ML20069G516
| ML20069G516 | |
| Person / Time | |
|---|---|
| Site: | Beaver Valley |
| Issue date: | 12/31/1993 |
| From: | OHIO EDISON CO. |
| To: | |
| Shared Package | |
| ML20069G506 | List: |
| References | |
| NUDOCS 9406100058 | |
| Download: ML20069G516 (38) | |
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I l HIGHLIGHTS I 199:1 1992 Olk TillillR I'PITOM000M' ) lletail Kilowa t t-llou r Salis (.\lillions) 25.Hid 31.059 I Aserap Annual llisi<lential Kilowatt-Ilour l's- 8Ji60 S.132 Generating l' nit lituivalent Availaliility 87.1% 83.4% l'eak Inul (.ilegawalls) 5.729 5.2 17 Custoiners Serval 1.070.152 1.055.337 Numin rof Eniployns 5.978 6.2(N Customers ter Eniployn. 179 169 I lillatiriilll'PITorllHIOM' Ol eniting Ilevonues $2.369.9inJHHI $2.333.378j H H) l Oi n rating inconn- l Ik fore hollnvlirrillg Cliarps $35:5.lOI jl H H) $322.ll5JHNI After Nonneurring Cliares $525.:130J H H i $522.ll5J H H) Net inconn-llefore Nolinturrillg Cliarps $3Ol.101 lH N) $27(i 986JH NI Afler Nonnrurring Cliarges $82,721.0(H) $270.986J H NI liirnings in r Gilninon Slian- 1 Ik fore Nonnvurring Cliarp s 31.82 $1.70 l Afler Nonneurring Cliares S.39 81.70
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llelurn on Averam Oinnnon lipiity-liefore Nonnvurring Cliarp s I1.4% io.8% Afler Nonnvurring Cliargis 2.1% 10.8 % lliVitlelHls [n rIhHll(11011 SlIlin- 81.50 $ l.00 Olbli l'nlVi(Idl fnHn O[n ralions $7dd.88:lj H H) $589.979J H H) y E O D 'h
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PRESIDENT'S MESSAGE l f l 1 1993waxmarknibySoiia w aaaniit.si3rnSiomerx.inriuding gains and du iSiVe arlion Ihal piSitinnni 218 indust rial ruid 1.000 rommercial hilSillt$NN - olir la rp5l Cilslonier
)olir ('on) piny [Or fillllft' Sun 1SS.
b nmohnl a key issue affitting inonaN in 203 nux
- E'n' now Ser ing 105.000 mon ruS-our financial outlook hy CloSine ihe biek on tomerS with 1.!H HI ft wer enullo.\ns Ihan nurlear conStrueiion.Our do iSion not to we had in 1981 pirticipile in conipletion of l' nil 2 of the in addition, w e took augn'SSi\e l'erry Nuclear l'ower Plant -along wilh Steps lo InlIln' ou r o\ tT;ill niStS. This-ollit T an1Hilllille at tiollS - n$ullnl ill a N
' ' ' nel, after-lax Charge aplillSl earliingS of linnpil inHn the closilig of SI A Old.ntll-l m [Ingl peneralilig lulil$ (1) (he n'[knancing elf appni\hllldlely hdlb Illh!!Illil. Eil' hl.hlI litT Shan'of niilllllon Stirk- mon'lhan S7dd million of NrurilieS lo an E.\ rllklIllR !!!aN' rliarp%. we ll-pTrt'llt work font rnlurlion in our wonld hase earnal S1.Sd p T Share - a pn il urt ion grou p. TheSe eXa m pli s alone W ill }in ullin' anilllal SaVillgS of $20 filillioll 7-p Tttnl illclt'aN' oVer llle preViollS ,\ntr'S w hilC n11aring our Capilal nmlS by ft$nll8 of $l.70. With lhe w filtmf[.
earnings were S59 million, or :19 n nl8 p'r Slou million.
' While thin' nwidt$ are piSitiVv.
Sinalv. EVeii N>. weiloii t expUt tiiiS action we nrognize that we base to do mon' to inn 1 to afftri our ahility to niaintain di\iilendS Ihe rhallengeS of our changing industry. al cu rrent leselS. Many of IheSe changes an' emerging fnim While no one likes w rik' offs. the d *iSion t'llilail finanUIal ulinTlaillly lhal llle haliollal Energy l'iiliry Art of 1991 The law haS bvon lo op'n the door to l13S eXiSinI Sintv Work waS haital on the inen'aN11 nimp tition in our indnStry hy unit in 198i. And. it enahleS uS to build on olir N did pT[ornlalln'ill IU9 l M4plifille eltrIric Illilili'$ lo alloW lhe llN' of their ItallNIlliSSioll SySleillS [or H hol# Nile
- We achie\nl nron) lelail Sali$ of tranSartionS and by making it easier for 25 billion kilowall-botn S w hile pniluring nonUlilitieS lo enter lhe D'nemling huSi-a llt'w IUVelllie Illark, litSS. Alld. Inally larp* IINTS o[ Plerf ririly
- We n'arlit1l an aVerap' aVailahility of 90 theSe rhanp'S aS opp trlunilieS lo Sn'k 87.1 PTn'nl-Un all-lime high forour Similar HonSS for their n'lail pun haN'S.
[oSSil-[Ilel generating unilS,
l Gillside Ting t hme develo]F Ouring the year,7 t inajir in lhe futun , we will mntinue ments. soine market expris hase manufaeluring mmpmies expindol or makingeveryeffort toenmurap deseloir j nopmdo! with a myalive business out- leratalin oursenin ann creating tuore inent and to help the busimms we serve j look for investor-ow not utilities. includ- than 1.NNI new jibs and e neratingan n main comielitise. 3tany of these efforts ing Ohio Iilison.This had a chilling miimatol Sin million in new clittric an highlightnlin this n pirt including effirl on niility stock prins.esprially in salm. Much of this gmw th is coming new pirinershi ls wilh customers to the fourth quarter, from a diverso manufacturing hise that pmmote business gniw t h and jils. Ohs iously. ou r Gim puiy dmsn't includes rubler. plaslies and primary Our futun suenssdemands the shan this outlook. We fwl psilise alout metals. These industrim nvignize Ihe bst from all our employms as we work the steps we'n taking to comp le and sur- man) strengths this nyion has looffer. lowaniourpulof bromingoneof the nul in the energy marketplan . As this not 'he li asl of w hich is a highly n liahle industry's top p rformem. n pirt illustndes, we'n working to source of elitt ricity. WeNe mit a sinmg team in plan , achiese a higher lesel of excellence in Ihe licyond pnaiding this key and we're determinni to remain a sumd ! l yours ahead. ingnilit lil for hilsillms grow lh,0110 inythlinellt - alid our clislotners' energy l I Une key slep lowanl lhal red is Gimpmy is promoting new Opp er- su pplier of choi(U - for many yHuH to come, our nunpn hensive p rformance initia- lunities tbrough our Itate Stabilization Thank you for your suppirl as lius pnuram.Thningh this cffort, we're and Senice Anu lh velopment we lake the steps nmini to stay ahmd of ns iew ing every oppirtunity lo inenuse l'nunun.Thningh the pnynun. lhe chane s n shapingour indusiry, nsennes, im pnn e op rating efficiencim we've made a conunilment to fntze and filflher fallin nols-includiflg hase elWiric niltN linlil al Imsl !!)!)7. // som. smi minion in annuai minus Ana. we u e,tahh,hni a nirpinuem d io winanin.nonand thmugh impnnements in our materials extend the fntze until the year diNHl. l'n$ident and Chief thrutiveOfficer manap ment pnress alone. Our pnenun also includes up to l'chruary f>, !!P.li Anolher poilive factor affeel- SNI million in efficiency incentivm for ing our Gimpmy is the rontinuni gmw th our business and swermnental cu+ of our service ann's nunomy. In fact, one lomers. It's pirl of an atIraelise nunomic nationally nouniznl sunvy ranknl development pickage that wecan use to Aknin and Sununit Giunty. our largest suppirl new and expmding businesses in urhin anu, siXlli in lhe flation in allnirl- our NTvice ann. ! Ille llew nianufactllring facihlim alid expmsions. 3 ; l 1
i limoni lielail Sales Working'Ib lb The 1b81 Itelail sdes nochnl an all-linie Whilesiningsthyan rkarly pis- i high in I!P.El. inennsing 1.1 p nvnt fnim itiw nwults, wv nnch liv significant t he pres Iolls ytur as olir ( Siln puty en,h lyn! Phalleligt$ ourIbinpiny fann in the yeaDi mnlinunl impn nvment in the h ral minomy ahead toromp fe in thernergy marketplace, and a steady inenuse in Ihe nuinter of cus- Whether we're working to ntlun-tomers s rs nl. We addal 11.815 customers our eyensu or add value to the s rvin s we in 19tr1. including 218 industrial and IJiO9 pmvide our rustomers, our gml remains tultlinen ial hihills NN N, t he Ntine: to IP amonR lhe h St-p rforilling We also Irnefital [Nni high air- eb vt rir niin pinies ill lhe llalis in. Through our performance mitiatives gindj{jonjng n3.during a llot smnnier, I n We inade pngn$s towant arlliev-program, teams of employees are explonng opportunstics to improve performance in t he Ihinl iplarler atolle, retail sabN ju m p11 ing Ihat goal lhningh a numlor of aggnH-every major area of our business. 7.1 lenvnt to a niuni 6.5 hillion kilowatt- siw steps taken in 1993.
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p9 ,
$Nfy hours. In addition.rustomers of Ohio Glisin We're impnn ing our financial evi -; ~s
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md l'enn Ibwer sel iknv pak demand p sition - a nd en hancing ou r com irtit ive ( nxunis in J uly.The latest puk ovurrni n!ge-Ibrough an ongoing irrfonnance on J uly 2S w hen demand nnchni review of sirtually every fan t of our h 5.729 megawa t ts (M W), surpassing t he Gimpmy's op rations. launchal in 1993.
]' nront of 5.579 MW set on J uly 26 and the the p rformance initiatives pngnun has Y
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.%,w,9, '~@ y s.v[- July 9 nir.nl of 5.562 M W. l'rior la Ihe identifini a umnler of oppirtunities to TQTE,[5&["[5fleh July 9 niunt. the pak had ben 5.513 MW, inrnus rewones, achieve furthercost
. _ . , M "'7c4n. i w-ww,ff(M,, N s.t on Aunust 29.1991. nsluctions and iin pmw oleraling efficien-
_ . . s l llesidential saks were op 7.2 p r- cim. As part of the initiatives. innns of 1 i n nt. anil ninunen ial sales nw 4.7 p ntnt employns an currently focusingon ihme i for t he ynir, dahN lo indtlst rial Cilslolliers opplitunilim in sprific artus of the n'maillnl stiudy -lip l.3 p'nval- dmpile Olmptny. Their work will nsult in detailnl Ihe 1992 shuliloWil of Shanill Slavl. WhiCh plans Ihat Will help us achieve neW Nlvings was one of the largest customers serval hy and mmp te mon effittiwly in the future. l'enn l'ower. Ihrinding xdes toShamn The n view has alnudy iik nlifini savings Steel, ebriricit.s use in lhe industrial of more Ihan $10 million through Nvlor was up 6.4 jrnvnt, reflivling solid iluprowniellls in our nlaterialS manar gains in the primary metals. ruhler and ment pnress. g plaslim illd uNt ries.
This all4Hectric Smart House in Warren Ohio, shows homeowners how they can enjoy greater convenience, control and energy efficiency through a central home computer. e
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.h I Th initialiws will huilil on i,1her nn nI avlions aini.il at nituring onr Irwnlll e>\[u'ils 's. Tlies. artiiilis ilichiili-n'Iill;litrillg liltin' l!litfl 87dd l filillisill ill o
sivurili.s in I!st. w hich w ill lower annual n exiu nsis h,s $11.5 inillion. Our agenssim n linancing pnennn has niiniul the insi'llip' illlelIsi Gile oil lsillg-lerill ill'hl ' Inilli Ill.di ju'livlll in l!)SS filS.37 [u'r-t' ceni in l!st.Sonil.irly lheilisiilenil rale on pn Iernil slui k has pin. ilow n - 91 92 93 In tfli N.71 lu'n'I'll! ll l8, INN lall$.Sf 5 lu'll1 lil R ETAIL M ILOW A TY. HOUR SALES lll l!l',I.'{, IRILLf0N1)
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c Instead of burning coke. USS/KOBE Steel Company will soon burn pulverized coal from our Edgewater Plant to make hot metal used in this process at its Lorasn, Ohio. factitty. I';lhil' il5dil si\ olil Mll-[h n1l p1ieniting unil.s - culling capilal nmis by h II H I Illilliilil - illlll 01 lin1l t p lilli f) ille elllplii)it's ill tiill lIn ullleliilli gnillp r';trl) IPlileilleill pnil?Gillis ill lolli l!l'.}d anil l'#.1:1. Tir,3 IlitT. Ilirse ;ielit iiis niliti1il oiir annu.ilop nilingnol.s b3 aloul SIS inillion. lIl aslalilioli. Me'\t le1'lelsil tllal other options for intiling our Injun p ner-aling fli11ls illP filibre millininical ill;ln nilli-9.i* ple'lille ('llil d tif flie l'c!T) l'I.llll. l5) llill pirticipiline in lurther const ruelion of l'tTT) d %c elillllilaleil fill;lliciill Ullntlaill-t) % Ilhoul afhrling our abilil) ld niainlain eli\ iilenils al cu rrelit les els. ll)[IllW II$ ! 'l ll'lllillIUP t nur sutress in toniornin's energy nl;Irket % ill HINHleinanil onpiing ilnpro\c-e fileills ill lhe pnullirllvil) of 011r juiweT i plants. We Inaile significant gains in Iliis an a o\er the pist 3 car. The a\ailithilit) of our fossil-fuel pilel';lllllZ lillits iParbl1l all llll-lillie lligh in lir.1:1 - 4.1 p nvnt. E also n1lnmi fonul nulaps for the Ihin! ) ear in a n>w w hile reaching our lowe.sl inal k in Ihis an a in :M 3ears. G in t in uni ilu pn n elnelit.s :.> ou r p'neDilillg s)slellt slloillil llelp Ils .lellie\i' Illllin' lu Tfortil. Iller lilileslilllis, d
One of these impnnemenls iS the solvingand pnilurlivity pnlS.ThiS pnne-lleW ellergy inallap'Inent ninipuler systent litt appuntrh ISexl urin l10Slveilsahollt tving inStallnl al our System Gininil $7> million. anil pn mlunN develoint Center (91'). The $20-mill ion system will thmugh thiS erfort Should lead to additional impn ve Ihe irrformance and svurity of sitings and n liahitity improvements dur-our KellefalillK alid InlllSilliSSion nel%ol k ing fulun' plannnl onlageN al our E % hile Saviilg IIS $3 tilllholl alulil3lly jul%er planlX. * (hnlligl1 nilunil fuel and pnNlurlion OEtX. In addition. We pla)nl a InHler- $ ci Exprini to le fully oirmlional in ItMIT>. ship nile in forming the inter-l'lility lhta the ninipuler N) Stein Will help N X llllore lUChanp' bflSorliullt ~ il pnh rl lhal % ill ef[irieillly a!HInUnumirally manap ke) link the energy management systems of (raflSnliSSioll, DIS} n trhillg a!HI p'llenit ilig N'venil lleiRllhoritig ulililiqN Wilh 01n3. AS DN]NinSihililim. illrluding Ille oj rnit joll of delnand for lninSilliSsioll NervinN illerntstN, 130 silhNtaliollS,11100 Ihall i[MIIlliles lllc ninNirlitull % ill help mailllaill D liahl0 g ug of IrallSnliSSioll lilHN. 39 p flenil lig units Service hy providilig meilllrrS Wit l1 vital GE RA G AvM$aluTv j afMI 33 illlenUltibrlionS wit h ollier utililitN. inforillation on llte ojonttIng SlaluS of IP8"C'"Tl i We're alSo Working CloNely wilh neighloring InmSmiNSion sySlemS. j supplielH lo kn'p plannnl outages at our While inveSling in the l ales { leth. Ohio Edison is managing construction of a thermal storage tank at The University plWer plaills lo a Inillinium % lllle lowerillg IlulogitN. % c'n' pu lHilitig a not her int p n ta nt of Akron that will provide more efficient cooling for campus buildings. our lInMlittlion nEIS. Tlinnigh a nnprnitive stralegv toiniproveirrforliiatin -eliSur-
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effort with llainrk & Wilcox. %e're enSur- inga safe and pnninelise work environ-ing that maintenance work and capital ment, in !!M)3,our power plant employees improvements on the Ilrun 31ansfiehl Sela new safely nront by Working more . j ~ ;. a . L. y are nindurial as efficiently as piSSible Workday injury. Alour W.11.Siunmis 1, 4 4, NT !!ga N !!b5 KIN ah" fl . leINI
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'er age is nmini to instal l new, low-No x (niinr 3.4 million hours withoni a lo+workdav -
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i p n oxides) hurners as Inr1 of our strategy injury -a new nront for Ohio liliSon i lonimply with theClean Air Act power plants. We also tmk gnnt strides to og .. mas j Amerulmontsof !!MClh pn jun for the im pmvc system-wide a t tendann . rnluring
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' ' ' " E-outap .employnN from both cominni<N lime lost d ue to sickness alul injurim by workul lop ther as a Imm for unirly a ymr, 16I rnent in !!M3.
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l An agnUnn'nt wilh our Gunptny NPW hirliterSllipS Willl win enante one of our iarr. non-inan triai thir Cuslumers custorners. Tin l'niversity of Aknin, to As wv take stels to inake our own rnluir energy o sts by installing a iherinal businms nion cornP litive, we'n enuting j l storage tank.This t rknolicy will pnnisle new ptrinerships Ihat will help irnpnne nion efficient nmiling for catupus buililings the comp litive psition of the busitnes by Sni[ ling llie um of cln-lricjjy {oo((.pg(, w e serve. nighttime hours. Ohio lilison win This non nitive spirit is a key manageconstruction of the pniitt for pirt of our Hate Stabilization and Senin, the tiniversity. Ann lk veloinnent l'nvrtun. The pnvnun Oy Ihe entl of the year,ogr Hale fl10Zes o11019'.Hl Inse ejertric ngtm tint [] at Stabilization and Senin Ann th u lopment least IM. It also pnivides up to STiO mil-l'ngnun had targetal mon than $10 million lion in long-term linns that busimss and governmental customers can nse to improve in laus to 5 of our customers. energy diEncy and pnMdidy of Taking advantage of our five-year incentive rate for new and expanding businesses, , gyppshjp g, wp*p. making every effort lo M rve the Exal Corporation located its new plant g,g , lhe unj(jur energy nntls of our business in Youngstown. Ohso, where it wsH manu- ,,,. ,p{g,j ,. gg {gy facture afurnenum aerosol containers. iuhl gIWertunental cusjonters. [*or eX;Hnple, llal rustoiners, We nrenlly enterni iltlo ah agnoment w ilh tine of lhe [irst l sums pnipmed l'NVKOBE to supply the leirain-Insnt I thningh this pnenun - ST> miUion to stn hnaker with pulverizni nni from our the Empin-Ih t roit Sin l Gunnmy in fdigewater Plant for an initial p riiniof ten llansfielif. Ohio-is pirt of an ongoing, l'urs,livinning in mid-199L As pirt of ronununity-Insni ef fort to kn p the Armco, Ihe pndet Ohio Islison has startal con-hic. sulsidiary op n and save appnixi. siruction on S8 million in impnwements at mately 1,000 jils.This effort inet sonn-the lilgewater Plant,inchaling new nut-suntss in Septemler w hen Armnis linni hainfling njuipment ami nilesignni nul of dintlors appnwn! Ihe installation of a pulverizers. Ily enabling Ihe stn hnaker to nintinuous caster at Ihe mill. By making ninvert a bkwt furnan fnnn burning the plant mon nanp titive, the new caster
"'ke to nal, the agnonent will lower muld inenuse pnilurtion at Empin-lietroit l'hVKulll7 sop ratinenstsand help kn p and event ually add lo our el.tt rie sales.
it nunp litive in the gloint sin 1 market. Theleng-icr m m nimei a s ,en un s n,at
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Line crews working in emergency situations benefit from more direct and immediate communications provided by our new BOO-megahertz radao system. i p g.a.
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In ailililion, w e cotiliniir to off er IiVI ,\l'ilr illreilll\e 111ll$ Itif lle%' ilntl t'XlEllitlillR lIlisilit NN M l}ial llit rl tTils Tiin h e a l'I'!illt1l lIl kilPl'I'ilN#1l I'llll)lE l,\ lllt 'llI illlll PillIllll! $ in)..stinent. In Itm, wirnpoiirs look aihanlas'of these rales w hile in)istilig a!a illl $!N I tillllilill ill nU% filrililieS alltl rri-l illillR l IslHI fir % fills. Tliese liew oinTiili< iris illy eN j ui'lf tl lii p'llefille fleitrl\ h'.I llllllii 611 , 91 92 93 91 92 93 ill (11'% illlllil;l! Silled [t br {lijf { ,g illl[Will,V' CU 570M Eft $ EMPLOYER IM t EUsi ""l= ule7EE l"" vin"' 9 EMPLOYEE)
The attractiveness of our communities - as , exemphfied by this histonc tourthouse in . . Medina. Ohio - as a strong selhng point to , . . bussriesses and industner.
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\illllP-d(ltl(1l CllShilllel' N'! Tit'US While our rale inUze plwnnu .m; .
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niake us ewn Inore D$pinsiw to t he nmis ,, l i of our custolnrrs.
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railio sy slein riisunS litore ilin ti anil inilip- I
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iliale rotninlinicalion 1s lwerll \alio!!s t'.ork g en nps. snen as line rn.ws n.siorine ~,. nice 4- .1kq.,ggg ill ente rp'llry sllitaliintis. 'lh ln'rolliple letl hy *
.t, lhe elp! of l99Is. lhe syslelli iiffetN 1l11 irk .
t t G vary for nielnl rs of the sune work gniup. . 8 ll also butures enterp'ne) call, w hich l cuahles Ihe wof ker to huluislialcly cliur a - - Ellallflel a nal lillw illslaltl int rtNs lo a tlispilcher (lu ring an enterp'nr). , in W
Tlie N NI-Mllz niilio sysiclii is qiiiekly pinimiilililain;iesl npiipitient aiiil Illaih* ln tssible liy allol her In'hnolOgy llelp rnlIlee lhe aillallnl Of lillie il takes 10 i nl pn n elllelll - llle Olip d lig M ill Vel $ioli of lilake n'plirS. l$1Nnl on t he suen$s Of the Our Inien>% ave syslein fnim analiv 10 digi- lesl. We % ill install lhe s3sicin in the lake lal. Mllu'11tillpletal by Par ly IDIO. thiS [rie;lud Illy digiSi< ins by niid-lt)!).1 bk-nlilIlon pro,ht'l Will add fle% raptldljlii$ W/le ilu pn6 Illg ruslillher NT)in' l0 Ollr eXlellSi\e fiel%ork of Viilre, dilla ansl llIn H !gli infla illler lle%' la rlIllt ili y) - l he nininil rin nits. AlnOng Olher in nefits, the unlersTnicking lnformation S3 steni (( fflS). fic%' Syslellt litrnitNN l}le ailliHill! Of data This ruliipiileriosi systelii etiables iiiir rii+ ll1ill Villi ln' IDinsillill!1! [nilli Olle n Illipiller lillllel' Ner\ in' n'pnSelllallws til illllliolialel) statioll lH alliilhi f alid enh;illn$ Our intrk Our pn ynSS in lun litig rilslunier p}lulle nel%Drk, p5plebts for new N' nice insla!!alionS. pri-l)igital InierO%a\e to hnolary alSO sale Huldoor lighling, sin el light ing and slip luirls tillr llew ruin pilleriznl lelephollo ollier ilr1115. ll alSO fi11tinN pipTH Ork by syslellt lhal illenWN W l}le illull!N T Of pn n iding a sillglc la n'alliitt for in f0f Illalis tli Computergenerated maps produced instantly through AM/FM, or Automated PilSlOlner calls % e l'all llalle!!r dilrille [N i%IT lllill lini it illsly ilppilnil ill lilaillla! li eS Mapping and Facilitics Management, can help our dispatchers quickly pinpoint Lept by \;irioirsileiiirtiiielils.()flS iS aii OlltagiW. Tlie loiiible rail sysletii s ilif erac- o, mag,o ,qu,pment. li\e \Oin nNjullise (lYll) tilliI nt'OnlS Ilnpirlaill pill of Ollr Ollgldlig effoils 10 customer information that %Ork cre%s can pn n ide ruslDiners % ilh all lhe infunnation uSe 10 nslOre po% er as splickly aS pissible. lhey nnsl. % ben they nml il. Afler a suenssful list in Unr Aknin III\ iSioll. lhe l Y ll W as eX ptildal S\ slenl- 4 II I lll'l [ . (13 d Wide in 19!n @TllitlSilllTI' s H k 4 Of Nieral eXp tlml ln'llefits O[ dillotilale1l N TS in$, % dre alW laking slepS lo Inn't Mappingand Facilities Manageinent gni% ing rusionier demand fur Utir pnnluel. ( A M/ FM) - a computerin11 ma pping S3 s- our merall plan ins 01ves a nimhinalion Of leln that %elistollast yearin our lake suppl >-and deniand-side stralegies that n- [ril' l)iViSioll. lll illi instanl, llle s}5lelli pn Wol l}le !NSl llSe Of 4 Hir [in;lllei;d n'sulln1R pn Alllns easy-lienVId MilllpilllT lilapS lllill $Nn' fellifllIlle bib NN loOHI dispilchers ran use lo lhealc a giwn nsi- system's capicily 3h conwiling l' nil t al deller or hilsilliNs as % ell HS stirnillfl4lille OllI fdlP'% iller I'lallI In !8llrfl bOIb 'UIiHld lini%. p des alld IntnS[OrnierS. A M/fM eilll llalllD11 g;ls. Il % lll ln g II OpenilingitS all
l oil-finil unit Ihis summer with the 'Ib kn p eustomer demand fnun gas-finsi pirtion of the pnstt la le com- outgrowing our system's ability to s'rve it, pletal later Ihis year. we're also pursuing demand-side strat<gim in addition, the West lerain that encourage the wise use of our product. l l'lant can le returnal to 9 rvice to mn t Our demand-side pn grams include a wide r l inen asing customer d" mand for clitt ricity. range of inn nfirm insnl on pmven, energy- ; Current plans call for the plant to nopen as efficiency hthnolueies - fmm high-quality carly as itF.}7. last oleratal in 1981 the weatherization materials to thermal storam-l unit could le convertal to horn natural gas systems such as the one plannul for The ( l as well as oil, generating up 10 2% M W of l'hiversity of Akmn. additional power. Thmugh one pngram, we'n' nvy-( elingourcustomers'snund refrigerators Our supply-side siralegy also includes conunilments to two proimd fneof charp'. Another pnvram pnanotm One of our wetMnown customers is CU"INI OU Tt3 ~ UIIC* *Nbt"'t'M'U"IE1 thc USr U U"W' PII"IEI'SU\ iIIE l Ehi UN NES~ l far y Nannol for our Mad her Mant tenn by ninunen'ial and indust rial cus-anu a tu er c yons ead e and a host of other products. gj(p jgg pg pjngfield Ohio,and theSmnmit toiners. And,larp'industrim Irnefit from i r Cups l Energy Storage l'ns ti (SIFl') schnlutni high-efficiency motors and interruptible
'~* C"M" l for mnst ruction at an abandonni limmtone h al mnt racts. 'liwt her, t hese pngrams i . Craps l mine in Norton, Ohio. Omlen Martin can help inen ase our mntrol over customer
~s Cups j Systems, Inc., plans to build and oirrate demand -a mst-eff<rtive way to mn l
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~ ' Cayers j . the Mad lliver energy ntuvery facility, future energy nods.
**** l' w hich muld add 37 M W to our system.
[' C % 1 3 Our purchaseof 2(H)MW from the Norton L,latIl-A.IrCl>Illillittlice
. Cramg pumpd-storage plant is mnlingent H w utilities um match our mm-
- on SINP noeiving conunilments fnun mitment toensininmental pmhttion in
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olher utilities for ihe remaining output nvent years,our investments m, u, movative
Verts Cray ,g ] of the pnsrt. envimnmental mnt mis at our power plants
[ 0Weei ! Furlher capicity r quin ments have piid off by placing us in a strong posi-
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muld le met ibrough alternalives such as tion to ma t ihe nquirements of Ihe Clean p>wer purrhass fnun other utilities or Air Act Amendments of 191Hl. In fact. indep ndent pmer pnducem nwnera- more than half of ourcapacity will nquire
- lion pnstis, and Ihe construction of new, no additional ma.hr con t rol opiipmenI to l
l gaN-[ind p'aking unils. It t
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l l Our Company ha3 a long standang commitment to environmental protection and is welipositioned to meet clean air requirements that take effect in 1995. 1 46 e. 3 f A. > w
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niinlll) w l 15ll flllMfitl\itl0 rlVll!dthilllS lllitt lH $1' a!!tlw~illle8 M lB11ll[le ilVilifil!)l0 f(ir take efferl in I!Ek tr;Hling w he n nHnputie$ inlUn-llH if Illlr l'll.lse l nllllpliillin' 5lrateV) Sillfilr-1llo\itle elllisNiilllS ls'ltlw lP\els illi llHlis llH' liv of low er-sillfu r n iill at inpu rnl h) law. k l' nits 5. 6inal 7 of tin W. II.Sinnnos l'linil We also coinpl. Inl lin initial
;nni inenusni reliinin on i.n nerating units pha3 of our SS-Inillion pnUrinn lo install g w ilh lower entission ralis f or sulfur ilio\iile ninIinuous einission inonitoring illlel flitn VI'll o\bli$. 5)Nienl5 (IlOlN) ollilll qif olir niill-firn!
To rnn11%-ll nvulaiions ihat eencraline units. cDis wen installnl at take effn l in NL we an e\plorine the four of our piwer plants in !!Mn. enabling ptsSibilll) Iif Swile}liflginlilllititial 115 tiliteelllificl)' lIllek elitiSSis tfis fniill tlle
- 2 93 l gen, ratine unils to lowcr-su! fur nul an<l units lhese systeins inonitor. The nc\t ,,,
INTEREIT E ille[ t:1,si[lg (illT ((v ii[ rll[jssje ;g} i[llt ig ;t glig $, llll;[3 gi[ lllt> [3p g[1gggg g jll jjlrll)il,- gp la ,
installations at our lirure .\tansfield stration pnsrt at our fairlawn S>rvin-Plant and linits I thningh i al our G nter in Akron that prornoini a new use W. II. Sunmis I'lant. for piwer plant fly ash -autirlavnl I?tch of these actions n flerts the n llular mnen le. A lightweight buihling most impirlant featun of our muipliann- Inaterial that offers excellent insulating st rategy - its flexibility. While contribut- q ualit iis, au tirlavn! rellular mnen te is
;n ing toa nationwide effort to nsluceemis- made from fly ash and other materials e Pn m sions of sulfur dioxide by ainut 10 million such as n ment and lime. Welook forwanl co j lons annually, our stra tegy also takes to a gmwing market for this pnuluct, w hich advantage of new lithnologies and oppirtu- can helpourGimpany nryrle moreof I'g 91 92 93 nitim that protivt Ihe lasl inten sis of our customers and stockhohlers.
Tiirliilig Este Ilito Eliein thr(HWUNN)lons of fly ash we pnplun-mch year. We're also nrycling hmt exchang-ers and inlierim and anlifneze fmm our EAISEDDED
' Enc'sE" All(I()!!lef N11N!llelS flirt vehicles.as well as solvents usal to Ohio lilison is also nrognizal as clnun mn:hanical ptris, in addition, we'n-In 1993, our Company hosted a demort. an industry leader in the gn) wing [jehl of planning to hurn our Cimpmy's waste gjl stration project for autoclaved cellular concrete - a lightweight building materia; nWunY n1Dvery. 31 ore importa nt, otir ill our NiliS Elallt, where cyclone loilers made primarily from power plant fly ash. .
efiorts m. this ana help protivt theenviron- n ach high tem lrraturm nmini to achieve g a f' f ment whilecreating new nvnueopp>rtu- full combustion of Ihe oil. All of Ihese pnr
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, ;u nitics for our Gimpmy in the years ahe ul. )tts help ensure a rleaner envinnunent i Thmugh Imts at our Niks and w hile offering significant nonomie inw-n ,, _
gg . 11. li llurger plants, we'n continuing to fits to our Gimpmy.
. . . . study the feasibility of burning p Ilets of
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refusmlerisnl fuel-Inostly pip r left over
, ynm k. after nrycling municipil trash - as well as Chip l mil a nd w llole linN in millbillatioll
(('g[; g f @; h f W pg%.< s -i wilh nol as Iniler fuel. k--' , . . l'Jlergy isn t lhe ollly elld-pnulurt of our nryrling efforts. for ) ears, we*\e sold fly ash fmm our p>wer plants to nin-crele manufact urcis w ho use lhe ash in g their pnulurt in I!KM, we hostn! a demon-
l 1 I I installations at our lirure Mansfiehl siration pnsi t at our 1'airlawn S rvice 11 ant anil l' nits 1 thningh i at our Gnier in Aknin that pmmolnla new use W. I1. Sun!nis I'lant. for p>wer plant fly ash -ant.rlavnl litch of these actions n' fin Is the n llular mncrete. A lightweight buihling musl impirlant featun of our compliann- material t hal offers exn llent insulating st rategy - its flexibility. While nin tribul- q ualit ies, a u torlavnl n llula r nincrete is je ing to a nationwiileeffort to nslun'emis- maile fnnu fly ash ami other materials d 2 p sions of sulfurilioxiile by alnut 10 million such as cernen1 aml lime. We look forwan! lons annually our stralegy also takes lo a gnming market for ihis pnulurt, which ailvanlageof new In hnoliciesataloppirtu- can helpourGniptny nrycle mon of nitim that pniln t Ihe last intensls of our ihe!NNUNN) tons of fly ash we pnulun-I rustomers a nil shrkhoklers. carhyear. We'n'alNo TiryCling lHVil eXchang-91 92 93 amorooso til'II lld IS P ll O IlPl[ elN alhl !Xllterkes aml ant k[nUZe [nMn our p$nc's iklll! (I!llPI' ! Il NllIC!S [liol \ehicles, as wt il as sol %ctllS uN11 to Ohio lilisin is also nnvniznl as rhun nurhanical piris. In aililition, we're in 1993. our Company hosted a demon- an ilulustry litubT in Illi' gnlWillg fiehl of plallniflg to Illirit olir ()Hilpiny S waste oil stration project for autoclaved ceNular concrete - a lightweight buildmg material niillIn1' n1HVeIy NoIe IHpirtall!.oHI ak ollr Nilis I'lant, where cyclone inifers made pnmarily from power plant fly ash. efforts in this an a help prohrt the clniron- nach high temp ratuns nn<lnl toachieve
^ ycy ment w hile en aling new n venue oppirtu- full nimbust.ion of theo.l. i Allof these pnr i A 4 s j,[
%.g y nities for our Gunpmy in the 3 cars aheiul. jtts help ensure a rleaner environment
*& Through tests at our Niles ami w hile offering significant nunomic lent-w
% 11. E. Ilurger plants, we'n ninlinuing to fits to our Gmpmy.
NR. stmly the feasibility of burning p Iletsof Q
, n fusmlerisol fuel- moslly pip r left over
,J.- after nvycling municipil trash - as well as j ';
- e. p h p I. M_ek. "
chippnl ami w hole tins in combination A.Zf ij 6: *f ?grFQp with nvil as Iniler fuel. a .a VD gn,.rgy isn't the only enil-pnulurt l of ou r nvycling efforts.1'or years, weie sohl fly ash from our pmer plants to con-crete manufactun rs, w ho use Ihe ash in g4 lheir pniiltli't. 111 199 I, w e lloSitti a (lefilon-
FINANCIAL REVI2w l .\l AS AGDIENT llEl'OllT The consoliilateil financial statements w ere prepareil by t he management of Ohio lilison Gimpany, w ho takes responsi-hility for their integrity and ohjerlivily.The statements wcre i prepared in conformity wilh generally accepted arrounting principles and are consistent wilh of her financial in fortnation I appearing elsew here in this report. Arthur Andersen & G>.,
]
independent public accountants, hate espressed an opinion on I the Ginipally's consolidalt11 findlicial slaleineills. The Gunpany's internal auilitors, w ho are responsible to Ihe Audit Ginunittee of the lhini of l)irectors, res icw the n-sults and performance of operating units within Ihe Gimpany I for adequary.elfertiveness aint reliability of arrounting and iYporting systems, as wl'll as ma nagerial and operalinM Cont nils, j The Audit Guinnillee consists of four nonemployee direr- l tors whose d uties include: consideration of the adeipiary of Ihe l internal controls of the Gunpany aial the ohirlivity of finan-rial reporting: impiiry into Ihe umnber. c. stent. aih*Inary aini validity of nyular afpl sprial audils conducted by ilulepen-dent public accoutitants anil ihe internal auditors: t he j reconunctulation to t he thinl of l)irectors of itulepelulent accountants to cotolurt the nortual annual atulit alHI special purpw audits as may he nquired: atal reporting to the lhini of lliferlinrs llH' GHluttiller's findings and any recommenda-tion for chaliges in scope, incthoils or procedures of the audit-ing functiotis.Tlie Ainlil Gimniillee behl four nieclings during 19tn r
- 11. I'. Ilurg I Semor Vice l' resident Chief FinancialOfficer
- 11. I,. Wagner Gunptroller IIi
t MANAGEMENT's Discussion AND ANALYSIS OF RESULTs OF OPEftATIONS AND FINANCIAL CONDITION The followine su mmarizes the *ources of changes in op r-l l(IFt'll15 f II' UpEluTioNS ating nwnnes during 1993 and !!M)2 as comparnt to the pn-lletail sales wen at an all-time high for the Companies VI""S )"df: during 1993, increasing 4.1Lnvr last year aml 3.2% over the
,y ,9y previous nroni set in 1991. Ih; ring tlm year. the Gimpanies' ~~-
pn rnationsJ residential customers set a recont for average kilowatt-hour s959 azo 3) owye in retamowan-nour sees Usage at 8,660 kilowatt-hours. The increasnt sales pushn! 137 8) U SI "d"F" ***W* **"" p 7 01 50 operating n wnues to a new high-up 1.6% compansi lo 1992. Sales to uohties (3 sl p aj omer Earnings p r shan of S.39 for 1993 wen adversely affectml by 5376 $l26 6) Net increase (Decreasej net nonnrurring charges amounting to S t.43 p r share. liefon giving effeet to Ihe nonrecurring charges, earnings Total kilowatt-hour sales in 1993 inen asol slightly owr were S1.82 p r shan compan d to St.70 in 1992. The nonn-1992 due to the n coni retail sales mentionnl abne, which run ing charges refhrt a $276.57NJ H U after-tax write-off in wen offset by an ll.7Lierreas in sales toother utilities, the IWirtlopiarter due to ilm termination of Perry l' nit 1 Kilowat1-hour sales to residential and commercial customers experInl resolution of fuel cost nemery issues in inensa,17.27 aml 4.7%. resprtiwly. with sales to industrial Pennsylvania ami costs associatnl with the Gimpany's perfor- custoriiers showing a L3% gain. Increasnt sales to n sidential mallee initiative. The effeet on 1993 rmi inconie from timse and connnercial customers in !!m3 reflect more extreme items was partially offset by a $58,20lJUO enslit from the w cather conditions compared to conditions during 1992 along cumulatiw effect of a chimge in accounting to accrue meten d with Ilm addition of approximately 11,500 imw customers. but unbilln! rewnue (see Ltc 2), Excluding the effect of Shamn Steel, w hich shut dow n in As discuss 41 in ble 3 the Gimpanies will not participate Nmemb r 1991 imlnstrial sales increasnt 6. 4% during in further construction of l'erry l' nit 2 and have abunlonn! it 1993. w hich is indicative of an improving economy in tim as a insible electric generating plant. The unit was appnai-Companics's rvice area.The doen as in sales to other utilities malely 50% complete wimo construrtion was susp nded in reflects nsluced demand for bulk pmerin thespel market 1985.The termination n suited in a $366.377JH U write-off ofcoupled w ith redurn! capacity available for sale intermittently the Gimpany's inwstment since the Gimpany has determined due to outages at nuclear generating units in which the that recovery from its customers is not likely. Penn Power Companies share ownership. Total kilowatt-hour sales were up exp ets to n cowr its investment in Perry l' nit 2 from its cus- 1.5% in 1992 compared with 1991 primarily due to a 10.lZ tomers. Ilowewr, due to the anticipated delay in conunenn-increase in sales to other utilities. ment of recowry and taking into account the exp eted rate The inen ase in nuclear operating costs owr last year was treatment, Penn Power rengnized an impairment to its primarily due to increased expens s resulting from forced and Perry l' nit 2 inwstment of $24,458.000. As a result, net scheduled outages. Omtributing to Ihe increas were expenses inconm for the year ended Ibremher 31,1993. was reduced associah d with p rformance results al Perry l' nit I during by $2iH,713J HU ($1.03 per share of conunon stock), the year. As a result of mechanical failures, Perry pmduced The Gimpanici continuing cost reduction efforts haw electricity for less than half the year.The operating company resulted in steadily decreasing operating costs. Excluding is undertaking significant correctiw actions. including addi-applicable nonrecurring charges discussed abow, total opera- tional maintenance work to be performed during the n fueling tion and maintenance expenses are lower lhan they were fiw oulage currently in poress and for Ihe refneling outage sehed-years ago. The Gimpanies closed six old coal-fin d generating uled for 1995. %rk done during the outages is expected to units in 1993 w hich will reduce operating costs and, more sig-enhance systems and improve Perry's performanee. nifica ntly. w ill decrease capital rapdrenmnts mer the next The 1993 increase in other operating costs was due to five years by approximalely $100.000.000. Also. qualifying the performalme initialive charges mentioned abow ph"luetion group employees were offered an early retirement ($39.000JUH) and increas d costs associated with the January opportunity that, in combination with other u ork force reduc- 1,1993, adoption of Statement of Financial Accounting lions, is expected to ponluce annual savings of nearly Standards (SFAS) L.106 -Employeri Accounting for
$ 15,000,000.
Post retirement llenefits other Than Pensions" (S IS.Ol H U H lo). These comparatiw increases were partially offset by last year's additional pmvision for uncollectible accounts. The 1992 j increase compared to 1991 was due principally to a charge for an early retirement pneram offen d to qualifying employees in that year and to the increase in the provision for uncol-lectible accou nis. t r,
lower depreciation charges in 1993 refkel a full year's Gtsh generated fiom op rations reached a reconi level in effect of n duced depreciation rates approved as part of the 1993, it surpassed the previous reconi, achievnt in 1991, by Gimpany's llate Stabilization and Service An a Ibvelopment 0.8% and was 215% higher than 1991 Internally generated Program, w hic h was cffeetive in July 1991 lbnn l'ower's cash as a percentage of capital expenditures inercased to depreciation rates were n duced in 1993 as a result of an 157.8% in 1993 from 37.7% in 1988. All cash nspiin ments Ihr uplated depreciation study filed with the Pennsylvania Public 1993 were met internally, with cash and cash iquivalents Utility Gimmission, which takes into consideration exh ndni inen asing by Sli3JH HUHH)during the year. All financing useful lives of certain generation and distribution facilities. activities during the year were for refumling purposes. as General taxes were 7.1% higher in 1993 than in 1992 due disetssed alxive. primarily to higher pniperty and gnus nrcipts taxes. The The Gimpanies had approximately SIGUNNUNHIof cash change in net amortizalion of n gulatory assels in 1993 com- and temporary imestments and $10LO(HUMH)of short-tenn pared with 1992 is due lo the deferral of inen mental costs indebtedness at Ihrember 31.1993. 0ES Fuel had approxi-n sulting from the adoption of SI'AS No.1(Hi and the amorti- mately S193JHkUHHlof unused borrowingcapabilityat the zation of n gulatory liabilities. Ibth of these items wen- end of 1993 that was available for n loan to the umpany. The also part of the Gunpany's rate stabilization program. Gimpanies alsi had available $85J N HUN)O of unused short-Other income dirreasnl in 1993 compan d to 1991 due to term bank lines of credit. In addition $132JHHUHHIof Innk last year's amortization of investment tax credits ass iciated facilities that provide for lorrowings on a short-term basis at with disallown! l'erry linit I and Ikaver Valley thiit 2 con- the banks' discretion was available. 0ES Capital had approxi-struction costs, as derribed in Note 1. mately $16JHHunioof unused.short-term bornmingcapabil-Interest on long-term debt decreased in 1993 and 1992 11y at ihrember 31.1993. compared to 1992 and 1991. respectively, as a result of long- 1)uring the last five years. the Gmpanies spent approxi-term debt refinancings at lower rates.1)uring 1993, the mately $1,llKUH)OJHNIin connection with their construction Gunpanies issued approximately $600.000JH NI principal programs (excluding nuclear fuel). During that period, the amount of new debt at a weighted average cost of 6.77% and Employee Stock Ownership Plan Trust was also funded with redeemed appror.imately $552,000.000 principal amount of $2(H),000jH)0. The Gunpanies' construction prognans and debt with a weighted average cost of 8.591 The 1993 increase capital lease n41uirements for the period 1991-1998 are cu r-in of her interest expense compared to last year is due pri- rently estimated to be approximately $1.000.000,000 (exclud-marily to costs associated with the debt refinancings. The ing nuclear fuel).of which approximately $235JHH) 000 1992 rednclion in of her interest expense, compared w ith 1991, applies h) 199 L The Gunpanies base additional cash minin-reflects reduced short-term borrowing in 1992. ments of approximately St 389JHHUNH) for the 1991-199S The electric utility industry is subject to the same infla- period to meet maturities of, and sinking fund minirements lionary pressures as those experienced by other industries. 'Ih for, long-term debt and pn fern d stock; of Ihat amount, the extent that the Companies incur additional costs or receive approximately Si4UHHUH10 applies to 199L benefits resulting from the effects of inflation, those effects investments for additional nuclear fuel during the 1995-are genendly refhrted in the Companies' electric rates 1998 perial are estimated to be approximately $20L000.000 through the traditional rate making process. of w hich approximately $15,000,000 applies to 199L During unep , e unp nies' nuclear fuel investments are QplDI,lilMllCES MD lM' IDin expected to be reduced by approximately $261J N)0,000 and As indicated above, the Gunpanies have taken aggressive SOUHNUH HL n spetively, as the nuclear fuel is consumed. acUon lo reduce Iheir capital costs by taking advantage of Also, the Gunpanies have operating lease conunit ments of oppoitunities to optionally n deem high-cost debt and pn" approximately SM7JH HUN)0 for the 1991-1998 periid, of ferred st ick. The embedded cost of debt outstanding 8.27% at w hich appniximately $102JHHUNIO relates to 199L The t he end of 1993, was at its lowest level since 1979. The cost of Gunpanies n cover the cost of nuclear fuel consumed and preferred stock outstanding was 6.80% at the end of 1993, op. rating leaws through their electric rates. which was its lowest since 197L As a result of these actions and excluding the nonrecurring charges mentioned alove, the Gunpanies' fixed charge coverage is at ils highest level since 1987. 17 ~. -. - - . .
Sahs by Ihe Gunpany of first mortmis lunuls against include, but are not limilnl to, installing additional pollution pniper ty additions aint of pn fernal stock niplin that applica- conind niuipment, burning lower-emitting fuel, purchasing ble earnings nncram tests be met. With n sinvl to issuance of emission allowann's inim others, olerating existing facilities first mortmige bonds under the Gun [uny's first morlgag - in a manner w hirh minimizes pollution and retiring facili-indefillur, the availability of pn>perly R.blilions IN mon- lies. In conipliance plans submilled to lhe I'lIGland lo the restrictive than thecarnities test al the present time and Environmental l'roterlion Agency, the Gunpany statnl that twonld limil the amount of first mortmtge lninds issuable n ductions for the > cars 1995 thnmgh 19tM)an'likely to lo against pro [mrly additions to $iOUHNUHiu. The Gunpany is achietnl by burning lower-sulfur fuel, generating electricity currently able to issue $MNH HUNNI principal amount of first at its lower-emitting plants and/or purchasing emission inortgage lunids against pn viously n lirni bonds wilhout the allowances. The Company continues to evaluate its compliance need to meet Ilm above n strictions. The Company could issue plans and other compliance options as timy arise. I'lans for in exn ss of $1,lHHl.01HU H H)of additional pn fern 11 stork nynplying wilh the year 3MH) nsluctions an less certain at befon the end of the first quarter of 1991. For Ilm n mainder this time, of 100 L however. Ihe earnings rowrage test containnt in Ihe ~ Gunpan)'s charter woubl pn11ude ihe issuance of additional The Gunpany's Itale Stabilization and Sers ice An a pn fern 11 stock due lo inclusion of the 109:t nonn curring charges in the carnings test. Addilional pn fern 91 stork capa. Dewlopment Pnunun pnnides fir lose electric rates to n main at 191HIlevels imlil at least itM6, absent any signifi-bility is experInl to be n stonsl in .lanuary 199~ . cant changes in nyulahiry, ensironmental or las rotuin-lieference is made to Note i for a discussion of the ments. In addition, the Gimpany has a gml not to increase Gunpanies' nyulatory assels. Although the amounts n cowr. able from customers an sigmficant. about 90% of these lose rates prior lo the year $ H H L defernsi rosts are already reflectml in ihe Gunpanies' rates The changing envinnunent in the utility industry is pos-and an iming n cowred from customers owr approximatcl) ing roniimtilim challenges for Ihe Gunpanies. Many of these challenges are a result of the passage of the Energy Iblicy Act
- to ) cars. The n mainder, w hich is defern d Ihr nrowr> in of 199101hers result fnun allempts by large users of electrici-futun rate pnreedings, would increase rewnues by about 1%
ty to choose their supplier. In onler to meet competitim chal-on an annual insis once the3 are included in cuslomers-electric rates, lenges that may lie ahead. the Gunpanies are aggressively In .humar) 1991, the G niral Area lbwer Gionlination luirsuing opport unities to reduce costs, increase rewnues, and Group (G FO )) companies reached a settlement in connection impnne olerating efficiencies, which, if successful, will w ith a 1991 lawsuil against Genend Electric Ganpany nyani. enhance the Gunpanies' comielitiw position. The Gimpanies are rurn ntly in Ihe pnicess of a compn hensiw review of Iheir ing the l' err 3 l'lant.The scillement provides for cash pay. ments to the Qli)Icomp:mies and disconuts on future business operations as part of a performance initiatiw, to fur-ther identify opportunities for improvement. The Gunpanies purchases from General Electric.This scillement will not are serving more custonmrs than ever before with a work materially alfeet the Gimpan3's results of operations in force t hat is al its low est lewl since !!Gi The Gunpanies' futun years, TheCAIMDnunpanies filed suit against Westinghouse operating results shouhl continue to impnne as a n sult of Electric Girporation in 1991 alkving that six steam generators t hese artisilies. supplied by Westinghouse for lhe lleawr Valley Plant are defeeliw and that replacement could im nipiinsi carlier than Iheir 10-year design life. The operating nunpany has no cur-n nt plans lo replace ihe steam generators amt is evaluating the feasibility of applying new technohvies to repair the gen-erators. If the generalors would need to be replaced the rapital nists to theCAPO)companics could rance fnun $ltHUNH LOOH lo $150.000,lHNI per unit insed upon Ihe nists other utilities haw experiennst. The Gunpanies haw a 515% inten si in llenwr Valley I' nit I and a 11.88% interest in l' nit i TheClean Air Act Amendments of 1990 nspiire signifi-cant reductions of sulfurdioxideand oxides of nitnven fnun the Gonpanies' n al-fired generating units by 1995 an I addi-tional emission nihirlions liy 3H HI. (Simpliance options IS l l
SELECTED Fs:JANCIAL DATA Ohio Edison Company (In thousands, except per share amounn) 1993 1992 1991 1990 1989 Operating Revenues $ 2,369,940 52.332.378 52.358.946 S2.240.646 52.162.720 Operating income $ 525,330 5522.115 5550.452 5510.279 5543.659 Net income $ 82,724 S276.986 5264.823 5281.676 $ 361.026 Earnings on Common Stock 559,017 S253,060 5240.069 5254.048 5332.932 i Earnings per Share of Common Stock $ .39 51.70 51.60 $ l .67 52.18 Dividends Declared per Share of Common Stock $ 1.50 S1.50 51.50 S1.73 $ l .96 Total Assets $ 8,918,267 57.830.026 57.812.345 57.841.621 57.722.896 Preferred and Preference Stock Subject to Mandatory Redemption $ 45,500 559.862 565.582 562.822 $89.562 Long-Term Debt $ 3,039,263 53.121.647 S3.243.167 53.105.248 53.073.796 l l COMMON STOCH DATA The Company's Common Stock is hsted on the New York and Chicago stock exchanges and is tradeo co other registered exchanges PRICE RANGE OF COMMON STOCK 1993 1992 First Ouarter High-Low 25-3/8 2 2-118 20 _ -7/8 18-3/4 Second Quarter High-Low 26 22-3I4 21 19 : 1 Third Quarter High-Low __ 25-7/8 2 4-318 22-3/4 20-3/4 i Fourth Quarter High-Low 2 5-114 21 24 21-l/4 i Yearly High-Low 26 21 24 18-3/4 I Pnces are based on reports published in The WallStreet Journal for New ork Stock Exchange Composite Transactions. I CLAS$1FICATION OF HOLDERS OF COMMON STOCK AS OF DECEMBER 31,1993 Holders of Record Shares Held Number % Number % lodividuals 128.005 83.48 55.241.397 36.21 Fiducianes 23.260 15 17 9.054.076 5.93 Nominees 83 0.05 86.450,346 56.66 All Others _ l 991 1.30 1.823.618 1.20 Total 153.339 100 00 152.569.437 100.00 As of January 31.1994. there were 152.566 holders of Quarterly dividends of 37 54 per share were paid on the Company's 152.569.43 7 shares of the Company's Common Stock. Common Stock dunng 1993 and 1992. Information regarding retained earnings available for payment of cash dividends is given in Note SA 19
Ohio Edison Company CONSCU3ATED STATEMENTS OF INCOME pn mouunds. euept per stwe amounig For the Years Ended December 31. 1993 _ 19 9 [ _ 1991
$ 2,369,940 $ 2.332.378 52.358.946 OPERATING REVENUES OPERATING EXPENSES AND TAXES:
456,494 463.599 467.657 Fuel and purchased power Nuclear operating costs 290,321 274.7I9 291.55i Other operating costs 474,241 440.425 412.476 Total operation and maintenance expenses 1,221.056 1.178.743 1.171.684 Provision for depreciation 217,980 223.497 238.853 245,554 229.332 217.758 General taxes (6,753) 18.333 13.515 Amortization (deferral) of net regulatory assets 166,773 160.358 166.684 income taxes Total operating expenses and taxes 1,844,610 1.810.263 1.808.494 525,330 522.I15 550.452 OPERATING INCOME _ OTHERINCOME AND EXPENSE: Perry Unit 2 termination l Note 3) (390,835) - - income tax benefit from Perry Unit 2 termination f 42,092 - - 19,921 30.283 18.725 Other Total other income (expense) (228,822) 36.283 18.725 296,508 558.398 569.177 TOTAL lNCOME NET INTEREST AND OTHER CHARGES' 262,861 275.835 288.599 interest on long terrn debt Deferred nuclear unit interest (8,518) (8.392) (8.387) Allowance for borrowed funds used during construction and capitahzed interest (4,666) (6.488) Il 1.276) Other interest expense 16,445 13.958 27.696 Subsidiary's preferred stock dividend requirements 5,863 6.499 7.722 Net interest and other charges 271,985 281.412 304.354 INCOME BEFORE CUMULATIVE EFFECT OF A 24,523 276.986 264.823 CHANGE IN ACCOUNTING Cumu!ative effect to January I,1993 of a change in accounting for unbilled revenues (net of 58,201 - - income taxes of $ 33.632.000) (Note 2) 82,724 276.986 264.823 NET INCOME 23,707 23.926 24.754 PREFERRED AND PREFERENCE STOCK DIVIDEND REQUIREMENTS s 59,017 5 253.060 5 240.069 EARNINGS ON COMMON STOCK EARNINGS PER SHARE OF COMMON STOCK Before cumulative effect of a change n accounting 5 .01 5l.70 S l .60 Cumulative effect to January 1.1993 of a change in accounting for unbilled revenues (Note 2) .38 - -
$ .39 51.70 S I 60 EARNINGS PER SHARE OF COMMON STOCK
$ 1.50 $ 1.50 5 f .50 DIVIDENDS DECLARED PER SHARE OF COMMON STOCK The accompanfng Notes to Consolidated Financial Statements are an integra! part of these statements.
3)
CCNS!UDATES CALA :CE 5 HISTS Ohio Edison Company (in thousands) At December 31. 1993 1992 ASSETS UTluTY PLANT: in service, at original cost $ 8,380,430 $ 7.931.403 Less- Accumulated provision for depreciation 2,732,527 2.550.400 5,647,903 5.381.003 ; Construction work in progress-Electric plant (Note 3) 182,894 479.289 l Nuclear fuel 46,879 78.I18 l 229,773 557.407 l 5,877,676 5.938.410 OTHER PROPERTY AND INVESTMENTS 181,815 152.I18 CURRENT ASSETS: Cash and cash equivaler.:s 159,690 14.212 Recervables-Customers (less accumulated provisions of 56.907.000 and 56.432.000. respectively, for uncollectible accounts) (Note 2) 298,913 203.929 ; Other 42,428 39.074 Materials and supplies, at average cost-Fuel 41,513 70.127 Other 87,689 100.542 Prepayments _ 72,889 86.040 703,122 513.924 DEFERRED CHARGES: Regulatory assets 1,993,795 1.079.102 Unamortized sale and leaseback costs 110,656 105.350 Other 51,203 41.122 2,155,654 1.225.574 58,918,267 $ 7.830.026 l CAPITAllZATION AND LIABILITIES CAPITALIZATION (See Consolidated Statements of Capitalization): Common stockholders' equity 32,243,292 52.408.164 Preferred stock-Not subject to mandatory redemption 277,335 312.335 Subject to mandatory redemption 25,000 25.000 Preference stock subject to mandatory 'edemption - 4.500 Preferred stock of consokdated subsidiary-Not subject to mandatory redemption 50,905 41.905 i Subject to mandatory redemption 20,500 30.362 l Long-term debt 3,039,263 3,121.647 5,656,295 5.943.913 CURRENT LIABILITIES-Currently payable preferred and preference stock and long-term debt 444,170 305.465 Short term borrowings (Note 6) 104,126 151.57i Accounts payable 127,895 112.128 Accrued taxes 107,687 126.414 j Accrued interest 72,667 72.563 i Other 141,251 97,917 l 997,796 866.058 DEFERRED CREDIT 5: Accumulated deferred income taxes 1,798,551 603.123 l Accumulated deferred investment tax cred:ts 231,863 240.208 i Property taxes 101,182 109.621 ()ther 132,580 67.103 2,264,176 1.020.055 COMMITMENTS. GUARANTEES AND CONTINGENCIES (Notes 4 & 7)
$ 8,918,267 57.830.026 The accompanying Notes to Consohdated Financal Statements are an integral part of these balance sheets.
21
CCN$CUDATED STATEMENTS 07 C APITAuzATICN Ohio Edison Corppany (Dollars in thousands. except per mare amourus) At Decemt;er 31. 1993 1992 COMMON STOCKHOLDERS' EOUlTY: Common stock. 59 par value. authorced l 75.000000 shares- 152.569.431 shares outstanding II,373,125 51.373,125 l Otner paein capital 727,865 731,793 Retained earningsINote SA) 322,821 490.564 Unallocated employee stock ownership plan common stock-9.608.739 and 9.978.695 shares. respectivefy l Note 581 (180,$19) (187.318) Total common stocxholders' equity 2,243,292 2.408.164 Number of Shares Ogonal Outstanding Redempion Pnce 1993 1992 Per Share Aggregate PREFERRED STOCK (Note SCJ: Cumulauve. 5100 par value-Authorced 6.000.000 shares Not Subject to Mandatory Redempton 3 85 % 500.000 500.000 $10000 5 50.000 50,000 50.000 3 90 % 152.510 152.510 103 63 15.804 15,251 15.251 4 40 % 176.280 176.280 108 00 19.038 17,628 17.628 4 44 % 136.560 136.560 103 50 14.134 13,656 13.656 4 56 % 144.300 144.300 103 38 14.917 14,430 14.430 7.24 % 363.700 363.700 101.98 37.090 36,370 36.370 7.36 % 350.000 350 000 101 74 35 609 35,000 35.000 8 20 % 450.000 450.000 103.30 46.485 45,000 45.000 8 64 % - 400.000 - - - 40.000 912% - 450.000 - - - 45.000 Optional Redempton-February 1994 (50,000) - 2.273.350 3.123.350 233.077 177,335 312.335 Cumulative. 525 par value-Authorced 8.000.000 shares Not Subject to Mandatory Redempon. 7 75 % 4.000.000 - 5 2500 100.000 100,000 - Total not subject to mandatory rederngon 6.273.350 3.123.350 5333 077 277,335 312.335 Cumulative. 5100 par value-Subject to Mandatory Redempton l Note SDJ. 8 45 % 250.000 250.000 25,000 25.000 PREFERENCE STOCK: Cumulative. no par value-Authoreed 8.000.000 shares Subject to Mandatory Redemption. 10 25 % - 5(00 - 5.400 Redemg:on within one year (900l Total subject to mandatory redemption - 5.400 - 4.500 PREFERRED STOCK OF CONSOUDATED SUBSIDIARY (Note SC): Cumulative. 5100 par value-Authorced 1.200.000 shares Not Subject to Mandatcry Redemption: 4 24 % 4r,.000 40.000 5103.13 5 4.125 4,000 4.000 4 25 % el.049 41.049 105.00 4.310 4,105 4.105 4 64 % 60.000 60.000 102 98 6.179 6,000 6.000 7 64 % 60 000 60.000 101 42 6,085 6,000 6.000 7 75 % 250.000 - 100 00 25,000 25,000 - 8 00 % 58.000 58.000 102 07 5.920 5,800 5.800 8 48 % - 80.000 - - - 8.000 916% - 80.000 - - - 8.000 Total not subject to rnandatory redempton 509.049 419.049 5 51.619 50,905 41,905 Subject to Mandatcry Redempton (Note SDJ-7 625 % 150.000 150.000 5107 63 5 16.144 15,000 15.000 8 24 % - 45.000 - - - 4.500 11 00 % 3.6l6 11.616 102 75 372 362 1.162 Il.50% - 60.000 -- - - 6.000 13 00 % 60,000 70.000 107.15 6.429 6,000 7.000 Redemgon with1one year l862) 13.300l Total subjer . to mandatory tedempton 213.616 336.616 5 22.945 20,500 30.362 t!
CCNSOLf 2ATFO STATE %ENT5 CF CAPITAUZATION (Cant.) Ohio Edison Company pn thousands) At December 31. 1993 1992 1993 1992 1993 1992 LONCrTERM DEBT (Note SE) Frst mortgage bonds Pennsylvane Ono Edson Company- Power Company-8 800% due 1993-96 27,600 36.800 4 375% due 1993 - 9.000 12150% due 1993-96 - 12.250 9 000% due 1996 50,000 50.W0 13 430% due 1994 30,000 30.000 8000% due 1999 - 12.000 12 740% due 1995 30,000 30.000 9 740% due 1999-2019 20,000 20.000 8 500% due 1996 150,000 150.000 7 875% due 2TI - 12.000 8 750% due 1998 150,000 150.000 8000% due 2001 - 10.000 6 875% due 1999 150,000 150 000 7625% due 2002 - 12.000 8 250% due 1999 - 37.630 1.500% due 2003 40,000 40.000 6 375% due 20C0 80,000 - 6 375% due 2004 50,000 - 8 375% due 2001 - 50.470 6 625% due 2004 20,000 - 7 375% due 2002 120,000 120.000 8 750% due 2T6 - 15 000 7.500% due 2002 34,265 34.265 8 500% due 2022 50,000 50.000 8 250% due 2002 125,000 125.000 7625% due 2023 40,000 - 8.125 % due 2003 - 61.608 8 625% due 2003 150.000 150.000 6 875% due 2005 80,000 - 8 500% due 2006 - 47.595 8 375% due 2007 - 56.865 9 750% due 2019 150,000 150.000 8 750% due 2022 100,000 100.000 7 625% due 2023 75,000 - 7 875% due 2023 100,000 - 70talfast mortgage bonds 1,551,865 1.492.483 270,000 23020 1,821,865 l 122.483 Secured notes and obigatons Pennstvana Oho Essen Company- Power Company-8 250% due IW3 - 44 000 7 900% due 1993 2001 - 950 7 300% due 1993-2003 6.212 5150% due 1993 2003 - 2.850 9 345% due 1994 50,000 50.000 7.300% due 1993 2003 - 238 8 380% due 1996 87,987 119 510 11080% due 1995 - 20.000 8 980% due 2003 - i.000
. 12 450% due 1995 -
20.000 8 800% due 2013 - 50.000 4 750% due 1998 850 - 8 9tl0% due 20l3 - 13.800 6.750% due 1998-2007 - 10.600 9 200% due 2014 50,000 50.000 6 080% due 2000 23,000 - 10 500% due 2015 60,000 60.000 5 400% due 2013 1,000 - 10625% due 2015 40,000 40.000 8980% due 2013 - 4.200 1450% due 20!6 47,725 47725 9000% due 2013 - 1.000 7100% due 2018 26,000 26.000 12.000% due 2014 12,700 12.700 7000% due 2021 69,500 69.500 8125% due 2015 14.250 14.250 7150% due 2021 443 443 5 400% due 20l? 10,600 - 7.625% due 2023 50,000 50.000 7150% due 2017 17,925 11.925 8100% due 2023 30,000 30.000 5900% due 2018 16,800 16.800 7150% due 2024 108,000 108.000 8100% due 2018 10,300 10.300 5 625% due 2029 50,000 - 8100% due2020 - 5,200 5.200 5 950% due 2029 56,212 - 7150% due 2021 14.482 14 482 5 450% due 2033 14,800 - 6 450% due 2027 14,500 14.500 5 450% due 2028 6,950 - 5 950% due 2029 238 - 740,667 766.190 148,795 165.995 889.462 932.185 OE5 fuel-3 46% weghted average interestrate 131,611 169.416 Totalsecured notes andobigarons 1,021,073 1.101.601 Unsecured notes. ONo Edson Company-9 440% due 1995 75,000 75.0W 7 380% due 1997 100,000 100.000 8585% due 1997 50,000 50.000 5 650% due 2012 50,000 50.000 4 250% due 20I4 50,000 50.000 2850% due 2015 50,000 50.000 3 l25% due 2018 56,000 56.m0 4 650% due 2018 57,100 57.100 3 450% due 2032 53,400 $3.400 Total unsecured notes $41,500 541.500 541,500 541.500 Captallease ctigatons(Note 4) 59,312 65.274 Net urumor'aed dncotit on debt (11,179) p.946l Longterm debt due wthnoneyear (393,308) l301.265) Totallong term debt 3,039,263 3.121.647 TOTAL CAPITAUZATION 35,656,295 55 943.913 The accompanying Notes to Consohdated Finanaal Statements are an integral part of these statements. d
l CCNs*JLIIATED STATEM2NTs CF R3TAINED E AZNIN2s Ohio Edison Cornpany lin thousdrKis) For the Years Ended December 31. 1993 1992 1991 Balance at beginning of year $ 490,564 $ 462.N37 5449.810 Net income 82,724 276.986 264.823 Tax benefit from ESOP dividends 5,256 5.592 3.404 578,544 744.665 718.037 Cash dividends on preferred and preference stock 23,275 23.874 24.338 Cash dividends on common stock 228,855 228.855 228.855 Premium on redemption of preferred stock 3,593 1.372 2.757 255,723 254.101 255.950 Balance at end of year (Note 5A) l $322,821 5490.564 5462.087 CONSOLIDATED STATEMENTS OF CAPITAL STocM AND OTHER PAID IN C APITAL Preferred and Preference Stock Not Subject to Subject to Common Stock Mandatory Redempton Mandatory Redempton Unanocated Other ESOP Par or Par or Number Par Padin Common Number Stated Number Stated of Shares Value Caprtal 5tock of Shares Value of Shares Value (Dollars in thousands) Balance. January I.1991 152.569.437 51.373.125 5733.081 5 110.857) 5.042.399 5354 240 782 416 5 86.342 ESOP Purchase Transactions (189.143l Mocaton of ESOP 5 hares 4.941 Saeof Market Aucton Preferred 5tock (1.1401 500.000 50.000 Sale of 8 45% Preferred Stock 250 000 25.000 Redemptons-Seres 8 (2.000.000) 150.000l 5102 50 Seres (1.8001 11.800l 8 24% Seres (5.000l 1500l t 100% 5eres 18.000) l800) iI 50% 5enes {l48) l165.000l ll6.500l l3 00% Seres l10.000l l1.000l 13 50% Senes (200.000) (20.000l 15 00% Senes 16.400l l640l Balance. December 31.1991 152.569 437 1.373.125 731.793 (195.059) 3.542.399 354.240 636.216 70.102 Mocation of ESOP Snares 7.74i Sale of 7 625% Preferred Stock I50.000 15.000 Redemptions-5102 505eres (I.8001 (l.800) 8 24% 5eres (5.000) l500) 1I 00% 5enes (8.000) 1800l 15 00% 5eres (54.400) 15.440l 10 50% Seres ll00.000) (10.000l l150% Seres (15.000) (1.500) 13 00% 5enes 110.000l 11.000) Balance. December 31.1992 152.569.437 1,373.125 731.793 (187,318) 3.542.399 354.240 592.016 64.062 Mocation of ESOP Shares 6.799 Sa! eof 7 75% Cass A Preferred Stock l3.361) 4.000.000 100.000 beof 7 75% Preferred Stock (345) 250.000 25.000 Redemptons-5102 50 Seres (216) (5.400l (5.400l 824% Seres (45.000) l4.500) 8 48% 5eres l6) l80.000) (8.000l 864% Senes (400.000l [40.000) 912% Seres (450.000) l45.0001 916% Seres (80.000l l8.000l l100% 5eres (8.000) (800) lI 50% 5eres l60.000) 16.000) 13 00% 5eres (10.000) 11.000) Balance. December 31.1993 152.569.437 51.373.125 5727.865 5(180.519) 6.782.399 5378.240 463.616 5 46.362 The accompanying Notes to Conso4 dated Financial Staternents are an integral part of these staternents ti
I CONSOLI2ATED STATE *SENTS CF CASH FLcws Ohio Edison Company (in thouundy j For the Years Ended December 31. 1993 1992 1991 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 82,724 5 276.986 5 264.823 Adjustments to reconale net income to , net cash from operating activities: ) Provision for depreciation 217,980 223.497 238.853 Nuclear fuel and lease amortization 59,858 85.419 85.754 Deferred income taxes. net (26,233) 18.221 58.964 investment tax credits, net (8,345) (17.857) (2.776) Deferred revenue 19.517 37.757 Allowance for equity funds used l during construction (4,257) (3.025) (3.050) Deferred fuel costs. net (1,078) 5.130 1.41i Perry Unit 2 termination 390.835 - - Cumulative effect of a change in accounting for unbihed revenues (58,201) - - Other amortization net 1,184 9.941 5.128 Internal cash before dividends 654,467 617.829 686.864 Receivables (1,962) 2.278 (21.231) Materials and supplies 41,467 (14.889) (2.874) Accounts payable 9,823 (19.986) (4.042) Other 19,088 4.727 18.359 Net cash provided from operating activities 722,883 589.959 677.076 CASH FLOWS FROM FINANCING ACTlVITIES: New Finanang-Preferred stock 121,294 15.000 73.863 Long-term debt 765,358 937.797 1.034.801 Short term borrowings. net - 56.716 - Redemptions and Repayments-Preferred and preference stock 122,502 22.412 94.063 Long-term debt 773,128 1.065.377 756.520 47,445 - 227,184 Short-term borrowings, net Dividend Payments-Common stock 224,943 234.188 229.686 Preferred and preference stock 20,926 23.786 23.899 Net cash used for finanang activities 302,292 336,250 222.688 CASH FLOW 5 FROM INVESTING ACTIVITIES. Property additions 256,746 241.508 226.153 Investment in employee stock ownership plan - - 160.000 Sale and leaseback restructuring fees 10,417 37.654 23.723 Other 7,950 14.133 15.062 Net cash used for investing activities 275,113 293.295 424.938 Net increase (decrease) in cash and cash equivaler'ts 145,478 (39.586) 29.450 Cash and cash equivalents at beginning of year 14,212 53.798 24.348 Cash and cash equivalents at end of year 5 159,690 $ 14.212 5 53.798 SUFPLEMENTAL CASH FLOWS INFORMATION: Cash Paid Dunng the Year-Interest (net of amounts capitahzed) $ 262,410 $ 290.420 5 286.005 income taxes 94,272 134.768 l 13.712 The accompanying Notes to Consohdated finanaal Statements are an integraf part of these statements 5
CCNS 4.8'?AT23 5TATEMINTs OF tax =s Ohio Edison Company (in thouunds) For the Years Ended December 31 1993 1992 1991 GENERAL TAXES: Real and personal property 5 124,709 5IIl.533 5103,298 State gross receipts 97,348 94.415 90.96i Social secunty and unemployment 15,626 15.166 14.494 Other 7,871 8.218 9,005 Total general taxes 5 245,554 5229.332 5217.758 PROVISION FOR INCOME TAXES: Currently payable-Federal 5 61,920 5132.712 5102.017 State 5,544 14.331 15.520 67,464 147.043 117.537 Deferred. net-Federal 489 17.586 62.480 State 6,455 635 (3.516) 6,944 18.221 58.964 investment tax credits net of amortization (8,345) (17.857) (2.776) Total provision for income taxes $ 66,063 5147.407 5I73.725 INCOME STATEMENT CLASSIFICATION OF PROVISION FOR INCOME TAXES: Operating income $ 166,773 5160.358 5166.e84 i Other income (134,342) (12.95 il 7.041 1 Cumulative effect of a change in accounting 33,632 - - Total provision for income taxes s 66,063 5147.407 5173.725 RECONCIUATION OF FEDERAL INCOME TAX EXPENSE AT STATUTORY RATE TO TOTAL PROVISION FOR INCOME TAXES: Book income before provision for income taxes 5 148,787 5424.393 5438.548 Federalincome tax expense at statutory rate 5 52,075 5144.294 5149,106 increases (reductions) in taxes resulting from-Excess of book over tax depreciation - 19.741 20.043 Amortization of investment tax credits (8,345) (32.092) (8.284) State income taxes net of federalincome tax benefit 7,799 9.878 7.923 Amortization of tax regulatory assets 15,412 - - Other, net (878) 5.586 4.937 Total provision for income taxes $ 66,063 5147.407 5173.725 SOURCES OF DEFERRED TAX EXPENSE: " " 99 Excess of tax over book depreciation. net 6(r ' dj 5 27,627 5 58.306 Difference between tax and book revenue, net p fi (9.084) (18.292l Alternative minimum tax credits utilized h j 12.467 29.749 Other. net i^ - 9 (12.789) (10.799) Net deferred tax expense sis &d 5 18.221 5 58.964 ACCUMULATED DEFERRED INCOME TAXE5 AT DECEMBER 31.1993: UNQ (7m W Property basis differences s 983,603 k j Allowance for equity funds used dunng construction 282,040 g '; S@gff u".m;'Q g Deferred nuclear expense 275,832 pg h ' s f4 Customer receivables for future income taxes 244,304 p
' y& q) p* d Deferred sale and leaseback costs 90,955 ff h @
Unamortized investment tax credits (85,459) 7,276 { 7} p" ?ifi(d1 Other ni 1 , Net deferred income tax liability $ 1,798,551 b esi EE wash The accompanying Notes to Consolidated Financal Statements are an integral part or these staternents 35
NOTES 70 CCNSCLIOATED FINANCIAL STAT 3M::NTS
- l. SlllM Alh I W SIGNIFICANT .\0:ol'NTbG l'iilKilx loniers. lin Genipanii s c\lurl that differenir to he nroserable The consolidaini financial staleinents include i thio froin t heir custonnts. Tim Companies ha\e approxirnately 2 J H NI inminl ill PNiernal detuittintssioliilig trnst fAlisoll Gillipany (Gif tipally) anil its w lnilly ow inyl sul,.
silliaries. l'elllis)l\ailia l'ower Gillip.tii) (l'enil l'owit). IIIIds Os "l l kTPIHb"I u! tNu3 !'dIH HEN "U Ib"Se IU UdS an' (llM(:apital. Innsrporalnl ((ilN (';ipital) agnl ()l'$ Fuel, TM'"IdM! a5 MH a'idili'li lo lhe Irlist illWstinent w illi a corrt-Innirporalnl (0lS Fuel). All significant interromp;ui) trans- 'l"uiding inen ase lo t he dernviation reser\e. Tin Girnpanies arliialls lla\v l Hen elittliflilled.The t kiriip;iiiy aint l'ciiri l'owit b O' renunM an Nimaid liability of SW 2WHHi relaini lo deconi;unination and deniminissionine of nuclear (Girnpanics) follow the;nrounting policies arni practin s pn-scrila9l hy the l'ilblir (*lililies Giniinissjon of( }}ijo (l']'())), etirlrhinclit facililies operated h) lhe l'nited Slales the l'eillis)l\ania l'uhlir I'lilIl) Ginnuis3 ion (pl'lT);nnl the lkpartinent of Energ3 (I)ilE).as rnpiin,I hy the Energy Federal Energy llegulatory Giininission (FEllC). I'"li") Art "r 1991 The Girnpanies reniser these nists through llE\ ENI'lWThe('oiripanisi retail ensionn rs arv no lcred their nynvli\e enero rales. ott a r): le basis. lle\chue was rmignized for clertric sers ice ( Ol\l' W I C Elbllll4 W GENIXWlW Fell.lTll>The haN11 oil nielits niid Ihnitigli lhe elld sif the ye,tr [iir years I UpdHI"S id"! O!bCII UnIfa! \rea Fower Ibhirdinalion brollp prior 101991 lkvitillitig ili 199:i. le\i1lue is renigni/cd lie h Conipanies ou n. as lettiiills Ill conflinoll, \ariolis illeltide luihilled Niles through the etpl of the 3 car (9v Nole 2). juluer generaling fardities Urh of the conipanies is obligalnl .\rrotulls receigable In em ruslutners include appn,\intali ly I"lbl> d Sb3f"OIIb"nols associated wilh any joinil) ou Unl SitG.23i.tliHI relating to incten d hul utihillnl ic\enues U"'IbI) IN II"' NHH" Pf"P"flin as its internt. The Cornpanies' lhnellgli lkreinher 31. l993. I"'I!I"IlS I'I"TU! IIC Ull"'U*'S aSN h'IalMI W ilh fikill!) ow lled llen i\ ables froin rustoiners include siles lo residential. Id"ilili"S "f" IIFIUd"d in t he corresponding olutaling expens-rotunnTriill arnl indtist rial rtistoinets ls u aled ili lhe "% UU "' HN IddIM! b!db'IUPIllS DI IllM'ulP. Ibe alndlinls Gilupanies'ser\ ire alva and sales to w holeNde rilslonn rs. I"I!'*I"d "U Ib" O'H"'IIddI"d I5dIdHM' bbM l HHd"I UlilIly Then. was in,inalerial corn entration of nrei)ahles al P"Hi"II)M*Hil"T31.1991 l include the follow ing: lhventher 31.1993 or 1991 w ilh regnti lo any partictil;ir g segligent of Ihe I hinhillici riistoniers. CW rwmn W h ei LeasehoM
"""" "" " ' * " *N- ??L FI't.l.i MIS-The Coinpanies nro\rr furi-relatnl costs not olheru ise illrlinlnl Ill 149 rules front n filil rilsloiners W H W'n # 7 5 304 900 5 5 000 68 80 %
through separate energy rates. .\n) o\er or tunler rollivlion sw.mnpu resultilig f roni lhe operalion of fln se rates are inchnlnl as # r #2 and #3 744 000 330 600 11.800 50 68 % adjuslutents 10 sulmpleill energ) rates. .\rrordingly, the 8"" WW
#I and #2 1.839 500 490 200 18.500 47Ii%
(hulpanies defer the dif fercure helween arlual fuel-relalnl Peoy #1 ih04 300 240 600 15 900 35 24 % rosls Illrilrrnl atid the alliolinls curregillg tero\creil [roin thril W 54 4U b S I,I41.700 551200 ritslolucrN FTH.lTY l'E OT .\ \D lEl10mili 6-l'lilil3 planj M REM FlWNnclear fuel is recorded at original rosl. reflerls theoriginal nof of construelion, including pa)roi. w hich ilmlndes inaleriah citrichtnellt, fahriration ami intervsl alid relaletl nols such as la\es. lH'llNions and other frillge ben- n un pr or o rea or TheI:onipaiiin ariiorlize efits. adniinist rali)e a nd general cuslunni allowance for funds th"C"^l"I HH' lear fuel lased on the rate of consuinption.The lisnl dilrillg runst rilclioli ( \ f t'l X ). ( $onlpanici ejerlrIe rales inellide arilollills [or lhe [nlure dis-Tin Giliipariies pro \ide for deprecialion oii a straight-liin- posd of spent nudcar fiiel hased iiinin the foriiinia ussi lo haNis al Variolls Tales OVer the esliinated li\cs of pnynfly roillpille pa) no'lltN to t he l N l[. included in plant in ser\ ice. The annual cornpasile straight- .\l.lvtom Fiin Fla ps Iwi> ltinw o agunTiox-lilu rate for el vlrir plant was approsirnalcl3 at1% in 1993 .\ Fi l x ' represents financing costs rapilalized lo const ruelion 1992 and 1991. nork in pnian ss (GlP) during theconstruelion period.The The I:oinpa riies recognize a ppro\iiiialcly ST>.l H H l.i H H , tu,rrowed furnis porlion reflects rapitalized interest pa3:nents. allinlall)' (as drppriatioll e\pettsc) for [Illure denillnllission. alid lhe npiil) Illnds lHitlioli represenls Ihe Inineash rapital-ilig roNls applirable lo Iheir ou nership and leasehold interests Zalion of inpulal n[u l) nists. .\f(*lx) \ aries arrording to in nuclear eencraling units. The G rnpanici share of the changes in the le)el of GlP and in the sources and nists of [lillire obligalidit to deronflilission these units in rufrent dol- Pdpl!d! IbP CulHlH mile FFIM: rales (e\rhidirig iiurlear fuel lilts is eslilliated to lu appnl\ilnately $IN1t H H).ik Hl. The interest) wi re X.x%. 9.1% arid 9Ji% iri 1993.1992 innd 1991. Cotilpallies ha\e fero \ered approxiinately Sil(H Hl(H H) [roin IPNI"ClikI). IbipilahXalion tales for illlenPI oil nuclear rnstoniers through 11ereinher 31,1993; such ainonnis are IU"I wcreli%.13 aini 6.0% in 1993.1992 arni 1991. refbtled in the reserw for depreriation on the Ginsolidaint respeeliul3 II. dance Short. If the arlual nisls of dironunis<ioning lhe Imm TMlkinclaik of the total pro \ision for income units e\rced the arruinulated amounis nrowinl from ens- IdN"5 af" 5h"w 11 "n t h" C"nxolidaint Slaleinents of Ta\cs The 5
}
N(T1 ES Ointirmed defernst income ta.ws in 1992 and 1991 n sulted froin liming The assumnl discount rate usnl in determining the diffen nres in ihe renenition of revenues and exp nses for artuarial pn sent value of Ihe pro)rini benefit obligation was tax and accounting purpises. Inwstinen! tax en dits (l'lU), 7.E in 1993 and 9% in 1992. The assunied rate of increase in w hirh were defern,I w hen utilized, an tring aniortiznl owr future corniensation levels us91 to ineasun this obligation theestiniated hfeof the related pro lrrty. I'lUainortizatiott ill was IIM in carh year. Exiorted long-terin rates of retiirri on 1992 includal $21.31HUNHiassriated with portions of the plan assets wrn assumed to lm I1% in each year. Cornpany's investinents in Perr) Unit I arul I!cawr Valley The Gimpuiies provide a ininimuin ainount of noncon-Unil 3 w hirh are flot rerow!"ihle froill retail riistolilers. Iribillory life insurailre to n tin d elllplo)ees in addition lo The Cornpanies ailopted Staternent of Financial optional contributory irisuratire, llealth rare irtiefits, w hich Arrounting Standards (SIMS) No.109,9erounting for include verlain eniplo)ee dedurlihles and copaynients are also lileollte Taxes? on .lanuary 1,1993. w liich rnpiires t he lia- availiihle lo n tirni esiiployees, their def endents iirni, under bility inelhal to le used lo account for deferred incoule laxes. certain circumstances, their stirvivors. The Companies pay Under this stainhin!. deferrn! income tax liabilities n latnl to insurance premiums to cover a portion of Ihme Irnefits in tax and arrounting basis diffen nn s must to rengniznl al the exress of sel limits; all amounts Up to the liinits are paid by statutory innime tax rates in effect w hen the liabilities are t he Compinies. Expenses asseiated w ith health care and exprini to ir paid. The compments of aivurnulatal defernsi life insurance Irnefits for n tints were charged to income inroine taxes as of t hremier 31.1993 an disclosnl on Ihe during the applicable payment p riods in 1992 ami 1991, Ginsolidatnl Slalements of 'lhxes. and amounted to SU.6X9.0lHhmd S8.2sO,000, resprtiwly. lilTilH311dT l!IMITlwThe Conipanies' t rustenl. non- In 1993 lheCornpaniesadoptnlSIMS No. ItHi conlributory defits,1 Irnefit p nsion plans cover almost all " Employers' Accounting for Postrelirement llenefits Other full-time employees. I'pon retirement. emplo3ces receiw a Than l'ensions? w hirk rnpiires companies to recognize Ihe monthly pension Ins,1 on length of senire and compensation. experInl rost of providing other pistretirement henefits to The Companies use Ihe projerint unit ernlit methal for fund- emplo)ees and t heir teneficiaries and covered dependents ing purposes and were not rnpiirni to make pension contribu- from the time employees are hirni until Ihey herome eligible liolls d u ring the t h ree . wars endal I b rein her 31.1993. to receiw those Irnefits. The Companies do not currently furni The followingsets forth Ihe fonded statusof the plans Ihese future benefits. alHI amoulits recogni/nl on t he Consolidatal llidance Sheels as The liillow ilig sets tiirth the acerned postretirement of ihremher 31: henefil nist on t he Consolidain! Ildance Sheet as of
'm '992 Ihrender 31,1993:
pn thousands) - ----- - -- -- _ . _ - Atuanal present value of benefit ODhgations Acumulated postreprement benefit obliganon 5240.712.000 Vested benefits 5385,187 Unrecogneed transition obhganon p 93.374.000l 5471.205
" 9" "
i Nonvested benefit 5 28.I80 21.740
& cumulated benefit obhgation 5499.385 5406.927 Plan assets at fair value 5770.240 5710 370
& ar al sent value of projected benefit Tb mi umde d Nn lin nn nt befit obtidion is l Plan assets in excess of projected benefit participanls Md O.and odH'r attIw phn partirh t
obhganon 164.392 220.385 pa nt3_. $67,597,000, Unrecogneed net gain (6.743) 177.333) Nel perialic Hn lirenn nt befit nd for 1993 included Unrecognized prior service cost 14 074 15 629 Unrecognized net transDon asset
,g. ,
l (57.7I9) (65 664) Net pension asset 5114.004 5 93 017 Service cost 5 3.929.000 interest cost I8 039 000 The assets of Ihe plans Consist primarily of common Amortization or transinon obhgation 10.178,000 Voluntary early reprement program expense 1.533.000 stocks, I,m. led States gowrnment honds and corporale honds. Net panodec postretirement benefit cost 33.679.000 Nel pension costs for the Ihree years ended Ihvem her 31. 8enefits paid i r.389.000 1993, wPre romputed as follow s: increase in accrued postretirement benefit cost 522.290 000 1993 1992 199I The health care trend rate assumption is 8.25% in the pn mousands; service cost - benefits first year gradually decreasing 10 3.5% lbr the year 2008 and earned dunng the penod 5 13.171 5 13.278 5 13 321 later. The discount rate Us d to rompute tin arrunmlated inte projected benefit 1- n wd Mmhl Wide M h Mn % M m Return on pian assets 197.849) (59.297) p 24.509) 7.5%. An increase in the health rare trend rate assumption hy Net deferral (amorteation) 14.954 (22.378) 53 398 one len entage point in all years would increase the arrumu-Vbluntary eany retirement lated pi3tn.lirenn nl hem fit obligation hy approximately program expense 6.014 7.289 - SiO.lUO,Ond a nd the aggn' gate annual ser ice atid interest Net pension cost 5(20.987) 5(20.817) 509.714) e nists h) approxiniately di.200,000
Tim l'l'Oland PI'l'G have authoriznl the Gimpanies to appnipriate at the end of each reslectise year. The yields defer the inen mental nists resulting fn>m adopting SFAS No. assumed were hasnt on securities with similar characteristics 100 (compansl to costs computed under the former accounting offen d by a corporation with enslit ratings similar to the losis) tbr futun recovery from their n>tailenstomers. Gunpanies' ratings. 110;t'lJim Assers-The Gimo mics renignize, as n gu-lul!M NGs l'El! Sil AllE ( W 0 61MUN bTHG-Farnings per latory assels, nists w hich thr FEltC, I'lV)and I'l'l'C have shan of a onunon stock shown on the Ginsolidatal Statements autlmrizal for n nnrry fnml customers in futuna leriods, of liu1bine for the three years endal liecender 31,1993, wer" \Vilhout such antluirization, the costs wouM haw been coniputnl as follows: charged to inconic as incurnsl. Arnounts shown below as 1993 1992 199i being n coven d currently have a composite n maining recos-pn inousanos. except per snare arnountsi cry perioil of appniximately 30 years. The reinaining assets, ome before cumulanve effect 5 24,523 5276.986 5264.823 ereferred and preference Woul inWW Fvellues by aboul 1% on an annual lusiS once stock dividend requirements (23.707) (23.926) (24.7541 tlo y are includal in customers' electric rates. h p pia d vidends st - 5.592 3.404 Earnings before cumulative effect 816 258.652 243.473 Cumulative effect of a change in accounting 58.201 - - I!n thousarxN Earnings atter cumulabve effect 5 59.017 5258.652 5243.473 5 580.482 5 596.275 Shafes. Customer Receivables for Future Weighted average number of income Taxes 658.1I5 - common shares outstanding I52.569 152.569 152.569 Sale and Leaseback Costs 252.625 43.496 Earnings per share of Common eroperty Taxes 101.182 109.621 Loss on Reacquired Debt 103.158 94.254 8efore cumulative effect of a change in accounting 5 01 51.70 5I 60 DOE Decommissioning and Decontaminanon Costs 19.275 20.500 ca e n cc u t og 38 - - Uncollectible Customer Accounts 13.425 Il.154 Other 12.987 13.867 Earnings per share of Common $tock 5 39 5130 51 60 1.741.249 889.167 , Not currently recovered brough rates. Nuclear Unit interest Expense 198.453 189.935 SITI'EEMENTAE CAsli Flows INH ilut \TU 6-All tetup"- Employee Postretirement Benerit Costs 16.456 - rary cash inwstnients pun based with an initial maturity of eerry unit 2 Terminanon 37.637 - l t b ree luont hs or less a re rejnirted as cash n]Uivalents on t he 252.546 189.935 Consolidated llala nce Sheets. The Companies reconi temporary Total 51.993.795 5I.079.102 cash investments at cost, which approximates their market salue. Noncash financing and investing activities included 2. Cll ANGE IN Apf NTING Fait l'NlilLLED llEVENUM: capital lease transactions mnounting to S138DH H L on .lanuary 1,1993, the Gimpanies changni their
$5, Nil.1HH) and $10A6DWH) for the years 1993.1992 and accounting policies to recognize revenue relating to melensl 1991, respectively. OlM Fuel conunercial paper transactions, sales which remain unbilled at the end of the accounting w hich are n fh eted as long-term debt on t he Consolidated period. This change was made to more closely match the ildance Sheets (see Note 5E) but haw initial maturity perials Gimpanies' revenues with th costs of services provided. The of ihn e months or less, are reported net w ithin financinx effect of this change increavd net income for the year ended aclisitles under long-term debt, Ih cember 31,1993 (befonqhe cumulative erfeet fnun irriods All bornm ings w ith initial maturities of less than on" prior to 1993) by approximately S L600,000 (S.03 per share of year and $36,55 UNH) and $30,072.000 of inveshnents of her conunon stock). The cumulative effect to January 1,1993 was than cash and cash niuivalents at Ih cemler 31,1993 and $5s,eoux)0 (net of $33,632,000 of income taws) or S.38I rr 1992, n spectively, w hich are defined as financial instru- share. The reportni results of operations for the years ended -
ments, are renected at their approximate fair market value. 1)ecember 31,1992 and 1991, wouW not have imen materially The appnaimate fair market salue of all of her long-term debt different if this new accounting luilicy had teen in cffeet and of prefernst and preferem e stock subject to mandatory during ihose years. n demption exceednl the carrying cost of those financial , 2 TmmTtW instruments by approximately $198JN10,000 and $1,8(HUHl0 as of th ccmler 31,1993 and appnnimately $130,000JWKland in ih cender 1993, the Compam,es announent that they
$2,5(HUN Klas of th cember 31,1992. respectively. The fair will not participate in further construchon of Ibrry 1 mt _
valuc of these instruments reflect the present valuc or the cash and haw abandoned l'erry l' nit 2 as a inissible electric gener-outflows n lating to those securities losed on the turn nt call ating plant.The nunpany determined that recowry from price, the yield to maturity or the yield to call, as deemni customers of its l&rry I' nit 2 inwstment is not prolable, ,
N(ff tS Gintinued - n sulting in a $366.377JH HI write-off of its imestment in The futun minimum lease payments as of Dirember 31, 1993. Penn Power eyarts its l'erry l' nit 2 innestment to be 1993, are: nroserable from its customers. Ilowever, due to the anticipat- ['7',',' %'p el delay in commencement of nrovery and taking into pn gg,,,ng,, aWollnl the exlCrled rate tn'alment, Penn Power nrognihil 1994 5 17.299 5 101.744 1995 16.165 105.526 an impairinent to its Perry I? nit 2 imestment of $24,458JHH) 1996 14.484 108343 in 1993. As a result, nel income for the year emled Ibremler 3997 I3.193 I I 3.047 31,1993, was n9lured by $2 tM,713JHNI(SI.63 lrr shan of 1998 12.278 118.128 runnnon stin k). Years therea4er i12.761 2.479.443 Total minimum lease payments 186.180 53.026.63i . ( [j3g Executory costs 46.375 The Girupanies lease a portion of Iheir nuclear generating Net minimum lease payments 139.805 facilities,certain transinission facilities,rotuputer opiip. 80 W n n nient, offire spare and other properly afnl uplipment Umler Present value of net minimum rancelable and nonrancelable leases. lease payments 59.312 ln 1987, the Gunpany sohl a portion of ils ownership Less current portion 6.739 interest in Perr) l'Hil l and Praser Valley l' nil 2 and simul- Noncurrent portion 5 52.573 _ tanmusly enlered into operaling leases on ihe portions sohl for basic lease terms of approximately 29 years. Iluring the terms 5. CA PITAI.17.ATioN: of the leases t he Company continues to le responsible. to Ihe (.\) Inn.\lN ED Eil:Niscs-Under the Company's first extent of its combined ownership and leasehohl interest, for mortgage indentun , the Company's consolidated retained costs asswialed with the units including construction eNrn- earnings unrestricted for payment of cash dividends on dit ures, operalion and maintenance expenses, insurance, the Gunpany's conunon stock were $250,002JHH) at llecember nuclear fuel property taxes and decommissioning.The leases 31,1993. l'rovide for ad.justnn nts to the basic rental payments for possi- (1:) E\lPIM EE Slu X OWN Elisilll' PL\N-The Employee ble future federal tax law changes. The Company has the Stock Owoership P!an Trust (FN)P) was established in right, at Ihe end of the resiertise basic lease terms to renew October 1990 to Iomi the matching contribution to the the leases for up to Iwo years. The Gimpany also has t he right Gunpanies' existing 401(k) savings plan. All full-time to purchase the facilities at the expiration of the basic leas" employees eligible for participation in the 401(k) savings plan term or n newal term (if chtted) at a prire opial to the fair an covered by the FN)P. The ESOP borrowed $200,000,000 market vaine of the facilities. from the Gunpany and anluired 10,654,114 shares of the Consistent with the regulatory Ireatment, the rental pay- Gunpany's conunon stock on the open market. In 1993,1992 and 1991,309,956 shares. 412.167 shares and 263,252 shares, ments for capital and oierating h ases are charged to o;wrating expenses on the Consolidated Statements of income. Such costs respectively, were alkrated to employees with the correspond-ing extense recognized based on the shares alkrated methaf. n flected on Ihe Gmmlidated Statements of Income for the three 3 ears ended Ibermirr al,1993, are sunnuarimi as follow s: 'Ibtal FN)P related compensation expense was calculated 399j US I"!!"*N
,993 997 1993 1992 1991 pn mousands)
Operating Leases (in thousands) Base compensacon 5 6.799 5 7.741 5 4.941 Interest element 5 96.804 5108 870 5117.627 #" Other 15.418 13.308 11.866 Dividends on common stock Capital Leases held by the E5OP and used 7.896 8 354 8.150 to service debt 0 5.944) p 5.970) (9.735) Interest element Interest earned by the ESOP {275) (317} p 708) Other 6.843 6.985 6f788 510.565 511.439 5 6.204 Totai rental payments $ 126.961 5137.517 $ 144.431 (c) PitElminu:D Flui-l'enn Power's 7.625% and 7.75% series of prefernsi shrk have restrictions which prevent early redemption prior to urtoler 1997 and July 2003, respectively. The Gunpany's 8 45% series of preferred st rk has no early n demption provision and its 7.75% series is not reth emable lefore April 1998. All other prefernsi si ek may be redeemed by the Gunpames in w hole, or in part, with 30-60 days' notice. The optional redemption prices shown on the Gmsolidated Statements of Capitalization will decline to even-tual minimums per share acconting to Ihe Charter provisions that establish carb series. nn
(D) l'n EFElut EO Nlu :K Sr tulLT To mNluToln' Nuclear fuel pun has s an financed through Ihe issuance !!EDE\tITloN-The Gimpany's 8.tr>% series of preferred stock of 01B Fuel commercial pal
- r anil hans. both of w hich an-has an annual sinking fund nquin ment for T10 IHl0 shan s supported by a $325JH HU H Hilong-term liank credit agnr-beginning on SeptemtwT 10,1997. Penn Pow cr's 13.00% sities inctit w hich expires .\ larch 31.1996. Arnmlingly. Ihe com-of prefern d stock has an annual sinking fund nyuin ment for inercial paper and lums are refkrtni as long-term debt on the 5,000 shares in each year on July 1; its 7.625% series has an Consolidatnl ikdance Shn l4 OfB Fuel must pay a facility fn-annual sinking fund rninirement for 7,TdHI shares beginning of 0.1875% on the total line of en dit and a conunilment fee of on OctoINT I,3002. 0.002Il% on any linusnl HIllonill.
Pn fern d shares an n lin d at $11H)lut shan plus 6.Sitoirr-TI:ltM llolillowlNus AND lbNK LINis accrued d.ivi.dends. Sinking fund nyuin ments (m.elud.mgan , optional redemption in 1991) for the next fim years are: Short-terin borrowings outstanding at llecember *ll, 1994 550.862.000 [993 n.pg,3.nl o[.S Gipital debt w hich is s cun d by 1995 500.000 1996 500 000 customer accounts n4vis able. OfS Gipital ran borrow up to 1997 5.500.000 $ {ggj H H)J H HI utaler a n cei\ ables finain ing aan ement at 1998 5.500.000 rates Insed on certa.m lunk connnercial paper. Of%, p.tal i is nquired to paya feeof 0.5%on theamount of theentin-(E) IMrEini DElrl-The first mortgage indentures fi""""" Uniit. The nveivables financing agntment expin s and their supplements, which secun all of the Companies' first mortgage innds, serte as direct first mortgage liens on A P'II 2 L IUUU' substantially all proiwTty arid franchises, other than sintifi-h ga w hm d mM w % hMk bb Hiat prodde for borrowings of up to $85JHHUHH) under vari-cally excepted pniperty, owned by the Gimpanies. oux interest rale options. Short-term borrowings may be made Ikwd on the amount of bonds authenticated by Ihe under Ihese lines of credit on the Gunpames' unsecured Trustee through December 31,199:h the Gunpany's anwal
""I "" "**""' E"avaHability of t hese lines, the Gimpanies sinking and improvement fund nyuirement for all bonds issued under the mortgage amounts to $30.050.000. The an minin to pay conunanient fees Hial my fnim om to O. >%. Thes lines expin al various times during 1991.
Gimpany expects to deposit funds in 1991 w hich w ill be with-drawn upon the surrender for cancellation of a like principal 7. G iM M ITM EN'IS. Gl'.\ll.\ NTEIS A N D G )NTINGIN:lES: amount of bonds, which are specifically authenticated for o gi.n mnm Pimmiu -The Gunpanies' current fon-such purposes against unfunded property additions or against cams n flect expenditures of approximately $1.000.000.000 pruiously retired bonds.This method nm result in minor for property additions and impnnements fnun 1991-1998,of increases in 1he amount of Ihe annual sinking fund w hich approximately $235.000.000 is applicable to 1991. rnluirement. Investments for additional mn lear fuel during ihe 1991-1998 Sinking fund nquirements (including an optional perial an estimated to be appmsimately S201.000.000, of redemption in 1991) for first mortgage londs and maturing which appmximately $i5,000.000 applies to 1991. During ihe long-term debt (excluding canital leases) for the next fiv" same periods. Ihe Gunpanies' nuclear fuel investments are years are: expected to be n duced by appmximately $261.000.000 atul
,nqu .as e um ar fud h mnwnd.
~
1994 $ 386.569.000 1995 204.854.000 Nlti. EAU INSl'i m :E-The Prin-Anderson Act limits y l
][y] the public liability relative to a sing el incident at a nuclear 1998 150.850.000 Iw> wit plant to 69.396JHHMHHl. The arnourit is coven d by a combination of prisale insurance and an industry retrosper-The G>mpanies' obligations to repay certain pollution live rating plan. Ikised on their pn sent ow nership and leas-control revenue bonds are secun d by several series of first mortgage lumds and, in sune cases, by subonlinate liens on the related pollution contml facilities. A portion of the uns-cured notes outstanding are entitled to Ihe benefit of irrevoca-ble lonk letters of credit of $338.831,000. To the extent that drawings are made under those letters of credit to pay princi-pal of, or interest on, the pollution contnd revenue bonds, the Gimpany is entitled to a credit on the notes. The Gimpany pays an annual fee of 0.625% to 0.925% of Ihe amounts of Ihe letters of credit to the issuing Innks and is obligated to n im-burse the innks for any drawings thereunder.
31
~ _ M TflN G mlinuni hold interests in ihaver Valley l' nits I aml 2 and l'erry linit TheClean Air Act Ameruimentsof 19tM) n*1uin signifi-1, the Companies' maximum initential assessment uruler ihe cant rnluctions of sulfur dioxide (SO2) and oxides of niinigni iiulustry n t rospectiw rating plan (assuming ihe of her cal'GO fmm the (bmpanies' tud-fin 91 generating units by !! MIS and companies wen lo mniribute iheir proportionate shan* of any additional emission rnluctions by 2(H10. Gimpliance options awssments under the retmspective rating plan) would in- include, but an* not limital to, installing additional polhilion
$1018(HUHHIi n rincident but not mon than Sl3JHHUNN)in conlml ntuipment, burning less inlluting fuel, inirchasing any nin year for each incident. emission allowances from others, oin rating existing facilities The Gunpanies an also insonsl as to their n spectiw in a manner w hich minimizes grillution arul n tiring facili-inten sts in (19 Ikawr Valley Station and the Ibrry I'lant lies. In compliance plans subinilteil to the PI'G)and to the under pidicies issuni to lhe operating company for each plant. Envininnirntal l'rotection Agency (EPA), the Gunpany stalnl l' inter lhese indicies. up to $d,750,(H HV H H) is pmvidni for that nuluctions for ihe years 19'15 tbrough 1999 are likely to property dantage and devontaminalion arn! decommissioning in achieved by burning lower sulfur fuel, generating mon >
costs. The Gimpanies haw also obtainni a pproximately electricity at its lower emitting plants and/or purchasing
$313.01 HUH H) of insurance < mrrage for replacementi nmrr emission allowances. Tin Gempany continues to evaluate its costs for their n sinrtive interests in Ikawr Valley l' nits I compliance plans arni other compliance options as they arise, and 2 and Perry linit 1. l'nder llp se policies, the Gimpanies Plans for complying w ith Ihe year 2000 n ductions are less can be assessnl a inaximum of approximately Sl5,9HUNH) for certain at this time, accidents at any emen d nuclear facility wrurring during a TheG>mpaniesan presently rnpiind to meet federally Inilicy year w hich an in excess of accumulated funds available aPPf0VMI SU 2 nyulations, and the violations of such nyula-to Ihe inson r for paying les. tions can n sult in injunctive relief, including shutdow n of The Gunpanies intend to maintain insurance against the generating unit invoked, aml/or civil or criminal in nal-nuclear risks as described abow as long as it is available. 'Ib ties of up to $25JNH) per day of violation.The El% has an theextent that replacement power, property damage,deconta. interim enforcement policy for the Sus nyulalions in Ohio mination, denunmissioning, n pair and replacement costs and w hich allows for compliance with the n gulations based on a other such costs arising from a rmelear incident at any of the 30-day averaging lu rial.The El% has pnynwd nyulations Gimpanics' plants exceed Ihe policy limits of Ihe insurance w hich could cause changes in the interim enforcement policy, from time to time in effect with respect to Ihat plant, to the including revisions of Ihe methat of determining compliance extent a nuclear incident is determined not to becowred with emission limits. The Gimpanies cannot pnslict what by the G)mpanies' insurance policies, or lo the extent such action the El% may take in the future with respect to the insuranee becomes unavailable in Ihe future, the Gimpanies proposed regtdations or ihe interim enforcement policy.
would remain at risk for such costs. The Pennsylvania ikpartment of Emironmental (WAluNTElWfhe Gimpanies, together w ith the other llesources has issued regulations dealing with the storage, 8:AM) companies, have each severally guaranteed certain treatment, transportation and disposal of residual waste such debt aml lease obligations in connection with a coal supply as coal ash and scru bber shalge. These regulations impiw contract for Ihe Bruce Stansfield Plant. As of 11ecember 31, aihlitional n*tuirements relating to permitting, ground water 1993, Ihe unnpanles' share of Ihe guaraniecs (w hich approxi. nionitoring, leachale collection systems, closure, liabilily male fair market value) were $101,217JHHl.The price under insu rance a nd operating mat ters. The Gimpa nies are dewlop-the coal supply cont rart, w hich includes certain minimum ing and analyzing various compliance options and are payments, has been determined to be sufficient to satisfy presently unable to determine the ultimate increase in capital t he debt and lease obligations. The Gunpanies' total par and oin rating costs at existing sites. ments under t he coal supply contract were Si! UJ2J H H i, legislative and administrative action and the effect of
$103.fi57.000 and $107J HiDJ H W) du ring 1993,1992 and 1991, court decisions can be expected in the future (as Ihey have in respectinly. Under the coal supply contract, the Gunpanies- the past) to change the way that Ihe Gimpanies must oin rate minimum payments in each year during the perial 199 g in order to comply with envimnmentallaws and nyulations.
Ihmugh 1999 are approximately $35JWHul00 With respect to any such changos and to the environment d EN ViltoN M KNTAld! xlTM ts- Va rious federal, state and mallers described above, the Gunpanies expect ihat any bral authorities ngulate ihe Gunpanies wit h nyard to air n'sulting additional capital costs which may be nsprired,
, and Waler (plalily and other entinnunental matters. Thy as well as any nvtuired increase in oterating costs, wonld Gunpanies have estimated additional capital expenditures for ultimately in.' recowred from their customers.
emimnmental compliance of approximately $175.00(UNM, w!!ich is included in lhe const ruction forecast giwn above tilHier "Ginstruction Phlgram" for 1994 llirough 1998 m
- 8. Sill)l Ally ()l' Ol'Alffl;lti Y l'IN A NCI Al. IhTA (lIN Al'l)lTi{D): RSPCRT CF INECP3ND3NT PU;i:LIC ACCCUNTANTS
,I.he following suminarizes certa,n i ninsdiilated operah.ne results by quarter for 1993 aiul 1991 'Ib TllE Slu:Kilol. dells AN D 110AltlHil' !)l110C1011S Ol' un u xne e s,we n twe p 01110 EDis0N O alPANY:
inece Morens tmed 1991 1991 1991 1991 de have alldited the HUninlpanying ronsolidatnl IXdann' pn thausarvis, curis per snare amoiny Operanng Revenues 5593 214 5563 349 5624.524 5 588 853 nihil 3 UHd c"US"hdaled SlalelH"His 01 capildli7alion of Oh.l0 Operaung Expenses [3ljson Q,inpany @n Ohio corporation) aint subsidiaries as of and Taxes 461.719 425 354 472.341 485.196 Ihteinler 3E 1993 alHl 1991 and ilo' related consolidated Operateg income 131.495 137.995 152 183 103357 Other income IExpense) 4 016 4.988 4 019 (241.905) statenients of inconte, rela.thol MirningN rapital stork atul Net Interest and other paid-in rapital, rash flows alHI taAes for each of the three Other Charges 68 287 68.438 68.041 67 219 .
. sears in the perioil endni ihretnher 31,1993. These f.inancial Cu tda statenients are the responsibility of the Girnpany's nianage-Change in Acounting 67,224 74.545 88 221 (205 467) Inenl. (lur responsibilily is in express ait opinion on ihese cIn ng financial staternents hasal on our audits.
C ir 58.201 - -- - 5 74 545 5 8822I on u our aun in awodance wM grueraHy Net income (Loss) S i25.425 Sf205.467) accepted auditing standants. Tinw standants rupiire that we Earrurys (Loss l . Applicable to l'Idh UU p"IIOINI NI" U Ud k! !O Ob!d HI IPUXOlla b!" USSUIdllPP Common $tock 5119.520 5 68.310 $ 82.462 5(211.1751 aboul % helher the financial stalernents an' free of inaterial Earnings (Loss l per inisstah ment. An audit inrindes exanlining, on a test basis, 5h 9yd 'BdtgComm " es dence supporting ihe announts and discloson s in ihe fin-Cumulative Effect ancial slalenienlN. An audil also includes assessing ihe ar-coundng principles used and significant estimates made by cN y 5 40 $ 45 5 54 Sp 38; Cumulame Effect of a managenient, as well as evalualing ihe overall financial state-Changein Acounong 38 - - - nu nl presentation. We believe lhal om audits provide a rea-Eaming4 Loss) per smalile hasis for our opinion. Share of Common Stock 5 78 5 45 5 54 In our opinion, the financial statements referrni to above 50 381 present fairly, in all inaterial resturls. the financial position inrec unnms tnord Y9f N $9f 97 of Ohio lilison Company and subsidiaries as of Divemler 31, 1993 and 1991 and Hie results of Iheir operations and Iheir on mousands cuepwer snare amnst Operatrry Revenues 5587.787 5565.621 5601.533 5 577.437 rash flow s for each of Ihe tbree years in Ihe [rrioil ended
" " " " "#I a es 453.220 445 036 459.430 452,577 Operaung income 134.567 120.585 142,103 124 860 .
Other locome 9.585 9.198 8.290 9.210 As divussnl in Notes I and 2 to the consolidated filian-Net interest and pjaj slateno nts, erfertive January 1,1993, the Gimpan'y Other Charges 71.014 70.002 71.255 69.141 changed its method of aerounh.ng for unhilled revetnies, Net income 5 73.138 5 59.781 5 79.138 5 6495 inconte laXes and postrrtirement benefils other than pensions. Earnings on Common 5tock 5 67.052 5 53 776 5 73.240 5 58.992 Earnings per Share N , of Common Stock 5 45 5 36 5 49 5 40 AllTlll'It ANI)RitSEN & G1. llesults of operalions for the first three quarters of 1993 were restated to refbri the change in arrounting for unhilled New York, N.Y. revenues as described in Note i llestatni net income for Ihr l'ehruary 1,1991 ; first quarter includes $58,201,000 or S.38 per share for the cumulative effect of the change.The effect on income from continuing o[rrations was as fidlows: S(5,797,000) or $(.01) per share in the first quarter, S L539.000 or S.03 per share in the stond quarler, and $(U5950) or $(.03) in the thin! quarler.
- n
l Ohio Edison Company CCNS2WIATED FIN ANCIAL STATISTICS (Dollan ni thousands. ewept per share amounty 1992 1991 1990 1989 1988 1983 1993 GENERAL FINANCIAL INFORMATION 52,369,940 52 332.378 52 351 946 52 240.646 52.162.720 52.151.385 51.527.22d Operating Revenues 5 525,330 5 522 115 5 550.452 5 510 279 5 543 659 5 496.996 5 302.751 Operatangincome 5 59,017 5 253 060 5 240.069 5 254.048 5 332.932 5 186.170 $ 227.843 Earnings on Common $tock 1,12 2 01 1 95 l 97 2 03 1 65 2 22 SEC Rato of Earnings to Faed Charges 55,877.676 55.938.410 55.985,415 56.049.219 56.081.737 $6.048.034 55.246.565 Net Utikty Plant at December 31 5 263,179 5 270.993 5 258 041 5 221.583 5 771,131 Capital Expenditures 5 252.592 5 235.622 Capitahzaron at December 31:
$ 2,243,292 52.408.164 52.371.946 52.545 159 52.565.906 52.530.975 51.711.974 Common 5tockholders' Equity Preferred and Preference Stock Not 328,240 354.240 354 240 354.240 354 240 354 240 404.240 Subject to Mandatory Redempton Preferred and Preference Stock 45,500 59 862 65.582 62.822 89.562 96.802 158.112 Subject ro Mandatory Redempton 3,039,263 3.121 647 3 243.167 3.105 248 3.073.796 3 208.553 2.929.262 Long ierm Debt 55,656,295 $5.943 913 56.034.935 56.067.469 56.083.504 56.190.570 55 203.588 Total Captakzaton _.
Captahzaton Ratos at Decemter 31 39 3 % 419% 42 2 % 40 9 % 32 9 % Common 5tockholders' Equity 39.7 % 40 5 % Prefer ed and Preference Stock Not 5.8 60 59 59 58 57 78 Subject to Mandatory Redempton Preferred and Preference Stock j Subject to Mandatory Redempton 0.8 i0 li 10 l5 I6 30 52 5 53 7 51 2 50 5 51 8 56 3 tong Term Debt 53.7 100.0 % 100 0 % 100 0 % 100 0 % 100 0 % Total Capitahzaton 100.0 % i 100 0 % Cost d Preferred and Preference Stock 7 60 % 8 59 % 8 72 % 8 71 % 9 63 % Outstanding at Decemte 31 6.86 % 7 32 % Cost of Long-Term Debt 8 75 % 9 28 % 9 67% 10 26 % 10 83 % Outstanding at December 31 8.27 % 853% COMMON STOCK DATA Earnings per Share' $1.82 51 70 51 60 il 67 52.i8 51 22 52 22 108 h 99% 99% 130% 70% 142% Return on Average Common Equity
- 11.4 %
$1.50 51 50 $150 51 73 SI 96 51.96 sl 80 Dmdends Paid per $ hare 104 % 90 % 161% 81 %
Common $tock Dmdend Payout Rato' 82% 88 1 - 94 % Common Stock Dmdend Yeld 65% 73% 88% 83% 10 4 % 147% at December 31 6.6% 12.5 13 6 12 8 10 3 10 9 15 5 55 Pnce/ Earnings Rato at December 31 * ^ Shares d Common Stock Outstandng 152,569 152.569 152.569 152.569 152.508 108 460 at December 31 l000l 152.569 Book Value per Common Share 515 55 516 68 516 82 516 60 $15 78 at December 31 514.70 $15 78 Market Pnce per Common Share 522.75 523 125 520 50 517.125 523 75 518 875 Sil 25 at December 31 Rato of Market Pnce to Book Value 1 155 % 147% 132 % 103 % T41% ll4% 78 % per 5 hare at December 31 i .
*Before net nonrecurnng charges in 1993 as descnbed on page 16 M
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CO%susrATE3 CPMATs%3 57ArtsTscs Ohio Edison Company 1993 1992 1991 1990 !989 1988 1983 REVENUE FROM ELECTRIC SALES irrxw,xw Resdential 5 868,422 5 820 687 5 839.387 5 768.226 5 749.345 ' 5 728.410 5 540.167 Commeraal 631,088 616.261 627.418 586.947 558.524 533.825 385.277 Industnal-25 Largest 241,679 294.154 267.680 259.012 248.405 240.674 224,606 Other 360,714 312.655 337.080 321.612 305.632 296.491 197.130 Oher 12,575 14.037 15.392 16.491 I7.243 17.269 13.753 Total Retail 2,114,478 2.057.794 2.086.957 1.952.288 1.879.149 1.816.669 1.360.933 Utiktes 209,931 226.960 222.006 242.792 235.906 262.865 87.596 Monopalities 10,424 12.703 15.694 14.842 16,720 45.996 55.525 TotalWholesae 220,355 239.663 237.700 257.634 252.626 308 861 143.121 Total 52,334,833 12.297.457 52.324 657 52.209.922 52.131.775 52.125.530 $ 1.504.054 REVENUE FROM ELECTRIC 5AtEs Resdental 37.2 % 35 7 % 361% 34 8 % 35 1 % 34 3 % 35 9 % Commeraal 27.0 26 8 270 26 5 26 2 25 1 25 6 industnal-- 25 Largest 10.4 12 8 11 5 11 7 Il 7 11.3 15 0 Other 15.4 13 6 14 5 14.6 14 3 14 0 13 I Other 0.6 06 07 0. 7 08 08 09 _. . . Ndh_ _ __._-..... _ _ d 8 _8 _ 88 _ _ 8, 9 Munopaktes 0.4 06 06 07 0.8 22 37
._ _ bONf._._ _
KitowAtT-HOUR SALES 6%9 Resdential 8,237 7.685 7.908 7.527 7.619 7.628 6.735 Commeraal 6,787 6.479 6.608 6.370 6.234 6.060 5.096 Industrol-25 Largest 4,866 5.034 5.0 74 5.255 5,315 5 458 5.036 Other 5,008 4.716 4.524 4.617 4.480 4.414 3.350 Other 144 145 143 144 139 143 1o1 Total Retail 25,042 24.059 24,257 23.913 23.787 23.703 20.378 Utrhties 6,999 7.929 7.203 7.986 8.276 11.438 3.361 Munopakties 163 197 253 224 218 1.016 1.050 Total Wholesale 7,162 8 126 7.456 8.210 8.494 12.454 4 411 Total 32,204 32.185 31.713 32.123 32.281 36.157 24.789 CUSTOMERS 5fRVEC A7 DECEMBER 31: Resdentei 957,867 944.927 935.547 928.026 919.935 911.158 878.949 Commercal 107,401 105.792 104.462 103 297 102.055 100.808 90.072 , Industnal 3,685 3.467 3.361 3.032 2.836 2.624 1.003 1 4 7 I Average AnnualResdentialkWh Usage 8,660 8.182 8.498 8.159 8.336 8.425 7.695 Average Retail Poce per kWh 8.444 8 63I 8 75t 8 18: 7 791 7.54: 6 68: Cost of Fuet per Milkon Bru 51.26 51.26 5127 5127 51 26 51 30 51.52 GENERATPC CAPABUfY At DECEMBER 31.- l Coal 76.4 % 77 7% 77 7 % 77 9 % 77 9 % 77.9 % 89 2 % j Oil 2.9 2. 7 27 27 27 2.7 30 Nuclear 20.7 19 6 19 6 19 4 19 4 19 4 7.8 Total 100.0 % 100 0 % 100.0 % 100.0 % 100 0 % 100 0 % 100 0 % I $0VRCEs Or ELECTRIC GENERATION-Coal 81.9 % 75 0 % 75 4 % 77 3 % 82 1 % 77 0 % 89 8 % Nuclear 18.1 25.0 24 6 22 7 17 9 23 0 10 2 ! i Tota! 100.0 % 100 0 % 100 0 % 100 0 % 100 0 % 100 0 % 100 0 % Peak LoadMgawatts 5,729 5.247 5.513 5.394 5.152 5,027 4,148 Number of Employees at December 31 5,978 6.263 6.481 6.792 6.905 7.180 7.702
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_ . - _ - ~ . - - _- .. . INVEST 32 5%Vic::s MULTIPLE ANNUAL REP 32TS l'or assistance or information, shan Iniblers and first mortgage Ynu may le nreiving mon than one nipy of Ihe annual n port if bondhohlers ran w rite to investor S rsin s. Ohio blison Gimpany, you have mon than one stock an nunt. If you want to maintain sejr 76 South Slain St nrl, Akron. Ohio 1430S-1890, or rail the iblion ing arate slock an ounts but climinate multiple nipies, please write to Inll fnv lelephone number: l-N Hi-736-3lOi The toll-fnv numler investor Servin s and nquest that we slop mailing an annual rep >rt is valid in lhe l'nital diales, Canada, l'uerlo llico and the Virgin to a particulir aconunt. Ik sure to pnnide the exact nvistration of Islands. liusiness hours ane S a.tn. to 4:30 m., Eastern time, Ihe stock account for w hich 3nu wanl the annual n port mailing Stonday lhrough I'riday slopled. Dividends and pnny material u ill conlinue to le sent for DIVIDEND REINVESTMENT AND STocM PURCH ASE PLAN The t'ntupan> s I)is idend lleinvestment and Stock Purchas Plan comslNING STocM Accounts pnnides an opinirlunity for nvistern! shan holders to acquin. If you have mon than one stork aerount and wish tocornbine thern. shan s of Ohio filison Gimmon 8lork. Participants may invest all or please write or call im estor Services and sprify the aeniunt ihat someof theirdividernisor makeoptinnalcash pa)mentsof up to >nu wouhl like to retain as well as lhe nyistration of each of your S to,1N H annually. At the end of 1993, aboul IRIN O shan'hnblers airounts, Your nquest w ill le niiewed lmletermine if [Urllrr aen. participating in the plan. information is nmini and w helher the nvpiested combination uoill!! Ineel applicable hval nyuirrinents. f'or inletal inruine (at purps ws. all dis idends paid b) lhe Colnptny INSTITUTIONAL INVESTORl5EcuRITY ANALYST INQUIRIES in 19tri an runsidernl onlinary dividends. I'rnposni dates for the Instilutinnal imestors an I sivurity analysts shoubl direct pi) ment of nimmon sinek dis idends in 1991 an as follow s: inquiries to: [kt)indend llale lkennl .lJale Paymtnl lble Ilichant ll. )larsh Thmlon E struck 11 Alan h I ilarch 7 31 arch 31 Tn asun r Assistant Tn asurer Junei June 7 June 30 216-38l-5318 216-384-520:! September i September S S plemlmr 30
#DTEAR REmRT REn ACE TERim Reman ihremier 1 ih remier 7 lhrember 30 Tn n d uce ex;rnses a hile runtinuing our ronunilment la pnnide STocM LISTING AND TRADING shan.hnlders uith information nyanling Compmy operations We Ohio filison Conunon Slirk is listed on the New York and Chicami will replace the thne interim reports with a midyear report to l shrk exchanges under the oEC' trailme symlud. Newspar rs shan kniders. The midyear report w ill le mailnl to nvisterni shan-usually uCohinDi'in their listings. hohlers u ith the S plender dividend checks and dividend reinvest-ment plan stalements, and to street hoklers in late September.
! FORM 10 M ANNUAL REPORT Sharehohlers u ho wish to continue Dreiving financial information Form 10-K, the Annual lleport to theSturities and Eithang" on a quarterly lusis may call our inveolor Services lk partment Conunission, will le sent wilhout charge upm wrillen nqnest to to le placnl on nur quarterly financial information mailing list. Onvor3 E laFlame,Srretary, Ohio Blison Oimpany,76Siulk Main Stro t, Akron. ohio li30S-IN!R BOARDlM ANAGEMENT CHANGES nu el r tin from the lloanl,efferlive ANNUAL MEETING Or SHAREHOLDERS Ikremtrr 30.1993. M r. Larnnehael serves as Pn sident and W im ite shareholders to altend Ihe 1991 Annual Meeting of Chief Executiv ofricer of Assriate P & C lloidings, Inc., Sharehoklers on Thnrslay, April 28 at toa.m.,it Ihe Company's Indianapolis. Indiana, the hohling company of The Shelby General office in Aknm,0hio. Ibvistered hoklers of ennunun stock InsuranceCompany Shelb), Ohio. not attendingcan voteon the items of business by fillingout and in January 1991, the mani ek Otnl lloirri M. Oirter, a partner n tnrning the pnny cani that is mailed about 30 days Irfore the of the Cleveland law fino of Carter & Ilayant, to serve as dinrtar of meeting. Shan hniders w hose shares are hebl in the name of a bnr the uimpany, effeelive rebruary 1,1991. ker can allend the mreling if a letier fnim the brnker is presentnl Guy L Pipilone, former manager of Pn=lurtion, was named indicating ownership of Ohio blison Omunon Sta rk on Aknm 1)ivision manager. Mr. Pipitone replacnl Mark T. Clark who March 7.199 4. was nann d manager of Mar keling. lhmglas S. Elliott, former manam r of Customer Accounts, TCANSPER AGENT AND REGISTRAR FOR STocM AND FIRsf MORTGAGE BONDS was nanin! Youndown l)iv s on manager. Mr. Ellioll replaced Earl T. Oirey, w ho was naned manam r of the newly formed Ohio blistm Oimpany Performance initiatives lh partment. Transfer Agent and Ibvistrar 70Smth Main Sinel Akrnn, Ohio 4630S-1890 AUDIO FINANCIAL REPORTS Imes!nts u ith innpairn! vision Can obtain free audhrasselles of Ihe Omipan) S annual and midyear repirts by contacting Imestor Sers ires. l
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OcA:s Or Cs:ccccs Crrscs:s E vist:N MAN AI%s IONAIJ)C. llidSit's, M Gt.ENN 11. M FAIOWS. 61 Wi!Jalth 11. llollAND Gl'Y 1. PilTlUNE iletired, fonnerly Pn siilent of llelinsi, formerly President and President and Chief Akron White Ginsolidated Industries. Chief FxecutiseOfficerof McNeil Iherutive Officer Inc., Cleveland.0hio (home and Corporation, Aknin, Ohio (manu- GAltY M. bTAllt commerrial appliances, oubloor fariunxt pnalurts). Chairman, ANTiloNY J. Al ENANDElt Ikiy and indu3 trial pn nlurts). Audit Ginunittee; Memlrr, Senior Vice President aal Chainnan, Nominating Gimpensation Commit he. General Giunsel CitAllt.FN E.Josts Gunmittee: Memler, Finance Elected 1981 lake Erie Ginunitlee. Elected 19st 11. ITrElt liritG PArt,J. IbWERs. 59 Senior Vice President and Chief FHED M. I.E.W/.
- 11. I'tTElt lirHu,17 Chainnan of the Ikoni and Chief Financial 0fficer Mansfield Senior Vice President and Chief Exerutive Officer of Ginunen ial Financial officer of Ohio Blison. Interhrh Girporation, lloBEltT J. McWitoltTEH FitED K. WillTE Memler, Finance Gunmittee. Youngstow n, Ohio (engineen d Senior Vice President Marion Ehrted 19s9 metal romponents). Memler.
Finance Ginunillee. Elected 1992 ARTiirit II. GAllFIELD TlloMAs A.CLAltK llonEHT11. Qltim N.67 Vice President Springfield lletin,1, fonnerly President and CllAlti.FF W. II AlNGElt, CO Chief ExecutiwOfficerof Pn sident of Sandusky JollN A.CllJ. 11.JwEril11RArJI l'niverNd-llundle Corporation. International. Inc., Sandusky, Vice President Stark New Gi.dle, Ibnnsylvania Ohio (cent rifugal raslings). (phunbing fixtun s). Member. Memler, Nominating Gmunithv. ANTiloN Y N. GoltANT EDWARD T. IlEIL ' Audit Gimmithv. Eh ch,11987 Elerbst 1987 Vice President Warren l(OBEllT M. CAllTEll 13 GDIRGE M. SM AHT,18 IlAHRY M. MILI. Ell llorGLAs S. EIJJUIT lhrt ner, Girter & Ilaywi=L Chainnan of Ihe ikani and Vice President Youngstown Cleveland,0hio (law finn). Pn sident of Phoenix lhrkaging Eh cted 1996 Corporation. North Ginton, Ohio DAVIDl YEAGER (casy-opening lids). Member. Vice Pn sident DH. CA110L A. CAIITH HIGHT,52 Finance Oniunittee. Elerh1110S8 President, Kent State l'niversity, DANIEL. P. ZENO Kent, Ohio. Memler, Nominaling FH ANK C. WNimN,69 Vice President Ginunilhm. Ekrted 1992 Iletired, formerly Pn sident of The Youngstown Welding and Gumony F. laFldME WilJAltl) il llot.l.AND,57 Engineering Gimpany, S,rntity President and Chief Executive Youngstow n,0hio (nonferrous Officer of Ohio lilison and alloys). Memler, Audit and IllcllARD 11. M Ansit Chainnan of the Ikoni and Chief Nominating committees. Treasurer Executive 0fficer of its sulr Ehrhvi 1974 sidiary, Pennsylvania lbwer. II ARVEY I,. WAGNEH Chainnan, Finance Gunmitt,v: J E+E T. WILIJAMs, Sn.,51 Gunptndler Memler, Nominaling umunith+. Vice President, Gimpensation and Ehrted 1991 Employ nent Practices of The NANCY C. IlitlNK GiulycarTin &ilnbber Assistant Seentity linBEltT l IDrGHHEAD,61 Gunpany, Akron.0hio(tiresand lletired, funnerly Chainnan of rubber-related pniturts). TilEnl0RE E 5 TRUCK 11 the lkord, President and Chief Memler, Gimpensation Assistant Treasun r thecutive Officer of Weirton Shri Ginunittee. Elected 1992 Girporation. Weirton, West IloWARD J. TrBEH Virginia (strel pnulucts). Assistant Gunptroller Chairman, Compensation Gimmithw Memler, Audit Gmunithm. Ehrted 1980 37
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