35-CERT 1 wphsec.txt D:\1ST\COAL\SEC\WPHSEC.WPD\1 WINDSOR COAL COMPANY QUARTERLY REPORT PER REQUIREMENTS OF HOLDING COMPANY ACT RELEASE NO. 26573 FOR THE QUARTER ENDED MARCH 31, 2001 CONTENTS Page Statements of Income and Retained Earnings 1 Balance Sheets 2-3 Information Concerning Mine Operations and Capital Improvements 4 Calculation of Cost of Capital and Statement of Cost of Commercial Coal Sold and Shipped 5 Statement of Cost of Operation 6 Analysis of Mining Plant in Service 7 WINDSOR COAL COMPANY STATEMENT OF INCOME FOR THE QUARTER ENDED MARCH 31, 2001 (UNAUDITED) (in thousands) OPERATING REVENUES $ 5,135 COST OF OPERATION 8,045 ------- OPERATING LOSS (2,910) NONOPERATING INCOME 751 ------- LOSS BEFORE FEDERAL INCOME TAXES (2,159) FEDERAL INCOME TAX CREDIT ON OPERATIONS (2,162) ------- NET INCOME $ 3 ======= STATEMENT OF RETAINED EARNINGS FOR THE QUARTER ENDED MARCH 31, 2001 (UNAUDITED) (in thousands) BALANCE AT BEGINNING OF PERIOD $51 NET INCOME 3 CASH DIVIDENDS DECLARED 54 --- BALANCE AT END OF PERIOD $ - === The common stock of the Company is wholly owned by Ohio Power Company. WINDSOR COAL COMPANY BALANCE SHEET (UNAUDITED) March 31, 2001 ------------ (in thousands) ASSETS MINING PLANT: Mining Plant in Service $ 46,560 Accumulated Depreciation and Amortization 45,931 -------- NET MINING PLANT 629 -------- CURRENT ASSETS: Cash and Cash Equivalents 2,369 Accounts Receivable: General 1,556 Affiliated Companies 2,041 Advances to Affiliates 37,332 Materials and Supplies 3,256 Accrued Tax Benefit 10,145 Other 438 -------- TOTAL CURRENT ASSETS 57,137 -------- DEFERRED INCOME TAXES 39,245 -------- DEFERRED CHARGES 367 -------- TOTAL $ 97,378 ======== WINDSOR COAL COMPANY BALANCE SHEET (UNAUDITED) March 31, 2001 ------------ (in thousands) CAPITALIZATION AND LIABILITIES SHAREHOLDER'S EQUITY: Common Stock - Par Value $0.10: Authorized - 5,000 Shares Outstanding - 4,064 Shares $ - Paid-in Capital - Retained Earnings - --------- TOTAL SHAREHOLDER'S EQUITY - -------- OTHER NONCURRENT LIABILITIES: Accrued Postretirement Benefits Other Than Pensions 35,043 Mine Closure Costs 777 Accrued Reclamation Costs 17,172 Operating Reserves 27,220 -------- TOTAL OTHER NONCURRENT LIABILITIES 80,212 -------- CURRENT LIABILITIES: Accounts Payable: General 1,458 Affiliated Companies 869 Accrued Vacation Pay 491 Accrued Other Postretirement Benefits 7,002 Other 2,189 -------- TOTAL CURRENT LIABILITIES 12,009 -------- REGULATORY LIABILITIES 5,157 -------- TOTAL $ 97,378 ======== WINDSOR COAL COMPANY INFORMATION CONCERNING MINE OPERATIONS AND CAPITAL IMPROVEMENTS FOR THE QUARTER ENDED MARCH 31, 2001 MINE CLOSURE AND PENDING SALE The Company closed the Windsor mine in 2001 and efforts are underway to reclaim the property. A memorandum of understanding was reached in April 2001 with an outside coal company to purchase all of the stock of the Company from Ohio Power Company. The transaction is expected to close on or about June 30, 2001. WINDSOR COAL COMPANY CALCULATION OF COST OF CAPITAL AND STATEMENT OF COST OF COMMERCIAL COAL SOLD AND SHIPPED FOR THE QUARTER ENDED MARCH 31, 2001 (in thousands, except as noted)
January through March 2001 I. Calculation of Cost-of-Capital Compensation: ------------------------------------------- A. Equity Investment at Beginning of Period: Common Stock $ - Paid-in Capital (excluding item D) - Excess of Acquisition Cost Over Net Book Value 172 -------- 172 B. Rate of Return Allowable per HCAR No. 26573: 10.27% per annum, 2.5675% per quarter .025675 -------- C. Earnings Allowable on Equity Investment 1. Current Quarter $ 5 ======== 2. Year-to-Date $ 5 ======== D. Net Income per Statement of Income $ 3 Less: Nonoperating Income 751 -------- E. Applied Cost-of-Capital Billing Adder: 1. Current Quarter $ (748) ======== 2. Year-to-Date $ (748) ======== II. Coal Billing Calculation: ------------------------ A. Total Operating Expenses (a) $ 5,883 B. Add: Cost-of-Capital Billing Adder as Applied per E. 1. of Section I (748) -------- C. Cost Applicable to Current Quarter Coal Billings 5,135 Less: Cost Applicable to Coal Sold to Unaffiliated Companies 4,736 -------- Cost Applicable to Current Quarter Coal Billings to Ohio Power $ 399 ======== D. Coal Sold and Shipped in Current Quarter to Ohio Power (in tons) 69,063 ====== E. Average Price per Ton to Ohio Power (in dollars) (C/D) $5.78 ===== (a) As represented by "Cost of Operation" plus "Federal Income Taxes" reported in Statement of Income.
WINDSOR COAL COMPANY STATEMENT OF COST OF OPERATION FOR THE QUARTER ENDED MARCH 31, 2001 (in thousands) Direct Labor-UMW* $ 457 Indirect Labor-UMW* 1,368 Benefits-UMW* 4,787 Salaries and Benefits-Nonunion 1,798 Operating Supplies 753 Repair Parts and Materials 546 Electricity and Other Utilities 49 Outside Services-Maintenance, Haulage and Reclamation 760 Taxes Other Than Federal Income Taxes** 644 Rental of Equipment 10 Depreciation, Depletion and Amortization 299 Royalties 45 Mining Cost Normalization*** (1,240) Other Production Costs (2,555) ------- Subtotal 7,721 Transfers of Production Costs (to)/from Coal Inventory 324 ------- Total $ 8,045 ======= * United Mine Workers of America. ** Excludes FICA, Federal Unemployment and State Unemployment Taxes. These costs are reflected in employee benefits. *** Represents the deferral/accrual required to establish a selling price based on forecasted results for the year. The amount of mining cost normalization is established on an "overall" company basis(i.e., not itemized) and is eliminated by year-end. WINDSOR COAL COMPANY ANALYSIS OF MINING PLANT IN SERVICE AND RELATED ACCUMULATED PROVISIONS FOR DEPRECIATION AND AMORTIZATION March 31, 2001 ---------------------------- Net Gross Accumulated Carrying Cost Provisions Amount ----- ----------- -------- (in thousands) Description Surface Lands $ 629 $ - $629 Mining Structures and Equipment 35,890 35,890 - Mine Development Costs 10,041 10,041 - ------- ------- ---- Total Mining Plant in Service $46,560 $45,931 $629 ======= ======= ====