Text

Annual Financial Rept 1968
	ML19329C930
Person / Time
Site:	Davis Besse
Issue date:	12/31/1968
From:	; CLEVELAND ELECTRIC ILLUMINATING CO.
To:	;
Shared Package
ML19329C911	List: ML19329C910; ML19329C929; ML19329C930; ML19329C933;
References
	NUDOCS 8002200907
	Download: ML19329C930 (29)
	v • d • e

- -

-w

-m 4

A i

na

~

8002200fo) x I

THE CLEVELAND ELECTRIC ILLUMINATING COMPANY ANNUAL REPORT 1968

/ w!

l f

a; ou i g II? ' T l T {\\ I Ib

_[ljJLbOL

' E" EEE L. E" E=EEE

+. 3 lilli l

c.

-h nw 9

da. _,

193!,

1T

,,.g l

~r 1

I W

. 'r

~:c

.,. ~...,,.

~

f;

,e r,.

. j;.

?

r.

i ',4.

j

/'

ll '

j

/

~

~~

ASHTABULA k

SENECA EASTLAKE g INTERCONNECTION WITH PENNSYLVANIA L

^

AVON LAKE LAKESHOR (A) i ij i INTERCONNECTION WITH OHIO POWER k

PROPOSED FIVE COMPANY

^

345 KV TRANSMISSION LINES THE ILLUMINATING CO. TRANSMISSION LINES 345 KV OVERHEAD LINES 132 KV OVERHEAD UNES 132 KV UNDERGROUNO UNES i

l 66 KV UNDERGROUND LINES FIVE-COMPANY GENERATING UNITS PLANNED OTHER TRANSMISSION LINES OR UNDER CONSTRUCTION BY TYPE I

PENNSYLVANIA ELECTRIC COMPANY OWNED HHH f

M COAL FIRED EASTLAKE *S-625-MW UNIT l

(OWNERSHIR CEI 68 8%; DUQUESNE 31.2%) -

SAMMIS #7-625-MW UNIT j NUCLEAR OAVLS-BESSE-872-MW UNIT (OWNERSHIP: CEI 47.5%; TOLEDO $2.5%)

BEAVER VALLEY-840-MW UNIT a

THE ILLUMINATING COMPANY GENERATING UNITS J CURRENTLY UNDER CONSTRUCTION L 't 4

(A) AVON LAKE #9-625-MW-COAL FIRED -

' ~ (B) SENECA-380-MWAPUMPEO STORAGE.

(OWNERSHIP: CEI 80%; PENELEC 20%) *

. =.

,~.A r E'- J' e l

~

s t

_b

.p

,es 6

~

M - ' #

' ' N a

eA_

4_ w

..msmes...

w

.s.4r-.

+ *' =*

,g..

. ~. _ - -.

w 4

-.a

.r-y..

j

." i f ~

l

~,

]

?..,

w r

s.

s,..

p.

r.

.g i

p.

9

'i J }.

p

. i.

.(

..f.,g; 4.

M

-e

=,

3

.'p

-(

y L..

A,

.a l

[,,

,,., i a

_S

..y r

~

-*[

s

/ - t

+

7

? =

++t

j. r

..?

-, ' '. <. V 3

[

. -y.4 g*

s i., <,. '

f 9

~

< - ).

i y

,,,y g,+-

,1-*

.u:., -

- ks.

r-

'v y

,9 j +

.f ~

'c l

a

.e,--

+

.4 g

's

.,a p

l l A -

,,I t

.l f,

j.r.,'i.

l mp g

-.g

-/

l g.,

w,

~ +,

-. '-. N 7

4..#

-[ ',.[4..

f,

[

+

. _... j v

.. +:

a l

9~

n

~ - ','

4-

'F - ',

c t

.e r.

y,,i m,%,-

4

..j 3

.a A

,9,..

n J...,

%, [,

.g*

A,s#-

?

+ --. '. ' * -

J.-

,. ;- 3 *-

.j 1..

t

+

- g E

t

.=,

4 t

-'l

+., ?,+

. x':.!

s

.i..

.g

. (:

~

}

-, - -' A

>n

, ~ +

a n,- f

- a a,

('

,[ [ [ '

?

y .,

4*

': i+' "

l-m [_9, -

i n,

?

p

....v..

>; 8;,..+oq-p.

+

am y..,_

%.3 _c s..

p.,'k

-' N-

, 7.

J N

I

, 7 [. h.

,]'

s.

' l

/ [.

c[t -

a

+

u_

.y u

4 j.

C_>s

c. et.. ~,,

+..

- p

.nt-3 -

by a

.A,. +

- ex

'?'A*

-~j

(.

r.

A

.a

,T.m

' ' f. 4., #',,,...,

W-Ah.

y M

+

c t y

Q '.

s, 3,, g

[ --

4 _. *,

10'

{.

, j',-.

q.

y

','.; p,:, y,

fu

,.i.

s

-,s.

p..'

C..3 ; k? - -.5 g l*y. ;) '*

~ [ j., ~,, 1p

.. ~., y y,

9 e

s'. 4 ' '.

v :

~

a c

E.

l

-.g

_ -Q

' x

+

h

"i*e

(

-7 s

^

n :h,, R. : 2, -

7

'." < ?

.']

,N

'd -,,. '

p., (.

Q.g ' ? '

t L

K, :#

. '%p-

.,k y

y..s, v

x

[

t * *;.,,,,

p

?

",' 5 '",

e-wi., v r

r

.1,

,,;., e

(,.

A_

t.

4 "'y

$1y * '

E N

l

..'3

' '.

N ~~

Y.... *

q. s;....a

'?

'. -h l '*

g p

F

. Q

-., g'; ' ;;

+>

/

' 8 y

~ ',

y

. ';+

e y,,.

,.,4 0.-

+

\\._, s

. g'

, ^

=

5-7, S,. yj,.e,r t

w.

p

.4

,c

,e

i, - -. -.,

2 s.

v

'e

,s.

N

. ;( *

~

( c.

.,,,,:p. W.,.= ;&n a

g

+

3 e.

,. 4 g y

7m

,p f *.

. 4,......

. +=*., +

k..'c

.c

-,m,.

1

.*, g,;,,,. -

.y y,

_. h.-

j, j

g

(

.g c-g 7

(,,

.. 3 -a. -

9 a 4.,.

g[.

i,,, e t

n '

g y ; <. g,.,

s.

,i' -, '.',, _'

,Y

5._,'

n%

't,.

g

(: $

(.

-. h.

.k...s Y

, L

+

J. ',

',e

,p',.,

^' '. -

, y

?

[* - -

=,.f ' V h.--

_ ', b.. _ '

~f

'N _ ' ^ ^

h.

t i

i,....

i s.

,,s

~

f,, '

r,,,.,M o

,.*jn* - '

s_

s 4'

4 y

y

...j-

c.,.,. s

,-'- e

,s

- :. f.- "~.,,.

a

,. - A.

- g

{

+ -

4 s ' Wu,, '.

?

w e.;

% A,. &'

s fg.,

g g_.)

' ' {

y y

7,

.5.-

.,..,, T

(

s..

4 g

s V

3,.

g.

+

$a 4

4 qg

.. r

,]

,S i

-..., +

4,.

.g y:..

w-4

,, -. ~ _ g a

3 1

"'s

,w sk

, b h

4 S

a.-

=

+g

,g t ',Q.,

i.,

4-A

?

+

r

+

v s

f4 y

+

g g

k+

3 8

T' M

['.

'.. j 7

,+ " -

a.e z

t

,b d

."+w.

4 t

1f 7

3

?

,['

A s

+-..

3 4

f' g

-'- g',

g Ai i

4

_p

, +

g.

' n 8

+

'j s

y

..p o

-.. 4

'g',

.s t Y

'w h-

., A

?

g

^

t,

%. s

+,,

se

.4

f. -

1.:

St'i'\\ ln G Ih t' B e y ! l_ n 3 (; t :0

'be \\dl:On

.g, -.; _,.

,g. q 4 ;

g.

3.,.

-f(

.' :e, k -

e sV,'-

3,;p.- p,.J-l' Q ?

5,.,.

./

r.

,?

s. -.

D AVIS-B ESSE

..... ' i j ( d e'.,J

... 'p ?p :[1 ', '. OE ' gy?- ['.

Y"

.i,,, 4... z. :

ix

. -0949,,.

NU CLEAR r 4'..cf, n..- ;

, s-gc x

s..

. J f., 4~

POWER STATIO'

,y.( a '.:- ' ' '

.Ev S

. 'I-l

..... ?.

r en

+,,

. - _....,. ~

.y

., ; - -..fr.

-Y.

. L

c,-

, ;g.,

. -.,. _., g, ;

'- P. ".y :. %; 2

+

s'

?,.:

r,

(*L', ;{. -..

..F,,q'* ;,,I 7- %.an.,,

x.

.m;

..- V d4_.3*p

.c M. g.

.n

,(

s 2:,-

s

< ps L..-(.:

g $

+*

4-

. r.>

I.'

y

(,

k. *q J h ; by,t' g.g G.-6.k,p.

' ^ U. ;..

- *i

' *, g, s...

l

[

I*'

.t k

('

g. ' A

- l.

t g :-

g n.-

r,,,

=.--

.z. _g f. s g.,, ~.Q r, A 5

p--

- W. 4.,

1

'L-

..... e,' e.9

.f.

,=,-

A..i.,,

,(.

w,.

.v II

- - e g

1 g

y

,.. - j yf, *'

',f I ',.,*. -

,,. ; g 8'

P '*, g-

. n -....

3

- %, s..s

.~

. ~,.,.. 3,, x -

.?

. s.

N..,..

%, s' vr k. u

[ '

J.

k A A '# Et ( hi N 9'*

m -

e, gk'...>,

r-

- n.

.~.

s p,..,

3 +

,,e

, < r.-

_g,,,

%, a.)

,.) ', " % J.? '. ' A? A. ' '.;. ' $.... t

.y

. E ' * ;;

a,e i -

w

,.s.

,-;7 -

~

.x c.

- n.,,.,....

.-. u c.,4 9. -., '

y a,..g s s.

8,,

+

.p.g

w,

. ' -r,

" d.' y.,f --

9[ m.

a 9

y y

I.

- ; i.,,M-.M.

.s,

gy..

'^.v'

^j-e x.

m..>

... 'W.:

h l.$

%,x 0 D*h.-

W$

The Illuminating Company's se'

' r 'a N

nea acaog

(

s,-

i i o

5

.3

-3, p

g, r

,w ng s

.,e f

t

'j'se 57 9.

,e'P'i

'h n

c!

1

+

t i

t e

J

1 i

1 3s.

P

,t.^

8 t;

a,3 r

p-

, s s

Ps TFs Five-Comnany Power Pool

., o;.

1 FIVE COMP ANY AGREEVENT

,o g.

w, p

3;e jr AREAS SERVED BY

, s PARTICIP ATING COMP ANIES

,,,,,o

, i lg*

pe' r

\\en,

,g

ysp, spw

\\

m., v.-

{

v75 3 gfs r

'{

'C db d

'PA*dY i

t 1

10 i j

's P

e

-n,,

s.

\\

\\\\

O 's

S M

d I\\

b

. -i,.,,,

g,

3s g

m o%

. f t' T *

'e5 e

g s-7 gp3

- g r, s p2~

)

s p

'I

' {O l

t I

/ <

1( g #s

'lp 7

,{'

1 i

9 t

}-

3 g

b P

t fi g h g y

p p

s

(

v!'

i o

. _st has 4 '%

' D-E

.r.

d

vam.

l l

.........q.--.

e t

9

.g 2.,

Y, r

=

N f.

g le

y n

s y

g

'~

r 9

.'4

-4 4

4

'g

w..

g=-

4 4.

.' e 4

^

'.c.,

j...

+

y s

f g

M.

e-

- e

..,I w

, " i,,,

4 e

n..

.s 4

1,,' ' '

s [4" f- :, *

'J e

a. _3 4

b.

,r,

~....

y

- 4

,4

,'.g 4'

,.g

?

E'

' - ' ' - ' ~

~

.y w

wr.4-g

~

-r 1

. y.

},

g a

?

=

F -

'g er N.

-+.

?,

+.

m',

..,,y

=

y V,

t

~,

'a' e

j

.(

_' -. i

\\

g t'

~,

t.

~

s

+

s

.f '..,

n

. if f

'* F.

f. g.

Q.

q g :

3 t.

h M

e x

,(

e 7

,n

. r'

.,??

t w

- h' "q~

.a

{-

5 q

)

,g; g..

pf,

,..., e

'+.

.n

-c

+-

t, F

M i

k.

3 w-r

.v c.

). 'i y,. d- '-

r 9

y

.y

~,~

N{3-1/.. * *q,'.

,y

~

-7

-. = -

e

~,

.;w e s at N,.

L___

l T.*.

r E-t O. ~

t~

=

e

/

t e

bQ

~

~ '. A

.....,,, gw <,

QT;} c.;,

[

4-4 v s

. o

\\

u g.

.g4-r-

a-4

,_1 s

d.:( s '.) y s

g.,.._-

p g ~nDI

, _-.,- g

e.-

.r.

._e

.~J J

Q b

f'

,g

.m,e so

[.

.M

=

L

-., i.

~,

( a [I

i

- ', w r

j - '

}*..g, m, y e gj w.* +

9 i

y,

~

, 'C 4-h

..,f ' ' ;

.y '

( p J.

l,

, g s

4 $

4 as &.y4

g. -

Q ~--- -

4-

,.^.-

s y.

w e. a.

.O N

+ =

f.

, ' pg

.g b (N -.

'l

.. *.( Y

.m-w..

- h4 n.' %

+

s.

.~s

'*a F

Sep,

e W

h

.1 j..-

e L

k l

f f

n,

'..,y

..y+..-

x_

., +.g

.,s,,

s..

T **

.+

e A.

.4 w

r w..

-gp.

', ^

. f g-

.h

... w..

.- 4

? ?

I g.

(

,, s y'**

x.

6 e

k

+

.E 3

<j' -.

..~

a r

a *.

y

.+%

,R

\\

e

_f.

1

\\

l

.'9' n

S

[

l I

t

' n G

.g

+

r -

6 i

6 d

}

.g g

p.. J ~

.P' I

1 9-t

,N' I,

e f

r "

M '

, j /, 3,. '

(

~

/

y:

4

~

o....... -

.y

u..*2

.s v

.. 3... ?

3

4 l

l l

1 1

0 0

ooE 1

'9 A

w JU

_ S 1 a

The generation of ideas illuminates a creative environment

,ym.,,.,.,, _,3,y,yygg. y,,

B :> T W

)

$. 4&Tf,._.23'

,2;;r W.i g, g'.' '.:c. g :,,y

[, g, M.., '

s

.~- * ~*

g

':%*k r

4

~

A

~< w...

u.'

l w

.a l

, _. '.. L

.p yp^

,*~r%.$?,'

~~

j

\\

g'

.M.=%,

$N,'

i

/ 'k'\\ %.

Tl i

s - s I

l 4

New construction rises from the campus of Cuyahoga Community College

-part of a $238-million educationa! complex in downtown Cleveland.

e r

l l

4 l

1

" Cleveland-Northeast Ohio -with its key geographical location, its rich resources of people, and the increasing vitality of its business and industrial life-is one of the great creative environments in America.

Ideas have always grown here.

The adventurous intellect, now as never befoe,# flourishes here.

To serve this dynamic region through creative management and technology, is the pride and challenge of The Cleveland Electric Illuminating Company."

Ralph M. Besse l

A N N UA R PO R~~ ' 968

WWynMMWWP}\\

Inside Front Cover M3 4 C -2. e

.sv$"t.4,.,< -

" Night Skyline: Downtown Cleveland" w

U

";~ }.

8 y". c y

_,.g.X

,..- - - -,,,5 Highlights of 1968

.s

.... L h'g 4

'W i

, gh. ?

~

a Earnings for Common Stock were $2.73 a share, d

compared with $2.66 in 1967.

[gd)'N d

Yf d

= The quarterly dividend payment on Common y

Q 9

}.

Stock was increased on February 15,1969 to 51 cents per share. The present annual rate is $2.04.

Aghhpyi 4) m Operating revenues rose $14.8 million to a record

. skif~

$203.8 million.

= Operating expenses increased $14.4 million to

^

$163.1 million, primarily as a result of higher fuel and purchased power costs, property

axes and federal income taxes.

= The gain in average residential use of 326 kilowatt-hours compares with the 215 kilowatthour gain in 1967.

m A construction program was announced for the KARL H. RUDOLPH, RALPH M. BESSE, O #""'"

five-year period,1969-1973, calling for expenditures i

of $397 million.

= The $60 million of First Mortgage Bonds sold in January,1969 represent the first stage in new financing to meet the requirements of the i

i fise-year construction program, o The affiliation studies involving the Company and seven neighboring utilities are continuing.

i l

l Reference Guide Page The Annual Meeting of the Share Owners Highlights of 1968 2

of the Company will be held on Apnl 22.1969. Owners of Common Stock Letter to the Share Owners 3

as of March 10.1969, the record date for Review of Operations & Markets 4

the determination of soting power at the inter-Company Pooling 8

meeting, will be entitled to vote. The official notice. proxy statement and proxv Construction Program 8

" "* 'S U " #

Financing Program 10 about March 19,1969.

Research and Deselopment 10 WILLIAM R. VOGELSANG. Secretary Director Changes 12 Employee Participation 12 Financial Statements 13 Directors. Of ficers 20

/

2

i To The Share Owners of The Cleveland Electric illuminating Company The ) ear 1968, for The illuminating Company, service area, the Company has under way a $397 was a year of continued growth.

million, five-year construction program. This Earnings and dividends increased. Kilowatthour includes such major projects as the generating sales were at a new high level. A record investment additions to our Eastlake and Avon Lake Power went into new construction for a single year. At Plants, the Seneca pumped-storage hydroelectric the same time, the Company's service area exper.

power plant and the Davis-Besse Nuclear Power ienced some of the most rapid physical and Station to be constructed jointly by the Company social improvements in recent decades.

and Toledo Edison Company.We are also continuing This vitality, reflected.in a new atmosphere or.

and strengthening our operating ties with CAPCO confidence among business and civic leaders, (Central Area Power Coordination Group) and ECAR 4

is symbohzed by" Cleveland Now", a 51.5 billion, (East Central Area Reliability Coordination Group). At 10-year program aimed at revitalizing the entire city, the same time, we are carrying out a planned program the hub of our service area. The program, strongly of facilities modernization throughout our system.

backed by City Council, the new administration of Studies are continuing on the possible affiliation of Mayor Carl Stokes and the business community, has the Company and seven neighboring utilities.

rallied considerable popular support and increased it must be remembered, however, that growth is a cooperative efforts between the business com.

double-edged process. To serve any expanding region munity and city government. Urban renewal efforts and to meet its increasing demands for kilowatthours have been strengthened and communications requires contincing fiscal adjustments. Since mid-renewed with HUD (Housing and Urban Develop.

1966, while the cut of money has been rising, the ment) and other Federal agencies. City financing has Company has beer, experiencing a slow decline in the improved as the result of the localincome tax.

level of its rate of retum. This trend is due in part to the It is evident that local professional and business inHation of operating costs,in part to the increased men are deeply involved in solving the problems of cost of money and in part to substantial increases in the community. They are the support of Cleveland's plant investment. it has persisted despite increased downtown renaissance promoted primarily through sales--in eMect, making the likelihood of a rate the Cleveland Development Foundation and the ncrease application almost certain in the not Greater Cleveland Crowth Association.

too distant future.

Tangible evidence that business and financial The illuminating Company has b,een serving the leaders beliese in the continued prominence of Cleseland-Northeast Ohio area for the past the area is presented by the millions of dollars 88 years. it has helped the region grow and, in so do.ing,it has grown strong itself as a company.

committed for new down town office buildings, new plants and the modernization of existing facilities, Today we are the prime supplier of the region's and new apartments, hotels and motels.

electric power, an important source of its leadership Area education reveals the same surging growth.

and financial support, and literally a partner in its i

Local school systems are expanding their facilities commercial and industrial progress.

to satisfy the needs of the mushrooming younger in the interests of our Share Owners, employees, generation. One example of multi-million dollar customers and the communities we serve, we intend construction programs at area colleges and to maintain and enhance this position.

universities is that of Cuyahoga Community College, This annual report is an account of the Company's w here seven new buildings will be completed in 1969.

service to this region in 1968.

All this is important to The Cleveland Electric Cordially yours, Illuminating Company, for we are the major supplier of electric power to this metropolitan region of Grea ter Cleveland - and on its dynamism and vitality depends our own. As it grows, we grow; Ralph M. Besse, Chairman thererore, we give maximum effort to promoting its present development and future progress.

/

To keep pace with this dynamic expansion in its p p/

u1 M

~

february 7,1969 Karl H. Rudolph, President 3

l

..+

Sales and Revenue Growth Reflected the expensing of property taxes in addition to The High Level of Business in The Territory reducing the annual depreciation rate from 3.25%

Earnings per share of common stock were $2.78 as to 3.15%. These three accounting changes increased compared with $2.66 in 1967. Quarterly dividend the Company's net income for the year 1968 by

$3.1 million or 23 cents per share.

payments were increased to 48 cents from 45 cents effective May 15, bringing payments for the year up Provision for Federal, State and local taxes amounted to $1.89 as compared with the $1.74 paid in 1967.

to $52.7 million. Of this total, the 10% Federal This marked the 10th consecutive year of increased income tax surcharge retroactive to January 1,1968 dividends and the 67th year of uninterrupted reduced earnings by $2.7 million or 20 cents per share.

payment of cash dividends.

Output and Demand Reached New Highs Kilowatthour sales to customers increased 9.8%

over 1967, resulting in an electric operating res enue Kilowatthour output to the service area was 13.30 billion kilowatthours, an increase of 10.2% over gain of $14.9 million, up 8.1% over the previous year. Operating revenues including steam service output for 1967.

reached a new high of $203.8 million.

The maximum service area load of 2,266,000 kilowatts registered on August 23, was an all-time Kilowatthour sales to all classes of customers were above those of 1967. Residential customers used high. It exceeded last year's peak load, w hich also ccurred in the summer, by 180,000 kilowatts or 8.9% more electric power and contributed an addi-tional $4.9 million in revenues. This continued 8.6%. This increase emphasizes the significance of air conditioning in the Company's load growth.

grow th in usage,in no small part, has been made possible by the lower unit cost of electricity. The cc,st Gain in Residential Customer Use f

per kilowatthour has declined from 4.868 cents in 1928 to 2.422 cents in 1968, a 50% reduction in 40 Best lu Jompany History years. Commercial sales kept pace with the growing Electrical usage by residential customers established requirement by all Americans for more conveniences a new record in 1968. The average per-customer provided best by electricity. Industrial kilowatt-gain of 326 kilowatthours was the highest in the hour sales growth is best illustrated by the fact Company's history.

that the nine Company customers which now use This is due in part to aggressive marketing efforts os er $1 million of electric power annually increased by the Company, and in part to the increasing desire their total average usage in 1968 by 12.9%

of more families today for the comfort, convenience Electric customers totaled 638,685 at year end. an and better all-around living environment prosided by increase of 10,896 during the year.

electricity. Electric air conditioning, for example, wasinstalled in nearly100% of privately-owned Total operating expenses rose to $163.1 milh.on,a new apartment suites,while 89% of these suites were

$14.4 million increase over 1967. Fuel and purchased equipped with electric ranges.Over half of the 6,500 power costs increased $6 6 million, up 19.3%, due t new homes built in 1968 were equipped with.

greater kilowatthour output to the service area, higher electric ranges. In the eastern portion of the Com-cost per ton of coal and greater power purchases.

pany's service area,136 total-electric apartment As more fully explained in Note C to the financial units were completed;in addition,22 total electric statements, accounting practices of the Company condominium apartment units w ere planned, four of were changed elfective January 1,1968 in the which were completed. Planned for 1969 are capitalization of overhead construction costs and 110 total-electric units.

.J 1

4

p__

g Respai

,e 1

1 r

3 6

f,

~.,,N

)

"~

w

' n.

4 a-P I

y s

s.

d 4

Seneca: 4 r am + r t < < >c< e

ener, r< >m 'a,l,r e a a te r

,s. r ne !. t,,,.. /

,,,r

,;c

,,n s rueg

,nce

.s'+

The se r <J

' r i o,1 s T< :ra ce

!h>

3pr or vz 3,

e

.pt.,

,r3*

.n

+.o

(

' " 17 J

he t ' n

.1'

)

t t

lr.

f w i Uli O f p Th] ] T [] F kIb L d U IIhb J

N Promotional activities also had a stimulating Expansion and Modernization of Industrial Plants effect on electrical usage. Typical of several current Characterizes Record Demand for Electric Power promotional programs are those involving Whole-Cleveland-Northeast Ohio's vigorous and expanding House Air Conditioning, ranges and dryers, and industrial climate directly affected power sales to Housepower development of modern electric this category of customer in 1968. Revenue from living for older homes.

industrial customers totaled $71.7 million, up 8.1%

over 1967. Kilowatthour sales moved up 10.6%

Rise in Seles to Commercial Customers over the previous year's total.

Reflects Strong Growth in Air Expansion and modernization projects, growth Conditioning and Modern Lighting of theall-electricplant,increaseof plantaircondi-New office buildings, motels and shopping centers tioning, and improved lighting levels - all these helped boost the Company's commercial sales of contributed to the record demand for electricity.

electricity to a new high. This usage represented an One example of thelighting modernization program increase of 9.4% over1967; revenues increased is the re-illumination of a million-plus-square-foot 8.6% to $50.4 million.

plant which will triple the plant's lighting

" * '8Y '*9 " * * * "

in addition to continuing electricload growth, the Company is providing for expansion in the allied The trend toward ever greater use of electric power field of steam service. Sizeable expansions by by industrial consumers was reflected in the growth in Cleveland State University and Forest City Publishing sales to the steel and automotive industries during Company, for example, will add revenues in 1968. For example, output from the electric arc excess of a half-million dollars annually.

furnaces at Jones & Laughlin Steel Corporation for 1968 exceeded all previous annual production figures.

Application of the total-electric concept t in Cleveland's automotive industry, second largest buildings of all types and sizes also continued in the nation, new highs in electrical usage were to find favorin 1968. A record high of 30 all-electric recorded by virtually all producers. But of even buildings were constructed. In addition, more greater importance is the expansion being under-than 93% of air conditioning installed in commercial taken by industrial customers. At Republic Steel buildings was e!ectric.

Corporation, a multi-million dollar project saw Lighting again provided the largest source of com-construction continuing on a new 84-inch hot-mercial revenue. Indoor and outdoor lighting sales rolling mill and nearing completion on a new 84-inch represented an increase of 20% over the1967 total.

cold-rolling mill. Throughout the entire nation's Continued high quality of lighting was assured steel industry today, electrical usage is increasing; in through the Company's stressing that the illuminating the next ten years it is expected to more than double.

Engineering Society's lighting recommendations be in the automotive field, Ford Motor Company applied in all new commercial installations. A total of completed its No. 2 Engine Plant expansion and is 94% of such installations met these recommendations scheduling a new engine production line for opera-in 1968, as compared with 91% the previous year-tion by the third quartt r of 1969. Total added An important part of outdoor lighting sales was investment in this facility is $100 million. TRW, the result of the Company's continued Dusk-to-Dawn incorporated, completed a rriajor addition to its Ughting Program.This program, blending modern valve plant which now makes it the largest such lighting beauty with safety, now produces more facility in the nation's central industrial area.

than $1.2 million in lighting revenues annually.

The substantial growth of the area's industrial com-6

i i

munity during the year was surpassed by the growth m,

of the all-electric plant. At year-end,73 industrial facilities were in all-electric operation or committed r

Y $6 iJ to all-electric operation. In the aggregate, this represents an 83% increase over 1967 and a notable r

4'-

F gain from the two installations recorded in 1964.

In the aerospace field, work on the Super Sonic

.g N..,

Transport Program at the National Aeronautics and

., f.

7 g.

Space Administration's Lewis Research Center i

g4 4

accounted for the third highest electrical usage s;.s n

g,., ".1 in the Lewis Research Center's history.

6 4 c'

.j'

,[

v

[ (, ' 4 Continued Growth in Customers' Plants w,

Evidences Confidence in Cleveland-Northeast Ohio investments in new plants and facilities have averaged more than $300 million annually for the last five i

years in the Cleveland-Northeast Ohio region. This n(

i growth trend continued in 1968 with many new plants and expansions, among them such nationally known

,,,.,, / #.[.2%

companies as Towmotor Division of Caterpillar

. p,f

'{

Tractor Company, National Screw and Manufacturing r**",

Company, Smith & Wesson Pyrotechnics, General Bookbinding Company, Packaging Corporation of America and Sherwin-Williams Company.

i The region's potential for future business and

'I industrial growth remains high. In addition to six industrial parks fully occupied. another 45 contain

,y,,

8.600 acres of w hich 76% are now available and ready for occupancy.

Cleveland's growing stature as a major headquarters city is being strengthened by four new office buildings rising in the downtown area at an Avon Lake: More power to meet the future's estimated cost of $60 million: the Investment Plaza, mounting electricity demands will be generated Central National Bank, Cleveland Trust and

, being readied at the Avon Lake Ohio Bell Erieview. Elsewhere in the downtown by Unit 9

Power Plant.

section Ohio Bell is building a new long lines communication building. Several new downtown hotels have been announced and a major addition has been started.

~

Growth of educational facilities in the central city reached an all-time high in 1968. At Cleveland State D

7 b

I-L

~

l q_

]-

University the Basic Science Building, part of the Progress was notable in interstate highway I

multi-million dollar building and development pro-construction. Construction of thcse key arteries in gram,was completed at year-end. At Cuyahoga the Cleveland Metropolitan area is 70% complete '

r Community College, two of the nine buildings on the as compared with a national average of 59%.

$45-million downtown campus are now occupied; the remainir g seven will be completed in 1969. In the Inter-Company Pooling Adds to University Circle area, the recent federation of System Reliability and Economy l

Case Institute of Technology and Western Reserve increased service reliability and increased operating University has resulted in a school now ranked economies - these are the twin major objectives of on the basis of endowment among the top 12 America's investor-owned electric utility industry.

l privately supported institutions of higher learning And they are being reached today,in large part, in the nation.

l through various types of inter-company pooling Major expansions are also underway among others arrangements and through the nation's overall inter-of the 23 degree-granting institutions within the connection network.The Illuminating Company metropolitan radius of Cleveland. For example, at is an important part of this pattern.

Baldwin Wallace Ccliege an art and drama center CAPCO (Central Area Power Coordination Group) and a new all-electric administration building are is a five-company power pooling agreement formed underway which will cost over $2 million.

late in 1967 and now well into its implementation Two importar t developments strengthened the phase. Member companies,in addition to The entire region's transponation complex. First, a County lliuminating Company, are Duquesne Light Com-Port Authority was apprcved to assume the admin-pany, Ohio Edison Company, Pennsylvania Power l

istration of Cleveland's port facilities. Transfer to this Company and Toledo Edison Company.The purpose new Authority will increase the overall potential of of the agreement is to coordinate the development of the Port of Cleveland, already the largest overseas generating capacity and transmission in order to general cargo port on Lake E ie, and the third largest achieve greater reliability and economy of operation American port for such cargo on the Great Lakes.

in the joint CAPCO service area.

. The second important development was the comple-The members of CAPCO,in turn, are part of the tion of the Rapid Transit System extension t larger ECAR (East Central Area Reliability Coordina-Cleveland Hopkins International Airport.Th.is tion Group), composed of 26 utilities in an area extension, linking downtown Cleveland directly t which covers parts of eight states. The purpose of its major airport, makes Cleveland the only city in the ECAR is to improve reliability of bulk power supply nation with such service and, with 3russels and and to increase overall reliability of member systems Tokyo, one of only three in the worid.

through coordinated planning and operation.

Cleveland Hopkins, with direct flight connections The Company through its present ties with neigh-t Europe and the Far East, continued its expansion 2

boring companies,is also a member of the Inter-and modemization program with a new South c nnected Systems Group, the largest power group Concourse expected to be operational ny mid-1969.

f its kind in the world. ISC presently consists of 134 Expansion is also in progress at Burke Lakefront Airport's passenger terminal.This unique business Perating utilities in 32 states.

airport, only five minutes from downtown Cleveland, Record Construction Program Under Way is the site of over 300 takeoffs and landings daily l

by corporate prop and jet aircraf t, and taxif ne Because of the growing population in its service 1

commercial flights.

area, the increased number of new home electrical 1

J 8

. Wheels: Mobile transformers and mo-

,abstations are used in maintenance and

..appipng power in emergency situations.

g g appliances, industry's precise and critical equipment, o

and the increasing volume of production, the i*

't.

Company's responsibility for meeting service p, b',

demands is greater than ever before. Its program b

for meeting these demands involves the largest

,. Y.

construction budget in Company history.

l-j

[

g Two major projects involve commitments with i -

CAPCO members. A site for the 872,000-kilowatt

. -!F

.. '. ~ w: "

nuclear power station to be built jointly by The g

g D

lliuminating Company and The Toledo Edison

, Mr Company was selected early in 1968. This plant,

]'

i, _

-[

the first venture into nuclear generation for both companies, will be located on Lake Erie about 20 miles east of Toledo, Ohio. Its major components

-"-3

- the turbogenerator, the nuclear fuel and nuclear

~. [..., ' [

-h)j)[TA

.I

)

7 1 - (,

- ' > ~ - " 'Q. m,

steam supply system - were ordered late in 1968.

4 The installation has been named the Davis-Besse

}

G4 Nuclear Power Station in honor of the chief 1'

i

- ^

I g

y-executives of the two companies. It is scheduled J

(

M 4-for completion in 1974.

l 4

Progress also continued on a new 625,000-kilowatt h }r 1.

.j

(-

. '. '.. ;~

f umt at the Company's Eastlake Plant, another Ai f.Q CAPCO-related project whose capacity and owner-I y[g g.

ship will be shared with Duquesne Light Company.

i r

?

i f

{<,'

Key equipment components have been ordered, and f ' tJ ]

f g

ig detailed engineering has begun. It is scheduled 3

j O

f-for completion in 1972.

y' -

^

Considerable progress was made on two other 4

3 J

major projects. Construction of the Seneca Pumped-Storage Hydroelectric Power Plant is more than 90%

l complete. Start-up operations began in late fall l

A.['

l' j

1968; by May,1969, the plant is expected to be in

'1 '

I l

full operation. This project, a joint effort of The

,4d

/

I Illuminating Company and Pennsylvania Electric

~ Ej.d ihc-p.

) W ' Fe, j ka.

Company is located near Warren, Pennsylvania, w

n Another 625,000-kilowatt unit is well into the con-

-h-s a

~

struction phase at the Company's Avon Lake Plant.

T

'k Scheduled for operation early in 1970 this unit is being built in conjunction with a similar one at

% ~,fh:N,i b..

Ohio Edison. Each will reinforce the other for system reliability.

The completion of these four plant nrojects will Thermovision: The Illuminating Company is oom one of the first electric utilitoes in the country D

0) ising Thermovision. a device which permits the O Q

}l

- checking of temperatures in electnc components while in operation.

~}

~

dL JU

< _1 S

a

i i

'O.

5g.

M.t virtually double the net capability of the Company's in1970 will be refunded. As the system, increasing it from the present 2,259,000 range expansion plans are implem kilowatts to more than 4,000,000 kilowatts.

necessary to undertake additional p j

financing from time to time.

in addition to these major plant projects, the Company continued to strengthen its network of Overall, the Company's construc

..n is s

transmission and distribution lines. It also completed currently budgeted at $397 million for tne period a new 345,000-volt transmission line providing an 1969-1973 in addition to $111 million expended j

additional interconnection with Ohio Edison in 1968.

Company,and has under construction two more i

interconnection transmission lines with Ohio Edison, Research and Development one at 345,000 volts and one at 132,000 volts.

Research, development and utilization of new breakthroughs in technology are i :tal elements in the Financing Company's overall engineering program.

]

To help finance current and proposed property With other utilities, the Company continued its i

additions, the Company m January of1969 sold $60 research and development efforts in advanced i

million of First Mortgage Bonds,7% % Series,due nuclear concepts.The Company is one of many q

1990, at a cost to the Company of 7.056%.

investor-owned utilities participating with Culf Proceeds from this sale are to be used to make an General Atomicin a new program announced j.

advance payment of about $37.5 million to Ohio Novembe.* 11,1968 to advance the development j

Edison Company under an electric generating plant of the gas-cooled, fast-breeder reactor nuclear construction agreement.This agreement calls for each power system. Tite gas-cooled, fast-breeder reactor

]

j company to construct a 625,000-kilowatt generating has the potential to create up to 60% more fissionable j

unit and associated interconnection facilities. Until material than it uses. In addition to participating in June 1,1970 the Company will be entitled to one-

' three other major projects involving both gas-cooled half of the net capability and energy of the Ohio and sodium-cooled fast-breeder reactors, the

' Edison unit. At that time the advance will be repaid Company,as a member of The Edison Electric Insti-

}.

to the Company. The balance of the proceeds were tute, supports many other programs designed to used to repay a portion of outstanding short-term reduce costs and improve service. These programs i

bank loans and commercial paper m'ade and cover a variety of fields ranging from extra high I

issued to finance temporarily the Company's voltage transmission to the development of a High

~

construction program and provide working capital.

Voltage Cable Test Facility.

j This bond issue brings the amount of Company The Company is also one of the first electric utilities bonds now outstanding to $255 million. Annual in the country applying Thermovision to its opera-interest charges on this amount total $10,762,500, up tions. This, an infrared television system, locates

$4,275,000 over the annual rate for 1968.

potential trouble spots in certain types of equipment through detection of abnormally high temperatures.

Following the January l1969 issue,it is estimated that 1

approximately $170 million of additional perman_ent With the local telephone company, the Company has

]

financing will be required in the 1969-1973 period.

completed a test project which involved construction Current plans call for an additional sale of First of a common power-telephone subway. Substantial Mortgage Bonds in mid-1969. In addition, the economies are expected for both companies

$50 million First Mortgage Bonds,3% Series due -

from this joint elfort.

9 I

e C

I J

/

b f

p 10 n.

Training: Prospective young linemen, enrolled in the Saturday Work Expenence Program sponsored

')y the Company, examine some of the equipment they may one day be working on.

q Additional Company operations, including share

5 d

owner records and improsements to property

~ l.[,

Nb records, were adapted to computer systems during gs

'~

M 1968. Significant improvements were made in the system with the installation of an IBM 360, Model 65, computer. This is part of the Company's con-tinuing effort to reduce costs and improve the quality of operation through the use of electronic M

data processing.

Decentralization of Facilities Speed and reliability of service is an increasing

.=...

challenge in a rapidly growing metropolitan area.

N One way the Company is meeting this challenge is C'

through decentralization of service centers. These garage office-warehouse facilities are located g

M.

strategically throughout the operating area to expedite

%/

maintenance and installation activities. Ten such centers are now in operation with two more

~!

s scheduled for 1969.

b h'

.j

D Environmental Improvement

. w((I American industry in its physical growth and expan-sion today 's operating within the comparatively new discipline of aesthetics and environmental relation-i ships. Buildings and facihties must be attractise, I

and industrial processes must not pollute atmosphere or water resources. In this discipline the Company y

has long been a leader.

Y

! Ei Underground residential distribution is one of the

!h f g(, "

fields in which steady progress is being made.

~

.l Since 1965, the number of homes served by under-ground distribution has climbed from 678 to over 9,000. During 1968 alone, installations for nearly 3,200 k

homes were processed.The application of pad-p %g.1, mounted transformers has been extended to com-f b

mercial-industrial loads, and an advanced concept "7

using direct-buried transformers and modular g_,J#..

components has been standardized in Company i

.q J+.

installations. The first allotment using this new system was energized in May,1968.

l Similar attention is given overhead and other system OO New Device: The Illuminating Company played 9

g a large part in developing this Primarv Switching n

\\todule which helps insure more reliable service O O JL in the fieldof undergroundresidentialdistribution.

f Q

.(

.J

-l 11

~

m facilities. This iricludes such elements as modern-worked toward Bachelor and advanced degrees design steel poles, painted wood poles with armless or pursued studies in job-related subjects. In construction and substation landscaping.The addition, three new manpower programs were Company works closely with municipal authorities initiated during the year designed both to attract new wherever possible in planning and designing talent and to aid disadvantaged unemployed in the projects of mutual concern.

community who wish to qualify for regular Company employment.

Director Changes Employee identification with Company goals and At the1968 Annual Meeting in April, share owners interests has always been high. In 1968, for example, elected Hugh D. Luke, President of The Reliance nearly 5,900 proposals were submitted to reduce Electric Company, to replace Kent H. Smith.

costs and improve work methods; more than 1,000 Mr. Smith did not stand for re-election in accordance employee suggestions resulted in better service to with the director retirement plan adopted in 1963 customers and more efficient operations. On another by the Board of Directors. His tenure on the Board level of identification, that of investment in their own covered nearly nine years and during that time company,54% of employees are enrolled in the the entire Company benefited from his special Company's Thrift Plan. In 1968, employee purchases of stock under the Plan amounted to $1.3 million.

competencies and his many years of business Since it was initiated 15 years ago, employees have experience.

invested over $12 million of their savings in the Company's common stock.

Employee Participation in the area of Company-Union relations, the The Company's five-year construction program Company and the Utility Workers of America, y

is evidence of its intention to serve and serve well representing operating l maintenance and construc-J Cles eland-Northeast Ohio in its period of growth tion employees, signed a three-year contract on May ahead. But dollars and facilities are only part of this 31,1968. It may be opened for re-negotiation by service effort. The effectiveness of these new facilities either party only for the pension and group life depends,in the final analysis, on people, on the insurance plans on May 1,1970.

skill and professional know-how of our employees.

The Company relies strongly on its people. On the More than 4,500 employee > work in 900 diffeient jobs throughout the Company.Over 20% of these job. it is the skill and professional ability of have more than 25 years of service,a factor which employees which enables the Company to meet so efficiently the challenges of serving Cleveland-represents a vast pool of knowledge and experience Northeast Ohio. Off the job,it is their widespread

. invaluable in operations. To encourage more involvement in community and service activities employees to make a career with the Company, which is largely responsible for the esteem enjoyed effort is made to develop within the Company a creative work environment in which they may by the Company as a good corporate citizen realize their full potential.To this end, a compre-throughout its service area.

hensive educational program is maintained which offers maximum opportunity for self-development through a wide variety of after-hour courses.

More than 500 employees were enrolled in these courses in 1968. Under the Company's Tuition Refund Program more than 250 employees 12

.,wL ~>,',. w g*~A.,

+. _-

. m. %; Q.,

~

4 g.

s

,qs

- n.

r.1.N.t;.V@~ rN,

h

,, a

. e 4

r A

. 4 W iwe-..

+

e hA%, >.gtir E,. s m+. i. c.

r a

4 W4 W B 4 c.

%. a ; 4,':. -.V 3,-

~., 4,.. _

-~

+

... h.,-~

i n yu. -.

c-Y-

s,

,g t a.../

U-T _,..

w Sh'

, hf q

Y $[.h.m f. N'L.{.) k*s hf. a. h-s.g; g"Sk f.$R; _. L 3

n g;s. I. r QY,l 6t;'*f[:,

l' v sl. v y g.t :4ry. v e

Q p.

. a e

x,e-xy ve r

bt x.

y a" r s. hbs wf..

k e

. -,y ~> gcg m.a.; -gx..; 4 Q:g myg w Q,,Q ~g mu3,4.m., ;,_..

n 1 1 S, 4d. 1.WM@m.,o%. mmaa:g,ygWw

. gj ~ "

y g

s

.m p n 4

W m#.

u

m..3w.m. A m,# g.-e.s.-~nLv...

-mb m.

..e

..y,;. n. p. w.wmnW. a n%. n.. w-m,.

n m

s r,

yg.p. ~ 9. %e@f.

, H., 1..4. m

. - 4 t w..,

ge-n n. gm d.;

e m

~~

qev,o.w m y g y m: 2. y b %, %e -.pppgg.g. o.

p sm,m& 3,ygQ3 g m%gm2w

. s

-. 1 t n ~.,.. wu y.

u-o ;.* z ',;. +. c p,9 J

t g k;.

.y

~

c; g#., >

w >

m.

p w

.c.-

v. f., g. 3. f.y. 4.,q.f, g-, t }q_ L.,,,. 4g. + -

1,+.sw vm s -.. ;,p: o. -

- 4; w,.

,,b

+~

~ -m,y z

3.,p.3,gpp

.r

-y,

f. *:* \\ J.M.n.n,g g-c.

m.

s

.[ id ( _

3.

yY l>'

g.. ' g I M'

,.p

,, v w;:9.,. wm '*'n..

.p~~w.,_', aw%),.

Y

.n.,f.

s.

~

4,p

'f c,,, +

.n(..<;

.1

.r

>c

.g c

Y.

m.. # ;r* -, o' A

.g

f.,.

..,9, a

ye g

m y= p.D W

"' Financial _Statem6HFs ar_id4,.gr[W 4

, +,, y - y r

. g wp*,

4 qsrns 1

- ~

v

,wu

~

A: s M,n ; ;J 4..,

--Financial a_nd Statistica.l R_evie,w ".

n,m. e

~

m. n

.1968-19'5.8: C...9, 1%. 4 W. "

+

. ~n,

KN.

..<^~l r

_.c..

+

a.b ef g

-W S.

p+.

,, E w-f e,

',, pp g O.'

I

. ^,'

[

4 '

3 I.

[

i g..

g -

N

, 5

-., s a.

f *'n o

,,'J.,

g g-. 4 4

. y

)

h' w

a' 5,

y

< ' = c e'

, f M' I

,w

+n

-A,

.a e

p4,,

a, 4%

..9*"

,.u.

g,

,P g

',=

_ a,.

t'

'-N.1sa.g-*

g s

3,

5. g,

>+

1

, e 2

. '.'.j:-

4 j',W ~_;4 9 si m f,;, f,

% %pf 4

5.

_a

/.

y, a;4

- +,

e r (

. 3

/**

i~,i"s

.t

,y+

L,t-g.7 g t (%'; g.

g..

c, i

4

.;f.,

i: r

,-R

.f.

.,, f

,q ;

9

' g, &..q.. ', p, A.'

J y y, i

t

_-M

- wA em.. y : i;. L Lt g.

~

y'-

g-l

,l

% M.

"'^

,..< m s

+4 4..,,.gs.

,(,,,.

x y y. M -' F -,

~..,.

'nn

.y s

2 e:

A e

'fQ.

g ',~

.~

f

- _ ~.M., eq..g Q, e. ;W

%..,+.7 6:wl 4 'o wJ.ir vcW4.Q4%w 6

. ;,.m. 3, w y:.,t.. p n.u

. -:.n..L.*9.w w.a y.g;M*.- ~ 4:

.t s. ya.

e n

y -

e. o; w-L",'#E.

' [ --- - $ \\

nr yh;&a s's,g 1..-

s h,.

',?4*4

-a A

..-G.-',

M

%=,

-a i

e g y s. ; y' f "#

m.. 'y. R

; h, g'., u p... r,.., g,.y.$.3,y,w ;... ;

r.

y y

n.,

.s

.t-sqr m

m

y g s, a4., 3,@.,,4-,.

v

.w

.f

--~,.,,5

, y, 9.r s

s.y.p,r e

'.m.,.

.-}s y

r.

4., c.

q+

9 y

. 3 u,

x. p;l - 1.gr. _ -

.,,u

. Qeg_,s>

+ < <y p : yg,33, '

K,.

' ' v ' *n ' s L,,

.s s

y.,. e,',

ys,

.g t

., -. w

g. u,4

~

. e.* -~',

~

^v

,#1 s

y

,.P

- ~,

. u,

$;u.

G 4L,

'% 4 or 4

, +

m i,.

y..?.

g: s Q ~Qq'f, 4 y-

,,. g - W

.y

%. sN 5 ; y, 3

I 4 'eA '* f,

.nh '-

,b, a-N.

f w

'g%.

,j.

Q ga n d T-g ? g.

ghp.- ?mfM-Q*

y *, * <

n ' %% > -P.fV ',.?*' q q ;0%. ' ' ' ***

s

'*h

, n p.

- MWW &,.;,vS",)

d

&l k n v

rs'? '

n g vo:p~/**m. s ~a a,

.+

4. 4,..o...

9

- < y. 4y.,,a.. '..

~

e 4

~c s

.y x,Y.i g /yqns, %r.,-

w 4

w>

y 3-

.w,< ;

s.p,rw s,

u.:

5

.s s.

.m.

1 w

m.w x

.}"

e.a*

.., m,,..

x p.... a,=

in'-

ll

' l I.s

-d?

=^

Q s

y D'

D l,. l

s r

_ l.

s,

?.

e.

9%

w..,,.,n

. m.... m

s. r..n.

r.. % - -.- ',-

y' 4

, h,.

n.

v*gr.~

A

%.s+w g* w a j :s, M

)

~

f 3'

%, : r v p*

r 4

t. [4..,.f (,.

l N +,4..V...

c s~

~

(

i :.,

Q d%. [: ".

+

z c)t..agi,.

?% mf %_}_

J ;

m nu, '

pn

_ g, gfr,

%s

- }-

.N-g m, ' y%',.

,e' s

,g f.

M y

i,,

.e -

y, Argg,

+ 4?y(. w;.

e ' S' p

,j*

'.gf.. _

N f '. *gW,gjE wg&W, A -

U q

', W

.k 3, g &gg my q, 4

s

-t

' O c.g

.z: 2,a',-

ay+

r s

q)

J wyn.

., + y g q %.

7 w.p' g, w.,pey _ '

g a,

w.

. n 4.

y as?. q,,,;er 7 A A +., w~ ne,@ r n, ga e f 4, m e 's 3g+ - ::q b Cy:t;4g o5,

q M. n. w r. v. + Qh. Q' " #

4

& m.s

-;c 4 e%.f'kRA h.,p,

.i, e.t. Q....,., _ 3Q.g, J * ?

..v

%_Q. mj.g pr y; -

-* b'G,..1 y e. f R,&.f... _ e

/.-,t,:

9%

.}

-. }

4 Qgp,gy.mp"pFj g g*c13 be m:, %

,f.% 1,.,,

s g^*

.g,.w.*

., _.;,y y-A;,c,} *qy.

.p

. r

%a.

~

w

~

u

.x

%c q

.y w %h_

u %3^Ae m,;2nTn.m]%.,.- M w_

~e

' - sg., x r

se,

_+

s..a*~.

.+m- + s ".h v, a.3 ++;n,,n

4. n.4W W ;.. q c%a,, :

m c ;w M* 2.9. p wm~q,e$n.

W M

a.

a v.,

n w% k

. =

tMW f w

eW+g, &.c;# A ddiN W wM, a: %,a,.N^ ' t e R.k;m % 3%y QGgg.

PT!

r i p. 9 :N,c:ht'._~.g39.4, i 'dh,*C %q%,.:

m ".

~

.3

%4r.:% sa O

' h %& &;# *%Q% Y.y.

..W MadrdV.Md NEldbiM@Q.dh1M5Ni&d2M@&M6A

.k r AQ, N,'.",/%#

lV&

%s,M M h:MM M k.d:

The Cleveland Electric illuminating Company and Subsidiaries l

l S,

YEAR Source and Application of Funds 1968 1967 SOURCE OF FUNDS l

Net income

$ 37,305,967

$35,773,031 Depreciation and other noncash charges 20,550,974 21,045,694 against income - net.

Liquidation of temporary cash investments.

20,237,868 21,353,089 Sale of common stock to employees.

1.639,802 1,453,269 l

42,300,000 Short-term borrowing increase in payables maturing beyond one year 10,294,792

( 405,045) 6,411,775

( 5,912,347)

Other changes - net.

Total Funds Available

$138,741,178

$73,307,691 l

APPLICATION OF FUNDS

(

Utility plant expenditures

$110,980,378

$45,966,218 2,411,418 3,816,131 Treasury stock purchases Dividends 25,349,382 13,525,342 l

Total Funds Applied

$138,741,178

$73,307,691 Opinion of Independent Accountants To the Board of Directors and the Share Owners of f

The Cleveland Electric illuminating Company:

In our opinion, the accompanying 1968 statements of financial position at December 31, results of operations, earnings retained in the business and source and application of funds present fairly the consolidated financial position of The Cleveland Electric illuminating Company and its subsidiary companies at December 31,1968,and the consolidated results of their operations and the supplementary information on funds for the year then ended,in conformity with generally accepted accounting.

principles applied on a basis consistent with that of the preceding year except for the accounting changes, which we approve, described in Note C to the financial statements. Our examination of these l

statements was made in accordance with generally accepted auditing l

standards and accordingly included such tests of the accounting l

records and such other auditing procedures as we considered necessary in the circumstances.

PRICE WATERHOUSE & CO.

j Cleveland, Ohio January 30,1969 '

14

The Cleveland Electric illuminating Company and Subsidiaries Results of Operations YEAR 1968 1967 OPERATING REVENUES Sales of electric service.

$200,258,168

$185,321,200 Sales of steam service 3,582,123 3,702,844 Total Operating Revenues 203,840,291 189,024,044 OPERATING EXPENSES Operation..

77,268,417 70,451,109 Maintenance.

13,056,760 10,905,794 Provision for depreciation and amortization.

20,048,281 20,634,257

' Taxes, other than Federal income taxes..

23,316,000 20,834,000 Federalincome taxes (Notes A & B) 29,815,348 26,676,574 Net transfers from accumulated credits for future Federal income taxes.

( 1,303,0CO)

( 1,246,000)

Investment tax credit adjustments (net) (Note B) 904,184 448,699 Total Operating Expenses.

163,105,990 148,704,433 NET OPERATING INCOME..

40,734,301 40,319,611 OTHER INCOME net, after income taxes.

298,486 885,195 MISCELLANEOUS INCOME DEDUCTIONS, after income taxes..

(

145,928)

(

245,803)

GROSS INCOME 40,886,859 40,959,003 INTEREST CHARGES Interest on first mortgage bonds 6,487,500 6,487,500 Interest on bank loans and commercial paper 832,179 Interest during construction charged to utility plant.

( 3,738,787)

( 1,301,528)

Total Interest Charges 3,580,892 5,185,972 NET INCOME (Note C)

$ 37,305,967

$ 35,773,031 EARNINGS PER COMMON SHARE, outstanding end of period (Note C) 2.78 2.66 Earnings Retained in the Business 1968 1967 BALANCE BEGINNING OF YEAR As previously reported.

$61,090,907

$92,024,274 Change in accounting for property taxes (Note C)..

7,996,000 7,528,000 As adjusted 69,086,907 99,552,274 ADDITIONS Net income resulting from operations.

37,305,967 35,773,031 DEDUCTIONS Dividends declared - common stock 25,349,382 23,525,342 Treasury stock purchases - cost less stated common stock value 1,552,804 2,713,056 Transfer to common stock account 40,000,000 Total Deductions 26,902,186 66,238,398 BALANCE END OF YEAR..

$79,490,688

$69,086,907 d

15

Financial Position at December 31

~

N Assets 1ssa 1967 PROPERTY AND PLANT Utility Plant (Note D)

$809,964,111

$709,907,160 Less: Accumulated provision for depreciation and amortization.

258,233,922 247,391,876 551,730,189 462,515,284 Other Plant,less accumulated provision for depreciation 4,398,131 3,781,411 556,128,320 466,296,695 CURRENT ASSET 5 3,477,481 3,254,128 Cash.

U. 5. Government and other securities 20,237,868 Amounts due from customers and others, less provision for losses...

15,186,015 15,458,994 Materials and supplies......

8,051,411 7,409,737 3

Fuel.

6,483,957 7,934,164 20,877,661 18,044,037 Other (Note C).

54,076,525 72,338,928 OTHER ASSETS 8,191,731 6,863,351

$618,396,576

$545,498,974 Notes to1968 Consolidated Financial Statements to the latest estimates of useful life for depreciable electric property. These three accounting changes increased net income NOTE A-For Federal income tax purposes the Company has, for the year 1968 by $3,100,000, or twenty-three cents per share, since 1954, claimed deductions for liberalized depreciation on before deducting $200,000 for the effect of the 10% income additions to its facilities other than those covered by Necessity tax surcharge.

Certificates while using the straight-line method for accounting Beginning in 1959 the Company's practice had been to charge purposes. Tax reductions resultmg from liberalized depreciation to expense in the current year Ohio real and personal property are subject to flow-through accounting treatment on the books taxes which became a liability on December 31 but were appli-e Company, by order of the Public Utilities Commission g

o to charge to operations in the subsequent year Ohio real and NOTE B-The liability for Federal income tax has been re-personal property taxes whMh became a liability on the pre-duced by investment tax credits of $1,021,758 in 1968 and ceding December 31. Therefore, in 1968 taxes of $19,400,000

$547,806 in 1%7. Pursuant to orders of the Public Utilities applicable to the year 1969 have been reflected as other cur.

Commission of Ohio, these amounts have been deferred rent assets at December 31, 1968, and will be charged to -

through. charge to expense and are being amortized oser the operations in 1969. Had the current practice been followed estimated life of the property invohed.

since 1959, the total effect on earnings retained fafter appli-cable Federal income taxes) would have been an increase of NOTE C-Effectne January 1,1968, the Company changed

$7,996.000 as of December 31,1967; and the effect on 1%7 net certain of its account ng practices in the capitalization of over-inc mewould have been an increase of $468,000,or three cents

/

i head construction costs and the expensing of property taxes in Per share. Results of operations and financial position for 1%7 order to more closely conform with those followed by other and those of pnor years have been correspondingly restated.

Ohio electric util. ties, and with general industry practices as prescribed by the Federal Power Commission. Commencing Federal mcome taxes have been computed at the currently

!anuary 1,1968, the Company also reduced its annual electric applicab:e rates for the respectne periods, including the 10%

16 property depreciation rate from 3.25% to 3.15% to give effect income tax surcharge which reduced net income for the year j

The Cleveland Electric illuminating Company and Subsidiaries Capitalization and Liabilities 1968 1967 FIRST MORTGACE BONDS (Note E) 5195,000,000 5195,000,000 COMMON STOCK

~

No par value - shares outstanding:

13,423,538 in 1968 and 13,435,117 in 1967; after deducting shares in treasury, 700,400 and 636,300, respectively (Note F).

180,723,427 179,942,239 EARNINGS RETAINED IN THE BUSINESS 79,490,688 69,086,907 Total Common Stock Equity 260,214,115 249,029,146 ACCUMULATED CREDITS FOR FUTURE FEDERAL INCOME TAXES, resulting from emergency and defense facility amortization 24,754.000 26,057,000 PAYABLES, maturing 1970-1976 13,684,583 3,389,791 CURRENT LIABILITIES Notes payable to banks and others 42,805,804 601,803 Amounts owed to suppliers and employees (Note G) 17,873,949 13,360,654 Federal income taxes 18,293,506 18,830,656 Other taxes 38,499,808 33,613,216 Interest 1,395,883 1,243,938 Other 1,433,275 1,059,872 120,302,225 68,710,141 DEFERRED CREDITS (Note B) 3,895,460 3,009,855 CONTRIBUTIONS IN AID OF CONSTRUCTION 546,193 303,041 5618,396,576 5545,498,974 1968 by $2,700,000, or twenty cents per share. The combined Common Stock at prices ranging from $23.75 to $39.25 (95 effect of the accounting changes and the 10% income tax percent of market on date options were granted prior to 1964, surcharge increased net income for the year 1968 by $400.000, and 100 percent of market on date options were granted in or three cents per share.

1964 and subsequently) and a further 2,827 resened shares are unen y n aaa fr e granung additional options.

NOTE D -Utility Plant, at December 31, 1968, includes the cost of the portion of the take Shore Plant, located on artifi-In 1968, options for 11,168 shares, at option prices ranging from cially hiled land, estimated at approximately $54,134,000. Such

$23.25 to $39 25, were exercised and options covaring 331 land has been occupied since 1910, subject to such nghts as the State of Ohio or the City of Cleveland may have.

At December 31, 1968, 24.447 shares of Common Stock were reserved for the Employee Thrift Plan in 1968, 41,353 shares NOTE E-First Mortgage Bonds:

1968 1967 were sold under the Plan.

3% Series due 1970

$ 50,000,000

$ 50,000,000 NOTE G-Unrecorded purchase commitments for materials 3% Senes due 1982 20.000,000 20,000,000 and services in connection with the construction program 2r.% 5enes due 1985 25,000,000 25,000,000 amounted to approximately $97,326.000 at December 31,1968.

30e% Senes due 1986 25.000,000 25,000,000 3% Senes due 1989 20,000,000 20,000.000 NOTE H-The Company's pension plan proudes retirement 3?'s % 5eries due 1993 30,000,000 30,000,000 benefits for all regular employees, with at least ten years of 4%% Series due 1994 25,000.000 25,000,000 senice, based pnmanly on length of service and total earnings.

The plan also provides for certain early retirement, disability j

Total

$195,000,000 $195,000,000 and death benehts. The pension provisions were computed as for details as to future financing, see page 10 in this annual a percentage of payroll based on actuanal estimates. The 1968

,,pg,7 and 1967 provisions amounted to $2,630.000 and $2.450,000, respectnely. The Company's policy is to fund pension cost NOTE F-At December 31,1968, outstanding options under accrued. At the end of 1968, the value of the pension fund the Employee Stock Option Plan covered 118,020 shares of adequately covered all prior service hability.

17

l The Cleveland Electric illuminating Company and Subsidiaries 1968 1967 1966 Financial and TOTAL OPERATING REVENUE.

203.840 189.024 184.246 02.268 Statistical Review Residential.

70.335 65,446

. 43 3 Commercial 30,394 46,398 1968 1958 f.1dustrial 71.655 66,262 6'

Other Electric.

7,874 7.215 9 u.d) 3.582 3.703

. 3.547 Steam Heahng TOTAL OPERATING EXPENSES - fai 163.106 148 704 145.149 Operating Payroll.

30,475 29.161 27J28 Fuel and Purchased Power 40.998 34.374 34.352 Other Operating Espenses 18.852 17,821 16.917 Depreciation and Amortization 20.048 20.634 20.191 Taues, Other Than Federal Income taxes Ia).

23.316 20.834 20.166 Federal income Taxes rai.

29.816 26.677 26.621 Provision for Future Federal Income Taues 239 222 213 Results of Operations Transfers from Accum. Crs. for Future Fed. Inc. Taxes.

11,542)

(1.468)

(1.486)

Imestment Tax Credit Adjustments (Net),

404 449 447 6 Thousands of conia,u NET OPERATING INCOME - (a) 40.734 40.320 39.097 OTHER INCOME net, af ter income taxes.

299 885 1.296 MISCELLANEOUS INCOME DEDUCTIONS.

(146)

(246) f378) after income taxes.

CROSS INCOME -(a).

40 887 40.959 40.015 INTEREST CHARGES.

3.581 5.186 5.976 Long Term Debt and Other Interest 7.320 6.488 6.488 Interest Charged to Construct.on.

I3139)

(1.3021 (5121 37.306 35J73 34.039 NET INCOME - (a),

EARNINGS PER SH ARE - Common - (a) (b) 218 5

2.66 5

2 52 Di\\ IDENDS PER SHARE - Common - (b).

5 1.89 114 5

1 62 g,

p,

,.,g g.,, g7 g,

., _, m

.77

.g

~n, 7

TOTAL ASSETS (a' 618.397 545.499 537.149 809.964 701 907 b69.581 Utihty Plant -Total..

Accum. Utahty Plant Deprec. and Amort..

(258,234)

(247,392)

(231.604)

Other Plant, less accumulated depreciation.

4,398 3J81 2.954 Current and Other Assets f al 62.269 79.203 96.2M Financial Position TOT AL C APIT ALIZ ATION AND LIABILITIES f ai 618.397 545,499 53:

Year-End First Mortgage Bonds

.195,000 195.000 195.v '

(Thousands of DoDarsi Preferred 5.ock Common Stock Equity -(a) 260.214 249.029 239.144 Accum Credits for Future Fed. Irc. Taxes.

24J54.

26.057 27.303 Current babihties and Other Credits - f a) 138.429 75.413 75J02 UTILITY PLANT ADDITIONS 110.980 45,%6d f) 34.078 < f) 10.923 5640 7,120 UTILITY PLANT RETIREMENTS.

NUMBER OF COMMON SHARES - (b) (c).

13,423.538 13,435.117 13.494,193 NUMBER OF PREFERRED SHARES,

,n

= a 1.w, _

x n,,,.,- -

.o y

~-

r~e?;-z KWHR SALES : Thousands) 12.360192 11,254.051 11.828.586 Residential 2.904,191 2.666.343 2,511.231 Commercial 2,518.958 2.303.515 2.149118 Operating Statistics Industrial 6,444.028 5.824.474 5 957.885 14' icars 1959 thrcugh 1%? have been Other 493.615 459J19 1.209.752fd) restared to rei'est the charyte.n account-inn ior propertv saies - see Nore e to ELECTRIC CUSTOuERS - YEAR EnD.

638.685 627J89 621.293 mncial statemen

Residential.

583.224 575.814 570,511 ib' shares outstanding end of penod Commercial 45.808 44.493 43.565 tem usa through 1%2 - nesmed Industrial 7.127 6.957 6.692 to reo*ct a 2 :or-1 stock spi. on vav Other 326 525 525

o w,,3 RESIDENTIAL S ALES DATA

!ci Aster deductet shares in Treasury.

'2.200 24) 200 530 a00. 636 300 and Average Kwhr per Customer.

4 809 4,483 4.268 90.400 4n 1%4 5 6 7 a. respectne v.

Average Resenue per Customer.

5 116.42 5

109 92 5

105?O dt includes 822.035.000 KWHR and Aserage Revenue per Kwhr.

2.42e 2.43c 2.48e St4 o oua a,$enue - sa:es for r.saie ILECTRIC PRODUCTION Net Available for Service Area (Thousinds).

13.296.025 12.070 649 11.858.149 act Re'fects redemption of Preferred stock 54 54 Ser es. at 5:07 per share.

Net Generation.

11.592.344 1031567' 11164353 enettac october t.19n Net Recened from Others 1J03.681 1,154.97o 93,196 ie Net arter redutt>ons of: 52.216.000 BTU per KWHR of Net Output.

10.517 10.333 10.388 ls1000 and 5132.000 in 1964 5 6.

Fuel cost per %lhon BTU.

26.60c 25 50c 24 Me revectmeN. for once adiustments due Coal Cost per Ton..

S 6.26 5

6.09 5

IdEN"cUtYaAYa$rYNdfu)en[

Net 60-Min Mas. Load - AW - Escl. Interruptibles.

2.266.000 2,086.000 1.94}

j tor aii onor vw. acau.s.nons wo.

Net Generating Capab61.ty - NW - Year End.

2.259 000 2.229.000 2.239.000

'etlects redass.f< anon in 1965 of a STEAM HE ATING

'd

$s $ tyYnt$5Sc's)

Sales - Pounds (Thousands) 2.342J45 2,448,541 2.360.415 n

Customers -Year End.

484 497 530 2,171,000 2.142.000 2.101.000 POPULATION SERVED..

EMPLOYEES -YEAR END 4.528 4.330 4.21 7

[

1965 1964 1963 1962 1961 1960 1959 1958 168.967 161.402 154 216 146.517 139 053 136.371 130.371 118.215 58.799 56,689 54 064 51.921 50,600 48.309 45.389 42.005 39.758 37.642 35 651 33.876 32,155 30.127 28.225 25.536 60.878 57,513 54.785 51,681 47.233 48 469 47,017 40.834 6,042 5 892 5 987 5.501 5.483 5.703 5 878 5.912 3 490 3.46o 3.729 3.538 3.582 3 765 3.862 3.928 132.694 127.871 122.55n 116.3h0 109.057 107,060 102.396 94.550 26.426 25.338 24.205 23 607 22.827 22.331 21.463 20.806 5

28 280 25 824 25.244 24.C65 22.374 22.905 23,785 22.673 I

15.698 14.868 14.320 13.687 12.432 12.085 11.298 10.599 20.173 19.984 19.479 18.615 16,072 15,739 14,442 13.299 19 537 18 599 18.027 16.740 15.329 14 647 13.124 12.082 23.420 21.984 19.889 17,814 18,283 16.468 16.705 11,681 231 2.050 2,063 2,301 2.737 3.690 2.295 3,812 (1.494)

(1,2001 (1.207)

(1,169)

(997) 1805)

(716)

(4021 423 424 536 700 3h 273 33.531 31.660 30.157 29.9 %

29.313 27,975 23.665 1.301 840 761 657 667 607 314 98 (295) 1291)

(233)

(1'8)

(1451 11381 (1391 f115) 37.279 34.080 32.188 30.616 30.518 29.782 28.150 23 648 6.179 6.300 5.990 5.438 5.585 6.163 4.657 3.574 6.488 6,488 6,488 6.488 6,488 6.488 6.292 5.319 1309)

(188)

(498l (1.050)

(903)

325)

(1.635)

(1.745) 31.100 27.780 26.198 25.198 24.933 23.619 23.493 20.074 5

2.26 5

2.01 5

1 83 5

1.75 5

1.74 5

1 65 5

1.65 5

1.40 5

1.32 5

1.20 5

1 10 5

1 00

.95 5

90 85 5

.80 7

,n g

y 3.,

r;- y 37 g y,, mg w- ;3 3 3

-gggnu 528.181 518 482 504 174 516.182 502.332 481.5n?

463,500 417.333 642.623

-92 %'43 b17,535 603.742 584.798 556,436 537.157 520,683 (217,701) t205.0401 (189 7711 (174.001)

(15d 641)

(148.176)

(135.6986 (135.751) 2.532 2.853 2.184 2.134 2.511 2.575 2.560 2.433 100 727 90.926 74.226 84.307 73.664 70.732 59.481 29.968 528.181 518 482 504 174 516.182 502.332 481.567 463 500 417.333 195.000 195 000 195.000 195 000 195.000 195.tXO 195 000 170.000 e) 25,753 25 728 25,710 25.680 25.654 236.922 228 809 218.895 208.809 196.684 184.414 172.937 160 862 28.576 29.839 28,939 28,133 27.001 25.261 22.376 20,797 67.683 64 334 61 290 58.487 57.919 51.182 47.507 40.020 22.415d) 17.74 3 t o la 462 23 330 33.348 23553 31,913 5645 9.535 5 535 4 669 4.386 6386 4.274 15 439 5.082 13.734 331 13.831,712 13.844.806 13,768.730 13 689.824 13,623.046 13.562.246 13.507.512 fe) 257,527 257.286 257.100 236 805 256.542 7 y..

s

,.m..m w,

,,..g gy,m.g x u y,,,7 a.

,c m

y..

3, 7,ww 10.138 % 1 9.271.809 8.660 038 8.076.609 7.432.113 7.417,147 7.221 419 6.432.332 2.340 284 2.193362 2.073.29' 1.983.552 1.925.736' 1.828.721 1,743.157 1,634.087 1,955,123 1.805.726 1.691,301 1.392.975 1.4 %.368 1.385 821 1,306.264 1.183.787 5.495.238 4.923.986 4,536,203 4,211.309 3.714,319 3.855,780 3.790.078 3,211,382 348.316 346.735 359.237 288.773 295 690 346.823 381.920 403 074 601920 598.156 583.882 574,142 566.215 559.114 549,195 537.615 561.281 551.113 538 939 530.958 523A27 516.889 507.065 495,718 41.475 40.034 33.353 36.988 36.756 36 302 36.270 36m1 6.4nd 6.318 5 898 5.525 5.366 5.270 5.216 5.170 704 691 692 671 666 653 644 636 4 045 3.876 3.750 3.638 3.591 3.462 3.376 3.221 5

101 58 5

100 53 5

97 80 5

95 33 5

94 28 5

91.34 5

87.72 5

82.68 2.51e 2.59e 2.61f 2.62e 2.63e 2.64c 2.60c 2 57c 10.946,426 10.000 161 9.376.237 8.764.741 8,108.959 8 053.505 7.895 "06 7.016.509 10 107,776 9.56u.155 9.137,445 8.560.894 7,918 612 7.920.658 7,772.765 6.562.164 838.650 440.006 238.792 203 847 190.347 132.847 123.141 454 345 10,293 10.033 9.910 10 001 9.997 10 141 10.483 10.630 24 35c 25 02c 26.16e 26.27c 26 27c 26 56c 27.52t 28.58e 5.82 5

6 00 5

6.32 5

6 34 5

6.35 5

6 41 5

6 66 5

6 99 383.C00 1.717.000 1,609.000 1,518.000 1.493.000 1.433 000 1,436.000 1.333.000 2.255,000 1236.000 1267,000 2.267,000 2.021,000 2,021,000 2.021.000 1,909,000 2.331.516 2.273.890 2.427.241 2.496.461 2.491.743 2,542.283 2.626.808 2.592.464 534 518 551 567 375 600 611 615 2,070.000 2.042.000 2.014.000 1.985,000 1,958 000 1,929.000 1,906.000 1,878 000 4.041 3.978 3,905 3,958 4.046 4.321 4.372 4,546

The Board of Directors Principal Officers and Executives I

R s i n. M Br ei DR K' mR

\\ M R'

'- V 4 1

g5 u.

i.D g

e

-ap I

N I

l.

NmH R <,

e e

~

sk k k

'g luI I(

T k.

l m N L s ', Y ; s u 1 R g

g p

I )h f k \\ f h\\

W b

9 9

i e

a a

1 1

Ft w v L L s ' n t '

'<'4

') H T-'

PH.t P B P!m l

t95 C H< x s

Ht 'mDL

Hm,T

<tu, l

(.

pm,-

y.,y 4u

,s E k,.

-d t*

i l

a

\\

1 H Av( *t'.. L \\\\ it' \\Ns'

~

L r

\\. M !.

N

.'s se l

1 l

Jf ug j a; I

Ik L

I l

l f il <:-,

j.

b"u a

, e i

WuJud6 d m..,-. 4;&.[.Q W. & 'f.f ? $.$$;q[ ?.)

'}4lT.'.e.Vj k ~ Oj..Q A

...$...# qa J

?

f b

o..

f* Q k[;g',f g. f. ? ? y. (.Q.l.. g,s..1 { : :r,h y.

. z.

~..

f

/ ;- *:; [

s-

. ; s.. o. s ;., ;.

g

',2

+..

=. -. :

. p u

a 7, %

l : ;',,[. \\ ;p. ',.

u a. *

.y

',. _ ~.

c.

g.-

g v.

+ :[

1

.}

}

.~

.3 w.

5

,(

.y

. - p.

.hk.,,,.

f.. ~"O j%M' f.

1

.h 4 ' _-

'.sh&,,

1

.a

,}. -,

y n

-s y

g'k l l tf b..

Q.' '.[- }l). %, ji. $ -.

.l') [ _. ', Q -__

l l^

-- 1. e.. ;

y. t.

p A ' m 3...

1 - r; ;., w w:-

n 4,-

.;; +g ; : :.

,,,a m...

1

.,,. 4,, f Nl K

.rf

.e.3 g

g,*$

Y-

^*

l y;*.

,c

' f,, '.

,t 4 7

',Q -

z M

r..

-p-

.s

..w.

.r

,j. y.

~

4 9,x. p. e.

a : 2. s,..y,,.;,. g;..

y 3 9.,,.

1 9

..o 2

,w.u -

a.,e : ;

ox.

w +,_. s,.. a. :....w Ras mond W n s tran Rane M Cunn Harrs T isah L-e c ' h m es Hanild L \\\\ d 'am Narl H Rudoiph Ra on Y Bme Wd'Tn3""4'

f 4

Auditors Pnce Waterhouse & Co.

Union Commerce Building Cleseland, Ohio 44115 Common Stock Listed on the New York, Midwest and Pacihc Coast Stock Exchanges; unksted trading on the Boston Stock Eschange. New York Stock Exchange Symbol-CVX Transfer Agents for Common Stock The Cleveland E!ectnc 1 luminating Company P. O. Box 5000, Cleseland, Ohio 44101 vanufacturers Hanoser Trust Company Four New York P!aza. New York, N. Y.10015 Trustee Morgan Cuaranty Trust Company of New York 23 Wall Street, New York, N. Y.10015 Registrars for Common Stock The Cleseland Trust Company Euclid Asenue and East 9th Street Cleveland, Ohio 44101 Bankers Trust Company 16 Wall Street. New York N. Y.10015 Bond Paying Agents Manufacturers Hanoser Trust Company 40 Wall Street, New York N. Y.10015 The C!ewiand Trust Company Euchd Asenue and East 9th Street Cleveland, Ohio 44101 Share Owner Inquiries Communications regarding transrer requirements or lost certihcates may be directed to either Transfer Agent. All communications regarding daidends and changes of address should be directed to the Office of the Secretary,33 Pubhc Square. P O. Box 5000, Cleseland, Ohio 44101 Executive Offices Illuminating Building 33 Pubhc Square Cles eland. Ohio Mail Address Post Othce Box 3000 Cleveland, Ohio 44101 21

N y

s

%,-m hg-Mme-% :z-S^e "M

w

Y; F7r

, fl

[h The Davis-Besse Nuclear Power Station-

{~ !

I i

/

~ sh will help the Company meet the l ff34 g

,i

-vf-expandingload growths of tomorrow N143 and serve with even greater efficiency N

the vigorous, creative environment of Cleveland-Northeast Ohio. The station, s

to belocated 20 miles east of Toledo

\\.,,

N on Lake Erie, will be built and owned by The illuminating Company and The Toledo Edison Company. It will supply energy over a system of interconnected transmission lines to the service areas of both companies, and will strengthen system reliability.

oY[o aYv' nNaIa olVd

'$$*$n'e*

10lt+ O!40 'Puela^913

0009 M8 'O 'd ANVdWO3 DN11VNIWm7131813313 GNV73A373 3H1

-.

ML19329C930

Text

Navigation menu

Search