1
File No. 70-9937
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------------
Amendment No. 1
to
Form U-1
--------------------------------
APPLICATION-DECLARATION
under
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
***
AMERICAN ELECTRIC POWER COMPANY, INC.
CENTRAL POWER AND LIGHT COMPANY
COLUMBUS SOUTHERN POWER COMPANY
OHIO POWER COMPANY
SOUTHWESTERN ELECTRIC POWER COMPANY
WEST TEXAS UTILITIES COMPANY
1 Riverside Plaza, Columbus, Ohio 43215
----------------------------------------
(Name of company or companies filing this statement
and address of principal executive offices)
***
AMERICAN ELECTRIC POWER COMPANY, INC.
1 Riverside Plaza, Columbus, Ohio 43215
----------------------------------------
(Name of top registered holding company parent)
***
A. A. Pena, Senior Vice President and Treasurer
AMERICAN ELECTRIC POWER SERVICE CORPORATION
1 Riverside Plaza, Columbus, Ohio 43215
Susan Tomasky, Executive Vice President and General Counsel
AMERICAN ELECTRIC POWER SERVICE CORPORATION
1 Riverside Plaza, Columbus, Ohio 43215
-----------------------------------------
(Names and addresses of agents for service)
2
American Electric Power Company, Inc. ("AEP"), a New York corporation and
a registered holding company under the Public Utility Holding Company Act of
1935, as amended (the "Act"), and its direct and indirect public utility
subsidiaries Central Power and Light Company ("CPL"), Southwestern Electric
Power Company ("SWEPCo"), West Texas Utilities Company ("WTU"), Columbus
Southern Power Company ("CSP") and Ohio Power Company ("OPCo") (collectively,
"the Operating Subsidiaries") propose to amend their Application/Declaration on
Form U-1 in File No. 70-9937 as follows:
1. By restating Item 1. Description of Proposed Transactions immediately
preceding the Rule 54 section as follows:
ITEM 1. DESCRIPTION OF PROPOSED TRANSACTIONS
Background. By Order dated December 30, 1976 (HCAR No. 19829;
70-5930) and in subsequent Orders, the Commission authorized Central
and Southwest Corporation ("CSW"), a Delaware corporation and a
registered holding company under the Act and a wholly owned
subsidiary of AEP, to establish and utilize a system money pool
("Money Pool") to co-ordinate short-term borrowings for CSW, its
electric subsidiary companies and Central and South West Services,
Inc. as set forth in Central and South West Corp., HCAR No. 26697
(Mar. 28, 1997) and Central and South West Corp., HCAR No. 26854
(Apr. 3, 1998).
By Order dated April 5, 1989, in File 70-7643 (HCAR No.
24855), the Commission authorized the coordination of CSW's short-
term borrowing program through the use of the CSW System money pool
("the Money Pool"). The Money Pool would be funded through surplus
funds of CSW and its operating subsidiaries, a commercial paper
program of CSW or short-term loans from banks to CSW and its
subsidiaries.
In its Order in File 70-9381 (HCAR No. 27186), the Commission
authorized AEP to continue the Money Pool and to add its utility
subsidiaries and certain other subsidiaries as participants in the
Money Pool and established borrowing limits for all participants in
the Money Pool.
Ohio and Texas Restructuring. CPL, SWEPCo and WTU are public
utilities operating in Texas. Tex. Util. Code Ann. ss. 39.001-909
(Vernon Supp. 2000), commonly referred to as S.B. 7, requires
vertically integrated electric utilities, including WTU and CPL, to
separate ownership of their generating and other power supply assets
from ownership of their transmission and distribution assets no
later than January 1, 2002. Under S.B. 7, vertically integrated
utilities are generally obligated to disaggregate into at least (1)
a PGC that will sell power and energy at wholesale; and (2) an EDC
that will own transmission and local distribution facilities and
perform metering and billing functions, but is prohibited from
owning power supply facilities or selling electricity. By order
issued July 7, 2000, the Public Utility Commission of Texas (PUCT)
approved corporate separation plans CPL, SWEPCo and WTU filed to
explain how they will comply with S.B. 7.
3
CSP and OPCo are public utilities operating in Ohio. CSP and
OPCo will make certain transfers to comply with the provisions of an
Ohio statute that provides for Competitive Retail Electric Service,
commonly referred to as S.B. 3. Ohio Rev. Code Ann. ss.ss.
4928.01-67 (Anderson 2000). The statute directs vertically
integrated electric utilities that offer retail electric service in
Ohio to separate their generating and other competitive operations
(such as aggregation, marketing, and brokering) and related assets
from their transmission and distribution operations and assets. On
September 28, 2000, The Public Utilities Commission of Ohio (Ohio
PUC) approved corporate separation plans CSP and OPCo filed to
explain how they will comply with S.B. 3. Under their approved
corporate separation plans, CSP and OPCo proposed, subject to
receipt of federal regulatory approvals, to transfer their
transmission and distribution assets and operations to EDC
affiliates.
The current short-term borrowing limits of the Operating
Subsidiaries under the Money Pool are as follows:
Money Pool Short-Term Borrowing
Participant Limit
CSP 350,000,000
CPL 600,000,000
OPCo 450,000,000
SWEPCo 250,000,000
WTU 165,000,000
Proposed Transaction. In order to comply with mandates by the
Ohio and Texas legislatures to restructure and pursuant to plans
submitted and approved by the PUCT and the Ohio PUC, CPL, CSP, OPCo,
SWEPCo and WTU (collectively, the "Operating Subsidiaries") may need
to restructure their debt portfolios and may retire and/or redeem
their current outstanding long-term debt and replace such long-term
debt with short-term debt. The Operating Subsidiaries propose to
increase their borrowing limits as follows:
CPL increase from $600 million to $1.2
billion
CSP increase from $350 million to $800
million
OPCo increase from $450 million to $1.0
billion
SWEPCo increase from $250 million to $350
million
WTU increase from $165 million to $375
million
This increase in borrowing authority would require that AEP's
external borrowing limit from commercial paper dealers and banks be
increased from $5 billion to $6.910 billion. This increase in AEP's
borrowing limit will ensure that AEP has sufficient borrowing
capacity to obtain external borrowings in order to loan funds
through the Money Pool to the participants when required. AEP and
the Operating Subsidiaries request that such authority extend to
December 31, 2002.
AEP hereby represents that it will maintain for itself and for
all the Operating Subsidiaries the common equity at a percentage of
the consolidated capital (inclusive of short-term debt) of 30%
during the authorization period. A chart showing the percentage of
equity to consolidated capital is attached as Exhibit A.
Use of Proceeds: The proposed increase in short-term
borrowings will be used for the following purpose:
CPL, CSP, OPCo, SWEPCo and WTU will utilize the additional
borrowing capacity authorized in this file as a source of funding to
replace a portion of respective long-term securities. As of June 30,
2001, CPL, CSP, OPCo, SWEPCo and WTU currently have $1,597,279,000,
$914,875,000, $1,219,852,000, $760,175,000 and $258,387,000,
respectively, in long-term securities outstanding. These
transactions will not change the debt/equity ratios of the Operating
Securities.
4
2. By replacing and updating the Rule 54 Compliance language as follows:
Compliance with Rule 54
Rule 54 provides that, in determining whether to approve an
application which does not relate to any EWG or FUCO, the Commission
shall not consider the effect of the capitalization or earnings of
any such EWG or FUCO which is a subsidiary of a registered holding
company if the requirements of Rule 53(a), (b) and (c) are
satisfied.
AEP consummated the merger with Central and South West Corporation
on June 15, 2000 pursuant to an order issued June 14, 2000 (HCAR No.
27186), which further authorized AEP to invest up to 100% of its
consolidated retained earnings, with consolidated retained earnings
to be calculated on the basis of the combined consolidated retained
earnings of AEP and CSW (as extended pursuant to HCAR No. 27316,
December 26, 2000, the "Rule 53(c) Order").
AEP currently meets all of the conditions of Rule 53(a) and none of
the conditions set forth in Rule 53(b) exist or will exist as a
result of the transactions proposed herein.
Rule 53(a)(1) At June 30, 2001, AEP's "aggregate investment", as
defined in Rule 53(a)(1), in EWGs and FUCOs was approximately $1.315
billion, or about 40.6% of AEP's "consolidated retained earnings",
also as defined in Rule 53(a)(1), for the four quarters ended June
30, 2001 ($3.242 billion).
Rule 53(a)(2) Each FUCO in which AEP invests will maintain books and
records and make available the books and records required by Rule
53(a)(2).
Rule 53(a)(3) No more than 2% of the employees of the electric
utility subsidiaries of AEP will, at any one time, directly or
indirectly, render services to any FUCO.
Rule 53(a)(4) AEP has submitted and will submit a copy of Item 9 and
Exhibits G and H of AEP's Form U5S to each of the public service
commissions having jurisdiction over the retail rates of AEP's
electric utility subsidiaries.
Rule 53(b) (i) Neither AEP nor any subsidiary of AEP is the subject
of any pending bankruptcy or similar proceeding; (ii) AEP's average
consolidated retained earnings for the four quarters ended June 30,
2001 ($3,242,159,000) represented a decrease of approximately
$302,490,000 (or 8.5%) in the average consolidated retained earnings
from the four quarters ended June 30, 2000 ($3,544,649,000); and
(iii) for the fiscal year ended December 31, 2000, AEP did not
report operating losses attributable to its direct or indirect
investments in EWGs and FUCOs.
AEP's interests in EWGs and FUCOs have made a positive contribution
to earnings over the four calendar years ending after the Rule 53(c)
Order. Accordingly, since the date of the Rule 53(c) Order, the
capitalization and earnings attributable to AEP's investments in
EWGs and FUCOs has not had an adverse impact on AEP's financial
integrity.
5
3. By amending and restating Item 3. Applicable Statutory Provisions as
follows:
Sections 6(a), 7, 9(a) and 10 and Rules 43 and 45 thereunder are or
may be applicable to the proposed transactions. To the extent any
other sections of the Act may be applicable to the proposed
transactions, the Applicants hereby request appropriate orders
thereunder.
4. By filing the following exhibits:
Exhibit A Capitalization Chart
Exhibit H Form of Notice
5. By filing the following financial statements:
Balance Sheets as of June 30, 2001 and States of Income and Retained
Earnings for the 12 months ended June 30, 2001 of AEP and its
subsidiaries consolidated and of CPL, SWEPCo, WTU, CSP and OPCo.
Pursuant to the requirements of the Public Utility Holding Company Act of
1935, the undersigned company has duly caused this Amendment No. 1 to its Form
U-1 to be signed on its behalf by the undersigned thereunto duly authorized.
AMERICAN ELECTRIC POWER COMPANY, INC.
And
Central Power and Light Company
Columbus Southern Power Company
Ohio Power Company
Southwestern Electric Power Company
West Texas Utilities Company
By: /s/ A. A. Pena
Vice President
Dated: September 24, 2001
6
Exhibit A
CAPITALIZATION STRUCTURE
(as of 6/30/01)
-------------------------------------------------------------------------------------------
$ in Common Preferred Long-Term Short-Term Total
thousands Equity Stock Debt Debt Capitalization
===========================================================================================
===========================================================================================
AEP 8,147,958 33.5% 161,265 0.7% 11,955,487 49.2% 4,054,955 16.7% 24,319,665 100%
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
CPL 1,379,507 43.1% 5,967 0.2% 1,591,313 49.7% 223,512 7.0% 3,200,299 100%
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
WTU 254,598 43.5% 2,482 0.4% 255,905 43.7% 71,953 12.3% 584,938 100%
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
SWEPCO 675,082 43.0% 4,704 0.3% 755,471 48.1% 136,484 8.7% 1,571,740 100%
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
CSP 730,130 41.5% 15,000 0.9% 899,875 51.1% 115,302 6.6% 1,760,307 100%
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
OPCO 1,173,304 46.4% 25,498 1.0% 1,078,354 42.6% 252,323 10% 2,529,479 100%
-------------------------------------------------------------------------------------------
7
Exhibit H
UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
Release No. /September , 2001
In the Matter of
AMERICAN ELECTRIC POWER COMPANY, INC., et al.
1 Riverside Plaza
Columbus, OH 43215
(70-9937)
NOTICE IS HEREBY GIVEN that American Electric Power Company, Inc. ("AEP"), a New
York corporation and a registered holding company under the Public Utility
Holding Company Act of 1935, as amended (the "Act"), and its direct and indirect
public utility subsidiaries Central Power and Light Company ("CPL"),
Southwestern Electric Power Company ("SWEPCo"), West Texas Utilities Company
("WTU"), Columbus Southern Power Company ("CSP") and Ohio Power Company ("OPCo")
(collectively, "the Operating Subsidiaries") have filed a Form U-1 Application
or Declaration with this Commission pursuant to Sections 6(a), 7, 9(a) and 10 of
the Public Utility Holding Company Act of 1935 (the "Act") and Rules 43 and 45
thereunder seeking authorization to increase the borrowing limits of the
Operating Subsidiaries from the AEP system money pool as authorized in File No.
70-9381.
By Order dated December 30, 1976 (HCAR No. 19829; 70-5930) and in
subsequent Orders, the Commission authorized Central and Southwest Corporation
("CSW"), a Delaware corporation and a registered holding company under the Act
and a wholly owned subsidiary of AEP, to establish and utilize a system money
pool ("Money Pool") to coordinate short-term borrowings for CSW, its electric
subsidiary companies and Central and South West Services, Inc. as set forth in
Central and South West Corp., Holding Co. Act Release No. 26697 (March 28, 1997)
and Central and South West Corp., Holding Co Act Release No. 26854 (Apr. 3,
1998). In its Order in File 70-9381 (HCAR 35-27186), the Commission approved the
merger of CSW and AEP, authorized AEP to continue the Money Pool and established
borrowing limits for all participants in the Money Pool.
In order to comply with mandates by the Ohio and Texas legislatures to
restructure and pursuant to plans submitted and approved by the Public Utility
Commission of Texas and The Public Utilities Commission of Ohio (Ohio PUC) the
Operating Subsidiaries may need to restructure their debt portfolios and may
retire and/or redeem their current outstanding long-term debt and replace such
long-term debt with short-term debt. AEP and the Operating Subsidiaries propose
to increase the borrowing limits as follows:
CPL increase from $600 million to $1.2 billion CSP increase from 350
million to 800 million OPCo increase from $450 million to $1.0
billion SWEPCo increase from $250 million to $350 million WTU
increase from $165 to $375 million
This increase in borrowing authority would require that AEP's borrowing limit be
increased from $5 billion to $6.910 billion with the aggregate amount for all
participants together not to exceed the limitation for AEP. This increase in
AEP's borrowing limit will ensure that AEP has sufficient borrowing capacity to
obtain external borrowings in order to loan funds through the Money Pool to the
participants when required. The Operating Subsidiaries request that such
authority extend to December 31, 2002.
CPL, CSPCo, OPCo, SWEPCo and WTU intend to utilize the additional borrowing
capacity authorized in this file as a source of funding to replace of portion of
respective long-term securities. As of June 30 2001, CPL, CSPCo, OPCo, and
SWEPCo and WTU currently have $1,597,279,000, $914,875,000, $1,219,852,000,
$760,175,000 and $258,387,000, respectively, in long-term securities
outstanding. AEP has represented that it will maintain for all the Operating
Subsidiaries the common equity at a percentage of the consolidated capital
(inclusive of short-term debt) of 30% during the authorization period.
It is stated that no other state commission and no federal commission, other
than this Commission, has jurisdiction over the proposed transaction.
The Application or Declaration and any amendments thereto are available for
public inspection through the Commission's Office of Public Reference.
Interested persons wishing to comment or request a hearing should submit their
views in writing by October ____, 2001 to the Secretary, Securities and Exchange
Commission, Washington, D.C. 20549, and serve a copy on the applicant or
declarant at the address specified above. Proof of service (by affidavit or, in
case of any attorney at law, by certificate) should be filed with the request.
Any request for a hearing shall identify specifically the issues of fact or law
that are disputed. A person who so requests will be notified of any hearing if
ordered, and will receive a copy of any notice or Order issued in this matter.
After said date, the Application or Declaration, as filed or as it may be
amended, may be permitted to become effective.
For the Commission, by the Office of Public Utility Regulation, pursuant to
delegated authority.
Jonathan G. Katz
Secretary
8
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
Consolidated Statements of Income
--------------------------------------------------------------------------------
(in millions - except per share amounts)
Year Ended December 31,
-------------------------------------
2000 1999 1998
---- ---- ----
REVENUES:
Domestic Electric Utility Operations $10,827 $ 9,838 $ 9,834
Worldwide Electric and Gas Operations 2,867 2,569 2,006
------- ------- -------
TOTAL REVENUES 13,694 12,407 11,840
------- ------- -------
EXPENSES:
Fuel and Purchased Power 4,128 3,449 3,455
Maintenance and Other Operation 3,017 2,675 2,596
Non-recoverable Merger Costs 203 - -
Depreciation and Amortization 1,062 1,011 989
Taxes Other Than Income Taxes 671 664 659
Worldwide Electric and Gas Operations 2,587 2,283 1,861
------- ------- -------
TOTAL EXPENSES 11,668 10,082 9,560
------- ------- -------
OPERATING INCOME 2,026 2,325 2,280
OTHER INCOME (net) 33 139 95
------- ------- -------
INCOME BEFORE INTEREST, PREFERRED
DIVIDENDS AND INCOME TAXES 2,059 2,464 2,375
INTEREST AND PREFERRED DIVIDENDS 1,160 996 898
------- ------- -------
INCOME BEFORE INCOME TAXES 899 1,468 1,477
INCOME TAXES 597 482 502
------- ------- -------
INCOME BEFORE EXTRAORDINARY ITEM 302 986 975
EXTRAORDINARY LOSSES:
DISCONTINUANCE OF REGULATORY ACCOUNTING
FOR GENERATION (35) (8) -
LOSS ON REACQUIRED DEBT - (6) -
------- ------- -------
NET INCOME $ 267 $ 972 $ 975
======= ======= =======
AVERAGE NUMBER OF SHARES OUTSTANDING 322 321 318
=== === ===
EARNINGS PER SHARE:
Income Before Extraordinary Item $ 0.94 $3.07 $3.06
Extraordinary Losses (0.11) (.04) -
------ ----- -----
Net Income $ 0.83 $3.03 $3.06
====== ===== =====
CASH DIVIDENDS PAID PER SHARE $ 2.40 $2.40 $2.40
====== ===== =====
9
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
Consolidated Balance Sheets
--------------------------------------------------------------------------------
(in millions - except share data)
December 31,
-------------------------
2000 1999
---- ----
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents $ 437 $ 609
Special Deposits - 50
Accounts Receivable:
Customers 827 553
Miscellaneous 2,883 1,486
Allowance for Uncollectible Accounts (11) (12)
Energy Trading Contracts 16,627 1,001
Other 1,268 1,311
------- -------
TOTAL CURRENT ASSETS 22,031 4,998
------- -------
PROPERTY PLANT AND EQUIPMENT:
Electric:
Production 16,328 15,869
Transmission 5,609 5,495
Distribution 10,843 10,432
Other (including gas and coal mining assets
and nuclear fuel) 4,077 4,081
Construction Work in Progress 1,231 1,061
------- -------
Total Property, Plant and Equipment 38,088 36,938
Accumulated Depreciation and Amortization 15,695 15,073
------- -------
NET PROPERTY, PLANT AND EQUIPMENT 22,393 21,865
------- -------
REGULATORY ASSETS 3,698 3,464
------- -------
INVESTMENTS IN POWER AND COMMUNICATIONS PROJECTS 782 862
------- -------
GOODWILL (NET OF AMORTIZATION) 1,382 1,531
------- -------
LONG-TERM ENERGY TRADING CONTRACTS 1,620 136
------- -------
OTHER ASSETS 2,642 2,863
------- -------
TOTAL $54,548 $35,719
======= =======
10
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
Consolidated Balance Sheets
--------------------------------------------------------------------------------
December 31,
----------------------
2000 1999
---- ----
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts Payable $ 2,627 $ 1,280
Short-term Debt 4,333 3,012
Long-term Debt Due Within One Year* 1,152 1,367
Energy Trading Contracts 16,801 964
Other 2,154 1,443
------- -------
TOTAL CURRENT LIABILITIES 27,067 8,066
------- -------
LONG-TERM DEBT* 9,602 10,157
------- -------
CERTAIN SUBSIDIARY OBLIGATED, MANDATORILY REDEEMABLE,
PREFERRED SECURITIES OF SUBSIDIARY TRUSTS HOLDING
SOLELY JUNIOR SUBORDINATED DEBENTURES OF SUCH
SUBSIDIARIES 334 335
------- -------
DEFERRED INCOME TAXES 4,875 5,150
------- -------
DEFERRED GAIN ON SALE AND LEASEBACK - ROCKPORT PLANT UNIT 2 203 213
------- -------
DEFERRED INVESTMENT TAX CREDITS 528 580
------- -------
LONG-TERM ENERGY TRADING CONTRACTS 1,381 108
------- -------
DEFERRED CREDITS AND REGULATORY LIABILITIES 637 607
------- -------
OTHER NONCURRENT LIABILITIES 1,706 1,648
------- -------
CUMULATIVE PREFERRED STOCK OF SUBSIDIARIES* 161 182
------- -------
COMMITMENTS AND CONTINGENCIES (Note 8)
COMMON SHAREHOLDERS' EQUITY:
Common Stock-Par Value $6.50:
2000 1999
---- ----
Shares Authorized. .600,000,000 600,000,000
Shares Issued. . . .331,019,146 330,692,317
(8,999,992 shares were held in treasury
at December 31, 2000 and 1999) 2,152 2,149
Paid-in Capital 2,915 2,898
Accumulated Other Comprehensive Income (Loss) (103) (4)
Retained Earnings 3,090 3,630
------- -------
TOTAL COMMON SHAREHOLDERS' EQUITY 8,054 8,673
------- -------
TOTAL $54,548 $35,719
======= =======
11
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
Consolidated Statements of Common Shareholders' Equity
(in millions)
Accumulated
Other
Common Stock Paid-In Retained Comprehensive
Shares Amount Capital Earnings Income (Loss) Total
JANUARY 1, 1998 326 $2,036 $2,818 $3,356 $23 $8,233
Conforming Change in Accounting Policy - - - (13) - (13)
Reclassification Adjustment - 85 (85) - - -
--- ------ ------ ------ --- ------
Adjusted Balance at Beginning of Period 326 2,121 2,733 3,343 23 8,220
Issuances 2 13 83 - - 96
Retirements and Other - - 2 3 - 5
Cash Dividends Declared - - - (827) - (827)
------
7,494
Comprehensive Income:
Other Comprehensive Income, Net of Taxes
Foreign Currency Translation Adjustment - - - - 6 6
Unrealized Loss on Securities - - - - (14) (14)
Adjustments for Gain
Included in Net Income - - - - (7) (7)
Minimum Pension Liability - - - - (1) (1)
Net Income - - - 975 - 975
------
Total Comprehensive Income 959
--- ------ ------ ------- ----- ------
DECEMBER 31, 1998 328 2,134 2,818 3,494 7 8,453
Conforming Change in Accounting Policy - - - (1) - (1)
--- ------ ------ ------- ----- ------
Adjusted Balance at Beginning of Period 328 2,134 2,818 3,493 7 8,452
Issuances 3 15 77 - - 92
Retirements and Other - - 3 - - 3
Cash Dividends Declared - - - (833) - (833)
------
7,714
Comprehensive Income:
Other Comprehensive Income, Net of Taxes
Foreign Currency Translation Adjustment - - - - (13) (13)
Minimum Pension Liability - - - - 2 2
Net Income - - - 972 - 972
------
Total Comprehensive Income 961
--- ------ ------ ------- ----- ------
DECEMBER 31, 1999 331 2,149 2,898 3,632 (4) 8,675
Conforming Change in Accounting Policy - - - (2) - (2)
--- ----- ----- ----- ----- ------
Adjusted Balance at Beginning of Period 331 2,149 2,898 3,630 (4) 8,673
Issuances - 3 11 - - 14
Cash Dividends Declared - - - (805) - (805)
Other - - 6 (2) - 4
------
7,886
Comprehensive Income:
Other Comprehensive Income, Net of Taxes
Foreign Currency Translation Adjustment - - - - (119) (119)
Reclassification Adjustment
For Loss Included in Net Income - - - - 20 20
Net Income - - - 267 - 267
------
Total Comprehensive Income 168
--- ------ ------ ------ ----- ------
DECEMBER 31, 2000 331 $2,152 $2,915 $3,090 $(103) $8,054
=== ====== ====== ====== ====== ======
12
CENTRAL POWER AND LIGHT COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
--------------------------------------------------------------------------------
Year Ended December 31,
---------------------------------------
2000 1999 1998
---- ---- ----
(in thousands)
OPERATING REVENUES $1,771,177 $1,482,475 $1,406,117
---------- ---------- ----------
OPERATING EXPENSES:
Fuel 550,903 403,989 385,944
Purchased Power 177,387 68,155 40,062
Other Operation 319,539 291,131 261,058
Maintenance 60,528 70,165 63,779
Depreciation and Amortization 178,786 177,702 184,805
Taxes Other Than Federal Income Taxes 80,009 84,538 70,927
Federal Income Tax 96,927 92,810 116,755
---------- ---------- ----------
Total Operating Expenses 1,464,079 1,188,490 1,123,330
---------- ---------- ----------
OPERATING INCOME 307,098 293,985 282,787
NONOPERATING INCOME 7,235 8,113 760
---------- ---------- ----------
INCOME BEFORE INTEREST CHARGES 314,333 302,098 283,547
INTEREST CHARGES 124,766 114,380 122,036
---------- ---------- ----------
INCOME BEFORE EXTRAORDINARY ITEM 189,567 187,718 161,511
EXTRAORDINARY LOSS ON REACQUIRED DEBT
(INCLUSIVE OF TAX $2,971,000) - (5,517) -
---------- ---------- ----------
NET INCOME 189,567 182,201 161,511
PREFERRED STOCK DIVIDEND REQUIREMENTS 241 6,931 6,901
LOSS ON REACQUIRED PREFERRED STOCK - (2,763) -
---------- ---------- ----------
EARNINGS APPLICABLE TO COMMON STOCK $ 189,326 $ 172,507 $ 154,610
========== ========== ==========
13
CENTRAL POWER AND LIGHT COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
--------------------------------------------------------------------------------
December 31,
2000 1999
(in thousands)
ASSETS
ELECTRIC UTILITY PLANT:
Production $3,175,867 $3,152,319
Transmission 581,931 566,629
Distribution 1,221,750 1,157,091
General 237,764 307,378
Construction Work in Progress 138,273 101,550
Nuclear Fuel 236,859 226,927
---------- ----------
Total Electric Utility Plant 5,592,444 5,511,894
Accumulated Depreciation and Amortization 2,297,189 2,247,225
---------- ----------
NET ELECTRIC UTILITY PLANT 3,295,255 3,264,669
---------- ----------
OTHER PROPERTY AND INVESTMENTS 44,225 41,433
---------- ----------
LONG-TERM ENERGY TRADING CONTRACTS 66,231 -
---------- ----------
CURRENT ASSETS:
Cash and Cash Equivalents 14,253 7,995
Special Deposits for Reacquisition of Long-term Debt - 50,000
Accounts Receivable:
General 67,787 49,228
Affiliated Companies 31,272 15,254
Allowance for Uncollectible Accounts (1,675) -
Fuel Inventory - at LIFO cost 22,842 26,434
Materials and Supplies - at average cost 53,108 58,196
Under-recovered Fuel Costs 127,295 30,423
Energy Trading Contracts 481,206 -
Prepayments 3,014 3,188
---------- ----------
TOTAL CURRENT ASSETS 799,102 240,718
---------- ----------
REGULATORY ASSETS 202,440 223,359
---------- ----------
REGULATORY ASSETS DESIGNATED FOR SECURITIZATION 953,249 953,249
---------- ----------
NUCLEAR DECOMMISSIONING TRUST FUND 93,592 86,122
---------- ----------
DEFERRED CHARGES 18,402 38,300
---------- ----------
TOTAL $5,472,496 $4,847,850
========== ==========
14
CENTRAL POWER AND LIGHT COMPANY AND SUBSIDIARIES
December 31,
---------------------------
2000 1999
---- ----
(in thousands)
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Stock - $25 Par Value:
Authorized - 12,000,000 Shares
Outstanding - 6,755,535 Shares $ 168,888 $ 168,888
Paid-in Capital 405,000 405,000
Retained Earnings 792,219 758,894
---------- ----------
Total Common Shareholder's Equity 1,366,107 1,332,782
Preferred Stock 5,967 5,967
CPL - Obligated, Mandatorily Redeemable Preferred
Securities of Subsidiary Trust Holding Solely
Junior Subordinated Debentures of CPL 148,500 150,000
Long-term Debt 1,254,559 1,304,541
---------- ----------
TOTAL CAPITALIZATION 2,775,133 2,793,290
---------- ----------
CURRENT LIABILITIES:
Long-term Debt Due Within One Year 200,000 150,000
Advances from Affiliates 269,712 322,158
Accounts Payable - General 128,957 88,702
Accounts Payable - Affiliated Companies 40,962 35,344
Taxes Accrued 55,526 41,121
Interest Accrued 26,217 14,723
Energy Trading Contracts 489,888 -
Other 40,630 25,349
---------- ----------
TOTAL CURRENT LIABILITIES 1,251,892 677,397
---------- ----------
DEFERRED INCOME TAXES 1,242,797 1,234,175
---------- ----------
DEFERRED INVESTMENT TAX CREDITS 128,100 133,306
---------- ----------
LONG-TERM ENERGY TRADING CONTRACTS 65,740 -
---------- ----------
DEFERRED CREDITS 8,834 9,682
---------- ----------
COMMITMENTS AND CONTINGENCIES (Note 8)
TOTAL $5,472,496 $4,847,850
========== ==========
15
CENTRAL POWER AND LIGHT COMPANY AND SUBSIDIARIES
Consolidated Statements of Retained Earnings
--------------------------------------------------------------------------------
Year Ended December 31,
-----------------------------------------
2000 1999 1998
---- ---- ----
(in thousands)
BALANCE AT BEGINNING OF PERIOD
AS PREVIOUSLY REPORTED $764,225 $739,031 $833,282
CONFORMING CHANGE IN ACCOUNTING POLICY (5,331) (4,644) (4,505)
-------- -------- --------
ADJUSTED BALANCE AT BEGINNING OF PERIOD 758,894 734,387 828,777
NET INCOME 189,567 182,201 161,511
DEDUCTIONS:
Cash Dividends Declared:
Common Stock 156,000 148,000 249,000
Preferred Stock 241 6,931 6,901
Other 1 - -
LOSS ON REACQUIRED PREFERRED STOCK - (2,763) -
-------- -------- --------
BALANCE AT END OF PERIOD $792,219 $758,894 $734,387
======== ======== ========
16
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
--------------------------------------------------------------------------------
Year Ended December 31,
-------------------------------------------
2000 1999 1998
---- ---- ----
(in thousands)
OPERATING REVENUES $1,356,408 $1,229,994 $1,187,745
---------- ---------- ----------
OPERATING EXPENSES:
Fuel 189,155 185,511 189,031
Purchased Power 347,693 265,457 237,688
Other Operation 221,775 190,614 202,720
Maintenance 69,676 65,229 62,095
Depreciation 99,640 94,532 91,218
Taxes Other Than Federal Income Taxes 123,291 120,147 116,548
Federal Income Taxes 109,301 85,714 76,234
---------- ---------- ----------
TOTAL OPERATING EXPENSES 1,160,531 1,007,204 975,534
---------- ---------- ----------
OPERATING INCOME 195,877 222,790 212,211
NONOPERATING INCOME (LOSS) 5,153 2,709 (1,343)
---------- ---------- ----------
INCOME BEFORE INTEREST CHARGES 201,030 225,499 210,868
INTEREST CHARGES 80,828 75,229 77,824
---------- ---------- ----------
INCOME BEFORE EXTRAORDINARY ITEM 120,202 150,270 133,044
EXTRAORDINARY LOSS:
Discontinuance of Regulatory
Accounting for Generation
(inclusive of tax benefit of $14,148,000) (25,236) - -
---------- ---------- ----------
NET INCOME 94,966 150,270 133,044
PREFERRED STOCK DIVIDEND REQUIREMENTS 1,783 2,131 2,131
---------- ---------- ----------
EARNINGS APPLICABLE TO COMMON STOCK $ 93,183 $ 148,139 $ 130,913
========== ========== ==========
17
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
Consolidated Statements of Retained Earnings
--------------------------------------------------------------------------------
Year Ended December 31,
-------------------------------------
2000 1999 1998
---- ---- ----
(in thousands)
Retained Earnings January 1 $246,584 $186,441 $138,172
Net Income 94,966 150,270 133,044
-------- -------- --------
341,550 336,711 271,216
-------- -------- --------
Deductions:
Cash Dividends Declared:
Common Stock 240,600 87,996 82,644
Cumulative Preferred Stock - 7% Series 1,400 1,750 1,750
-------- -------- --------
Total Cash Dividends Declared 242,000 89,746 84,394
Capital Stock Expense 481 381 381
-------- -------- --------
Total Deductions 242,481 90,127 84,775
-------- -------- --------
Retained Earnings December 31 $ 99,069 $246,584 $186,441
======== ======== ========
18
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
--------------------------------------------------------------------------------
December 31,
-------------------------------
2000 1999
---- ----
(in thousands)
ASSETS
ELECTRIC UTILITY PLANT:
Production $1,564,254 $1,544,858
Transmission 360,302 350,826
Distribution 1,096,365 1,032,550
General 156,534 141,137
Construction Work in Progress 89,339 82,248
---------- ----------
Total Electric Utility Plant 3,266,794 3,151,619
Accumulated Depreciation 1,299,697 1,210,994
---------- ----------
NET ELECTRIC UTILITY PLANT 1,967,097 1,940,625
---------- ----------
OTHER PROPERTY AND INVESTMENTS 39,848 80,008
---------- ----------
LONG-TERM ENERGY TRADING CONTRACTS 172,167 21,278
---------- ----------
CURRENT ASSETS:
Cash and Cash Equivalents 11,600 5,107
Accounts Receivable:
Customers 73,711 77,418
Affiliated Companies 49,591 28,453
Miscellaneous 18,807 8,887
Allowance for Uncollectible Accounts (659) (3,045)
Fuel - at average cost 13,126 21,484
Materials and Supplies - at average cost 38,097 41,696
Accrued Utility Revenues 9,638 48,117
Energy Trading Contracts 1,085,989 90,103
Prepayments 46,735 37,969
---------- ----------
TOTAL CURRENT ASSETS 1,346,635 356,189
---------- ----------
REGULATORY ASSETS 291,553 339,103
---------- ----------
DEFERRED CHARGES 77,634 72,787
---------- ----------
TOTAL $3,894,934 $2,809,990
========== ==========
19
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
December 31,
-------------------------------
2000 1999
---- ----
(in thousands)
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Stock - No Par Value:
Authorized - 24,000,000 Shares
Outstanding - 16,410,426 Shares $ 41,026 $ 41,026
Paid-in Capital 573,354 572,873
Retained Earnings 99,069 246,584
---------- ----------
Total Common Shareholder's Equity 713,449 860,483
Cumulative Preferred Stock -
Subject to Mandatory Redemption 15,000 25,000
Long-term Debt 899,615 924,545
---------- ----------
TOTAL CAPITALIZATION 1,628,064 1,810,028
---------- ----------
OTHER NONCURRENT LIABILITIES 47,584 43,056
---------- ----------
CURRENT LIABILITIES:
Short-term Debt - 45,500
Advances from Affiliates 88,732 -
Accounts Payable - General 89,846 28,279
Accounts Payable - Affiliated Companies 72,493 52,776
Taxes Accrued 162,904 143,477
Interest Accrued 13,369 13,936
Energy Trading Contracts 1,115,967 87,911
Other 60,701 34,375
---------- ----------
TOTAL CURRENT LIABILITIES 1,604,012 406,254
---------- ----------
DEFERRED INCOME TAXES 422,759 447,607
---------- ----------
DEFERRED INVESTMENT TAX CREDITS 41,234 44,716
---------- ----------
DEFERRED CREDITS 12,861 41,875
---------- ----------
LONG-TERM ENERGY TRADING CONTRACTS 138,420 16,454
---------- ----------
COMMITMENTS AND CONTINGENCIES (Note 8)
TOTAL $3,894,934 $2,809,990
========== ==========
20
OHIO POWER COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
--------------------------------------------------------------------------------
Year Ended December 31,
2000 1999 1998
---- ---- ----
(in thousands)
OPERATING REVENUES $2,227,902 $2,039,263 $2,105,547
---------- ---------- ----------
OPERATING EXPENSES:
Fuel 771,969 687,672 738,522
Purchased Power 184,004 163,143 150,733
Other Operation 407,375 327,132 353,194
Maintenance 124,735 121,299 139,611
Depreciation and Amortization 155,944 149,055 144,493
Taxes Other Than Federal Income Taxes 165,552 165,891 169,353
Federal Income Taxes 191,496 136,242 120,269
---------- ---------- ----------
Total Operating Expenses 2,001,075 1,750,434 1,816,175
---------- ---------- ----------
OPERATING INCOME 226,827 288,829 289,372
NONOPERATING INCOME (LOSS) (5,004) 7,000 588
---------- ---------- ----------
INCOME BEFORE INTEREST CHARGES 221,823 295,829 289,960
INTEREST CHARGES 119,210 83,672 80,035
---------- ---------- ----------
INCOME BEFORE EXTRAORDINARY ITEM 102,613 212,157 209,925
EXTRAORDINARY LOSS - Discontinuance of
Regulatory Accounting for Generation
(inclusive of Tax Benefit of $21,281,000) (18,876) - -
---------- ---------- ----------
NET INCOME 83,737 212,157 209,925
PREFERRED STOCK DIVIDEND REQUIREMENTS 1,266 1,417 1,474
---------- ---------- ----------
EARNINGS APPLICABLE TO COMMON STOCK $ 82,471 $ 210,740 $ 208,451
========== ========== ==========
21
OHIO POWER COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
--------------------------------------------------------------------------------
December 31,
2000 1999
(in thousands)
ASSETS
ELECTRIC UTILITY PLANT:
Production $2,764,155 $2,713,421
Transmission 870,033 857,420
Distribution 1,040,940 999,679
General (including mining assets) 707,417 713,882
Construction Work in Progress 195,086 116,515
---------- -----------
Total Electric Utility Plant 5,577,631 5,400,917
Accumulated Depreciation and Amortization 2,764,130 2,621,711
---------- -----------
NET ELECTRIC UTILITY PLANT 2,813,501 2,779,206
---------- -----------
OTHER PROPERTY AND INVESTMENTS 109,124 221,756
---------- -----------
LONG-TERM ENERGY TRADING CONTRACTS 256,455 31,912
---------- -----------
CURRENT ASSETS:
Cash and Cash Equivalents 31,393 157,138
Advances to Affiliates 92,486 -
Accounts Receivable:
Customers 139,732 246,310
Affiliated Companies 126,203 89,215
Miscellaneous 39,046 22,055
Allowance for Uncollectible Accounts (1,054) (2,223)
Fuel - at average cost 82,291 129,022
Materials and Supplies - at average cost 96,053 95,967
Accrued Utility Revenues 264 45,575
Energy Trading Contracts 1,617,660 134,567
Prepayments and Other 32,882 38,472
---------- -----------
TOTAL CURRENT ASSETS 2,256,956 956,098
---------- -----------
REGULATORY ASSETS 714,710 594,385
---------- -----------
DEFERRED CHARGES 101,690 93,852
---------- -----------
TOTAL $6,252,436 $ 4,677,209
========== ===========
22
OHIO POWER COMPANY AND SUBSIDIARIES
--------------------------------------------------------------------------------
December 31,
2000 1999
(in thousands)
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Stock - No Par Value:
Authorized - 40,000,000 Shares
Outstanding - 27,952,473 Shares $ 321,201 $ 321,201
Paid-in Capital 462,483 462,376
Retained Earnings 398,086 587,424
---------- ----------
Total Common Shareholder's Equity 1,181,770 1,371,001
Cumulative Preferred Stock:
Not Subject to Mandatory Redemption 16,648 16,937
Subject to Mandatory Redemption 8,850 8,850
Long-term Debt 1,077,987 1,139,834
---------- ----------
TOTAL CAPITALIZATION 2,285,255 2,536,622
---------- ----------
OTHER NONCURRENT LIABILITIES 542,017 414,837
---------- ----------
CURRENT LIABILITIES:
Long-term Debt Due Within One Year 117,506 11,677
Short-term Debt - 194,918
Accounts Payable - General 179,691 180,383
Accounts Payable - Affiliated Companies 121,360 64,599
Customer Deposits 39,736 8,196
Taxes Accrued 223,101 179,112
Interest Accrued 20,458 16,863
Obligations Under Capital Leases 32,716 34,284
Energy Trading Contracts 1,662,315 131,844
Other 151,934 88,249
---------- ----------
TOTAL CURRENT LIABILITIES 2,548,817 910,125
---------- ----------
DEFERRED INCOME TAXES 621,941 676,460
---------- ----------
DEFERRED INVESTMENT TAX CREDITS 25,214 35,838
---------- ----------
LONG-TERM ENERGY TRADING CONTRACTS 206,187 24,677
---------- ----------
DEFERRED CREDITS 23,005 78,650
---------- ----------
COMMITMENTS AND CONTINGENCIES (Note 8)
TOTAL $6,252,436 $4,677,209
========== ==========
23
OHIO POWER COMPANY AND SUBSIDIARIES
Consolidated Statement of Retained Earnings
--------------------------------------------------------------------------------
Year Ended December 31,
----------------------------------------
2000 1999 1998
---- ---- ----
(in thousands)
Retained Earnings January 1 $587,424 $587,500 $590,151
Net Income 83,737 212,157 209,925
-------- -------- --------
671,161 799,657 800,076
-------- -------- --------
Deductions:
Cash Dividends Declared:
Common Stock 271,813 210,813 211,101
Cumulative Preferred Stock:
4.08% Series 59 61 63
4.20% Series 96 97 97
4.40% Series 139 142 143
4-1/2% Series 442 460 467
5.90% Series 428 472 487
6.02% Series 66 156 186
6.35% Series 32 32 32
-------- -------- --------
Total Dividends 273,075 212,233 212,576
-------- -------- --------
Retained Earnings December 31 $398,086 $587,424 $587,500
======== ======== ========
24
SOUTHWESTERN ELECTRIC POWER COMPANY AND SUBSIDIARIES
Consolidated Statements of
Income
--------------------------------------------------------------------------------
Year Ended December 31,
--------------------------------------
2000 1999 1998
---- ---- ----
(in thousands)
OPERATING REVENUES $1,124,210 $971,527 $952,952
---------- -------- --------
OPERATING EXPENSES:
Fuel 498,805 379,597 371,414
Purchased Power 77,792 37,371 35,483
Other Operation 159,459 142,385 140,627
Maintenance 75,123 64,241 51,219
Depreciation and Amortization 104,679 108,831 98,479
Taxes Other Than Federal Income Taxes 56,283 58,458 62,207
Federal Income Taxes 23,791 33,582 42,845
---------- -------- --------
Total Operating Expenses 995,932 824,465 802,274
---------- -------- --------
OPERATING INCOME 128,278 147,062 150,678
NONOPERATING INCOME (LOSS) 3,851 (1,965) 2,451
---------- -------- --------
INCOME BEFORE INTEREST CHARGES 132,129 145,097 153,129
INTEREST CHARGES 59,457 58,892 55,135
---------- -------- --------
INCOME BEFORE EXTRAORDINARY ITEM 72,672 86,205 97,994
EXTRAORDINARY LOSS (net of tax of $1,621,000) - (3,011) -
---------- -------- --------
NET INCOME 72,672 83,194 97,994
PREFERRED STOCK DIVIDEND REQUIREMENTS 229 229 705
LOSS ON REACQUIRED PREFERRED STOCK - - (856)
---------- -------- --------
EARNINGS APPLICABLE TO COMMON STOCK $ 72,443 $ 82,965 $ 96,433
========== ======== ========
Consolidated Statements of Retained Earnings
BALANCE AT BEGINNING OF PERIOD AS
PREVIOUSLY REPORTED $288,019 $300,592 $324,050
Conforming Change in Accounting Policy (4,473) (4,011) (3,902)
-------- -------- --------
ADJUSTED BALANCE AT BEGINNING OF PERIOD 283,546 296,581 320,148
NET INCOME 72,672 83,194 97,994
LOSS ON REACQUIRED PREFERRED STOCK - - (856)
DEDUCTIONS:
Cash Dividends Declared:
Common Stock 62,000 96,000 120,000
Preferred Stock 229 229 705
-------- -------- --------
BALANCE AT END OF PERIOD $293,989 $283,546 $296,581
======== ======== ========
25
SOUTHWESTERN ELECTRIC POWER COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
--------------------------------------------------------------------------------
December 31,
2000 1999
(in thousands)
ASSETS
ELECTRIC UTILITY PLANT:
Production $1,414,527 $1,402,062
Transmission 519,317 484,327
Distribution 1,001,237 958,318
General 325,948 333,949
Construction Work in Progress 57,995 52,775
---------- ----------
Total Electric Utility Plant 3,319,024 3,231,431
Accumulated Depreciation and Amortization 1,457,005 1,384,242
---------- ----------
NET ELECTRIC UTILITY PLANT 1,862,019 1,847,189
---------- ----------
OTHER PROPERTY AND INVESTMENTS 39,627 37,080
---------- ----------
LONG-TERM ENERGY TRADING CONTRACTS 63,028 -
---------- ----------
CURRENT ASSETS:
Cash and Cash Equivalents 1,907 3,043
Accounts Receivable:
Customers 42,310 49,939
Affiliated Companies 11,419 6,053
Allowance for Uncollectible Accounts (911) (4,428)
Fuel Inventory - at average cost 40,024 60,844
Materials and Supplies - at average cost 25,137 26,420
Under-recovered Fuel Costs 35,469 -
Energy Trading Contracts 457,936 -
Prepayments 16,780 15,953
---------- ----------
TOTAL CURRENT ASSETS 630,071 157,824
---------- ----------
REGULATORY ASSETS 57,082 47,180
---------- ----------
DEFERRED CHARGES 10,707 16,942
---------- ----------
TOTAL $2,662,534 $2,106,215
========== ==========
26
SOUTHWESTERN ELECTRIC POWER COMPANY AND SUBSIDIARIES
--------------------------------------------------------------------------------
December 31,
---------------------------
2000 1999
---- ----
(in thousands)
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Stock - $18 Par Value:
Authorized - 7,600,000 Shares
Outstanding - 7,536,640 Shares $ 135,660 $ 135,660
Paid-in Capital 245,000 245,000
Retained Earnings 293,989 283,546
---------- ----------
Total Common Shareholder's Equity 674,649 664,206
Preferred Stock 4,704 4,706
SWEPCO - obligated, mandatorily redeemable
preferred securities of subsidiary trust
holding solely Junior Subordinated
Debentures of SWEPCO 110,000 110,000
Long-term Debt 645,368 495,973
---------- ----------
TOTAL CAPITALIZATION 1,434,721 1,274,885
---------- ----------
OTHER NONCURRENT LIABILITIES 11,290 9,255
---------- ----------
CURRENT LIABILITIES:
Long-term Debt Due Within One Year 595 45,595
Advances from Affiliates 16,823 140,897
Accounts Payable - General 107,747 60,689
Accounts Payable - Affiliated Companies 36,021 39,117
Customer Deposits 16,433 14,236
Taxes Accrued 11,224 24,374
Interest Accrued 13,198 9,792
Energy Trading Contracts 466,198 -
Other 15,064 12,623
---------- ----------
TOTAL CURRENT LIABILITIES 683,303 347,323
---------- ----------
DEFERRED INCOME TAXES 399,204 376,504
---------- ----------
DEFERRED INVESTMENT TAX CREDITS 53,167 57,649
---------- ----------
REGULATORY LIABILITIES AND DEFERRED CREDITS 18,288 40,599
---------- ----------
LONG-TERM ENERGY TRADING CONTRACTS 62,561 -
---------- ----------
COMMITMENTS AND CONTINGENCIES (Note 8)
TOTAL $2,662,534 $2,106,215
========== ==========
27
WEST TEXAS UTILITIES COMPANY
Statements of Income
--------------------------------------------------------------------------------
Year Ended December 31,
---------------------------------------
2000 1999 1998
---- ---- ----
(in thousands)
OPERATING REVENUES $ 572,794 $ 445,709 $ 424,953
---------- ---------- ----------
OPERATING EXPENSES:
Fuel 183,154 123,348 122,836
Purchased Power 127,583 61,532 48,131
Other Operation 93,078 94,290 90,061
Maintenance 21,241 19,604 16,666
Depreciation and Amortization 55,172 50,789 42,750
Taxes Other Than Federal Income Taxes 25,321 28,267 24,638
Federal Income Taxes 14,904 14,080 20,595
---------- ---------- ----------
Total Operating Expenses 520,453 391,910 365,677
---------- ---------- ----------
OPERATING INCOME 52,341 53,799 59,276
NONOPERATING INCOME (LOSS) (1,675) 2,488 2,712
---------- ---------- ----------
INCOME BEFORE INTEREST CHARGES 50,666 56,287 61,988
INTEREST CHARGES 23,216 24,420 24,263
---------- ---------- ----------
INCOME BEFORE EXTRAORDINARY ITEMS 27,450 31,867 37,725
EXTRAORDINARY LOSS - (net of tax of $2,941,000) - (5,461) -
---------- ---------- ----------
NET INCOME 27,450 26,406 37,725
PREFERRED STOCK DIVIDEND REQUIREMENTS 104 104 104
---------- ---------- ----------
EARNINGS APPLICABLE TO COMMON STOCK $ 27,346 $ 26,302 $ 37,621
========== ========== ==========
28
WEST TEXAS UTILITIES COMPANY
Statements of Retained Earnings
--------------------------------------------------------------------------------
Year Ended December 31,
--------------------------------------
2000 1999 1998
---- ---- ----
(in thousands)
BALANCE AT BEGINNING OF PERIOD AS
PREVIOUSLY REPORTED $115,856 $117,189 $119,479
CONFORMING CHANGE IN ACCOUNTING POLICY (2,614) (2,249) (2,160)
-------- -------- --------
ADJUSTED BALANCE AT BEGINNING OF PERIOD 113,242 114,940 117,319
NET INCOME 27,450 26,406 37,725
DEDUCTIONS:
Cash Dividends Declared:
Common Stock 18,000 28,000 40,000
Preferred Stock 104 104 104
-------- -------- --------
BALANCE AT END OF PERIOD $122,588 $113,242 $114,940
======== ======== ========
29
WEST TEXAS UTILITIES COMPANY
Balance Sheets
--------------------------------------------------------------------------------
December 31,
2000 1999
---- ----
(in thousands)
ASSETS
ELECTRIC UTILITY PLANT:
Production $ 431,793 $ 429,783
Transmission 235,303 220,479
Distribution 416,587 403,206
General (including nuclear fuel) 110,832 113,945
Construction Work in Progress 34,824 15,131
---------- ----------
Total Electric Utility Plant 1,229,339 1,182,544
Accumulated Depreciation and Amortization 515,041 495,847
---------- ----------
NET ELECTRIC UTILITY PLANT 714,298 686,697
---------- ----------
OTHER PROPERTY AND INVESTMENTS 23,154 21,570
---------- ----------
ENERGY TRADING CONTRACTS - LONG-TERM 20,944 -
---------- ----------
CURRENT ASSETS:
Cash and Cash Equivalents 6,941 6,074
Accounts Receivable:
Customers 36,217 45,928
Affiliated Companies 16,095 4,837
Allowance for Uncollectible Accounts (288) (186)
Fuel - at average cost 12,174 17,133
Materials and Supplies - at average cost 10,510 14,029
Underrecovered Fuel Costs 67,655 14,652
Energy Trading Contracts 152,174 -
Prepayments 851 619
---------- ----------
TOTAL CURRENT ASSETS 302,329 103,086
---------- ----------
REGULATORY ASSETS 24,808 29,745
---------- ----------
DEFERRED CHARGES 3,399 20,107
---------- ----------
TOTAL $1,088,932 $ 861,205
========== ==========
30
WEST TEXAS UTILITIES COMPANY
--------------------------------------------------------------------------------
December 31,
---------------------------
2000 1999
---- ----
(in thousands)
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Stock - $25 Par Value:
Authorized - 7,800,000 Shares
Outstanding - 5,488,560 Shares $ 137,214 $137,214
Paid-in Capital 2,236 2,236
Retained Earnings 122,588 113,242
---------- --------
Total Common Shareholder's Equity 262,038 252,692
Cumulative Preferred Stock:
Not Subject to Mandatory Redemption 2,482 2,482
Long-term Debt 255,843 263,686
---------- --------
TOTAL CAPITALIZATION 520,363 518,860
---------- --------
CURRENT LIABILITIES:
Long-term Debt Due Within One Year - 40,000
Advances from Affiliates 58,578 21,408
Accounts Payable - General 45,562 39,611
Accounts Payable - Affiliated Companies 42,212 19,770
Customer Deposits 2,659 2,396
Taxes Accrued 18,901 12,458
Interest Accrued 3,717 4,165
Energy Trading Contracts 154,919 -
Other 7,906 5,510
---------- --------
TOTAL CURRENT LIABILITIES 334,454 145,318
---------- --------
DEFERRED INCOME TAXES 157,038 148,992
---------- --------
DEFERRED INVESTMENT TAX CREDITS 24,052 25,323
---------- --------
REGULATORY LIABILITIES AND DEFERRED CREDITS 32,236 22,712
---------- --------
ENERGY TRADING CONTRACTS - LONG-TERM 20,789 -
---------- --------
COMMITMENTS AND CONTINGENCIES (Note 8)
TOTAL $1,088,932 $861,205
========== ========