-----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, tQOTcOHA6OTzZ8pUMdU/IMqY2/I10R+KLIqbFqAG1AyG0f3tgmZSdb2ZFvjrQQz2 6Uji5Rv12iMCHfGUFAy5wA== 0000950144-95-000500.txt : 19950601 0000950144-95-000500.hdr.sgml : 19950601 ACCESSION NUMBER: 0000950144-95-000500 CONFORMED SUBMISSION TYPE: U-3A-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950301 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DUKE POWER CO /NC/ CENTRAL INDEX KEY: 0000030371 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 560205520 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U-3A-2 SEC ACT: 1935 Act SEC FILE NUMBER: 069-00351 FILM NUMBER: 95517447 BUSINESS ADDRESS: STREET 1: 422 S CHURCH ST CITY: CHARLOTTE STATE: NC ZIP: 28242-0001 BUSINESS PHONE: 7045940887 MAIL ADDRESS: STREET 1: 422 S CHURCH ST CITY: CHARLOTTE STATE: NC ZIP: 28242 U-3A-2 1 DUKE POWER U-3A-2 1 File No. 69-351 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. FORM U-3A-2 STATEMENT BY HOLDING COMPANY CLAIMING EXEMPTION UNDER RULE U-3A-2 FROM THE PROVISIONS OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 To be filed annually prior to March 1 DUKE POWER COMPANY hereby files (on behalf of itself and all of the members of its consolidated group as described herein) with the Securities and Exchange Commission, pursuant to Rule 2, its statement claiming exemption as a holding company from the provisions of the Public Utility Holding Company Act of 1935, and submits the following information: 2 1. NAME, STATE OF ORGANIZATION, LOCATION AND NATURE OF BUSINESS OF CLAIMANT AND EVERY SUBSIDIARY THEREOF, OTHER THAN ANY EXEMPT WHOLESALE GENERATOR (EWG) OR FOREIGN UTILITY COMPANY IN WHICH CLAIMANT DIRECTLY OR INDIRECTLY HOLDS AN INTEREST. Duke Power Company (the "Claimant"), a North Carolina corporation, is engaged in the generation, transmission, distribution and sale of electric energy in the central portion of North Carolina and the western portion of South Carolina. Its service area, approximately two-thirds of which is located in North Carolina, covers about 20,000 square miles with an estimated population of 4,900,000 and includes a number of cities, of which the largest are Charlotte, Greensboro, Winston-Salem and Durham in North Carolina and Greenville and Spartanburg in South Carolina. During the year ended December 31, 1994, the Claimant's electric revenues amounted to approximately $4.3 billion, of which about 70% was derived from North Carolina and 30% from South Carolina. The Claimant's executive offices are located in the Power Building, 422 South Church Street, Charlotte, North Carolina 28242. (Reference is made to Form 10-K Annual Report of the Claimant for the year ended December 31, 1994, to be available after March 31, 1995, and hereby incorporated herein by reference for additional information concerning the business of Claimant.) The Claimant has the following active subsidiaries, all of which are wholly owned. 1. Nantahala Power and Light Company ("NP&L"), a North Carolina corporation, is engaged in the business of generating, transmitting and distributing electric power in western North Carolina. 2. Church Street Capital Corp. ("Church Street"), a Delaware corporation, manages investment funds and serves as the parent company for the non-electric operating subsidiaries in the Claimant's system. 2 3 The Claimant has the following inactive subsidiaries, all of which are wholly owned: 1. Eastover Mining Company, a Kentucky corporation 2. Eastover Land Company, a Kentucky corporation 3. Catawba Mfg. & Electric Power Company, a North Carolina corporation 4. Western Carolina Power Company, a North Carolina corporation 5. Caldwell Power Company, a North Carolina corporation 6. Southern Power Company, a North Carolina corporation 7. Greenville Gas & Electric Light & Power Company, a South Carolina corporation 8. Wateree Power Company, a South Carolina corporation 9. Western Fuel, Inc., a Wyoming corporation
2. A BRIEF DESCRIPTION OF THE PROPERTIES OF CLAIMANT AND EACH OF ITS SUBSIDIARY PUBLIC UTILITY COMPANIES USED FOR THE GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRIC ENERGY FOR SALE, OR FOR THE PRODUCTION, TRANSMISSION AND DISTRIBUTION OF NATURAL OR MANUFACTURED GAS, INDICATING THE LOCATION OF PRINCIPAL GENERATING PLANTS, TRANSMISSION LINES, PRODUCING FIELDS, GAS MANUFACTURING PLANTS, AND ELECTRIC AND GAS DISTRIBUTION FACILITIES, INCLUDING ALL SUCH PROPERTIES WHICH ARE OUTSIDE THE STATE IN WHICH THE CLAIMANT AND ITS SUBSIDIARIES ARE ORGANIZED AND ALL TRANSMISSION OR PIPELINES WHICH DELIVER OR RECEIVE ELECTRIC ENERGY OR GAS AT THE BORDERS OF SUCH STATE. At December 31, 1994, the Claimant operated three nuclear generating stations, eight coal-fired stations and twenty-seven hydroelectric stations, all of which are located in North Carolina or South Carolina. The following is a list of the major generating stations owned by the Claimant at December 31, 1994: 3 4
Facility Energy Source Net MW -------- ------------- ------ Oconee Nuclear 2,538 McGuire Nuclear 2,258 Catawba(1) Nuclear 2,258 Belews Creek Coal 2,240 Marshall Coal 2,090 Allen Coal 1,140 Cliffside Coal 760 Others Coal 1,431 Bad Creek Hydroelectric 1,065 Jocassee Hydroelectric 610 Others Hydroelectric 1,007 Combustion Oil and gas 584 turbines
------------------- (1)The Catawba Nuclear Station is a jointly-owned facility, of which the Claimant's ownership share is 12-1/2 percent. The Claimant is currently constructing the Lincoln Combustion Turbine Station, a 16-turbine facility designed to provide capacity at periods of peak demand. The station will have a total generating capacity of 1,184 megawatts. Twelve units are expected to begin operation by the end of 1995, with the remaining four units to begin operation in 1996. The facility is designed to operate on either natural gas or oil. In addition to the electric generating plants described above, Claimant owned, as of December 31, 1994, approximately 8,300 conductor miles of transmission lines, including 600 conductor miles of 500 kilovolts, 1,400 conductor miles of 220 kilovolts, 3,400 conductor miles of 100 kilovolts, and 2,900 conductor miles of 13 - 66 kilovolts. 4 5 The Claimant also owned, as of December 31, 1994, approximately 72,500 conductor miles of distribution lines, including 46,800 conductor miles of rural overhead lines, 14,400 conductor miles of urban overhead lines, 6,300 conductor miles of rural underground lines and 5,000 conductor miles of urban underground lines. As of such date, the Claimant's transmission and distribution systems comprised approximately 1,700 substations with an installed transformer capacity of approximately 83,100,000 kVA. NP&L's generation facilities consist of eleven hydroelectric plants with an aggregate nameplate capacity of approximately 100 MW. The transmission backbone of the system is a 161 kV line from Santeetlah to substations at Robbinsville, Nantahala Plant, Oak Grove, Webster and Thorpe Plant. At these substations, voltage is stepped down and sent over lower voltage lines to customers. Duke Power supplies all of NP&L's supplemental power needs from Duke Power's Tuckaseegee Substation near NP&L's Thorpe Plant. NP&L also has an interconnection with the Tennessee Valley Authority (TVA) of 161 kV at Santeetlah, North Carolina. Reference is made to the map attached hereto as Exhibit D for the locations of principal generating plants, transmission lines, and distribution facilities of Claimant and NP&L. Such map is incorporated herein by reference. 3. THE FOLLOWING INFORMATION FOR THE LAST CALENDAR YEAR WITH RESPECT TO THE CLAIMANT AND EACH OF ITS SUBSIDIARY PUBLIC UTILITY COMPANIES: (A) NUMBER OF KWH. OF ELECTRIC ENERGY SOLD (AT RETAIL OR WHOLESALE), AND MCF. OF NATURAL OR MANUFACTURED GAS DISTRIBUTED AT RETAIL. Number of kwh. of electric energy sold (at retail or wholesale): 5 6
Company Kwh. ------- ---- Claimant(1) 65,687,699,000 (retail) 10,035,612,000(2) (wholesale) NP&L 832,637,000 (retail) 176,554,000(3) (wholesale) --------------
(1) Excludes (160,424,000) Kwh for change in electric service rendered but not yet billed to customers. (2) Excludes 5,761,187,000 Kwh received by the other joint owners of the Catawba Nuclear Station, which represents delivery of the other joint owners energy entitlements. These deliveries are not reflected as sales by the Claimant. (3) Includes sales to Claimant of 22,617,000 Kwh.
Gas Sales (at retail) --------------------- Company Mcf. ------- ---- Claimant None NP&L None
(B) NUMBER OF KWH. OF ELECTRIC ENERGY AND MCF. OF NATURAL OR MANUFACTURED GAS DISTRIBUTED AT RETAIL OUTSIDE THE STATE IN WHICH EACH COMPANY IS ORGANIZED.
Company Kwh. ------- ---- Claimant 20,307,998,000 NP&L None Company Mcf. ------- ---- Claimant None NP&L None
6 7 (C) NUMBER OF KWH. OF ELECTRIC ENERGY AND MCF. OF NATURAL OR MANUFACTURED GAS SOLD AT WHOLESALE OUTSIDE THE STATE IN WHICH EACH SUCH COMPANY IS ORGANIZED, OR AT THE STATE LINE.
Company Kwh. ------- ---- Claimant 3,924,268,000 NP&L 79,134,000(1) Company Mcf. ------- ---- Claimant None NP&L None
------------------ (1)Kwh bought from Claimant and sold to TVA, which is organized outside North Carolina. However, sales are made at interconnection points inside North Carolina. (D) NUMBER OF KWH. OF ELECTRIC ENERGY AND MCF. OF NATURAL OR MANUFACTURED GAS PURCHASED OUTSIDE THE STATE IN WHICH EACH SUCH COMPANY IS ORGANIZED, OR AT THE STATE LINE.
Company Kwh. ------- ---- Claimant 3,138,268,000 NP&L 22,617,000(1) Company Mcf. ------- ---- Claimant None NP&L None
- ------------------ (1)This amount reflects purchases from TVA, which is organized outside North Carolina. However, such purchases are made at interconnection points inside North Carolina. All Kwh purchased from TVA was sold to Claimant. 4. THE FOLLOWING INFORMATION FOR THE REPORTING PERIOD WITH RESPECT TO CLAIMANT AND EACH INTEREST IT HOLDS DIRECTLY OR INDIRECTLY IN AN EWG OR A FOREIGN UTILITY COMPANY, STATING MONETARY AMOUNTS IN UNITED STATES DOLLARS: 7 8 (A) NAME, LOCATION, BUSINESS ADDRESS AND DESCRIPTION OF THE FACILITIES USED BY THE EWG OR FOREIGN UTILITY COMPANY FOR THE GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRIC ENERGY FOR SALE OR FOR THE DISTRIBUTION AT RETAIL OF NATURAL OR MANUFACTURED GAS. The Claimant owns indirect equity interests in three foreign utility companies that directly own electric facilities in Argentina, and one foreign utility company that directly owns electric facilities in Indonesia. Such electric facilities are described below: (1) CENTRAL TERMICA GUEMES S.A. ("GUEMES") Location of Ruta 34 KM 1135 Facility: (4430) GRAL.M.M. de Guemes Salta, Argentina Business Alsina 633, Fifth Floor Address: Buenos Aires Republic of Argentina Guemes owns the Guemes Power Station, which is comprised of two 60 MW gas fired units and one 125 MW gas fired unit. Guemes sells electric energy and capacity in the "Wholesale Electric Market" which has been established by statute in Argentina under the jurisdiction of the Argentine Secretariat of Energy and the National Regulatory Entity of Electricity. Energy and capacity are sold on a competitive spot market basis and under term agreements in accordance with dispatch instructions from a central dispatch center. (2) COMPANIA DE TRANSPORTE DE ENERGIA ELECTRICA EN ALTA TENSION TRANSENER S.A. ("TRANSENER") Location of Paseo Colon 728 8 9 Facility: Buenos Aires Argentina Business Av. de Mayo, 645 First Floor Address: Buenos Aires Republic of Argentina Transener holds a concession for the transmission of high tension electric energy in Argentina. The transmission facilities that Transener owns consist of 6,867 kilometers of 500 kV transmission lines, 284 kilometers of 220 kV transmission lines and 27 transforming substations. (3) HIDROELECTRICA PIEDRA DEL AGUILA S.A. ("PIEDRA DEL AGUILA") Location of (8314) VILLA Piedra del Aguila Facility: Neuquen Argentina Business Av. de Mayo, 645 First Floor Address: Buenos Aires Republic of Argentina Piedra del Aguila holds an exclusive 30-year concession for the generation of hydro-electric energy from the facility located at Piedra del Aguila in the Provinces of Neuquen and Rio Negro in Argentina. The facility consists of four 350 MW units. Energy and capacity are sold on a competitive spot market basis and under term agreements, in accordance with dispatch instructions from a central dispatch center. (4) P.T. PUNCAKJAYA POWER ("PJP") Location of Irian Jaya region of eastern Facility: Indonesia Business Plaza 89, 6th Floor 9 10 Address: J1. H.R. Rasuna Said Kav. X-7 No. 6 Jakarta 12940, Indonesia PJP owns or will own certain facilities consisting of power generation, transmission and distribution assets which are existing, under construction or planned. Such facilities provide electric power to a large mining and milling operation and its supporting infrastructure. The generation assets will consist of nine separate power production plants located in Irian Jaya, Indonesia. As of December 31, 1994, PJP owned the following assets: five Power Generation Facilities consisting of 34 diesel generating units (ranging from 2.2 MW to 4.0 MW) and two hydroelectric generating units (approximately 3.15 MW each) and the related transmission and distribution to deliver the power to the end user. Existing on-line power plants have a combined adjusted nameplate capacity of approximately 108 MW; power plants currently under construction are expected to have a combined adjusted nameplate capacity of approximately 69MW; and planned power plant additions are expected to have a combined adjusted nameplate capacity of approximately 16 MW. The facilities also include or will include the following transmission and distribution assets: a 115 kV ring bus which interconnects certain of the power production plants and a 13 kilometer 20 kV transmission line which will join two portions of the facilities upon its completion. (B) NAME OF EACH SYSTEM COMPANY THAT HOLDS AN INTEREST IN SUCH EWG OR FOREIGN UTILITY COMPANY; AND DESCRIPTION OF THE INTEREST HELD. Set forth below, under the names of the facilities described in Section 4(a) above, are the system companies holding interests therein and the relationship of such companies to the Claimant. Each of the companies listed below is a foreign utility company. The interests in foreign utility companies described in Section 4(a) are all directly or indirectly held by Duke Energy Group, Inc., a 10 11 Delaware corporation ("DEG"), which is a wholly owned subsidiary of Church Street. Church Street is a direct subsidiary of the Claimant. Reference is made to the organizational charts in Exhibits C-1 through C-4. (1) GUEMES FACILITY Central Termica Guemes S.A. Duke Guemes, Inc. Powerco S.A. Powerco Services S.A. Duke Guemes Operating Corp. Duke Guemes, Inc., a Delaware corporation ("Duke Guemes"), is a wholly owned direct subsidiary of DEG. Duke Guemes in turn owns a 25% equity interest in Powerco S.A., ("Powerco") an Argentine corporation headquartered in Buenos Aires. Powerco owns a 60% equity interest in Guemes. This ownership results in Duke Guemes owning a 15% indirect equity interest in Guemes. Duke Guemes also owns 51% of Powerco Services S.A., an Argentine corporation ("Powerco Services"), which provides operating expertise to the Guemes facility, and is the operator of the Guemes station presently qualified by the Argentine government. Duke Guemes owns 100% of the outstanding voting stock of Duke Guemes Operating Corp. ("DGOC"), a Delaware corporation, which assists Powerco Services in operating the Guemes Power Station. (2) TRANSENER FACILITIES Compania de Transporte de Energia Electrica en Alta Tension Transener S.A. Duke Transener, Inc. Compania Inversora en Transmision 11 12 de Electrica Citelec S.A. ("Citelec") Duke Transener Operating Corp. Duke Transener, Inc., a Delaware corporation ("Duke Transener"), is a wholly owned direct subsidiary of DEG. Duke Transener in turn owns a 15% equity interest in Citelec, an Argentine corporation based in Buenos Aires. Citelec owns a 65% equity interest in Transener, resulting in Duke Transener holding a 9.75% indirect equity interest in Transener. Duke Transener is an operator of the Transener facilities presently qualified by the Argentine government. Duke Transener also owns 100% of the outstanding voting stock of Duke Transener Operating Corp., a Delaware corporation ("DTOC"). DTOC provides operating expertise to the Transener facilities. (3) PIEDRA DEL AGUILA FACILITY Hidroelectrica Piedra del Aguila S.A. Duke Hidronor, Inc. Hidroneuquen S.A. Duke Hidronor Operating Corp. Duke Hidronor, Inc., a Delaware corporation ("Duke Hidronor"), is a wholly owned direct subsidiary of DEG. Duke Hidronor in turn owns a 16.54% equity interest in Hidroneuquen S.A., ("Hidroneuquen") an Argentine corporation. Hidroneuquen owns a 59% equity interest in Piedra del Aguila, resulting in Duke Hidronor holding a 9.76% indirect equity interest in Piedra del Aguila. Duke Hidronor is an operator of the Piedra del Aguila facility. Duke Hidronor also owns 100% of the outstanding voting stock of Duke Hidronor Operating Corp., a Delaware corporation ("DHOC"). DHOC will become an operator of the Piedra del Aguila facility, upon approval of the Argentine 12 13 government, replacing Duke Hidronor in that capacity. Duke Hidronor will continue to be a foreign utility company by virtue of the ownership interests described herein. (4) PJP FACILITY P.T. Puncakjaya Power P.T. Nusantara Power Services ("NPS") Duke Irian Jaya, Inc. Thirty percent of the outstanding voting stock of PJP is owned by Duke Irian Jaya, Inc., a Delaware corporation ("Duke Irian Jaya"), which is a wholly owned direct subsidiary of DEG. The outstanding voting stock of NPS is 40% owned by Duke Coal Project Services Pacific, Inc., a Nevada corporation ("DCPSP"). DCPSP is a wholly owned direct subsidiary of Duke Coal Project Services Group, Inc., a Delaware corporation, which is a wholly owned subsidiary of Church Street. NPS became the operator of the PJP facilities after December 31, 1994. (C) TYPE AND AMOUNT OF CAPITAL INVESTED, DIRECTLY OR INDIRECTLY, BY THE HOLDING COMPANY CLAIMING EXEMPTION; ANY DIRECT OR INDIRECT GUARANTEE OF THE SECURITY OF THE EWG OR FOREIGN UTILITY COMPANY BY THE HOLDING COMPANY CLAIMING EXEMPTION; AND ANY DEBT OR OTHER FINANCIAL OBLIGATION FOR WHICH THERE IS RECOURSE, DIRECTLY OR INDIRECTLY, TO THE HOLDING COMPANY CLAIMING EXEMPTION OR ANOTHER SYSTEM COMPANY, OTHER THAN THE EWG OR FOREIGN UTILITY COMPANY. (1) GUEMES As of December 31, 1994, DEG had invested $19,625,448 of equity in Duke Guemes. Duke Guemes had invested $18,247,005 of equity in Powerco and $20,910 of equity in Powerco Services. Powerco had invested $31,850,113 of equity in Guemes. (2) TRANSENER 13 14 As of December 31, 1994, DEG had invested $19,384,344 of equity in Duke Transener. Duke Transener had invested $18,483,010 of equity in Citilec. Citilec had invested $205,195,749 of equity in Transener. As of December 31, 1994, Church Street had guaranteed $4 million of Citilec debt. This guarantee expires in May 1995. (3) PIEDRA DEL AGUILA As of December 31, 1994, DEG had invested $48,418,887 of equity in Duke Hidronor. Duke Hidronor had invested $48,649,407 of equity in Hidroneuquen. Hidroneuquen had invested $276,535,028 of equity in Piedra del Aguila. As of December 31, 1994, Church Street had guaranteed $485,284 to the Argentine government for a bid bond and public works bond. (4) PJP As of December 31, 1994, DEG had invested $7,500,179 of equity in Duke Irian Jaya. Duke Irian Jaya had invested $3,750,179 of equity and $3,750,000 of subordinated debt in PJP. As of December 31, 1994, no equity had been invested in DCPSP or NSP. Operations of these entities began in 1995. (D) CAPITALIZATION AND EARNINGS OF THE EWG OR FOREIGN UTILITY COMPANY DURING THE REPORTING PERIOD. See Exhibit A-6 for capitalization and earnings of foreign utility companies. (E) IDENTIFY ANY SERVICE, SALES OR CONSTRUCTION CONTRACT(S) BETWEEN THE EWG OR FOREIGN UTILITY COMPANY AND A SYSTEM COMPANY, AND DESCRIBE THE SERVICES TO BE RENDERED OR GOODS SOLD AND FEES OR REVENUES UNDER SUCH AGREEMENT(S). 14 15 During the reporting period, the following service contracts were in effect: 1. Powerco Services and Guemes are parties to an Operation, Maintenance and Management Services Agreement under which Powerco Services provides operation, maintenance and management services for the Guemes Facility. Guemes reimburses Powerco Services for its direct costs incurred in providing such services plus an additional 7% of non-labor direct costs. Guemes also pays Powerco Services a fixed fee of $15,000 per month (adjusted based on increases in the GNP Implicit Price Deflator), and a quarterly variable fee of 6% of Guemes's net quarterly earnings before interest, principal, taxes and depreciation. 2. Powerco Services and Duke Guemes are parties to a Technical Assistance and Staffing Agreement, whereby Duke Guemes provides technical assistance and personnel necessary to allow Powerco Services to carry out its obligations under the Contract described in #1 above. Powerco Services agrees to reimburse Duke Guemes for all of its direct costs incurred in carrying out the contract plus an additional 7% of non-labor direct costs. It also agrees to pay to Duke Guemes a fixed fee of $7,650 per month (adjusted similarly as above), and a quarterly variable fee equal to 51% of the variable fee described in #1 above. 3. Transener, DTOC and four other entities are parties to a Technical Assistance Agreement for the Operation, Maintenance and Management of the Transener Facilities. DTOC and the other parties provide technical assistance to Transener in connection with its operation, maintenance and management of the Transener Facilities. Transener pays to DTOC and the other parties a fee equal to five percent of Transener's annual income, distributed pro rata based upon ownership in Citilec, Transener's direct parent. 4. Piedra del Aguila, Duke Hidronor and two other entities are parties to a Technological Assistance and Transfer of Technology Agreement whereby Duke Hidronor and the other two parties provide technical knowledge and assistance and transfers of certain technology to Piedra del Aguila for operation of the Piedra del Aguila Facility. As compensation under the Agreement, Piedra del Aguila agrees to pay Duke Hidronor and the other parties 1.5% of its annual gross income. The fee is to be distributed equally among Duke Hidronor and the other two parties providing services under the Agreement. 5. Duke Energy Corp. ("DEC"), a subsidiary of DEG, has entered into a Services Agreement with Duke Guemes pursuant to which DEC provides to Duke Guemes administrative, financial and other services, as requested by Duke Guemes, related to the Guemes Facility. DEC is reimbursed by Duke Guemes for all reasonable costs incurred in its performance of such services. DEC has identical agreements with Duke Transener, Duke Hidronor, Duke Irian Jaya, DGOC, DTOC and DHOC, each agreement relating to the project with which such company is associated. 6. PJP and DEC are parties to a Project Administrative Services Agreement, under which DEC provides administrative services to PJP related to PJP's insurance, credit agreement, accounting and treasury functions. DEC receives a fee based on its recovery of cost of providing such services, at rates which may be revised from time to time. The above-named Claimant has caused this statement to be duly executed on its behalf by its authorized officer on this 28th day of February, 1995. DUKE POWER COMPANY By: Ellen T. Ruff -------------------------- Ellen T. Ruff, Secretary and Deputy General Counsel {CORPORATE SEAL} ATTEST: Robert T. Lucas III - ------------------------ Name, title and address of officer to whom notices and correspondence concerning this statement should be addressed: Ellen T. Ruff Secretary and Deputy General Counsel Duke Power Company PB05E 422 South Church Street Charlotte, North Carolina 28242-0001 15 16 EXHIBIT A A consolidating statement of income and surplus of the Claimant and its subsidiary companies for the last calendar year, together with a consolidating balance sheet of the Claimant and its subsidiary companies as of the close of such calendar year. Exhibit A-1 - Consolidated Statements of Income and Retained Earnings of Duke Power Company for 1994 and Consolidated Balance Sheet of Duke Power Company as of December 31, 1994. Exhibit A-2 - Unconsolidated Statements of Income and Retained Earnings of Duke Power Company for 1994 and Unconsolidated Balance Sheet of Duke Power Company as of December 31, 1994. Exhibit A-3 - Statement of Income and Retained Earnings of Nantahala Power and Light Company for 1994 and Balance Sheet of Nantahala Power and Light Company as of December 31, 1994. Exhibit A-4 - Unconsolidated Statement of Income and Retained Earnings of Church Street Capital Corp. for 1994 and Unconsolidated Balance Sheet of Church Street Capital Corp. as of December 31, 1994. Exhibit A-5 - Consolidated Statements of Income and Retained Earnings of Foreign Utility Companies wholly owned by Claimant for 1994 and Consolidated Balance Sheets of Foreign Utility Companies Wholly-Owned by Claimant as of December 31, 1994. Exhibit A-6 - Duke Power Company Capitalization and Earnings of Foreign Utility Companies as of and for the year ended December 31, 1994
16 17 EXHIBIT A-1 Page 1 of 3 DUKE POWER COMPANY CONSOLIDATED STATEMENT OF INCOME (DOLLARS IN THOUSANDS) (AUDITED)
Year Ended December 31 1994 ----------- OPERATING REVENUES . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,488,913 OPERATING EXPENSES Fuel used in electric generation . . . . . . . . . . . . . . . . . . . . 705,019 Net interchange and purchased power . . . . . . . . . . . . . . . . . . . 553,355 Other operation and maintenance . . . . . . . . . . . . . . . . . . . . . 1,341,659 Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . 459,781 General taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249,273 ----------- Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . 3,309,087 ----------- OPERATING INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,179,826 ----------- INTEREST EXPENSE AND OTHER INCOME Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . (270,217) Allowance for funds used during construction and other deferred returns . 111,872 Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,414 ----------- Total interest expense and other income . . . . . . . . . . . . . . . (143,931) ----------- INCOME BEFORE INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . 1,035,895 ----------- INCOME TAXES Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302,758 Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,512 Investment tax credit - amortization of credits . . . . . . . . . . . . . (11,251) ----------- Total income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 397,019 ----------- NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 638,876 Dividends on preferred and preference stock . . . . . . . . . . . . . . . 49,724 ----------- EARNINGS FOR COMMON STOCK . . . . . . . . . . . . . . . . . . . . . . . . . $ 589,152 =========== COMMON STOCK DATA Average common shares outstanding (thousands) . . . . . . . . . . . . . . 204,859 Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.88 Dividends per share . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.92
18 Exhibit A-1 Page 2 of 3 DUKE POWER COMPANY CONSOLIDATED STATEMENT OF RETAINED EARNINGS TWELVE MONTHS ENDED DECEMBER 31, 1994 (DOLLARS IN THOUSANDS)
Year Ended December 31 1994 ----------- BALANCE - December 31, 1993 . . . . . . . . . . . . . . $ 2,410,825 ADD - Net income . . . . . . . . . . . . . . . . . . . . 638,876 ----------- Total . . . . . . . . . . . . . . . . . . . 3,049,701 ----------- DEDUCT Dividends Common stock . . . . . . . . . . . . . . . . . . . . 393,370 Preferred and preference stock . . . . . . . . . . . 49,724 Capital stock transactions, net . . . . . . . . . . . 687 ----------- Total deductions . . . . . . . . . . . . . . 443,781 ----------- BALANCE - December 31, 1994 . . . . . . . . . . . . . . $ 2,605,920 ===========
19 Exhibit A-1 Page 3 of 3 DUKE POWER COMPANY CONSOLIDATED BALANCE SHEET (Dollars in Thousands) (AUDITED)
December 31 1994 ASSETS ----------------- CURRENT ASSETS Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 37,430 Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,692 Receivables (less allowance for losses: 1994 - $6,637) . . . . . . . . . . . . . . . . . . . . 552,865 Inventory - at average cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319,385 Prepayments and other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,722 ----------------- Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,058,094 ----------------- INVESTMENTS AND OTHER Investments in joint ventures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108,330 Other investments, at cost or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,226 Nuclear decommissioning trust funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,390 Pre-funded pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000 ----------------- Total investments and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443,946 ----------------- PROPERTY, PLANT AND EQUIPMENT Electric plant in service (at original cost) Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,747,397 Transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,439,435 Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,965,393 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,020,192 ----------------- Electric plant in service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,172,417 Less accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . 4,810,004 ----------------- Electric plant in service, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,362,413 ----------------- Nuclear fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 757,983 Less accumulated amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415,560 ----------------- Nuclear fuel, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342,423 ----------------- Construction work in progress (including nuclear fuel in process: 1994 - $52,273) . . . . . . 558,730 ----------------- Total electric plant, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,263,566 Other property - at cost (less accumulated depreciation: 1994 - $24,137) . . . . . . . . . . . 302,383 ----------------- Total property, plant and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . 9,565,949 ----------------- DEFERRED DEBITS Purchased capacity costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 932,324 Debt expense, primarily refinancing costs, being amortized over the terms of related debt . . 186,306 Regulatory asset related to income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 489,292 Regulatory asset related to DOE assessment fee . . . . . . . . . . . . . . . . . . . . . . . . 102,467 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,850 ----------------- Total deferred debits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,794,239 ----------------- TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,862,228 ================= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 343,688 Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,100 Taxes accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,999 Interest accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,157 Current maturities of long-term debt and preferred stock . . . . . . . . . . . . . . . . . . . 93,759 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,539 ----------------- Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 768,242 ----------------- LONG-TERM DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,567,122 ----------------- ACCUMULATED DEFERRED INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,348,631 ----------------- DEFERRED CREDITS AND OTHER LIABILITIES Investment tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272,594 DOE assessment fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,467 Nuclear decommissioning costs externally funded . . . . . . . . . . . . . . . . . . . . . . . 172,390 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318,453 ----------------- Total deferred credits and other liabilities . . . . . . . . . . . . . . . . . . . . . . . 865,904 ----------------- PREFERRED AND PREFERENCE STOCK Without sinking fund requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 With sinking fund requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279,500 ----------------- Total preferred and preference stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 779,500 ----------------- COMMON STOCKHOLDERS' EQUITY Common stock, no par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,926,909 Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,605,920 ----------------- Total common stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,532,829 ----------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,862,228 =================
20 EXHIBIT A-2 Page 1 of 3 DUKE POWER COMPANY UNCONSOLIDATED STATEMENT OF INCOME (DOLLARS IN THOUSANDS) (UNAUDITED)
Year Ended December 31 1994 ----------- OPERATING REVENUES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,279,329 OPERATING EXPENSES Fuel used in electric generation . . . . . . . . . . . . . . . . . . . . . 705,019 Net interchange and purchased power . . . . . . . . . . . . . . . . . . . 553,802 Other operation and maintenance . . . . . . . . . . . . . . . . . . . . . 1,211,459 Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . 450,215 General taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239,714 ----------- Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . 3,160,209 ----------- OPERATING INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,119,120 ----------- INTEREST EXPENSE AND OTHER INCOME Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (264,512) Allowance for funds used during construction and other deferred returns. . 110,856 Earnings of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . 47,437 Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (327) ----------- Total interest expense and other income . . . . . . . . . . . . . . . . (106,546) ----------- INCOME BEFORE INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . 1,012,574 ----------- INCOME TAXES Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274,595 Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,354 Investment tax credit - amortization of credits . . . . . . . . . . . . . (11,251) ----------- Total income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 373,698 ----------- NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 638,876 Dividends on preferred and preference stock . . . . . . . . . . . . . . . 49,724 ----------- EARNINGS FOR COMMON STOCK . . . . . . . . . . . . . . . . . . . . . . . . . $ 589,152 =========== COMMON STOCK DATA Average common shares outstanding (thousands) . . . . . . . . . . . . . . 204,859 Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.88 Dividends per share . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.92
21 Exhibit A-2 Page 2 of 3 DUKE POWER COMPANY UNCONSOLIDATED STATEMENT OF RETAINED EARNINGS TWELVE MONTHS ENDED DECEMBER 31, 1994 (Dollars in Thousands)
Year Ended December 31 1994 ----------- BALANCE - December 31, 1993 . . . . . . . . . . . . . . $ 2,410,825 ADD - Net income . . . . . . . . . . . . . . . . . . . . 638,876 ----------- Total . . . . . . . . . . . . . . . . . . . 3,049,701 ----------- DEDUCT Dividends Common stock . . . . . . . . . . . . . . . . . . . . 393,370 Preferred and preference stock . . . . . . . . . . 49,724 Capital stock transactions, net . . . . . . . . . . . 687 ----------- Total deductions . . . . . . . . . . . . . . 443,781 ----------- BALANCE - December 31, 1994 . . . . . . . . . . . . . . $ 2,605,920 ===========
22 Exhibit A-2 Page 3 of 3 DUKE POWER COMPANY UNCONSOLIDATED BALANCE SHEET (Dollars in Thousands) (UNAUDITED)
December 31 1994 ASSETS ----------------- CURRENT ASSETS Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,608 Receivables (less allowance for losses: 1994 - $6,637) . . . . . . . . . . . . . . . . . . . . 553,010 Inventory - at average cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305,251 Prepayments and other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,713 ----------------- Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 886,582 ----------------- INVESTMENTS AND OTHER Investments in and advances to subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . 507,981 Other investments, at cost or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,449 Nuclear decommissioning trust funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,390 Pre-funded pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000 ----------------- Total investments and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 777,820 ----------------- PROPERTY, PLANT AND EQUIPMENT Electric plant in service (at original cost) Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,718,341 Transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,397,087 Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,892,196 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,011,761 ----------------- Electric plant in service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,019,385 Less accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . 4,736,595 ----------------- Electric plant in service, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,282,790 ----------------- Nuclear fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 757,983 Less accumulated amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415,560 ----------------- Nuclear fuel, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342,423 ----------------- Construction work in progress (including nuclear fuel in process: 1994 - $52,273) . . . . . . 541,087 ----------------- Total electric plant, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,166,300 ----------------- Other property - at cost (less accumulated depreciation: 1994 - $10,268) . . . . . . . . . . . 48,166 ----------------- Total property, plant and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . 9,214,466 ----------------- DEFERRED DEBITS Purchased capacity costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 932,324 Debt expense, primarily refinancing costs, being amortized over the terms of related debt . . 186,306 Regulatory asset related to income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 489,292 Regulatory asset related to DOE assessment fee . . . . . . . . . . . . . . . . . . . . . . . . 102,467 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,679 ----------------- Total deferred debits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,782,068 ----------------- TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,660,936 =================
23
LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 341,168 Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,000 Taxes accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,961 Interest accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,017 Current maturities of long-term debt and preferred stock . . . . . . . . . . . . . . . . . . . 83,426 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,443 ----------------- Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 736,015 ----------------- LONG-TERM DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,451,700 ----------------- ACCUMULATED DEFERRED INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,319,943 ----------------- DEFERRED CREDITS AND OTHER LIABILITIES Investment tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271,254 DOE assessment fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,467 Nuclear decommissioning costs externally funded . . . . . . . . . . . . . . . . . . . . . . . 172,390 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294,838 ----------------- Total deferred credits and other liabilities . . . . . . . . . . . . . . . . . . . . . . . 840,949 ----------------- PREFERRED AND PREFERENCE STOCK Without sinking fund requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 With sinking fund requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279,500 ----------------- Total preferred and preference stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 779,500 ----------------- COMMON STOCKHOLDERS' EQUITY Common stock, no par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,926,909 Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,605,920 ----------------- Total common stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,532,829 ----------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,660,936 =================
24 Exhibit A-3 Page 1 of 2 NANTAHALA POWER AND LIGHT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1994 (UNAUDITED) Operating Revenues Electric revenues-regular $ 54,652,622 Electric revenues-special contract 13,942,952 ------------- Total Revenues 68,595,574 ------------- Operating Expenses Purchased power-regular 24,888,271 Purchased power-special contract 10,230,178 Other operations 8,387,516 Maintenance 4,412,309 Depreciation 4,531,350 Taxes other than income 3,921,544 ------------- Total Electric Expenses 56,371,168 ------------- Operating Income 12,224,406 ------------- Interest Expense and Other Income Interest expense (3,147,729) AFUDC and other deferred returns 1,016,212 Other, net (68,105) ------------- Total Other Income (2,199,622) ------------- Income Before Income Taxes 10,024,784 Income Taxes 3,855,837 ------------- Net Income 6,168,947 Retained Earnings-Beginning of Period 44,552,629 ------------- Retained Earnings-End of Period $ 50,721,576 =============
25 Exhibit A-3 Page 2 of 2 NANTAHALA POWER AND LIGHT COMPANY BALANCE SHEET AS OF DECEMBER 31, 1994 (UNAUDITED) Current Assets Cash $ 136,733 Receivables, net-customers 5,205,881 Receivables-parent 1,025,848 Materials and supplies 2,833,231 Prepayments 173,282 Deferred income taxes 1,183,603 ------------- Total Current Assets 10,558,578 ------------- Property, Plant And Equipment Electric plant in service 154,766,597 Less: accumulated depreciation & amortization 74,150,536 ------------- Electric plant in service, net 80,616,061 Construction work in progress 22,233,337 ------------- Total Electric Plant, net 102,849,398 Other property 1,240,080 ------------- Total Property, Plant and Equipment, Net 104,089,478 ------------- Deferred Debits 12,419,114 ------------- Total Assets $ 127,067,170 ============= Current Liabilities Accounts payable-trade $ 1,717,190 Accounts payable-parent 4,119,720 Notes payable 13,400,000 Taxes accrued 312,816 Current portion of long-term debt 222,309 Customer deposits 433,273 Deferred purchased power costs 2,443,005 Other accrued liabilities 476,490 ------------- Total Current Liabilities 23,124,803 ------------- Long-Term Debt 33,430,669 ------------- Accumulated Deferred Income Tax 6,879,358 ------------- Deferred Credits And Other Liabilities Deferred investment tax credit 1,328,573 Other 8,962,783 ------------- Total Deferred Credits 10,291,356 ------------- Stockholder's Equity Common Stock 382,020 Additional Paid-In-Capital 2,237,388 Retained Earnings 50,721,576 ------------- Total Stockholder's Equity 53,340,984 ------------- Total Liabilities and Stockholder's Equity $ 127,067,170 =============
26 Exhibit A-4 Page 1 of 2 CHURCH STREET CAPITAL CORP. STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1994 (UNCONSOLIDATED) (UNAUDITED) Operating Revenues Interest Income $ 3,496,252 Income From Dividend Capture Program 4,762,368 Dividend Income 514,900 Amortization of (Premiums) and Discounts (Net) 3,489 Gain/(Loss) on Transactions 65,099 Other Income 10,380 --------------- Total Income 8,852,488 --------------- Operating Expenses Interest on Advances 2,072 Management Fees 2,125,143 Miscellaneous Expenses 341,368 --------------- Total Expenses 2,468,583 --------------- Operating Income 6,383,905 Equity Method-Earnings of Subsidiaries 34,486,125 --------------- Income Before Income Taxes 40,870,030 Provision for Income Taxes Current 6,098,717 Deferred (7,277,245) --------------- Net Income 42,048,558 Retained Earnings-Beginning of the Period 148,812,406 --------------- Retained Earnings-End of the Period $ 190,860,964 ===============
27 Exhibit A-4 Page 2 of 2 CHURCH STREET CAPITAL CORP. BALANCE SHEET AS OF DECEMBER 31, 1994 (UNCONSOLIDATED) (UNAUDITED) Current Assets Cash $ 235,335 Accounts Receivable 10,000 Muncipal Securities 118,492,250 Other Short Term Investments 14,200,000 Accrued Interests Receivable 346,035 Accrued Dividends Receivable 14,145 --------------- Total Current Assets 133,297,765 --------------- Investments And Other Investment in Subsidiaries 286,631,069 Investment in Dividend Capture Program 37,949,500 Accumulated Deferred Income Taxes 4,107,836 --------------- Total Investments And Other 328,688,405 --------------- Total Assets $ 461,986,170 =============== Current Liabilities Accounts Payable $ 1,508,376 Taxes accrued (70,829) --------------- Total Current Liabilities 1,437,547 --------------- Stockholder's Equity Common Stock 5,500 Additional Paid In Capital 269,682,659 Retained Earnings 190,860,964 Less: Treasury Stock 500 --------------- Total Stockholder's Equity 460,548,623 --------------- Total Liabilities and Stockholder's Equity $ 461,986,170 ===============
Note: Retained earnings are restricted in the amount of the cost of the treasury stock. 28 Exhibit A-5 Page 1 of 2 FOREIGN UTILITY COMPANIES WHOLLY-OWNED BY CLAIMANT CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1994 (UNAUDITED)
DUKE DUKE DUKE GUEMES TRANSENER HIDRONOR -------------------------------------------------------------- Operating Revenues Income from operations of facilities $ 1,472,000 $ 616,092 $ 648,938 Earnings of Powerco (503,368) Earnings of Citilec 579,108 Earnings of Hidroneuquen 2,652,994 Other income 15,300 35,650 12,000 --------------- --------------- ---------------- Total Revenues 983,932 1,230,850 3,313,932 --------------- --------------- ---------------- Operating Expenses Administrative and other 1,007,800 329,533 211,841 Depreciation and amortization 173,809 140,395 139,481 Other taxes 220,386 168,591 199,579 --------------- --------------- --------------- Total Expenses 1,401,995 638,519 550,901 --------------- --------------- --------------- Operating Income (418,063) 592,331 2,763,031 Other Income, Net (40,600) 1,305,512 288,856 --------------- --------------- --------------- Income Before Income Taxes (458,663) 1,897,843 3,051,887 Provision for Income Taxes Current 10,464 964,885 139,612 Deferred (422,653) (80,166) 928,548 --------------- --------------- --------------- Net Income (46,474) 1,013,124 1,983,727 Retained Earnings - Beginning of the Period (1,049,078) 859,666 - Dividends Paid to DEG - (1,723,902) (235,000) --------------- --------------- --------------- Retained Earnings - End of the Period $ (1,095,552) $ 148,888 $ 1,748,727 =============== =============== ===============
NOTE: Duke Irian Jaya began operations on December 30, 1994. Revenues and expenses were not reported for 1994. 29 Exhibit A-5 Page 2 of 2 FOREIGN UTILITY COMPANIES WHOLLY-OWNED BY CLAIMANT CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 1994 (UNAUDITED)
DUKE DUKE DUKE IRIAN DUKE GUEMES TRANSENER HIDRONOR JAYA ----------------------------------------------------------------------- Current Assets Cash $ 22,158 $ 787,867 $ 404,468 Accounts receivable-trade 1,721 571 Accounts receivable-affiliate 877,960 100,744 97,588 Other current assets 225,000 50,000 ------------ ------------ ------------ ------------- Total Current Assets 1,126,839 889,182 552,056 ------------ ------------ ------------ ------------- Investments And Other Investment in Powerco S.A. 18,247,005 Investment in Citilec S.A. 18,483,010 Investment in Hidroneuquen S.A. 48,649,407 Investment in Puncakjaya Power 7,500,179 Other deferred costs 521,428 526,482 790,391 934,491 ------------ ------------ ------------ ------------- Total Investments And Other 18,768,433 19,009,492 49,439,798 8,434,670 ------------ ------------ ------------ ------------- Total Assets $ 19,895,272 $ 19,898,674 $ 49,991,854 $ 8,434,670 ============ ============ ============ ============= Current Liabilities Accounts payable-trade $ 1,050 $ 1,050 $ 1,000 Accounts payable-affiliate 704,164 981,870 685,978 535,060 Taxes accrued (3,688) (274,205) (42,559) Other 72,000 - - 399,431 ------------ ------------ ------------ ------------- Total Current Liabilities 773,526 708,715 644,419 934,491 ------------ ------------ ------------ ------------- Deferred Credits And Other Liabilities Accumulated Deferred Income Taxes (522,792) (194,385) 928,548 Minority Interest in Consolidated Joint Venture 19,090 - - - ------------ ------------ ------------ ------------- Total Deferred Credits And Other Liabilities (503,702) (194,385) 928,548 - ------------ ------------ ------------ ------------- Stockholder's Equity Common Stock- no par 1,000 1,000 1,000 Additional Paid-In-Capital 20,720,000 19,234,456 46,669,160 7,500,179 Retained Earnings (1,095,552) 148,888 1,748,727 - ------------ ------------ ------------ ------------- Total Stockholder's Equity 19,625,448 19,384,344 48,418,887 7,500,179 ------------ ------------ ------------ ------------- Total Liabilities and Stockholder's Equity $ 19,895,272 $ 19,898,674 $ 49,991,854 $ 8,434,670 ============ ============ ============ =============
30 EXHIBIT A-6 PAGE 1 OF 1 DUKE POWER COMPANY Capitalization and Earnings of Foreign Utility Companies As Of And For The Year Ended December 31, 1994 US $
CAPITALIZATION: Amount ------ Guemes Shareholders' Equity $ 53,083,522 Long-term Debt $ 65,683,000 -------------- Total Capitalization $ 118,766,522 ============== Transener Shareholders' Equity $ 315,685,768 Long-term Debt $ 671,064 -------------- Total Capitalization $ 316,356,832 ============== Piedra del Aguila Shareholders' Equity $ 468,703,438 Long-term Debt $ 400,748,243 -------------- Total Capitalization $ 869,451,681 ============== Puncakjaya Power Shareholders' Equity $ 12,500,000 Long-term Debt $ 75,000,000 Subordinated Debt $ 12,500,000 -------------- Total Capitalization $ 100,000,000 ============== EARNINGS: Guemes $ 316,240 ============== Transener $ 18,372,677 ============== Piedra del Aguila $ 27,891,906 ============== Puncakjaya Power $ - (1) ==============
(1) Puncakjaya Power began operations on December 30, 1994. Revenues and expenses were not reported for 1994. 31 EXHIBIT B FINANCIAL DATA SCHEDULE (DOLLARS IN THOUSANDS) Total Assets $ 12,862,228 Total Operating Revenues $ 4,488,913 Net Income $ 638,876
32 EXHIBIT C An organizational chart showing the relationship of each EWG or foreign utility company to associate companies in the holding-company system. EXHIBIT C-1 Chart showing relationship of Guemes to associate companies in the holding-company system. EXHIBIT C-2 Chart showing relationship of Transener to associate companies in the holding-company system. EXHIBIT C-3 Chart showing relationship of Piedra del Aguila to associate companies in the holding-company system. EXHIBIT C-4 Chart showing relationship of PJP to associate companies in the holding-company system.
33 EXHIBIT C-1 GUEMES Claimant | | | | Church Street | | | | DEG | Duke Guemes | Operating Corp. | | | ------------------ Duke Guemes | ------------------ | | 51% | | 25% | Powerco | Services S.A. | | Powerco S.A. | | 60% | | | Guemes Ownership is 100% unless otherwise specified. 34 EXHIBIT C-2 TRANSENER Claimant | | | | Church Street | | | | DEG | | | | Duke Transener------------ Duke Transener | Operating Corp. | | 15% | | Citelec | | | | 65% | | Transener Ownership is 100% unless otherwise specified 35 EXHIBIT C-3 PIEDRA DEL AGUILA Claimant | | | | Church Street | | | | DEG | | | | Duke Hidronor------------ Duke Hidronor | Operating Corp. 16.54% | | | Hidroneuquen S.A. | | | 59% | | | Piedra del Aguila Ownership is 100% unless otherwise specified 36 EXHIBIT C-4 PJP Claimant | | | | Duke Coal Church Street------------Project Services | Group, Inc. | | | | | | | | DEG | | Duke Coal Project | Services Pacific, Inc. | | Duke Irian Jaya | 40% | | | | | | 30%| NPS | | PJP Ownership is 100% unless otherwise specified. 37 EXHIBIT D Map showing principal generating plants, transmission lines, and distribution facilities of Claimant and NP&L. Reference is made to Exhibit C of the Claimant's Form U-3A-2, File Number 69-351, for the year ended December 31, 1993, filed under cover of Form SE on February 25, 1994. Such exhibit is hereby incorporated herein by reference. -----END PRIVACY-ENHANCED MESSAGE-----