ML19339D021
| ML19339D021 | |
| Person / Time | |
|---|---|
| Site: | Zimmer |
| Issue date: | 02/10/1981 |
| From: | Mosley J CINCINNATI GAS & ELECTRIC CO. |
| To: | Karlowicz M Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 8102170020 | |
| Download: ML19339D021 (75) | |
Text
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TIIE CINCINNATI GAS & ELECTRIC CONIPANY February 10, 1981 Mr. Michael Karlowicz U.
S. Nuclear Regulatory Commission Room P415 Washington, D.
C.
20555
Dear Mr. Karlowicz:
Per our telephone conversation, I am forwarding to you copies of The Cincinnati Gas & Electric Company, Columbus and Southern Ohio Electric Company, and Dayton Power and Light Company Financial and Statistical Reviews.
These were in-house copies and may be slightly scratched up from the file, but this was the quickest way to get the information to you.
Should you require any additional information, please advise.
Sincerely, A ".%
James R Mosley Supervisor of Financial Activities ddj Encl.
5ill ec An.
, gat,j owl'Cl-Y 8102170 0 8.0 t
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The Cincinnati Gas & Electric Company and Subsidiary Companies Financial and Statistical Review 1969 - 1979 l
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CONTENTS Page 2
DIRECTORS, OFFICERS. ETC....
HISTORY, SUBSIDIARIES, ETC.
3 History.
3 Subsidiaries and Service Area.
FINANCIAL AND OPERATING TOTAL COMPANY Statement of Income,1%9 through 1979.........................................
4 Financial Statistics,1%9 through 1979....................................
5 Balance Sheet, December 31,1%9 through 1979...............................
6 Capitalization Schedule at December 31,1%9 through 1979.................
7 Construction Exper_ditures and Plant Retirements,10 Years Actual and 3 Years Es tim at ed...................................................
8 Sources of Funds for Construction Expenditures,10 Years...........................
9 Allowance for Funds Used During Construction, Investment Tax Credits, and Tax Effects of Accelerated Amortization and Liberalized Depreciation......
10 Detail of Property at December 31,1%9 through 1979.............................
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ELECTRIC DEPARTMENT Operating Statements,1%9 through 1979.......
12 KWH Sales and Number of Customers,11 Years Actual and 3 Years Estimated...............
13 Analysis of Residential Electric Sales........................................
14 - 15 Sources of Industrial Revenue,10 Years.......................................
16 Industrial Electric Sales Compared to the FRB Index of Industrial Production,1959 through 1979..................................
17 System Peak Loads and Net Capability..............
18 - 19 Electric Generation -Trends of Fuel Efficiency Data...
20 - 21 GAS DEPARTMENT l
Operating Statements,1%9 through 1979.................
22 MCF Sales and Number of Customers,11 Years Actual and 3 Years Estimat ed............................................................
23 l
Analysis of Residential Gas Sales...............................................
24 - 25 Annual and Maximum Day Gas Sendouts..........................................
26 - 27 Sources of Industrial Revenue,10 Years..........................................
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The data, statements, and statistics contamed herein have !een assembledfor generalinformation p:trposes and are not in.
l tended to induce, orfor use in connection with. any so'c orpurchase ofsecuruties. Under r.: a.rumstances is this booklet or any part ofits contents to be considered a prosyctus, or as an offer to self. or the solicitation of an offer to buy, any securities.
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THE CINCINNATI GAS & ELECTRIC COMPANY 139 EAST FOURTH STREET, CINCINNATI, OHIO 45202 TELEPHCNE: 513 - 381 - 2000 BOARD OF DIRECTORS Nest A. Armstrong (3)
Chairman, Cardwell International Ltd. - Lebanon, Ohio Willsam Beckett (1)
Retired President. The Beckett Paper Company - Hamilton, Ohio Elmer R. Best (2)(3)
Retired President. The Union Central Life Insurance Company - Cincinnati Oliver W. Birckhead (2)
President and Chief Executive Officer, The Cent *al Bancorporation, Inc.
and The Central Trust Company, N.A. - Cincinnati Sanford M. Brooks (1)
Chairman of the Board Axt Chief Executive Officer, Xtek, Inc. - Cincinnati William H. Dukhoner (1)(2)
President and Chief Executive Officer. The Cincinnati Gas & Electric Company James P. Herring Retired ChairrrAn of the Board, The Kroger Co. - Cincinnati Harry #nliday, Jr. (1)
Chief Executive Officer, Armco - Middletown, Ohio William N. Liggett 12)
Chairman of the Board and Chief Executive Officer First National Cincinnati Corporation and The First National Bank of Cincinnati Donald I. Lowry Group Vice-President. The Procter & Gamble Company - Cincinnati lane L. Rees, Ph.D.
Professor and Chair of the Department of Home Economics and Consumer Sciences, Miami University Oxford, Ohio f-
- S. Rowe (1)(2)
Chairman of the Board and Chief Executive Officer, The Fifth Third Bank, and President Fifth Third Bancorp - Cincinnati Rn.ard E. Wagner Former President, and Consultant, Pepsi-Cola Bottling Company of Cincinnati B. John Yeager (1)
Chairman of the Board, The Cincinnati Gas & Electric Company (1) Member of Executive C immittee (2) Member of Finance Comrsittee (3) Member of Committee on Audit EXECUTIVE OFFICERS William H. Dickhoner President and Chief Executive Officer B. John Yeager Chairman of the Board Earl A. Borgmann Senior Vice-President Donald R. Blum Secretary Arthur R. Ehrnschwender Vice-President - Administrative Services C. Robert Everman Treasurer R. Gregory Graham Vice-President - Customer Relations Faul W. Herking Vice-President - Gas Operations l
William J. Moran General Counsel l
Jackson H. Randolph Vice-President - Rates and Economic Research Milton L. Van Schoik Controller I
Robert P. Wiwi Vice-President - Electric Operations William H. Zimmer, Jr.
Vice-President - Finance PUBLIC ACCOUNTANTS PREFERRED SHARES LISTED ON Arthur Andersen & Co.
New York and Cincinnati S*ock Exchanges 103 East Fourth Street, Cincinnati, Ohio 43202 TRANSFER AGENTS FOR PREFERRED SHARES COMMON SHARE 5 LISTED ON The First National Bank of Cincinnati New York, Cincinnati, Midwest and Pactfic Stock P. O. Box 2038, Cinctnnati, Ohio 43201 Exchanges Stanufacturers Hanover Trust Company TRANSFER AGENTS AND REGISTRARS Four New York Plaza New York, N.Y.100/3 FOR COMMON SHARES REGISTRARS FOR PREFERRED SHARES The First National Bank of Cinemnati The Central Trust Company, N.A.
P. O. Box 2038, Cuncmnati, Ohio 43201 F{fth and Main Streets, Cincinnati, Ohio 43202 f
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Manufacturers Hanover Trust Company Sforgan Guaranty Trust Company of New York Four New York Plaza, New York, N. Y.10013 30 West Broadway, New York, N. Y.10013 TRUSTEE FOR BONDS AND INTEREST PAYING AGENT ADMINISTRATOR OF DIVIDEND REINVESTMENT trvmg Trust Company AND STOCK PURCHASE PLAN One Wall Street, New York, N.Y.10013 The Central Trust Company, N.A.
Corporate Trust P.O. Box 1198, Cincinnati, Ohio 43201 L
3-THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES HISTORY - The Cincinnati Gas & Electric Company, which was incorporated April 3,1837, under the name of The Cincinnati Gas Light & Coke Company is one of the oldest business institutions in Ohio, it started business on January 14,1843 as a small gas supplier and entered the electric business in 1894. The present name of "The Cincinnati Gas & Electric Company" was adopted in 1901.
SUBSIDIARIES AND SERVICE AREA - CG&E furnishes gas and electric services in Cincinnati, Ohio and adjoining territory in southwestern Ohio. Sub-sidiaries of CG&E and their service areas are:
(1) The Union Light, Heat and Power Company which sup-plies a portion of northern Kentucky with electricity and gas; (2) The West Harrison Gas and Electric Company which pro-vides electric service in and around West Harrison, Indiana; (3) Lawrenceburg Gas Company, a distributing company pro-viding gas service in southeastern Indiana; (4) Lawrenceburg Gas Transmission Corporation which trans-ports gas from supplier's lines to Lawrenceburg Gas I
Company and to the Ohio-Indiana border for delivery to CG&E; 1
(5) Miami Power Corporation which owns and operates an electric transmission line connecting CG&E's system with i
that of the Louisville Gas & Electric Company; (6) Tri-State Improvement Company which is a real estate development company; and (7) YGK Inc. which is a rail and barge terminal company or-ganized to service Zimmer Station.
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All subsidiaries of CG&E are included in the consolidated financial statements, charts and statistics in the following pages.
FOR FURTHER INFORMATION, REFERENCE IS MADE TO THE 1979 l
ANNUAL REPORT OF THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES.
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s THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES STATEMENT OF INCOME (4000 Omitted) 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 OPERATING REVENUES Electnc 153,012 168.241 187,996 208.098 231,515 273.515 324.510 352.419 450,182 493,323 518.916 Gas 94.280 95.388 106.376 117.937 117,706 142.571 155,358 194,714 239.684 279.353 306.910 Totel operatog revenues 247.292 261,629 294.372 326.035 349,221 416.086 479.868 547,133 689.866 772.676 825.826 OPERATING EXPENSES Gas purchased 56,748 57.893 68,754 75.528 75.471 95.560 116.915 140.583 168.435 199.309 232.055 Fuel used m electric producten 21.605 27.982 37.605 44.358 51.970 90.078 116.089 136.982 161.934 194.126 216.279 Other operaten 43,436 46,552 47.172 45,613 46.980 54.298 53,381 55.885 81.946 92.896 83.673 Mantenance 14.862 15,629 17.804 18.058 18.867 23.853 25.094 28,674 39.858 43.822 50,337 P'rovis on for dspreciation f al 19.804 21,696 24.651 27,655 32,118 34,836 38,467 41,174 43,921 47,693 49.711 faxes other than income tanes 20.889 24.388 26.906 29.220 33,115 36,097 39,593 44,971 48.671 55.139 59.941 incorr a tanes 25,788 20,170 18,443 20,324 20.605 11,351 4.820 8.283 23.059 14.693 (6.708i Deferred income taxes-net (758)
(809)
(879)
(719)
(532) 15781 807 463 396 1.105 150 investment tan credits-net 1.467 1,419 1.602 3.054 3.081 3,287 7,433 7.690 15.082 17.501 28.000 Total operatog esponses 203.841 214,920 242.058 263.091 281.675 348,782 402.599 464.705 583.302 666.284 713.438 OPERATING INCOME 43.451 46,709 52.314 62,944 67,546 67,304 77,269 82,428 106,564 IM,392 112,388 OTHER INCOME ANO DEDUCTIONS Allowance for funds used during construction-All funds 5.078 7.119 7,330 8,966 Other funds ussed durmg construction 4.979 4.501 5.572 6.884 9.290 11.243 19,218 Other income anr1 deductions - not (271) 12 6)
(74)
(8 96 297 54 452 19 42.781) 215 614 Totit othee income and deductions 4.807 7.093 7,256 8,877 5.276 4,555 6.024 6.903 6.509 11.458 19,832 INCOMC dEF(in INTEREST CHARGES
_48.258 53.802 59.570 71.821 72,822 71,859 83.293 89,331 113.073 117,850 132.220 INTFREST CHARGES Interost on iong term debt 11,877 14,241 19.954 23.844 26.060 30.016 38,320 41,086 46,415 50.133 61.052 Ott w interest 1.440 2,649 1.910 853 1,054 2.804 1,887 1.9 5 ".
',239 1.290 2.977 Amortizatiori of debt discount, premium and esponse (13)
(201 (18)
(20) 427)
(35)
(21 14 39 27 20 Allowerce for borrowed funds used durmg construction-credit 14.434) 16.436)
(6.650)
(8.118)
(10,735)
(11,332) 417,5y)
Net interest charges 13.304 16.870 21.846 24.677 22,653 26,349 33.555
,,4.934 36.958 40,118 46.472 NET INCOME 34.954 36,932 37,724 47.144 50.169 45,510 49.738 54.397 76,115 77,732 85,748 Preferred dividends 1,698 3,245 4,953 7.036 7.928 9,774 11,641 15.758 15,924 15.924 15,924 EARNINGS ON COMMON SHARES
_33,256 33,687 32.771 40.108 42.241 35,736 _
38.097 38.639 60.191 61.808 69.824 AVERAGE N'JM8ER OF COMMON SHARES OUTSTANOtNG (000 omitted) 15,602 15.502 16.001 17,000 18.700 18,700 20,233 21,000 21,450 24.253 26.964 EARNINGS PER COMMON SHARE - 6 2.14 2,17 2 04 2.35 2.25 1.91 1.88 1.84 2.80 2 54 2 59 Note:
la)
Effective August 1.1976 CG&E increased its annual provision for depreciation approsi.nately 4500.000, and in August,1977 tretroactive to January 1, 1977) epproximately 41.2 rrnihon, lhese increases were authorized by orders of The Public Utatoes Comtrussion of Ohio changmg depreciation accruel rates applicable to 9as and electric plant, respectively.
s
w THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES FINANCIAL STATISTICS 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Common Share Data Cash dividends declared per sharo - 8 1.42 1/2 1.51 1/2 1.56 1.58 1.84 1.64 1.64 1.64 1.79 1.90 1.96 Pay out rate - %
66 6 69.8 76.5 67.2 72.9 85.9 87.2 89.1 63.9 74 8 75.7 Market price - 8 H@
32 28 1/2 29 1/2 26 7/8 251/2 23 1/4 18 7/8 23 1/2 25 7/8 235/8 21 118 Low 22 3/4 21 22 1/2 21 5/8 18 3/4 13 1/8 14 3/4 17 20 3,4 19 3/8 16 1/2 Close 24 27 7/8 26 118 25 1/4 22 1/4 14 1/2 18 7/8 22 7/8 23 1/8 20 16 5/8 Yield - % tal 6.3 5.6 60 6.5 7.4 11.3 8.7 7.2 80 98 11.8 Prce earrungs ratio - Tarnes ibn 11.2 12.8 12.8 10.7 9.9 7.6 10 0 12.4 8.3 7.9
- 6. 4 Book value per veer end share - $
13.74 14.37 15.61 16.36 17.69 17.94 17.75 17 91 19 28 19 84 20 43 Average annual dividend rate on preferred st :k - %
4.24 6.60 6 60 6.89 6.89 7.51 7.51 7.96 7.96 7.96 7.98 Average annualinterest rate on long-term debt - % (c) 4.62 5.43 5.71 5.71 6 06 6.73 7.07 7.24 7.31 7.56 7.83 Capitellsaten Ratsoe - %
Cornmo.i equity 39.4 34.0 35.0 34.3 35 5 33.8 34.3 30 8 35 8 37.1 34.7 Preferred shores 7.4 11.4 9.9 14.2 12.3 15 6 14.2 16.4 15.7 14 0 12.5 53.2 54.6 55.1 51.5 52.2 50 6 51.5 52 8 48.5 48 9 52.8 Long term debt Total 100.0 100.0 100.0 1000 1000 100 0 100 0 100 0 100 0 100 0 1000 Sources of Revenue - %
Electnc 61.9 63.5 63.9 63.8 66.3 65.7 67.6 64.4 65.3 63 8 62 8 Gas 38.1 36.5 36.1 36.2 33.7 34.3 32.4 35 6 34.7 36.2 37.2 Total 100 0 100 0 1000 100.0 100.0 100.0 100 0 100 0 100.0 1000 100;O_,
Average Annual Book Depreciaten Rate - % Id) 2.9 2.9 2.9 2.9 3.1 3.1 3.1 3.1 3.3 3.3 3.3 Payroll Statistes Average number ot employees 4.483 4.614 4.706 4.620 4.555 4.572 4.545 4.399 4.376 4.518 4.689 Total payroll including constructen etc. (8000 ometted) 42.943 46.737 49.874 51.097 54.137 57.748 61,116 65.271 71.759 79.942 90.554 Average annuai wage - S 9.579 10.129 10.598 11.060 11.885 12.631 13.447 14.838 16.398 17.694 19.312 Notes:
(a) Based on year and close price and indicated annual dividend rate at year end.
Ibl Based on year end close price.
(c) Excludes current portion of twst mortgage bonds.
(d) Based on weighted everage depreciable property in service during the year.
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THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES BALANCE SHEET DECEMBER 31
($000 Omitted)
ASSETS 1970'---
1971-1972-1973-1974-1975-1976-1977-1978----
1979-1969 PROPERTY, PLANT AND EQUIPMENT, st originsi cos: (Detad on page 111 826.231 927.981 1,053.582 1,156.844 1,263.804 1.387.765 1,514.288 1.620,326 1,760,026 1.957.983 2.213.749 l
Less-Accumulated provisions for depreciation 222.397 240.088 251.856 272,105 296.757 323.285 350.995 369.144 406.230 447,348 484.906 603 834 687,895 8C1,726 884.739 967.047 1,064.480 1.163.293 1.251,182 1,3 E 3,796 1,510.635 1,728.843 OTHER PROPERTY ANO INVESTMENTS Non-utility property 8.028 7,734 8.345 8.436 9.435 10,284 11.020 12.144 6,791 7.322 7.029 investment m Dhio Valley Electric Corporation, et cost 1,579 1.506 1.434 1,363 1,290 1,219 1.146 1.075 1,002 931 900 Other mvestments 744 737 744 654 842 1.026 1,068 1.194 1,109 1.127 898 10.351 9.977 10,523 10.453 11,667 12.529 13.234 14.413 8.902 9.380 8.827 CURRENT ASSETS Cash 4.631 3.229 5.079 6.422 7.738 6.476 5,415 6,718 3.981 10.332 6,199 Short term investmente, et cost 3.029 2.674 1.197 2.997 11,979 2.966 300 Accounte receivable-not 24,177 23.591 24.927 32.047 28.097 44.445 42,187 70,722 69,153 80.199 81,256 Metenets, supphes and fuel, et everage cost 12.043 17,642 18.798 23.948 25.833 39.922 43,591 48.278 61.709 59.038 78.333 Propeyments and other 9.330 12,381 14.987 15.650 17,049 20.826 30.116 36,350 37,172 43,366 73.134 50.181 59.872 63.791 77,067 81.391 112.866 124,306 174.047 172.015 195.901 239,222 OTHER ASSETS 1.230 1,536 1.646 1,339 1.274 1,691 3,718 3.278 2,901 3.357 3.943 665.596 759.280 877,686 973.598 1.061,279 1,191,566 1.304.551 1.442.918 1,537.614 1,719,273 1.980.835 LIA81LITIES AND SHAREHOLDER $' EQUITY CAPITAUZATION (Osted on page 7)
Common shareholders' equity 212.998 222.714 265.397 278.109 330,881 335.395 372.723 376.134 456.849 530.815 556,504 Cumuletsve preferred sheees 40.000 75.000 75.000 115.000 115.000 155,000 155.000 200.000 200.000 200.000 200.000 Long term esbt 287.682 357.382 417.212 416,746 487,793 501.936 560.753 644.333 618.876 698.974 846.652 Totes capitehret.on 540.680 656.096 767,609 809.855 933.674 992.331 1.088.476 1.220,467 1,275.725 1,429.789 1.603.156 CURRENT LIA81uTIES Current portion of bonds 53 53 54 63 63 45.573 54 54 15.054 5,054 58 Notes payable - bank 14.200 4.922 11,138 23.679 7,230 11.530 29.626 22.907 1.850 5.000 25.290
- commercial pepe' 16.000 2,000 19.000 8.000 24,250 4.000 17,950 51,350
- otho' 432 394 402 413 456 1.104 947 720 489 499 554 Accounts payable 15.035 16.214 18,579 20.007 19.891 30.981 34.617 46.160 64.237 65.602 75,446 Divusends payable on common shares 5.813 6.046 6.630 6.970 7.667 7.667 8.610 8.610 10.902 13.112 13.347 Accrued tones 31,832 33.580 35.066 40.239 43.098 44.239 46.414 54.209 67,048 59.467 45.589 Accrued enterest on debt 1.646 2.064 2.818 2.890 5.045 6.040 6.867 8.083 7.926 9.471 13,214 Other current end eccrued liebehties 5,153 5.385 7.119 7.568 7,821 7.575 8,124 11,371 12,570 14.421 17,075 90.164 68/ 58 83.806 120,829 91,271 162.709 159.509 152,114 184,126 190.576 241,923 DEFERRED CREDITS AND OTHER Deterred mcome tones Accelerated amorts stion 13.400 12.677 11.954 11,231 10,508 9.784 9.061 8.338 7.615 6.791 6,228 Liberetured depreciation 7,000 6.914 6.758 6.762 6.953 7,098 7.815 8,627 9.527 10.342 11.403 Other 12.259 12,638 12.856 13.966 13.618 investment tea c:edite 6.249 7,668 9,269 12.324 15,405 18.692 26.125 33,337 46.290 61,538 86.257 Other heLilities and deferred credits 8.103 8,287 8.290 12,597 3.488 952 1.306 7.397 1.475 6.271 18.250 34,752 35.526 36.271 42.914 36.334 36,526 56,566 70.337 77.763 98.908 135,756 665.596 759.280 877.686 973.598 1.061,279 1,191,566 1,304,551 1.442.918 1,537.614 1.719.273 1,980.835
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Do THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES CONSTRUCTION EXPENDITURES AND PLANT RETIREMENTS
($000 Omitted) fstmeted 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 TotW 1980 1981 1982 CONSTRUCTION EXPENDITURES Electnc Department Prasuce 52,379 84.719 59.591 74.023 83.408 89.975 93.180 108.560 146.907 192.722 985.464 207.852 115.487 170.946 Transtmsson 12.560 12.178 13.270 13.232 14.143 16.577 13.932 16.450 19.531 21.358 153.231 19.510 18.861 17.525 Distnbum 23.501 25.216 26.653 29.034 29.344 26.776 19.974 21.471 30.136 37.677 269.782 37.370 35.996 42.852 O*" M 2.691 6.544 3.881 1.637 1.9b 2 1.479 753 1.008 1.996 3.575 25.516 4.621 3.733 4.033 Total Electnc 91.131 128.657 103.395 117.926 128.847 134.807 127.839 147.489 198.570 255.332 1.433.993 269.353 174.077 235.356 Gas Depee+ ment Producten 21 48 129 92 121 34 288 42 106 391 1,272 395 770 100 Storage 2.000 184 92 8
2 5
18 22 11 2
2.344 60 130 Trenarmsson 6
8 1
3 9
34 1
3 124 189 75 Distreuten 2.427 9.072 7.048 5.967 5.692 5.710 3.988 4.562 5.956 10.554 67.976 13.517 14.182 15.908 General 978 655 415 404 103 97 217 531 916 942 5.458 1.961 1.156 1.226 Total Gas 12.432 9.967 7.685 6.474 6.127 5.880 4.512 5.160 6.989 12.013 77.239 16.008 _16.108 17.364 Common 4.325 2.471 2.047 915 725 873 777 997 784 2.157 16.075 2.242 1.187 1.191 Other tal (230) 615 373 689 879 734 700 585 533 1204) 4.674 Total E mpnditures 107.658 141 710 113 500 126.004 136.578 142.294 133,828 154.231 206.876 269.298__t 531.9 7 7 287,603 191,372_253 911 1
a PLANT RETIREMENTS 6.209 15.496 10.139 17.953 11.806 14.825 26.632 20.042 8.371 13.802 145.275 10.337 10.147 11.243 Note:
tal Consists of "norvetehty" wtsh is included in **0ther Property And investments" on the betence sheet.
O
THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES SOURCES OF FUNDS FOR CONSTRUCTION EXPENDITURES
($000 Omitted)
Total 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1970 - 1979 SOURCES OF FUNDS Operations Earnings on common shares 33.687 32,771 40.108 42,241 35.736 38,097 38.639 60,191 61.808 69.824 453.102 Less-Davidends declared on common shares 23.485 25.351 26.860 30.668 30.668 33.497 34.440 38.832 46.639 52.964 343.404 10.202 7.420 13.248 11.573 5.068 4.600 4.199 21.359 15.169 16.860 109.698 Non-cash provisions deducted m arriving at earnings on common shares Depreciation 21,696 24.651 27.655 32,118 34.836 38.467 41,174 43.921 47.693 49,711 361.922 Defereed income tames-not (809)
(8799 1719) 1532)
(578) 807 463 396 1,105 150 15961 investment ten credits-net 1,419 1.602 3.054 3.081 3.287 7.433 7,213 12.953 15,248 24.719 80.009 Total allowance for funds wed dunny construction 17,119)
(7.330) 18.966) 19.4131 110.937)
(12.2221 115.002)
(20.025)
(22.575) 136.7951 1150.384)
Funds provused by operatione 25.389 25.464 34.272 36.827 31.676 39.085 38.047 58.604 56.640 54.645 400 649 Financing Common shares 36,517 42,500 34.500 61,425 60,752 8.954 N..o,.
Cumulative preferred shares 35.000 40.000 40.000 4 5.tA~
160.000 Fwst mortgage bonds 70.000 60.200 70.000 60.000 60.000 75.000 85.000 100.000 580.200 Other lon9 term debt 158 86 9
148 781 124 10.127 110 8
48.109 59.658 Repayment of long term debt (4931 (446)
(455) 14766 (519)
(46.064) 17656 410.791)
(15.507) 15.545) 181,061)
Increase Idecreasel in short term debt - not 125.278) 8.216 29.541 (35.449) 12.913 33.974 (31,1881 417.0441 17.073
%3.705 46.463 Funds provided by financan9 79.385 104.573 69.095 76.723 113.175 82.534 98.174 33.700 147.326 205,223 1.009.908 Other Sources of Funds - not Decrease (increasel in not current assets lancluding short-term debt and temporary investmental 12,852)
(2 61 15.814) 4,198 (19.973) 11.509)
(16,958) 24.353 (21,580) 143.389)
(83.550)
Decrease imcreasel in temporery nvestments (3.029) 3.029 42.674) 1.477 (1.800) 48.982) 11,979 12.966) 2.666 1300)
Other - not 1.646 1.340 6.981 1.517 1714)
- 11. 32 8.545 5.570 4.881 13.358 54.886 Funds provided trom other sources (4,2356 4.343 1.167 3.041 (19.210) 8.453 (17.395) 41.902 (19.665) 127.365) 428.9641
. Total Funds for Construction from above Sources 100.539 134.380 104,534 116.591 125.641 130.072 118,826 134.206 184.301 232.503 1,381,593 Total Allowance for Funds used dunng Construction 7.119 7,330 8.966 9.413 10.937 12.222 15.002 20.025 22.575 36.795 150.384 CONSTRUCTION EXPENDITURES 107,658 141,710 113.500 126.004 125.578 142.294 133.828 154.231 206.876 269.298 1.531.977 Amount Percent 1970 - 1979 Internal sources 522.069 34 Entemet sources 1.009.908 66 Totes 1.531.977 100 e
o THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES TOTAL ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION, INVESTMENT TAX CREDITS, AND TAX EFFECTS OF ACCELERATED AMORTIZATION AND LIBERAllZED DEPRECIATION
($000 Omitted)
Total Allowance for investment Accelerated Funds Used Tax Credits -
Amortization -
Liberalized Depreciation (b)
During Construction (a)
Net of Amortization Normalized Normalized Flow Throug Actual 1969 5,078 1,467 (723)
(35) 2,732 1970 7,119 1,419 (723)
(86) 3,052 1971 7,330 1,602 (723)
(156) 3,875 1972 8.966 3.054 (723) 4 5.637 1973 9.413 3,081 (723) 191 6,430 1974 10,937 3,287 (723) 145 8,017 1975 12.222 7,433 (723) 716 10,232 1976 15,002 7.690 (723) 812 8,722 1977 20,025 15,082 (723) 901 8,807 1978 22,575 17,501 (716) 988 7,944 1979 36,795 28,000 (563) 1,061 7.075 Estimated 1980 46,293 25,913 (464) 4,590 3,624 1981 20,736 3,264 (464) 27,122 (2.972) 1982 24,456 (16,261)
(464) 21,394 1,808 Notes:
(a) Reflects pre-tax rates of 6% % until May 1,1969,7 % until January 1,1970,7% % until January 1,1979,8% %
until January 1,1980, and a net-of tax rate of 8% % thereafter.
(b) Effective January 1,1972 CG&E adopted, for Federalincome tax purposes, ADR depreciation and the deduction of costs incurred in the retirement of property. Beginning in 1980, the Public Utilities Commission of Ohio authorized normalization for the tax effects resulting from the use of liberalized depreciation for plant additions from October 1978 forward.
THE CINCINNAT! GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES DETAll OF PROPERTY AT DECEMBER 31
($000 Omitted) 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Electre Department Producton 236.268 278.364 317.467 371.961 426,399 476,150 556.020 551.626 554,993 644.464 679,880 Transtmssion 91.406 106.557 124.309 131.677 138.455 147.872 156.709 168.813 181,666 194.855 204.489 Distnbuten 221.698 234.688 255.339 276.607 289.046 309.467 334.196 357.759 387.828 408.889 431.610 Gener al 11.079 12.548 14.827 23.221 25.265 26.281 27.070 27.563 28.235 29.033 30.625 Constructen work in pro 9tess 80.907 95.597 131.342 137.029 164.882 203.218 210.901 282.129 370.548 439.013 612.959 Acquisiten ediustment 1.652 1.652 1.652 1.652 1.952 Total Electre 646.358 727,754 843.284 S40,495 1.044.047 1.162.988 1.286.548 1.389.542 1.524.922 1.717.903 1,961.215 o
Gas Department Producten 8.513 8.527 8.653 8.C26 8.716 8.723 8.854 9.121 9.142 9.159 9.950 Storage 2.872 4.724 4.823 4.841 4.882 4.945 3.096 3.116 3.119 3.157 3.159 Transtnissson 189 201 201 211 211 211 219 259 230 233 233 Distntmten 136.113 144.468 153.381 159.858 163.600 166.961 171.082 175.179 178.445 182.490 187.247 General 5.326 4.152 4.582 4.925 4.926 5.040 5.070 4.883 5.069 6.027 6.464 Construction work in progress 2.630 3.156 2.324 1.752 1.788 3.355 3.286 2.453 2.700 3.493 8.238 Total Gas 155.643 165.228 173.964 180.213 184,121 189.235 191.607 195.011 198.705 204.559 215.291 Common 29.230 34.999 36.334 36.136 35.636 35.542 36.133 35.773 36.399 35.521 37.243 Total 826.231 927.981 1.053.582 1,156.844 1,263.804 1.387.765 1.514.288 1.620.326 1,760.026 1.957.983 2.213.749 me me e
enen THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES ELECTRIC DEPARTMENT OPERATING STATEMENTS
($000 Omitted) 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Electic Revenues Residentist 62.215 67.501 74,976 81,155 89.097 100.899 125.887 132,093 161,531 180.476 186.216 Commercial 37,943 41,877 47.824 53.981 61.109 69.758 83,786 91,534 120.399 129.402 135.705 Industrial 38.790 41.822 47,988 53,788 59.870 73.151 83,188 94.748 123.721 136.903 146.490 Other retail 11.024 12.243 13.979 15.425 16.896 20.277 25,626 27.989 36.422 38.392 41.012 Totai reted 149.972 163.443 184.767 204.349 226.972 264.085 318.487 346,364 442.073 485.173 509,423 Other utdaties 1.699 1,153 1.353 1.592 2.238 6.907 2.967 2.724 3.727 3.920 4.530 Total 151.671 164.596 186,120 205,941 229.210 270.992 321.454 349.088 445.800 489.093 513.953 Other revenues 1,341 1,645 1.876 2.157 2.305 2.523 3.056 3,331 4.382 4.230 4.963 Total 153.012 166.241 187.996 208.098 231.515 273,515 324,510 352.419 450.182 493.323 518.916 s
Operating Espenses Fuel used en electnc production 21.605 27.982 37.605 44.358 51.970 90.078 116.089 136.982 161.934 194.126 216.279 Other operation 32.553 33.643 34.073 32.743 34,201 40.984 38.946 40.125 60,658 70.573 61.773 Maintenance 11.492 11.832 14.039 14.109 14,846 18.635 19,488 22.633 32.878 36.482 42.614 Provision for depreciatum ta) 16.055 17,720
- to.352 23,068 27.382 29.397 33.505 35.574 37.818 41,486 43.358 Tenes other than income tanes 15.428 18.042 20.283 22,069 25.445 28.114 30.812 35.257 37.280 41.681 45,315 Ine.ome tones 21.042 17,929 16.999 17,502 17.825 7.621 7,648 3.952 14.024 3.723 113,127)
Deferred income tones not (758) 1795)
(849) 1724)
(550) 1504) 60 567 493 1.043 328 investment ten credits - not 1,399 1,372 1.472 2,816 2.902 3.138 7 047 7.416 14.569 16.893 27.118 Total operating empenses 118.816 127,725 143.974 155,941 174.021 218.063 253.495 282,506 359.654 406.007 423.658 Operating income 34.196 38,516 44.022 52.157 57.494 55.452 71.015 69.913 90.528 87.316 95.258 Source of Electre Revenues Resedential 40.7%
40 6%
39.9%
39 0%
38 5%
36.9%
38 8%
37.5%
35 9%
36 6 %
35.9%
Comanercial 24.8 25.2 25.4 25.9 26.4 25.5 25 8 26 0 26.7 26 2 26.2 industnal 25.3 25.2 25.5 25 9 26.9 26.7 25.6 26 9 27.5 27.8 28.2 AH other 9.2 90 92 9.2 9.2 10 9 98 96 99 9.4 9.7 Total 100.0 %
100 0%
100.0 %
100 0%
100 0%
100 0%
100 0%
100 0%
100 0%
100 0 %
100 0 %
Note:
tel Beginning in August,19 77, CG&E increased its annual provision for deprecianon (retroactive to January 1,1977) oppromwnately $ 1.2 muleon. Thas increase was authorised by an order of The Pubhc Utihties Commession of Ohao changing deprec6ation accruel rates applacable to electric plant.
THE CINCINNATI GAS & ELECTftlC COMPANY AND SUBSIDIARY COMPANIES ELECTRIC DEPARTMENT KWH SALES AND NUMBER OF CUSTOMERS E stimated 1989 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 KWH Sales (000.000 Ometted)
Resadential 2.59S 2.808 3.042 3.228 3.510 3.574 3.969 4.068 4.569 4.728 4.822 5.035 5.236 5.425 Commercial 1.928 2.124 2.209 2.398 2.632 2.644 2.755 2.873 3.057 3.069 3.182 3.272 3.408 3.509 Industnel 3.642 3.722 3.926 4,118 4.373 4.334 3.938 4.295 4.487 4.517 4.757 4.894 5.226 5.486 Other retad 698 761 800 842 887 923 1.023 1.056 1.148 1.103 1.155 1.225 1.269 1.319 Totel retail 8.854 9.415 9.977 10.586 11.402 11.476 11.685 12.292 13.261 13.417 13.916 14.426 15.139 15.739 Other utdmes 148 97 110 119 172 396 155 137 164 151 J2 131 136 142 Total sales 9.002 9.512 10.087 10.705 11.574 11.871 11.840 12.429 13.425 13.668 14.088 14.557 15.275 15.881 Source of KWH Sales (%)
Residential 28 7 29.7 30.2 30.1 30.3 30.1 33.5 32.7 34 0 34 8 34 2 34 6 34.3 34.2 Commercial 21.4 22.3 21.9 22.4 22.7 22.3 23.3 23.1 22 8 22 6 22 6 22.5 22.3 22.1 Industrial 40.5 39 1 38 9 38.5 37.8 36.5 33 3 34 6 33 4 33.3 33 8 33 6 34 2 34 5 Other retail
- 7. 8 7.9 7.9 7.9 7.7 7.8 86 85 86 82 82 84 83 83 Totel reted 98 4 99 0 98 9 98 9 98 5 96.7 98 7 98 9 98 8 90 9 98 8 99 1 99 1 99.1 Other utdmes 16 10 1.1 1.1 1.5 33 1.3 1.1 12 1.1 1.2 9
.9 9
Total Seles 100 0 100 0 100 0 100.0 100 0 100 0 100 0 100 0 100 0 1000 100 0 100 0 100 0 100 0 Customers - Year End Residential 435.130 441,871 448.914 458 #44 468.732 478.970 489.265 497.704 503.314 512.525 523,893 523.100 528.500 533.700 Commercial 45.023 45.272 46.285 47,133 48.057 48.873 49.762 50,531 51.467 61.976 53.084 52.545 53.075 53.606 Industnal 1,831 1,907 1,913 2.007 2.163 2.267 2.349 2.447 2.494 2.568 2.636 2.703 2.763 2.813 Otherroted 2.645 2.616 2.677 2.730 2.872 2.961 3.111 3.226 3.269 3.460 3.573 3.575 3.685 3.727 Totai reted 484.629 491.666 499.789 510.314 521.824 533.071 544.487 553.908 560.544 570.529 583.186 581.923 588.023 593.846 Other utdities 8
10 8
10 9
8 7
7 7
7 9
6 6
6 Total customers 4_84.637 49_1_.6_76_ _499._.7__97 51_0_.3 24. _. _52_1.8 3_.3.__53 3_ _.0 7_9_54_.4 4_945 5_3.91_5._560_.5__5.1_.__5 7_0.5 3_6_ ___58 3. _1_95. _58_.1. 9_2_9 _5 8._8_.02_9__.5._9 3._
Compound Annual Grewth 10 Years 5 Years 3 Years 5 Years Rate - KWH Sales (1970 - 1979)
(1975 - 1979) 11980 - 1982)
(19tlO - 1984)
Residential 6.4%
62%
4.0%
3.7%
Commercial 5.1 38 33 33 Industnal 2.7 1.9 4.9 56 All other 4.6
.1 33 36 Total 46 35 4.1 43 A
N e
E THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES ANALYSIS G7 RESIDENTIAL ELECTRIC SALES Residential Average No.
Average Annual Average Annual Average Annual KWH Sales Residential Of Residential KWH Per Customer Revenue Per Customer Revenue Per KWH Year t000 omitted)
Revenue Customers
~ Number
% of 1965 Amount
% of 1969 Amount G fi9Bs 1969 2,585,924
$ 62,215,114 430,803 6,003 100
$ 144.42 100 2.41 C 100 1970 2,807,831 67,500,875 438,321 6,406 107 154.00 107 2.40 100 1971 3,041,726 74,976,282 444,981 6,836 114 168.49 117 2.46 102 1972 3,227,753 81,154,940 453,549 7,117 119 178.93 124 2.51 104 1973 3,510,184 89,097,353 463,423 7.574 126 192.26 133 2.54 105 1974 3,573,776 100,899,213 473,309 7,551 126 213.18 148 2.82 117 1975 3,968,768 125,886,836 484,989 8,183 136 259.57 180 3.17 132 1976 4,067,855 132,092,877 493,031 8,251 137 267.92 186 3.25 135 1977 4.569,260 161,530,867 499,415 9,149 152 323.44 224 3.54 147 1978 4,728.350 180,475,523 506,888 9,328 155 356.05 247 3.82 159 1979 4,822,292 186,216,400 518,331 9,303 155 359.26 249 3.86 160 e
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THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES 1
ELECTRIC DEPARTMENT SOURCES OF INDUSTRIAL REVENUE 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Type of Industry Primary Metal Industries 25.1%
25.7%
25.9%
24.2%
25.0%
23.6%
24.7 %
24.7%
25.2%
24.6%
Chemicals and Allied Products 14.5 14.7 14.9 15.1 15.5 15.9 15.8 15.8 15.8 15.6 Transportation Equipment 14.3 14.1 12.4 13.3 10.2 12.2 11.9 12.1 12.1 11.9 Paper and Allied Products 8.7 8.7 9.5 9.0 9.0 8.7 8.9 8.5 8.6 8.9 Machinery (except Electricat) 6.6 6.2 6.5 7.2 7.9 7.9 7.5 7.7 7.2 7.6 Food Products 6.4 6.5 6.3 6.2 6.1 6.7 6.4 6.3 5.8 5.9 Fabricated Metal Products 4.3 4.4 4.4 4.4 3.9 4.5 4.5 4.4 4.4 4.4 Rubber and Misc. Plastic Products 3.0 3.1 3.1 3.0 2.8 2.9 3.0 J.1 3.2 3.1 Electrical Machinery 2.9 2.7 2.6 2.7 2.7 2.8 2.7 2.7 2.8 2.9 Printing 2.6 2.6 2.5 2.3 2.1 2.3 2.1 2.2 2.2 2.4 Petroleum Refining and Related industries 2.4 2.2 2.3 2.3 2.3 2.3 2.4 2.4 2.3 2.2 All Other 9.2 9.1 9.6 10.3 12.5 10.2 10.1 10.1 10.4 10.5 Total 100.0 %
100.0 %
100.0%
100.0%
100.0%
100.0%
100.0%
100.0 %
100.0 %
100.0%
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m THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES SYSTEM PEAK LOADS AND NET CAPABILITY KW Capabihty - Net At Time of Peak Annual KWH
-Generating System Peak Load - Net.
Net System Load Actual Stations OVEC(a)
Total Date KW Sendout Factor 1969 1.719.000 170,000 1.889.000 July 17 1.783.700 9,698 Milhon 62.1 1970 1.734,000 170.000 1.904.000 July 2 2.010,700 10,314 58.6 1971 2.133,000 160.000 2.293.000 June 28 2.092.800 10.870 59.3 1972 2.652.000 107.000 2.759,000 July 21 2,243.200 11.589 58.8 1973 2.966.000 107.000 3.073.000 August 30 2.439,100 12.430 58.2 1974 3,194.000 107.000 3,301.000 July 9 2.401.800 12.482 59.3 1975 3,508.000 76.000 3.584,000 August 1 2,511.400 12.772 58.1 1976 3.412,000 12.000 3.424.000 July 15 2.598.300 13.319 58.4 1977 3,308,000 12,000 3.320.000 July 20 2.841.000 14.385 57.8 1978 3.628.000 3.628.000 July 21 2.835.000 14.501 58.4 1979 3,595.000 3,595.000 August 8 2.978.000 15.081 57.8 Estimated 1980 3.588.000 137.000 3,725.000 July 3,083.000 15.569 57.5 1981 4.211,000 80.000 4.291.000 July 3.228.000 16,316 57.7 1982 4.211,000 4.211.000 July 3,344,000 16.952 57.9 Notes:
(a) CG&E*s pro-rata share of excess capacity of the Ohio Valley Electric Corporation.
(b) During 1979, approximately 98% of the electricity generated by units owned by CG&E or in which it has an ownership interest was produced by coal-fired generating units.
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PeTKWWSendout
~
Actual
' Number G fi969 Xmount Gf i969 imount
% ofis69 1969 10,685 100 25.5 C 100
.273C 100 1970 10,667 100 29.9 117
.319 117 1971 10,308 96 37.0 145
.382 140 1972 10,178 95 40.3 158
.411 151 1973 10,024 94 44.3 174
.444 163 1974 10,262 96 74.2 291
.761 279 1975 10.183 95 92.7 364
.944 346 1970 10,252 96 100.9 396 1.034 379 1977 10,500 98 111.6 438 1.172 429 i
1978 10,555 99 131.0 514 1.383 507 1979 10,409 97 139.7 547 1.454 533 Estimated 1980 10,388 97 146.2 573 1.519 556 1981 10,443 98 145.7 571 1.522 Sb8 1982 10,388 97 162.5 637 1.688 618 i
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5O 1969 2970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 S
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THE CINCINNATI GAS & ELECTRIC COMPANY AND SUF4SIDIARY COMPANIES GAS DEPARTMENT OPERATING STATEMENTS
($000 Omitted) 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Gas Revenues Residential 47.684 47.435 51.528 57.736 54.745 63.567 76.038 94.775 123.082 137.440 143.657 Commercial 17.666 18.454 20.481 23.783 23.256 27.418 32.322 40.381 50.105 58.010 61.166 Industnas 20.'323 20.782 25.734 27.805 30.716 40.161 37.369 49.321 56.856 72.756 89.250 Other reted 7.070 7.754 7.586 7.273 7.502 9.950 7.894 8.136 6.608 7.981 9.763 Totai reted 93.343 94.425 105.329 116.597 116.219 141.156 153.623 192.613 236.651 276.187 303.836 Other utdeties 223 240 284 302 405 313 349
, 593 658 728 828 Tote 93.566 94.665 105.613 116.899 116.624 141.469 153.972 193 206 237.309 276.915 304 664 Other revenues 714 723 763 1.038 1.082 1.102 1.386 1.508 2.375 2.438 2.246 Total 94.280 95.388 106.376 117.937 117.706 142.571 155.358 194.714 239.684 279.353 306.910 Operateg Empenses Gas purchased 56.748 57.893 68.754 75.628 75.471 95.560 116.915 140.583 168.435 199.309 232.055 Other operation 10.819 12.909 13.099 12.870 12.779 13,314 14.435 15.760 21.288 22.323 21.900 Maintenance 3.365 3.797 3.765 3.949 4.021 5.218 5.606 6.041 6.980 7.340 7.723 Provision for depreciation Ie) 3.749 3.976 4.299 4.587 4.736 4.839 4.962 5.600 6.103 6.207 6.353 Temos other than income temos 5.459 6.346 6.623 7.151 7.670 7.983 8.781 9.714 11.391 13.458 14.626 income taxes 4.746 2.241 1.444 2.822 2.780 3,730 12.7286 4.T11 9.035 10.970 6.419 Deferred encome tames - not (14) 130) 5 18 474) 747 (1046 (9 73 62 11781 Investment tan credits not 68 47 130 238 179 149 386 274 513 608 882 Total operatirg empenses 84,954 87.195 98.084 107,150 107.654 130.719 149.104 182.199 223.648 260.277 289.780 Operating income 9.326 8.193 8.292 10.787 10.052 11.852 6.254 12.515 16.036 19 076 17.130 Source of Gas Revenues Residential 50 6 %
49.7%
48 4%
48 9%
46 5%
44.6%
48 9%
48.7%
51.4 %
49 2%
468%
Commercial 18.7 12 4 19.3 20.2 19 8 19 3 20 8 20.7 20.9 20 8 19 9 Industrial 22.2 21.8 24.2 23 6 26.1 2 8. '
24.1 25.3 23.7 26 0 29.1 All other 85 9.1 81 7.3 7.6
- 8.,
62 5.3 40 40 42 Total 100 0%
100 0%
100 O_%
100 0%
100 0%
100 0%
1_00_0 %
100 0% _ 1_00 0 %
100 0%
100_0 %
Statistics Mct of gas purchased 4000 orrutted) 135.779 132.705 137.907 142.026 134.350 134.485 110.216 115.723 100.352 109.753 111.890 Average cost per Mct - C 41.79 43.63 49 86 53.18 56.17 71.06 106.08 121 48 167.84 181.60 207.40 Note:
tal Effective August 1.1976 CG&E increased as annual provis.on for depreciation oppe@ete'.f $ 500.000.This mcrease wee authonud by en order of The Pubhc Utsleties Commission of Ohio changing depreciation accrual rates applicable to gas plant.
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THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES GAS DEPARTMENT MCF SALES AND NUMBER OF CUSTOMERS E stwneted 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 MCF Sales 1000 Omitted)
Resedental 53.550 51,646 53.044 55.182 50.137 50.201 48.527 50.156 48.769 50.312 48.213 45.893 46.493 47.091 Comrnacial 22.866 23.269 24.463 26.047 24.072 24.114 22.356 22.902 21.238 22.589 21.837 21.888 22.274 22.596 andustnal 42.427 40.185 47.641 47.945 47.474 47.687 31.433 33.823 27.465 32.004 35.929 47.877 49.818 50.868 Other reted 3 861 16.432 13.026 10.345 10.443 11,871 5.673 4.913 2.942 3.228 3.649 6.744 6.666 6.658 Totei reted 133.704 131.532 138.174 139,519 132.126 133.873 107.989 111.794 100.414 108.133 109.628 122.402 125.251 127.213 Other utdatwa 514 524 561 567 695 482 477 623 542 619 455 469 469 469 Total sales 134.218 132.056 138.735 140.086 132.821 134.355 108.466 112.417 100.956 108.652 110.083 122.871 125.720 127.682 Annual De9 tee Days -
Sining 5.321 5,094 4.928 5.362 4,725 5.034 4.712 5.360 5.749 6.145 5.669 5.0 70< el 5.070tal 5.070tel Soure.e of MCF Sales (%)
Residental 39 9 39.2 38.4 39 4 37.9 37.4 44 8 44 6 48.4 46.3 43 9 37.3 37 0 36.9 Commercia:
17.0 17.6 17.6 18 6 18.1 17.9 20 6 20.4 21.0 20 8 19 8 17 8 17.7 17.7 andustrial 31.6 30 4 34.3 34.2
~17 35 5 29 0 30.1 27.2 29.4 32.6 39 0 39 6 39 8 Other reted 11.1 12.4 9.3 7.4 7.8 8.8 5.2 4.3 2.9 30 33 5.5 63 52 Totai retag 99.6 99 6 99.6 99 6 99 5 99.6 99 6 99.4 99.5 99.5 99.6 99.6 99 6 99 6 Other utdates
.4
.4
.4
.4
.5
.4
.4
.6
.5
.6
.4
.4
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.4 Total sales 100 0 100 0 100 0 100.0 100 0 100 0 100 0 100 0 100 0 100.0 100 0 100 0 100 0 100 0 Customers - Year End Residenteal 316.778 320.980 324.995 329.029 332,873 331.919 330.290 329.295 328.701 324.919 325.090 333.553 337.906 342.250 Commercise 32.951 33.513 34,351 34.889 35.174 34.997 34,694 34.512 34,101 33.515 3 3.51.
34.184 34.515 34.846 a dustami 1.157 1.183 1,193 1.231 1.258 1.287 1.314 1,344 1.350 1,409 1,397 1.437 1.447 1.456 n
Other retag 1.140 1.068 1.121 1,127 1.135 1.125 1.128 1.136 1.122 1.144 1,152 1.144 1,144 1,144 Totai retail 352.026 356.744 361,660 366.276 370.440 369.328 367.426 366.287 363.274 360.987 361,l89 370.318 375.012 379.698 Other utdetme 1
1 1
1 1
1 1
1 1
1 1
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1 Total customers 352.027 356,745 361.661 366.277 370.441 369.329 367.427 366.288 363.275 360.988 361,190 370.319 375.013 379.699 Compound Annual Growth 10 Years 5 Years 3 Years 5 Yeare Rate - MCF Sales (1970 - 1979)
(1975 - 1979)
(1980 - 19826 11980 - 1984)
Residentel (1.01%
( 86%
t.81 %
Commercial 4.5)
I2 On 1.1 1.3 Industrial i1.6) 45.51 12.3 8.1 All oth*'
(12.4)
(19.8) 20.2 10.3 Total (2.01 (3.9) 5.1 36 Notes; f e)
U.S. Weather Sureau normal.
(b) As a result of emprovement in the natural gas supply, both CG&E and 6ts Kentucky subsidiary. The Union Ls9ht. Heat and Power Company, obtained permission en 1979 from then respective state regulatory coramessions to accept new gas customers and to serve the additional requerements of esistmg customers. encept new boder loade in excess of 300.000 cutnc feet per day.
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THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES ANALYSIS OF RESIDEN1ML GAS SALES Residential Average No.
Average Annual Average Annual Average Annual MCF Sales McMential Of Residential MCF Per Customer Revenue Per Customer Revenue Per MCF Year (000 omitted)
Revenue Customers Number
% of 1969 Amount
% of 1909 Amount
% of 1969 1969 53,550
$ 47,684,121 313,387 170.9 100
$ 152.16 100 89.05 C 100 1970 51,646 47,435,083 J17,918 162.5 95 149.21 98 91.85 103 1971 53,044 51,527.946 322,065 164.7 96 159.99 105 97.14 109 1972 55,182 57,735,764 326.441 169.0 99 176.86 116 104.63 117 1973 50,137 54,745,127 330,375 151.8 89 165.71 109 109.19 123 1974 50,201 63,566,624 331,746 151.3 89 191.61 126 126.62 142 1975 48,527 76,037,852 330,376 146.9 86 230.16 151 156.69 176 1976 50,156 94,774,681 329,094 152.4 89 287.99 189 188.96 212 1977 48,769 123,081,796 326,925 149.2 87 376.48 247 252.38 283 1978 50,312 137,439,530 324,675 155.0 91 423.31 278 273.18 307 1979 48,213 143,657,247 323,872 148.9 87 443.56 292 297.97 335 Note:
At December 31,1979,89% of the dweihng units on CG&E's gas mains were heated with gas.
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/
320
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280
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/
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Ncp THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES ANNUAL AND MAXIMUM DAY GAS SENDOUTS Calendar Mean D_egree Day Deficiencies (a)
Temperature Peak Shaving On Maximum Day Load
-Maximum Day Sendout Annual Annual in Percent Date NiCF-Capacity-MCF/ Day
(*F)
Factor Actual Sendout-MCF Total Of Normal 1969 136,984,656 5,377 106.1 January 13 738,308 188,000 6
50.8 1970 135,135,600 5.037 99.3 January 8 885.511 184,000
-2 41.8 1971 138,568,218 4.819 95.0 February 1 883,653 184,000 6
43.0 1972 142,565,602 5,474 108.0 January 15 899,853 184,000
-5 43.3 1973 134,485,478 4,784 94.4 February 16 780,842 184,000 14 47.2 1974 134,505.104 4,953 97.7 February 4 767.207 184,000 20 48.0 1975 110,215.740 4,713 93.0 December 18 720,182 184,000 16 41.9 1976 115,800,179 5,522 108.9 January 8 769,566 184,000 6
41.1 1977 101,705,220 5,699 112.4 January 16 832,446 184,000
-17 33.5 1978 109,788,975 6.031 119.0 January 9 803,489 184,000 1
37,4 1979 111,917,796 5.670 111.8 February 13 747,081 184,000 13 41.0 Estimated 1980 124.418,000 5,070 100.0 825,620 184,000 0
41.7 1981 127,319,000 5,070 100.0 839,800 184,000 0
41.5 1982 129,311,000 5,070 100.0 851,550 184,000 0
41.6 Note:
(a) Degree day deficiencies shown are those reported by the U.S. V,eather Bureau for its Station located at the Greater Cincinnati Airport in Boone County, Kentucky. The annual normal established by the Weather Bureau for this Station is 5,070 degree days, based on the 30 year period ending with the year 1970.
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19 71 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 7
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THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES GAS DEPARTMENT SOURCES OF INDUSTRIAL REVENUE 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Type of industry Primary Metal Industries 34.5 %
38.4 %
36.8%
38.1%
37.0%
36.0 %
35.8%
33.5%
37.0%
28.6%
Chemicals and Allied Products 14.1 13.2 13.0 13.3 13.3 14.2 13.8 15.6 15.6 17.9 Food Products 9.6 8.9 9.0 9.0 9.1 9.9 9.6 11.3 9.9 10.4 Ceramics 5.2 6.7 6.8 6.5 6.1 6.0 5.3 6.9 6.6 9.4 Paper and Allied Products 6.7 7.0 7.0 6.6 6.0 6.9 6.5 7.5 7.1 7.2 Fabricated Metal Products 7.4 5.9 6.3 6.0 5.0 6.0 5.t 6.0 5.4 5.3 Transportation Equipment 5.6 4.9 4.5 3.9 4.4 4.7 4.7 4.5 4.4 4.4 Machinery (except Electricall 4.4 J.8 4.2 4.1 3.9 4.2 3.9 4.4 4.1 4.3 All Other 12.5 11.2 12.4 12.5 15.2 12.1 14.9 10.3 9.9 12.5 Total 100.0 %
100.0 %
100.0 %
100.0 %
100.0 % 100.0%
100.0%
100.0 % 100.0%
100.0%
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STATISTICAL REPORT FOR FINANCIAL ANALYSTS 1959-1979 l
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Comments On Colur..%us and Southern Ohio Electric Company
TABLE OF CONTENTS Text History 2
Subsidiaries...___.. _.
2 Summary of Growth 2
Area Served._
3 Regulation..
4 Ra te Cha nges..._._......_......._..
5 Plant and Power Supply _..
6 Significant Accounting Policies..
7 Proposed Acquisition 7
Shareholder Information....___.
7 Management 8
Tabulations Consolidated Results of Operations 12 Consolidated Balance Sheet 14 Consolidated Capitalization 16 Electric Plant _.._ ___
18 Consolidated Statement of Sources of Funds for Property Additions 18 Financial Ratios and Data 20 Sales, Revenues and Customers 22 Detail of Taxes 24 Subsidiary and Other income and Deductions 24 Consolidated Statement of Retained Earnings 24 Energy Supply._
26 Fuel Statistics...
28 Wholly Owned Subsidiaries.
30 Charts Consolidat6 i Capitalization 32 Percent of C1nsolidated Capitalization 32 Gross and Ntt Plant 33 Net Plant in Service at Year End Per Dollar of Revenue 33 Construction Expenditures 34 System Capability and Peak Load 34 KWH Sales 35 Revenues 35 Consolidated Eamings and Dividends Per Common Share 36 Consolidated Earnings on Common 36 Earnings Coverage and Rate of Return 37 Fuel and Purchased Power 38 Fuel Ccst Per Million BTU's Fired 38 Gross Payroll including Frirge Benefits 39 Residential Customers and Percent increase Over Prior Years 40 Electrically Heated Homes 40 Avetage Annual KWH Usage Per Residential Customer 40 Company Office, Representatives, etc..
Inside Back Cover This report is nct intended to induce, or for use in connection with, any sale or purchase of any securities of the Company.
February 15,1980,..
HISTORY Columbus and Southern Ohio Electric Company in 1888, was the first of 24 electric utilities which is an investor owned electric utility, growing out of the later became the Southern Ohio Electric Company.
combination of 60 electric utility, transit and steam Controlling interests in these companies was ac-heating companies.
quired by La United Light and Power System by the
'"d I 1926, and they were merged under the present The original company was the Columbus Electric name m
- 37. The Company operated as a subsidiary
_s Light and Power Company incorporated on October 1, of United Light until 1946 when common shares were 1883. By 1915 the Columbus Railway Power and Light sold on the open market and listed on the New York Company owned and operated all private electric sys-Stock Exchar.de. In 1949 the Transit operation was tems and mass transportation systems in the city of incorporated as a wholly owned subsidiary. Transit Columbus. The Nelsonville Electric Company, organized assets were sold and the subsidiary dissolved in 1973.
SUBSIDIARIES Simco inc.
Organized in 1956, Simco owns mining equipment This company was formed in 1962 to acquire and and participates in a joint venture with Peabody Coal hold property, principally for possible future industrial Company to mine coal from Company lands near Cones-sites. Colomet's net investment in these holdings was ville Station. Net investment in coal mining equipment
$4.339.600 at the end of 1979.
at December 31,1979 was $13.665,400 after deprecia-tion reserves of $13.336,500.
SUMMARY
OF GROWTH 10 years 20 years 10 years 1969 1979 1959-1G79 1959-1969 1979 1969 1959 (compounded annual rate)
(in millions)
Electric Plant Gross... _ _
13.0 %
9.5%
6.1%
$1,582.5
$464.7
$256.4 Net. _._
13.8 93 5.0
$1.288.2
$353.1
$216.4 Kilowatt Hour Sales 53 6.5 7.8 9,034 5,394 2,550 Operating Revenues 153 10.9 6.7
$416.8
$100.4
$52.4 Common Eamings 123 10.0 7.9
$46.1
$14.5
$6.8 Common Equity 13.5 9.8 6.1
$430.9
$121.2
$66.9 Common Shares-Average outstanding (1) 11 3 5.8 0.6 16.3 5.6 53 (in dollars)
Earnings Per Share (1) 0.9 4.1 73
$2.84
$2.59
$128 (1) Adjusted to reflect stock splits.
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AREA SERVED The Company serves approximately 457.000 custo-sales to commercial customers 75% and sales to indus-mers in a 6,200 square mile area of central and south-trial customers 26%. Efforts of the Company's Area ern Ohio. The rate of population growth in the Com-Development Department have been an important factor pany's service area has exceeded that of the state over in the continuing business expansion. Interested per-the past decade. Estimates indicate that this trend will sons can obtain information and assistance by contact.
continue in the future. Over the past ten years kilowatt ing Mr. W. C. Welch at the Company's general office.
hours sales to residential customers increased 78%,
COLUMBUS AREA SOUTHERN AREA About 80% of the Company's kilowatt hour sales The Company maintains offices in six cities through-and elec.tric opera!iag revenues are derived from the out this rural area, which extends south to the Ohio Columbus Area. Tha includes all of Franklin County River. The population of this service area is now esti-and parts of surrour ding counties including Delaaare mated to be 371,000, up 31,000 from the 1970 census.
to the north. Populatiin of this area is now estimated at Abundant in natural resources, southern Ohio offers 1.002,000 compared to 903.000 per final 1970 census excellent industrial sites and fine recreational oppor-figures. Columbus, the c.apital city of Ohio, ranks first tunities and contains a large center of higher education.
in area and second in population among the cities in the state. The Columbus metropolitan area is among the most rapidly growing major cities in Ohio. A political, educational, and wholesale and retail distribution cen-ter, with a wide diversity of industries, Columbus is characterited by stable economic growth.
F Poww Generstmg Facilities 1 Becktord St~on MtCHIGAN 1.AKE ERIE 54 Mega..ts*
2 W.H. Zimmer Station g
(N uclear) 7011D0 226 Megawatts
- GCLEVELAND Under Construction 3 j.M. Stuart Station l
9 AKRON (includes Peaking Unit) i 607 Megawatts
- G CANTON 2
4 Pi6*av Station j
{lncludes Peaking Unit)
-4 132 Megawatts 5
5 Walnut Station i
j j
Peaking Units l
202 Megamatts 3
w
~
6 Pedm Peaung Wt l
Z COLUM 11 Megawatts DAgON
=
7 Addison Peaking Unit
/f 14 Megawatts 3 Poston Station (includes Peaking Unit) 212 Megawatts QNCINNAh 9 Conessdie Station
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WEST VIRGINIA (Indudes Peaking Unit) 1.500 Megawatts *
'j
- Company portion of facd-ities owned jointly with The Cin(innati Gas & Electric Company and The Dnton KENTUCKY Power and Light Compans.
Service Area "1 345 KV Transmission Network -----
l l
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REGULATION REGULATORY JURISDICTION CITY OF COLUMBUS The Federal Energy Regulatory Commissbn-generally In 1954 the city established the office of Director of as to the systems of accounts, reporting and accounting Utilities in the Mayor's cabinet. Current Director is to be followed in an,1ua! reports to shareholders and the Anne C. Meier. She exercises t*1e administrative '>owers transmission and sale of electric energy at wholesale.
of the city in relation to privately owned pub!ir Jtilities perating within the city. Under the Columbus city The Public Utilities Commission of Ohio-generally as charter a referendum vote,is mandatory on any ord,-s to service, issuance of securities, accounts, rates and nance changing ratet In me event of any dsagreemed, charges (subject to "ncme rule" as explained) and cer-utility can appeal directly to the Public Utilities tain other matters. Current membeu of the Commission, appointed by the Governor, ara In 1975, a Public Utilities Review Commission was Appointed Exp es created consisting of eleven members appointed by the William S. Newcomb, Jr
- Chm. 3-01-80 2-01-85 Mayor of Columbus. Its responsibilities include review-Michael Del Bane 2-07-79 2-01-81 ing utility rates, working with other consumer groups in Stephen A. Reilly*
3-01-80 2-01-83 Ohio to present consumer positions to the PUCO and state legislature and providing a forum for citizens to
- Subject to confirmation by Senate present their concerns to the City of Columbus on rate matters. Membra are appointed for three years with terms of no :.iore than four members expiring each HOME RULE IN OHIO year.
Ine'.irporated municipalities may establish by ordi-nance the rates of service within the municipality. In RATE BASE AND RETURN the event of any disagreement, the utility can appeal directly to the Commission. Once accepted by the Com-The Ohio law, effective for all filings on or after pany, such rates become contract rates for the ordi-January 1,1976, substitutes " original cost less depreci-nance period, not to exceed 10 years. These ordinances ation reserve" for " reconstruction cost less deprecia-are generally limited to residential and small light and tion" in rate base computation. Under this law the power service.
PUCO may permit the applicant to include Construction Work in Progress in the rate base for projects which are 75% complete. This allowance may not exceed 20%
of the total valuation not including such allowance. The law requires notice to all affected incorporated munici-palities at least 90 days before filing an application.
The Company may put the applied for rates into effect nine months after the filing, subject to refund, if the PUCO has not issued an order within this period and if no order is issued by eighteen months after filing, the revenues collected after that date are not subject to l
refund. The PUCO must still rule on the final rates to be l
allowed. The law changing the rate base also allows the PUCO, at its discretion, to permit the normalization of income taxes. A Consumers' Counsel to represent resi-dential consumers in rate matters was also established by this law.
A law passed in December,1975 requires that in order for any electric light company to continue to pass through its acquisition and delivery costs of fuel, such costs shall be reviewed at a hearing by the PUCO once in every six months. At least annually, the PUCO must conduct an audit of fuel-related policies and practices.
l
RATE CHANGES Rate changes for the period 1969 through 1979 are summarized below.
Estimated Annual Revenue increase Date Purpose (See Note)
Effective increase rates for residential and other secondary voltage customers 7 and 10-71 in incorporated municipalities in Franklin County.
$6.100.000 Effective 9-72 Increase rates system wide for residential and other secondary voltage customers excluding incorporated municipalities in Franklin County and for all primary voltage customers.
$6,940,000 Effective increase rates for residential and other secondary voltage customers 7 and 12 72 in certain incorporated municipalities, excluding the City of Columbus.
$450.000 Effective Increase wholesale rates to cities of Westerville and Jackson and to 5 and 7 74 the Village of Glouster.
$409.000 Effective 9-74 Increase rates system-wide for residential and other secondary voltage customers excluding rates subject to ordinance, other than in the City of Columbus, and for all primary voltage customers.
$27.000.000 Effective 3 75 Emergency interim rate relief granted by the Public Utilities Commis-sion of Ohio authorized the Company to increase rates in certain municipalities to levels fixed by the September,1974 rate change and to apply a 9% surcharge on substantially all rate schedules.
$21.000.000 Effective 3-75 Increase wholesale rates to City of Columbus.
5265.000 Effective 6-75 increase wholesale rates to cities of Westerville and Jackson and to the Village of Glouster.
$736.000 Effective 176 increase wholesale rates to City of Columbus.
$407.000 Effective 9-76 Increase rates system-wide for substantially all rate schedules.
$23.300.000 Effective 8-77 increase wholesale rates to cities of Westerville and Jackson and to the Village of Glouster.
$950.000 Effective 2-78 Increase wholesale rates to City of Columbus.
$1,550.000 Effective 5-78 increase rates system-wide for substantially all rate schedules.
$28.680.000 Effective 3-79 Emergency rate relief granted by the PUCO in the form of en interim surcharge adjustment being the application of a 15.09% surcharge on the monthly charges, excluding fuel cost adjustment, on sub-stantially all rate scheduiss.
$36.400.000 Effective 12-79 increase rates system-wide for substantially all rate schedules. This amount in addition to the emergericy granted 3/79.
533,620,000 NOTE: The amount is the estimated annual cifect on gross revenues based on customers and sales in the year of change except for the emergency increas:, in March 1975 and the increase in September 1976 which are based on the test year 1974, and the increase m May 1978 which is based on the test year 1977.
The Company now has fuel cost adjustment clauses in substantially all rate scnedules.
9 PLANT AND POWER SUPPLY Construction Expenditures Ohio Valley Electric Corporation (0VEC)
Expenditures in 1979 for new plant and facilities, The Company is one of the sponsors of OVEC which including those to be commonly owned by the Ccmpany, supplies power to the Portsmoutn, Ohio project of the The Cincinnati Gas & Electric Company and The Dayton Nuclear Regulatory Commission (NRC). Sponsors are Power and Light Company (CCD companies) are sum-entitled to receive and obligated to pay for the right to marized below by type of plant:
receive any poner not required by NRC. Under the Com-pany's 4.3% ownership participation, maximum com-Type of Plant Total Company CCD*
mitment would be 99.000 kilowatts of the 2,300,000 (in thousands) kilowatt OVEC capacity. Actual commitment by years is shown under " Energy Supply" on pages 26 and 27.
l Production
$ 79,729
$22,682 557.047 TransmMu 5.251 4,367 884 Distribution 29,676 29.676 East Central Area Reliability Coordimtion Agreement General 265 265 (ECAR)
Total 5114.921 556.990 M
in January 1967, the Company and 25 other inter-connected electric utilities joined in ECAR. Purpose of Total investment in plant and facilities at Decem-the agreement is to further augment the reliabilty of ber 31,1979 amounted to $1,582.543.000 of which these companies' bulk power supply through study and
$465.243,000 was in CCD facilities.
evaluation of the member companies' planning and op-eration of their generation and transmission facilities.
- Company portion.
ECAR is one of nine regional councils geverned by the National Electric Reliability Council (NERC) which was formed voluntarily by the electric utility industry in 1968. NERC serves as an information source and ass 3:s the councils in formulating energy policies and programs.
Capability The Company's net summer generating capability is now 2.732.000 kilowatts.
Capacity under construction or planned for the future is summarized below:
Location Scheduled Estimated Company Ownership Completion Net Capability-lalf 1
Not Capability. KW William H. Zimmer - Nuclear - Unit 1 (CCD) 1981 792,000 28h 226,000 Walnut Station Peaking Unit 1984 195,000 100 195.000 Poston Unit 5 1987 375,000 100 375,000 Walnut Station Peaking Unit 1988 65,000 100 65.000 Poston Unit 6 1990 375,000 100 375.000 1.236.000 Total Planned retirements of combined old capacity include 27,000 kilowatts in 1980.
Should the Company be acquired by American Electric Power Company, Inc. (AEP), as discussed elsewtiere in this report, all CCD commitments would be honored. However, AEP has submitted alternate plans for consideration of the three companies. One such attemate involves the eventual termination of the common ownership of facilities.
\\
SIGNIFICANT ACCOUNTING POLICIES This report was prepared on the basis of consolidating results of operations of the Company and all its wholly-owned subsidiaries. Earnings of the subsidiaries as shown on pages 30 and 31 are included in other income. The ac-cumulated excess of subsidiary earnings over dividends paid has been added to investments on the balance sheet. All significant and appropriate inter. company items and transactions have been eliminated. The Company records revenues as billed to its customers on a monthly cycle billing basis. Revenue is not recorded for energy delivered and unbilled at the end of each fiscal period. The Company expenses fuel as it is consumed. For a more complete discussion of ac-counting policies not described herein, see page 22 of the Company's 1979 Annual Report to Shareholders.
STATUS OF ACQUISITION BY AMERICAN ELECTRIC POWER COMPANY, INC.
On February 13, 1980 the Securities and Exchange Commision (SEC) issued an order giving American Electric Power Company, Inc. permission to make a tender offer to common shareholders of Columbus and Southern Ohio Electric Company for the acquisition of the Company. We cannot determina now soon the acquisition might be con-sumated. See the 1979 Annual Report for a historical record of this matter.
SHAREHOLDER INFORMATION The Company sold 197,975 common shares in 1979, increasing the shares outstanding by approximately 1%.
The number of shareholders decreased by 1,465 or about 2.7%. The number of shares sold in 1979 reflects the pur.
chases from the Company of authorized but unissued shares of stock by the Dividend Reinvestment Service for Share-holders as well as purchases under the Employees' Thrift Plan.
Number of Shareholders Percent of Shares Held Type 1979 1978 1974 1979 1978 1974 Individuals 51,390 52,609 28,750 61.8 62.9 64.8 Institutions 2.417 2.663 1.563 38.2 y
35.2 53.807 55.272 30.313 100.0 100.0 100.0 m----
i
=
.====
Size of Holding Up to 100 shares 28,650 29,610 17,643 13.5 14.2 16.2 101 to 999 shares 23,591 24,099 11,879 42.1 43.4 43.4 1,000 shares and over 1.566 1.563 791 44.4 42.4 40.4 53.807 55.272 30.313 100.0 100.0 100.0 ammmma
=
-uma mummu ammum 1979 DETAIL Individual Accounts Size of Holdings Geographic Location No. of No. of
% of
% of
% of
% of Type Acets.
Shares Range Acets. Shares State Accis.
Shares Woman._.
-_ __ 18,898 3,593,685 1-99 _ _._.. 20.2 2.6 Ohio.._-. 31.7.
27.0 Ma n.___ __.
14,757 3,2 %,602 100
.__.. 33.2_
10.9 Florida..
9.4.
7.2 Joint Tenants.
13,282. _ _. 2,399,259 101-500.._.. 40.8 35.4 California.
8.0.
7.4 Individual Trustees
. 3,676.. _..
713,144 501-1000... 43 11.2 New York.
7.8..
_.25.7 Custodians (Minors Act) _
6%
68,511 1001-5000..
1.4.
8.5 Michigm 6.7_.
4.5 Guardian et al 81.
23,035 5001 & over 2
31.4 lilinois 4.9-... _ 5.1,
- l.. _. -
1 1
i MANAGEMENT l
BOARD OF DIRECTORS Became a a
j Name Principal Occupation Director
'l R. J. Grueser (E)
Chairman of the Board of Directors 1972 J
J. E. Arthur, MD. (C)
Otolaryngologist, Columbus, Ohio 1978 I
W. A. Carlife, Jr. (A) (C) Director of Huntington Bancshares Inc., The Huntington National Bank 1974 and Midland Mutual Life Insurance Co.
I A. G. Green (A) (E)
Retired Chairman of the Board of Directors and Chief Executive Officer 1969 4
)
Of the Company J. F. Kurtz (A) (C) (E)
Director of Midland Mutual Life insurance Co.
1962 Faculty of Accounting, Ohio State University 1
l B. T. Ray (C) (E)
President and Chief Executive Officer of the Company 1976 R. E. Waldo (A)
President of Columbus Mutual Life Insurance Company, 1977 Director of BancOhio National Bank and SCOA Industries, Inc.
(A) Member of the Audit Committee (C) Member of the Compensation Committee l
(E) Member of the Executive Committee i
i ROBERT J. GRUESER Chairman of the Board of Directors Iaa,,
l i
f Mr. Grueser (Jan. 2,1918) received his education at the Univer-f sity of Cincinnati and Ohio State University. U.S. Navy (1941-3 44). Employed as Assistant to the President,1950. Elected Vice President.1956; Executive Vice President,1971; Director,1972; g
Member of Executive Committee,1973; Elected President,1975.
Elected Chairman of the Board and Chief Executive Officer,
{
January 1977 and now continues as Chairman of the Board of l
i l
Loan Association.
l Directors. Chairman of the Board of Ohio Federal Savings and L
i BEN T. RAY President and Chief Executive Officer Mr. Ray (Sept. 19. 1925) is a graduate of Onio State University
(*49). U.S. Navy (1943-46). Employed 1951. Named Assistant to Vice President. Employee Relations,1959. Elected Assistant E
l Vice President Employee Relations,1965; Vice President, Em-
'(
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ployee Relations,1967. Elected Senior Vice President, Corp-orate Affairs,1974. Elected Executive Vice President,1976.
Elected Director,1976. Elected President and Chief Operating Officer, January 1977. Named President and Chief Executive Officer, January 1979. Member of Board of Directors of The Huntington National Bank.
W4 are Committed to pr0 Vide electric service in re"00nse to our customers' needs Consistent with sound technology and economic conditions.
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JAMES P. FENSTERMAKER FRED V. STINE EVAN E. WILLIAMS l
Senior Vice President Senior Vice President Senior Vice President j
Operations Customer Service Administration Mr. Fenstermaker (Feb. 11, 1924)
M r. Stine (Nov. 6. 1926) is a Mr. Williams (Apnl 29,1920) is is a graduate of Ohio State Uni.
graduate of Ohio State University a graduate of Ohio Uni,ersity i
versity ('49).
Employed 1948.
('49). U.S. Army (1944-46). Em-('50). Employed 1941. U.S. Army i
l Named Superintendent Poston ployed 1949. Named Manager, (1942 46). Appointed Assistant to l
l Station,1953 Manager Columbus System Engineenng,1965. Elect-the Vice President,1959. Elected Dwision,1966 Elected Vice Presi-ed Assistant Vice President - Gen.
Assistant Vice President, Commer-dent,1971. Elected Senior Vice eration and Transmission,1967; cial,1965; Assistant Vice Presi-l President. Operations. 1973.
Vice Presioent Generation and dent, Rates and Valuation.1971; i
Transmission.1973. Elected Sen-Vice President, Rates and Valua.
l ior Vice President of Customer tion,1973; Senior vice President.
Service,1976.
Administration,1977. Director of Dollar Savings.
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l JOHN P. APEL RICHARD A. BURbEAT JOHN M. EMERY Vice President Vice President Vice President. Treasurer Environmental Distribution & SerWce and Chief Financial Officer Mr. Apel (May 19,1932) is a Mr. Burgert (May 5,1929) is a Mr. Emery (Nov. 12.1920) is a grad; ate of Ohio State Uniwersity graduate cf Bliss Electrical graduate of Western Reserve Uni-('56). Employed 1966. Appointed School, Tacoma Park, Maryland versity ('42). U.S. Navy (1942-45).
Manager, Environmentat, 1974
('50) and Tri-St.'.e University, An-Auditor, Arthur Andersen & Co.
Elected Vice President, Environ-gola, Indiana ('52). U.S. Marine (1945-52). Ernployed 1952. Nam-i I
mental,1976.
Corps (1946.48). Engineer. Penn-ed Assistant to the Treasurer, sylvania Electnc Co. (1953-66).
1962. Elected Assistant Treasurer, Erroloyed 1966. Named Manager, 1963; Assistant Vice President.
Distribution Operations, 1969; 1968; Treasurer and Assistant General Manager, Division Opera-Secretary, 1973; Treasurer and tv.ns,1973. Assistant Vice Presi-Secretary,1976; Vice President, i
dent. Distribution and Service, Treasurer and Chief Financial Of.
I 1975. Elected Vice President, ficer,1976. Director of Society Distnbution and Service,1977.
Bank.
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RAYMOND A. HEIMANN JOHN H, INSKEEP W. ROBERT KELLEY Vice President, Controller Vice President Vice President I
and Chief Accounting Officer Purcnasing and Stores Electric Operations Mr. Heimann (May 17,1921) s a Mr. Insheep (Jan. 9,1920) is a Mr. Kelley (May 11,1939) is a a graduate of Ohio State Univer-graduate of Ohio State University graduate of Ohio State Unisersity sity ('43). Employed 1947. Named
('43). U.S. Navy (1943-46). Em-('62). Emc ayed 1961. Named Manager, Tax and Special Re-played 1946. Appointed Manager Manager, S y s t e m Dispatching, ports, 1958. Elected Assistant of Purchases,1960. Elected As-1974. Elected Vice President, Controller,1967; Controller,1970:
sistant Vice President, Electrical Electric Operations,1976.
l Vice President and Control'er and Operations,1964; Vice President, Chief Accounting Officer,1973.
Gene: N n and Transmission, 1967. ~,'..e President, Purchasing and Stoic,1471. -
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l di RICHARD M. McMORROW PHILIP R. McNAUGHTON EUGENE D. MEYERS Vice President Vice President Vice President Law and Risk Management Employee Relations Administrative Services Mr. McMorrow (Aug. 8,1941) com-Mr. McNaughton (June 6,1922)
Mr. Meyers (Noe. 18,1925) at-pleted his undergraduate educa-is a graduate of Muskingum Col-tended Ohio State University and i
tion at Northeastern University lege ('49). U.S. Navy (1942-45).
Franklin University. Employed and Bentley College before earn-Employed 1949. Named Manager, 1946. Named Manager. Adminis ing his Juris Dcctorate degree Employee Relations.1967 Elect-trative Services. 1967. Elected l
from New England School of Law ed Assistant Vice President, Em-Assistant Vice President. Admin-l
('68). U.S. Coast Guard and the playee Relations, 1974: Vice istrative Services, 1974; Vice Coast Guard Reserve (1964 70).
President, Employee Relations.
President. Administrative Serv-l Elected Corporate Secretary, 1976.
ices, 1976.
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1976; Vice Nsident. Law and Risk ManagerMc.it,1979, 5
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ROBERT E. SISINGER STANLEY P. TOMESEK WILLIS C. WELCH l
Vice President Vice President Vice President Rates and Corporate Affairs Ccrporate Planning Land Management Mr. Sisinger (Feb. 22,1927) at-Mr. Tomesek (Nov. 14,1923) is Mr. Welch (June 20,1924) is a tended Ohio State Unnersity. U.S.
a graduate of Ohio State Univer-graduate of Tennessee Polytech.
Navy (1944-46). Employed 1948.
sity 049). U.S. Air Force (1943-nical institute (*53). U.S. Navy l
Named Manager. Public Affairs.
46). Employed 1948. Named Man-1943-46).
U.S.
Army Reserse l
1973. Elected Assistant Vice ager, System Dispatching,1971, (1953-65). Employed 1956. Nam-i Pre sident. Public Affairs.1974:
Named Manager, Long Range ed Manager, Area Ce.elcoment.
Vice President. Corporate Affairs.
Planning, 1973. Elected Vice 1958. Elected Assistant Vice 1976: Vice President. Rates and President. System Engineenng, President. A re a Development, Corporate Affairs,1977, 1976; Vice President, Ccrpocate 1974; Vice President, Land Man-Planning, 1977.
agement, 1976.
F i
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QUENTIN E. BOWERS MARGARET E. McCAIN WAYNE L. PIDOCK Assistant Controller Corporate Secretary Assistant Treasurer and Assistant Secretary and Assistant Treasurer
- r. Pidock (Dec. 13.1926) is a l
Mr. Bowers (Nov. 24,1919) is a Miss McCain (Nov. 18,1919) is graduate of Ohio State University t
graduate of Bowling Green State a graduate of Bliss Business Col-051). U.S. Army (1952 53). Em-Unnersity 042). U.S. Navy (1943-lege ('42). Employed 1951. Named ployed 1953. Named Manager, 6
46). Fcrmerly Vice President and Executwe Secretary to Assistant Tax and Special Reports,1972.
Controller of C Umeus Transit Vice President of Operations.
Elected Assistant Controller, Compary. Elected Assist:,nt Con-1951; Execut,e Secretary to Vice 197A Assistant Treasurer 1977.
[
troller and Assistant Secretary, Presioent of Operations. 1954; 1974.
Executive Secretary to Executive i
i Vice President, 1961; Executive Secretary to President and Chair-man of the Beard,1966; Elected I
Assistant Secretary of the Ccm-cany, 1976; Assistant Secretary i
and Assistant T r surer, 1977; Corperate Secretary and Assist-ant Treasurer,1979.
I l
I CONSOLIDATED RESULTS OF OPERATION Year Ended December 31, (000 omitted) 1979 1978 1977 OPERATING REVENUES (1) (Details on pages 22 and 23) _..
$416.77,0
$366.171
$320.551 OPERATING EXPENSES Fuel.
137,078 122.584 102,177 Purchased and interchanged power (Net)
(17,856) 8,004 (3,501)
Other operations 69.345 65.854 53,403 37,775 33,668 25.080 Maintenance 39.843 35,754 30,720 Depreciation and amortization (2). _. _.. _.. _
Taxes other than income (Details on pages 24 and 25) 38,193 32,764 29.451 Federal income taxes (3).
22.320 1.161 7,195 Total Operating Expenses 326.698 299,789 244.525 OPERATING INCOME.
90.072 66 M 76.026 OTHER INCOME AND DEDUCTIONS Subsidiaries and other (Details on pages 24 and 25) 3.511 1,226 240 Allowance for funds used during construction (4)
All funds prior to January 1,1977. ~..
9,825 11,270 10,914 Equity funds after December 31, 1976... _...
7.627 2.842 income tax credit (5).
Total Other Income and Deductions.._
20.963 15.338 11.154 INCOME BEFORE INTEREST CHARGES...._. _......_...
111,035 81.720 87,180 INTEREST CHARGES Long term debt.
51,068 47,092 41,392 Notes payable 8,650 3,753 2,911 Other.
416 104 72 Allowance for borrowed funds used during construction (4)
(after December 31, 1976) __...
(9.076)
(9,056)
(11,529)
Total Inbrest Charges,_.....
51.058 41.893 32.846 NET INCOME.
59,977 39,827 54,334 Dividends on preferred shares._.. ___..
13.890 12.021 10.090 EARNINGS ON COMMON SHARES...
46,087 27,806 44,244 Dividends on common shares 34,606 37,334 32,805 RETAINED EARNINGS. _..____.
$y
$g)
$ 11,439 COMMON SHARES OUTSTANDING (in Thousands) (6) 16,251 16,089 14,502 EARNINGS PER SHARE OUTSTANDING (6)
$2.84
$1.73
$3.05 ALLOWANCE FOR FUNDS USED DURING CONSTRtlCTION Per common share outstanding (6)
$1.16
$1.26
$1.55 FEDERAL INCOME TAX EFFECT OF ACCELERATED DEPRECIATION Amount (In Thousands)
$ 9,631
$ 11,700
$ 9,926 Per common share outstanding (6).
0.59 0.73 0.68 (1) See page 5 for discussion of nature and amount of rate adjustments.
(2) Depreciation rate studies have been made annually since 1959. The effect of these studies on depreciation expense has been
'ninor. The composite book depreciation rate was 3.28% in 1979,3.30% in 1978,3.26% in 1977,3.28% in 1976 and 3.31%
in 1975.
(3) Depreciat:on ceducted for Federal income tax purposes is significantly greater than depreciation provided for financial report-ing purpous as a result of using various accelerated depreciation provisions of the tax laws including the Asset Depreciation Rango System (ADR). In its 1978 rate order the Public Utilities Commission of Ohio (PUCO) authorized the Company to defer taxes on the additional depreciation resulting from property placed in service after January 1,1977. Taxes deferred prior to 1962 contmue to be credited to income as they become payable. For operations regulated by the Federal Energy Regulatory Commission, beginning m 1975, deferred taxes have been recorded for the additional tax depreciation and the debt portion of Allowance for Funds Uwd During Construction (AFUDC).
d 1976 1975
_1974 1973 1972 1971 1970 1989
$280.285
$259.078
$188.590
$158.449
$135.959
$118.875 5109,108
$100.401 1
85,051 78,960 60,179 33,555 26,755 21,173 16,778 13,018 l
4,721 9,193 1,628 2,907 3,756 6,485 7,382 5,307 43.150 35,259 31,539 27,833 25,070 22,408 21,524 19.242 l
24,615 20.090 16,190 14,478 13,505 11,861 10,583 9,869 24,280 22,735 21,185 18,674 16.378 14,828 13.098 12,044 24,301 21.041 19,869 17,445 15,228 13,607 12,498 10,781 7.194 10.994 (3.609) 3.087 3.078 2.027 4.059 8.806 j
213,312 198_272 146.981 117.979 103.770
_,3 85.922 79.067 0
i 66.973 60.806 41,609 40.470 32.189 26.486 23,186 21.334 i
3.2%
2,396 632 1,312 1,093 1,006 1,545 1,458 24,401 14,554 7,976 5,694 5,692 4,133 4,150 2,533 27.697 16.950 8,608 7,006 6,785 5,139 5.695 3.991 94.670 77,756 50,217 47,476 38.974 31.6?S 28.881 25.325 37,404 27,493 21,833 16.517 15,514 14,802 12,261 8,266 2,698 7,793 7,248 4,919 2,230 1,765 1,058 1,657 i
266 48 80 180 99 (59) 35 26
_ 40.368 35.334 29,161 21,616 17.843 16.508 13.354 9.949 54,302 42,422 21,056 25,860 21,131 15,117 15,527 15,376 i
7.925 6.419 5.329 3.862 3.658 2.658 1.958 859 46,377 36,003 15,727 21,998 17,473 12,459 13,569 14,517 27,090 20.020 15.092 14.429 12.372 10.682 9.912 9.744 M
M d
d M
d Emm}ddd d
12,500 19,000 7,700 7,400 6,600 5,850 5,600 5,600
$3.71
$3.60
$2.04
$2.97
$2.65
$2.13
$2.42
$2.59
$1.95
$1.46
$1.04
$0.77
$0.86
$0.71
$0.74
$0.45
$ 7,069
$ 5,146
$ 6,152
$ 5,522
$ 3,906
$ 2,637 5 2263
$ 2,093 0.57 0.51 0.80 0.75 0.59 0.45 0.40 0.37 (4) AFUDC is computed by applying the following rates per annum to the direct expenditures portion of construction work in progress, effective June 1978, the accrual rate was chan February 1970 ged to a 7%% net of tax rate (10.2% gross rate for7,5% June 1%
1979, 9.3 %
gross rate for 1978), May 1974 - 8.5%,
1,1977 AFUDC is compounded on a semiannual basis.
(5) in conjunction with the 1978 PUCO rate order, the Company began allocating certain income tax benefits arising from interest charges from Operating Expenses to Other income.
(S) Based on monthly average number of common shares outstanding. l
1 CONSOLIDATED BALANCE SHEET At December 31, (000 omitted)
ASSETS 12T:-
1978 1977 ELECTRIC UTILITY PLANT At cost (Details on pages 18 and 19)
$1,582.543
$1,476,436
$1,353,974 Less-Accumulated provision for depreciation 294.349 263.936 231.438 1.288.194 1.212.500 1,122.536 OTHER PROPERTY AND INVESTMENTS Coal property and related assets (net) 24,268 25,724 26,034 Transit property and related assets (net)
Other subsidiaries and related assets (net) 4,609 3,906 3,813 Ohio Valley Electric Corporation _
430 444 479 Other property and investments...
1.351 1,460 1.284 30.658 31,534 31.610 CURRENT ASSETS 5,636 4,584 4,105 Cash 5,611 5,037 5,206 Special deposits and funds Temporary investments.
224 Accounts receivable 34,299 33,830 25,545 Materials and supplies 15,820 13,128 12,102 Fuel in storage.._
31,145 27,631 24,452 Federal income tax carrfback
.. _. ~.. -. - _
Prepayments and others -.
6.550 4.722 4.542 99.061 89.156 75.952 DEFERRED CHARGES Property taxes, applicable to future period 21,980 21,648 17,908 Oth er..._... _..
8.773 5.988 5.610 30.753 27.636 23.518
$1.448.666
$1.360,826
$1.253.616 CAPITALIZATION AND LIABILITIES CAPITAllZATION (Details on pages 16 and 17) (1)
Common equity.
$ 430,865
$ 414,866
$ 421,583 Cumulative preferred shares (See note 1, page 16)
No mandatory redemption.._. _ _.
98,354 98,354 98,354 Mandato y redemption 60,000 60,000 20,000 Preference shares.
Long-term debt 589,774 570.079 539,275 1,178.993 1,143.299 1,079,21; CURRENT LIABILITIES Debt maturing in less than one year Notes payable-to banks 9,000 17,500 12,000 i
-to banks as agents (payable on demand) 21,663 20,932 20,844
- other 20,000 15,000 Current maturities of long. term debt 60.054 22,242 9.587 110,717 75,674 42,431 Accounts payable 28,025 25,401 22,353 Accrued taxes.._..
50,477 39,993 36,639 Other 25.232 31.131 26,572 214.451 172,199 127,995 DEFERRED CREDITS AND RESERVES Investment tax credits.
26,466 20,698 26,952 Accumulated deferred ir.:ome taxes Emergency facilities __._
2,950 3,181 3,413 Accelerated depreciatie i :- note 3, par 11 12.322 7,570 5,132 Other
~
10,518 10,810 8,973 Operating reserves and other.
2.966 3.069 1,939 55.222 45,328 46.409 l
$1,448,666
$1.360.826
$1,253.616 L
(1) Certain reclassifications have been made to previously reported amounts to conform to 1979 presentat:ons. -
l
O 1976 1975 1974 1973 1972 1971 1970 1969
$1,196,9%
$1, G,1CO
$874,580
$731,275
$644,791
$585,007
$518,237
$464,666 205.439 185,529 167,417 148.212 134.559 125.229 113,594 111,545 991.557 834.571 707,163 583.063 510.232 459.778 404.643 353,121 30,102 30,256 27,192 23,853 19,946 17,225 12,862 12,597 2,853 3,158 3,074 3,037 3,004 3,021 3,023 3,080 3,115 2,873 2,701 2,371 513 548 565 599 651 685 702 737 1.693 1.908 1.826 2.102 1,360 695 695 748 35.312 35.733 32.606 29.634 27,925 24.636 20.034 19,490 6,254 10,082 9,067 7,648 4,164 5,452 3,535 4,881 3,715 2,551 1,454 1,893 2,066 1,539 1,554 610 3,000 4,000 23,934 19,822 17,353 11,696 12,456 10,590 9,114 8,975 11,735 9,742 9,534 6,924 5,693 5,125 4,575 4,042 19,651 18,083 13,040 11,063 8,650 5,931 5,101 3,528
'879 4.435 3.638 2.777 2,670 2.038 1.716 1.591 1.360 72.725 63.918 56.104 45 894 35.067 30,353 25,470 23,3 %
15,602 12.715 13.806 12,594 10,739 9,600 9,252 8,144 5.130 3.872 2.336 1.929 1.663 1,088 577 503 20.732 16.587 16,142 14.523 12,402 10,688 9,829 8.647
$1,120.326
$ 950.809
$812,015
$673.114
$585.626
$525,455
$459.976
$404.654
$ 356,453
$ 267,370
$192,759
$192,124
$161,862
$141,455
$124,861
$121,204 98,354 73.354 73,354 53,354 53,354 37,354 37,354 19,354 20,000 20,000 505.068 421.067 307.276 304.297 256,904 237,862 238,179 183,915 979.875 781,791 573.389 549,775 472.120
_416 6_71 400,394 324.473 i
23,571 96,650 27,641 32,251 46,499 5,000 10,336 17,168 12,752 26,762 20,384 16,626 3,565 2.297 25.348 30.453 251 376 236 236 18,318 19,465 61,671 153,865 48,276 49,253 50,300 5,236 28,654 27,628 28,060 17,434 12,884 8,518 8,421 6,938 6,715 g
29,7 %
29,511 26,974 24,625 21,638 19,297 18,5 %
17,787 g
22.369 17,993 14.378 11.254 10,622 9.315 8.082 7.293 99.258 137.235 212,651 97,039 90.031 87,333 38.852 60,449 23,001 14,6 %
8,158 9,158 7,235 5,469 4,548 3,619 3,644 3,877 4,110 4,344 4,582 4,822 5,063 5,302 5.324 5,514 5,671 5,863 6,033 6,138 6,200 6,240 7,762 6,225 6,626 6,045 5,155 4,608 4,552 4,300 l
1.462 1,471 1,410 890 470 414 367 271 41,193 31,783 25,975 26,300 23,475 21,451 20,730 19.732
$1.120.326
$ 950.809
$812.015
$673,114
$585,626
$525,455
$459,976
$404.654 t
i CONSOLIDATED CAPITALIZATION At Dectmber 31, COMMON SHAREHOLDERS' EQUITY 1979 1978 1977 Common shares without par value-NYSE
$ 40,865 5 40,370
$ 40,021 Premium on capital shares.___
249,149 245,126 242,664 Earnings retained in the business 140.851 129.370 138,898 Total.___ _
$ 430.865
$ 414.866 5 421,583 CUMULATIVE PREFERRED SHARES (1)
$100 Par Value Authorized - 1,500,000 shares Outstanding 4 %% Series (103,591 shares) (2) 10,359
$ 10,359
$ 10,359 4.65% Series (89,950 shares) 8.995 8,995 8,995 10 %
Series (180,000 shares) (2) 18.000 18,000 18,000 7.52% Series (160,000 shares) 16,000 16,000 16,000 8.52% Series (200,000 shares) 20,000 20,000 20,000 10.52% Series (200,000 shares)- NYSE (3)._.
20,000 20,000 20,000 9.50% Series (400,000 shares) (3) 40,000 40,000
$25 Par Value Authorized - 5,000,000 shares Outstanding
$2.42 Series (1,000,000 shares)-NYSE 25.000 25.000 25,000 Total
$ 158.354
$ 158,354
$ 118,354 PREFERENCE SHARES (Authorized - 2,000,000 shares).
LONG-TERM DEBT First Mortgage Bonds 9
1975 - NYSE 8
1976-NYSE _. _._
3 1978.._
7 1979 - NYSE 20,000 2.80 1980 __ ___. _.
7,500 7,600 7-5/8 1980- NYSE 50,000 50,000 3-114 1981. _.._ _.._.._
9,000 9,110 9,110 9-1/4 1982-NYSE (includes unamortized discount) 49,957 49,939 49,921 11 1983 - NYSE 30,000 30,000 30,000 35/8 1983 - NYSE 7,665 7,775 7,775 3-1/4 1984..._..
7,698 7,763 7,763 9-1/2 1984-NYSE (Includes unamortized discount) 59,919 59,903 59,886 75/8 1985-NYSE (includes unamortized discount) 44,863 44,838 44,814 3-3/4 1986 - NYSE 9,480 9,480 9,480 4-1/2 1987 - NYSE 15,789 15,789 15,789 4-118 1988.
13,860 13,860 13,860 4-3/8 1992 15,827 15,827 15,827 9.45 1996....
40,000 40,000 40,000 6-114 1997.
14,640 14.640 14,640 7
1998 24,750 24,750 24,750 9-115 1998...
45,000 45,000 9
1999__..
20,000 20,000 20,000 10-114 1999._..
60,000 8-7/8 2004(includes unamortized premium) 35,411 35,428 35,445 t
9.90 2006(includes unamortized premium) 35.078 35.081 35,084 Debentures 5 538,937
$ 536,683
$ 511,744 7-518 %
1999 -
20,866 20,871 20,872 Other long. term debt 29.971(4) 12,525(4) 6.659(4)
Total long-term debt 5 589.774 5 570,079 H 539.275 Total Capitali7ation
$1,178.993
$1,143,299 S1,079,212 l
DEBT MATURING IN LELS THAN ONE YEAR (to be refinanced) i Notes payable To banks s
9,000
$ 17,500
$ 12,000 To banks as agents (payable on demand)-
21,663 20,932 23,844 Other 20,000 15,000 Current maturities of long-term debt.
60,054 22,242 9.587 i
$ 110.717
$ 75,674 S 42,431 l
Total Capitalization and debt maturing in less than one year
$1.289.710
$1,218.973 S1,121,643 NUMBER OF COMMON SHARES OUTSTANDING (authorized 24,000,000)-
16,346 16,148 16,009 Eirtedded cost of long-term debt 8.62 %
8.16 %
7.94 %
(1) If acquired by American Electric Power Company, Inc. (see page 7), the Company may redeem its then outstanding preferred shares at the call prices plus accrued dividends to De redemption date. l
1976 1975 1974 1973 1972 1971 1970 1969
$ 35,000
$ 27,500
$ IP,250
$ 19,250
$ 17,000
$ 15,500
$ 14,000
$ 14,000 193,994 131,698 81,320 81,320 60,877 47,071 33,754 33,754 127,459 108.172 92,189 91,554 83.985 78,884 77.107 73,450
$356.453
$267.370
$192.759
$192.124
$161.862
$141.455
$124,861
$121,204
$ 10,359
$ 10,359
$ 10,359
$ 10,359
$ 10,359
$ 10,359
$ 10,359
$ 10,359 8,995 8,995 8,995 8,995 8,995 8,995 8,995 8,995 18.000 18,000 18,000 18,000 3,000 18,000 18,000 16.00' 16,000 16,000 16,000 16,000 20.0 20,000 20,000 20.0w 20,000 25,000
$118,354
$ 93,354
$ 73,354
$ 53.354
$ 53,354
$ 37,354
$ 37.354
$ 19.354
$ 30,000
$ 30,000
$ 30,000
$ 30,000 25,000 25,000 25,000 25,000 25,000 7,400 7,500 7,600 7,700 7,800 7,900 8,000 8,100 20,000 20,000 20.000 20,000 20,000 7,700 7,800 7,900 8,000 8,100 8,200 8,300 8,400 50,000 50,000 50.000 50,000 9,240 9,245 9,245 9,476 9,536 9,536 9,536 9,636 49,903 49,836 30,000 30,000 7,780 7,820 7,885 8,001 8,154 8,224 8,224 8,321 7,869 7,984 7,989 8,089 8,157 8,187 8,187 8,383 59,870 59,853 9,554 9,604 9,654 9,764 9,933 10,131 10,213 10,320 15,789 15,789 15,789 15,789 15,789 15,973 15,973 15,973 13,860 13,860 13,860 13,860 13,860 14,000 14,000 14,000 15,827 15,827 15,827 15,827 16,000 16,000 16,000 16,000 40,000 14,640 14,640 14,640 14,640 14,640 14,640 14,640 14,640 24,750 24,750 24,750 24,750 25,000 25,000 25,000 25,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 35,462 35,479 35,4 %
35.087
$474,731
$400,037
$285,635
$280,8%
$231,%9
$212,791
$213,073
$158,773 20,872 20,897 21,447 23.308 24,900 25,000 25,000 25,000 9.465(4) 133 194 93 35 71 106 142
$505.068
$421.067
$307.276
$304.297
$256,904
$237,862
$238,179
$183.915
$979.875
$781.791
$573.389
$549,775 5472.120
$416.671
$400.394
$324,473
$ 23,571
$ %,650
$ 27,641
$ 32,251
$ 46,499
$ 5,000
$ 10,336 17,168 12,752 26,762 20,384 16,626 3,565 2.297 25.348 30,453 251 376 236 236 18,318
$ 19.465
$ 61.671
$153.865 5 48.276 5 49.253
$ 50,300
$ 5,236
$ 28.654
$999,340
$843.462 5727,254 5598,051
$521.373 M
$405.630
$353.127 14,000 11,000 7,700 7,700 6,800 6,200 5,600 5,600 7.95 %
7.72 %
6.86 %
6.50 %
6.28 %
6 22 %
6.21 %
5.30 %
(2) 44% and 10% series currently carry a 59.130% dividend received tax benefit to corporate holders based on a 46% tax rate.
(3) Mandatory redemption provisions apply.
(4) includes Sirnco term loan. See note 1, page 30..
I o
ELECTRIC PLANT At December 31, (000 omitted) 1979 1978 1977 Plant in Service, at original cost (1)
Production _.
$ 653,219
$ 630,047
$ 486,667 Transmission........ _. _..
230,835 221.249 191,016 Distribution 360,179 338,437 313.228 General.
40,097 40.478 36.303 Total in service 1,284,330 1,230,211 1,027,214 Construction work in progress - nuclear.
220,704 179,155 140,997
- other.
74,671 64,425 183,456 Plant held for future use.. ___.. _. _...
2,838 2,645 2,198 Acquisition adjustment costs (2).___........._.._
109 Total plant
$1,582.543
$1,476.436
$1,353.974 Construction expenditures during the year. _.. _.. _. -..
$ 114,921
$ 125,809
$ 162,028 Retirements during the year 8,535 2,889 4,787 (1) includes tentative distribution of completed constructior; not classified.
(2) 1968 plant acquisition costs apply to City of Wellston distribution system acquired in June 1968 which were amortized over a 10 year period.
CONSOLIDATED STATEMENT OF SOURCES OF FUNDS FOR PROPERTY ADDITIONS Year Ended December 31, (000 omitted)
FUNDS PROVIDED FROM INTERNAL SOURCES (1)
Earnings on common shares.__.
$ 46,087
$ 27,806 5 44,244 Income tax refund resulting from 1965 write.cff of intangibles Dividends on common shares (34.606)
(37.334)
(32.805)
Retained earnings 11,481 (9,528) 11,439 Amounts charged to income not requiring cash Electric Depreciation and amortization 39,843 35,754 30,720 investment tax credits 5,768 (6,253) 3,951 Allowance for funds used during construction (18,901)
(20,326)
(22,443)
Miscellaneous - net 5,340 6,339 2,810 Other operations 1,824 2,228 2,318 Other internal - net (6,729)
(8.035) 2,495 38.626 179 31.290 FUNDS PROVIDED FROM EXTERNAL SOURCES (1)
Long-term debt (2).
59,775 44,831 44,488 Preferred shares (2) 39,520 Common shares (2) ___
4,528 3,522 53,833 Notes payable - net (2,769) 20,588 15,676 l
Other including Simco inc. Note (3) 20,000 8,105 114 Retirement of long-term debt ___
(22,532)
(9.685)
(3,445) i 59.002 106.881 110,666 l
Total Funds Used for Electric Plant and l
Other Property Additions (1)
$ 97,628
$ 107.060
$ 141,956
{
(1) Certain reclassifications have been made to previously reported amounts to conform to 1979 presentations.
(2) Net proceeds.
(3) See note 1, page 30. (
1976 1975 1974 1973 1972 1971 1970 1969 5 440,022 5 293,950
$294,394
$261,913
$203,368
$183.513
$163,885
$144,619 167,206 144,393 129,780 112,647 101,710 95,713 86,073 75,066 282,839 267,648 253.949 231,583 213.267 194,476 179,623 163,788 31,812 30.858 28,992 25,721 24.914 23.412 23.085 21.831 921,879 736,849 707,115 631,864 543,259 497,114 452,666 405,304 103,708 71,154 43,459 21,501 10,989 6,275 2,021 123 169,022 209,434 120.818 73,890 87,942 78,677 60,876 56,292 2,059 2,116 2,422 3,035 1.397 1,518 1,032 1.086 328 547 766 985 1.204 1.423 1.642 1.861
$1.1%.996 3 020.100
$874.580
$731.275
$644,791
$585.007
$518,237
$464.666
$ 181,813
$ 150.680
$145,563
$ 92,807 5 68,1 %
$ 71,109 5 65,573
$ 50,2%
4,658 4,876
$ 3,545
$ 4,859
$ 7,267
$ 3,696
$ 11.554
$ 3.587
$ 46,377
$ 36,003
$ 15,727
$ 21,998
$ 17,473
$ 12,459
$ 13,569
$ 14,517 1,297 (27.000)
(20.020)
(15.092)
(14.429)
(12.372)
(10,682)
(9.912)
(9,744) 19,287 15,983 635 8,866 5,101 1,777 3,657 4,773 24,280 22,735 21,185 18,674 16,378 14,828 13,098 12,044 8,305 6,538 (1,000) 1,923 1,766 921 929 560
)
(24,401)
(14,554)
(7,976)
(5,694)
(5,692)
(4,133)
(4,150)
(2,533) 2,580 572 1,323 851 510 463 580 326 2,348 3,384 2,064 1,490 844 1,101 753 642 (9.785) 7,487 (671)
(2.009)
(1,844)
(2,521)
(474) 2.982 22,614 42,145 15.560 24.101 17,063 12.436 14.393 18,794 I
74,606 138,338 35,098 50,040 20,125 55,263 45,273 26,395 19,620 20,120 16,169 18,063 68,710 59,315 22,797 15,384 14,904 (19,155)
(87,088) 75,387 (852)
(1,187) 45,064 (5,336)
(13,848) 11,880 95 354 170 178 (26,034)
(31,131)
(2.669)
(2,903)
(818)
(318)
(18.818)
(700) 136.402 99,149 128.290 69,252 49,673 59,650 49,172 30,903 P
$ 159,016
$ 141,294
$143,850
$ 93,353
$ 66.736
$ 72 086
$ 63.%5 5 49,697 r
. l l
FINANCIAL RATIOS AND DATA 1979 1978 1977 CAPITALIZATION RATIOS (at year end)
Consolidated Common shareholders' equity _...
34.8 %
34.0 %
37.6 %
Preferred shares._.....
12.8 13.0 10.5 Long-term debt __
47.6 46.8 48.1 Debt maturing in less than one year _ _.
4.8 6.2 3.8 100.0 %
100.0 %
100.0 %
ASSET RATIOS (at year end)
Bonds to net plant..
41.8 %
44.3 %
45.6 %
Total debt to net plant 54.4 53.3 51.8 Depreciation reserve to gross plant..... _.. _
18.6 17.9 17.1 l
l CONSOLIDATED EARNINGS COVERAGE (1)
Times total interest earned -
Before Federal income taxes 2.4 1.8 2.4 After Federal income taxes 2.0 1.8 2.2 OPERATING RATIOS (% of operating revenue)
Fuel _._
32.9%
33.5 %
31.9 %
Purchased power.._..
(4.3) 2.2 (1.1)
Other operation 16.6 18.0 16.7 Maintenance.._
9.0 9.2 7.8 Depreciation and amortization _.
9.6 9.8 9.6 Taxes other than income taxes 9.2 8.9 92 Total operating expenses before Federal income taxes 73.0 81.6 74.0 Total operating expenses after Federal income taxes 78.4 81.9 76.3 Net income (consolidated) before Federal income taxes 19.7 11.2 19.2 Net income (consolidated) after Federal income taxes 14.4 10.9 17.0 Earnings on common shares (consolidated) 11.1 7.6 13.8 RETURN ANALYSIS (book basis)
Operating income as a % of average net plant in service 9.2%
7.5%
10.0 %
income before interest charges (consolidated) as a % of average capitalization (2) 9.6 7.8 9.3 Earnings on common shares as a % of average common equity 10.9 6.6 11.4 COMMON STOCK DATA (per share) (3)
Price range-High
$26%
$27%
$28%
Low 20 %
20 %
25 %
Close 21 %
21 26 %
Common equity at year end (consolidated) 26.36 25.69 26.33 Dividends declared (4) 2.13 2.32 2.26 Dividends paid (4) 2.71 2.32 2.23
% Payout (dividends declared basis) 75.1 %
- 134.3 %
74.1 %
(t) Represents income before interest charges (before or after Federal income taxes, Deferred Federal income taxes and invest.
ment tax credit adjustments) divided by total interest expense.
3 (2) Average capitalization includes debt maturing in less than one year.
(3) Common stock is listed on New York Stock Exchange.,.
.?.
1976 1975 1974 1973 1972 1971 1970 1900 35.7 %
31.7 %
26.5 %
32.1 %
31.0 %
30 3 %
30.8 %
34 3 %
11.8 11.1 10.1 8.9 10.2 8.0 9.2 5.5 50.5 49.9 42.2 50.9 493 50.9 58.7 52.1 2.0 7.3 21.2 8.1 9.5 10.8 13 8.1 100.0 %
100 0 %
100.0 %
100.0 %
100.0 %
100.0 %
100.0 %
100.0 %
47.9 %
47.9 %
40.4 %
48.2 %
45.5 %
463 %
52.7 %
45.0 %
52.9 57.8 65.2 60.5 60.0 62.7 60.2 60 2 17.2 18.2 19.1 203 20.9 21.4 21.9 24.0 2.5 2.5 1.6 23 2.4 2.0 2.5 3.4 23 2.2 1.7 2.2 2.2 1.9 22 2.5 303 %
30.5 %
31.9 %
21.2 %
19.7 %
17.8 %
15.4 %
13.0 %
1.7 3.5 0.9 1.8 2.8 5.5 6.8 53 15.4 13.6 16.7 17.6 18.4 18.9 19.7 19.2 8.8 7.8 8.6 9.1 9.9 10.0 9.7 9.8 8.7 8.8 11.2 11.8 12.0 12.5 12.0 12.0 8.7 8.1 10.5 11.0 11.2 11.4 11.4 10.7 73.5 72.3 79.9 72.5 74.1 76.0 75.0 70.0 76.1 76.5 77.9 74.5 763 77.7 78.7 78.8 21.9 20.6 93 183 17.8 14.4 18.0 24.1 19.4 16.4 11.2 163 15.5 12.7 14.2 15 3 16.5 13.9 83 13.9 12.9 10.5 12.4 14.5 10.6 %
11.1 %
8.1%
9.1%
8.2%
7.5%
73 %
7.5%
10 3 9.9 7.6 8.5 7.9 7.2 7.6 7.6 14.9 15.6 8.2 12.4 11.5 9.4 11.0 12.2
$28%
$23%
$26Vs
$29
$30%
$32%
$32%
$45%
21 %
12 %
12 22W 257/s 25 22 %
28W 27 23 12 %
24Vs 28 %
27W 28 %
29 %
25.46 24.31 25.03 24.95 23.80 22.82 2230 21.64 2.12 2.00 1.%
1.93 1.86 1.81 1.77 1.74 2.08 1.98 1.%
1.92 1.84 1.80 1.76 1.72 58.4 %
55.6 %
%.0%
65.6 %
70.8 %
85.7 %
73.0 %
67.1 %
(4) Declared quarterly-i i1979 the dividends were declared in March. June, September and November, payable approximately the 10th of the followe g month. Effective with the November 1979 declaration and for following years, dividends are scheduled to be declared February, May, A st and November, payable approximately the 10th of the following month.
The quarterly dividend was increased from 5 to 58c in September 1977.
i
}
SALES, REVENUES, AND CUSTOMERS Year Ended December 31, 1979 1978 1977 SALES - KWH (000 omitted)
Residential._..
3,222,252 3,154,723 3,109,167 Commercial._..._.
2,741,795 2,583,709 2,684,415 Industrial (1) 2,130,367 2,041,832 2,(MS.037 Governmental Authorities 352,441 307,162 312,819 Sales for resale 586.812 538.691 575.946 Total -..
9.033.667 8.626.123 8,727.384 REVENUES (000 omitted) (2)
Residential.
$171,952
$155,342
$136,271 Commercial._-
131,773 111,717 100,226 Industrial (1) 80,057 69,802 60,018 Governmental Authorities 12,688 10,016 9,130 Sales for resale 16,514 15,5 %
11,912 Other revenues _._
3.786 3.698 2.994 Total
$416.770
$366.171
$320.551 CUSTOMERS AT END OF PERIOD Residential.
412,016 403,523 398,000 Commercial 41,461 40,708 40,018 industrial (1).._.._
2,487 2,505 2,563 Governmental Authorities 1,318 1,169 1,130 Sales for resale G
6 6
Total 457.288 447.911 441.717 RESIDENTIAL SALES Average annual KWH use per customer 7,896 7,876 7,883 Average revenue per KWH-cents (2) 5.34 4.92 4.38 (1) The Company's fifteen largest customers, based on 1979 revenues, are listed below by type of business. The figures are for the same customers for all three years.
Revenues (000) 1979 1978 1977 Plastic Tape and Coating 5 3,257
$ 2.793
$ 2,2%
Metal Foundry 3,244 2,530 1,852 Brewery 2,832 2,356 2,011 Telephone Equipment 2,227 1,819 1,664 Automotive Equipment 2,200 1,933 1,631 Paper Containers 2,161 1,939 1,680 Paper 1,991 1,928 1,019 Metal Parts 1,617 1,394 1,229 Aircraft and Missiles 1,387 1,131 1,604 Electric Appliances 1,253 1,208 1,044 Research 1,208 1,090 1,111 Cement Products 1,181 1,099 975 Television Tubes 1,030 942 824 industrial Abrasives 1,023 824 679 Food Processing 938 7(M 730
$27,549
$23.690
$20.349 r
1976 1975 1974 1973 1972 1971 1970 1969 2.859,023 2,818,852 2,661,498 2,593,388 2,348,659 2,175,645 2,020,095 1,806,964 2,527,377 2,436,973 2,327,008 2,308,498 2,066,443 1,907,453 1,758,8 %
1,563,440 1,965,071 1,8 %,435 2,005,679 2,068,359 1,928,756 1,781,521 1,731,f40 1,688,372 308,688 274,183 267,266 274,758 259,732 210,217 191,877 162,463 473.209 424.886 505,993(3) 291.2 %
253.276 236.035 226.515 172.933 8.133.368 7.851,329 7,767,444 g
6.856.866 6,310.871 5.929.023 5.394.172 5119.146
$112,124
$ 79,604 5 68,574 5 56,968 5 51,747
$ 47,412
$ 43,388 87,701 80.378 57,498 49,151 41,759 36,415 32,904 29,772 53,191 48,753 37,731 31,%1 27,716 24,353 22,712 21,882 8,541 7,749 5,978 5,071 4,648 3,933 3,659 3,276 9,583 7,741 5,806(3) 2,600 2,057 1,818 1,797 1,389 2,123 2 333 1,973 1.092 811 609 624 694
$280 285 5259.078 M
M M
M
$109.108
$100.401 392,472 384,626 379,%1 373,054 358,828 346,345 334,198 324,715 39.293 38,558 38,014 37,290 35,928 34,845 33,872 33,038 2,634 2,678 2,699 2,720 2,723 2,732 2,696 2,665 1,085 1,084 1,062 1,066 1,044 1,050 1,051 1,049 6
6 6
6 6
6 5
6 435 400 426.952 421.742 414.136 398.529 384.978 371.822 361.473 7,362 7,390 7,069 7,079 6,676 6,416 6,146 5,673 4.17 3.98 2.99 2.64 2.51 2.38 2.35 2.40 KWH Sales (000) 1979 1978 1977 109.123 99,907 94,723 (2) see page 5 for discussion of nature and 103.092 82,446 77,768 arnount of rate adjustments in 1979,1978, 34l440 62l707 93,156 84 81 1977,1976,1975,1974,1972 and 1971.
979 190 64,404 1
70.944 69,389 68',947 (3) includes non-recurring Fuel Conservation Power sales of 118,397,000 KWH and reve-41,270 59,539 25,286 nues of $1,226,000, 50,725 33,382 48,418 l
41.670 39,180 61,373 l
37,668 50,299 39,822 32,973 37,136 40,393 l
35,432 50,592 38,152 32,054 28,729 33,121 32,195 27,412 26,841 27.814 22,219 26.979 M
E E.
DETAIL OF TAXES Year Ended December 31, (000 omitted) 1979 1978 1977 TAXES OTHER THAN INCOME TAXES Property
$ 20,654
$ 17,852
$ 15,913 State excise on gross receipts 14,323 12,156 11.077 Payroll 2,755 2,377 2,029 Otter.._.
461 379 432
$ 38.193
$ 32,764
$ 29,451 FEDERAL INCOME TAXES Payable.
S 5,131 0
$ 1,287 increase (decrease) from:
Investment tax credits -
Deferred.._._..__
6,498 (5.673) 4,859 Amortization (over life of property)
(730)
(580)
(908)
Deferred taxes -
Emergency facilities (231)
(232)
(231)
Accelerated depreciation 4,752 2,438 (192)
Other (292) 2,213 1,211 Other - Subsidiaries...
(62)
(307)
(172)
Total Federal income tax expense 15,066 (2,141) 5,854 Less: Charged to other income and deductions (7,254)
(3,302)
(1,341)
Charged to operating expenses
$ 22,320
$ 1,161
}. 7.195_
COMPUTATION OF FEDERAL INCOME TAXES Federal income tax expense computed at statutory rates
$ 34,519
$ 18,089
$ 28,890 Reduction resulting from:
Excess of tax over book depreciation 9,524 10,374 8,465 Allowance for funds used during construction 8,694 9,756 10,773 Other items - net _.._...
1,235 100 3,798 Total Federal income tax expense.
$ 15,066
- $ (2,141)
$ 5.854 SUBSIDIARY AND OTHER INCOME AND DEDUCTIONS (Net of applicable expenses, including Federal income taxes)
Year Ended December 31, (000 omitted)
Subsidiaries and Other Earnings of subsidiaries (Details on pages 30 and 31)
$ 2,337 5
341 (269)
Interest recei.*d from subsidiaries 134 47 34 Transit rentals.
51 163 48 Coal operations...
728 635 809 OVEC dividend 81 29 42 Gain on bond retirements Miscellaneous _
'80 11 (424)
W
$ 1.226 240 (1) includes gain en sale of transit facilities.
(2) includes $50,000 t.x adjustment credited to retained earnings by Colomet, Inc. (See note 4, page 31).
(3) includes 5400,000 tax adjustment credited to retained eamings by Sim.:o inc. (See note 3, page 31).
CONSOLIDATED STATEMENT OF RETAINED EARNINGS Year Ended December 31, (000 omitted)
BEGINNING BALANCE
$129,370
$138,898
$127,459 Add: Earnings on common shares 46,087 27,806 44,244 175.457 166,704 171,703 Deduct: Cash dividends declared on common shares 34,606 37,334 32,805 ENDING BALANCE.._.. _...
$140.851
$129.370
$_138.898 1976 1975 1974 1973 1972 1971 1970 1969
$ 12,599
$ 11,723
$ 12,218
$ 10,795 5 9,597
$ 8.506
$ 7,859
$ 7,094 9,744 7,555 6,091 5,340 4,687 4,258 3,822 2,934 1,701 1,484 1,378 1,186 845 747 719 652 257 279 182 124 99 96 98 101
$ 24.301
$ 21.041
$ 19.869
$ 17.445
$ 15.228
$ 13.607
$ 12.498
$ 10.781
$ (2,449)
$ 4,095
$ (3,415)
$ 1,839
$ 1,169
$ 1,411
$ 3,622 S' 8,271 8,829 7,026 (686) 2,229 2,009 1,112 1,087 688 (524)
(488)
(314)
(3C6)
(243)
(191)
(158)
(128)
(233)
(233)
(234)
(238)
(240)
(241)
(239)
(240)
(190)
(157)
(192)
(170)
(105)
(62)
(40)
(60) 1,537 (401) 581 890 547 56 252 245 (276) 1,010 (19)
(160)
(340) 275 58 83 6,694 10,852 (4,279) 4,084 2,797 2,360 4,582 8,859 (500)
(142)
(670) 997 (281) 333 523 53
$ 7.194
$ 10,994
$ (3,609)
$ 3,087 5 3,078
$ 2.027
$ 4,059 5 8,806
$ 29,278
$ 25,572 5 8,053
$ 14,373
$ 11,485
$ 8,389
$ 9,894
$ 12,796 6,584 4,558 5,659 4,867 3,275 2.287 1,686 1,505 11,712 6,986 3,828 2,733 2,732 1,984 2,042 1,337 4.288 3,176 2,845 2,689 2,681 1.758 1,584 1,095
$ 6.694
$ 10.852
$ (4.279)
$ 4.0 A
$ 2.797
$ 2.360
$ 4,582
$ 8,859
$ 1,941 5
612
$ (410)
(86)(1) $
208(2) 452 850
$ 1,208(3) 242 469 398 2?1 207 62 6
(22) 76 98 115 L
35 27 24 20 1.034 1,090 656 576 433 349 386 272 43 43 43 43 43 43 34 34 236 130 27 193 103 (40) 84 (170) 236 37 46 52 (157)
$ 3.2%
$ 2.3 %
632
$ 1.312
$ 1.093
$ 1.006
$ 1,545
$ 1,458
$108,172
$ 92,189
$ 91,554
$ 83,985
$ 78,884
$ 77,107
$ 73,450
$ 68,677 46.377 36.003 15.727 21.998 17,473 12.459 13.569 14.517 154.549 128,192 107.281 105,983 96.357 89.566 87,019 83,194 27.090 20,020 15.092 14.429 12.372 10.682 9,912 9,744
$127,459
$108,172
$ 92,189
$ 91,554
$ 83,985
$ 78,884
$ 77,107
$ 73,450.
ENERGY SUPPLY Year Ended December 31, 1979 1978 1977 ENERGY SUPPLIED-KWH (000 omitted)
Generated (net) 10,495.400 9,427,146 9,669,799 Purchased and interchange (net)
(761.855)
(60.913)
(255.783)
Net energy supplied 9,733,545 9,366,233 9,414,016 Losses and Company use._ -
699 878 740,110 686.632 Energy sold 9.033.667 8.626.123 8.727.384 NET GENERATION 'BY STATION - KWH (000 omitted)
Conesville No. I thru 3, No. 5 and No. 6 5,154.401 4,688.120 3,900,594 Conesville No. 4 (1).._... _.._. --
1.031,482 1,081,659 1,615,393 Poston 724,943 517,953 740,698 Picway 356.806 333,965 351,829 Walnut (2) -.. _..
W. C. Beckjord No. 6 (1) 147,523 186,421 220,490 J. M. Stuart (1) _..._.
2.983,776 2,401,346 2,724,292 Peaking units (jet and diesel) 96.469 217.682 116.503 Total...
10.495.400 9.427,146 9.669.799 MET GENERATING CAPABILITY-KW Summer Conesville No. I thru 3, No. 5 and No. 6 1,141.000 1,141,000 797,000 Conesville No. 4 (1) -_.-.
348,000 348,000 348,000 Poston 204,000 204,000 232,0N Picway 117.000 117,000 153,000 Walnut (2)..
W. C. Beckjord No. 6 (1).___
54.000 54,000 54,000 J. M. Stuart (1) 604,000 604.000 604,000 Peaking units (jet and diesel) __
264.000 264,000 292.000 System - Summer __.._ _
2.732.000 2.732.000 2.480.000 Winter.
2.821.000 2.821.000 2.568.000 CAPACITY AVAILABLE -
KW from OVEC (see page 6) 55,000 KW from Others - at time of peak ONE HOUR SYSTEM PEAK DEMAND-Net KW-Summer
.~.
1,852,000 1,907,000 1,932,000 Winter 1,775,000 1,736,000 1,683,000 LOAD FACTOR (3) _.
59.9 %
56.0 %
55.6 %
i Net Capbility Columbus Cincinnati Dayton (1) Commonly owned units -
Conesville No. 4 ___.
800,000KW 43.5 %
40.0 %
16.5 %
W. C. Beckjord No. 6 434,000KW 12.5 %
37.5 %
50.0 %
J. M. Stuart(4 units)..._ _
2,325,000KW 26.0 %
39.0 %
35.0 %
(2) Retired from service December 31, 1970.
l (3) Represents the ratio of the Average Hourly Net Energy supplied to the Net One Hour System Peak Demand.
L +
1976 1975 1974 1973 1972 1971 1970 1969 8.646.860 7,978.044 8,239,739 7,752,038 6.974,467 6,108.690 5,441,317 4,717,827 221.7Q 50 i4 4 179.821 418.348 524.583 753.502 985.210 1.110.051 8,868,563 8,483,491 8,419,560 8,170.386 7,499,050 6,862,192 6,426,527 5,827,878 735.195 632.162 652.116 634.087 R 184 551.321 497.504 433.706 8.133.368 7.851.329 7,767.444 7,536.299 6.856.866 6.310.871 5.929.023 5.394.172 2,603,783 1,713,000 1,982,195 2,499,198 2,502,651 2,542.543 2,724 215 2,718,602 1,049,283 1,641,% 7 1,905,923 558.181 882,268 935,474 1,034,169 1,087,553 1,061,258 1,102,094 1,289,401 1,134,055 394,624 416,718 516,489 468,031 464,299 511,371 645,820 488,107 158,144 114,180 269,855 216,931 126,488 171,124 281,148 313,809 267,300 172,587 3,280.258 2,948,758 2,468.083 2,813,207 2,421,543 1,393,355 206,870 166.789 105.1 %
206.392 154.744 243.568 245.518 149.567 90.2 %
8.646.860, 7.978.044 8.239.739 7,752.038 6.974.467 6.108.690 5.441.317 4.717.827 797,000 422.000 422,000 422,000 422,000 422,000 422,000 452,000 348,000 348.000 348,000 348,000 232,000 232,000 232.000 232,000 232,000 232,000 232,000 232,000 153.000 153,000 153,000 153,000 173.000 173,000 173,000 173,000 65,000 65,000 54,000 54,000 54,000 54,000 54,000 54,000 53,000 54,000 604,000 604,000 608,000 456,000 456,000 304,000 292.000 292.000 292.000 292.000 292.000 292.000 134.000 134.000 2.480.000
?.105 00C 2.109.000 1.957.000 1.629.000 1.477.000 1.0 0 00 1.110.000 2.568.000 2.193.000 2.193.000 2.041.000 1.715.000 M63.000 1.239.000 1.159.000 6,000 36,000 51,000 51,000 56,000 76.000 81,000 81,000 150,000 60,000 165,000 200,000 115,000 l
t 1,776,000 1,749,000 1,685.000
. ~ 19,000 1,560,000 1,419,000 1,290.000 1,144,000 1,514,000 1,50N0 1,339,000 1,254,000 1,223.000 1,111,000 1,055,000 977,000 56.8 %
55.4 %
57.0 %
54.3%
54.7 %
55.2 %
56.9 %
58.2 %
1 l
l I
l l
l 1
l :
L
(
FUEL STATISTICS
^
Year Ended December 31, 1979 1978 1977 TONS OF COAL CONSUMED BY STATION Conesville No. I thru 3, No. 5 and No. 6 __
2,556.483 2,318.049 1,983.308 Conesville No. 4 (1) _
468.204 528.421 744,450 Poston 430, % 7 309,082 441,222 Picway....
193,721 187,523 202,418 Walnut (2)
W. C. Beckjord No. 6 (1) 72.136 89,956 105.065 J. M. Stuart (1) 1,395.572 1,133.526 1 282.005 System 5.117.083 4.566.557 4.758.668 AVERAGE COST OF COAL PER TON CONSUMED (3) i Conesville No. I thru 3, No. 5 and No. 6 524.07
$23.56
$19.66 l
Conesville No. 4 (1) 2423 23.29 19.55
~
Poston -
20.88 21.25 18.40 Pic*ay 21.31 27.78 19.38 Walnut (2)
W. C. Beckjord No. 6 (1) 26.72 24.49 20.71 J. M. Stuart (1) 30.35 27.68 23.01 i
System._.._
$25.45 524.59
$20.44 BTU PER NET KWH GENERATED Conesville No.1 thru 3, No. 5 and No. 6 10,764 10.905 10.846 Conesville No. 4 (1) 9.869 10.504 9.928 Poston._...
13.362 13.644 13.589 Picway 11.583 12.537 12.615 Walnut (2) -
10.496 10,309 10.172 W. C. Beckjord No. 6 (1) 10,132 10264 10.102 J. M. Stuart (1) 14,646 13,795 14,458 Peaking units (jet and diesel)
System 10,736 10,782 10,786 FUEL COST PER NET KWH GENERATED (mills) (3)
Conesville No. I thru 3, No. 5 and No. 6 12.27 11.89 10.11 Conesville No. 4 (1) 11.17 11.52 9.03 Poston 13.00 13.15 11.16 Picway 12.16 15.82 11.38 Walnut (2) l W. C. Beckjord No. 6 (1) 13.24 11.90 9.94 t
J. M. Stuart (1) 14.29 13.12 10.87 Peaking units (jet and diesel) 40.92-38.52 34.91 l
System 13.C6 13.00 10.57 FUEL COST PER MILLION BTU's FIRED (cents) (3)
Conesville No. I thru 3, No. 5 and No. 6 114.0 112.7 93.2 i
Conesville No. 4 (1) 113.2 109.7 91.0 Poston._
97.3 96.4 82.1 Picway.. -. _
105.0 1262 90.2 Walnut (2)..__ -
W. C. Beckjord No. 6 (1) 126.1 115.5 97.8 J. M. Stuart (1) _.__..
141.0 127.9 107.6 Peaking units (jet and diesel).
279.4 279.2 241.4 -
System 121.7 120.6 98.0 -
(1) See note 1. page 26.
(2) Pet: red from service December 31, 1970.
(3) includes coal handling costs.
, 1
~. _,
T 1976 1975 1974 1973 1972 1971 1970 1969 1,197,287 949,856 1,071.E05 1,244,277 1,228,758 1,224,374 1,264.999 1,275,071 480.654 771,272 920.084 199,042 508,098 564,140 615.556 630,277 653,790 655,575 749.543 631,311 235,925 259,618 353,597 301,547 275,315 308.655 389.287 281,738 136,935 92,926 122,024 102,876 62,671 79,492 128,444 135,986 113.436 64,532 1.458.925 1.341.374 1.134.898 1,163.166 938.623 565.104 76.336 4.002.913 3.989.136 4.188.611 3.617.801 3.224.930 2.889.694 2.730.536 2.345.578
$19.64
$17.85
$11.55
$ 8.34
$7.02
$5.75
$5.07
$4.57 19.65 18.12 11.50 9.83 17.56 17.70 11.25 7.81 6.42 5.45 5.17 5.04 18.73 18.43 12.01 8.68 8.21 7.37 7.16 7.43 7.19 7.71 19.00 17.30 11.88 8.48 7.79 7.44 5.77 5.48 21.14 21.00 17.01 9.19 8.30 8.05 7.81
$19.85
$18.96
$13.02
$8.57
$7.40
$6.38
$5.61
$5.19 10,944 11,395 11,244 10,460 10,425 10,439 10,373 10,509 9,822 9,798 10,009 9,982 13.009 12,930 13,205 12.666 13,468 13,234 13,124 12.702 13,135 13,750 14.054 13,739 13,244 13,664 13.610 13.350 19,373 18.864 9,880 9,989 9.924 9,932 9,679 9,430 9,3%
9,542 9,710 9,645 9,585 9,116 9.029 9,183 9,792 13.815 14,575 14,752 15,605 14,788 14,676 14,731 14,257 10,665 10,726 10,964 10,535 10.733 11,052 11,731 11,574 10.17 9.%
6.35 4.17 3.46 2.78 2.36 2.15 9.16 8.60 5.64 4.37 10.23 10.78 7.20 4.60 3.99 3.28 3.02 2.84 11.40 11.65 8.40 5.71 4.73 4.51 4.36 4.35 6.39 6.45 8.62 8.24 5.95 3.95 3.57 3.25 2.47 2.05 i
9.43 9.58 7.87 3.81 3.24 3.31 2.97 29.70 26.62 23.63 14.12 11.53 10.41 8.95 8.23 9.84 9.90 7.34 4.33 3.84 3.47 3.09 2.76 92.9 87.4 56.5 39.9 33.2 26.6 22.8 20.5 93.3 87.7
'x,.
- 43.8 78.6 83.4 54.5 36.3 29.7 24.8 23.0 22.3 86.8 84.7 59.7 41.6 35.7 33.0 32.1 32.6 33.0 34.2 87.2 82.5 60.0 39.6 36.9 34.4 26.3 24.7 97.1 99.3 83.1 42.0 37.1 36.6 35.2 213.8 182.6 160.2 90.5 78.0 71.0 60.8 57.7 95.2 92 '4 56.9 41.8 36.2 31.5 26.4 23.9 i
1 k
o 9
WHOLLY OWNED SUBSIDIARIES (000 omitted) 1979 1978 1977 SIMCO INC.
Tons of coal sold by Simco. Peabody 866 1.008 1.163 Revenue.
$4,631
$2,835
$1,250 Less:
Expenses other than Federal income tax 2,054 2,963 2.815 Federal income tax _. _..
599 (478)
(1.300)
Net income (loss) before interest charges (1)
$1.978
$ 350
$ (265,)
Capital stock r2) _
59,000
$9.000 59,000 Capital Surplus _..__.._._.. _..
249 249 249 Earnings retained in the business (2) 972 1,604 1,871 Debt owed to parent (2)
Debt owed by parent (2) 1,236 Debt guaranteed by parent (1) 3,750 5,417 7,083 COLOMET, INC.
Revenue
$ 766
$ 258
$ 252 Less:
Expenses other than Federal income tax 310 240 167 Federal income tax -.
97 27 89 Net income (loss)
$ 359
$ (9)
$ (4)
=
=mmes-Capital stock (2)
$1,500
$1,500 11,500 30 30 33 Capital surplus 993 634 643 Earnings retained in the business (2)
Debt owed to parent (2) 1,800 1,500 1,500 COLUMBUS TRANSIT COMPANY (5)
Revenue... _
Less:
Expenses other than Federal income tax. _
f e deral income tax....
Net income.
Capital stock (2)
Earnings retained in the business (2)...
Debt owed to others (2)
MIDWAY RAILROAD COMPANY (7)
Revenue Less:
Expenses other than Federal income tax Federal income tax Net income ____._
Capital stock (2)
Earnings retained in the business (2)....
Debt owed by parent (2).
TOTAL SUBSIDIARIES-Net income before interest charges (1)
$2,337
$ 341
$(269)
Debt owed to parent (2) 1,800 1,500 1,500 Debt owed by parent (2) 1,236 i
Debt owed to others (2) 247 277 Debt guaranteed by parent (1) 3,750 5,417 7,083 (1) In July,1976. Simco borrowed $10 000.000 from Continental filinois National Bank and Trust Company of Chicago (Continental) at an interest rate of 125% of Continental's prime rate as from time to time in effect.On January 1,1978 the rate changed to prime plus 1.25*;. The Cerr.pany has guaranteed this note, which is payable quarterly through June,1982. by Simco. Interest on this note is mctuded under " Interest Charges" in the Consolidated Results of Operations.
(2) At year end.
i l,
i
1976 1975 1974 1973 1972 1971 1970 1*49 y
1;470 1.424 1,516 g
y y
g 5 4,803
$ 3,706
$ 1,791
$ 1,210
$1,440
$1,088
$1,566
$1,130 3,535 3.612 3.015 2,253 1,651 991 710 583 (416)
(519)
(726)
(65)
(294) 14 236 172 5 1.684 5 613
$ (498)
$ (978)
$ 83
$ 83
$ 620
$ 375
$ 9,000
$ 9,000
$ 7,000
$ 5,000
$4,000
$2,500
$2,500
$2,500 249 249 249 249 249 249 249 249 2.312 1,514 901 1,399 2,377 2.294 2,511 3,091(3) 11,000 11,350 9,500 5,700 4,600 300 688 756 502 250 9,583
$ 415
$ 122 5 291
$ 198
$ 79 5 58
$ 50
$ 268 144 123 124 113 105 86 70 45 14 79 30
_ JJll)
(14) 117 5 257 5
(1) 88 35 5 (13)
$ (14)
$ (20)
W
$ 1,500
$ 1,500
$ 1,500
$ 1,500
$1,500
$1,500
$1.500
$1,500 30 30 30 30 30 30 30 30 l
648 390 391 302 268(4) 231 245 265 800 1,000 1,000 1,220 1,120 890 675 315 5 4,152(6)
$7,695 37,893
$7,386
$6,956 3,461 7,586 7,258 6,991 6,636 (220)
(41) 230 142 58
$J
$ 262 J
$ 911 W
$ 855 5 855
$ 855 5 855 1,748 2,048 1,958 1,916 520 1,210 1,605 1,691 2
$ 21 5 67
$ 237 56 93 57 67 92 (31)
(14) 3 80 (54)
$ (62)
$ (22)
(3)
$ 65 5
$ 397 5 397 5 397 5 397 (13) 49 71 75 210 240 240 200
$ 1,941 5 612
$ (410)
(86)
$ 158 5 452
$ 850
$ 808 800 12,000 12,350 10,720 6,820 5,490 975 315 688 756 502 210 240 240 45G 520 1,210 1.%5 1,691 9,583 (3) includes $400.000 adjustment due to sett!ement of Federal income taxes applicable to prior years.
(4) Includes $50.000 adjustment due to settlement of Federal income taxes applicable to prior years.
(5) Columbus Transtt Company was dissobed December 31,1973.
(6) includes gain on the safe of transit facilities.
(7) %dway Railroad Ccmpany was dissohed December 28,1973. _
l CONSOLID ATED CAPITAllZATION l
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PERCENT OF CONSOLIDATED CAPITALIZATION
& T
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GROSS AND NET PLANT
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- 97.2 39 5 9 7e 39,
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- 9 79 NET PLANT IN SERVICE AT YEAR END PER DOLLAR OF REVENUE i
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l CONSTRUCTION EXPENDITURE'.>
SOURCE OF FUNDS P.ilLLIONS OF DOLLARS) i j
1 l EXTERNAL FINANCING 182 INTERNAL FINANCING 182 146 135 126 176 j
117 115 93 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 SYSTEM CAPABILITY AND PEAK LOAD (IN THOUSANDS OF KW) l l PURCH ASED POWER GENERATING CAPA8ILITY (AT TIME OF PEAK)
E AK LOAD 3.000 3,000 2.500 2,500 SUMMER 2.000 2,000 1,500 1,500
" WINTER (seasonal) 1.000 1,000 500 i
500 0
0 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 T TAL PABILITY:2,008 2,160 2,141 2.111 2.480 2.858 2.732 2,732 2.931 2.931 1MER 1,719 1,685 1.749 1,776 1,932 1,907 1,852 2.061 2.178 2,225 EASONAL 1 1
,7 1,7 7 -
t i
KWH SALES IRATIO SCALE - IN MILLIONS) 10.000 io,000 I
I I
I I
I I
I l
9.000 9.000 1
I 8.000 8.000 7.000 y,000 6.000 6.000 TOTAL 5.000 5,000 4.000 4.000 I
3,000 RESIDENTI AL 3.000 ri i
COMMERCI AL 2*
i-A.
l 2.0*
IN DUSTRI AL gI i.m0 l
i.000 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 REVENUES (R ATIO SCALE - IN MILLIONS) 5500 I
I I
I l
l l
l l
450 450 400 400
(
350 350 300 300 250 2N TOTAL 200 200 150 150 100 gog l
RESIDENTI AL 80 80 79 COMMERCI AL 70 60 60 50 50 40 INDUSTRI AL 40 30 30 20 I
20 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979...
.. _.. ~.. _. _ _ - _ _ _ -..
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CONSOLIDATED EARNINGS AND DIVIDENDS PER COMMON SHARE (EARNINGS BASED ON AVER AGE SH ARES OUTSTANDING)
$4 00
$4 00 l
E ARNINGS PER COMMO*4 SH ARE l
l DIVIDENDS DECLARED i
"!D3?fa'#'L'." """' '^ """' ^ "S' 3.00 3 00 f
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i I
I i.00 i 00 i
l i
l 0
0 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 CONSOLIDATED EARNINGS ON COMMON 3,g i
I I
I I
I l
l i
(RATIO SCALE - IN MILLIONS) 40 40 f
35 35 30 30 25 25 I
I 20 20 15 15 l
l 10 10 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979
-,.,_,,,,.__m-.
EARNINGS COVERAGE AND RATE OF RETURN TIMES TOTAL INTEREST EARNED (BEFORE FEDER AL INCOME TAXES) 5 I
I I
I I
I I
I l
4 4
3 3
2 x
/
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1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 EARNINGS ON COMMON SHARES TO AVERAGE COMMON EQUITY
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14 14
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7 6
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1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 OPERATING INCOME TO AVERAGE NET PLANT IN SERVICE 12%
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11 io 10
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9
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7 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 INCOME BEFORE INTEREST CHARGES TO AVERAGE CAPITALIZATION I
I l
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10 to 9
i 9
A
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7 1969 1970 1971 1972 1973 1974 197' 1976 1977 1978 1979 -
FUE L AND PURCH ASED POWER INET)
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l l
p,w
< a s {- ;; p g /s t a g) ti l119 21 98 '
89 6 gg ;
1r 75
,g7g 5g77 gg7g 1979 FUEL COST PER MILLION BTU'S FIRED l
- is 120 6 J' '
i
'%3 970
'9 71 1972 1913 1974 1975
' 9 76 1977 1978 1973 38-
GROSS PAYROLL INCLUDING FRINGE BENEFITS
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7e a i
i ce.noeo 10 cossreuct,0~
CH ARGED 10 OPER ATIONS 75 5 66 9 i
s0,
47 1 46 8 476 39.1 32 9 30 6 30 8 77 1 74.1 l
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TOTA EMPLOYE S AT YEAR ENO:
- 2. _
2.e >.
2.e e 2
- 2..,
- 2. >,
2.,,,
2.ee2 3,2,
- 2. 2s 2.e,s..-.
RESIDENTIAL CUSTOMERS AND s
PERCENT INCRE ASE OVER PRIOR YE AR yyo uns ELECTRICALLY HE ATED HOMES d
dI
.e, AVER AGE ANNU4 L KWH USAGE PER RESIDENTI AL CUSTOMER
~O illliill 40-
9 The Company welcomes inquiries from stockholders and financial analysts. The information contained in this report is intended to answer as many Questions as possible regarding the Company's past history. In addition, a Uniform Forecast is prepared at least annually and updated for significant changes during the year. The Uniform Forecast, Annual and Quarterly Reports to Shareholders and other information can be obtained from the sources indicated below.
GENERAL OFFICE 215 North Front Street Columbus, Ohio 43215 J. M. Emery, Vice President and Treasurer W. L Pidock, Assistant Treasurer Phone 614-464-7650 Phone 614-464-7569 NEW YORK REPRESENTATIVE John F. Falvey & Associates 74 Trinity Place New York, New York 10006 212-233-5080 TRANSFER AGENTS REGISTRARS COMMON SHARES AND CUMULATIVE PREFERRED SHt.RES EXCEPT 4%% SERIES The Huntington National Bank BancOhio National E,ank Columbus, Ohio Columbus, Ohio Citibank, N.A.
Manufacturers Hanover Trust Company New York, New York New York, New York CUMULATIVE PREFERRED SHARES, 4%% SERIES l
The Huntington National Bank BancOhio National Bank Columbus, Ohio Columbus, Ohio TRUSTEES FIRST MORTGAGE BONDS, ALL SERIES DEBENTURES l
Citibank, N.A.
Irving Trust Company l
New York, New York New York, New York GENERAL COUNSEL AUDITORS Porter, Wright, Morris & Arthur Arthur Andersen & Co.
i l
Columbus, Ohio Columbus, Ohio t
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THE DAYTON POWER AND LIGHT COMPANY
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Financial and Operating i ; y'* ; ;. {. '..
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INm Page Page Ba la nc e S h ee ts........................................... 18-19 Fi na ncial Ra tios............................................. 23 Ca pitaliz a ti o n............................................. 20-21 Fina ncial Statistics........................................... 24 Common Shares issued and Gas Customers. Sales and O u tst a n d i n g............................................... 20
. R eve n u es................................................... 8 Com m on Sha reh olders...................................... 25 Gas Sta tistics................................................ 10 Company Capsule........................................ 2 Officers. Transfer Agents and Registrars...................... 27 Const ruction Costs.......................................... 22 Operating Revenue Ratios.................................... 16 Deliveries to Industrial and R a t e R e g ulati on.............................................. 3 Com mercial Electric Customers........................... 5 Results of Operations and Earnings Deliveries to Industrial and Reinvested in the Business............................ 14-15 Commercial Gas Customers................................ 9 Sig nificant Accounting Policies............................... 12 Directors....
..........................................26 Statement of Sources of Funds invested in Plant a nd Facilities............................ 13 Electric and Gas Operating Revenue Statistics................ 11 S u m m a ry of G ro wt h.......................................... 1 3
Electric Customers. Sales and R e ve n u e s................................................ 4 Ta x i n f o rm a tion............................................. ~ 17 Electric Statistics.......................................... 6 Tax Status of 1979 Common S t oc k Dividen d s............................................ 2 Electric System Capability and Annual System Peak.................................... 7 inquiries concerning this report should be directed to:
Paul R. Anderson Treasurer Telephone (513) 224-6360 l
Thomas R. Van Oss Supervisor - Financial Activities Telephone (513) 224-6267 This booklet has been prepared for the information of security holders and other interested persons and not in connection with any sale or offer for sale of, or solicitation of any offer to buy, any securities.
4
--.._y
SUMMARY
OF GROWTH Compound Annual Growth Rates 1 Year 5 Years 10 Years 1978-1979 1974 1979 1969-1979 Electric:
Total Operating Revenues 10.1 13.5 14.3 KWH Sales 0.5 4.0 4.9 Installed Capacility (net)
(2.0) 2.6 7.5 Peak Load (net)
-Summer (0.1) 3.1 4.4
-Winter 1.3 5.8 6.3 Total Customers 1.5 1.1 1.9 Gas:
Total Operating Revenues 2.9 16 4 12.1 Cost of Gas for Resale 6.0 19.3 14.7 MCF Sales (3.7)
(3.3)
(1.8)
Total Customers 0,0 (0.5)
0.2 Financial
Total Operating Revenues 7.7 14.2 13.5 Total Operating Expenses 7.1 15.4 14.6 Other income and Deductions 42.9 29.4 24.9 Total Interest Charges 17.3 12.7 14.8 Net income 29.4 15.7 10.3 Earnings on Common Stock 28.5 14.7 8.3 Earnings Per Share 16 2 1.2 (1.3)
Dividends Paid Per Share 3.6 0.7 09 i
~~
2 COMPANY CAPSULE SERVICE AREA MAP The Dayton Power and Light Company (Company) is an investor-owned public utility incorporated under the laws of Ohio in 1911. Located in west central Ohio, it produces and distributes electric energy to over 415,000 retail customers in MICHIGAN a 24-county area and to 14 municipalities on a wholesale
]-
i AKE ERIE basis. In addition, it furnishes gas service to over 260,000 Scleveland customers in 16 counties and provides steam service in down-Toledo e town Dayton. The Company serves an estimated population of 1.3 million. Principal industries served include electrical i
machinery, automotive and other transportation equipment, l
non-electrical machinery, agriculture, paper, rubber and plas-OHIO tic products. During 1979, approximately 69% and 30% of the y
Company's operating revenues were derived from the sale of electric energy and gas, respectively, with the balance attribu-h table to steam.
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The Company's principal executive and business office is g
z located at Courthouse Plaza Southwest Dayton, Ohio 45401 o
a.
- telephone (513) 224-6000.
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i 9 Columbus Federalincome Tax Status of Common Stock Dividends Pald l
In 1979 The Company estimates that 69.8% of the total common "i'""" Cincinnati o"'
stock dividends paid in 1979 is non-taxable to shareholders for Federal income tax purposes and is a return of capital. The a r.si g w e 8,o,,,o un..
i shareholder's cost or other basis of the shares on which the lw.u1'***
- "d dividends were paid should be reduced by this amount.
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Shareholders may want to consider the effect of the non-
'"S'""'
l taxable portion of their dividends in preparing any state or ohe River local tax returns.
KENTUCKY It is appropriate for shareholders to use this percentage for o
u, c
cu.
c.m%
Federal income tax purposes, although it is subject to final, f'.
determination by the Internal Revenue Service at a later date.
C Shareholders will be notified if such future determination E,,','t.Q *'"'
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)
results in a significant change.
c.,,,,,,,,o,,,,,,,,,,
g Dividends paid in 1979 on preferred stock are fully taxable as dividend income.
l
3 RATE REGULATION COST ADJUSTMENT CLAUSES The Company is a public utility subject to regulation by The Ohio law requires the use of a uniform fuel adjustment clause by Public Utilities Commission of Ohio (PUCO) of its retail sales of the Ohio electric utihties and semi-annual heanngs by PUCO to electricity, gas and steam. The Company's rates to these customers review f uel adjustment charges. The clause permits the flowthrough are also subject to regulation by municipal ccrporations. Appeals of fuel costs, including the f uel portion of purchased power costs, to from municipal rate regulation can be taken to PUCO if the rates electric customers. Fuel charges are subject to an annual audit, and fixed by the municipality are not acceptable. The electric rates to the Company is required to submit monthly and annual reports on municipal corporations and others who distribute electric energy to fuel costs and revenues. A law recently passed by both houses of the ultimate consumers are subject to regulation by The Federal Energy Ohio Legislature will eliminate monthly fuel cost adjustments and Regulatory Commission.
instead provide for semi-annual adjustments and full recovery of all allowable fuel costs.
Under Ohio law, rates for utilities are determined on depreciated original cost. This law includes a test period for rate making which Ohio law now also requires the use of a uniform fuel adjustment begins six months prior to the date that the application is filed and clause for the Ohio gas utilities. As the result of an order of PUCO, ends six months subsequent to that date. The law also permits the Company, effective in December 1979. implemented a revised PUCO, in its discretion, to allow utilities to normalize the tax effects purchase gas adjustment clause and began expensing gas costs as of the use of liberalized depreciation for determining income taxes recovered through revenue. The portion of gas costs recoverable in and to include in the rate base construction work in progress on future periods is deferred. This revised clause provides for quarterly projects at least 75% completed, but only in an aggregate amount up determination of gas recovery rates including adjustments to elimi-to 20% of the rate base, excluding construction work in progress.
nate deferred balances of purchased gas costs. The clause is sub-Rate increases requested under the law are permitted to go into ject to an annual audit as well as hearings by the PUCO to review the effect, subject to refund, nine months af ter the date of filing if PUCO charges and the Company is required to submit monthly and quar-has not acted. If rates in any municipality are to beincluded in a rate terly reports.
increase application, the utility must notify the municipality of its 3,,
intention to file and of the propcsed rates not less than 90 days Commiselonere Party Age Espires
Background
before filing. The Ohio Consumers' Counselis authorized to partici-Wdham S Newcomb. Jr.*
Rep.
35 2/1/85 PUCO Legal Director, pate in proceedings before PUCO on behalf of residential (Chairman) ohio E P.A Legal Advisor, consumers.
v P. and Legal Counses -
GatWeath Mortgage Company Rafe increases Granted in 1979 Dafe Additional Michael oes sane cem.
62 2/i/8i state Representative or onio increase Application of Annual House of Representatives.
$*""'*",, f State Gownrnent Granted Filed Order Revenue increase
($ millions)
Stephen A Reiny" Rep 32 2/1/83 Admmistration Director. Ohio Department of Administrative
- Electric, services onto E.P A. Legal Retail 5/19/78 3/9/79 40.5*
12 Adviso,. Frankhn County Steam 1/9/79 8/29/79 1.8 25 Assistant Prosecutor sud ect to senate continnation.
- lncludes $30 million of emergency increase collected since i
June 14,1978.
4 ELECTRIC CUSTOMERS, SALES AND REVENUES 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1989 CUSTOMERS, at year-end Residential-electric heating.
70,880 64,597 57.983 46,818 42,100 38,143 30,552 22.013 17,930 14,598 11,078 Residential - other.
303,034 303,604 306.931 313.421 313,436 314.392 316.934 317,086 311,761 306,464 295,640 Total residential 373.914 368,201 364,914 360,239 355,536 352,535 347,486 339,099 329.691 321.062 306,718 Commercial 35,092 34,883 34,895 34,747 34.464 34,730 35,017 34,434 33,807 33,343 32,303 Industrial.
2.532 2,552 2,600 2.556 2,550 2,297 2,151 2.062 1,971 2,064 1,970 Public authonties.
4,991 4,930 5,036 5,042 4,968 4.879 4,641 4,397 4,350 4,262 4,081 Other 17 17 16 16 16 18 16 14 14 15 18 Total customers 416.546 410,583 407.461 402,600 397.534 394,459 389,311 380,006 369,833 360,746 345,090 KILOWATT HOUR SALES (000,000)
Residential-electric heating.
1,456 1.389 1,193 963 844 739 555 450 359 291 222 Residential - other.
2,179 2,223 2.288 2.248 2,293 2,229 2.301 2.138 2,080 1.988 1,805 Total residential 3,635 3,612 3,481 3,211 3,137 2,968 2,856 2.648 2,439 2,279 2,027 Commercial 1,988 1,928 1,841 1,737 1,675 1,604 1,618 1,518 1,405 1,321 1,142 Industrial.
3.113 3,090 3.050 2,848 2,483 2,630 2,798 2,533 2,310 2.240 2.233 Public authorities,
951 940 932 924 884 833 850 808 766 703 654 Other 543 607 647 501 413 368 260 256 247 339 259 Total electric sales.
10.230 10,177 9,951 9,221 8.592 8.403 8,382 7,763 7,167 6,882 6,315 OPERATING REVENUES ($000)
Residential-electric heating,
55,059 48,142 36.377 27,223 23.520 16,758 9.410 7,338 5,941 4,460 3.205 Residential - other.
110,268 101.702 88.658 84,610 85,196 70,946 54,652 51,500 49,537 45,864 40,564 Total residential 165,327 149,844 125.035 111,833 108,716 87,704 64,062 58,838 55,478 50,324 43,769 Commercial 79,022 70,212 63,477 56,808 54.432 44,674 33,401 30,971 29,348 26,736 22,556 Industrial..
100,256 90,967 77,825 66,774 59.403 52,101 37,736 33,101 31,014 27.988 25,227 Public authonties,
34.417 31,232 27.266 24,753 23,434 18.844 14.197 13,151 12,616 11.117 9,715 Other 19.530 19,890 17.703 13.503 10,708 7.972 4,622 4,681 4,495 5,097 3,760 Total operatmg revenues 398,552 362,145 311,306 273.671 256,693 211,295 154,018 140.742 132.951 121,262 105.027
5 DELIVERIES TO INDUSTRIAL AND COMMERCIAL ELECTRIC CUSTOMERS Major Standard Industrial Classifications Total Sales - MWH
% of Total Variation 197S to 1978 1979 1978 1979 MWH Electrical and Electronic Equipment...
527,260 590,520 10.3 (63,260)
(10.7)
Transportation Equipment..
518,583 520,579 10.2 (1.996)
(0.4)
Machinery Except Electrical 418,711 433,322 8.2 (14,611)
(3.4 )
265.810 266,912 5.2 (1.102)
(0.4)
Food Stores......
Rubber and Miscellaneous Plastic Products...................
257.637 252.484 5.0 5.153 2.0 Stone. Clay, Glass and Concrete Products.........
253,998 242,498 5.0 11.500 4.6 Food a nd Kind red Prod ucts...................................
234,551 209.368 4.6 25.183 12.0 Paper and Allied Products..................
232,169 206,363 4.6 25,806 12.5 Real Estate....
216.260 212.146 4.2 4,114 1.9 214,119 208,109 4.2 6.010 2.9 Eating and Drinking Places...........
Health Services............
180,859 176.630 3.5 4,229 2.4 162.511 159,343 3.2 3.168 2.0 Primary Metal Industries..........
Fa b rica ted M etal Prod u cts....................................
156,262 145,299 3.1 10,963 7.5 124,805 127,176 2.4 (2,371)
(1.9)
General Merchandise Stores....
120.939 124,824 2.4 (3,885)
(3.1)
Printing and Publishing......
Chemical and Allied Products.
114,975 104,165 2.3 10,810 10.4 Automotive Dealers and Service Stations......
79.722 84.720 1.6 (4,998)
(5.9)
Membership Organizations........................
74,287 71.422 1.5 2,865 4.0 58,212 56.981 1.1 1.231 2.2 Miscellaneous Retail........
Hotels and Other Lodging Places.........................
56,664 59.488 1.1 (2.824)
(4.7)
S u b-Total...............
4,268.334 4,252.349 83.7 15.985 0.4 832,542 766,264 16.3 66.278 8.6 All Other Industrial and Commercial TOTAL INDUSTRI AL AND COMMEPCI AL.....................
5.100,876 5.018,613 100.0 82,26o 1.6 Ten Largest Electric Customers Listed in Alphabetical Order Bergstrom Paper Company Delco Mo:Nne Division GMC Cargill, Inc.
Delco Products Divison GMC Corning Glass Company inland Manufacturing Division GMC Dayton Tire and Rubber Company National Cash Register Corp.
Delco Air Conditioning Division GMC Southwestern Portland Cement Co.
+
-6 ELECTRIC STATISTICS 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 Electric Capt billty Installed gifterating capability (net)-MW At year-er'd 2,537 2.588 2,408 2,408 2,412 2,232 2,046 1,914 1,717 1,515 1,234 Purchased capability-MW At year-end 200 200 157 174 158 158 214 67 157 273 Total capab lity (net)-MW At year.end 2.537 2,7.'8 2,608 2,565 2,586 2.390 2,204 2,128 1,784 1,672 1,507 System Peak Load (not)-MW For the year - Summer 1,938 1,940 1,954 1,793 1,705 1,666 1,763 1,628 1,501 1,374 1,255 Winter 2,105 2,078 1,992 1,788 1,705 1,586 1,490 1,430 1,332 1,255 1,141 Annual Load Factor *'.
59 6 59 4 60.1 63.2 61.8 62.4 59.2 58.9 58 5 60.3 61.3 Fuel Data Coat consumed (thousands of tons),
4.582 4,358 4,296 4,006 3,880 3.638 3,548 3,241 2,995 2,508 2,139 Cost per ton-$
32 04 29.12 23.48 21.96 21.99 19.88 10.42 9.50 9.86 9.15 7.30 Cost per million BTU-$
1.43 1 31 1.07
.99 1.02
.93 46
.41
.43
.39
.30 Heat rate-BTU per KWH*
10.335 10.455 10,315 10,106 10.090 10,320 10,004 9.953 10.099 10,434 10,411 Electric Output (millions of KWH)
Generation Coal fired units 10.144 9,448 9,277 8,941 8,383 7,908 8,176 7.569 6,963 5,699 5,022 Other units 218 235 178 214 118 126 48 171 162 170 44 Power purchases 633 1,171 1,165 988 805 1,060 1,003 767 691 1,631 1,727 Interchanged power (net) 101 135 92 (76)
(55) 33 (63)
(38)
(59)
(59) 23 Company use and line losses (86G)
(812)
(761)
(846)
(659)
(724)
(782)
(706)
(590)
(559)
(501)
Total 10.230 10,177 9,951 9,221 8,592 8,403 8,382 7,763 7.167 6,882 6,315
- Includes test generation.
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'8 GAS CUSTOMERS, SALES AND REVENUES 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 CUSTOMERS, at year-end Reudential-with space heating.
237,920 237,669 239,433 240,437 240,435 241,030 242,817 243,916 238,915 233,824 229,873 Residential - other.
3,908 3,932 3,946 4,044 4,504 4,578 4,656 3,985 4,564 5,000 5.446 Total residential 241,828 241,601 243,379 244,481 244,939 245,608 247,473 247,901 243,479 238,824 235,319 Commercial 18,161 18,416 18,882 19,356 19,661 20,314 21,041 21,376 21,250 21,077 20.765 Industrial.
1,411 1,421 1,430 1,435 1,452 1,447 1,316 1,224 1,158 1,178 1.117 Pub!ic authorities.
1,196 1,203 1,180 1,212 1,2J6 1,298 1,339 1,151 1,136 1,087 1,074 Total customers 262,596 262,641 264,871 266,484 267,288 268,667 271.169 271,652 267,023 262.166 258,275 MCF SALES (000)
Residential 34,362 36,058 34,743 36,089 35.748 37,360 37,440 42,022 40,853 40,844 41,908 Commercial 9,298 9.259 8,183 9,978 9,664 11,848 12,385 13,740 13,083 12,774 12,700 Industrial.
16.450 17,274 12.431 18,260 17,507 22.239 23,124 24,792 19,427 17,783 17,944 Public authorities.
3.245 3,175 2,210 3,146 2.951 3,585 3,956 4,198 3,996 3,415 3.185 Total gas sales 63,355 65,766 57,567 67,473 65,870 75,032 76,905 84,752 77,359 74.816 75,737 OPERATING AEVENUES ($000)
Residential 97,692 95.506 80,689 67,373 55,780 44,582 39,793 42,830 39,798 34,034 33,284 Commercial 24,232 22,889 18,072 17,284 13.562 12,270 11,180 12.032 10,908 9,302 8,886 Industrial,
40,823 39,805 24,879 28,123 21.698 19,694 16,932 17,363 13.580 10.984 10,589 Public authorities.
8,062 7.333 4.590 5,072 3,805 3,404 3,191 3,266 2,951 2,252 1,973 Other 1,010 1,389 1,160 712 572 457 600 434 389 241 229 Total operating revenues 171,819 166,922 129.390 118,564 95.417 80,407 71.696 75,: 5 67,626 66,813 54,961
9 DELIVERIES TO INDUSTRIAL AND COMMERCIAL GAS CUSTOMERS Major Standard Industrial Classifications Total Sales - MCF
% of Total Variation 1979 to 1978 1979 1978 1979 MWH Food and Kindred Products...
2,468.537 1,815,254 9.6 653.283 36.0 Real Estate 2,332,222 2.508,160 9.1 (175,938)
(7.0) 2,245,461 3,868,983 8.7 (1,623,522)
(42.0)
Electrical and Electronic Equipment.....
Transportation Equipment.....
1,993,116 1,964.502 7.7 28,614 1.5 1,784,767 2.093,891 6.9 (309.124)
(14.8)
Machinery, Except Electrical..
Primary Metal Industries...
1,588,830 1,497.822 6.2 91.008 6.1 Rubber and Miscellaneous Plastic Products.........
1.483,465 1.533,860 5.7 (50,395)
(3.3)
Paper and Allied Products....
1.307,429 1.053,377 5.1 254,052 24.1 1.076.982 1,008,506 4.2 68,476 6.8 Fabricated Metal Products.....
897.563 915,753 3.5 (18.190)
(2.0)
Stone. Clay. Glass and Concrete Products.............
874,193 864,735 34 9,458 1.1 Membership Organizations 822,404 734,001 3.2 88,403 12.0 Health Services..
712,519 783,253 2.8 (70,734)
(9.0)
Printing and Publishing..
Personal Services....
697.092 692,174 2.7 4.918 0.7 Eating and Drinking Places.
619.100 655,530 2.4 (36.430)
(5.6)
Automotive Dealers and Service Stations....
381,058 404,657 1.5 (23,599)
(5.8)
Educational Services,.
358,774 296,893 1.4 61,881 20 8 Food Stores.....
304,977 320,159 1.2 (15,182)
(4.7)
Hotels and Other Lodging Places....
296,566 307.667 1.1 (11,101)
(3.6)
Chemicals..
272,245 264,046 1.1 8,199 3.1 Sub-Total.
22.517.300 23,583,223 87.5 (1,065,923)
(4.5)
All Other industrial and Commercial..........
3,231,245 2.950.119 12.5 281.126 95 TOTAL INDUSTRIAL AND COMMERCIAL 25,748,545 26,533.342 100 0 (784,797)
(3.0)
Ten Largest Gas Customers Listed in Alphabetical Order Cargill. Inc.
Delco Moraine Div. GMC Corning Glass Co.
Delco Products Div. GMC Dayton Press. Inc.
inland Manufacturing Div. GMC Dayton Tiro and Rubber Co.
Miamisburg Box Board Div. Interstate Folding Box Co.
Delco Air Conditioning Div. GMC Stolle Corp.
- 10 GAS STATISTICS 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 Reeldential Statistico (per customer everage)
Sales-MCF 142.2 148.8 142.7 147.8 146.0 151.9 151,1 171.5 170.0 172.7 180.2 Degree days (annual).
6.017 6,326 5.936 6,034 5,380 5,502 5,122 6,035 5.596 5,785 5,908 Revenue-$
404.38 394.14 331.36 275.92 227.78 181.37 160.64 174.79 165.58 143.93 143.12 Rate per MCF-$
2.84 2.65 2.32 1.87 1.56 1.19 1.06 1.02
.97
.83
.79 Peak Day Information System peak day load - MCF.,
488.024 504,170 534,453 478,917 462,246 488,127 545,401 639,628 607,895 635,286 508.098 Average temperature 2'
2*
-15*
0*
15*
18*
6*
-9*
2*
-4*
10' Load factor-%
37.6 36.7 30.1 39.1 38.7 43.9 39.0 36.9 35.8 33.3 41.7 Average Cost of Purchased Gas
-$ per MCF 2.14 1.90 1.78 1.27 1.09
.74
.61
.55
.54
.48
.45 Gas Output (thousands of MCF)
Purchased Columbia Gas Transmission Corporation 62.242 62,781 54,134 64.635 61,152 76,658 77,493 86,227 79,267 76.938 77,140 Columbia LNG Corporation 4.611 4,549 4,066 3,120 3.012 1,478 133 135 127 759 1,142 146 151 171 161 157 161 Other Liquified petroleum gas 40 441 83 32 8
28 38 31 220 22 Company use and unaccounted for (3.631) (1,739)
(1,201) (1,004) 532 (3.258)
(767) (1,684) (2,100)
(2,499) (1,586)
Total 63.355 65,766 57,567 67,473 65,870 75,032 76.905 84,752 77,359 74,816 75.737
11 ELECTRIC AND GAS OPERATING REVENUE STATISTICS 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 ELECTRIC Revenue per KWH - g Residential-electric heating.
3.78 3.47 3.05 2.83 2.79 2.27 1.70 1.63 1.66 1.54 1.44 Residential - other.
5.06 4.58 3.87 3.76 3.72 3.18 2.38 2.34 2.38 2.31 2.25 Total residential 4f5 4.15 3.59 3.48 3.47 2.96 2.24 2.22 2.28 2.21 2.16 Commercial.
3 3.64 3.45 3.27 3.25 2.79 2.07 2.04 2.09 2.02 1.98 Industrial.
3; 2 94 2.55 2.34 2.39 1.98 1.35 1.31 1.34 1.25 1.13 Public authorities.
3L 3 32 2.93 2.68 2.65 2.26 1.67 1.63 1.65 1.58 1.49 28/
2.75 2.34 2.16 2.03 1.67 1.17 1.16 1.24 1.14 1.08 Other TOTAL 3.86 3 53 3 10 2.94 2.96 2.49 1.82 1.79 1.84 1.74 1.65 GAS Revenue per MCF - $
Residential-with space heating.
2.84 2.65 2.32 1.86 1.56 1.19 1.06 1.02 0.97 0 83 0.79 Residential-other....
3 75 3.63 3.43 2.75 2.46 1.80 1.67 1.48 1.42 1.26 1.12 Total residential 2.84 2.65 2.32 1.87 1.56 1.19 1.06 1.02 0.97 0.83 0.79 2.61 2.47 2.21 1.73 1.40 1.04 0.90 0.88 0.83 0.73 0.70 Commercial Industrial.
2.48 2.30 2.00 1.54 1.24 0.89 0.73 0.70 0.70 0.62 0.59 Public authorities..
2.48 2.31 2.08 1.61 1.29 0.95 0.81 0.78 0.74 0.66 0.62 2.70 2.54 2.25 1.75 1.44 1.07 0.92 0.89 0 87 0.76 0.72 TOTAL
L.
12 SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation Deferred Federalincome taxes are also provided for timing differences The financial statements include the accounts of the Company and its related to current State property and exci'e taxes, bond reacquisition costs, wholly-owned subsidiary which owns the Company's corporate headquar-accelerated amortization of environmental control facilities and several ters facility. The unconsolidated subsidiaries. which are accounted for on insignificant items.
the equety basis, are not significant.
The income taxes - credits classified under Other income and Deduc-Revenues tions result principally from the Federal income tax deductions related to The Company records revenues as billed to its customers and does not erest expuse ansing hom investnwnts in constmction wod in progress.
recognize any unbilled portion which exists at the end of an accounting The Company follows flow-through accounting for all other income tax ves e a credits are deferred and amortized over the lives of the the ugh cos ad ust ent clauses related property.
Purchased Gas and Fuel Costs Prior to December 1979, gas for resale included the cost of deliveries from Allowance for Funds Used During Construction peancipal suppliers through the 19th of each month; the cost for the period Allowance for funds used during construction (AFC) represents the esti-from the 20th to the end of the month was not recorded until the following mated portion of interest and equity costs of capital funds applicable to month.
construction. These costs are transferred from the income statement to As a result of an order by The Public Utihties Commission of Ohio construction work in progress and are capitalized in the same manner as (PUCO), the Company, effectwe in December 1979, implemented a revised labor and material costs. because under established regulatory rate practi-purchased gas adjustment clause and began expensing gas costs as re-ces a utility is permitted to include a f air return on, a nd the recovery of, these covered through revenue. The portion of gas costs recoverable in future capital costs through their inclusion in the rate base and the provision for periods is deferred.
depreciation.
The cost of fuel used to produce electricity and steam at generating As the result of a requirement of the Federal Energy Regulatory Commis-stations is expensed as consumed on a calendar month basis.
sion, the Company changed its AFC rate from a simple-interest rate to a Pensions semi-annually compounded rate as of January 1,1977. The requirement Trusteed non-contributory retirement plans provide for monthly retirement also revised the financial reporting of AFC in that the portion of the AFC income to employees, with a normal retirement age of 65. Contnbutions attributable to borrowed funds is now credited to interest Charges with the provide for the normal cost and the amortization of unfunded prior service equity funds portion af AFC reported in Otherincome and Deductions.The costs over twenty years.
Company has nd reclassified AFC into its borrowed and equity funds components fr, periods prior to January 1,1977.
Maintenance All espenditures for maintenance and repairs of units of property, including p,,p, rte and Plant renewals of minor items, are charged to the appropriate maintenance Const uction costs include overheads for payroll-related costs and admin-expense accounts.
strative and general expenses as well as the estimated cost of funds used Depreciation during construction. The replacement of a unit of property is accounted for The Company provides for depreciation for financial reporting purposes on as an addition and retirement. At the time of retirement of a unit of property, the straight-isne method using rates based on periodic studies the accumulated provision for depreciation is charged with the book value income Temes thereof together with the cost of removal and credited with the salvage va Under various provisions of the income tax laws, the Company has elected the use of liberalszed depreciataon, which currently is greater than deprecia-tion provided for financial statement purposes The Company also deducts and amortization have been deducted from property and plant investment for income tax purposes all costs incurred in removing property from since, for ratemaking purposes, these deferred taxes reduce the rate base service. Pursuant to rate orM issued by the PUCO, the Federat income tax on which the Company is entitled tc earn a return.
effect resulting from the difference between liberalized ta x depreciation and Reclassifications straight-hne (guidelsne lives) tax depreciation for 1976 and subsequent Certain reclassifications have been made in the prior years' amounts to property additions has been normalized make them comparable to the classifications of such items in 1979.
13 STATEMENT OF SOURCES OF FUNDS INVESTED IN PLANT AND FACILITIES (Thousands)
SOURCES OF FUNDS 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 s
internally Generated Funde from operatione:
Net income.
61.536 47.551 40.225 43.429 41.168 29.666 27.015 27.099 24 898 22.352 23.025 Prmcipal non-cash provessons -
Depreciation and amortization.
32.448 30.594 27.621 27.007 25.460 23.609 21.680 20.123 18.922 16.520 14.647 Deferred Federat income taxes (net).
5.865 1226 5.821 637 1.728 990 569 357 443 789 Deferred investment taa credits (net).
3.621 8.547 9.953 5.210 4.278 Allowance for funds used dunng construction All funds (pnor to 1977).
(12.133)
(8.909)
(7.458)
(5.256)
(4.296)
(3.584)
(4.705)
(3.905)
Equity funds (after 1976).
(24 908) (16.058)
(12.236)
Funds from operations.
78.562 73.860 71,384 64.150 63.725 46.807 44.008 43.283 40.679 34.956 33.767 Davidends paid on common stock.
(40.485) (35.216)
(30.496)
(28.242) (24.199)
(20.670)
(19.830) (18.087) (17.276)
(15.081)
(14.823)
Dividends paid on preferred stock (14.297) (10.777)
(8.497)
(8.497)
(8.394)
(5.857)
(4.681)
(3.528)
(3.187)
(1.989)
(1.690)
Funds retained in the business.
23.780 27.867 32.391 27.411 31.132 20.280 19.497 21.668 20.216 17.886 17.254 Funde from other sources - not:
Decrease (increase) m working capital -
Accounts receivable.
(2.349)
(4.754)
(2.508)
(12.338)
(1,480)
(7.697) 20 (5.706) 1.297 (1.027)
(1.658)
Federalincome tax refund receivable.
1.470 10.989 (12.459) 2.950 (2.950)
Fuel stock.
(17.323) 2.106 (13.484) 1.4%
(1.147)
(11,136)
(274) 92 (1,407)
(4.136)
(455)
Prepayments.
(700)
(8.373) 1.763 (1.968)
(1.737)
(3.844)
(313) 190 (921)
(720) 5 Other current assets.
(2.308)
(3.058) 614 (1.795) 862 (1.487)
(200) 2.017 (1.351) 2.882 (2.459)
Accounts payable.
6.146 6.646 9.136 2.402 3.372 5.761 896 310 1.670 700 395 Other current liabilsties.
12.713 12.964 (2.949) 1.295 11.684 2,599 80 2.643 5.090 4.924 7.981 Other.
(4.451)
(3.911)
(1.523) 4.134 (3.976)
(614) 84 (253)
(858)
(2.009)
(6 946)
Funds from other sources.
(6.802) 12.609 (21.410)
(6.774) 10.528 (19.368) 293 (707) 3.520 614 (3.137)
Internally generated funds.
16.978 40.476 10.981 20.637 41.660 912 19.790 20.961 23.736 18.500 14.117 External Financing - not proceeds:
Long-term debt.
129.886 59.841 70.904 50.111 45.965 46.0 %
39.624 44.431 35.136 29.693 Preferred stock.
44.727 39.759 (13) 2.489 21.880 24.636 19.679 14.990 Common stock.
7.351 48.317 54.162 37,628 25.325 20.082 1.944 30.025 1.965 23.987
%7 Short-term debt (net).
(4.500) 4.500 (5.500)
(2.096)
(2.322) (13.900) 10.700 (24.550 (10.200) 18.750 Construction funds -
disbursed by trustee.
5.564 3.891 1.326 Temporary cash investments (net).
(8.038)
(8.786) 13.969 (13.%9)
Reduction in long. term debt and preferred stock.
(3.430) (24.639)
(49.364)
(749) (29.310n Funds from financmg.
176.060 113.283 95.497 67.508 42.373 da.136 52.304 40.725 41.525 48.923 64 400 invested in plant and facilities.
excludmg allowance for funds used dunng construction.
193.038 154.359 106.478 88.145 84.033 86.648 72.094 61.686 65.261 67.423 78.517 Allowance for funds used dunng construction All funds (prior to 1977) 12.133 8.909 7.458 5.256 4296 3.584 4,705 3.905 Equity funds (after 1976).
24.908 16058 12.236 TOTAL INVESTED IN PLANT AND FACILITIES.
217.946 170.417 118.714 100.278 92.942 94.106 77.350 65.982 68.845 72.128 82.422
14 RESULTS OF OPERATIONS AND EARNINGS REINVESTED IN THE BUSINESS (Thousands) 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 OPERATING REVENUES Electric 398.552 362,145 311,306 273,671 256,693 211,295 154,018 140,742 132,951 121,262 105.027 Gas.
171,819 166.922 129,390 118,564 95,417 80,407 71,696 75,925 67,626 56,813 54,961 Steam 6,861 6,746 5,828 5,627 5,465 4,855 3,312 3,219 3,034 2.597 2.617 Total operating revenues 577.232 535,813 446,524 397.862 357,575 296,557 229,026 219,886 203,611 180.672 162,605 OPERATING EXPENSES Operation Fuel used in production 162,559 140,461 111,643 98,925 93,263 83,021 40,722 34,246 32,820 25,574 17.113 Electricity purchased for rt sale 16,874 32.549 28,105 15,410 10,975 13.378 7,690 6.064 4,059 8,528 9.817 Gas for resale 135,648 127,999 104,811 87,171 71,417 56,035 47,485 47,363 42,088 36,359 34,298 Wages 36,957 32,972 29,060 26,054 23,600 22,581 21.884 21.232 20.028 18,675 16,501 Benefits 8,420 6,588 6,464 6,476 5,885 4,470 4,688 4,469 3,677 2,892 2,698 Materials and other 19.246 20,290 17,551 11,324 9.658 6,949 6,305 7,180 6,459 5,981 6,436 Maintenance Wages 14,619 12.314 10,172 9,064 8.335 7,524 6,545 6,001 5,875 4,327 4,225 Materials and other 21.497 20,063 11,326 8,604 7,868 6,680 4,829 4,253 4.337 3.326 2,704 Provision for depreciation and amortization 30.183 28,580 26,399 25,595 24,303 22,192 20,508 18,874 17,418 15.055 12,905 Taxes other than income taxes Property 21,435 19,827 19,212 17,858 16,593 15,664 14,801 13,711 13,024 11,047 9,432 State public utility excise and other 20,474 16,489 14,983 13,855 11,188 8,745 8,371 7.661 6,825 5,855 4.764 Payroll 3,176 2,515 2,048 1,899 1,660 1,558 1,393 1,095 935 855 794 income taxes..
17,239 8,846 169 11,310 10,905 1,884 2,778 6,550 7,865 8,007 9,911 Deferred investment tax credits (net) 3,646 8,506 9.965 5,213 4.225 Total operating expenses 511,973 477.999 391,908 338,758 299,875 250,681 187,999 178,699 165,410 146,981 131,598 OPERATING INCOME 65,259 57,814 54,616 59,104 57,700 45.876 41,027 41,187 38,201 33,691 31,007 A
15 RESULTS OF OPERATIONS AND EARNINGS REINVESTED IN THE BUSINESS (Continued)
(Thousands) 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 OPERATING INCOME 65.259 57.814 54.616 59.104 57.700 45.876 41.027 41.187 38.201 33.691 31.007 OTHER INCOME AND DEDUCTIONS Allowance for funds use<* dunng construction All funds (pr or to 1977) 12.133 8.909 7.458 5.256 4.296 3.584 4.705 3.905 Equity funds (af ter 1976) 24.908 16.058 12.236 Income taxes - credits.
7.442 5.065 4.858 2.949 2.152 2.242 1.633 1.508 1.386 1.838 Other (net) 1.383 2.479 542 558 538 (393)
(652)
(768)
(1.222)
(1.224)
(259)
Total other income and deductions 33.733 23,602 17.636 15.640 11.599 9.307 6.237 5.036 3.748 5.319 3.646 INCOME BEFORE INTERCO CHARGES 98 992 81.416 72.252 74.744 69.299 55.183 47.264 46.223 41.949 39.010 34.653 INTEREST CHARGES First mortgage bonds.
42.995 37.036 34.889 30.267 27.256 PS 012 18.104 18.040 15.744 12.970 9.099 Bank toans and commercial paper.
590 318 330 438 399
.s.064 1.726 984 1.145 3.632 2.482 Other 2.758 2.148 1.302 610 476 441 119 100 162 56 47 Allowance for borrowed funds used dunng construction - credit (8.887)
(5.637)
(4.494)
Net interest charges 37.456 33 865 32.027 31.315 28,131 25.517 20.249 19.124 17.051 16.658 11.628 NET INCOME 61.536 47.551 40.225 43.429 41.168 29,666 27,015 27.099 24.898 22.352 23.025 Preferred dividends 14.297 10.777 8.497 8.497 8.394 f.857 4.681 3.528 3.187 1.989 1.690 EARNINGS ON COMMON STOCK 47.239 36.774 31.728 34.932 32.774 23.809 22.334 23.571 21.711 20.363 21.335 EARNINGS REINVESTED IN THE BUSINESS Balance at beginning of year.
116.153 11.'.595 113.363 106.673 98.098 94.959 92.359 86.875 82.440 77.158 70.710 Total.
163.392 151 469 145.091 141.605 130.872 118.768 114.693 110.446 104.151 97.521 9?.045 Add - Other 96 Deduct - Cash dividends on common stock 40.485 35.216 30.496 28.242 24.199 20.670 19.830 18.087 17.276 15.381 14.823 Other 64 Balance at end of year,
122.907 116.153 114.595 113.363 106.d73 98.098 94.959 92.359 86.875 82.440 77.158 EARNINGS PER SHARE OF COMMON STOCK 2 01 1 73 1.70 2 05 2 24 1 89 1 87 2 15 2 07 2.15 2 28 AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (000) 23.556 21.253 18.638 17.070 14.633 12.608 11.945 10.982 10.500 9.472 9.378 RATE OF RETURN ON AVERAGE COMMON EQUITY.
to 8 93 91 11 2 12 3 10 2 10 1 12 0 11 9 13 2 14 6
16 OPERATING REVENUE RATIOS 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 OPERATING REVENUES Electric.
69 0 67.6 69.7 68.8 71.8 71.3 67.3 64.0 65.3 67.1 64.6 Gas 29 8 31.1 29.0 29.8 26.7 27.1 31.3 34.5 33.2 31.5 33.8 Steam 12 1.3 1.3 1.4 1.5 1.6 1.4 1.5 1.5 1.4 1.6 Total ope:atir g revenues.
, 100.0 100.0 100.0 100 0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 OPERATING EXPENSES Operation Fuel used in production 28 2 26.2 25.0 24.9 26.1 28.0 17.8 15.6 16.1 14.2 10.5 Electricity purchased for resale 29 6.1 6.3 3.9 3.1 4.5 3.4 2.8 2.0 4.7 60 Gas for resale.
23 5 23 9 23.5 21.9 20.0 18.9 20.7 21.5 20.7 20.1 21.1 Wages.
64 6.1 6.5 6.5 6.6 7.6 9.5 9.7 9.8 10.3 10.1 Benefits 1.5 1.2 1.5 1.6 1.6 1.5 2.0 2.0 1.8 1.6 1.7 Materials and other.
33 38 39 2.8 2.7 2.3 2.7 3.3 3.2 3.3 4.0 Maintenance Wages.
2.5 23 2.3 2.3 2.3 2.5 2.9 2.7 2.9 2.7 2.6 Materials and other.
37 37 25 2.2 2.2 2.3 2.1 1.9 2.1 1.8 1.7 Provision for depreciation and amortization.
52 5.3 5.9 6.4 68 7.5 9.0 8.6 86 8.4 7.9 Taues other than income taxes Property.
3.7 37 4.3 4.5 t.6 5.3 6.5 6.2 6.4 6.1 5.8 State public utility excise and other 36 3.1 3.4 3.5 3.1 3.0 3.7 3.5 3.3 3.2 2.9 Payroll.
,6
.5
.5
.5
.5
.5
.6
.5
.5
.5
.5 income taxes..
30 1.7 2.8 3.1
.6 1.2 3.0 3.8 4.4 6.1 Deferred investment tax credits (net) 6 1.6 2.2 1.3 1.2 Total operating expenses 88 7 89.2 87.8 85.1 83.9 84.5 82.1 81.3 81.2 81.3 80.9 OPERATING INCOME.
11.3 10.8 12.2 14.9 16.1 15.5 17.9 18.7 18.8 18.7 19.1 OTHER INCOME AND DEDUCTIONS
- 5.8 44 40 3.9 3.3 3.1 2.7 2.3 1.8 2.9 2.2 INCOME BEFORE INTEREST CHARGES.
17.1 15 2 16 2 18 8 19.4 18.6 20.6 21.0 20.6 21.6 21.3 INTEREST CHARGES
- 64 63 7.2 7.9 7.9 8.6 8.8 8.7 8.4 9.2 7.1 NET INCOME 10 7 8.9 9.0 10.9 11.5 10.0 11.8 12.3 12.2 12.4 14.2 Preferred dividends 2.5 2.0 1.9 2.1 2.3 2.0 2.1 1.6 1.5 1.1 1.1 EARNINGS ON COMMON STOCK 82 6.9 7.1 8.8 9.2 80 9.7 10.7 10.7 11.3 13.1
- See Significant Accounting Policies - Allowance for Funds Used During Construction.
TAX INFORMATION 17 (Thousands) m 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 income tan expense Federalincome tax at statutory rate applied to pre-tax income..
34.490 28,722 21,840 27,361 25.990 14.068 13 517 15.428 15.060 14.032 17.391 Decreases in tax from -
Allowance for funds used dur-ing construction which does not constitute taxable income 15,545 10.414 8,030 5.824 4.276 3.580 2,523 2,062 1,720 2.315 2,062 Excess of tax depreciation and amortization over book depreciation and amortization 4.341 5.689 8.340 8,070 8.980 8.088 7.732 6.216 5,536 3,894 3.675 (flow-through).
investment tax credits.
418 351 195 149 65 2.519 1,922 2,029 1,259 1,665 1,805 Other (net).
743 g19)
(1)
(256)
(309) 2M 195 79 66 (11)
(62)
Total tax expense 13.443 12.287 5.276 13.574 12.978 (358) 1.145 5.042 6.479 6,169 9.911 Effective tax rate (1)..
17.93 20 53 11.60 23.81 23.97 4.07 15 69 20 65 21.63 30 09 Components of income tax expense Total tax currently payable (ref undable)...
2.646 (719) (11,083) 7,727 7,000 (1,348) 576 4,685 6,036 5,380 8.943 Deferred taxes -
Unrecovered gas costs.
645 Bond reacquisition...
(129)
(129) 3,536 Liberalized depreciation and amortization...
4,023 2.922 698 704 435 410 Other..
1,326 433 1,587 (67) 1,265 580 569 357 443 789 968 Deferred investment tax credits (net)...
3,621 8.547 9,953 5.210 4,278 Other deferred items.
1.311 1.233 585 Total tax expense.
13.443 12.287 5.276 13.574 12.978 (358) 1.145 5.042 6.479 6.169 9.911 Classification of income tax empense Operating Expenses-Income taxes..
17.239 8.846 169 11,310 10,905 1.884 2.778 6.550 7,865 8,007 9,911 Deferred investment tax 3.646 8,506 9,965 5,213 4.225 credits (net).
Other incorne and Deductions-Income taxes-credits.....
(7.442) (5,065) (4,858) (2.949) (2.152) (2.242) (1.633) (1.508) (1.386) (1,838)
Total tax expense 13.443 12.287 5.276 13.574 12.978 (358) 1.145 5.042 6.479 6.169 9.911 (1) Ratio of total tax expense to pre-tax income.
Taxes other then income temos 21,435 19,827 19,212 17,858 16,593 15,664 14,801 13,711 13.024 11,047 9.432 Property..
State public utility excise.
19.698 15.754 14,258 13,350 10.751 8,489 8.194 7.515 6,672 5,676 4.568 3,176 2.515 2.048 1.899 1,660 1,558 1,393 1,095 935 855 794 Payroll....
Other.
776 735 725 505 437 256 177 146 153 179 196 T o t al..............
45.085 38,831 36.243 33.612 29.441 25.% 7 24.565 22,467 20,784 17.757 14.990 1
. 18 BALANCE SHEETS (Thousands)
ASSETS 1979 1979 1977 1979 1975 1974 1973 1972 1971 1979 1999 Property and Plant at ore 9 nal cost 8
6 970.292 900.360 821.241 797.366 766,634 701.593 640.875 592,484 541.458 491.162 423.252 Electnc.
Gas.
105.854 104.393 102.593 101.344 101.993 100.992 100,147 98.352 95.071 91.350 86.964 Steam.
11.902 10.205 10 207 10.131 10.041 10.017 9.935 10.631 10.553 10.413 10.245 Total property and plant in service 1.088.048 1.014.958 934.041 908.841 878.668 812.602 750.957 701.467 647.082 592.925 520.461 Lese-Accumulated provision for deprecistson and amorteration.
320.507 298.524 274.300 251.940 231.887 210.989 198.934 182.575 165.689 151.258 136.300
-Accu.nulated deferred income tanes related to liberalised depreciation and amortiistion.
9.189 5.176 2.247 1.549 845 410 Construction work in progress.
506.916 370.756 287.294 198.699 139.848 118.524 99.308 77.403 68.872 58.643 67,460 Acquisthon adjustments. being amontized 3.991 4.237 4.484 4.731 4.347 4.574 5.179 5.614 6.352 7.183 1.136 Total property and plant.
1.269.259 1.086.251 949.272 858.782 790.131 724.301 656,510 601.909 556.617 507.493 452.757 Unesponded Construction Funde Held by Trustee.
5.230 9.852 12.780 Current Aeoeto Cash.
5.462 5.323 3.928 4.613 3.705 4.842 4.928 4.908 6.431 5.190 8.350 Temporary cash investments, at cost..
16.824 8.786 13.969 Accounts receivable, less provisson for uncollectible accounts.
47.866 45.517 40.763 38.255 25,917 24.437 16.740 16.760 11.054 12.351 11.324 Federalincome tax refund recervable 1.470 12.459 2.950 Fuet stock, at average cost..
49.653 32.330 34.436 20.952 22.448 21.301 10.165 9.891 9.983 8.576 4.440 Materials and supphes, at average cost 11.596 9.908 8.108 8.093 7.142 7.005 5.428 5.246 5.742 5.632 5.353 Prepayments 19 612 18.912 10.539 12.3C2 10.334 8.597 4.753 4,440 4.549 3.628 2.908 Other...
594 113 251 195 259 121 125 127 125 125 126 Total current assets.
151.607 122.359 110.484 98.379 69.805 69.253 42,139 41.372 37.884 35.502 32.501 Other Assets State and local tames appticable to subsequent years.
32.308 29.915
?6,441 23.890 22.913 20.892 19.261 17,995 17.103 15.815 13.976 Unamortered loss on reacquired debt 6.843 7.104 7.366
]
Unamortised debt expense.
5.061 3.542 3,564 3.217 2.922 2.554 2.123 1.829 1.700 1.296 949 Leased construction equipment.
1.952 2.400 2,441 2.608 2.920 1.699 Unrecovered gas costs..
1.401 Deferred charges and other.
7.147 9.030 6.359 5.233 6.441 3.873 4.290 4.524 4.861 4.512 3.999 Total other assets.
54.712 51.991 46.171 34.948 35.196 29.018 25.674 24.348 23.664 21.623 18.924 1.480.808 1.270.453 1.118.707 992.109 895.132 822.572 724.323 667.629 618.165 564.618 504.182 a
19 BALANCE SHEETS (Continued)
(Thousands) 1979 1979 1977 1976 1975 1974 1973 1972 1971 1970 1949 CAPITALIZATION AND LIABILITIES Capitalisetton Common shareholders' equity.
443.266 429.434 379.800 324.406 280.101 246.212 223.611 219.431 183.924 177.845 148.575 Preferred stock Without mandatory redemption provisions.
82.851 82.851 82.851 82.851 82.851 82.851 82.851 57,851 57.851 37.851 37.851 With mandatory redemption provis.ons..
107.500 63.750 25.000 25.000 25.000 22.500 Long-term debt.
667.403 538.418 480.623 463.979 410.966 365.091 347.321 307.340 307.358 262.492 226.982 Total capitalization.
1.301.020 1.114.453 968.274 893.236 798.918 716 654 653.783 584.622 549.133 478.188 413 408 Current Liabilities Farst mortgage bonds-2h% Senes Due 1975.
28.850 3 % Series Due 1978..
8.000 3 % Senes A Due 1978..
15.000 Preferred stock sinking fund requirements.
1.250 1.250 Notes payable-commercial paper.
4.500 2.000 7.500 10.500 8.000 4.500 13.000 17.500 Notes payable-banks and other.
2.420 1.928 1.329 551 4.240 678 16.400 9.200 25.250 30.950 Accounts payable...
46.251 40.105 33.459 24.323 21.921 18,549 12.788 11.892 11.582 9.912 9.212 Accrued taxes.
47.187 46.121 39.899 40.393 41.339 33.148 31.510 30.174 28.864 24.971 21.130 Accrued interest.
10.636 7.754 7.187 7.803 7.279 5.465 4.299 3.884
'3.800 2.483 2.178 Refunds due customers.
11.304 3.909 524 2.808 1.682 51 431 1.716 261 154 Other.
8.699 7.329 4.011 3.566 2.975 2.927 2.752 3.138 3.345 3.571 2.947 Total current liabihtses.
127.747 108.3 %
113.909 79,444 81.436 97.168 62.280 75.204 61.552 79.341 83.917 Deferred Credite and Other Federat income tax effect of state and local taxes apphcable to subsequent years.
14.778 14.320 12.692 8.800 8.630 8.211 7.632 7.063 6.706 6.401 5.948 income taxes other than those related to hberalized depreciation and amortization.
4.049 3.603 3.784 660 1.137 Investment tan credits..
31.610 27.989 19.442 9.488 4.278 Other.....
1.604 1.692 606 481 733 539 628 740 774 688 909 Total deferred credits and other.
52.041 47.604 36.524 19.429 14.778 8.750 8.260 7.803 7.480 7.089 6.857 1.480.808 1.270.453 1.118.707 992.109 895.132 822.572 724.323 667.629 618.165 564.618 504.182
_n
20 COMMON SHARES ISSUED AND OUTSTANDING 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 Number of Common Shares Outstanding at the beginning of the year.
23,356.046 20,415.991 17,642,682 15,431,486 13,765,911 11,988.699 11.901.264 10.540.372 10,450,409 9,403,489 9.365,262 Public sales
- 2,500,000 2,500.000 2,000,000 1,500,000 1,700,000
- 1,300.000
- 1.000,000 Employee plans.
118.684 178,404 110.152 90,876 137,728 77,212 87,435 60,892 89,963 46.920 38.227 Automatic Dividend Reinvestment and Stock Purchas ; Plan 360,732 261.651 163.157 120.320 27,847 Outstanding at the end of the year.
23.835,462 23.356.046 20,415.991 17,642,682 15,431,486 13,765,911 11,988,699 11,901,264 10.540,372 10,450,409 9.403,489 CAPITALIZATION (Thousands) 1979 1978 1977 1976 1975 1?74 1973 1972 1971 1970 1969 Common Shareholders' Equity Common stock, $7 par value.
166.848 163,432 142,912 123.499 108.020 96,361 83,921 83,309 73,782 73,153 65.824 Other paid-in capital.
153.511 149,739 122,293 87,544 65.408 51,753 44,731 43,763 23,267 22,252 5.593 Earnings reinvested in the business.
122.907 116.153 114,595 113,363 106.673 98,098 94,959 92.359 86.875 82.440 77,158 Total common shareholders' equity.
443,266 429.434 379.800 324.406 280.101 246,212 223,611 219.431 183,924 177.845 148,575 Preferred Stock, Cumulative, $100 Par Value Without mandatory redemption provisions 3 75 % A 9.328 9,328 9.328 9.328 9.328 9.328 9.328 9.328 9,328 9.328 9,328 3 75 % B 6.940 6,940 6.940 6.940 6.940 6,940 6,940 6.940 6,940 6.940 6,940 3.90 % C 6.583 6,583 6,583 6,583 6,583 6,583 6.583 6.583 6.583 6.583 6,583 7.48 % D (NYSE) 15.000 15.000 15,000 15,000 15.000 15,000 15,000 15,000 15,000 15,000 15.000 7.70 % E (NYSE) 20.000 20.000 20,000 20.000 20.000 20,000 20.000 20,000 20.000 7 375% F (NYSE) 25.000 25.000 25,000 25,000 25,000 25,000 25.000 82,851 82,851 82,851 82,851 82,851 82,851 82.851 57,851 57.851 37.851 37,851 With mandatory redemptiun provisions (Exclusive of sinking fund payments due within one year) 12 50% G (NYSE),
22,500 23,750 25,000 25,000 25.000 22,500 8% %H 40,000 40,000 9% %1 45,000 107.500 63,750 25.000 25.000 25.000 22.500 (NYSE) New York Stock Exchange.
CAPITALIZATION (Continued) 22 (Thousands) 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 s
s s
s s
s s
s s
s s
Long-term Debt First mortgage bonds 2h % Senes Due 1975 (NYSE)
- 28.850 28,850 28.850 28.850 28,850 3
% Senes Due 1978 (NYSE).
8.000 8,000 8,000 8,000 8,000 8,000 8.000 8.000 3
% Senes A Due 1978 (NYSE).
15.000 15.000 15.000 15.000 15,000 15.000 15.000 15.000 10% % Senes Due 1981 (NYSE) 45.000 45.000 45,000 45.000 45.000 45,000 3% % Senes Due 1982 (NYSE).
15.000 15,000 15.000 15.000 15.000 15.000 15.000 15.000 15.000 15,000 15.000 3
% Senes Due 1984 (NYSE).
15.000 19.000 15.000 15.000 15.000 15.000 15.000 15,000 15.000 15.000 15,000 4.45 % Senes Due 1993 (P).
50.000 SdOOO 50.000 50.000 50.000 50,000 50.000 50,000 50.000 50,000 50,000 SN % Senes Due 1997.....
40.000 40.000 40.000 40.000 40,000 40.000 40.000 40.000 40.000 40.000 40.000 6% % Senes Due 1998..
25,000 25.000 25.000 25,000 25,000 25,000 25.000 25,000 25.000 25.000 25.000 8 95 % Senes Due 1998 (P)...
20.000 20,000 8% % Senes Due 1999.......
30.000 30.000 30.000 30.000 30,000 30,000 30.000 30.000 30.000 30.000 30.000 10% % Senes Due 1999 (P).
30 000 94 % Senes Due 2000..
35.000 35,000 35,000 35.000 35.000 35,000 35,000 35.000 35,000 35.000 85 % Senes Due 2001 (NYSE) 45.000 45.000 45.000 45,000 45,000 45,000 45.000 45,000 45,000 8
% Senes Due 2003 (NYSE) 40.000 40.000 40,000 40.000 40.000 40,000 40.000 94 % Senes Due 2003 (P)....
50.000 35.000 10.70% Series Due 2005 (NYSE).
3.175 3.175 3.175
- 45.000 45.000 8% % Senes Due 2006 (NYSE) -
50.000 50.000 50.000 50,000 6 35 % Senes Due 2007 (Pollution Control) (P).
14.200 14,200 14.200 8% % Senes Due 2007 (NYSE) 60.000 60.000 60,000 12% % Senes Due 2009 (NYSE) 57,000 624,375 522.375 467,375 458.000 408,000 363,u00 346.850 306.850 306.850 261.850 226.850 Unamortszed debt discount and premium (net)...
076) 295 311 789 434 453 471 490 508 642 132 Notes payable-due through 1984 95 130 166 202 144 247 10% Mortgage note payable-due in installments through 2012.
8.871 8.911 8.946 Guarantee of pollution control obligations-7%% and 7%%
Series A due 1999 through 2009 26.390 Capital lease obhgations.
7.848 6,707 3.825 1.988 2,388 1Eo Total long-term debt.
667,403 538.418 480.623 460.979 410.966 365,001 347.321 307,340 307,358 262.492 226.982 Total capitahzation.
1.301,020 1,114.453 968.274 893 236 798,918 716.654 653.783 584.622 549.133 478,188 413.408 Capitalization Ratios: %
' Common shareholders' equity 34.1 38 5 392 36.3 35.1 34.4 34.2 37.5 33.5 37.2 35.9 Preferred stock 14 6 13.2 11.1 12.1 13.5 14.7 12.7 99 10.5 7.9 9.2 Long-term debt.
51.3 48 3 49.7 51.6 51.4 50.9 53.1 52.6 56 0 54.9 54.9
~
100 0 100 0 100 0 100.0 100 0 100 0 100.0 100.0 100.0 100.0 100 0 s41,825.000 redeemed through a tender of fer in 1977.
(NYSE) New York Stock Exchange.
(P) Private placement.
l l
22 j
e CONSTRUCTION COSTS 1974 - 1979 j
(Thousands of Dollars)
)
220.000 217.946 220.000 200.000 200,000 180.000 180.000 i
170.417 160.000 160.000 l
l 140.000 140.000 i
1 120.000 iig 7i4 120,000 nh 0
1974 1975 1976 1977 1978 1979 4
i 1974 1975 1976 1977 1978 (d) 1979 Electric Production 60,865 64.7 60,030 64 6 64.056 63.9 90,943 76.6 134,817 79.1 180,971 83 0 Transmission 10,921 11.6 10,798 11.6 10,217 10.2 7,775 6.6 11,632 6.9 11,865 5.5 l
Distribution 17,730 18 8 14,405 15.5 14,988 14.9 14,222 12.0 15,529 9.1 17,156 7.9 I
General 1,245 1.3 4,805(a) 52 9,662(a) 9 6 3.843(a) 3.2 5,123 30 4.665 2.1 Total 90,761 96.4 90,038 96.9 98.923 98.6 116,783 98.4 167,101 98 1 214.657 98.5 Gas 1,329 1.4 1,291 1.4 1,185 1.2 1,310 1.1 2.247 1.3 2,043
.9 i
Steam 115
.1 102
.1 74
.1 382
.3 665 4
1.246 6
)
Sub-total (b) 92,2 5 97.9 91,431 S8.4 100,182 99.9 118,481 9915 170.013 99 8 217,946 100 0 Other (c) 1,901 2.1 1,511 1.6 96
.1 233
.2 404 2
Total 94,106 100.0 92,942 100.0 100.278 100 0 118,714 100 0 170.417 100 0 217,946 100 0 I
l (a) s.1cludes $41 million in 1975. $8 2 rmilion m 1976 and $0 2 million in 1977 for the Company's wholly-owned subsidiary. DP& L j
Community Urban Redevelopment Corp, which owns the Company's corporate headquarters
(
j (b) includes a!!owance for funds used during construction
]
(c) Cost of non-utilety prnperty leased or acquired (d) Certain capitalized leases previously shown in "other" have been reclassified and distributed to their mspective construction accounts i
4 m
23 FINANCIAL RATIOS Common Stock - Market Price, Book Value Return on Average Common Equity
$25 16 %
14 Book Value 12 15 to Market Price 8
10 6
4 5
2 1
I I
I 1
1 l
1 1974 1975 1976 1977 1978 1979 1974 1975 1976 1977 1978 1979
- '"'"8'
- O
$3.00 4
2.50 3
SEC Method 2.00 P
Indenture Method 1.50 2
q.e..
4
" a, f.j g y
<3.,,
s.,...,g
.,.g.
..,G %
,.t T
'. v'i,,
.... 3 = -; +.
-5
, fAk... k ';
$f"$y 4.y,? E )9 A o, ' -
s
,g
- ?'%.
- ,y ?..f 0.,' I j
O:.
- N *, f ;, N,k ? ;l T'
- 7e p+- b ?uVgj
.,, ;.~ _ <. ' A 4? 'f 'Lr,>, A -?.% ; f,
. % t. i s -
'4y,
- F
.v
, f.. Y t
+~
s w-4r-
, % n.% 9 ;,<. j*3 (t W?J'*/ y Q C b
~~'. > Y t R ;.p*,;T's:'t-:;,.\\?;; $ p
,Q,p ' o.., s n ~; ~ c,. 'a.? s e
r 1.00 n-m s
- v ca..
_*.Y
.-.,-?-+..
.50
'g a..;
e c # e ' : -Q+ - g'*J r,i g:-
?y;9., k - V; -ei.i!
v.
g 3 k., g -r,,
- .,As,. r,.. s.t.,.
k,.w,e, -,,'s
-s
,s.
c
.. )
V.a
^^e
',c.,-
d-d[/4; dt [W.s.,:%,sEn,fh se **I({ ht b,, SN 7MAv*
.,l,2 %
I f'#- #s
,.(
I
,e 4 w. --
- j s
,7.
5 Da'J_b;MM34 DOE D -
l
[
t l
s 1974 1975 1976 1977 1978 1979 1974 1975 1976 1977 1978 1979
i 24
}
FINANCIAL STATISTICS l
I 1979 197_8_
1977 1976 1975 1974 1973 1972 1971 1970 1969 COMMON STOCK DATA Earnings per share (a)........
2.01 1.73 1.70 2.05 2.24 1.89 1.87 2.15 2.07 2.15 2.28 7
Earnings on common stock t
(thousands)...........
47,239 36.774 31,728 34.932 32,774 23,809 22.334 23,571 21,711 20,363 21.335 Dividends paid (per share)......... $
1.72 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.645 1.60 1.58 Dividends paid (thousands) 40,485 35.216 30,496. 28,242 24,199 20,670 19.830 18.087 17,275 15.081 14,823 Dividend payout ratio......
85.7 95 8 96.1 80.8 73.8 86.8 88.8 76.7 79.6 74.1 69.5 Market price per share
[
High.....
.5 17 %
184 22 %
20 18%
21 %
25 26 %
27%
26 %
37%
i Low 13 4 14 %
18 17 12 10%
17%
21 %
22 %
20%
23 %
[
Year-end 14 4 14%
18%
19 %
17%
_12%
19 23 24 %
25 24 %
.I Price-earnings ratio (year.end) (times).
7.2 85 10.7 9.7 7.9 6.5 10.2 10.7 12.0 11.6 10.7 Dividend yield (year-end)...
12.0 11 4 9.2 8.4 9.4 13.6 8.7 7.2 6.6 6.4 6.4 i
Book value per share (on shares outstanding at year-end) 18 60 18 39 18.60 18.39 18.15 17.89 18.65 18.44 17.45 17.02 15.80 Market to book ratio........
78 0 79 5 97.4 108.1 97.8 68.5 101.9 124.7 142.6 146.9 155.1 l
RATE OF RETURN Net operatmg income to net plant
.4 88 84 8.3 9.1 92 80 7.6 8.2 8.2 8.1 88 Average common equity 10 8 9.3 9.1 11.2 12.3 10.2 10.1 12.0 11.9 13.2 14.6 i
COVERAGE RATIOS (ti nes) j indenture method (before taxes) 2 06 2.38 2.12 2.55 2.79 2.15 2.57 3.13 2.96 3.23 4.11
[
S E.C. methods:
Fixed charges (before taxes)..
2 58 2 49 2.22 2.78 2.88 2.12 2.36 2.64 2.79 2.66 3.71
[
Fixed charges plus preferred.
1.89 1.86 1.76 2.07 2.08 1.74 1.91 2.18 2.27 2.32 3.10 l
FUNDS GENERATED INTERNALLY... %
88 26 2 10.3 23 4 49 6 1.1 27.5 34 0 36 4 27.4 18 0 EMBEDDED COST i
First mortgage bonds 8 26 7.68 7.28 7.47 7.31 6.58 6.12 5.88 5 88 5.49 4.87 Preferred stock.
7.79 8.08 7.88 7.88 7.88 7.77 6.48 6.10 6.10 5.25 5.25 f
EMPLOYEE DATA Employees (year-end)..
3.742 3,464 3,190 3.146 3.146 3.115 3,174 3,253 3,349 3.319 3,314 Average annual wage 19.225 17,858 16.015 15.064 13.983 13.350 12,496 11.540 10,952 10.285 9.220
[
t (a) Based on average shares outstanding
}
1 N - _ __.-,--__,-
25 c
COMMON SHAREHOLDERS Classification of Shareholders and Shareholdings SHAREHOLDERS SHARES HELD NOVEMBER 9.1979 NOVEMBER 17,1969 NOVEMBER 9.1979 NOVEMBER 17.1969 Type of Shareholder Number
% of Total Number
% of Total Number
% of Total Number
% of Total (000)
(000)
Women..
23.538 33 2 9.305 38 2 5.146.971 21 7 1.650,773 17 6 Men.
18.548 26.1 6.607 27.1 4.550.584 19 2 1.236.648 13 2 Joint Accounts.
20.1C 9 28.3 4.783 19.7 4.677,998 19 7 724,378 7.7 Estates and Trusts 6.819 96 2.032 84 1.435.98(.
61 296.107 31 Security Dealers and Nominees.
1,03/
1.5 825 34 7,209.09' 30.3 3.030.335 32 2 Institutions 226
.3 206
.8 132,496 6
147.293 16 Others.
692 1.0 581 2.4 579.302 24 2.317.955 24 6 Totals.
70.9f 3 100 0 24.339 100 0 23.732.434 100 0 9.403.489 100 0 Size of Holdings (Shares) 1-99.
14.994 21.1 10.345 42 5 558.188 2.4 401.345 42 100-199...
25.201 35 5 6,706 27 6 2.732.165 11 5 832.818 89 200-499.
21.697 30 6 5.060 20 8 5,717.384 24.1 1.490.746 15 9 500-999..
6.018 8.5 1.313 5.4 3.580.689 15 1 854.952 91 1.000-1.999.
2.310 33 514 2.1 2.705,171 11 4 668,725 7.1 2,000-4.999 588 8
215 9
1.573.270 66 654.550 7.0 5,000-9.999,..
99
.1 82 3
626.516 26 566.059 60 10.000 and over.
62
.1 104
.4 6.239.051 26 3 3.934.294 41 8 Totats...
70.969 100 0 24.339 100.0 23.732.434 100 0 9.403.489 100 0 Geographical Distribution Ohio.
26,375 37.2 11.725 48 2 7.843.754 33 0 2.673.351 28 4 Florida 6.237 88 902 3.7 1.643.378 69 201,565 2.1 California.
4,925 69 1.011 4.1 1.294.323 55 389.831 42 New York..
4,150 5.9 1.771 7.3 5,145.659 21 7 2.005.955 21 3 tilinois.
3.527 49 802 33 964.542 41 260,369 28 Remaining States.
25.775 36 3 8 128 33 4 6.840.778 _ 26 8 3.872.418 41 2 Totals..
70,969 100 0 24.339 100 0 23.732.434 100 0 9.403.489 100 0 O
~
i
2s The Board of Directors and its Committees Stephen T. Bow (A, B)
Robert A. Kerr (A, E)
Senior Vice President President Metropolitan Life Insurance Co.
Winters National Corporation Dayton. Ohio Dayton Ohio Robert G. Chollar (B*, E)
Robert B. Killen (A D F)
Chairman of the Board and President Chairman of the Board Charles F. Kettering Foundation The Dayton Power and Light Company Dayton Ohio Dayton. Ohio Charity E. Earley (B, D)
James W. McSwiney (C, E*, F)
Member. Trustee or Director Chairman of the Board and Chief Executive Officer Various community organizations Mead Corporation Dayton. Ohio Dayton. Ohio Peter H. Forster David B. Meeker (C*, F)
Group Vice President-Energy Resources President and Chief Executive Officer The Dayton Power and Light Company Hobart Corporation Dayton. Ohio Troy. Ohio Robert E. Frazer (F*)"
James R. Thomas (A, B, C)
President and Chief Executive Officer President The Dayton Power and Light Company The Dayton Tire & Rubber Company Dayton. Unio Dayton. Ohio Jane G. Haley (D E)
John F. Torley (A*, C F)
President Chairman. Executive Committee C.H Gosiger Machinery Company Dayton Malleable Inc.
Dayton. Ohio Dayton. Ohio Robert J. Kegerrels (D*, F)
President Wright State University Dayton. Ohio 1980 Committee Assignments E Finance A Energy nesources and Fotecasts F E xecut ve 8 Audit Revece Denotes Committee Chairman C Compensation and Management nev.ew
" En otticio mernber of att committees D Community and Enternat neiations O
27 4
Officers Transfer Agents and Registrars R:bert E. Frazer (51,5)
Common Stock First Mort 0a0e Bonds President and Chief Executive Officer Transfer Agents Trustee P;ul R. Anderson (37,1)
Citibank, N.A., Corporate Trust Department, Irving Trust Company, Corporate Trust Department, Treasurer 111 Wall Street, New York, New York 10015 One Wall Street, New York, New York 10015 Also interest paying agent John R. Dill (54,22)
W nters National Bank and Trust Co.,
Comptroller Corporate Trust Department, Winters B&nk Tower, Co-Paying Agent P uline M. Easter (53,33)
Dayton, Ohio 45401 Morgan Guaranty Trust Company of New York, S cretary Also dividend paying agent Corporate Trust Department,23 Wall Street, New York, New York 10015 P;t:r H. Forster (37,6)
Registrars Group Vice President-Energy Resources Manufacturers Hanover Trust Company, Corporate Trust Department,4 New York Plaza, New York, Carl R. Morey (45, 23)
New York 10015 The New York Stock Exchange is the only Vics President-Energy Production national secunties exchange on which any of The Third National Bank and Trust Company of The Dayton Power and Light Company's First John R. Newiln (59,31)
Dayton, Ohio, Corporate Trust Department, Mortgage Bonds and Preferred and Common Vics President and General Counsel 34 North Main Street, Dayton, Ohio 45401 Stocks are listed. The trading symbol of the Company's Common Stock is DPL.
H: ward R. Palmer (60,32)
Shareholders' Agent for Automatic Dividend Vico President-Environmental Management Reinvestment and Stock Purchase Plan J:mes E. Clark (57,24)
Winters National Bank and Trust Co., Corporate Assistant Vice President-Computer Services Trust Department, Winters Bank Tower, Dayton, Ohio 45401 Donild A. Nill (42,21)
Assistant Secretary, Manager investor Relations Ch(rles W. Shoup (49,27) prg(grred ${oCN Assistant Vice President-Customer Bus, ness i
Operations Transfer Agents Irving Trust Company, Corporate Trust Department, Richard L Stump (49,28)
One Wall Street, New York, New York 10015 Assistant Vice President-Customer Service Operations Winters National Bank and Trust Co., Corporate Trust Department, Winters Bank Tower, Dayton, Ohio 45401 (oenotes age / years of service)
Also dividend paying agent Registrars Chemical Bank, Corporate Trust Department, 20 Pine Street, New York, New York 10015 The Third National Bank and Trust Company of Dayton, Ohio, Corporate Trust Department, 34 North Main Street, Dayton, Ohio 45401
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