EX-99 5 exh_f-2.txt EXHIBIT F-2 Exhibit F-2 OHIO EDISON COMPANY CONSOLIDATING BALANCE SHEET As of December 31, 2003 (In thousands $)
Ohio Penn Edison Power OES OES OES ASSETS Corporate Company Capital, Inc. Finance, Inc. Nuclear, Inc. ------------- --------- ------------- ------------- ------------- UTILITY PLANT: In service $ 4,608,383 $ 808,637 $ - $ - $ 156,000 Less--Accumulated provision for depreciation (2,293,679) (324,710) - - (26,435) ----------- --------- --------- --------- --------- 2,314,704 483,927 - - 129,565 Construction work in progress 77,483 68,451 - - - ----------- --------- --------- --------- --------- 2,392,187 552,378 - - 129,565 ----------- --------- --------- --------- --------- OTHER PROPERTY AND INVESTMENTS: Investments in lease obligation bonds 11,536 - - - - Nuclear plant decommissioning trusts 242,500 133,867 - - - Letter of credit collateralization - - - 277,763 - Long-term notes receivable from associated companies 323,741 39,179 - - - Other 1,080,089 2,195 2,199 - - ----------- --------- --------- --------- --------- 1,657,866 175,241 2,199 277,763 - ----------- --------- --------- --------- --------- CURRENT ASSETS: Cash and cash equivalents 161 40 0 0 0 Receivables-- Customers 66,142 44,861 169,535 - - Associated companies 572,665 24,965 9,978 - 14,214 Other 9,529 1,047 4,943 9,866 - Notes receivable from associated companies 337,627 399 11,295 13,673 757 Material and supplies 45,895 33,918 - - - Prepayments and other 4,884 9,383 123 - - ----------- --------- --------- --------- --------- 1,036,903 114,613 195,874 23,539 14,971 ----------- --------- --------- --------- --------- DEFERRED CHARGES: Regulatory assets 1,326,804 27,513 - - - Accumulated deferred income tax benefits 1,765 17 Property taxes 59,279 - - - - Unamortized sale and leaseback costs 65,631 - - - - Other 52,385 9,634 - - - ----------- --------- --------- --------- --------- 1,504,099 37,147 1,765 17 - ----------- --------- --------- --------- --------- TOTAL ASSETS $ 6,591,055 $ 879,379 $ 199,838 $ 301,319 $ 144,536 =========== ========= ========= ========= ========= Apollo PNBV Ohio OES Tax Credit Capital Edison ASSETS Ventures, Inc. Fund IX Trust Eliminations Consolidated ------------- ---------- --------- ------------ ------------ UTILITY PLANT: In service $ - $ - $ - $ (303,978) $ 5,269,042 Less--Accumulated provision for depreciation - - - 65,925 (2,578,899) -------- -------- ---------- ----------- ----------- - - - (238,053) 2,690,143 - - Construction work in progress - - - - 145,934 -------- -------- --------- ----------- ----------- - - - (238,053) 2,836,077 -------- -------- --------- ----------- ----------- OTHER PROPERTY AND INVESTMENTS: Investments in lease obligation bonds - - 371,974 - 383,510 Nuclear plant decommissioning trusts - - - - 376,367 Letter of credit collateralization - - - - 277,763 Long-term notes receivable from associated companies - - - 145,674 508,594 Other 11,261 14,955 - (1,051,597) 59,102 -------- -------- --------- ----------- ----------- 11,261 14,955 371,974 (905,923) 1,605,336 -------- -------- --------- ----------- ----------- - - CURRENT ASSETS: Cash and cash equivalents 0 1,667 15 0 1,883 Receivables-- Customers - - - - 280,538 Associated companies - - - (184,831) 436,991 Other - 166 2,757 - 28,308 Notes receivable from associated companies 2,750 3,768 - (3,768) 366,501 Material and supplies - - - - 79,813 - - Prepayments and other - - - - 14,390 -------- -------- --------- ----------- ----------- 2,750 5,601 2,772 (188,599) 1,208,424 -------- -------- --------- ----------- ----------- DEFERRED CHARGES: Regulatory assets - - - 123,652 1,477,969 Accumulated deferred income tax benefits 552 - - (2,334) - Property taxes - - - - 59,279 Unamortized sale and leaseback costs - - - - 65,631 Other - 2,195 - - 64,214 -------- -------- --------- ----------- ----------- 552 2,195 - 121,318 1,667,093 -------- -------- -------- ----------- ----------- TOTAL ASSETS $ 14,563 $ 22,751 $ 374,746 $(1,211,257) $ 7,316,930 ======== ======== ========= =========== =========== Note: Upon adoption of FIN46, "Consolidation at Variable Interest Entities", in December 2003, the PNBV Capital Trust was consolidated into Ohio Edison. 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 ending December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 OHIO EDISON COMPANY CONSOLIDATING BALANCE SHEET As of December 31, 2003 (In thousands $)
Ohio Penn Edison Power OES OES OES LIABILITIES AND CAPITALIZATION Corporate Company Capital, Inc. Finance, Inc. Nuclear, Inc. ----------- ------- ------------- ------------- ------------- CAPITALIZATION: Common stockholders' equity $ 2,582,970 $ 230,786 $ 24,576 $ 16,488 $ 9,519 Preferred stock not subject to mandatory redemption 60,965 39,105 - - - Preferred stock of consolidated subsidiaries-- Not subject to mandatory redemption - - - - - Long-term debt and other long-term obligations-- Preferred stock of consolidated subsidiary subject to mandatory redemption - 12,750 - - - Other 1,158,631 117,608 - 263,763 114,400 ----------- --------- --------- --------- --------- 3,802,566 400,249 24,576 280,251 123,919 ----------- --------- --------- --------- --------- CURRENT LIABILITIES: Currently payable long-term debt and preferred stock 378,315 93,474 - - - Short-term borrowings-- Associated companies 3,768 11,334 - - - Other 17,000 - 149,690 - - Accounts payable-- Associated companies 233,823 40,172 12,705 20,912 - Other 6,641 1,294 25 - - Accrued taxes 529,151 27,091 3,223 156 33 Accrued interest 14,318 4,396 - - - Other 40,514 8,444 9,619 - - ----------- --------- --------- --------- --------- 1,223,530 186,205 175,262 21,068 33 ----------- --------- --------- --------- --------- NONCURRENT LIABILITIES: Accumulated deferred income taxes 751,570 97,871 - - 20,584 Accumulated deferred investment tax credits 72,304 3,516 - - - Asset retirement obligations 188,156 129,546 Retirement benefits 277,772 54,057 - - - Other 275,157 7,935 - - - ----------- --------- --------- --------- --------- 1,564,959 292,925 - - 20,584 ----------- --------- --------- --------- --------- TOTAL LIABILITIES AND CAPITALIZATION $ 6,591,055 $ 879,379 $ 199,838 $ 301,319 $ 144,536 =========== ========= ========= ========= ========= Apollo PNBV Ohio OES Tax Credit Capital Edison LIABILITIES AND CAPITALIZATION Ventures, Inc. Fund IX Trust Eliminations Consolidated -------------- ---------- ------- ------------ ------------ CAPITALIZATION: Common stockholders' equity $ 13,615 $ 17,578 $ 22,481 $ (335,043) $ 2,582,970 Preferred stock not subject to mandatory redemption - - - (39,105) 60,965 Preferred stock of consolidated subsidiaries-- Not subject to mandatory redemption - - - 39,105 39,105 Long-term debt and other long-term obligations-- Preferred stock of consolidated subsidiary subject to mandatory redemption - - - - 12,750 Other - - 349,613 (836,976) 1,167,039 -------- -------- -------- ----------- ----------- 13,615 17,578 372,094 (1,172,019) 3,862,829 -------- -------- -------- ----------- ----------- CURRENT LIABILITIES: Currently payable long-term debt and preferred stock - - - (5,200) 466,589 Short-term borrowings-- Associated companies - - - (3,768) 11,334 Other - 4,850 - - 171,540 Accounts payable-- Associated companies 154 - 2,652 (39,156) 271,262 Other - 19 - - 7,979 Accrued taxes 691 - - - 560,345 Accrued interest - - - - 18,714 Other 103 - - - 58,680 -------- -------- -------- ----------- ----------- 948 4,869 2,652 (48,124) 1,566,443 -------- -------- -------- ----------- ----------- NONCURRENT LIABILITIES: Accumulated deferred income taxes - - - (2,334) 867,691 Accumulated deferred investment tax credits - - - - 75,820 Asset retirement obligations - - - 317,702 Retirement benefits - - - - 331,829 Other - 304 - 11,220 294,616 -------- -------- -------- ----------- ----------- - 304 - 8,886 1,887,658 -------- -------- -------- ----------- ----------- TOTAL LIABILITIES AND CAPITALIZATION $ 14,563 $ 22,751 $374,746 $(1,211,257) $ 7,316,930 ======== ======== ======== =========== =========== Note: Upon adoption of FIN46, "Consolidation at Variable Interest Entities", in December 2003, the PNBV Capital Trust was consolidated into Ohio Edison. 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 ending December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 OHIO EDISON CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2003 (In thousands $)
OHIO PENN EDISON POWER OES OES OES CORPORATE CORPORATE CAPITAL INC. FINANCE, INC. NUCLEAR ----------- --------- ----------- ------------- ---------- OPERATING REVENUES $ 2,398,689 $526,867 $24,414 $ - $ 14,764 OPERATING EXPENSES AND TAXES: Fuel and purchased power 779,806 187,086 - - - Other operating costs 640,020 182,033 11,700 - - Provision for depreciation and amortization 383,878 53,806 173 - 264 General taxes 147,052 22,458 568 - - Income taxes 176,294 34,164 3,639 462 2,046 ----------- -------- ------- ------- -------- Total expenses 2,127,050 479,547 16,080 462 2,310 ----------- -------- ------- ------- -------- OPERATING INCOME 271,639 47,320 8,334 (462) 12,454 Equity in subsidiary earnings 53,007 - - - - Other income 91,859 4,645 480 21,655 13 Other income taxes (19,575) (1,795) - - - ----------- -------- ------- ------- -------- OTHER INCOME 125,291 2,850 480 21,655 13 ----------- -------- ------- ------- -------- INCOME BEFORE NET INTEREST CHARGES 396,930 50,170 8,814 21,193 12,467 NET INTEREST CHARGES: Interest on long-term debt 77,382 14,228 - - - AFUDC and capitalized interest (2,886) (3,189) - - - Other interest expense 18,891 1,298 1,959 20,442 9,464 Subsidiaries' preferred stock dividends - - - - - ----------- -------- ------- ------- -------- Net interest charges 93,387 12,337 1,959 20,442 9,464 ----------- -------- ------- ------- -------- INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 303,543 37,833 6,855 751 3,003 ----------- -------- ------- ------- -------- Cumulative effect of accounting change 21,102 10,618 NET INCOME 324,645 48,451 6,855 751 3,003 PREFERRED STOCK DIVIDEND REQUIREMENTS 2,732 3,188 - - - ----------- -------- ------- ------- -------- EARNINGS ON COMMON STOCK $ 321,913 $ 45,263 $ 6,855 $ 751 $ 3,003 =========== ======== ======= ======= ======== APOLLO PNBV OES TAX CREDIT CAPITAL OHIO EDISON VENTURES, INC. FUND IX TRUST ELIMINATIONS CONSOLIDATED -------------- ---------- ------- ------------ ------------ OPERATING REVENUES $ - $ - $ - $ (38,902) $2,925,832 OPERATING EXPENSES AND TAXES: Fuel and purchased power - - - - 966,892 Other operating costs - - - (35,718) 798,035 Provision for depreciation and amortization - - - - 438,121 General taxes - - - - 170,078 Income taxes (101) 1,375 - (900) 216,979 ----- -------- --- --------- ---------- Total expenses (101) 1,375 - (36,618) 2,590,105 ----- -------- ---- --------- ---------- OPERATING INCOME 101 (1,375) - (2,284) 335,727 Equity in subsidiary earnings - - - (53,007) - Other income 845 (4,106) - (23,206) 92,185 Other income taxes (453) - - (2,371) (24,194) ----- -------- --- --------- ---------- OTHER INCOME 392 (4,106) - (78,584) 67,991 ----- -------- --- --------- ---------- INCOME BEFORE NET INTEREST CHARGES 493 (5,481) - (80,868) 403,718 NET INTEREST CHARGES: Interest on long-term debt - - - (542) 91,068 AFUDC and capitalized interest - - - - (6,075) Other interest expense (3) - - (29,982) 22,069 Subsidiaries' preferred stock dividends - - - 3,731 3,731 ----- -------- --- --------- ---------- Net interest charges (3) - - (26,793) 110,793 ----- -------- --- --------- ---------- INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 496 (5,481) - (54,075) 292,925 ----- -------- --- --------- ---------- Cumulative effect of accounting change 31,720 NET INCOME 496 (5,481) - (54,075) 324,645 PREFERRED STOCK DIVIDEND REQUIREMENTS - - - (3,188) 2,732 ----- -------- ---- --------- ---------- EARNINGS ON COMMON STOCK $ 496 $ (5,481) $ - $ (50,887) $ 321,913 ===== ======== ==== ========= ========== 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 ending December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 OHIO EDISON COMPANY CONSOLIDATING STATEMENT OF RETAINED EARNINGS As of December 31, 2003 (In thousands $)
Ohio Penn Edison Power OES OES OES OES Corporate Company Capital, Inc. Finance, Inc. Nuclear, Inc. Ventures, Inc. ---------- -------- ------------ ------------- ------------- ------------- RETAINED EARNINGS: Balance - Beginning of Period $ 800,021 $ 50,916 $ 42,721 $ 1,737 $ 6,506 $ 2,118 Net Income 324,645 48,451 6,855 751 3,003 496 ---------- -------- -------- ------- ------- ------- Subtotal 1,124,666 99,367 49,576 2,488 9,509 2,614 Common Stock Dividends Declared (599,000) (42,000) (45,000) - - - Preferred Stock Dividends Declared (2,732) (3,188) - - - - Other - - - - - - ---------- -------- -------- ------- ------- ------- Balance - End of Period $ 522,934 $ 54,179 $ 4,576 $ 2,488 $ 9,509 $ 2,614 ACCUMULATED OTHER COMPREHENSIVE INCOME: Balance - Beginning of Period $ (59,495) $ (9,932) $ - $ - $ - $ - Net Changes 20,802 (1,851) - - - - ---------- -------- -------- ------- ------- ------- Balance - End of Period $ (38,693) $(11,783) $ - $ - $ - $ - ========== ======== ======== ======= ======= ======= Apollo PNBV Ohio Tax Credit Capital Edison Fund IX Trust Eliminations Consolidated ---------- -------- ------------ ------------ RETAINED EARNINGS: Balance - Beginning of Period $ (7,671) $ - $ (96,327) $ 800,021 Net Income (5,481) - (54,075) 324,645 -------- --- --------- --------- Subtotal (13,152) - (150,402) 1,124,666 Common Stock Dividends Declared - - 87,000 (599,000) Preferred Stock Dividends Declared 3,188 (2,732) Other - - - - -------- --- --------- --------- Balance - End of Period $(13,152) $ - $ (60,214) $ 522,934 ACCUMULATED OTHER COMPREHENSIVE INCOME: Balance - Beginning of Period $ - $ - $ 9,932 $ (59,495) Net Changes - - 1,851 20,802 -------- --- --------- --------- Balance - End of Period $ - $ - $ 11,783 $ (38,693) ======== === ========= ========= 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 ending December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 OHIO EDISON COMPANY CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2003 (In thousands $)
Ohio Penn Edison Power OES OES OES Corporate Company Capital, Inc. Finance, Inc. Nuclear, Inc. --------- ------- ------------ ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 324,645 $ 48,451 $ 6,855 $ 751 $ 3,003 Adjustments to reconcile net income to net cash from operating activities-- Provision for depreciation and amortization 383,878 53,806 173 - 264 Nuclear fuel and lease amortization 28,570 15,947 - - - Undistributed subsidiary earnings 33,993 - - - - Cumulative effect of accounting change (35,959) (18,150) - - - Deferred income taxes, net (72,155) (2,816) (67) (11) 1,912 Investment tax credits, net (12,335) (2,412) - - - Receivables 175,158 16,276 31,296 (111) (89) Materials and supplies 1,571 (3,609) - - - Accounts payable 54,525 (11,163) 22,783 11,599 86 Other 115,679 32,182 (152) 2 (1) --------- -------- -------- -------- ------- Net cash provided from operating activities 997,570 128,512 60,888 12,230 5,175 --------- -------- -------- -------- ------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing-- Common stock - - - - - Long-term debt 365,000 - - - - Short-term borrowings, net - 11,334 - - - Redemptions and Repayments-- Common stock - - - - - Preferred stock - (750) - - - Long-term debt (483,551) (41,155) - - (5,200) Short-term borrowings, net (255,024) - (10,035) - - Dividend Payments-- Common stock (599,000) (42,000) (45,000) - - Preferred stock (2,732) (3,188) - - - --------- -------- -------- -------- ------- Net cash provided from (used for) financing activities (975,307) (75,759) (55,035) - (5,200) --------- -------- -------- -------- ------- CASH FLOWS FROM INVESTING ACTIVITIES: Property addition (118,155) (70,864) - - - Loan payments from (to) associated companies, net 95,162 34,660 (11,294) (13,673) (757) Other (12,932) (17,731) 5,427 - - --------- -------- -------- -------- ------- Net cash provided from (used for) investing activities (35,925) (53,935) (5,867) (13,673) (757) --------- -------- -------- -------- ------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ (13,662) $ (1,182) $ (14) $ (1,443) $ (782) ========= ======== ======== ======== ======= Apollo PNBV Ohio OES Tax Credit Capital Edison Ventures, Inc. Fund IX Trust Eliminations Consolidated ------------- ---------- --------- ------------- ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 496 $ (5,481) $ - $ (54,075) $ 324,645 Adjustments to reconcile net income to net cash from operating activities-- Provision for depreciation and amortization - - - - 438,121 Nuclear fuel and lease amortization - - - (5,200) 39,317 Undistributed subsidiary earnings - - - (33,993) - Cumulative effect of accounting change - - - - (54,109) Deferred income taxes, net (404) - - - (73,541) Investment tax credits, net - - - - (14,747) Receivables (945) 6,568 (2,757) (54,904) 170,492 Materials and supplies - - - - (2,038) Accounts payable 1,099 (2) 2,652 51,404 132,983 Other 564 845 - 1,380 150,499 ------- -------- ------- --------- ---------- Net cash provided from operating activities 810 1,930 (105) (95,388) 1,111,622 ------- -------- ------- --------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing-- Common stock - - 22,481 (22,481) - Long-term debt - - 349,613 (349,613) 365,000 Short-term borrowings, net - - - (11,334) - Redemptions and Repayments-- Common stock - (189) - 189 - Preferred stock - - - - (750) Long-term debt - - - 10,400 (519,506) Short-term borrowings, net - (2,242) - 42,513 (224,788) Dividend Payments-- Common stock - - - 87,000 (599,000) Preferred stock - - - 3,188 (2,732) ------- -------- ------- --------- ---------- Net cash provided from (used for) financing activities - (2,431) 372,094 (240,138) (981,776) ------- -------- ------- --------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES: Property addition - - - - (189,019) Loan payments from (to) associated companies, net (2,750) (3,768) - (31,179) 66,401 Other 909 3,739 (371,974) 366,705 (25,857) ------- -------- ------- --------- ---------- Net cash provided from (used for) investing activities (1,841) (29) (371,974) 335,526 (148,475) ------- -------- ------- --------- ---------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $(1,031) $ (530) $ 15 $ - $ (18,629) ======= ======== ======= ========= ========== 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 ending December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 CLEVELAND ELECTRIC ILLUMINATING COMPANY CONSOLIDATING BALANCE SHEETS As of December 31, 2003 (In thousands $)
Cleveland Centerior CEI Shippingport Electric Cleveland Electric Funding Financing Capital Illuminating ASSETS Illuminating Corp Trust Trust Eliminations Consolidated ------------------ -------- --------- ------------ ------------ ------------ UTILITY PLANT In service $ 4,232,335 $ - $ - $ - $ - $ 4,232,335 Less--Accumulated provision for depreciation (1,857,588) - - - - (1,857,588) ----------- -------- ----- -------- --------- ----------- 2,374,747 - - - - 2,374,747 Construction work in progress 181,235 - - - - 181,235 ----------- -------- ----- -------- --------- ----------- 2,555,982 - - - - 2,555,982 ----------- --------- ------- -------- --------- ----------- OTHER PROPERTY AND INVESTMENTS: Investment in lessor notes - - - 605,915 - 605,915 Nuclear plant decommissioning trusts 313,621 - - - - 313,621 Long-term notes receivable from associated companies 107,946 - - - - 107,946 Other 450,505 - - - (426,869) 23,636 ----------- -------- ------- -------- --------- ----------- 872,072 - - 605,915 (426,869) 1,051,118 ----------- -------- ------- -------- --------- ----------- CURRENT ASSETS: Cash and cash equivalents 24,722 - - 60 - 24,782 Receivables Customers 10,313 - - - - 10,313 Associated companies 74,982 - - - (34,441) 40,541 Other 66,686 106,742 - 11,751 - 185,179 Notes receivable from associated companies 8,831 4,500 - - (12,849) 482 Material and supplies 50,616 - - - - 50,616 Prepayments and other 4,511 - - - - 4,511 ----------- -------- ------- -------- --------- ----------- 240,661 111,242 - 11,811 (47,290) 316,424 ----------- -------- ------- -------- --------- ----------- DEFERRED CHARGES: Regulatory assets 1,056,050 - - - - 1,056,050 Goodwill 1,693,629 - - - - 1,693,629 Property taxes 77,122 - - - - 77,122 Other 23,123 - - - - 23,123 ----------- -------- ------- -------- ---------- ----------- 2,849,924 - - - - 2,849,924 ----------- -------- ------- -------- --------- ----------- TOTAL ASSETS $ 6,518,639 $111,242 $ - $617,726 $(474,159) $ 6,773,448 =========== ======== ======= ======== ========= =========== Note: Upon adoption of FIN46, "Consolidation at Variable Interest Entities", in December 2003, the Shippingport Capital Trust was consolidated into Cleveland Electric Illuminating. The notes to the consolidated financial statements of Cleveland Electric Illuminating Company, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 CLEVELAND ELECTRIC ILLUMINATING COMPANY CONSOLIDATING BALANCE SHEETS As of December 31, 2003 (In thousands $)
Cleveland Centerior CEI Shippingport Electric CAPITALIZATION AND LIABILITIES Cleveland Electric Funding Financing Capital Illuminating Illuminating Corp Trust Trust Eliminations Consolidated ------------------ ---------- --------- ----------- ------------ ------------ CAPITALIZATION: Common stockholder's equity $ 1,778,827 $ 52,883 $ - $ 32,094 $ (84,977) $ 1,778,827 Preferred stock not subject to mandatory redemption 96,404 - - - - 96,404 Long-term debt and other long-term obligations-- Preferred stock subject to mandatory redemption 4,014 - - - - 4,014 Subordinated debentures to affiliated trusts 103,093 - - - - 103,093 Notes payable to associated companies - - - 572,829 (373,986) 198,843 Other 1,578,693 - - - - 1,578,693 ----------- -------- --- -------- --------- ----------- 3,561,031 52,883 - 604,923 (458,963) 3,759,874 ----------- -------- --- -------- --------- ----------- CURRENT LIABILITIES: Currently payable long-term debt and preferred stock 387,414 - - - - 387,414 Accounts payable-- Associated companies 241,245 34,993 - 4,018 (34,441) 245,815 Other 7,342 - - - - 7,342 Notes payable to associated companies 175,253 16,967 - 8,785 (12,849) 188,156 Accrued taxes 196,450 6,072 - - - 202,522 Accrued interest 37,872 - - - - 37,872 Lease market valuation liability 60,200 - - - - 60,200 Other 76,395 327 - - - 76,722 ----------- -------- --- -------- --------- ----------- 1,182,171 58,359 - 12,803 (47,290) 1,206,043 ----------- -------- --- -------- --------- ----------- NONCURRENT LIABILITIES: Accumulated deferred income taxes 486,048 - - - - 486,048 Accumulated deferred investment tax credits 65,996 - - - - 65,996 Asset retirement obligation 254,834 - - - - 254,834 Retirement benefits 105,101 - - - - 105,101 Lease market valuation liability 728,400 - - - - 728,400 Other 135,058 - - - 32,094 167,152 ----------- -------- --- -------- --------- ----------- 1,775,437 - - - 32,094 1,807,531 ----------- -------- --- -------- --------- ----------- TOTAL CAPITALIZATION AND LIABILITIES $ 6,518,639 $111,242 $ - $617,726 $(474,159) $ 6,773,448 =========== ======== === ======== ========= =========== Note: Upon adoption of FIN46, "Consolidation at Variable Interest Entities", in December 2003, the Shippingport Capital Trust was consolidated into Cleveland Electric Illuminating. The notes to the consolidated financial statements of Cleveland Electric Illuminating Company, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2003, are an integral part of the consolidating financial statements.
hibit F-2 CLEVELAND ELECTRIC ILLUMINATING CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2003 (In thousands $)
Cleveland Cleveland Electric Electric Centerior CEI Financing Illuminating Illuminating Funding Corp Trust Eliminations Consolidated ------------ ------------ -------------- ------------- ------------ OPERATING REVENUES $1,709,489 $ 11,295 $ - $ - $ 1,720,784 ---------- -------- ------ -------- ------------ OPERATING EXPENSES AND TAXES: Fuel and purchased power 595,279 - - - 595,279 Other operating expenses 477,328 51 - - 477,379 Provision for depreciation and amortization 198,307 - - - 198,307 General taxes 136,434 - - - 136,434 Income taxes 58,237 - - - 58,237 ---------- -------- ------ -------- ----------- Total expenses 1,465,585 51 - - 1,465,636 ---------- ----------- ------ -------- ----------- OPERATING INCOME 243,904 11,244 - - 255,148 EQUITY IN SUBSIDIARY EARNINGS 6,452 - - (6,452) - Other Income 171,826 - 9,278 (10,271) 170,833 Other income taxes (69,724) (3,324) - - (73,048) ---------- -------- ------ -------- ----------- OTHER INCOME 108,554 (3,324) 9,278 (16,723) 97,785 ---------- -------- ------ -------- ----------- INCOME BEFORE NET INTEREST CHARGES 352,458 7,920 9,278 (16,723) 352,933 NET INTEREST CHARGES: Subsidiary's preferred stock dividends - - - 4,500 4,500 Interest on long-term debt 153,467 - - 4,500 157,967 AFUDC - Borrowed Funds (8,232) - - - (8,232) Deferred Interest Income - - - - Other Interest Expense 10,190 1,746 - (10,271) 1,665 ---------- -------- ------ -------- ----------- Net interest charges 155,425 1,746 - (1,271) 155,900 ---------- -------- ------ -------- ----------- INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 197,033 6,174 9,278 (15,452) 197,033 Cumulative effect of accounting change 42,378 - - - 42,378 ---------- -------- ------ -------- ----------- NET INCOME 239,411 6,174 9,278 (15,452) 239,411 PREFERRED STOCK DIVIDEND REQUIREMENTS 7,526 - 9,000 (9,000) 7,526 ---------- -------- ------ -------- ----------- EARNINGS AVAILABLE FOR COMMON $ 231,885 $ 6,174 $ 278 $ (6,452) $ 231,885 ========== ======== ====== ======== ========== The notes to the consolidated financial statements of Cleveland Electric Illuminating Company, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 CLEVELAND ELECTRIC ILLUMINATING COMPANY CONSOLIDATING STATEMENT OF RETAINED EARNINGS As of December 31, 2003 (In thousands $)
Centerior CEI Cleveland Electric Cleveland Electric Funding Financing Illuminating Illuminating Corp Trust Eliminations Consolidated ------------------ -------- --------- ------------ ------------------ RETAINED EARNINGS: Balance - Beginning of Period $ 262,323 $ 154 $ 12 $ (166) $262,323 Net Income 239,411 6,174 9,278 (15,452) 239,411 --------- ------ ------- -------- -------- Subtotal 501,734 6,328 9,290 (15,618) 501,734 Cash Dividends on Common Stock - (2,534) (290) 2,824 - Cash Dividends on Preferred Stock (7,429) - (9,000) 9,000 (7,429) Other (93) - - - (93) --------- ------- ------- -------- -------- Balance - End of Period $ 494,212 $ 3,794 $ - $ (3,794) $494,212 ACCUMULATED OTHER COMPREHENSIVE INCOME: Balance - Beginning of Period $ (44,284) $ - $ - $ - $(44,284) Net Changes 46,937 - - - 46,937 --------- ------- ------- -------- -------- Balance - End of Period $ 2,653 $ - $ - $ - $ 2,653 ========= ======= ======= ======== ======== The notes to the consolidated financial statements of Cleveland Electric Illuminating Company, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 CLEVELAND ELECTRIC ILLUMINATING COMPANY CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2003 (In thousands $)
Cleveland Centerior CEI Shippingport Electric Cleveland Electric Funding Financing Capital Illuminating Illuminating Corp Trust Trust Eliminations Consolidated ------------------ --------- --------- ------------ ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $239,411 $ 6,174 $9,278 $ - $ (15,452) $ 239,411 Adjustments to reconcile net income to net cash from operating activities: Provision for depreciation and amortization 198,307 - - - - 198,307 Nuclear fuel and capital lease amortization 17,466 - - - - 17,466 Other amortization (16,278) - - - - (16,278) Deferred operating lease costs, net (78,214) - - - - (78,214) Deferred income taxes, net 27,139 - - - - 27,139 Amortization of investment tax credits (4,807) - - - - (4,807) Accrued retirement benefit obligations 7,630 - - - - 7,630 Accrued compensation, net (8,743) - - - - (8,743) Cumulative effect of accounting change (72,546) - - - - (72,546) Receivables (5,754) 44,138 387 (11,751) (43,359) (16,339) Materials and supplies 5,771 - - - - 5,771 Accounts payable (28,749) (47,718) - 4,018 17,591 (54,858) Accrued taxes 74,062 2,199 - - - 76,261 Accrued interest (13,895) - - - - (13,895) Prepayments and other current assets (294) - - - - (294) Other 40,902 (25) (375) - 18,322 58,824 -------- ------- ------ --------- --------- --------- Net cash provided from operating activities 381,408 4,768 9,290 (7,733) (22,898) 364,835 -------- ------- ------ --------- --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing- Long-term debt 296,905 - - 572,829 (572,829) 296,905 Equity contribution from parent 300,000 (18,867) - 32,094 (13,227) 300,000 Short-term borrowings, net - - - - - - Redemptions and repayments- Preferred stock (1,093) - - - - (1,093) Long-term debt (677,097) - - - - (677,097) Short-term borrowings, net (117,830) 16,633 - 8,785 (16,800) (109,212) Dividend payments Common stock - (2,534) (290) - 2,824 - Preferred stock (7,451) - (9,000) - 9,000 (7,451) -------- ------- ------ --------- --------- --------- Net cash provided from (used for) financing activities (206,566) (4,768) (9,290) 613,708 (591,032) (197,948) -------- ------- ------ --------- --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Property additions (134,899) - - - - (134,899) Loan payments from (to) associated companies, net (13,018) - - - 8,015 (5,003) Investment in lessor notes 44,732 - - (605,915) 605,915 44,732 Contributions to nuclear decommissioning trusts (29,024) - - - - (29,024) Other (48,293) - - - - (48,293) -------- ------- ------ --------- --------- --------- Net cash provided from (used for) investing activities (180,502) - - (605,915) 613,930 (172,487) -------- ------- -------- --------- --------- --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ (5,660) $ - $ - $ 60 $ - $ (5,600) ======== ======= ======== ========= ========= ========= The notes to the consolidated financial statements of Cleveland Electric Illuminating Company, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 TOLEDO EDISON COMPANY CONSOLIDATING BALANCE SHEETS As of December 31, 2003 (In thousands $)
Toledo Toledo Edison Toledo Edison Capital Company ASSETS Company Corp Eliminations Consolidated ------------- ------- ------------ ------------- UTILITY PLANT In service $ 1,714,870 $ - $ - $1,714,870 Less--Accumulated provision for depreciation (721,754) - - (721,754) ----------- -------- --------- ---------- 993,116 - - 993,116 Construction work in progress 145,240 - - 145,240 ----------- -------- --------- ---------- 1,138,356 - - 1,138,356 ----------- -------- --------- ---------- OTHER PROPERTY AND INVESTMENTS: Investment in lessor notes 222,731 2,096 (23,889) 200,938 Nuclear plant decommissioning trusts 240,634 - - 240,634 Long-term notes receivable from associated companies 163,626 - - 163,626 Other 2,119 - - 2,119 ----------- -------- --------- ---------- 629,110 2,096 (23,889) 607,317 ----------- -------- --------- ---------- CURRENT ASSETS: Cash and cash equivalents 2,237 - - 2,237 Receivables Customers 4,083 - - 4,083 Associated companies 29,158 - - 29,158 Other 14,386 - - 14,386 Notes receivable from associated companies 17,512 25,267 (23,463) 19,316 Material and supplies 35,147 - - 35,147 Prepayments and other 6,704 - - 6,704 ----------- -------- --------- ---------- 109,227 25,267 (23,463) 111,031 ----------- -------- --------- ---------- DEFERRED CHARGES: Regulatory assets 459,040 - - 459,040 Goodwill 504,522 - - 504,522 Property taxes 24,443 - - 24,443 Other 10,689 - - 10,689 ----------- -------- --------- ---------- 998,694 - - 998,694 ----------- -------- --------- ---------- TOTAL ASSETS $ 2,875,387 $ 27,363 $ (47,352) $2,855,398 =========== ======== ========= ========== 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 TOLEDO EDISON COMPANY CONSOLIDATING BALANCE SHEETS As of December 31, 2003 (In thousands $)
Toledo Toledo Edison Toledo Edison Capital Company LIABILITIES AND CAPITALIZATION Company Corp Eliminations Consolidated ------------- ---------- ------------ ------------- CAPITALIZATION: Common stockholders' equity $ 749,521 $ 26,543 $ (26,543) $ 749,521 Preferred stock not subject to mandatory redemption 126,000 - - 126,000 Long-term debt 270,072 - - 270,072 ---------- -------- --------- ---------- 1,145,593 26,543 (26,543) 1,145,593 ---------- -------- --------- ---------- CURRENT LIABILITIES: Currently payable long-term debt and preferred stock 283,650 - - 283,650 Short-term borrowings 70,000 - - 70,000 Accounts payable Associated companies 132,850 26 - 132,876 Other 2,816 - - 2,816 Notes payable to associated companies 309,416 - (23,463) 285,953 Accrued taxes 55,349 255 - 55,604 Accrued interest 12,412 - - 12,412 Lease market valuation liability 24,600 24,600 Other 37,270 - 29 37,299 ---------- -------- --------- ---------- 928,363 281 (23,434) 905,210 ---------- -------- --------- ---------- NONCURRENT LIABILITIES: Accumulated deferred income taxes 201,954 - - 201,954 Accumulated deferred investment tax credits 27,200 - - 27,200 Asset retirement obligation 181,839 - - 181,839 Nuclear plant decommissioning costs - - - - Other postretirement benefits 47,006 - - 47,006 Lease market valuation liability 292,600 - - 292,600 Other 53,457 539 - 53,996 ---------- -------- --------- ---------- 804,056 539 - 804,595 ---------- -------- --------- ---------- TOTAL LIABILITIES AND CAPITALIZATION $2,878,012 $ 27,363 $ (49,977) $2,855,398 ========== ======== ========= ========== 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 TOLEDO EDISON CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2003 (In thousands $)
TOLEDO TOLEDO TOLEDO EDISON EDISON EDISON CAPITAL CORP. ELIMINATIONS CONSOLIDATED --------- ------------- ------------ ------------ OPERATING REVENUES $ 932,847 $ - $ - $ 932,847 OPERATING EXPENSES AND TAXES: Fuel and purchased power 334,409 - - 334,409 Other operating expenses 382,133 - - 382,133 Provision for depreciation and amortization 140,614 - - 140,614 General taxes 50,742 - - 50,742 Income taxes (9,070) (4) (9,074) --------- ------ ------- --------- Total expenses 898,828 (4) - 898,824 --------- ------ ------- --------- OPERATING INCOME 34,019 4 - 34,023 EQUITY IN SUBSIDIARY EARNINGS 121 - (121) - Other Income 36,545 130 (13) 36,662 Other income taxes (14,467) - - (14,467) --------- ------ ------- --------- OTHER INCOME 22,199 130 (134) 22,195 --------- ------ ------- --------- INCOME BEFORE NET INTEREST CHARGES 56,218 134 (134) 56,218 NET INTEREST CHARGES: Interest on long-term debt 38,874 - - 38,874 AFUDC - Borrowed Funds (5,838) - - (5,838) Other interest expense 3,252 - - 3,252 --------- ------ ------- --------- Net interest charges 36,288 - - 36,288 --------- ------ ------- --------- INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 19,930 134 (134) 19,930 --------- ------ ------- --------- Cumulative effect of accounting change 25,550 - - 25,550 --------- ------ ------- --------- NET INCOME 45,480 134 (134) 45,480 --------- ------ ------- --------- PREFERRED STOCK DIVIDEND REQUIREMENTS 8,838 - - 8,838 --------- ------ ------- --------- EARNINGS AVAILABLE FOR COMMON $ 36,642 $ 134 $ (134) $ 36,642 ========= ====== ======= ========= 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 TOLEDO EDISON CONSOLIDATING STATEMENT OF RETAINED EARNINGS For the Year Ended December 31, 2003 (In thousands $)
Toledo Edison Toledo Edison Capital Toledo Edison Corporation Corporation Eliminations Consolidated ------------- ------------- ------------ ------------- Balance - Beginning of Period $ 76,978 $ 160 $ (160) $ 76,978 3 Net Income 45,480 134 (134) 45,480 --------- ------- ------ -------- Subtotal 122,458 294 (294) 122,458 Common Stock Dividends Declared - - - - Preferred Stock Dividends Declared (8,838) - - (8,838) Other - - - - --------- ------- ------- -------- Balance - End of Period $ 113,620 $ 294 $ (294) $113,620 ========= ======= ====== ======== ACCUMULATED OTHER COMPREHENSIVE INCOME: Balance - Beginning of Period $ (20,012) $ - $ - $(20,012) Net Changes 31,684 - - 31,684 --------- ------- ------ -------- Balance - End of Period $ 11,672 $ - $ - $ 11,672 ========= ======= ====== ======== 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 TOLEDO EDISON COMPANY CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2003 (In thousands $)
Toledo Toledo Edison Toledo Edison Capital Edison Corporate Corp. Eliminations Consolidated -------- ------------- ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 45,480 $ 134 $ (134) $ 45,480 Adjustments to reconcile net income to net cash from operating activities-- Provision for depreciation and amortization 140,613 0 0 140,613 Nuclear fuel and lease amortization 9,289 0 0 9,289 Deferred operating lease costs, net (37,001) 0 0 (37,001) Undistributed subsidiary earnings 0 257 (257) 0 Deferred income taxes, net 5,619 0 0 5,619 Amortization of investment tax credits, net (2,056) 0 0 (2,056) Accrued retirement benefit obligation 6,205 0 0 6,205 Accrued compensation, net (5,365) 0 0 (5,365) Cumulative effect of accounting change (43,751) 0 0 (43,751) Receivables 19,081 26 0 19,107 Materials and supplies 1,481 0 0 1,481 Accounts payable (53,791) 26 0 (53,765) Accrued taxes 20,959 (31) 0 20,928 Accrued interest (3,965) 0 0 (3,965) Prepayments & other current assets (3,249) 0 0 (3,249) Other (1,402) 0 4 (1,398) --------- ----- ------ --------- Net cash provided from operating activities 98,147 412 (387) 98,172 --------- ----- ------ --------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing-- Short-term borrowings, net 206,300 0 0 206,300 Redemptions and Repayments-- Long-term debt (190,794) 0 0 (190,794) Dividend Payments-- Preferred stock (8,844) 0 0 (8,844) --------- ----- ------ --------- Net cash provided from (used for) financing activities 6,662 0 0 6,662 --------- ----- ------ --------- CASH FLOWS FROM INVESTING ACTIVITIES: Property addition (84,924) 0 0 (84,924) Loan payments from (to) associated companies, net (18,791) (35) 0 (18,826) Investment in lessor notes 40,025 0 0 40,025 Contributions to nuclear decommissioning trusts (28,541) 0 0 (28,541) Other (31,019) (387) 387 (31,019) --------- ----- ------ --------- Net cash provided from (used for) investing activities (123,250) (422) 387 (123,285) --------- ----- ------ --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ (18,441) $ (10) $ - $ (18,451) ========= ===== ====== ========== 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Jersey Central Power and Light Company Consolidating Balance Sheet As of December 31, 2003 (In Thousands)
JCP&L JCP&L Preferred Jersey Central Power Transition Capital, Inc. & Light Company Funding LLC Consolidated -------------------- ----------- --------------- ASSETS UTILITY PLANT: In Service $ 3,642,467 $ - $ - Less - Total Accum Provision For Depreciation 1,367,042 ----------- --------- ------- Net Utility Plant excluding Construction Work In Progress 2,275,425 - - Construction Work In Progress 48,985 ------------ --------- ------- Net Utility Plant 2,324,410 - - ----------- --------- ------- OTHER PROPERTY & INVESTMENTS: Nuclear Plant Decommissioning Trust 125,945 Nuclear Fuel Disposal Trust 155,774 Long-term Notes Receivable from Associated Company 19,579 Investments in Subsidiaries 1,625 Other 18,744 - ----------- --------- ------- Total Other Property & Investments 321,667 - - ----------- --------- ------- CURRENT ASSETS: Cash and Cash Equivalents 270 1 - Receivables: Customers 198,061 Associated Companies 127,863 60,299 4,281 Other 46,411 - Material and Supplies, at average cost 2,480 Prepayments and Other 42,116 7,244 ----------- --------- ------- Total Current Assets 417,201 67,544 4,281 ----------- --------- ------- DEFERRED CHARGES: Goodwill 2,001,302 Regulatory Assets 2,271,586 Accumulated Deferred Income Taxes 318,368 - Other 8,646 286,628 ----------- --------- ------- Total Deferred Charges 4,599,902 286,628 - ----------- --------- ------- TOTAL ASSETS $ 7,663,180 $ 354,172 $ 4,281 =========== ========= ======= Eliminations Jersey Central Power and & Light Company Adjustments Consolidated ------------ ------------------- ASSETS UTILITY PLANT: In Service $ - $3,642,467 Less - Total Accum Provision For Depreciation 1,367,042 ---------- ---------- Net Utility Plant excluding Construction Work In Progress - 2,275,425 Construction Work In Progress 48,985 ---------- ---------- Net Utility Plant - 2,324,410 ---------- ---------- OTHER PROPERTY & INVESTMENTS: Nuclear Plant Decommissioning Trust 125,945 Nuclear Fuel Disposal Trust 155,774 Long-term Notes Receivable from Associated Company 19,579 Investments in Subsidiaries (1,625) - Other 18,744 ---------- ---------- Total Other Property & Investments (1,625) 320,042 ---------- ---------- CURRENT ASSETS: Cash and Cash Equivalents - 271 Receivables: Customers 198,061 Associated Companies (122,431) 70,012 Other - 46,411 Material and Supplies, at average cost 2,480 Prepayments and Other 49,360 ---------- ---------- Total Current Assets (122,431) 366,595 ---------- ---------- DEFERRED CHARGES: Goodwill 2,001,302 Regulatory Assets 286,628 2,558,214 Accumulated Deferred Income Taxes (318,368) - Other (286,793) 8,481 ---------- ---------- Total Deferred Charges (318,533) 4,567,997 ---------- ---------- TOTAL ASSETS $ (442,589) $7,579,044 ========== ========== The notes to the consolidated financial statements of JCP&L and JCP&L Transition Funding LLC, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Jersey Central Power and Light Company Consolidating Balance Sheet As of December 31, 2003 (In Thousands)
JCP&L JCP&L Preferred Jersey Central Power Transition Capital, Inc. & Light Company Funding LLC Consolidated -------------------- ----------- --------------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock $ 153,713 $ - $ - Other Paid-In Capital 3,029,894 1,601 - Accumulated Other Comprehensive Income/(Loss) (51,765) Retained Earnings 22,132 15 - ----------- -------- ------- Total Common Stockholder's Equity 3,153,974 1,616 - ----------- -------- ------- Preferred stock not subject to mandatory redemption 12,649 - Long-Term Debt and Other Long-Term Obligations 815,379 280,777 ----------- -------- ------- Total Capitalization 3,982,002 282,393 - ----------- -------- ------- CURRENT LIABILITIES: Currently Payable Long-Term Debt 160,332 15,589 Accounts Payable: Associated Companies 105,881 54,802 4,158 Other 105,815 Notes payable to associated companies 230,985 Accrued Taxes 791 3 125 Accrued Interest 13,460 1,385 (2) Other 58,103 ----------- -------- ------- Total Current Liabilities 675,367 71,779 4,281 ----------- -------- ------- NONCURRENT LIABILITIES: Accumulated Deferred Income Taxes 958,576 - Accumulated Deferred Investment Tax Credits 7,711 - Power Purchase Contract Loss Liability 1,473,070 Nuclear Fuel Disposal Costs 167,936 Asset Retirement Obligation 109,851 Retirement Benefits 159,219 Other 129,448 ----------- -------- ------- Total Noncurrent Liabilities 3,005,811 - - ----------- -------- ------- ----------- -------- ------- Total Capitalization & Liabilities $ 7,663,180 $354,172 $ 4,281 =========== ======== ======= Eliminations Jersey Central Power and & Light Company Adjustments Consolidated ------------ -------------------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock $ - $ 153,713 Other Paid-In Capital (1,601) 3,029,894 Accumulated Other Comprehensive Income/(Loss) (51,765) Retained Earnings (15) 22,132 ---------- ----------- Total Common Stockholder's Equity (1,616) 3,153,974 ---------- ----------- Preferred stock not subject to mandatory redemption - 12,649 Long-Term Debt and Other Long-Term Obligations (165) 1,095,991 ---------- ----------- Total Capitalization (1,781) 4,262,614 ---------- ----------- CURRENT LIABILITIES: Currently Payable Long-Term Debt 175,921 Accounts Payable: Associated Companies (122,431) 42,410 Other - 105,815 Notes payable to associated companies 230,985 Accrued Taxes 919 Accrued Interest - 14,843 Other (9) 58,094 ---------- ----------- Total Current Liabilities (122,440) 628,987 ---------- ----------- NONCURRENT LIABILITIES: Accumulated Deferred Income Taxes (318,368) 640,208 Accumulated Deferred Investment Tax Credits 7,711 Power Purchase Contract Loss Liability 1,473,070 Nuclear Fuel Disposal Costs 167,936 Asset Retirement Obligation 109,851 Retirement Benefits 159,219 Other 129,448 ---------- ----------- Total Noncurrent Liabilities (318,368) 2,687,443 ---------- ----------- ---------- ----------- Total Capitalization & Liabilities $ (442,589) $ 7,579,044 ========== =========== The notes to the consolidated financial statements of JCP&L and JCP&L Transition Funding LLC, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Jersey Central Power & Light Company Consolidating Statement of Income For the Year Ended December 31, 2003 (In Thousands)
JCP&L JCP&L Preferred Eliminations Jersey Central Power Jersey Central Power Transition Capital, Inc. and & Light Company & Light Company Funding LLC Consolidated Adjustments Consolidated -------------------- ----------- --------------- ------------ ------------------- OPERATING REVENUES $ 2,327,504 $ 36,848 $ - $ (149) $ 2,364,203 OPERATING EXPENSES AND TAXES: Purchased Power 1,504,707 (149) 1,504,558 Other Operating Expenses 368,014 27 368,041 ----------- -------- ------ ------ ----------- Total Operating and Maintenance Expenses 1,872,721 27 - (149) 1,872,599 Provision for Depreciation and Amortization 230,511 19,502 250,013 General Taxes 53,481 53,481 Income Taxes 41,655 - - 184 41,839 ----------- -------- ------ ------ ----------- Total Operating Expenses and Taxes 2,198,368 19,529 - 35 2,217,932 OPERATING INCOME 129,136 17,319 - (184) 146,271 Other Income 10,918 97 6,124 (6,291) 10,848 Equity Earnings 484 - (484) - Other Income Deductions 1,662 (438) (45) 167 1,346 Other Income Depreciation (63) (63) Taxes - Other Income Deductions (4,525) (4) (256) 184 (4,601) ----------- -------- ------ ------ ----------- OTHER INCOME 8,476 (345) 5,823 (6,424) 7,530 ----------- -------- ------ ------ ----------- INCOME BEFORE NET INTEREST CHARGES 137,612 16,974 5,823 (6,608) 153,801 ----------- -------- ------ ------ ----------- NET INTEREST CHARGES: Interest On Long-Term Debt 70,715 16,966 87,681 Allowance for Borrowed Funds Used During Construction (296) (296) Deferred Interest Income (8,639) (8,639) Other Interest Expense 7,815 - - (6,124) 1,691 Subsidiaries' Preferred Stock Dividend Requirements 5,347 5,347 ----------- -------- ------ ------ ----------- Net Interest Charges 69,595 16,966 - (777) 85,784 NET INCOME 68,017 8 5,823 (5,831) 68,017 Preferred Stock Dividend Requirements 500 - 5,347 (5,347) 500 Gain on Preferred Stock Reacquisition (612) - - - (612) ----------- -------- ------ ------ ----------- Earnings on Common Stock $ 68,129 $ 8 $ 476 $ (484) $ 68,129 =========== ======== ====== ====== =========== The notes to the consolidated financial statements of JCP&L and JCP&L Transition Funding LLC, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Jersey Central Power & Light Company Consolidating Statement of Retained Earnings For the Year Ended December 31, 2003 (Dollars in Thousands)
Jersey Central Power Jersey Central JCP&L JCP&L Eliminations & Light Company Power & Light Transition Preferred Capital, Inc and and Subsidiary Company Funding Consolidated Adjustments Companies Consolidated -------------- ---------- ---------------------- ------------ ----------------------- Balance at beginning of period $ 92,003 $ 7 $ 34 $ (41) $ 92,003 Net income 68,017 8 5,823 (5,831) 68,017 Cash dividends on common stock (138,000) - - - (138,000) Cash dividends on preferred stock (500) - - - (500) Cash dividends on preferred stock of subsidiary - - (5,347) 5,347 - Partnership distributions - - (510) 510 - Gain on reacquisition of cumulative preferred stock 612 - - - 612 -------- ---- -------- ------- --------- Balance at end of period $ 22,132 $ 15 $ - $ (15) $ 22,132 ======== ==== ======= ======= ========= The notes to the consolidated financial statements of JCP&L and JCP&L Transition Funding LLC, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Jersey Central Power & Light Company Consolidating Accumulated Other Comprehensive Income For the Year Ended December 31, 2003 (In Thousands)
JCP&L JCP&L Preferred Eliminations Jersey Central Power Jersey Central Power Transition Capital, Inc. and & Light Company & Light Company Funding LLC Consolidated Adjustments Consolidated -------------------- ----------- --------------- ------------ -------------------- Balance - Beginning of Period $ (865) $ - $ - $ - $ (865) Other comprehensive loss, net of tax: Minimum liability for unfunded retirement benefits, net of (47,880) $(32,998,000) of income taxes (47,880) Unrealized loss on derivative instruments (3,020) (3,020) ------- -------- Total other comprehensive loss (50,900) (50,900) -------- --- --- --- -------- Balance - End of Period $(51,765) $ - $ - $ - $(51,765) ======== === === === ======== The notes to the consolidated financial statements of JCP&L and JCP&L Transition Funding LLC, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Jersey Central Power & Light Company Consolidating Statement of Cash Flows For the Year Ended December 31, 2003 (In Thousands)
JCP&L JCP&L Preferred Eliminations Jersey Central Power Jersey Central Power Transition Capital, Inc. and & Light Company & Light Company Funding LLC Consolidated Adjustments Consolidated -------------------- ----------- --------------- ------------ ------------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 68,017 $ 8 $ 5,823 $ (5,831) $ 68,017 Adjustments to reconcile net cash from operating activities: Earnings of subsidiary (484) - 484 - Provision for depreciation and amortization 230,511 19,502 - - 250,013 Other amortization 64 - - 64 Deferred costs recoverable as regulatory assets (164,290) - - (164,290) Deferred income taxes, net 64,600 - - 64,600 Investment tax credits, net (2,228) - - (2,228) Receivables (89,623) (23) (1,342) 95,516 4,528 Materials and Supplies (1,139) - - (1,139) Accounts Payable (59,684) (153) 1,400 (95,516) (153,953) Retail rate refunds obligation payments (71,984) - (71,984) Disallowed purchased power costs 152,500 - 152,500 Accrued retirement benefit obligation 8,381 - 8,381 Accrued compensation 19,864 - 19,864 Other (4,101) 4,358 (25) 5,347 5,579 --------- -------- --------- -------- -------- Net cash provided by operating activities 150,404 23,692 5,856 - 179,952 --------- -------- --------- -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing - Long-term debt $ 150,000 - - 150,000 Short-term borrowings, net 230,985 - - 230,985 Redemptions and Repayments - Preferred stock - (125,244) - (125,244) Long-term debt (228,123) (23,692) - - (251,815) Dividend Payments - - - Preferred stock 112 (5,347) - (5,235) Common stock (138,000) - - (138,000) --------- -------- --------- -------- -------- Net cash used for financing activities 14,974 (23,692) (130,591) - (139,309) --------- -------- --------- -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Property Additions (122,930) - - - (122,930) Contributions to decommissioning trusts (2,630) - (2,630) Loan payments from (to) associated companies, net (63,641) 141,753 78,112 Other 19,272 - (17,019) - 2,253 --------- -------- --------- -------- -------- Net cash used for investing activities (169,929) - 124,734 - (45,195) --------- -------- --------- -------- -------- Net increase in cash and cash equivalents $ (4,551) $ - $ (1) $ - $ (4,552) ========= ======== ========= ======== ======== The notes to the consolidated financial statements of JCP&L and JCP&L Transition Funding LLC, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 JCP&L Preferred Capital, Inc. Consolidating Balance Sheet As of December 31, 2003 (In Thousands)
JCP&L Eliminations JCP&L Preferred JCP&L Preferred Capital and Capital, Inc. Capital, Inc. LP Adjustments Consolidated ---------------- -------- ------------ --------------- ASSETS UTILITY PLANT: In Service $ - $ - $ - $ - Less - Total Accum Provision For Depreciation - - ------- --- --- ------ Net Utility Plant excluding Construction Work In Progress - - - - 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 - - Investments in Subsidiaries - - - Other - - - ------- --- --- ------ Total Other Property & Investments - - - - ------- --- --- ------ CURRENT ASSETS: Cash and Cash Equivalents - - - - Receivables: Customers - - Associated Companies 4,281 - - 4,281 Other - - - Material and Supplies, at average cost - - Prepayments and Other - - - ------- --- --- ------ Total Current Assets 4,281 - - 4,281 ------- --- --- ------ DEFERRED CHARGES: Goodwill - - Regulatory Assets - - - Accumulated Deferred Income Taxes - - - Other - - - - ------- --- --- ------ Total Deferred Charges - - - - ------- --- --- ------ TOTAL ASSETS $ 4,281 $ - $ - $4,281 ======= === === ====== 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 JCP&L Preferred Capital, Inc. Consolidating Balance Sheet As of December 31, 2003 (In Thousands)
JCP&L Eliminations JCP&L Preferred JCP&L Preferred Capital and Capital, Inc. Capital,Inc. LP Adjustments Consolidated --------------- ------- ------------ --------------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock % $ - $ - $ - $ - Other Paid-In Capital - - - - Accumulated Other Comprehensive Income/(Loss) - - Retained Earnings - - - - ------- --- --- ------ Total Common Stockholder's Equity - - - - ------- --- --- ------ Preferred stock not subject to mandatory redemption - - - - Long-Term Debt and Other Long-Term Obligations - - - - ------- --- --- ------ Total Capitalization - - - - ------- --- --- ------ CURRENT LIABILITIES: Currently Payable Long-Term Debt - - - Accounts Payable: Associated Companies 4,158 - - 4,158 Other - - - Notes payable to associated companies - - Accrued Taxes 125 - 125 Accrued Interest (2) - - (2) Other - - - ------- --- --- ------ Total Current Liabilities 4,281 - - 4,281 ------- --- --- ------ NONCURRENT LIABILITIES: Accumulated Deferred Income Taxes - - - Accumulated Deferred Investment Tax Credits - - Power Purchase Contract Loss Liability - - Nuclear Fuel Disposal Costs - - Asset Retirement Obligation - - Retirement Benefits - - Other - - ------- --- --- ------ Total Noncurrent Liabilities - - - - ------- --- --- ------ Total Capitalization & Liabilities $ 4,281 $ - $ - $4,281 ======= === === ====== 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 JCP&L Preferred Capital, Inc. Consolidating Statement of Income For the Year Ended December 31, 2003 (In Thousands)
JCP&L Eliminations JCP&L Preferred JCP&L Preferred Capital and Capital, Inc. Capital, Inc. LP Adjustments Consolidated --------------- ------- ------------ --------------- OPERATING REVENUES $ - $ - $ - $ - OPERATING EXPENSES AND TAXES: Purchased Power - - Other Operating Expenses - - ----- ------ ------ ------ Total Operating and Maintenance Expenses - - - - Provision for Depreciation and Amortization - - General Taxes - Income Taxes - - - - ----- ------ ------ ------ Total Operating Expenses and Taxes - - - - OPERATING INCOME - - - - Other income 609 5,515 - 6,124 Equity Earnings 168 (168) - Other Income Deductions (45) - - (45) Other Income Depreciation - Taxes - Other Income Deductions (256) - - (256) ----- ------ ------ ------ OTHER INCOME 476 5,515 (168) 5,823 ----- ------ ------ ------ INCOME BEFORE NET INTEREST CHARGES 476 5,515 (168) 5,823 ----- ------ ------ ------ NET INTEREST CHARGES: Interest On Long-Term Debt - - Allowance for Borrowed Funds Used During Construction - Deferred Interest Income - Other Interest Expense - - - - Subsidiaries' Preferred Stock Dividend Requirements - - ----- ------ ------ ------ Net Interest Charges - - - - NET INCOME 476 5,515 (168) 5,823 Preferred Stock Dividend Requirements - 5,347 - 5,347 ----- ------ ------ ------ Earnings on Common Stock $ 476 $ 168 $ (168) $ 476 ===== ====== ====== ====== 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, 2003 are an integral part of the consolidating financial statements.
Exhibit F-2 JCP&L Preferred Capital, Inc. Consolidating Statement of Cash Flows For the Year Ended December 31, 2003 (In Thousands)
JCP&L Eliminations JCP&L Preferred JCP&L Preferred Capital and Capital, Inc. Capital, Inc. LP Adjustments Consolidated --------------- ------- ------------ --------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 476 $ 5,515 $ (168) $ 5,823 Adjustments to reconcile net cash from operating activities: Earnings of subsidiary (168) - 168 - Provision for depreciation and amortization - - - - Other amortization - - - Deferred costs recoverable as regulatory assets - - - Deferred income taxes, net - - - Investment tax credits, net - - - Receivables (1,342) - - (1,342) Materials and Supplies - - - Accounts Payable 1,400 - - 1,400 Retail rate refunds obligation payments - - Disallowed purchased power costs - - Accrued retirement benefit obligation - - Accrued compensation - - Other (275) 250 - (25) -------- --------- ------ --------- Net cash provided by operating activities 91 5,765 - 5,856 -------- --------- ------ --------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing - Long-term debt - - - Short-term borrowings, net - - - Redemptions and Repayments - - - Preferred stock - (125,244) - (125,244) Long-term debt - - - - Dividend Payments - - - - Preferred stock - (5,347) - (5,347) Common stock - - - -------- --------- ------ --------- Net cash used for financing activities - (130,591) - (130,591) -------- --------- ------ --------- CASH FLOWS FROM INVESTING ACTIVITIES: Property Additions - - - - Contributions to decommissioning trusts - - Loan payments from (to) associated companies, net 12,887 128,866 141,753 Other (12,979) (4,040) - (17,019) -------- --------- ------ --------- Net cash used for investing activities (92) 124,826 - 124,734 -------- --------- ------ --------- Net increase in cash and cash equivalents $ (1) $ - $ - $ $ (1) ======== ========= ====== ========= 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Metroplitan Edison Company Consolidating Balance Sheet As of December 31, 2003 (In Thousands)
Metropolitan Metropolitan Met-Ed York Haven Eliminations Edison Edison Preferred Capital II, Inc. Power and Company Company Consolidated Company Adjustments Consolidated ------------ ------------------------- --------- ----------- ------------ ASSETS UTILITY PLANT: In Service $1,810,533 $28,034 $1,838,567 Less - Total Accum Provision For Depreciation (759,403) (12,720) (772,123) ---------- -------- ---------- Net Utility Plant excluding Construction Work In Progress 1,051,130 15,314 1,066,444 Construction Work In Progress: Electric Plant 21,980 21,980 ---------- ---------- Total Construction Work In Progress 21,980 21,980 ---------- ------ ------- --------- ---------- Net Utility Plant 1,073,110 $ 0 15,314 $ 0 1,088,424 ---------- ------ ------- --------- ---------- OTHER PROPERTY & INVESTMENTS: Nuclear Plant Decommissioning Trust 192,409 192,409 Long-term Notes Receivable from Associated Company 9,892 9,892 Investments in Subsidiaries 27,905 (27,905) 0 Other 32,246 2,676 34,922 ---------- ------ ------- --------- ---------- Total Other Property & Investments 262,452 2,676 (27,905) 237,223 ---------- ------ ------- --------- ---------- CURRENT ASSETS: Cash and Cash Equivalents 120 1 121 Accounts Receivables: Customers 118,933 118,933 Associated Companies 45,660 1,162 (888) 45,934 Other 22,692 58 22,750 Notes Receivables: Associated Companies 10,467 10,467 Prepayments and Other 6,308 292 6,600 ---------- ------ ------- --------- ---------- Total Current Assets 193,713 1 11,979 (888) 204,805 ---------- ------ ------- --------- ---------- DEFERRED CHARGES: Regulatory Assets 1,028,432 1,028,432 Goodwill 884,279 884,279 Accumulated Deferred Income Taxes 391,628 (179) (391,449) 0 Other 30,824 30,824 ---------- ------ ------- --------- ---------- Total Deferred Charges 2,335,163 0 (179) (391,449) 1,943,535 ---------- ------ ------- --------- ---------- TOTAL ASSETS $3,864,438 $2,677 $27,114 $(420,242) $3,473,987 ========== ====== ======= ========= ========== The notes to the consolidated financial statements of Meted, which are incorporated by reference from the annual report on Form 10-K for the year end December 31, 2003, are an integral part of the consolidating financial statements. * As a result of adopting FIN 46R "Consolidation of Variable Interest Entitites" Meted Capital II LP and Meted Capital Trust were deconsolidated. The Company recognized an equity investment of $3 million and subordinated debentures to the trust of $96 million.
Exhibit F-2 Metroplitan Edison Company Consolidating Balance Sheet As of December 31, 2003 (In Thousands)
Metropolitan Metropolitan Met-Ed York Haven Eliminations Edison Edison Preferred Capital II, Inc. Power and Company Company Consolidated Company Adjustments onsolidated ----------- ------------------------- ---------- ------------ ----------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock Issued $1,298,130 $ 1 $1,163 ($1,164) $1,298,130 Other Paid-In Capital 0 2,901 21,002 (23,903) 0 Accumulated Other Comprehensive Income/(Loss) (32,474) (32,474) Retained Earnings 27,011 (479) 3,317 (2,838) 27,011 ---------- ------ ------- --------- ---------- Total Common Stockholder's Equity 1,292,667 2,423 25,482 (27,905) 1,292,667 ---------- ------ ------- --------- ---------- Company Obligated Trust Preferred Securities 0 Long-Term Debt and Other Long-Term Obligations Subordinated Debentures to Affiliated Trusts 95,711 95,711 Other 540,590 540,590 ---------- ------ ------- --------- ---------- Total Capitalization 1,928,968 2,423 25,482 (27,905) 1,928,968 ---------- ------ ------- --------- ---------- CURRENT LIABILITIES: Currently Payable Long-Term Debt 40,469 40,469 Accounts Payable: Associated Companies 45,872 85 390 (888) 45,459 Other 33,878 33,878 Notes Payable: Associated Companies 65,335 65,335 Accrued Taxes 8,555 169 38 8,762 Accrued Interest 11,848 11,848 Other 22,162 22,162 ---------- ------ ------- --------- ---------- Total Current Liabilities 228,119 254 428 (888) 227,913 ---------- ------ ------- --------- ---------- NONCURRENT LIABILITIES: Accumulated Deferred Income Taxes 687,422 1,167 (391,449) 297,140 Accumulated Deferred Invest Tax Credits 11,659 37 11,696 Power Purchase Contract Loss Liability 584,340 584,340 Nuclear Fuel Disposal Fee 37,936 37,936 Nuclear Plant Decommissioning Costs 12,854 12,854 Asset Retirement Obligation 210,178 210,178 Pensions & Other Postretirement Benefits 105,552 105,552 Other 57,410 57,410 ---------- ------ ------- --------- ---------- Total Deferred Credits 1,707,351 0 1,204 (391,449) 1,317,106 ---------- ------ ------- --------- ---------- ---------- ------ ------- --------- ---------- Total Capitalization & Liabilities $3,864,438 $2,677 $27,114 $(420,242) $3,473,987 ========== ====== ======= ========= ========== The notes to the consolidated financial statements of Meted, which are incorporated by reference from the annual report on Form 10-K for the year end December 31, 2003, are an integral part of the consolidating financial statements. * As a result of adopting FIN 46R "Consolidation of Variable Interest Entitites" Meted Capital II LP and Meted Capital Trust were deconsolidated. The Company recognized an equity investment of $3 million and subordinated debentures to the trust of $96 million.
Exhibit F-2 Metroplitan Edison Company Consolidating Statement of Income As of December 31, 2003 (In Thousands)
Metropolitan Metropolitan Met-Ed York Haven Eliminations Edison Edison Preferred Capital II, Inc Power and Company Company Consolidated Company Adjustments Consolidated ------------ ------------------------- --------- ------------ ------------ OPERATING REVENUES $970,929 $ 0 $7,405 $ (7,314) $971,020 OPERATING EXPENSES AND TAXES: Purchased Power 567,397 (7,314) 560,083 Other Operating Expenses 144,034 2,731 146,765 --------- ------ --------- -------- Total Operating and Maintenance Expenses 711,431 2,731 (7,314) 706,848 Provision for Depreciation and Amortization 85,113 1,401 86,514 General Taxes 66,471 736 67,207 Income Taxes 26,241 1,125 1 27,367 -------- ------ --------- -------- Total Operating Expenses and Taxes 889,256 5,993 (7,313) 887,936 OPERATING INCOME 81,673 1,412 (1) 83,084 Other income 38,666 4,514 113 (4,517) 38,776 Equity Earnings 1,534 0 (1,534) 0 Other Income Deductions 508 (5) 503 Other Income Depreciation 0 0 0 Taxes - Other Income Deductions (16,636) (4) 1 (16,639) -------- ------ ------ --------- -------- OTHER INCOME 24,072 4,505 113 (6,050) 22,640 -------- ------ ------ --------- -------- INCOME BEFORE NET INTEREST CHARGES 105,745 4,505 1,525 (6,051) 105,724 -------- ------ ------ --------- -------- NET INTEREST CHARGES: Interest On Long-Term Debt 36,557 104 36,661 Allowance for Borrowed Funds Used During Construction and Capitalized Interest (323) (323) Deferred Interest Income (1,187) (1,187) Other Interest Expense 9,745 613 (4,517) 5,841 Subsidiaries' Preferred Stock Dividend Requirements 3,779 3,779 -------- ------ ------ --------- -------- Net Interest Charges 44,792 717 0 (738) 44,771 INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 60,953 3,788 1,525 (5,313) 60,953 Cumulative Effect of Accounting Change 217 217 NET INCOME/ (LOSS) 61,170 3,788 1,525 (5,313) 61,170 Preferred Stock Dividend Requirements 0 3,779 (3,779) 0 -------- ------ ------ --------- -------- Earnings on Common Stock $ 61,170 $ 9 $1,525 $ (1,534) $ 61,170 ======== ====== ====== ========= ======== The notes to the consolidated financial statements of Metropolitan Edison, which are incorporated by reference from the annual report on Form 10-K for the year end December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Metroplitan Edison Company Consolidating Statement of Retained Earnings As of December 31, 2003 (In Thousands)
Metropolitan Metropolitan Met-Ed York Haven Eliminations Edison Edison Preferred Capital II, Inc. Power and Company Company Consolidated Company Adjustments Consolidated ------------ ------------------------- ---------- ------------ ------------ Balance at beginning of year $17,841 $ (261) $1,792 $(1,531) $17,841 Net Income 61,170 3,788 1,525 (5,313) 61,170 Cash dividends declared on common stock (52,000) (227) 227 (52,000) Cash dividends on cumulative preferred stock 0 (3,779) 3,779 0 ------- ------- ------ ------- ------- Balance at end of year $27,011 $ (479) $3,317 $(2,838) $27,011 ======= ======= ====== ======= ======= The notes to the consolidated financial statements of Meted, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Metropolitan Edison Company Consolidating Accumulated Other Comprehensive Income For the year ending December 31, 2003 (In Thousands)
Metropolitan Metropolitan Met-Ed York Haven Eliminations Edison Edison Preferred Capital II, Inc. Power and Company Company Consolidated Company Adjustments Consolidated ---------- -------------------------- ---------- ------------ ------------ Balance - Beginning of year $ (39) $0 ($39) Unrealized gain on derivative instruments 2 2 Electricity Hedging Option 78 78 Minimum liability for unfunded retirement benefits (32,515) (32,515) -------- -- -- -- -------- Balance - End of year $(32,474) $0 $0 $0 $(32,474) ======== == == == ======== The notes to the consolidated financial statements of Metropolitan Edison, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2003 are an integral part of the consolidating financial statements.
Exhibit F-2 Metropolitan Edison Company Consolidating Statement of Cash Flows For the year ending December 31, 2003 (In Thousands)
Metropolitan Metropolitan Met-Ed York Haven Eliminations Edison Edison Preferred Capital II, Inc Power and Company Company Consolidated Company Adjustments Consolidated ------------ ------------------------- ---------- ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 61,170 $ 3,788 $ 1,525 $(5,313) $ 61,170 Adjustments to reconcile net income to net cash from operating activities: Equity in earnings of subsidiary (1,534) 1,534 0 Provision for depreciation and amortization 85,113 1,401 86,514 Other amortization, net 0 Deferred costs recoverable as regulatory assets (15,321) (15,321) Deferred income taxes, net 46,784 (130) 46,654 Investment tax credits, net (822) (822) Cumulative effect of accounting change (371) (371) Receivables 11,506 (916) (210) 10,380 Accounts payable (20,722) 12 (488) 210 (20,988) Other (35,685) 101 752 104 (34,728) -------- ------- -------- ------- --------- Net cash provided from (used for) operating activities 130,118 3,901 2,144 (3,675) 132,488 CASH FLOWS FROM FINANCING ACTIVITIES: New Financing- Long-term debt 247,696 247,696 Short-term borrowings, net 0 Redemptions and Repayments- Preferred Stock 0 Long-term debt (260,466) (260,466) Short-term borrowings, net (22,964) (22,964) Dividend payments Common Stock (52,000) (52,000) Preferred Stock (3,675) 3,675 0 Common stock - internal 227 (227) 0 -------- ------- -------- ------- --------- Net cash provided from (used for) financing activities (87,507) (3,902) 0 3,675 (87,734) CASH FLOWS FROM INVESTING ACTIVITIES: Property additions (43,525) (33) (43,558) Contributions to nuclear decommissioning trusts (9,483) (9,483) Loan/payments from associated companies, net 2,526 (10,467) (7,941) Other 664 664 -------- ------- -------- ------- --------- Net Cash provided from (used for) investing activities (49,818) 0 (10,500) 0 (60,318) -------- ------- -------- ------- --------- Net increase (decrease) in cash and cash equivalent (7,207) (1) (8,356) 0 (15,564) Cash and cash equivalents at beginning of period 7,327 2 8,356 0 15,685 -------- ------- -------- ------- --------- Cash and cash equivalents at end of period $ 120 $ 1 $ 0 $ 0 $ 121 ======== ======= ======== ======= ========= The notes to the consolidated financial statements of Meted, which are incorporated by reference from the annual report on Form 10-K for the year end December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Met-Ed Preferred Capital II, Inc. Consolidated Consolidating Balance Sheet As of December 31, 2003 (In Thousands)
Met-Ed Eliminations Met-Ed Preferred Met-Ed Preferred Capital II LP and Capital II, Inc. Capital II, Inc Consolidated Adjustments Consolidated ---------------- ------------- ------------ --------------- ASSETS UTILITY PLANT: In Service Less - Total Accum Provision For Depreciation Net Utility Plant excluding Construction Work In Progress Construction Work In Progress: Electric Plant Total Construction Work In Progress Net Utility Plant OTHER PROPERTY & INVESTMENTS: Nuclear Plant Decommissioning Trust Long-term Notes Receivable from Associated Company Investments in Subsidiaries Other $2,676 $2,676 ------ -- -- ------ Total Other Property & Investments 2,676 $0 $0 2,676 ------ -- -- ------ CURRENT ASSETS: Cash and Cash Equivalents 1 1 Accounts Receivables: Customers Associated Companies Other Notes Receivables: Associated Companies Prepayments and Other ------ -- -- ------ Total Current Assets 1 0 1 ------ -- -- ------ DEFERRED CHARGES: Regulatory Assets Goodwill Accumulated Deferred Income Taxes Other ------ -- -- ------ Total Deferred Charges 0 0 0 0 ------ -- -- ------ TOTAL ASSETS $2,677 $0 $0 $2,677 ====== == == ====== The notes to the consolidated financial statements of Meted, which are incorporated by reference from the annual report on Form 10-K for the year end December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Met-Ed Preferred Capital II, Inc. Consolidated Consolidating Balance Sheet As of December 31, 2003 (In Thousands)
Met-Ed Eliminations Met-Ed Preferred Met-Ed Preferred Capital II LP and Capital II, Inc. Capital II, Inc. Consolidated Adjustments Consolidated ----------------- -------------- ----------- ----------------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock Issued $ 1 $ 1 Other Paid-In Capital 2,901 2,901 Accumulated Other Comprehensive Income/ (Loss) Retained Earnings (479) (479) ------ -- -- ------ Total Common Stockholder's Equity 2,423 $0 $0 2,423 ------ -- -- ------ Company Obligated Trust Preferred Securities Long-Term Debt and Other Long-Term Obligations Subordinated Debentures to Affiliated Trusts Other ------ -- -- ------ Total Capitalization 2,423 0 0 2,423 ------ -- -- ------ CURRENT LIABILITIES: Currently Payable Long-Term Debt Accounts Payable: Associated Companies 85 85 Other Notes Payable: Associated Companies Accrued Taxes 169 169 Accrued Interest Other ------ -- -- ------ Total Current Liabilities 254 0 0 254 ------ -- -- ------ NONCURRENT LIABILITIES: Accumulated Deferred Income Taxes Accumulated Deferred Invest Tax Credits Power Purchase Contract Loss Liability Nuclear Fuel Disposal Fee Nuclear Plant Decommissioning Costs Asset Retirement Obligation Pensions & Other Postretirement Benefits Other ------ -- -- ------ Total Deferred Credits 0 0 0 0 ------ -- -- ------ Total Capitalization & Liabilities $2,677 $0 $0 $2,677 ====== == == ====== The notes to the consolidated financial statements of Meted, which are incorporated by reference from the annual report on Form 10-K for the year end December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Meted Preferred Capital II, Inc. Consolidated Consolidating Statement of Income For the year ending December 31, 2003 (In Thousands)
Met-Ed Eliminations Met-Ed Preferred Met-Ed Preferred Capital II LP and Capital II, Inc. Capital II, Inc. Consolidated Adjustments Consolidated ----------------- ------------- ------------ ---------------- OPERATING REVENUES $ 0 OPERATING EXPENSES AND TAXES: Purchased Power 0 Other Operating Expenses 0 ------ Total Operating and Maintenance Expenses 0 Provision for Depreciation and Amortization 0 General Taxes 0 Income Taxes 0 ------ Total Operating Expenses and Taxes 0 OPERATING INCOME 0 Other income $4,514 4,514 Equity Earnings $ 18 $ (18) 0 Other Income Deductions (5) (5) Other Income Depreciation 0 Taxes - Other Income Deductions (4) (4) ----- ------ ----- ------ OTHER INCOME 9 4,514 (18) 4,505 ----- ------ ----- ------ INCOME BEFORE NET INTEREST CHARGES 9 4,514 (18) 4,505 ----- ------ ----- ------ NET INTEREST CHARGES: Interest On Long-Term Debt 104 104 Allowance for Borrowed Funds Used During 0 Construction and Capitalized Interest 0 Deferred Interest Income 0 Other Interest Expense 613 613 Subsidiaries' Preferred Stock Dividend Requirements 0 ----- ------ ----- ------ Net Interest Charges 0 717 0 717 INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 9 3,797 (18) 3,788 Cumulative Effect of Accounting Change 0 NET INCOME 9 3,797 (18) 3,788 Preferred Stock Dividend Requirements 113 3,779 (113) 3,779 ----- ------ ----- ------ Earnings on Common Stock $(104) $ 18 $ 95 $ 9 ===== ====== ===== ====== The notes to the consolidated financial statements of Metropolitan Edison, which are incorporated by reference from the annual report on Form 10-K for the year end December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Met-Ed Preferred Capital II, Inc. Consolidated Consolidating Statement of Retained Earnings As of December 31, 2003 (In Thousands)
Met-Ed Eliminations Met-Ed Preferred Met-Ed Preferred Capital II LP and Capital II, Inc. Capital II, Inc. Consolidated Adjustments Consolidated ---------------- ------------- ------------ ---------------- Balance at beginning of year $ (261) $0 $0 $ (261) Net Income/(Loss) 3,788 0 0 3,788 Cash dividends declared on common stock (227) 0 0 (227) Cash dividends on cumulative preferred stock (3,779) 0 0 (3,779) ------- -- -- ------- Balance at end of year $ (479) $0 $0 $ (479) ======= == == ======= The notes to the consolidated financial statements of Meted, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Meted Preferred Capital II, Inc. Consolidated Consolidating Statement of Cash Flows For the year ending December 31, 2003 (In Thousands)
Meted Meted Eliminations Meted Preferred Capital II, LP and Preferred Capital II, Inc Capital II, Inc. Consolidated Adjustments Consolidated ---------------- -------------- ------------ ------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 9 $ 3,797 $(18) $3,788 Adjustments to reconcile net income to net cash from operating activities: Equity in earnings of subsidiary (18) 18 0 Accounts payable 12 12 Other (3) 104 101 ----- ------- ---- ------ Net cash provided from (used for) operating activities 0 3,901 0 3,901 CASH FLOWS FROM FINANCING ACTIVITIES: Dividend payments Preferred Stock (3,675) (3,675) Partnership distribution - internal 227 (227) 0 0 Common stock - internal (227) 0 0 (227) ----- ------- ---- ------ Net cash provided from (used for) financing activities 0 (3,902) 0 (3,902) CASH FLOWS FROM INVESTING ACTIVITIES: Other ----- ------- ---- ------ Net Cash provided from (used for) investing activities 0 0 0 0 ----- ------- ---- ------ Net increase (decrease) in cash and cash equivalents 0 (1) 0 (1) Cash and cash equivalents at beginning of period 1 1 0 2 ----- ------- ---- ------ Cash and cash equivalents at end of period $ 1 $ 0 $ 0 $1 ===== ======= ==== ====== The notes to the consolidated financial statements of Meted, which are incorporated by reference from the annual report on Form 10-K for the year end December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Met-Ed Capital II LP Consolidated Consolidating Balance Sheet As of December 31, 2003 (In Thousands)
Met-Ed Eliminations Met-Ed Met-Ed Capital and Capital II LP Capital II LP Trust Adjustments Consolidated ------------- ------- ------------- ------------- ASSETS UTILITY PLANT: In Service $0 Less - Total Accum Provision For Depreciation 0 -- Net Utility Plant excluding Construction Work In Progress 0 Construction Work In Progress: Electric Plant 0 -- Total Construction Work In Progress 0 -- Net Utility Plant 0 -- OTHER PROPERTY & INVESTMENTS: Nuclear Plant Decommissioning Trust 0 Long-term Notes Receivable from Associated Company $100,000 $(100,000) 0 Investments in Subsidiaries $ (418) 418 0 Other 0 -------- -------- --------- -- Total Other Property & Investments (418) 100,000 (99,582) 0 -------- -------- --------- -- CURRENT ASSETS: Cash and Cash Equivalents 1 (1) 0 Accounts Receivables: Customers 0 Associated Companies 0 Other 103,093 (103,093) 0 Notes Receivables: Associated Companies 0 Prepayments and Other 0 -------- -------- --------- -- Total Current Assets 103,094 (103,094) 0 -------- -------- --------- -- DEFERRED CHARGES: Regulatory Assets 0 Goodwill 0 Accumulated Deferred Income Taxes 0 Other 0 -------- -------- --------- -- Total Deferred Charges 0 0 0 0 -------- -------- --------- -- TOTAL ASSETS $102,676 $100,000 $(202,676) $0 ======== ======== ========= == The notes to the consolidated financial statements of Meted, which are incorporated by reference from the annual report on Form 10-K for the year end December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Met-Ed Capital II LP Consolidated Consolidating Balance Sheet As of December 31, 2003 (In Thousands)
Met-Ed Eliminations Met-Ed Met-Ed Capital and Capital II LP Capital II LP Trust Adjustments Consolidated ------------- ------- ------------ ------------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock $ 0 $0 Other Paid-In Capital $ 3,117 (3,117) 0 Accumulated Other Comprehensive Income/ (Loss) 0 Retained Earnings (441) $ (417) 858 0 -------- -------- --------- -- Total Common Stockholder's Equity 2,676 (417) (2,259) 0 -------- -------- --------- -- Company Obligated Trust Preferred Securities 100,000 (100,000) 0 Long-Term Debt and Other Long-Term Obligations Subordinated Debentures to Affiliated Trusts 100,000 (100,000) 0 Other 0 -------- -------- --------- -- Total Capitalization 102,676 99,583 (202,259) 0 -------- -------- --------- -- CURRENT LIABILITIES: Currently Payable Long-Term Debt 0 Accounts Payable: Associated Companies 0 Other 417 (417) 0 Notes Payable: Associated Companies 0 Accrued Taxes 0 Accrued Interest 0 Other 0 -------- -------- --------- -- Total Current Liabilities 0 417 (417) 0 -------- -------- --------- -- NONCURRENT LIABILITIES: Accumulated Deferred Income Taxes 0 Accumulated Deferred Invest Tax Credits 0 Power Purchase Contract Loss Liability 0 Nuclear Fuel Disposal Fee 0 Nuclear Plant Decommissioning Costs 0 Asset Retirement Obligation 0 Pensions & Other Postretirement Benefits 0 Other 0 -------- -------- --------- -- Total Deferred Credits 0 0 0 0 -------- -------- --------- -- Total Capitalization & Liabilities $102,676 $100,000 $(202,676) $0 ======== ======== ========= == The notes to the consolidated financial statements of Meted, which are incorporated by reference from the annual report on Form 10-K for the year end December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Meted Capital II LP Consolidated Consolidating Statement of Income For the year ending December 31, 2003 (In Thousands)
Met-Ed Eliminations Met-Ed Met-Ed Capital and Capital II LP Capital II LP Trust Adjustments Consolidated ------------- ------- ------------ ------------- OPERATING REVENUES $ 0 OPERATING EXPENSES AND TAXES: Purchased Power 0 Other Operating Expenses 0 ------ Total Operating and Maintenance Expenses 0 Provision for Depreciation and Amortization 0 General Taxes 0 Income Taxes 0 ------ Total Operating Expenses and Taxes 0 OPERATING INCOME 0 Other income $7,576 $7,350 $(10,412) 4,514 Equity Earnings (208) 208 0 Other Income Deductions 0 Other Income Depreciation 0 Taxes - Other Income Deductions 0 ------ ------ -------- ------ OTHER INCOME 7,368 7,350 (10,204) 4,514 ------ ------ -------- ------ INCOME BEFORE NET INTEREST CHARGES 7,368 7,350 (10,204) 4,514 ------ ------ -------- ------ NET INTEREST CHARGES: Interest On Long-Term Debt 104 104 Allowance for Borrowed Funds Used During 0 Construction and Capitalized Interest 0 Deferred Interest Income 0 Other Interest Expense 7,350 3,675 (10,412) 613 Subsidiaries' Preferred Stock Dividend Requirements 0 0 ------ ------ -------- ------ Net Interest Charges 7,350 3,779 (10,412) 717 INCOME BEFORE EXTRAORDINARY ITEM 18 3,571 208 3,797 Extraordinary Items 0 NET INCOME/ (LOSS) 18 3,571 208 3,797 Preferred Stock Dividend Requirements 113 3,779 (113) 3,779 ------ ------ -------- ------ Earnings/(Losses) on Common Stock $ (95) $ (208) $ 321 $ 18 ====== ====== ======== ====== The notes to the consolidated financial statements of Metropolitan Edison, which are incorporated by reference from the annual report on Form 10-K for the year end December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Met-Ed Capital II LP Consolidated Consolidating Statement of Retained Earnings As of December 31, 2003 (In Thousands)
Met-Ed Eliminations Met-Ed Met-Ed Capital and Capital II LP Capital II LP Trust Adjustments Consolidated ------------- ------- ------------ -------------- Balance at beginning of year $(232) $ (209) $ 441 $0 Net Income/(Loss) 18 3,571 (3,589) 0 Partnership distributions (227) 227 0 Cash dividends on cumulative preferred stock (3,779) 3,779 0 ----- ------- ------- -- Balance at end of year $(441) $ (417) $ 858 $0 ===== ======= ======= == The notes to the consolidated financial statements of Meted, which are incorporated by reference from the annual report on Form 10-K for the year ended December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Meted Capital II LP Consolidated Consolidating Statement of Cash Flows For the year ending December 31, 2003 (In Thousands)
Meted Eliminations Meted Meted Capital and Capital II LP Capital II, LP Trust Adjustments Consolidated -------------- ------- ------------ ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 18 $ 3,571 $ 208 $ 3,797 Adjustments to reconcile net income to net cash from operating activities: Equity in earnings of subsidiary 208 (208) 0 Other 0 104 104 ----- ------- ----- ------- Net cash provided from (used for) operating activities 226 3,675 0 3,901 CASH FLOWS FROM FINANCING ACTIVITIES: Dividend payments Preferred Stock (3,675) (3,675) Partnership distribution - internal (227) (227) ----- ------- ----- ------- Net cash provided from (used for) financing activities (227) (3,675) 0 (3,902) CASH FLOWS FROM INVESTING ACTIVITIES: Other ----- ------- ----- ------- Net Cash provided from (used for) investing activities 0 0 0 0 ----- ------- ----- ------- Net increase (decrease) in cash and cash equivalents (1) 0 0 (1) Cash and cash equivalents at beginning of period 1 0 0 1 ----- ------- ----- ------- Cash and cash equivalents at end of period $ 0 $ 0 $ 0 $ 0 ===== ======= ===== ======= The notes to the consolidated financial statements of Meted, which are incorporated by reference from the annual report on Form 10-K for the year end December 31, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Pennsylvania Electric Company Consolidating Balance Sheet December 31, 2003 (In Thousands)
Pennsylvania Penelec Nineveh Electric Preferred Capital II, Inc. Water Company Consolidated Company ------------ ------------------------- -------- ASSETS UTILITY PLANT: In Service $1,966,609 Less - Total Accum Provision For Depreciation (785,715) ---------- Net Utility Plant excluding Construction Work In Progress 1,180,894 Construction Work In Progress: Electric Plant 29,063 ---------- Total Construction Work In Progress 29,063 ---------- Net Utility Plant 1,209,957 ---------- OTHER PROPERTY & INVESTMENTS: Non Utility Generation Trust 43,864 Nuclear Plant Decommissioning Trust 102,673 Long-term Notes Receivable from Associated Company 13,794 Investments in Subsidiaries 3,591 Other 16,969 $2,666 ---------- ------ Total Other Property & Investments 180,891 2,666 ---------- ------ CURRENT ASSETS: Cash and Cash Equivalents 35 1 Receivables: Customers 124,462 Associated Companies 88,598 $1,767 Other 15,766 1 Prepayments and Other 2,511 ---------- ------ ------ Total Current Assets 231,372 1 1,768 ---------- ------ ------ DEFERRED CHARGES: Regulatory Assets 497,219 Goodwill 898,547 Accumulated Deferred Income Taxes 746,232 88 Other 18,523 ---------- ------ ------ Total Deferred Charges 2,160,521 0 88 ---------- ------ ------ TOTAL ASSETS $3,782,741 $2,667 $1,856 ========== ====== ====== Waverly Elec. Light Eliminations Pennsylvania and Power and Electric Company Company Adjustments Consolidated * ----------- ------------ ---------------- ASSETS UTILITY PLANT: In Service $15 $1,966,624 Less - Total Accum Provision For Depreciation (785,715) --- ---------- Net Utility Plant excluding Construction Work In Progress 15 1,180,909 Construction Work In Progress: Electric Plant 29,063 ---------- Total Construction Work In Progress 29,063 --- ---------- Net Utility Plant 15 1,209,972 --- ---------- OTHER PROPERTY & INVESTMENTS: Non Utility Generation Trust 43,864 Nuclear Plant Decommissioning Trust 102,673 Long-term Notes Receivable from Associated Company 13,794 Investments in Subsidiaries $ (3,591) 0 Other 19,635 --------- ---------- Total Other Property & Investments (3,591) 179,966 --------- ---------- CURRENT ASSETS: Cash and Cash Equivalents 0 36 Receivables: Customers 124,462 Associated Companies (1,767) 88,598 Other 0 15,767 Prepayments and Other 2,511 --- --------- ---------- Total Current Assets 0 (1,767) 231,374 --- --------- ---------- DEFERRED CHARGES: Regulatory Assets 497,219 Goodwill 898,547 Accumulated Deferred Income Taxes (729,678) 16,642 Other 18,523 --------- ----------- Total Deferred Charges (729,678) 1,430,931 --- --------- ---------- TOTAL ASSETS $15 $(735,036) $3,052,243 === ========= ========== 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, 2003, are an integral part of the consolidating financial statements. * As a result of adopting FIN 46R "Consolidation of Variable Interest Entitites" Penelec Capital II LP and Penelec Capital Trust were deconsolidated. The Company recognized an equity investment of $3 million and subordinated debentures to the trust of $95 million.
Exhibit F-2 Pennsylvania Electric Company Consolidating Balance Sheet December 31, 2003 (In Thousands)
Pennsylvania Penelec Nineveh Electric Preferred Capital II, Inc. Water Company Consolidated Company ------------ ------------------------- ------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock $ 105,812 $ 1 Other Paid-In Capital 1,215,667 2,907 $1,190 Accumulated Other Comprehensive Income/(Loss) (42,185) Retained Earnings 18,038 (489) (34) ---------- -------- ------ Total Common Stockholder's Equity 1,297,332 2,419 1,156 ---------- -------- ------ Company Obligated Trust Preferred Securities 0 Long-Term Debt and Other Long-Term Obligations Subordinated Debentures to Affiliated Trusts 95,520 Other 343,244 ---------- -------- ------ Total Capitalization 1,736,096 2,419 1,156 ---------- -------- ------ CURRENT LIABILITIES: Currently Payable Long-Term Debt 125,762 Accounts Payable: Associated Companies 57,536 54 9 Other 40,192 Notes Payable: Associated Companies 78,510 Accrued Taxes 8,002 194 509 Accrued Interest 12,580 114 Other 21,764 0 ---------- -------- ------ Total Current Liabilities 344,346 248 632 ---------- -------- ------ NONCURRENT LIABILITIES: Accumulated Deferred Income Taxes 729,647 31 Accumulated Deferred Invest Tax Credits 9,899 37 Asset Retirement Obligation 105,089 Nuclear Fuel Disposal Fee 18,968 Power Purchase Contract Loss Liability 670,482 Retirement Benefits 145,081 Other 23,133 ---------- ------ Total Deferred Credits 1,702,299 68 ---------- ------ ---------- -------- ------ Total Capitalization & Liabilities $3,782,741 $ 2,667 $1,856 ========== ======== ====== Waverly Elec. Light Eliminations Pennsylvania and Power and Electric Company Company Adjustments Consolidated * ----------- -------------- ----------------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock $15 $ (16) $ 105,812 Other Paid-In Capital (4,097) 1,215,667 Accumulated Other Comprehensive Income/(Loss) (42,185) Retained Earnings 523 18,038 --- --------- ---------- Total Common Stockholder's Equity 15 (3,591) 1,297,332 --- --------- ---------- Company Obligated Trust Preferred Securities 0 0 Long-Term Debt and Other Long-Term Obligations Subordinated Debentures to Affiliated Trusts 0 95,520 Other 343,244 --- --------- ---------- Total Capitalization 15 (3,591) 1,736,096 --- --------- ---------- CURRENT LIABILITIES: Currently Payable Long-Term Debt 125,762 Accounts Payable: Associated Companies (1,767) 55,831 Other 0 40,192 Notes Payable: Associated Companies 78,510 Accrued Taxes 8,705 Accrued Interest 0 12,694 Other 21,764 --- --------- ---------- Total Current Liabilities 0 (1,767) 343,458 --- --------- ---------- NONCURRENT LIABILITIES: Accumulated Deferred Income Taxes (729,678) 0 Accumulated Deferred Invest Tax Credits 9,936 Asset Retirement Obligation 105,089 Nuclear Fuel Disposal Fee 18,968 Power Purchase Contract Loss Liability 670,482 Retirement Benefits 145,081 Other 23,133 --------- ---------- Total Deferred Credits (729,678) 972,689 --------- ---------- --- --------- ---------- Total Capitalization & Liabilities $15 $(735,036) $3,052,243 === ========= ========== 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, 2003, are an integral part of the consolidating financial statements. * As a result of adopting FIN 46R "Consolidation of Variable Interest Entitites" Penelec Capital II LP and Penelec Capital Trust were deconsolidated. The Company recognized an equity investment of $3 million and subordinated debentures to the trust of $95 million.
Exhibit F-2 Pennsylvania Electric Company Consolidating Statement of Income For the year ending December 31, 2003 (In Thousands)
Waverly Penelec Preferred Nineveh Elec. Light Pennsylvania Capital II, Inc. Water and Power Electric Company Consolidated Company Company ---------------- ----------------- ------- ----------- OPERATING REVENUES $976,855 OPERATING EXPENSES AND TAXES: Purchased Power 609,015 Other Operating Expenses 164,474 -------- Total Operating and Maintenance Expenses 773,489 Provision for Depreciation and Amortization 53,754 General Taxes 66,999 Income Taxes 22,405 $(2) -------- --- Total Operating Expenses and Taxes 916,647 (2) OPERATING INCOME 60,208 2 Other income 3,230 $4,508 Equity Earnings 4 0 Other Income Deductions 1,140 (10) Other Income Depreciation (7) 0 Taxes - Other Income Deductions (2,432) (1) -------- ------ --- OTHER INCOME 1,935 4,497 0 -------- ------ --- INCOME BEFORE NET INTEREST CHARGES 62,143 4,497 2 -------- ------ --- NET INTEREST CHARGES: Interest On Long-Term Debt 29,458 107 Allowance for Borrowed Funds Used During Construction and Capitalized Interest (320) Deferred Interest Income 4,553 Other Interest Expense 8,215 611 0 Subsidiaries' Preferred Stock Dividend Requirements -------- ------ --- Net Interest Charges 41,906 718 0 INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 20,237 3,779 2 Cumulative Effect of Accounting Change 1,096 NET INCOME/ (LOSS) 21,333 3,779 2 Preferred Stock Dividend Requirements 0 3,777 0 -------- ------ --- -- Earnings on Common Stock $ 21,333 $ 2 $ 2 $0 ======== ====== === == Eliminations Pennsylvania and Electric Company Adjustments Consolidated ----------- --------------- OPERATING REVENUES $976,855 OPERATING EXPENSES AND TAXES: Purchased Power 609,015 Other Operating Expenses 164,474 -------- Total Operating and Maintenance Expenses 773,489 Provision for Depreciation and Amortization 53,754 General Taxes 66,999 Income Taxes 22,403 -------- Total Operating Expenses and Taxes 916,645 OPERATING INCOME 60,210 Other income $ (4,508) 3,230 Equity Earnings (4) 0 Other Income Deductions 1,130 Other Income Depreciation (7) Taxes - Other Income Deductions 0 (2,433) ---------- -------- OTHER INCOME (4,512) 1,920 ---------- -------- INCOME BEFORE NET INTEREST CHARGES (4,512) 62,130 ---------- -------- NET INTEREST CHARGES: Interest On Long-Term Debt 29,565 Allowance for Borrowed Funds Used During Construction and Capitalized Interest (320) Deferred Interest Income 4,553 Other Interest Expense (4,508) 4,318 Subsidiaries' Preferred Stock Dividend Requirements 3,777 3,777 ---------- -------- Net Interest Charges (731) 41,893 INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE (3,781) 20,237 Cumulative Effect of Accounting Change 1,096 NET INCOME/ (LOSS) (3,781) 21,333 Preferred Stock Dividend Requirements (3,777) 0 ---------- -------- Earnings on Common Stock $ (4) $ 21,333 ========== ======== 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Pennsylvania Electric Company Consolidating Statement of Retained Earnings For the year ending December 31, 2003 (In Thousands)
Waverly Pennsylvania Penelec Nineveh Elec. Light Electric Preferred Capital II, Inc. Water and Power Company Consolidated Company Company ------------ -------------------------- ------- ----------- Balance at beginning of year $ 32,705 $ (264) $(36) Net Income 21,333 3,779 2 $0 Cash dividends declared on common stock (36,000) (227) Cash dividends on cumulative preferred stock 0 (3,777) -------- ------- ---- -- Balance at end of year $ 18,038 $ (489) $(34) $0 ======== ======= ==== == Eliminations Pennsylvania and Electric Company Adjustments Consolidated ------------ ---------------- Balance at beginning of year $ 300 $ 32,705 Net Income (3,781) 21,333 Cash dividends declared on common stock 227 (36,000) Cash dividends on cumulative preferred stock 3,777 0 ------- -------- Balance at end of year $ 523 $ 18,038 ======== ======== 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Pennsylvania Electric Company Consolidating Accumulated Other Comprehensive Income For the year ending December 31, 2003 (In Thousands)
Waverly Pennsylvania Penelec Preferred Nineveh Elec. Light Eliminations Pennsylvania Electric Capital II, Inc. Water and Power and Electric Company Company Consolidated Company Company Adjustments Consolidated ------------ ----------------- ------- ----------- ------------ ---------------- Balance - Beginning of year $ (69) $0 $0 $0 $0 $ (69) Unrealized gain on derivative instruments 72 72 Minimum liability for unfunded retirement benefits (42,188) (42,188) -------- -- -- -- -- -------- Balance - End of year $(42,185) $0 $0 $0 $0 $(42,185) ======== == == == == ======== 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Pennsylvania Electric Company Consolidating Statement of Cash Flows For the year ending December 31, 2003 (In Thousands)
Waverly Penelec Nineveh Elec. Light Pennsylvania Preferred Capital II, Inc. Water and Power Electric Company Consolidated Company Company ---------------- ------------------------- ------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $21,333 $3,779 $2 $0 Adjustments to reconcile net income to net cash from operating activities: Equity in earnings of subsidiary (4) Provision for depreciation and amortization 53,754 Other amortization, net 0 Deferred costs recoverable as regulatory assets (37,218) Deferred income taxes, net 41,877 Investment tax credits, net (988) Cumulative effect of accounting change (1,873) Receivables 13,052 Accounts payable (84,717) 11 5 Accrued retirement benefit obligations 2,727 Other 7,807 106 (7) ------- ------ -- -- Net cash provided from (used for) operating activities 15,750 3,896 0 0 CASH FLOWS FROM FINANCING ACTIVITIES: New Financing- Long-term debt 0 Short-term borrowings, net 0 Redemptions and Repayments- Long-term debt (812) Short-term borrowings, net (11,917) Dividend Payments Common Stock (36,000) Preferred Stock Dividend Requirements 0 (3,670) Common stock - internal 227 (227) ------- ------ -- -- Net cash provided from (used for) financing activities (48,502) (3,897) 0 0 CASH FLOWS FROM INVESTING ACTIVITIES: Property additions (44,657) Nonutility generation trusts 66,327 Contributions to nuclear decommissioning trusts (101) Loan/payments from associated companies, net 1,721 Other (811) ------- ------ -- -- Net Cash provided from (used for) investing activities 22,479 0 0 0 ------- ------- -- -- Net increase (decrease) in cash and cash equivalents (10,273) (1) 0 0 Cash and cash equivalents at beginning of period 10,308 2 0 0 -------- ------ -- -- Cash and cash equivalents at end of period $ 35 $ 1 $0 $0 ======= ====== == == Eliminations Pennsylvania and Electric Company Adjustments Consolidated ------------ ---------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $(3,781) $ 21,333 Adjustments to reconcile net income to net cash from operating activities: Equity in earnings of subsidiary 4 Provision for depreciation and amortization 53,754 Other amortization, net 0 Deferred costs recoverable as regulatory assets (37,218) Deferred income taxes, net 41,877 Investment tax credits, net (988) Cumulative effect of accounting change (1,873) Receivables 13,052 Accounts payable (84,700) Accrued retirement benefit obligations 2,727 Other 107 8,012 ------- -------- Net cash provided from (used for) operating activities (3,670) 15,976 CASH FLOWS FROM FINANCING ACTIVITIES: New Financing- Long-term debt 0 Short-term borrowings, net 0 Redemptions and Repayments- Long-term debt (812) Short-term borrowings, net (11,917) Dividend Payments Common Stock (36,000) Preferred Stock Dividend Requirements 3,670 Common stock - internal 0 0 ------- -------- Net cash provided from (used for) financing activities 3,670 (48,729) CASH FLOWS FROM INVESTING ACTIVITIES: Property additions (44,657) Nonutility generation trusts 66,327 Contributions to nuclear decommissioning trusts (101) Loan/payments from associated companies, net 1,721 Other (811) ------- -------- Net Cash provided from (used for) investing activities 0 22,479 ------- -------- Net increase (decrease) in cash and cash equivalents 0 (10,274) Cash and cash equivalents at beginning of period 0 10,310 ------- -------- Cash and cash equivalents at end of period $ 0 $ 36 ======= ======== 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Penelec Preferred Capital II, Inc. Consolidated Consolidating Balance Sheet December 31, 2003 (In Thousands)
Penelec Penelec Eliminations Penelec Preferred Preferred Capital II LP and Capital II, Inc. Capital II, Inc. Consolidated Adjustments Consolidated ---------------- ------------- ------------ ----------------- ASSETS UTILITY PLANT: In Service $ 0 Less - Total Accum Provision For Depreciation 0 ------ Net Utility Plant excluding Construction Work In Progress 0 Construction Work In Progress: Electric Plant 0 ------ Total Construction Work In Progress 0 ------ Net Utility Plant 0 ------ OTHER PROPERTY & INVESTMENTS: Non-Utility Generation Trust 0 Nuclear Plant Decommissioning Trust 0 Long-term Notes Receivable from Associated Company 0 Investments in Subsidiaries 0 Other $2,666 2,666 ------ -- -- ------ Total Other Property & Investments 2,666 0 0 2,666 ------ -- -- ------ CURRENT ASSETS: Cash and Cash Equivalents 1 1 Receivables: Customers 0 Associated Companies 0 Other 0 0 Prepayments and Other 0 ------ -- -- ------ Total Current Assets 1 0 0 ------ -- -- ------ DEFERRED CHARGES: Regulatory Assets 0 Goodwill 0 Accumulated Deferred Income Taxes 0 Other 0 -- -- ------ Total Deferred Charges 0 0 1 ------ -- -- ------ TOTAL ASSETS $2,667 $0 $0 $2,667 ====== == == ====== 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Penelec Preferred Capital II, Inc. Consolidated Consolidating Balance Sheet December 31, 2003 (In Thousands)
Penelec Penelec Eliminations Penelec Preferred Preferred Capital II LP and Capital II, Inc. Capital II, Inc. Consolidated Adjustments Consolidated ----------------- ------------- ------------ ----------------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock $ 1 $ 1 Other Paid-In Capital 2,907 2,907 Accumulated Other Comprehensive Income/(Loss) 0 Retained Earnings (489) (489) ------ -- -- ------ Total Common Stockholder's Equity 2,419 $0 $0 2,419 ------ -- -- ------ Company Obligated Trust Preferred Securities 0 Long-Term Debt and Other Long-Term Obligations Subordinated Debentures to Affiliated Trusts 0 Other 0 ------ -- -- ------ Total Capitalization 2,419 0 0 2,419 ------ -- -- ------ CURRENT LIABILITIES: Currently Payable Long-Term Debt 0 Accounts Payable: Associated Companies 54 53 Other 0 Notes Payable: Associated Companies 0 Accrued Taxes 194 194 Accrued Interest (0) Other 0 ------ -- -- ------ Total Current Liabilities 248 0 0 248 ------ -- -- ------ NONCURRENT LIABILITIES: Accumulated Deferred Income Taxes 0 Accumulated Deferred Invest Tax Credits 0 Asset Retirement Obligation 0 Nuclear Fuel Disposal Fee 0 Power Purchase Contract Loss Liability 0 Retirement Benefits 0 Other 0 -- --- ------ Total Deferred Credits 0 0 ------ -- -- ------ Total Capitalization & Liabilities $2,667 $0 $0 $2,667 ====== == == ====== 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Penelec Preferred Capital II, Inc. Consolidated Consolidating Statement of Income For the year ending December 31, 2003 (In Thousands)
Penelec Penelec Eliminations Penelec Preferred Capital II LP and Preferred Capital II, Inc. Capital II, Inc. Consolidated Adjustments Consolidated --------------- ------------- ------------ ------------------------- OPERATING REVENUES $ 0 OPERATING EXPENSES AND TAXES: Purchased Power 0 Other Operating Expenses 0 ------ Total Operating and Maintenance Expenses 0 Provision for Depreciation and Amortization 0 General Taxes 0 Income Taxes 0 ------ Total Operating Expenses and Taxes 0 OPERATING INCOME 0 Other income $4,508 $ 0 4,508 Equity Earnings $ 13 (13) 0 Other Income Deductions (10) (10) Other Income Depreciation 0 Taxes - Other Income Deductions (1) (1) ----- ------ ----- ------ OTHER INCOME 2 4,508 (13) 4,497 ----- ------ ----- ------ INCOME BEFORE NET INTEREST CHARGES 2 4,508 (13) 4,497 ----- ------ ----- ------ NET INTEREST CHARGES: Interest On Long-Term Debt 107 107 Allowance for Borrowed Funds Used During 0 Construction and Capitalized Interest 0 Deferred Interest Income 0 Other Interest Expense 0 611 0 611 Subsidiaries' Preferred Stock Dividend Requirements 0 0 ----- ------ ---- ------ Net Interest Charges 0 718 0 718 INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 2 3,790 (13) 3,779 Cumulative Effect of Accounting Change 0 NET INCOME 2 3,790 (13) 3,779 Preferred Stock Dividend Requirements 114 3,777 (114) 3,777 ----- ------ ---- ------ Earnings on Common Stock $(112) $ 13 $100 $ 2 ===== ====== ==== ====== 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Penelec Preferred Capital II, Inc. Consolidated Consolidating Statement of Retained Earnings For the year ending December 31, 2003 (In Thousands)
Penelec Penelec Eliminations Penelec Preferred Capital II LP and Preferred Capital II, Inc. Capital II, Inc. Consolidated Adjustments Consolidated ---------------- ------------- ------------ -------------------------- Balance at beginning of year $ (264) $0 $0 $ (264) Net Income/(Loss) 3,779 0 0 3,779 Cash dividends declared on common stock (227) 0 (227) Cash dividends on cumulative preferred stock (3,777) 0 (3,777) ------ -- -- ------- Balance at end of year $ (489) $0 $0 $ (489) ====== == == ======= 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Penelec Preferred Capital II, Inc. Consolidated Consolidating Statement of Cash Flows For the year ending December 31, 2003 (In Thousands)
Penelec Penelec Eliminations Penelec Preferred Capital II, LP and Preferred Capital II, Inc. Capital II, Inc. Consolidated Adjustments Consolidated ---------------- --------------- ----------- -------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 2 $ 3,790 $(13) $3,779 Adjustments to reconcile net income to net cash from operating activities: Equity in earnings of subsidiary (13) 0 13 0 Accounts payable 11 11 Accrued interest 0 0 Other 106 106 ----- ------- ---- ------- Net cash provided from (used for) operating activities 0 3,896 0 3,896 CASH FLOWS FROM FINANCING ACTIVITIES: Dividend Payments Preferred Stock (3,670) 0 (3,670) Partnership distribution - internal 227 (227) 0 0 Common stock - internal (227) 0 0 (227) ----- ------- ---- ------- Net cash provided from (used for) financing activities 0 (3,897) 0 (3,897) CASH FLOWS FROM INVESTING ACTIVITIES: Other ----- ------- ---- ------- Net Cash provided from (used for) investing activities 0 0 0 0 ----- ------- ---- ------- Net increase (decrease) in cash and cash equivalents 0 (1) 0 (1) Cash and cash equivalents at beginning of period 1 1 0 2 ----- ------- ---- ------- Cash and cash equivalents at end of period $ 1 $ (0) $ 0 $ 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Penelec Capital II LP Consolidated Consolidating Balance Sheet December 31, 2003 (In Thousands)
Penelec Eliminations Penelec Penelec Capital and Capital II LP Capital II LP Trust Adjustments Consolidated ------------- ------- ------------ ------------- ASSETS UTILITY PLANT: In Service $0 Less - Total Accum Provision For Depreciation 0 -- Net Utility Plant excluding Construction Work In Progress 0 Construction Work In Progress: Electric Plant 0 -- Total Construction Work In Progress 0 -- Net Utility Plant 0 -- OTHER PROPERTY & INVESTMENTS: Non-Utility Generation Trust 0 Nuclear Plant Decommissioning Trust 0 Long-term Notes Receivable from Associated Company $ 0 $100,000 $(100,000) 0 Investments in Subsidiaries (428) 428 0 Other 0 -------- -------- --------- -- Total Other Property & Investments (428) 100,000 (99,572) 0 -------- -------- --------- -- CURRENT ASSETS: Cash and Cash Equivalents 1 (1) 0 Receivables: Customers 0 Associated Companies 0 0 Other 103,093 (103,093) 0 Prepayments and Other 0 -------- -------- --------- -- Total Current Assets 103,094 (103,094) (1) -------- -------- --------- -- DEFERRED CHARGES: Regulatory Assets 0 Goodwill 0 0 Accumulated Deferred Income Taxes 0 0 Other 0 -------- -------- --------- -- Total Deferred Charges 0 0 1 -------- -------- --------- -- TOTAL ASSETS $102,666 $100,000 $(202,666) $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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Penelec Capital II LP Consolidated Consolidating Balance Sheet December 31, 2003 (In Thousands)
Penelec Eliminations Penelec Penelec Capital and Capital II LP Capital II LP Trust Adjustments Consolidated ------------- ------- ----------- ------------- CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stockholder's Equity: Common Stock $ 0 $0 Other Paid-In Capital $ 3,116 (3,116) 0 Accumulated Other Comprehensive Income/(Loss) 0 Retained Earnings (450) $ (428) 878 0 --------- -------- ---------- -- Total Common Stockholder's Equity 2,666 (428) (2,238) 0 --------- -------- --------- -- Company Obligated Trust Preferred Securities 100,000 (100,000) 0 Long-Term Debt and Other Long-Term Obligations Subordinated Debentures to Affiliated Trusts 100,000 (100,000) 0 Other 0 --------- -------- --------- -- Total Capitalization 102,666 99,572 (202,238) 0 --------- -------- --------- -- CURRENT LIABILITIES: Currently Payable Long-Term Debt 0 Accounts Payable: Associated Companies 0 0 Other 428 (428) 0 Notes Payable: Associated Companies 0 Accrued Taxes 0 Accrued Interest 0 (0) Other 0 -- --------- -------- --------- -- Total Current Liabilities 0 428 (428) (0) --------- -------- --------- -- NONCURRENT LIABILITIES: Accumulated Deferred Income Taxes 0 0 Accumulated Deferred Invest Tax Credits 0 Asset Retirement Obligation 0 Nuclear Fuel Disposal Fee 0 Power Purchase Contract Loss Liability 0 Retirement Benefits 0 Other 0 -- --------- -- Total Deferred Credits 0 0 --------- -- --------- -------- --------- -- Total Capitalization & Liabilities $ 102,666 $100,000 $(202,666) $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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Penelec Capital II LP Consolidated Consolidating Statement of Income For the year ending December 31, 2003 (In Thousands) Penelec Eliminations Penelec Penelec Capital and Capital II LP Capital II, LP Trust Adjustments Consolidated -------------- ------- ------------- ------------- OPERATING REVENUES $ 0 OPERATING EXPENSES AND TAXES: Purchased Power 0 Other Operating Expenses 0 ------ Total Operating and Maintenance Expenses 0 Provision for Depreciation and Amortization 0 General Taxes 0 Income Taxes 0 ------ Total Operating Expenses and Taxes 0 OPERATING INCOME 0 Other income $7,567 $7,340 $(10,398) 4,509 Equity Earnings (214) 214 0 Other Income Deductions 0 Other Income Depreciation 0 Taxes - Other Income Deductions 0 ------ ------ -------- ------ OTHER INCOME 7,353 7,340 (10,184) 4,509 ------ ------ -------- ------ INCOME BEFORE NET INTEREST CHARGES 7,353 7,340 (10,184) 4,509 ------ ------ -------- ------ NET INTEREST CHARGES: Interest On Long-Term Debt 107 107 Allowance for Borrowed Funds Used During 0 Construction and Capitalized Interest 0 Deferred Interest Income 0 Other Interest Expense 7,340 3,670 (10,398) 612 Subsidiaries' Preferred Stock Dividend Requirements 0 0 ------ ------ -------- ------ Net Interest Charges 7,340 3,777 (10,398) 719 INCOME BEFORE EXTRAORDINARY ITEM 13 3,563 214 3,790 Extraordinary Items 0 NET INCOME/(LOSS) 13 3,563 214 3,790 Preferred Stock Dividend Requirements 113 3,777 (113) 3,777 ------ ------ -------- ------ Earnings/(Losses) on Common Stock $ (100) $ (214) $ 327 $ 13 ====== ====== ======== ====== 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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Penelec Capital II LP Consolidated Consolidating Statement of Retained Earnings For the year ending December 31, 2003 (In Thousands)
Penelec Eliminations Penelec Penelec Capital and Capital II LP Capital II, L.P. Trust Adjustments Consolidated ---------------- --------- ------------ ------------- Balance at beginning of year $ (236) $ (214) $ 450 $0 Net Income/(Loss) 13 3,563 (3,576) 0 Partnership distributions (227) 227 0 Cash dividends on cumulative preferred stock (3,777) 3,777 0 -------- ------- ------- -- Balance at end of year $ (450) $ (428) $ 878 $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, 2003, are an integral part of the consolidating financial statements.
Exhibit F-2 Penelec Capital II LP Consolidated Consolidating Statement of Cash Flows For the year ending December 31, 2003 (In Thousands)
Penelec Eliminations Penelec Penelec Capital and Capital II LP Capital II, LP Trust Adjustments Consolidated -------------- ------ ------------ ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 13 $ 3,563 $214 $ 3,790 Adjustments to reconcile net income to net cash from operating activities: Equity in earnings of subsidiary 214 (214) 0 Other (1) 107 106 ----- ------- ---- ------- Net cash provided from (used for) operating activities 226 3,670 (0) 3,896 CASH FLOWS FROM FINANCING ACTIVITIES: Dividend Payments Preferred Stock Dividend Requirements (3,670) (3,670) Partnership distribution - internal (227) 0 (227) ----- ------- ---- ------- (227) (3,670) 0 (3,897) CASH FLOWS FROM INVESTING ACTIVITIES: Other ----- ------- ---- ------- Net Cash provided from (used for) investing activities 0 0 0 0 ----- ------- ---- ------- Net increase (decrease) in cash and cash equivalents (1) (0) (0) (1) Cash and cash equivalents at beginning of period 1 0 0 1 ----- ------- ---- ------- Cash and cash equivalents at end of period $ 0 $ (0) $ (0) $ (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, 2003, are an integral part of the consolidating financial statements.