-----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, O0APQSso3RkWlqgzJSQmI7cWcOToCI0/tm1NjlEqElnP4zAKe1cAsr+igl4yfdaI bKtAZNHK0tNp4YHlRFZngQ== 0000004904-98-000044.txt : 19980424 0000004904-98-000044.hdr.sgml : 19980424 ACCESSION NUMBER: 0000004904-98-000044 CONFORMED SUBMISSION TYPE: U-1/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 19980422 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN ELECTRIC POWER COMPANY INC CENTRAL INDEX KEY: 0000004904 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 134922640 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U-1/A SEC ACT: SEC FILE NUMBER: 070-09181 FILM NUMBER: 98598357 BUSINESS ADDRESS: STREET 1: 1 RIVERSIDE PLZ CITY: COLUMBUS STATE: OH ZIP: 43215 BUSINESS PHONE: 6142231000 FORMER COMPANY: FORMER CONFORMED NAME: KINGSPORT UTILITIES INC DATE OF NAME CHANGE: 19660906 U-1/A 1 AEPCO/AEPSC AMEND NO.1 TO U-1 File No. 70-9181 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________ Amendment No. 1 to FORM U-1 __________________________________ APPLICATION OR DECLARATION under the PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 * * * AMERICAN ELECTRIC POWER COMPANY, INC. 1 Riverside Plaza, Columbus, Ohio 43215 AMERICAN ELECTRIC POWER SERVICE CORPORATION 1 Riverside Plaza, Columbus, Ohio 43215 (Name of companies filing this statement and addresses of principal executive offices) * * * AMERICAN ELECTRIC POWER COMPANY, INC. 1 Riverside Plaza, Columbus, Ohio 43215 (Name of top registered holding company parent of each applicant or declarant) * * * A. A. Pena, Treasurer AMERICAN ELECTRIC POWER SERVICE CORPORATION 1 Riverside Plaza, Columbus, Ohio 43215 John F. Di Lorenzo, Jr., Associate General Counsel AMERICAN ELECTRIC POWER SERVICE CORPORATION 1 Riverside Plaza, Columbus, Ohio 43215 (Names and addresses of agents for service) American Electric Power Company, Inc. ("AEP") and American Electric Power Service Corporation ("AEPSC") hereby amend their Application on Form U-1 in File No. 70-9181 as follows: 1. By restating ITEM 2. FEES, COMMISSIONS AND EXPENSES to read as follows: The expenses of AEP and AEPSC in connection with the proposed indebtedness, excluding placement fees estimated not to exceed $100,000, are estimated not to exceed $10,000, consisting of expenses to be billed at cost by AEPSC. 2. By supplying the following financial statements: Balance Sheets as of December 31, 1997 and Statements of Income and Retained Earnings, per books and pro forma, for the 12 months ended December 31, 1997, of AEPSC and of AEP ant its subsidiaries consolidated, together with journal entries reflecting the proposed transactions. SIGNATURE Pursuant to the requirements of the Public Utility Holding Company Act of 1935, the undersigned companies have duly caused this Amendment No. 1 to Form U-1 to be signed on their behalf by the undersigned thereunto duly authorized. AMERICAN ELECTRIC POWER SERVICE CORPORATION By /s/ A. A. Pena Treasurer AMERICAN ELECTRIC POWER COMPANY, INC. By /s/ A. A. Pena Treasurer Dated: April 20, 1998 EX-99 2 FINANCIALS TO AMEND NO. 1 TO U-1 FINANCIAL STATEMENTS PAGE 1 AMERICAN ELECTRIC POWER SERVICE CORPORATION BALANCE SHEET DECEMBER 31, 1997 (UNAUDITED)
Pro Forma Per Books Adjustments Pro Forma (in thousands) ASSETS PROPERTY: Land . . . . . . . . . . . . . . . . . . . . . . . $ 5,108 $ 5,108 Structures and Improvements. . . . . . . . . . . . 152,469 152,469 Office Furniture and Miscellaneous Equipment . . . 71,577 71,577 Total Property . . . . . . . . . . . . . . . . 229,154 229,154 Accumulated Depreciation and Amortization. . . . . 77,370 77,370 NET PROPERTY . . . . . . . . . . . . . . . . . 151,784 151,784 INVESTMENTS. . . . . . . . . . . . . . . . . . . . . 40,741 40,741 CURRENT ASSETS: Cash and Cash Equivalents. . . . . . . . . . . . . 725 $10,000 10,725 Accounts Receivable. . . . . . . . . . . . . . . . 89,312 89,312 Prepayments. . . . . . . . . . . . . . . . . . . . 514 514 TOTAL CURRENT ASSETS . . . . . . . . . . . . . 90,551 10,000 100,551 DEFERRED INCOME TAXES. . . . . . . . . . . . . . . . 13,032 13,032 REGULATORY ASSETS. . . . . . . . . . . . . . . . . . 8,607 8,607 DEFERRED CHARGES . . . . . . . . . . . . . . . . . . 2,684 2,684 TOTAL . . . . . . . . . . . . . . . . $307,399 $10,000 $317,399
The Pro Forma Adjustments are shown on Page 3 of these Financial Statements. FINANCIAL STATEMENTS PAGE 2 AMERICAN ELECTRIC POWER SERVICE CORPORATION BALANCE SHEET DECEMBER 31, 1997 (UNAUDITED)
Pro Forma Per Books Adjustments Pro Forma (in thousands) CAPITALIZATION AND LIABILITIES CAPITAL STOCK - Authorized, 20,000 Shares $100 Par Value; Issued and Outstanding 13,500 Shares . . . . . . . $ 1,350 $ 1,350 LONG-TERM DEBT . . . . . . . . . . . . . . . . . . . 56,100 $ 20,000 76,100 OTHER NONCURRENT LIABILITIES: Obligations Under Capital Leases . . . . . . . . . 46,363 46,363 Accrued Pension. . . . . . . . . . . . . . . . . . 40,033 40,033 Other. . . . . . . . . . . . . . . . . . . . . . . 26,900 26,900 TOTAL OTHER NONCURRENT LIABILITIES . . . . 113,296 113,296 CURRENT LIABILITIES: Long-term Debt Due Within One Year . . . . . . . . 15,000 (10,000) 5,000 Accounts Payable . . . . . . . . . . . . . . . . . 52,875 52,875 Accrued Vacation Pay . . . . . . . . . . . . . . . 16,870 16,870 Accrued Payroll. . . . . . . . . . . . . . . . . . 14,962 14,962 Obligations Under Capital Leases . . . . . . . . . 14,111 14,111 Other. . . . . . . . . . . . . . . . . . . . . . . 10,969 10,969 TOTAL CURRENT LIABILITIES. . . . . . . . . . . 124,787 (10,000) 114,787 DEFERRED INVESTMENT TAX CREDITS. . . . . . . . . . . 1,054 1,054 DEFERRED AMOUNTS DUE TO AFFILIATES FOR INCOME TAX BENEFITS. . . . . . . . . . . . . . . . 7,241 7,241 DEFERRED CREDITS . . . . . . . . . . . . . . . . . . 3,571 3,571 TOTAL . . . . . . . . . . . . . . . . $307,399 $ 10,000 $317,399
The Pro Forma Adjustments are shown on Page 3 of these Financial Statements. FINANCIAL STATEMENTS PAGE 3 AMERICAN ELECTRIC POWER SERVICE CORPORATION BALANCE SHEET DECEMBER 31, 1997 PRO FORMA ADJUSTMENTS
Debit Credit (in thousands) 1) Cash and Cash Equivalents . . . . . . . . . . . . . . . . . . . . $20,000 Long-term Debt. . . . . . . . . . . . . . . . . . . . . . . . . $20,000 To record the issuance of $20,000,000 long-term debt. 2) Long-term Debt Due Within One Year. . . . . . . . . . . . . . . . $10,000 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000
To record the retirement of $10,000,000, 5.29% Notes Payable to Banks due October 14, 1998 at a price of 100%. FINANCIAL STATEMENTS PAGE 3A AMERICAN ELECTRIC POWER SERVICE CORPORATION STATEMENT OF INCOME AND EXPENSES TWELVE MONTHS ENDED DECEMBER 31, 1997 PRO FORMA ADJUSTMENTS
Increase (Decrease) (in thousands) Interest on Long-term Debt @ 6-1/2%* = $1,300 Interest on Notes Payable to Banks @ 5.29% = (529) Federal Income Taxes @ 35% = (270) Increase in Billings to Affiliates = 501
To reflect the pro forma changes in interest charges associated with the proposed transactions, the related federal income tax effect and the increase in billings to affiliated companies. * Rate assumed solely for the purpose of these Pro Forma Financial Statements. FINANCIAL STATEMENTS PAGE 4 AMERICAN ELECTRIC POWER SERVICE CORPORATION STATEMENT OF INCOME AND EXPENSES TWELVE MONTHS ENDED MARCH 31, 1997 (UNAUDITED)
Pro Forma Per Books Adjustments Pro Forma (in thousands) INCOME: Services Rendered to Affiliated Companies. . $455,856 $ 501 $456,357 Miscellaneous Income . . . . . . . . . . . . 614 614 TOTAL INCOME. . . . . . . . . . . . . 456,470 501 456,971 EXPENSES: Salaries and Wages . . . . . . . . . . . . 228,151 228,151 Outside Services Employed. . . . . . . . . 84,671 84,671 Employee Pensions and Benefits . . . . . . 40,471 40,471 Office Supplies and Services . . . . . . . 43,486 43,486 Rents. . . . . . . . . . . . . . . . . . . 28,010 28,010 Taxes Other Than Federal Income Taxes. . . 19,745 19,745 Depreciation and Amortization. . . . . . . 4,006 4,006 Miscellaneous. . . . . . . . . . . . . . . 3,635 3,635 TOTAL EXPENSES. . . . . . . . . . . 452,175 452,175 INCOME BEFORE INTEREST CHARGES AND FEDERAL INCOME TAXES . . . . . . . . . . . 4,295 501 4,796 INTEREST CHARGES . . . . . . . . . . . . . . 7,377 771 8,148 LOSS BEFORE FEDERAL INCOME TAXES . . . . . . (3,082) (270) (3,352) FEDERAL INCOME TAX CREDIT. . . . . . . . . . (3,082) (270) (3,352) NET INCOME . . . . . . . . . . . . . . . . . $ - $ - $ -
The Pro Forma Adjustments are shown on Page 3A of these Financial Statements. FINANCIAL STATEMENTS PAGE 5 AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEET DECEMBER 31, 1997 (UNAUDITED)
Pro Forma Per Books Adjustments Pro Forma (in thousands) ASSETS ELECTRIC UTILITY PLANT: Production . . . . . . . . . . . . . . . . . . . . $ 9,493,158 $ 9,493,158 Transmission . . . . . . . . . . . . . . . . . . . 3,501,580 3,501,580 Distribution . . . . . . . . . . . . . . . . . . . 4,654,234 4,654,234 General (including mining assets and nuclear fuel) 1,604,671 1,604,671 Construction Work in Progress. . . . . . . . . . . 342,842 342,842 Total Electric Utility Plant . . . . . . . . . 19,596,485 19,596,485 Accumulated Depreciation and Amortization. . . . . 7,963,636 7,963,636 NET ELECTRIC UTILITY PLANT . . . . . . . . . . 11,632,849 11,632,849 OTHER PROPERTY AND INVESTMENTS . . . . . . . . . . . 1,358,810 1,358,810 CURRENT ASSETS: Cash and Cash Equivalents. . . . . . . . . . . . . 91,481 $10,000 101,481 Accounts Receivable (net). . . . . . . . . . . . . 667,518 667,518 Fuel . . . . . . . . . . . . . . . . . . . . . . . 224,967 224,967 Materials and Supplies . . . . . . . . . . . . . . 263,613 263,613 Accrued Utility Revenues . . . . . . . . . . . . . 189,191 189,191 Prepayments. . . . . . . . . . . . . . . . . . . . 81,366 81,366 TOTAL CURRENT ASSETS . . . . . . . . . . . . . 1,518,136 10,000 1,528,136 REGULATORY ASSETS. . . . . . . . . . . . . . . . . . 1,817,540 1,817,540 DEFERRED CHARGES . . . . . . . . . . . . . . . . . . 288,011 288,011 TOTAL . . . . . . . . . . . . . . . . $16,615,346 $10,000 $16,625,346
The Pro Forma Adjustments are shown on Page 7 of these Financial Statements. FINANCIAL STATEMENTS PAGE 6 AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEET DECEMBER 31, 1997 (UNAUDITED)
Pro Forma Per Books Adjustments Pro Forma (in thousands) CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common Stock - Par Value $6.50; Shares Authorized - 300,000,000; Shares Issued - 198,989,981, of which 8,999,992 were held in the treasury. . . . . . . . . . . . . . . . . $ 1,293,435 $ 1,293,435 Paid-in Capital. . . . . . . . . . . . . . . . . . 1,778,782 1,778,782 Retained Earnings. . . . . . . . . . . . . . . . . 1,605,017 1,605,017 Total Common Shareholders' Equity. . . . . . . 4,677,234 4,677,234 Cumulative Preferred Stocks of Subsidiaries: Not Subject to Mandatory Redemption. . . . . . . 46,724 46,724 Subject to Mandatory Redemption. . . . . . . . . 127,605 127,605 Long-term Debt . . . . . . . . . . . . . . . . . . 5,129,463 $ 20,000 5,149,463 TOTAL CAPITALIZATION . . . . . . . . . . . . . 9,981,026 20,000 10,001,026 OTHER NONCURRENT LIABILITIES . . . . . . . . . . . . 1,246,537 1,246,537 CURRENT LIABILITIES: Long-term Debt Due Within One Year . . . . . . . . 294,454 (10,000) 284,454 Short-term Debt. . . . . . . . . . . . . . . . . . 555,075 555,075 Accounts Payable . . . . . . . . . . . . . . . . . 353,256 353,256 Taxes Accrued. . . . . . . . . . . . . . . . . . . 380,771 380,771 Interest Accrued . . . . . . . . . . . . . . . . . 76,361 76,361 Obligations Under Capital Leases . . . . . . . . . 101,089 101,089 Other. . . . . . . . . . . . . . . . . . . . . . . 322,687 322,687 TOTAL CURRENT LIABILITIES. . . . . . . . . . . 2,083,693 (10,000) 2,073,693 DEFERRED INCOME TAXES. . . . . . . . . . . . . . . . 2,560,921 2,560,921 DEFERRED INVESTMENT TAX CREDITS. . . . . . . . . . . 376,250 376,250 DEFERRED GAIN ON SALE AND LEASEBACK - ROCKPORT PLANT UNIT 2. . . . . . . . . . . . . . . 231,320 231,320 DEFERRED CREDITS . . . . . . . . . . . . . . . . . . 135,599 135,599 TOTAL . . . . . . . . . . . . . . . . $16,615,346 $ 10,000 $16,625,346
The Pro Forma Adjustments are shown on Page 7 of these Financial Statements. FINANCIAL STATEMENTS PAGE 7 AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEET DECEMBER 31, 1997 PRO FORMA ADJUSTMENTS
Debit Credit (in thousand) 1) Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,000 Long-term Debt . . . . . . . . . . . . . . . . . . . . . . . $20,000 To record the issuance of $20,000,000 long-term debt by American Electric Power Service Corporation. 2) Long-term Debt Due Within One Year . . . . . . . . . . . . . . $10,000 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000
To record the retirement of $10,000,000, 5.29% Notes Payable to Banks due October 14, 1998 at a price of 100% by American Electric Power Service Corporation. FINANCIAL STATEMENTS PAGE 7A AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENT OF INCOME TWELVE MONTHS ENDED DECEMBER 31, 1997 PRO FORMA ADJUSTMENTS
Increase (Decrease) (in thousands) Interest on Long-term Debt @ 6-1/2%* = $1,300 Interest on Notes Payable to Banks @ 5.29% = (529) Federal Income Taxes @ 35% = (270)
To reflect the pro forma changes in interest charges associated with the proposed transactions and the related federal income tax effect. * Rate assumed solely for the purpose of these Pro Forma Financial Statements. FINANCIAL STATEMENTS PAGE 8 AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENT OF INCOME TWELVE MONTHS ENDED DECEMBER 31, 1997 (UNAUDITED)
Pro Forma Per Books Adjustments Pro Forma (in thousands) OPERATING REVENUES . . . . . . . . . . . . . $6,161,368 $6,161,368 OPERATING EXPENSES: Fuel . . . . . . . . . . . . . . . . . . . 1,627,066 1,627,066 Purchased Power. . . . . . . . . . . . . . 416,266 416,266 Other Operation. . . . . . . . . . . . . . 1,227,368 1,227,368 Maintenance. . . . . . . . . . . . . . . . 483,268 483,268 Depreciation and Amortization. . . . . . . 591,071 591,071 Taxes Other Than Federal Income Taxes. . . 490,595 490,595 Federal Income Taxes . . . . . . . . . . . 341,280 $(270) 341,010 TOTAL OPERATING EXPENSES. . . . . . 5,176,914 (270) 5,176,644 OPERATING INCOME . . . . . . . . . . . . . . 984,454 270 984,724 NONOPERATING INCOME. . . . . . . . . . . . . 59,572 59,572 INCOME BEFORE INTEREST CHARGES AND PREFERRED DIVIDENDS. . . . . . . . . . . . 1,044,026 270 1,044,296 INTEREST CHARGES . . . . . . . . . . . . . . 405,815 771 406,586 PERFERRED STOCK DIVIDEND REQUIREMENTS OF SUBSIDIARIES. . . . . . . . . . . . . . 17,831 17,831 INCOME BEFORE EXTRAOORDINARY ITEM. . . . . . 620,380 (501) 619,879 EXTRAORDINARY LOSS - U.K. WINDFALL TAX . . . (109,419) (109,419) NET INCOME . . . . . . . . . . . . . . . . . $ 510,961 $(501) $ 510,460 AVERAGE NUMBER OF SHARES OUTSTANDING . . . . 189,039 189,039 EARNINGS PER SHARE: Before Extraordinary Item. . . . . . . . . $3.28 $3.28 Extraordinary Loss . . . . . . . . . . . . (0.58) (0.58) Net Income . . . . . . . . . . . . . . . . $2.70 $2.70 CASH DIVIDENDS PAID PER SHARE. . . . . . . . $2.40 $2.40
The Pro Forma Adjustments are shown on Page 7A of these Financial Statements. FINANCIAL STATEMENTS PAGE 9 AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENT OF RETAINED EARNINGS TWELVE MONTHS ENDED DECEMBER 31, 1997 (UNAUDITED)
(in thousands) BALANCE AT BEGINNING OF PERIOD . . . . . . . . . . . . . . . . . . . . $1,547,746 NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 510,961 DEDUCTIONS: Cash Dividends Declared. . . . . . . . . . . . . . . . . . . . . . . 453,453 Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 BALANCE AT END OF PERIOD . . . . . . . . . . . . . . . . . . . . . . . $1,605,017
-----END PRIVACY-ENHANCED MESSAGE-----