ML17317B486
| ML17317B486 | |
| Person / Time | |
|---|---|
| Site: | Cook  |
| Issue date: | 08/24/1979 |
| From: | Dolan J INDIANA MICHIGAN POWER CO. |
| To: | |
| Shared Package | |
| ML17317B487 | List: |
| References | |
| NUDOCS 7908280671 | |
| Download: ML17317B486 (36) | |
Text
UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of INDIANA & MICHIGAN ELECTRIC COMPANY and Docket Nos. 50-315 INDIANA & MICHIGAN POWER COMPANY 50-316 (Donald C. Cook Nuclear Plant, Units 1 and 2)
APPLICATION FOR AMENDMENT OF FACILITY OPERATING LICENSES NOS. DPR-58 and DPR-74 Indiana & Michigan Electric Company and Indiana & Michigan Power Company (" Licensees" ) are presently co-holders of Facility Operating Licenses Nos. DPR-58 and DPR-74 for Unit No. 1 and Unit No. 2, respectively, of the Donald C. Cook Nuclear Plant.
Indiana & Michigan Power Company is a wholly-owned subsidiary of Indiana & Michigan Electric Company. It is proposed to merge Indiana & Michigan Power Company into Indiana & Michigan Electric Company. Indiana & Michigan Electric Company will be the surviv-ing corporation and will have a 100% direct ownership interest in said Units.
By this application, Licensees respectfully request that the Nuclear Regulatory Commission amend said Facility Operating Licenses Nos. DPR-58 and DPR-74 to (1) reflect the planned merger of Indiana
& Michigan Power Company into Indiana & Michigan Electric Company and the transfer of Indiana & Michigan Power Company's ownership interest in said Units to Indiana & Michigan Electric Company
ll and (2) delete Indiana & Michigan Power Company from said Facility Operating Licenses, including the Technical Specifications incorporated by reference therein. Licensees further request that the Nuclear Regulatory Commission approve this amendment in such manner that it will become effective as of the effective date of the merger. Licensees will advise the Commission of the merger as soon as possible following the effective date thereof, which is presently anticipated to be on or before December 31, 1979. Following receipt of all necessary regulatory approvals and as of the effective date of the merger, the entire ownership of the Donald C. Cook Nuclear Plant Units Nos. 1 and 2 will be vested in Indiana & Michigan Electric Company and that company will be the sole holder of Facility Operating Licenses Nos. DPR-58 and DPR-74..
N Licensees submit that the requested amendment involves no significant hazards consideration within the meaning of 10 CFR 550.91. Employees of Indiana & Michigan Power Company will become employees of Indiana & Michigan Electric Company as of the effective date of merger. There will be no other changes in personnel, operating procedures, or practices as a result of the merger. The merger will have no adverse effect upon the financial qualifications of Indiana & Michigan Electric Company and will not adversely affect the ability of Indiana & Michigan Electric Company to satisfy Commission requirements as to financial qualifications.
w~ J3J.D J JV. -)l13 2 a"...
The latest published Annual Report of Indiana 6 Michigan Electric Company and the Financial Statements submitted by the Licensees to the Securities and Exchange Commission with respect to the merger are attached to this Application.
Dated this 5 p ~ day of ~ , 1979.
INDIANA 6 MICHIGAN ELECTRIC COMPANY By ohn E. Dolan Vice President INDIANA 6 MICHIGAN POWER COMPANY By ohn E. Dolan Vice President
a~
. t
STATE OF NEW YORK )
) st COUNTY OF NEW YORK )
John E. Dolan, being duly sworn, deposes and says that he is the Vice President of licensees Indiana 6 Michigan Electric Company and Indiana 6 Michigan Power Company; that he has read the foregoing Application for Amendment of Facility Operating Licenses Nos. DPR-58 and DPR-74 and knows the contents thereof; and that said contents are true to the best of his knowledge and belief.
Subscribed and sworn to before me this QYA.day of ~~, 1979.
otary Public JPIIN B. SHtNNPPK liotary Pubhc State ot Near yorft No. 31-4634146 Qualified in New York county Commfsston Expires bsarch 30 19
ATTACHMENTS
- 2. 'inancial Statements:
Balance Sheets as of March 31, 1979 and Income and Earned Surplus'Statements, per books, for the 12 months ended March 31, 1979, of Indiana 6 Michigan Electric, of Indiana &
Michigan Electric and Indiana 6 Michigan Power consolidated, of Indiana 6 Michigan Power, and of American Electric Power Company, Inc. and its subsidiaries consolidated.
4'NDIANA C MICHIGAN ELECTRIC COMPANY CORPORATE STATED(ENT OF INCOME (UNAUDITED)
Three Twelve Months Ended "
MontM Ended March 31. March 31.
1979 1978 1979 1978 (Zn Thousands)
OPERATING REVENUES - Electzic (Note 1) . ~ $ 171, 029 $ 145, 106 $ 629 4 404 $ 529,671 OPERATING EXPENSES c Operation:
Fuel for Elect"ic Generation. 26,750 18,802 97,725 62,665 Purchased and Znterchange Power (Net) (Nota 1).... ... ...
~ ~ 83,657 69,026 324,259 264,792 Othaz. 11,437 105078 47,520 37,409 Maintenance. 6,578 6,037 276993 25,704 Depreciation. 8,247 7,367 319246 279920 Taxes, Other Than Income Taxes. 5,246 5.281 18,970 18,368 State Incone Taxes 218 178 (339) 783 Federal Zncone Taxes. 6,532 14 9 4.821 4,639 TOTAL OPERATING EXPENSES 14&,665 116,918 552,1 5 442,280 OPERATING ZNCOMED 22.364 ~ 28.188 77.2D9 87. 91 OTHER INCOME AND DEDUCTIONS)
Allowance for Other Funds Used Duri'ng Construction...... 5.182 2,466 189718 8,889 Equity in Eaznings of Subsidiaries0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 139409 10,753 54,209 45,266 Znterast on Notes of Generating Subsidiary.......... ... . ~ ~ ~ . 2,027 1,376 6,899 59004 Miscellaneous Nonoperating Income Less Deductions....... 79 200 833 940 TOTAL OTHER ZNCOHE AND DEDUCTZONS .. ~ ~ ~ ~ ~ .. ~ ~ ~ 2D.697 14.795 80,659 60,099 INCOME BEFORE INTENT CHARGE&9 .~ ..... .,.... .. ~ 43.061 42.983 157 868 147.490 IhTEREST CHARGES c Interest on Long-tern Debt. 13,913 11,246 51,917 42.148 Interest on Short-tarn Debt 2,506 1. 190 7 9280 5,614 Miscellaneous Znterest Charges. 409 306 1,070 70 1 TOTAL INTEREST CHARGES 169828 12 9742 604267 489464 Allowance for Borrowed Funds Used During Construction (W ~t)
~6 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ (4,282) (1,955) (15.545) (7 . 1 0 D)
NET IhTEREST CHARGES 12,546 10.787 44.722 41.364 CORPORATE NET ZNCOME 6 30.515 5 32.196 6'13,146 51D6.1"6 The conmon stock of the Company is wholly owned by American Elect"ic Power Company, Inc.
Saa Note to Corpor'ata Financial Statements. Also see Notes to Consolidated Financial Statements incorporated herein by reference.
INDIANA & MZCHZGAN ELECTRIC COMPANY CORPORATE, BALANCE SHEET (UNAUDITED)
March 31, 1979 1978 (Zn Thousands)
ASSETS AND OTHER DEBITS ELECTRIC UTILITY PLANT (at oziginal cost):
P zoduction...................... ~ ~ ~ ~ ~ ~ $ 355,681 $ 341 g 328 Transmission..'........ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 422,477 401,729 Distzibution o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ 258,757 245,948 General and Miscellaneous (includes Nuclear Fuel) ~ ~ o ~ ~ ~ 3 ~ 42,486 51,293 Construction Work in Progress.............. 331,822 151,959 TOTAL ELECTRIC UTZLZTY PLANT- ~ ~ ~ - ~ ~ ~ ---- ~ ~ ~ ~ ~ 1 g41 1 g223, 1 g 192 g257 Less Accumulated Provision for Depreciation.............. 337.733 312,346 ELECTRIC UTILITY PLANT, LESS PROVISION.............. 1,073,490 879,911 OTHER PROPERTY AND INVESTMENTS:
Investments in Generatina Subsidiary:
C ommon Equity, (at equity)............................. 438,338 433,631 Subordinated Notes.................. 69,000 69,000 0 ther o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 178,181 141,642 TOTAL OTHER PROPERTY AND INVESTMENTS................ 685,519 644,273 CURRENT ASSETS:
Cash and Cash Items o ~ ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ ~ o ~ ~ 33,087 59,881 Accounts Receivable:
General (less provision for uncollectible accounts ) ~ ~ ~ ~ 63,674 41,798 Associated Companxes........-..-.....-.-...-.-- 9,526 17,157 Materials and Supplies (at average cost or less):
Construction and Operation Materials and Supplies. 12g 150 10,427 F uel............ ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 19, 632 10,363 Accrued Utility Revenues.............. 8,658 15,745 Prepayments and Other Current Assets. 3 177 2,845 TOTAL CURRENT ASSETS. 149,904 158,216 DEFERRED DEBITS Unamortized Debt Expense. 1,794 1,699 Property Taxes...... 8,847 8,096 Deferred Collection of Fuel Costs ~ ~ ~ ~ ~ ~ ~ o o 1,512 1,655 Other Work in Pzogress. 4,026 6,194 Other Deferred Debits...... 32,230 32.466 TOTAL DEFERRED DEBITS 48,409 50,110 TO TALo ~ ~ ~ ~ o ~ ~ o ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 31,957,322 31,732,510 See Note to Corporate Financial Sta ement;S. Also see Notes Zo 'Consolidated Financial Statements incorporated herein by reference.,
INDIANA & MICHIGAN ELECTRIC COMPANY CORPORATE BALMCE SHEET (UNAUDITED)
March 31, 1979 1978 (Zn Thousands)
LIABILITIES AND OTHER CREDITS CAPITALIZATION:
Common Stock No Par Value:
Authorized 2,500,000 Shares Outstanding 1,400,000 Shares........... $ 56,584 $ 56,584 Premium on Capital Stock........ 381 381 Other Paid-in Capital.........- ~ 484,228 450,228 Retained Earnings...... ~ . ~ ~ . ~ .-- ~-- ' ~ ~ ~ ~ ~ 143,619 116,474 Total Common Shareowner's Equity..... 684,812 623,667 Cumulative Preferred Stock............................. 227,000 227,000 Long-term Debt (less portion due within one year)(Note 2) 721,400 647,876 Total Capitalization (less long-term debt due within one year)...................... ~ ~ 1,633,212 1,498,543 CURRENT LIABILITIES:
Long- tezmDebt Due Within One Year 5,254 29,171 Short-term Debt:
Notes Payable to Banks.. 41,990 Commercial Paper........ 50,315 Accounts Payable:
General................. ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 20,136 30,199 Associated Companies. 52,323 34,254 Dividends Declared 15,974 3,854 Taxes Accruedo o ~ ~ ~ ~ ~ o ~ o ~ o ~ 23,075 21,154 Interest Accrued.......... 15,977 13,898 Other Current Liabilities. 10,275 20,427 TOTAL. CURRENT LIABILITIES........................ 235,319 152,957 DEFERRED CREDITS AND OPERATING RESERVES:
Deferzed Income Taxes. 74,845 68,093 Deferred Znvestment Tax Credits.......................... 6,825 8,088 Other Deferred Czedits and Operating Reserves............ 7,121 4,829 TOTAL DEFERRED CREDITS AND OPERATING RESERVES.... 88,791 81,010 TO TALo ~ ~ ~ ~- ~ ~ ~ ~ o ~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ 51,957,322 31,732,510 See Note to Corporate Financial Statements. Also see Notes to Consolidated Financial--Statemen'ts incorporated herein by refere'nce.
INDIANA a MICHIGAN ~C CORPORATE STATEMENT OF SOURCES OF COMPANY FUNDS FOR PIANT AND PROPERTY ADDITIONS (UNAUDITED)
Three Twelve Months Ended Months Ended March 31, March 31, 1979 1978 1979 1978 (In Thousands)
FUNDS FROM OPERATZONS. .~ $ 38,933 $ 35,74'7 $ 125,159 $ 121,536 FUNDS FROM FZNANCINGS:
Zssuances and Contrlbutionsa Long-tem Debt. 79,529 99,610 79,757 175,001 Cumulative Preferred Stock. 38,547 (6).) 76,667 Capital Contributions fxeu Parent Coapany............. 14,000 409000 34,000 74,000 Short-tern Debt (Net). 92.305 TOTAL. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 93.529 178, 157 206.D01 325,668 Less - Retires(entsc Long-terr) Debt. 903 30,885 30,395 35,861 Short-terrL Debt (Net) . 32.635 101.850 155 534 NET FUNDS FROM FI)a><CZNGS. ~................. 59,991 45,422 175.606 134 2'73 DIVIDENDS ON COMMON STOCK ~ (18.970) (14,9801 (66.682) (55.3DD)
DIVIDENDS ON CUMULATIVE PREFERRED STOCK. (4.755) (3 8541 (19,257) (14,901)
SALES OF PROPERTY ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ \ ~ 9 ~ ~ 32.246 267 75,252 85,264 OTHER CHANGES (NET) ~ (541) (9,829) 1,859 ~
(6,993)
DECREASE (INCRFASE) IN WORKING CAPITAL EXCLUDING SNORT TERM DEBT AND LONG TERM DEBT DUE WITHIN ONE YEAR ~ ~ ~ ~ ~ ~ ~ ~ ~ (42,942) 6,491 22,285 (52.562)
$ 63,962 3 59.264 $ 314.222. S211.317 PLANT AND PROPERTY ADDITIQNS$
Gross Additions to Utility Plant $ 619934 $ 58,296 298,139 192,668 Gross Other Additions.. 7,210 3 ~ 34 34.801 27 '38 TOTAL GROSS ADDI ZONS 69 144: 61.730 332)940 220,206 Allowance for Other Funds Used During Construction......... (5.182) (2.466) (18,718) (8 889)
$ .63.962 $ 59.264 $ 314.222 7211.317 See Note to Corporate Financial Statenents. Also see Notes to Consolidated Financial Scatements incorporated herein by reference.
I?(DIAl(A & MICHIGAN ~C (UNAUDITED STATEMENT OF RETAINED EARNINGS COMPAVl
}
Three Twelve Months Ended Months Ended March 31, March 31, 1979 1978 1979 1978 (Zn Thousands)
BALANCE AT BEGZNNZNG OP PERIOD>> ~ $ 136 829 $ 1040566 $ 116 ~ 474 $ 83 ~ 882 CORPORATE NET INCOME. 30.515 32.196 113.146 106,126 TOTAL 167,344 136,762 229,620 190 008 DEDUCTIONS:
Cash Dividends Declared a Cocoon Stock 18,970 14.980 66,682 55,300 Cuaulative PreEerred Stock. 4.755 3,054 19 257 14,901 TOTAL DIVIDENDS~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 23,725 18,834 85,939 700201 Capital Stock Expense. 1.454 62 3 333
'00AL DEDUCTIONS 23,725 20.280 06,001 73.534 BALANCE AT END OF PERIOD. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ $ 143,619 $ 116.474 $ 143.619 $ 116.474 See Note to Corporate Financial Statements. Also see Notes to Consolidated Financial Statenents incorporated herein by reFerence.
INDIANA & MZCHZGAN EIZCTRZC COMPANY NOTES TO CORPORATE FZNANCZAL STATEMENTS March 31, 1979 (UNAUDITED)
A. PROPOSED ESTABLISHMENT OF COAL-MINING SUBSIDIARY The Company has filed with the Securities and Exchange Commission a request to transfer to a new subsidiary certain coal-mining assets having a net book cost of approximately $ 119,000,000, less related liabilities amounting to approximately $ 8,000,000 in exchange for such subsidiary's common stock and indebtedness to the Company.
ZNDZANA & MZCEZGAN ELECTRIC CO4MPAHY AND GENERATZNG SUBSIDZARY CONSOLIDATED STATE."KNT OF INCOME (UNAUDZTED)
Three Twelve Months Ended Monchs Ended March 31, March 31, 1979 1978 1979 1978 (In Thousands)
OPERATZNG RVENUES - Electric (Note 1) ~ .. $ 171,029 $ 145.106 5629,494 552..671 OPERATING EXPENSES:
Ope a ion:
Fuel for Electr'c Generation.. 42,729 25,300 1429704 82,931 Purchased and Xnterchange Power (Net) (Note 1)........... 12,669 355905 93,516 140,635 Other. 15,818 12,541 62,838 45,997 Ma ntenance.
4 8,753 7,466 34,011 29,751 Depreciation. 18,232 12,879 65,198 49,831 Taxes, Othe" Than Income Taxes.... 7,529 6,910 27,051 23,728 State Income Taxes............. .. ~ 218 178 (339) 783 Fede al Income Taxes. 17,437 2,374 38,501 15,871 TOTAL OP~M%TING EXPENSES ~ 123,385 103,553 463,480 389,527 OPERA XHG INCOME. 47,644 41,553 165,924 140,144 OTHER INCOME AND DEDUCTIONS:
Allowance for Other Funds Used During Construction......... 5,326 7,531 25,770 28,008 M'scellaneous Nonoperating Zncome Less Deduc fons.......... 79 251 867 1,066 TOTAL ~R ZNCOME AND DEDUCTIONS ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 5,405 7,782 26,637 29.074 INC 5K BEFORE XHTEREST CBARGES...... ~ .. .... ........ . .~ .. 53.049 49.335 192,561 169. 218 INTEREST CHARGES:
Interest on Long-term Debt. 23,928 21,099 92,225 77,412 Interest on Short-term Debt. 2,506 1, 190 7,280 5,614 Miscellaneous Interest Charges. 495 344 1,437 885 TOTAL INTEREST CHARGES 26,929 22,633 1003942 83,911 Allowance for Borrowed Funds Used During Construction (Credit) . (4.395> (5,494( (21 5271 (20 819)
NET IHTKKST CHARGES. 22,534 17,139 79,415 63,092 CONSOLZDAT D )KT ZHCOFX. ~ ~ $ 30 515
~ $ 32 ~ 196 $ 113 ~ 146 $ 106 ~ 126 The common s ock of the Company fs wholly owned by American Elect"ic Power Company, Inc.
See Notes to Consolidated Financial Statements.
~ ~
'INDZANA 6 MICHIGAN ELECTRIC COMPANY AND GENERATING SUBSIDIARY CONSOLIDATED BALANCE SHEET (UNAUDITED)
March 31, 1979 1978 (In Thousands)
"ASSETS AND OTHER DEBITS ELECTRIC UTILITY PLANT (at original cost):
Production. ~ o ~ ~ ~ ~ ~ ~ 0 ~ ~ ~ ~ ~ ~ ~ ~ 1 ~ $ 1,357,937 895,208 Transmission ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 422-,477 401,729 Distribution... 258,757 245,948 General and Miscellaneous (includes Nuclear Fuel). 43,166 51,939 Construction Work in Progress........ 346,793 570,801 TOTAL ELECTRXC UTILITY PLANT...... ~ 2,429,130 2,165,625 Accumulated Provision for Depreciation.......
.'ess 427,570 368,233 ELECTRIC UTZLITY PLANT, LESS PROVISION.............. 2,001,560 1,797,392 OTHER PROPERTY AND ZNVESTMENTS... ~ ~ ... ~ ~ ~ ..- ~ 178,181 141,642 CURRENT ASSETS:
Cash and Cash Items........... 35,355 107,355 Accounts Receivable:
General (less provision for uncollectible accounts). 63,911 42,108 Associated Companies..................... 7,293 12,465 Materials and Supplies (at average cost or less):
Construction and Operation Materials and Supplies... 14,462 12,031 F uel. 19.,678 10,414 Accrued Utility Revenues................ 8,658 '5,745 Prepayments and Other Current Assets. 3.772 3,318 TOTAL CURRENT ASSETS......... ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 153,129 203,436 DEMRRED DEBITS:
Unamortized Debt Expense.. 3,171 2, 178 Property Taxes.....'..... 8,847 8,096 Deferred Collection of Fuel C osts ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 1,512 1,655 Other Work in Progress..... 9,073 9,136 Other Deferred Debits ~ ~ 30,120 38,840 TOTAL DEFERRED DEBITS. 52,723 59,905 TOTALo ~ ~ ~ $ 2.395,593 52,202,375 See Notes to Consolidated Financial Statements.
<0
~ ~ ~ ~
INDIANA & MICHIGAN ELECTRIC COMPANY AND GENERATING SUBSIDIARY CONSOLIDATED BALANCE SHEET (UNAUDITED)
March 31, 1979 1978 (Zn Thousands)
LIABILITIES AND OTHER CREDITS CAPITALIZATION:
Common Stock No Par Value:
Authorized 2,500,000 Shares Outstanding 1,400,000 Shares............ $ 56,584 $ 56,584 Premium on Capital Stock 381 381 Other Paid-in Capital...... 484,228 450,228 Retained Earnings........ 143,619 116,474 Total Common Shareowner's E~ty.................... 684,812 623,667 Cumulative Prefe red Stock......................... ~ ..... 227,000 227,000 Long"term Debt (less portion due within one year) (Note 2) 1,095,969 1,090,914 Total Capitalization (less long-tean debt due within one year)....................... 2,007,781 1,941,581 CURRENT LIABILITIES:
Long term Debt Due Within One Year 7,504 31,421 Short-term Debt:
Notes Payable to Banks. 41,990 Commercial Paper 50,315 Accounts Payable:
General............. 21,633 32,216 Associated Companies.... 21'19 2,872 Dividends. Declared. 15,974 3,854 Taxes AccruedO ~ ~ ~ 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
26,900 22,979 Interest Accrued............. 27,143 24,409 Other Current Liabilities.... 3 18,548. 23 I 333 TOTAL CURRENT LIABILITIES.............. 231,326 141,084 DEFERRED CREDITS AND OPERATING RESERVES:
Deferred Income Taxes. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ 128,303 105,299 Deferred Investment Tax Credits................ 10,748 8,954 Other Deferred Credits and Operating Reserves............ 7,435 5,457 TOTAL DEFERRED CREDITS AND OPERATING RESERVES....... 146,486 119,710
$2 385 593 $ 2,202,375 See Notes to Consolidated Financial Statements.
i4 6 9
~ 9 JR INDIANA S MICHIGAN ~CTRZC COMPANY AND GENERATING SUBSZDIARY CONSOLIDATE) STATEMENT OF RETAINED EARNINGS
{UNAUDITED)
Three Twelve Months Ended Months Ended March 31, March 31.
1979 1978 1979 1978 tIn Thousands)
CE AT BEGINNZNG OF PERIOD... ~ . ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 8136,829 8104 6566 S116$ 474 S 839882 CONSOLIDATED NET INCOME 39,515 32.196 113.146 106,126 TOTAL~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
W7 ~44 136 762 229 62D 19D.DDD DEDUCTIONS:
Dividends:
Common Stock. 18, 970 149980 66,682 55,300 Cumulative Preferred Stock. ~2'. 3>854 14,901 TOTAL DZVIDZZU)S 23,725 189834 85,940 70,201 Capital Stock Expense.
4
~i4 3.3 3 TOTAL DEDUCTZONS ~ ~DR R 86.001 73.534 BAIANCE AT END OF PERlOD. $ 143.619 $ 116.474 $ 143.619 6'16.474 See Notes to Consolidated Financial Statements.
4
INDIANA & MICHIGAN ELECTRIC COMPANY AND GENERATING SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STAT~S MARCH 31, 1979 (Unaudited)
- l. AMOUNTS SUBJECT TO REFUND The Company has collected from wholesale rate increases placed into effect subject to refund aggregate amounts approximately as follows:
1979 1978 (Zn Thousands)
Three Months Ended March 31,....... $ 7,144 $ 5,794 Twelve Months Ended March 31,...;.. 21,111 18,190 Cumulative to March 31,............ 48,626 Commencing in June 1975, operating expenses include the effect of changes in rates charged for interchange power transactions between the Company and other companies in the American Electric -Power System. The effect of such changes was to increase the charges to the Company subject to possible refund by its interchange power suppliers, by the followinc estimated amounts:
1979 1978 (In Thousands)
Three Months Ended March 31,....... $ ~ 7,317 Twelve Months Ended March 31,...... 20,172 28,241 Cumulative to March 31,............ 105,824 On February 23, 1978, an administrative law judge of the FERC is-sued an initial decision ordering one of tEie affiliated interchange power suppliers to make certain refunds, after recomputing interchange charges for the period subsequent to June 1975 on the basis of the interconnection agree-ment in effect prior to that date, but excluding from such calculations as member capacity, in the case of the Company, the capacity owned by the Gen-crating Subsidiary and, in the case of another member of the System, the capacity owned by its generating subsidiary. If the change is finally
K ~o
~ ~ ~ 4~ Sa ordered by FERC, the Company could become entitled to refunds in a sub-stantial amount. Certain intezven'ors have urged that .changes be made in the interconnection agreement which would have the opposite effect, in-creasing the amounts payable by the Company. The AEP System subsidiaries, including the Company, have filed a brief which urges that the action of the administrative law judge be revised so as to sustain the 1975 mod-ification, but cannot predict the final outcome of the proceeding or the effect thereof on the Company.
- 2. LONG-TERM DEBT:
Long-term debt by major category was outstanding as follows (less portion due within one year): March 31, 1979 1978 (Zn Thousands)
First Mortgage Bonds..............$ 956,205 5819762 Sinking Fund Debentures........... 23,953 25,117 Notes Payable to Banks due 1980... ,
11,000 375,000 Installment Purchase Contracts.... 99,931 99,841 Other Long>>term Debt.............. 4,880 9,194 Total (less portion due within one year) .. 61,095.969 61,090. 914
- 3. CONTZNGENCZES The Company continues to be involved in the legal proceedings dis-
'closed in the 1978 annual zepozt,.
- 4. RECLASSIFICATZONS Certain prior-period amounts have been reclassified to conform with classifications used currently.
5b
- 5. FINANCING AND RELATED ACTIVITIES In January, 1979, the Company issued and sold $ 80,000,000 princi-pal amount of its 10-1/4% first mortgage bonds due 1987.
In February, 1979, the Company cancelled and redeemed $ 750,000 pzincipal amount of its 10% first mortgage bonds due 1985, required by the sinking fund provision of such Bonds.
As was previously reported in the Company's 1978 Annual Report,,on March 1, 1979, the Generat,ing Subsidiary issued and sold, to certain in-surance companies, $ 45,000,000 aggregate principal amount of its First.
Mortgage Bonds, 9-1/2% Series due 2003, at a price equal to the principal amount thereof. On the same day, the Generating Subsidiary. applied proceeds fzom the sale of the bonds towards prepayment of $ 71,000,000 aggregate prin-cipal amount of Notes Payable to Banks, due 1980.
Zn January, 1979, the Company received $ 14,000,000 of cash capital contributions from its parent, American Electric Power Company, Znc..
- 6. EVENT SUBSEQUENT TO MARCH 31, 1979 Zn May 1979, the City of Sullivan, Indiana issued and sold $ 20,000,000
\
principal amount of pollution contzol revenue bonds ($ 7,000,000 at, 7 3/8% due 2004 and $ 13,000,000 at 7 1/2% due 2009), secured by' pledge of payments to be made to the City under an Agreement of Sale between the City and the Company.
The proceeds from the sale of these bonds pere used to provide a portion of the funds zequired for the acquisition, construction, installation and equipping of certain air pollution control facilities at the Company's Breed Plant.
INDIANA & MICHIGAN POWER COMPANY STATHKNT OF INCOME (UNAUDITED)
Three Twelve Months Ended Mon hs Ended Mazch 31 March 31, 1979 1978 1979 la78
- Electrics (Zn Thousands)
OPERATZNG REVENUES Sales to Parent Company-Indiana & Michigan Electzic Company. $ 70,988 533,064 823 ~,461 8124.107 OPERATXNG EXPENSES:
Ooeration:
Fuel for Electric Generation. 158979 68498 448979 20,160 Othe 48381 2,406 19,036 8,645 Maintenance. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 2, 175 1,429 6,018 4,047 Depreciation. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 9,985 5,512 33,952 21,911 Taxes, Other Than Federal Income Taxes 2,283 1,629 8,081 5,360 Federal Income Taxes. 10,905 2,225 33,680 11,232 Total Operating Expenses. 45,708 19.699 145,746 71 355 OPERATING INCOR. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 25,280 134365 66,715 52,752 OTHER XNCC)5% AND DEDUCTIONS:
Allowance for Other Funds Used During Construction..... ~ .~. 144 5,065 7, Q52 19,119 Interest Zncome Less Deductions. 51 32 125 Tocal Other Income and Deductions..... 144 5,116 7,084 19."CC INCOME BEFORE ZNT RMT CHARGESC 25,424 18,481 95,799 71'96 INTEREST CHARGES (
Xnterest on Long-term Debt (Other than to Parent Company).. 10,015 9,853 40,308 35,264 Interest on Long-tern Debt to Parent Company............... 2,027 1,376 6,899 5,004 Miscellaneous Interest Charges.........-.... "" . ..- ~ " . ~ ~ ~ 86 38 36 183 Total Interest Charges............................... 12, 128 11,267 47,574 40,451 Allowance for Bozzowed Funds Used During Constzuction (Credit) . ~ ~ ~ ~ ~ ~ (113) (3,539) (5.982( (13 719(
Net Interest Charges. 12,015 7.728 41,592 26,732
)SET INCOME ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ $ 13,.409 $ 10,753 5 54 20 45.264
~ 5 The common stock of the Company is wholly owned by Zndiana & Michigan Electric Company.
See Notes to Financial Statements.
INDIANA & MICHIGAN POWER COMPANY BALANCE SHEET (UNAUD1TED)
March 31, 1979 1978 (Zn Thousands)
ASSETS AND OTHER DEB1TS ELECTRIC UTILITY PLANT (at original cost):
Production Nuclear .. ~ ~ ~ ~ $ 1,002,256 $ 553,880 General and Miscellaneous.................... 680 646 Construction Work in Progress 14,971 418,842 Total Electric Utility Plant 1,017,907 973,368 Less Accumulated Provision for Depreciation............... 89,837 55,887 Electric Utility Plant, Less Provision. 928,070 917,481 CURRENT ASSETS:
Cash and C ash Items ~ ~ ~ ~ .~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ s ~ ~ ~ ~ ~ 2,268 40,001 Temporary Cash Investments (at cost, which approximates market). ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ t ~ ~ 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ 7,473 Accounts Receivable:
Associated Companies. 31,150 32,080 Miscellaneous............. 237 310 Construction and Operation Materials and Supplies (at average cost or less)........................... ~ ... 2,358 1,655 Prepayments and Other Current Assets..... 595 473 Total Current Assets. 36,608 81,992 DEFERRED DEBITS:
Unamortized Debt Expense.................................. 1,377 479 Other Work in Progress. ~ ~ ~ ~ ~ ~ ~ ~ 5,047 2,942 Other Deferred Debits......................... 4,093 6,072 Total Deferred Debits. 10,517 9,493 TOTALe ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 0 ~ ~ ~ ~ ~ $ 975,195 $ 1,008,966 See Notes to Financial Statements.
INDIANA 6 MICHIGAN POWER COMPANY BALANCE SHEET (UNAUDITED)
March 31, 1979 1978 (Zn Thousands)
LIABILITIES AND OTHER CREDITS CAPITALIZATION:
Common Stock Par Value $ 1:
Authorized 2,000,000 Shares Outstanding 1,500,000 Shares. $ iJ500 $ lg500 Premium on Capital Stock 106,541 106,541 Other Paid-in Capital.... 266,375 266,375 Retained Earnings............ ~ ~ 63,922 59,215 Total Common Shareowner's'Equity.. 438,338 433,631 Total Capitalization (less long-term one year).. ~ F 0
'ebt Long-term Debt (less portion due within one year) (Note 2) due within 443,569 881,907 512,037 945,668 CURRENT LIABILITIES:
Long-tenn Debt Due Within One Year..... 2,250 2,250 Accounts Payable:
G eneral. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 1,497 2,017 Associated Companies............. 350 736 Dividends Declared on Common Stock 3,000 Taxes Accrued.... 3,825 1,825 Interest Accrued. 13,192 11,887 Other Current Liabilities.. 8,273 2,906 Total Current Liabilities..... 29,387 24,621 DEFERRED CREDITS:
Deferred Income Taxes. 59,664 37,183 Deferred Investment Tax Credits. 3,923 866 Other Deferred Credits.................. 314 628 Total Deferred Credits.............................. 63,901 38,677 TOTAL. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ $ 975,195 $ 1,008,966 See Notes to Financial Statements.
INDIANA & MICHIGAN POWER COMPANY STATEMENT OF RE AINED EARNINGS (UNAUDITED)
Three Twelve Months Ended Months Ended March 31, March 31, 1979 1978 1979 1978 (Zn Thousands)
Balance at Beginning of Period.. $ 645013 $ 57,462 $ 59,215 $ 49,951 Net Znco e. 13 '09 10 '53 54.207 45.264 Total 4
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 77,422 68,215 113,422 95,215 Deduct Cash Dividends Declared on Common Stock............... 13,500 9,000 49,500 364000 Balance at End of Period. $ 63,922 $ 59,215 $ 63,922 $ 59 4215 See Notes to Flnanci'al Statements.
INDIANA & MICHIGAN POWER COMPANY NOTES TO FINANCIAL STATEMENTS MARCH 31, 1979 (UNAUDITED)
- 1. FINANCING ACTIVITY As was previously rep'orted in the Company's 1978 Annual Report, on March 1, 1979, the Company issued and sold, to certain insurance com-panies, $ 45,000,000 aggregate principal amount of its First Mortgage Bonds, 9-1/2% Series due 2003, at a price equal to the principal amount thereof.
On the same day, the Company applied proceeds from the sale of the bonds towards prepayment of $ 71,000,000 aggregate principal amount of Notes Pay-able to Banks, due 1980.
- 2. LONG-TERM DEBT:
Long-term debt by major category was outstanding as follows (less portion due within one year):
March 31, 1979 1978 (In Thousands)
First Mortgage Bonds............... $ 363,569 $ 68,037 Notes Payable to Banks, Due 1980... 11,000 375,000 Subordinated Notes Payable to Parent Company, Due 1981......... 69,000 69,000 Total (less portion due within one year)...... . .. $ 443,569 $ 512,037
I'4(
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A'$)ERZCAN ~IC POWER COMPANYS ZNC. AND SUBSZDZARY COMPANZES CONSOLZDATED STATEMEhT OF INCOME (UNAUDITED)
Three Months Ended Twelve Monr".s Ended March 31, March 31, 1979 1978* 1979 1978+
(Zn Thousands, Except Per Share Amounts)
OPERAT HG REVENUES - Approx'ately 98%
Electric (Note 1). $ 726 340 $ 571.357 $ 2.544.073 $ 2.074.811 OPERA ZhG E:(? NSES:
Operat'on:
Fuel for Elect"ic Generation. 317,861 234,764 1,114,187 858,000 Various Other..............,, 69,636 74,516 261,693 243,468 Naintenance. ... ...... .... ~ 429414 38,498 168,772 143,107 Depreciation9 Depletion, and Amo~ration... 55,745 48,593 210,848 188,004 axes, Other than Income Taxes. 415080 36,056 150,231 131,S77 State Xncccne Taxes. 751 432 563 1,958 Federal Zncome Taxes. 35,803 (1,261) 89,497 20,401 TOTAL OP~TING EXPENSES. 563.2.0 431.598 1,995,791 1.586.815 4
OPERATZNG ZNCONE 163.050 139.759 548,282 487,996 OTP~ INCOME AND DEDQCTZONSt Allowance for Other Funds Used During Const"uction....,., 9, 124 13,935 39,590 55,794 N'scellaneous Nonoperating Income Less Deduc"'ons......... 837 1,206 3,558 6,115 re($
TOTAL OTHER INCOME AND DEDUCTIONS... ~ .. ~ . ~ ~ .....'.. 9 961 15 141 43,148 61,909 ZNCOSS(E BEFORE XSSEST CHARGES' 173 011 154.90D 591,430 549.905 1!PiZREST CHARGES:
Interest on Long-tern Debt 78,819 72,805 308,655 278,746
!n crest on Sho~-term Debt 11,303 3,880 33,586 13,776 Miscellaneous Interest Charges. 1.2$ 3 2.390 4,516 8,813 "OTAL INTER'HARGiS. 91,405 79,075 346,757 301,335 Allowance for Borrowed Funds Used DuringConstruction (9
(CS d44 n
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ '12.394) (11.282) (51,460) (44,401)
NET INTEREST CHARGESS 79.011 67 793 295,297 256,934 CONSOLIDATED IhCOME BEFORE P~ERRED STOCK DXVZDEND REQUIRHKNTS OF SUBSZDZARZES. 94,000 87,107 296,133
~ ~ ~4 292,971 PREFERS) STOCK DIVIDEND REQUIREMENTS OF SUBSZDZARZES.. ~ ~ ~ 13.$ 86 12 . 118 54,377 46,994 CONSOLZDAT-D NET INCOME. 80,414, 74,989 2 ~ 1.756
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ S S 3 $ 245.977 EARNINGS PER AVERAGE SHARE OF CONS(ON STOCKS ~ ~ ~ ~..... ~ . 5 .73 5 .73 S 2.27 S 2.45 CASH DZVIDENDS PAZD PER SHARE OF CO)ION STOCK.. ~ ~ ~... S. .$ 48 .53 5 2.35 5 2.09
'AVERAGE HUNBER OF SHARES OUTSTA)IDZNG. ~
11D.876 103.093 106,408 100,584
~ Restated.(See Note 1)
See Notes to Consolidated Financial Statements.
AMERICAN ELECTRIC POWER COMPANY 6 ZNC.
AND SUBSZDIARY COMPANIES CONSOLXDATED BAIANCE SHEET (UNAUDITED)
March 31, 1979 1978 (Zn Thousands)
ASSETS AND OTHER DEBITS UTILITY PLANT (at original cost):
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ $ 491269010 $ 3,428,557 Transmission. ~ ~ ~ ~ ~ ~ 1,511,948 1,440,280 Distribution. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 1,312,971 181869892 Construction Work in Progress. '.....
General and Miscellaneous (includes Nuclear Fuel and Mining Plant)
~......................
615,657 1,097,749 623,088 1,246,029 TOTAL UTZLZTY PLANT ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 8,664,335 79924,846 Less Accumulated Provisions for Depreciation, Depletionz and Amo~ ization... ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 9 ~ ~ ~ 1,858,603 1,673,399 UTZ~i PLANT9 LESS PROVISIONS ~ ~ ~ 9 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 6,805,732 6,251,447 EX ESS OF COST OF ZNVESTMEhTS in Subsidiaries over Book Value at Dates of Acquisition. . .. ..... ~ ...... .... ... ~ 48,260 48,31'48,918 OTHER PROPERTY AND Zh&EST66NTS 270,854 CURREN1'SSETS:
Cash and Cash Ztems ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 117,432 281,910 Accounts Receivable (less accumulated provision for uncollectible accounts)................. 240,476 195,437 Materials and Supplies (at average cost or Less)
Fue 1 9 ~ ~ ~ ~ ~ ~ 260,843 112,473 Construction and Operation Materials and Supplies. ~ ~ ~ ~ ~ ~ ~ ~ ~ 96,226 93,787 Accrued Utility Revenues. 51,259 62,360 Prepayments and Other Current Assets 29,125 26,359 TOTAL CURRENT ASSETS ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 745,361 772.326 DEFERRED DEBITS )
Unamortited Debt Expense.......... ~ ~ ~ ~ 9,062 Property Taxes. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 55,782 Deferred Collection of Fuel Costs. 20,563 Defer ed Strike Costs (Note 2). 44,403 Other Work in Progress. 54,989 Ocher Deferred Debits. 60 689 TOTAL DEFERRED DEBITS. 234,863 245,288
$ 8,155,070 $ 7,566,290 See Notes to Consolidated Financial Statements.
A 5
AMERZCAN ELECTRIC POWER COMPANY 5 ZNC.
AND SUBSIDIARY COMPANIES CONSOLIDATED BAZANCE SF%ET (UNAUDITED)
March 31, 1979 1978 (Zn Thousands)
LZABZLZTIES AND CZHER CREDITS CAPZTALIBATZON1 Canon Stock - Par Value $ 6.501 1979 1978 Shares Authorized........... 150,000,000 1255000,000 Shares Outstandlng6 ~ ~ ~ ~ 1115232,001 103 '265804 S .723,008 S 671,624 P anions on Capital Stocks. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 1,0825640 970,375 Other Paid-in Capital. 820 641 Retained Earnings. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 600,231 585,559 Total Cocmen Shareowners'quity. 25406,699 2 5228, 199 Cmulative Preferzed Stocks of'ubsidiaries (Note 4)........, ~ ~ ~ ~ 650,258 652,484 Long-tern Debt (less portion due within one yeaz) (Note 3)... ~ ~ ~ ~ 3,591,919 3,707,555 TOTAL CAPITALIZATION (less long-tera debt due within one year) ~ ~ ~ ~ ~ 0 ~ ~ ~ ~ ~ ~ ~ ~ 6.648,876 6,588,238 CURRENT LZABILZTZES1 Long-tern Debt Due Within One Notes Payable to Banks.
Year... ~ .... 2235495 73,051 2245841 47,766 Cozznercial Paper. 186,745 71,865 Accounts Payable .. 154,099 164,573 Dividends Declared on Cunulative Preferred Stocks... 65612 5,737 Taxes Accrued. ~ ~ ~ ~ ~ ~ ~ ~ 128,624 110,366 Interest Accrued. 100,432 93,518 Revenue Refunds Ac~ed. 9,540 29 5212 Othe" Cu ent Liabilities .... 85,630 82,548 TOTAL CUMKNT LIABZLZTZES~ 1 ~ 120.018 6785636 DEFERS) CREDITS AND OPERATING RESERVES1 De er ed Income Taxes......................... 291,849 230,683 Deferred Investment Tax Credits. 53,055 24,581 Other Deferred Credits and Operating Reserves.......... ~ ~ ~ ~ ~ ~ ~ ~ 41,272 44,152 TO AL DEFERRED CREDITS AND OPERATING RESERVES6 ~ ~ ~ ~ ~ ~ ~ ~ 386, 176 299,416 TOTAL ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 65,155.020 ~ 9.566.290 See Notes to Consolidated Fmanclal Statement.
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4 4
AlKRZCAN ELECT)KC POWER COMPANY, Z)K.
AND SUBSZDIARY COMPANZES CONSOLIDATED STATEMENT QF RETA NED EARNIhGS tUNAUDZTED)
Three Months Ended Twleve Months Ended March .31. March 31, 1979 1978 1979 1978 (Zn Thousands)
BALA94:C AT BEGZhNZNG OF PKQOD:
As Previously Reported. $ 580,217 $ 575,239 $ 5945271 $ 560,301 Restatement (Note 1) (8,625) (t8,712) (7,600)
As Reste'ted ~ ~ ~ ~ ~ ~ ~ ~ ~ 5805217 5665614 585,559 552,701 ADDITIONS'CnSOlidated Net InCOmee 96.69e.e.ee.ee.e.eeeeeeeeee
~ 80,414 745989 241,756 245,977 Transfer from Amor&ration Reserve - Federal to Appropriated Recained Earnings ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 1,401 1,401 660,631 643,004 827.3'5 800.079 DEDUCTIONS )
Cash Dividends Declared on Common Stock...........-.. 60,405 54,618 227,120 209,851 Othere (5) 2,827 (36) 4.669 TOTAL DEDUCTIONS. ~ ~ ~ ~ ~ ~ ~ 60.400 s7.aas 227.084 214,520 BALANCE AT END OF PERIOD. $ 600,231 . $ 585,559 4600.231 $ 585,559 See Notes to Consolidated Financial Statements.
j 5
AMERICAN ELECTRIC POWER COMPANY~ 1'NC
. AND SUBSIDIARY COMPANIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 1979
(.UNAUDITED)
- l. AhDUNTS SUBJECT'TO REFUND AND RESTATEMENT As stated in the Company's 1978 Annual Report, consolidated 1978 interim results have been restated to reflect the refund matters discussed therein.
Accordingly, the financial statements included herein reflect the restated amounts for the affected periods.
Amounts collected by subsidiaries from rate increases placed into effect subject to refund are estimated as follows:
1979 1978 (In Thousands)
Three Months Ended March 31 7,400 5,800 Twelve Months Ended March 31................. 31il00 18,200 Cumulative to March 31, 1979................. 58,600
- 2. DEFERRED STRIKE COSTS The coal-mining subsidiaries deferred $ 48,800,000 of ongoing costs applicable to mining and transportation activities incurred duri.ng the st ike by the United Mine Workers of America which began in early December 1977 and ended in the latter part of March 1978. At March 31, 1979, most of these costs had been amortized and billed to customers of one operating subsidiary, and most of the remaining balance of $ 11,658,000 is expected to be recovered by another operating subsidiary through cost-of-service determinations or adjustment of the fuel component included in base rates, as it amortizes its subject deferred costs.
- 3. LONG-TERM DEBT Long-term debt by mayor category was outstanding as follows. (less portion due within one year):
March 31, 1979 1978 (In Thousands)
First Mortgage Bonds......................... $ 3~010~659 $ 2J813g318 Sinking Fund Debentures............. 114,$ 53 116,920 Notes Payable to Banks....................... 40,500 392,000 Installment Purchase Contracts............... 418,880 355,490 Other Long-term Debt......................... 7.727 29,827 Total (less portion due within one year)... $ 3,591,919 . $ 3,707,555 4 ~ FINANCIAL TRANSACTIONS Long-term financing transactions during the ouarter ended March 31, 1979 included the following recorded by subsidiary companies:
Principal Descri tion Amount (In Thousands)
Issuances:
10-1/4% First Mortgage Bonds due 1987.......... $ 80,000 9-1/2% First Mortgage Bonds due 2008 (issued to refinance certain Long-term Notes Payable to Banks due 1980 - see below) ............... 45,000 Retirements:
Partial prepayment of Long-term Notes Payable to Banks due 1980............................ 71,000 Cumulative Preferred Stocks of Subsidiaries declined by $ 732,000 during the cpxarter ended March 31, 1979 due to redemption of shares at a gain of $ 178,000, such gain being credited to Other Paid-in Capital.
Sb
- 5. CONTINGENCIES American Electric Power System companies continue to be involved in certain legal proceedings disclosed in the 1978 Annual Report.
- 6. RECLASSXFICATIONS Certain prior-period amounts have been reclassified to conform with classifications used currently.
- 7. PROPOSED AC UISXTION Xn July 1978, the Securities and Exchange Commission issued an opinion in which it indicated that it was disposed to issue an order granting the Company's application to acquire Columbus and Southern Ohio Electric Company through an ex-change of stock if the Company V
completed, to the satisfaction of SEC, the record in the proceeding with respect to the fairness of the proposed exchange offer to the Company's common shareowners and the creation of an entity which would acguire and operate generating facilities in Ohio for the benefit of such Ohio municipal electric distribution systems as desired to participate, the energy from which would be transmitted over American Electric Power System. transmission facilities to various delivery points in Ohio. The Company can give no assurance that the SEC will authorize the proposed accgxisition or that, if authorized, it will be completed. P
- 8. EVENTS SUBSE UENT TO MARCH 31, 1979 Xn May 1979, a subsidiary issued and sold $ 70,000,000 principal amount of 11% Series First Mortgage Bonds due 1987 and 1,600,000 shares of $ 2.65 Cumulative Prefe red Stock; without Par Value, at $ 25 per share; and a local government, agency issued $ 20,000,000 principal amount of pollution control revenue bonds in connection with an installment purchase contract with another subsidiary,