-----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, CLTD4oFBO0yExWn3br+co4iVWawT6XDrNEjcASkCHVFdnGmjRUJy1klxfVaI2toN 7DWPy0weEuV9UJ1p24TLfA== 0000893220-99-000486.txt : 19990423 0000893220-99-000486.hdr.sgml : 19990423 ACCESSION NUMBER: 0000893220-99-000486 CONFORMED SUBMISSION TYPE: U-13-60 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990422 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA ENERGY GROUP CENTRAL INDEX KEY: 0000022099 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 131594808 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U-13-60 SEC ACT: SEC FILE NUMBER: 049-00095 FILM NUMBER: 99599206 BUSINESS ADDRESS: STREET 1: 13880 DULLES CORNER LANE CITY: HENDERON STATE: VA ZIP: 20191-4600 BUSINESS PHONE: 7035616000 MAIL ADDRESS: STREET 1: 13880 DULLES CORNER LANE CITY: HERNDON STATE: VA ZIP: 20171-4600 FORMER COMPANY: FORMER CONFORMED NAME: COLUMBIA GAS SYSTEM INC DATE OF NAME CHANGE: 19920703 U-13-60 1 FORM U-13-60 COLUMBIA ENERGY GROUP SERVICE CORP. 1 Form U-13-60 Mutual and Subsidiary Service Companies Revised February 7, 1980 ANNUAL REPORT For the Period Beginning January 1, 1998 and Ending December 31, 1998 --------------- ----------------- To The U.S. SECURITIES AND EXCHANGE COMMISSION OF COLUMBIA ENERGY GROUP SERVICE CORPORATION ----------------------------------------- (Exact Name of Report Company A Subsidiary Service Company ("Mutual" or "Subsidiary") Data of Incorporation December 31, 1932 ----------------- State or Sovereign Power Under which Incorporated or Organized - Delaware -------- Location of Principal Executive Offices of Reporting Company: 12355 Sunrise Valley Drive, Reston, Virginia 20191-3420 DONATO FURLANO, ASSISTANT CONTROLLER 13880 Dulles Corner Lane Herndon, VA 20171-4600 --------------------------------------------------------------------- (Name, title and address of officer to whom correspondence concerning this report should be addressed) COLUMBIA ENERGY GROUP ------------------------------------------------------------------- (Name of Principal Holding Company whose Subsidiaries are served by Reporting Company) Page 1 2 INSTRUCTIONS FOR USE OF FORM U-13-60 1. Time of Filing - Rule 94 provides that on or before the first day of May in each calendar year, each mutual service company and each subsidiary service company as to which the Commission shall have made a favorable finding pursuant to Rule 88, and every service company whose application for approval or declaration pursuant to Rule 88 is pending shall file with the Commission an annual report on Form U-13-60 and in accordance with the Instructions for that form. 2. Number of Copies - Each annual report shall be filed in duplicate. The company should prepare and retain at least one extra copy for itself in case correspondence with reference to the report become necessary. 3. Period Covered by Report - The first report filed by any company shall cover the period from the date the Uniform System of Accounts was required to be made effective as to that company under Rules 82 and 93 to the end of that calendar year. Subsequent reports should cover a calendar year. 4. Report Format - Reports shall be submitted on the forms prepared by the Commission. If the space provided on any sheet of such form is inadequate, additional sheets may be inserted on the same size as a sheet of the form or folded to such size. 5. Money Amounts Displayed - All money amounts required to be shown in financial statements may be expressed in whole dollars, in thousands of dollars or in hundred thousands of dollars, as appropriate and subject to provisions of Regulation S-X (Section 210.3-01[b]). 6. Deficits Displayed - Deficits and other like entries shall be indicated by the use of either brackets or a parenthesis with corresponding reference in footnotes. (Regulation S-X, Section 210.3-01[C]). 7. Major Amendments or Corrections - Any company desiring to amend or correct a major omission or error in a report after it has been filed with the Commission shall submit an amended report including only those pages, schedules, and entries that are to be amended or corrected. A cover letter shall be submitted requesting the Commission to incorporate the amended report changes and shall be signed by a duly authorized officer of the company. 8. Definitions - Definitions contained in Instruction 01-8 to the Uniform System of Accounts for Mutual Service Companies and Subsidiary Service Companies, Public Utility Holding Company Act of 1935, as amended February 2, 1979, shall be applicable to words or terms used specifically within this Form U-13-60. 9. Organization Chart - The service company shall submit with each annual report a copy of its current organization chart. 10. Methods of Allocation - The service company shall submit with each annual report a listing of the currently effective methods of allocation being used by the service company and on file with the Securities and Exchange Commission pursuant to the Public Utility Holding Company Act of 1935. 11. Annual Statement of Compensation for Use of Capital Billed - The service company shall submit with each annual report a copy of the annual statement supplied to each associate company in support of the amount of compensation for use of capital billed during the calendar year. Page 2 3 - -------------------------------------------------------------------------------- LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS - --------------------------------------------------------------------------------
Schedule or Account Page Description of Schedules and Accounts Number Number - --------------------------------------------------------------------------------------- ----------------- ------------ COMPARATIVE BALANCE SHEET Schedule I 5-6 Service Company Property Schedule II 7-8 Accumulated Provision For Depreciation and Schedule III 9 Amortization of Service Company Property Investments Schedule IV 10 Accounts Receivable From Associated Companies Schedule V 11-12 Fuel Stock Expenses Undistributed Schedule VI 13 Stores Expense Undistributed Schedule VII 14 Miscellaneous Current and Accrued Assets Schedule VIII 15 Miscellaneous Deferred Debits Schedule IX 16 Research, Development or Demonstration Expenditures Schedule X 17 Proprietary Capital Schedule XI 18 Long-Term Debt Schedule XII 19 Current and Accrued Liabilities Schedule XIII 20-21 Notes to Financial Statements Schedule XIV 22-23 COMPARATIVE INCOME STATEMENT Schedule XV 24 Analysis of Billing - Associate Companies Account 457 25 Analysis of Billing - Nonassociate Companies Account 458 26 Analysis of Charges for Service - Associate and Schedule XVI 27 Nonassociate Companies Schedule of Expense by Department or Service Function Schedule XVII 28-30 Departmental Analysis of Salaries Account 920 31 Outside Services Employed Account 923 32-34 Employee Pensions and Benefits Account 926 35 General Advertising Expenses Account 930.1 36 Miscellaneous General Expenses Account 930.2 37 Rents Account 931 38 Taxes Other Than Income Taxes Account 408 39 Donations Account 426.1 40 Other Deductions Account 426.5 41 Notes to Statement of Income Schedule XVIII 42
Page 3 4 LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Page Description of Reports or Statements Number - ----------------------------------------------------------------------------------------- -------- Organization Chart 43 Methods of Allocation 44 Annual Statement of Compensation for Use of Capital Billed 45-46
- -------------------------------------------------------------------------------- Page 4 5 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION 1998 - -------------------------------------------------------------------------------- SCHEDULE I - COMPARATIVE BALANCE SHEET Give balance sheet of the Company as of December 31 of the current and prior year
- --------------------------------------------------------------------------------------------------------------- ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31 - ------------- ------------------------------------------------------------- ------------------------------ CURRENT PRIOR ------------- ------------- $000 $000 SERVICE COMPANY PROPERTY 101 Service company property (Schedule II) 53,762 47,737 107 Construction work in progress (Schedule II) -- -- ------------- ------------- Total Property 53,762 47,737 ------------- ------------- 108 Less accumulated provision for depreciation and amortization of service company property (Schedule III) 25,582 25,176 ------------- ------------- Net Service Company Property 28,180 22,561 ------------- ------------- INVESTMENTS 123 Investments in associate companies (Schedule IV) -- -- 124 Other investments (Schedule IV) -- -- ------------- ------------- Total Investments -- -- ------------- ------------- CURRENT AND ACCRUED ASSETS 131 Cash 420 15 134 Special deposits 171 171 135 Working funds 13 15 136 Temporary cash investments (Schedule IV) -- -- 141 Notes receivable -- -- 143 Accounts receivable 1,833 13 144 Accumulated provision for uncollectible accounts -- -- 146 Accounts receivable from associate companies (Schedule V) 44,336 44,278 152 Fuel stock expenses undistributed (Schedule VI) -- -- 154 Materials and supplies -- -- 163 Stores expense undistributed (Schedule VII) -- -- 165 Prepayments 336 135 174 Miscellaneous current and accrued assets (Schedule VIII) -- -- ------------- ------------- Total Current and Accrued Assets 47,109 44,627 ------------- ------------- DEFERRED DEBITS 181 Unamortized debt expense -- -- 184 Clearing accounts 8,074 6,449 186 Miscellaneous deferred debits (Schedule IX) 11,852 14,838 188 Research, development, or demonstration expenditures (Schedule X) -- -- 190 Accumulated deferred income taxes 4,736 3,367 ------------- ------------- Total Deferred Debits 24,662 24,654 ------------- ------------- TOTAL ASSETS AND OTHER DEBITS 99,951 91,842 ============= =============
Page 5 6 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION - -------------------------------------------------------------------------------- SCHEDULE I - COMPARATIVE BALANCE SHEET
- ----------------------------------------------------------------------------------------------------------------------- ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31 - ------------- ------------------------------------------------------------ ------------------------------ CURRENT PRIOR ------------- ------------- $000 $000 PROPRIETARY CAPITAL 201 Common stock issued (Schedule XI) 300 300 211 Miscellaneous paid-in-capital (Schedule XI) 12,700 12,700 215 Appropriated retained earnings (Schedule XI) -- -- 216 Unappropriated retained earnings (Schedule XI) 186 187 ------------- -------------- Total Proprietary Capital 13,186 13,187 ------------- -------------- LONG-TERM DEBT 223 Advances from associate companies (Schedule XII) 16,043 16,043 224 Other long-term debt (Schedule XII) -- -- 225 Unamortized premium on long-term debt -- -- 226 Unamortized discount on long-term debt -- -- ------------- -------------- Total Long-Term Debt 16,043 16,043 ------------- -------------- CURRENT AND ACCRUED LIABILITIES 231 Notes payable -- -- 232 Accounts payable 13,555 16,023 233 Notes payable to associate companies (Schedule XIII) -- -- 234 Accounts payable to associate companies (Schedule XIII) 34,743 24,435 236 Taxes accrued 506 (1,857) 237 Interest accrued -- -- 238 Dividends declared -- -- 241 Tax collections payable 708 2 242 Miscellaneous current and accrued liabilities (Schedule XIII) 13,591 12,886 ------------- -------------- Total Current and Accrued Liabilities 63,103 51,489 ------------- -------------- DEFERRED CREDITS 253 Other deferred credits 5,698 8,901 255 Accumulated deferred investment tax credits -- -- ------------- -------------- Total Deferred Credits 5,698 8,901 ------------- -------------- 282 ACCUMULATED DEFERRED INCOME TAXES 1,921 2,222 ------------- -------------- TOTAL LIABILITIES AND PROPRIETARY CAPITAL 99,951 91,842 ============= ==============
Page 6 7 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- SCHEDULE II - SERVICE COMPANY PROPERTY
- ----------------------------------------------------------------------------------------------------------------- BALANCE BALANCE AT AT BEGINNING RETIREMENTS OTHER CLOSE DESCRIPTION OF YEAR ADDITIONS OR SALES CHANGES (1) OF YEAR - -------------------------------------- -------------- ------------ ----------------- --------------- ----------- $000 $000 $000 $000 $000 SERVICE COMPANY PROPERTY Account: 301 ORGANIZATION -- -- -- -- -- 303 MISCELLANEOUS INTANGIBLE PLANT -- -- -- -- -- 304 LAND AND LAND RIGHTS 62 -- -- -- 62 305 STRUCTURES AND IMPROVEMENTS 16,574 3,041 258 -- 19,357 306 LEASEHOLD IMPROVEMENTS -- -- -- -- -- 307 EQUIPMENT (2) 24,924 3,245 2,506 -- 25,663 308 OFFICE FURNITURE AND EQUIPMENT 5,786 4,073 1,865 -- 7,994 309 AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT -- -- -- -- -- 310 AIRCRAFT AND AIRPORT EQUIPMENT 248 543 248 -- 543 311 OTHER SERVICE COMPANY PROPERTY (3) 143 -- -- -- 143 ------------- ------------ ----------------- -------------- ---------- SUB-TOTAL 47,737 10,902 4,877 -- 53,762 ------------- ------------ ----------------- -------------- ---------- 107 CONSTRUCTION WORK IN PROGRESS (4) -- -- -- -- -- ------------- ------------ ----------------- -------------- ---------- TOTAL 47,737 10,902 4,877 -- 53,762 ============= ============ ================= ============== ==========
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL: NOT APPLICABLE - -------------------------------------------------------------------------------- Page 7 8 SCHEDULE II - CONTINUED - -------------------------------------------------------------------------------- (2) SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
- ---------------------------------------------------------------------------------------------------------- BALANCE AT CLOSE OF SUBACCOUNT DESCRIPTION ADDITIONS YEAR - ----------------------------------------------------------- --------------- --------------- $000 $000 307-1 Telecommunications Equipment -- 115 307-2 Communications Management Center -- 1,246 307-3 Data Processing Equipment -- 25 307-4 Print Services Equipment -- 13 307-5 Research & Laboratory Equipment -- 72 307-6 Telecommunications Equipment 2,848 6,386 307-7 EDP Equipment - 4 years 345 14,061 307-8 EDP Equipment - 10 years -- 4 307-9 Personal Computer and Peripheral Equipment 52 1,807 307-10 Distribution Research Equipment -- 148 307-11 Electrical Supply Generators -- 1,786 ------------- -------------- TOTAL 3,245 25,663 - ----------------------------------------------------------------------------------------- --------------
(3) DESCRIBE OTHER SERVICE COMPANY PROPERTY: Costs incurred in the internal development of the Employee Accounting System Interface, Labor Distribution System, and Intercompany Billing software. - -------------------------------------------------------------------------------- (4) DESCRIBE CONSTRUCTION WORK IN PROGRESS: Not Applicable - -------------------------------------------------------------------------------- Page 8 9 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- SCHEDULE III ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF SERVICE COMPANY PROPERTY
- ----------------------------------------------------------------------------------------------------------------------- ADDITIONS BALANCE CHARGED OTHER BALANCE AT TO CHANGES AT BEGINNING ACCOUNT ADD CLOSE DESCRIPTION OF YEAR 403 RETIREMENTS (DEDUCT)(1) OF YEAR - -------------------------------------------- ------------ ----------- ----------- ----------- -------- $000 $000 $000 $000 $000 ACCOUNT 301 ORGANIZATION -- -- -- -- -- 303 MISCELLANEOUS INTANGIBLE PLANT -- -- -- -- -- 304 LAND AND LAND RIGHTS -- -- -- -- -- 305 STRUCTURES AND IMPROVEMENTS 5,002 372 258 -- 5,116 306 LEASEHOLD IMPROVEMENTS -- -- -- -- 307 EQUIPMENT 17,476 4,159 2,506 -- 19,129 308 OFFICE FURNITURE AND FIXTURES 2,313 743 1,865 -- 1,191 309 AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT -- -- -- -- -- 310 AIRCRAFT AND AIRPORT EQUIPMENT 248 4 248 -- 4 311 OTHER SERVICE COMPANY PROPERTY 137 5 -- -- 142 -------------- ------------ ---------------- ------------- ----------- TOTAL 25,176 5,283 4,877 -- 25,582 ============== ============ ================ ============= ===========
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL: NOT APPLICABLE Page 9 10 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- SCHEDULE IV - INVESTMENTS - -------------------------------------------------------------------------------- INSTRUCTIONS: Complete the following schedule concerning investments. Under Account 124, "Other Investments," state each investment separately, with description, including, the name of issuing company, number of shares or principal amount, etc. Under Account 136, "Temporary Cash Investments," list each investment separately.
- ---------------------------------------------------------------------------------------------------------------------- BALANCE AT BALANCE AT BEGINNING CLOSE DESCRIPTION OF YEAR OF YEAR - --------------------------------------------------------------------------------- ---------------- ---------------- Account 123 - Investment in Associate Companies None None Account 124 - Other Investments None None Account 136 - Temporary Cash Investments System Money Pool - Unaffiliated None None ---------------- ---------------- TOTAL None None ================ ================
- -------------------------------------------------------------------------------- Page 10 11 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES - -------------------------------------------------------------------------------- INSTRUCTIONS: Complete the following schedule listing accounts receivable from each associate company. Where the service company has provided accommodation or convenience payments for associate companies, a separate listing of total payments for each associate company
- ----------------------------------------------------------------------------------------------------------------------- BALANCE AT BALANCE AT BEGINNING CLOSE DESCRIPTION OF YEAR OF YEAR - -------------------------------------------------------------------------------- --------------- ---------------- $000 $000 ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES Columbia Energy Group 73 100 Columbia Gulf Transmission Company 2,199 2,598 Columbia Energy Services Corporation 1,663 3,830 Columbia Propane Corporation 1,516 1,840 Columbia Electric Corporation 206 944 Columbia LNG Corporation 186 221 Columbia Network Services Corporation 14 (6) Columbia Insurance Corporation, Ltd. 41 1 Columbia Gas of Kentucky, Inc. 1,949 1,264 Columbia Gas of Ohio, Inc. 11,678 12,715 Columbia Gas of Maryland, Inc. 372 315 Columbia Gas of Pennsylvania, Inc. 5,503 4,267 Columbia Gas of Virginia, Inc. 1,773 2,149 Columbia Energy Group Capital Corporation 2 92 Columbia Gas Transmission Corporation 14,913 11,738 Columbia Atlantic Trading Corporation 12 -- Columbia Energy Resources, Inc. 2,178 2,268 --------------- ---------------- TOTAL 44,278 44,336 =============== ================
- -------------------------------------------------------------------------------- ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
TOTAL PAYMENTS -------- $000 See Schedule V-A, page 12 TOTAL PAYMENT 947,936 ================
- -------------------------------------------------------------------------------- Page 11 12 SCHEDULE V-A COLUMBIA ENERGY GROUP SERVICE CORPORATION Convenience & Accommodation Payments For the Year Ended December 31, 1998
Employee Employee Corporate PH&H Associate Company Benefits Payroll Insurance Leases ----------------- -------- --------- ---------- --------- $000 $000 $000 $000 Columbia Energy Group 3,613 207 95 -- Columbia Gulf Transmission Company 6,523 29,250 197 406 Columbia Energy Services Corporation 3,802 26,261 1,300 721 Columbia Propane Corporation 5,837 15,286 360 1,718 Columbia Electric Corporation 531 3,264 7 -- Columbia LNG Corporation 879 2,342 13 53 Columbia Network Services Corporation 40 175 -- -- Columbia Insurance Corporation -- -- -- -- Columbia Gas of Kentucky, Inc. 4,527 13,473 163 919 Columbia Gas of Ohio, Inc. 28,002 135,446 1,827 4,785 Columbia Gas of Maryland, Inc. 1,027 3,467 61 175 Columbia Gas of Pennsylvania, Inc. 13,199 45,550 601 1,913 Columbia Gas of Virginia, Inc. 4,294 21,870 534 1,111 Commonwealth Propane -- -- -- -- Columbia Energy Group Capital Corporation 6 130 -- -- Columbia Gas Transmission Corporation 35,803 146,602 1,503 8,844 Columbia Atlantic Trading, Inc. -- -- -- -- Columbia Energy Resources, Inc. 6,365 22,100 108 2,880 -------- --------- ---------- --------- Total 114,448 465,423 6,769 23,525 ======== ========= ========== =========
Telecom. Associate Company Systems Legal Other Total ----------------- --------- -------- ----------- --------- $000 $000 $000 $000 Columbia Energy Group 8 347 53,103 1) 57,373 Columbia Gulf Transmission Company 11 28 1,351 37,766 Columbia Energy Services Corporation 905 361 240,370 2) 273,720 Columbia Propane Corporation 96 103 10,188 2) 33,588 Columbia Electric Corporation 42 22 3,212 7,078 Columbia LNG Corporation 13 6 253 3,559 Columbia Network Services Corporation 17 4 2,850 3,086 Columbia Insurance Corporation -- -- 8 8 Columbia Gas of Kentucky, Inc. 3 -- 203 19,288 Columbia Gas of Ohio, Inc. (36) 11 11,786 2) 181,821 Columbia Gas of Maryland, Inc. -- -- 47 4,777 Columbia Gas of Pennsylvania, Inc. 86 2 866 62,217 Columbia Gas of Virginia, Inc. -- 4 101 27,914 Commonwealth Propane 1 -- -- 1 Columbia Energy Group Capital Corporation -- 8 535 679 Columbia Gas Transmission Corporation 14 50 5,284 2) 198,100 Columbia Atlantic Trading, Inc. -- -- 54 54 Columbia Energy Resources, Inc. 55 30 5,369 2) 36,907 --------- -------- ----------- --------- Total 1,215 976 335,580 947,936 ========= ======== =========== =========
Note 1: Primarily reflects electronic funds transfer for System Federal tax payments. Note 2: Primarily reflects a service offered by the Corporate Treasury Department to provide a non-repetitive electronic funds transfer to third parties. Page 12 13 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED - -------------------------------------------------------------------------------- INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to fuel stock expenses during the year and indicate amount attributable to each associate company. Under the section headed "Summary" listed below give an overall report of the fuel functions performed by the service company.
- ----------------------------------------------------------------------------------------------------------------------- DESCRIPTION LABOR EXPENSES TOTAL - --------------------------------------------------------------------------- ----- -------- ----- $000 $000 $000 Account 152 - Fuel Stock Expenses Undistributed None None None ------------ --------------- ------------ TOTAL None None None
SUMMARY: Not Applicable - -------------------------------------------------------------------------------- Page 13 14 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED - -------------------------------------------------------------------------------- INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to stores expense during the year and indicate amount attributable to each associate company.
- ------------------------------------------------------------------------------------------------------------------------ DESCRIPTION LABOR EXPENSES TOTAL - --------------------------------------------------------------------------- ----- -------- ----- $000 $000 $000 Account 163 - Stores Expenses Undistributed None None None ------------ -------------- ------------ TOTAL None None None - ------------------------------------------------------------------------------------------------------------------------
Page 14 15 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- SCHEDULE VIII MISCELLANEOUS CURRENT AND ACCRUED ASSETS - -------------------------------------------------------------------------------- INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000 may be grouped, showing the number of items in each group.
- ----------------------------------------------------------------------------------------------------------------------- BALANCE AT BALANCE AT BEGINNING CLOSE DESCRIPTION OF YEAR OF YEAR - ------------------------------------------------------------------------------- ---------------- ---------------- $000 $000 Account 174 - Miscellaneous Current and Accrued Assets None None ---------------- ---------------- TOTAL None None - -----------------------------------------------------------------------------------------------------------------------
Page 15 16 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS - -------------------------------------------------------------------------------- INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000 may be grouped by class showing the number of items in each class.
- ------------------------------------------------------------------------------------------------------------------ BALANCE AT BALANCE AT BEGINNING CLOSE DESCRIPTION OF YEAR OF YEAR - ------------------------------------------------------------------------- ------------------ ----------------- $000 $000 ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS Other Post Retirement Employee Benefits 10,213 8,596 Workers Compensation Claims 907 1,207 Intangible Asset - Pension Restoration Plan 1,127 1,127 Restricted Stock Awards 1,168 876 STEP Program 8 51 Labor Distribution Adjustment -- 38 Returned Payroll Checks (14) (10) New Corporate Center 22 (33) Benefits Outsourcing Project 942 -- Deferred Convenience Claims 410 -- Deferred Insurance Receivables 50 -- Branding Project 5 -- ---------------- ----------------- TOTAL 14,838 11,852 - ------------------------------------------------------------------------------------------------------------------
Page 16 17 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- SCHEDULE X RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES - -------------------------------------------------------------------------------- INSTRUCTIONS: Provide description of each material research, development, or demonstration project which incurred costs by the service corporation during the year.
- --------------------------------------------------------------------------------------------------------- DESCRIPTION AMOUNT - ------------------------------------------------------------------------------------- ------------------ $000 None ------------------ TOTAL None - ---------------------------------------------------------------------------------------------------------
Page 17 18 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- SCHEDULE XI - PROPRIETARY CAPITAL - --------------------------------------------------------------------------------
OUTSTANDING CLOSE OF PERIOD NUMBER OF SHARES PAR OR STATED VALUE ----------------------------- ACCOUNT NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT --------------- --------------- ---------------- ------------------- ------------- ------------ 201 COMMON STOCK 3,000 $100 3,000 $300,000
- -------------------------------------------------------------------------------- INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general nature of transactions which give rise to the reported amount.
------------------------------------------------------------------------------------------------------------------------------ DESCRIPTION AMOUNT ------------------------------------------------------------------------------------------------------------------------------ ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL $12,700,000 ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS -- ----------- TOTAL $12,700,000 ------------------------------------------------------------------------------------------------------------------------------
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year, distinguishing between compensation for the use of capital owed or net loss remaining from servicing nonassociates per the General Instructions of the Uniform System of Accounts. For dividends paid during the year in cash or otherwise, provide rate percentage, amount of dividend, date declared and date paid.
---------------------------------------------------------------------------------------------------------------------------- BALANCE AT BALANCE AT BEGINNING NET INCOME DIVIDENDS CLOSE DESCRIPTION OF YEAR OR (LOSS) PAID OF YEAR --------------------------------------------------- ------------- -------------- ------------- --------------- $000 $000 $000 $000 ACCOUNT 216 - UNAPPROPRIATED RETAINED EARNINGS 186 2,237 2,237 186 Rate/Share Amount of Dividend Date Declared Date Paid ---------- ------------------ ------------- --------- $ $000 186.40 559 02/11/98 02/27/98 186.45 559 05/13/98 05/31/98 186.45 559 08/12/98 08/31/98 186.45 559 11/11/98 11/30/98 --------------------------------------------------- ------------- -------------- ------------- --------------- TOTAL 186 2,237 2,237 186
- -------------------------------------------------------------------------------- Page 18 19 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- Schedule XII - Long-Term Debt - -------------------------------------------------------------------------------- INSTRUCTIONS: Advances From Associate Companies should be reported separately for advances on notes, and advances on open account. Names of associate companies from which advances were received shall be shown under the class and series of obligation column. For Account 224 - Other Long-Term Debt provide the name of creditor company or organization, terms of the obligation, date of maturity, interest rate, and the amount authorized and outstanding. - --------------------------------------------------------------------------------
TERMS OF OBLIG DATE CLASS & SERIES OF INTEREST AMOUNT NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED - ----------------------------- ---------------- ---------- ---------- ------------- % $000 ACCOUNT 223 - ADVANCES FROM ASSOCIATE COMPANIES: Columbia Energy Group Promissory Note 11/28/00 6.89 2,567 Columbia Energy Group Promissory Note 11/28/02 7.11 2,246 Columbia Energy Group Promissory Note 11/28/05 7.30 2,246 Columbia Energy Group Promissory Note 11/28/07 7.55 2,246 Columbia Energy Group Promissory Note 11/28/10 7.82 2,246 Columbia Energy Group Promissory Note 11/28/15 7.92 2,246 Columbia Energy Group Promissory Note 11/28/25 8.12 2,246 ACCOUNT 224 - OTHER LONG-TERM DEBT: -- TOTAL 16,043 ------------
BALANCE AT DEDUC- BALANCE AT BEGINNING ADDI- TIONS CLOSE NAME OF CREDITOR OF YEAR TIONS (1) OF YEAR - ----------------------------- ------------- ---------- --------- ------------- $000 $000 $000 $000 ACCOUNT 223 - ADVANCES FROM ASSOCIATE COMPANIES: Columbia Energy Group 2,567 -- -- 2,567 Columbia Energy Group 2,246 -- -- 2,246 Columbia Energy Group 2,246 -- -- 2,246 Columbia Energy Group 2,246 -- -- 2,246 Columbia Energy Group 2,246 -- -- 2,246 Columbia Energy Group 2,246 -- -- 2,246 Columbia Energy Group 2,246 -- -- 2,246 ACCOUNT 224 - OTHER LONG-TERM DEBT: -- -- -- -- TOTAL 16,043 -- -- 16,043 ------------ --------- --------- ------------
- -------------------------------------------------------------------------------- (1) GIVE AN EXPLANATION OF DEDUCTIONS: The deductions represent the portion of the Installment Promissory Notes which mature within one year. Currently there is no long term debt due within the next year. - -------------------------------------------------------------------------------- Page 19 20 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES - -------------------------------------------------------------------------------- INSTRUCTIONS: Provide balance of notes and accounts payable to each associate company. Give description and amount of miscellaneous current and accrued liabilities. Items less than $10,000 may be grouped, showing the number of items in each group.
- ------------------------------------------------------------------------------------------------------------- BALANCE AT BALANCE AT BEGINNING CLOSE DESCRIPTION OF YEAR OF YEAR - -------------------------------------------------------------------- --------------- -------------- $000 $000 ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES See Schedule XIII-A -- -- ---------------- --------------- TOTAL -- -- - ------------------------------------------------------------------------------------------------------------- ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES System Money Pool Payable 20,030 30,788 Columbia Energy Group 4,325 3,819 System Money Pool Interest Payable 78 136 Columbia Gulf Transmission Corporation 2 -- ---------------- --------------- TOTAL 24,435 34,743 - ------------------------------------------------------------------------------------------------------------- ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES Deferred Compensation 727 2,522 Retirement Income Plan 3,558 2,491 Accrued Vacation 2,043 2,198 Pension Retirement Benefits 2,540 2,050 Thrift Restoration Plan 960 1,327 LTIP Dividend Credit 397 1,090 Pension Restoration Plan 386 812 Comprehensive Medical Expense Plan Accrual 258 258 Deferred Compensation - Interest 45 216 Release & Retention Program 970 172 Employee Thrift Plan 130 146 Employee Agreements 216 104 Thrift Plan - Company 60 60 Post Retirement Benefit Obligation 59 59 Contract Retainage 431 27 Aircraft Engine Overhaul Accrual 42 20 Dental Assistance Plan Accrual 20 20 Flexible Spending 35 15 Unclaimed Accounts 15 13 Miscellaneous (6) (9) ---------------- --------------- TOTAL 12,886 13,591
- -------------------------------------------------------------------------------- Page 20 21 SCHEDULE XIII-A COLUMBIA ENERGY GROUP SERVICE CORPORATION Notes Payable to Associate Companies Account 233
Balance at Balance at Beginning Close of Year of Year --------------- -------------- $000 $000 Columbia Energy Group 6.89% Installment Promissory Note None None 7.11% Installment Promissory Note None None 7.30% Installment Promissory Note None None 7.55% Installment Promissory Note None None 7.82% Installment Promissory Note None None 7.92% Installment Promissory Note None None 8.12% Installment Promissory Note None None --------------- --------------- Total None None =============== ===============
Note: As of December 31, 1998 there are no current maturities. Page 21 22 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- SCHEDULE XIV - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any account thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. - -------------------------------------------------------------------------------- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Property, Plant and Equipment and Related Depreciation Property, Plant and Equipment is stated at historical cost. Depreciation is provided on a composite straight-line basis using the average of depreciable property at the beginning and end of each year. b. Income Taxes The Corporation provides deferred taxes with respect to timing differences in the recognition of revenues and expenses for tax and accounting purposes. The major difference results from using accelerated depreciation for tax purposes. The Corporation is included in the Consolidated Federal Income Tax Return filed for the Columbia Energy Group and Subsidiaries. c. Pension Costs The Corporation participates in the Retirement Income Plan of the Columbia Energy Group. This is a trusteed noncontributory Retirement Income Plan which, with certain minor exceptions, covers all regular employees. The Service Corporation's portion amounted to ($1,066,272) in 1998 and $79,000 in 1997, including the amortization of unfunded prior service costs. d. Leases Payments made by the Corporation in connection with operating leases are charged to expense as incurred. No capitalized leases existed in 1998. e. Account Numbers The Corporation uses certain FERC accounts which do not match existing SEC accounts; therefore, the year-end balances of the following FERC accounts were reclassified to a corresponding SEC account.
Account Number --------------- Year-End Account Description FERC SEC Balance ----------------------- ---- ----- ---------- $000 Interest Receivable 171 143 3 Deferred Income Taxes 283 282 1
- -------------------------------------------------------------------------------- Page 22 23 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- f. Post-Retirement Benefits Other Than Pensions During 1991, the System adopted SFAS No. 106, Employer's Accounting for Post-Retirement Benefits Other Than Pensions, retroactive to January 1, 1991. The Corporation has elected to record and defer the full amount of its estimated accumulated post-retirement obligations other than pensions. These obligations total $6,680,000 as of December 31, 1998, and represent the actuarial present value of the post-retirement benefits to be paid to current employees and retirees based on services rendered. g. System Money Pool The Parent Company and its subsidiaries participate in the System Money Pool (Pool) which is administered by the Corporation on behalf of the participants. Participants invest their excess funds to the Pool. Short-term financing requirements of participants, with the exception of the Parent Company, are satisfied by advances from the Pool. Excess funds in the Pool are invested by the Corporation on a short-term basis on behalf of the depositors. Participants depositing funds in the Pool share in the interest earned on these investments plus interest paid to the Pool by borrowers on a basis proportionate to their investment in the Pool. Participants borrowing from the Pool pay interest at the rate equivalent to the composite rate on short-term transactions of the Pool. Participants may withdraw their investments in the Pool at any time. Borrowings from the Pool are payable on demand, and may be prepaid at any time without premium or penalty. Page 23 24 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year ended December 31, 1998 - -------------------------------------------------------------------------------- SCHEDULE XV STATEMENT OF INCOME
- ------------------------------------------------------------------------------------------------------------------ 1998 1997 ----------------- --------------- ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR - ----------- ---------------------------------------------------------- ----------------- --------------- $000 $000 INCOME 457 Services rendered to associate companies 82,453 79,989 458 Services rendered to nonassociate companies -- 31 419 Interest Revenue - Other 10 -- ---------------- --------------- Total Income 82,463 80,020 EXPENSE 920 Salaries and wages 31,538 28,828 921 Office supplies and expenses 8,573 6,375 922 Administrative expense transferred-- credit (2,064) (2,058) 923 Outside services employed 13,318 11,764 924 Property insurance 90 178 925 Injuries and damages 280 192 926 Employee pensions and benefits 5,920 9,317 928 Regulatory commission expense 15 3 930.1 General advertising expenses 124 84 930.2 Miscellaneous general expenses 1,349 1,126 931 Rents 6,111 5,782 932 Maintenance of structures and equipment 3,302 3,352 403 Depreciation and amortization expense 4,958 5,476 408 Taxes other than income taxes 2,786 3,029 409 Income taxes 2,651 1,977 410 Provision for deferred income taxes 2,901 6,105 411 Provision for deferred income taxes - credit (4,571) (5,638) 426.1 Donations 122 119 426.3 Other deductions 3 -- 430 Interest on debt to associate companies 2,387 1,925 431 Other interest expense 433 (152) ---------------- --------------- Total Expense 80,226 77,784 ---------------- --------------- Net Income or (Loss) 2,237 2,236 ================ ===============
- -------------------------------------------------------------------------------- Page 24 25 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year ended December 31, 1998 - -------------------------------------------------------------------------------- ANALYSIS OF BILLING ASSOCIATE COMPANIES ACCOUNT 457 - --------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSAT'N TOTAL COSTS COSTS FOR USE AMOUNT NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED - ----------------------------------------------- -------------- --------------- ---------------- ------------ 457-1 457-2 457-3 -------------- --------------- ---------------- ------------ $000 $000 $000 $000 Columbia Energy Group 3,162 2,247 192 5,601 Columbia Gulf Transmission Company 4,141 1,774 336 6,251 Columbia Energy Services Corporation 3,285 1,840 116 5,241 Columbia Propane Corporation 940 558 74 1,572 Columbia Electric Corporation 403 337 37 777 Columbia LNG Corporation 164 134 17 315 Columbia Network Services Corporation 154 185 14 353 Columbia Insurance Corporation, Ltd 116 89 9 214 Columbia Gas of Kentucky, Inc. 1,814 681 105 2,600 Columbia Gas of Ohio, Inc. 15,465 5,748 859 22,072 Columbia Gas of Maryland, Inc. 559 209 34 802 Columbia Gas of Pennsylvania, Inc. 5,414 2,021 323 7,758 Columbia Gas of Virginia, Inc. 2,811 1,089 158 4,058 Columbia Energy Group Capital Corporation 11 20 1 32 Columbia Gas Transmission Corporation 14,243 5,814 1,099 21,156 Columbia Atlantic Trading, Inc. 7 9 1 17 Columbia Natural Resources, Inc. 2,010 1,048 148 3,206 -------------- --------------- ---------------- ------------ Total Amount Billed in 1998 54,699 23,803 3,523 82,025 Reconciliations to Total Revenues: Difference between Amount of Unbilled Revenue December 1997 and December 1998 (2,528) 1,855 1,101 428 -------------- --------------- ---------------- ------------ 52,171 25,658 4,624 82,453 ============== =============== ================ ============
- -------------------------------------------------------------------------------- Page 25 26 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- ANALYSIS OF BILLING NONASSOCIATE COMPANIES ACCOUNT 458 - --------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION COST COST FOR USE TOTAL EXCESS OR AMOUNT NAME OF NONASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL COST DEFICIENCY BILLED - ---------------------------- ------- ------- ---------- ---- ---------- ------ 458-1 458-2 458-3 458-4 ------- ------- ---------- ---------- N/A $000 $000 $000 $000 $000
- -------------------------------------------------------------------------------- INSTRUCTION: Provide a brief description of the services rendered to each nonassociate company: - -------------------------------------------------------------------------------- Page 26 27 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- Schedule XVI ANALYSIS OF CHARGES FOR SERVICE ASSOCIATE AND NONASSOCIATE COMPANIES - --------------------------------------------------------------------------------
ASSOCIATE COMPANY NONASSOCIATE COMPANY CHARGES CHARGES ----------------------------- ---------------------------- DESCRIPTION OF ITEMS DIRECT INDIRECT DIRECT INDIRECT COST COST TOTAL COST COST TOTAL - ---------------------------------------------- ------ -------- ------ ------ -------- ----- $000 $000 $000 $000 $000 $000 920 Salaries and Wages 22,675 8,863 31,538 -- -- -- 921 Office Supplies and Expenses 5,800 2,773 8,573 -- -- -- 922 Administrative Expenses Transferred - Credit 608 (2,672) (2,064) -- -- -- 923 Outside Services Employed 9,839 3,479 13,318 -- -- -- 924 Property Insurance -- 90 90 -- -- -- 925 Injuries and Damages 185 95 280 -- -- -- 926 Employee Pensions and Benefits 528 5,392 5,920 -- -- -- 928 Regulatory Commission Expense 15 -- 15 -- -- -- 930.1 General Advertising Expenses 69 55 124 -- -- -- 930.2 Miscellaneous General Expense 478 871 1,349 -- -- -- 931 Rents 5,508 602 6,110 -- -- -- 932 Maintenance of Structure and Equipment 2,405 898 3,303 -- -- -- 403 Depreciation and Amortization Expense 4,061 897 4,958 -- -- -- 408 Taxes Other Than Income Taxes 50 2,736 2,786 -- -- -- 409 Income Taxes -- 2,651 2,651 -- -- -- 410 Provision for Deferred Income Taxes -- 2,901 2,901 -- -- -- 411 Provision for Deferred Income Taxes - -- -- -- Credit -- (4,571) (4,571) -- -- -- 411.5 Investment for Credit -- -- -- -- -- -- 419 Other Interest -- (10) (10) -- -- -- 421 Miscellaneous Income or Loss -- -- -- -- -- -- 426.1 Donations 1 121 122 -- -- -- 426.5 Other Deductions -- 3 3 -- -- -- 427 Interest on Long-Term Debt -- -- -- -- -- -- 431 Other Interest Expense -- 433 433 -- -- -- - ---------------------------------------------- ------ -------- ------ ------ -------- ----- Instructions: Total cost of service will equal for associate and nonassociate companies the total amount billed under their separate analysis of billing schedules. - ---------------------------------------------- ------ -------- ------ ------ -------- ----- Total Expenses 52,222 25,607 77,829 -- -- -- ------ -------- ------ ------ -------- ----- Compensation for Use of Equity Capital 2,237 ------ 430 Interest on Debt to Associate Companies 2,387 ------ Total Cost of Service 82,453 - --------------------------------------------------------------------------------------------------------------------------
TOTAL CHARGES FOR SERVICE ------------------------------ DESCRIPTION OF ITEMS DIRECT INDIRECT COST COST TOTAL - ---------------------------------------------- ------ -------- ------ $000 $000 $000 920 Salaries and Wages 22,675 8,863 31,538 921 Office Supplies and Expenses 5,800 2,773 8,573 922 Administrative Expenses Transferred - Credit 608 (2,672) (2,064) 923 Outside Services Employed 9,839 3,479 13,318 924 Property Insurance -- 90 90 925 Injuries and Damages 185 95 280 926 Employee Pensions and Benefits 528 5,392 5,920 928 Regulatory Commission Expense 15 -- 15 930.1 General Advertising Expenses 69 55 124 930.2 Miscellaneous General Expense 478 871 1,349 931 Rents 5,508 602 6,110 932 Maintenance of Structure and Equipment 2,405 898 3,303 403 Depreciation and Amortization Expense 4,061 897 4,958 408 Taxes Other Than Income Taxes 50 2,736 2,786 409 Income Taxes -- 2,651 2,651 410 Provision for Deferred Income Taxes -- 2,901 2,901 411 Provision for Deferred Income Taxes - Credit -- (4,571) (4,571) 411.5 Investment for Credit -- -- -- 419 Other Interest -- (10) (10) 421 Miscellaneous Income or Loss -- -- -- 426.1 Donations 1 121 122 426.5 Other Deductions -- 3 3 427 Interest on Long-Term Debt -- -- -- 431 Other Interest Expense -- 433 433 - ---------------------------------------------- ------ -------- ------ Instructions: Total cost of service will equal for associate and nonassociate companies the total amount billed under their separate analysis of billing schedules. - ---------------------------------------------- ------ -------- ------ Total Expenses 52,222 25,607 77,829 ------ -------- ------ Compensation for Use of Equity Capital 2,237 ------ 430 Interest on Debt to Associate Companies 2,387 ------ Total Cost of Service 82,453 - -------------------------------------------------------------------------------------
Page 27 28 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- Schedule XVII SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION - --------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION ------------------------------------ AIR TOTAL ACCOUNTING TRANS- CLIENT DESCRIPTION OF ITEMS AMOUNT OVERHEAD SERVICES PORTATION SUPPORT -------------------------------------------- ------ -------- ---------- --------- ------- 920 Salaries and Wages 31,538 8,863 91 314 469 921 Office Supplies and Expenses 8,573 2,773 45 307 81 922 Administrative Expenses Transferred - Credit (2,064) (2,672) -- -- 3 923 Outside Services Employed 13,318 3,479 50 62 17 924 Property Insurance 90 90 -- -- -- 925 Injuries and Damages 280 95 -- 52 -- 926 Employee Pensions and Benefits 5,920 5,392 -- 1 1 928 Regulatory Commission Expense 15 -- 4 -- -- 930.1 General Advertising Expense 124 55 -- -- -- 930.2 Miscellaneous General Expense 1,349 871 7 (193) -- 931 Rents 6,110 602 -- 683 3 932 Maintenance of Structures and Equipment 3,303 898 -- 74 217 403 Depreciation and Amortization Expense 4,958 897 -- 4 -- 408 Taxes Other Than Income Taxes 2,786 2,736 -- (27) -- 409 Income Taxes 2,651 2,651 -- -- -- 410 Provision for Deferred Income Taxes 2,901 2,901 -- -- -- 411 Provision for Deferred Income Taxes - Credit (4,571) (4,571) -- -- -- 411.5 Investment Tax Credit -- -- -- -- -- 421 Miscellaneous Income or Loss -- -- -- -- -- 426 Donations 122 121 -- -- -- 426 Other Deductions 3 3 -- -- -- 427 Interest on Long-Term Debt -- -- -- -- -- 430 Interest on Debt to Associate Companies 2,387 2,387 -- -- -- 431 Other Interest Expense 433 433 -- -- -- -------------------------------------------- Instruction: Indicate each department or service function. (See Instruction 01-3 General Structure of Accounting System: Uniform System Account) -------------------------------------------- ------ -------- ---------- --------- ------- Total Expenses 80,226 28,004 197 1,277 791 -------------------------------------------- --------------------------------------------------------------
---------------------------------------------------- COMMON/ CORPORATE CORPORATE COMMUNI- CORPORATE DESCRIPTION OF ITEMS SYSTEMS CONSOLIDATION CATIONS FINANCE -------------------------------------------- --------- ------------- --------- --------- 920 Salaries and Wages 1,112 798 460 229 921 Office Supplies and Expenses 53 88 214 20 922 Administrative Expenses Transferred - Credit -- -- -- -- 923 Outside Services Employed 208 59 2,014 89 924 Property Insurance -- -- -- -- 925 Injuries and Damages -- -- -- -- 926 Employee Pensions and Benefits -- -- -- -- 928 Regulatory Commission Expense -- -- -- -- 930.1 General Advertising Expense -- -- -- -- 930.2 Miscellaneous General Expense 234 99 71 24 931 Rents -- 1 2 -- 932 Maintenance of Structures and Equipment 64 -- -- -- 403 Depreciation and Amortization Expense -- -- -- -- 408 Taxes Other Than Income Taxes -- -- -- -- 409 Income Taxes -- -- -- -- 410 Provision for Deferred Income Taxes -- -- -- -- 411 Provision for Deferred Income Taxes - Credit -- -- -- -- 411.5 Investment Tax Credit -- -- -- -- 421 Miscellaneous Income or Loss -- -- -- -- 426 Donations -- -- 1 -- 426 Other Deductions -- -- -- -- 427 Interest on Long-Term Debt -- -- -- -- 430 Interest on Debt to Associate Companies -- -- -- -- 431 Other Interest Expense -- -- -- -- -------------------------------------------- Instruction: Indicate each department or service function. (See Instruction 01-3 General Structure of Accounting System: Uniform System Account) -------------------------------------------- --------- ------------- --------- --------- Total Expenses 1,671 1,045 2,762 362 -------------------------------------------- ----------------------------------------------------
Page 28 29 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- Schedule XVII SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION - -------------------------------------------------------------------------------- DEPARTMENT OR SERVICE FUNCTION - --------------------------------------------------------------------------------
ENTERPRISE ENVIRON- HUMAN Account CORPORATE MULTIMEDIA MENTAL GOVERNMENT RESOURCES/ Number TREASURY COMMUNICATIONS AFFAIRS EXECUTIVE AFFAIRS BENEFITS -------------- ------------- ---------------- -------------- -------------- -------------- ------------- $000 $000 $000 $000 $000 $000 920 282 2,049 303 2,265 254 1,295 921 31 711 65 424 87 174 922 - - 44 - - - 923 60 728 238 1,030 53 664 924 - - - - - - 925 - - - - - - 926 - - - 2 - 19 928 - - - - - - 930.1 - - - - - 69 930.2 248 304 17 528 89 933 931 - 131 1 118 253 115 932 - 1 - - - 2 403 - 1,155 - - - - 408 - - - - - - 409 - - - - - - 410 - - - - - - 411 - - - - - - 411.5 - - - - - - 419 - - - - - - 421 - - - - - - 426.1 - - - - - - 426.5 - - - - - - 427 - - - - - - 430 - - - - - - 431 - - - - - - -------------- ------------- ---------------- -------------- -------------- -------------- ------------- Total Expenses 621 5,079 668 4,367 736 3,271 ------------- ---------------- -------------- -------------- -------------- -------------
MC Account INTERNAL INVESTOR BUILDING Number AUDIT RELATIONS LEGAL SERVICES -------------- ------------- ------------- ---------- ------------- $000 $000 $000 $000 920 1,017 401 1,050 1 921 213 72 181 - 922 57 - - - 923 114 416 2,270 - 924 - - - - 925 - - - - 926 - - - - 928 - 8 - - 930.1 - - - - 930.2 108 135 133 - 931 8 18 1 1 932 - - - - 403 - - - - 408 - - - - 409 - - - - 410 - - - - 411 - - - - 411.5 - - - - 419 - - - - 421 - - - - 426.1 - - - - 426.5 - - - - 427 - - - - 430 - - - - 431 - - - - -------------- ------------- ------------- ---------- ------------- Total Expenses 1,517 1,050 3,635 2 ------------- ------------- ---------- -------------
Page 29 30 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- Schedule XVII SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION - -------------------------------------------------------------------------------- DEPARTMENT OR SERVICE FUNCTION - --------------------------------------------------------------------------------
NETWORK RESTON Account COMPUTER OTHER RISK BUILDING STEP STRATEGIC Number SERVICES GENERAL PAYROLL MANAGEMENT SERVICES PROGRAM PLANNING - -------------- -------------- ---------- ----------- -------------- ------------ ------------ ----------- $000 $000 $000 $000 $000 $000 $000 920 2,993 3,726 424 452 25 414 486 921 2,507 5 3 124 2 25 51 922 445 - - - - - - 923 878 10 41 312 13 25 184 924 - - - - - - - 925 - - - 133 - - - 926 - 504 - - - 1 - 928 - - - - - - - 930.1 - - - - - - - 930.2 (2,897) 15 219 63 3 116 34 931 4,157 - - 1 - - 1 932 2,046 - - - 1 - - 403 2,902 - - - - - - 408 77 - - - - - - 409 - - - - - - - 410 - - - - - - - 411 - - - - - - - 411.5 - - - - - - - 419 - - - - - - - 421 - - - - - - - 426.1 - - - - - - - 426.5 - - - - - - - 427 - - - - - - - 430 - - - - - - - 431 - - - - - - - - -------------- -------------- ---------- ----------- -------------- ------------ ------------ ----------- Total Expenses 13,108 4,260 687 1,085 44 581 756 -------------- ---------- ----------- -------------- ------------ ------------ -----------
Account FINANCIAL ENERGY Number REPORTING TAX VENTURES - -------------- ----------- ---------- ----------- $000 $000 $000 920 685 558 522 921 28 116 173 922 - - 59 923 47 322 (65) 924 - - - 925 - - - 926 - - - 928 - 3 - 930.1 - - - 930.2 142 14 32 931 1 13 - 932 - - - 403 - - - 408 - - - 409 - - - 410 - - - 411 - - - 411.5 - - - 419 - - - 421 - - - 426.1 - - - 426.5 - - - 427 - - - 430 - - - 431 - - - - -------------- ----------- ---------- ----------- Total Expenses 903 1,026 721 ----------- ---------- -----------
Page 30 31 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 DEPARTMENTAL ANALYSIS OF SALARIES ACCOUNT 920
------------------------------------------------------------------------------------------------------- DEPARTMENTAL SALARY EXPENSE ----------------------------------------------------- NUMBER INCLUDED IN AMOUNTS BILLED TO PERSONNEL NAME OF DEPARTMENT --------------------------------------- ------------ Indicate each department or TOTAL PARENT OTHER NON END OF service function AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR ------------------------------- ----------- ---------- ----------- ---------- ------------ $000 $000 $000 $000 Accounting Services 91 29 62 -- 11 Air Transportation 314 255 59 -- 7 Client Support 469 -- 469 -- 11 Common/Corporate Systems 1,112 8 1,104 -- 46 Consolidation Accounting 798 72 726 -- 13 Corporate Communications 460 -- 460 -- 6 Corporate Finance 229 3 226 -- 6 Corporate Treasury 282 6 276 -- 5 Dulles Building Services 25 -- 25 -- 6 Energy Ventures 522 444 78 -- 6 Enterprise Multimedia Communication 2,049 3 2,046 -- 50 Environmental Affairs 303 14 289 -- 5 Executive 2,265 172 2,093 -- 13 Finance & Investor Relations 254 -- 254 -- 6 Financial Planning & Reporting 685 4 681 -- 11 Government Affairs 1,295 -- 1,295 -- 3 Human Resources/Benefits 1,017 5 1,012 -- 18 Internal Audit 401 10 391 -- 17 Legal 1,050 161 889 -- 13 Marble Cliff Building Services 1 1 -- -- 16 Network Computer Services 2,993 -- 2,993 -- 71 Other General 3,726 -- 3,726 -- -- Payroll 424 -- 424 -- 17 Risk Management 452 8 444 -- 6 Step Program 414 103 311 -- 12 Strategic Planning 486 -- 486 -- 5 Tax 558 22 536 -- 9 ----------- ----------- ------------- ------------ ------------- Total 22,675 1,320 21,355 -- 389 =========== =========== ============= ============ =============
- -------------------------------------------------------------------------------- Page 31 32 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- OUTSIDE SERVICES EMPLOYED ACCOUNT 923 - -------------------------------------------------------------------------------- INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $100,000, only the aggregate number and the amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.
RELATIONSHIP "A" = ASSOCIATE FOR WHOM PURCHASED ADDRESS "NA" = NON-ASSOCIATE AMOUNT ------------------ ------- -------------------- ------ $000 See schedule 923-A 13,318
- -------------------------------------------------------------------------------- Page 32 33 SCHEDULE 923-A COLUMBIA ENERGY GROUP SERVICE CORPORATION OUTSIDE SERVICES EMPLOYED ACCOUNT 923
RELATIONSHIP "A" = ASSOCIATE AMOUNT "NA" = NON ------------------- FOR WHOM PURCHASED ADDRESS ASSOCIATE $000 $000 - ---------------------------- -------------------------------------- ----------- -------- -------- 1-Special Services - Legal Akin, Gump, Strauss, Hauer, & 1900 Pennzoil Place-South Tower, Houston, TX 77002 NA 161 LeBoeuf, Lamb, Greene & MacRae 125 W. 55th Street New York., N.Y. 100195389 NA 1,404 Shandwick Public Affairs P.O. Box 3075 Buffalo, NY 14240 NA 73 Shearman & Sterling 599 Lexington Ave. New York, NY 1002-24676 NA 68 Sullivan & Cromwell 125 Broad St. New York, NY 10004 NA 110 46 Organizations 541 Total Special Services - Legal 2,357 2-Special Services - Audit Arthur Andersen LLP P.O. Box 13882, Newark, NJ 07188-0882 NA 28 -------- Total Special Services - Audit 28 3-Special Services - Other Adams, William C. 5150 Southwest 21st St. Plantation, FL 33317 NA 52 Bowne of New York City, Inc. 345 Hudson St. New York, NY 10014-9884 NA 58 The Case Hoyt Corp. P.O. Box 522625, Miami, FL. 33152 NA 243 Columbia Gas of Ohio, Inc. A/R, P.O. Box 117, Columbus, OH 43216 A 173 Comdisco Continuity Service P.O. Box 91753, Chicago, IL. 60693 NA 201 Corna/ Kokosing Construction C 2500 Harrison Rd. Columbus, OH 43204 NA 102 Cyborg Systems P.O. Box 6197, Chicago, IL 60680-6197 NA 123 Dawson Personnel Services P.O. Box 710943 Columbus, OH 43271-0943 NA 204 DRPollard & Associates Inc. 2200 Wilson Blvd. Suite 409, Arlington, VA 22201 NA 74 Deloitte & Touche P.O. Box 1613, Stamford, CT 06920-1313 NA 253 EDI Business Group, Inc. 7224 Cadence Ct., Columbia, MD 21046 NA 58 Excel Temporary Services P.O. Box 277041, Atlanta, GA 30384-7041 NA 78 FlightSafety International P.O. Box 75691, Charlotte, NC 28275 NA 62 Gartner Group Inc. P.O. Box 911319, Dallas, TX 75391-1319 NA 274 Harris Trust & Savings Bank 33101 Treasury Center, Chicago, IL 60694-3100 NA 151 Harris Bank P.O. Box 755, Chicago, IL 60690-0755 NA 62 Iconix 4927 Auburn Ave. Bethesda, MD 20814 NA 61 IBM P.O. Box 98880, Chicago, IL 60693 NA 284 International Network Services P.O. Box 7049, San Francisco, CA 94120-7049 NA 144 The Invisions Group LTD. 4927 Auburn Ave. Bethesda, MD 20814 NA 153 Knowledge Link Dept. L-1715, Columbus, OH 43260-1715 NA 80 Lexis-Nexis P.O. Box 7247-7090, Philadelphia, PA 19170-7090 NA 54 Mcardle Printing Co. Inc. 800 Commerce Dr., Upper Marlboro MD 20772 NA 371 Marine Midland Bank P.O. Box 4203, Buffalo, NY 14240-4203 NA 64 PNC Bank, N.A. 620 Liberty Ave. Pittsburgh, PA 15265 NA 136 Pinkerton P.O. Box 2111 Carol Stream, IL 60132-2111 NA 82 Placers Temps & Search P.O. Box 15621, Wilmington, DE. 19850-5621 NA 85 Sarcom Dept. #0703, Columbus, OH 43271-0703 NA 442 Savoy Partners LTD. 1620 L Street, NW Suite 801, Washington, DC 20036 NA 65 Techforce Corp P.O. Box 861419, Orlando, FL 32886-1419 NA 109 Trustees, University of PA 3809 Walnut St. Philadelphia, PA 19104-3604 NA 109 Wayfarer Aviation, Inc. P.O. Box 29764, New York, NY 10087-9764 NA 76 Xerox Corp P.O. Box 827598, Philadelphia, PA 19182-7598 NA 548 523 Organizations 2,409 -------- Total Special Services - Other 7,440
Page 33 34 SCHEDULE 923-A COLUMBIA ENERGY GROUP SERVICE CORPORATION OUTSIDE SERVICES EMPLOYED ACCOUNT 923
RELATIONSHIP "A" = ASSOCIATE AMOUNT "NA" = NON --------------------- FOR WHOM PURCHASED ADDRESS ASSOCIATE $000 $000 - ---------------------------- -------------------------------------- --------------- -------- -------- 4-Special Services - Tax Ambassador Research Inc. 6495 Refugee Rd. NW, Pinkerton, OH 43147 NA 80 Arthur Andersen LLP P.O. Box 13882, Newark, NJ 07188-0882 NA 55 Stroock & Stroock & Lavan LLP 180 Maiden Lane, New York, NY 10038 NA 107 9 Organizations 66 -------- Total Special Services - Tax 308 -------- 5- Special Services - Consulting A. T. Kearney, Inc. 225 Reinekers Ln., Alexandria, VA 22314 NA 187 Dames & Moore File No 54279, Los Angeles, CA 90074-4279 NA 223 Eastman Consultants, Inc. 19034 Penninsula Point Dr., Cornelius, NC 28031 NA 92 Gartner Group, Inc. P.O. Box 911319, Dallas TX 75391-1319 NA 95 Invisions Group LTD 4927 Auburn Ave., Bethesda, MD 20814 NA 112 Johnson, John Paul 7713 Lear Rd., Mclean, VA 22102 NA 66 Korn/ Ferry International Dept. Ch 10228, Palatine, IL 60055-0228 NA 51 LAI P.O. Box 30027, Tampa, FL 33630-3027 NA 66 OVCA Associates Inc. 7 Overlook Road, Louisville, KY 40207 NA 57 SSI Inc. P.O. Box 98991, Chicago, IL 60693 NA 80 Savoy Partners, LTD 1620 L St. NW, Suite 801, Washington, DC 20036 NA 51 Craig Eric Schneier Assoc. 175 Highland Terrace, Princeton, NJ 08540 NA 71 Shandwick Public Affairs P.O. Box 1213, Dept. 14984, Newark, NJ 07101 NA 728 Teleos Consulting 12 Chestnut Hill Terrace, Newton, Ma 02467 NA 91 Towers Perrin P.O. Box 8500, S-6110, Philadelphia, PA 19178 NA 280 Watson Wyatt & Co. P.O. Box 277665, Atlanta, GA 30384-7665 NA 85 78 Organizations 850 -------- -------- Total Special Services - Consulting 3,185 -------- Total All Special Services 13,318 ========
Page 34 35 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- EMPLOYEE PENSIONS AND BENEFITS ACCOUNT 926 - -------------------------------------------------------------------------------- INSTRUCTIONS: Provide a listing of each pension plan and benefit program provided by the service company. Such listing should be limited to $25,000.
- --------------------------------------------------------------------------------------------- DESCRIPTION AMOUNT - --------------------- -------------- $000 Hewett Admin Start-up costs 1,951 Medical Expense Plan 1,723 Employee Relocation Expense 1,382 Thrift Plan 863 Pension Restoration Plan 426 Dental Assistance Plan 215 Long-Term Disability Insurance 156 Miscellaneous 93 Other Post-Employment Benefits 82 Group Life Insurance 77 Employee Cafeteria Subsidy 64 Educational Assistance 62 Flexible Spending Health & Dental (31) Employee Assistance Plan (79) Employee Retirement Expense (1,064) -------------- Total 5,920 - ---------------------------------------------------------------------------------------------
Page 35 36 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- GENERAL ADVERTISING EXPENSES ACCOUNT 930.1 - -------------------------------------------------------------------------------- INSTRUCTIONS: Provide a listing of the amount included in Account 930.1, "General Advertising Expenses," classifying the items according to the nature of the advertising and as defined in the account definition. If a particular class includes an amount in excess of $3,000 applicable to a single payee, show separately the name of the payee and the aggregate amount applicable thereto.
- --------------------------------------------------------------------------------------------------------------- DESCRIPTION NAME OF PAYEE AMOUNT - -------------------------------- ------------------------------------ ------------- $000 Employee Recruiting Stackig, Inc. 84 Employee Recruiting Gammill Group Inc. 20 Employee Recruiting The Columbus Dispatch 13 Employee Recruiting Nationwide Advertising Service 5 Employee Recruiting Alexus International 2 ------------- TOTAL 124 - ---------------------------------------------------------------------------------------------------------------
Page 36 37 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- MISCELLANEOUS GENERAL EXPENSES ACCOUNT 930.2 - -------------------------------------------------------------------------------- INSTRUCTIONS: Provide a listing of the amount included in Account 930.2, "Miscellaneous General Expenses," classifying such expenses according to their nature. Payments and expenses permitted by Section 321 (b)(2) of the Federal Election Campaign Act, as amended by Public Law 94-283 in 1976 (2 U.S.C. Section 441 (b)(2) shall be separately classified.
- -------------------------------------------------------------------------------------------------- DESCRIPTION AMOUNT - ----------------------------------------------------------------------------- ---------------- $000 Dues and Memberships - Corporate 374 Employee Recruiting 239 Courier Services 217 Other 182 Industry Meetings 72 Employee Training 69 Bank Service Charges 66 Filing and License Fees 43 Aircraft Service 35 Political Activities 24 Newswire Services 14 Employment Agreement 8 SEC Filings 6 ---------------- TOTAL 1,349 - --------------------------------------------------------------------------------------------------
Page 37 38 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- RENTS ACCOUNT 931 - -------------------------------------------------------------------------------- INSTRUCTIONS: Provide a listing of the amount included in Account 931, "Rents", classifying such expenses by major grouping of property, as defined in the account definition of the Uniform System of Accounts. - --------------------------------------------------------------------------------
AMOUNT - ------------------------------------------------------------------------------ ----------------- $000 Data Processing 4,156 Office Space 934 Air Transportation 602 Auto and General Tools 177 Communications 59 Miscellaneous 182 ----------------- TOTAL 6,110 - ------------------------------------------------------------------------------------------------------
Page 38 39 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- TAXES OTHER THAN INCOME TAXES ACCOUNT 408 - -------------------------------------------------------------------------------- INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than Income Taxes." Separate the analysis into two groups: (1) other than U.S. Government taxes, and (2) U.S. Government taxes. Specify each of the various kinds of taxes and show the amounts thereof. Provide a subtotal for each class tax. - --------------------------------------------------------------------------------
AMOUNT - ------------------------------------------------------------------------------ ----------------- $000 (1) Other than U.S. Government Taxes: Property 672 Sales and Use 65 Unemployment 47 License or Franchise 14 ----------------- Total - other 798 (2) U.S. Government Taxes: Federal Insurance Contribution 1,960 Unemployment 27 Miscellaneous 1 ----------------- Total - Federal 1,988 TOTAL 2,786 - ----------------------------------------------------------------------------------------------------
Page 39 40 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- DONATIONS ACCOUNT 426.1 - -------------------------------------------------------------------------------- INSTRUCTIONS: Provide a listing of the amount included in Account 426-1, "Donations," classifying such expenses by its purpose. The aggregate number and amount of all items of less than $3,000 may be shown in lieu of details.
- --------------------------------------------------------------------------------------------------------------- NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT - ------------------------------------------------- --------------------------------------- ------------- $000 Columbia Gas Foundation Community Welfare 110 Greater Loudon Babe Ruth World Series Inc. Community Welfare 10 Miscellaneous (8) Community Welfare 2 ------------- TOTAL 122 - ---------------------------------------------------------------------------------------------------------------
Page 40 41 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 - -------------------------------------------------------------------------------- OTHER DONATIONS ACCOUNT 426.5 - -------------------------------------------------------------------------------- INSTRUCTIONS: Provide a listing of the amount included in Account 426.5, "Other Deductions," classifying such expenses according to their nature.
- ----------------------------------------------------------------------------------------------------- DESCRIPTION AMOUNT - --------------------------------------------------------------------------- --------------------- $000 NONE --------------------- TOTAL NONE - -----------------------------------------------------------------------------------------------------
Page 41 42 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1997 - -------------------------------------------------------------------------------- SCHEDULE XVIII NOTES TO STATEMENT OF INCOME - -------------------------------------------------------------------------------- INSTRUCTIONS: The space below is provided for important notes regarding the statement of income or any account thereof. Furnish particulars as to any significant increase in services rendered or expenses incurred during the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. - -------------------------------------------------------------------------------- For additional notes, see Page 22, Notes to Financial Statements. - -------------------------------------------------------------------------------- Page 42 43 COLUMBIA ENERGY GROUP SERVICE CORPORATION ORGANIZATIONAL CHART ------------------------- Chairman, President & CEO RICHARD, III ------------------------- | -------------------------------------------------|--------------------------------------------- | | | | | ------------------- --------------- ------------- ------------- --------------------- SR VP Strategic SR VP Human Senior VP Senior VP Senior VP & Chief Planning Resources Services & CFO Legal Officer HAMMICK FONT MAGLEY O'DONNELL SCHWOLSKY ------------------- --------------- ------------- ------------- --------------------- | | | | | | | | | | - ---------------------- ---------------------- ---------------------- ------------------ ------------------------- Strategic Planning Corporate Benefits Air Transportation Consolidation Environmental Affairs - ---------------------- ---------------------- ---------------------- ------------------ ------------------------- | Human resources Client Support Corporate Treasury Legal | - ---------------------- ---------------------- ---------------------- ------------------ ------------------------- Governmental Affairs Training Common/Corporate Corporate Finance Risk Management Systems - ---------------------- ---------------------- ---------------------- ------------------ ------------------------- | Organizational Enterprise Multimedia Financial Planning | Development Communications & Reporting - ---------------------- ---------------------- ---------------------- ------------------ Corporate Executive Marble Cliff Internal Audit Communications Compensation Building Services - ---------------------- ---------------------- ---------------------- ------------------ | Network Computer Tax | Services - ---------------------- ---------------------- ----------------- Investor Relations Dulles Building Accounting Services Services - ---------------------- ---------------------- ----------------- Payroll Energy Ventures ---------------------- -----------------
Page 43 44 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION METHODS OF ALLOCATION - -------------------------------------------------------------------------------- The following Basis of Allocation have been approved by the SEC as a method of allocating Job Order charges and convenience payments directly to Associate Companies. - Total Gross Fixed Assets and Total Operating Expenses - Total Gross Fixed Assets - Total Distribution Property and Distribution Expenses - Total Production Property and Expense - Total Storage Property and Expense - Transmission Property and Transmission Expenses - Total Operating Expenses and Gross Depreciable Property - Gross Depreciable Property - Number of Automobile Units Owned and Leased - Number of Retail Customers - Number of Regular Employees - Fixed Allocation - Direct Costs Page 44 45 ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION For the Year Ended December 31, 1998 ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED - -------------------------------------------------------------------------------- COMPENSATION FOR USE OF CAPITAL SUMMARY OF BILLING TO ASSOCIATE COMPANIES
Direct & Allocated Compensation Company Labor Billed - -------------------------------------------------------------------- ----------------- ------------------ $000 $000 Columbia Energy Group 1,519 192 Columbia Gulf Transmission Company 1,166 336 Columbia Energy Services Corporation 1,099 116 Columbia Propane Corporation 334 74 Columbia Electric Corporation 206 37 Columbia LNG Corporation 80 17 Columbia Network Services Corporation 105 14 Columbia Insurance Corporation, Ltd. 58 9 Columbia Gas of Kentucky, Inc. 419 105 Columbia Gas of Ohio, Inc. 3,487 859 Columbia Gas of Maryland, Inc. 127 34 Columbia Gas of Pennsylvania, Inc. 1,251 323 Columbia Gas of Virginia, Inc. 673 158 Columbia Energy Group Capital Corporation 10 1 Columbia Gas Transmission Corporation 3,758 1,099 Columbia Atlantic Trading Corporation 5 1 Columbia Energy Resources, Inc. 663 148 ---------------- ----------------- Total 14,960 3,523 ================ =================
The above is a summary of the Compensation for Use of Capital billed to each company. Attached is a sample of the annual statement sent to each associate company. Since they are identical except for the amount billed, the summary is included in lieu of seventeen individual statements (see page 46). - -------------------------------------------------------------------------------- Page 45 46 COLUMBIA ENERGY GROUP SERVICE CORPORATION COMPENSATION FOR USE OF CAPITAL - -------------------------------------------------------------------------------- BILLED TO COLUMBIA PROPANE CORPORATION DURING 1998 - --------------------------------------------------------------------------------
SYSTEM MONTHLY INTEREST DIRECT & RATE BILLING TO NET TOTAL ALLOCATED COL. 3/ MONTH PARENT INCOME COMPENSATION LABOR COL. 4 - ------------- ----------------- ----------------- ----------------- ------------------- -------------- (1) (2) (3) (4) (5) JANUARY 108,101.73 186,437.00 294,538.73 1,073,606.68 27.43451 FEBRUARY 102,868.12 186,437.00 289,305.12 1,259,264.74 22.97413 MARCH 181,386.57 186,437.00 367,823.57 1,299,428.73 28.30656 APRIL 106,593.43 186,437.00 293,030.43 1,310,622.31 22.35811 MAY 106,182.94 186,437.00 292,619.94 1,207,124.13 24.24108 JUNE 105,786.37 186,437.00 292,223.37 1,300,440.64 22.47110 JULY 105,755.70 186,437.00 292,192.70 1,274,576.87 22.92468 AUGUST 105,474.27 186,437.00 291,911.27 1,201,816.91 24.28916 SEPTEMBER 106,808.77 186,437.00 293,245.77 1,252,055.69 23.42114 OCTOBER 104,688.01 186,437.00 291,125.01 1,259,554.58 23.11333 NOVEMBER 104,478.68 186,437.00 290,915.68 1,340,347.90 21.70449 DECEMBER 104,680.45 186,437.00 291,117.45 1,181,123.99 24.65 ----------------- ----------------- ----------------- ------------------- -------------- 1,342,805.04 2,237,244.00 3,580,049.04 14,959,963.17 23.93087 ================= ================= ================= =================== ==============
MANAGEMENT D&A LABOR COMPENSATION BILLING BILLED TO BILLED MONTH CPC COL. 5 x COL. 6 - ------------- ---------------- ------------------- (6) (7) JANUARY 27,851.70 7,640.98 FEBRUARY 32,709.19 7,514.65 MARCH 33,185.62 9,393.71 APRIL 30,477.80 6,814.26 MAY 23,698.58 5,744.79 JUNE 23,337.18 5,244.12 JULY 23,894.40 5,477.72 AUGUST 25,678.20 6,237.02 SEPTEMBER 23,979.64 5,616.31 OCTOBER 22,390.52 5,175.19 NOVEMBER 31,021.48 6,733.05 DECEMBER 35,307.54 8,702.42 ---------------- ------------------ 333,531.85 80,294.23 ================ ==================
- -------------------------------------------------------------------------------- Page 46 47 SIGNATURE Pursuant to the requirements of the Public Utility Holding Company Act of 1935 and the rules and regulations of the Securities and Exchange Commission issued thereunder, the undersigned company has duly caused this report to be signed on its behalf by the undersigned officer thereunto duly authorized. COLUMBIA ENERGY GROUP SERVICE CORPORATION By: --------------------------------------- D. Furlano Assistant Controller Date: April 28, 1999 - -------------------------------------------------------------------------------- Page 47 -----END PRIVACY-ENHANCED MESSAGE-----