-----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, M9lSZKqkZAWo+HaweK639TiBQYO/MLuiyEEy9zY3EHTvY9PyiAtX9xIu3eYuCAFK 6cWGpu4WoFgF4FP1ED370g== 0000073960-96-000006.txt : 19960814 0000073960-96-000006.hdr.sgml : 19960814 ACCESSION NUMBER: 0000073960-96-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960813 SROS: CSX SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: OHIO EDISON CO CENTRAL INDEX KEY: 0000073960 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 340437786 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-02578 FILM NUMBER: 96610244 BUSINESS ADDRESS: STREET 1: 76 S MAIN ST CITY: AKRON STATE: OH ZIP: 44308 BUSINESS PHONE: 2163845100 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ------------ ------------- Commission File Number 1-2578 OHIO EDISON COMPANY (Exact name of Registrant as specified in its charter) Ohio 34-0437786 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 76 South Main Street, Akron, Ohio 44308 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 330-384-5100 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 152,569,437 shares of common stock, $9 par value, outstanding as of August 13, 1996 OHIO EDISON COMPANY TABLE OF CONTENTS Pages Part I. Financial Information Consolidated Statements of Income 1 Consolidated Balance Sheets 2-3 Consolidated Statements of Cash Flows 4 Notes to Consolidated Financial Statements 5-6 Report of Independent Public Accountants 7 Management's Discussion and Analysis of Results of Operations and Financial Condition 8-9 Part II. Other Information PART I. FINANCIAL INFORMATION - ------------------------------ OHIO EDISON COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, -------------------- ----------------------- 1996 1995 1996 1995 ------ ------ ------ ------ (In thousands, except per share amounts) OPERATING REVENUES $599,317 $593,838 $1,210,953 $1,181,572 -------- -------- ---------- ---------- OPERATING EXPENSES AND TAXES: Fuel and purchased power 108,157 110,060 231,447 220,101 Nuclear operating costs 63,496 78,080 122,270 151,966 Other operating costs 97,470 101,055 198,343 207,898 -------- -------- ---------- ---------- Total operation and maintenance expenses 269,123 289,195 552,060 579,965 Provision for depreciation 89,438 55,899 172,729 112,765 Amortization of net regulatory assets 7,188 3,338 12,820 6,627 General taxes 61,140 60,752 125,099 120,309 Income taxes 44,796 45,240 90,127 88,679 -------- -------- ---------- ---------- Total operating expenses and taxes 471,685 454,424 952,835 908,345 -------- -------- ---------- ---------- OPERATING INCOME 127,632 139,414 258,118 273,227 OTHER INCOME 10,696 3,829 17,692 6,826 -------- -------- ---------- ---------- TOTAL INCOME 138,328 143,243 275,810 280,053 -------- -------- ---------- ---------- NET INTEREST AND OTHER CHARGES: Interest on long-term debt 52,803 61,805 109,338 123,736 Deferred nuclear unit interest - (2,125) - (4,250) Allowance for borrowed funds used during construction and capitalized interest (890) (989) (2,068) (2,303) Other interest expense 5,967 6,200 10,825 11,762 Subsidiaries' preferred stock dividend requirements 3,856 1,301 7,713 2,461 -------- -------- ---------- ---------- Net interest and other charges 61,736 66,192 125,808 131,406 -------- -------- ---------- ---------- NET INCOME 76,592 77,051 150,002 148,647 PREFERRED STOCK DIVIDEND REQUIREMENTS 3,124 5,537 6,249 10,896 -------- -------- ---------- ---------- EARNINGS ON COMMON STOCK $ 73,468 $ 71,514 $ 143,753 $ 137,751 ======== ======== ========== ========== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 144,027 143,638 143,987 143,579 ======== ======== ========== ========== EARNINGS PER SHARE OF COMMON STOCK $ .51 $ .50 $1.00 $ .96 ===== ===== ===== ===== DIVIDENDS DECLARED PER SHARE OF COMMON STOCK $.375 $.375 $ .75 $ .75 ===== ===== ===== ===== The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
- 1 - OHIO EDISON COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited)
June 30, December 31, 1996 1995 ------------ -------------- (In thousands) ASSETS ------ UTILITY PLANT: In service, at original cost $8,580,937 $8,556,722 Less--Accumulated provision for depreciation 3,155,290 3,051,148 ---------- ---------- 5,425,647 5,505,574 ---------- ---------- Construction work in progress- Electric plant 131,276 150,262 Nuclear fuel 9,633 39,613 ---------- ---------- 140,909 189,875 ---------- ---------- 5,566,556 5,695,449 ---------- ---------- OTHER PROPERTY AND INVESTMENTS: Letter of credit collateralization 277,763 277,763 Other 268,895 252,005 ---------- ---------- 546,658 529,768 ---------- ---------- CURRENT ASSETS: Cash and cash equivalents 5,092 29,830 Receivables- Customers (less accumulated provisions of $2,500,000 and $2,528,000, respectively, for uncollectible accounts) 255,095 274,692 Other 44,992 54,988 Materials and supplies, at average cost- Owned 62,411 68,829 Under Consignment 53,657 41,080 Prepayments 93,252 82,257 ---------- ---------- 514,499 551,676 ---------- ---------- DEFERRED CHARGES: Regulatory assets 1,757,179 1,786,543 Unamortized sale and leaseback costs 100,648 103,091 Property taxes 104,071 104,071 Other 53,111 53,336 ---------- ---------- 2,015,009 2,047,041 ---------- ---------- $8,642,722 $8,823,934 ========== ==========
- 2 - OHIO EDISON COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited)
June 30, December 31, 1996 1995 ----------- ------------ (In thousands) CAPITALIZATION AND LIABILITIES - ------------------------------ CAPITALIZATION: Common stockholders' equity- Common stock, $9 par value, authorized 175,000,000 shares- 152,569,437 shares outstanding $1,373,125 $1,373,125 Other paid-in capital 727,116 726,307 Retained earnings 506,970 471,095 Unallocated employee stock ownership plan common stock - 8,490,064 and 8,663,575 shares, respectively (158,978) (162,656) ---------- ---------- Total common stockholders' equity 2,448,233 2,407,871 Preferred stock- Not subject to mandatory redemption 160,965 160,965 Subject to mandatory redemption 25,000 25,000 Preferred stock of consolidated subsidiary- Not subject to mandatory redemption 50,905 50,905 Subject to mandatory redemption 15,000 15,000 Company obligated mandatorily redeemable preferred securities of subsidiary trust holding solely Company subordinated debentures 120,000 120,000 Long-term debt 2,749,863 2,786,256 ---------- ---------- 5,569,966 5,565,997 ---------- ---------- CURRENT LIABILITIES: Currently payable long-term debt 122,198 376,716 Short-term borrowings 246,965 119,965 Accounts payable 117,798 100,536 Accrued taxes 132,280 131,432 Accrued interest 55,272 57,462 Other 145,611 196,482 ---------- ---------- 820,124 982,593 ---------- ---------- DEFERRED CREDITS: Accumulated deferred income taxes 1,766,573 1,772,434 Accumulated deferred investment tax credits 207,021 213,876 Other 279,038 289,034 ---------- ---------- 2,252,632 2,275,344 ---------- ---------- COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 2) ---------- ---------- $8,642,722 $8,823,934 ========== ========== The accompanying Notes to Consolidated Financial Statements are an integral part of these balance sheets.
- 3 - OHIO EDISON COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, ------------------ ----------------- 1996 1995 1996 1995 ------ ------ ------ ------ (In thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 76,592 $ 77,051 $150,002 $148,647 Adjustments to reconcile net income to net cash from operating activities- Provision for depreciation 89,438 55,899 172,729 112,765 Nuclear fuel and lease amortization 13,274 17,940 25,511 32,200 Deferred income taxes, net 3,131 4,905 11,555 10,708 Investment tax credits, net (3,520) (2,006) (6,855) (4,012) Allowance for equity funds used during construction - (649) - (1,315) Deferred fuel costs, net (2,183) 1,521 (5,119) 6,017 Receivables (8,798) (19,113) 29,593 7,391 Materials and supplies (1,781) 3,220 (6,159) 3,726 Accounts payable 26,837 (4,563) 25,023 86 Other (58,861) (39,073) (49,574) (16,977) -------- -------- -------- -------- Net cash provided from operating activities 134,129 95,132 346,706 299,236 -------- -------- -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing- Long-term debt - 52,646 40,621 127,223 Short-term borrowings, net 127,957 72,089 127,000 56,308 Redemptions and Repayments- Preferred stock 176 - 847 - Long-term debt 192,953 64,258 339,820 207,295 Dividend Payments- Common stock 55,059 60,580 108,921 115,385 Preferred stock 2,875 5,333 6,235 10,734 -------- -------- -------- -------- Net cash used for financing activities 123,106 5,436 288,202 149,883 -------- -------- -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Property additions 32,507 39,731 76,232 93,936 Other 3,641 13,621 7,010 18,341 -------- -------- -------- -------- Net cash used for investing activities 36,148 53,352 83,242 112,277 -------- -------- -------- -------- Net increase (decrease) in cash and cash equivalents (25,125) 36,344 (24,738) 37,076 Cash and cash equivalents at beginning of period 30,217 24,023 29,830 23,291 -------- -------- -------- -------- Cash and cash equivalents at end of period $ 5,092 $ 60,367 $ 5,092 $ 60,367 ======== ======== ======== ======== The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
- 4 - OHIO EDISON COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1 - FINANCIAL STATEMENTS: The condensed consolidated financial statements reflect all normal recurring adjustments that, in the opinion of management, are necessary to fairly present results of operations for the interim periods. These statements should be read in conjunction with the consolidated financial statements and notes included in Ohio Edison Company's (Company) 1995 Annual Report to Stockholders. The results of operations are not intended to be indicative of results of operations for any future period. The sole assets of the subsidiary trust that is the obligor on the preferred securities included in the Company's capitalization are $123,711,350 principal amount of 9% Junior Subordinated Debentures of the Company due December 31, 2025. 2 - COMMITMENTS, GUARANTEES AND CONTINGENCIES: Construction Program -- The Company and its wholly owned subsidiary, Pennsylvania Power Company (Companies), currently forecast expenditures of approximately $650,000,000 for property additions and improvements from 1996-2000, of which approximately $142,000,000 is applicable to 1996. The Companies' nuclear fuel investments are expected to be approximately $180,000,000 during the 1996-2000 period, of which approximately $29,000,000 is applicable to 1996. Guarantees -- The Companies, together with the other Central Area Power Coordination Group companies, have each severally guaranteed certain debt and lease obligations in connection with a coal supply contract for the Bruce Mansfield Plant. As of June 30, 1996, the Companies' share of the guarantees were $60,417,000. The price under the coal supply contract, which includes certain minimum payments, has been determined to be sufficient to satisfy the debt and lease obligations. Environmental Matters -- Various federal, state and local authorities regulate the Companies with regard to air and water quality and other environmental matters. The Companies have estimated additional capital expenditures for environmental compliance of approximately $17,000,000 for the period 1996 through 2000, which is included in the construction forecast under "Construction Program." - 5 - The Companies are in compliance with the sulfur dioxide (SO2) and nitrogen oxides (NOx) reduction requirements under the Clean Air Act Amendments of 1990. SO2 reductions through the year 1999 are being achieved by burning lower-sulfur fuel, generating more electricity from lower-emitting plants, and/or purchasing emission allowances. Plans for complying with reductions required for the year 2000 and thereafter have not been finalized. The Environmental Protection Agency (EPA) is conducting additional studies which could indicate the need for additional NOx reductions from the Companies' Pennsylvania facilities by the year 2003. The cost of such reductions, if required, may be substantial. The Companies continue to evaluate their compliance plans and other compliance options. The Companies are required to meet federally approved SO2 regulations. Violations of such regulations can result in shutdown of the generating unit involved, and/or civil or criminal penalties of up to $25,000 for each day the unit is in violation. The EPA has an interim enforcement policy for SO2 regulations in Ohio that allows for compliance based on a 30-day averaging period. The EPA has proposed regulations that could change the interim enforcement policy, including the method of determining compliance with emission limits. The Companies cannot predict what action the EPA may take in the future with respect to the proposed regulations or the interim enforcement policy. Legislative, administrative and judicial actions will continue to change the way that the Companies must operate in order to comply with environmental laws and regulations. With respect to any such changes and to the environmental matters described above, the Companies expect that any resulting additional capital costs which may be required, as well as any required increase in operating costs, would ultimately be recovered from their customers. - 6 - REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To Ohio Edison Company: We have reviewed the accompanying consolidated balance sheet of Ohio Edison Company (an Ohio corporation) and subsidiaries as of June 30, 1996, and the related consolidated statements of income and cash flows for the three-month and six-month periods ended June 30, 1996 and 1995. These financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the financial statements referred to above for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated balance sheet and consolidated statement of capitalization of Ohio Edison Company and subsidiaries as of December 31, 1995, and the related consolidated statements of income, retained earnings, capital stock and other paid-in capital, cash flows and taxes for the year then ended (not presented separately herein). In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 1995, is fairly stated, in all material respects, in relation to the balance sheet from which it has been derived. ARTHUR ANDERSEN LLP Cleveland, Ohio August 9, 1996 - 7 - OHIO EDISON COMPANY MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION Results of Operations Earnings on common stock increased to $.51 per share in the second quarter of 1996 compared to $.50 per share for the same period last year. For the six-month period ended June 30, 1996, earnings increased to $1.00 per share from $.96 per share in 1995. The improved earnings were due to record second quarter and first half retail sales and the Companies' continuing cost control efforts. These six-month results include accelerated depreciation and amortization of nuclear and regulatory assets totaling approximately $82,000,000 under the Company's Rate Reduction and Economic Development Plan and Penn Power's Rate Stability and Economic Development Plan. For the quarter ended June 30, 1996, these amounts were approximately $46,000,000. The Company also discontinued deferral of postretirement benefits and nuclear unit interest expense in the third quarter of 1995 in accordance with its plan. During the first half of 1996, retail kilowatt-hour sales increased 6.1% over last year, producing a new sales record for any first-half in the Company's history. Residential and commercial sales were up 7.0% and 3.7%, respectively during the period. A 7.1% increase in industrial sales reflects the restart of operations by two major customers in the second half of 1995. Excluding sales to those customers, industrial sales rose 1.8% during the period. The Company began supplying 250 megawatts of power to another utility at the beginning of 1996 under a one-year contract, which was the principal reason for an 18.4% increase in sales to other utilities in the first half of 1996 compared to last year. This increase, coupled with the higher level of retail sales, contributed to an 8.4% increase in total kilowatt-hour sales during the period. Total kilowatt-hour sales were up 1.5% in the second quarter of 1996, with retail kilowatt-hour sales increasing 4.7% over the same period last year. Residential and commercial sales rose 2.4% and 3.4%, respectively, during the period. Industrial sales increased 7.4% during the second quarter of 1996, compared to the second quarter of 1995, while sales to other utilities were down 9.7%. Because of higher kilowatt-hour sales, the Companies spent more on fuel and purchased power during the first half of 1996, compared to last year. Reduced nuclear expenses during the three and six month periods principally reflect lower refueling outage cost levels in 1996. The comparative decreases in other operating costs reflect the Companies' continuing cost reduction efforts. The changes in depreciation and regulatory asset - 8 - amortization reflect accelerations under the regulatory plans discussed above. The comparative increases in other income are principally due to higher investment income in 1996 coupled with Penn Power's adjustment to the recoverable costs related to Perry Unit 2 since recovery is beginning sooner than originally anticipated through its rate stability plan. Interest costs continued to drop during the second quarter and first half of 1996 compared to last year. Interest on long-term debt decreased due to redemptions and refinancing of higher-cost debt that occurred subsequent to June 30, 1995. The Companies have reduced total outstanding debt by approximately $427,000,000 since June 30, 1995. Total Company and subsidiaries' preferred stock dividend requirements were relatively unchanged from last year's level, taking into account the preferred stock refinancing that occurred in the fourth quarter of 1995. Capital Resources and Liquidity The Companies have continuing cash requirements for planned capital expenditures and debt maturities. During the second half of 1996, capital requirements for property additions and capital leases are expected to be about $100,000,000, including $19,000,000 for nuclear fuel. The Companies have additional cash requirements of approximately $60,000,000 to meet maturities of long-term debt during the remainder of 1996. These requirements are expected to be satisfied with internal cash and/or short-term credit arrangements. The Company has made arrangements to borrow approximately $400,000,000, on a short-term basis, during the third quarter of 1996. These borrowings will partially fund a trust established to purchase a portion of the lease obligation bonds issued on behalf of lessors in the Company's Perry Unit 1 and Beaver Valley Unit 2 sale and leaseback transactions. The economic benefit resulting from the trust investment will effectively reduce the related lease costs to the Company. The short-term borrowings are expected to be ultimately refinanced through the issuance of first mortgage bonds by the Company. As of June 30, 1996, the Companies had about $5,000,000 of cash and temporary investments. The Companies also had $247,000,000 of short-term indebtedness. The Company had the capability to borrow approximately $62,000,000 as of June 30, 1996 through OES Fuel credit facilities. In addition, the Companies had $5,000,000 of unused short-term bank lines of credit, and $55,000,000 of bank facilities that provide for borrowings on a short-term basis at the banks' discretion. - 9 - Legislative proposals changing the structure of the electric utility industry are receiving attention in Ohio and Pennsylvania. In Ohio, House Bill 653 has been introduced which would allow retail customers to choose their electricity supplier beginning January 1, 1998. In Pennsylvania, three separate bills have been introduced and the Public Utility Commission has issued a Report and Recommendation to the Governor and General Assembly dealing with the implementation of electric utility competition in the State. Both the Ohio and Pennsylvania bills have provisions that allow for transition periods in which utilities would have an opportunity to reduce their potential stranded investment, similar to what the Companies are accomplishing through their regulatory plans. Numerous legislative proposals have been introduced in Congress as well. Distribution services would still be regulated in Ohio and Pennsylvania under the pending proposals. The Companies do not expect state or federal legislation dealing with these issues to be passed during the current sessions. PART II. OTHER INFORMATION - --------------------------- Item 4. Submission of Matters to a Vote of Security Holders --------------------------------------------------- (a) The annual meeting of stockholders was held on April 25, 1996. (b) At this meeting the following persons were elected to the Company's Board of Directors: Number of Votes ----------------------------------------------- Against or Broker For Withheld Abstentions Non-Votes ----------- --------- ----------- --------- D. C. Blasius 121,670,780 1,913,950 0 0 H. P. Burg 121,785,211 1,799,519 0 0 R. M. Carter 121,605,061 1,979,669 0 0 C. A. Cartwright 121,690,458 1,894,272 0 0 W. R. Holland 121,774,061 1,810,669 0 0 R. L. Loughhead 121,660,086 1,924,644 0 0 R. W. Maier 121,581,531 2,003,199 0 0 G. H. Meadows 121,676,000 1,908,730 0 0 P. J. Powers 121,705,290 1,879,440 0 0 C. W. Rainger 121,783,799 1,800,931 0 0 G. M. Smart 121,789,855 1,794,875 0 0 J. T. Williams, Sr. 121,729,507 1,855,223 0 0 - 10 - (c) At this meeting the appointment of Arthur Andersen LLP, independent public accountants as auditors for the year 1996 was ratified: Number of Votes ------------------------------------------------- Against or Broker For Withheld Abstentions Non-Votes ----------- ---------- ----------- --------- 120,563,059 1,451,469 1,570,202 0 (d) At this meeting a shareholder proposal to disallow proxies granting discretionary voting powers for any issue placed before stockholders was rejected: Number of Votes ------------------------------------------------- Against or Broker For Withheld Abstentions Non-Votes ----------- ---------- ----------- ---------- 16,502,740 83,654,301 6,194,795 17,232,894 Item 6. Exhibits and Reports on Form 8-K -------------------------------- (a) Exhibits Exhibit Number ------- 15 Letter from independent public accountants. Pursuant to paragraph (b)(4)(iii)(A) of Item 601 of Regulation S-K, the Company has not filed as an exhibit to this Form 10-Q any instrument with respect to long-term debt if the total amount of securities authorized thereunder does not exceed 10% of the total assets of the Company and its subsidiaries on a consolidated basis, but hereby agrees to furnish to the Commission on request any such documents. (b) Reports on Form 8-K The Company filed one report on Form 8-K since March 31, 1996. A report dated June 27, 1996, reported that the Pennsylvania Public Utility Commission had approved Pennsylvania Power Company's Rate Stability and Economic Development Plan. - 11 - SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. August 13, 1996 OHIO EDISON COMPANY ------------------- Registrant /s/ H. P. Burg ------------------------------ H. P. Burg Senior Vice President and Chief Financial Officer - 12 - EX-15 2 EXHIBIT 15 Ohio Edison Company 76 South Main Street Akron, Ohio 44308 Gentlemen: We are aware that Ohio Edison Company has incorporated by reference in previously filed Registration Statements No. 33-49135, No. 33- 49259, No. 33-49413, No. 33-51139, No. 333-01489 and No. 333-05277, the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 1996, which includes our report dated August 9, 1996, covering the unaudited interim consolidated financial statements contained therein. Pursuant to Rule 436(c) of Regulation C of the Securities Act of 1933, such report is not considered a part of the Registration Statements prepared or certified by our firm or a report prepared or certified by our firm within the meaning of Sections 7 and 11 of the Act. Very truly yours, ARTHUR ANDERSEN LLP Cleveland, Ohio August 9, 1996 - 1 - EX-27 3
OPUR1 (Amounts in 1,000's, except earnings per share) Income tax expense includes $6,725,000 related to other income. 6-MOS DEC-31-1996 JUN-30-1996 PER-BOOK 5,566,556 546,658 514,499 2,015,009 0 8,642,722 1,373,125 568,138 506,970 2,448,233 160,000 211,870 2,749,863 127,000 0 119,965 116,578 0 0 5,620 2,703,593 8,642,722 1,210,953 96,852 862,708 952,835 258,118 17,692 275,810 125,808 150,002 6,249 143,753 108,921 109,338 346,706 1.00 1.00
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