EX-99 5 exhibit_f-2.txt EXHIBIT F-2 Exhibit F-2 OHIO EDISON CONSOLIDATING BALANCE SHEETS As of December 31, 2002 (In thousands $)
OHIO PENN OES OES OES ASSETS EDISON POWER CAPITAL FINANCE NUCLEAR ----------- --------- -------- ------- --------- UTILITY PLANT: In service $ 4,456,305 $ 680,729 $ - $ - $ 156,000 Less--Accumulated provision for depreciation (2,270,137) (316,424) - - (26,171) ----------- --------- -------- --------- --------- 2,186,168 364,305 - - 129,829 Construction work in progress 92,714 53,508 - - - ----------- --------- -------- --------- --------- 2,278,882 417,813 - - 129,829 ----------- --------- -------- --------- --------- INVESTMENTS: Capital trust investments 390,395 - - - - Letter of credit collateralization - - - 277,763 - Nuclear plant decommissioning trusts 173,789 119,401 - - - Notes receivable from associated companies 319,231 38,921 - - - Other 779,236 2,569 7,799 - - ----------- --------- -------- --------- --------- 1,662,651 160,891 7,799 277,763 - ----------- --------- -------- --------- --------- CURRENT ASSETS: Cash and cash equivalents 13,821 1,222 13 1,445 783 Receivables Customers 82,397 44,341 169,810 - - Associated companies 714,171 42,652 56,369 - 14,210 Other 12,331 5,262 416 9,866 - Notes receivable from associated companies 437,299 35,317 - - - Material and supplies Owned 29,770 28,252 - - - Under consignment 17,696 2,057 - - - Prepayments and other 5,865 5,346 4 - 266 ----------- --------- -------- --------- --------- 1,313,350 164,449 226,612 11,311 15,259 ----------- --------- -------- --------- --------- DEFERRED CHARGES: Regulatory assets 1,732,199 156,903 - - - Property taxes 59,035 - - - - Accumulated deferred income taxes - - 1,698 6 - Unamortized sale and leaseback costs 72,294 - - - - Other 41,630 7,692 4 - - ----------- --------- -------- --------- --------- 1,905,158 164,595 1,702 6 - ----------- --------- -------- --------- --------- TOTAL ASSETS $ 7,160,041 $907,748 $236,113 $ 289,080 $ 145,088 =========== ========= ======== ========= ========= OES OHIO EDISON ASSETS VENTURES APOLLO ELIMINATIONS CONSOLIDATED -------- -------- ------------ ------------ UTILITY PLANT: In service $ - $ - $ (303,978) $ 4,989,056 Less--Accumulated provision for depreciation - - 60,725 (2,552,007) -------- -------- ---------- ----------- - - (243,253) 2,437,049 Construction work in progress - - - 146,222 -------- -------- ---------- ----------- - - (243,253) 2,583,271 -------- -------- ---------- ----------- INVESTMENTS: Capital trust investments 12,170 - - 402,565 Letter of credit collateralization - - - 277,763 Nuclear plant decommissioning trusts - - - 293,190 Notes receivable from associated companies - - 145,675 503,827 Other - 18,693 (734,077) 74,220 -------- -------- ---------- ----------- 12,170 18,693 (588,402) 1,551,565 -------- -------- ---------- ----------- CURRENT ASSETS: Cash and cash equivalents 1,031 2,197 - 20,512 Receivables Customers - - - 296,548 Associated companies - 1,052 (236,236) 592,218 Other - 5,682 - 33,557 Notes receivable from associated companies - - (34,947) 437,669 Material and supplies Owned - - - 58,022 Under consignment - - - 19,753 Prepayments and other - 323 - 11,804 -------- -------- ---------- ----------- 1,031 9,254 (271,183) 1,470,083 -------- -------- ---------- ----------- DEFERRED CHARGES: Regulatory assets - - 123,652 2,012,754 Property taxes - - - 59,035 Accumulated deferred income taxes 148 - (1,852) - Unamortized sale and leaseback costs - - - 72,294 Other - 2,413 - 51,739 -------- -------- ---------- ----------- 148 2,413 121,800 2,195,822 -------- -------- ---------- ----------- TOTAL ASSETS $ 13,349 $ 30,360 $ (981,038) $ 7,800,741 ======== ======== ========== =========== Note: Ohio Edison (OE) subsidiaries, OES Fuel was merged into OE and OES Financing Trust was dissolved during 2002. The notes to the consolidated financial statements of Ohio Edison Company, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 OHIO EDISON CONSOLIDATING BALANCE SHEETS As of December 31, 2002 (In thousands $)
OHIO PENN OES OES OES LIABILITIES AND CAPITALIZATION EDISON POWER CAPITAL FINANCE NUCLEAR ----------- --------- -------- ------- ------- CAPITALIZATION: Common stockholders' equity $ 2,840,361 $ 229,374 $ 62,721 $ 15,737 $ 6,516 Preferred stock not subject to mandatory redemption 60,965 - - - - Preferred stock of consolidated subsidiary-- Not subject to mandatory redemption - 39,105 - - - Subject to mandatory redemption - 13,500 - - - Long-term debt 1,148,248 185,499 - 263,763 119,600 ----------- --------- -------- -------- ------- 4,049,574 467,478 62,721 279,500 126,116 ----------- --------- -------- -------- ------- CURRENT LIABILITIES: Currently payable long-term debt and preferred stock 501,911 66,556 - - - Short-term borrowings 15,501 - 159,724 - - Notes payable to associated companies 260,292 - - - - Accounts payable Associated companies 173,790 52,653 673 9,426 - Other 12,148 5,730 117 - - Accrued taxes 452,514 12,507 2,071 154 300 Accrued interest 20,819 5,558 1,832 - - Other 54,428 10,479 8,975 - - ----------- --------- -------- -------- ------- 1,491,403 153,483 173,392 9,580 300 ----------- --------- -------- -------- ------- DEFERRED CREDITS: Accumulated deferred income taxes 882,475 117,385 - - 18,672 Accumulated deferred investment tax credits 82,655 3,810 - - - Nuclear plant decommissioning costs 172,490 119,863 - - - Retirement benefits 209,333 38,198 - - - Other 272,111 7,531 - - - ----------- --------- -------- -------- ------- 1,619,064 286,787 - - 18,672 ----------- --------- -------- -------- ------- TOTAL LIABILITIES AND CAPITALIZATION $ 7,160,041 $ 907,748 $236,113 $ 289,080 $145,088 =========== ========= ======== ======== ======= OES OHIO EDISON LIABILITIES AND CAPITALIZATION VENTURES APOLLO ELIMINATIONS CONSOLIDATED -------- -------- ------------ ------------ CAPITALIZATION: Common stockholders' equity $ 13,119 $ 23,248 $ (350,715) $ 2,840,361 Preferred stock not subject to mandatory redemption - - - 60,965 Preferred stock of consolidated subsidiary-- Not subject to mandatory redemption - - - 39,105 Subject to mandatory redemption - - - 13,500 Long-term debt - - (497,763) 1,219,347 -------- -------- ---------- ----------- 13,119 23,248 (848,478) 4,173,278 -------- -------- ---------- ----------- CURRENT LIABILITIES: Currently payable long-term debt and preferred stock - - (5,200) 563,267 Short-term borrowings - 7,092 - 182,317 Notes payable to associated companies - - (34,947) 225,345 Accounts payable - Other - - (90,561) 145,981 Associated companies - 20 - 18,015 230 - - 467,776 Accrued taxes - - - 28,209 - - - 73,882 Accrued interest -------- -------- ---------- ----------- Other 230 7,112 (130,708) 1,704,792 -------- -------- ---------- ----------- DEFERRED CREDITS: - - (1,852) 1,016,680 Accumulated deferred income taxes - - - 86,465 Accumulated deferred investment tax credits - - - 292,353 Nuclear plant decommissioning costs - - - 247,531 Power purchase contract loss liability - - - 279,642 -------- -------- ---------- ----------- Other postretirement benefits - - (1,852) 1,922,671 -------- -------- ---------- ----------- Other $ 13,349 $ 30,360 $ (981,038) $ 7,800,741 ======== ======== ========== =========== Note: Ohio Edison (OE) subsidiaries, OES Fuel was merged into OE and OES Financing Trust was dissolved during 2002. The notes to the consolidated financial statements of Ohio Edison Company, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 OHIO EDISON CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2002 (In thousands $)
OE OHIO PENN OES OES FINANCING EDISON POWER CAPITAL FINANCE TRUST ----------- --------- -------- ------- --------- OPERATING REVENUES $ 2,446,842 $ 506,407 $ 27,745 $ - $ - EXPENSES: Fuel and purchased power 809,540 181,968 - - - Other operating expenses 586,847 140,547 11,752 - - Provision for depreciation and amortization 313,803 56,763 - - - General taxes 152,858 24,474 (311) - - Income taxes 198,008 41,733 4,675 460 - ----------- --------- -------- ------- ------ Total expenses 2,061,056 445,485 16,116 460 - ----------- --------- -------- ------- ------ OPERATING INCOME 385,786 60,922 11,629 (460) - EQUITY IN SUBSIDIARY EARNINGS 55,472 - - - - Other Income 60,835 3,271 787 21,558 6,959 Other income taxes (19,300) (1,311) - - - ----------- --------- -------- ------- ------ OTHER INCOME 97,007 1,960 787 21,558 6,959 ----------- --------- -------- ------- ------ INCOME BEFORE NET INTEREST CHARGES 482,793 62,882 12,416 21,098 6,959 NET INTEREST CHARGES: Interest expense 121,448 16,674 3,462 20,442 - Capitalized interest (2,138) (1,509) - - - Subsidiaries' preferred stock dividends - - - - - ----------- --------- -------- ------- ------ Net interest charges 119,310 15,165 3,462 20,442 - ----------- --------- -------- ------- ------ NET INCOME 363,483 47,717 8,954 656 6,959 ----------- --------- -------- ------- ------ PREFERRED STOCK DIVIDEND REQUIREMENTS 6,510 3,699 - - 6,750 ----------- --------- -------- ------- ------ EARNINGS AVAILABLE FOR COMMON $ 356,973 $ 44,018 $ 8,954 $ 656 $ 209 =========== ========= ======== ======= ====== OES OES OHIO EDISON NUCLEAR VENTURES APOLLO ELIMINATIONS CONSOLIDATED -------- -------- -------- ------------ ------------ OPERATING REVENUES $ 15,180 $ (71) $ - $ (47,428) $ 2,948,675 EXPENSES: Fuel and purchased power - - - (4,771) 986,737 Other operating expenses - - - (26,761) 712,385 Provision for depreciation and amortization 264 - - - 370,830 General taxes - - - - 177,021 Income taxes 2,061 19 (1,375) (5,564) 240,017 -------- ------ -------- --------- ----------- Total expenses 2,325 19 (1,375) (37,096) 2,486,990 -------- ------ -------- --------- ----------- OPERATING INCOME 12,855 (90) 1,375 (10,332) 461,685 EQUITY IN SUBSIDIARY EARNINGS - - - (55,472) - Other Income 54 1,018 (3,328) (22,281) 68,873 Other income taxes - (369) - (5,564) (26,544) -------- ------ -------- --------- ----------- OTHER INCOME 54 649 (3,328) (83,317) 42,329 -------- ------ -------- --------- ----------- INCOME BEFORE NET INTEREST CHARGES 12,909 559 (1,953) (93,649) 504,014 NET INTEREST CHARGES: Interest expense 9,880 - - (38,185) 133,721 Capitalized interest - - - 8 (3,639) Subsidiaries' preferred stock dividends - - - 10,449 10,449 -------- ------ -------- --------- ----------- Net interest charges 9,880 - - (27,728) 140,531 -------- ------ -------- --------- ----------- NET INCOME 3,029 559 (1,953) (65,921) 363,483 -------- ------ -------- --------- ----------- PREFERRED STOCK DIVIDEND REQUIREMENTS - - - (10,449) 6,510 -------- ------ -------- --------- ----------- EARNINGS AVAILABLE FOR COMMON $ 3,029 $ 559 $ (1,953) $ (55,472) $ 356,973 =========== =========== ======== ========= =========== Note: Ohio Edison (OE) subsidiaries, OES Fuel was merged into OE and OES Financing Trust was dissolved during 2002. The notes to the consolidated financial statements of Ohio Edison Company, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 OHIO EDISON CONSOLIDATING STATEMENT OF RETAINED EARNINGS For the Year Ended December 31, 2002 (In thousands $)
OHIO PENN OES OES OES EDISON POWER FUEL CAPITAL FINANCE --------- -------- ----- -------- ------- Balance - Beginning of Period $ 572,272 $ 35,398 $ 487 $ 33,767 $ 1,081 Net Income 363,483 47,717 - 8,954 656 --------- -------- ----- -------- -------- Subtotal 935,755 83,115 487 42,721 1,737 Common Stock Dividends Declared (121,900) (28,500) - - - Preferred Stock Dividends Declared (6,510) (3,699) - - - Other (487) --------- -------- ----- -------- ------- Balance - End of Period $ 807,345 $ 50,916 $ - $ 42,721 $ 1,737 ========= ======== ===== ======== ======= ACCUMULATED OTHER COMPREHENSIVE INCOME: Balance - Beginning of Period $ - $ - $ - $ - $ - Net Changes (65,713) (9,932) - - - --------- -------- ----- -------- ------- Balance - End of Period $ (65,713) $ (9,932) $ - $ - $ - ========== ======== ====== ======== ======= OE FINANCING OES OES OHIO EDISON TRUST NUCLEAR VENTURES APOLLO ELIMINATIONS CONSOLIDATED --------- ------- -------- -------- ------------ ------------ Balance - Beginning of Period $ - $ 3,476 $ 3,760 $ - $ (77,969) $ 572,272 Net Income 6,959 3,030 558 (1,953) (65,921) 363,483 ------ ------- ------- -------- --------- --------- Subtotal 6,959 6,506 4,318 (1,953) (143,890) 935,755 Common Stock Dividends Declared (209) - (2,200) - 30,909 (121,900) Preferred Stock Dividends Declared (6,750) - - - 10,449 (6,510) Other (5,718) 6,205 - ------ ------- ------- -------- --------- --------- Balance - End of Period $ - $ 6,506 $ 2,118 $ (7,671) $ (96,327) $ 807,345 ====== ======= ======= ======== ========= ========= ACCUMULATED OTHER COMPREHENSIVE INCOME: Balance - Beginning of Period $ - $ - $ - $ - $ - $ - Net Changes - - - - 9,932 (65,713) ------ ------- ------- -------- --------- --------- Balance - End of Period $ - $ - $ - $ - $ 9,932 $ (65,713) ====== ======= ======= ======== ========= ========= Note: Ohio Edison (OE) subsidiaries, OES Fuel was merged into OE and OES Financing Trust was dissolved during 2002. The notes to the consolidated financial statements of Ohio Edison Company, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 OHIO EDISON CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2002 (In thousands $)
OHIO PENN OES OES OES EDISON POWER FUEL CAPITAL FINANCE ----------- -------- --------- -------- ------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 363,483 $ 47,717 $ - $ 8,954 $ 656 Adjustments to reconcile net income to net cash from operating activities: Provision for depreciation and amortization 313,803 56,763 - - - Nuclear fuel and lease amortization 33,593 19,204 34,334 - - Undistributed subsidiary earnings (24,563) - - - - Deferred income taxes, net (51,979) (5,337) - (808) (2) Investment tax credits, net (12,431) (2,595) - - - Receivables (65,660) (8,434) 5,499 (11,478) (58) Materials and supplies (5,219) (4,711) - - - Accounts payable 78,186 6,338 (8,456) 655 (1) Other 372,262 (3,183) (1,035) 666 60 ----------- -------- --------- -------- ------- Net cash provided from operating activities 1,001,475 105,762 30,342 (2,011) 655 ----------- -------- --------- -------- ------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing- Common stock - - - - - Long-term debt - 14,500 - - - Short-term borrowings 135,663 - (59,985) (41) - Redemptions and repayments- Common stock - - - - - Preferred stock (100,000) (750) - - - Long-term debt (519,970) (56,837) (81,515) - - Dividend payments Common stock (121,900) (28,500) - - - Preferred stock (6,510) (3,699) - - - ----------- -------- --------- -------- ------- Net cash provided from (used for) fiinancing activities (612,717) (75,286) (141,500) (41) - ----------- -------- --------- -------- ------- CASH FLOWS FROM INVESTING ACTIVITIES: Property additions (96,987) (46,060) (5,920) - - Loans to associated companies (328,989) - - - - Loan payments to associated companies 770 19,120 59,985 - - Other 48,804 (2,381) 57,004 2,029 - ----------- -------- --------- -------- ------- Net cash provided from (used for) investing activities (376,402) (29,321) 111,069 2,029 - ----------- -------- --------- -------- ------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 12,356 $ 1,155 $ (89) $ (23) $ 655 =========== ======== ========= ======== ======= OE FINANCING OES OES OHIO EDISON TRUST NUCLEAR VENTURES APOLLO ELIMIN CONSOLIDATED --------- ------- -------- -------- --------- ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 6,959 $ 3,030 $ (1,642) $ (1,953) $ (63,721) $ 363,483 Adjustments to reconcile net income to net cash from operating activities: Provision for depreciation and amortization - 264 - - - 370,830 Nuclear fuel and lease amortization - - - - (39,534) 47,597 Undistributed subsidiary earnings - - - - 24,563 - Deferred income taxes, net - 1,949 41 - - (56,136) Investment tax credits, net - - - - - (15,026) Receivables - 12 73 (6,734) 41,696 (45,084) Materials and supplies - - - - - (9,930) Accounts payable - - - 20 105,487 182,229 Other - 297 90 (2,736) (147,183) 219,238 -------- ------- -------- -------- --------- --------- Net cash provided from operating activities 6,959 5,552 (1,438) (11,403) (78,692) 1,057,201 -------- ------- -------- -------- --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing- Common stock - - - 25,201 (25,201) - Long-term debt - - - - - 14,500 Short-term borrowings - - - 7,093 79,106 161,836 Redemptions and repayments- Common stock (3,711) - - - 3,711 - Preferred stock (120,000) - - - - (220,750) Long-term debt - (5,200) - - 237,780 (425,742) Dividend payments Common stock (209) - - - 28,709 (121,900) Preferred stock (6,750) - - - 10,449 (6,510) -------- ------- -------- -------- --------- --------- Net cash provided from (used for) fiinancing activities (130,670) (5,200) - 32,294 334,554 (598,566) -------- ------- -------- -------- --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Property additions - - - - - (148,967) Loans to associated companies - - - - - (328,989) Loan payments to associated companies - - - - (78,762) 1,113 Other 123,711 - 758 (18,693) (177,100) 34,132 -------- ------- -------- -------- --------- --------- Net cash provided from (used for) investing activities 123,711 - 758 (18,693) (255,862) (442,711) -------- ------- -------- -------- --------- --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ - $ 352 $ (680) $ 2,198 $ - $ 15,924 ======== ======== ============= ======== ========= ========= Note: Ohio Edison (OE) subsidiaries, OES Fuel was merged into OE and OES Financing Trust was dissolved during 2002. The notes to the consolidated financial statements of Ohio Edison Company, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 CLEVELAND ILLUMINATING CONSOLIDATING BALANCE SHEETS As of December 31, 2002 (In thousands $)
CEI CLEVELAND CLEVELAND CENTERIOR FINANCING ILLUMINATING ASSETS ILLUMINATING FUNDING TRUST ELIMINATIONS CONSOLIDATED ------------ --------- --------- ------------ ------------ UTILITY PLANT In service $ 4,045,465 $ - $ - $ - $ 4,045,465 Less--Accumulated provision for depreciation (1,824,884) - - - (1,824,884) ----------- --------- --------- ---------- ------------ 2,220,581 - - - 2,220,581 Construction work in progress 198,458 - - - 198,458 ----------- --------- --------- ---------- ------------ 2,419,039 - - - 2,419,039 ----------- --------- --------- ---------- ------------ INVESTMENTS: Capital trust investments 435,907 - - - 435,907 Nuclear plant decommissioning trusts 230,527 - - - 230,527 Notes receivable from associated companies 102,978 - - - 102,978 Other 92,219 - 103,093 (174,308) 21,004 ----------- --------- --------- ---------- ------------ 861,631 - 103,093 (174,308) 790,416 ----------- --------- --------- ---------- ------------- CURRENT ASSETS: Cash and cash equivalents 30,382 - - - 30,382 Receivables Customers 11,317 - - - 11,317 Associated companies 150,844 571 387 (77,800) 74,002 Other (15,934) 150,309 - - 134,375 Notes receivable from associated companies 781 4,500 - (4,834) 447 Material and supplies Owned 18,293 - - - 18,293 Under consignment 38,094 - - - 38,094 Prepayments and other 4,217 - - - 4,217 ----------- --------- --------- ---------- ------------- 237,994 155,380 387 (82,634) 311,127 ----------- --------- --------- ---------- ------------- DEFERRED CHARGES: Regulatory assets 939,804 - - - 939,804 Goodwill 1,370,639 - - - 1,370,639 Property taxes 79,430 - - - 79,430 Other 24,798 - - - 24,798 ----------- --------- --------- ---------- ----------- 2,414,671 - - - 2,414,671 ----------- --------- --------- ---------- ----------- TOTAL ASSETS $ 5,933,335 $ 155,380 $ 103,480 $ (256,942) $ 5,935,253 =========== ========= ========= ========== =========== The notes to the consolidated financial statements of Cleveland Illuminating, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 CLEVELAND ILLUMINATING CONSOLIDATING BALANCE SHEETS As of December 31, 2002 (In thousands $)
CEI CLEVELAND CLEVELAND CENTERIOR FINANCING ILLUMINATING LIABILITIES AND CAPITALIZATION ILLUMINATING FUNDING TRUST ELIMINATIONS CONSOLIDATED ------------ --------- --------- ------------ ------------ CAPITALIZATION: Common stockholders' equity $ 1,226,632 $ 68,110 $ 3,105 $ (71,215) $ 1,226,632 Preferred stock-- Not subject to mandatory redemption 96,404 - - - 96,404 Subject to mandatory redemption 5,021 - - - 5,021 Subsidiary-obligated mandatorily redeemable preferred securities - - 100,000 - 100,000 Long-term debt 2,078,094 - - (103,093) 1,975,001 ----------- --------- --------- ---------- ----------- 3,406,151 68,110 103,105 (174,308) 3,403,058 ----------- --------- --------- ---------- ----------- CURRENT LIABILITIES: Currently payable long-term debt and preferred stock 388,190 - - - 388,190 Short-term borrowings - - - - - Notes payable to associated companies 293,083 334 - (4,834) 288,583 Accounts payable Other 14,583 - - - 14,583 Associated companies 262,753 82,711 - (77,800) 267,664 Accrued taxes 122,388 3,874 - - 126,262 Accrued interest 51,767 - - - 51,767 Other 63,598 351 375 - 64,324 ----------- --------- --------- ---------- ----------- 1,196,362 87,270 375 (82,634) 1,201,373 ----------- --------- --------- ---------- ----------- DEFERRED CREDITS: Accumulated deferred income taxes 659,044 - - - 659,044 Accumulated deferred investment tax credits 72,125 - - - 72,125 Nuclear plant decommissioning costs 239,720 - - - 239,720 Other postretirement benefits 171,968 - - - 171,968 Other 187,965 - - - 187,965 ----------- --------- --------- ---------- ----------- 1,330,822 - - - 1,330,822 ----------- --------- --------- ---------- ----------- TOTAL LIABILITIES AND CAPITALIZATION $ 5,933,335 $ 155,380 $ 103,480 $ (256,942) $ 5,935,253 =========== ========= ========= ========== =========== The notes to the consolidated financial statements of Cleveland Illuminating, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 CLEVELAND ILLUMINATING CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2002 (In thousands $)
CEI CLEVELAND ELEC CLEVELAND CENTERIOR FINANCING ILLUMINATING ILLUMINATING FUNDING TRUST ELIMINATIONS CONSOLIDATED -------------------------------------------------------------------------------- OPERATING REVENUES $ 1,829,842 $ 5,529 $ - $ - $1,835,371 OPERATING EXPENSES AND TAXES: Fuel and purchased power 587,108 - - - 587,108 Other operating expenses 545,640 15 - - 545,655 Provision for depreciation and amortization 141,427 - - - 141,427 General taxes 147,804 - - - 147,804 Income taxes 88,125 106 - - 88,231 ----------- ------- ------ -------- ----------- Total expenses 1,510,104 121 - - 1,510,225 ----------- ------- ------ -------- ----------- OPERATING INCOME 319,738 5,408 - - 325,146 EQUITY IN SUBSIDIARY EARNINGS 2,662 - - (2,662) - Other Income 30,529 - 9,175 (10,120) 29,584 Other income taxes (12,445) (1,168) - - (13,613) ----------- ------- ------ -------- ----------- OTHER INCOME 20,746 (1,168) 9,175 (12,782) 15,971 ----------- ------- ------ -------- ----------- INCOME BEFORE NET INTEREST CHARGES 340,484 4,240 9,175 (12,782) 341,117 NET INTEREST CHARGES: Interest expense 188,869 1,873 - (10,140) 180,602 Capitalized interest (4,331) - - - (4,331) Subsidiary's preferred stock dividends - - - 8,900 8,900 ----------- ------- ------ -------- ----------- Net interest charges 184,538 1,873 - (1,240) 185,171 ----------- ------- ------ -------- ----------- NET INCOME 155,946 2,367 9,175 (11,542) 155,946 ----------- ------- ------ -------- ----------- PREFERRED STOCK DIVIDEND REQUIREMENTS 17,390 - 8,900 (8,900) 17,390 ----------- ------- ------ -------- ------------ EARNINGS AVAILABLE FOR COMMON $ 138,556 $ 2,367 $ 275 $ (2,642) $ 138,556 =========== ======= ====== ======== ============ The notes to the consolidated financial statements of Cleveland Illuminating, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 CLEVELAND ILLUMINATING CONSOLIDATING STATEMENT OF RETAINED EARNINGS For the Year Ended December 31, 2002 (In thousands $)
CEI CLEVELAND CLEVELAND CENTERIOR FINANCING ILLUMINATING ILLUMINATING FUNDING TRUST ELIMINATIONS CONSOLIDATED ------------ --------- --------- ------------ ------------ Balance - Beginning of Period $ 150,183 $ 6,930 $ 12 $ (6,942) $ 150,183 Net Income 155,946 2,367 9,175 (11,542) 155,946 --------- ------- ------ -------- --------- Subtotal 306,129 9,297 9,187 (18,484) 306,129 Common Stock Dividends Declared - - (275) 275 - Preferred Stock Dividends Declared (12,665) - (8,900) 8,900 (12,665) Other (4,743) (9,143) - 9,143 (4,743) --------- ------- ------ -------- --------- Balance - End of Period $ 288,721 $ 154 $ 12 $ (166) $ 288,721 ========= ======= ====== ======== ========= ACCUMULATED OTHER COMPREHENSIVE INCOME: Balance - Beginning of Period $ - $ - $ - $ - $ - Net Changes (44,051) - - - (44,051) --------- ------- ------ -------- --------- Balance - End of Period $ (44,051) $ - $ - $ - $ (44,051) ========= ======= ======= ======== ========= The notes to the consolidated financial statements of Cleveland Illuminating, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 CLEVELAND ILLUMINATING CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2002 (In thousands $)
CEI CLEVELAND CLEVELAND CENTERIOR FINANCING ILLUMINATING ASSETS ILLUMINATING FUNDING TRUST ELIMINATIONS CONSOLIDATED ------------ --------- --------- ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 155,946 $ 2,367 $ 9,175 $ (11,542) $ 155,946 Adjustments to reconcile net incomeX to net cash from operating activities: Provision for depreciation and amortization 141,427 - - - 141,427 Nuclear fuel and lease amortization 21,044 - - - 21,044 Other amortization (15,008) - - - (15,008) Deferred income taxes, net 19,973 - - - 19,973 Investment tax credits, net (4,062) - - - (4,062) Receivables (66,414) (25,831) - 65,086 (27,159) Materials and supplies (7,624) - - - (7,624) Accounts payable 166,357 69,182 - (188,392) 47,147 Other (98,984) (75) - 84,530 (14,529) --------- ------- ------- --------- --------- Net cash provided from operating activities 312,655 45,643 9,175 (50,318) 317,155 --------- -------- ------- --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing- Equity contribution from parent 50,000 (30,901) - 30,901 50,000 Long-term debt 106,981 - - - 106,981 Short-term borrowings 195,379 (5,599) - 1,099 190,879 Redemptions and repayments- Preferred stock (164,674) - - - (164,674) Long-term debt (309,480) - - - (309,480) Dividend payments Common stock - (9,143) (275) 9,418 - Preferred stock (13,782) - (8,900) 8,900 (13,782) --------- ------- ------- --------- --------- Net cash provided from (used for) fiinancing activities (135,576) (45,643) (9,175) 50,318 (140,076) --------- ------- ------- --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Property additions (163,199) - - - (163,199) Loan payments from associated companies 415 - - - 415 Capital trust investments 39,636 - - - 39,636 Other (23,845) - - - (23,845) --------- ------- ------- --------- --------- Net cash provided from (used for) investing activities (146,993) - - - (146,993) --------- ------- ------- --------- --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 30,086 $ - $ - $ - $ 30,086 ========= ======= ======= ========= ========= The notes to the consolidated financial statements of Cleveland Illuminating, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 TOLEDO EDISON CONSOLIDATING BALANCE SHEETS As of December 31, 2002 (In thousands $)
TOLEDO TOLEDO TOLEDO EDISON EDISON ASSETS EDISON CAPITAL CORP. ELIMINATIONS CONSOLIDATED ----------- ------------- ------------ ------------ UTILITY PLANT: In service $ 1,600,860 $ - $ - $ 1,600,860 Less--Accumulated provision for depreciation (706,772) - - (706,772) ----------- -------- --------- ----------- 894,088 - - 894,088 Construction work in progress 137,741 - - 137,741 ----------- -------- --------- ----------- 1,031,829 - - 1,031,829 ----------- -------- --------- ----------- INVESTMENTS: Capital trust investments 238,609 2,354 - 240,963 Nuclear plant decommissioning trusts 174,514 - - 174,514 Notes receivable from associated companies 162,159 - - 162,159 Other 26,353 - (24,117) 2,236 ----------- -------- --------- ----------- 601,635 2,354 (24,117) 579,872 ----------- -------- --------- ----------- CURRENT ASSETS: Cash and cash equivalents 20,679 9 - 20,688 Receivables Customers 4,711 - - 4,711 Associated companies 55,219 26 - 55,245 Other 6,778 - - 6,778 Notes receivable from associated companies 188 25,232 (23,463) 1,957 Material and supplies Owned 13,631 - - 13,631 Under consignment 22,997 - - 22,997 Prepayments and other 3,455 - - 3,455 ----------- -------- --------- ----------- 127,658 25,267 (23,463) 129,462 ----------- -------- --------- ----------- DEFERRED CHARGES: Regulatory assets 392,643 - - 392,643 Goodwill 445,732 - - 445,732 Property taxes 23,429 - - 23,429 Other 16,920 - (2,663) 14,257 ----------- -------- --------- ------------ 878,724 - (2,663) 876,061 ----------- -------- --------- ------------ TOTAL ASSETS $ 2,639,846 $ 27,621 $ (50,243) $ 2,617,224 =========== ======== ========= ============ The notes to the consolidated financial statements of Toledo Edison Company, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are integral part of the consolidating financial statements.
Exhibit F-2 TOLEDO EDISON CONSOLIDATING BALANCE SHEETS As of December 31, 2002 (In thousands $)
TOLEDO TOLEDO TOLEDO EDISON EDISON LIABILITIES AND CAPITALIZATION EDISON CAPITAL CORP. ELIMINATIONS CONSOLIDATED ------ ------------ ------------ ------------ CAPITALIZATION: Common stockholder's equity $ 712,931 $ 26,796 $ (26,796) $ 712,931 Preferred stock not subject to mandatory redemption 126,000 - - 126,000 Long-term debt 557,265 - - 557,265 ---------- -------- --------- --------- 1,396,196 26,796 (26,796) 1,396,196 ---------- -------- --------- --------- CURRENT LIABILITIES: Currently payable long-term debt and preferred stock 189,355 - - 189,355 Accounts payable Associated companies 171,862 - - 171,862 Other 8,638 - - 8,638 Notes payable to associated companies 173,116 - (23,463) 149,653 Accrued taxes 34,681 286 - 34,967 Accrued interest 16,377 - - 16,377 Other 57,216 - 16 57,232 ---------- -------- --------- --------- 651,245 286 (23,447) 628,084 ---------- -------- --------- --------- DEFERRED CREDITS: Accumulated deferred income taxes 223,087 - - 223,087 Accumulated deferred investment tax credits 29,491 - - 29,491 Nuclear plant decommissioning costs 180,856 - - 180,856 Retirement benefits 82,553 - - 82,553 Other 76,418 539 - 76,957 ---------- -------- --------- --------- 592,405 539 - 592,944 ---------- -------- --------- --------- TOTAL LIABILITIES AND CAPITALIZATION $2,639,846 $ 27,621 $ (50,243) $2,617,224 ========== ======== ========= ========= The notes to the consolidated financial statements of Toledo Edison Company, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are integral part of the consolidating financial statements.
Exhibit F-2 TOLEDO EDISON CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2002 (In thousands $)
TOLEDO TOLEDO TOLEDO EDISON EDISON EDISON CAPITAL CORP. ELIMINATIONS CONSOLIDATED -------- ------------- ------------- ------------ OPERATING REVENUES $987,645 $ - $ - $987,645 OPERATING EXPENSES AND TAXES: Fuel and purchased power 366,932 - - 366,932 Other operating expenses 421,575 - - 421,575 Provision for depreciation and amortization 93,482 - - 93,482 General taxes 53,223 - - 53,223 Income taxes (2,761) 17 (1) (2,745) -------- ----- ------ -------- Total expenses 932,451 17 (1) 932,467 -------- ------ ------ -------- OPERATING INCOME 55,194 (17) 1 55,178 EQUITY IN SUBSIDIARY EARNINGS 173 - (173) - Other Income 20,792 190 (1) 20,981 Other income taxes (7,652) - - (7,652) -------- ----- ------ -------- OTHER INCOME 13,313 190 (174) 13,329 -------- ----- ------ -------- INCOME BEFORE NET INTEREST CHARGES 68,507 173 (173) 68,507 NET INTEREST CHARGES: Interest expense 57,672 - - 57,672 Capitalized interest (2,502) - - (2,502) -------- ----- ------ -------- Net interest charges 55,170 - - 55,170 -------- ----- ------ -------- NET INCOME 13,337 173 (173) 13,337 -------- ----- ------ ------ PREFERRED STOCK DIVIDEND REQUIREMENTS 11,356 - - 11,356 -------- ----- ------ ------ EARNINGS AVAILABLE FOR COMMON $ 1,981 $ 173 $ (173) $ 1,981 ======== ===== ====== ======== The notes to the consolidated financial statements of Toledo Edison Company, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are integral part of the consolidating financial statements.
Exhibit F-2 TOLEDO EDISON CONSOLIDATING STATEMENT OF RETAINED EARNINGS For the Year Ended December 31, 2002 (In thousands $)
TOLEDO TOLEDO TOLEDO EDISON EDISON EDISON CAPITAL CORP. ELIMINATIONS CONSOLIDATED --------- ------------- ------------ ------------ Balance - Beginning of Period $ 113,436 $ 386 $ (386) $ 113,436 Net Income 13,337 173 (173) 13,337 --------- ----- ------- --------- Subtotal 126,773 559 (559) 126,773 Common Stock Dividends Declared (5,600) (418) 418 (5,600) Preferred Stock Dividends Declared (10,057) (10,057) Other (1,299) -- -- (1,299) --------- ----- ------- --------- Balance - End of Period $ 109,817 $ 141 $ (141) $ 109,817 ========= ===== ======= ========= ACCUMULATED OTHER COMPREHENSIVE INCOME: Balance - Beginning of Period $ - $ - $ - $ - Net Change (21,115) - - (21,115) --------- ----- ------- --------- Balance - End of Period $ (21,115) $ - $ - $ (21,115) ========= ===== ======= ========= The notes to the consolidated financial statements of Toledo Edison Company, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are integral part of the consolidating financial statements.
Exhibit F-2 TOLEDO EDISON CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2002 (In thousands $)
TOLEDO TOLEDO TOLEDO EDISON EDISON EDISON CAPITAL CORP. ELIMINATIONS CONSOLIDATED -------- ------------ ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 13,337 $ 173 $ (173) $ 13,337 Adjustments to reconcile net income to net cash from operating activities: Provision for depreciation and amortization 93,482 - - 93,482 Nuclear fuel and lease amortization 11,866 - - 11,866 Deferred income taxes, net (5,868) - - (5,868) Investment tax credits, net (1,851) - - (1,851) Receivables 13,550 14 - 13,564 Materials and supplies (5,582) - - (5,582) Accounts payable 99,122 - (56,621) 42,501 Other (64,307) 1,602 56,794 (5,911) -------- ------ -------- -------- Net cash provided from operating activities 153,749 1,789 - 155,538 -------- ------ -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing- Equity contribution from parent 100,000 - - 100,000 Long-term debt 19,580 - - 19,580 Short-term borrowings 132,445 - - 132,445 Redemptions and repayments- Preferred stock (85,299) - - (85,299) Long-term debt (180,368) - - (180,368) Dividend payments Common stock (5,600) - - (5,600) Preferred stock (10,057) - - (10,057) -------- ------ -------- -------- Net cash provided from (used for) fiinancing activities (29,299) - - (29,299) -------- ------ -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Property additions (105,510) - - (105,510) Loan pyments from associated companies 5,838 - - 5,838 Capital trust investments 20,957 211 - 21,168 Other (27,349) - - (27,349) -------- ------ -------- -------- Net cash provided from (used for) investing activities (106,064) 211 - (105,853) -------- ------ -------- -------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 18,386 $2,000 $ - $ 20,386 ======== ====== ======== ======== The notes to the consolidated financial statements of Toledo Edison Company, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are integral part of the consolidating financial statements.
Exhibit F-2 Jersey Central Power & Light Company and Subsidiary Companies Consolidating Balance Sheet December 31, 2002 (Dollars in Thousands)
Jersey Central Power & Light Company Eliminations Jersey Central and Subsidiary Companies and Power & Light JCP&L Consolidated Adjustments Company Preferred Capital, Inc. ------------------------ ----------- ---------------- ----------------------- ASSETS UTILITY PLANT: In Service $ 3,478,803 $ 3,478,803 Less - Accumulated Provision For Depreciation (1,343,846) (1,343,846) ----------- ----------- Net Utility Plant excluding CWIP 2,134,957 2,134,957 Construction Work In Progress: Electric Plant 20,687 20,687 ----------- ----------- Total Construction Work In Progress 20,687 20,687 ----------- ----------- Net Utility Plant 2,155,644 2,155,644 ----------- ----------- OTHER PROPERTY & INVESTMENTS: Nuclear Plant Decommissioning Trust 106,820 106,820 Nuclear Fuel Disposal Trust 149,738 149,738 Long-term Notes Receivable from Associated Company 20,333 $ (141,753) 20,333 $ 12,887 Investments in Subsidiaries - (22,331) 18,459 3,872 Nonutility Plant, Net 2,258 2,258 Other 15,944 15,944 ----------- ---------- ----------- -------- Total Other Property & Investments 295,093 (164,084.00) 313,552 16,759 ----------- ---------- ----------- -------- CURRENT ASSETS: Cash and Cash Equivalents 4,823 4,821 1 Receivables: - Customers 247,624 247,624 Associated Companies 318 (26,915) 18,756 2,939 Other 20,134 20,134 Notes Receivable from Associated Co. 77,358 77,358 Materials & Supplies: - - Owned 1,341 1,341 Prepayments and Other 37,719 0.00 17,969 ----------- ---------- ----------- -------- Total Current Assets 389,317 (26,915.00) 388,003 2,940 ----------- ---------- ----------- -------- DEFERRED CHARGES: Goodwill 2,000,875 2,000,625 Regulatory Assets: - Customer Receivables for Future Income Taxes 34,470 34,470 Societal Benefits Charge 143,840 143,840 Unamortized Loss on Reaquired Debt 17,374 17,374 T & D Postretirement Benefits 33,205 33,205 Regulatory Transition Charge 2,801,740 306,130 2,495,610 Property Losses and Unrecovered Plant 87,760 87,760 All Other 80,624 80,624 Other 12,813 (306,188) 12,871 ----------- ---------- ----------- -------- Total Deferred Charges 5,212,701 (58.00) 4,906,379 0.00 ----------- ---------- ----------- -------- ----------- ---------- ----------- -------- TOTAL ASSETS $ 8,052,755 $ (191,057) $ 7,763,578 $ 19,699 =========== ========== =========== ======== JCP&L JCP&L Transition Funding Capital, L.P. ------------------ ------------- ASSETS UTILITY PLANT: In Service Less - Accumulated Provision For Depreciation Net Utility Plant excluding CWIP Construction Work In Progress: Electric Plant Total Construction Work In Progress Net Utility Plant OTHER PROPERTY & INVESTMENTS: Nuclear Plant Decommissioning Trust Nuclear Fuel Disposal Trust Long-term Notes Receivable from Associated Company $ 128,866 Investments in Subsidiaries Nonutility Plant, Net Other ----------- --------- Total Other Property & Investments - $ 128,866 ----------- --------- CURRENT ASSETS: Cash and Cash Equivalents 1 - Receivables: Customers Associated Companies 5,538 - Other - Notes Receivable from Associated Co. Materials & Supplies: Owned Prepayments and Other 19,750 ----------- --------- Total Current Assets 25,289 - ----------- --------- DEFERRED CHARGES: Goodwill 250 Regulatory Assets: Customer Receivables for Future Income Taxes Societal Benefits Charge Unamortized Loss on Reaquired Debt T & D Postretirement Benefits Regulatory Transition Charge Property Losses and Unrecovered Plant All Other Other 306,130 ----------- --------- Total Deferred Charges 306,130 250 ----------- --------- ----------- --------- TOTAL ASSETS $ 331,419 $ 129,116 =========== ========= The notes to the consolidated financial statements of JCP&L, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 Jersey Central Power & Light Company and Subsidiary Companies Consolidating Balance Sheet December 31, 2002 (Dollars in Thousands)
Jersey Central Power & Light Company Eliminations Jersey Central and Subsidiary Companies and Power & Light JCP&L Consolidated Adjustments Company Preferred Capital, Inc. ------------------------- ------------ --------------- ----------------------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock $ 153,713 $ (1) $ 153,713 $ 1 Other Paid-In Capital 3,029,218 (22,282) 3,029,218 16,815 Accumulated Other Comprehensive Income/(Loss) (865) (865) Retained Earnings 92,003 (48) 92,003 35 --------- ---------- ---------- ------- Total Common Stockholder's Equity 3,274,069 (22,331.00) 3,274,069 16,851 Preferred Stock: Not Subject to Mandatory Redemption 12,649 12,649 Subject to Mandatory Redemption - - Company Obligated Mandatorily Redeemable Preferred Securities 125,244 Long-Term Debt 1,210,446 (128,924) 1,043,111 --------- ---------- ---------- ------- Total Capitalization 4,622,408 (151,255.00) 4,329,829 16,851 ---------- ---------- ---------- ------- CURRENT LIABILITIES: Currently Payable Long-Term Debt and Preferred Stock 173,815 150,016 Accounts Payable: - Associated Companies 170,803 (26,915) 194,743 2,758 Other 106,504 106,504 Notes Payable: - Associated Companies - (12,887) 12,887 Accrued Taxes 13,844 - 13,749 91 Accrued Interest 27,161 17,630 (1) Other 112,408 112,408 --------- ---------- ---------- ------- Total Current Liabilities 604,535 (39,802.00) 607,937 2,848 --------- ---------- ---------- ------- DEFERRED CREDITS: Accumulated Deferred Income Taxes 691,721 - 691,721 Accumulated Deferred Investment Tax Credits 9,939 9,939 Power Purchase Contract Loss Liability 1,710,968 1,710,968 Nuclear Fuel Disposal Fee 166,191 166,191 Nuclear Plant Decommissioning Costs 135,355 135,355 Pensions & Other Postretirement Benefits 2,027 2,027 Other 109,611 109,611 --------- ---------- ---------- ------- Total Deferred Credits 2,825,812 0.00 2,825,812 - --------- ---------- ---------- ------- --------- ---------- ---------- ------- TOTAL CAPITALIZATION & LIABILITIES $8,052,755 $ (191,057) $7,763,578 $19,699 ========== =========== ========== ======= JCP&L JCP&L Transition Funding Capital, L.P. ------------------ ------------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock Other Paid-In Capital $ 1,601 $ 3,866 Accumulated Other Comprehensive Income/(Loss) Retained Earnings 7 6 -------- --------- Total Common Stockholder's Equity 1,608 3,872 Preferred Stock: Not Subject to Mandatory Redemption Subject to Mandatory Redemption Company Obligated Mandatorily Redeemable Preferred Securities 125,244 Long-Term Debt 296,259 -------- --------- Total Capitalization 297,867 129,116 -------- --------- CURRENT LIABILITIES: Currently Payable Long-Term Debt and Preferred Stock 23,799 Accounts Payable: Associated Companies 217 - Other Notes Payable: Associated Companies Accrued Taxes 4 Accrued Interest 9,532 Other - ---------- ---------- Total Current Liabilities 33,552 - ---------- ---------- DEFERRED CREDITS: Accumulated Deferred Income Taxes Accumulated Deferred Investment Tax Credits Power Purchase Contract Loss Liability Nuclear Fuel Disposal Fee Nuclear Plant Decommissioning Costs Pensions & Other Postretirement Benefits Other ---------- ---------- Total Deferred Credits - - ---------- ---------- ---------- ---------- TOTAL CAPITALIZATION & LIABILITIES $ 331,419 $ 129,116 ========== ========== The notes to the consolidated financial statements of JCP&L, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 Jersey Central Power & Light Company and Subsidiary Companies Consolidating Statement of Income For the Year Ending December 31, 2002 (Dollars in Thousands)
Jersey Central Power & Light Company Eliminations Jersey Central and Subsidiary Companies and Power & Light Consolidated Adjustments Company ----------------------- ------------ -------------- OPERATING REVENUES $ 2,328,415 $ 2,304,832 OPERATING EXPENSES AND TAXES: Fuel 5,707 5,707 Purchased Power 1,242,305 1,242,305 Other Operating Costs 272,890 272,890 ------------ ----------- Total Operating and Maintenance Expenses 1,520,902 1,520,902 Provision for Depreciation & Amortization 244,759 230,889 General Taxes 56,049 56,049 Income Taxes 171,496 $ 445 171,051 ----------- -------- ----------- Total Operating Expenses and Taxes 1,993,206 445 1,978,891 OPERATING INCOME 335,209 (445) 325,941 Other Income 23,052 (12,315) 23,223 Equity Earnings - (1,170) 833 Other Income Deductions (5,040) 217 (4,909) Taxes - Other Income & Deductions (10,359) 445 (10,355) ----------- -------- ----------- OTHER INCOME 7,653 (12,823) 8,792 INCOME BEFORE NET INTEREST CHARGES 342,862 (13,268) 334,733 NET INTEREST CHARGES: Subsidiaries Preferred Dividends 10,694 10,694 Interest On Long-Term Debt 92,314 82,782 Allowance for Borrowed Funds Used During - Construction and Capitalized Interest (583) (583) Deferred Interest Income (8,815) (8,815) Other Interest Expense (2,643) (12,097) 9,454 ----------- -------- ----------- Net Interest Charges 90,967 (1,403) 82,838 NET INCOME 251,895 (11,865) 251,895 Preferred Stock Dividend Requirements 1,464 10,694 1,464 ----------- -------- ----------- EARNINGS ON COMMON STOCK $ 253,359 $ (1,171) $ 253,359 =========== ======== =========== JCP&L JCP&L JCP&L Preferred Capital, Inc. Transition Funding Capital, L.P. ---------------------- ----------------- ----------------- OPERATING REVENUES $ 23,583 OPERATING EXPENSES AND TAXES: Fuel Purchased Power Other Operating Costs -------- Total Operating and Maintenance Expenses - Provision for Depreciation & Amortization 13,870 General Taxes Income Taxes -------- Total Operating Expenses and Taxes 13,870 OPERATING INCOME 9,713 Other Income $ 1,066 47 $ 11,031 Equity Earnings 337 - Other Income Deductions (131) (217) Taxes - Other Income & Deductions (445) (4) -------- -------- --------- OTHER INCOME 827 (174) 11,031 INCOME BEFORE NET INTEREST CHARGES 827 9,539 11,031 NET INTEREST CHARGES: Subsidiaries Preferred Dividends Interest On Long-Term Debt 9,532 Allowance for Borrowed Funds Used During Construction and Capitalized Interest Deferred Interest Income Other Interest Expense - - - -------- -------- -------- Net Interest Charges - 9,532 - NET INCOME 827 7 11,031 Preferred Stock Dividend Requirements - (10,694) -------- -------- -------- EARNINGS ON COMMON STOCK $ 827 $ 7 $ 337 ========= ======== ======== The notes to the consolidated financial statements of JCP&L, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 Jersey Central Power & Light Company and Subsidiary Companies Consolidating Statement of Comprehensive Income For the Year Ending December 31, 2002 (Dollars in Thousands)
Jersey Central Power & Light Company Eliminations Jersey Central and Subsidiary Companies and Power & Light Consolidated Adjustments Company ------------------------ ------------- -------------- Net Income $ 251,895 $(11,864) $ 251,895 Other comprehensive loss, net of tax: Unrealized loss on derivative instruments (393) (393) --------- --------- Total other comprehensive loss (393) (393) --------- -------- --------- Comprehensive Income $ 251,502 $(11,864) $ 251,502 ========= ======== ========= JCP&L JCP&L JCP&L Preferred Capital, Inc. Transition Funding Capital, L.P. ---------------------- ------------------ ------------- Net Income $ 826 $ 7 $ 11,031 Other comprehensive loss, net of tax: Unrealized loss on derivative instruments Total other comprehensive loss ----- --- -------- Comprehensive Income $ 826 $ 7 $ 11,031 ===== === ======== The notes to the consolidated financial statements of JCP&L, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2001, are an integral part of the consolidating financial statements.
Exhibit F-2 Jersey Central Power & Light Company and Subsidiary Companies Consolidating Statement of Retained Earnings For the Year Ending December 31, 2002 (Dollars in Thousands)
Jersey Central Power & Light Company Eliminations Jersey Central and Subsidiary Companies and Power & Light Consolidated Adjustments Company ------------------------ ----------- -------------- Balance at beginning of period $ 29,343 $ (50) $ 29,343 Net income 251,895 (11,864) 251,895 Partnership distributions - 331 - Cash dividends declared on common stock (190,700) - (190,700) Cash dividends declared on common stock - internal - 842 - Cash dividends on cumulative preferred stock (2,125) - (2,125) Cash dividends on preferred stock of subsidiary - 10,694 - Gain on reacquisition of cumulative preferred stock 3,590 - 3,590 -------- -------- -------- Balance at end of period $ 92,003 $ (47) $ 92,003 ======== ======== ======== JCP&L JCP&L JCP&L Preferred Capital, Inc. Transition Funding Capital, L.P. ---------------------- ------------------ -------------- Balance at beginning of period $ 50 $ - $ - Net income 826 7 11,031 Partnership distributions - - (331) Cash dividends declared on common stock - - - Cash dividends declared on common stock - internal (842) - - Cash dividends on cumulative preferred stock - - - Cash dividends on preferred stock of subsidiary - - (10,694) Gain on reacquisition of cumulative preferred stock - - - ---- --- ------- Balance at end of period $ 34 $ 7 $ 6 ==== === ======= The notes to the consolidated financial statements of JCP&L, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2001, are an integral part of the consolidating financial statements.
Exhibit F-2 Jersey Central Power & Light Company and Subsidiary Companies Consolidating Statement of Cash Flows For the Year Ending December 31, 2002 (Dollars in Thousands)
Jersey Central Power & Light Company Eliminations Jersey Central and Subsidiary Companies and Power & Light Consolidated Adjustments Company ----------------------- ----------- -------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 251,895 $ (11,864) $ 251,895 Adjustments to reconcile net cash from operating activities: Equity in earnings of subsidiary 1,170 (833) Provision for depreciation and amortization 244,759 - 230,889 Other amortization 849 - 849 Deferred costs, net (285,065) - (285,065) Deferred income taxes, net 115,866 - 115,866 Investment tax credits, net (3,551) - (3,551) Receivables (14,542) 24,531 (30,861) Materials & Supplies 7 - 7 Accounts Payable 16,399 (24,531) 37,955 Other (17,642) (318,890) 291,763 --------- --------- --------- Net cash provided by operating activities 308,975 (329,584) 608,914 ---------- ---------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing - Long-term debt 318,106 - - Equity Contribution - - (1,600) Redemptions and Repayments - Preferred stock (51,500) - (51,494) Long-term debt (196,033) (58) (195,975) Short-term borrowings, net (18,149) - (18,149) Dividend Payments - - - - Preferred stock (2,125) 10,694 (2,125) Partnership distribution - internal - - - Common stock (190,700) - (190,700) Common stock - internal - 842 - --------- --------- --------- Net cash provided from (used for) financing activites (140,401) 11,478 (460,043) --------- --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Property Additions (97,346) - (97,346) Purchase of bondable transition property - 318,106 - Restricted Funds (19,703) - - Capital trust investments - - - Loans to associated companies (77,358) - (77,358) Other (768) - (768) --------- --------- --------- Net cash used for investing activities (195,175) 318,106 (175,472) --------- --------- --------- Net increase in cash and cash equivalents (26,601) - (26,601) Cash and cash equivalents, beginning of period 31,424 - 31,422 --------- --------- --------- Cash and cash equivalents, end of period $ 4,823 $ - $ 4,821 ========= ========= ========= SUPPLEMENTAL CASH FLOWS INFORMATION: Cash Paid During the Year - Interest $$ 92,152 $ (12,097) $ 104,249 ========= ========= ========= Income taxes paid $ 83,776 $ - $ 83,269 ========= ========= ========= JCP&L JCP&L JCP&L Preferred Capital, Inc. Transition Funding Capital, L.P. ----------------------- ---------------- ---------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 826 $ 7 $ 11,031 Adjustments to reconcile net cash from operating activities: Equity in earnings of subsidiary Provision for depreciation and amortization - 13,870 - Other amortization - - - Deferred costs, net - - - Deferred income taxes, net - - - Investment tax credits, net - - - Receivables (2,674) (5,538) - Materials & Supplies - - - Accounts Payable 2,758 217 - Other (62) 9,547 - ------- --------- -------- Net cash provided by operating activities 848 18,103 11,031 ------- --------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing - Long-term debt - 318,106 - Equity Contribution - 1,600 - Redemptions and Repayments - Preferred stock - - (6) Long-term debt - - - Short-term borrowings, net - - - Dividend Payments - - - - Preferred stock - - (10,694) Partnership distribution - internal 331 - (331) Common stock - - - Common stock - internal (842) - - ------- --------- -------- Net cash provided from (used for) financing acti (511) 319,706 (11,031) ------- --------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Property Additions - - - Purchase of bondable transition property - (318,106) - Restricted Funds - (19,703) - Capital trust investments - - - Loans to associated companies - - - Other - - - ------- --------- -------- Net cash used for investing activities - (337,809) - ------- --------- -------- Net increase in cash and cash equivalents - - - Cash and cash equivalents, beginning of period 1 1 - ------- --------- -------- Cash and cash equivalents, end of period $ 1 $ 1 $ - ======= ========= ======== SUPPLEMENTAL CASH FLOWS INFORMATION: Cash Paid During the Year - Interest $ - $ - $ - ======= ========= ======== Income taxes paid $ 507 $ - $ - ======= ========= ======== The notes to the consolidated financial statements of JCP&L, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2001, are an integral part of the consolidating financial statements.
Exhibit F-2 Metropolitan Edison Company and Subsidiary Companies Consolidating Balance Sheet ('000's) December 31, 2002
Metropolitan Edison Company and Subsidiary Eliminations Met-Ed Companies and Metropolitan Preferred Consolidated Adjustments Edison Company Capital II ------------- ------------ -------------- ---------- ASSETS UTILITY PLANT: In Service $ 1,620,613 $ 1,592,612 Less - Accumulated Provision For Depreciation (547,925) (536,606) ----------- ----------- Net Utility Plant excluding CWIP 1,072,688 1,056,006 Construction Work In Progress: Electric Plant 16,078 16,078 ----------- ----------- Total Construction Work In Progress 16,078 16,078 ----------- ----------- Net Utility Plant 1,088,766 1,072,084 ----------- ----------- OTHER PROPERTY & INVESTMENTS: Nuclear Plant Decommissioning Trust 155,690 155,690 Long-term Notes Receivable from Associated Companies 12,418 $ (203,093) 12,418 Investments in Subsidiaries - (29,274) 26,598 $ 2,885 Nonutility Plant, Net 1,336 1,336 Other 17,870 17,870 ----------- ---------- ----------- ------- Total Other Property & Investments 187,314 (232,367) 213,912 2,885 ----------- ---------- ----------- ------- CURRENT ASSETS: Cash and Cash Equivalents 15,685 7,328 1 Receivables: Customers 120,868 120,868 Associated Companies 23,219 12,914 10,054 Other 18,235 18,182 Prepayments and Other 9,731 8,777 954 ----------- ---------- ----------- ------- Total Current Assets 187,738 21,691 157,386 1 ----------- ---------- ----------- ------- DEFERRED CHARGES: Goodwill 885,832 893,632 Regulatory Assets: Customer Receivables for Future Income Taxes 116,003 116,003 Unamortized Loss on Reaquired Debt 4,378 4,378 T & D Postretirement Benefits 19,489 19,489 Regulatory Transition Charge 986,150 986,150 All Other 53,105 53,105 Other 36,030 36,030 ----------- ----------- Total Deferred Charges 2,100,987 2,108,787 ----------- ---------- ----------- ------- TOTAL ASSETS $ 3,564,805 $ (210,676) $ 3,552,169 $ 2,886 =========== ========== =========== ======= Met-Ed Met-Ed York Haven Capital II,L.P Capital Trust Power Company -------------- ------------- ------------- ASSETS UTILITY PLANT: In Service $ 28,001 Less - Accumulated Provision For Depreciation (11,319) -------- Net Utility Plant excluding CWIP 16,682 Construction Work In Progress: Electric Plant Total Construction Work In Progress -------- Net Utility Plant 16,682 -------- OTHER PROPERTY & INVESTMENTS: Nuclear Plant Decommissioning Trust Long-term Notes Receivable from Associated Companies $ 103,093 $ 100,000 Investments in Subsidiaries (209) Nonutility Plant, Net Other --------- --------- Total Other Property & Investments 102,884 100,000 --------- --------- CURRENT ASSETS: Cash and Cash Equivalents 1 8,355 Receivables: Customers Associated Companies 251 Other 53 Prepayments and Other --------- -------- Total Current Assets 1 8,659.00 --------- -------- DEFERRED CHARGES: Goodwill (7,800) Regulatory Assets: Customer Receivables for Future Income Taxes Unamortized Loss on Reaquired Debt T & D Postretirement Benefits Regulatory Transition Charge All Other Other --------- Total Deferred Charges (7,800) --------- --------- -------- TOTAL ASSETS $ 102,885 $ 92,200 $ 25,341 ========= ========= ======== The notes to the consolidated financial statements of Met-Ed, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 Metropolitan Edison Company and Subsidiary Companies Consolidating Balance Sheet ('000's) December 31, 2002
Metropolitan Edison Company and Subsidiary Eliminations Met-Ed Companies and Metropolitan Preferred Consolidated Adjustments Edison Company Capital II -------------- ------------ -------------- ---------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock $ 1,297,784 $ (1,164) $ 1,297,784 $ 1 Other Paid-In Capital 0 (27,019) 2,902 Accumulated Other Comprehensive Income (39) (39) Retained Earnings 17,841 (1,091) 17,841 (261) ----------- ---------- ----------- ------- Total Common Stockholder's Equity 1,315,586 (29,274) 1,315,586 2,642 Company-Obligated Trust Preferred Securities 92,409 Long-Term Debt 538,790 (203,093) 641,883 ----------- ---------- ----------- ------- Total Capitalization 1,946,785 (232,367) 1,957,469 2,642 ----------- ---------- ----------- ------- CURRENT LIABILITIES: Currently Payable Long-Term Debt 60,467 60,467 Accounts Payable: Associated Companies 56,861 (9,335) 65,245 73 Other 28,583 28,583 Notes Payable: Associated Companies 88,299 88,299 Accrued Taxes 16,096 31,026 (14,095) 171 ) Accrued Interest 16,448 16,448 Other 11,690 11,690 ----------- ----------- ----------- ------- Total Current Liabilities 278,444 21,691 256,637 244 ) ----------- ---------- ----------- ------- DEFERRED CREDITS: Accumulated Deferred Income Taxes 316,757 315,281 Accumulated Deferred Investment Tax Credits 12,518 12,481 Power Purchase Contract Loss Liability 660,507 660,507 Nuclear Fuel Disposal Fee 37,541 37,541 Nuclear Plant Decommissioning Costs 270,611 270,611 Pensions & Other Postretirement Benefits 1,354 1,354 Other 40,288 40,288 ----------- ----------- Total Deferred Credits 1,339,576 1,338,063 ----------- ----------- ----------- ---------- ----------- ------- Total Capitalization & Liabilities $ 3,564,805 $ (210,676) $ 3,552,169 $ 2,886 =========== ========== =========== ======= Met-Ed Met-Ed York Haven Capital II,L.P Capital Trust Power Company -------------- ------------- ------------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock $ 1,163 Other Paid-In Capital $ 3,117 21,000 Accumulated Other Comprehensive Income Retained Earnings (232) $ (209) 1,793 --------- -------- -------- Total Common Stockholder's Equity 2,885 (209) 23,956 Company-Obligated Trust Preferred Securities 92,409 Long-Term Debt 100,000 --------- -------- -------- Total Capitalization 102,885 92,200 23,956 --------- -------- -------- CURRENT LIABILITIES: Currently Payable Long-Term Debt Accounts Payable: Associated Companies 878 Other Notes Payable: Associated Companies Accrued Taxes (1,006) Accrued Interest Other -------- Total Current Liabilities (128) -------- DEFERRED CREDITS: Accumulated Deferred Income Taxes 1,476 Accumulated Deferred Investment Tax Credits 37 Power Purchase Contract Loss Liability Nuclear Fuel Disposal Fee Nuclear Plant Decommissioning Costs Pensions & Other Postretirement Benefits Other -------- Total Deferred Credits 1,513 -------- --------- -------- -------- Total Capitalization & Liabilities $ 102,885 $ 92,200 $ 25,341 ========= ======== ======== The notes to the consolidated financial statements of Met-Ed, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 Metropolitan Edison Company and Subsidiary Companies Consolidating Statement of Income ('000's) For the Period from January 1, 2002 through December 31, 2002
Metropolitan Edison Company Eliminations and Subsidiary and Metropolitan Met-Ed Companies Consolidated Adjustments Edison Company Preferred Cap II ---------------------- --------------- ------------------- ---------------- OPERATING REVENUES $986,608 $(5,387) $986,449 OPERATING EXPENSES AND TAXES: Fuel Purchased Power 604,305 (5,387) 609,692 Other Operating Costs 115,371 113,360 -------- ------- -------- Total Operating and Maintenance Expenses 719,676 (5,387) 723,052 Provision for Depreciation & Amortization 81,419 80,061 General Taxes 66,795 67,310 Income Taxes 27,447 2 26,267 -------- ------ -------- Total Operating Expenses and Taxes 895,337 (5,385) 896,690 -------- ------ -------- OPERATING INCOME 91,271 (2) 89,759 Other Income 42,927 (14,927) 42,916 Equity Earnings 0 (1,335) 1,525 $19 Other Income Deductions (4,260) (4,247) (13) Taxes - Other Income & Deductions (16,925) 2 (16,922) (2) -------- ------- -------- --- OTHER INCOME 21,742 (16,260) 23,272 4 -------- ------ -------- --- INCOME BEFORE NET INTEREST CHARGES 113,013 (16,262) 113,031 4 NET INTEREST CHARGES: Subsidiaries Preferred Dividends 7,559 7,559 Interest On Long-Term Debt 40,774 40,774 Allowance for Borrowed Funds Used During Construction and Capitalized Interest (470) (470) Deferred Interest Income (710) (710) Other Interest Expense 2,636 (14,927) 10,213 -------- ------- -------- Net Interest Charges 49,789 (7,368) 49,807 -------- ------- -------- --- NET INCOME 63,224 (8,894) 63,224 4 Preferred Stock Dividend Requirements 0 (7,559) -------- ------- -------- --- EARNINGS ON COMMON STOCK $ 63,224 $(1,335) $63,224 $ 4 ======== ======= ======== === Met-Ed Met-Ed York Haven Capital II,L.P Capital Trust Power Company -------------- ------------- ------------- OPERATING REVENUES $ 5,546 OPERATING EXPENSES AND TAXES: Fuel Purchased Power Other Operating Costs 2,011 --------- Total Operating and Maintenance Expenses 2,011.00 Provision for Depreciation & Amortization 1,358 General Taxes (515) Income Taxes 1,178 --------- Total Operating Expenses and Taxes 4,032.00 --------- OPERATING INCOME 1,514.00 Other Income $7,577 $7,350 11 Equity Earnings (209) Other Income Deductions Taxes - Other Income & Deductions (3) ------ ------ --------- OTHER INCOME 7,368 7,350 8 ------ ------ --------- INCOME BEFORE NET INTEREST CHARGES 7,368 7,350 1,522 NET INTEREST CHARGES: Subsidiaries Preferred Dividends Interest On Long-Term Debt Allowance for Borrowed Funds Used During Construction and Capitalized Interest Deferred Interest Income Other Interest Expense 7,350 ------ Net Interest Charges 7,350 ------ ------ --------- NET INCOME 18 7,350 1,522 Preferred Stock Dividend Requirements 7,559 ------ ------ --------- EARNINGS ON COMMON STOCK $ 18 $ (209) $ 1,522 ====== ====== ========= The notes to the consolidated financial statements of Met-Ed, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 Metropolitan Edison Company and Subsidiary Companies Consolidating Statement of Comprehensive Income ('000's) For the Period from January 1, 2002 through December 31, 2002
Metropolitan Edison Company and Subsidiary Eliminations Metropolitan Met-Ed Met-Ed Companies and Edison Preferred Preferred Consolidated Adjustments Company Capital, II Capital II, LP --------------- -------------- ------------- ----------- -------------- Net Income $63,224 $(8,894) $63,224 $4 $18 Other comprehensive income/(loss), net of tax: Net unrealized gains on investments 17 17 Other electricity option hedging (67) (67) ------- ------- Total other comprehensive income (50) (50) ------- ------- ------- -- --- Comprehensive income $63,174 $(8,894) $63,174 $4 $18 ======= ======= ======= == === Met-Ed York Haven Capital Power Trust Company --------- ---------- Net Income $7,350 $1,522 Other comprehensive income/(loss), net of tax: Net unrealized gains on investments Other electricity option hedging Total other comprehensive income ------ ------ Comprehensive income $7,350 $1,522 ====== ====== The notes to the consolidated financial statements of Met-Ed, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 Metropolitan Edison Company and Subsidiary Companies Consolidating Statement of Retained Earnings ('000's) For the Period from January 1, 2002 through December 31, 2002
Metropolitan Edison Company and Subsidiary Eliminations Metropolitan Met-Ed Companies and Edison Preferred Consolidated Adjustments Company Capital II --------------- ------------ ------------- -------------- Balance at beginning of period $14,617 $ (210) $(14,617 $( 37) Net income 63,224 (8,894) 63,224 4 Partnership Distribution 0 227 Cash dividends declared on common stock 0 227 (227) Cash dividends on cumulative preferred stock (60,000) 7,559 60,000) ------- ------- -------- ----- Balance at end of period $17,841 %(1,091) $ 17,841 $(260) ======= ======= ======== ===== Met-Ed York Haven Met-Ed Capital Power Capital II, LP Trust Company -------------- ---------- ----------- Balance at beginning of period $( 23) $ 0 $ 270 Net income 18 7,350 1,522 Partnership Distribution (227) Cash dividends declared on common stock Cash dividends on cumulative preferred stock (7,559) ------ ------- ------ Balance at end of period $(232) $ (209) $1,792 ====== ====== ====== The notes to the consolidated financial statements of Met-Ed, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 Metropolitan Edison Company and Subsidiary Companies Consolidating Statement of Cash Flows ('000's) For the Period Ended December 31, 2003
Metropolitan Edison Company Eliminations Metropolitan and Subsidiary and Edison Company Companies Consolidated Adjustments Company ---------------------- ------------ -------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 63,224 % (8,894) $ 63,224 Adjustments to reconcile net cash from operating activities: Equity in earnings of subsidiary 1,335 (1,526) Provision for depreciation and amortization 81,419 80,061 Other amortization (2,528) (2,528) Deferred costs recoverable as regulatory assets (18,938) (18,938) Deferred income taxes, net 23,356 23,334 Investment tax credits, net (792) (792) Receivables (24,672) (55,478) 20,288 Materials & Supplies 0 Accounts Payable (18,657) 38,051 (53,175) Other, net (538) 17,409 (16,164) -------- -------- -------- Net cash (used for) provided by operating activities 101,874 (7,577) 93,784 -------- -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing - Long-term debt 49,750 49,750 Short-term borrowings, net 16,288 16,288 Redemptions and Repayments - 0 Preferred stock 0 Long-term debt (60,000) (60,000) Short-term borrowings, net 0 Dividend Payments - 0 Common stock (60,000) 0 (60,000) Preferred stock 7,350 0 Partnership distribution - internal 0 0 Common stock - internal 227 0 -------- -------- -------- Net cash (used for) provided by financing activities (53,962) 7,577 (53,962) --------- --------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Property Additions (44,533) (44,185) Contribution to Decommissioning trust (12,729) (12,729) Other (239) (239) --------- -------- -------- Net cash (used for) investing activities (57,501) 0 (57,153) --------- -------- -------- Net increase (decrease) in cash and cash equivalents (9,589) 0 (17,331) Cash and cash equivalents, beginning of period 25,274 24,658 -------- -------- -------- Cash and cash equivalents, end of period $ 15,685 $ 0 $ 7,327 ======== ======== ======== SUPPLEMENTAL CASH FLOWS INFORMATION: Cash Paid During the Year - -------- -------- -------- Interest $ 46,266 $ (7,368) $ 46,284 ======== ======== ======== Income taxes paid $ 34,385 $ 32,421 ======== ======== ======== Met-Ed Met-Ed Met-Ed York Haven Preferred Cap II Capital II,L.P Capital Trust Power Company ---------------- -------------- ------------- -------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 4 $ 18 $ 7,350 $ 1,522 Adjustments to reconcile net cash from operating activities: Equity in earnings of subsidiary (18) 209 Provision for depreciation and amortization 1,358 Other amortization Deferred costs recoverable as regulatory assets Deferred income taxes, net 22 Investment tax credits, net Receivables (113) 10,631 Materials & Supplies Accounts Payable 73 (3,606) Other, net 54 (1,837) ------- ------ -------- -------- Net cash (used for) provided by operating activities 0 227 7,350 8,090 ------ ------ ------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing - Long-term debt Short-term borrowings, net Redemptions and Repayments - Preferred stock Long-term debt Short-term borrowings, net Dividend Payments - Common stock Preferred stock (7,350) Partnership distribution - internal 227 (227) Common stock - internal (227) ------ ------ ------- -------- Net cash (used for) provided by financing activities 0 (227) (7,350) 0 ------ ------ ------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Property Additions (348) Contribution to Decommissioning trust Other ------ ------ -------- -------- Net cash (used for) investing activities 0 0 0 (348) ------ ------ -------- -------- Net increase (decrease) in cash and cash equivalents 0 0 0 7,742 Cash and cash equivalents, beginning of period 1 1 614 ------ ------ ------- -------- Cash and cash equivalents, end of period $ 1 $ 1 $ 0 $ 8,356 ====== ====== ======= ======== SUPPLEMENTAL CASH FLOWS INFORMATION: Cash Paid During the Year - ------ ------ ------- -------- Interest $7,350 ====== ====== ======= ======== Income taxes paid/(refunded) $ (71) $ 2,035 ====== ====== ======= ======== The notes to the consolidated financial statements of Met-Ed, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.
Exhibit F-2 Pennsylvania Electric Company and Subsidiary Companies Consolidating Balance Sheet December 31, 2002 (In Thousands) ----------------------------------------------------------
Pennsylvania Electric Company and Subsidiary Eliminations Pennsylvania Penelec Companies and Electric Preferred Consolidated Adjustments Company Capital II, Inc. ----------------- ------------- ------------ ---------------- ASSETS UTILITY PLANT: In Service $1,844,999 $1,844,984 Less - Total Accum Provision For Depreciation (647,581) (647,581) ---------- ---------- Net Utility Plant excluding Construction Work In Progress 1,197,418 1,197,403 Construction Work In Progress: Electric Plant 19,200 19,200 ---------- ---------- Total Construction Work In Progress 19,200 19,200 ---------- ---------- Net Utility Plant 1,216,618 1,216,603 ---------- ---------- OTHER PROPERTY & INVESTMENTS: Nuclear Plant Decommissioning Trust 88,818 88,818 Non Utility Generation Trust 109,881 109,881 Long-term Notes Receivable from Associated Company 15,515 $(203,093) 15,515 Investments in Subsidiaries 0 (6,480) 3,814 $2,880 Nonutility Plant, Net 343 343 Other 9,082 9,082 ---------- --------- ---------- ------ Total Other Property & Investments 223,639 (209,573) 227,453 2,880 ---------- --------- ---------- ------ CURRENT ASSETS: Cash and Cash Equivalents 10,310 10,308 1 Receivables: Customers 128,303 128,303 Associated Companies 45,236 (28,148) 71,617 Other 16,185 16,184 Prepayments and Other 2,551 2,551 ---------- --------- ---------- ------ Total Current Assets 202,585 (28,148) 228,963 1 ---------- --------- ---------- ------ DEFERRED CHARGES: Goodwill 898,086 906,086 Regulatory Assets: Customer Receivables for Future Income Tax 124,488 124,488 Unamortized Loss on Reaquired Debt 5,198 5,198 Regulatory Transition Charge 434,193 434,193 All Other 35,783 35,783 Accumulated Deferred Income Taxes 1,517 1,460 Other 21,147 21,147 ---------- ---------- Total Deferred Charges 1,520,412 1,528,355 ---------- --------- ---------- ------ TOTAL ASSETS $3,163,254 $(237,721) $3,201,374 $2,881 ========== ========= ========== ====== Waverly Penelec Nineveh Elec. Light Penelec Capital Water and Power Capital II, L.P. Trust Company Company ---------------- --------- ------- ----------- ASSETS UTILITY PLANT: In Service $15 Less - Total Accum Provision For Depreciation --- Net Utility Plant excluding Construction Work In Progress 15 Construction Work In Progress: Electric Plant Total Construction Work In Progress --- Net Utility Plant 15 --- OTHER PROPERTY & INVESTMENTS: Nuclear Plant Decommissioning Trust Non Utility Generation Trust Long-term Notes Receivable from Associated Company $103,093 $100,000 Investments in Subsidiaries (214) Nonutility Plant, Net Other -------- -------- Total Other Property & Investments 102,879 100,000 -------- -------- CURRENT ASSETS: Cash and Cash Equivalents 1 Receivables: Customers Associated Companies $1,767 Other 1 Prepayments and Other -------- ------- ------- --- Total Current Assets 1 1,768 0 -------- ------- ------ --- DEFERRED CHARGES: Goodwill (8,000) Regulatory Assets: Customer Receivables for Future Income Tax Unamortized Loss on Reaquired Debt Regulatory Transition Charge All Other Accumulated Deferred Income Taxes 57 Other -------- ------ Total Deferred Charges (8,000) 57 -------- -------- ------ --- TOTAL ASSETS $102,880 $ 92,000 $1,825 $15 ======== ======== ====== ===
The notes to the consolidated financial statements of Penelec, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements. Exhibit F-2 Pennsylvania Electric Company and Subsidiary Companies Consolidating Balance Sheet December 31, 2002 (In Thousands) -----------------------------------------------------------
Pennsylvania Electric Company and Subsidiary Eliminations Pennsylvania Penelec Companies and Electric Preferred Consolidated Adjustments Company Capital II, Inc. ----------------- ------------- ------------- ---------------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock $ 105,812 $ (16) $ 105,812 $ 1 Other Paid-In Capital 1,215,256 (7,214) 1,215,256 2,908 Accumulated Other Comprehensive Income/ (Loss) (69) (69) Retained Earnings 32,705 750 32,705 (264) ---------- --------- ---------- ------ Total Common Stockholder's Equity 1,353,704 (6,480) 1,353,704 2,645 ---------- --------- ---------- ------ Company Obligated Trust Preferred Securities 92,214 Long-Term Debt 470,273 (203,093) 573,366 ---------- --------- ---------- ------ Total Capitalization 1,916,191 (209,573) 1,927,070 2,645 ---------- --------- ---------- ------ CURRENT LIABILITIES: Currently Payable Long-Term Debt 813 813 Accounts Payable: Associated Companies 129,907 (28,148) 158,010 42 Other 29,690 29,690 Notes Payable: Associated Companies 90,427 90,427 Accrued Taxes 21,271 20,559 194 Accrued Interest 12,694 12,580 Other 8,409 8,410 ---------- --------- ---------- ------ Total Current Liabilities 293,211 (28,148) 320,489 236 ---------- --------- ---------- ------ DEFERRED CREDITS: Accumulated Deferred Invest Tax Credits 10,924 10,887 Power Purchase Contract Loss Liability 765,063 765,063 Nuclear Fuel Disposal Fee 18,771 18,771 Nuclear Plant Decommissioning Costs 135,450 135,450 Pensions & Other Postretirement Benefits 1,041 1,041 Other 22,603 22,603 ---------- --------- ---------- Total Deferred Credits 953,852 0 953,815 ---------- --------- ---------- ------ Total Capitalization & Liabilities $3,163,254 $(237,721) $3,201,374 $2,881 ========== ========= ========== ====== Waverly Penelec Nineveh Elec. Light Penelec Capital Water and Power Capital II, L.P. Trust Company Company ---------------- -------- ------- ----------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock $15 Other Paid-In Capital $ 3,116 $1,190 Accumulated Other Comprehensive Income/ (Loss) Retained Earnings (236) $ (214) (36) -------- ------- ------ --- Total Common Stockholder's Equity 2,880 (214) 1,154 15 -------- ------- ------ --- Company Obligated Trust Preferred Securities 92,214 Long-Term Debt 100,000 -------- ------- ------ --- Total Capitalization 102,880 92,000 1,154 15 -------- ------- ------ --- CURRENT LIABILITIES: Currently Payable Long-Term Debt Accounts Payable: Associated Companies 3 Other Notes Payable: Associated Companies Accrued Taxes 518 Accrued Interest 114 Other (1) -------- ------- ------ --- Total Current Liabilities 0 634 0 -------- ------- ------ --- DEFERRED CREDITS: Accumulated Deferred Invest Tax Credits 37 Power Purchase Contract Loss Liability Nuclear Fuel Disposal Fee Nuclear Plant Decommissioning Costs Pensions & Other Postretirement Benefits Other ------ Total Deferred Credits 37 -------- ------- ------ --- Total Capitalization & Liabilities $102,880 $92,000 $1,825 $15 ======== ======= ====== ===
The notes to the consolidated financial statements of Penelec, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements. Exhibit F-2 Pennsylvania Electric Company and Subsidiary Company Consolidating Statement of Income For the period ending December 31, 2002 (In Thousands) --------------------------------------------------------------------------------
Pennsylvania Electric Company and Subsidiary Eliminations Penelec Companies and Pennsylvania Preferred Consolidated Adjustments Electric Company Capital II, Inc ---------------- ------------ ---------------- --------------- OPERATING REVENUES $1,027,102 $1,027,102 OPERATING EXPENSES AND TAXES: Purchased Power 649,725 649,725 Other Operating Costs 132,996 132,996 ---------- ---------- Total Operating and Maintenance Expenses 782,721 782,721 Provision for Depreciation and Amortization 61,477 61,477 General Taxes 65,301 65,295 Income Taxes 29,414 29,428 ---------- ---------- Total Operating Expenses and Taxes 938,913 938,921 0 OPERATING INCOME 88,189 88,181 0 Other income 9,003 ($14,601) 8,696 Equity Earnings 0 223 (22) $ 13 Other Income Deductions (2,426) (2,413) (13) Taxes - Other Income & Deductions (4,834) (4,834) (0) ---------- -------- ---------- ---- OTHER INCOME 1,743 (14,378) 1,427 0 0 ---------- -------- ---------- ---- INCOME BEFORE NET INTEREST CHARGES 89,932 (14,378) 89,608 0 ---------- -------- ---------- ---- 0 NET INTEREST CHARGES: 0 Subsidiaries' Preferred Stock Dividend Requirements 7,554 7,554 Interest On Long-Term Debt 31,758 31,758 Allowance for Borrowed Funds Used During 0 Construction and Capitalized Interest (52) (52) Deferred Interest (3,299) (3,299) Other Interest Expense 3,061 (14,601) 10,291 ---------- -------- ---------- ---- Net Interest Charges 39,022 (7,047) 38,698 0 0 0 NET INCOME/ (LOSS) 50,910 (7,331) 50,910 0 Preferred Stock Dividend Requirements 0 7,554 0 0 ---------- -------- ---------- ---- Earnings/(Losses) on Common Stock $ 50,910 $ 223 $ 50,910 $ 0 ========== ======== ========== ==== Waverly Penelec Nineveh Elec. Light Penelec Capital Water and Power Capital II, LP Trust Company Company -------------- -------- ------- ----------- OPERATING REVENUES OPERATING EXPENSES AND TAXES: Purchased Power Other Operating Costs Total Operating and Maintenance Expenses Provision for Depreciation and Amortization General Taxes $ 6 Income Taxes (14) ---- Total Operating Expenses and Taxes (8) OPERATING INCOME 8 Other income $7,568 $7,340 Equity Earnings (214) Other Income Deductions Taxes - Other Income & Deductions ------ ------ ---- OTHER INCOME 7,354 7,340 0 ------ ------ ---- INCOME BEFORE NET INTEREST CHARGES 7,354 7,340 8 ------ ------ ---- NET INTEREST CHARGES: Subsidiaries' Preferred Stock Dividend Requirements Interest On Long-Term Debt Allowance for Borrowed Funds Used During Construction and Capitalized Interest Deferred Interest Other Interest Expense 7,340 31 ------ ------ ---- Net Interest Charges 7,340 0 31 NET INCOME/ (LOSS) 14 7,340 (23) Preferred Stock Dividend Requirements 0 (7,554) 0 ------ ------ ---- --- Earnings/(Losses) on Common Stock $ 14 $ (214) ($23) $ 0 ====== ====== ==== ===
The notes to the consolidated financial statements of Penelec, which are incorporated by reference from the annual report on Form 10-K for the year end December 31, 2002, are an integral part of the consolidating financial statements. Exhibit F-2 Pennsylvania Electric Company and Subsidiary Companies Consolidating Statement of Retained Earnings For the period ending December 31, 2002 (In Thousands) -----------------------------------------------------------------------
Pennsylvania Electric Company and Subsidiary Eliminations Pennsylvania Penelec Companies and Electric Preferred Consolidated Adjustments Company Capital II, Inc. ---------------- ------------- ------------ --------------- Balance at beginning of year $10,795 $ 73 $10,795 $ (37) Net Income/(Loss) 50,910 (7,331) 50,910 0 Partnership distributions 0 227 Cash dividends declared on common stock (29,000) 227 (29,000) (227) Cash dividends on cumulative preferred stock 0 7,554 ------- ------- ------- ----- Balance at end of year $32,705 $ $750 $32,705 $(264) ======= ======= ======= ===== Waverly Penelec Nineveh Elec. Light Penelec Capital Water and Power Capital II, L.P. Trust Company Company ---------------- -------- ------- ----------- Balance at beginning of year $ (23) $(13) Net Income/(Loss) 13 $7,340 (22) $0 Partnership distributions (227) Cash dividends declared on common stock Cash dividends on cumulative preferred stoc (7,554) ----- ------ ----- -- Balance at end of year $(237) $ (214) $(35) $0 ===== ====== ===== ==
The notes to the consolidated financial statements of Penelec, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements. Exhibit F-2 Pennsylvania Electric Company and Subsidiary Companies Consolidating Statement of Comprehensive Income For the period ending December 31, 2002 (In Thousands) --------------------------------------------------------------------------
Pennsylvania Electric Company and Subsidiary Eliminations Pennsylvania Penelec Companies and Electric Preferred Consolidated Adjustments Company Capital II, Inc. ---------------- ------------- ------------- ----------------- Net Income/(Loss) $50,910 $(7,331) $50,910 $0 Other comprehensive income/ (loss), net of tax: Unrealized gain on investment (72) (72) Unrealized loss on derivativ instruments 3 3 ------- ------- Total other comprehensive income (69) (69) ------- ------ ------- -- Comprehensive Income/(Loss) $50,841 $(7,331) $50,841 $0 ======= ====== ======= == Waverly Penelec Nineveh Elec. Light Penelec Capital Water and Power Capital II, L.P. Trust Company Company ---------------- ------- ------- ----------- Net Income/(Loss) $13 $7,340 $(22) $0 Other comprehensive income/ (loss), net of tax: Unrealized gain on investment Unrealized loss on derivativ instruments Total other comprehensive income --- ------ ---- -- Comprehensive Income/(Loss) $13 $7,340 $(22) $0 === ====== ==== ==
The notes to the consolidated financial statements of Penelec, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements. Exhibit F-2 Pennsylvania Electric Company and Subsidiary Companies Consolidating Statement of Cash Flows For the Period Ending December 31, 2002 (in thousands)
Pennsylvania Electric Company and Subsidiary Eliminations Pennsylvania Penelec Companies and Electric Preferred Consolidated Adjustments Company Capital II, Inc ---------------- ------------ ------------- --------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income/(Loss) $50,910 $(7,331) $50,910 Adjustments to reconcile net cash from operating activities: Equity in earnings of subsidiary (223) 22 $(13) Provision for depreciation and amortization 61,476 61,476 Other amortization 94 94 Deferred costs recoverable as regulatory assets (58,953) (58,953) Deferred income taxes, net 11,893 11,893 Investment tax credits, net (1,032) (1,032) Receivables (27,509) (25,900) Accounts payable (5,514) (7,097) (35) Other 7,947 7,886 48 ------- ------- ------- ---- Net cash provided from (used for) operating activities 39,312 (7,554) 39,299 (0) ------- ------- ------- ---- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing - Short-term borrowings, net 12,804 12,804 Redemptions and Repayments - Long-term debt (49,973) (49,973) Dividend Payments - Common stock (29,000) (29,000) Preferred stock 7,340 Partnership distribution - internal 227 Common stock - internal 214 13 (227) ------- ------- ------- ---- Net cash provided from (used for) financing activities (66,169) 7,554 (66,156) 0 ------- ------- ------- ---- CASH FLOWS FROM INVESTING ACTIVITIES: Property Additions (50,671) (50,671) Proceeds from nonutility generation trusts 49,044 49,044 Other (239) (239) ------- ------- ------- ---- Net cash provided from (used for) investing activities (1,866) (1,866) ------- ------- ------- ---- Net decrease in cash and cash equivalents (28,723) (28,723) Cash and cash equivalents, beginning of period 39,033 39,031 1 ------- ------- ------- ---- Cash and cash equivalents, end of period $10,310 $10,308 $ 1 ======= ======= ======= ==== SUPPLEMENTAL CASH FLOWS INFORMATION: Cash Paid During the Year - Interest $32,695 $(7,047) $30,820 ======= ======= ======= Income taxes paid/(refunded) $43,613 $43,680 ======= ======= Waverly Penelec Nineveh Elec. Light Penelec Capital Water and Power Capital II, L.P. Trust Company Company ---------------- ------- ------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income/(Loss) $ 13 $7,340 $ ($22) Adjustments to reconcile net cash from operating activities: Equity in earnings of subsidiary 214 Provision for depreciation and amortization Other amortization Deferred costs recoverable as regulatory assets Deferred income taxes, net Investment tax credits, net Receivables (1,609) Accounts payable 1,618 Other 13 ------ ------ ------- ---- Net cash provided from (used for) operating activities 227 7,340 (0) ------ ------ ------- ---- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing - Short-term borrowings, net Redemptions and Repayments - Long-term debt Dividend Payments - Common stock Preferred stock (7,340) Partnership distribution - internal (227) Common stock - internal ------ ------ ------- ---- Net cash provided from (used for) financing activities (227) (7,340) ------ ------ ------- ---- CASH FLOWS FROM INVESTING ACTIVITIES: Property Additions Proceeds from nonutility generation trusts Other ------ ------ ------- ---- Net cash provided from (used for) investing activities ------ ------ ------- ---- Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of period 1 ------ ------ ------- ---- Cash and cash equivalents, end of period $ 1 ====== ------ ------- ---- SUPPLEMENTAL CASH FLOWS INFORMATION: Cash Paid During the Year - Interest $8,074 $ 734 $ 114 ====== ====== ======= Income taxes paid/(refunded) $(68) $1 ====== =======
The notes to the consolidated financial statements of Penelec, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2002, are an integral part of the consolidating financial statements.