ML17317B486
| ML17317B486 | |
| Person / Time | |
|---|---|
| Site: | Cook  |
| Issue date: | 08/24/1979 |
| From: | DOLAN J E INDIANA MICHIGAN POWER CO. |
| To: | |
| Shared Package | |
| ML17317B487 | List: |
| References | |
| NUDOCS 7908280671 | |
| Download: ML17317B486 (36) | |
Text
UNITEDSTATESOFAMERICANUCLEARREGULATORYCOMMISSIONIntheMatterofINDIANA&MICHIGANELECTRICCOMPANYandINDIANA&MICHIGANPOWERCOMPANY(DonaldC.CookNuclearPlant,Units1and2)DocketNos.50-31550-316APPLICATIONFORAMENDMENTOFFACILITYOPERATINGLICENSESNOS.DPR-58andDPR-74Indiana&MichiganElectricCompanyandIndiana&MichiganPowerCompany("Licensees")arepresentlyco-holdersofFacilityOperatingLicensesNos.DPR-58andDPR-74forUnitNo.1andUnitNo.2,respectively,oftheDonaldC.CookNuclearPlant.Indiana&MichiganPowerCompanyisawholly-ownedsubsidiaryofIndiana&MichiganElectricCompany.ItisproposedtomergeIndiana&MichiganPowerCompanyintoIndiana&MichiganElectricCompany.Indiana&MichiganElectricCompanywillbethesurviv-ingcorporationandwillhavea100%directownershipinterestinsaidUnits.Bythisapplication,LicenseesrespectfullyrequestthattheNuclearRegulatoryCommissionamendsaidFacilityOperatingLicensesNos.DPR-58andDPR-74to(1)reflecttheplannedmergerofIndiana&MichiganPowerCompanyintoIndiana&MichiganElectricCompanyandthetransferofIndiana&MichiganPowerCompany'sownershipinterestinsaidUnitstoIndiana&MichiganElectricCompany ll and(2)deleteIndiana&MichiganPowerCompanyfromsaidFacilityOperatingLicenses,includingtheTechnicalSpecificationsincorporatedbyreferencetherein.LicenseesfurtherrequestthattheNuclearRegulatoryCommissionapprovethisamendmentinsuchmannerthatitwillbecomeeffectiveasoftheeffectivedateofthemerger.LicenseeswilladvisetheCommissionofthemergerassoonaspossiblefollowingtheeffectivedatethereof,whichispresentlyanticipatedtobeonorbeforeDecember31,1979.Followingreceiptofallnecessaryregulatoryapprovalsandasoftheeffectivedateofthemerger,theentireownershipoftheDonaldC.CookNuclearPlantUnitsNos.1and2willbevestedinIndiana&MichiganElectricCompanyandthatcompanywillbethesoleholderofFacilityOperatingLicensesNos.DPR-58andDPR-74..NLicenseessubmitthattherequestedamendmentinvolvesnosignificanthazardsconsiderationwithinthemeaningof10CFR550.91.EmployeesofIndiana&MichiganPowerCompanywillbecomeemployeesofIndiana&MichiganElectricCompanyasoftheeffectivedateofmerger.Therewillbenootherchangesinpersonnel,operatingprocedures,orpracticesasaresultofthemerger.ThemergerwillhavenoadverseeffectuponthefinancialqualificationsofIndiana&MichiganElectricCompanyandwillnotadverselyaffecttheabilityofIndiana&MichiganElectricCompanytosatisfyCommissionrequirementsastofinancialqualifications.
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ThelatestpublishedAnnualReportofIndiana6MichiganElectricCompanyandtheFinancialStatementssubmittedbytheLicenseestotheSecuritiesandExchangeCommissionwithrespecttothemergerareattachedtothisApplication.Datedthis5p~dayof~,1979.INDIANA6MICHIGANELECTRICCOMPANYByohnE.DolanVicePresidentINDIANA6MICHIGANPOWERCOMPANYByohnE.DolanVicePresident a~.t STATEOFNEWYORK))stCOUNTYOFNEWYORK)JohnE.Dolan,beingdulysworn,deposesandsaysthatheistheVicePresidentoflicenseesIndiana6MichiganElectricCompanyandIndiana6MichiganPowerCompany;thathehasreadtheforegoingApplicationforAmendmentofFacilityOperatingLicensesNos.DPR-58andDPR-74andknowsthecontentsthereof;andthatsaidcontentsaretruetothebestofhisknowledgeandbelief.SubscribedandsworntobeforemethisQYA.dayof~~,1979.otaryPublicJPIINB.SHtNNPPKliotaryPubhcStateotNearyorftNo.31-4634146QualifiedinNewYorkcountyCommfsstonExpiresbsarch3019
ATTACHMENTSl.1978AnnualReportofIndiana6MichiganElectricCompany2.'inancialStatements:BalanceSheetsasofMarch31,1979andIncomeandEarnedSurplus'Statements,perbooks,forthe12monthsendedMarch31,1979,ofIndiana6MichiganElectric,ofIndiana&MichiganElectricandIndiana6MichiganPowerconsolidated,ofIndiana6MichiganPower,andofAmericanElectricPowerCompany,Inc.anditssubsidiariesconsolidated.
4'NDIANACMICHIGANELECTRICCOMPANYCORPORATESTATED(ENTOFINCOME(UNAUDITED)OPERATINGREVENUES-Electzic(Note1).ThreeTwelveMonthsEnded"MontMEndedMarch31.March31.1979197819791978(ZnThousands)~$171,029$145,106$6294404$529,671OPERATINGEXPENSEScOperation:FuelforElect"icGeneration.PurchasedandZnterchangePowerOthaz.Maintenance.Depreciation.Taxes,OtherThanIncomeTaxes.StateInconeTaxesFederalZnconeTaxes.TOTALOPERATINGEXPENSES(Net)(Nota1)....~...~...26,75083,65711,4376,5788,2475,2462186,53214&,66518,80269,0261050786,0377,3675.281178149116,91897,725324,25947,52027699331924618,970(339)4.821552,1562,665264,79237,40925,70427992018,3687834,639442,280OPERATINGZNCOMED22.364~28.18877.2D987.915.182~~~~139409.~~.2,027792D.697TOTALOTHERZNCOHEANDDEDUCTZONS..~~~~~..~~~OTHERINCOMEANDDEDUCTIONS)AllowanceforOtherFundsUsedDuri'ngConstruction......EquityinEazningsofSubsidiaries0~~~~~~~~~~~~~~~~~~~~~ZnterastonNotesofGeneratingSubsidiary..........~...MiscellaneousNonoperatingIncomeLessDeductions.......2,46610,7531,37620014.79518971854,2096,89983380,6598,88945,2665900494060,099INCOMEBEFOREINTENTCHARGE&9.~......,....~..43.06142.983157868147.490IhTERESTCHARGEScInterestonLong-ternDebt.InterestonShort-tarnDebtMiscellaneousZnterestCharges.TOTALINTERESTCHARGESAllowanceforBorrowedFundsUsedDuringConstruction(W~6~t)~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~NETIhTERESTCHARGES13,9132,506409169828(4,282)12,54611,2461.190306129742(1,955)10.78751,917792801,070604267(15.545)44.72242.1485,614701489464(7.10D)41.364CORPORATENETZNCOME630.515532.1966'13,14651D6.1"6TheconmonstockoftheCompanyiswhollyownedbyAmericanElect"icPowerCompany,Inc.SaaNotetoCorpor'ataFinancialStatements.AlsoseeNotestoConsolidatedFinancialStatementsincorporatedhereinbyreference.
INDIANA&MZCHZGANELECTRICCOMPANYCORPORATE,BALANCESHEET(UNAUDITED)March31,19791978(ZnThousands)ASSETSANDOTHERDEBITSELECTRICUTILITYPLANT(atoziginalcost):Pzoduction......................~~~~~~Transmission..'........~~~~~~~~~~~~Distzibutiono~~~~~~~~~~~~~~~~o~~~~~GeneralandMiscellaneous(includesNuclearConstructionWorkinProgress..............Fuel)~~o~~~3~$355,681422,477258,75742,486331,822$341g328401,729245,94851,293151,959TOTALELECTRICUTZLZTYPLANT-~~~-~~~----~~~~~1g411g223,1g192g257LessAccumulatedProvisionforDepreciation..............337.733312,346ELECTRICUTILITYPLANT,LESSPROVISION..............1,073,490879,911thero~~~~~~~~~~~~~~~~~~~~~~0~~~~~TOTALOTHERPROPERTYANDINVESTMENTS................OTHERPROPERTYANDINVESTMENTS:InvestmentsinGeneratinaSubsidiary:CommonEquity,(atequity).............................SubordinatedNotes..................438,33869,000178,181685,519433,63169,000141,642644,273CURRENTASSETS:CashandCashItemso~~~~~~~~~o~~~~~~o~~AccountsReceivable:General(lessprovisionforuncollectibleaccountsAssociatedCompanxes........-..-.....-.-...-.--MaterialsandSupplies(ataveragecostorless):ConstructionandOperationMaterialsandSupplies.Fuel............~~~~~~~~o~~~~~~~~~~~AccruedUtilityRevenues..............PrepaymentsandOtherCurrentAssets.~~~~)33,08763,6749,52612g15019,6328,658317759,88141,79817,15710,42710,36315,7452,845TOTALCURRENTASSETS.149,904158,216DEFERREDDEBITSUnamortizedDebtExpense.PropertyTaxes......DeferredCollectionofFuelOtherWorkinPzogress.OtherDeferredDebits......Costs~~~~~~~oo1,7948,8471,5124,02632,2301,6998,0961,6556,19432.466TOTALDEFERREDDEBITS48,40950,110TALo~~~~o~~o~~~~~~o~~~~~~~~~~~~~o~~~~~~~~~~~TOSeeNotetoCorporateFinancialStaement;S.AlsoseeNotesZo'ConsolidatedFinancialStatementsincorporatedhereinby31,957,32231,732,510reference.,
INDIANA&MICHIGANELECTRICCOMPANYCORPORATEBALMCESHEET(UNAUDITED)LIABILITIESANDOTHERCREDITSCAPITALIZATION:CommonStock-NoParValue:Authorized-2,500,000SharesOutstanding-1,400,000Shares...........March31,19791978(ZnThousands)$56,584$56,584PremiumonCapitalStock........OtherPaid-inCapital.........-~RetainedEarnings......~.~~.~.--~--'~~~~~381484,228143,619381450,228116,474TotalCommonShareowner'sEquity.....CumulativePreferredStock.............................684,812227,000Long-termDebt(lessportionduewithinoneyear)(Note2)721,400623,667227,000647,876TotalCapitalization(lesslong-termdebtduewithinoneyear)......................~~1,633,2121,498,543CURRENTLIABILITIES:Long-tezmDebtDueWithinShort-termDebt:NotesPayabletoBanks..CommercialPaper........AccountsPayable:General.................AssociatedCompanies.DividendsDeclaredTaxesAccruedoo~~~~~o~o~o~InterestAccrued..........OtherCurrentLiabilities.OneYear~~~~~~~~o~~~~~~~~~~~~~~5,25441,99050,31520,13652,32315,97423,07515,97710,27529,17130,19934,2543,85421,15413,89820,427TOTAL.CURRENTLIABILITIES........................235,319152,957DEFERREDCREDITSANDOPERATINGRESERVES:DeferzedIncomeTaxes.DeferredZnvestmentTaxCredits..........................OtherDeferredCzeditsandOperatingReserves............74,8456,8257,12168,0938,0884,829TOTALDEFERREDCREDITSANDOPERATINGRESERVES....88,79181,010TALo~~~~-~~~~o~~~o~~~~~~~~~~~~~~~~o~~~TO51,957,32231,732,510SeeNotetoCorporateFinancialStatements.AlsoseeNotestoConsolidatedFinancial--Statemen'tsincorporatedhereinbyrefere'nce.
INDIANAaMICHIGAN~CCOMPANYCORPORATESTATEMENTOFSOURCESOFFUNDSFORPIANTANDPROPERTYADDITIONS(UNAUDITED)ThreeMonthsEndedMarch31,19791978(InTwelveMonthsEndedMarch31,19791978Thousands)FUNDSFROMOPERATZONS..~$38,933$35,74'7$125,159$121,536FUNDSFROMFZNANCINGS:ZssuancesandContrlbutionsaLong-temDebt.CumulativePreferredStock.CapitalContributionsfxeuParentCoapany.............Short-ternDebt(Net).TOTAL.~~~~~~~~~~~79,52914,00093.52999,61038,547409000178,15779,757(6).)34,00092.305206.D01175,00176,66774,000325,668Less-Retires(entscLong-terr)Debt.Short-terrLDebt(Net).NETFUNDSFROMFI)a><CZNGS.~.................90332.63559,99130,885101.85045,42230,39535,861155534175.6061342'73DIVIDENDSONCOMMONSTOCK~DIVIDENDSONCUMULATIVEPREFERREDSTOCK.SALESOFPROPERTY~~~~~~~~~~~~~~\~9~~OTHERCHANGES(NET)~(18.970)(14,9801(4.755)(3854132.246267(541)(9,829)1,859~(6,993)(66.682)(55.3DD)(19,257)(14,901)75,25285,264DECREASE(INCRFASE)INWORKINGCAPITALEXCLUDINGSNORTTERMDEBTANDLONGTERMDEBTDUEWITHINONEYEAR~~~~~~~~~(42,942)6,491$63,962359.26422,285(52.562)$314.222.S211.317PLANTANDPROPERTYADDITIQNS$GrossAdditionstoUtilityPlantGrossOtherAdditions..TOTALGROSSADDIZONS$619934$58,2967,2103~3469144:61.730298,13934.801332)940192,66827'38220,206AllowanceforOtherFundsUsedDuringConstruction.........$.63.962$59.264(5.182)(2.466)(18,718)(8889)$314.2227211.317SeeNotetoCorporateFinancialStatenents.AlsoseeNotestoConsolidatedFinancialScatementsincorporatedhereinbyreference.
I?(DIAl(A&MICHIGAN~CCOMPAVlSTATEMENTOFRETAINEDEARNINGS(UNAUDITED~}BALANCEATBEGZNNZNGOPPERIOD>>ThreeTwelveMonthsEndedMonthsEndedMarch31,March31,1979197819791978(ZnThousands)~$136829$1040566$116~474$83~882CORPORATENETINCOME.TOTAL30.51532.196113.146106,126167,344136,762229,620190008DEDUCTIONS:CashDividendsDeclaredaCocoonStockCuaulativePreEerredStock.18,9704.75514.9803,05466,6821925755,30014,901TOTALDIVIDENDS~~~~~~~~~~~~~~~~~~~~~~~~~~CapitalStockExpense.'00ALDEDUCTIONSBALANCEATENDOFPERIOD.~~~~~~~~~~~~~~23,72518,8341.45423,72520.280$143,619$116.47485,93970020162333306,00173.534$143.619$116.474SeeNotetoCorporateFinancialStatements.AlsoseeNotestoConsolidatedFinancialStatenentsincorporatedhereinbyreFerence.
INDIANA&MZCHZGANEIZCTRZCCOMPANYNOTESTOCORPORATEFZNANCZALSTATEMENTSMarch31,1979(UNAUDITED)A.PROPOSEDESTABLISHMENTOFCOAL-MININGSUBSIDIARYTheCompanyhasfiledwiththeSecuritiesandExchangeCommissionarequesttotransfertoanewsubsidiarycertaincoal-miningassetshavinganetbookcostofapproximately$119,000,000,lessrelatedliabilitiesamountingtoapproximately$8,000,000inexchangeforsuchsubsidiary'scommonstockandindebtednesstotheCompany.
ZNDZANA&MZCEZGANELECTRICCO4MPAHYANDGENERATZNGSUBSIDZARYCONSOLIDATEDSTATE."KNTOFINCOME(UNAUDZTED)OPERATZNGRVENUES-Electric(Note1)ThreeMonthsEndedMarch31,19791978(In~..$171,029$145.106TwelveMonchsEndedMarch31,19791978Thousands)5629,494552..671OPERATINGEXPENSES:Opeaion:FuelforElectr'cGeneration..PurchasedandXnterchangePowerOther.Mantenance.4Depreciation.Taxes,Othe"ThanIncomeTaxes....StateIncomeTaxes.............~..FedealIncomeTaxes.TOTALOP~M%TINGEXPENSES~(Net)(Note1)...........42,72912,66915,8188,75318,2327,52921817,437123,38525,30035590512,5417,46612,8796,9101782,374103,553142970493,51662,83834,01165,19827,051(339)38,501463,48082,931140,63545,99729,75149,83123,72878315,871389,527OPERAXHGINCOME.47,64441,553165,924140,144OTHERINCOMEANDDEDUCTIONS:AllowanceforOtherFundsUsedDuringConstruction.........M'scellaneousNonoperatingZncomeLessDeducfons..........TOTAL~RZNCOMEANDDEDUCTIONS~~~~~~~~~~~~~~5,326795,4057,5312517,78225,77086726,63728,0081,06629.074INC5KBEFOREXHTERESTCBARGES......~................~..53.04949.335192,561169.218INTERESTCHARGES:InterestonLong-termDebt.InterestonShort-termDebt.MiscellaneousInterestCharges.TOTALINTERESTCHARGES23,9282,50649526,92921,0991,19034422,63392,2257,2801,437100394277,4125,61488583,911AllowanceforBorrowedFundsUsed(Credit).NETIHTKKSTCHARGES.DuringConstruction(4.395>(5,494(22,53417,139(215271(20819)79,41563,092CONSOLZDATD)KTZHCOFX.~~$30~515$32~196$113~146$106~126ThecommonsockoftheCompanyfswhollyownedbyAmericanElect"icPowerCompany,Inc.SeeNotestoConsolidatedFinancialStatements.
~~'INDZANA6MICHIGANELECTRICCOMPANYANDGENERATINGSUBSIDIARYCONSOLIDATEDBALANCESHEET(UNAUDITED)March31,19791978(InThousands)"ASSETSANDOTHERDEBITSELECTRICUTILITYPLANT(atoriginalcost):Production.~o~~~~~~0~~~~~~~~1~Transmission~~~~~~~~~~~~~Distribution...GeneralandMiscellaneous(includesNuclearFuel).ConstructionWorkinProgress........TOTALELECTRXCUTILITYPLANT......~.'essAccumulatedProvisionforDepreciation.......ELECTRICUTZLITYPLANT,LESSPROVISION..............OTHERPROPERTYANDZNVESTMENTS...~~...~~~..-~$1,357,937422-,477258,75743,166346,7932,429,130427,5702,001,560178,181895,208401,729245,94851,939570,8012,165,625368,2331,797,392141,642CURRENTASSETS:CashandCashItems...........AccountsReceivable:General(lessprovisionforuncollectibleaccounts).AssociatedCompanies.....................MaterialsandSupplies(ataveragecostorless):ConstructionandOperationMaterialsandSupplies...Fuel.AccruedUtilityRevenues................PrepaymentsandOtherCurrentAssets.35,35563,9117,29314,46219.,6788,6583.772107,35542,10812,46512,03110,414'5,7453,318TOTALCURRENTASSETS.........~~~~~~~~~~153,129203,436DEMRREDDEBITS:UnamortizedDebtExpense..PropertyTaxes.....'.....DeferredCollectionofFuelOtherWorkinProgress.....OtherDeferredDebitsTOTALDEFERREDDEBITS.TOTALo~~~osts~~~~~~~~~~~~~~~~~~~~~~~~C~~3,1718,8471,5129,07330,12052,723$2.395,5932,1788,0961,6559,13638,84059,90552,202,375SeeNotestoConsolidatedFinancialStatements.
<0~~~~INDIANA&MICHIGANELECTRICCOMPANYANDGENERATINGSUBSIDIARYCONSOLIDATEDBALANCESHEET(UNAUDITED)LIABILITIESANDOTHERCREDITSCAPITALIZATION:CommonStock-NoParValue:Authorized-2,500,000SharesOutstanding-1,400,000Shares............March31,19791978(ZnThousands)$56,584$56,584PremiumonCapitalStockOtherPaid-inCapital......RetainedEarnings........381484,228143,619381450,228116,474TotalCommonShareowner'sE~ty....................CumulativePreferedStock.........................~.....684,812227,000Long"termDebt(lessportionduewithinoneyear)(Note2)1,095,969623,667227,0001,090,914TotalCapitalization(lesslong-teandebtduewithinoneyear).......................2,007,7811,941,581CURRENTLIABILITIES:LongtermDebtDueWithinOneShort-termDebt:NotesPayabletoBanks.CommercialPaperAccountsPayable:General.............AssociatedCompanies....Dividends.Declared.TaxesAccruedO~~~0~~~~~~~~~~~InterestAccrued.............OtherCurrentLiabilities....3Year7,50441,99050,31521,63321'1915,97426,90027,14318,548.31,42132,2162,8723,85422,97924,40923I333TOTALCURRENTLIABILITIES..............231,326141,084DEFERREDCREDITSANDOPERATINGRESERVES:DeferredIncomeTaxes.~~~~~~~~~~~~~0~~~~~~~~~DeferredInvestmentTaxCredits................OtherDeferredCreditsandOperatingReserves............TOTALDEFERREDCREDITSANDOPERATINGRESERVES.......128,30310,7487,435146,486105,2998,9545,457119,710$2385593$2,202,375SeeNotestoConsolidatedFinancialStatements.
i469~9JRINDIANASMICHIGAN~CTRZCCOMPANYANDGENERATINGSUBSZDIARYCONSOLIDATE)STATEMENTOFRETAINEDEARNINGS{UNAUDITED)ThreeTwelveMonthsEndedMonthsEndedMarch31,March31.1979197819791978tInThousands)CEATBEGINNZNGOFPERIOD...~.CONSOLIDATEDNETINCOME~~~~~~~~~~~~~~~~~~~~~~TOTAL~~~~~~~~~~~8136,8298104656639,51532.196W7~44136762S116$474S839882113.146106,12622962D19D.DDDDEDUCTIONS:Dividends:CommonStock.CumulativePreferredStock.18,970~2'.1499803>85466,68255,30014,901TOTALDZVIDZZU)S23,72518983485,94070,201CapitalStockExpense.4TOTALDEDUCTZONS~~i4~DRR3.3386.00173.534BAIANCEATENDOFPERlOD.$143.619$116.474$143.6196'16.474SeeNotestoConsolidatedFinancialStatements.4 INDIANA&MICHIGANELECTRICCOMPANYANDGENERATINGSUBSIDIARYNOTESTOCONSOLIDATEDFINANCIALSTAT~SMARCH31,1979(Unaudited)l.AMOUNTSSUBJECTTOREFUNDTheCompanyhascollectedfromwholesalerateincreasesplacedintoeffectsubjecttorefundaggregateamountsapproximatelyasfollows:19791978(ZnThousands)ThreeMonthsEndedMarch31,.......$7,144TwelveMonthsEndedMarch31,...;..21,111CumulativetoMarch31,............48,626$5,79418,190CommencinginJune1975,operatingexpensesincludetheeffectofchangesinrateschargedforinterchangepowertransactionsbetweentheCompanyandothercompaniesintheAmericanElectric-PowerSystem.TheeffectofsuchchangeswastoincreasethechargestotheCompanysubjecttopossiblerefundbyitsinterchangepowersuppliers,bythefollowincestimatedamounts:19791978(InThousands)ThreeMonthsEndedMarch31,.......$TwelveMonthsEndedMarch31,......CumulativetoMarch31,............20,172105,824~7,31728,241OnFebruary23,1978,anadministrativelawjudgeoftheFERCis-suedaninitialdecisionorderingoneoftEieaffiliatedinterchangepowersupplierstomakecertainrefunds,afterrecomputinginterchangechargesfortheperiodsubsequenttoJune1975onthebasisoftheinterconnectionagree-mentineffectpriortothatdate,butexcludingfromsuchcalculationsasmembercapacity,inthecaseoftheCompany,thecapacityownedbytheGen-cratingSubsidiaryand,inthecaseofanothermemberoftheSystem,thecapacityownedbyitsgeneratingsubsidiary.Ifthechangeisfinally K~o~~~4~orderedbyFERC,theCompanycouldbecomeentitledtorefundsinasub-stantialamount.Certainintezven'orshaveurgedthat.changesbemadeintheinterconnectionagreementwhichwouldhavetheoppositeeffect,in-creasingtheamountspayablebytheCompany.TheAEPSystemsubsidiaries,includingtheCompany,havefiledabriefwhichurgesthattheactionoftheadministrativelawjudgeberevisedsoastosustainthe1975mod-ification,butcannotpredictthefinaloutcomeoftheproceedingortheeffectthereofontheCompany.Sa2.LONG-TERMDEBT:Long-termdebtbymajorcategorywasoutstandingasfollows(lessportionduewithinoneyear):March31,19791978(ZnThousands)FirstMortgageBonds..............$956,205SinkingFundDebentures...........23,953NotesPayabletoBanksdue1980...,11,000InstallmentPurchaseContracts....99,931OtherLong>>termDebt..............4,880581976225,117375,00099,8419,194Total(lessportionduewithinoneyear)..61,095.96961,090.9143.CONTZNGENCZESTheCompanycontinuestobeinvolvedinthelegalproceedingsdis-'closedinthe1978annualzepozt,.4.RECLASSIFICATZONSCertainprior-periodamountshavebeenreclassifiedtoconformwithclassificationsusedcurrently.
5b5.FINANCINGANDRELATEDACTIVITIESInJanuary,1979,theCompanyissuedandsold$80,000,000princi-palamountofits10-1/4%firstmortgagebondsdue1987.InFebruary,1979,theCompanycancelledandredeemed$750,000pzincipalamountofits10%firstmortgagebondsdue1985,requiredbythesinkingfundprovisionofsuchBonds.AswaspreviouslyreportedintheCompany's1978AnnualReport,,onMarch1,1979,theGenerat,ingSubsidiaryissuedandsold,tocertainin-surancecompanies,$45,000,000aggregateprincipalamountofitsFirst.MortgageBonds,9-1/2%Seriesdue2003,atapriceequaltotheprincipalamountthereof.Onthesameday,theGeneratingSubsidiary.appliedproceedsfzomthesaleofthebondstowardsprepaymentof$71,000,000aggregateprin-cipalamountofNotesPayabletoBanks,due1980.ZnJanuary,1979,theCompanyreceived$14,000,000ofcashcapitalcontributionsfromitsparent,AmericanElectricPowerCompany,Znc..6.EVENTSUBSEQUENTTOMARCH31,1979ZnMay1979,theCityofSullivan,Indianaissuedandsold$20,000,000\principalamountofpollutioncontzolrevenuebonds($7,000,000at,73/8%due2004and$13,000,000at71/2%due2009),securedby'pledgeofpaymentstobemadetotheCityunderanAgreementofSalebetweentheCityandtheCompany.Theproceedsfromthesaleofthesebondspereusedtoprovideaportionofthefundszequiredfortheacquisition,construction,installationandequippingofcertainairpollutioncontrolfacilitiesattheCompany'sBreedPlant.
INDIANA&MICHIGANPOWERCOMPANYSTATHKNTOFINCOME(UNAUDITED)OPERATZNGREVENUES-ElectricsSalestoParentCompany-Indiana&MichiganElectzicCompany.OPERATXNGEXPENSES:ThreeMonthsEndedMazch3119791978(Zn$70,988533,064TwelveMonhsEndedMarch31,1979la78Thousands)823~,4618124.107Ooeration:FuelforElectricGeneration.OtheMaintenance.~~~~~~~~~~~~Depreciation.~~~~~~~~~~~~~~~~~~~~~~~Taxes,OtherThanFederalIncomeTaxesFederalIncomeTaxes.TotalOperatingExpenses.158979483812,1759,9852,28310,90545,708684982,4061,4295,5121,6292,22519.69944897919,0366,01833,9528,08133,680145,74620,1608,6454,04721,9115,36011,23271355OPERATINGINCOR.~~~~~~~~~~~~~~~~~~~25,28013436566,71552,752OTHERXNCC)5%ANDDEDUCTIONS:AllowanceforOtherFundsUsedDuringConstruction.....~.~.InterestZncomeLessDeductions.TocalOtherIncomeandDeductions.....1441445,065515,1167,Q52327,08419,11912519."CCINCOMEBEFOREZNTRMTCHARGESC25,42418,48195,79971'96INTERESTCHARGES(XnterestonLong-termDebt(OtherthantoParentCompany)..InterestonLong-ternDebttoParentCompany...............MiscellaneousInterestCharges.........-...."."..-~".~~~TotalInterestCharges...............................AllowanceforBozzowedFundsUsedDuringConstzuction(Credit).~~~~~~NetInterestCharges.10,0152,0278612,128(113)12,0159,8531,3763811,267(3,539)7.72840,3086,8993647,574(5.982(41,59235,2645,00418340,451(13719(26,732)SETINCOME~~~~~~~~~~~~~~~~~ThecommonstockoftheCompanyiswhollyownedbyZndiana&MichiganElectricCompany.$13,.409$10,753554~20545.264SeeNotestoFinancialStatements.
INDIANA&MICHIGANPOWERCOMPANYBALANCESHEET(UNAUD1TED)March31,19791978(ZnThousands)ASSETSANDOTHERDEB1TSELECTRICUTILITYPLANT(atoriginalcost):Production-Nuclear..~~~~$1,002,256$553,880GeneralandMiscellaneous....................ConstructionWorkinProgressTotalElectricUtilityPlantLessAccumulatedProvisionforDepreciation...............ElectricUtilityPlant,LessProvision.68014,9711,017,90789,837928,070646418,842973,36855,887917,481CURRENTASSETS:CashandCashItems~~~~.~~~o~~~~~~~~~~~~~~~~~~~~~~~~~s~~~~~2,26840,001TemporaryCashInvestments(atcost,whichapproximatesmarket).~~~~~~~~~~~~~~~~~~t~~0~~~~~~~~~AccountsReceivable:AssociatedCompanies.Miscellaneous.............ConstructionandOperationMaterialsandSupplies(ataveragecostorless)...........................~...PrepaymentsandOtherCurrentAssets.....TotalCurrentAssets.31,1502372,35859536,6087,47332,0803101,65547381,992DEFERREDDEBITS:UnamortizedDebtExpense..................................1,377479OtherWorkinProgress.~~~~~~~~5,0472,942OtherDeferredDebits.........................TotalDeferredDebits.4,0936,07210,5179,493TOTALe~~~~~~~~~~~~~~~~0~~~~~$975,195$1,008,966SeeNotestoFinancialStatements.
INDIANA6MICHIGANPOWERCOMPANYBALANCESHEET(UNAUDITED)LIABILITIESANDOTHERCREDITSCAPITALIZATION:CommonStock-ParValue$1:Authorized-2,000,000SharesOutstanding-1,500,000Shares.March31,19791978(ZnThousands)$iJ500$lg500PremiumonCapitalStockOtherPaid-inCapital....RetainedEarnings............~~TotalCommonShareowner's'Equity..Long-termDebt(lessportionduewithinoneyear)(Note2)106,541266,37563,922438,338443,569106,541266,37559,215433,631512,037TotalCapitalization(lesslong-termoneyear)..~F0'ebtduewithin881,907945,668CURRENTLIABILITIES:Long-tennDebtDueWithinOneYear.....AccountsPayable:General.~~~~~~~~~~~~~~~~~~~AssociatedCompanies.............DividendsDeclaredonCommonStockTaxesAccrued....InterestAccrued.OtherCurrentLiabilities..TotalCurrentLiabilities.....2,2501,4973503,82513,1928,27329,3872,2502,0177363,0001,82511,8872,90624,621TOTAL.~~~~~~~~~~$DEFERREDCREDITS:DeferredIncomeTaxes.DeferredInvestmentTaxCredits.OtherDeferredCredits..................TotalDeferredCredits..............................59,6643,92331463,901975,19537,18386662838,677$1,008,966SeeNotestoFinancialStatements.
INDIANA&MICHIGANPOWERCOMPANYSTATEMENTOFREAINEDEARNINGS(UNAUDITED)19791978(ZnThreeMonthsEndedMarch31,TwelveMonthsEndedMarch31,19791978Thousands)BalanceatBeginningofPeriod..NetZncoe.4Total~~~~~~~~~~~~~~~~~~~~~~~~DeductCashDividendsDeclaredonCommonStock...............BalanceatEndofPeriod.$645013$57,46213'0910'5377,42268,21513,5009,000$63,922$59,21549,500364000$63,922$594215$59,215$49,95154.20745.264113,42295,215SeeNotestoFlnanci'alStatements.
INDIANA&MICHIGANPOWERCOMPANYNOTESTOFINANCIALSTATEMENTSMARCH31,1979(UNAUDITED)1.FINANCINGACTIVITYAswaspreviouslyrep'ortedintheCompany's1978AnnualReport,onMarch1,1979,theCompanyissuedandsold,tocertaininsurancecom-panies,$45,000,000aggregateprincipalamountofitsFirstMortgageBonds,9-1/2%Seriesdue2003,atapriceequaltotheprincipalamountthereof.Onthesameday,theCompanyappliedproceedsfromthesaleofthebondstowardsprepaymentof$71,000,000aggregateprincipalamountofNotesPay-abletoBanks,due1980.2.LONG-TERMDEBT:Long-termdebtbymajorcategorywasoutstandingasfollows(lessportionduewithinoneyear):March31,19791978(InThousands)FirstMortgageBonds...............NotesPayabletoBanks,Due1980...SubordinatedNotesPayabletoParentCompany,Due1981.........$363,56911,00069,000$68,037375,00069,000Total(lessportionduewithinoneyear).........$443,569$512,037
~I'4()A'$)ERZCAN~ICPOWERCOMPANYSZNC.ANDSUBSZDZARYCOMPANZESCONSOLZDATEDSTATEMEhTOFINCOME(UNAUDITED)OPERATHGREVENUES-Approx'ately98%Electric(Note1).ThreeMonthsEndedTwelveMonr".sEndedMarch31,March31,19791978*19791978+(ZnThousands,ExceptPerShareAmounts)$726340$571.357$2.544.073$2.074.811OPERAZhGE:(?NSES:Operat'on:FuelforElect"icGeneration.VariousOther..............,,Naintenance..............~Depreciation9Depletion,andAmo~ration...axes,OtherthanIncomeTaxes.StateXncccneTaxes.FederalZncomeTaxes.TOTALOP~TINGEXPENSES.4OPERATZNGZNCONE317,86169,63642941455,74541508075135,803563.2.0163.050234,76474,51638,49848,59336,056432(1,261)431.598139.7591,114,187261,693168,772210,848150,23156389,4971,995,791548,282858,000243,468143,107188,004131,S771,95820,4011.586.815487,996OTP~INCOMEANDDEDQCTZONStAllowanceforOtherFundsUsedDuringConst"uction....,.,N'scellaneousNonoperatingIncomeLessDeduc"'ons.........TOTALOTHERINCOMEANDDEDUCTIONS...~..~.~~.....'..ZNCOSS(EBEFOREXSSESTCHARGES'1!PiZRESTCHARGES:InterestonLong-ternDebt!ncrestonSho~-termDebtMiscellaneousInterestCharges."OTALINTER'HARGiS.AllowanceforBorrowedFundsUsedDuringConstruction(CSd4n(9re($4n~~~~~~~~~~~~~~~~NETINTERESTCHARGESS9,124837996117301178,81911,3031.2$391,405'12.394)79.01113,9351,20615141154.90D72,8053,8802.39079,075(11.282)6779339,5903,55843,148591,430308,65533,5864,516346,757(51,460)295,29755,7946,11561,909549.905278,74613,7768,813301,335(44,401)256,934CONSOLIDATEDIhCOMEBEFOREP~ERREDSTOCKDXVZDENDREQUIRHKNTSOFSUBSZDZARZES.PREFERS)STOCKDIVIDENDREQUIREMENTSOFSUBSZDZARZES..CONSOLZDAT-DNETINCOME.~~~~~~~~~~~~~~~~~~~~~~~EARNINGSPERAVERAGESHAREOFCONS(ONSTOCKS~~~~.....~.CASHDZVIDENDSPAZDPERSHAREOFCO)IONSTOCK..~~~...'AVERAGEHUNBEROFSHARESOUTSTA)IDZNG.~~Restated.(SeeNote1)SeeNotestoConsolidatedFinancialStatements.~~~4~~~~~~~94,00013.$86S80,414,5.73S..$4811D.87687,10712.118S74,9895.73.53103.093296,13354,37732~1.756S2.2752.35106,408292,97146,994$245.977S2.4552.09100,584 AMERICANELECTRICPOWERCOMPANY6ZNC.ANDSUBSZDIARYCOMPANIESCONSOLXDATEDBAIANCESHEET(UNAUDITED)March31,19791978(ZnThousands)ASSETSANDOTHERDEBITSUTILITYPLANT(atoriginalcost):~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Transmission.~~~~~~Distribution.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~GeneralandMiscellaneous(includesNuclearFuelandMiningPlant)ConstructionWorkinProgress.'.....~......................TOTALUTZLZTYPLANT~~~~~~~~~~~~~~~~~~LessAccumulatedProvisionsforDepreciation,DepletionzandAmo~ization...~~~~~~~~~~~~~~~~~~~9~~~UTZ~iPLANT9LESSPROVISIONS~~~9~~~~~~~~~~$4912690101,511,9481,312,971615,6571,097,7498,664,3351,858,6036,805,732$3,428,5571,440,280181869892623,0881,246,02979924,8461,673,3996,251,447EXESSOFCOSTOFZNVESTMEhTSinSubsidiariesoverBookatDatesofAcquisition.........~..........~...OTHERPROPERTYANDZh&EST66NTSValue48,260270,85448,31'48,918CURREN1'SSETS:CashandCashZtemsAccountsReceivable(lessaccumulatedprovisionforuncollectibleaccounts).................MaterialsandSupplies(ataveragecostorLess)Fue19~~~~~~ConstructionandOperationMaterialsandSupplies.~~~~~~~~~AccruedUtilityRevenues.PrepaymentsandOtherCurrentAssetsTOTALCURRENTASSETS~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~117,432240,476260,84396,22651,25929,125745,361281,910195,437112,47393,78762,36026,359772.326DEFERREDDEBITS)UnamortitedDebtExpense..........PropertyTaxes.DeferredCollectionofFuelCosts.DeferedStrikeCosts(Note2).OtherWorkinProgress.OcherDeferredDebits.TOTALDEFERREDDEBITS.~~~~~~~~~~~~~~9,06255,78220,56344,40354,98960689234,863245,288$8,155,070$7,566,290SeeNotestoConsolidatedFinancialStatements.
A5AMERZCANELECTRICPOWERCOMPANY5ZNC.ANDSUBSIDIARYCOMPANIESCONSOLIDATEDBAZANCESF%ET(UNAUDITED)LZABZLZTIESANDCZHERCREDITSCAPZTALIBATZON1CanonStock-ParValue$6.501March31,19791978(ZnThousands)1979150,000,0001115232,00119781255000,000103'265804~~~~~~~~SharesAuthorized...........SharesOutstandlng6~~~~PanionsonCapitalStocks.~~~~~~~~~~~~~~~~~OtherPaid-inCapital.RetainedEarnings.~~~~~~~~~~~~~~~~~~~~~~TotalCocmenShareowners'quity.CmulativePreferzedStocksof'ubsidiaries(Note4)........,Long-ternDebt(lessportionduewithinoneyeaz)(Note3)...TOTALCAPITALIZATION(lesslong-teradebtduewithinoneyear)~~~~~0~~~~~~~~S.723,0081,0825640820600,23125406,699650,2583,591,9196.648,876S671,624970,375641585,55925228,199652,4843,707,5556,588,238CURRENTLZABILZTZES1Long-ternDebtDueWithinOneYear...~....NotesPayabletoBanks.CozznercialPaper.AccountsPayable..DividendsDeclaredonCunulativePreferredStocks...TaxesAccrued.~~~~~~~~InterestAccrued.RevenueRefundsAc~ed.Othe"CuentLiabilities....TOTALCUMKNTLIABZLZTZES~DEFERS)CREDITSANDOPERATINGRESERVES1DeeredIncomeTaxes.........................DeferredInvestmentTaxCredits.OtherDeferredCreditsandOperatingReserves..........TOALDEFERREDCREDITSANDOPERATINGRESERVES6TOTAL~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~22354952245841186,745154,09965612128,624100,4329,54085,6301~120.018291,84953,05541,272386,17665,155.02073,05147,76671,865164,5735,737110,36693,51829521282,5486785636230,68324,58144,152299,416~9.566.290SeeNotestoConsolidatedFmanclalStatement.
4~4AlKRZCANELECT)KCPOWERCOMPANY,Z)K.ANDSUBSZDIARYCOMPANZESCONSOLIDATEDSTATEMENTQFRETANEDEARNIhGStUNAUDZTED)ThreeMonthsEndedTwleveMonthsEndedMarch.31.March31,1979197819791978(ZnThousands)BALA94:CATBEGZhNZNGOFPKQOD:AsPreviouslyReported.Restatement(Note1)AsReste'ted~~~~~~~~~$580,2175805217$575,239(8,625)5665614$5945271(t8,712)585,559$560,301(7,600)552,701ADDITIONS'CnSOlidatedNetInCOmee~96.69e.e.ee.ee.e.eeeeeeeeeeTransferfromAmor&rationReserve-FederaltoAppropriatedRecainedEarnings~~~~~~~~~~~~~~~~~~~~80,4147459891,401241,756245,9771,401660,631643,004827.3'5800.079DEDUCTIONS)CashDividendsDeclaredonCommonStock...........-..OthereTOTALDEDUCTIONS.~~~~~~~60,405(5)60.40054,6182,827s7.aas227,120(36)227.084209,8514.669214,520BALANCEATENDOFPERIOD.$600,231.$585,5594600.231$585,559SeeNotestoConsolidatedFinancialStatements.
j5AMERICANELECTRICPOWERCOMPANY~1'NC.ANDSUBSIDIARYCOMPANIESNOTESTOCONSOLIDATEDFINANCIALSTATEMENTSMARCH31,1979(.UNAUDITED)l.AhDUNTSSUBJECT'TOREFUNDANDRESTATEMENTAsstatedintheCompany's1978AnnualReport,consolidated1978interimresultshavebeenrestatedtoreflecttherefundmattersdiscussedtherein.Accordingly,thefinancialstatementsincludedhereinreflecttherestatedamountsfortheaffectedperiods.Amountscollectedbysubsidiariesfromrateincreasesplacedintoeffectsubjecttorefundareestimatedasfollows:19791978(InThousands)ThreeMonthsEndedMarch31TwelveMonthsEndedMarch31.................CumulativetoMarch31,1979.................7,40031il0058,6005,80018,2002.DEFERREDSTRIKECOSTSThecoal-miningsubsidiariesdeferred$48,800,000ofongoingcostsapplicabletominingandtransportationactivitiesincurredduri.ngthestikebytheUnitedMineWorkersofAmericawhichbeganinearlyDecember1977andendedinthelatterpartofMarch1978.AtMarch31,1979,mostofthesecostshadbeenamortizedandbilledtocustomersofoneoperatingsubsidiary,andmostoftheremainingbalanceof$11,658,000isexpectedtoberecoveredbyanotheroperatingsubsidiarythroughcost-of-servicedeterminationsoradjustmentofthefuelcomponentincludedinbaserates,asitamortizesitssubjectdeferredcosts.
3.LONG-TERMDEBTLong-termdebtbymayorcategorywasoutstandingasfollows.(lessportionduewithinoneyear):March31,19791978(InThousands)FirstMortgageBonds.........................$3~010~659$2J813g318SinkingFundDebentures.............NotesPayabletoBanks.......................InstallmentPurchaseContracts...............OtherLong-termDebt.........................114,$5340,500418,8807.727116,920392,000355,49029,827Total(lessportionduewithinoneyear)...$3,591,919.$3,707,5554~FINANCIALTRANSACTIONSLong-termfinancingtransactionsduringtheouarterendedMarch31,1979includedthefollowingrecordedbysubsidiarycompanies:DescritionPrincipalAmount(InThousands)Issuances:10-1/4%FirstMortgageBondsdue1987..........9-1/2%FirstMortgageBondsdue2008(issuedtorefinancecertainLong-termNotesPayabletoBanksdue1980-seebelow)...............Retirements:PartialprepaymentofLong-termNotesPayabletoBanksdue1980............................$80,00045,00071,000CumulativePreferredStocksofSubsidiariesdeclinedby$732,000duringthecpxarterendedMarch31,1979duetoredemptionofsharesatagainof$178,000,suchgainbeingcreditedtoOtherPaid-inCapital.
Sb5.CONTINGENCIESAmericanElectricPowerSystemcompaniescontinuetobeinvolvedincertainlegalproceedingsdisclosedinthe1978AnnualReport.6.RECLASSXFICATIONSCertainprior-periodamountshavebeenreclassifiedtoconformwithclassificationsusedcurrently.7.PROPOSEDACUISXTIONXnJuly1978,theSecuritiesandExchangeCommissionissuedanopinioninwhichitindicatedthatitwasdisposedtoissueanordergrantingtheCompany'sapplicationtoacquireColumbusandSouthernOhioElectricCompanythroughanex-VchangeofstockiftheCompanycompleted,tothesatisfactionofSEC,therecordintheproceedingwithrespecttothefairnessoftheproposedexchangeoffertotheCompany'scommonshareownersandthecreationofanentitywhichwouldacguireandoperategeneratingfacilitiesinOhioforthebenefitofsuchOhiomunicipalelectricdistributionsystemsasdesiredtoparticipate,theenergyfromwhichwouldbetransmittedoverAmericanElectricPowerSystem.transmissionfacilitiestovariousdeliverypointsinOhio.TheCompanycangivenoassurancethattheSECwillauthorizetheproposedaccgxisitionorthat,ifauthorized,itwillbecompleted.P8.EVENTSSUBSEUENTTOMARCH31,1979XnMay1979,asubsidiaryissuedandsold$70,000,000principalamountof11%SeriesFirstMortgageBondsdue1987and1,600,000sharesof$2.65CumulativePreferedStock;withoutParValue,at$25pershare;andalocalgovernment,agencyissued$20,000,000principalamountofpollutioncontrolrevenuebondsinconnectionwithaninstallmentpurchasecontractwithanothersubsidiary,