EX-99 60 0060.txt FINANCIAL STATEMENTS
THE CINCINNATI GAS & ELECTRIC COMPANY CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1999 (dollars in thousands, except per share amounts) The Union Light, The West The Cincinnati Gas Heat and Lawrenceburg Harrison Gas and Miami & Electric Company Power Company Gas Company Electric Company Power Corp. ------------------------------------------------------------------------------ OPERATING REVENUES Electric Non-affiliated companies $ 1,911,250 $ 206,103 $ - $ 563 $ - Affiliated companies 209,136 4,131 - - 22 Gas Non-affiliated companies 297,224 70,377 6,537 - - Affiliated companies 2,317 351 - - - ---------------- ------------- ------------ -------------- ----------- 2,419,927 280,962 6,537 563 22 OPERATING EXPENSES Fuel used in electric production 340,593 - - - - Gas purchased - Non-affiliated companies 134,199 34,266 3,532 - - Affiliated companies 883 424 - - - Purchased and exchanged power - - Non-affilitated companies 700,285 524 3 Affiliated companies 24,130 158,032 363 Operation and maintenance 376,684 38,611 1,277 92 - Depreciation and amortization 188,825 14,830 475 19 1 Taxes other than income taxes 207,731 4,136 278 13 3 ---------------- ------------- ------------ -------------- ----------- 1,973,330 250,823 5,562 490 4 OPERATING INCOME (LOSS) 446,597 30,139 975 73 18 EQUITY IN EARNINGS OF SUBSIDIARIES 14,902 - - - - MISCELLANEOUS - NET (1,259) (1,567) 12 - - INTEREST 94,522 6,114 124 - - ---------------- ------------- ------------ -------------- ----------- INCOME (LOSS) BEFORE TAXES 365,718 22,458 863 73 18 INCOME TAXES 132,142 10,184 314 27 6 ---------------- ------------- ------------ -------------- ----------- NET INCOME (LOSS) 233,576 12,274 549 46 12 PREFERRED DIVIDEND REQUIREMENT 856 - - - - ---------------- ------------- ------------ -------------- ----------- NET INCOME APPLICABLE TO COMMON STOCK $ 232,720 $ 12,274 $549 $46 $ 12
THE CINCINNATI GAS & ELECTRIC COMPANY CONSOLIDATING STATEMENT OF INCOME (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 1999 (dollars in thousands, except per share amounts) Consolidated Tri-State KO The Cincinnati Gas Improvement Co. Transmission Co. Eliminations & Electric Company ------------------------------------------------------------------ OPERATING REVENUES Electric Non-affiliated companies $ - $ - $ 2,678 $ 2,120,594 Affiliated companies - - (159,022) 54,267 Gas Non-affiliated companies - 253 (1) 374,390 Affiliated companies - 1,142 (2,187) 1,623 ------------- ------------- ------------ ------------- - 1,395 (158,532) 2,550,874 OPERATING EXPENSES Fuel used in electric production - - - 340,593 Gas purchased Non-affiliated companies - - - 171,997 Affiliated companies - - (1,307) - Purchased and exchanged power - - - Non-affiliated companies 955 701,767 Affiliated companies (158,395) 24,130 Operation and maintenance 194 906 (1,507) 416,257 Depreciation and amortization - 318 - 204,468 Taxes other than income taxes 11 21 - 212,193 ------------- ------------- ------------ ------------- 205 1,245 (160,254) 2,071,405 OPERATING INCOME (LOSS) (205) 150 1,722 479,469 EQUITY IN EARNINGS OF SUBSIDIARIES - - (14,902) - MISCELLANEOUS - NET 1,979 - (1,645) (2,480) INTEREST 623 - (1,646) 99,737 ------------- ------------- ------------ ------------- INCOME (LOSS) BEFORE TAXES 1,151 150 (13,179) 377,252 INCOME TAXES 298 59 646 143,676 ------------- ------------- ------------ ------------- NET INCOME (LOSS) 853 91 (13,825) 233,576 PREFERRED DIVIDEND REQUIREMENT - - - 856 ------------- ------------- ------------ ------------- NET INCOME APPLICABLE TO COMMON STOCK $853 $ 91 $ (13,825) $ 232,720
THE CINCINNATI GAS & ELECTRIC COMPANY CONSOLIDATING BALANCE SHEET DECEMBER 31, 1999 (dollars in thousands) The Union Light, The West The Cincinnati Gas Heat and Lawrenceburg Harrison Gas and Miami & Electric Company Power Company Gas Company Electric Company Power Corp. ------------------------------------------------------------------------------------- ASSETS CURRENT ASSETS Cash and cash equivalents $ 5,686 $ 3,641 $ 76 $ 107 $ 11 Restricted deposits 132 - - - - Notes receivable from affiliated companies 9,434 - - - - Accounts receivable - net 260,502 17,786 1,145 81 - Accounts receivable from affiliated companies 29,639 775 76 2 - Materials, supplies, and fuel - at average cost 91,302 7,654 43 - - Prepayments and other 35,305 219 3 - - Energy risk management current assets 63,926 - - - - ----------------- -------------- -------------- ----------------- ----------- 495,926 30,075 1,343 190 11 UTILITY PLANT - ORIGINAL COST In service Electric 4,652,445 222,035 - 590 563 Gas 620,909 173,011 16,318 - - Common 146,773 42,351 - - - ----------------- -------------- -------------- ----------------- ----------- 5,420,127 437,397 16,318 590 563 Accumulated depreciation 2,106,091 154,607 4,957 239 559 ----------------- -------------- -------------- ----------------- ----------- 3,314,036 282,790 11,361 351 4 Construction work in progress 138,763 13,761 702 3 - ----------------- -------------- -------------- ----------------- ----------- Total utility plant 3,452,799 296,551 12,063 354 4 OTHER ASSETS Regulatory assets 525,585 10,639 - - - Investments in consolidated subsidiaries 180,428 - - - - Energy Risk management non-current assets 7,368 - - - - Other 60,788 5,000 45 (8) 1 ----------------- -------------- -------------- ----------------- ----------- 774,169 15,639 45 (8) 1 $ 4,722,894 $ 342,265 $ 13,451 $ 536 $ 16
THE CINCINNATI GAS & ELECTRIC COMPANY CONSOLIDATING BALANCE SHEET (CONTINUED) DECEMBER 31, 1999 (dollars in thousands) Consolidated Tri-State KO The Cincinnati Gas Improvement Co. Transmission Co. Eliminations & Electric Company --------------------------------------------------------------------- ASSETS CURRENT ASSETS Cash and cash equivalents $ 33 $ - $ - $ 9,554 Restricted deposits - - - 132 Notes receivable from affiliated companies - - (9,434) - Accounts receivable - net 13 64 - 279,591 Accounts receivable from affiliated companies 750 29 (18,553) 12,718 Materials, supplies, and fuel - at average cost - - - 98,999 Prepayments and other - - - 35,527 Energy risk management current assets - - - 63,926 -------------- ------------- ------------ --------------- 796 93 (27,987) 500,447 UTILITY PLANT - ORIGINAL COST In service Electric - - - 4,875,633 Gas - 14,189 - 824,427 Common - - - 189,124 -------------- ------------- ------------ --------------- - 14,189 - 5,889,184 Accumulated depreciation - 13,134 - 2,279,587 -------------- ------------- ------------ --------------- - 1,055 - 3,609,597 Construction work in progress - - - 153,229 -------------- ------------- ------------ --------------- Total utility plant - 1,055 - 3,762,826 OTHER ASSETS Regulatory assets - - - 536,224 Investments in consolidated subsidiaries - - (180,428) - Energy risk management non-current assets - - - 7,368 Other 43,605 322 - 109,753 -------------- ------------- ------------ --------------- 43,605 322 (180,428) 653,345 $ 44,401 $ 1,470 $ (208,415) $ 4,916,618
THE CINCINNATI GAS & ELECTRIC COMPANY CONSOLIDATING BALANCE SHEET DECEMBER 31, 1999 (dollars in thousands) The Union Light, The West The Cincinnati Gas Heat and Lawrenceburg Harrison Gas and Miami & Electric Company Power Company Gas Company Electric Company Power Corp. -------------------------------------------------------------------------------- CAPITALIZATION AND LIABILITIES CURRENT LIABILITIES Accounts payable $ 243,599 $ 8,487 $ 902 $ - $ - Accounts payable to affiliated companies 62,647 20,122 148 45 1 Accrued taxes 134,905 739 196 9 3 Accrued interest 16,030 1,298 44 3 - Notes payable and other short-term obligations 234,702 - - - - Notes payable to affiliated companies 31,205 37,752 837 - - Long term debt due within one year - - - - - Energy risk management current liabilities 60,478 - - - - Other 21,259 4,062 140 7 - ----------------- ------------- ------------- --------------- ----------- 804,825 72,460 2,267 64 4 NON-CURRENT LIABILITIES Long term debt 1,130,159 74,557 1,200 - - Deferred income taxes 692,101 23,000 989 69 (37) Unamortized investment tax credits 100,498 3,961 186 10 - Accrued pension and other postretirement benefit costs 141,855 12,333 530 - - Amounts due to customers - income taxes - 11,308 301 5 38 Energy risk management non-current liabilities 57,644 - - - - Other 115,961 12,596 567 8 - ----------------- ------------- ------------- --------------- ----------- 2,238,218 137,755 3,773 92 1 Total liabilities 3,043,043 210,215 6,040 156 5 CUMULATIVE PREFERRED STOCK Not subject to mandatory redemption 20,686 - - - - COMMON STOCK EQUITY Common stock 762,136 - - - - Common stock of subsidiaries - 8,780 538 20 1 Paid-in capital 562,851 20,142 80 16 4 Retained earnings (deficit) 335,144 103,128 6,793 344 6 Accumulated other comprehensive income (loss) (966) - - - - ----------------- ------------- ------------- --------------- ----------- Total common stock equity 1,659,165 132,050 7,411 380 11 $ 4,722,894 $ 324,265 $ 13,451 $ 536 $ 16
THE CINCINNATI GAS & ELECTRIC COMPANY CONSOLIDATING BALANCE SHEET (CONTINUED) DECEMBER 31, 1999 (dollars in thousands) Consolidated Tri-State KO The Cincinnati Gas Improvement Co. Transmission Co. Eliminations & Electric Company --------------------------------------------------------------------- CAPITALIZATION AND LIABILITIES CURRENT LIABILITIES Accounts payable $ 58 $ 69 $ - $ 253,115 Accounts payable to affiliated companies - 847 (18,554) 65,256 Accrued taxes 251 64 2/ (49) 2/ 136,118 Accrued interest - - - 17,375 Notes payable and other short-term obligations - - - 234,702 Notes payable to affiliated companies - - (9,434) 60,360 Long term debt due within one year - - - - Energy risk management current liabilities - - - 60,478 Other - - - 25,468 ------------ -------------- ------------ -------------- 309 980 (28,037) 852,872 NON-CURRENT LIABILITIES Long term Debt 38,143 - (38,143) 1,205,916 Deferred income taxes 4,140 (94) - 720,168 Unamortized investment tax credits - - - 104,655 Accrued pension and other postretirement benefit costs - - - 154,718 Amounts due to customers - income taxes - - - 11,652 Energy risk management non-current liabilities - - - 57,644 Other 10 - - 129,142 ------------ -------------- ------------ -------------- 42,293 (94) (38,143) 2,383,895 Total liabilities 42,602 886 (66,180) 3,236,767 CUMULATIVE PREFERRED STOCK Not subject to mandatory redemption - - - 20,686 COMMON STOCK EQUITY Common stock - - - 762,136 Common stock of subsidiaries 25 - (9,364) - Paid-in capital - 531 (20,773) 562,851 Retained earnings (deficit) 1,774 53 (112,098) 335,144 Accumulated other comprehensive income (loss) - - - (966) ------------ -------------- ------------ -------------- Total common stock equity 1,799 584 (142,235) 1,659,165 $ 44,401 $ 1,470 $ (208,415) $4,916,618
THE CINCINNATI GAS & ELECTRIC COMPANY CONSOLIDATING STATEMENT OF CHANGES IN COMMON STOCK EQUITY DECEMBER 31, 1999 (dollars in thousands) The Union The West The Cincinnati Light, Heat Harrison Gas Gas & Electric and Power Lawrenceburg and Electric Miami Company Company Gas Company Company Power Corp. ------------------------------------------------------------------------ BALANCE AT DECEMBER 31, 1998 $ 1,666,443 $ 128,818 $ 7,240 $ 391 $17 Comprehensive income Net income 233,576 12,274 549 46 12 Other comprehensive income Minimum pension liability adjustment 158 - - - - ---------------- -------------- ------------- ------------ ------------ Comprehensive income total 233,734 12,274 549 46 12 Dividends on preferred stock (856) - - - - Dividends on common stock (250,100) (9,659) (398) (50) (15) Contribution from parent for reallocation of taxes 8,920 617 20 (7) (3) Other 1,024 - - - - ---------------- -------------- ------------- ------------ ------------ BALANCE AT DECEMBER 31, 1999 $ 1,659,165 $ 132,050 $ 7,411 $ 380 $ 11
THE CINCINNATI GAS & ELECTRIC COMPANY CONSOLIDATING STATEMENT OF CHANGES IN COMMON STOCK EQUITY (CONTINUED) DECEMBER 31, 1999 (dollars in thousands) Consolidated Tri-State KO The Cincinnati Improvement Transmission Gas & Electric Co. Co. Eliminations Company ------------------------------------------------------------ BALANCE AT DECEMBER 31, 1998 $ 946 $ 574 $ (137,986) $ 1,666,443 Comprehensive income Net income 843 91 (13,825) 233,576 Other comprehensive income Minimum pension liability adjustment - - - 158 ------------ ------------ -------------- ----------------- Comprehensive income total 853 91 (13,825) 233,734 Dividends on preferred stock - - (856) Dividends on common stock - (82) 10,204 (250,100) Contribution from parent for reallocation of taxes - 1 (628) 8,920 Other - - - 1,024 ----------- ------------ -------------- ----------------- BALANCE AT DECEMBER 31, 1999 $1,799 $ 584 $ (142,235) $ 1,659,165
THE CINCINNATI GAS & ELECTRIC COMPANY CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1999 (in thousands) The Union Light, The West The Cincinnati Gas Heat and Lawrenceburg Harrison Gas and & Electric Company Power Company Gas Company Electric Company ----------------------------------------------------------------- Operating Activities Net income $ 233,576 $ 12,274 $ 549 $ 46 Items providing or (using) cash currently: Depreciation and amortization 188,825 14,830 475 19 Deferred income taxes and investment tax credits - net 2,868 (738) 34 - Allowance for equity funds used during construction (2,510) (36) (19) - Equity in earnings of consolidated subsidiaries (14,902) - - - Regulatory assets - net 14,187 138 - - Unrealized (gain) loss from energy risk management activities (27,245) - - - Changes in current assets and current liabilities Restricted Deposits 1,041 - - - Accounts and notes receivable, less accumulated provisions for doubtful accounts 26,052 (5,099) 512 (27) Materials, supplies, and fuel 15,706 615 (26) - Accounts payable 20,747 7,720 378 7 Accrued taxes and interest (15,539) (3,138) (199) 12 Other items - net 22,397 5,971 - 8 --------------- ------------ ----------- ------------ Net cash provided by (used in) operating activities 465,203 32,537 1,704 65 Financing Activities Issuance of long-term debt - 19,818 - - Retirement of preferred stock (26) - - - Redemption of long-term debt (144,264) (20,000) - - Change in short-term debt 76,624 5,935 61 - Dividends on preferred stock (856) - - - Dividends on common stock (250,100) (9,659) (398) (50) --------------- ------------ ----------- ------------ Net cash provided by (used in) financing activities (318,622) (3,906) (337) (50) Investing Activities Construction expenditures (less allowance for equity funds used during construction) (164,384) (28,234) (1,367) (8) --------------- ------------ ----------- ------------ Net cash provided by (used in) investing activities (164,384) (28,234) (1,367) (8) Net increase (decrease) in cash and temporary cash investments (17,803) 397 - 7 Cash and temporary cash investments at beginning of period 23,489 3,244 76 100 --------------- ------------ ----------- ------------ Cash and temporary cash investments at end of period $ 5,686 $ 3,641 $ 76 $ 107
THE CINCINNATI GAS & ELECTRIC COMPANY CONSOLIDATING STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 1999 (in thousands) Consolidated Miami Tri-State KO The Cincinnati Gas Power Corp. Improvement Co. Transmission Co. Eliminations & Electric Company -------------------------------------------------------------------------------- Operating Activities Net income $ 12 $ 853 $ 91 $ (13,825) $ 233,576 Items providing or (using) cash currently: Depreciation and amortization 1 - 318 - 204,468 Deferred income taxes and investment tax credits - net - 270 (68) - 2,366 Allowance for equity funds used during construction - - - - (2,565) Equity in earnings of consolidated subsidiaries - - - 14,902 - Regulatory assets - net - - - - 14,325 Unrealized (gain)loss from energy risk management activities - - - - (27,245) Changes in current assets and current liabilities Restricted Deposits - - - - 1,041 Accounts and notes receivable, less accumulated provision for doubtful accounts 1 (731) 8 (3,040) 17,676 Materials, supplies, and fuel - - - - 16,295 Accounts payable 1 (218) (364) (5,809) 22,462 Accrued taxes and interest 1 (336) 20 646 (18,533) Other items - net (4) 1,278 45 (10,195) 19,500 ---------- ------------ ------------ ---------- ------------- Net cash provided by (used in) operating activities 12 1,116 50 (17,321) 483,366 Financing Activities Issuance of long-term debt - - - - 19,818 Retirement of preferred stock - - - - (26) Redemption of long-term debt - - - - (164,264) Change in short-term debt - - - 6,139 88,759 Dividends on preferred stock - - - - (856) Dividends on common stock (15) - (50) 10,172 (250,100) ---------- ------------ ------------ ---------- --------------- Net cash provided by (used in) financing activities (15) - (50) 16,311 (306,669) Investing Activities Construction expenditures (less allowance for equity funds used during construction) - (1,149) - 1,010 (194,132) ---------- ------------ ------------ ---------- --------------- Net cash provided by (used in) investing activities - (1,149) - 1,010 (194,132) Net increase (decrease) in cash and temporary cash investments (3) (33) - - (17,435) Cash and temporary cash investments at beginning of period 14 66 - - 26,989 ---------- ------------ ------------ ---------- --------------- Cash and temporary cash investments at end of period $ 11 $ 33 - - $ 9,554