36,164,886 4,849 0 1,476,209 0 (24,352,050) 601,779 13,895,673
Dividends Payable 294,593 0 0 0 0 0 0 294,593
Accrued Interest 3,408,997 0 0 65,372 0 0 0 3,474,369
Customers' Deposits 328,923 0 0 0 0 0 0 328,923
Deferred Revenue 0 0 0 0 0 0 0 0
Current Income Taxes Payable (21,664,534)(1,980,777)(1,671,037) 1,651,857 (43,243) 0 23,793,419 85,685
-------------------------------------------------------------------------------------------
Total Other Current Liabilities 40,901,984 (1,975,928)(1,671,037) 7,933,438 (43,243)(24,352,050) 24,395,198 45,188,362
-------------------------------------------------------------------------------------------
Total Current Liabilties 52,901,984 (1,975,928)(1,671,037) 7,933,438 (43,243)(24,352,050) 24,395,198 57,188,362
-------------------------------------------------------------------------------------------
DEFERRED CREDITS & RESERVES:
Deferred Income Taxes - Seabrook 7,075,357 0 0 0 0 0 7,804,884 14,880,241
Other Accumulated Deferred Income
Taxes 65,571,496 5,183,364 1,719,319 (117,525) 3,077 0 (8,585,226) 63,774,505
Maine Yankee Decommissioning Costs 50,054,620 0 0 0 0 0 0 50,054,620
Deferred Regulatory Liability 0 0 0 0 0 0 9,618,159 9,618,159
Unamort. Invest. Tax Credits 1,720,708 0 0 0 0 0 0 1,720,708
Accrued Pension 794,126 0 0 0 0 0 0 794,126
Other 13,427,172 0 0 0 0 0 0 13,427,172
-------------------------------------------------------------------------------------------
Total Deferred Credits & Reserves 138,643,479 5,183,364 1,719,319 (117,525) 3,077 0 8,837,817 154,269,531
-------------------------------------------------------------------------------------------
Total Stockholders' Investment
& Liabilities 568,615,397 4,755,318 111,003 27,201,784 76,813 (28,305,503) 33,233,015 605,687,827
===========================================================================================
</TABLE>
<TABLE>
Bangor Hydro-Electric Company
Consolidating Statement of Retained Earnings
For the Twelve Months Ended December 31, 1998
<CAPTION>
Bangor Penobscot
Bangor Penobscot Bangor Energy Natural
Hydro Hydro Var Resale Gas Elimins. Totals
<S> <C> <C> <C> <C> <C> <C> <C>
Retained Earnings Balance at
Beginning of Year 12,771,940 1,343,639 59,675 0 0 (1,403,314) 12,771,940
Add: Net Income Year to Date 11,465,317 729,243 3,046 2,225,871 (58,270) (2,899,890) 11,465,317
-------------------------------------------------------------------------------------------
Total 24,237,257 2,072,882 62,721 2,225,871 (58,270) (4,303,204) 24,237,257
-------------------------------------------------------------------------------------------
Deduct:
Dividends -
Preferred Stock (1,183,584) 0 0 0 0 0 (1,183,584)
Common Stock 0 (525,000) 0 0 0 525,000 0
Other (60,904) 0 0 0 0 0 (60,904)
-------------------------------------------------------------------------------------------
Total (1,244,488) (525,000) 0 0 0 525,000 (1,244,488)
-------------------------------------------------------------------------------------------
Retained Earnings at
End of Period 22,992,769 1,547,882 62,721 2,225,871 (58,270) (3,778,204) 22,992,769
===========================================================================================
</TABLE>
EAST BRANCH IMPROVEMENT COMPANY
BALANCE SHEETS
DECEMBER 31, 1998 AND 1997
1998 1997
Current Assets:
Cash and cash equivalents $12,225 $8,024
Accounts receivable 25,000 25,000
Prepaid taxes 14,573 15,245
------------------------
Total Current Assets $51,798 $48,269
------------------------
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 $1,211,990 $1,217,103
Accumulated Depreciation (746,354) (725,573)
------------------------
Net Property and Equipment $465,636 $491,530
------------------------
Total Assets $521,109 $543,474
========================
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Accounts Payable-Bangor Hydro-Electric Co. $14,916 $24,158
Other Accrued Expenses 908 761
------------------------
Total Current Liabilities $15,824 $24,919
------------------------
Long-term Liabilities:
Deferred Federal and State Income Taxes $150,173 $154,376
------------------------
Capitalization:
Common Stock $302,925 $302,925
Retained Earnings 52,187 61,254
------------------------
Total Capitalization $355,112 $364,179
------------------------
$521,109 $543,474
========================
Unaudited - For Management Discussion Purposes Only
EAST BRANCH IMPROVEMENT COMPANY
STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
FOR THE YEARS ENDED DECEMBER 31, 1998, 1997, AND 1996
1998 1997 1996
Revenues:
Downstream Charges $100,000 $100,000 $150,000
------------------------------------
Expenses:
Operation and Maintenance $58,665 $74,622 $65,549
Depreciation Expense 25,894 25,904 25,859
Property and Payroll Taxes 29,260 31,189 34,104
Income Taxes (4,202) (972) (5,648)
------------------------------------
Total Expenses $109,617 $130,743 $119,864
------------------------------------
Gross Profit (Loss) ($9,617) ($30,743) $30,136
------------------------------------
Other Income:
Interest and Rental Income $550 $1,050 $50
------------------------------------
Net Income (Loss) ($9,067) ($29,693) $30,186
Add: Retained Earnings Balance at
Beginning of Year 61,254 90,947 60,761
------------------------------------
Retained Earnings at End of Year $52,187 $61,254 $90,947
====================================
MAINE ELECTRIC POWER COMPANY
STATEMENT OF INCOME
FOR PERIOD ENDING DECEMBER 31, 1998 AND 1997
(Dollars in thousands except per share amounts)
1998 1997
OPERATING REVENUES
SALES FOR RESALE $ 3 $ 21,172
WHEELING 2,678 2,696
SUPPORT CHARGES AND OTHER 833 605
--------- ---------
TOTAL OPERATING REVENUES $ 3,514 $ 24,473
OPERATING EXPENSES
PURCHASED POWER $ 3 $ 21,172
OPERATION & MAINTENANCE 1,440 1,182
DEPRECIATION 364 222
TAXES
FEDERAL/STATE INCOME 550 589
LOCAL PROPERTY/OTHER 457 384
--------- ---------
TOTAL OPERATING EXPENSES $ 2,814 $ 23,549
OPERATING INCOME $ 700 $ 924
ALLOWANCE FOR EQUITY FUNDS
USED DURING CONSTRUCTION - -
OTHER INCOME AND DEDUCTIONS 404 294
FEDERAL AND STATE TAXES (79) (79)
--------- ---------
INCOME BEFORE INTEREST CHARGES $ 1,025 $ 1,139
--------- ---------
INTEREST CHARGES
SHORT-TERM DEBT $ 43 $ 20
LONG-TERM DEBT 34 47
OTHER INTEREST CHARGES-NET - -
ALLOWANCE FOR BORROWED FUNDS
USED DURING CONSTRUCTION - -
--------- ---------
TOTAL INTEREST CHARGES $ 77 $ 67
--------- ---------
NET INCOME $ 948 $ 1,072
========= =========
WEIGHTED AVERAGE NUMBER OF
SHARES OF COMMON STOCK OUTSTANDING 8,785 8,785
========= =========
EARNINGS PER SHARE COMMON STOCK $ 107.93 $ 122.10
========= =========
MAINE ELECTRIC POWER COMPANY
BALANCE SHEET
AT DECEMBER 31, 1998 AND 1997
(Dollars in thousands)
1998 1997
ELECTRIC PROPERTY, ORIGINAL COST $ 23,633 $ 23,510
LESS:ACCUMULATED DEPRECIATION 22,899 22,618
--------- ---------
$ 734 $ 892
CONSTRUCTION WORK IN PROGRESS 0 25
--------- ---------
NET ELECTRIC PROPERTY $ 734 $ 917
--------- ---------
CURRENT ASSETS
CASH AND CASH EQUIVALENTS $ 3,494 $ 1,859
ACCOUNTS RECEIVABLE 577 386
ACCRUED TAXES 76 341
OTHER CURRENT ASSETS 86 142
--------- ---------
TOTAL CURRENT ASSETS $ 4,233 $ 2,728
--------- ---------
DEFERRED CHARGES $ 548 $ 717
--------- ---------
$ 5,515 $ 4,362
========= =========
COMMON STOCK INVESTMENT AND LIABILITIES
CAPITALIZATION
COMMON STOCK, $100 PAR VALUE, AUTHORIZED
20,000 SHARES, OUTSTANDING 8,785. $ 878 $ 878
RETAINED EARNINGS 2,338 1,486
--------- ---------
TOTAL COMMON STOCK EQUITY $ 3,216 $ 2,364
LONG TERM NOTES DUE IN ANNUAL
INSTALLMENTS THROUGH JULY 1, 1997-
LESS CURRENT SINKING FUND REQUIREMENT $ 220 $ 420
--------- ---------
TOTAL CAPITALIZATION $ 3,436 $ 2,784
--------- ---------
CURRENT LIABILITIES
CURRENT SINKING FUND REQUIREMENT $ 200 $ 200
ACCOUNTS PAYABLE 721 505
DIVIDENDS PAYABLE 24 24
ACCRUED PURCHASED POWER - -
ACCRUED INTEREST. TAXES AND OTHER 4 13
--------- ---------
TOTAL CURRENT LIABILITIES $ 949 $ 742
--------- ---------
DEFERRED CREDITS
ACCUMULATED DEFERRED INCOME TAXES $ 150 $ 216
UNAMORTIZED INVESTMENT TAX CREDITS 13 21
OTHER DEFERRED CREDITS 967 599
--------- ---------
TOTAL DEFERRED CREDITS $ 1,130 $ 836
--------- ---------
$ 5,515 $ 4,362
========= =========
<TABLE>
BANGOR-PACIFIC HYDRO ASSOCIATES AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1998 AND 1997
<CAPTION>
ASSETS 1998 1997
<S> <C> <C>
Current Assets:
Cash and Cash Equivalents $2,229,301.20 $2,070,519.62
Accounts Receivable 1,057,219.99 1,039,235.96
Prepaid Expenses 21,069.25 19,277.25
--------------------------------
Total Current Assets $3,307,590.44 $3,129,032.83
--------------------------------
Property, Plant and Equipment, at Cost $44,047,264.87 $44,047,264.87
Less: Accumulated Depreciation (9,030,823.48) (8,163,073.04)
--------------------------------
$35,016,441.39 $35,884,191.83
--------------------------------
TOTAL ASSETS $38,324,031.83 $39,013,224.66
================================
LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities:
Current Portion of Long-term Debt $2,200,000.00 $2,100,000.00
Accrued Expenses 65,273.82 55,113.03
Accrued Interest 251,797.50 270,351.00
--------------------------------
Total Current Liabilities $2,517,071.32 $2,425,464.03
Long-term Debt, Net of Current Portion 26,299,999.98 28,499,999.98
--------------------------------
Total Liabilities $28,817,071.30 $30,925,464.01
Partners' Capital 9,506,960.53 8,087,760.65
--------------------------------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $38,324,031.83 $39,013,224.66
================================
UNAUDITED-FOR MANAGEMENT DISCUSSION PURPOSES ONLY
</TABLE>
<TABLE>
BANGOR-PACIFIC HYDRO ASSOCIATES AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME AND PARTNERS' CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 1998, 1997 and 1996
<CAPTION>
1998 1997 1996
<S> <C> <C> <C>
REVENUES:
Sale of Power $7,308,956.92 $7,057,018.19 $8,252,355.39
------------------------------------------------
EXPENSES:
Operation and Maintenance $443,098.47 $455,641.94 $358,853.00
Depreciation expense 867,750.44 869,916.57 866,213.00
Property Taxes 412,511.94 416,847.82 416,689.97
Prop., Personal, & Liab. Insur. 77,109.00 76,677.47 73,449.78
Royalty Expense 70,603.67 65,103.32 85,452.70
G & A Expenses-Pacific Energy/Ogden 2,422.99 1,000.00 4,851.29
G & A Expenses-Bangor Hydro 8,233.90 14,110.06 10,871.79
------------------------------------------------
Total Expenses $1,881,730.41 $1,899,297.18 $1,816,381.53
------------------------------------------------
Operating Income $5,427,226.51 $5,157,721.01 $6,435,973.86
------------------------------------------------
OTHER INCOME AND (EXPENSE):
Interest Expense ($3,082,467.37) ($3,294,184.24) ($3,501,016.66)
Investment and Other Income 124,440.74 118,881.06 117,942.55
------------------------------------------------
($2,958,026.63) ($3,175,303.18) ($3,383,074.11)
------------------------------------------------
NET INCOME $2,469,199.88 $1,982,417.83 $3,052,899.75
Partners' Capital Beginning of Year 8,087,760.65 6,905,342.82 6,152,443.07
Less: Partners' Distributions (1,050,000.00) (800,000.00) (2,300,000.00)
------------------------------------------------
Partners' Capital End of Year $9,506,960.53 $8,087,760.65 $6,905,342.82
================================================
UNAUDITED-FOR MANAGEMENT DISCUSSION PURPOSES ONLY
</TABLE>
Chester SVC Partnership
Statement of Income
For the Years Ended December 31, 1998, 1997 and 1996
1998 1997 1996
Operating Revenues $4,534,759 $4,642,147 $4,782,131
------------------------------------------
Operating Expenses:
Operation & Maintenance $687,419 $694,946 $709,345
Depreciation 1,075,476 1,075,476 1,075,476
Taxes - Property 168,405 156,565 156,640
------------------------------------------
Total Operating Expenses $1,931,300 $1,926,987 $1,941,461
------------------------------------------
Operating Income $2,603,459 $2,715,160 $2,840,670
------------------------------------------
Other Expense(Income)
Interest Charges $2,737,345 $2,858,677 $2,987,954
Interest Income (133,886) (143,517) (147,284)
------------------------------------------
Total Other Expense(Income) $2,603,459 $2,715,160 $2,840,670
------------------------------------------
Net Income $0 $0 $0
==========================================
Chester SVC Partnership
Balance Sheets
December 31, 1998 and 1997
1998 1997
ASSETS
Electric Property, Original Cost $31,993,248 $31,993,248
Less: Accumulated Depreciation (8,522,523) (7,447,047)
----------------------------
Net Electric Property $23,470,725 $24,546,201
----------------------------
Current Assets
Cash $172,193 $131,745
Temporary Investments 200,000 200,000
Accounts Receivable 355,719 360,531
Other Current Assets 64,064 77,946
----------------------------
Total Current Assets $791,976 $770,222
----------------------------
Other Assets
Deferred Charges $555,900 $581,361
Special Funds 1,659,640 1,735,654
----------------------------
Total Other Assets $2,215,540 $2,317,015
----------------------------
TOTAL ASSETS $26,478,241 $27,633,438
============================
LIABILITIES AND PARTNERS' CAPITAL
Capitalization
Partners' Capital $0 $0
Notes Payable, Less Current Portion 24,654,349 25,837,439
----------------------------
Total Capitalization $24,654,349 $25,837,439
----------------------------
Current Liabilities
Notes Payable $1,183,090 $1,183,090
Accounts Payable 303,457 240,507
Accrued Interest 73,893 77,277
Advanced Billing - NHH 263,452 295,125
----------------------------
Total Current Liabilities $1,823,892 $1,795,999
----------------------------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $26,478,241 $27,633,438
============================
Bangor Gas Company, LLC
Statement of Operations
For the Year Ended December 31, 1998
Revenues from Sale of Gas $ 0
--------------
Operating Expenses:
Operation expenses $ 184,218
Depreciation 4,947
General taxes 7,383
--------------
Total Operating Expenses $ 196,548
--------------
Net Operating Expense $ (196,548)
Nonoperating Expense (325)
--------------
Net Loss $ (196,873)
==============
Unaudited - For Management Discussion Purposes Only
Bangor Gas Company, LLC
Balance Sheet
December 31, 1998
ASSETS
Investment in Utility Plant:
Construction work in progress $ 2,864,806
------------
$ 2,864,806
Electric plant in service 34,626
Less: Accumulated depreciation (4,947)
--------------
29,679
-------------
Net investment in utility plant $ 2,894,485
Current Assets:
Cash and cash equivalents $ 31,194
--------------
Total current assets 31,194
-------------
Total Assets $ 2,925,679
=============
PARTNERS' CAPITAL AND LIABILITIES
Partners' Capital:
Partners' contributions $ 370,250
Accumulated deficit (196,873)
--------------
Total Partners' Capital 173,377
-------------
Current Liabilities:
Accrued expenses $ 25,696
Payable to Partner - Sempra Energy 2,726,606
--------------
Total Current Liabilities 2,752,302
-------------
Total Partners' Capital and Liabilities $ 2,925,679
=============
Unauditied - For Management Discussion Purposes Only
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
This schedule contains summary financial information extracted from Bangor
Hydro-Electric Company's U3A2 Filing submitted March 1, 1999 and is qualified
in its entirety by reference to such U3A2.
</LEGEND>
<CIK> 0000009548
<NAME> BANGOR HYDRO-ELECTRIC COMPANY
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 251,342
<OTHER-PROPERTY-AND-INVEST> 55,557
<TOTAL-CURRENT-ASSETS> 36,645
<TOTAL-DEFERRED-CHARGES> 262,144
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 605,688
<COMMON> 36,817
<CAPITAL-SURPLUS-PAID-IN> 59,054
<RETAINED-EARNINGS> 22,993
<TOTAL-COMMON-STOCKHOLDERS-EQ> 118,864
7,604
4,734
<LONG-TERM-DEBT-NET> 263,028
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 12,000
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 25,515
1,594
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 172,349
<TOT-CAPITALIZATION-AND-LIAB> 605,688
<GROSS-OPERATING-REVENUE> 195,144
<INCOME-TAX-EXPENSE> 6,093
<OTHER-OPERATING-EXPENSES> 153,915
<TOTAL-OPERATING-EXPENSES> 160,008
<OPERATING-INCOME-LOSS> 35,136
<OTHER-INCOME-NET> 1,292
<INCOME-BEFORE-INTEREST-EXPEN> 36,428
<TOTAL-INTEREST-EXPENSE> 24,963
<NET-INCOME> 11,465
1,244
<EARNINGS-AVAILABLE-FOR-COMM> 10,221
<COMMON-STOCK-DIVIDENDS> 0
<TOTAL-INTEREST-ON-BONDS> 22,906
<CASH-FLOW-OPERATIONS> 30,932
<EPS-PRIMARY> 1.39
<EPS-DILUTED> 1.33
</TABLE>
