-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PVVvRBuQMw+86R7R3AQSax6c/D4pZ3nDpWBFJADYArTA0UrleyzX1Wovl/F4SKIM a1f86GfWMnWziJU0em/MUg== 0000018675-96-000021.txt : 19960701 0000018675-96-000021.hdr.sgml : 19960701 ACCESSION NUMBER: 0000018675-96-000021 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960628 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTRAL MAINE POWER CO CENTRAL INDEX KEY: 0000018675 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 010042740 STATE OF INCORPORATION: ME FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-05139 FILM NUMBER: 96587792 BUSINESS ADDRESS: STREET 1: 83 EDISON DR CITY: AUGUSTA STATE: ME ZIP: 04336 BUSINESS PHONE: 2076233521 10-K/A 1 CORRESPONDENCE SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM 10-K/A AMENDMENT TO APPLICATION OR REPORT FILED PURSUANT TO SECTION 12, 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 CENTRAL MAINE POWER COMPANY (Exact name of registrant as specified in charter) The undersigned registrant hereby amends the following items, financial statements, exhibits or other portions of its Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 on Form 10-K for the fiscal year ended December 31, 1995, as set forth in the pages attached hereto. Pursuant to Rule 15d-21 of the Securities Exchange Act of 1934, this amendment is being made to add the information, financial statements, and exhibits required by Form 11-K with respect to the CENTRAL MAINE POWER COMPANY EMPLOYEE SAVINGS AND INVESTMENT PLAN FOR NON-UNION EMPLOYEES and to the CENTRAL MAINE POWER COMPANY EMPLOYEE SAVINGS AND INVESTMENT PLAN FOR UNION EMPLOYEES, as Exhibits 99-1 and 99-2, respectively. Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the Registrant has duly caused this amendment to be signed on its behalf by the undersigned, thereunto duly authorized. CENTRAL MAINE POWER COMPANY By Robert E. Tuoriniemi, Comptroller EX-99.1 2 S&I NON-UNION Exhibit 99-1 FORM 11-K FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the fiscal year ended December 31, 1995 [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from to Commission file number A. Full title of the plan and the address of the plan, if different from that of the issuer named below: CENTRAL MAINE POWER COMPANY EMPLOYEE SAVINGS AND INVESTMENT PLAN FOR NON-UNION EMPLOYEES B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: CENTRAL MAINE POWER COMPANY 83 EDISON DRIVE AUGUSTA, MAINE 04336 Central Maine Power Company Form 11-K - Year 1995 Central Maine Power Company Employee Savings and Investment Plan For Non-Union Employees REQUIRED INFORMATION The following financial statements shall be furnished for the plan: (a) Financial Statements Page No. Reports of Independent Public Accountants F-1, F-2 Statements of Financial Condition F-3 Statements of Income and Changes in Participants' Equity F-4 Notes to Financial Statements F-5 through F-29 Supplemental Schedules: I - Item 27a Schedule of Assets Held for Investment Purposes at December 31, 1995 S-1 through S-3 II - Allocation of Plan Income and Changes in Plan Equity to Investment Programs S-4 through S-5 III - Item 27d Schedule of Reportable Transactions for the Year Ended December 31, 1995 S-6 (b) Exhibits Consents of Independent Public Accountants E-1 through E-2 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Board of Directors of Central Maine Power Company: We have audited the accompanying statements of financial condition of the CENTRAL MAINE POWER COMPANY EMPLOYEE SAVINGS AND INVESTMENT PLAN FOR NON-UNION EMPLOYEES as of December 31, 1995 and 1994, and the related statements of income and changes in participants equity for the years then ended. These financial statements are the responsibility of the Plan's Management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Central Maine Power Company Employee Savings and Investment Plan for Non-Union Employees as of December 31, 1995 and 1994, and its income and changes in participants' equity for the years then ended, in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes at December 31, 1995 and reportable transactions for the year ended December 31, 1995 are presented for purposes of additional analysis and are not a required part of the basic financial statements but are supplementary information required by The Department of Labor Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. COOPERS & LYBRAND L.L.P. Portland, Maine June 14, 1996 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Board of Directors of Central Maine Power Company: We have audited the accompanying statements of financial condition of the CENTRAL MAINE POWER COMPANY EMPLOYEE SAVINGS AND INVESTMENT PLAN FOR NON-UNION EMPLOYEES as of December 31, 1993, and the related statements of income and changes in participants' equity for the year then ended. These financial statements and the supplemental schedules listed in the accompanying index are the responsibility of the Plan Administrator. Our responsibility is to express an opinion on these financial statements and schedules based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Plan Administrator, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Central Maine Power Company Employee Savings and Investment Plan for Non-Union Employees as of December 31, 1993, and its income and changes in participants' equity for the year ended December 31, 1993, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules listed in the accompanying index are presented for purposes of additional analysis and are not a required part of the basic financial statements but are supplementary information required by The Department of Labor Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Arthur Andersen LLP Boston, Massachusetts June 3, 1994 Central Maine Power Company Form 11-K - Year 1995 Central Maine Power Company Employee Savings and Investment Plan For Non-Union Employees Statements of Financial Condition (See Note 4) As of December 31, Assets 1995 1994 Investments at market value (cost $43,547,624 and $45,336,014, respectively) (Notes 1 and 2) (Schedule I) $47,295,860 $43,822,982 Company dividends receivable 161,993 179,287 Other receivables 165,245 40,795 Participant loans receivable (Note 1) 1,617,336 1,925,794 $49,240,434 $45,968,858 Liabilities and Participants' Equity Security purchase payable $ 150,526 $ 119,083 Insurance contract reserve (Note 2) 201,432 250,000 Participants' equity (Notes 1 and 5) 48,888,476 45,599,775 $49,240,434 $45,968,858
The accompanying notes are an integral part of these financial statements. Statements of Income and Changes in Participants' Equity For the Years Ended December 31, 1995, 1994 and 1993 (See Note 5 and Schedule II) 1995 1994 1993 Balance at beginning of year $45,599,775 $43,205,176 $42,677,039 Investment income: Dividends on Company Stock 684,439 668,186 961,151 Interest 1,720,448 1,443,092 1,881,615 Interest on loans 150,147 140,210 128,857 Investment appreciation/(depreciation) (Note 2) 5,136,869 (1,875,012) (5,138,978) Net investment income 7,691,903 376,476 (2,167,355) Contributions: Participants 2,981,109 3,210,566 3,193,206 Company 1,051,491 1,124,831 1,169,093 4,032,600 4,335,397 4,362,299 Transfers (to) from other plans (Note 1) (388,054) 324,093 (1,739) Less- Withdrawals and distributions: Cash 8,096,316 2,641,367 1,415,068 Insurance contract reserve (Note 2) 48,568 - (250,000) Balance at end of year $48,888,476 $45,599,775 $43,205,176
The accompanying notes are an integral part of these financial statements. Notes to Financial Statements December 31, 1995 1. Description of the Plan The Central Maine Power Company Employee Savings and Investment Plan for Non-Union Employees ("the Plan" or "the Non-Union Plan") was adopted by the Board of Directors of Central Maine Power Company ("the Company") on February 19, 1981. Certain pertinent features of the Plan, as amended, are discussed below. a. Eligibility of Participants Each employee of the Company, and of The Union Water-Power Company, MaineCom, Telesmart, CMP International Consultants, and Aroostook Valley Electric Company, its wholly-owned subsidiaries, who is not in a unit of employees covered by a collective bargaining agreement is eligible to join the Plan after completing one year of service during which the employee has worked at least 1,000 hours. b. Elective Contributions by Participants Each participant elects a salary reduction percentage to be contributed by the Company on their behalf. Participants may elect to have the Company contribute from 2% to 15% (in multiples of 1%) of their basic compensation to the Plan through a salary reduction agreement. c. Matching Contributions by the Company The Company and its subsidiaries contribute to the Plan an amount equal to 60% of the first 5% of the salary reduction amount contributed on behalf of each participant, provided, however, that the total contribution that the Company is obligated to make for any year does not exceed the maximum amount deductible from the Company's gross income under applicable provisions of the Internal Revenue Code. In 1995, 1994 and 1993, these provisions limited the annual employee contribution excluded from taxable income to the lesser of 25% of total compensation or approximately $9,200, $9,200 and $9,000, respectively. Employee contributions for employees who are defined as "highly compensated" by the Internal Revenue Service may be further limited in order to pass nondiscrimination tests. The Company's matching contribution may be made from time to time during each year and shall be paid in full as of the date the Company files its federal income tax return for that year. d. Investment Options All contributions made under the Plan are commingled in a common/collective trust that also contains the assets of one other employee savings and investment plan of the Company and its affiliated companies. As of December 31, 1995, the contributions were invested by the Trustee, Fidelity Management Trust Company, based upon participant election in one or more of ten Funds. 1. Description of the Plan (continued) d. Investment Options (continued) Contributions to all Funds may be invested temporarily in short-term investments prior to purchase of primary Fund securities. The Funds consist of: Retirement Government Money Market Portfolio - An income fund comprised of short-term, high-quality debt obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities. Fidelity Balanced Fund - A diversified fund comprised of high-yielding securities, including common stocks and bonds. Fidelity Magellan Fund - A fund comprised primarily of common stock and securities convertible into common stock seeking capital appreciation. Equity Fund - The Fidelity U.S. Equity Index Fund comprised of common stock which attempts to duplicate the composition of the Standard & Poor's Daily Stock Price Index of 500 Common Stocks during the current year. The fund presents a passive approach for investing in a diversified portfolio of common stocks. Fixed Income Contract Portfolio - A fixed-income fund comprised of investments yielding a fixed rate of return, as selected by the Trustee, issued mainly by insurance companies and banks. This fund is being phased-out and will no longer accept contributions as of March 1996. Central Maine Power Company Stock Fund - A fund comprised of the common shares of the Company. Asset Manager Income Fund - A fund emphasizing investment in bonds and short-term instruments for income and price stability, but allows some investment in stocks for their potential to grow and keep pace with inflation. Asset Manager Fund - A fund allocating its assets among and across domestic and foreign stocks, bonds and short-term instruments of U.S. and foreign issuers, including those in emerging markets. 1. Description of the Plan (continued) d. Investment Options (continued) Asset Manager Growth Fund - This fund seeks to maximize a total return over the long term; the Fund allocates its assets among three principal asset classes: stocks, bonds and short-term instruments. However, it may invest in many types of domestic and foreign securities. Fidelity Intermediate Bond Fund - A fund that seeks high current income by investing in domestic and foreign investment-grade securities with intermediate maturities and good credit quality. Upon enrollment, participants elect the Fund or Funds in which to invest their contributions. The percentage of such contributions invested in a particular Fund must be a multiple of 10%. Participants may change the investment of their future contributions (in multiples of 10% of such contributions) or transfer a portion from one Fund to another. Changes and transfers may be made at any time. All Company contributions are initially invested in the Central Maine Power Company Stock Fund. Dividends, interest and other distributions received on the assets held in each Fund shall be reinvested in the respective Fund. Participants may transfer all or a portion of the Company contributions made on their behalf out of the CMP Company Stock Fund. 1. Description of the Plan (continued) d. Investment Options (continued) The number of participants in each Fund at December 31, 1995 and 1994 was as follows: Number of Participants Fund Type 1995 1994 Retirement Government Money Market Portfolio 319 340 Fidelity Balanced Fund 592 657 Fidelity Magellan Fund 841 859 Equity Fund 738 764 Fixed Income Contract Portfolio 1,034 998 Central Maine Power Company Stock Fund 1,053 1,189 Asset Manager Income Fund 49 11 Asset Manager Fund 86 22 Asset Manager Growth Fund 124 35 Fidelity Intermediate Bond Fund 37 1 The total number of participants in the Plan was 1,482 and 1,325 at December 31, 1995 and 1994, respectively. The aggregate participation in the ten Funds is greater than the number of employees participating because employees have the option of investing in one or more Funds. e. Vesting Each participant's account consists of their contributions and any rollover money, the matching Company contribution and any net earnings thereon. Participants are 100% vested in their account balances. f. Withdrawals and Distributions A participant may elect to make a regular withdrawal of up to 100% of the value of their contributions made prior to July 1, 1983, and earnings thereon, (but not less than $500 unless the value of such participant's contributions and earnings thereon total less than $500, in which case such total may be withdrawn) after approval by the Employee Savings and Investment Plan Committee. Only one regular withdrawal may be made in any year. 1. Description of the Plan (continued) f. Withdrawals and Distributions (continued) Withdrawals with respect to contributions made subsequent to July 1, 1983 may be made only for reasons of hardship. With the consent of the Company's Employee Savings and Investment Plan Committee, a participant may elect to make a hardship withdrawal, as determined in accordance with the Plan provisions, of up to 100% of their account. Distributions from the Funds occurring as a result of termination of employment, death, retirement or permanent disability are made no later than 60 days after the end of the Plan year, unless under certain circumstances retiring or disabled participants elect otherwise. g. Loans Participants may borrow amounts in the aggregate of not more than 50% of their account balance, subject to a maximum loan of $50,000. Loans bear interest at a rate equal to the current rate of interest being charged by the Central Maine Power Company Employees Federal Credit Union for loans secured by share account balances. The maximum term of the loans is generally five years. Loans outstanding as of December 31, 1995 and 1994 amounted to $1,617,336 and $1,925,794, respectively. 2. Summary of Significant Accounting Policies a. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income, contributions and distribution during the reporting period. Actual results could differ from those estimates. b. Investment Valuation Investments other than fixed income contracts with insurance companies are stated at market value. Fixed income contracts are stated at contract value which is cost plus interest at the stated rate. 2. Summary of Significant Accounting Policies (continued) b. Investment Valuation (continued) At December 31, 1995, Fidelity held a fixed income contract with Executive Life Insurance Company (Executive Life) with a contract value of approximately $285,000. The Non-Union Plan holds approximately $201,000 of the Executive Life contract. On April 11, 1991, the State of California insurance regulators placed Executive Life under conservatorship. The regulators stated Executive Life would continue to pay monthly annuities, but placed a moratorium on policy surrenders and loans. The Conservation Court of California approved the sale of Executive Life to an investor group - Altus Finance (Altus) and Mutuelle Assurance Artisanale de France (Mutuelle). Under this rehabilitation agreement, Altus agreed to pay $3.25 billion for the Executive Life high risk bonds while Mutuelle agreed to infuse $300 million in capital. Together, the agreement formed a new company, Aurora National Life Assurance Company. This rehabilitation plan was appealed on several points to the California Court of Appeal and subsequently remanded to the Superior Court to be corrected. On August 13, 1993, the Los Angeles Superior Court approved a modified rehabilitation/liquidation plan for Executive Life. The modified plan became effective September 3, 1993. Under the terms of the modified rehabilitation plan, contract holders were given a choice to either opt-in or opt-out of a 5-year fixed income contract with Aurora National Life Assurance Company, the successor to Executive Life. Both options meant some loss of original investment to participants, and both were clouded by continuing litigation and complicated by a variety of "holdback" amounts. Under opt-in, participants would receive an initial restructured value of 77% with some potential to realize 86%. Under opt-out, participants would receive an initial restructured value of 56% (assuming favorable resolution of pending litigation) with some potential for eventually realizing a total of 84%. The Company retained Townshend & Schupp, an insurance research and consulting firm, to assist in analyzing the potential value of the options. After review of all the relevant facts and the advice of Townshend & Schupp, the Company selected the opt-out approach. During 1993, the Plan recorded a reserve of $250,000 reflecting a reduction in the value of the Executive Life contract to the 84% level associated with their opt-out selection. The reserve was reduced to $201,432 in 1995, which represents the 2. Summary of Significant Accounting Policies (continued) b. Investment Valuation (continued) remaining balance. As discussed further below, the Company and other parties continue to pursue alternatives in order to protect and enhance the ultimate recovery levels of the Executive Life Contract. A number of uncertainties regarding the final settlement of Executive Life issues existed during 1994 and into the first quarter of 1995, including pending litigation and the impact of carrying out the remaining steps of the modified rehabilitation plan. Three subsequent legal challenges existed: one to the general modified rehabilitation plan, one to the transfer of Executive Life's high-yield bonds to its successor, and another to the priority system for dealing with Executive Life contract holders' claims. After the California Court of Appeals issued a decision in February 1995 asserting the priority status of Executive Life contracts held in pension Guaranteed Insurance Contracts and the period for further appeals expired in August 1995, settlement agreements were signed by claimants in late August. The stipulation provided for release of the holdback funds in the fall of 1995 to contract holders who "opted out," with subsequent distributions from the remainder of the trust as assets are liquidated. On October 26, 1995 the Plan received a distribution of $1.9 million or 88% of the original frozen assets. Further distributions are expected as conditions for liquidating assets improve. Over the next several years, full recovery of the original investment is expected. However, the Plan has continued to record a reserve for the remaining outstanding value of the contract. In October 1995, Fidelity Management Trust Company was named successor trustee for the Executive Life contract formerly held in trust by State Street Bank. As successor trustee, Fidelity assumed responsibility for the October 1995 distribution, as well as all future distributions, to individual participant accounts. The March 1995 agreement between State Street Bank and the Company remains unchanged. As previously reported, the Company and its affiliates filed suit against State Street Bank in June 1994, seeking damages for losses arising out of the Bank's purchase and management of the Executive Life contract. The parties agreed to dismiss the suit under an agreement whose terms remain confidential. It is expected that along with resolution of the rehabilitation proceedings, this settlement may result in full recovery of the original Executive Life contract. 2. Summary of Significant Accounting Policies (continued) b. Investment Valuation (continued) Requests from Plan participants for payments or transfers of funds from the Fixed Income Fund will continue to be processed, but the shares associated with the remaining Executive Life contract continue to be temporarily frozen. At December 31, 1995, Fidelity held a fixed income contract with Confederation Life Insurance Company (Confederation Life) with a contract value of approximately $3.3 million. The Non-Union Plan holds approximately $2.3 million of the Confederation Life contract. On August 11, 1994, Canada's Office of the Superintendent of Financial Institutions took over the Confederation Life Insurance Company. On August 12, 1994, the State of Michigan (Confederation Life's port of entry) filed suit to seize the Confederation Life's assets. In response to these regulatory actions, the Association of Confederation Life contractors (ACLIC) was formed. The ACLIC membership includes persons that hold or have an interest in Guaranteed Investment Contracts issued by Confederation Life. Fidelity is actively participating in the ACLIC to represent and protect the interests of the Company. The Company cannot predict at this time the outcome of the Confederation Life situation. The Deputy Rehabilitator appointed by the Michigan Department of Insurance has indicated that he expects the full August 1994 account balances to be recovered. As of April 1996, ACLIC's analysis of a draft plan of reorganization estimates that total recoveries may be in the range of 101-112% for United States policyholders. The key variables in the analysis are: 1) the United States trust's recovery of Canadian notes; 2) a Canadian equalizing payment to bring United States recoveries to a similar level; and 3) the method for determining asset allocation among blocks of business. A final rehabilitation plan should be filed with the Commissioner in the spring of 1996. There is a reasonable expectation the plan could be confirmed during 1997, with initial payouts from liquid assets the same year. Approximately 85-95% of the August 11, 1994 contract values are deemed very liquid, and the remaining contingent claims would be held in a liquidating trust. In November 1995, Confederation Life in Rehabilitation offered contract holders the option of receiving .75% of frozen values each year, pending outcome of the rehabilitation plan. The Non-union Plan received a 1.5% payout in March 1996, .75% 2. Summary of Significant Accounting Policies (continued) b. Investment Valuation (continued) each for 1994 and 1995. Payments were distributed to participants' accounts according to their current investment elections. The Company has notified Fidelity, and Fidelity has acknowledged, its fiduciary obligations regarding its purchase of the Confederation Life contract. In addition, the Company, as of the close of business on August 16, 1994, segregated approximately $3 million of the Plan's Fixed Income Fund for the common/collective trust and placed hold on all transactions with regard to that amount. This action was taken to ensure that all Plan participants invested in the Fixed Income Fund at the time of seizure by Canadian and Michigan authorities are treated equally. c. Investment Appreciation/Depreciation Investments are stated at fair value as determined based upon quoted market prices. The plan presents in the statement of changes in net assets the investment appreciation (depreciation) in the fair value of its investments which consists of the realized gains or losses and the unrealized appreciation (depreciation) on those investments. Realized and unrealized appreciation/(depreciation) of Plan assets are based on the value of the assets at the beginning of the Plan year or at the time of purchase during the year. The following table depicts this Employee Retirement Income Security Act of 1974 method for funds which generate such appreciation/(depreciation). Central Maine Power Company Form 11-K - Year 1995 Central Maine Power Company Employee Savings and Investment Plan For Non-Union Employees 2. Summary of Significant Accounting Policies (continued) c. Investment Appreciation/(Depreciation) (continued) Fidelity Fidelity Balanced Magellan Equity Sub Fund Fund Fund Total Market value at December 31, 1992 $1,032,114 $2,392,214 $5,324,707 $ 8,749,035 Current value of sales during 1993 (225,607) (772,050) (1,113,457) (2,111,114) Cost of purchases during 1993 1,908,068 3,322,272 1,277,999 6,508,339 Unrealized appreciation/ (depreciation) 58,137 225,314 252,577 536,028 Market value at December 31, 1993 2,772,712 5,167,750 5,741,826 13,682,288 Current value of sales during 1994 (666,875) (2,565,552) (908,934) (4,141,361) Cost of purchases during 1994 1,326,454 4,212,649 1,331,292 6,870,395 Unrealized appreciation/ (depreciation) (231,170) (254,862) (111,636) (597,668) Market value at December 31, 1994 3,201,121 6,559,985 6,052,548 15,813,654 Current value of sales during 1995 (1,680,902) (2,612,195) (1,713,473) (6,006,570) Cost of purchases during 1995 1,926,170 5,055,912 2,020,593 9,002,675 Unrealized appreciation/ (depreciation) 236,178 1,334,883 1,698,766 3,269,827 Market value at December 31, 1995 $3,682,567 $10,338,585 $8,058,434 $22,079,586 Central Maine Power Company Form 11-K - Year 1995 Central Maine Power Company Employee Savings and Investment Plan For Non-Union Employees 2. Summary of Significant Accounting Policies (continued) c. Investment Appreciation/(Depreciation) (continued) Asset Company Manager Asset Stock Income Manager Sub Fund Fund Fund Total Market value at December 31, 1992 $15,868,276 $ - $ - $15,868,276 Current value of sales during 1993 (2,458,110) - - (2,458,110) Cost of purchases during 1993 2,863,421 - - 2,863,421 Unrealized appreciation/ - - (depreciation) (5,674,328) (5,674,328) Market value at December 31, 1993 10,599,259 - - 10,599,259 Current value of sales during 1994 (10,886,405) - - (10,886,405) Cost of purchases during 1994 11,939,915 49,865 113,861 12,103,641 Unrealized appreciation/ (depreciation) (460,340) (118) (1,885) (462,343) Market value at December 31, 1994 11,192,429 49,747 111,976 11,354,152 Current value of sales during 1995 (18,613,315) (48,094) (178,895) (18,840,304) Cost of purchases during 1995 16,723,989 296,119 744,646 17,764,754 Unrealized appreciation/ (depreciation) 1,150,717 8,888 41,510 1,201,115 Market value at December 31, 1995 $10,453,820 $306,660 $719,237 $11,479,717 Central Maine Power Company Form 11-K - Year 1995 Central Maine Power Company Employee Savings and Investment Plan For Non-Union Employees 2. Summary of Significant Accounting Policies (continued) c. Investment Appreciation/(Depreciation) (continued) Asset Fidelity Manager Intermediate Growth Bond Fund Fund Total Market value at December 31, 1992 $ - $ - $24,617,311 Current value of sales during 1993 - - (4,569,224) Cost of purchases during 1993 - - 9,371,760 Unrealized appreciation/ (depreciation) - - (5,138,300) Market value at December 31, 1993 - - 24,281,547 Current value of sales during 1994 (10,344) - (15,038,110) Cost of purchases during 1994 471,965 4,108 19,450,109 Unrealized appreciation/ (depreciation) (13,697) (8) (1,073,716) Market value at December 31, 1994 447,924 4,100 27,619,830 Current value of sales during 1995 (344,603) (24,234) (25,215,711) Cost of purchases during 1995 626,808 167,750 27,561,987 Unrealized appreciation/ (depreciation) 81,186 4,076 4,556,204 Market value at December 31, 1995 $811,315 $151,692 $34,522,310
Central Maine Power Company Form 11-K - Year 1995 Central Maine Power Company Employee Savings and Investment Plan For Non-Union Employees 2. Summary of Significant Accounting Policies (continued) c. Investment Appreciation/(Depreciation) (continued) The market value of Central Maine Power Company stock was $12.50 at June 25, 1996 and $14.375 per share at December 31, 1995. d. Expenses All expenses of administration of the Plan, including Trustee's and record keeper's fees, are paid by Central Maine Power Company. 3. Federal Income Taxes The Internal Revenue Service (IRS) has issued a favorable determination letter with respect to the Plan's tax-exempt status under Sections 401(a) and 401(k) of the Internal Revenue Code. Therefore, no income taxes have been provided for in the accompanying financial statements. Elective contributions to the Plan made by the Company on behalf of employees are not subject to federal income taxes currently, as long as these contributions are below the maximum level derived in accordance with Section 401(k) regulations. Contributions and earnings thereon will, in general, be taxable upon distribution, although rules providing for additional deferral may apply with respect to certain distributions of Company stock. Central Maine Power Company Form 11-K - Year 1995 Central Maine Power Company Employee Savings and Investment Plan For Non-Union Employees 4. Allocation of Plan Assets and Liabilities to Investment Programs As of December 31, 1995 Retirement Government Money Fidelity Fidelity Market Balanced Magellan Equity Sub Assets Portfolio Fund* Fund* Fund* Total Investments at market value (cost $43,547,624) (Notes 1 and 2) (Schedule I) $1,556,811 $3,682,567 $10,338,585 $8,058,434 $23,636,397 Company dividends receivable - - - - - Other receivables 4,760 12,317 26,494 13,292 56,863 Participant loans receivable (Note 1) - - - - - $1,561,571 $3,694,884 $10,365,079 $8,071,726 $23,693,260 Liabilities and Participants' Equity Security purchase payable $ - $ - $ - $ - $ - Insurance contract reserve (Note 2) - - - - - Participants' equity (Notes 1 and 5) 1,561,571 3,694,884 10,365,079 8,071,726 23,693,260 $1,561,571 $3,694,884 $10,365,079 $8,071,726 $23,693,260 *Parties in interest to the plan. 4. Allocation of Plan Assets and Liabilities to Investment Programs (continued) As of December 31, 1995 Central Fixed Maine Asset Income Power Manager Asset Contract Company Income Manager Sub Assets Portfolio Stock Fund* Fund* Fund* Total Investments at market value (Notes 1 and 2) (Schedule I) $11,216,739 $10,453,820 $306,660 $719,237 $22,696,456 Company dividends receivable - 161,993 - - 161,993 Other receivables 14,809 90,554 348 929 106,640 Participant loans receivable (Note 1) 1,617,336 - - - 1,617,336 $12,848,884 $10,706,367 $307,008 $720,166 $24,582,425 Liabilities and Participants' Equity Security purchase payable $ - $ 150,526 $ - $ - $ 150,526 Insurance contract reserve (Note 2) 201,432 - - - 201,432 Participants' equity (Notes 1 and 5) 12,647,452 10,555,841 307,008 720,166 24,230,467 $12,848,884 $10,706,367 $307,008 $720,166 $24,582,425 *Parties in interest to the plan. 4. Allocation of Plan Assets and Liabilities to Investment Programs (continued) As of December 31, 1995 Asset Fidelity Manager Intermediate Growth Bond Assets Fund Fund* Total Investments at market value (Notes 1 and 2) (Schedule I) $811,315 $151,692 $47,295,860 Company dividends receivable - - 161,993 Other receivables 1,535 207 165,245 Participant loans receivable (Note 1) - - 1,617,336 $812,850 $151,899 $49,240,434 Liabilities and Participants' Equity Security purchase payable $ - $ - $ 150,526 Insurance contract reserve (Note 2) - - 201,432 Participants' equity (Notes 1 and 5) 812,850 151,899 48,888,476 $812,850 $151,899 $49,240,434 *Parties in interest to the plan. 4. Allocation of Plan Assets and Liabilities to Investment Programs (continued) As of December 31, 1994 Retirement Government Money Fidelity Fidelity Market Balanced Magellan Equity Sub Assets Portfolio Fund* Fund* Fund* Total Investments at market value (cost $45,336,014) (Notes 1 and 2) (Schedule I) $1,022,423 $3,201,121 $6,559,985 $6,052,548 $16,836,077 Company dividends receivable - - - - - Other receivables 1,157 2,637 5,686 3,160 12,640 Participant loans receivable (Note 1) - - - - - $1,023,580 $3,203,758 $6,565,671 $6,055,708 $16,848,717 Liabilities and Participants' Equity Security purchase payable $ - $ - $ - $ - $ - Insurance contract reserve (Note 2) - - - - - Participants' equity (Notes 1 and 5) 1,023,580 3,203,758 6,565,671 6,055,708 16,848,717 $1,023,580 $3,203,758 $6,565,671 $6,055,708 $16,848,717 *Parties in interest to the plan. 4. Allocation of Plan Assets and Liabilities to Investment Programs (continued) As of December 31, 1994 Central Fixed Maine Asset Income Power Manager Asset Contract Company Income Manager Sub Portfolio Stock Fund* Fund* Fund* Total Investments at market value (Notes 1 and 2) (Schedule I) $15,180,729 $11,192,429 $49,747 $111,976 $26,534,881 Company dividends receivable - 179,287 - - 179,287 Other receivables 5,931 22,224 - - 28,155 Participant loans receivable (Note 1) 1,925,794 - - - 1,925,794 $17,112,454 $11,393,940 $49,747 $111,976 $28,668,117 Liabilities and Participants' Equity Security purchase payable $ - $ 119,083 $ - $ - $ 119,083 Insurance contract reserve (Note 2) 250,000 - - - 250,000 Participants' equity (Notes 1 and 5) 16,862,454 11,274,857 49,747 111,976 28,299,034 $17,112,454 $11,393,940 $49,747 $111,976 $28,668,117 *Parties in interest to the plan. 4. Allocation of Plan Assets and Liabilities to Investment Programs (continued) As of December 31, 1994 Asset Fidelity Manager Intermediate Growth Bond Assets Fund Fund* Total Investments at market value (Notes 1 and 2) (Schedule I) $447,924 $4,100 $43,822,982 Company dividends receivable - - 179,287 Other receivables - - 40,795 Participant loans receivable (Note 1) - - 1,925,794 $447,924 $4,100 $45,968,858 Liabilities and Participants' Equity Security purchase payable $ - $ - $ 119,083 Insurance contract reserve (Note 2) - - 250,000 Participants' equity (Notes 1 and 5) 447,924 4,100 45,599,775 $447,924 $4,100 $45,968,858 *Parties in interest to the plan. 5. Allocation of Plan Income and Changes in Participants' Equity by Fund for the Year Ended December 31, 1995 Retirement Government Money Fidelity Fidelity Market Balanced Magellan Equity Sub Portfolio Fund* Fund* Fund* Total Balance at beginning of year $1,023,580 $3,203,758 $ 6,565,671 $6,055,708 $16,848,717 Investment income Dividends on Company Stock - - - - - Dividends and Interest 78,625 158,035 577,133 200,406 1,014,199 Interest on loans - - - - - Investment appreciation/ (depreciation) (Note 2) - 335,948 1,987,123 2,014,604 4,337,675 Net investment income 78,625 493,983 2,564,256 2,215,010 5,351,874 Contributions Participants 182,752 498,001 1,038,155 497,338 2,216,246 Company - - - - - 182,752 498,001 1,038,155 497,338 2,216,246 Transfer (to) from other plans or funds 726,745 97,622 1,186,344 646,486 2,657,197 Less: Withdrawals and distributions Cash 450,131 598,480 989,347 1,342,816 3,380,774 Insurance contract reserve (Note 2) - - - - - Balance at end of year $1,561,571 $3,694,884 $10,365,079 $8,071,726 $23,693,260 *Parties in interest to the plan. 5. Allocation of Plan Income and Changes in Participants' Equity by Fund for the Year Ended December 31, 1995 (continued) Central Fixed Maine Asset Income Power Manager Asset Contract Company Income Manager Sub Portfolio Stock Fund* Fund* Fund* Total Balance at beginning of year $16,862,454 $11,274,857 $ 49,747 $111,976 $28,299,034 Investment income Dividends on Company Stock - 684,439 - - 684,439 Dividends and Interest 665,491 - 8,880 15,008 689,379 Interest on loans 150,147 - - - 150,147 Investment appreciation/ (depreciation) (Note 2) - 606,156 13,230 53,815 673,201 Net investment income 815,638 1,290,595 22,110 68,823 2,197,166 Contributions Participants 479,882 150,690 14,300 44,742 689,614 Company - 1,051,491 - - 1,051,491 479,882 1,202,181 14,300 44,742 1,741,105 Transfer (to) from other plans or funds (2,373,521) (1,958,344) 227,117 565,915 (3,538,833) Less: Withdrawals and distributions Cash 3,185,569 1,253,448 6,266 71,290 4,516,573 Insurance contract reserve (Note 2) 48,568 - - - 48,568 Balance at end of year $12,647,452 $10,555,841 $307,008 $720,166 $24,230,467 *Parties in interest to the plan. 5. Allocation of Plan Income and Changes in Participants' Equity by Fund for the Year Ended December 31, 1995 (continued) Asset Fidelity Manager Intermediate Growth Bond Fund* Fund* Total Balance at beginning of year $447,924 $ 4,100 $45,599,775 Investment income Dividends on Company Stock - - 684,439 Dividends and Interest 11,956 4,914 1,720,448 Interest on loans - - 150,147 Investment appreciation/ (depreciation) (Note 2) 121,407 4,586 5,136,869 Net investment income 133,363 9,500 7,691,903 Contributions Participants 65,269 9,980 2,981,109 Company - - 1,051,491 65,269 9,980 4,032,600 Transfer (to) from other plans or funds 365,263 128,319 (388,054) Less: Withdrawals and distributions Cash 198,969 - 8,096,316 Insurance contract reserve (Note 2) - - 48,568 Balance at end of year $812,850 $151,899 $48,888,476 *Parties in interest to the plan. Comparable information for 1994 can be found on Page F-29, attached. 5. Allocation of Plan Income and Changes in Participants' Equity by Fund for the Year Ended December 31, 1994 (continued) Retirement Government Money Fidelity Fidelity Market Balanced Magellan Equity Sub Portfolio Fund* Fund* Fund* Total Balance at beginning of year $ 724,631 $2,775,024 $5,172,212 $5,744,487 $14,416,354 Investment income Dividends on Company Stock - - - - - Dividends and Interest 30,487 93,616 224,533 183,872 532,508 Interest on loans - - - - - Investment appreciation/ depreciation (Note 2) - (262,207) (366,207) (125,714) (754,128) Net investment income 30,487 (168,591) (141,674) 58,158 (221,620) Contributions Participants 187,773 564,793 1,085,348 547,231 2,385,145 Company - - - - - 187,773 564,793 1,085,348 547,231 2,385,145 Transfer (to) from other plans or funds 115,102 188,539 660,727 (26,524) 937,844 Less: Withdrawals and distributions Cash 34,413 156,007 210,942 267,644 669,006 Insurance contract reserve (Note 2) - - - - - Balance at end of year $1,023,580 $3,203,758 $6,565,671 $6,055,708 $16,848,717 *Parties in interest to the plan. 5. Allocation of Plan Income and Changes in Participants' Equity by Fund for the Year Ended December 31, 1994 (continued) Central Fixed Maine Asset Income Power Manager Asset Contract Company Income Manager Sub Portfolio Stock Fund* Fund* Fund* Total Balance at beginning of year $18,068,403 $10,720,419 $ - $ - $28,788,822 Investment income Dividends on Company Stock - 668,186 - - 668,186 Dividends and Interest 902,864 - 122 262 903,248 Interest on loans 140,210 - - - 140,210 Investment appreciation/ depreciation (Note 2) - (1,104,832) (118) (1,885) (1,106,835) Net investment income 1,043,074 (436,646) 4 (1,623) 604,809 Contributions Participants 678,882 141,200 370 2,502 822,954 Company - 1,124,831 - - 1,124,831 678,882 1,266,031 370 2,502 1,947,785 Transfer (to) from other plans or funds (1,518,514) 288,023 49,373 111,097 (1,070,021) Less: Withdrawals and distributions Cash 1,409,391 562,970 - - 1,972,361 Insurance contract reserve (Note 2) - - - - - Balance at end of year $16,862,454 $11,274,857 $49,747 $111,976 $28,299,034 *Parties in interest to the plan. 5. Allocation of Plan Income and Changes in Participants' Equity by Fund for the Year Ended December 31, 1994 (continued) Fidelity Asset Inter- Manager mediate Growth Bond Fund* Fund* Total Balance at beginning of year $ - $ - $43,205,176 Investment income Dividends on Company Stock - - 668,186 Dividends and Interest 7,318 18 1,443,092 Interest on loans - - 140,210 Investment appreciation/ depreciation (Note 2) (14,041) (8) (1,875,012) Net investment income (6,723) 10 376,476 Contributions Participants 2,467 - 3,210,566 Company - - 1,124,831 2,467 - 4,335,397 Transfer (to) from other plans or funds 452,180 4,090 324,093 Less: Withdrawals and distributions Cash - - 2,641,367 Insurance contract reserve (Note 2) - - - Balance at end of year $447,924 $4,100 $45,599,775 *Parties in interest to the plan Comparable information for 1993 can be found on Schedule II attached..
Central Maine Power Company Form 11-K - Year 1995 Schedule I Page 1 of 3 Central Maine Power Company Employee Savings and Investment Plan For Non-Union Employees (B) Item 27a Schedule of Assets Held for Investment Purposes At December 31, 1995 Market/ Name of Issuer Contract Fund and Title of Issue Units (A) Cost Value Retirement Government Money Market Fund 1,987,170 $ 1,987,170 $ 1,987,170 Fidelity Balanced Fund* 381,771 4,957,222 5,161,539 Fidelity Magellan Fund* 175,034 13,043,512 15,049,441 Equity Fund* 503,668 8,652,940 11,367,795 Asset Manager Income Fund* 34,091 381,163 395,458 Asset Manager Fund* 52,614 780,153 833,927 Asset Manager Growth Fund* 69,889 958,461 1,060,209 Fidelity Intermediate Bond Fund* 17,032 172,984 177,302 Fixed Income Sun Life Insurance of America (1994 Contracts) Contract rate 7.50% Maturity date 12/31/98 1,057,600 1,057,600 1,057,600 Pacific Mutual Life Insurance Company (1982 Contracts) Contract rate 8.00% 625,434 625,434 625,434 Principal Mutual (1990 Contracts) Contract rate 8.94% Maturity date 01/02/96. 1,098,689 1,098,689 1,098,689 State Mutual (1992 Contracts) Contract rate 5.80% Maturity date 06/30/97 864,886 864,886 864,886 Lincoln National (1992 Contracts) Contract rate 5.94% Maturity date 08/01/97. 1,202,087 1,202,087 1,202,087 New York Life Insurance Company (1991 Contracts). Contract rate 8.90% Maturity date 01/02/96 875,496 875,496 875,496 Life of Virginia (1993 Contracts) Contract rate 6.50% Maturity date 6/30/97 2,046,569 2,046,569 2,046,569 *Parties in interest to the plan. Central Maine Power Company Form 11-K - Year 1995 Schedule I Page 2 of 3 Central Maine Power Company Employee Savings and Investment Plan For Non-Union Employees (B) Item 27a Schedule of Assets Held for Investment Purposes At December 31, 1995 Market/ Name of Issuer Contract Fund and Title of Issue Units (A) Cost Value Fixed Income (continued) Peoples Security Life (1993 Contracts) Contract rate 5.41% Maturity date 01/02/96. 1,542,188 1,542,188 1,542,188 Confederation Life Insurance Company (1993 Contracts) (See Note 2 to Financial Statements) 3,251,420 3,251,420 3,251,420 Executive Life Insurance Company (1989 Contract) (See Note 2 to Financial Statements) 284,898 284,898 284,898 Peoples Security Life (1995 Contracts) Contract rate 4.92% Maturity date 04/01/96. 3,263,224 3,263,224 3,263,224 Fidelity-Short-term Investment Fund (at par value)* Contract rate 5.97%. 977,412 977,412 977,412 Total Fixed Income Fund 17,089,903 17,089,903 Central Maine Power Company Stock Central Maine Power Company Stock* Shares 1,117,005 16,162,918 16,056,947 Fidelity U. S. Government Reserve Pool (at par value)* 329,043 329,043 329,043 Total CMP Stock Fund 16,491,961 16,385,990 Total Investments All Funds 64,515,469 69,508,734 Participants Loans Receivable 2,740,260 2,740,260 Grand Total $67,255,729 $72,248,994
*Parties in interest to the plan. Central Maine Power Company Form 11-K - Year 1995 Schedule I Page 3 of 3 Central Maine Power Company Employee Savings and Investment Plan For Non-Union Employees Notes to Schedule I - Investments (A) "Units," except for shares of Company stock, indicates each Fund's share of the total units associated with pooled funds, which are accumulations of investments from numerous entities, including the Plan. (B) The investments of the Central Maine Power Company Employee Savings and Investment Plan for Non-Union Employees are commingled in a common/collective trust with the investments of one other employee savings and investment plan maintained by the Company and its affiliates. Schedule I presents the consolidated investments of both plans. This Plan's share of the pooled investments is as follows: Market/Contract Cost Value Retirement Government Money Market Portfolio $ 1,556,811 $ 1,556,811 Fidelity Balanced Fund* 3,534,833 3,682,567 Fidelity Magellan Fund* 8,965,311 10,338,585 Equity Fund* 6,118,435 8,058,434 Fixed Income Contract Portfolio 11,216,739 11,216,739 Central Maine Power Company Stock* 10,311,507 10,453,820 Asset Manager Income Fund* 295,763 306,660 Asset Manager Fund* 672,605 719,237 Asset Manager Growth Fund* 727,693 811,315 Fidelity Intermediate Bond Fund* 147,927 151,692 $43,547,624 $47,295,860 *Parties in interest to the plan. Central Maine Power Company Form 11-K - Year 1995 Schedule II Page 1 of 2 Central Maine Power Company Employee Savings and Investment Plan For Non-Union Employees 5. Allocation of Plan Income and Changes in Participants' Equity by Fund for the Year Ended December 31, 1993 Retirement Government Money Fidelity Fidelity Market Balanced Magellan Equity Sub Portfolio Fund* Fund* Fund* Total Balance at beginning of year $424,582 $1,034,219 $2,396,013 $5,327,085 $ 9,181,899 Investment income Dividends on Company Stock - - - - - Dividends and interest 16,902 187,317 402,846 227,914 834,979 Interest on loans - - - - - Net realized gain (loss) on disposition of investments - 11,977 80,387 47,790 140,154 Unrealized appreciation (depreciation) of investments (Note 2) - 58,137 225,314 252,577 536,028 Net investment income 16,902 257,431 708,547 528,281 1,511,161 Contributions Participants 225,319 522,629 963,476 564,324 2,275,748 Company - - - - - 225,319 522,629 963,476 564,324 2,275,748 Transfer (to) from other plans or funds 68,244 1,011,594 1,203,866 (366,982) 1,916,722 Less: Withdrawals and distributions Cash 10,416 50,849 99,690 308,221 469,176 Insurance contract reserve (Note 2) - - - - - Balance at end of year $724,631 $2,775,024 $5,172,212 $5,744,487 $14,416,354
*Parties in interest to the plan. Central Maine Power Company Form 11-K - Year 1995 Schedule II Page 2 of 2 Central Maine Power Company Employee Savings and Investment Plan For Non-Union Employees 5. Allocation of Plan Income and Changes in Participants' Equity by Fund for the Year Ended December 31, 1993 (continued) Central Fixed Maine Income Power Contract Company Portfolio Stock Fund* Total Balance at beginning of year $17,246,334 $16,248,806 $42,677,039 Investment income Dividends on Company Stock - 961,151 961,151 Dividends and interest 1,046,636 - 1,881,615 Interest on loans 128,857 - 128,857 Net realized gain (loss) on disposition of investments - (140,832) (678) Unrealized appreciation (depreciation) of investments (Note 2) - (5,674,328) (5,138,300) Net investment income 1,175,493 (4,854,009) (2,167,355) Contributions Participants 752,804 164,654 3,193,206 Company - 1,169,093 1,169,093 752,804 1,333,747 4,362,299 Transfer (to) from other plans or funds (432,147) (1,486,314) (1,739) Less: Withdrawals and distributions Cash 424,081 521,811 1,415,068 Insurance contract reserve (Note 2) (250,000) - (250,000) Balance at end of year $18,068,403 $10,720,419 $43,205,176
*Parties in interest to the plan. Central Maine Power Company Employee Savings and Investment Plan For Non-Union Employees Item 27d Schedule of Reportable Transactions For the Year Ended December 31, 1995 No. of Current Trans. Purchase Trans. Selling Cost of Value of Net Description of Asset Purchased Price Matured Price Asset Asset Gain/(Loss) Fidelity Balanced Fund* 162 1,911,968 90 1,780,672 1,779,892 1,680,902 99,770 Fidelity Magellan Fund* 192 5,055,056 81 3,264,435 2,814,969 2,612,195 652,240 Equity Fund* 161 2,019,806 70 2,029,311 1,687,211 1,713,473 315,838 Retirement Government Money Market Portfolio 159 7,155,251 95 6,620,863 6,620,863 6,620,863 -- Fixed Income Contract Portfolio (Schedule I) 166 3,216,236 156 5,723,042 5,723,042 5,723,042 -- Central Maine Power Company Stock Fund: CMP Common Stock* 210 6,629,923 174 7,858,602 7,816,997 8,403,163 (544,561) Fidelity U.S. Government Reserve Pool* 210 10,094,066 174 10,210,152 10,210,152 10,210,152 -
*Parties in interest to the plan. CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation of our report, included in this Form 11-K, into the Company's previously filed Registration Statement on Form S-8 (File No. 33-44754). COOPERS & LYBRAND L.L.P. Portland, Maine June 27, 1996 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation of our report, included in this Form 11-K, into the Company's previously filed Registration Statement on Form S-8 (File No. 33-44754). ARTHUR ANDERSEN LLP Boston, Massachusetts June 27, 1996 Central Maine Power Company Form 11-K - Year 1995 Central Maine Power Company Employee Savings and Investment Plan For Non-Union Employees SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Trustee (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. Central Maine Power Company Employee Savings and Investment Plan for Non-Union Employees (Name of Plan) Date: June 28 , 1996 D. E. Marsh, Vice President, Corporate Services, Treasurer and Chief Financial Officer, Member, Employee Savings and Investment Plan Committee, Central Maine Power Company EX-99.2 3 S&I UNION Exhibit 99-2 FORM 11-K FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the fiscal year ended December 31, 1995 [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from to Commission file number A. Full title of the plan and the address of the plan, if different from that of the issuer named below: CENTRAL MAINE POWER COMPANY EMPLOYEE SAVINGS AND INVESTMENT PLAN FOR UNION EMPLOYEES B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: CENTRAL MAINE POWER COMPANY 83 EDISON DRIVE AUGUSTA, MAINE 04336 Central Maine Power Company Form 11-K - Year 1995 Central Maine Power Company Employee Savings and Investment Plan For Union Employees REQUIRED INFORMATION The following financial statements shall be furnished for the plan: (a) Financial Statements Page No. Reports of Independent Public Accountants F-1, F-2 Statements of Financial Condition F-3 Statements of Income and Changes in Participants' Equity F-4 Notes to Financial Statements F-5 through F-28 Supplemental Schedules: I - Item 27a Schedule of Assets Held for Investment Purposes at December 31, 1995 S-1 through S-4 II - Allocation of Plan Income and Changes in Plan Equity to Investment Programs S-5 through S-6 III - Item 27d Schedule of Reportable Transactions for the Year Ended December 31, 1995 S-7 (b) Exhibits Consents of Independent Public Accountants E-1 through E-2 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Board of Directors of Central Maine Power Company: We have audited the accompanying statements of financial condition of the CENTRAL MAINE POWER COMPANY EMPLOYEE SAVINGS AND INVESTMENT PLAN FOR UNION EMPLOYEES as of December 31, 1995 and 1994, and the related statements of income and changes in participants equity for the years then ended. These financial statements are the responsibility of the Plan's Management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Central Maine Power Company Employee Savings and Investment Plan for Union Employees as of December 31, 1995 and 1994, and its income and changes in participants' equity for the years then ended, in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes at December 31, 1995 and reportable transactions for the year ended December 31, 1995 are presented for purposes of additional analysis and are not a required part of the basic financial statements but are supplementary information required by The Department of Labor Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. COOPERS & LYBRAND L.L.P. Portland, Maine June 14, 1996 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Board of Directors of Central Maine Power Company: We have audited the accompanying statements of financial condition of the CENTRAL MAINE POWER COMPANY EMPLOYEE SAVINGS AND INVESTMENT PLAN FOR UNION EMPLOYEES as of December 31, 1993, and the related statements of income and changes in participants' equity for the year then ended. These financial statements and the supplemental schedules listed in the accompanying index are the responsibility of the Plan Administrator. Our responsibility is to express an opinion on these financial statements and schedules based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Plan Administrator, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Central Maine Power Company Employee Savings and Investment Plan for Union Employees as of December 31, 1993, and its income and changes in participants' equity the year ended December 31, 1993, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules listed in the accompanying index are presented for purposes of additional analysis and are not a required part of the basic financial statements but are supplementary information required by The Department of Labor Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Arthur Andersen LLP Boston, Massachusetts June 3, 1994 Central Maine Power Company Form 11-K - Year 1995 Central Maine Power Company Employee Savings and Investment Plan For Union Employees Statements of Financial Condition (See Note 4) As of December 31, Assets 1995 1994 Investments at market value (cost $20,558,687 and $19,905,988 respectively) (Notes 1 and 2) (Schedule I) $22,132,368 $18,962,758 Company dividends receivable 91,942 89,792 Other receivables 92,602 102,148 Participant loans receivable (Note 1) 1,122,924 1,098,470 $23,439,836 $20,253,168 Liabilities and Participants' Equity Security purchase payable $ 85,419 $ 29,134 Insurance contract reserve (Note 2) 83,465 100,000 Participants' equity (Notes 1 and 5) (Schedule III) 23,270,952 20,124,034 $23,439,836 $20,253,168 The accompanying notes are an integral part of these financial statements. Central Maine Power Company Form 11-K - Year 1995 Central Maine Power Company Employee Savings and Investment Plan For Union Employees Statements of Income and Changes in Participants' Equity For the Years Ended December 31, 1995, 1994 and 1993 (See Note 5 and Schedule II) 1995 1994 1993 Balance at beginning of year $20,124,034 $17,921,527 $16,499,918 Investment income: Dividends on Company Stock 372,634 347,363 419,514 Interest 781,553 597,006 741,582 Interest on loans 119,309 82,388 40,040 Investment appreciation/ (depreciation) (Note 2) 1,814,072 (416,352) (2,259,137) Net investment income 3,087,568 610,405 (1,058,001) Contributions: Participants 1,723,713 1,818,148 1,981,191 Company 618,176 685,783 709,377 2,341,889 2,503,931 2,690,568 Transfers (to) from other plans (Note 1) 88,237 (281,755) 10,598 Less: Withdrawals and distributions Cash 2,387,311 630,074 121,556 Insurance contract reserve (Note 2) 16,535 - (100,000) Balance at end of year $23,270,952 $20,124,034 $17,921,527
The accompanying notes are an integral part of these financial statements. Central Maine Power Company Form 11-K - Year 1995 Central Maine Power Company Employee Savings and Investment Plan For Union Employees Notes to Financial Statements December 31, 1995 1. Description of the Plan The Central Maine Power Company Employee Savings and Investment Plan for Union Employees ("the Plan" or "the Union Plan") was adopted by the Board of Directors of Central Maine Power Company ("the Company") on November 15, 1984 and became effective January 1, 1985. Certain pertinent features of the Plan, as amended, are discussed below. a. Eligibility of Participants Each employee of the Company who is in a unit of employees covered by a collective bargaining agreement is eligible to join the Plan after completing one year of service during which the employee has worked at least 1,000 hours. b. Elective Contributions by Participants Each participant elects a salary reduction percentage to be contributed by the Company on their behalf. Participants may elect to have the Company contribute from 2% to 15% (in multiples of 1%) of their basic compensation to the Plan through a salary reduction agreement. c. Matching Contributions by the Company The Company contributes to the Plan an amount equal to 60% of the first 5% of the salary reduction amount contributed on behalf of each participant provided, however, that the total contribution that the Company is obligated to make for any year does not exceed the maximum amount deductible from the Company's gross income under applicable provisions of the Internal Revenue Code. In 1995, 1994 and 1993, these provisions limited the annual employee contribution excluded from taxable income to the lesser of 25% of total compensation or approximately $9,200, $9,200 and $9,000, respectively. The Company's matching contribution may be made from time to time during each year and shall be paid in full as of the date the Company files its federal income tax return for that year. d. Investment Options All contributions made under the Plan are commingled in a common/collective trust that also contains the assets of one other employee savings and investment plan of the Company and its affiliated companies. As of December 31, 1995 the contributions were invested by the Trustee, Fidelity Management Trust Company, based upon 1. Description of the Plan (continued) d. Investment Options (continued) participant election in one or more of ten Funds. Contributions to all Funds may be invested temporarily in short-term investments prior to purchase of primary Fund securities. The Funds consist of: Retirement Government Money Market Portfolio - An income fund comprised of short-term, high-quality debt obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities. Fidelity Balanced Fund - A diversified fund comprised of high-yielding securities, including common stocks and bonds. Fidelity Magellan Fund - A fund comprised primarily of common stock and securities convertible into common stock seeking capital appreciation. Equity Fund - The Fidelity U. S. Equity Index Fund comprised of common stock, which attempts to duplicate the composition of the Standard & Poor's Daily Stock Price Index of 500 Common Stocks during the current year. The fund presents a possible approach for investing in a diversified portfolio of common stocks. Fixed Income Contract Portfolio - A fixed-income fund comprised of investments yielding a fixed rate of return, as selected by the Trustee, issued mainly by insurance companies and banks. This fund is being phased-out and will no longer accept contributions as of March, 1996. Central Maine Power Company Stock Fund - A fund comprised of the common shares of the Company. Asset Manager Income Fund - A fund emphasizing investment in bonds and short-term instruments for income and price stability, but allows some investment in stocks for their potential to grow and keep pace with inflation. Asset Manager Fund - A fund allocating its assets among and across domestic and foreign stocks, bonds and short-term instruments of U.S. and foreign issuers, including those in emerging markets. 1. Description of the Plan (continued) d. Investment Options (continued) Asset Manager Growth Fund - This fund seeks to maximize a total return over the long term; the Fund allocates its assets among three principal asset classes: stocks, bonds, and short-term instruments. However, it may invest in many types of domestic and foreign securities. Fidelity Intermediate Bond Fund - A fund that seeks high current income by investing in domestic and foreign investment-grade securities with intermediate maturities and good credit quality. Upon enrollment, participants elect the Fund or Funds in which to invest their contributions. The percentage of such contributions invested in a particular Fund must be a multiple of 10%. Participants may change the investment of their future contributions (in multiples of 10% of such contributions) or transfer a portion from one Fund to another. Changes and transfers can be made at any time. All Company contributions are initially invested in the Central Maine Power Company Stock Fund. Dividends, interest and other distributions received on the assets held in each Fund shall be reinvested in the respective Fund. Participants may transfer all or a portion of the Company contributions made on their behalf out of the CMP Company Stock Fund. The number of participants in each Fund at December 31, 1995 and 1994 was as follows: Number of Participants Fund Type 1995 1994 Retirement Government Money Market 207 230 Fidelity Balanced Fund 394 439 Fidelity Magellan Fund 580 587 Equity Fund 517 526 Fixed Income Contract Portfolio 770 770 Asset Manager Income Fund 18 1 Asset Manager Fund 32 2 Asset Manager Growth Fund 64 6 Fidelity Intermediate Bond Fund 14 - Central Maine Power Company Stock Fund 824 931 1. Description of the Plan (continued) d. Investment Options (continued) The total number of participants in the Plan was 1,039 and 977 at December 31, 1995 and 1994, respectively. The aggregate participation in the ten Funds is greater than the number of employees participating because employees have the option of investing in one or more Funds. e. Vesting Each participant's account consists of their contributions and any rollover money, the matching Company contribution and any net earnings thereon. Participants are 100% vested in their account balances. f. Withdrawals and Distributions Withdrawals may be made only for reasons of hardship. With the consent of the Company's Employee Savings and Investment Plan Committee, a participant may elect to make a hardship withdrawal, as determined in accordance with the Plan provisions, of up to 100% of their account. Distributions made from the Funds occur as a result of termination of employment, death, retirement or permanent disability no later than 60 days after the end of the Plan year, unless under certain circumstances retiring or disabled participants elect otherwise. g. Loans Participants may borrow amounts in the aggregate of not more than 50% of their account balance, subject to a maximum loan of $50,000. Loans bear interest at a rate equal to the current rate of interest being charged by the Central Maine Power Company Employees Federal Credit Union for loans secured by share account balances. The maximum term of the loans is generally five years. Loans outstanding as of December 31, 1995 and 1994 amounted to $1,122,924 and $1,098,470, respectively. 2. Summary of Significant Accounting Policies a. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income, contributions and distribution during the reporting period. Actual results could differ from those estimates. b. Investment Valuation Investments other than fixed income contracts with insurance companies are stated at market value. Fixed income contracts are stated at contract value which is cost plus interest at the stated rate. At December 31, 1995 Fidelity held a fixed income contract with Executive Life Insurance Company (Executive Life) with a contract value of approximately $285,000. The Union Plan holds approximately $83,000 of the Executive Life contract. On April 11, 1991 the State of California insurance regulators placed Executive Life under conservatorship. The regulators stated Executive Life would continue to pay monthly annuities, but placed a moratorium on policy surrenders and loans. The Conservation Court of California approved the sale of Executive Life to an investor group - Altus Finance (Altus) and Mutuelle Assurance Artisanale de France (Mutuelle). Under this rehabilitation agreement, Altus agreed to pay $3.25 billion for the Executive Life high risk bonds while Mutuelle agreed to infuse $300 million in capital. Together, the agreement formed a new company, Aurora National Life Assurance Company. This rehabilitation plan was appealed on several points to the California Court of Appeal and subsequently remanded to the Superior Court to be corrected. On August 13, 1993, the Los Angeles Superior Court approved a modified rehabilitation/liquidation plan for Executive Life. The modified plan became effective September 3, 1993. Under the terms of the modified rehabilitation plan, contract holders were given a choice to either opt-in or opt-out of a 5-year fixed income contract with Aurora National Life Assurance Company, the successor to Executive Life. 2. Summary of Significant Accounting Policies (continued) b. Investment Valuation (continued) Both options meant some loss of original investment to participants, and both were clouded by continuing litigation and complicated by a variety of "holdback" amounts. Under opt-in, participants would receive an initial restructured value of 77% with some potential to realize 86%. Under opt-out, participants would receive an initial restructured value of 56% (assuming favorable resolution of pending litigation) with some potential for eventually realizing a total of 84%. The Company retained Townshend & Schupp, an insurance research and consulting firm, to assist in analyzing the potential value of the options. After review of all the relevant facts and the advice of Townshend & Schupp the Company selected the opt-out approach. During 1993, the Plan recorded a reserve of $100,000 reflecting a reduction in the value of the Executive Life contract to the 84% level associated with their opt-out selection. As discussed further below, the Company and other parties continue to pursue alternatives in order to protect and enhance the ultimate recovery levels of the Executive Life Contract. A number of uncertainties regarding the final settlement of Executive Life issues existed during 1994 and into the first quarter of 1995, including pending litigation and the impact of carrying out the remaining steps of the modified rehabilitation plan. Three subsequent legal challenges existed: one to the general modified rehabilitation plan, one to the transfer of Executive Life's high-yield bonds to its successor, and another to the priority system for dealing with Executive Life contract holders' claims. After the California Court of Appeals issued a decision in February 1995 asserting the priority status of Executive Life contracts held in pension Guaranteed Insurance Contracts and the period for further appeals expired in August 1995, settlement agreements were signed by claimants in late August. The stipulation provided for release of the holdback funds in the fall of 1995 to contract holders who "opted out," with subsequent distributions from the remainder of the trust as assets are liquidated. On October 26, 1995 the Plan received a distribution of $1.9 million or 88% of the original frozen assets. Further distributions are expected as conditions for liquidating assets improve. Over the next several years, full recovery of the original investment is expected. However, the Plan continues to record a reserve for the remaining outstanding value of the contract. In October 1995, Fidelity Management Trust Company was named successor trustee for the Executive Life contract formerly held in trust by State Street Bank. As successor trustee, Fidelity assumed responsibility for the October 1995 distribution, as well as all 2.Summary of Significant Accounting Policies (continued) b. Investment Valuation (continued) future distributions, to individual participant accounts. The March 1995 agreement between State Street Bank and the Company remains unchanged. As previously reported, the Company and its affiliates filed suit against State Street Bank in June 1994, seeking damages for losses arising out of the Bank's purchase and management of the Executive Life contract. The parties agreed to dismiss the suit under an agreement whose terms remain confidential. It is expected that along with resolution of the rehabilitation proceedings, this settlement may result in full recovery of the original Executive Life contract. Requests from Plan participants for payments or transfers of funds from the Fixed Income Fund will continue to be processed, but the shares associated with the remaining Executive Life contract continue to be temporarily frozen. At December 31, 1995, Fidelity held a fixed income contract with Confederation Life Insurance Company (Confederation Life) with a contract value of approximately $3.3 million. The Union Plan holds approximately $1 million of the Confederation Life contract. On August 11, 1994, Canada's Office of the Superintendent of Financial Institutions took over the Confederation Life Insurance Company. On August 12, 1994, the State of Michigan (Confederation Life's port of entry) filed suit to seize the Confederation Life's assets. In response to these regulatory actions, the Association of Confederation Life contractors (ACLIC) was formed. The ACLIC membership includes persons that hold or have an interest in Guaranteed Investment Contracts issued by Confederation Life. Fidelity is actively participating in the ACLIC to represent and protect the interests of the Company. There is no way to predict at this time the outcome of the Confederation Life situation. The Deputy Rehabilitator appointed by the Michigan Department of Insurance has indicated that he expects the full August 1994 account balances to be recovered. As of April 1996, ACLIC's analysis of a draft plan of reorganization estimates that total recoveries may be in the range of 101-112% for United States policyholders. The key variables in the analysis are: 1) the United States trust's recovery of Canadian notes; 2) a Canadian equalizing payment to bring United States recoveries to a similar level; and 3) the method for determining asset allocation among blocks of business. A final rehabilitation plan should be filed with the Commissioner in the spring of 1996. There is a reasonable expectation the plan could be confirmed during 1997, with initial payouts 2. Summary of Significant Accounting Policies (continued) b. Investment Valuation (continued) from liquid assets the same year. Approximately 85-95% of the 8/11/94 contract values are deemed very liquid, and the remaining contingent claims would be held in a liquidating trust. In November 1995, Confederation Life in Rehabilitation offered contract holders the option of receiving .75% of frozen values each year, pending outcome of the rehabilitation plan. The Non-union Plan received a 1.5% payout in March 1996, .75% each for 1994 and 1995. Payments were distributed to participants' accounts according to their current investment elections. The Company has notified Fidelity, and Fidelity has acknowledged, its fiduciary obligations regarding its purchase of the Confederation Life contract. In addition, the Company, as of the close of business on August 16, 1994, segregated approximately $3 million of the Plan's Fixed Income Fund for the common/collective trust and placed hold on all transactions with regard to that amount. This action was taken to ensure that all Plan participants invested in the Fixed Income Fund at the time of seizure by Canadian and Michigan authorities are treated equally. c. Investment Appreciation/Depreciation Investments are stated at fair value as determined based upon quoted market prices. The plan presents in the statement of changes in net assets the investment appreciation (depreciation) in the fair value of its investments which consists of the realized gains or losses and the unrealized appreciation (depreciation) on those investments. Realized and unrealized appreciation/(depreciation) of Plan assets are based on the value of the assets at the beginning of the Plan year or at the time of purchase during the year. The following table depicts this Employee Retirement Income Security Act of 1974 method for funds which generate such appreciation/(depreciation). 2. Summary of Significant Accounting Policies (continued) c. Investment Appreciation/(Depreciation) (continued) Fidelity Fidelity Balanced Magellan Equity Sub Fund Fund Fund Total Market value at December 31, 1992 $ 324,649 $ 787,047 $1,588,025 $2,699,721 Current value of sales during 1993 (72,245) (291,105) (368,703) (732,053) Cost of purchases during 1993 620,466 1,380,938 601,719 2,603,123 Unrealized appreciation/(depreciation) 15,046 71,644 80,268 166,958 Market value at December 31, 1993 887,916 1,948,524 1,901,309 4,737,749 Current value of sales during 1994 (116,998) (253,081) (206,042) (576,121) Cost of purchases during 1994 449,775 1,078,391 534,880 2,063,046 Unrealized appreciation/(depreciation) (81,173) (125,068) (40,484) (246,725) Market value at December 31, 1994 1,139,520 2,648,766 2,189,663 5,977,949 Current value of sales during 1995 (327,056) (592,597) (448,480) (1,368,133) Cost of purchases during 1995 562,453 1,989,487 887,132 3,439,072 Unrealized appreciation/(depreciation) 104,055 665,200 679,574 1,448,829 Market value at December 31, 1995 $1,478,972 $4,710,856 $3,307,889 $9,497,717 2. Summary of Significant Accounting Policies (continued) c. Investment Appreciation/(Depreciation) (continued) Asset Company Manager Asset Stock Income Manager Sub Fund Fund Fund Total Market value at December 31, 1992 $6,145,856 $ - $ - $6,145,856 Current value of sales during 1993 (1,079,865) - - (1,079,865) Cost of purchases during 1993 2,068,415 - - 2,068,415 Unrealized appreciation/(depreciation) (2,449,434) - - (2,449,434) Market value at December 31, 1993 4,684,972 - - 4,684,972 Current value of sales during 1994 (528,077) - - (528,077) Cost of purchases during 1994 1,360,546 16,920 7,288 1,384,754 Unrealized appreciation/(depreciation) (121,054) 48 (58) (121,064) Market value at December 31, 1994 5,396,387 16,968 7,230 5,420,585 Current value of sales during 1995 (2,588,503) (22,384) (28,600) (2,639,487) Cost of purchases during 1995 2,958,731 90,757 129,053 3,178,541 Unrealized appreciation/(depreciation) 165,555 3,457 7,007 176,019 Market value at December 31, 1995 $5,932,170 $88,798 $114,690 $6,135,658
2. Summary of Significant Accounting Policies (continued) c. Investment Appreciation/(Depreciation) (continued) Asset Fidelity Manager Intermediate Growth Bond Fund Fund Total Market value at December 31, 1992 $ - $ - $ 8,845,577 Current value of sales during 1993 - - (1,811,918) Cost of purchases during 1993 - - 4,671,538 Unrealized appreciation/(depreciation) - - (2,282,476) Market value at December 31, 1993 - - 9,422,721 Current value of sales during 1994 (1,035) - (1,105,233) Cost of purchases during 1994 19,356 - 3,467,156 Unrealized appreciation/(depreciation) (463) - (368,252) Market value at December 31, 1994 17,858 - 11,416,392 Current value of sales during 1995 (16,110) (2,726) (4,026,456) Cost of purchases during 1995 229,127 27,739 6,874,479 Unrealized appreciation/(depreciation) 18,018 598 1,643,464 Market value at December 31, 1995 $248,893 $25,611 $15,907,879
2. Summary of Significant Accounting Policies c. Investment Appreciation/Depreciation (continued) The market value of Central Maine Power Company stock was $12.50 at June 25, 1996 and $14.375 per share at December 31, 1995. d. Expenses All expenses of administration of the Plan, including Trustee's and record keeper's fees, are paid by Central Maine Power Company. 3. Federal Income Taxes The Internal Revenue Service (IRS) has issued a favorable determination letter with respect to the Plan's tax-exempt status under Sections 401(a) and 401(k) of the Internal Revenue Code. Therefore, no income taxes have been provided for in the accompanying financial statements. Elective contributions to the Plan made by the Company on behalf of employees are not subject to federal income taxes currently, as long as these contributions are below the maximum level derived in accordance with Section 401(k) regulations. Contributions and earnings thereon will, in general, be taxable upon distribution, although rules providing for additional deferral may apply with respect to certain distributions of Company stock. 4. Allocation of Plan Assets and Liabilities to Investment Programs As of December 31, 1995 Retirement Government Money Fidelity Fidelity Market Balanced Magellan Equity Sub Assets Portfolio Fund* Fund* Fund* Total Investments at market value (cost $20,558,687) (Notes 1 and 2) (Schedule I) $424,292 $1,478,972 $4,710,856 $3,307,889 $9,922,009 Company dividends receivable - - - - - Other receivables 2,795 7,231 15,555 7,804 33,385 Participant loans receivable (Note 1) - - - - - $427,087 $1,486,203 $4,726,411 $3,315,693 $9,955,394 Liabilities and Participants' Equity Security purchase payable $ $ $ $ $ Insurance contract reserve (Note 2) Participants' equity (Notes 1 and 5) 427,087 1,486,203 4,726,411 3,315,693 9,955,394 $427,087 $1,486,203 $4,726,411 $3,315,693 $9,955,394
*Parties in interest to the plan. 4. Allocation of Plan Assets and Liabilities to Investment Programs (continued) As of December 31, 1995 Central Fixed Maine Asset Income Power Manager Asset Contract Company Income Manager Sub Assets Portfolio Stock Fund* Fund* Fund* Total Investments at market value (Notes 1 and 2) (Schedule I) $5,800,197 $5,932,170 $88,798 $114,690 $11,935,855 Company dividends receivable - 91,942 - - 91,942 Other receivables 8,695 48,749 204 546 58,194 Participant loans receivable (Note 1) 1,122,924 - - - 1,122,924 $6,931,816 $6,072,861 $89,002 $115,236 $13,208,915 Liabilities and Participants' Equity Security purchase payable $ $ 85,419 $ $ $ 85,419 Insurance contract reserve (Note 2) 83,465 83,465 Participants' equity (Notes 1 and 5) 6,848,351 5,987,442 89,002 115,236 13,040,031 $6,931,816 $6,072,861 $89,002 $115,236 $13,208,915
*Parties in interest to the plan. 4. Allocation of Plan A9ssets and Liabilities to Investment Programs (continued) As of December 31, 1995 Asset Fidelity Manager Intermediate Growth Bond Assets Fund* Fund* Total Investments at market value (Notes 1 and 2) (Schedule I) $248,893 $25,611 $22,132,368 Company dividends receivable 91,942 Other receivables 902 121` 92,602 Participant loans receivable (Note 1) 1,122,924 $249,795 $25,732 $23,439,836 Liabilities and Participants' Equity Security purchase payable $ $ $ 85,419 Insurance contract reserve (Note 2) 83,465 Participants' equity (Notes 1 and 5) 249,795 25,732 23,270,952 $249,795 $25,732 $23,439,836
*Parties in interest to the plan. 4. Allocation of Plan Assets and Liabilities to Investment Programs (continued) As of December 31, 1994 Retirement Government Money Fidelity Fidelity Market Balanced Magellan EquitySub Assets Portfolio Fund* Fund* Fund* Total Investments at market value (cost $19,905,988) (Notes 1 and 2) (Schedule I) $375,216 $1,139,520 $2,648,766 $2,189,663 $6,353,165 Company dividends receivable - - - - - Other receivables 4,069 9,275 20,003 11,117 44,464 Participant loans receivable (Note 1) - - - - - $379,285 $1,148,795 $2,668,769 $2,200,780 $6,397,629 Liabilities and Participants' Equity Security purchase payable $ - $ - $ - $ - $ - Insurance contract reserve (Note 2) - - - - - Participants' equity (Notes 1 and 5) 379,285 1,148,795 2,668,769 2,200,780 6,397,629 $379,285 $1,148,795 $2,668,769 $2,200,780 $6,397,629
*Parties in interest to the plan. 4. Allocation of Plan Assets and Liabilities to Investment Programs (continued) As of December 31, 1994 Central Fixed Maine Asset Income Power Manager Asset Contract Company Income Manager Sub Assets Portfolio Stock Fund* Fund* Fund* Total Investments at market value (Notes 1 and 2) (Schedule I) $7,171,150 $5,396,387 $16,968 $7,230 $12,591,735 Company dividends receivable - 89,792 - - 89,792 Other receivables 20,864 36,820 - - 57,684 Participant loans receivable (Note 1) 1,098,470 - - - 1,098,470 $8,290,484 $5,522,999 $16,968 $7,230 $13,837,681 Liabilities and Participants' Equity Security purchase payable $ - $ 29,134 $ - $ - $ 29,134 Insurance contract reserve (Note 2) 100,000 - - - 100,000 Participants' equity (Notes 1 and 5) 8,190,484 5,493,865 16,968 7,230 13,708,547 $8,290,484 $5,522,999 $16,968 $7,230 $13,837,681
*Parties in interest to the plan. 4. Allocation of Plan Assets and Liabilities to Investment Programs (continued) As of December 31, 1994 Asset Fidelity Manager Intermediate Growth Bond Assets Fund* Fund* Total Investments at market value (Notes 1 and 2) (Schedule I) $17,858 $ - $18,962,758 Company dividends receivable - - 89,792 Other receivables - - 102,148 Participant loans receivable (Note 1) - - 1,098,470 $17,858 $ - $20,253,168 Liabilities and Participants' Equity Security purchase payable $ - $ - $ 29,134 Insurance contract reserve (Note 2) - - 100,000 Participants' equity (Notes 1 and 5) 17,858 - 20,124,034 $17,858 $ - $20,253,168 *Parties in interest to the plan. 5. Allocation of Plan Income and Changes in Participants' Equity by Fund for the Year Ended December 31, 1995 Retirement Government Money Fidelity Fidelity Market Balanced Magellan Equity Sub Portfolio Fund* Fund* Fund* Total Balance at beginning of year $379,285 $1,148,795 $2,668,769 $2,200,780 $6,397,629 Investment income Dividends on Company Stock - - - - - Dividends and Interest 25,106 58,656 268,276 79,477 431,515 Interest on loans - - - - - Investment appreciation/ (depreciation) (Note 2) - 125,212 827,595 773,442 1,726,249 Net investment income 25,106 183,868 1,095,871 852,919 2,157,764 Contributions Participants 98,822 232,185 532,431 289,218 1,152,656 Company - - - - - 98,822 232,185 532,431 289,218 1,152,656 Transfer (to) from other plans or funds 137,844 61,304 680,639 216,940 1,096,727 Less: Withdrawals and distributions Cash 213,970 139,949 251,299 244,164 849,382 Insurance contract reserve (Note 2) - - - - - Balance at end of year $427,087 $1,486,203 $4,726,411 $3,315,693 $9,955,394
*Parties in interest to the plan. 5. Allocation of Plan Income and Changes in Participants' Equity by Fund for the Year Ended December 31, 1995 (continued) Fixed Central Asset Income Maine Power Manager Asset Contract Company Income Manager Sub Portfolio Stock Fund* Fund* Fund* Total Balance at beginning of year $8,190,484 $5,493,865 $16,968 $ 7,230 $13,708,547 Investment income Dividends on Company Stock - 372,634 - - 372,634 Dividends and Interest 340,586 - 2,716 2,288 345,590 Interest on loans 119,309 - - - 119,309 Investment appreciation/ (depreciation) (Note 2) - 54,079 5,236 7,839 67,154 Net investment income 459,895 426,713 7,952 10,127 904,687 Contributions Participants 385,607 137,853 6,643 11,250 541,353 Company - 618,176 - - 618,176 385,607 756,029 6,643 11,250 1,159,529 Transfer (to) from other plans or funds (1,201,783) (190,618) 67,224 111,060 (1,214,117) Less: Withdrawals and distributions Cash 1,002,387 498,547 9,785 24,431 1,535,150 Insurance contract reserve (Note 2) 16,535 - - - 16,535 Balance at end of year $6,848,351 $5,987,442 $89,002 $115,236 $13,040,031
*Parties in interest to the plan. 5. Allocation of Plan Income and Changes in Participants' Equity by Fund for the Year Ended December 31, 1995 (continued) Asset Fidelity Manager Intermediate Growth Bond Fund* Fund* Total Balance at beginning of year $ 17,858 $ - $20,124,034 Investment income Dividends on Company Stock - - 372,634 Dividends and Interest 3,554 894 781,553 Interest on loans - - 119,309 Investment appreciation/(depreciation) 20,013 656 1,814,072 Net investment income 23,567 1,550 3,087,568 Contributions Participants 27,230 2,474 1,723,713 Company - - 618,176 27,230 2,474 2,341,889 Transfer (to) from other plans or funds 183,919 21,708 88,237 Less: Withdrawals and distributions Cash 2,779 - 2,387,311 Insurance contract reserve (Note 2) - - 16,535 Balance at end of year $249,795 $25,732 $23,270,952
*Parties in interest to the plan. Comparable information for 1994 can be found on Page F-28 attached. 5. Allocation of Plan Income and Changes in Participants'Equity by Fund for the Year Ended December 31, 1994 (continued) Retirement Government Fidelity Fidelity Money Market Balanced Magellan Equity Sub Portfolio Fund* Fund* Fund* Total Balance at beginning of year $282,688 $ 899,597 $1,971,072 $1,914,755 $5,068,112 Investment income Dividends on Company Stock - - - - - Dividends and Interest 12,347 31,349 85,092 64,006 192,794 Interest on loans - - - - - Investment appreciation/ depreciation (Note 2) - (86,600) (133,003) (43,929) (263,532) Net investment income 12,347 (55,251) (47,911) 20,077 (70,738) Contributions Participants 105,216 241,262 527,777 286,904 1,161,159 Company - - - - - 105,216 241,262 527,777 286,904 1,161,159 Transfer (to) from other plans or funds (882) 94,483 301,710 39,933 435,244 Less: Withdrawals and distributions Cash 20,084 31,296 83,879 60,889 196,148 Insurance contract reserve (Note 2) - - - - - Balance at end of year $379,285 $1,148,795 $2,668,769 $2,200,780 $6,397,629
*Parties in interest to the plan. 5. Allocation of Plan Income and Changes in Participants' Equity by Fund for the Year Ended December 31, 1994 (continued) Fixed Central Asset Income Maine Power Manager Asset Contract Company Income Manager Sub Assets Portfolio Stock Fund* Fund* Fund* Total Balance at beginning of year $8,126,752 $4,726,663 $ - $ - $12,853,415 Investment income Dividends on Company Stock - 347,363 - - 347,363 Dividends and Interest 403,928 - - - 403,928 Interest on loans 82,388 - - - 82,388 Investment appreciation/ depreciation (Note 2) - (152,317) 48 (58) (152,327) Net investment income 486,316 195,046 48 (58) 681,352 Contributions Participants 549,941 106,540 271 47 656,799 Company - 685,783 - - 685,783 549,941 792,323 271 47 1,342,582 Transfer (to) from other plans or funds (685,687) (73,079) 16,649 7,241 (734,876) Less: Withdrawals and distributions Cash 286,838 147,088 - - 433,926 Insurance contract reserve (Note 2) - - - - - Balance at end of year $8,190,484 $5,493,865 $16,968 $7,230 $13,708,547
*Parties in interest to the plan. 5. Allocation of Plan Income and Changes in Participants' Equity by Fund for the Year Ended December 31, 1994 (continued) Fidelity Asset Manager Intermediate Growth Fund Bond Fund* Total Balance at beginning of year $ - $ - $17,921,527 Investment income Dividends on Company Stock - - 347,363 Dividends and Interest 284 - 597,006 Interest on loans - - 82,388 Investment appreciation/(depreciation) (493) - (416,352) Net investment income (209) - 610,405 Contributions Participants 190 1,818,148 Company - - 685,783 190 - 2,503,931 Transfer (to) from other plans or funds 17,877 - (281,755) Less: Withdrawals and distributions Cash - - 630,074 Insurance contract reserve (Note 2) - - - Balance at end of year $17,858 $ - $20,124,034
*Parties in interest to the plan. Comparable information for 1993 can be found on Schedule II attached. Central Maine Power Company Form 11-K - Year 1995 Schedule I Page 1 of 4 Central Maine Power Company Employee Savings and Investment Plan For Union Employees (B) Item 27a Schedule of Assets Held for Investment Purposes At December 31, 1995 Name of Issuer Market/Contract Fund and Title of Issue Units (A) Cost Value Retirement Government Money Market Fund 1,987,170 $ 1,987,170 $ 1,987,170 Fidelity Balanced Fund* 381,771 4,957,222 5,161,539 Fidelity Magellan Fund* 175,034 13,043,512 15,049,441 Equity Fund* 503,669 8,652,940 11,367,795 Asset Manager Income Fund* 34,091 381,163 395,458 Asset Manager Fund* 52,614 780,153 833,927 Asset Manager Growth Fund* 69,889 958,461 1,060,209 Fidelity Intermediate Bond Fund* 17,032 172,984 177,302 Fixed Income Sun Life Insurance of America 1,057,600 1,057,600 1,057,600 (1994 Contracts). Contract rate 7.50%. Maturity date 12/31/98. Pacific Mutual Life Insurance 625,434 625,434 625,434 Company (1982 Contracts). Contract rate 8.00%. Principal Mutual (1990 Contracts). 1,098,689 1,098,689 1,098,689 Contract rate 8.94%. Maturity date 01/02/96. State Mutual (1992 Contracts). 864,886 864,886 864,886 Contract rate 5.80%. Maturity date 06/30/97. *Parties in interest to the plan.
Central Maine Power Company Form 11-K - Year 1995 Schedule I Page 2 of 4 Central Maine Power Company Employee Savings and Investment Plan For Union Employees (B) Investments Balance at December 31, 1995 Fund Name of Issuer Market/Contract and Title of Issue Units (A) Cost Value Fixed Income (continued) Lincoln National (1992 Contracts). 1,202,087 1,202,087 1,202,087 Contract rate 5.94%. Maturity date 08/01/97. New York Life Insurance 875,496 875,496 875,496 Company (1991 Contracts). Contract rate 8.90%. Maturity date 01/02/96. Life of Virginia (1993 Contracts). 2,046,569 2,046,569 2,046,569 Contract rate 6.50%. Maturity date 6/30/97. Peoples Security Life (1993 . 1,542,188 1,542,188 1,542,188 Contracts). Contract rate 5.41%. Maturity date 01/02/96 Peoples Security Life (1995 3,263,224 3,263,224 3,263,224 Contracts) Contract rate 4.92% Maturity date 04/01/96. Confederation Life Insurance 3,251,420 3,251,420 3,251,420 Company (1993 Contracts) (See Note 2 to Financial Statements) Executive Life Insurance Company 284,898 284,898 284,898 (1989 Contract) (See Note 2 to Financial Statements) Fidelity-Short-term Investment 977,412 977,412 977,412 Fund (at par value)*. Contract rate 5.68%. Total Fixed 17,089,903 17,089,903 Income Fund
*Parties in interest to the plan. Central Maine Power Company Form 11-K - Year 1995 Schedule I Page 3 of 4 Central Maine Power Company Employee Savings and Investment Plan For Union Employees (B) Investments Balance at December 31, 1995 Name of Issuer Market/Contract Fund and Title of Issue Units (A) Cost Value Central Maine Power Company Stock Central Maine Power Company 1,117,005 16,162,918 16,056,947 Stock* Shares Fidelity U. S. Government Reserve 329,043 329,043 329,043 Pool (at par value)* Total CMP Stock Fund 16,491,961 16,385,990 Total Investments Funds 64,515,469 69,508,734 All Participants Loans Receivable 2,740,260 2,740,260 Grand Total $67,255,729 $72,248,994
*Parties in interest to the plan. Central Maine Power Company Form 11-K - Year 1995 Schedule I Page 4 of 4 Central Maine Power Company Employee Savings and Investment Plan For Union Employees Notes to Schedule I - Investments (A)"Units," except for shares of Company stock, indicates each Fund's share of the total units associated with pooled funds, which are accumulations of investments from numerous entities, including the Plan. (B)The investments of the Central Maine Power Company Employee Savings and Investment Plan for Union Employees are commingled in a common/collective trust with the investments of one other employee savings and investment plan maintained by the Company and its affiliates. Schedule I presents the consolidated investments of both plans. This Plan's share of the pooled investments is as follows: Market/Contract Cost Value Retirement Government Money Market Portfolio $ 424,292 $ 424,292 Fidelity Balanced Fund* 1,422,388 1,478,972 Fidelity Magellan Fund* 4,078,201 4,710,856 Equity Fund* 2,533,424 3,307,889 Fixed Income 5,800,197 5,800,197 Central Maine Power Company Stock* 5,851,412 5,932,170 Asset Manager Income Fund* 85,400 88,798 Asset Manager Fund* 107,548 114,690 Asset Manager Growth Fund* 230,768 248,893 Fidelity Intermediate Bond Fund* 25,057 25,611 $20,558,687 $22,132,368 *Parties in interest to the plan. Central Maine Power Company Form 11-K - Year 1995 Schedule II Page 1 of 2 Central Maine Power Company Employee Savings and Investment Plan For Union Employees Allocation of Plan Income and Changes in Participants' Equity by Fund for the Year Ended December 31, 1993 Retirement Fidelity Fidelity Government Money Balanced Magellan Equity Sub Market Portfolio Fund* Fund* Fund* Total Balance at beginning of year $129,732 $335,326 $ 806,307 $1,600,089 $2,871,454 Investment income Dividends on Company Stock - - - - - Dividends and Interest 5,505 61,200 156,724 73,494 296,923 Interest on loans - - - - - Net realized gain (loss) on disposition of investments - 11,341 31,960 12,440 55,741 Unrealized appreciation (depreciation) of invest- ments (Note 2) - 15,046 71,644 80,268 166,958 Net investment income 5,505 87,587 260,328 166,202 519,622 Contributions Participants 115,351 250,916 533,422 330,335 1,230,024 Company - - - - - 115,351 250,916 533,422 330,335 1,230,024 Transfer (to) from other plans or funds 32,495 228,069 373,530 (175,595) 458,499 Less: Withdrawals and distributions Cash 395 2,301 2,515 6,276 11,487 Central Maine Power Company Stock (0 shares) - - - - - Insurance contract reserve (Note 2) - - - - - Balance at end of year $282,688 $899,597 $1,971,072 $1,914,755 $5,068,112
*Parties in interest to the plan. Central Maine Power Company Form 11-K - Year 1995 Schedule II Page 2 of 2 Central Maine Power Company Employee Savings and Investment Plan For Union Employees Allocation of Plan Income and Changes in Participants' Equity by Fund for the Year Ended December 31, 1993 Fixed Central Income Maine Power Contract Company Portfolio Stock Fund* Total Balance at beginning of year $7,313,796 $ 6,314,668 $16,499,918 Investment income Dividends on Company Stock - 419,514 419,514 Dividends and Interest 444,659 - 741,582 Interest on loans 40,040 - 40,040 Net realized gain (loss) on disposition of investments - (32,402) 23,339 Unrealized appreciation (depreciation) of investments (Note 2) - (2,449,434) (2,282,476) Net investment income 484,699 (2,062,322) (1,058,001) Contributions Participants 628,419 122,748 1,981,191 Company - 709,377 709,377 628,419 832,125 2,690,568 Transfer (to) from other plans or funds (177,159) (270,742) 10,598 Less: Withdrawals and distributions Cash 23,003 87,066 121,556 Central Maine Power Company Stock (0 shares) - - - Insurance contract reserve (Note 2) (100,000) - (100,000) Balance at end of year $8,126,752 $4,726,663 $17,921,527
*Parties in interest to the plan. Central Maine Power Company Employee Savings and Investment Plan For Union Employees Item 27d Schedule of Reportable Transactions For the Year Ended December 31, 1995 No. of Current Trans. Purchase Trans. Selling Cost of Value of Net Description of Asset Purchased Price Matured Price Asset Asset Gain/(Loss) Fidelity Magellan Fund* 153 1,990,343 50 754,992 637,456 592,597 162,395 Equity Fund* 119 887,920 46 542,348 458,991 448,480 93,868 Fixed Income Contract Portfolio (Schedule I) 144 1,534,168 122 2,326,638 2,326,638 2,326,638 -- Central Maine Power Company Stock Fund: CMP Common Stock* 137 1,436,536 98 1,077,345 1,209,764 1,188,821 (111,476) Fidelity U.S. Government Reserve Pool* 137 1,522,195 98 1,399,682 1,399,682 1,399,682 --
*Parties in interest to the plan. CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation of our report, included in this Form 11-K, into the Company's previously filed registration Statement on Form S-8 (File No. 33-44754). COOPERS & LYBRAND L.L.P. Portland, Maine June 27, 1996 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation of our report, included in this Form 11-K, into the Company's previously filed registration Statement on Form S-8 (File No. 33-44754). ARTHUR ANDERSEN LLP Boston, Massachusetts June 27, 1996 Central Maine Power Company Form 11-K - Year 1995 Central Maine Power Company Employee Savings and Investment Plan For Union Employees SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. Central Maine Power Company Employee Savings and Investment Plan for Union Employees (Name of Plan) Date: June 28, 1996 D. E. Marsh, Vice President, Corporate Services, Treasurer and Chief Financial Officer, Member, Employee Savings and Investment Plan Committee, Central Maine Power Company -----END PRIVACY-ENHANCED MESSAGE-----