35-CERT 1 wphsec.txt WINDSOR 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 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 *Final Report - See Page 5 for explanation. WINDSOR COAL COMPANY STATEMENT OF INCOME FOR THE QUARTER ENDED JUNE 30, 2001 (UNAUDITED) (in thousands) OPERATING REVENUES $ 33 COST OF OPERATION 76 ---- OPERATING LOSS (43) NONOPERATING INCOME 310 ---- INCOME BEFORE FEDERAL INCOME TAXES 267 FEDERAL INCOME TAXES ON OPERATIONS 267 ---- 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. WINDSOR COAL COMPANY BALANCE SHEET (UNAUDITED) June 30, 2001 ------------ (in thousands) ASSETS MINING PLANT: Mining Plant in Service $46,485 Accumulated Depreciation and Amortization 45,856 ------- NET MINING PLANT 629 ------- CURRENT ASSETS: Cash and Cash Equivalents 989 Accounts Receivable - General 69 Advances to Affiliates 33,510 Materials and Supplies 396 Accrued Tax Benefit 12,108 ------- TOTAL CURRENT ASSETS 47,072 ------- DEFERRED INCOME TAXES 32,973 ------- DEFERRED CHARGES 484 ------- TOTAL $81,158 ======= WINDSOR COAL COMPANY BALANCE SHEET (UNAUDITED) June 30, 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 35,019 Accrued Reclamation Costs 15,133 Operating Reserves 18,831 ------- TOTAL OTHER NONCURRENT LIABILITIES 68,983 ------- CURRENT LIABILITIES: Accounts Payable: General 903 Affiliated Companies 616 Accrued Vacation Pay 316 Accrued Other Postretirement Benefits 6,993 Other 1,094 ------- TOTAL CURRENT LIABILITIES 9,922 ------- REGULATORY LIABILITIES 2,253 ------- TOTAL $81,158 ======= WINDSOR COAL COMPANY INFORMATION CONCERNING MINE OPERATIONS AND CAPITAL IMPROVEMENTS FOR THE QUARTER ENDED JUNE 30, 2001 In July 2001, Ohio Power Company sold Windsor Coal Company (WCCo). Therefore, this will be the final report that is filed for WCCo. WINDSOR 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 $ - Paid-in Capital - Excess of Acquisition Cost Over Net Book Value 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 $ 10 ======== D. Net Income per Statement of Income $ - Add: Interest Charges - Less: Nonoperating Income 310 -------- E. Applied Cost-of-Capital Billing Adder: 1. Current Quarter $ (310) ======== 2. Year-to-Date $ (1,058) ======== II. Coal Billing Calculation: ------------------------ A. Total Operating Expenses (a) $ 343 B. Add: Cost-of-Capital Billing Adder as Applied per E. 1. of Section I (310) -------- C. Cost Applicable to Current Quarter Coal Billings $ 33 ======== 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.
WINDSOR COAL COMPANY STATEMENT OF COST OF OPERATION FOR THE QUARTER ENDED JUNE 30, 2001 (in thousands) Direct Labor-UMW* $ 12 Indirect Labor-UMW* 355 Benefits-UMW* 918 Salaries and Benefits-Nonunion 928 Operating Supplies 133 Repair Parts and Materials 107 Electricity and Other Utilities 40 Outside Services-Maintenance, Haulage and Reclamation 343 Taxes Other Than Federal Income Taxes** (225) Rental of Equipment 11 Mining Cost Normalization*** 1,240 Other Production Costs (3,786) ------- Subtotal 76 Transfers of Production Costs (to)/from Coal Inventory - ------- Total $ 76 ======= * 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 JUNE 30, 2001 ----------------------------- Net Gross Accumulated Carrying Cost Provisions Amount ------ ----------- --------- (in thousands) Description Surface Lands $ 629 $ - $629 Mining Structures and Equipment 35,815 35,815 - Mine Development Costs 10,041 10,041 - ------- ------- ---- Total Mining Plant in Service $46,485 $45,856 $629 ======= ======= ====