-----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, T/4Qv97Szs/J2puetWW5BxR/OAb54hDAgfWZBEG6jiXNqXJXaNW+f4FKnTGpXoHY irehRa3G9ZLLlymgpDX6qg== 0000009548-99-000001.txt : 19990302 0000009548-99-000001.hdr.sgml : 19990302 ACCESSION NUMBER: 0000009548-99-000001 CONFORMED SUBMISSION TYPE: U-3A-2 PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990301 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANGOR HYDRO ELECTRIC CO CENTRAL INDEX KEY: 0000009548 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 010024370 STATE OF INCORPORATION: ME FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U-3A-2 SEC ACT: SEC FILE NUMBER: 069-00206 FILM NUMBER: 99553465 BUSINESS ADDRESS: STREET 1: 33 STATE ST CITY: BANGOR STATE: ME ZIP: 04401 BUSINESS PHONE: 2079455621 MAIL ADDRESS: STREET 1: PO BOX 932 CITY: BANGOR STATE: ME ZIP: 04401 U-3A-2 1 FORM U3A2-BANGOR HYDRO-ELECTRIC CO. (BODY) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM U-3A-2 File No. 69-206 Statement by Holding Company Claiming Exemption Under Rule U-3A-2 from the Provisions of the Public Utility Holding Company Act of 1935 BANGOR HYDRO-ELECTRIC COMPANY hereby files with the Securities and Exchange Commission pursuant to Rule 2, its statement claiming exemption as a holding company from the provisions of the Public Utilities Holding Company Act of 1935, and submits the following information: 1. Bangor Hydro-Electric Company (Bangor Hydro) is a Maine corporation having its principal place of business at 33 State Street, Bangor, Maine. Bangor Hydro is principally engaged in the generation, transmission, distribution and sale of electric energy in eastern Maine and serves approximately 106,000 customers. Penobscot Natural Gas Company, Inc. ("Penobscot Gas") is a corporation organized under Maine law in 1998. It was formed to be a general partner whose sole function is to own Bangor Hydro's interest in Bangor Gas Company, LLC ("Bangor Gas"). Bangor Gas is a limited liability company organized under Maine law in 1997. It was formed to be a local natural gas distribution company in the greater Bangor, Maine area. Bangor Gas has obtained all necessary regulatory approvals to provide such service and is currently in the process of constructing a gas distribution system in the Bangor area with the expectation of providing natural gas service in early 2000. Bangor Gas's address is 21 Main Street, Bangor, Maine. Penboscot Gas has the option to acquire through capital contribution up to fifty percent (50%) of Bangor Gas's capital stock, with the remainder held by Sempra Energy Utility Ventures. Bangor Energy Resale, Inc. ("Bangor Energy") is a corporation organized under Maine law in 1997. It was formed for a single purpose, to facilitate Bangor Hydro's use of a power sales agreement with Unitil Power Corp. (the "Unitil contract") as collateral for a bank loan. Under the arrangement (1) Bangor Hydro assigned the Unitil contract to Bangor Energy; (2) Bangor Energy purchases wholesale utility service from Bangor Hydro to allow Bangor Energy to perform the Unitil contract; (3) Bangor Energy borrowed money from lenders, assigning said lenders a security interest in the Unitil contract; and (4) Bangor Energy transferred the net proceeds of the loan to Bangor Hydro. The entire transaction was reviewed and approved by the Federal Energy Regulatory Commission and the Maine Public Utilities Commission. Bangor Energy's address is 33 State Street, Bangor, Maine. All of its capital stock is owned by Bangor Hydro. CareTaker, Inc. is a corporation organized under Maine law in 1997. It was formed to provide security alarm services on a retail basis to residential and commercial customers within Maine. CareTaker's address is 33 State Street, Bangor, Maine. All of its capital stock is owned by Bangor Hydro. Bangor Var Co., Inc. is a corporation organized under Maine law in 1990. It was formed to be a general partner whose sole function is to own a 50% interest in the Chester SVC Partnership, a partnership which owns the static var compensator electrical equipment which supports the Hydro Quebec Phase II transmission line. Bangor Var Co.'s address is 33 State Street, Bangor, Maine. All of its capital stock is owned by Bangor Hydro. East Branch Improvement Company is a water storage corporation organized under the laws of the State of Maine. It operates on the East Branch of the Penobscot River in Maine. Its capital stock consists of 3,029.25 shares of which Bangor Hydro owns 1,817.55 shares, the remaining 1,211.70 shares being owned by Great Northern Paper Company. East Branch Improvement Company's office is at 33 State Street, Bangor, Maine. Godfrey's Falls Dam Company is a Maine corporation having its office at 33 State Street, Bangor, Maine. All of its capital stock is owned by East Branch Improvement Company. Ownership of this corporation was acquired to permit future water storage development in the basin of the East Branch of the Penobscot River in the State of Maine. The Sawtelle Brook Dam & Improvement Company is a Maine corporation having its office at 33 State Street, Bangor, Maine. All of its capital stock is owned by East Branch Improvement Company. This corporation controls certain dams and water rights in the basin of the East Branch of the Penobscot River in Maine and was acquired to permit future water storage development in the East Branch basin. Sebois Dam Company is a Maine corporation organized to improve the navigation of certain of the Sebois waters which enter the Piscataquis River. It has the right to maintain dams for the driving of logs and lumber. It is presently an inactive corporation and has no income. All of its capital stock is owned by Bangor Hydro. Its address is 33 State Street, Bangor, Maine. Pleasant River Gulf Improvement Company is a corporation organized under Maine law. It is a water improvement company authorized by its charter to erect and maintain dams and to improve the flow of water in the West Branch of the Piscataquis River in Maine for the purpose of making the West Branch floatable and facilitating the driving of logs and lumber upon the same. It is presently an inactive corporation and has no income. All of its capital stock is owned by Bangor Hydro. Its address is 33 State Street, Bangor, Maine. Northeastern Company is an inactive corporation organized under Maine law. It was acquired to hold certain real and personal properties useful at the time of the acquisition thereof in the conduct of Bangor Hydro's business. These holdings have since been disposed of and the corporation has no present assets or liabilities. All of its capital stock is owned by Bangor Hydro. Its address is 33 State Street, Bangor, Maine. Eastern Development Company is an inactive corporation organized under Maine law. It was organized to acquire and hold certain properties for ultimate transfer to Bangor Hydro. All holdings have been disposed of and the corporation has no present assets or liabilities. Its address is 33 State Street, Bangor, Maine. Maine Electric Power Company, Inc. ("MEPCO") is a Maine corporation with its principal office at Edison Drive, Augusta, Maine, formed for the purpose of constructing, owning and operating a 345 KV transmission line between Wiscasset, Maine and the Maine-New Brunswick international border at Orient, Maine, where its lines connect with that portion of the interconnection constructed in the Province of New Brunswick by the New Brunswick Power Commission. (See File No. 704798). Bangor Hydro owns 14.188% of MEPCO'S common stock; the remainder of the stock is held by other Maine electric utility companies. Penobscot Hydro Co., Inc. ("PHC") is a corporation organized under Maine law in 1986 as a wholly owned subsidiary of Bangor Hydro, in connection with the project financing of the redevelopment of a hydroelectric generating facility on the Penobscot River in Howland and Enfield, Maine. In 1986 Bangor Hydro formed a partnership ("Bangor-Pacific Hydro Associates" or "Bangor-Pacific") with Pacific Lighting Energy Systems ("PLES"), a California corporation (the "West Enfield project") in order to finance the $45,000,000 redevelopment of Bangor Hydro's existing hydroelectric facility. Bangor Hydro transferred its interest in the facility to Bangor-Pacific, and purchases all the power from the facility pursuant to a long-term contract. Prior to the closing of the financing, Bangor Hydro transferred its 50% interest in the partnership to PHC. The entire transaction was reviewed and approved by the Maine Public utilities Commission. Neither Bangor Energy Resale, Inc., CareTaker, Inc., Bangor Var Co. Inc., East Branch Improvement Company, Godfrey's Falls Dam Company, The Sawtelle Brook Dam and Improvement Company, Northeastern Company, Eastern Development Company, Pleasant River Gulf Improvement Company, Sebois Dam Company, nor Penobscot Hydro Co. Inc. is a public utility. Bangor Gas Company, LLC is a natural gas utility, but did not provide service during 1998 to any customers and is not expected to provide service to any customers during 1999. 2. Bangor Hydro owns seven hydro-electric generating plants, one steam generating plant and four internal combustion generating plants, all located within its service area in the State of Maine. It also owns approximately 600 miles of transmission lines and approximately 3,600 miles of distribution lines, all being located within its service area in the State of Maine. A map of Bangor Hydro's service area indicating major transmission lines and the location of generating plants is attached hereto. In addition, Bangor Hydro has an approximate 7% ownership interest in Maine Yankee Atomic Power Company in Wiscasset, Maine, a nuclear generating facility, an 8.33% interest as a tenant in common with other utilities in Wyman Unit No. 4, a fossil fuel generating unit located in Yarmouth, Maine. As indicated above, MEPCO owns a 345 KV transmission line and PHC owns a 50% interest in a hydroelectric facility. 3. Bangor Hydro submits the following information with respect to its sales and purchases of electric energy during the calendar year 1998: (a) KWH of electric energy sold (at retail and wholesale): STATE KWH REVENUES ALL 1,911,022,949 $191,895,617 (b) KWH distributed at retail outside the State of Maine: None (c) KWH of electric energy sold at wholesale outside of Maine or at the State line sold through the New England Power Pool: STATE* KWH REVENUES Massachusetts 129,516,000 $2,422,661 New Hamshire 51,795,000 $11,715,655 Kentucky 7,397,000 $262,536 TOTAL 188,708,000 $14,400,852 (d) KWH purchased outside the State of Maine or at the State line: STATE* KWH EXPENSES Massachusetts 533,391,000 $14,870,644 New Hamshire 188,438,000 $4,830,646 New Brunswick 581,967,000 $12,375,293 Connecticut 184,713,000 $5,308,705 Texas 3,200,000 $79,600 TOTAL 1,491,708,000 $37,464,887 *-For purposes of this analysis, system purchases and sales are assumed to be made in the State that is the principal place of business of the wholesale purchaser or seller. 4. Bangor Hydro has no direct or indirect interest in an EWG or a foreign utility company. EXHIBIT A The consolidating statements of income and retained earnings of Bangor Hydro and its subsidiary companies for the calendar year 1998 together with consolidating balance sheets of Bangor Hydro and its subsidiary companies as of the close of the calendar year 1998 are attached hereto as Exhibit A. With the exception of MEPCO, Penobscot Hydro Co., Inc., Penobscot Gas and Bangor Var Co., Inc., during 1998 the subsidiaries referred to in item 1 above considered in the aggregate would not constitute a significant subsidiary and their income is not material in relation to the total enterprise. Consequently, financial statements for such subsidiaries are not consolidated. In the case of MEPCO, the Chester SVC Partnership, Bangor- Pacific and Bangor Gas, financial statements are not consolidated because Bangor Hydro or its wholly-owned subsidiaries do not own a majority interest. The 1998 financial statements for East Branch Improvement Company which includes investment in its wholly owned subsidiaries, Godfrey Falls Dam Company and Sawtelle Brook Dam & Improvement Co. are included in Exhibit A as are the 1998 financial statements for MEPCO, the Chester SVC Partnership, Bangor Gas and Bangor-Pacific. EXHIBIT B A Financial Data Schedule is attached as Exhibit B. EXHIBIT C No organizational chart is attached because Bangor Hydro has no relationship with any EWG or foreign utility company. Bangor Hydro has caused this statement to be executed on its behalf by its duly authorized officer this 1st day of March, 1999. BANGOR HYDRO-ELECTRIC COMPANY by /s/ Frederick S. Samp ------------------------- Frederick S. Samp Chief Financial Officer (Corporate Seal) Attest: /s/ Andrew Landry ----------------- Andrew Landry Corporate Clerk Name, title and address of officer to whom notices and correspondence concerning this statement should be addressed: Frederick S. Samp Chief Financial Officer Bangor Hydro-Electric Company 33 State Street P.O. Box 932 Bangor, Maine 04402 Bangor Hydro-Electric Company Consolidating Statement of Income For the Twelve Months Ended December 31, 1998
Bangor Penobscot Bangor Penobscot Bangor Energy Natural Hydro Hydro Var Resale Gas Elimins. Reclasses Totals Total Operating Revenue 182,285,520 1,234,600 0 0 0 (2,882,190) 14,506,077 195,144,007 ------------------------------------------------------------------------------------------- Operating Expenses: Fuel for Generation & Purchased Power 72,421,610 0 0 (5,024,287) 0 0 14,629,537 82,026,860 Other Operation & Maintenance 34,447,518 39 0 767 0 0 0 34,448,324 Depreciation and Amortization 9,749,229 0 0 0 0 0 0 9,749,229 Amortization of Seabrook Nuclear Unit 1,699,050 0 0 0 0 0 0 1,699,050 Amortization of Contract Buyouts 20,442,441 0 0 0 0 0 0 20,442,441 Taxes - 0 Property and Payroll 5,549,049 0 0 0 0 0 0 5,549,049 Federal and State Income 4,126,171 505,318 0 1,512,329 0 0 (50,532) 6,093,286 ------------------------------------------------------------------------------------------- Total Operating Expenses 148,435,068 505,357 0 (3,511,191) 0 0 14,579,005 160,008,239 ------------------------------------------------------------------------------------------- Operating Income 33,850,452 729,243 0 3,511,191 0 (2,882,190) (72,928) 35,135,768 ------------------------------------------------------------------------------------------- Other Income and (Deductions): Allowance for Equity Funds Used During Construction 430,028 0 0 0 0 0 0 430,028 Other, Net of Applicable Income Taxes 830,799 0 3,046 31,921 (58,271) (17,700) 72,928 862,723 ------------------------------------------------------------------------------------------- 1,260,827 0 3,046 31,921 (58,271) (17,700) 72,928 1,292,751 ------------------------------------------------------------------------------------------- Income Before Interest Expense 35,111,279 729,243 3,046 3,543,112 (58,271) (2,899,890) 0 36,428,519 ------------------------------------------------------------------------------------------- Interest Expense: Long-term Debt 21,665,252 0 0 1,240,769 0 0 0 22,906,021 Other 2,674,392 0 0 76,471 0 0 0 2,750,863 Allowance for Borrowed Funds Used During Construction (693,682) 0 0 0 0 0 0 (693,682) ------------------------------------------------------------------------------------------- 23,645,962 0 0 1,317,240 0 0 0 24,963,202 ------------------------------------------------------------------------------------------- Net Income 11,465,317 729,243 3,046 2,225,872 (58,271) (2,899,890) 0 11,465,317 ------------------------------------------------------------------------------------------- Preferred Dividend Accrual 1,244,488 ---------- 10,220,829 ========== Weighted Avg. No. of Shares Outstanding 7,363,424 ========== Earnings Per Common Share 1.39 ==========
BANGOR HYDRO-ELECTRIC COMPANY CONSOLIDATING BALANCE SHEET DECEMBER 31, 1998
Bangor Penobscot Bangor Penobscot Bangor Energy Natural ASSETS Hydro Hydro Var Resale Gas Elimins. Reclasses Totals INVESTMENT IN UTILITY PLANT: Electric Plant in Service 352,975,549 0 0 0 0 0 0 352,975,549 Less: Accumulated Depreciation & Amortization 101,633,446 0 0 0 0 0 0 101,633,446 ------------------------------------------------------------------------------------------- 251,342,103 0 0 0 0 0 0 251,342,103 Construction Work in Progress 7,664,607 0 0 0 0 0 6,265,333 13,929,940 ------------------------------------------------------------------------------------------- 259,006,710 0 0 0 0 0 6,265,333 265,272,043 Investments in Corporate Joint Ventures: Maine Yankee Atomic Power Co. 5,590,770 0 0 0 0 0 (152,250) 5,438,520 Maine Electric Power Co. 442,188 0 0 0 0 0 (3,435) 438,753 ------------------------------------------------------------------------------------------- 265,039,668 0 0 0 0 0 6,109,648 271,149,316 ------------------------------------------------------------------------------------------- OTHER INVESTMENTS 5,005,146 4,753,480 0 0 76,813 (3,953,453) 0 5,881,986 ------------------------------------------------------------------------------------------- FUNDS HELD BY TRUSTEE: 28,360,940 0 0 1,506,665 0 0 0 29,867,605 ------------------------------------------------------------------------------------------- CURRENT ASSETS: Cash & Cash Equivalents 1,267,502 1,838 111,003 1,565,603 0 0 0 2,945,946 Accounts Receivable, Net 18,010,789 0 0 23,743,661 0 (24,352,050) 155,684 17,558,084 Unbilled Revenue Receivable 12,086,003 0 0 0 0 0 0 12,086,003 Inventories, at Average Cost: 0 0 0 0 0 0 0 0 Materials and Supplies 2,909,219 0 0 0 0 0 0 2,909,219 Fuel Oil 16,233 0 0 0 0 0 0 16,233 Prepaid Expenses 527,480 0 0 0 0 0 601,779 1,129,259 Deferred Maine Yankee Refueling Cost 0 0 0 0 0 0 0 0 ------------------------------------------------------------------------------------------- Total Current Assets 34,817,226 1,838 111,003 25,309,264 0 (24,352,050) 757,463 36,644,744 ------------------------------------------------------------------------------------------- DEFERRED CHARGES: Investment in Seabrook Nuclear Project 28,668,879 0 0 0 0 0 0 28,668,879 Costs to Terminate Purchased Power Contracts 136,979,490 0 0 0 0 0 0 136,979,490 Maine Yankee Decommissioning Costs 50,054,620 0 0 0 0 0 0 50,054,620 Deferred Regulatory Assets 364,396 0 0 0 0 0 32,631,236 32,995,632 Demand-side Management Costs 778,742 0 0 0 0 0 0 778,742 Other 18,546,290 0 0 385,855 0 0 (6,265,332) 12,666,813 ------------------------------------------------------------------------------------------- Total Deferred Charges 235,392,417 0 0 385,855 0 0 26,365,904 262,144,176 ------------------------------------------------------------------------------------------- Total Assets 568,615,397 4,755,318 111,003 27,201,784 76,813 (28,305,503) 33,233,015 605,687,827 ===========================================================================================
BANGOR HYDRO-ELECTRIC COMPANY CONSOLIDATING BALANCE SHEET DECEMBER 31, 1998
Bangor Penobscot Bangor Penobscot Bangor Energy Natural Hydro Hydro Var Resale Gas Elimins. Reclasses Totals STOCKHOLDERS' INVESTMENT & LIABILITIES CAPITALIZATION: Common Stock Investment 118,864,092 1,547,882 62,721 2,225,871 116,979 (3,953,453) 0 118,864,092 Preferred Stock 4,734,000 0 0 0 0 0 0 4,734,000 Preferred Stock Subject to Mandatory Redemption Exclusive of Current Sinking Fund Requirements 7,604,150 0 0 0 0 0 0 7,604,150 Long-term Debt,Net of Current Portion 245,867,692 0 0 17,160,000 0 0 0 263,027,692 ------------------------------------------------------------------------------------------- Total Capitalization 377,069,934 1,547,882 62,721 19,385,871 116,979 (3,953,453) 0 394,229,934 ------------------------------------------------------------------------------------------- CURRENT LIABILITIES: Notes Payable-Banks 12,000,000 0 0 0 0 0 0 12,000,000 ------------------------------------------------------------------------------------------- Other Current Liabilities- Current Portion of Long-term Debt and Sinking Fund Requirements on Preferred Stock 22,369,119 0 0 4,740,000 0 0 0 27,109,119 Accounts Payable 36,164,886 4,849 0 1,476,209 0 (24,352,050) 601,779 13,895,673 Dividends Payable 294,593 0 0 0 0 0 0 294,593 Accrued Interest 3,408,997 0 0 65,372 0 0 0 3,474,369 Customers' Deposits 328,923 0 0 0 0 0 0 328,923 Deferred Revenue 0 0 0 0 0 0 0 0 Current Income Taxes Payable (21,664,534)(1,980,777)(1,671,037) 1,651,857 (43,243) 0 23,793,419 85,685 ------------------------------------------------------------------------------------------- Total Other Current Liabilities 40,901,984 (1,975,928)(1,671,037) 7,933,438 (43,243)(24,352,050) 24,395,198 45,188,362 ------------------------------------------------------------------------------------------- Total Current Liabilties 52,901,984 (1,975,928)(1,671,037) 7,933,438 (43,243)(24,352,050) 24,395,198 57,188,362 ------------------------------------------------------------------------------------------- DEFERRED CREDITS & RESERVES: Deferred Income Taxes - Seabrook 7,075,357 0 0 0 0 0 7,804,884 14,880,241 Other Accumulated Deferred Income Taxes 65,571,496 5,183,364 1,719,319 (117,525) 3,077 0 (8,585,226) 63,774,505 Maine Yankee Decommissioning Costs 50,054,620 0 0 0 0 0 0 50,054,620 Deferred Regulatory Liability 0 0 0 0 0 0 9,618,159 9,618,159 Unamort. Invest. Tax Credits 1,720,708 0 0 0 0 0 0 1,720,708 Accrued Pension 794,126 0 0 0 0 0 0 794,126 Other 13,427,172 0 0 0 0 0 0 13,427,172 ------------------------------------------------------------------------------------------- Total Deferred Credits & Reserves 138,643,479 5,183,364 1,719,319 (117,525) 3,077 0 8,837,817 154,269,531 ------------------------------------------------------------------------------------------- Total Stockholders' Investment & Liabilities 568,615,397 4,755,318 111,003 27,201,784 76,813 (28,305,503) 33,233,015 605,687,827 ===========================================================================================
Bangor Hydro-Electric Company Consolidating Statement of Retained Earnings For the Twelve Months Ended December 31, 1998
Bangor Penobscot Bangor Penobscot Bangor Energy Natural Hydro Hydro Var Resale Gas Elimins. Totals Retained Earnings Balance at Beginning of Year 12,771,940 1,343,639 59,675 0 0 (1,403,314) 12,771,940 Add: Net Income Year to Date 11,465,317 729,243 3,046 2,225,871 (58,270) (2,899,890) 11,465,317 ------------------------------------------------------------------------------------------- Total 24,237,257 2,072,882 62,721 2,225,871 (58,270) (4,303,204) 24,237,257 ------------------------------------------------------------------------------------------- Deduct: Dividends - Preferred Stock (1,183,584) 0 0 0 0 0 (1,183,584) Common Stock 0 (525,000) 0 0 0 525,000 0 Other (60,904) 0 0 0 0 0 (60,904) ------------------------------------------------------------------------------------------- Total (1,244,488) (525,000) 0 0 0 525,000 (1,244,488) ------------------------------------------------------------------------------------------- Retained Earnings at End of Period 22,992,769 1,547,882 62,721 2,225,871 (58,270) (3,778,204) 22,992,769 ===========================================================================================
EAST BRANCH IMPROVEMENT COMPANY BALANCE SHEETS DECEMBER 31, 1998 AND 1997 1998 1997 Current Assets: Cash and cash equivalents $12,225 $8,024 Accounts receivable 25,000 25,000 Prepaid taxes 14,573 15,245 ------------------------ Total Current Assets $51,798 $48,269 ------------------------ Investments: Godfrey Falls Dam Company $2,850 $2,850 Sawtelle Brook Dam and Improvement Company 825 825 ------------------------ Total Investments $3,675 $3,675 ------------------------ Property and Equipment: Dams, Builds., Equip., Land & Land Rights $1,211,990 $1,217,103 Accumulated Depreciation (746,354) (725,573) ------------------------ Net Property and Equipment $465,636 $491,530 ------------------------ Total Assets $521,109 $543,474 ======================== LIABILITIES AND CAPITALIZATION Current Liabilities: Accounts Payable-Bangor Hydro-Electric Co. $14,916 $24,158 Other Accrued Expenses 908 761 ------------------------ Total Current Liabilities $15,824 $24,919 ------------------------ Long-term Liabilities: Deferred Federal and State Income Taxes $150,173 $154,376 ------------------------ Capitalization: Common Stock $302,925 $302,925 Retained Earnings 52,187 61,254 ------------------------ Total Capitalization $355,112 $364,179 ------------------------ $521,109 $543,474 ======================== Unaudited - For Management Discussion Purposes Only EAST BRANCH IMPROVEMENT COMPANY STATEMENTS OF OPERATIONS AND RETAINED EARNINGS FOR THE YEARS ENDED DECEMBER 31, 1998, 1997, AND 1996 1998 1997 1996 Revenues: Downstream Charges $100,000 $100,000 $150,000 ------------------------------------ Expenses: Operation and Maintenance $58,665 $74,622 $65,549 Depreciation Expense 25,894 25,904 25,859 Property and Payroll Taxes 29,260 31,189 34,104 Income Taxes (4,202) (972) (5,648) ------------------------------------ Total Expenses $109,617 $130,743 $119,864 ------------------------------------ Gross Profit (Loss) ($9,617) ($30,743) $30,136 ------------------------------------ Other Income: Interest and Rental Income $550 $1,050 $50 ------------------------------------ Net Income (Loss) ($9,067) ($29,693) $30,186 Add: Retained Earnings Balance at Beginning of Year 61,254 90,947 60,761 ------------------------------------ Retained Earnings at End of Year $52,187 $61,254 $90,947 ==================================== MAINE ELECTRIC POWER COMPANY STATEMENT OF INCOME FOR PERIOD ENDING DECEMBER 31, 1998 AND 1997 (Dollars in thousands except per share amounts) 1998 1997 OPERATING REVENUES SALES FOR RESALE $ 3 $ 21,172 WHEELING 2,678 2,696 SUPPORT CHARGES AND OTHER 833 605 --------- --------- TOTAL OPERATING REVENUES $ 3,514 $ 24,473 OPERATING EXPENSES PURCHASED POWER $ 3 $ 21,172 OPERATION & MAINTENANCE 1,440 1,182 DEPRECIATION 364 222 TAXES FEDERAL/STATE INCOME 550 589 LOCAL PROPERTY/OTHER 457 384 --------- --------- TOTAL OPERATING EXPENSES $ 2,814 $ 23,549 OPERATING INCOME $ 700 $ 924 ALLOWANCE FOR EQUITY FUNDS USED DURING CONSTRUCTION - - OTHER INCOME AND DEDUCTIONS 404 294 FEDERAL AND STATE TAXES (79) (79) --------- --------- INCOME BEFORE INTEREST CHARGES $ 1,025 $ 1,139 --------- --------- INTEREST CHARGES SHORT-TERM DEBT $ 43 $ 20 LONG-TERM DEBT 34 47 OTHER INTEREST CHARGES-NET - - ALLOWANCE FOR BORROWED FUNDS USED DURING CONSTRUCTION - - --------- --------- TOTAL INTEREST CHARGES $ 77 $ 67 --------- --------- NET INCOME $ 948 $ 1,072 ========= ========= WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING 8,785 8,785 ========= ========= EARNINGS PER SHARE COMMON STOCK $ 107.93 $ 122.10 ========= ========= MAINE ELECTRIC POWER COMPANY BALANCE SHEET AT DECEMBER 31, 1998 AND 1997 (Dollars in thousands) 1998 1997 ELECTRIC PROPERTY, ORIGINAL COST $ 23,633 $ 23,510 LESS:ACCUMULATED DEPRECIATION 22,899 22,618 --------- --------- $ 734 $ 892 CONSTRUCTION WORK IN PROGRESS 0 25 --------- --------- NET ELECTRIC PROPERTY $ 734 $ 917 --------- --------- CURRENT ASSETS CASH AND CASH EQUIVALENTS $ 3,494 $ 1,859 ACCOUNTS RECEIVABLE 577 386 ACCRUED TAXES 76 341 OTHER CURRENT ASSETS 86 142 --------- --------- TOTAL CURRENT ASSETS $ 4,233 $ 2,728 --------- --------- DEFERRED CHARGES $ 548 $ 717 --------- --------- $ 5,515 $ 4,362 ========= ========= COMMON STOCK INVESTMENT AND LIABILITIES CAPITALIZATION COMMON STOCK, $100 PAR VALUE, AUTHORIZED 20,000 SHARES, OUTSTANDING 8,785. $ 878 $ 878 RETAINED EARNINGS 2,338 1,486 --------- --------- TOTAL COMMON STOCK EQUITY $ 3,216 $ 2,364 LONG TERM NOTES DUE IN ANNUAL INSTALLMENTS THROUGH JULY 1, 1997- LESS CURRENT SINKING FUND REQUIREMENT $ 220 $ 420 --------- --------- TOTAL CAPITALIZATION $ 3,436 $ 2,784 --------- --------- CURRENT LIABILITIES CURRENT SINKING FUND REQUIREMENT $ 200 $ 200 ACCOUNTS PAYABLE 721 505 DIVIDENDS PAYABLE 24 24 ACCRUED PURCHASED POWER - - ACCRUED INTEREST. TAXES AND OTHER 4 13 --------- --------- TOTAL CURRENT LIABILITIES $ 949 $ 742 --------- --------- DEFERRED CREDITS ACCUMULATED DEFERRED INCOME TAXES $ 150 $ 216 UNAMORTIZED INVESTMENT TAX CREDITS 13 21 OTHER DEFERRED CREDITS 967 599 --------- --------- TOTAL DEFERRED CREDITS $ 1,130 $ 836 --------- --------- $ 5,515 $ 4,362 ========= ========= BANGOR-PACIFIC HYDRO ASSOCIATES AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS DECEMBER 31, 1998 AND 1997
ASSETS 1998 1997 Current Assets: Cash and Cash Equivalents $2,229,301.20 $2,070,519.62 Accounts Receivable 1,057,219.99 1,039,235.96 Prepaid Expenses 21,069.25 19,277.25 -------------------------------- Total Current Assets $3,307,590.44 $3,129,032.83 -------------------------------- Property, Plant and Equipment, at Cost $44,047,264.87 $44,047,264.87 Less: Accumulated Depreciation (9,030,823.48) (8,163,073.04) -------------------------------- $35,016,441.39 $35,884,191.83 -------------------------------- TOTAL ASSETS $38,324,031.83 $39,013,224.66 ================================ LIABILITIES AND PARTNERS' CAPITAL Current Liabilities: Current Portion of Long-term Debt $2,200,000.00 $2,100,000.00 Accrued Expenses 65,273.82 55,113.03 Accrued Interest 251,797.50 270,351.00 -------------------------------- Total Current Liabilities $2,517,071.32 $2,425,464.03 Long-term Debt, Net of Current Portion 26,299,999.98 28,499,999.98 -------------------------------- Total Liabilities $28,817,071.30 $30,925,464.01 Partners' Capital 9,506,960.53 8,087,760.65 -------------------------------- TOTAL LIABILITIES AND PARTNERS' CAPITAL $38,324,031.83 $39,013,224.66 ================================ UNAUDITED-FOR MANAGEMENT DISCUSSION PURPOSES ONLY
BANGOR-PACIFIC HYDRO ASSOCIATES AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME AND PARTNERS' CAPITAL FOR THE YEARS ENDED DECEMBER 31, 1998, 1997 and 1996
1998 1997 1996 REVENUES: Sale of Power $7,308,956.92 $7,057,018.19 $8,252,355.39 ------------------------------------------------ EXPENSES: Operation and Maintenance $443,098.47 $455,641.94 $358,853.00 Depreciation expense 867,750.44 869,916.57 866,213.00 Property Taxes 412,511.94 416,847.82 416,689.97 Prop., Personal, & Liab. Insur. 77,109.00 76,677.47 73,449.78 Royalty Expense 70,603.67 65,103.32 85,452.70 G & A Expenses-Pacific Energy/Ogden 2,422.99 1,000.00 4,851.29 G & A Expenses-Bangor Hydro 8,233.90 14,110.06 10,871.79 ------------------------------------------------ Total Expenses $1,881,730.41 $1,899,297.18 $1,816,381.53 ------------------------------------------------ Operating Income $5,427,226.51 $5,157,721.01 $6,435,973.86 ------------------------------------------------ OTHER INCOME AND (EXPENSE): Interest Expense ($3,082,467.37) ($3,294,184.24) ($3,501,016.66) Investment and Other Income 124,440.74 118,881.06 117,942.55 ------------------------------------------------ ($2,958,026.63) ($3,175,303.18) ($3,383,074.11) ------------------------------------------------ NET INCOME $2,469,199.88 $1,982,417.83 $3,052,899.75 Partners' Capital Beginning of Year 8,087,760.65 6,905,342.82 6,152,443.07 Less: Partners' Distributions (1,050,000.00) (800,000.00) (2,300,000.00) ------------------------------------------------ Partners' Capital End of Year $9,506,960.53 $8,087,760.65 $6,905,342.82 ================================================ UNAUDITED-FOR MANAGEMENT DISCUSSION PURPOSES ONLY
Chester SVC Partnership Statement of Income For the Years Ended December 31, 1998, 1997 and 1996 1998 1997 1996 Operating Revenues $4,534,759 $4,642,147 $4,782,131 ------------------------------------------ Operating Expenses: Operation & Maintenance $687,419 $694,946 $709,345 Depreciation 1,075,476 1,075,476 1,075,476 Taxes - Property 168,405 156,565 156,640 ------------------------------------------ Total Operating Expenses $1,931,300 $1,926,987 $1,941,461 ------------------------------------------ Operating Income $2,603,459 $2,715,160 $2,840,670 ------------------------------------------ Other Expense(Income) Interest Charges $2,737,345 $2,858,677 $2,987,954 Interest Income (133,886) (143,517) (147,284) ------------------------------------------ Total Other Expense(Income) $2,603,459 $2,715,160 $2,840,670 ------------------------------------------ Net Income $0 $0 $0 ========================================== Chester SVC Partnership Balance Sheets December 31, 1998 and 1997 1998 1997 ASSETS Electric Property, Original Cost $31,993,248 $31,993,248 Less: Accumulated Depreciation (8,522,523) (7,447,047) ---------------------------- Net Electric Property $23,470,725 $24,546,201 ---------------------------- Current Assets Cash $172,193 $131,745 Temporary Investments 200,000 200,000 Accounts Receivable 355,719 360,531 Other Current Assets 64,064 77,946 ---------------------------- Total Current Assets $791,976 $770,222 ---------------------------- Other Assets Deferred Charges $555,900 $581,361 Special Funds 1,659,640 1,735,654 ---------------------------- Total Other Assets $2,215,540 $2,317,015 ---------------------------- TOTAL ASSETS $26,478,241 $27,633,438 ============================ LIABILITIES AND PARTNERS' CAPITAL Capitalization Partners' Capital $0 $0 Notes Payable, Less Current Portion 24,654,349 25,837,439 ---------------------------- Total Capitalization $24,654,349 $25,837,439 ---------------------------- Current Liabilities Notes Payable $1,183,090 $1,183,090 Accounts Payable 303,457 240,507 Accrued Interest 73,893 77,277 Advanced Billing - NHH 263,452 295,125 ---------------------------- Total Current Liabilities $1,823,892 $1,795,999 ---------------------------- TOTAL LIABILITIES AND PARTNERS' CAPITAL $26,478,241 $27,633,438 ============================ Bangor Gas Company, LLC Statement of Operations For the Year Ended December 31, 1998 Revenues from Sale of Gas $ 0 -------------- Operating Expenses: Operation expenses $ 184,218 Depreciation 4,947 General taxes 7,383 -------------- Total Operating Expenses $ 196,548 -------------- Net Operating Expense $ (196,548) Nonoperating Expense (325) -------------- Net Loss $ (196,873) ============== Unaudited - For Management Discussion Purposes Only Bangor Gas Company, LLC Balance Sheet December 31, 1998 ASSETS Investment in Utility Plant: Construction work in progress $ 2,864,806 ------------ $ 2,864,806 Electric plant in service 34,626 Less: Accumulated depreciation (4,947) -------------- 29,679 ------------- Net investment in utility plant $ 2,894,485 Current Assets: Cash and cash equivalents $ 31,194 -------------- Total current assets 31,194 ------------- Total Assets $ 2,925,679 ============= PARTNERS' CAPITAL AND LIABILITIES Partners' Capital: Partners' contributions $ 370,250 Accumulated deficit (196,873) -------------- Total Partners' Capital 173,377 ------------- Current Liabilities: Accrued expenses $ 25,696 Payable to Partner - Sempra Energy 2,726,606 -------------- Total Current Liabilities 2,752,302 ------------- Total Partners' Capital and Liabilities $ 2,925,679 ============= Unauditied - For Management Discussion Purposes Only EX-27 2 FINANCIAL DATA SCHEDULE FOR FORM U3A2
UT This schedule contains summary financial information extracted from Bangor Hydro-Electric Company's U3A2 Filing submitted March 1, 1999 and is qualified in its entirety by reference to such U3A2. 0000009548 BANGOR HYDRO-ELECTRIC COMPANY 1,000 YEAR DEC-31-1998 DEC-31-1998 PER-BOOK 251,342 55,557 36,645 262,144 0 605,688 36,817 59,054 22,993 118,864 7,604 4,734 263,028 0 12,000 0 25,515 1,594 0 0 172,349 605,688 195,144 6,093 153,915 160,008 35,136 1,292 36,428 24,963 11,465 1,244 10,221 0 22,906 30,932 1.39 1.33
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