ML18143A779

From kanterella
Jump to navigation Jump to search
R. E. Ginna - Annual Report for Year Ending December 31, 1976
ML18143A779
Person / Time
Site: Ginna Constellation icon.png
Issue date: 12/31/1976
From: Drake F
Rochester Gas & Electric Corp
To:
Office of Nuclear Reactor Regulation
References
Download: ML18143A779 (28)
v • d • e


Text

NOTICE THE ATTACHED FILES ARE OFFICIAL RECORDS OF THE DIVISION OF DOCUMENT CONTROL. THEY HAVE BEEN CHARGED TO YOU FOR A LIMITED TIME PERIOD AND MUST BE RETURNED TO THE RECORDS FACILITY BRANCH 016. PLEASE DO NOT SEND DOCUMENTS CHARGED OUT THROUGH THE MAIL. REMOVAL OF ANY PAGE(S) FROM DOCUMENT FOR REPRODUCTION MUST BE REFERRED TO FILE PERSONNEL.

DEADLINE RETURN DATE RECORDS FACILITYBRANCH

0 9 Cover RC&E Service Area/ Business ~ Major RG&E Electric Lines

~ Major RG8 Gas Lines E

Energy requirements continue to increase. Our The Company supplies electric, gas cx N.Y.S. Power Authority Electric Line society's need for additional electric energy is and steam service wholly within the W Beebee Electric Generating Station neither a result of waste nor frivolous use, but rather a product of normal growth and progress. State of New York. It is engaged in the C5 Russell Electric Generating Station Some of the elements that are contributing or will production, purchase, transmission, n Ginna Nuclear Power Station contribute to this growth in our service area are distribution and sale of these services Q Major Electric Substations depicted in this report-a new hospital, new Q Natural Gas Supply Stations products, a new office building, and a proposed in an area serving nine counties refuse recycling plant. They all contribute to a centering about the City of Rochester. Q Sterling Plant Site better way of life and a more healthy economy.

Energy is essential for growth, and RG&E is The Company's territory, which has a prepared to meet the needs now and in the future.

population of approximately 883,000, is well diversified among residential, NEW YORK STATE commercial and industrial consumers.

In addition to the City of Rochester, which is the third largest city and a major industrial center in the State, it includes a large and prosperous farming area.

.iI C

~

ge ot4TARIO OSWEGO ORLEANS RocII@IItr NIAGARA WAYNE MONROE ONONDAGA GENESEE CAYUGA Buttalo ONT IO Csnandaig s ERIE WYOMING P (,I

'IVINGSTON YATES SENECA TOMPKINS AI.L GAN Y SCHUYLER CHAUTAUOUA CATTARAUGUS STEUSEN CHEMUNG -

TIOGA PENNSYLVANIA

Annual Report for year ending December 31, 1976 Contents Highlights 2 Letter to Shareholders 3 Electric Operations 6 Gas Operations 9 Research and Development 9 Forecast 10 Management'5 Discussion and Analysis of the Statement of Income 11 Financial Statements/Operating Statistics 13 Directors 24 OffICels ffnside back cover)

Principal Ofnce 89 East Avenue Rochester, New York 14649 (716) 546-2700 Financial Contact

+~a Paul W. Briggs President Annual Meeting Q May 18, 1977 At Rochester, New York Bond Trustee and Paying Agent Bankers Trust Coinpany Post Office Box 318 Church Street Station New York, New York 10015 New York Stock Exchange Symbol Rochester Gas and Electric Corporation i-'tiictiiaci Common Stock RGS Transfer Agent Lincoln First Bank of Rochester Stock Transfer Department Post Ofgce Box 1250 coiitnlN7~ gZ Rochester, New York 14603 Registrar Security Trust Company of Rochester QKQlA RY MCKEf R1K One East Avenue Rochester, New York 14638 Co.transfer Agent Morgan Guaranty Trust Company of New York 30 West Broadway New York, New York 10015 Co-registrar The Chase Manhattan Bank (National Association)

One Chase Manhattan Plaza New York, New York 10015 Agent for Automatic Dividend Reinvestment Plan lincoln First Bank of Rochester Automatic Dividend Reinvestment Service Post Office Box 1507 Rochester, New York 14603 Shareholder Inqutrtes Communications regarding stock transfer requirements or lost certificates may be directed to one of the Company's stock transfer agents.

Other inquiries should be directed to D. W. Caple, Secretary and Treasurer at the Company.

The Company will provide, without charge, a copy of the Annual Report on Form 10-K filed wilh the Securities and Exchange Commission with respect lo fiscal year 1976, upon wriltcn request of any sharcholdcr addressed to the Secretary.

Highlights Common Stock 1976 1975  % Change Earnings per weighted average share . $ 2.37 $ 2.15 10 Number of shares (000's)

Weighted average 11,296 10,356 Pro forma weighted average after stock dividend paid in following year (See Note) 11,634 10,667 Actual number at December 31 11,366 10,880 Number of shareholders . 40,153 39,704 Price range (Sales on New York Stock Exchange) High Low High Low 1st quarter . 17'/s 15i/s 15%

10'7%

2nd quarter 16% 15'h 13'/s 3rd quarter 18'/4 15 /s 17Vs 15 4th quarter 19~/s 17 16'/2 15 Cash dividends paid (100% taxable) 1st quarter . $ .32 $ .31 2nd quarter .32 .31 3rd quarter .32 .32 4th quarter . .32 .32 Stock dividend paid (See Note) . 3% 3%

Sales and Revenue Electricity to customers Kilowatt-hours (000's) . 4,805,740 4,521,299 6 Revenue (000's) . $ 170,558 $ 146,629 16 Electricity to other utilities Kilowatt-hours (000's) . 1,187,942 1,864,050 (36)

Revenue (000's) . $ 18,259 $ 25,496 (28)

Gas Therms (000's) . 467,831 424,234 10 Revenue (000's) . $ 101,027 $ 82,478 22 Steam Pounds (000's) . 3,147,359 3,145,453 Revenue (000's) . $ 18,383 $ 17,337 Total revenue $ 308,227 $ 271,940 13 Ciperating Expense (000's)

Electric and steam fuels $ 46,361 $ 46,268 Purchased electricity 18,195 12,212 49 Purchased natural gas . 56,192 42,247 33 Wages and benefits 47,097 44,133 7 Other expense 'P 30,786 26,196 18 Total operating expense s $ 198,631 $ 171,056 16 Taxes (000's)

Local, state and other $ 40,502 $ 36,157 12 Federal income tax charged to operations 5,365 5,295 1 Capital Expenditures (000's)

Utility plant, less allowance for funds used during construction $ 67,162 $ 71,733 (6)

Nuclear fuel 13,829 6,415 116 Net Utility Plant at December 31 (000's) $ 649,611 $ 587,330 Number of Employees 2,644 2,653 Note: The 18th annual stock dividend was paid February 25, 1977 at the rate of three percent.

To Shareholders Company earnings on common stock in Growth in customer sales, the greater 1976 were $ 26.8 million compared utilization of RG8 E capacity on its own with the $ 22.3 million earned in 1975. system, and diminished capacity due to This 20 percent increase in earnings Ginna plant outages caused revenue reflects rate increases granted in April from electric sales to other utilities to 1976, and a gradual strengthening of the decline $ 7.2 million in 1976.

economy in the RGSE franchise area.

On two occasions turbine blade failures Earnings per share were $ 2.37, an increase of ten percent over 1975's in the low pressure section of the Ginna nuclear power plant's 470 megawatt

$ 2.15 per share, thus more than offsetting the dilution resulting from the (MW) unit caused lengthy outages. The October 1975 offering of one million availability of the Ginna nuclear power shares of common stock.

plant in 1976 was 58 percent, as compared with 77 percent availability francis E. Drake, /r. Paul W. Brims Total revenue from electric, gas and in 1975. In spite of the reduced steam sales, including electric sales to availability, Ginna's operation still We spent $ 27 million for participation other utilities, was $ 308 million, an saved RG&E customers $ 21 million in in two other generating plant projects.

increase of $ 36 million, or 13 percent fuel costs alone when compared with RG8 E has a 24 percent share in Niagara over the $ 272 million received in 1975. the cost of coal that would have been Mohawk's proposed 850 MW oil-fired Customer revenues increased $ 43.5 used to generate an equal amount of plant near Oswego, New York, million over 1975. An estimated $ 10.9 electricity. scheduled for operation in 1979, and a million of this revenue was a direct 14 percent share in its 1,084 MW Operation and maintenance costs result of rate increases that were nuclear power plant at Nine Mile Point during 1976 were $ 198.6 million, 16 approved in April 1976, and which near Oswego that is expected to be percent more than the 1975 costs of allowed a 7.9 percent increase for operational in 1982. Our participation

$ 171 million. Fuels for the generation of in these projects, and the construction electricity and 6.3 percent for gas. electricity and steam totaled $ 46.4 Recovery of increases in the cost of of the Sterling plant, will enable us to million, about the same as 1975 costs.

purchased electricity, fuels used in the closely match capacity with actual load More electricity was purchased in 1976 generation of electricity and steam, and to replace the loss of Ginna plant growth, and shield our customers from in the cost of natural gas, amounted to the burden of large capital outlays for power, increasing the cost of purchased

$ 18.6 million more than in 1975.

wholly-owned projects.

electricity by 49 percent to a total of Customer use of electricity and gas $ 18.2 million. Natural gas cost was up During 1976 we continued to support increased in 1976. Electric consumption $ 13.9 million, or 33 percent over 1975, the Empire State Power Resources, Inc.

was 4.8 million megawatt-hours reflecting increased sales and the higher (ESPRI) proposal. New York State' cost of pipeline gas. Costs for materials seven investor-owned power companies (MWH), or six percent more than the in 1976 rose 12 percent on the average. are seeking to establish ESPRI as a 4.5 million MWH consumed in the Total local, state and other taxes paid statewide subsidiary generating previous year. Gas delivery totaled 467.8 million therms, an increase of ten amounted to $ 40.5 million, representing company for site selection and power an increase of $ 4.3 million, or 12 plant construction in the 1980's and percent over the 424.2 million therms delivered in 1975. percent more than 1975 taxes. beyond. The ESPRI organization will be Capital expenditures in 1976 totaled able to achieve economies by unified A moderate summer in our service area, power plant licensing, financing and 18 percent cooler than 1975, reduced $ 81 million, exclusive of allowance for funds used during construction. Of that construction. If ESPRI becomes a reality, electric sales below the level normally savings to RG8 E customers through experienced. Much colder-than-normal amount, $ 2.8 million was expended for RG8 E's proposed 1,150 MW nuclear 1998 are estimated to be a minimum of weather in late fall and early winter $ 542 million, and statewide consumer tended to compensate and was power plant near Sterling, New York.

The project will be shared by Central savings through ESPRI could be at least responsible for most of the increase in $ 6.3 billion during the same period.

Hudson, Orange and Rockland, and gas sales.

Niagara Mohawk, and RGRE's participation is 28 percent. State and federal hearings on the Sterling project were closed in November 1976. If approvals are received, we plan to break ground in 1977, and have the plant in operation by 1984.

In April 1976, after the full 11-month The greater demand for electricity by curtailments should be invoked. As a statutory period, the New York State our customers in 1976 reflects a result, those customers with the ability Public Service Commission allowed revitalization in the economy. An to convert to alternate fuels were RG8 E to increase its gas rates by $ 5 encouraging 7.7 percent gain in requested to do so, and the Company million a year, or 74 percent of the industrial electric consumption over requested all customers to reduce amount requested, and by $ 11 million a 1975 led the growth. Residential and thermostat settings to 65 degrees in the year, or 42 percent of the electric commercial electric consumption rose daytime and 60 degrees at night. In a request. In granting what amounted to 5.7 percent and 5.5 percent, series of steps, steep curtailments were only half of the requested dollar respectively, and total electric ordered for commercial and industrial increase, the PSC stated that the new consumption was up 6.3 percent. customers. For a ten-day period rates were being set for a period of one commencing January 29, industrial As previously stated, gas usage year. As expected, these rates proved customers were restricted to using only increased ten percent in 1976, due entirely inadequate and, after eight the amount of gas necessary to protect mainly to colder weather. Because of months of experience, the Company equipment from damage. Moderating the gas emergency which occurred early was forced to file again for electric and temperatures and emergency purchases in 1977, we feel it is necessary to focus gas rate increases on December 3, of gas from Canada and the Pacific some special attention on the subject of 1976. We have petitioned for a 12.2 Coast allowed the restrictions to be natural gas supplies.

percent increase in electric rates and a eased somewhat on February 7, and on 7.3 percent increase for natural gas. In the summer and early fall of 1976, February 9, industrial customers were These rates would generate an our natural gas supplier, Consolidated permitted to return to normal additional $ 20.1 million in annual Gas Supply Corporation, had stored gas operations.

electric revenues and $ 7.0 million in to maximum capacities, and also had The severe weather in January 1977 gas. Because the PSC procedures on rate access to additional supplies through resulted in abnormally high gas sales.

filings inevitably require the full 11 interstate pipelines. Because of this The Company did not feel that it should months permitted by statute, new rates supply situation, the Company and the take undue advantage of these unusual are not expected to become effective supplier agreed that limited additional circumstances while, at the same time, until November 1977. quantities of gas could be provided to customers were faced with record high some of our customers whose supply Our estimate for the Company's capital heating bills, and often with reduced had been restricted by allotment. The requirements over the next ten years is income due to plant shutdowns forced increased deliveries began in July and

$ 1.3 billion. It is expected that 40 to 50 ended December 31, 1976.

by natural gas curtailments. To partially percent of the required capital is to be alleviate the economic burden, the generated internally, with the balance to The apparent satisfactory supply Company made a one-time reduction of be acquired through long-term situation, and the prospect of increased ten dollars in each bill for residential gas financing. gas supplies to be made available in heating customers. This amounted to a 1978 from the importation of liquified revenue reduction of $ 1.5 million, In June 1976, the Company sold natural gas (LNG) from Algeria by our before taxes.

$ 50 million of first mortgage bonds at supplier, prompted us to petition the It should be realized that residential gas 9/4 percent interest. Proceeds from the PSC early in December for a relaxation issue were used to defray capital costs customers have the highest priority, and of its 1975 order that prohibited the and to pay $ 35 million in short-term the Company had no legal control over addition of new gas customers. This debt. their usage during the gas shortage. It request was subsequently postponed by was mainly the voluntary cooperation of During 1976, the Automatic Dividend the Company.

the residential gas spaceheating Reinvestment (ADR) program continued The widespread and prolonged cold customers in reducing their to gain popularity, with 15.2 percent of weather that set records in many parts of consumption that freed up gas for our shareholders participating. This the country in January of this year industrial use, thus minimizing the participation represented 11 percent of overall economic impact of the gas quickly and completely reversed the all common shares outstanding, and a national gas supply situation. In shortage on the community.

total investment of $ 2.6 million as mid-January the Company was advised compared with the $ 1.9 million Consequently, it was felt the Company's by its gas supplier that a critical long-range objectives would be best invested in 1975. This reinvestment plan situation existed, and customer is an important source of capital funding served if the Company shared the and is becoming more significant with economic burden that the extremely the issue of nearly 160,000 shares of cold weather had placed on the common stock annually. community. The public reaction to the decision has been very positive.

The gas supply situation is still a senous problem. Stored gas reserves have been reduced far below normal, and it seems certain that some curtailments and conservation measures will remain in effect. A replenishment of stored gas this summer, and the anticipated 1978 allotments of LNG, could materially improve the gas supply picture in the near future.

Last year we reported that of all gas and electric utilities operating in New York State, RG8rE had the lowest number of complaints registered with the Public Service Commission in both gas and electric categories. We are happy to report that we still maintain that enviable position, thanks to the outstanding efforts of our employees.

Again this year we have been able to reduce our work force, reflecting a continued increase in employee productivity.

While it is difficult to make any firm, long-term projections, there is no question, in our opinion, that there will be a steady growth in the use of electricity. Although gas demands

'presently exceed supply, we believe there is room for growth in the gas business as new gas resources become available. As we are meeting our customers'aily requirements, we shall place a high priority on maintaining flexibility in planning for their future energy needs.

Sincerely, ail//C~ 8 ~$

Francis E. Drake, Jr.

Chairman of the Board and Chief Executive Officer Paul W. Briftfts President March 1, 1977 First Federal Plaza adds a new look to the Rochester skyline. The 20-story structure is scheduled for occupancy in 1977.

Operations Even with the influence of energy Steam sales for the year were conservation measures, supported by approximately the same as in 1975.

RG&E through customer Increased use due to cold weather was communications programs, energy offset by loss of steam customers and by demands continue to grow. conservation measures.

In 1976, electric consumption by Electric Operations The Company is residential customers rose 5.7 percent engaged in several long-range programs while commercial and industrial use designed to meet expanding electric showed 5.5 percent and 7.7 percent energy needs. Construction is in gains, respectively. Overall, 1976 total progress on Niagara Mohawk's Oswego kilowatt-hour sales to our customers tlt6 oil-fired plant and its Nine Mile were 6.3 percent more than the Point tls2 nuclear power plant. RG&E previous year. has a 24 percent share of the 850 MW Natural gas sales to existing customers Oswego plant scheduled for operation in 1979, and a 14 percent share in the increased ten percent in residential, Nine Mile Point 1,084 MW plant that 10.5 percent in commercial, and 10.8 will be operational in 1982.

percent in industrial. Combined gas sales for the year were 10.3 percent In October 1976, RG&E signed an more than 1975, and colder-than- agreement with the County of Monroe RG8 E System Capability and Electric Loads normal weather from September in which the Company agreed to use Thousands of Kifowats through December resulted in gas sales refuse derived fuel (RDF) that will be a 14 percent above projections for that by-product of the County's refuse 0 Total Capability period. recycling facility now under 0 Total Capability Forecast Required Capability construction. Two coal-fired boilers at goad plus required reserve)' Russell Station will be initially modified Peak Loads Actual 0 Peak Loads Forecast to accept the confetti-like RDF. The fuel deliveries are expected to start in 1979 when the recycling plant begins 7as zS operation. Costs for boiler modification 2000 will be recovered in RDF price adjustments, and the cost of the fuel will 1750 I/ be tied to the market price of coal, thus C Z having no impact on fuel cost K 0 r 1500 F adjustments for electric customers.

Z The Company's reinforcement of 1250 electric power supply to the downtown Q

Rochester area continued with the start 1000 of the installation of a second 115,000 volt pipe-cable. Additional 115,000 volt overhead transmission lines are also 750 under construction to major load centers. These projects will provide 500 greater operational flexibilityand will accommodate substantial future growth.

250 Turbine Blade Failure On April 10, 1976, the Ginna nuclear power plant was returned to service following the annual 1968 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 refueling, inspection and maintenance Actual Forecast shutdown which commenced February

'The most recent generating unit added to the RCgE system was thc Cinna nuclear 1, 1976. This planned shutdown had plant which was completedin 1970, at approximately one. sixth of the present cost of a comparable unit. It is estimated that the plant has saved customers more than S 100 million in fuel costs alone duringits operaung lifeumc, andit provides electricity at the lowest total cost of any steam generating unit on our system. This fow-cost generating capacity willconunue to benelit RC&E customers.

been advanced in order to replace an entire row of turbine blades in the low-pressure end of the unit as a result of a blade failure experienced on January 29, 1976.

On August 7, 1976, damage was again sustained in the replaced section, forcing another shutdown. There appeared to be a design deficiency in one row of blades in the low-pressure section of the turbine, and it was concluded that a simple replacement of the failed blades would not be an adequate solution. As a temporary measure, three rows of low-pressure blades were removed, and baffles were substituted to simulate normal pressure drops. The plant was returned to service j~ on September 4, with its capacity reduced to 86 percent of normal. A new low-pressure rotor has been ordered and is expected to be installed during the refueling period in the spring of 1978.

These lengthy outages in 1976 reduced the availability of the Ginna nuclear power plant and somewhat diminished the savings to customers. In 1975, our customers realized fuel savings of more than $ 33 million as a result of nuclear plant operation, while the savings amounted to only $ 21 million in 1976.

top An RC&E crewman repairs a line connection during the severe ice storm of March 1976. Crews responded quickly to widespread power outages.

bottom Iett An engineer examines blade damage in Cinna Station's turbine. A new turbine rotor is being designed and fabricated for installauon in 1978.

bottom right An opossum is released at the site for the proposed nuclear power plant near Sterling, New York. A thorough study of animal and insect habitat was made.

T~T""

Y)$

Electric Kilowatt-Hour Sales to our Customers by Classes millions Residential 1500 1000 500 0

1500 Commercial 1000 500 0

1500 Industrial 1000 500 0

500 Other 0

1967 68 69 70 71 72 73 74 75 76 Total Electric KWH Sales Year Total in millions 1976 4806 1975 4521 1974 4408 1973 4540 1972 4292 1971 3982 1970 3802 1969 3578 1968 3280 1967 2993 top left A section of 12-inch plastic gas line replacement is prepared for insertion into older 16-inch gas mains. The plastic pipe resists corrosion and seepage.

top right To minimize disruption of service and traffic, gas conversion work was accomplished at night whenever possible.

center right Personnel of the health physics laboratory in the nuclear power plant at Ginna Station continually test the environment, both inside and out.

bottom Pictured is a model of the Monroe County refuse recycling facility scheduled for completion in 1979. RC8 E has contracted with the County to purchase refuse derived fuel (RDF) from the faci%ty for boiler use at the Russell Station generating plant.

Gas Operations On June 30, 1976, a Through Stone and Webster Engineering Cas Therm Sales valve was turned that ended the Corporation, RG8 E is supporting lo our Customers by Classes manufactured gas era for RG&E environmental study at Worcester Residential millions customers an era that began in 1848. Polytechnic Institute that will reduce 250 Conversion of manufactured gas fish impingement on power plant customers'quipment to straight natural cooling water intake systems. 200 gas has taken place during the last The Company participates in other 150 several years, and was completed in the research programs through the Empire spring of 1976. An annual savings of 100 State Electric Energy Research

$ 1.8 million is projected because of Corporation (ESEERCO) and the Electric 50 operational and tax cost reductions. The Power Research Institute (EPRI). One of conversion also made an additional 225 the major ESEERCO projects involves a million cubic feet of natural gas

$ 22 million test installation of 100 available annually that had been "scrubbers" in the stacks at Niagara consumed in the gas manufacturing 50 Mohawk's Huntley Station. By removing process.

sulfur dioxide, the equipment will Work continued in 1976 to improve gas reduce air pollution and allow the lines. An innovative technique has been burning of more abundant, and less Industrial 100 developed that permits modern 12-inch expensive, high-sulfur coal. RG&E is 50 plastic piping to be inserted into the also participating in a major national older 16-inch distribution lines made of program to develop a liquid metal fast cast iron or steel. This procedure is less breeder reactor. It is our position that expensive than replacing the older lines development of a commercial breeder Other 50 and, in addition, these new lines are reactor is an essential component of a more durable, more corrosion resistant, viable National Energy Policy. 1967 68 69 70 71 72 73 74 75 76 and more easily installed.

A quality research and development Total Gas Therm Sales Research and Development In 1976, program can be to everyone' Year Total in millions 1976'68 RG&E invested $ 1.8 million in support advantage, and RG&E, is continuing to 1975 424 of research and development programs support programs aimed at providing 1974 454 1973 435 More than half of the total expenditure clean, abundant energy for the future. 1972 469 was allocated by the Company directly New Appointment Robert C.

1971 442 1970 425 to institutions and organizations to Henderson was named an Assistant 1969 403 finance specific research. Controller for the Company effective 1968 374 1967 349 One project involves a $ 35,000 grant to October 20, 1976. Mr. Henderson Rochester Institute of Technology (RIT) joined the Company's accounting for development of a modern, department in 1963, and at the time of solar-assisted, energy-efficient home. his promotion was Manager of Financial RG&E is also providing technical advice Analysis.

and instrumentation for the home Retirement Donald R. MacCollum, scheduled to be completed on campus Senior Vice President Gas, in early 1977. The Company is also Transportation, and Fuels Research, assisting RIT on a study of wind- retired August 1, 1976, after 42 years of generated electricity. service with the Company.

At Rensselaer Polytechnic Institute, Albert J. Klemmer It is with deep regret RG8rE is funding a study for an that we note the death of Albert J.

improved thermal window for better Klemmer, Vice President of Customer insulation, and a project that hopes to Services, who died on April 27, 1976. A further improve preventive maintenance native of Rochester, New York, he was of transformers. highly respected within the community and the Company.

9

forecast 1977 We expect an increase in earnings for 1977, together with merit and 1977. Electric consumption by our promotional increases, will increase customers is forecast to increase payroll by $ 5.1 million during the year.

4.9 percent in 1977. Commercial and The Company forecasts that its capital industrial reaction to a continuing expenditures for 1977 will amount to economic recovery may drive the $ 100 million for property and estimate beyond this conservative level. equipment plus $ 16.6 million for Any revitalization of housing starts will nuclear fuel. The forecast for utility increase residential electric plant expenditures includes $ 70.5 consumption. The sale of electricity to million for projects initiated prior to other utilities will decrease due to the january 1, 1977, and $ 29.5 million for increased requirements of our new projects in 1977. The expenditures customers. include $ 11 million of allowance for RG8 E has taken steps, through advance funds used during construction, leaving planning, that will meet increasing $ 105.6 million for new construction.

energy requirements through the late Capital will be provided by use of 1980's, and support healthy economic internal funds and external financing.

growth in the area. We presently plan 1977 financing Gas sales for 1977 are projected to through $ 40 million of bonds, decrease 3.2 percent, but the $ 20 million of common stock, including uncertainty of the gas supply situation Automatic Dividend Reinvestment Plan will affect any estimate. No new load shares, plus $ 15 million in short-term growth is anticipated for steam. debt. The balance of funds to finance construction and to refund the It is expected that taxes, materials and

$ 6 million of Series D Bonds that will operating costs will continue to rise. mature September 1, 1977 is expected Local, state and other taxes are to be supplied by internal cash flow.

projected to increase by $ 4.4 million over 1976 payments. A wage adjustment that was granted in February Electric Generating Projects RC&E's Share Net Estimated Estimated Megawatt Year of Total Project Construction Cost (1)

Plant Capability Operation Cost (1) Megawatts Percent 1977 Total Millions of Millions of Dollars Dollars Oswego Unit f)f6 Oil (2) .............. 850 1979 $ 247.0 204 24 $ 9.8 $ 59.3 Nine Mile Point Nuclear Unit sjs2 (2) ..... 1084 1982 863.0 (3) 150 14 19.9 120.8 Sterling Nuclear (4) .................... 1150 1984 927.4 (5) 322 28 3.8 259.7

$ 33.5 (1) Construction costs are exclusive of allowance for funds used during construction, and certain overhead costs to be capitalized.

(2) To be constructed and operated by Niagara Mohawk Power Corporation.

(3) Total project costs include $ 70.7 million for the initial nuclear fuel loading.

(4) To be constructed and operated by RC& E.

(5) Total project costs include $ 87.0 million for the initial nuclear fuel loading, 10

Management's Discussion and Analysis of the Statement of Income The following financial review discusses major changes that rates effective in April 1976 increasing revenue $ 5 million affected differences in Net Income, between 1976/1975 annually. Previously rates increasing revenue $ 4.9 million and between 1975/1974, as reported in the Statement of annually were approved in October 1974.

Income on page 14 of this report. The Notes to Financial Revenue changes from weather effects, on a degree day Statements on page 17 of this report contain additional basis, resulted from 11.2 percent colder weather in 1976 information that relates to this discussion.

than in 1975 and 8.8 percent warmer weather in 1975 than Revenue in 1974.

Changes in Electric Revenue Changes in Steam Revenue Increase or (Decrease) from Prior Year Increase or (Decrease) from Prior Year 1976 1975 1976 1975 Customer Revenue (estimated) from IThoukaoCk of Oot)an) Customer Revenue (estimated) from IThouwnkh of Dot)ark)

Rate increases . .......... $ 8,449 $ i3,474 Rate increases $ 960 $ 875 Fuel cost adjustment . 9,395 2,176 Fuel cost adjustment (109) 1,845 Sales 6,051 3,307 Weather effects .............. 977 (760)

Other 34 112 Sales '........................ (796) (947)

Total Change in Customer Revenue 23,929 19,069 Other 14 3 Electric Sales to Other Utilities .... (7,237) 10,799 Total Change in Steam Revenue ... .......... $ 1,046 $ 1,016 Total Change in Electric Revenue .. .......... $ 16,692 $ 29,868 A steam rate increase designed to raise annual revenue $ 2.5 Total revenue from electric customers increased $ 23.9 million was approved in April 1975.

million in 1976 and $ 19.1 million in 1975. Effective April Expense 20, 1976 the Company received approval to increase Changes in Operation and Maintenance Expense electric rates $ 11 million annually. Previously rates increasing revenue $ 17.9 million annually were approved Increase or (Decrease) from Prior Year in October 1974. 1976 1975 IThoukanCk of Dollars)

Electric kilowatt-hour sales to our customers increased 6.3 Electric and steam fuels $ 93 $ 9,575 percent in 1976 and 2.6 percent in 1975. Unlike 1975 Purchased electricity 5,983 142 when industrial consumption lagged, 1976 showed Purchased natural gas 13,945 4,905 increased consumption in the residential, commercial and Other operation . 7,048 6,273 industrial sectors reflecting an improved economy, new Maintenance . 506 1,734 electric residential heating customers and an extremely cold Total Change in Operation and Maintenance Expense $ 27,575 $ 22,629 fourth quarter.

Revenue from electric sales to other utilities decreased $ 7.2 Total operation and maintenance expense increases in million in 1976 and increased $ 10.8 million in 1975. 1976 and 1975 were affected by several major factors.

Surplus system generation was not available for sale during Ginna nuclear plant electric generation, which has a much 145 days of 1976 and during the 114-day shutdown of the lower cost than generation at fossil-fueled plants was Ginna nuclear station in 1974. Nuclear generating capacity available almost eight months of 1974, nearly ten months in was available for nearly ten months in 1975. 1975 and approximately seven months in 1976.

Changes in Gas Revenue The 1975 increase in electric and steam fuels expense was mainly attributed to increased fuel supply costs and an Increase or (Decrease) from Pikor Year increase in electricity generated in 1975. The purchased 1976 1975 electricity expense increase in 1976 reflects an 11.6 percent Customer Revenue (estimated) from (Thousand of Dollars) increase in kilowatt-hour purchases and a 13.2 percent Rate increases . $ 2,460 $ 3,517 Gas cost adjustment 9,266 7,422 decrease in Company kilowatt-hour electric generation due Weather effects 4,488 (3,419) to shutdowns at the Ginna nuclear plant.

Sales . 2,297 (460)

Other . 38 The increases in cost of purchased natural gas were (45)

Total Change in Gas Revenue..... .......... $ 18,549 primarily caused by increases in pipeline rates in both

$ 7,015 periods. The amount of increase was higher in 1976 mainly Total gas revenue increased by $ 18.5 million in 1976 because of increased consumption due to colder weather.

principally due to higher gas cost adjustments and colder The increase in other operation and maintenance expenses than normal weather during the fourth quarter of the year. in 1976 and 1975 reflects increased payroll and related In addition the Company received approval of new gas expenses and the higher cost of materials and supplies.

Changes in Taxes Other Statement of Income Items Taxes local, state and other increased $ 4.3 million in The increase in allowance for funds used during 1976 and $ 3.7 million in 1975, principally due to higher construction of $ 4 million in 1976 and $ 1.8 million in 1975 property taxes resulting from the addition of new plant, was due to increases in utility plant expenditures in both increased property tax rates, and higher franchise and gross periods. The rates used to capitalize allowance for funds income taxes based on increased revenues. used during construction were: January 1, 1972 to August 31, 1973, 7t/z%; September 1, 1973 to May 31, 1974, 8%;

Changes in Federal Income Tax June 1, 1974 to June 30, 1975, 10%; July 1, 1975, to April 30, 1976, 8'/4%; and effective May 1, 1976, 8/a%.

Increase or (Decrease) in Tax from Prior Year 1976 1975 Interest on long term debt increased $ 2.4 million in 1976 Change in tax resulting from (thousands of Dollars) and $ 2 million in 1975 reflecting additional bonds issued in difference in pretax income... ............... $ 2,982 $ 4,756 June 1976 and August 1974.

Change in tax resulting from differences in items deductible for tax purposes The 1976 decrease of $ 1 million in other interest reflects but not expensed on the books for which mainly interest on contract payments for jointly-owned tax benefit is recognized currently ........ (3,274) (169) generating facilities amounting to less than $ .1 million in Other (215) (508) 1976 as compared with almost $ 1 million in 1975.

Total Change in Federal Income Tax ........ $ (507) $ 4,079 Preferred stock dividends increased $ 2.2 million in 1976 because of additional preferred stock issued in October See Note 2 to the financial statements for a detailed analysis. 1975.

Rate Increases C ranted Amount of Rate of Rate of Increase Percent Return on Return on Class of Effective (Annual Basis) of Rate Base Equity Service Date of Increase (000's) Increase Authorized Authorized Electric March 25, 1971 $ 5,900 7.48% 7.72% 12.00%

October 25, 1972 10,154 11.50 7.96 12.00 October 23, 1974 17,992 16.00 8.83 13.19 April 20, 1976 11,002 7.90 9.35 13.50 Gas April 28, 1972 3,676 6.80 7.77 12.00 October 23, 1974 4,854 7.60 8.42 12.09 April 20, 1976 4,983 6.30 9.35 13.50 Steam November 20, 1970 1,157 21.00 4.32 May 11, 1972 897 11.40 6.48 November 12, 1973 500 5.10 7.25 April 15, 1975 2,475 12.00 8.69 Pending Requests Class of Amount Service Date of Filing (000's) Percent Electric December 3, 1976 $ 20,096 12.20%

Gas December 3, 1976 6,998 7.30 12

it y

Financial Statements Income 14 Balance Sheet 15 Changes in Financial Position 16 Retained Earnings 17 Notes to Financial Statements 17 Report of Independent Accountants 20 Operating Statistics Electric Department 21 Gas Department 22 Steam Department 23 top Iclt and risbt RG&E employees provide the talent far the Women's and Men's Charuses which entertain audiences throughaut the Company's service territory.

ccntcr Surgery is shown in one of 5Vong Memorial Hospital's 20 operating rooms. The 647-bed, modem facility is now one of the region's largest hospitals and is primarily electric.

bottom Production in 1976 expanded at the Rochester-based Eastman Kodak Campany with the introduction of Kodak instant cameras and film.

ROCHESTER CAS AND ELECTRIC CORPORATION Statement Of InCOme trhovsands oI uolte')

Year Ended December 31 1976 1975 1974 1973 1972 Revenue (Notes I and 3)

Electric $ 170,558 $ 146,629 $ 127,560 $ 116,512,$ 102,709 Gas 101,027 82,478 75,463 64,633 65,865 Steam . 18,383 17,337 16,321 10,014 9,199 289,968 246,444 219,344 191,159 177,773 Electric sales to other utilities 18,259 25,496 14,697 21,112 14,063 308,227 271,940 234,041 212,271 191,836 Expense (Notes I and 3)

Electric and steam fuels 46,361 46,268 36,693 25,612 21,979 Purchased electricity . 18,195 12I212 12,070 8,841 8,049 Purchased natural gas 56,192 42,247 37,342 29,923 31,318 Other operation 57,677 50,629 44,356 40,999 37,922 Maintenance . 20,206 19,700 17,966 15,888 14,872 Total operation and maintenance expense 198,631 171,056 148,427 121,263 114,140 Depreciation 18,621 17,414 16,491 15,145 14,565 Taxes local, state and other . 40,502 36,157 32,410 29,993 27,885 Federal income tax (Note 2) 5,365 5,295 1,151 7,639 1,660 263,119 229,922 198,479 174,040 158,250 Operating Income 45,108 42,018 35,562 38,231 33,586 Other Income and Deductions Allowance for funds used during construction (Note I)... 7,531 3,574 1,741 447 456 Other 1,128 537 670 715 203 8,659 4,111 2,411 1,162 659 Income before Interest Charges 53,767 46,129 37,973 39,393 34,245 Interest Charges Interest on long term debt 19,378 16,963 14,965 13,738 13,738 Interest on short term debt 1,054 1,568 2,255 1,246 1,160 Other 246 -

1,227 210 103 102 20,678 19,758 17,430 15,087 15,000 Income before giving effect to a change in recording month-end revenue and expense 33,089 26,371 20,543 24,306 19,245 Effect on calendar year 1972 of recording four additional days of revenue and expense (Note 3) 706 Net Income 33,089 26,371 20,543 24,306 19,951 Dividends on Preferred Stock, at required annual rates .. 6,245 4,054 3,550 3,550 3,550 Earnings Applicable to Common Stock $ 26,844 $ 22,317 $ 16,993 $ 20,756 $ 16,401 Weighted average number of shares outstanding in each period (000's) . 11,296 10,356 10,018 9,1 Earnings per share of common stock based on weighted average number of shares outstanding in each period, adjusted for stock dividends: (Note 1)

Income before giving effect to a change in recording month-end revenue and expense $ 2 37 2.15 $ 1.70 $ 2 26 $ 1.87 Effect on calendar year 1972 of recording four additional days of revenue and expense (Note 3) .09 Net earnings per share $ 2.37 $ 2.15 $ 1.70 $ 2.26 $ 1.96 Cash Dividends per Common Share, adjusted for stock divide ds (Note 1) . $ 1.27 $ 1.21 $ 1.16 $ 1.11 $ .06 14

ROCHESTER GAS AND ELECTRIC CORPORATION BalanCe Sheet II ~,~~uI ASSETS At December 31 1976 1975 1974 1973 1972 Utility Plant, at original cost (Note 1)

Electric $ 551,724 $ 516,199 $ 485,889 $ 453,484 $ 442,337 Gas 158,386 160,322 156,951 149,399 142,320 Steam 17,577 16,883 16,468 16,008 15,273 727,687 693,404 659,308 618,891 599,930 Less Accumulated Depreciation and Amortization Electric 158,216 142,046 125,941 111,401 103,240 Cas . 34,967 38,365 37,114 34,965 32 177 Steam 5,595 5 044 4,590 4,234 4,388 198,778 185,455 167,645 150,600 139,805 528,909 507,949 491,663 468,291 460,125 Construction work in progress 120,702 79,381 39,324 24,542 16,539 649,611 587,330 530,987 492,833 476,664 Investment in subsidiary, at equity (Note 1) 1,911 1,871 1,834 Current Assets Cash (Note 5) 6,429 7,247 7,458 5 434 13,651 Accounts receivable 33,806 24,217 25,354 22,239 19,643 Materials and supplies, at average cost 20,209 21,675 19,017 10,799 9,888 Prepayments 646 657 849 510 530 61,090 53,796 52,678 38,982 43,712 Deferred Debits Unamortized debt expense 2,651 2,308 2,477 1,981 2,081 Deferred fuel cost (Note 3) 3,452 3,739 3,737 Other 2,048 1,403 1,999 2,893 1,335 8,151 7,450 8,213 4,874 , 3,416 Total $ 720,763 $ 650,447 $ 593,712 $ 536,689 $ 523,792 CAPITALIZATIONAND LIABILITIES Capitalization (Note 4)

Common Shareholders'quity Common stock $ 181,301 $ 173,586 $ 154,758 $ 148,566 $ 124,045 Retained earnings 67,812 60,502 53,568 52,184 47,069 Total common shareholders'quity 249,113 234,088 208,326 200,750 171,114 Preferred Stock 92,000 89,000 67,000 67,000 67,000 Total shareholders'quity 341,113 323,088 275,326 267,750 238,114 Long Term Debt. 311,395 267,314 267,348 237,382 237,417 652,508 590,402 542,674 505,132 475,531 Nuclear Fuel Contract. 2,145 Current Liabilities Short term debt (Note 5) 18,051 21,500 21,000 18,000 Long term debt due within one year 6,000 Accounts payable 18,153 14,544 11,028 12,909 14,088 Taxes accrued, including income taxes 2,959 6,505 2,428 8,922 4,958 Interest accrued . 6,306 6,100 6,767 4,657 4,993 Payroll accrued . 2,203 2,005 1,909 1,763 1,633 Other 980 1,058 820 840 821 54,652 51,712 43,952 29,091 44,493 Reserves and Deferred Credits Injuries and damages . 497 520 672 720 787 Other 548 748 454 63 68 1,045 1,268 1,126 783 855 Accumulated Deferred Income Taxes (Notes I and 2) 12,558 7,065 5,960 1,683 768 Commitments and Other Matters (Note 6) .

Total $ 720,763 $ 650,447 $ 593,712 $ 536,689 $ 523,792 15

JKW ROCHESTER GAS AND ELECTRIC CORPORATION Statement of Changes in Financial Position nI, Working capital was provided by: Year Ended December 31 1976 1 975 1974 1973 1972 Net income . $ 33,089 $ 26,371 $ 20,543 $ 24,306 $ 19,951 Non-working capital items:

Depreciation of utility plant ........ 18,621 17,414 16,491 15,145 14,565 Amortization of nuclear fuel 6,125 7,591 2,584 6,829 5,322 Deferred fuel cost . 287 (2) (3,737)

Deferred income taxes 5,493 1,105 4,277, 915 (4)

Allowance for funds used during construction . (7,531) (3,574) (1,741) (447) (456)

Other (net) . 274 599 514 (265) 352 Total from operations 56,358 49,504 38,931 46,483 39,730 Financing Proceeds of short term debt (net) 500 21,000 Sale of first mortgage bonds 50,000 30,000 Sale of common stock 2,626 17,258 494 19,726 15,095 Sale of preferred stock 3,000 22,000 55,626 39,758 51,494 19,726 15,095 Total $ 111,984 $ 89,262 $ 90,425 $ 66,209 $ 54,825 Working capital was used for:

Utility plant Plant additions less allowance for funds used during construction ... $ 67,162 $ 71,733 $ 50,931 $ 34,181 $ 25,618 Nuclear fuel . 13,829 6,415 5,240 3,195 6,876 80,991 78,148 56,171 37,376 32,494 Preferred stock dividends 6,245 4,054 3,550 3,550 3,550 Common stock dividends 14,312 12,258 11,614 9,922 8,751 Payment of short term debt (net) 3 449 18,000 3,500 Reduction of long term debt ..................................... 6,000 Nuclear fuel contract due in one year. 2,145 3,542 Capital stock expense....... 133 1,555 75 925 284 Other (net) (51) (611) (820) 1,619 931 Increase (decrease) in working capital (exclusive of short term debt)... 905 (6,142) 19,835 (7,328) 1,773 Total $ 111,984 $ 89,262 $ 90,425 $ 66,209 $ 54,825 Changes in working capital accounted for by:

Increase (decrease) in current assets Cash $ (818) $ (211) $ 2,024 $ (8,217) $ 1,188 Accounts receivable . 9,589 (1,137) 3,115 2,596 6,644 Materials and supplies Fossil fuel (1,456) 3,381 5,120 218 (186)

Construction and other supplies (10) (723) 3,098 693 (754)

Prepayments (11) (192) 339 (20) (80) 7,294 1,118 13,696 (4,730) 6,812 Increase (decrease) in current liabilities other than short term debt Long term debt due within one year . 6,000 Accounts payable 3,609 3,516 (1,881) (1,179) 3,907 Taxes (3,546) 4,077 (6,494) 3,964 712 Accrued interest and payroll 404 (571) 2,256 (206) 422 Other (net) (78) 238 (20) 19 (2) 6,389 7,260 (6,139) 2,598 5,039 Changes in working capital, as above $ 905 $ (6,142) $ 19,835 $ (7,328) $ 1,773 16

PKM ROCHESTER GAS AND ELECTRIC CORPORATION Statemerit of Retained Earnings Irh-~~3.I~I.~I Year Ended December 31 1976 1975 1974 1973 1972

$ 60,502 $ 53,568 $ 52,184 $ 47,069 $ 44,624 Balance at beginning of period Adjustment to record subsidiary at equity 949 60,502 53,568 53,133 47,069 44,624 Balance at beginning of period as adjusted 33,089 26,371 20,543 24,306 19,951 Net income 93,591 79,939 73,676 71,375 64,575 Dividends on capital stock:

Cumulative preferred stock, at required annual rates (Note 4) 6,245 4,054 3,550 3,550 3,550 Common stock:

Cash (Note 1) 14,312 12,258 11,614 9,922 8,751 Stock (Note 4) 5,222 3,125 4 944 5,719 5,205 25,779 19,437 20,108 19,191 17,506 Balance at end of period $ 67,812 $ 60,502 $ 53,568 $ 52,184 $ 47,069 Notes to Financial Statements Note 1. Summary of Accounting Policies The rate changes, together with the impact of the large increase in construction work in progress during the years 1974-1976, General. The Company is subject to regulation by the Public account for the variance in the amount of the allowance. Based on Service Commission of the State of New York (PSC) with respect to an average of the Company's capitalization and upon the costs of its rates for service and the maintenance of its accounting records. short-term and long-term debt (without adjustment for income The Company's accounting policies conform to generally taxes) and preferred stock in the respective periods, the portion of accepted accounting principles as applied to New York State AFDC attributable to funds provided by common stock equity for public utilities giving effect to the rate making and accounting the years 1972 through 1976 was equivalent to 1.4%, 1.1%,

practices and policies of the PSC. A description of the Company's 5.99o, 9.1% and 14.3% of Earnings Applicable to Common Stock.

principal accounting policies follows.

Rates and Revenue. Revenue is recorded on the basis of meters Utility Plant and Depreciation. The cost of additions to utility read during the calendar year.

plant and replacement of retirement units of property is capitalized. Cost includes labor, material, and similar items as Tariffs for electric and steam service include fuel cost adjustment well as indirect charges for engineering, supervision, etc. The clauses which serve to adjust electric and steam rates from time to Company capitalizes an allowance for funds used during time to reflect changes in the average costs of fuels used in electric construction approximately equivalent to the cost of capital and steam generation from the average cost of such fuels during devoted to plant under construction. Replacement of minor items the base period. Tariffs for gas service contain a comparable of property is included in maintenance expenses. Costs of clause to adjust gas rates for changes in the price of purchased depreciable units of plant retired are eliminated from utility plant natural gas.

accounts, and such costs, plus removal expenses, less salvage, are Federal Income Tax. For income tax purposes, depreciation is charged to accumulated depreciation and amortization. computed using the most liberal methods permitted. In addition, Depreciation in the financial statements is provided on a certain costs capitalized for financial reporting purposes are straight-line basis at rates based on the estimated useful lives of deducted currently for income tax purposes. The resulting tax property, which have resulted in provisions as follows: reductions are offset by provisions for deferred income taxes only 1972 2.7%, 1973-1975 2.89o, and 1976 2.9% per annum, of to the extent ordered or permitted by regulatory authorities.

average depreciable property. The Tax Reduction Act of 1975 has temporarily increased the Amortization of nuclear fuel assemblies is charged to operating investment tax credit rate from 4% to 10% for 1975 and 1976. The expense each month based upon the thermal output of the reactor prior rate of 4% is applied to reduce current tax provisions.

and the total book cost of the fuel load. However, as recommended by the PSC, normalized tax accounting is follbwed in the application of the temporary Allowance for Funds Used During Construction. The Uniform 6% increase.

System of Accounts of the PSC defines Allowance for Funds Used During Construction (AFDC) as the net cost of borrowed funds for Pension Plan. The Company's retirement plan is noncontributory construction purposes and a reasonable rate upon the Company's and covers all regular employees. Retirement plan benefits are other funds when so used. The rates for such purpose were: provided for by payments made to an insurance company and to January 1, 1972 to August 31, 1973, 73/2%; September 1, 1973 to trust funds with banks. Current service costs are funded annually.

May 31, 1974, 8%; June 1, 1974 to June 30, 1975, 10%; July 1, The period over which prior costs are being amortized was 1975 to April 30, 1976, 83/~%; and effective May 1, 1976, 83/8%. changed in 1976 from 30 years to 40 years.

17

Retirement plan expense for the years 1972 through 1976 was shares outstanding at the time dividends are paid, adjusted for

$ 5.4 million, $ 5.7 million, $ 5.5 million, $ 6.8 million and $ 8.1 stock dividends. Cash dividends per share at the rates declared in million, respectively. The increase in cost in 1976 over 1975 is each period amount to $ 1.20 for 1972, $ 1.22 for 1973, $ 1.24 for primarily due to amendments to the plan and changes in actuarial 1974, $ 1.26 for 1975, and $ 1.28 for 1976.

assumptions. The actuarially computed value of vested benefits at December 31, 1976 exceeds the assets in the plan by Investment in Subsidiary Company. As prescribed by the PSC, the approximately $ 20 million.

Company has recorded its subsidiary, Canadea Power Earnings and Dividends Per Share. Earnings applicable to each Corporation, on an equity basis as of January 1, 1974. Prior share of common stock are based on the weighted average statements have not been restated due to the immaterial years'inancial number of shares outstanding during the respective years, adjusted effect on prior years. The effect of the change on 1974 net income for stock dividends. Cash dividends per share are based on the and earnings per share is not significant.

NOte 2. Federal InCOme TaX PrOViSiOn ttteu54ndsof Oouan)

The following is a reconciliation for the years 1972 through 1976 of the difference between the amount of Federal income tax expense reported in the Statement of Income and the amount computed by multiplying the income before tax by the statutory tax rate.

1976 1975 1974 1973 1972 4/4 of 4/4 of 4/4 of 4/4 of 4/4 of Pretax Pretax Pretax Pre!ax Pretax Amount Income Amount Income Amount Income Amount tncome Amount tncome Net income . $ 33,089 $ 26,371 $ 20,543 $ 24,306 $ 19,951 Federal income tax Current. (291) 4,162 (3,126) 6,724 1,664 Deferred . 5,656 1,133 4,277 915 (4)

Charged to operating expense ............. 5,365 5,295 1,151 7,639 1,660 Amort. of deferred investment tax credit ...... (163) (28)

Other (1,271) (829) (792) (418) 21 Included in Other tncome .................. ( l,434) (857) (792) (418) 21 Tax effect on calendar year 1972 of recording 4 additional days revenue and expense ..... 651 Actual Federal income tax expense ............ 3,931 4,438 359 7,221 2 332 Income before Federal income tax ............. $ 37,020 $ 30,809 $ 20,902 $ 31,527 $ 22,283 Computed tax expense . $ 17,770 48.0 $ 14,788 48.0 $ 10,032 48.0 $ 15,133 48.0 $ 10,696 48.0 Increases (reductions) in tax resulting from:

Excess of tax depreciation less amount deferred (3,996) (10.8) (4,043) (13.1) (4,496) (21.5) (4,430) (14.1) (4,961) (22.3)

Expenses capitalized for financial statements including interest, payroll and use tax, etc... (5,120) (13.8) (3,032) (9.9) (2,121) (10.2) (1,374) (4.4) (1,218) (5.5)

Investment tax credit . (2,257) (6.1) (1,228) (4.0) (1,320) (6.3) (890) (2.8) (1,650) (7.4)

Property taxes on basis of date of taxable status (1,159) (3.1) (955) (3.1) (1,152) (5.5) (527) (1.7) (384) (1.7)

Cost of removal, less net amount deferred..... (603) (1.7) (437) (1.4) (312) (1.5) (204) (.6) (101) (.4)

Miscellaneous items, net.................... (704) (1.9) (655) (2.1) (272) (1.3) (487) (1.5) (50) (.2)

Actual Federal income tax expense ............ $ 3,931 10.6 $ 4,438 14.4 $ 359 1.7 $ 7,221 22.9 $ 2,332 10.5 A summary of the deferred amounts charged or (credited) to income is as follows:

1976 1975 1974 1973 1972 Investment tax credit $ 3,423 $ 822 $ (700)

Class life depreciation . 1,082 850 $ 640 $ 600 295 Fuel costs (138) 1 1,794 Other..................

Nuclear fuel 289 837 (755) 157 1,615 228 315 401

$ 5,493 5 1,705 $ 4,277 $ 915 $ (4) 18

Note 3. Changes in Method of Accounting The Company's Certificate of Incorporation was amended on May The Company's tariffs for electric and steam sewices include a fuel 30, 1975 to authorize 5,000,000 shares of preference stock, par cost adjustment clause under which electric and steam rates are value $ 1 per share. None of the preference stock has been issued.

adjusted to reflect changes in the average costs of fuels. There is a At December 31, 1976 there were 380,460 shares of common lag from the time the average cost of fuel is determined to the stock reserved and unissued under the Automatic Dividend application of the fuel cost adjustment rates to customer bills. In Reinvestment Plan. No other shares of common, preferred or 1974, the Company began to defer a portion of the increased costs preference stock are resewed for officers and employees or for to the month in which the resultant revenues were recorded in options, warrants, conversions, and other rights.

order to achieve a better matching of fuel costs and fuel cost adjustment revenues. As a result of this accounting change, fuel Preferred Stock (cumulative) Par value $ 100; 2,000,000 shares costs included in operating expenses reported for 1974 were authorized: trhouka ndk)

Shares Dec. 31, Dec. 31, Dec. 31, Redemption decreased by $ 3.7 million and net income for the year, after  % Series Outstanding 1976 1975 1974-1972 (per share) (a) appropriate tax accruals, was increased by $ 1.9 million (19 cents 4 F .....120,000 $ 12,000 $ 12,000 $ 12,000 105 At any time per share). The cumulative effect of the change on retained 4.10 H ..... 80,000 8,000 8,000 8,000 101 At any time earnings at the beginning of 1974 would have been immaterial. 4a/a I ..... 60,000 6,000 6,000 6,000 101 At any time 4.10 J ..... 50,000 5,000 5,000 5,000 102.50 At any time During 1972 the Company converted from a fiscal month basis to 4.95 K ..... 60,000 6,000 6,000 6,000 102 At any time a calendar month basis for purposes of closing revenue and major 4.55 M .....100,000 10,000 10,000 10,000 102 Before 3/1/80 N .....200,000 20,000 20,000 20,000 108 Before 6/1/79 expenses on the same date in order to more nearly match revenue 7.50 with expense. The effect of this change on net income for 1972 is 11 0 .....2S0,000 25,000 22,000 111 Before 10/1/85 12 cents a share of common stock. Of this amount $ 0.7 million or 920,000 $ 92,000 $ 89,000 $ 67,000 nine cents a share is the cumulative nonrecurring effect on net income to January 1, 1972 and is shown as a separate item in the (a) Redeemable at the option of the Company on 30 notice, plus accrued dividends in all cases.

days'inimum Statement of Income. The remaining three cents a share is included in income from operations. Pro forma amounts of net Long Term Debt income and earnings per share which would reflect the effect of a (thoukandk)

Principal Amount retroactive application of the change are not presented due to the First Mortgage Bonds December 31, December 31, December 31, immaterial effect on prior periods. Series Due 1976 1975.1974 1973-1972 4k/a D Sept. 1, 1977 ... .....$ 6,000 $ 6,000 $ 6,000 Note 4. Capitalization 3 L Mar. 1, 1979 ... 16,677 16,677 16,677 2)a M Aug. 15, 1980 .. 12,000 12,000 12,000 Capital Stock 3)6 N June 1, 1982.... 6,000 6,000 6,000 Common Stock Par value $ 5; 15,000,000 shares auth onzed: 3a/a 0 Mar. 1, 1985 ... 10,000 10,000 10,000 rrhoukandk) 4~/a R July 1, 1987 .... 15,000 15,000 15,000 Per Share Shares Amount 5 S Oct. 15, 1989 .. 12,000 12,000 12,000 Outstanding, December 31, 1971 6,939,909 $ 104,029 4k/a T Nov. 15, 1991 .. 15,000 15,000 15,000 3% Stock Dividend ............ $ 25.00 208,198 5,205 4% U Sept. 15, 1994 .. 16,000 16,000 16,000 Sale of Stock ................. 19.00 767,061 14,582 5.3 V May 1, 1996.... 18,000 18,000 18,000 Employee Purchases ........... 19.00 27,008 513 6k/a W Sept. 15, 1997 .. 20,000 20,000 20,000 Capital Stock Expense.......... (284) 6.7 X July 1, 1998 .... 30,000 30,000 30,000 Outstanding, December 31, 1972 . 7,942,176 124,045 8 Y Aug. 15, 1999 .. 30,000 30,000 30,000 3% Stock Dividend ............ 24.00 238,294 5,719 9ya Z SePt. 1, 2000 ... 30,000 30,000 30,000 Sale of Stock ................. 20.25 950,000 19,238 10k/a AA Aug. 1, 1983 30,000 30,000 Employee Purchases ........... 19.00 25,719 489 9k/a BB June 15, 2006 .. 50,000 Capital Stock Expense.......... (925) 316,677 266,677 236,677 Outstanding, December 31, 1973 . 9,156,189 148,566 D due in 1977 6,000 Less: Series 3% Stock Dividend ............ 18.00 274,690 4,944

$ 310,677 $ 266,677 $ 236,677 Employee Purchases ........... 19.00 5,212 99 Total Long Term Debt Automatic Dividend Reinvestment Plan........... 11.88 33,299 395 Bond premium and discount applicable to the years 1972 through Other Paid-In Capital .......... 829 1976 is $ 739,864, $ 705,382, $ 671,000, $ 636,417, and $ 717,313, Capital Stock Expense.......... (75) respectively.

Outstanding, December 31, 1974 . 9,469,390 154,758 Sinking and improvement fund requirements aggregate $ 333,540 3% Stock Dividend ............ 11.00 284,082 3,125 Sale of Stock ................. 15.375 1,000,000 15,375 per annum. Such requirements were met in each of the last five Automatic Dividend 13.75- years b)y certification of additional property and it is anticipated Reinvestment Plan........... 15.88 126,457 1,883 that the 1977 requirements will be met in the same manner.

Capital Stock Expense.......... (1,555) 10,879,929 173,586 No amounts are held in sinking funds of issuer and no amounts Outstanding, December 31, 1975 .

3% Stock Dividend............ 16.00 326,398 5,222 are pledged by issuer or held by affiliates.

Automatic Dividend 15.94-Note 5. Short Term Debt Reinvestment Plan........... 17.19 159,784 2,626 Capital Stock Expense.......... (133) Under informal agreements with certain banks, the Company is Outstanding, December 31, 1976 . 11,366,111 $ 181,301 expected to maintain an average compensating balance of 10 percent of the lines of credit plus an additional 10 percent of the 19

principal amount of each borrowing. Under the agreements, The Company believes that additional expenditures and costs withdrawal of the compensating balances is not legally restricted, made necessary by environmental regulations will be I'ully and at December 31, 1976 the balances amounted to $ 4.7 allowable for rate-making purposes.

million. Bank lines of credit aggregated $ 64 million and borrowings are at current floating prime interest rates. The Note 7. Interim Financial Information (Unaudited)

Company also issues commercial paper at various discount rates, In the opinion of the Company, the following quarterly usually maturing within 30-45 days. information includes all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results Balances and interest rates of short term debt as of December 31 of operations for such periods. The variations in operations for the years indicated were as follows: reported on a quarterly basis are a result of the seasonal nature of the Company's business. Quarter Ended (ihousands) 1976 1975 htar. 31, June 30, Sept. 30, Dec. 31, Percent Amount Percent Amount 1976 1976 1976 1976 Outstanding short term (ihousands) (thousands) Operating revenues .... $ 85,198 $ 76,199 $ 58,316 $ 88,514 debt and average Operating income ..... 12,999 11,294 8,863 11,951 interest rate at end Net income ........... 9,997 8,370 5,765 8,957 of period: Earnings on common Notes Payable ....... 6.25 $ 8,000 7.25 $ 21,500 stock ............... 8,477 6,795 4,190 7,382 Commercial Paper ... 4.76 10,051 Earnings per common share (ln dollars)..... .75 .60 .37 .65 Maximum short term debt outstanding Note 8. Replacement Cost Information during the period: The impact of the rate of inflation experienced in recent years has Notes Payable ....... $ 31,500 $ 38,500 resulted in replacement costs of productive capacity greater than Commercial Paper ... 10,051 the historical costs of such assets reported in the Company's Weighted average short financial statements. In compliance with reporting requirements, term debt and interest estimated replacement cost information is disclosed in the rates during the period:

Company's annual report to the Securities and Exchange Notes Payable ....... 6.76 $ 14,385 8.02 $ 21,308 Commission on Form 10-K.

Commercial Paper ... 4.99 2,267 The above averages were based upon the end-of-month balances and prime interest rates in effect for the periods during which short Report of tndependent Accountants term borrowings were outstanding and before giving effect to the To the Shareholders and Board of Directors of Rochester Gas and additional interest cost resulting from compensating balances.

Electric Corporation Note 6. Commitments and Other Matters We have examined the balance sheets of Rochester Gas and Company's Capital Expenditures Program. The Company's capital Electric Corporation at December 31, 1972-1976, and the related expenditures program involves an estimated expenditure of $ 106 statements of income, retained earnings and of changes in million, not including allowance for funds used during financial position for the years then ended. Our examinations construction, in 1977 and the Company has entered into certain were made in accordance with generally accepted auditing commitments for purchase of materials and equipment in standards and accordingly included such tests of the accounting connection with such program. records and such other auditing procedures as we considered Operations of the Company's generating stations are subject to necessary in the circumstances.

various Federal, state and local environmental standards. Effective January 1974, the Company, in conformance with The Environmental Protection Agency (EPA) has issued National accounting policy prescribed by the Public Service Commission of Pollutant Discharge Elimination System Water Permits for all the the State of New York, changed its method of accounting for fuel Company's major generating facilities. A number of conditions costs recoverable from customers under the fuel adjustment relating to thermal and chemical discharge limitations have been clauses in the Company's tariffs. In 1972, the Company changed contested by the Company. Recent negotiations with EPA have from a fiscal month basis to a calendar month basis for purposes of resulted in a level of agreement on these matters. recording revenue and major expenses. The changes and their effect are described in Note 3 to the financial statements.

The Company is actively pursuing resolution of the thermal issues In our opinion, the accompanying financial statements examined by the preparation and submission of demonstrations which are expected to justify alternative effluent limitations. Approval of by us present fairly the financial position of Rochester Gas and such limitations is expected to resolve the outstanding thermal Electric Corporation at December 31, 1972-1976, the results of its issues. If they are not approved, the Company could be burdened operations and the changes in financial position for the years then with capital expenditures estimated at $ 45 million plus significant ended, in conformity with generally accepted accounting operating and maintenance expenses. principles consistently applied, except for the changes, with which we concur, referred to in the preceding paragraph.

With regard to chemical issues, the Company has proposed construction programs to achieve "best practicable technology" at the earliest reasonable date. These facility modifications will require capital expenditures of some $ 10.5 million over the next 1900 Lincoln First Tower three years. Rochester, New York 14604 January 21, 1977 20

PM: ROCHESTER CAS AND ELECTRIC CORPORATION Electric Department 1976 1975 1974 1973 1972 Electric Revenue (000's)

Residential . $ 61,498 $ 53,904 $ 45,354 $ 42,125 $ 37,358 Commercial . 50,791 43,884 37,908 34,387 29,948 Industrial 39,402 33,244 30,858 27,597 24,096 Other . 18,867 15,597 13,440 12,403 11,307 Electric revenue from our customers 170,558 146,629 127,560 116,512 102,709 Other electric utilities 18,259 25,496 14,697 21,112 14,063 Total electric revenue 188,817 172,125 142,257 137,624 116,772 Electric Expense (000's)

Fuel used in electric generation . 34,247 33,442 25,739 19,461 17,293 Purchased electricity 18,195 12,212 12,070 8,841 8,049 Other operation 40,930 35,662 32,177 28,378 25,812 Maintenance 14,796 14,282 12,390 11,029 10,468 Depreciation . 13,865 12/731 11,977 11,026 10,669 Taxes local, state and other 28,543 25,369 22,784 21,281 19,554 Electric revenue deductions 150,576 133,698 117,137 100,016 91,845 Operating Income before Federal Income Tax .. 38,241 38,427 25,120 37,608 24,927 Federal income tax. 3,102 5,069 (433) 7,235 23 Operating Income from Electric Operations (000's) . $ 35,139 $ 33,358 $ 25,553 $ 30,373 $ 24,904 Electric Operating Ratio 4/o . 57.3 55.5 57.9 49.2 52.8 Electric Sales KWH (000's)

Residential 1,618,314 1,530,421 1,456,335 1,468,376 1,422,949 Commercial . 1,366,094 1,294,816 1,226,333 1,261,697 1,183,042 Industrial 1,384,235 1,284,940 1,346,116 1,424,639 1,324,442 Other . 437,097 411,122 379,379 385,243 361,132 Electric sales to our customers 4,805,740 4,521,299 4,408,163 4,539,955 4,291,565 Other electric utilities 1,187,942 1,864,050 1,182,902 2,269,686 1,691,432 Total electric sales 5,993,682 6,385,349 5,591,065 6,809,641 5,982,997 Electric Customers at December 31 Residential 249,177 246,613 244,063 241,032 236,283 Commercial . 23,983 23,874 23,827 23,436 23,147 Industrial 1,371 1,380 1,365 1,360 1,345 Other . 2,271 2,305 2,316 1,995 2,043 Total electric customers 276,802 274,172 271,571 267,823 262,818 Electricity Generated and Purchased KWH (000's)

Fossil 2,060,186 1,731,723 1,961,453 1,869,079 1,984,424 Nuclear . 2,040,746 3,026,894 2,079,539 3,395,564 2,356,182 Hydro . 277,010 265,401 234,568 243,582 305,104 Gilboa Pumped storage . 118,716 98,743 131,311 57,801 Gilboa Less energy for pumping................... (180,317) (148,180) (192,311) (86,362)

Other . 2,797 2,198 12,806 8,776 3,933 Total generated Net 4,319,138 4,976,779 4,227,366 5,488,440 4/649,643 Purchased 2,106,904 1,888,091 1,836,911 1,709,420 1,734,901 Total electric energy 6,426,042 6,864,870 6,064,277 7,197,860 6,384,544 Electric Production Costs (000's)

Fossil generation $ 36,628 $ 32,907 $ 30,130 $ 17,951 $ 16,252 Nuclear generation . 13,480 14,188 8,276 10,365 9,271 Hydro generation 960 1,020 1,073 1,072 850 Other generation (870) 664 (1,006) 123 65 Electric Department Fuel Fossil Total BTU (million) 21,822,976 18,388,874 20,911,993 20,331,338 21,315,214 Cents per million BTU .......... 137.42 142.18 117.05 62.12 56.77 Nuclear Total BTU (million) 23,837,620 33,128,471 22/909,968 36,683,359 25,670,477 Cents per million BTU .......... 25.69 22.91 11.28 18.62 20.23 System Net Capability KW at December 31 Fossil . 452,000 452,000 452,000 457,000 457,000 Nuclear . 470,000 470,000 470,000 420,000 420,000 Hydro 47,000 47,000 47,000 53,100 53,100 Other 29,000 29,000 29,000 42,500 42,500 Purchased 342,000 356,000 347,000 352,000 207,000 Total system net capability 1,340,000 1,354,000 1,345,000 1,324,600 1,179,600 Net Peak Load KW 934,000 925,000 880,000 922,000 855,000 Annual Load Factor Net'/o 63.8 61.7 63.3 61.0 62.5 21

NM ROCHESTER GAS AND ELECTRIC CORPORATION Gas Department Gas Revenue (000's) 1976 1975 1974 1973 1972 Residential $ 4,426 $ 3,964 $ 3,809 3,627 $ 3,754 Residential spaceheating 63,974 52,584 47,758 40,453 41,228 Commercial 16,848 13,593 12,533 10,433 10,527 Industrial . 11,900 9,167 8,583 7,648 7,590 Municipal and other . 3,879 3,170 2,780 2,472 2,766 Total gas revenue 101,027 82,478 75,463 64,633 65,865 Gas Expense (000's)

Purchased natural gas ........ 56,192 42,247 37,342 29,923 31,318 Other operation . 14,921 13,310 11,492 11,420 10,476 Maintenance 4,510 4,500 4,757 4,043 3,677 Depreciation 4,194 4,137 3,978 3,615 3,439 Taxes local, state and other . 9,729 8,715 7,937 7,281 7,036 Gas revenue deductions 89,546 72,909 65,506 56,282 55,946 Operating Income before Federal Income Tax . 11,481 9,569 9,957 8,351 9,919 Federal income tax 2,212 914 1,221 840 1,787 Operating Income from Gas Operations (000's) $ 9,269 $ 8,655 $ 8,736 $ 7,511 $ 8,132 Gas Operating Ratio '/o 74.9 72.8 71.0 70.2 69.0 Gas Sales Therms (000's)

Residential 14,404 14,328 14,903 15,141 16,345 Residential spaceheating. 275,582 249,224 263,290 245,368 267,862 Commercial 86,400 78,217 84,872 79,039 84,759 Industrial . 72,847 65,760 73,926 78,137 80,869 Municipal . 18,598 16,705 16,696 17,148 19,628 Total gas sales 467,831 424,234 453,687 434,833 469,463 Gas Customers at December 31 Residential 40,892 41,437 42,884 45,958 48,086 Residential spaceheating. 153,583 153,848 151,154 144,847 140,065 Commercial 11,475 11,390 11,478 11,303 11,178 Industrial . 757 756 767 762 774 Municipal . 936 957 1,024 865 922 Total gas customers 207,643 208,388 207,307 203,735 201,025 Gas Therms (000's)

Purchased for reforming and mixing. 9,830 23,160 31,518 30,834 39,819 Purchased for resale 478,935 421,252 438,494 422,718 454,723 Other 7,911 7,019 7,063 6,535 8,041 Total gas available 496,676 451,431 477,075 460,087 502,583 Cost of gas per therm 10.92(t 9.50II 7.77II 6.53It 6.17<

Total Daily Capacity Therms at December 31 Mixed gas . 269,000 410,844 410,844 549,244 Straight natural gas 4,164,000 3,895,000 3,871,448 3,762,672 3,696,624 Total daily capacity 4,164,000 4,164,000 4,282,292 4,173,516 4,245,868 Maximum daily sendout Therms 3,497,861 3,041,070 3,192,631 2,985,392 3,211,192 Degree Days (Customer Billing)

For the period 6,909 6I211 6,808 5,883 6,886 Percent (warmer) colder than normal 1.6 (7.2) 1.3 (12.2) 2.3 22

ROCHESTER GAS AND ELECTRIC CORPORATION Steam Department Steam Revenue (000's) 1976 1975 1974 1973 1972 Commercial $ 6,401 $ 5,668 $ 5419 $ 3,668 $ 3,565 Industrial 9,799 9,862 9,396 5,470 4,878 Municipal and other 2,183 1,807 1,506 876 756 Total steam revenue 18,383 17,337 16,321 10,014 9,199 Steam Expense (000's)

Fuel used in steam generation 12,114 12,826 10,954 6,151 4,686 Other operation . 1,826 1,657 687 1,201 1,634 Maintenance . 900 918 819 816 727 Depreciation . 562 546 536 504 457 Taxes local, state and other 2,230 2,073 1,689 1,431 1,295 Steam revenue deductions 17,632 18,020 14,685 10,103 8,799 Operating Income before Federal Income Tax . 751 (683) 1,636 (89) 400 Federal income tax 51 (688) 363 (436) (150)

Operating Income from Steam Operations (000's) $ 700 $ 5 $ 1,273 $ 347 $ 550 Steam Operating Ratio % 80.7 88.8 76.3 81.6 76.6 Steam Sales Lbs. (000's)

Commercial 1,041,415 980,324 1,160,122 1,268,917 1,468,889 Industrial 1,738,391 1,839,402 2,127,837 2,136,794 2,292,755 Municipal 367,553 325,727 334,463 318,323 328,935 Total steam sales 3,147,359 3,145,453 3,622,422 3,724,034 4,090,579 Steam Customers at December 31 Commercial 271 281 292 302 317 Industrial . 77 77 78 78 81 Municipal 32 31 31 30 26 Total steam customers 380 389 401 410 424 Steam Lbs. (000's)

Produced by steam department . 1,408,029 1,387,363 1,532,246 1,442,472 1,818,908 By-product steam from electric department 2,193,283 2,344,693 2,588,120 2,613,321 2,689,115 Total steam produced 3,601,312 3,732,056 4,120,366 4,055,793 4,508,023 Steam Department Fuel Total BTU (million) . 6,022,360 6,230,767 6,807,500 6,849,830 7,138,004 Cents per million BTU 203.35 203.08 196.31 89.80 65.64 23

Directors Keith W.

Amish'xecutive Vice President, Rochester Gas and Elecuic Corporation Paul W.

Briggs'resident, Rochester Cas and Elecuic Corpomuon John D. Cockcroft't Former Chairman of the Board, Keith W. Amish Francis E. Drake, Jr. A. J. McMullen The R. T. French Company Wilmot R. Craig Former Chairman of the Board, lincoln First Banks Inc.

E. Kent Damon Vice President and Secretary, Xerox Corporation Francis E. Drake, of the Board and Chief Execuuve Oflicer, Jr.'hairman Rochester Cas and Electric Corporauon J. Wallace Ely't Chairman of the Board, Security New york State Corporauon Walter A. Fallon Miller Paul W. Briggs L Wallace Ely Paul A.

Chairman of the Board and Chief Executive Officer, Eastman Kodak Company Ernest J. Howe*%

Chairman of the Executive and Finance Committee, Rochester Gas and Elecuic Corporation Daniel G. Kennedy't

Panner, Nixon, Hargrave, Devans tk Doyle A. J. McMullen Chairman of the Executive Committee, Carfock Inc.,

and Director of the parent company, Colt Industries, Inc.

Paul A. Miller President, Rochester Institute of Technology John D. Cockcroft Walter A. Fallon Edward J. Nelson Edward J. Nelson Former President, Rochester Cas and Electric Corporation William S. Vaughn*t Former Chairman ol the Board, Eastman Kodak Company William G. VonBerg President, Chief Executive Officer and Director, )i~

j Sybron Corporation

'Member of the Executive and Finance Committee of the Company tMember of the Audit committee of the Board d oiiectois Wilmot R. Craig Ernest J. Howe William S. Vaughn

~

r

'bt, i<<,yr E. Kent Damon Daniel O. Kennedy William O. vonBerg 24

Officers Francis E. Drake, Jr.

Chairman of the goard and Chief Executive Officer Age 61, Years of Service, 39 Paul W. Briggs President Age 54, Years of Sen ice, 31 Keith W. Amish Executive Vice President Age 53, Years of Service, 29 Granger E. Green Vice President, Elecuic Transmission, Distribution and Utilization Age 64, Years of Service, 41 John L. Kennedy Vice President, Rates and Governmental Affairs Age 58, Years of Service, 36 Robert R. Koprowski Vice President, Engineering and Consvucuon Age 53, Years of Sen ice, 29 John E. Maier Vice President, Employee Relations Age 49, Years of Service, 29 Harry G. Saddock Vice President, Elecvic System Planning and Operation Age 47, Years of Service, 26 Mario Silvestrone Vice President, Consumer Services, Corporate Comm unications and Purchasing Age 53, Years of Service, 26 Elvin A. Skibinski Vice President, Gas and Transportauon Age 63, Years of Service, 30 Leon D. White, Jr.

Vice President, Electric and Steam Production Age 57, Years of Senice, 39 Dean W. Caple Secretary and Treasurer Age 53, Years of Service, 28 francis A. Sullivan, Jr.

Controller Age 53, Years of Service, 26 Robert W. Ball Assistant Treasurer Age 60, Years of Service, 38 David C. Heiligman Assistant Secretary Age 36, Years of Service, 13 Robert C. Henderson Assistant Convoller Age 36, Years of Senice, 13 Stephen Kowba Assistant Convoller Age 57, Years of Service, 26 John M. Kuebel Auditor Age 4 1, Years of Service, 12

Rm'ochester Cas and Electric Corporation 89 East Avenue Rochester, New York14649

Retrieved from "https://kanterella.com/w/index.php?title=ML18143A779&oldid=2404360"