35-CERT 1 coccsec.txt CENTRAL OHIO COAL COMPANY QUARTERLY REPORT PER REQUIREMENTS OF HOLDING COMPANY ACT RELEASE NO. 26573 FOR THE QUARTER ENDED JUNE 30, 2001* CONTENTS Page Statements of Income and Retained Earnings 1 Balance Sheets 2-3 Information Concerning Mine Operations and Capital Improvements 4-5 Calculation of Cost of Capital and Statement of Cost of Commercial Coal Sold and Shipped 6 Statement of Cost of Operation 7 Analysis of Mining Plant in Service 8 *Final Report - See Page 5 for explanation. CENTRAL OHIO COAL COMPANY STATEMENT OF INCOME FOR THE QUARTER ENDED JUNE 30, 2001 (UNAUDITED) (in thousands) OPERATING REVENUES $ 1,241 COST OF OPERATION 2,359 ------- OPERATING LOSS (1,118) NONOPERATING INCOME 871 ------- LOSS BEFORE FEDERAL INCOME TAXES (247) FEDERAL INCOME TAX CREDIT ON OPERATIONS (247) ------- NET INCOME $ - ======== STATEMENT OF RETAINED EARNINGS FOR THE QUARTER ENDED JUNE 30, 2001 (UNAUDITED) (in thousands) BALANCE AT BEGINNING OF PERIOD $- NET INCOME - -- BALANCE AT END OF PERIOD $- == The common stock of the Company is wholly owned by Ohio Power Company. CENTRAL OHIO COAL COMPANY BALANCE SHEET (UNAUDITED) JUNE 30, 2001 ------------ (in thousands) ASSETS MINING PLANT: Mining Plant in Service $ 49,859 Accumulated Depreciation and Amortization 49,226 -------- NET MINING PLANT 633 -------- OTHER PROPERTY AND INVESTMENTS 2,109 -------- CURRENT ASSETS: Cash and Cash Equivalents 134 Accounts Receivable: General 55 Affiliated Companies 156 Advances to Affiliates 66,806 Materials and Supplies 1,371 Prepayments and Other 146 -------- TOTAL CURRENT ASSETS 68,668 -------- DEFERRED INCOME TAXES 53,811 -------- TOTAL $125,221 ======== CENTRAL OHIO COAL COMPANY BALANCE SHEET (UNAUDITED) JUNE 30, 2001 ------------ (in thousands) CAPITALIZATION AND LIABILITIES SHAREHOLDER'S EQUITY: Common Stock - Par Value $0.10: Authorized - 100,000 Shares Outstanding - 69,000 Shares $ 7 Retained Earnings - --------- TOTAL SHAREHOLDER'S EQUITY 7 -------- OTHER NONCURRENT LIABILITIES: Accrued Postretirement Benefits Other Than Pensions 57,425 Accrued Reclamation Costs 33,186 Mine Closure Costs 1,740 Other Operating Reserves 12,713 -------- TOTAL OTHER NONCURRENT LIABILITIES 105,064 -------- CURRENT LIABILITIES: Accounts Payable: General 987 Affiliated Companies 531 Taxes Accrued 6,725 Accrued Reclamation Costs 3,624 Accrued Vacation Pay 333 Other 6,045 -------- TOTAL CURRENT LIABILITIES 18,245 -------- REGULATORY LIABILITIES AND DEFERRED CREDITS 1,905 -------- TOTAL $125,221 ======== CENTRAL OHIO COAL COMPANY INFORMATION CONCERNING MINE OPERATIONS AND CAPITAL IMPROVEMENTS FOR THE QUARTER ENDED JUNE 30, 2001 In July 2001, Ohio Power Company sold Central Ohio Coal Company (COCCo). Therefore, this will be the final report that is filed for COCCo. CENTRAL OHIO COAL COMPANY CALCULATION OF COST OF CAPITAL AND STATEMENT OF COST OF COMMERCIAL COAL SOLD AND SHIPPED FOR THE QUARTER ENDED JUNE 30, 2001 (in thousands, except as noted)
April through June 2001 I. Calculation of Cost-of-Capital Compensation: ------------------------------------------- A. Equity Investment at Beginning of Period: Common Stock $ 7 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 $ - ======== 2. Year-to-Date $ - ======== D. Net Income per Statement of Income $ - Add: Interest Charges - Less: Nonoperating Income 871 -------- E. Applied Cost-of-Capital Billing Adder: 1. Current Quarter $ (871) ======== 2. Year-to-Date $ (2,162) ======== II. Coal Billing Calculation: ------------------------ A. Total Operating Expenses (a) $ 2,112 B. Add: Cost-of-Capital Billing Adder as Applied per E. 1. of Section I (871) -------- C. Cost Applicable to Current Quarter Coal Billings $ 1,241 ======== D. Coal Sold and Shipped in Current Quarter to Ohio Power (in tons) - ======= E. Average Price per Ton to Ohio Power (in dollars) (C/D) $ - ====== (a) As represented by Cost of Operation plus Federal Income Taxes reported in Statement of Income.
CENTRAL OHIO COAL COMPANY STATEMENT OF COST OF OPERATION FOR THE QUARTER ENDED JUNE 30, 2001 (in thousands) Direct Labor-UMW* $ 3 Indirect Labor-UMW* 385 Benefits-UMW* 1,097 Salaries and Benefits-Nonunion 554 Operating Supplies 566 Repair Parts and Materials 485 Electricity and Other Utilities 323 Outside Services-Maintenance, Haulage and Reclamation 138 Taxes Other Than Federal Income Taxes** 210 Rental of Equipment 5 Mining Cost Normalization*** (1,801) Reclamation (641) Other Production Costs 1,035 ------- Subtotal 2,359 Transfers of Production Costs (to)/from Coal Inventory - ------- Total $ 2,359 ======= * 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. CENTRAL OHIO COAL COMPANY ANALYSIS OF MINING PLANT IN SERVICE AND RELATED ACCUMULATED PROVISIONS FOR DEPRECIATION AND AMORTIZATION JUNE 30, 2001 ---------------------------- Net Gross Accumulated Carrying Cost Provisions Amount ----- ----------- -------- (in thousands) Description Surface Lands $ 324 $ - $324 Mining Structures and Equipment 47,243 46,934 309 Leasehold Improvements 2,292 2,292 - ------- ------- ----- Total Mining Plant in Service $49,859 $49,226 $633 ======= ======= ====