-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, aJPLrxSM19X75wJysVdXQzJbHf8zAc0rbJ3IGWl+D+abto+6tKqKNoEUHUK4kbX8 teS4gXFU8829aqkISUPmLw== 0000893220-94-000329.txt : 19940720 0000893220-94-000329.hdr.sgml : 19940720 ACCESSION NUMBER: 0000893220-94-000329 CONFORMED SUBMISSION TYPE: U-1/A PUBLIC DOCUMENT COUNT: 4 FILED AS OF DATE: 19940719 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA GAS SYSTEM INC CENTRAL INDEX KEY: 0000022099 STANDARD INDUSTRIAL CLASSIFICATION: 4923 IRS NUMBER: 131594808 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U-1/A SEC ACT: 1935 Act SEC FILE NUMBER: 070-08219 FILM NUMBER: 94539261 BUSINESS ADDRESS: STREET 1: 20 MONTCHANIN RD CITY: WILMINGTON STATE: DE ZIP: 19807 BUSINESS PHONE: 3024295000 U-1/A 1 POST EFFECTIVE AMEND. #5 TO FORM U-1 1 File No. 70-8219 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Post-Effective Amendment No. 5 to Form U-1 JOINT APPLICATION-DECLARATION UNDER THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 THE COLUMBIA GAS SYSTEM, INC. COLUMBIA GULF COLUMBIA GAS SYSTEM SERVICE CORPORATION TRANSMISSION COMPANY COLUMBIA LNG CORPORATION 1700 MacCorkle Avenue, S.E. COLUMBIA ATLANTIC TRADING CORPORATION Charleston, WV 25314 TRISTAR VENTURES CORPORATION TRISTAR CAPITAL CORPORATION COLUMBIA GAS DEVELOPMENT 20 Montchanin Road CORPORATION Wilmington, DE 19807 5847 San Felipe Houston, TX 77057 COLUMBIA NATURAL RESOURCES, INC. COLUMBIA COAL GASIFICATION CORPORATION 900 Pennsylvania Avenue COMMONWEALTH PROPANE, INC. Charleston, WV 25302 COLUMBIA PROPANE CORPORATION 800 Moorefield Park Drive COLUMBIA ENERGY SERVICES CORPORATION Richmond, VA 23236 2581 Washington Road Upper Saint Clair, PA 15241 COLUMBIA GAS OF KENTUCKY, INC COLUMBIA GAS OF OHIO, INC. COLUMBIA GAS OF MARYLAND, INC. COLUMBIA GAS OF PENNSYLVANIA, INC COMMONWEALTH GAS SERVICES, INC. 200 Civic Center Drive Columbus, OH 43215 - -------------------------------------------------------------------------- (Names of company or companies filing this statement and addresses of principal executive offices) THE COLUMBIA GAS SYSTEM, INC. -------------------------------------------------------------------------- (Name of top registered holding company parent of each applicant or declarant) L. J. Bainter, Treasurer THE COLUMBIA GAS SYSTEM, INC. 20 Montchanin Road Wilmington, DE 19807 ------------------------------------------------------------------------- (Name and address of agent for service) (Other Agents for Service are Listed on the Reverse Side of the Front Cover) 2 PAGE 2 Names and Addresses of Subsidiary Company Agents for Service: W. H. HARMON, Treasurer D. L. GELBAUGH, Vice President Columbia Natural Resources, Inc. Columbia Gas of Ohio, Inc. Columbia Coal Gasification Corp. Columbia Gas of Kentucky, Inc. 900 Pennsylvania Avenue Commonwealth Gas Services, Inc. Charleston, West Virginia 25302 Columbia Gas of Pennsylvania, Inc. Columbia Gas of Maryland, Inc. D. DETAR, Treasurer 200 Civic Center Drive TriStar Ventures Corporation Columbus, Ohio 43215 20 Montchanin Road Wilmington, Delaware 19807 E. O'LEARY, Treasurer J. W. GROSSMAN, Treasurer Columbia Gulf Transmission Company Columbia LNG Corporation 1700 MacCorkle Avenue, S.E. Columbia Atlantic Trading Corp. Charleston, West Virginia 25314 20 Montchanin Road Wilmington, Delaware 19807 J. R. LISENBY, Treasurer Columbia Gas Development Corp. L. J. BAINTER, Vice President 5847 San Felipe Columbia Gas Service Corp. Houston, Texas 77057 TriStar Capital Corporation 20 Montchanin Road ROBERT GUSTAFSON, Controller Wilmington, Delaware 19807 Columbia Energy Services Corp. 2581 Washington Road H. F. HAYES, Treasurer Upper Saint Clair, PA 15241 Commonwealth Propane, Inc. Columbia Propane Corporation 800 Moorefield Park Drive Richmond, Virginia 23236 --------------------------------------------------------------------------- (Names and Addresses of Other Agents for Service) 3 PAGE 3 Post-Effective Amendment No. 4 to the Application-Declaration previously filed is hereby amended by adding the following: Item 1. Description of Proposed Transaction. Item 1 is amended by adding the following sentence after the last paragraph. "Columbia does not own, operate or is not an equity participant in any Exempt Wholesale Generator or any Foreign Utility Company and will not be a company that owns, operates or has an equity participation in an Exempt Wholesale Generator or Foreign Utility Company as a result of the approvals requested herein." Item 6. Exhibits and Financial Statements. (a) Exhibits F-2 Opinion of Counsel L-13 1994 Cash Flow Projection - The Columbia Gas System, Inc. L-14 1994 Cash Flow Projection - Columbia Gas of Ohio, Inc. (b) Financial Statements 1. The Columbia Gas System, Inc. and Subsidiaries (a) Consolidated Balance Sheet as of April 30, 1994 (actual and pro forma) (b) Consolidated Statement of Capitalization as of April 30, 1994 (actual and pro forma) 4 PAGE 4 (c) Statement of Consolidated Income for the twelve months ended April 30, 1994 (actual and pro forma) (d) Consolidated Statements of Common Stock Equity as of April 30, 1994 (actual and pro forma) (e) Pro Forma Entries 2. The Columbia Gas System Inc. (a) Consolidated Balance Sheet as of April 30, 1994 (actual and pro forma) (b) Consolidated Statement of Capitalization as of April 30, 1994 (actual and pro forma) (c) Statement of Consolidated Income for the twelve months ended April 30, 1994 (actual and pro forma) (d) Consolidated Statements of Common Stock Equity as of April 30, 1994 (actual and pro forma) (e) Pro Forma Entries 3. Columbia Gas of Ohio, Inc. (a) Consolidated Balance Sheet as of April 30, 1994 (actual and pro forma) (b) Consolidated Statement of Capitalization as of April 30, 1994 (actual and pro forma) (c) Statement of Consolidated Income for the twelve months ended April 30, 1994 (actual and pro forma) (d) Consolidated Statements of Common Stock Equity as of April 30, 1994 (actual and pro forma) (e) Pro Forma Entries 5 SIGNATURE Pursuant to the requirements of the Public Utility Holding Company Act of 1935, the undersigned companies have duly caused this Declaration to be signed on their behalf by the undersigned thereunto duly authorized. The signatures of the applicants and of the persons signing on their behalf are restricted to the information contained in this application which is pertinent to the application of the respective companies. THE COLUMBIA GAS SYSTEM, INC. Date: July 19, 1994 By: /s/ L. J. Bainter ------------------------------- L. J. Bainter, Treasurer COLUMBIA GAS OF OHIO, INC. COLUMBIA GAS OF PENNSYLVANIA, INC. COLUMBIA GAS OF KENTUCKY, INC. COLUMBIA GAS OF MARYLAND, INC. COMMONWEALTH GAS SERVICES, INC. COLUMBIA GULF TRANSMISSION COMPANY COLUMBIA GAS DEVELOPMENT CORPORATION COLUMBIA PROPANE CORPORATION COMMONWEALTH PROPANE, INC. COLUMBIA GAS SYSTEM SERVICE CORPORATION COLUMBIA NATURAL RESOURCES, INC. COLUMBIA ATLANTIC TRADING CORPORATION COLUMBIA COAL GASIFICATION CORPORATION COLUMBIA LNG CORPORATION COLUMBIA ENERGY SERVICES CORPORATION TRISTAR VENTURES CORPORATION TRISTAR CAPITAL CORPORATION Date: July 19, 1994 By: /s/ L. J. Bainter ------------------------------- L. J. Bainter, Vice President 6 UNAUDITED 6(b)(1)(a) THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES (1 of 2) CONSOLIDATED BALANCE SHEET ACTUAL and PRO FORMA As of April 30, 1994 ($000)
CGS Pro Forma CGS Actual Entries Pro Forma ----------- ---------- ----------- ASSETS Property, Plant and Equipment Gas utility and other plant, at original cost .... 6,380,176 - 6,380,176 Accumulated depreciation and depletion ........... (3,107,864) - (3,107,864) ----------- ---------- ----------- Net Gas Utility and Other Plant .................. 3,272,312 - 3,272,312 ----------- ---------- ----------- Oil and gas producing properties, full cost method 1,217,521 - 1,217,521 Accumulated depletion ............................ (613,766) - (613,766) ----------- ---------- ----------- Net Oil and Gas Producing Properties ............. 603,755 - 603,755 ----------- ---------- ----------- Net Property, Plant, and Equipment ................. 3,876,067 - 3,876,067 ----------- ---------- ----------- Investments and Other Assets Accounts receivable - noncurrent ................. 222,594 - 222,594 Unconsolidated affiliates ........................ 68,569 - 68,569 Investment in Columbia LNG Corporation ........... 10,500 - 10,500 Other ............................................ 26,134 - 26,134 ----------- ---------- ----------- Total Investments and Other Assets ................. 327,797 - 327,797 ----------- ---------- ----------- Current Assets Cash and temporary cash investments .............. 1,672,897 (40,000) 1,632,897 Accounts receivable, net ......................... 704,382 - 704,382 Gas inventories .................................. 44,281 40,000 44,281 Other inventories at average cost ................ 43,227 - 43,227 Prepayments ...................................... 88,138 - 88,138 Other ............................................ 37,483 - 77,483 ----------- ---------- ----------- Total Current Assets ............................... 2,590,408 - 2,590,408 ----------- ---------- ----------- Deferred Charges ................................... 282,895 - 282,895 ----------- ---------- ----------- Total Assets ....................................... 7,077,167 - 7,077,167 =========== ========== ===========
7 THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES (2 of 2) CONSOLIDATED BALANCE SHEET ACTUAL and PRO FORMA As of April 30, 1994 ($000)
CGS Pro Forma CGS Actual Entries Pro Forma ----------- ---------- ----------- CAPITALIZATION AND LIABILITIES Capitalization Common stock equity .............................. 1,374,981 - 1,374,981 Long-term debt ................................... 4,536 - 4,536 ----------- ---------- ----------- Total Capitalization ............................... 1,379,517 - 1,379,517 ----------- ---------- ----------- Current Liabilities Debt obligations ................................. 1,285 - 1,285 Debtor in possession financing ................... - - - Accounts and drafts payable ...................... 177,635 - 177,635 Accrued taxes .................................... 131,024 - 131,024 Accrued interest ................................. (2,436) - (2,436) Estimated rate refunds ........................... 208,134 - 208,134 Estimated supplier obligations ................... 141,577 - 141,577 Deferred income taxes - current .................. 2,100 - 2,100 Other ............................................ 361,594 - 361,594 ----------- ---------- ----------- Total Current Liabilities .......................... 1,020,913 - 1,020,913 ----------- ---------- ----------- Liabilities Subject to Chapter 11 Proceedings ..... 3,911,732 - 3,911,732 ----------- ---------- ----------- Other Liabilities and Deferred Credits Deferred income taxes, noncurrent ................ 298,398 - 298,398 Deferred investment tax credits .................. 39,521 - 39,521 Postretirement benefits other than pensions ...... 234,182 - 234,182 Other ............................................ 192,904 - 192,904 ----------- ---------- ----------- Total Other Liabilities and Deferred Credits ....... 765,005 - 765,005 ----------- ---------- ----------- Total Capitalization and Liabilities ............... 7,077,167 - 7,077,167 =========== ========== ===========
8 UNAUDITED 6(b)(1)(b) THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CAPITALIZATION ACTUAL and PRO FORMA As of April 30, 1994 ($000)
CGS Pro Forma CGS Actual Entries Pro Forma ----------- ---------- ----------- Common Stock Equity Common Stock, The Columbia Gas System, Inc., $10 par value, authorized 100,000,000 shares, outstanding 50,559,225 shares ................... 505,592 - 505,592 Additional paid in capital ....................... 601,759 - 601,759 Retained earnings ................................ 337,596 - 337,596 Unearned employee compensation ................... (69,966) - (69,966) ----------- ---------- ----------- Total Common Stock Equity .......................... 1,374,981 - 1,374,981 ----------- ---------- ----------- Long-Term Debt Miscellaneous debt of subsidiaries ............... 1,888 - 1,888 Capitalized lease obligations .................... 2,648 - 2,648 ----------- ---------- ----------- Total Long-Term Debt ............................... 4,536 - 4,536 ----------- ---------- ----------- Total Capitalization ............................... 1,379,517 - 1,379,517 =========== ========== ===========
9 UNAUDITED 6(b)(1)(c) THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES STATEMENT OF CONSOLIDATED INCOME ACTUAL and PRO FORMA Twelve Months Ended April 30, 1994 ($000)
CGS Pro Forma CGS Actual Entries Pro Forma ----------- ---------- ----------- Operating Revenues Gas sales......................................... 2,368,347 - 2,368,347 Transportation ................................... 668,982 - 668,982 Other ............................................ 223,374 - 223,374 ----------- ---------- ----------- Total Operating Revenues ........................... 3,260,703 - 3,260,703 ----------- ---------- ----------- Operating Expenses Products purchased .............................. 1,405,452 - 1,405,452 Operation ........................................ 826,707 - 826,707 Maintenance ...................................... 166,880 - 166,880 Depreciation and depletion ....................... 245,511 - 245,511 Other taxes ...................................... 202,857 - 202,857 Write-Down of investment in Columbia LNG Corp. ... 57,472 - 57,472 ----------- ---------- ----------- Total Operating Expenses ........................... 2,904,879 - 2,904,879 ----------- ---------- ----------- Operating Income ................................... 355,824 - 355,824 ----------- ---------- ----------- Other Income (Deductions) Interest income and other, net ................... (8,858) - (8,858) Interest expense and related charges.............. (79,020) - (79,020) Reorganization items, net ........................ 13,830 - 13,830 ----------- ---------- ----------- Total Other Income (Deductions) .................... (74,048) - (74,048) ----------- ---------- ----------- Income before Income Taxes and Cumulative Effect of Accounting Change ............................. 281,776 - 281,776 Income taxes ....................................... 137,027 - 137,027 ----------- ---------- ----------- Income before Cumulative Effect of Accounting Change ........................................... 144,749 - 144,749 Cumulative Effect of Change in Accounting for Postemployment Benefits .......................... (5,644) - (5,644) ----------- ---------- ----------- Net Income ......................................... 139,105 - 139,105 =========== ========== ===========
10 UNAUDITED 6(b)(1)(d) THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY ACTUAL and PRO FORMA Twelve Months Ended April 30, 1994 ($000)
CGS Pro Forma CGS Actual Entries Pro Forma ----------- ---------- ----------- COMMON STOCK Balance at May 1, 1993 ............................. 505,592 - 505,592 Common stock issued - Leveraged employee stock ownership plan (LESOP) .. - - - Dividend reinvestment plan ....................... - - - Long-term incentive plan ......................... - - - Public offering .................................. - - - ----------- ---------- ----------- Balance at April 30, 1994 .......................... 505,592 - 505,592 ----------- ---------- ----------- ADDITIONAL PAID IN CAPITAL Balance at May 1, 1993 ............................. 601,759 - 601,759 Common stock issued - Leveraged employee stock ownership plan (LESOP) .. - - - Dividend reinvestment plan ....................... - - - Long-term incentive plan ......................... - - - Public offering .................................. - - - ----------- ---------- ----------- Balance at April 30, 1994 .......................... 601,759 - 601,759 ----------- ---------- ----------- RETAINED EARNINGS Balance at May 1, 1993 ............................. 198,491 - 198,491 Net income ......................................... 139,105 - 139,105 Common stock dividends ............................. - - - Other .............................................. - - - ----------- ---------- ----------- Balance at April 30, 1994 .......................... 337,596 - 337,596 ----------- ---------- ----------- UNEARNED EMPLOYEE COMPENSATION Balance at May 1, 1993 ............................. (69,966) - (69,966) Adjustment ......................................... - - - ----------- ---------- ----------- Balance at April 30, 1994 .......................... (69,966) - (69,966) ----------- ---------- ----------- TOTAL COMMON STOCK EQUITY .......................... 1,374,981 - 1,374,981 =========== ========== ===========
11 THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED PRO FORMA ENTRIES 6(b)(1)(e) ($000) Gas Inventory ................................ 40,000 Cash ....................................... 40,000 To reflect the contingency for higher gas prices of up to $1.00 per Mcf for inventory gas purchases.
12 UNAUDITED 6(b)(2)(a) THE COLUMBIA GAS SYSTEM, INC. (1 of 2) BALANCE SHEET ACTUAL and PRO FORMA As of April 30, 1994 ($000)
CG Pro Forma CG Actual Entries Pro Forma ---------- ---------- ---------- ASSETS Investments and Other Assets Accounts receivable - noncurrent ................. 24,426 - 24,426 Unconsolidated affiliates ........................ - - - Investment in Columbia LNG Corporation ........... 12,665 - 12,665 ---------- ---------- ---------- Total Investments and Other Assets ................. 37,091 - 37,091 ---------- ---------- ---------- Investments in Subsidiaries Capital stock .................................... 1,160,907 - 1,160,907 Equity in undistributed retained earnings ........ (393,974) (460) (394,434) Installment promissory notes receivable .......... 792,574 - 792,574 Other investments ................................ 437,833 40,000 477,833 Other receivables - TCO .......................... 1,508,443 - 1,508,443 ---------- ---------- ---------- Total Investments in Subsidiaries .................. 3,505,783 39,540 3,545,323 ---------- ---------- ---------- Current Assets Cash and temporary cash investments .............. 288,244 (40,000) 248,244 Accounts receivable, net Customers ...................................... - - - Affiliated ..................................... 103,228 708 103,936 Other .......................................... 15,259 - 15,259 Prepayments ...................................... 28 - 28 Other ............................................ 1 - 1 ---------- ---------- ---------- Total Current Assets ............................... 406,760 (39,292) 367,468 ---------- ---------- ---------- Deferred Charges ................................... 3,126 - 3,126 ---------- ---------- ---------- Total Assets ....................................... 3,952,760 248 3,953,008 ========== ========== ==========
13 THE COLUMBIA GAS SYSTEM, INC. (2 of 2) BALANCE SHEET ACTUAL and PRO FORMA As of April 30, 1994 ($000)
CG Pro Forma CG Actual Entries Pro Forma --------- ---------- ---------- CAPITALIZATION AND LIABILITIES Capitalization Common stock equity .............................. 1,374,981 - 1,374,981 Long-term debt ................................... - - - ---------- ---------- ---------- Total Capitalization ............................... 1,374,981 - 1,374,981 ---------- ---------- ---------- Current Liabilities Debt obligations ................................. - - - Debtor in possession financing ................... - - - Accounts and drafts payable ...................... 1,216 - 1,216 Affiliated accounts payable ...................... 7,080 - 7,080 Accrued taxes .................................... 549 248 797 Accrued interest ................................. 931 - 931 Deferred income taxes - current .................. (1,191) - (1,191) Other ............................................ 10,677 - 10,677 ---------- ---------- ---------- Total Current Liabilities .......................... 19,262 248 19,510 ---------- ---------- ---------- Liabilities Subject to Chapter 11 Proceedings ...... 2,382,216 - 2,382,216 ---------- ---------- ---------- Other Liabilities and Deferred Credits Deferred income taxes, noncurrent ................ 170,120 - 170,120 Postretirement benefits other than pensions ...... 6,132 - 6,132 Other ............................................ 49 - 49 ---------- ---------- ---------- Total Other Liabilities and Deferred Credits ....... 176,301 - 176,301 ---------- ---------- ---------- Total Capitalization and Liabilities ............... 3,952,760 248 3,953,008 ---------- ---------- ----------
14 UNAUDITED 6(b)(2)(b) THE COLUMBIA GAS SYSTEM, INC. STATEMENT OF CAPITALIZATION ACTUAL and PRO FORMA As of April 30, 1994 ($000)
CG Pro Forma CG Actual Entries Pro Forma ---------- ---------- ---------- Common Stock Equity Common Stock, $10 par value, authorized 100,000,000 shares, outstanding 50,559,225 shares .......................................... 505,592 - 505,592 Additional paid in capital ....................... 601,759 - 601,759 Retained earnings ................................ 337,596 - 337,596 Unearned employee compensation ................... (69,966) - (69,966) ---------- ---------- ---------- Total Common Stock Equity .......................... 1,374,981 - 1,374,981 ---------- ---------- ---------- Long-Term Debt Debentures, net of unamortized discount less premium ......................................... - - - ---------- ---------- ---------- Total Long-Term Debt ............................... - - - ---------- ---------- ---------- Total Capitalization ............................... 1,374,981 - 1,374,981 ========== ========== ==========
15 UNAUDITED 6(b)(2)(c) THE COLUMBIA GAS SYSTEM, INC. STATEMENT OF INCOME ACTUAL and PRO FORMA Twelve Months Ended April 30, 1994 ($000)
CG Pro Forma CG Actual Entries Pro Forma ---------- ---------- ---------- Operating Revenues Gas Sales ........................................ - - - Transportation ................................... - - - Other ............................................ - - - ---------- ---------- ---------- Total Operating Revenues ........................... - - - ---------- ---------- ---------- Operating Expenses Products purchased ............................... - - - Operation ........................................ 7,295 - 7,295 Maintenance ...................................... - - - Depreciation and depletion ....................... - - - Other taxes ...................................... 169 - 169 ---------- ---------- ---------- Total Operating Expenses ........................... 7,464 - 7,464 ---------- ---------- ---------- Operating Income (Loss) ............................ (7,464) - (7,464) ---------- ---------- ---------- Other Income (Deductions) Interest income and other, net ................... 222,106 248 222,354 Interest expense and related charges ............. (1,398) - (1,398) Reorganization items, net ........................ (3,161) - (3,161) ---------- ---------- ---------- Total Other Income (Deductions) .................... 217,547 248 217,795 ---------- ---------- ---------- Income before Income Taxes and Cumulative Effect of Accounting Change ............................. 210,083 248 210,331 Income taxes ....................................... 70,934 248 71,182 ---------- ---------- ---------- Income before Cumulative Effect of Accounting Change ........................................... 139,149 - 139,149 Cumulative Effect of Accounting for Postemployment Benefits ......................................... (44) - (44) ---------- ---------- ---------- Net Income ......................................... 139,105 - 139,105 ========== ========== ==========
16 UNAUDITED 6(b)(2)(d) THE COLUMBIA GAS SYSTEM, INC. STATEMENTS OF COMMON STOCK EQUITY ACTUAL and PRO FORMA Twelve Months Ended April 30, 1994 ($000)
CG Pro Forma CG Actual Entries Pro Forma ---------- ---------- ---------- COMMON STOCK Balance at May 1, 1993 ............................. 505,592 - 505,592 Common stock issued - Subsidiaries ..................................... - - - Leveraged employee stock ownership plan (LESOP) .. - - - Dividend reinvestment plan ....................... - - - Long-term incentive plan ......................... - - - Public offering .................................. - - - ---------- ---------- ---------- Balance at April 30, 1994 .......................... 505,592 - 505,592 ---------- ---------- ---------- ADDITIONAL PAID IN CAPITAL Balance at May 1, 1993 ............................. 601,759 - 601,759 Common stock issued - Subsidiaries ..................................... - - - Leveraged employee stock ownership plan (LESOP) .. - - - Dividend reinvestment plan ....................... - - - Long-term incentive plan ......................... - - - Public offering .................................. - - - ---------- ---------- ---------- Balance at April 30, 1994 .......................... 601,759 - 601,759 ---------- ---------- ---------- RETAINED EARNINGS Balance at May 1, 1993 ............................. 198,491 - 198,491 Net income ......................................... 139,105 - 139,105 Common stock dividends - CG ............................................... - - - Subsidiaries (to CG) ............................. - - - Other .............................................. - - - ---------- ---------- ---------- Balance at April 30, 1994 .......................... 337,596 - 337,596 ---------- ---------- ---------- UNEARNED EMPLOYEE COMPENSATION Balance at May 1, 1993 ............................. (69,966) - (69,966) Adjustment ......................................... - - - ---------- ---------- ---------- Balance at April 30, 1994 .......................... (69,966) - (69,966) ---------- ---------- ---------- TOTAL COMMON STOCK EQUITY .......................... 1,374,981 - 1,374,981 ========== ========== ==========
17 THE COLUMBIA GAS SYSTEM, INC. UNAUDITED PRO FORMA ENTRIES 6(b)(2)(e) ($000) Investments in Subsidiaries - Other Investments ............................ 40,000 Cash........................................ 40,000 To reflect the additional issuance of short-term debt from CG to COH for a contingency for higher gas prices of up to $1.00 per Mcf for inventory gas purchases. Intercompany Accounts Receivable ............. 708 Income Taxes ................................. 248 Interest Income............................. 708 Accrued Taxes .............................. 248 To reflect the interest on the additional short-term borrowing during the period August 1, 1994 through December 31, 1994 at a rate of 4.25% and a federal income tax effect of 35%. Income From Affiliated Equity Investments .... 460 Investments in Subsidiaries - Equity in Undistributed Retained Earnings .. 460 To reflect the change in CG's investment in subsidiaries related to the subsidiaries' pro forma loss due to additional interest expense net of tax, applicable to the issuance of short-term installment notes.
18 COLUMBIA GAS OF OHIO, INC. UNAUDITED 6(b)(3)(a) (1 of 2) CONSOLIDATED BALANCE SHEET ACTUAL and PRO FORMA As of April 30, 1994 ($000)
COH Pro Forma COH Actual Entries Pro Forma ----------- ---------- ----------- ASSETS Property, Plant and Equipment Gas utility and other plant, at original cost .... 1,101,038 - 1,101,038 Accumulated depreciation and depletion ........... (460,186) - (460,186) ----------- ---------- ----------- Net Gas Utility and Other Plant .................. 640,852 - 640,852 ----------- ---------- ----------- Oil and gas producing properties, full cost method - - - Accumulated depletion ............................ - - - ----------- ---------- ----------- Net Oil and Gas Producing Properties ............. - - - ----------- ---------- ----------- Net Property, Plant, and Equipment ................. 640,852 - 640,852 ----------- ---------- ----------- Investments and Other Assets Accounts receivable - noncurrent ................. - - - Unconsolidated affiliates ........................ - - - Investment in Columbia LNG Corporation ........... - - - Other ............................................ - - - ----------- ---------- ----------- Total Investments and Other Assets ................. - - - ----------- ---------- ----------- Current Assets Cash and temporary cash investments .............. 5,649 - 5,649 Accounts receivable, net Customers ...................................... 124,494 - 124,494 Affiliated ..................................... 90,304 - 90,304 Other .......................................... 8,601 - 8,601 Gas inventories .................................. 67,764 40,000 67,764 Other inventories at average cost ................ 7,091 - 7,091 Prepayments ...................................... 71,653 - 71,653 Other ............................................ 8,564 - 48,564 ----------- ---------- ----------- Total Current Assets ............................... 384,120 40,000 424,120 ----------- ---------- ----------- Deferred Charges ................................... 144,025 - 144,025 ----------- ---------- ----------- Total Assets ....................................... 1,168,997 40,000 1,208,997 =========== ========== ===========
19 COLUMBIA GAS OF OHIO, INC. (2 of 2) CONSOLIDATED BALANCE SHEET ACTUAL and PRO FORMA As of April 30, 1994 ($000)
COH Pro Forma COH Actual Entries Pro Forma ----------- ---------- ----------- CAPITALIZATION AND LIABILITIES Capitalization Common stock equity .............................. 382,886 (460) 382,426 Long-term debt ................................... 233,748 - 233,748 ----------- ---------- ----------- Total Capitalization ............................... 616,634 (460) 616,174 ----------- ---------- ----------- Current Liabilities Debt obligations ................................. 138 - 138 Debtor in possession financing ................... - - - Accounts and drafts payable ...................... 71,597 - 71,597 Affiliated notes and loans - current maturity ... 29,113 40,000 69,113 Affiliated accounts payable ...................... 37,065 708 37,773 Accrued taxes .................................... 87,533 (248) 87,285 Accrued interest ................................. 3,699 - 3,699 Estimated rate refunds ........................... 48,580 - 48,580 Estimated supplier obligations ................... - - - Deferred income taxes - current .................. 29,928 - 29,928 Other ............................................ 50,149 - 50,149 ----------- ---------- ----------- Total Current Liabilities .......................... 357,802 40,460 398,262 ----------- ---------- ----------- Other Liabilities and Deferred Credits Deferred income taxes, noncurrent ................ 58,003 - 58,003 Deferred investment tax credits .................. 21,827 - 21,827 Postretirement benefits other than pensions ...... 91,321 - 91,321 Other ............................................ 23,410 - 23,410 ----------- ---------- ----------- Total Other Liabilities and Deferred Credits ....... 194,561 - 194,561 ----------- ---------- ----------- Total Capitalization and Liabilities ............... 1,168,997 40,000 1,208,997 =========== ========== ===========
20 UNAUDITED 6(b)(3)(b) COLUMBIA GAS OF OHIO, INC. CONSOLIDATED STATEMENT OF CAPITALIZATION ACTUAL and PRO FORMA As of April 30, 1994 ($000)
COH Pro Forma COH Actual Entries Pro Forma ----------- ---------- ----------- Common Stock Equity Common Stock, The Columbia Gas System, Inc., $25 par value, authorized 5,000,000 shares, outstanding 4,769,585 shares .................... 119,240 - 119,240 Additional paid in capital ....................... - - - Retained earnings ................................ 263,646 (460) 263,186 Unearned employee compensation ................... - - - ----------- ---------- ----------- Total Common Stock Equity .......................... 382,886 (460) 382,426 ----------- ---------- ----------- Long-Term Debt Long-term debt ................................... 1,478 - 1,478 Installment promissory notes payable ............. 232,270 - 232,270 ----------- ---------- ----------- Total Long-Term Debt ............................... 233,748 - 233,748 ----------- ---------- ----------- Total Capitalization ............................... 616,634 (460) 616,174 =========== ========== ===========
21 UNAUDITED 6(b)(3)(c) COLUMBIA GAS OF OHIO, INC. STATEMENT OF CONSOLIDATED INCOME ACTUAL and PRO FORMA Twelve Months Ended April 30, 1994 ($000)
COH Pro Forma COH Actual Entries Pro Forma ----------- ---------- ----------- Operating Revenues Gas sales......................................... 1,109,155 - 1,109,155 Transportation ................................... 45,458 - 45,458 Other ............................................ 2,867 - 2,867 ----------- ---------- ----------- Total Operating Revenues ........................... 1,157,480 - 1,157,480 ----------- ---------- ----------- Operating Expenses Products purchased .............................. 725,713 - 725,713 Operation ........................................ 203,366 - 203,366 Maintenance ...................................... 22,800 - 22,800 Depreciation and depletion ....................... 37,347 - 37,347 Other taxes ...................................... 97,237 - 97,237 Write-Down of investment in Columbia LNG Corp. ... - - - ----------- ---------- ----------- Total Operating Expenses ........................... 1,086,463 - 1,086,463 ----------- ---------- ----------- Operating Income ................................... 71,017 - 71,017 ----------- ---------- ----------- Other Income (Deductions) Interest income and other, net ................... 2,741 - 2,741 Interest expense and related charges.............. (12,216) (708) (12,924) Reorganization items, net ........................ - - - ----------- ---------- ----------- Total Other Income (Deductions) .................... (9,475) (708) (10,183) ----------- ---------- ----------- Income before Income Taxes and Cumulative Effect of Accounting Change ............................. 61,542 (708) 60,834 Income taxes ....................................... 26,328 (248) 26,080 ----------- ---------- ----------- Income before Cumulative Effect of Accounting Change ........................................... 35,214 (460) 34,754 Cumulative Effect of Change in Accounting for Postemployment Benefits .......................... - - - ----------- ---------- ----------- Net Income ......................................... 35,214 (460) 34,754 =========== ========== ===========
22 UNAUDITED 6(b)(3)(d) COLUMBIA GAS OF OHIO, INC. CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY ACTUAL and PRO FORMA Twelve Months Ended April 30, 1994 ($000)
COH Pro Forma COH Actual Entries Pro Forma ----------- ---------- ----------- COMMON STOCK Balance at May 1, 1993 ............................. 119,240 - 119,240 Common stock issued - Leveraged employee stock ownership plan (LESOP) .. - - - Dividend reinvestment plan ....................... - - - Long-term incentive plan ......................... - - - Public offering .................................. - - - ----------- ---------- ----------- Balance at April 30, 1994 .......................... 119,240 - 119,240 ----------- ---------- ----------- ADDITIONAL PAID IN CAPITAL Balance at May 1, 1993 ............................. - - - Common stock issued - Leveraged employee stock ownership plan (LESOP) .. - - - Dividend reinvestment plan ....................... - - - Long-term incentive plan ......................... - - - Public offering .................................. - - - ----------- ---------- ----------- Balance at April 30, 1994 .......................... - - - ----------- ---------- ----------- RETAINED EARNINGS Balance at May 1, 1993 ............................. 228,432 - 228,432 Net income ......................................... 35,214 (460) 34,754 Common stock dividends ............................. - - - Other .............................................. - - - ----------- ---------- ----------- Balance at April 30, 1994 .......................... 263,646 (460) 263,186 ----------- ---------- ----------- UNEARNED EMPLOYEE COMPENSATION Balance at May 1, 1993 ............................. - - - Adjustment ......................................... - - - ----------- ---------- ----------- Balance at April 30, 1994 .......................... - - - ----------- ---------- ----------- TOTAL COMMON STOCK EQUITY .......................... 382,886 (460) 382,426 =========== ========== ===========
23 COLUMBIA GAS OF OHIO, INC. UNAUDITED PRO FORMA ENTRIES 6(b)(3)(e) ($000) Cash.......................................... 40,000 Intercompany Short Term Loans Payable ...... 40,000 To reflect the additional issuance of short-term debt from CG to COH for a contingency for higher gas prices of up to $1.00 per Mcf for inventory gas purchases. Gas Inventory ................................ 40,000 Cash ....................................... 40,000 To reflect the contingency for higher gas prices of up to $1.00 per Mcf for inventory gas purchases. Interest Expense ............................. 708 Accrued Taxes ................................ 248 Intercompany Accounts Payable .............. 708 Income Taxes ............................... 248 To reflect the interest on the additional short-term borrowing during the period August 1, 1994 through December 31, 1994 at a rate of 4.25% and a federal income tax effect of 35%.
24 PAGE 1 EXHIBIT INDEX (a) Exhibits F-2 Opinion of Counsel L-13 Projected 1994 Cash Flow Statement - The Columbia Gas System, Inc. L-14 Projected 1994 Cash Flow Statement - Columbia Gas of Ohio, Inc. EX-99.1 2 EXHIBIT F-2, OPINION OF COUNSEL 1 Exhibit F-2 July 14, 1994 U.S Securities and Exchange Commission Judiciary Plaza 450 Fifth Street, N.W. Washington, D.C. 20549 Gentlemen: Re: The Columbia Gas System, Inc., et al. File No. 70-821 As counsel for The Columbia Gas System, Inc. ("Columbia"), a Delaware corporation and a holding company registered under the Public Utility Holding Company Act of 1935 (the "Act"), and at its request, I deliver to you this Opinion for filing as Exhibit F-2 to the Joint Application-Declaration on Form U-1 (File No. 70-8219), as amended by Post-Effective Amendments Nos. 3, 4, 5 and 6, the later filed herewith (the "Application-Declaration"), of Columbia and certain of its subsidiary companies, including Columbia Gas of Ohio, Inc. ("Ohio"), Columbia Gas of Kentucky, Inc., Columbia Gas of Pennsylvania, Inc., Commonwealth Gas Services, Inc., Columbia Gas of Maryland, Inc., Columbia LNG Corporation, Columbia Gas Development Corporation, Columbia Gulf Transmission Company, Columbia Atlantic Trading Corporation, Columbia Coal Gasification Corporation, Columbia Energy Services Corporation, Commonwealth Propane, Inc., Columbia Propane Corporation, Columbia Gas System Service Corporation, TriStar Ventures Corporation, TriStar Capital Corporation and Columbia Natural Resources, Inc. (hereinafter referred to collectively as the "Subsidiaries"), relating to: A proposed increase in the amount of short-term financing for Ohio by $40 million, subject to the same terms and conditions as those authorized in the Commission's September 29, 1993 Order (HCAR No. 25896). Ohio proposes to borrow funds directly from Columbia and/or other Subsidiaries through Columbia's intrasystem money pool (the "Money Pool"). Funds will be advanced ("Advances"), repaid and reborrowed through December 31, 1994, with all such advances repaid by April 30, 2 1995. All short-term borrowings from Columbia and/or the Money Pool will be evidenced by a promissory note ("Short-Term Note"); The above Items, as more fully described in the Application-Declaration, are hereinafter referred to sometimes as the "Proposed Transactions." In connection with the above, I have examined: (i) The Application-Declaration; (ii) a copy of the Restated Certificate of Incorporation of Columbia, as amended, (iii) the Order of the U.S. Bankruptcy Court for the District of Delaware dated August 2, 1991 authorizing ordinary course financing between Columbia and the Subsidiaries; (iv) the Secured Revolving Credit Agreement dated September 23, 1991 (as amended April 26, 1993), among Columbia, the banks participating therein and Manufacturers' Hanover Trust Company, as agent, approved by FINAL ORDER AUTHORIZING THE COLUMBIA GAS SYSTEM, INC. TO (i) BORROW MONIES AND (ii) GRANT SENIOR AND JUNIOR LIENS AND SUPERPRIORITY ADMINISTRATIVE EXPENSE CLAIMS PURSUANT TO 11 U.S.C. Section 364(c) of the Bankruptcy Court entered September 10, 1991 and May 11, 1993, and by orders of this Commission dated September 20, 1991 and September 29, 1993 (HCAR Nos. 35-25380, and HCAR 25896); and (v) The Notice of the Proposed Transactions dated July 1, 1994 (HCAR No. 26078). (vi) such other documents, records and matters of law as I deemed necessary to enable me to render this Opinion. Based upon the foregoing and relying thereupon, I am of the opinion that, assuming (i) the Proposed Transactions are consummated in accordance with the Application-Declaration and (ii) all taxes and Government charges in connection with such transactions are paid: 3 (a) all state laws applicable to the Proposed Transactions will have been complied with; (b) Columbia has received an order from the Bankruptcy Court for acquisition of the Short-Term Notes or Advances of the Subsidiaries in accordance with orders issued by this Commission in accordance with pre-petition practice; (c) Columbia and each of the Subsidiaries are validly organized and duly existing corporations in their respective states of incorporation; (d) the Short-Term Notes and Advances to be issued by certain of the Subsidiaries as part of the Proposed Transactions indicated above will be valid and binding obligations of such Subsidiaries in accordance with the terms of said Short-Term Notes and Advances, and Columbia will have legally acquired such Short-Term Notes and Advances; (e) Subsidiaries advancing funds under the terms of the Money Pool will have a valid claim against each of the Subsidiaries, to whom funds are advanced pursuant to the Money Pool, for amounts so advanced; and (f) the consummation of the Proposed Transactions will not violate the legal rights of the holders of any securities issued by Columbia, or the Subsidiaries, or by any associate company thereof. I hereby consent to the filing of this Opinion as an Exhibit to the Application-Declaration. Very truly yours, /s/ Joyce Koria Hayes ------------------------- Joyce Koria Hayes Associate General Counsel and Assistant Secretary EX-99.2 3 EXHIBIT L-13, 1994 CASH FLOW-COLUMBIA GAS SYSTEM 1 THE COLUMBIA GAS SYSTEM, INC. - PARENT COMPANY Exhibit L-13 1994 Cash Forecast (000) $
Jan Feb Mar Apr (Actual) (Actual) (Actual) (Actual) -------------- ------------ ------------- ------------- Receipts 523 18659 2741 13295 Gas Purchased 0 0 0 0 Operating Expenses 42 180 286 1533 -------------- ------------ ------------- ------------- Net 481 18479 2455 11762 Taxes 0 0 0 0 Interest 0 0 0 0 Other-Net 590 1140 472 1512 -------------- ------------ ------------- ------------- Net Cash Before Financing -109 17339 1983 10250 Financing I/C Long-term Financing - Net 21335 21766 7253 1640 I/C Short-term Financing - Net (1) 209 61655 4400 0 Dividends Received 0 4094 4153 3587 Other 0 0 328 -327 -------------- ------------ ------------- ------------- Total 21544 87515 16134 4900 Investment Balance 150122 254976 273093 288243
May Jun Jul Aug -------------- ------------- ------------- ------------- Receipts 1916 13901 7295 7213 Gas Purchased 0 0 0 0 Operating Expenses 626 650 763 303 -------------- ------------- ------------- ------------- Net 1290 13251 6532 6910 Taxes 0 12612 0 0 Interest 119 81 74 74 Other-Net 147 246 352 522 -------------- ------------- ------------- ------------- Net Cash Before Financing 1024 312 6106 6314 Financing I/C Long-term Financing - Net 3473 0 -1005 -1239 I/C Short-term Financing - Net (1) 1612 -1602 -33979 -109188 Dividends Received 535 4315 3587 21730 Other 0 0 0 0 -------------- ------------- ------------- ------------- Total 5620 2713 -31397 -88697 Investment Balance 294887 297912 272621 190238
Sep Oct Nov Dec Total -------------- ------------- ------------- ------------- -------------- Receipts 14765 4275 1655 17174 103412 Gas Purchased 0 0 0 0 0 Operating Expenses 430 314 309 412 5848 -------------- ------------- ------------- ------------- -------------- Net 14335 3961 1346 16762 97564 Taxes 12612 0 0 5496 30720 Interest 67 93 118 111 737 Other-Net 679 785 911 904 8260 -------------- ------------- ------------- ------------- ------------- Net Cash Before Financing 977 3083 317 10251 57847 Financing I/C Long-term Financing - Net -2400 0 -1000 12474 62297 I/C Short-term Financing - Net (1) -62214 -60017 -22174 36025 -185273 Dividends Received 4237 3587 21729 4487 76041 Other 0 0 0 0 1 -------------- ------------- ------------- ------------- ------------- Total -60377 -56430 -1445 52986 -46934 Investment Balance 130838 77491 76363 139600
(1) August, 1994 includes $40 million of additional requested short-term financing for Columbia Gas of Ohio. EX-99.3 4 EXHIBIT L-14, 1994 CASH FLOW-COLUMBIA GAS OF OHIO 1 COLUMBIA GAS OF OHIO, INC. Exhibit L-14 1994 Cash Forecast (000) $
Jan Feb Mar Apr (Actual) (Actual) (Actual) (Actual) -------------- ------------- ------------- ------------- Receipts 130,638 156,614 173,515 151,775 Gas Purchased (1) 62,817 64,670 75,949 24,329 Operating Expenses 15,827 15,436 18,603 17,960 -------------- ------------- ------------- ------------- Net 51,994 76,508 78,963 109,486 Taxes 7,184 10,021 18,577 51,633 Interest 358 5,199 686 4,651 Capital Expenditures 4,065 4,152 5,689 6,496 Other-Net 3,854 8,087 4,240 4,369 -------------- ------------- ------------- ------------- Net Cash Before Financing 36,533 49,049 49,771 42,337 Financing Long-term Repayment (5,452) (5,638) (1,876) 0 Long-term Borrowing 0 0 0 0 Short-term -Net (1) (5,824) (41,724) (30,814) 0 Other (17,519) (1,167) 2,237 (82) -------------- ------------- ------------- ------------- Total (28,795) (48,529) (30,453) (82) Short-term Balance 72,538 30,814 0 0
May Jun Jul Aug -------------- ------------- ------------- ------------- Receipts 98,505 72,256 54,693 52,316 Gas Purchased (1) 71,938 60,119 57,697 98,290 Operating Expenses 26,237 11,215 11,304 14,210 -------------- ------------- ------------- ------------- Net 330 922 (14,308) (60,184) Taxes 737 21,721 11,721 1,649 Interest 308 0 1,877 2,796 Capital Expenditures 5,548 8,391 6,275 6,313 Other-Net 5,344 5,557 5,462 5,486 -------------- ------------- ------------- ------------- Net Cash Before Financing (11,607) (34,747) (39,643) (76,428) Financing Long-term Repayment (2,264) 0 0 0 Long-term Borrowing 0 0 0 0 Short-term -Net (1) 0 0 21,317 88,551 Other 0 0 0 (12,123) -------------- ------------- ------------- ------------- Total (2,264) 0 21,317 76,428 Short-term Balance 0 0 21,317 109,868
Sep Oct Nov Dec Total -------------- ------------- ------------- ------------- ------------- Receipts 55,893 61,715 72,584 101,080 1,181,584 Gas Purchased (1) 57,605 56,070 64,949 45,741 740,174 Operating Expenses 14,162 11,218 17,017 6,933 180,122 -------------- ------------- ------------- ------------- ------------- Net (15,874) (5,573) (9,382) 48,406 261,288 Taxes (517) 18,877 2,374 6,929 150,906 Interest 518 5,725 216 0 22,334 Capital Expenditures 5,787 8,937 7,185 11,102 79,940 Other-Net 5,297 5,674 6,005 6,263 65,638 -------------- ------------- ------------- ------------- ------------- Net Cash Before Financing (26,959) (44,786) (25,162) 24,112 (57,530) Financing Long-term Repayment 0 0 0 0 (15,230) Long-term Borrowing 0 0 29,000 0 29,000 Short-term -Net (1) 26,959 44,786 8,285 (24,112) 87,424 Other 0 0 (12,123) 0 (40,777) -------------- ------------- ------------- ------------- ------------- Total 26,959 44,786 25,162 (24,112) 60,417 Short-term Balance 136,827 181,613 189,898 165,786
(1) August, 1994 includes $40 million related to additional short-term borrowing requested as a result of working capital needs for such contingencies as price increases for natural gas purchases. -----END PRIVACY-ENHANCED MESSAGE-----