-----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, IV2aZZyWk9nJk5lh1lT9P8pXhKaWCyQ0uwjBgmhufPvwgWHXZ5GKn3Xt+zd4YDDG 60wLaqjV/i0eH0Rf3wKZOw== 0000898430-00-000589.txt : 20000228 0000898430-00-000589.hdr.sgml : 20000228 ACCESSION NUMBER: 0000898430-00-000589 CONFORMED SUBMISSION TYPE: U-3A-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991231 FILED AS OF DATE: 20000225 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HAWAIIAN ELECTRIC INDUSTRIES INC CENTRAL INDEX KEY: 0000354707 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 990208097 STATE OF INCORPORATION: HI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U-3A-2 SEC ACT: SEC FILE NUMBER: 069-00284 FILM NUMBER: 553712 BUSINESS ADDRESS: STREET 1: 900 RICHARDS ST CITY: HONOLULU STATE: HI ZIP: 96813 BUSINESS PHONE: 8085435662 MAIL ADDRESS: STREET 1: 900 RICHARDS STREET CITY: HONOLULU STATE: HI ZIP: 96813 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HAWAIIAN ELECTRIC CO INC CENTRAL INDEX KEY: 0000046207 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 990040500 STATE OF INCORPORATION: HI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U-3A-2 SEC ACT: SEC FILE NUMBER: 069-00284-07 FILM NUMBER: 553713 BUSINESS ADDRESS: STREET 1: 900 RICHARDS ST CITY: HONOLULU STATE: HI ZIP: 96813 BUSINESS PHONE: 8085437771 MAIL ADDRESS: STREET 1: 900 RICHARDS STREET CITY: HONOLULU STATE: HI ZIP: 96813 FORMER COMPANY: FORMER CONFORMED NAME: HAWAIIAN ELECTRIC CO LTD DATE OF NAME CHANGE: 19670212 U-3A-2 1 FORM U-3A-2 Page 1 of 17 File No. 69-284 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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 HAWAIIAN ELECTRIC INDUSTRIES, INC. and HAWAIIAN ELECTRIC COMPANY, INC. each hereby files with the Securities and Exchange Commission (SEC), pursuant to Rule 2, its statement claiming exemption as a holding company from the provisions of the Public Utility Holding Company Act of 1935 (PUHCA), and submits the following information: 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. Hawaiian Electric Industries, Inc. (HEI) was incorporated under the laws of the State of Hawaii on July 20, 1981, for the purpose of becoming the holding company of Hawaiian Electric Company, Inc. (HECO) and its subsidiaries. Its principal executive office is located at 900 Richards Street, Honolulu, Hawaii 96813. The restructuring became effective on July 1, 1983. HEI is a nonutility holding company which currently conducts no business and owns no material assets other than the common stock of HECO, HEI Investments, Inc., Malama Pacific Corp. (MPC), The Old Oahu Tug Service, Inc., HEI Diversified, Inc. (HEIDI), HEI Properties, Inc., Pacific Energy Conservation Services, Inc. (PECS), HEI Power Corp. (HEIPC), HEI District Cooling, Inc. (HEIDC), Page 2 of 17 ProVision Technologies, Inc. (ProVision), Hycap Management, Inc. (Hycap), Hawaiian Electric Industries Capital Trust I (HEI Trust I), Hawaiian Electric Industries Capital Trust II and Hawaiian Electric Industries Capital Trust III. HECO is the parent company of Hawaii Electric Light Company, Inc. (HELCO), Maui Electric Company, Limited (MECO), HECO Capital Trust I (HECO Trust I) and HECO Capital Trust II (HECO Trust II). MPC is the parent company of Malama Property Investment Corp. (MPIC), Malama Waterfront Corp. (MWC), Malama Development Corp. (MDC), TMG Service Corp. (TMG) and Malama Mohala Corp. (MMoC). On September 14, 1998, the Board of Directors of HEI adopted a plan to exit the residential real estate development business (engaged in by Malama Pacific Corp. and its subsidiaries). Accordingly, MPC management commenced a program to sell all of MPC's real estate assets and investments and HEI reported MPC as a discontinued operation in the Company's consolidated statements of income in the third quarter of 1998. As real estate assets and investments have been sold or transferred, the entities which held them and entities which were no longer active, have been dissolved. As of December 31, 1999, the following entities were dissolved as contemplated by the plan to exit the residential real estate development business: Malama Hoaloha Corp., Malama Realty Corp., Malama Elua Corp. and Baldwin*Malama, a limited partnership in which MDC owned a 50% and was the sole general partner. In November 1999, Hawaiian Tug & Barge Corp. (HTB) sold substantially all of its operating assets and the stock of Young Brothers, Limited (YB). On November 10, 1999, HTB changed its name to The Old Oahu Tug Service, Inc. (TOOTS). HEIDI is the parent company of American Savings Bank, F.S.B. (ASB), which is the parent company of American Savings Investment Services Corp. (ASISC), AdCommunications, Inc., American Savings Mortgage Co., Inc., ASB Service Corporation and ASB Realty Corporation. HEIDI changed the name of its subsidiary, HEIDI Real Estate Corp. to HEI Properties, Inc. (HEIPI) in September 1999 and then transferred ownership of HEIPI to HEI. Page 3 of 17 HEIPC is the parent company of HEI Power Corp. Guam (a foreign utility company, see items 4a and 4b), HEI Power Corp. Saipan and HEI Power Corp. International, which is the parent company of HEIPC Philippine Development, LLC, HEIPC Philippine Ventures, HEIPC Lake Mainit Power, LLC, HEIPC Cambodia Ventures, HEI Power Corp. Philippines (formerly HEIPC Phnom Penh Power (General), LLC), HEIPC Phnom Penh Power (Limited), LLC, HEIPC Bulacan I, LLC, HEIPC Bulacan II, LLC, HEI Power Corp. China (parent of Dafeng Sanlian Cogeneration Co., Ltd.), HEI Power Corp. China II, the 100% owner of United Power Pacific Company Limited (UPP), which in turn is the 75% owner of Baotou Tianjiao Power Co., Ltd. (a foreign utility company, see items 4a and 4b), HEI Power Corp. China III and HEI Power Corp. China IV. HECO was incorporated under the laws of the Kingdom of Hawaii on October 13, 1891, under the name of The Hawaiian Electric Company, Limited. Its name was changed to Hawaiian Electric Company, Inc., on March 16, 1964. Its principal executive office is located at 900 Richards Street, Honolulu, Hawaii 96813. It is a regulated operating electric public utility engaged in the production, purchase, transmission, distribution and sale of electricity on the island of Oahu, State of Hawaii. HELCO was incorporated under the laws of the Republic of Hawaii on December 5, 1894. Its principal executive office is located at 1200 Kilauea Avenue, Hilo, Hawaii 96720. It is a regulated operating electric public utility engaged in the production, purchase, transmission, distribution and sale of electricity on the island of Hawaii, State of Hawaii. MECO was incorporated under the laws of the Territory of Hawaii on April 28, 1921, and purchased the franchise and certain assets of Island Electric Company, Limited, which had been organized in 1911. Its principal executive office is located at 210 Kamehameha Avenue, Kahului, Maui, Hawaii 96732. It is a regulated operating electric public utility engaged in the production, purchase, transmission, distribution and sale of electricity on the islands of Maui, Lanai and Molokai, all located in the State of Hawaii. HECO Trust I was formed under the laws of the State of Delaware on December 31, 1996. The Bank of New York is the corporate trustee of HECO Trust I and its principal administrative offices are located at 101 Barclay Street 21st floor, New York, New York 10286. HECO Trust I is a statutory business trust formed for the exclusive purposes of (i) issuing and selling its common Page 4 of 17 securities to HECO and its 8.05% Cumulative Quarterly Income Preferred Securities, Series 1997 (QUIPS) to the public in an underwritten public offering in March 1997, (ii) using the proceeds from the sale of QUIPS and the common securities to acquire 8.05% Junior Subordinated Deferrable Interest Debentures, Series 1997 issued by HECO and its subsidiaries, MECO and HELCO, (iii) maintaining the status of HECO Trust I as a grantor trust for United States federal income tax purposes and (iv) engaging in only those other activities necessary, convenient or incidental thereto. HECO Trust II was formed under the laws of the State of Delaware on October 15, 1998. The Bank of New York is the corporate trustee of HECO Trust II and its principal administrative offices are located at 101 Barclay Street 21st floor, New York, New York 10286. HECO Trust II is a statutory business trust formed for the exclusive purposes of (i) issuing and selling its common securities to HECO and its 7.30% Cumulative Quarterly Income Preferred Securities, Series 1998 (QUIPS) to the public in an underwritten public offering in December 1998, (ii) using the proceeds from the sale of QUIPS and the common securities to acquire 7.30% Junior Subordinated Deferrable Interest Debentures, Series 1998 issued by HECO and its subsidiaries, MECO and HELCO, (iii) maintaining the status of HECO Trust II as a grantor trust for United States federal income tax purposes and (iv) engaging in only those other activities necessary, convenient or incidental thereto. On January 26, 2000, HEI Investment Corp. (HEIIC) changed its name to HEI Investments, Inc. (HEIII). HEIIC was incorporated under the laws of the State of Hawaii on May 25, 1984. HEIII's principal executive office is located at 900 Richards Street, Honolulu, Hawaii 96813. It is a nonutility company organized primarily to invest in corporate securities and other long-term investments. HEIIC currently holds investments primarily in leveraged leases. On December 30, 1985, HEIIC (now known as HEIII) acquired, as part of its investment portfolio, a 15.1899% undivided interest in Plant Robert W. Scherer Unit No. 2, an 818 -megawatt (MW) coal-fired generating unit located in Monroe County, Georgia in a sale and leaseback transaction (the Transaction) with Oglethorpe Power Corporation (An Electric Membership Generation and Transmission Corporation). The Transaction is described in the Form U-7D filed by the Wilmington Trust Company and William J. Wade, owner trustees on Page 5 of 17 behalf of HEIIC on December 30, 1985. The Transaction is also the subject of letters (dated December 16 and 24, 1985), from Mudge Rose Guthrie Alexander and Ferdon to the Commission, to which a reply was sent by Mr. Lewis B. Reich, Special Counsel (Reference No. 85-1216E- OPUR). Two amendments to the Form U-7D were filed on October 20, 1986 and on January 16, 1998 for the refinancings of the nonrecourse debt secured by this lease interest. These refinancings had no impact on HEIIC's investment return because, under the lease agreement, the lessee is entitled to the benefit of any refinancing. The undersigned takes the position that the passive nature of the ownership by HEIIC which results from its participation in the Transaction is exactly comparable to the form of ownership which would qualify under Rule 7(d)(1) under PUHCA. Accordingly, although the information contained in the aforesaid Amendment No. 1 was submitted, the undersigned and HEIIC reserve all rights to claim (and do hereby claim) that by virtue of HEIIC's participation in the Transaction, HEIIC has not acquired "ownership" of facilities used for the generation, transmission or distribution of electric energy for sale so as to result in HEIIC's becoming an "electric utility company" as defined in Section 2(a)(3) of the Act. MPC was incorporated on December 5, 1985; MPIC and MWC were incorporated on December 30, 1988; MDC was incorporated on December 15, 1989; and TMG and MMoC were incorporated on August 21, 1990, all under the laws of the State of Hawaii, with principal executive offices located at 915 Fort Street Mall, Honolulu, Hawaii 96813. MPC and its subsidiaries are nonutility companies which were organized to invest in, develop and sell real estate. Since September 14, 1998, MPC and its subsidiaries have been accounted for as discontinued operations in HEI's consolidated financial statements. Dillingham Tug & Barge Corporation was incorporated under the laws of the State of Hawaii on March 16, 1972, and changed its name to Hawaiian Tug & Barge Corp. on October 1, 1986 when HEI acquired HTB from Dillingham Corporation. On November 10, 1999, the sale of substantially all of the operating assets of HTB was closed and HTB's name was changed to The Old Oahu Tug Service, Inc. Its principal executive office is located at 900 Richards Street, Honolulu, Hawaii 96813. It was a nonutility company organized to provide charter towing and harbor-assist services primarily within the State of Hawaii. Page 6 of 17 TOOTS no longer provides charter towing and harbor-assist towing services and is currently conducting shut-down activities. It is anticipated that TOOTS will be dissolved in 2000. YB, also acquired on October 1, 1986, was incorporated under the laws of the State of Hawaii on January 7, 1960. On November 10, 1999, HTB sold all of the stock of YB. YB's principal executive office was located at 1331 N. Nimitz Highway, Honolulu, Hawaii 96817. It is a regulated company organized to transport cargo within the State of Hawaii and operated as the major authorized common carrier under the Hawaii Water Carrier Act. HEIDI was incorporated under the laws of the State of Hawaii on January 6, 1988. Its principal executive office is located at 900 Richards Street, Honolulu, Hawaii 96813. It is a nonutility holding company which currently conducts no business and owns no material assets other than the common stock of ASB. ASB was chartered by the Federal Home Loan Bank as a federal savings bank on January 23, 1987, and is qualified to do business in the State of Hawaii. Its wholly owned subsidiaries were incorporated under the laws of the State of Hawaii. The principal executive offices of ASB and its subsidiaries are located at 915 Fort Street Mall, Honolulu, Hawaii 96813. ASB and its subsidiaries are nonutility companies providing financial and related services. HEI acquired ASB on May 26, 1988. ASB's business consists primarily of attracting deposits from the general public and using such deposits, together with borrowings and other funds, to (1) make residential and other real estate-related loans which enable borrowers to purchase, refinance, construct or improve real estate, (2) invest in loans secured by real estate and in mortgage-backed and other securities, and (3) make various types of commercial and consumer loans. ASB Service Corporation, which holds real estate for use by ASB employees, was incorporated on October 23, 1990; American Savings Mortgage Co., Inc. is a mortgage brokerage company which was incorporated on October 23, 1990; AdCommunications, Inc. is an advertising agency which was incorporated on October 23, 1990; ASISC which was incorporated on October 11, 1990, markets insurance products and ASB Realty Corporation which was incorporated on March 27, 1998, owns and manages real estate assets. HEIPI was incorporated under the laws of the State of Hawaii on February 9, 1998, as HEIDI Real Estate Corp. and its name was changed to HEIPI Page 7 of 17 on September 23, 1999. Ownership of HEIPI was transferred to HEI by HEIDI on November 18, 1999. Its principal executive office is located at 900 Richards Street, Honolulu, Hawaii 96813. HEIPI was formed as a nonutility company to hold real estate and related assets. PECS was incorporated under the laws of the State of Hawaii on August 12, 1994. Its principal executive office is located at 900 Richards Street, Honolulu, Hawaii 96813. PECS was formed as a nonutility service company to promote energy conservation in Hawaii and the Pacific Basin, but had no operations until December 1996. PECS currently is a contract services company providing limited services to an affiliate. HEIPC was incorporated under the laws of the State of Hawaii on March 24, 1995. Its principal executive office is located at 220 South King Street, Honolulu, Hawaii 96813. It is a nonutility company formed to pursue independent power and integrated energy services projects in Asia and the Pacific. Those direct and indirect subsidiaries of HEIPC which are not foreign utility companies have been formed generally for the purposes of directly or indirectly acquiring and maintaining an interest in one or more foreign utility companies or developing or operating utility facilities in foreign countries. The following are active, direct and indirect subsidiaries which have their principal executive offices at Ugland House, P.O. Box 309, George Town, Grand Cayman, Cayman Islands, British West Indies (Cayman Location) and were incorporated under the laws of the Cayman Islands (incorporation dates are noted in parentheses): HEI Power Corp. International (International) (April 10, 1996); HEIPC Philippine Development, LLC (Philippine Develop) (September 9, 1996); Lake Mainit Power, LLC (May 21, 1996); and HEI Power Corp. Philippines (April 24, 1996). The following are inactive subsidiaries at the Cayman Location which were incorporated under the laws of the Cayman Islands (incorporation dates are noted in parentheses): HEIPC Philippine Ventures (April 23, 1996); HEIPC Cambodia Ventures (April 23, 1996); HEIPC Phnom Penh Power (Limited), LLC (April 24, 1996); HEIPC Bulacan I, LLC (May 29, 1997); and HEIPC Bulacan II, LLC (May 29, 1997). The following are active, indirect subsidiaries which have their principal executive offices at Les Jamalacs Building, Vieux Conseil St., Port- Louis, Mauritius (Mauritius Location) and were incorporated under the laws of Mauritius (incorporation dates are noted Page 8 of 17 in parentheses): HEI Power Corp. China (December 10, 1997); HEI Power Corp. China II (China II) (June 10, 1998); and UPP (June 29, 1998). The following are inactive, indirect subsidiaries at the Mauritius Location which were incorporated under the laws of Mauritius (incorporation dates are noted in parentheses): HEI Power Corp. China III (June 24, 1998) and HEI Power Corp. China IV (June 24, 1998). HEI Power Corp. Saipan (April 1, 1998) is an inactive, direct subsidiary incorporated under the laws of the Commonwealth of the Northern Mariana Islands and having its principal executive offices at P.O. Box 410, Saipan, MP 96950. Dafeng Sanlian Cogeneration Co., Ltd. (August 19, 1998; 76.4% ownership percentage) is an active, indirect subsidiary registered under the laws of the People's Republic of China (China) and having its principal executive offices at Dafeng Economic Development Zone, Dafeng City, Jiangsu Province, China; however, it does not own or operate any facilities that are used for the generation, transmission, or distribution of electric energy or the distribution of natural or manufactured gas and does not have any interest in any foreign utility company. HEIPC Philippines Holding Co., Inc. is an active, indirect subsidiary incorporated on February 8, 2000 under the laws of the Republic of the Philippines. Its principal executive office is located at Metro Manila, Philippines. On February 10, 2000, HEIPC Philippines Holding Co., Inc. signed an agreement to acquire a 50% interest in El Paso Philippines Holding Company, Inc. (EPHC), which is an indirect subsidiary of El Paso Energy Corporation, for $87 million plus up to an additional $6 million of contingent payments. The acquisition is subject to several conditions precedent which must be met or waived before closing. EPHC owns approximately 91.7% of the common shares of East Asia Power Resources Corporation, a Philippines holding company primarily engaged in the electric generation business in Manila and Cebu through its direct and indirect subsidiaries, using land and barge-based generating facilities, fired by bunker fuel oil, with total installed capacity of approximately 390 MW. Other direct or indirect subsidiaries or investments of HEIPC are listed under item 4a. HEIDC was incorporated under the laws of the State of Hawaii on August 17, 1998. Its principal executive office is located at 900 Richards Street, Honolulu, Hawaii 96813. HEIDC was formed to develop, build, own, operate and/or maintain, either directly or indirectly, central chilled water, cooling system Page 9 of 17 facilities, and other energy related products and services for commercial and residential buildings. ProVision was incorporated under the laws of the State of Hawaii on October 13, 1998. Its principal executive office is located at 900 Richards Street, Honolulu, Hawaii 96813. ProVision was formed to sell, install, operate and maintain on-site power generation equipment and auxiliary appliances in Hawaii and the Pacific Rim. Hycap was incorporated under the laws of the State of Delaware on January 22, 1997. Its registered agent's office is located at PL&F Service, One Rodney Square, 10th Floor, Tenth and King Streets, Wilmington, Delaware 19801. Hycap is a nonutility company formed in connection with a trust preferred securities offering to be the sole general partner of HEI Preferred Funding, LP (the Partnership). The Partnership is a limited partnership formed under the Delaware Revised Uniform Limited Partnership Act, as amended, pursuant to an agreement of limited partnership and the filing of a certificate of limited partnership with the Secretary of State on December 23, 1996, which was subsequently amended by an amended and restated agreement of limited partnership dated as of February 1, 1997. Its principal executive office is located at 300 Delaware Avenue, Suite 1704, Wilmington, Delaware 19801. The Partnership is managed by the general partner and exists for the exclusive purposes of (a) purchasing certain eligible debt instruments of HEI and the wholly owned subsidiaries of HEI (collectively, the Affiliate Investment Instruments) and certain U.S. government obligations and commercial paper of unaffiliated entities (Eligible Debt Securities) with the proceeds from (i) the sale of its Partnership Preferred Securities, representing limited partner interests in the Partnership, to HEI Trust I and (ii) a capital contribution by HEI in exchange for the general partner interest in the Partnership, (b) receiving interest and other payments on the Affiliate Investment Instruments and the Eligible Debt Securities held by the Partnership from time to time, (c) making distributions on the Partnership Preferred Securities and distributions on the general partner interest in the Partnership if, as and when declared by the general partner in its sole discretion, (d) subject to the restrictions and conditions contained in the Agreement of Limited Partnership, making additional investments in Affiliate Investment Page 10 of 17 Instruments and Eligible Debt Securities and disposing of any such investments and (e) except as otherwise limited in the Agreement of Limited Partnership, entering into, making and performing all contracts and other undertakings, and engaging in those activities and transactions as the general partner deems necessary or advisable for carrying out the purposes of the Partnership. HEI Trust I, Hawaiian Electric Industries Capital Trust II and Hawaiian Electric Industries Capital Trust III were formed under the laws of the State of Delaware on December 19, 1996. The Bank of New York is the corporate trustee of each of these trusts and its principal administrative office is located at 101 Barclay Street, 21st Floor, New York, NY 10286. HEI Trust I is a statutory business trust formed for the exclusive purposes of (i) issuing in February of 1997 its 8.36% Trust Originated Preferred Securities and its 8.36% Common Securities, (ii) purchasing the 8.36% Partnership Preferred Securities, representing the limited partner interests in HEI Preferred Funding, LP, with the proceeds from the sale of Trust Originated Preferred Securities and Common Securities, and (iii) engaging in only those other activities necessary or incidental thereto. Hawaiian Electric Industries Capital Trust II and Hawaiian Electric Industries Capital Trust III have at all times been inactive. 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 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. HEI is a nonutility holding company which currently conducts no business and owns no material operating assets other than as listed under item 1. Currently, the consolidated revenues of HEI are derived primarily from electric service, savings bank operations, energy conversion fees and investments. HECO owns and operates three electric generating plants located on the island of Oahu, with an aggregate generating capability of 1,263 megawatts as of December 31, 1999. HECO's power purchase agreements (PPAs) with Kalaeloa Page 11 of 17 Partners, L.P., AES Barbers Point, Inc. and Honolulu Resource Recovery Venture each provide for an additional 180 MW, 180 MW and 46 MW, respectively, of firm generating capability as of December 31, 1999. HELCO owns and operates electric generating equipment with an aggregate generating capability of approximately 153 megawatts as of December 31, 1999. Its five power plants are located on the island of Hawaii. As of December 31, 1999, HELCO had PPAs with Puna Geothermal Ventures and Hilo Coast Power Company providing for an additional 30 MW and 22 MW, respectively, of firm generating capability. HELCO also has a PPA with Hamakua Energy Partners, L.P. to provide for an additional 60 MW of firm generating capability. If Hamakua Partners meets the deadlines in the PPA, its first phase of 22 MW will be in- service by August 2000 and the remainder of its 60 MW facility will be in-service by December 2000. HELCO currently owns and operates a windfarm at Waikoloa which consists of 62 operating wind machines with a total operating capacity of 1.2 MW as of December 31, 1999. MECO owns and operates electric generating equipment located on the islands of Maui, Lanai and Molokai, with an aggregate generating capability of approximately 235 megawatts as of December 31, 1999. A PPA between MECO and a sugar company provided for an additional 16 MW of firm generating capability as of December 31, 1999. HECO, HELCO and MECO own land, buildings, overhead transmission lines, overhead distribution lines, underground cables, fully owned or jointly owned poles, steel or aluminum high voltage transmission towers, transmission and distribution substations, fuel oil storage facilities and other property and equipment used in the business of generating, purchasing, transmitting, distributing and selling electric energy. 3. The following information for the last calendar year with respect to 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. Page 12 of 17 In 1999, HEI sold no kilowatthours of electric energy, HECO sold at retail 6,997,935,551 kwh. of electric energy, HELCO sold at retail 922,351,519 kwh. of electric energy, and MECO sold at retail 1,064,739,472 kwh. of electric energy. (b) Number of kwh. of electric energy and Mcf. of natural or manufactured gas distributed at retail outside the State in which each such company is organized. None. (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. None. (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. None. 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: (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. HEI Power Corp. Guam (HPG), a subsidiary of HEIPC, has principal executive offices at Tanguisson power plant, NCS Dededo, Guam 96921 and 220 South King Street, Honolulu, Hawaii 96813. In September 1996, HPG entered into an energy conversion agreement with Guam Power Authority (GPA), pursuant to which HPG rehabilitated, and for a period of approximately 20 years will be operating and maintaining, two oil- fired 25-MW (net) steam turbine generators at Tanguisson, Guam. On or about September 3, 1998, HEI acquired an indirect 80% interest in UPP (through HEI's indirect subsidiary China II) and an effective 60% interest in Baotou Tianjiao Power Co., Ltd. (Tianjiao) which has its principal executive Page 13 of 17 offices at Suite 906, Baotou Youdian Building, Kun District, Baotou 014010, Inner Mongolia, China and is a Sino-foreign coorperative joint venture established under the laws of the People's Republic of China. On December 30, 1999 China II acquired the remaining interest in UPP. Tianjiao will construct, operate, and maintain a 200-megawatt (net) coal-fired power plant in Baotou, Inner Mongolia, China, over a 22 year period, which includes construction, beginning September 18, 1996. The power plant is being built "inside the fence" for Baotou Iron & Steel (Group) Co., Ltd. (BaoSteel), which will be the sole purchaser of the power. At the end of the term, the plant will be transferred by Tianjiao to BaoSteel (which owns a 25% interest in Tianjiao). On December 4, 1998, HEI acquired an indirect interest in Cagayan Electric Power & Light Co., Inc. (CEPALCO) which has its principal executive offices at 8/F Strata 100 Building, Emerald Avenue, Ortigas Complex, Pasig City, Metro Manila 1600, Philippines and is incorporated under the laws of the Philippines. CEPALCO is a privately owned regulated local distribution company on the island of Mindanao. It operates and maintains three substations, with a total capacity of 75 MVA, and 47 kilometers of transmission lines (rates at 69 KV and 138 KV) and 1,000 kilometers of distribution lines. It also has an interest in Mindanao Energy Systems, Inc., a Philippine power generation company that owns and operates an 18.9 MW Bunker-C fed diesel power generating facility. (b) Name of each system company that holds an interest in such EWG or foreign utility company and description of the interest held. HEI owns all of the issued and outstanding shares of common stock of HEIPC. HEIPC owns all of the issued and outstanding shares of common stock of HPG and International. International owns all of the issued and outstanding shares of common stock of China II. China II owns 100% of the issued and outstanding shares of UPP. UPP owns 75% of Tianjiao. International owns all of the issued and outstanding shares of common stock of Philippine Develop. Philippine Develop owns 5% common stock and convertible cumulative nonparticipating preferred shares of CEPALCO, which are convertible within two years after the acquisition and, when fully converted, are Page 14 of 17 intended to constitute 15% of the issued and outstanding capital stock of CEPALCO. (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. As of December 31, 1999, HEI had invested, through HEIPC (in addition to retained earnings), $2,250,000 in HPG. Also as of December 31, 1999, there were short-term intercompany borrowings by HPG from HEIPC of $11,860,000 and no other borrowings. HEIPC's intercompany loans to HPG were funded by investments in and loans to HEIPC by HEI. As of December 31, 1999, HEI has not directly or indirectly guaranteed the securities of HPG and there was no debt or other financial obligation relating to HPG for which there was recourse against HEI or any other system company (other than HPG). As of December 31, 1999, HEI had invested, through HEIPC and its subsidiaries, $23.1 million in connection with the Tianjiao project in China, of which $8.8 million is reflected in equity in Tianjiao. As of December 31, 1999, there were no short-term intercompany borrowings by Tianjiao from HEI, HEIPC or any HEIPC subsidiary. As of December 31, 1999, HEI has not directly or indirectly guaranteed the securities of Tianjiao and there was no debt or other financial obligation relating to Tianjiao for which there was recourse against HEI or any other system company (other than Tianjiao). As of December 31, 1999, HEI had invested, through HEIPC and its subsidiaries, $9.7 million in CEPALCO preferred and common stock. As of December 31, 1999, there were no short-term intercompany borrowings by CEPALCO from HEI, HEIPC or any HEIPC subsidiary. As of December 31, 1999, HEI has not directly or indirectly guaranteed the securities of CEPALCO and there was no debt or other financial obligation relating to CEPALCO for which there was recourse against HEI or any other system company (other than CEPALCO). Page 15 of 17 (d) Capitalization and earnings of the EWG or foreign utility company during the reporting period. As of December 31, 1999, HPG's capitalization (i.e., common stock equity) was $2,904,000. For the year ended December 31, 1999, HPG's net loss was $431,000. As of December 31, 1999, Tianjiao's capitalization (i.e., common stock equity) was $9,644,000. For the year ended December 31, 1999 Tianjiao's net loss was $194,000. As of December 31, 1999, the investment in CEPALCO preferred and common stock was carried at $9.7 million. (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). HPG maintains agreements with certain HEI affiliates for operation, maintenance and administrative and general services of the power plants and electrical systems. For the year ended December 31, 1999, HPG payments for services from HEI, HECO and HEIPC totaled $176,000. Tianjiao and CEPALCO have no service, sales or construction contracts with any HEI affiliate. However, certain HEI affiliates provide general management and other services to Tianjiao in connection with UPP's obligations under the cooperative joint venture agreement. The HEI affiliates receive no compensation directly from Tianjiao. Page 16 of 17 EXHIBIT A Unaudited consolidating statements of income and retained earnings of Hawaiian Electric Industries, Inc. and its subsidiary companies for the calendar year 1999, together with an unaudited consolidating balance sheet of Hawaiian Electric Industries, Inc. and its subsidiary companies as of December 31, 1999, are attached hereto as Exhibit A. Unaudited consolidating income and retained earnings information for the calendar year 1999 for Hawaiian Electric Company, Inc. and its subsidiary companies, for HEI Diversified, Inc. and its subsidiary company, for American Savings Bank, F.S.B. and its subsidiary companies, for The Old Oahu Tug Service, Inc. (formerly Hawaiian Tug & Barge Corp. and its subsidiary company), for HEI Power Corp. and its subsidiary companies, for HEI Power Corp. International and its subsidiary companies and for HEI Power Corp. China II and its subsidiary companies, together with unaudited consolidating balance sheet information for said companies and their respective subsidiaries as of December 31, 1999, are attached hereto as Exhibits A-1 through A-7. Unaudited consolidating income, retained earnings and balance sheet information for MPC and its subsidiaries are not provided as MPC and its subsidiaries are being accounted for as discontinued operations in HEI's consolidated financial statements effective September 14, 1998. EXHIBIT B The unaudited financial data schedules for HEI and its subsidiaries and for HECO and its subsidiaries are attached hereto as Exhibit B. EXHIBIT C HEI - HEIPC - HPG HEI - HEIPC - International - China II - UPP - Tianjiao (UPP owns 75%) HEI - HEIPC - International - Philippine Develop - CEPALCO
Page 17 of 17 Each of the above-named claimants has caused this statement to be duly executed on its behalf by its duly authorized officers on this 24th day of February 2000.
HAWAIIAN ELECTRIC INDUSTRIES, INC. Claimant By /s/ Robert F. Clarke ---------------------------------------------- Robert F. Clarke Chairman, President and ATTEST: Chief Executive Officer /s/ Peter C. Lewis By /s/ Robert F. Mougeot ------------------------------------ -------------------------------------------- Peter C. Lewis Robert F. Mougeot Vice President-Administration Financial Vice President and & Corporate Secretary Chief Financial Officer HAWAIIAN ELECTRIC COMPANY, INC. Claimant By /s/ T. Michael May ---------------------------------------------- T. Michael May ATTEST: President and Chief Executive Officer /s/ Molly M. Egged By /s/ Jackie M. Erickson --------------------------------- -------------------------------------------- Molly M. Egged Jackie M. Erickson Secretary Vice President - Customer Operations/ General Counsel
Name, title, and address of officer to whom notices and correspondence concerning this statement should be addressed: Peter C. Lewis Vice President-Administration & Corporate Secretary Hawaiian Electric Industries, Inc. P. O. Box 730 Honolulu, Hawaii 96808-0730 HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A Consolidating Balance Sheet (Page 1 of 3) Page 1 of 8 December 31, 1999 (Unaudited) (in thousands)
Malama The Old Pacific Hawaiian Hawaiian Oahu Corp. and Electric HEI Electric Tug HEI subsidiaries Company, Diversified, Industries, Service, Investment (Discontinued Inc. and Inc. and ASSETS Inc. Inc. Corp. operations) subsidiaries subsidiary - ------------------------------------ ------------- ------------- ------------- -------------- -------------- ------------- Cash and equivalents $ 756 4 17 - 1,966 $ 192,836 Notes receivable from affiliated companies 3,010 23,108 13,286 - - 17,993 Accounts receivable and unbilled revenues, net 1,325 515 59 - 124,770 28,205 Investment and mortgage/asset- backed securities - - - - - 2,159,945 Loans receivable, net - - - - - 3,211,878 Property, plant and equipment, net 3,489 - - - 1,958,144 66,110 Regulatory assets - - - - 114,759 - Other 28,665 3,208 56,887 (7,529) 103,170 82,611 Goodwill and other intangibles - - - - - 106,741 Investments in wholly owned subsidiaries, at equity 1,332,576 - - - - - ------------- ------------- ------------- -------------- ------------- ------------- $1,369,821 26,835 70,249 (7,529) 2,302,809 $5,866,319 ============= ============= ============= ============== ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------ Liabilities Accounts payable $ 6,518 152 11 - 60,783 $ 51,007 Deposit liabilities - - - - - 3,491,655 Short-term borrowings 82,156 - - - 107,013 - Securities sold under agreements to repurchase - - - - - 661,215 Advances from Federal Home Loan Bank - - - - - 1,189,081 Long-term debt 434,500 - - - 646,029 17,073 Deferred income taxes 1,364 - 44,166 - 131,105 4,787 Contributions in aid of construction - - - - 206,302 - Other (2,303) 4,886 2,077 - 211,181 14,420 ------------- ------------- ------------- -------------- ------------- ------------- 522,235 5,038 46,254 - 1,362,413 5,429,238 ------------- ------------- ------------- -------------- ------------- ------------- HEI- and HECO-obligated preferred securities of trust subsidiaries directly or indirectly holding solely HEI and HEI-guaranteed and HECO and HECO- guaranteed - - - - 100,000 - subordinated debentures Preferred stock of subsidiaries-not subject to mandatory redemption - - - - 34,293 113 Minority interests - - - - - - ------------- ------------- ------------- -------------- ------------- ------------- 134,293 113 ------------- ------------- ------------- -------------- ------------- ------------- Stockholders' equity Preferred stock - - - - - Common stock 665,335 13,229 22,166 39,475 380,897 329,468 Retained earnings (deficit) 182,251 8,568 1,829 (47,004) 425,206 107,500 ------------- ------------- ------------- -------------- ------------- ------------- 847,586 21,797 23,995 (7,529) 806,103 436,968 ------------- ------------- ------------- -------------- ------------- ------------- $1,369,821 26,835 70,249 (7,529) 2,302,809 $5,866,319 ============= ============= ============= ============== ============= =============
Continued on next page. HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A Consolidating Balance Sheet (Page 2 of 3) Page 2 of 8 December 31, 1999 (Unaudited) (in thousands) (Continued)
Pacific Energy HEI Conservation HEI Power District ProVision HEI Services, Corp. and Cooling, Technologies, Properties, ASSETS Inc. subsidiaries Inc Inc. Inc. - ------------------------------------------- ------------- ------------- ------------- -------------- -------------- Cash and equivalents $ 9 2,507 31 19 $1 Notes receivable from affiliated companies 19 - 3 - - Accounts receivable and unbilled revenues, net 12 1,258 - - - Investment and mortgage/asset- backed securities - - - - - Loans receivable, net - - - - - Property, plant and equipment, net - 38,024 387 41 - Regulatory assets - - - - - Other 7 9,977 - 1 - Goodwill and other intangibles - - - - - Investments in wholly owned subsidiaries, at equity - - - - - ------------- ------------- ------------- -------------- -------------- $ 47 51,766 421 61 $1 ============= ============= ============= ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------------- Liabilities Accounts payable $ 3 504 11 - $ - Deposit liabilities - - - - - Short-term borrowings - 3,010 - - - Securities sold under agreements to repurchase - - - - - Advances from Federal Home Loan Bank - - - - - Long-term debt - 17,073 - - - Deferred income taxes - (142) (3) - - Contributions in aid of construction - - - - - Other 19 1,571 - - - ------------- ------------- ------------- -------------- -------------- 22 22,016 8 - - ------------- ------------- ------------- -------------- -------------- HEI- and HECO-obligated preferred securities of trust subsidiaries directly or indirectly holding solely HEI and HEI- guaranteed and HECO and HECO- - - - - - guaranteed subordinated debentures Preferred stock of subsidiaries- not subject to mandatory redemption - - - - - Minority interests - 841 - - - ------------- ------------- ------------- -------------- -------------- - 841 - - - ------------- ------------- ------------- -------------- -------------- Stockholders' equity Preferred stock - - - - - Common stock 400 45,049 1,250 115 1 Retained earnings (deficit) (375) (16,140) (837) (54) - ------------- ------------- ------------- -------------- -------------- 25 28,909 413 61 1 ------------- ------------- ------------- -------------- -------------- $ 47 51,766 421 61 $1 ============= ============= ============= ============== ==============
Continued on next page. HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A Consolidating Balance Sheet (Page 3 of 3) Page 3 of 8 December 31, 1999 (Unaudited) (in thousands) (Continued)
Hawaiian Reclassifi- HEI Electric cations Hycap Preferred Industries and Management, Funding, Capital Eliminations ASSETS Inc. LP Trust I Dr. (Cr.) Consolidated - ------------------------------------------- -------------- ------------- ------------- -------------- --------------- Cash and equivalents $ 547 1,213 - - $ 199,906 Notes receivable from affiliated companies - 120,073 - (177,492) - Accounts receivable and unbilled revenues, net 3 3 - (1,545) 154,605 Investment and mortgage/asset- backed securities - - - - 2,159,945 Loans receivable, net - - - - 3,211,878 Property, plant and equipment, net - - - - 2,066,195 Regulatory assets - - - - 114,759 Other - - - - 276,997 Goodwill and other intangibles - - - - 106,741 Investments in wholly owned subsidiaries, at equity 18,193 - 103,093 (1,453,862) - -------------- ------------- ------------- --------------- --------------- $18,743 121,289 103,093 (1,632,899) $8,291,026 ============== ============= ============= =============== =============== LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------------- Liabilities Accounts payable $ - 3 - 1,545 $ 117,447 Deposit liabilities - - - - 3,491,655 Short-term borrowings - - - 40,346 151,833 Securities sold under agreements to repurchase - - - - 661,215 Advances from Federal Home Loan Bank - - - - 1,189,081 Long-term debt - - - 137,146 977,529 Deferred income taxes - - - - 181,277 Contributions in aid of construction - - - - 206,302 Other 3 - - - 231,854 -------------- ------------- ------------- --------------- --------------- 3 3 - 179,037 7,208,193 -------------- ------------- ------------- --------------- --------------- HEI- and HECO-obligated preferred securities of trust subsidiaries directly or indirectly holding solely HEI and HEI- guaranteed and HECO and HECO- - - 100,000 - 200,000 guaranteed subordinated debentures Preferred stock of subsidiaries- not subject to mandatory redemption - - - - 34,406 Minority interests - - - - 841 -------------- ------------- ------------- --------------- --------------- - - 100,000 - 235,247 -------------- ------------- ------------- --------------- --------------- Stockholders' equity Preferred stock - - - - - Common stock 18,364 121,286 3,093 974,793 665,335 Retained earnings (deficit) 376 - - 479,069 182,251 -------------- ------------- ------------- --------------- --------------- 18,740 121,286 3,093 1,453,862 847,586 -------------- ------------- ------------- --------------- --------------- $18,743 121,289 103,093 1,632,899 $8,291,026 ============== ============= ============= =============== ===============
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A Consolidating Statement of Income (Page 1 of 3) Page 4 of 8 Year ended December 31, 1999 (Unaudited) (in thousands)
Malama Pacific Hawaiian Hawaiian The Old Corp. and Electric HEI Electric Oahu Tug HEI subsidiaries Company, Diversified, Industries, Service, Investment (Discontinued Inc. and Inc. and Inc. Inc. * Corp. operations) subsidiaries subsidiary -------------- ------------- ------------- ------------ ------------ ------------- Revenues Electric utility $ - - - - 1,055,204 $ - Savings bank - - - - - 409,913 International power - - - - - - Other 2,345 48,576 5,258 - - 1,090 Equity in net income of subsidiaries 116,810 - - - - - -------------- ------------- ------------- ------------ ------------ ------------- 119,155 48,576 5,258 - 1,055,204 411,003 -------------- ------------- ------------- ------------ ------------ ------------- Expenses Electric utility - - - - 880,490 - Savings bank - - - - - 349,561 International power - - - - - - Other 7,156 42,639 122 - - (128) -------------- ------------- ------------- ------------ ------------ ------------- 7,156 42,639 122 - 880,490 349,433 -------------- ------------- ------------- ------------ ------------ ------------- Operating income (loss) Electric utility - - - - 174,714 - Savings bank - - - - - 60,352 International power - - - - - - Other 111,999 5,937 5,136 - - 1,218 -------------- ------------- ------------- ------------ ------------ ------------- 111,999 5,937 5,136 - 174,714 61,570 -------------- ------------- ------------- ------------ ------------ ------------- Interest expense-electric utility and other (34,637) (1,209) (1) - (48,461) (1,427) Allowance for borrowed funds used during construction - - - - 2,576 - Preferred stock dividends of subsidiaries - - - - (945) (12) Preferred securities distributions of trust subsidiaries - - - - (7,665) - Allowance for equity funds used during construction - - - - 4,228 - -------------- ------------- ------------- ------------ ------------ ------------- Income (loss) from continuing operations before income taxes and pfd. stock dividends and pfd. securities distributions 77,362 4,728 5,135 - 124,447 60,131 Income tax expense (benefit) (15,532) 3,419 1,259 - 48,047 19,445 -------------- ------------- ------------- ------------ ------------ ------------- Income (loss) from continuing operations before pfd. stock dividends and pfd. securities distributions 92,894 1,309 3,876 - 76,400 40,686 Preferred stock dividends of parent - - - - 1,178 - Preferred securities distributions - - - - - - -------------- ------------- ------------- ------------ ------------ ------------- Income (loss) from continuing operations 92,894 1,309 3,876 - 75,222 40,686 Gain from discontinued operations 3,953 - - - - - -------------- ------------- ------------- ------------ ------------ ------------- Net income (loss) $ 96,847 1,309 3,876 - 75,222 $ 40,686 ============== ============= ============= ============ ============ =============
* Formerly Hawaiian Tug & Barge Corp. and subsidiary. Continued on next page. HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A Consolidating Statement of Income (Page 2 of 3) Page 5 of 8 Year ended December 31, 1999 (Unaudited) (in thousands) (Continued)
Pacific Energy HEI Conservation HEI Power District ProVision HEI Services, Corp. and Cooling, Technologies, Properties, Inc. subsidiaries Inc Inc. Inc. -------------- -------------- ------------- --------------- -------------- Revenues Electric utility $ - - - - $ - Savings bank - - - - - International power - 4,464 - - - Other 141 - 6 - - Equity in net income of subsidiaries - - - - - -------------- -------------- ------------- --------------- -------------- 141 4,464 6 - - -------------- -------------- ------------- --------------- -------------- Expenses Electric utility - - - - - Savings bank - - - - - International power - 9,195 - - - Other 215 - 307 21 - -------------- -------------- ------------- --------------- -------------- 215 9,195 307 21 - -------------- -------------- ------------- --------------- -------------- Operating income (loss) Electric utility - - - - - Savings bank - - - - - International power - (4,731) - - - Other (74) - (301) (21) - -------------- -------------- ------------- --------------- -------------- (74) (4,731) (301) (21) - -------------- -------------- ------------- --------------- -------------- Interest expense-electric utility and other - (514) - - - Allowance for borrowed funds used during construction - - - - - Preferred stock dividends of subsidiaries - - - - - Preferred securities distributions of trust subsidiaries - - - - - Allowance for equity funds used during construction - - - - - -------------- -------------- ------------- --------------- -------------- Income (loss) from continuing operations before income taxes and pfd. stock dividends and pfd. securities distributions (74) (5,245) (301) (21) - Income tax expense (benefit) - (156) - - - -------------- -------------- ------------- --------------- -------------- Income (loss) from continuing operations before pfd. stock dividends and pfd. securities distributions (74) (5,089) (301) (21) - Preferred stock dividends of parent - - - - - Preferred securities distributions - - - - - -------------- -------------- ------------- --------------- -------------- Income (loss) from continuing operations (74) (5,089) (301) (21) - Gain from discontinued operations - - - - -------------- -------------- ------------- --------------- -------------- Net income (loss) $ (74) (5,089) (301) (21) $ - ============== ============== ============= =============== ==============
Continued on next page. HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A Consolidating Statement of Income (Page 3 of 3) Page 6 of 8 Year ended December 31, 1999 (Unaudited) (in thousands) (Continued)
Hawaiian Reclassifi- HEI Electric cations Hycap Preferred Industries and Management, Funding, Capital Eliminations Inc. LP Trust I Dr. (Cr.) Consolidated ------------- ------------- ------------- -------------- -------------- Revenues Electric utility $ - - - - $1,055,204 Savings bank - - - - 409,913 International power - - - - 4,464 Other 26 10,085 - 13,818 53,709 Equity in net income of subsidiaries 1,466 - 8,619 126,895 - ------------- ------------- ------------- -------------- -------------- 1,492 10,085 8,619 140,713 1,523,290 ------------- ------------- ------------- -------------- -------------- Expenses Electric utility - - - - 880,490 Savings bank - - - - 349,561 International power - - - - 9,195 Other 41 - - (200) 50,173 ------------- ------------- ------------- -------------- -------------- 41 - - (200) 1,289,419 ------------- ------------- ------------- -------------- -------------- Operating income (loss) Electric utility - - - - 174,714 Savings bank - - - - 60,352 International power - - - - (4,731) Other 1,451 10,085 8,619 140,513 3,536 ------------- ------------- ------------- -------------- -------------- 1,451 10,085 8,619 140,513 233,871 ------------- ------------- ------------- -------------- -------------- Interest expense-electric utility and other - - - (13,618) (72,631) Allowance for borrowed funds used during construction - - - - 2,576 Preferred stock dividends of subsidiaries - - - 1,178 (2,135) Preferred securities distributions of trust subsidiaries - - - 8,360 (16,025) Allowance for equity funds used during construction - - - - 4,228 ------------- ------------- ------------- -------------- -------------- Income (loss) from continuing operations before income taxes and pfd. stock dividends and pfd. securities distributions 1,451 10,085 8,619 136,433 149,884 Income tax expense (benefit) 508 - - - 56,990 ------------- ------------- ------------- -------------- -------------- Income (loss) from continuing operations before pfd. stock dividends and pfd. securities distributions 943 10,085 8,619 136,433 92,894 Preferred stock dividends of parent - - - (1,178) - Preferred securities distributions - - 8,360 (8,360) - ------------- ------------- ------------- -------------- -------------- Income (loss) from continuing operations 943 10,085 259 126,895 92,894 Gain from discontinued operations - - - - 3,953 ------------- ------------- ------------- -------------- -------------- Net income (loss) $ 943 10,085 259 126,895 $ 96,847 ============= ============= ============= ============== ==============
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A Consolidating Statement of Retained Earnings (Page 1 of 2) Page 7 of 8 Year ended December 31, 1999 (Unaudited) (in thousands)
Malama The Old Pacific Hawaiian Hawaiian Oahu Corp. and Electric HEI Electric Tug HEI subsidiaries Company, Diversified, Industries, Service, Investment Discontinued Inc. and Inc. and Inc. Inc. * Corp. operations) subsidiaries subsidiary ----------- -------- ---------- ------------ ------------ ------------ Retained earnings (deficit), beginning of year $165,252 8,592 (2,047) (47,004) 405,836 $ 86,177 Net income (loss) 96,847 1,309 3,876 - 75,222 40,686 Distributions of HEI Preferred Funding, LP - - - - - - Common stock dividends (79,848) (1,333) - - (55,852) (19,363) ----------- -------- ---------- ------------ ------------ ------------ Retained earnings (deficit), end of year $182,251 8,568 1,829 (47,004) 425,206 $107,500 =========== ======== ========== ============ ============ ============
* Formerly Hawaiian Tug & Barge Corp. and subsidiary. Continued below. HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Consolidating Statement of Retained Earnings Year ended December 31, 1999 (Unaudited) (in thousands) (Continued)
Pacific Energy HEI Conservation HEI Power District ProVision HEI Services, Corp. and Cooling, Technologies, Properties, Inc. subsidiaries Inc Inc. Inc. ------------ ------------ -------- ------------- ----------- Retained earnings (deficit), beginning of year $(301) (11,051) (536) (33) $ - Net income (loss) (74) (5,089) (301) (21) - Distributions of HEI Preferred Funding, LP - - - - - Common stock dividends - - - - - ------------ ------------ -------- ------------- ----------- Retained earnings (deficit), end of year $(375) (16,140) (837) (54) $ - ============ ============ ======== ============= ===========
Continued on next page. HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A Consolidating Statement of Retained Earnings (Page 2 of 2) Page 8 of 8 Year ended December 31, 1999 (Unaudited) (in thousands) (Continued)
Hawaiian Reclassifi- HEI Electric cations Hycap Preferred Industries and Management, Funding, Capital Eliminations Inc. LP Trust I Dr. (Cr.) Consolidated ----------- --------- ---------- ------------ ------------ Retained earnings (deficit), beginning of year $ 633 - - 440,266 $165,252 Net income (loss) 943 10,085 259 126,895 96,847 Distributions of HEI Preferred Funding, LP - (10,085) - (10,085) - Common stock dividends (1,200) - (259) (78,007) (79,848) ----------- --------- ---------- ------------ ------------ Retained earnings (deficit), end of year $ 376 - - 479,069 $182,251 =========== ========= ========== ============ ============
HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES Exhibit A-1 Consolidating Schedule - Balance Sheet Information (Page 1 of 2) Page 1 of 5 December 31, 1999 (Unaudited) (in thousands)
Hawaii Hawaiian Electric Maui Electric Light Electric Company, Company, Company, ASSETS Inc. Inc. Limited - ----------------------------------------------- ---------------- ---------------- ---------------- Cash and equivalents $ 1,039 198 $ 729 Notes receivable from affiliated companies 26,200 - 8,400 Accounts receivable and unbilled revenues, net 84,384 21,999 17,595 Property, plant and equipment, net 1,197,273 397,926 362,945 Regulatory assets 77,264 20,233 17,262 Other 65,565 15,456 22,149 Investments in wholly owned subsidiaries, at equity 326,646 - - ---------------- ---------------- ---------------- $1,778,371 455,812 $429,080 ================ ================ ================ LIABILITIES AND STOCKHOLDER'S EQUITY - -------------------------------------------- Liabilities Accounts payable $ 41,580 8,463 $ 10,391 Short-term borrowings 115,413 26,200 - Long-term debt 432,112 145,810 171,200 Deferred income taxes 111,345 10,413 9,347 Contributions in aid of construction 132,643 49,690 23,969 Other 116,882 48,517 45,338 ---------------- ---------------- ---------------- 949,975 289,093 260,245 ---------------- ---------------- ---------------- HECO-obligated mandatorily redeemable preferred securities of trust subsidiary holding solely HECO and HECO-guaranteed subordinated debentures - - - Preferred stock-not subject to mandatory redemption 22,293 7,000 5,000 ---------------- ---------------- ---------------- 22,293 7,000 5,000 ---------------- ---------------- ---------------- Stockholder's equity Common stock 380,897 99,913 94,202 Retained earnings 425,206 59,806 69,633 ---------------- ---------------- ---------------- 806,103 159,719 163,835 ---------------- ---------------- ---------------- $1,778,371 455,812 $429,080 ================ ================ ================
Continued on next page. HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES Exhibit A-1 Consolidating Schedule - Balance Sheet Information (Page 2 of 2) Page 2 of 5 December 31, 1999 (Unaudited) (in thousands) (Continued)
Reclassifi- cations HECO HECO and Capital Capital Eliminations ASSETS Trust I Trust II Dr. (Cr.) Consolidated - ----------------------------------------------- ---------------- ---------------- ---------------- ---------------- Cash and equivalents $ - - - $ 1,966 Notes receivable from affiliated companies 51,546 51,546 (137,692) - Accounts receivable and unbilled revenues, net - - 792 124,770 Property, plant and equipment, net - - - 1,958,144 Regulatory assets - - - 114,759 Other - - - 103,170 Investments in wholly owned subsidiaries, at equity - - (326,646) - ---------------- ---------------- ---------------- ---------------- $51,546 51,546 (463,546) $2,302,809 ================ ================ ================ ================ LIABILITIES AND STOCKHOLDER'S EQUITY - -------------------------------------------- Liabilities Accounts payable $ - - (349) $ 60,783 Short-term borrowings - - 34,600 107,013 Long-term debt - - 103,093 646,029 Deferred income taxes - - - 131,105 Contributions in aid of construction - - - 206,302 Other - - (444) 211,181 ---------------- ---------------- ---------------- ---------------- - - 136,900 1,362,413 ---------------- ---------------- ---------------- ---------------- HECO-obligated mandatorily redeemable preferred securities of trust subsidiary holding solely HECO and HECO-guaranteed subordinated debentures 50,000 50,000 - 100,000 Preferred stock-not subject to mandatory redemption - - - 34,293 ---------------- ---------------- ---------------- ---------------- 50,000 50,000 - 134,293 ---------------- ---------------- ---------------- ---------------- Stockholder's equity Common stock 1,546 1,546 197,207 380,897 Retained earnings - - 129,439 425,206 ---------------- ---------------- ---------------- ---------------- 1,546 1,546 326,646 806,103 ---------------- ---------------- ---------------- ---------------- $51,546 51,546 463,546 $2,302,809 ================ ================ ================ ================
HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES Exhibit A-1 Consolidating Schedule - Income Information (Page 1 of 2) Page 3 of 5 Year ended December 31, 1999 (Unaudited) (in thousands)
Hawaii Hawaiian Electric Maui Electric Light Electric Company, Company, Company, Inc. Inc. Limited ---------------- ---------------- ---------------- Revenues Electric utility $736,805 160,905 $159,144 Equity in net income of subsidiaries 27,336 - - ---------------- ---------------- ---------------- 764,141 160,905 159,144 Expenses-Electric utility 626,721 130,012 123,757 ---------------- ---------------- ---------------- Operating income 137,420 30,893 35,387 Interest expense (35,555) (11,340) (11,118) Allowance for borrowed funds used during construction 2,025 204 347 Preferred stock dividends of subsidiaries - - - Preferred securities distributions of trust subsidiaries - - - Allowance for equity funds used during construction 3,191 328 709 ---------------- ---------------- ---------------- Income before income tax expense and preferred stock dividends 107,081 20,085 25,325 Income taxes 30,681 7,658 9,708 ---------------- ---------------- ---------------- Income before preferred stock dividends 76,400 12,427 15,617 Preferred stock dividends 1,178 534 411 ---------------- ---------------- ---------------- Net income $ 75,222 11,893 $ 15,206 ================ ================ ================
Continued on next page. HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES Exhibit A-1 Consolidating Schedule - Income Information (Page 2 of 2) Page 4 of 5 Year ended December 31, 1999 (Unaudited) (in thousands) (Continued)
Reclassifi- cations HECO HECO and Capital Capital Eliminations Trust I Trust II Dr. (Cr.) Consolidated -------------- -------------- --------------- --------------- Revenues Electric utility $ 4,149 3,753 9,552 $1,055,204 Equity in net income of subsidiaries - - 27,336 - -------------- -------------- --------------- --------------- 4,149 3,753 36,888 1,055,204 Expenses-Electric utility - - - 880,490 -------------- -------------- --------------- --------------- Operating income 4,149 3,753 36,888 174,714 Interest expense - - (9,552) (48,461) Allowance for borrowed funds used during construction - - - 2,576 Preferred stock dividends of subsidiaries - - 945 (945) Preferred securities distributions of trust subsidiaries (4,025) (3,640) - (7,665) Allowance for equity funds used during construction - - - 4,228 -------------- -------------- --------------- --------------- Income before income tax expense and preferred stock dividends 124 113 28,281 124,447 Income taxes - - - 48,047 -------------- -------------- --------------- --------------- Income before preferred stock dividends 124 113 28,281 76,400 Preferred stock dividends - - (945) 1,178 -------------- -------------- --------------- --------------- Net income $ 124 113 27,336 $ 75,222 ============== ============== =============== ===============
HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES Exhibit A-1 Consolidating Schedule - Retained Earnings Information Page 5 of 5 Year ended December 31, 1999 (Unaudited) (in thousands)
Hawaii Hawaiian Electric Maui Electric Light Electric Company, Company, Company, Inc. Inc. Limited -------------- -------------- -------------- Retained earnings, beginning of year $405,836 57,210 $62,992 Net income 75,222 11,893 15,206 Common stock dividends (55,852) (9,297) (8,565) -------------- -------------- -------------- Retained earnings, end of year $425,206 59,806 $69,633 ============== ============== ==============
Continued below. HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES Consolidating Schedule - Retained Earnings Information Year ended December 31, 1999 (Unaudited) (in thousands) (Continued)
Reclassifi- cations HECO HECO and Capital Capital Eliminations Trust I Trust II Dr. (Cr.) Consolidated -------------- -------------- -------------- -------------- Retained earnings, beginning of year $ - - 120,202 $405,836 Net income 124 113 27,336 75,222 Common stock dividends (124) (113) (18,099) (55,852) -------------- -------------- -------------- -------------- Retained earnings, end of year $ - - 129,439 $425,206 ============== ============== ============== ==============
HEI DIVERSIFIED, INC. AND SUBSIDIARY Exhibit A-2 Consolidating Schedule - Balance Sheet Information Page 1 of 2 December 31, 1999 (Unaudited) (in thousands)
American Reclassifi- Savings cations HEI Bank, and Diversified, F.S.B. and Eliminations ASSETS Inc. subsidiaries Dr. (Cr.) Consolidated - ------------------------------------------ --------------- -------------- -------------- ---------------- Cash and equivalents $ 29 192,807 - $ 192,836 Notes receivable from affiliated companies 17,993 - - 17,993 Accounts receivable and unbilled revenues, net 90 28,115 - 28,205 Investment and mortgage/asset- backed securities - 2,159,945 - 2,159,945 Loans receivable, net - 3,211,878 - 3,211,878 Property, plant and equipment, net - 66,110 - 66,110 Other 3,300 82,611 (3,300) 82,611 Goodwill and other intangibles - 106,741 - 106,741 Investment in wholly owned subsidiary, at equity 432,604 - (432,604) - -------------- -------------- -------------- ---------------- $454,016 5,848,207 (435,904) $5,866,319 ============== ============== ============== ================ LIABILITIES AND STOCKHOLDER'S EQUITY - -------------------------------------------- Liabilities Accounts payable $ 204 50,803 - $ 51,007 Deposit liabilities - 3,491,655 - 3,491,655 Securities sold under agreements to repurchase - 661,215 - 661,215 Advances from Federal Home Loan Bank - 1,189,081 - 1,189,081 Long-term debt 17,073 - - 17,073 Deferred income taxes (586) 5,373 - 4,787 Other 357 14,063 - 14,420 -------------- ------------- -------------- ---------------- 17,048 5,412,190 - 5,429,238 -------------- ------------- -------------- ---------------- Preferred stock of savings bank subsidiary - 113 - 113 Minority interests - 3,300 3,300 - Stockholder's equity Preferred stock - 75,000 75,000 - Common stock 329,468 239,645 239,645 329,468 Retained earnings 107,500 117,959 117,959 107,500 -------------- ------------- -------------- ---------------- 436,968 432,604 432,604 436,968 -------------- ------------- -------------- ---------------- $454,016 5,848,207 435,904 $5,866,319 ============== ============== ============== ================
HEI DIVERSIFIED, INC. AND SUBSIDIARY Exhibit A-2 Consolidating Schedule - Income Information Page 2 of 2 Year ended December 31, 1999 (Unaudited) (in thousands)
American Reclassifi- Savings cations HEI Bank, and Diversified, F.S.B. and Eliminations Inc. subsidiaries Dr. (Cr.) Consolidated ------------ -------------- -------------- -------------- Revenues Savings bank $ - 409,913 - $409,913 Other 6,490 - 5,400 1,090 Equity in net income of subsidiary 35,412 - 35,412 - ------------ -------------- -------------- -------------- 41,902 409,913 40,812 411,003 ------------ -------------- -------------- -------------- Expenses Savings bank - 349,561 - 349,561 Other (128) - - (128) ------------ -------------- -------------- -------------- (128) 349,561 - 349,433 ------------ -------------- -------------- -------------- Operating income Savings bank - 60,352 - 60,352 Other 42,030 - 40,812 1,218 ------------ -------------- -------------- -------------- 42,030 60,352 40,812 61,570 Interest expense-electric utility and other (1,427) - - (1,427) Preferred stock dividends of subsidiaries - - 12 (12) ------------ -------------- -------------- -------------- Income before income taxes and preferred stock dividends 40,603 60,352 40,824 60,131 Income tax expense (benefit) (83) 19,528 - 19,445 ------------ -------------- -------------- -------------- Income before preferred stock 40,686 40,824 40,824 40,686 dividends Preferred stock dividends - 5,412 (5,412) - ------------ -------------- -------------- -------------- Net income $40,686 35,412 35,412 $ 40,686 ============ ============== ============== ==============
HEI DIVERSIFIED, INC. AND SUBSIDIARY Consolidating Schedule - Retained Earnings Information Year ended December 31, 1999 (Unaudited) (in thousands)
American Reclassifi- Savings cations HEI Bank, and Diversified, F.S.B. and Eliminations Inc. subsidiaries Dr. (Cr.) Consolidated ----------------- ----------------- ----------------- ----------------- Retained earnings, beginning of year $ 86,177 98,910 98,910 $ 86,177 Net income 40,686 35,412 35,412 40,686 Common stock dividends (19,363) (16,363) (16,363) (19,363) ----------------- ----------------- ----------------- ----------------- Retained earnings, end of year $107,500 117,959 117,959 $107,500 ================= ================= ================= =================
AMERICAN SAVINGS BANK, F.S.B. AND SUBSIDIARIES Exhibit A-3 Consolidating Schedule - Balance Sheet Information (Page 1 of 2) Page 1 of 4 December 31, 1999 (Unaudited) (in thousands)
American American Savings AdCom- Savings Investment ASB muni Bank, Services Service cations, ASSETS F.S.B. Corp. Corporation Inc. - -------------------------------------------- --------------- --------------- --------------- --------------- Cash and equivalents $ 180,938 1,373 61 $420 Accounts receivable and unbilled revenues, net 20,084 - - - Investment and mortgage/asset- backed securities 1,637,704 - - - Loans receivable, net 2,105,791 - - - Property, plant and equipment, net 65,892 146 29 - Other 82,223 238 - - Goodwill and other intangibles 106,733 8 - - Investments in wholly owned subsidiaries, at equity 1,655,008 - - - --------------- --------------- --------------- --------------- $5,854,373 1,765 90 $420 =============== =============== =============== =============== LIABILITIES AND STOCKHOLDER'S EQUITY - -------------------------------------------- Liabilities Accounts payable $ 56,558 239 - $ 1 Deposit liabilities 3,496,230 - - - Securities sold under agreements to repurchase 661,215 - - - Advances from Federal Home Loan Bank 1,189,081 - - - Deferred income taxes 5,373 - - - Other 13,511 476 - 41 --------------- --------------- --------------- --------------- 5,421,968 715 - 42 --------------- --------------- --------------- --------------- Preferred stock of savings bank subsidiary - - - - Minority Interests - - - - Stockholder's equity Preferred stock 75,000 - - - Common stock 239,645 10 309 61 Retained earnings (deficit) 117,760 1,040 (219) 317 --------------- --------------- --------------- --------------- 432,405 1,050 90 378 --------------- --------------- --------------- --------------- $5,854,373 1,765 90 $420 =============== =============== =============== ===============
Continued on next page. AMERICAN SAVINGS BANK, F.S.B. AND SUBSIDIARIES Exhibit A-3 Consolidating Schedule - Balance Sheet Information (Page 2 of 2) Page 2 of 4 December 31, 1999 (Unaudited) (in thousands) (Continued)
Reclassifi- cations American and ASB Savings Elimi- Realty Mortgage nations Consoli- ASSETS Corporation Co., Inc. Dr. (Cr.) dated - -------------------------------------------- ------------------ --------------- --------------- --------------- Cash and equivalents $ 11,876 549 (2,410) $ 192,807 Accounts receivable and unbilled revenues, net 8,031 - - 28,115 Investment and mortgage/asset- backed securities 522,041 - 200 2,159,945 Loans receivable, net 1,106,087 - - 3,211,878 Property, plant and equipment, net - 43 - 66,110 Other 8,366 23 (8,239) 82,611 Goodwill and other intangibles - - - 106,741 Investments in wholly owned subsidiaries, at equity - - (1,655,008) - ------------------ --------------- --------------- --------------- $1,656,401 615 (1,665,457) $5,848,207 ================== =============== =============== =============== LIABILITIES AND STOCKHOLDER'S EQUITY - -------------------------------------------- Liabilities Accounts payable $ - 79 6,074 $ 50,803 Deposit liabilities - - 4,575 3,491,655 Securities sold under agreements to repurchase - - - 661,215 Advances from Federal Home Loan Bank - - - 1,189,081 Deferred income taxes - - - 5,373 Other - 35 - 14,063 ------------------ --------------- --------------- --------------- - 114 10,649 5,412,190 ------------------ --------------- --------------- --------------- Preferred stock of savings bank subsidiary 999 - 886 113 Minority Interests - - (3,300) 3,300 Stockholder's equity Preferred stock - - - 75,000 Common stock 1,653,720 439 1,654,539 239,645 Retained earnings (deficit) 1,682 62 2,683 117,959 ------------------ --------------- --------------- --------------- 1,655,402 501 1,657,222 432,604 ------------------ --------------- --------------- --------------- $1,656,401 615 1,665,457 $5,848,207 ================== =============== =============== ===============
AMERICAN SAVINGS BANK, F.S.B. AND SUBSIDIARIES Exhibit A-3 Consolidating Schedule - Income (Loss) Information Page 3 of 4 Year ended December 31, 1999 (Unaudited) (in thousands)
American American Savings AdCom- Savings Investment ASB muni Bank, Services Service cations, F.S.B. Corp. Corporation Inc. ------------- ------------- ------------- ------------- Revenues Savings bank $289,259 3,083 2 $190 Equity in net income of subsidiaries 114,982 - - - ------------- ------------- ------------- -------------- 404,241 3,083 2 190 Expenses-Savings bank 344,652 1,899 36 88 ------------- ------------- ------------- ------------- Operating income (loss) 59,589 1,184 (34) 102 Income tax expense (benefit) 18,976 476 - 41 ------------- ------------- ------------- ------------- Income (loss) before preferred stock dividends 40,613 708 (34) 61 Preferred stock dividends 5,400 - - - ------------- ------------- ------------- ------------- Net income (loss) $ 35,213 708 (34) $ 61 ============= ============= ============= =============
Continued below. AMERICAN SAVINGS BANK, F.S.B. AND SUBSIDIARIES Consolidating Schedule - Income (Loss) Information Year ended December 31, 1999 (Unaudited) (in thousands) (Continued)
Reclassifi- cations American and ASB Savings Elimi- Realty Mortgage nations Corporation Co., Inc. Dr. (Cr.) Consolidated ------------- ------------- ------------- -------------- Revenues Savings bank $117,181 1,026 828 $409,913 Equity in net income of subsidiaries - - 114,982 - ------------- ------------- ------------- -------------- 117,181 1,026 115,810 409,913 Expenses-Savings bank 2,890 939 (943) 349,561 ------------- ------------- ------------- -------------- Operating income (loss) 114,291 87 114,867 60,352 Income tax expense (benefit) - 35 - 19,528 ------------- ------------- ------------- -------------- Income (loss) before preferred stock dividends 114,291 52 114,867 40,824 Preferred stock dividends 96 - (84) 5,412 ------------- ------------- ------------- -------------- Net income (loss) $114,195 52 114,783 $ 35,412 ============= ============= ============= ==============
AMERICAN SAVINGS BANK, F.S.B. AND SUBSIDIARIES Exhibit A-3 Consolidating Schedule - Retained Earnings (Deficit) Information Page 4 of 4 Year ended December 31, 1999 (Unaudited) (in thousands)
American American Savings AdCom- Savings Investment ASB muni Bank, Services Service cations, F.S.B. Corp. Corporation Inc. ------------- ------------- ------------- ------------- Retained earnings (deficit), beginning of year $ 98,910 1,853 (185) $256 Net income (loss) 35,213 708 (34) 61 Common stock dividends (16,363) (1,521) - - ------------- ------------- ------------- ------------- Retained earnings (deficit), end of year $117,760 1,040 (219) $317 ============= ============= ============= =============
Continued below. AMERICAN SAVINGS BANK, F.S.B. AND SUBSIDIARIES Consolidating Schedule - Retained Earnings (Deficit) Information Year ended December 31, 1999 (Unaudited) (in thousands) (Continued)
Reclassifi- cations American and ASB Savings Elimi- Realty Mortgage nations Corporation Co., Inc. Dr. (Cr.) Consolidated -------------- ------------- ------------- -------------- Retained earnings (deficit), beginning of year $ (214) 10 1,720 $ 98,910 Net income (loss) 114,195 52 114,783 35,412 Common stock dividends (112,299) - (113,820) (16,363) -------------- ------------- ------------- -------------- Retained earnings (deficit), end of year $ 1,682 62 2,683 $117,959 ============== ============= ============= ==============
THE OLD OAHU TUG SERVICE, INC. Exhibit A-4 Consolidating Schedule - Balance Sheet Information Page 1 of 2 December 31, 1999 (Unaudited) (in thousands)
The Old Oahu Tug ASSETS Service, Inc. - --------------------------------------------------- -------------- Cash and equivalents $ 4 Notes receivable from affiliated company 23,108 Accounts receivable and unbilled revenues, net 515 Other 3,208 -------------- $ 26,835 ============== LIABILITIES AND STOCKHOLDER'S EQUITY - --------------------------------------------------- Liabilities Accounts payable $ 152 Other 4,886 -------------- 5,038 -------------- Stockholder's equity Common stock 13,229 Retained earnings 8,568 -------------- 21,797 -------------- $ 26,835 ==============
THE OLD OAHU TUG SERVICE, INC. Exhibit A-4 Consolidating Schedule - Income Information Page 2 of 2 Year ended December 31, 1999 (Unaudited) (in thousands)
Reclassifi- cations The Old Young and Oahu Tug Brothers, Eliminations Service, Inc.* Limited Dr. (Cr.) Consolidated ---------------- ---------------- ---------------- ---------------- Revenues Other $ 7,590 42,901 1,915 $ 48,576 Equity in net income of subsidiary 1,305 - 1,305 - ---------------- ---------------- ---------------- ---------------- 8,895 42,901 3,220 48,576 ---------------- ---------------- ---------------- ---------------- Expenses-Other 3,979 39,877 (1,217) 42,639 ---------------- ---------------- ---------------- ---------------- Operating income 4,916 3,024 2,003 5,937 Interest expense-electric utility and other (1,098) (809) (698) (1,209) ---------------- ---------------- ---------------- ---------------- Income before income taxes 3,818 2,215 1,305 4,728 Income tax expense 2,509 910 - 3,419 ---------------- ---------------- ---------------- ---------------- Net income $ 1,309 1,305 1,305 $ 1,309 ================ ================ ================ ================
* Formerly Hawaiian Tug & Barge Corp. THE OLD OAHU TUG SERVICE, INC. Consolidating Schedule - Retained Earnings Information Year ended December 31, 1999 (Unaudited) (in thousands)
Reclassifi- cations The Old Young and Oahu Tug Brothers, Eliminations Service, Inc.* Limited Dr. (Cr.) Consolidated ---------------- ---------------- ---------------- ---------------- Retained earnings, beginning of year $ 8,592 10,246 10,246 $ 8,592 Sale of Young Brothers, Limited - (10,234) (10,234) - Net income 1,309 1,305 1,305 1,309 Common stock dividends (1,333) (1,317) (1,317) (1,333) ---------------- ---------------- ---------------- ---------------- Retained earnings, end of year $ 8,568 - - $ 8,568 ================ ================ ================ ================
* Formerly Hawaiian Tug & Barge Corp. HEI POWER CORP. AND SUBSIDIARIES Exhibit A-5 Consolidating Schedule - Balance Sheet Information Page 1 of 2 December 31, 1999 (Unaudited) (in thousands)
Reclassifi- HEI HEI cations HEI Power Power and Power Corp. Corp. Eliminations ASSETS Corp. Guam International Dr. (Cr.) Consolidated - ------------------------------------ ---------------- --------------- --------------- --------------- --------------- Cash and equivalents $ 1,190 106 1,211 - $ 2,507 Notes receivable from affiliated companies 12,123 - (263) (11,860) - Accounts receivable and unbilled revenues, net 335 818 105 - 1,258 Property, plant and equipment, net 622 14,347 23,055 - 38,024 Other - 204 9,773 - 9,977 Investments in wholly owned subsidiaries, at equity 35,783 - - (35,783) - ---------------- --------------- --------------- --------------- --------------- $ 50,053 15,475 33,881 (47,643) $ 51,766 ================ =============== =============== =============== =============== LIABILITIES AND STOCKHOLDER'S EQUITY - ------------------------------------ Liabilities Accounts payable $ 341 2 161 - $ 504 Short-term borrowings 3,010 11,860 - 11,860 3,010 Long-term debt 17,073 - - - 17,073 Deferred income taxes - (142) - - (142) Other 720 851 - - 1,571 ---------------- --------------- --------------- --------------- --------------- 21,144 12,571 161 11,860 22,016 ---------------- --------------- --------------- --------------- --------------- Minority interests - - 841 - 841 ---------------- --------------- --------------- --------------- --------------- Stockholder's equity Common stock 45,049 2,250 35,053 37,303 45,049 Retained earnings (deficit) (16,140) 654 (2,174) (1,520) (16,140) ---------------- --------------- --------------- --------------- --------------- 28,909 2,904 32,879 35,783 28,909 ---------------- --------------- --------------- --------------- --------------- $ 50,053 15,475 33,881 47,643 $ 51,766 ================ =============== =============== =============== ===============
HEI POWER CORP. AND SUBSIDIARIES Exhibit A-5 Consolidating Schedule - Loss Information Page 2 of 2 Year ended December 31, 1999 (Unaudited) (in thousands)
Reclassifi- HEI HEI cations HEI Power Power and Power Corp. Corp. Eliminations Corp. Guam International Dr. (Cr.) Consolidated ------------- ------------- --------------- -------------- -------------- Revenues Other $ 548 3,743 721 548 $ 4,464 Equity in net loss of subsidiaries (1,190) - - (1,190) - ------------- ------------- --------------- -------------- -------------- (642) 3,743 721 (642) 4,464 ------------- ------------- --------------- -------------- -------------- Expenses-Other 3,936 3,864 1,395 - 9,195 ------------- ------------- --------------- -------------- -------------- Operating loss (4,578) (121) (674) (642) (4,731) Interest expense (514) (548) - (548) (514) ------------- ------------- --------------- -------------- -------------- Loss before income taxes (5,092) (669) (674) (1,190) (5,245) Income tax expense (benefit) (3) (238) 85 - (156) ------------- ------------- --------------- -------------- -------------- Net loss $ (5,089) (431) (759) (1,190) $ (5,089) ============= ============= =============== ============== ==============
HEI POWER CORP. AND SUBSIDIARIES Consolidating Schedule - Retained Earnings (Deficit) Information Year ended December 31, 1999 (Unaudited) (in thousands)
Reclassifi- HEI HEI cations HEI Power Power and Power Corp. Corp. Eliminations Corp. Guam International Dr. (Cr.) Consolidated ------------- ------------- --------------- -------------- -------------- Retained earnings (deficit), beginning of year $ (11,051) 1,085 (1,415) (330) $ (11,051) Net loss (5,089) (431) (759) (1,190) (5,089) ------------- ------------- --------------- -------------- -------------- Retained earnings (deficit), end of year $ (16,140) 654 (2,174) (1,520) $ (16,140) ============= ============= =============== ============== ==============
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Exhibit A-6 Consolidating Schedule - Balance Sheet Information (Page 1 of 3) Page 1 of 6 December 31, 1999 (Unaudited) (in thousands)
HEIPC HEI HEIPC Lake Power Philippine Mainit Corp. Development, Power, ASSETS International LLC LLC - -------------------------------------------- --------------- ---------------- --------------- Cash and equivalents $ 219 196 $ 102 Notes receivable from affiliated companies (120) - 111 Accounts receivable and unbilled revenues, net 9 84 - Property, plant and equipment, net - - 24 Other 5 9,707 2 Investments in wholly owned subsidiaries, at equity 32,766 - - --------------- --------------- ---------------- $32,879 9,987 $ 239 =============== ================ =============== LIABILITIES AND STOCKHOLDER'S EQUITY - -------------------------------------------- Liabilities Accounts payable $ - 50 $ - Other - - - --------------- ---------------- ---------------- - 50 - --------------- ---------------- --------------- Minority interests - - - --------------- ---------------- --------------- Stockholder's equity Common stock 35,053 9,901 447 Retained earnings (deficit) (2,174) 36 (208) --------------- ---------------- -------------- 32,879 9,937 239 --------------- ---------------- --------------- $32,879 9,987 $ 239 =============== ================ ===============
Continued on next page. HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Exhibit A-6 Consolidating Schedule - Balance Sheet Information (Page 2 of 3) Page 2 of 6 December 31, 1999 (Unaudited) (in thousands) (Continued)
HEI HEI HEIPC HEIPC Power Power Bulacan I, Bulacan II, Corp. Corp. ASSETS LLC LLC China China II - -------------------------------------------- --------------- ---------------- --------------- --------------- Cash and equivalents $ - - 211 $ 366 Notes receivable from affiliated companies - - (3) (251) Accounts receivable and unbilled revenues, net - - 12 - Property, plant and equipment, net - - 275 22,756 Other - - 24 31 Investments in wholly owned subsidiaries, at equity - - - - --------------- ---------------- --------------- --------------- $ - - 519 $22,902 =============== ================ =============== =============== LIABILITIES AND STOCKHOLDER'S EQUITY - -------------------------------------------- Liabilities Accounts payable $ - - 47 $ 43 Other - - - - --------------- ---------------- --------------- --------------- - - 47 43 --------------- ---------------- --------------- --------------- Minority interests - - - 841 --------------- ---------------- --------------- --------------- Stockholder's equity Common stock - - 1,350 23,127 Retained earnings (deficit) - - (878) (1,109) --------------- ---------------- --------------- --------------- - - 472 22,018 --------------- ---------------- --------------- --------------- $ - - 519 $22,902 =============== ================ =============== ===============
Continued on next page. Exhibit A-6 HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Page 3 of 6 Consolidating Schedule - Balance Sheet Information (Page 3 of 3) December 31, 1999 (Unaudited) (in thousands) (Continued)
HEIPC Phnom Reclassifi- HEI Penh cations Power Power and Corp. (Limited), Eliminations ASSETS Philippines LLC Dr. (Cr.) Consolidated - -------------------------------------------- --------------- --------------- ----------------- ----------------- Cash and equivalents $117 - - $ 1,211 Notes receivable from affiliated companies - - - (263) Accounts receivable and unbilled revenues, net - - - 105 Property, plant and equipment, net - - - 23,055 Other 2 2 - 9,773 Investments in wholly owned subsidiaries, at equity - - (32,766) - --------------- --------------- ----------------- ----------------- $119 2 (32,766) $33,881 =============== =============== ================= ================= LIABILITIES AND STOCKHOLDER'S EQUITY - -------------------------------------------- Liabilities Accounts payable $ 21 - - $ 161 Other - - - - --------------- --------------- ----------------- ----------------- 21 - - 161 --------------- --------------- ----------------- ----------------- Minority interests - - - 841 --------------- --------------- ----------------- ----------------- Stockholder's equity Common stock 181 2 35,008 35,053 Retained earnings (deficit) (83) - (2,242) (2,174) --------------- --------------- ----------------- ----------------- 98 2 32,766 32,879 --------------- --------------- ----------------- ----------------- $119 2 32,766 $33,881 =============== =============== ================= =================
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Exhibit A-6 Consolidating Schedule - Income (Loss) Information (Page 1 of 2) Page 4 of 6 Year ended December 31, 1999 (Unaudited) (in thousands)
HEIPC HEI HEIPC Lake Power Philippine Mainit Corp. Development, Power, International LLC LLC ------------- ------------ ------------ Revenues Other $ 1 603 $ 3 Equity in net loss of subsidiaries (720) - - -------------- ------------ ------------ (719) 603 3 Expenses-Other 40 107 2 -------------- ------------ ------------ Income (loss) before income taxes (759) 496 1 Income tax expense (benefit) - 85 - -------------- ------------ ------------ Net income (loss) $(759) 411 $ 1 ============== ============ ============
Continued below. HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Consolidating Schedule - Income (Loss) Information Year ended December 31, 1999 (Unaudited) (in thousands) (Continued)
HEI HEI HEIPC HEIPC Power Power Bulacan I, Bulacan II, Corp. Corp. LLC LLC China China II ------------- ------------- ------------- ------------- Revenues Other $ - - 3 $ 111 Equity in net loss of subsidiaries - - - - ------------- ------------- ------------- ------------- - - 3 111 Expenses-Other - - 861 302 ------------- ------------- ------------- ------------- Income (loss) before income taxes - - (858) (191) Income tax expense (benefit) - - - - ------------- ------------- ------------- ------------- Net income (loss) $ - - (858) $(191) ============= ============= ============= =============
Continued on next page. HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Exhibit A-6 Consolidating Schedule - Income (Loss) Information (Page 2 of 2) Page 5 of 6 Year ended December 31, 1999 (Unaudited) (in thousands) (Continued)
HEIPC Reclassifi- HEI Phnom Penh cations Power Power and Corp. (Limited), Eliminations Philippines LLC Dr. (Cr.) Consolidated ------------- ------------- --------------- -------------- Revenues Other $ - - - $ 721 Equity in net loss of subsidiaries - - (720) - ------------- ------------- --------------- --------------- - - (720) 721 Expenses-Other 83 - - 1,395 ------------- ------------- --------------- -------------- Income (loss) before income taxes (83) - (720) (674) Income tax expense (benefit) - - - 85 ------------- ------------- --------------- -------------- Net income (loss) $(83) - (720) $ (759) ============= ============= =============== ==============
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Exhibit A-6 Consolidating Schedule - Retained Earnings (Deficit) Information Page 6 of 6 Year ended December 31, 1999 (Unaudited) (in thousands)
HEI HEIPC HEIPC Power Philippine Lake Mainit Corp. Development, Power, International LLC LLC ------------- ------------ ------------ Retained earnings (deficit), beginning of year $(1,415) 39 $(209) Net income (loss) (759) 411 1 Common stock dividends - (414) - ------------- ------------ ------------ Retained earnings (deficit), end of year $(2,174) 36 $(208) ============= ============ ============
Continued below. HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Consolidating Schedule - Retained Earnings (Deficit) Information Year ended December 31, 1999 (Unaudited) (in thousands) (Continued)
HEI HEI HEIPC HEIPC Power Power Bulacan I, Bulacan II, Corp. Corp. LLC LLC China China II ------------ ------------- ------------- ------------ Retained earnings (deficit), beginning of year $ - - (20) $ (918) Net income (loss) - - (858) (191) Common stock dividends - - - - ------------ ------------- ------------- ------------ Retained earnings (deficit), end of year $ - - (878) $(1,109) ============ ============= ============= ============
Continued below. HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Consolidating Schedule - Retained Earnings (Deficit) Information Year ended December 31, 1999 (Unaudited) (in thousands) (Continued)
HEIPC Reclassifi- HEI Phnom Penh cations Power Power and Corp. (Limited), Eliminations Philippines LLC Dr. (Cr.) Consolidated ------------- ------------- -------------- -------------- Retained earnings (deficit), beginning of year $ - - (1,108) $(1,415) Net income (loss) (83) - (720) (759) Common stock dividends - - (414) - --------------- ------------- -------------- -------------- Retained earnings (deficit), end of year $ (83) - (2,242) $(2,174) =============== ============= ============== ==============
HEI POWER CORP. CHINA II AND SUBSIDIARIES Exhibit A-7 Consolidating Schedule - Balance Sheet Information Page 1 of 2 December 31, 1999 (Unaudited) (in thousands)
United Reclassifi- HEI Power Baotou cations Power Pacific Tianjiao and Corp. Company Power Eliminations ASSETS China II Limited Co., Ltd. Dr. (Cr.) Consolidated - ----------------------------------- --------------- --------------- --------------- --------------- ------------- Cash and equivalents $ 5 4 357 - $ 366 Notes receivable from affiliated companies (466) 233 (18) - (251) Accounts receivable and unbilled revenues, net - - - - - Property, plant and equipment, net 10,258 3,197 9,301 - 22,756 Other - - 31 - 31 Investments in wholly owned subsidiaries, at equity 12,237 8,525 - (20,762) - --------------- --------------- --------------- --------------- ----------- $22,034 11,959 9,671 (20,762) $22,902 =============== =============== =============== =============== =========== LIABILITIES AND STOCKHOLDER'S EQUITY - ----------------------------------- Liabilities Accounts payable $ 16 - 27 - $ 43 Other - - - - - --------------- --------------- --------------- --------------- ----------- 16 - 27 - 43 --------------- --------------- --------------- --------------- ----------- Minority interests - - 1,205 364 841 --------------- --------------- --------------- --------------- ----------- Stockholder's equity Common stock 23,127 13,350 8,783 22,133 23,127 Accumulated deficit (1,109) (1,391) (344) (1,735) (1,109) --------------- --------------- --------------- --------------- ----------- 22,018 11,959 8,439 20,398 22,018 --------------- --------------- --------------- --------------- ----------- $22,034 11,959 9,671 20,762 $22,902 =============== =============== =============== =============== ===========
HEI POWER CORP. CHINA II AND SUBSIDIARIES Exhibit A-7 Consolidating Schedule - Loss Information Page 2 of 2 Year ended December 31, 1999 (Unaudited) (in thousands)
United Reclassifi- HEI Power Baotou cations Power Pacific Tianjiao and Corp. Company Power Eliminations China II Limited Co., Ltd. Dr. (Cr.) Consolidated ------------- ------------- ------------- -------------- -------------- Revenues Other $ 4 4 6 (97) $ 111 Equity in net loss of subsidiaries (194) (146) - (340) - --------- --------- -------- ---------- ---------- (190) (142) 6 (437) 111 --------- --------- --------- ---------- ---------- Expenses-Other 1 101 200 - 302 --------- --------- --------- ---------- ---------- Net loss $ (191) (243) (194) (437) $(191) ========= ========= ========= ========== ==========
HEI POWER CORP. CHINA II AND SUBSIDIARIES Consolidating Schedule - Accumulated Deficit Information Year ended December 31, 1999 (Unaudited) (in thousands)
United Reclassifi- HEI Power Baotou cations Power Pacific Tianjiao and Corp. Company Power Eliminations China II Limited Co., Ltd. Dr. (Cr.) Consolidated ------------- ------------- ------------- -------------- -------------- Accumulated deficit, beginning of year $ (918) (1,148) (150) (1,298) $ (918) Net loss (191) (243) (194) (437) (191) --------- --------- --------- ---------- ---------- Accumulated deficit, end of year $(1,109) (1,391) (344) (1,735) $(1,109) ========= ========= ========= ========== ==========
Exhibit B Page 1 of 1 HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES FINANCIAL DATA SCHEDULE (Unaudited) (in thousands)
Item No. Year ended December 31, 1999 - ------------- ---------------------------------------------------------------------- 1 Total Assets (at December 31)......................... $8,291,026 2 Total Operating Revenues.............................. 1,523,290 3 Net Income............................................ 96,847
HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES FINANCIAL DATA SCHEDULE (Unaudited) (in thousands)
Item No. Year ended December 31, 1999 - ------------- ---------------------------------------------------------------------- 1 Total Assets (at December 31)......................... $2,302,809 2 Total Operating Revenues.............................. 1,055,204 3 Net Income............................................ 75,222
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