-----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, PVjIhJZ09d/XNDR1qG5lwmzqUzfY2Ci+7teYmeMkM3/WrSvty44SpHS+ud5OKjDK N3C/qNi2hHykA9Fx8+81Lw== 0000073960-95-000013.txt : 19951106 0000073960-95-000013.hdr.sgml : 19951106 ACCESSION NUMBER: 0000073960-95-000013 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951103 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: 95587180 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 September 30, 1995 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: 216-384-5100 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 November 3, 1995. 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 8-10 Part II.Other Information PART I. FINANCIAL INFORMATION OHIO EDISON COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, -------------------- --------------------- 1995 1994 1995 1994 -------- -------- -------- -------- (In thousands, except per share amounts) OPERATING REVENUES $667,013 $614,390 $1,848,585 $1,801,066 -------- -------- ---------- ---------- OPERATING EXPENSES AND TAXES: Fuel and purchased power 126,589 109,199 346,690 340,826 Nuclear operating costs 73,083 80,021 225,049 235,575 Other operating costs 116,648 102,431 324,546 324,905 -------- -------- ---------- ---------- Total operation and maintenance expenses 316,320 291,651 896,285 901,306 Provision for depreciation 61,473 58,579 174,238 164,918 Amortization of net regulatory assets 6,382 (1,244) 13,009 (7,214) General taxes 63,436 61,255 183,745 180,361 Income taxes 60,413 52,332 149,092 139,405 -------- -------- ---------- ---------- Total operating expenses and taxes 508,024 462,573 1,416,369 1,378,776 -------- -------- ---------- ---------- OPERATING INCOME 158,989 151,817 432,216 422,290 OTHER INCOME 1,190 5,032 8,016 10,821 -------- -------- ---------- ---------- TOTAL INCOME 160,179 156,849 440,232 433,111 -------- -------- ---------- ---------- NET INTEREST AND OTHER CHARGES: Interest on long-term debt 61,619 65,638 185,355 195,767 Deferred nuclear unit interest - (2,124) (4,250) (6,383) Allowance for borrowed funds used during construction and capitalized interest (1,595) (1,224) (3,898) (3,796) Other interest expense 5,946 5,167 17,708 13,124 Subsidiary's preferred stock dividend requirements 1,157 1,167 3,618 4,204 -------- -------- ---------- ---------- Net interest and other charges 67,127 68,624 198,533 202,916 -------- -------- ---------- ---------- NET INCOME 93,052 88,225 241,699 230,195 PREFERRED STOCK DIVIDEND REQUIREMENTS 5,349 5,356 16,245 16,316 -------- -------- ---------- ---------- EARNINGS ON COMMON STOCK $ 87,703 $ 82,869 $ 225,454 $ 213,879 ======== ======== ========== ========== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 143,750 143,310 143,636 143,168 ======== ======== ========== ========== EARNINGS PER SHARE OF COMMON STOCK $ .61 $ .58 $ 1.57 $ 1.49 ===== ===== ====== ====== DIVIDENDS DECLARED PER SHARE OF COMMON STOCK $.375 $.375 $1.125 $1.125 ===== ===== ====== ====== The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
- 1 - OHIO EDISON COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited)
September 30, December 31, 1995 1994 ------------- ------------ (In thousands) ASSETS ------ UTILITY PLANT: In service, at original cost $8,602,933 $8,518,050 Less--Accumulated provision for depreciation 3,044,512 2,910,587 ---------- ---------- 5,558,421 5,607,463 ---------- ---------- Construction work in progress- Electric plant 157,965 174,970 Nuclear fuel 22,316 52,470 ---------- ---------- 180,281 227,440 ---------- ---------- 5,738,702 5,834,903 ---------- ---------- OTHER PROPERTY AND INVESTMENTS: Letter of credit collateralization 277,763 277,763 Other 243,274 197,546 ---------- ---------- 521,037 475,309 ---------- ---------- CURRENT ASSETS: Cash and cash equivalents 112,566 23,291 Receivables- Customers (less accumulated provisions of $2,367,000 and $2,517,000, respectively, for uncollectible accounts) 262,685 254,515 Other 45,586 54,713 Materials and supplies, at average cost- Fuel 33,693 40,528 Other 72,391 81,809 Prepayments 66,111 71,836 ---------- ---------- 593,032 526,692 ---------- ---------- DEFERRED CHARGES: Regulatory assets 1,967,495 2,005,333 Unamortized sale and leaseback costs 104,134 106,883 Other 51,570 44,844 ---------- ---------- 2,123,199 2,157,060 ---------- ---------- $8,975,970 $8,993,964 ========== ==========
- 2 - OHIO EDISON COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited)
September 30, December 31, 1995 1994 ------------- ------------ (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 725,646 724,848 Retained earnings 453,484 389,600 Unallocated employee stock ownership plan common stock - 8,774,025 and 9,076,489 shares, respectively (164,729) (170,376) ---------- ---------- Total common stockholders' equity 2,387,526 2,317,197 Preferred stock- Not subject to mandatory redemption 277,335 277,335 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 Long-term debt 2,877,421 3,166,593 ---------- ---------- 5,633,187 5,852,030 ---------- ---------- CURRENT LIABILITIES: Currently payable long-term debt 447,300 227,496 Short-term borrowings 89,735 174,642 Accounts payable 89,116 100,884 Accrued taxes 120,619 140,629 Accrued interest 61,970 65,743 Other 212,645 152,856 ---------- ---------- 1,021,385 862,250 ---------- ---------- DEFERRED CREDITS: Accumulated deferred income taxes 1,797,609 1,799,324 Accumulated deferred investment tax credits 217,528 223,827 Property taxes 108,813 106,458 Other 197,448 150,075 ---------- ---------- 2,321,398 2,279,684 ---------- ---------- COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 2) ---------- ---------- $8,975,970 $8,993,964 ========== ========== 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 Nine Months Ended September 30, September 30, -------------------- ------------------- 1995 1994 1995 1994 -------- -------- -------- -------- (In thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 93,052 $ 88,225 $241,699 $230,195 Adjustments to reconcile net income to net cash from operating activities- Provision for depreciation 61,473 58,579 174,238 164,918 Nuclear fuel and lease amortization 19,569 19,028 51,769 51,216 Deferred income taxes, net 7,185 8,499 17,893 23,689 Investment tax credits, net (2,287) (2,009) (6,299) (6,027) Allowance for equity funds used during construction 1,315 (1,094) - (4,160) Deferred fuel costs, net 65 (6,423) 6,082 (6,105) Receivables (6,434) 23,956 957 27,617 Materials and supplies 12,527 3,697 16,253 6,268 Accounts payable (5,577) (47,304) (5,491) (12,822) Other 98,151 47,426 81,174 47,948 -------- -------- -------- -------- Net cash provided from operating activities 279,039 192,580 578,275 522,737 -------- -------- -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: New Financing- Long-term debt 126,397 93,167 253,620 324,964 Short-term borrowings, net - 136,758 - 125,535 Redemptions and Repayments- Preferred stock - 6,000 - 56,362 Long-term debt 121,860 216,782 329,155 356,256 Short-term borrowings, net 141,215 - 84,907 - Dividend Payments- Common stock 47,882 54,684 163,267 163,101 Preferred stock 5,329 5,533 16,063 16,678 -------- -------- -------- -------- Net cash used for financing activities 189,889 53,074 339,772 141,898 -------- -------- -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Property additions 35,055 60,895 128,991 206,265 Letter of credit collateralization deposit - 77,763 - 277,763 Other 1,896 1,849 20,237 9,351 -------- -------- -------- -------- Net cash used for investing activities 36,951 140,507 149,228 493,379 -------- -------- -------- -------- Net increase (decrease) in cash and cash equivalents 52,199 (1,001) 89,275 (112,540) Cash and cash equivalents at beginning of period 60,367 48,151 23,291 159,690 -------- -------- -------- -------- Cash and cash equivalents at end of period $112,566 $ 47,150 $112,566 $ 47,150 ======== ======== ======== ======== 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) 1994 Annual Report to Stockholders. The results of operations are not intended to be indicative of results of operations for any future period. 2 - COMMITMENTS, GUARANTEES AND CONTINGENCIES: Construction Program -- The Company and its wholly owned subsidiary, Pennsylvania Power Company (Companies), currently forecast expenditures of approximately $800,000,000 for property additions and improvements from 1995-1999, of which approximately $180,000,000 is applicable to 1995. The Companies' nuclear fuel investments are expected to be approximately $149,000,000 during the 1995-1999 period, of which approximately $17,000,000 is applicable to 1995. 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 September 30, 1995, the Companies' share of the guarantees were $72,851,000. 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 $70,000,000 for the period 1995 through 1999, which is included in the construction forecast under "Construction Program." The Clean Air Act Amendments of 1990 required significant reductions of sulfur dioxide (SO2) and nitrogen oxides (NOx) from the Companies' coal-fired generating units by 1995 and additional - 5 - OHIO EDISON COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd) (Unaudited) emission reductions by 2000. SO2 reductions for the years 1995 through 1999 are being achieved by burning lower-sulfur fuel, generating more electricity from lower-emitting plants and/or purchasing emission allowances. Equipment already installed provides NOx reductions sufficient to meet the 1995 requirements. 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 Company continues to evaluate its 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. The Pennsylvania Department of Environmental Resources has issued regulations dealing with the storage, treatment, transportation and disposal of residual waste such as coal ash and scrubber sludge. These regulations impose additional requirements relating to permitting, ground water monitoring, leachate collection systems, closure, liability insurance and operating matters. The Companies are considering various compliance options but are presently unable to determine the ultimate increase in capital and operating costs at existing sites. 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 September 30, 1995, and the related consolidated statements of income and cash flows for the three-month and nine-month periods ended September 30, 1995 and 1994. 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, 1994, 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, 1994, is fairly stated, in all material respects, in relation to the balance sheet from which it has been derived. ARTHUR ANDERSEN LLP Cleveland, Ohio November 3, 1995 - 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 $1.57 per share for the nine month period ended September 30, 1995, from $1.49 per share in the same period of 1994. Earnings increased to $.61 per share in the third quarter of 1995 compared to $.58 per share for the same period last year. The improved earnings were due to record retail sales for the quarter and year to date periods in conjunction with continuing cost reductions that partially offset the increased maintenance expenses discussed below. During the first nine months of 1995, retail kilowatt-hour sales increased 3.5% over the same period last year. Residential and commercial sales increased 2.9% and 2.0%, respectively, during this period. An improving local economy pushed industrial sales up 5.0% compared to the nine month period ended September 30, 1994. The Company began supplying 300 megawatts of power to another utility in the second quarter of 1995 under a short-term contract that expires at the end of 1995. This contract contributed to a 16.6% increase in sales to other utilities during the period. This increase coupled with the higher level of retail sales caused total kilowatt-hour sales to increase by 5.8% during the first nine months of 1995. Warmer than normal temperatures during the third quarter of 1995 and an improving local economy contributed to a 9.9% increase in retail kilowatt-hour sales. Residential and commercial sales increased 13.7% and 5.1%, respectively, compared to the same period last year. A 10.7% increase in industrial sales was favorably impacted by the resumption of operations by two major customers that had reduced operations in 1994. Excluding sales to these customers, industrial sales were 4.9% higher than last year's level. Sales to other utilities increased 43.0% during the period as a result of the short-term contract discussed above. Total kilowatt-hour sales were up 15.4% during the quarter. Fuel and purchased power costs were higher during the three and nine months ended September 30, 1995 due primarily to increased sales. Nuclear expenses were lower in the first nine months of 1995 than they were last year because of corrective maintenance work that was being performed during the scheduled refueling outage at the Perry Plant in 1994. Expenses associated with scheduled maintenance outages at other generating units contributed to the increase in other operating costs during the third quarter of 1995, compared to last year. - 8 - OHIO EDISON COMPANY MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION (Cont'd) Increased depreciation charges in 1995 reflect a higher level of depreciable utility plant combined with an increase in the accrual for nuclear decommissioning costs. The change in amortization of net regulatory assets resulted from the absence of credits in 1995 compared to last year due to limitations contained in the Company's Rate Stabilization and Service Area Development Program authorized by the Public Utilities Commission of Ohio (PUCO) in 1992. Amortization of these credits will continue in the fourth quarter of 1995 as a result of the Company's Rate Reduction and Economic Development Plan which is discussed below. In addition, the Company discontinued deferring postretirement benefits in the third quarter of 1995 due to the rate plan filing. Overall, interest costs were lower during the first nine months of 1995 than the same period last year. Interest on long- term debt decreased due to refinancing and redemption of higher- cost debt that occurred subsequent to September 30, 1994. Other interest expense increased compared to last year due primarily to higher levels of short-term borrowings. The Company also discontinued deferring nuclear unit interest in the third quarter of 1995 in connection with its rate plan filing. Capital Resources and Liquidity The Companies have continuing cash requirements for planned capital expenditures and debt maturities. During the fourth quarter of 1995, capital requirements for property additions and capital leases are expected to be about $65,000,000, including $4,000,000 for nuclear fuel. The Companies have additional cash requirements of approximately $13,000,000 to meet maturities of long-term debt during the remainder of 1995. These cash requirements are expected to be satisfied with internal cash and/or short-term credit arrangements. As of September 30, 1995, the Companies had about $113,000,000 of cash and temporary investments. Of that amount, $74,250,000 was held in escrow for the redemption of pollution control obligations discussed below. The Companies also had approximately $90,000,000 of short-term indebtedness. The Company had the capability to borrow approximately $127,000,000 as of September 30, 1995 through OES Fuel credit facilities. In addition, the Companies had $52,000,000 of unused short-term bank lines of credit, and $45,000,000 of bank facilities that provide for borrowings on a short-term basis at the banks' discretion. OES Capital had approximately $30,000,000 of unused, short-term borrowing capability as of September 30, 1995. - 9 - OHIO EDISON COMPANY MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION (Cont'd) In July 1995, the Company issued $60,000,000 of 7.05% pollution control notes under a forward refunding arrangement. The proceeds from that issue were used to refund $60,000,000 of 10.5% pollution control notes on October 1, 1995. The Company also repaid at maturity $75,000,000 of 9.44% term notes subsequent to the end of the third quarter. During September 1995, Penn Power issued $14,250,000 of 6% pollution control notes. The proceeds from that issue were used to redeem a like amount of 8.125% pollution control notes on October 1, 1995. Penn Power also optionally redeemed $6,500,000 of 7.625% first mortgage bonds during the third quarter. During October 1995, the Company, through the Ohio Edison Financing Trust, issued $120,000,000 of 9% Trust Preferred Capital Securities. Proceeds from that issue will be used to retire $116,370,000 of preferred stock with a weighted average dividend rate of 7.65%. This refinancing is expected to result in annualized cash savings of approximately $2,200,000 per year. On October 18, 1995, the PUCO approved the Company's Comprehensive Rate Reduction and Economic Development Plan (Plan). The Plan is designed to enhance and accelerate economic development within the Company's service area and to assure the Company's customers of long-term competitive pricing for energy services. The Plan, which is effective November 1, 1995, provides for freezing the Company's base electric rates until January 1, 2006, at which time base electric rates will be reduced by approximately $300,000,000, or 20 percent, on an annual basis. During the ten- year rate freeze period, which will remain in effect unless certain significant events occur, transition rate credits will be implemented for customers served under the Company's General Service-Large rates (primarily industrial customers). Also, the monthly customer charge will be reduced for customers served under the Company's General Service-Secondary and Residential rates. Taken together, these transition rate credits are expected to reduce operating revenues by approximately $600,000,000 during the ten-year rate freeze period. A major component of the Plan is the Company's commitment to reduce fixed costs during the ten-year period by implementing regulatory accounting modifications, such as accelerating depreciation of generating assets and increasing amortization of regulatory assets which are being recovered from customers. The Company has established aggressive targets to reduce costs and increase revenue opportunities through its performance initiatives program. Achieving those targets enables the Company to implement - 10 - OHIO EDISON COMPANY MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION (Cont'd) these accounting modifications and offer the transition rate credits during the Plan period, and preserve the opportunity to maintain a reasonable return to shareholders. The Plan includes a cap (based upon the most recent common equity return authorized for the Company by the PUCO) on the amount the Company may earn applicable to its common stockholders in any calendar year during the Plan period. If the cap is exceeded, such excess will be credited to customers in a future period. In connection with proceedings before the Federal Energy Regulatory Commission (FERC) between Penn Power and one of its municipal customers, both parties have filed proposals with the FERC requesting it to establish final terms. No ruling has yet been issued. Sales to this municipality were approximately $1,468,000 for the year 1994. - 11 - PART II. OTHER INFORMATION Item 1.Legal Proceedings Reference is made to "Item 3. Legal Proceedings" in the Company's Annual Report on Form 10-K for the year ended December 31, 1994, for a discussion of an adverse decision in a Central Area Power Coordination Group (CAPCO) suit against Westinghouse Electric Corporation. In September 1995, the United States Court of Appeals for the Third Circuit upheld the decision in an appeal by the CAPCO companies. 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 June 30, 1995. A report dated September 7, 1995, reported the filing of an application with the Public Utilities Commission of Ohio for authority to implement the Company's Comprehensive Rate Reduction and Economic Development Plan. 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. November 3, 1995 OHIO EDISON COMPANY ------------------- Registrant /s/ H. P. Burg ------------------------ H. P. Burg Senior Vice President and Chief Financial Officer 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 and No. 33-51139, the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 1995, which includes our report dated November 3, 1995, 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 November 3, 1995 EX-27 3
OPUR1 (Amounts in 1,000's, except earnings per share) Income tax expense includes $5,733,000 related to other income. 9-MOS DEC-31-1995 SEP-30-1995 PER-BOOK 5,738,702 521,037 593,032 2,123,199 0 8,975,970 1,373,125 560,917 453,484 2,387,526 40,000 328,240 2,877,421 0 0 89,735 441,354 0 0 5,946 2,805,748 8,975,970 1,848,585 154,825 1,267,277 1,416,369 432,216 8,016 440,232 198,533 241,699 16,245 225,454 161,570 185,355 578,275 1.57 1.57
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