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 INDIANA & MICHIGAN POWER COMPANY (Donald C.
Cook Nuclear Plant, Units 1 and 2)
Docket Nos.
50-315 50-316 APPLICATION FOR AMENDMENT OF FACILITY OPERATING LICENSES NOS.
& 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.
& 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.
& 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.
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 l.
1978 Annual Report of Indiana 6 Michigan Electric Company
- 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)
OPERATING REVENUES - Electzic (Note 1).
Three Twelve Months Ended MontM Ended March 31.
March 31.
1979 1978 1979 1978 (Zn Thousands)
~ $171, 029
$145, 106
$629 4 404
$529,671 OPERATING EXPENSES c Operation:
Fuel for Elect"ic Generation.
Purchased and Znterchange Power Othaz.
Maintenance.
Depreciation.
Taxes, Other Than Income Taxes.
State Incone Taxes Federal Zncone Taxes.
TOTAL OPERATING EXPENSES (Net)
(Nota 1)....
~... ~...
26,750 83,657 11,437 6,578 8,247 5,246 218 6,532 14&,665 18,802 69,026 105078 6,037 7,367 5.281 178 14 9 116,918 97,725 324,259 47,520 276993 319246 18,970 (339) 4.821 552,1 5
62,665 264,792 37,409 25,704 279920 18,368 783 4,639 442,280 OPERATING ZNCOMED 22.364
~ 28.188 77.2D9 87.
91 5.182
~ ~ ~ ~
139409
~ ~.
2,027 79 2D.697 TOTAL OTHER ZNCOHE AND DEDUCTZONS
~ ~ ~ ~ ~..
~
~ ~
OTHER INCOME AND DEDUCTIONS)
Allowance for Other Funds Used Duri'ng Construction......
Equity in Eaznings of Subsidiaries0
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Znterast on Notes of Generating Subsidiary..........
~...
Miscellaneous Nonoperating Income Less Deductions.......
2,466 10,753 1,376 200 14.795 189718 54,209 6,899 833 80,659 8,889 45,266 59004 940 60,099 INCOME BEFORE INTENT CHARGE&9
. ~......,....
~..
43.061 42.983 157 868 147.490 IhTEREST CHARGES c Interest on Long-tern Debt.
Interest on Short-tarn Debt Miscellaneous Znterest Charges.
TOTAL INTEREST CHARGES Allowance for Borrowed Funds Used During Construction (W ~6~t) ~
~
~ ~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~ ~ ~
NET IhTEREST CHARGES 13,913 2,506 409 169828 (4,282) 12,546 11,246
- 1. 190 306 12 9742 (1,955) 10.787 51,917 7 9280 1,070 604267 (15.545) 44.722 42.148 5,614 70 1 489464 (7. 10 D) 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):
Pzoduction......................
~ ~
~
~ ~ ~
Transmission..'........
~ ~
~ ~ ~
~ ~
~
~
~
~
~
Distzibution o
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~ ~ ~ ~
~ o ~
~
~ ~ ~
General and Miscellaneous (includes Nuclear Construction Work in Progress..............
Fuel)
~ ~ o
~ ~
~ 3
~
355,681 422,477 258,757 42,486 331,822 341 g 328 401,729 245,948 51,293 151,959 TOTAL ELECTRIC UTZLZTY PLANT- ~
~ ~ - ~
~
~ - - - - ~
~ ~ ~ ~
1 g41 1g223, 1 g 192 g257 Less Accumulated Provision for Depreciation..............
337.733 312,346 ELECTRIC UTILITY PLANT, LESS PROVISION..............
1,073,490 879,911 ther o ~ ~ ~
~ ~ ~
~ ~
~ ~ ~ ~ ~ ~
~
~ ~
~ ~ ~ ~ ~
0
~ ~
~
~ ~
TOTAL OTHER PROPERTY AND INVESTMENTS................
OTHER PROPERTY AND INVESTMENTS:
Investments in Generatina Subsidiary:
Common Equity, (at equity).............................
Subordinated Notes..................
438,338 69,000 178,181 685,519 433,631 69,000 141,642 644,273 CURRENT ASSETS:
Cash and Cash Items o
~ ~ ~ ~ ~ ~ ~ ~
~ o ~ ~
~ ~
~ ~ o ~ ~
Accounts Receivable:
General (less provision for uncollectible accounts Associated Companxes........-..-.....-.-...-.--
Materials and Supplies (at average cost or less):
Construction and Operation Materials and Supplies.
Fuel............
~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ ~
~ ~ ~ ~ ~
Accrued UtilityRevenues..............
Prepayments and Other Current Assets.
~
~ ~
~
)
33,087 63,674 9,526 12g 150 19, 632 8,658 3 177 59,881 41,798 17,157 10,427 10,363 15,745 2,845 TOTAL CURRENT ASSETS.
149,904 158,216 DEFERRED DEBITS Unamortized Debt Expense.
Property Taxes......
Deferred Collection of Fuel Other Work in Pzogress.
Other Deferred Debits......
Costs
~ ~ ~ ~ ~ ~ ~ o o 1,794 8,847 1,512 4,026 32,230 1,699 8,096 1,655 6,194 32.466 TOTAL DEFERRED DEBITS 48,409 50,110 TALo
~
~ ~ ~ o ~ ~ o
~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~
~ ~ ~
~
~ ~ ~
~ o
~ ~ ~ ~
~ ~ ~ ~
~ ~ ~
TO See Note to Corporate Financial Sta ement;S.
Also see Notes Zo 'Consolidated Financial Statements incorporated herein by 31,957,322 31,732,510 reference.,
INDIANA & MICHIGAN ELECTRIC COMPANY CORPORATE BALMCE SHEET (UNAUDITED )
LIABILITIESAND OTHER CREDITS CAPITALIZATION:
Common Stock No Par Value:
Authorized2,500,000 Shares Outstanding 1,400,000 Shares...........
March 31, 1979 1978 (Zn Thousands) 56,584 56,584 Premium on Capital Stock........
Other Paid-in Capital.........-
~
Retained Earnings......
~. ~ ~.
~.-- ~--
~
~
~ ~ ~
381 484,228 143,619 381 450,228 116,474 Total Common Shareowner's Equity.....
Cumulative Preferred Stock.............................
684,812 227,000 Long-term Debt (less portion due within one year)(Note 2) 721,400 623,667 227,000 647,876 Total Capitalization (less long-term debt due within one year)......................
~
~
1,633,212 1,498,543 CURRENT LIABILITIES:
Long-tezmDebt Due Within Short-term Debt:
Notes Payable to Banks..
Commercial Paper........
Accounts Payable:
General.................
Associated Companies.
Dividends Declared Taxes Accruedo o ~ ~ ~ ~ ~ o ~ o ~ o ~
Interest Accrued..........
Other Current Liabilities.
One Year
~ ~ ~ ~ ~ ~
~
~ o
~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
5,254 41,990 50,315 20,136 52,323 15,974 23,075 15,977 10,275 29,171 30,199 34,254 3,854 21,154 13,898 20,427 TOTAL. CURRENT LIABILITIES........................
235,319 152,957 DEFERRED CREDITS AND OPERATING RESERVES:
Deferzed Income Taxes.
Deferred Znvestment Tax Credits..........................
Other Deferred Czedits and Operating Reserves............
74,845 6,825 7,121 68,093 8,088 4,829 TOTAL DEFERRED CREDITS AND OPERATING RESERVES....
88,791 81,010 TALo ~ ~ ~ ~ - ~ ~ ~
~ o ~ ~
~ o
~ ~
~ ~ ~ ~
~ ~ ~
~
~ ~
~ ~ ~
~ o ~ ~
~
TO 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 COMPANY CORPORATE STATEMENT OF SOURCES OF FUNDS FOR PIANT AND PROPERTY ADDITIONS (UNAUDITED)
Three Months Ended March 31, 1979 1978 (In Twelve Months Ended March 31, 1979 1978 Thousands)
FUNDS FROM OPERATZONS.
. ~
$ 38,933
$ 35,74'7
$125,159
$121,536 FUNDS FROM FZNANCINGS:
Zssuances and Contrlbutionsa Long-tem Debt.
Cumulative Preferred Stock.
Capital Contributions fxeu Parent Coapany.............
Short-tern Debt (Net).
TOTAL.
~ ~
~ ~ ~ ~ ~ ~ ~
~ ~
79,529 14,000 93.529 99,610 38,547 409000 178, 157 79,757 (6).)
34,000 92.305 206.D01 175,001 76,667 74,000 325,668 Less - Retires(entsc Long-terr) Debt.
Short-terrL Debt (Net).
NET FUNDS FROM FI)a><CZNGS. ~.................
903 32.635 59,991 30,885 101.850 45,422 30,395 35,861 155 534 175.606 134 2'73 DIVIDENDS ON COMMON STOCK
~
DIVIDENDS ON CUMULATIVE PREFERRED STOCK.
SALES OF PROPERTY ~
~
~ ~
~
~ ~
~
~ ~ ~
~ ~
~
\\ ~ 9
~ ~
OTHER CHANGES (NET)
~
(18.970)
(14,9801 (4.755)
(3 8541 32.246 267 (541)
(9,829) 1,859
~
(6,993)
(66.682)
(55.3DD)
(19,257)
(14,901) 75,252 85,264 DECREASE (INCRFASE) IN WORKING CAPITAL EXCLUDING SNORT TERM DEBT AND LONG TERM DEBT DUE WITHIN ONE YEAR
~ ~ ~ ~ ~ ~ ~ ~ ~
(42,942) 6,491
$ 63,962 3 59.264 22,285 (52.562)
$314.222.
S211.317 PLANT AND PROPERTY ADDITIQNS$
Gross Additions to UtilityPlant Gross Other Additions..
TOTAL GROSS ADDI ZONS
$ 619934
$ 58,296 7,210 3
~ 34 69 144:
61.730 298,139 34.801 332)940 192,668 27'38 220,206 Allowance for Other Funds Used During Construction.........
$.63.962
$ 59.264 (5.182)
(2.466)
(18,718)
(8 889)
$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 COMPAVl STATEMENT OF RETAINED EARNINGS (UNAUDITED
}
BALANCE AT BEGZNNZNG OP PERIOD>>
Three Twelve Months Ended Months Ended March 31, March 31, 1979 1978 1979 1978 (Zn Thousands)
~
$136 829
$1040566
$ 116 ~ 474
$ 83 ~ 882 CORPORATE NET INCOME.
TOTAL 30.515 32.196 113.146 106,126 167,344 136,762 229,620 190 008 DEDUCTIONS:
Cash Dividends Declared a Cocoon Stock Cuaulative PreEerred Stock.
18,970 4.755 14.980 3,054 66,682 19 257 55,300 14,901 TOTAL DIVIDENDS~ ~ ~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~ ~ ~ ~
~ ~ ~ ~
~ ~
Capital Stock Expense.
'00AL DEDUCTIONS BALANCE AT END OF PERIOD. ~ ~
~ ~
~ ~ ~ ~
~
~
~
~ ~
~
23,725 18,834 1.454 23,725 20.280
$143,619
$116.474 85,939 700201 62 3 333 06,001 73.534
$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)
OPERATZNG RVENUES - Electric (Note 1)
Three Months Ended March 31, 1979 1978 (In
~..
$ 171,029
$145.106 Twelve Monchs Ended March 31, 1979 1978 Thousands) 5629,494 552..671 OPERATING EXPENSES:
Ope a ion:
Fuel for Electr'c Generation..
Purchased and Xnterchange Power Other.
Ma ntenance.
4 Depreciation.
- Taxes, Othe" Than Income Taxes....
State Income Taxes.............
~..
Fede al Income Taxes.
TOTAL OP~M%TING EXPENSES
~
(Net)
(Note 1)...........
42,729 12,669 15,818 8,753 18,232 7,529 218 17,437 123,385 25,300 355905 12,541 7,466 12,879 6,910 178 2,374 103,553 1429704 93,516 62,838 34,011 65,198 27,051 (339) 38,501 463,480 82,931 140,635 45,997 29,751 49,831 23,728 783 15,871 389,527 OPERA XHG INCOME.
47,644 41,553 165,924 140,144 OTHER INCOME AND DEDUCTIONS:
Allowance for Other Funds Used During Construction.........
M'scellaneous Nonoperating Zncome Less Deduc fons..........
TOTAL ~R ZNCOME AND DEDUCTIONS
~ ~ ~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~
~
5,326 79 5,405 7,531 251 7,782 25,770 867 26,637 28,008 1,066 29.074 INC 5K BEFORE XHTEREST CBARGES......
~..............
. ~..
53.049 49.335 192,561 169. 218 INTEREST CHARGES:
Interest on Long-term Debt.
Interest on Short-term Debt.
Miscellaneous Interest Charges.
TOTAL INTEREST CHARGES 23,928 2,506 495 26,929 21,099 1, 190 344 22,633 92,225 7,280 1,437 1003942 77,412 5,614 885 83,911 Allowance for Borrowed Funds Used (Credit).
NET IHTKKST CHARGES.
During Construction (4.395>
(5,494(
22,534 17,139 (21 5271 (20 819) 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 ~
Transmission
~ ~ ~
~ ~
~ ~ ~
~ ~
~
~ ~
Distribution...
General and Miscellaneous (includes Nuclear Fuel).
Construction Work in Progress........
TOTAL ELECTRXC UTILITY PLANT...... ~
.'ess Accumulated Provision for Depreciation.......
ELECTRIC UTZLITY PLANT, LESS PROVISION..............
OTHER PROPERTY AND ZNVESTMENTS... ~
~...
~ ~
~..-
~
$1,357,937 422-,477 258,757 43,166 346,793 2,429,130 427,570 2,001,560 178,181 895,208 401,729 245,948 51,939 570,801 2,165,625 368,233 1,797,392 141,642 CURRENT ASSETS:
Cash and Cash Items...........
Accounts Receivable:
General (less provision for uncollectible accounts).
Associated Companies.....................
Materials and Supplies (at average cost or less):
Construction and Operation Materials and Supplies...
Fuel.
Accrued UtilityRevenues................
Prepayments and Other Current Assets.
35,355 63,911 7,293 14,462 19.,678 8,658 3.772 107,355 42,108 12,465 12,031 10,414
'5,745 3,318 TOTAL CURRENT ASSETS.........
~ ~ ~ ~ ~ ~
~ ~ ~
~
153,129 203,436 DEMRRED DEBITS:
Unamortized Debt Expense..
Property Taxes.....'.....
Deferred Collection of Fuel Other Work in Progress.....
Other Deferred Debits TOTAL DEFERRED DEBITS.
TOTALo
~ ~ ~
osts
~ ~ ~ ~ ~
~ ~ ~
~ ~ ~ ~ ~ ~
~
~ ~ ~ ~
~
~ ~
~
~
C
~ ~
3,171 8,847 1,512 9,073 30,120 52,723
$ 2.395,593 2, 178 8,096 1,655 9,136 38,840 59,905 52,202,375 See Notes to Consolidated Financial Statements.
<0
~
~
~ ~
INDIANA & MICHIGAN ELECTRIC COMPANY AND GENERATING SUBSIDIARY CONSOLIDATED BALANCE SHEET (UNAUDITED )
LIABILITIESAND OTHER CREDITS CAPITALIZATION:
Common Stock No Par Value:
Authorized2,500,000 Shares Outstanding 1,400,000 Shares............
March 31, 1979 1978 (Zn Thousands) 56,584 56,584 Premium on Capital Stock Other Paid-in Capital......
Retained Earnings........
381 484,228 143,619 381 450,228 116,474 Total Common Shareowner's E~ty....................
Cumulative Prefe red Stock.........................
~.....
684,812 227,000 Long"term Debt (less portion due within one year)
(Note 2) 1,095,969 623,667 227,000 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 Short-term Debt:
Notes Payable to Banks.
Commercial Paper Accounts Payable:
General.............
Associated Companies....
Dividends. Declared.
Taxes AccruedO
~ ~ ~ 0 ~ ~ ~
~ ~ ~ ~ ~
~ ~ ~
Interest Accrued.............
Other Current Liabilities....
3 Year 7,504 41,990 50,315 21,633 21'19 15,974 26,900 27,143 18,548.
31,421 32,216 2,872 3,854 22,979 24,409 23 I333 TOTAL CURRENT LIABILITIES..............
231,326 141,084 DEFERRED CREDITS AND OPERATING RESERVES:
Deferred Income Taxes.
~ ~ ~
~ ~ ~ ~
~
~
~ ~ ~
~ 0 ~ ~
~ ~
~
~
~ ~
~
Deferred Investment Tax Credits................
Other Deferred Credits and Operating Reserves............
TOTAL DEFERRED CREDITS AND OPERATING RESERVES.......
128,303 10,748 7,435 146,486 105,299 8,954 5,457 119,710
$ 2 385 593
$2,202,375 See Notes to Consolidated Financial Statements.
i4 6 9
~ 9 JR INDIANA S MICHIGAN ~CTRZC COMPANY AND GENERATING SUBSZDIARY CONSOLIDATE) STATEMENT OF RETAINED EARNINGS
{UNAUDITED)
Three Twelve Months Ended Months Ended March 31, March 31.
1979 1978 1979 1978 tIn Thousands)
CE AT BEGINNZNG OF PERIOD...
~.
CONSOLIDATED NET INCOME
~ ~ ~ ~ ~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~ ~ ~ ~ ~
TOTAL
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 8136,829 8104 6566 39,515 32.196 W7 ~44 136 762 S116$ 474 S 839882 113.146 106,126 229 62D 19D.DDD DEDUCTIONS:
Dividends:
Common Stock.
Cumulative Preferred Stock.
18, 970
~2'.
149980 3>854 66,682 55,300 14,901 TOTAL DZVIDZZU)S 23,725 189834 85,940 70,201 Capital Stock Expense.
4 TOTAL DEDUCTZONS ~
~i4
~DR R 3.3 3
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 FINANCIALSTAT~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 Twelve Months Ended March 31,...;..
21,111 Cumulative to March 31,............
48,626
$ 5,794 18,190 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,.......
Twelve Months Ended March 31,......
Cumulative to March 31,............
20,172 105,824
~ 7,317 28,241 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 ~
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.
Sa 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 Sinking Fund Debentures...........
23,953 Notes Payable to Banks due 1980...
11,000 Installment Purchase Contracts....
99,931 Other Long>>term Debt..............
4,880 5819762 25,117 375,000 99,841 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)
OPERATZNG REVENUES - Electrics Sales to Parent Company-Indiana
& Michigan Electzic Company.
OPERATXNG EXPENSES:
Three Months Ended Mazch 31 1979 1978 (Zn
$70,988 533,064 Twelve Mon hs Ended March 31, 1979 la78 Thousands) 823 ~,461 8124.107 Ooeration:
Fuel for Electric Generation.
Othe Maintenance.
~ ~
~
~ ~
~ ~ ~ ~
~
~ ~
Depreciation.
~ ~ ~
~ ~ ~ ~
~ ~ ~ ~
~ ~ ~ ~ ~ ~ ~
~ ~ ~
~ ~
- Taxes, Other Than Federal Income Taxes Federal Income Taxes.
Total Operating Expenses.
158979 48381 2, 175 9,985 2,283 10,905 45,708 68498 2,406 1,429 5,512 1,629 2,225 19.699 448979 19,036 6,018 33,952 8,081 33,680 145,746 20,160 8,645 4,047 21,911 5,360 11,232 71 355 OPERATING INCOR.
~
~
~
~
~ ~ ~
~
~ ~ ~
~
~ ~ ~ ~
~
~ ~
25,280 134365 66,715 52,752 OTHER XNCC)5% AND DEDUCTIONS:
Allowance for Other Funds Used During Construction.....
~. ~.
Interest Zncome Less Deductions.
Tocal Other Income and Deductions.....
144 144 5,065 51 5,116 7, Q52 32 7,084 19,119 125 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)..
Interest on Long-tern Debt to Parent Company...............
Miscellaneous Interest Charges.........-.... "."..- ~". ~ ~ ~
Total Interest Charges...............................
Allowance for Bozzowed Funds Used During Constzuction (Credit).
~ ~
~ ~
~ ~
Net Interest Charges.
10,015 2,027 86 12, 128 (113) 12,015 9,853 1,376 38 11,267 (3,539) 7.728 40,308 6,899 36 47,574 (5.982(
41,592 35,264 5,004 183 40,451 (13 719(
26,732
)SET INCOME
~ ~ ~
~ ~
~ ~
~
~ ~ ~ ~
~ ~ ~ ~ ~
The common stock of the Company is wholly owned by Zndiana
& Michigan Electric Company.
$13,.409
$10,753 5
54 ~ 20 5 45.264 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):
ProductionNuclear..
~
~
~
~
$1,002,256 553,880 General and Miscellaneous....................
Construction Work in Progress Total Electric Utility Plant Less Accumulated Provision for Depreciation...............
Electric UtilityPlant, Less Provision.
680 14,971 1,017,907 89,837 928,070 646 418,842 973,368 55,887 917,481 CURRENT ASSETS:
Cash and Cash Items ~ ~ ~ ~. ~ ~ ~ o ~ ~
~ ~ ~ ~ ~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ s ~ ~ ~ ~ ~
2,268 40,001 Temporary Cash Investments (at cost, which approximates market).
~ ~
~
~ ~
~
~ ~
~ ~
~ ~ ~
~
~
~
~
~ t ~ ~ 0 ~
~
~
~
~ ~
~
~
~
Accounts Receivable:
Associated Companies.
Miscellaneous.............
Construction and Operation Materials and Supplies (at average cost or less)...........................
~...
Prepayments and Other Current Assets.....
Total Current Assets.
31,150 237 2,358 595 36,608 7,473 32,080 310 1,655 473 81,992 DEFERRED DEBITS:
Unamortized Debt Expense..................................
1,377 479 Other Work in Progress.
~
~ ~
~
~ ~
~
~
5,047 2,942 Other Deferred Debits.........................
Total Deferred Debits.
4,093 6,072 10,517 9,493 TOTALe ~ ~ ~
~
~ ~ ~ ~
~ ~ ~
~ ~ ~ ~ ~
0
~ ~ ~ ~ ~
975,195
$1,008,966 See Notes to Financial Statements.
INDIANA 6 MICHIGAN POWER COMPANY BALANCE SHEET (UNAUDITED )
LIABILITIESAND OTHER CREDITS CAPITALIZATION:
Common StockPar Value
$1:
Authorized2,000,000 Shares Outstanding 1,500,000 Shares.
March 31, 1979 1978 (Zn Thousands) iJ500 lg500 Premium on Capital Stock Other Paid-in Capital....
Retained Earnings............
~ ~
Total Common Shareowner's'Equity..
Long-term Debt (less portion due within one year) (Note 2) 106,541 266,375 63,922 438,338 443,569 106,541 266,375 59,215 433,631 512,037 Total Capitalization (less long-term one year)..
~ F 0'ebt due within 881,907 945,668 CURRENT LIABILITIES:
Long-tenn Debt Due Within One Year.....
Accounts Payable:
General.
~
~
~ ~
~ ~ ~
~ ~ ~
~
~
~
~ ~
~
~
~ ~
Associated Companies.............
Dividends Declared on Common Stock Taxes Accrued....
Interest Accrued.
Other Current Liabilities..
Total Current Liabilities.....
2,250 1,497 350 3,825 13,192 8,273 29,387 2,250 2,017 736 3,000 1,825 11,887 2,906 24,621 TOTAL.
~
~
~
~
~
~ ~
~
~
~
DEFERRED CREDITS:
Deferred Income Taxes.
Deferred Investment Tax Credits.
Other Deferred Credits..................
Total Deferred Credits..............................
59,664 3,923 314 63,901 975,195 37,183 866 628 38,677
$1,008,966 See Notes to Financial Statements.
INDIANA & MICHIGAN POWER COMPANY STATEMENT OF RE AINED EARNINGS (UNAUDITED) 1979 1978 (Zn Three Months Ended March 31, Twelve Months Ended March 31, 1979 1978 Thousands)
Balance at Beginning of Period..
Net Znco e.
4 Total
~ ~ ~ ~ ~
~ ~
~
~ ~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~
~ ~ ~
Deduct Cash Dividends Declared on Common Stock...............
Balance at End of Period.
$645013
$57,462 13 '09 10 '53 77,422 68,215 13,500 9,000
$ 63,922
$59,215 49,500 364000
$ 63,922
$59 4215
$ 59,215
$ 49,951 54.207 45.264 113,422 95,215 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...............
Notes Payable to Banks, Due 1980...
Subordinated Notes Payable to Parent
- Company, Due 1981.........
$363,569 11,000 69,000
$ 68,037 375,000 69,000 Total (less portion due within one year)......
$443,569
$512,037
~
I'4(
)
A'$)ERZCAN ~IC POWER COMPANYS ZNC.
AND SUBSZDZARY COMPANZES CONSOLZDATED STATEMEhT OF INCOME (UNAUDITED)
OPERAT HG REVENUES - Approx'ately 98%
Electric (Note 1).
Three Months Ended Twelve Monr".s Ended March 31, March 31, 1979 1978*
1979 1978+
(Zn Thousands, Except Per Share Amounts)
$ 726 340
$571.357
$2.544.073
$ 2.074.811 OPERA ZhG E:(? NSES:
Operat'on:
Fuel for Elect"ic Generation.
Various Other..............,,
Naintenance.
~
Depreciation9 Depletion, and Amo~ration...
- axes, Other than Income Taxes.
State Xncccne Taxes.
Federal Zncome Taxes.
TOTAL OP~TING EXPENSES.
4 OPERATZNG ZNCONE 317,861 69,636 429414 55,745 415080 751 35,803 563.2.0 163.050 234,764 74,516 38,498 48,593 36,056 432 (1,261) 431.598 139.759 1,114,187 261,693 168,772 210,848 150,231 563 89,497 1,995,791 548,282 858,000 243,468 143,107 188,004 131,S77 1,958 20,401 1.586.815 487,996 OTP~
INCOME AND DEDQCTZONSt Allowance for Other Funds Used During Const"uction....,.,
N'scellaneous Nonoperating Income Less Deduc"'ons.........
TOTAL OTHER INCOME AND DEDUCTIONS... ~..
~.
~ ~.....'..
ZNCOSS(E BEFORE XSSEST CHARGES' 1!PiZREST CHARGES:
Interest on Long-tern Debt
!n crest on Sho~-term Debt Miscellaneous Interest Charges.
"OTAL INTER'HARGiS.
Allowance for Borrowed Funds Used DuringConstruction (CS d4 n
(9 re ($
4 n
~
~
~ ~
~ ~ ~ ~
~ ~ ~ ~ ~
~ ~ ~
NET INTEREST CHARGESS 9, 124 837 9 961 173 011 78,819 11,303 1.2$ 3 91,405
'12.394) 79.011 13,935 1,206 15 141 154.90D 72,805 3,880 2.390 79,075 (11.282) 67 793 39,590 3,558 43,148 591,430 308,655 33,586 4,516 346,757 (51,460) 295,297 55,794 6,115 61,909 549.905 278,746 13,776 8,813 301,335 (44,401) 256,934 CONSOLIDATED IhCOME BEFORE P~ERRED STOCK DXVZDEND REQUIRHKNTS OF SUBSZDZARZES.
PREFERS)
STOCK DIVIDEND REQUIREMENTS OF SUBSZDZARZES..
CONSOLZDAT-D NET INCOME.
~ ~ ~ ~
~ ~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
EARNINGS PER AVERAGE SHARE OF CONS(ON STOCKS
~
~ ~ ~.....
~.
CASH DZVIDENDS PAZD PER SHARE OF CO)ION STOCK.. ~ ~ ~...
'AVERAGE HUNBER OF SHARES OUTSTA)IDZNG. ~
~ Restated.(See Note 1)
See Notes to Consolidated Financial Statements.
~ ~
~ 4
~ ~ ~
~ ~
~ ~
94,000 13.$ 86 S 80,414, 5
.73 S.
.$ 48 11D.876 87,107 12. 118 S 74,989 5
.73
.53 103.093 296,133 54,377 3
2 ~ 1.756 S
2.27 5
2.35 106,408 292,971 46,994 245.977 S
2.45 5
2.09 100,584
AMERICAN ELECTRIC POWER COMPANY6 ZNC.
AND SUBSZDIARY COMPANIES CONSOLXDATED BAIANCE SHEET (UNAUDITED)
March 31, 1979 1978 (Zn Thousands)
ASSETS AND OTHER DEBITS UTILITY PLANT (at original cost):
~ ~ ~
~ ~ ~ ~ ~
~ ~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Transmission.
~
~
~ ~
~
~
Distribution.
~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
General and Miscellaneous (includes Nuclear Fuel and Mining Plant)
Construction Work in Progress. '..... ~......................
TOTAL UTZLZTY PLANT
~ ~ ~
~
~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Less Accumulated Provisions for Depreciation, Depletionz and Amo~ization...
~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~
~ 9 ~ ~ ~
UTZ~i PLANT9 LESS PROVISIONS
~ ~ ~
9
~ ~ ~
~ ~ ~ ~ ~ ~ ~
$491269010 1,511,948 1,312,971 615,657 1,097,749 8,664,335 1,858,603 6,805,732
$3,428,557 1,440,280 181869892 623,088 1,246,029 79924,846 1,673,399 6,251,447 EX ESS OF COST OF ZNVESTMEhTS in Subsidiaries over Book at Dates of Acquisition.
~..........
~...
OTHER PROPERTY AND Zh&EST66NTS Value 48,260 270,854 48,31'48,918 CURREN1'SSETS:
Cash and Cash Ztems Accounts Receivable (less accumulated provision for uncollectible accounts).................
Materials and Supplies (at average cost or Less)
Fue 1 9
~
~
~ ~
~
~
Construction and Operation Materials and Supplies.
~
~ ~
~ ~ ~
~ ~
~
Accrued Utility Revenues.
Prepayments and Other Current Assets TOTAL CURRENT ASSETS ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
117,432 240,476 260,843 96,226 51,259 29,125 745,361 281,910 195,437 112,473 93,787 62,360 26,359 772.326 DEFERRED DEBITS )
Unamortited Debt Expense..........
Property Taxes.
Deferred Collection of Fuel Costs.
Defer ed Strike Costs (Note 2).
Other Work in Progress.
Ocher Deferred Debits.
TOTAL DEFERRED DEBITS.
~ ~ ~ ~
~
~ ~ ~ ~ ~ ~ ~ ~ ~
9,062 55,782 20,563 44,403 54,989 60 689 234,863 245,288
$8,155,070
$7,566,290 See Notes to Consolidated Financial Statements.
A 5
AMERZCAN ELECTRIC POWER COMPANY5 ZNC.
AND SUBSIDIARY COMPANIES CONSOLIDATED BAZANCE SF%ET (UNAUDITED)
LZABZLZTIES AND CZHER CREDITS CAPZTALIBATZON1 Canon Stock - Par Value
$6.501 March 31, 1979 1978 (Zn Thousands) 1979 150,000,000 1115232,001 1978 1255000,000 103 '265804
~ ~ ~ ~
~ ~ ~ ~
Shares Authorized...........
Shares Outstandlng6
~ ~ ~ ~
P anions on Capital Stocks.
~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Other Paid-in Capital.
Retained Earnings.
~ ~
~ ~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Total Cocmen Shareowners'quity.
Cmulative Preferzed Stocks of'ubsidiaries (Note 4)........,
Long-tern Debt (less portion due within one yeaz)
(Note 3)...
TOTAL CAPITALIZATION (less long-tera debt due within one year)
~ ~ ~ ~ ~ 0 ~ ~ ~ ~ ~ ~ ~ ~
S.723,008 1,0825640 820 600,231 25406,699 650,258 3,591,919 6.648,876 S
671,624 970,375 641 585,559 2 5228, 199 652,484 3,707,555 6,588,238 CURRENT LZABILZTZES1 Long-tern Debt Due Within One Year...
~....
Notes Payable to Banks.
Cozznercial Paper.
Accounts Payable..
Dividends Declared on Cunulative Preferred Stocks...
Taxes Accrued.
~ ~
~ ~ ~
~
~ ~
Interest Accrued.
Revenue Refunds Ac~ed.
Othe" Cu ent Liabilities....
TOTAL CUMKNT LIABZLZTZES~
DEFERS) CREDITS AND OPERATING RESERVES1 De er ed Income Taxes.........................
Deferred Investment Tax Credits.
Other Deferred Credits and Operating Reserves..........
TO AL DEFERRED CREDITS AND OPERATING RESERVES6 TOTAL
~ ~ ~ ~
~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~
2235495 2245841 186,745 154,099 65612 128,624 100,432 9,540 85,630 1 ~ 120.018 291,849 53,055 41,272 386, 176 65,155.020 73,051 47,766 71,865 164,573 5,737 110,366 93,518 29 5212 82,548 6785636 230,683 24,581 44,152 299,416
~9.566.290 See Notes to Consolidated Fmanclal Statement.
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.
Restatement (Note 1)
As Reste'ted
~ ~ ~ ~
~ ~ ~ ~ ~
$580,217 5805217
$575,239 (8,625) 5665614
$5945271 (t8,712) 585,559
$560,301 (7,600) 552,701 ADDITIONS'CnSOlidated Net InCOmee
~ 96.69e.e.ee.ee.e.eeeeeeeeee Transfer from Amor&ration Reserve - Federal to Appropriated Recained Earnings
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
80,414 745989 1,401 241,756 245,977 1,401 660,631 643,004 827.3'5 800.079 DEDUCTIONS )
Cash Dividends Declared on Common Stock...........-..
Othere TOTAL DEDUCTIONS. ~ ~ ~ ~ ~ ~ ~
60,405 (5) 60.400 54,618 2,827 s7.aas 227,120 (36) 227.084 209,851 4.669 214,520 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 Twelve Months Ended March 31.................
Cumulative to March 31, 1979.................
7,400 31il00 58,600 5,800 18,200 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
$2J813g318 Sinking Fund Debentures.............
Notes Payable to Banks.......................
Installment Purchase Contracts...............
Other Long-term Debt.........................
114,$ 53 40,500 418,880 7.727 116,920 392,000 355,490 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:
Descri tion Principal Amount (In Thousands)
Issuances:
10-1/4% First Mortgage Bonds due 1987..........
9-1/2% First Mortgage Bonds due 2008 (issued to refinance certain Long-term Notes Payable to Banks due 1980 - see below)...............
Retirements:
Partial prepayment of Long-term Notes Payable to Banks due 1980............................
$80,000 45,000 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-V change of stock if the Company 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,