MERGENT PUBLIC UTILITY

Transcription

1 MERGENT PUBLIC UTILITY NEWS REPORTS FriTuesday, April 048, 2014 Volume 85 No. 4 NOTICE Items in this issue will be listed online weekly and printed monthly. APPALACHIAN POWER CO. Electric generation, transmission & distribution ,059,577 2,948,762 2,835,481 Sales to American Electric Power Company, Inc. ("AEP") affiliates , , ,802 Other revenues ,345 9,970 9,942 revenues ,417,406 3,276,931 3,205,225 Fuel & other consumables for electric generation , , ,684 Purchased electricity for resale , , ,647 Purchased electricity from AEP affiliates , , ,182 Other operation expense , , ,995 Maintenance expense. 273, ,7097,002 Asset impairments & other related charges , expense , , ,529 Taxes other than , , ,606 Total expenses ,911,128 2,679,471 2,775,645 Operating income , , ,580 Interest income ,41,358 5,016 Carrying costs income ,086 24,603,433 equity funds used during construction... (2,353) (1,684) (9,212) Interest expense , , ,623 Income before.. 326, , ,618 Current income tax expense (credit) ,441 28,307 (15,136) expense (credit) , , ,565 Deferred investment tax credits ,220 1,240 2,569 Income tax expense.. 132, ,527 89,860 Net income , , ,758 Preferred stock dividend requirements including capital stock expense ,745 Earnings applicable to common stock , , ,013 outstanding ,500 13,500 13,500 Number of, , ,176 1 As is Consolidated Balance Sheet, Years Ended Dec Cash & cash equivalents ,745 3,576 Advances to affiliates ,485 23,024 customers , ,380 affiliated companies ,793 96,213 accrued unbilled revenues ,930 70,825 miscellaneous ,344 uncollectible accounts ,443 6,087 Fuel ,8185,813 Materials & supplies , ,208 Risk management assets ,171 30,960 Accrued tax benefits ,032 Regulatory asset for under-recovered fuel costs ,811 74,906 Prepayments & other current assets ,375 18,690 assets , ,884 Electric - generation ,745,172 5,632,665 Electric - transmission ,160,660 2,042,144 Electric - distribution ,139,150 2,991,898 Other property, plant & equipment , ,327 progress , ,247 Total property, plant & equipment ,587,200 11,306,281 Accumulated depreciation & ,617,990 3,196,639 Total property, plant & equipment, net ,969,210 8,109,642 Regulatory assets ,003,890 1,435,704 Securitized assets , Long-term risk management assets ,948 34,360 Deferrred charges & other noncurrent assets , ,078 Total assets ,310,648 10,507,668 Advances from affiliates ,965 Accounts payable - general , ,203 Accounts payable - affiliated companies , ,088 Long-term debt due within one year - nonaffiliated , ,679 Risk management liabilities ,896,698 Customer deposits ,040 67,339 es ,899 11,715 Accrued taxes ,699 74,967 Accrued interest ,899 51,442 Regulatory liability for over-recovered fuel costs , Other current liabilities , ,657 liabilities ,085,376 1,413,753 Senior unsecured notes ,893,220 3,167,559 Pollution control bonds , ,500 Securitization bonds , Other long-term debt ,355 2,383 Less: current portion , ,679 Long-term debt - affiliated , Long-term risk management liabilities ,248,476 es ,232,44,928,683 Regulatory liabilities & deferred investments tax credits , ,680 Employee benefits & pension obligations , ,207 Deferred credits & other noncurrent liabilities ,6754,544 Total noncurrent liabilities ,995,840 6,041,353 Total liabilities ,081,216 7,455,106 Common stock , ,458 Paid-in capital ,809,56,573,752 Retained earnings ,156,46,248,250 Cash flow hedges, net of tax ,184 1,433 Amortization of pension & other postretirement benefit deferred costs, net of tax ,559,118 postretirement benefit funded status, net of tax (20,784) (50,449) (loss) ,951 (29,898) Total common shareholder s equity ,229,432 3,052,562 Total shareholder s equity ,229,432 3,052,562 ATLANTIC CITY ELECTRIC CO Operating revenue.... 1,202,000 1,198,000 1,268,000 Purchased energy , , ,000 Other operation & maintenance expense. 230, , ,000 expense , , ,000 Other taxes ,000 18,000 25,000 Deferred electric service costs ,000 (5,000) (63,000) expenses ,066,000 1,079,000 1,129,000 Operating income , , ,000 Interest expense ,000 70,000 69,000 Other income ,000 4,000 2,000 Income (loss) before income tax expense ,000 53,000 72,000 (benefit) - federal.... (23,000) (31,000) (9,000) (benefit) - state & local (10,000) (12,000) 1,000 tax expense (benefit)..... (33,000) (43,000) (8,000) federal ,000 46,000 35,000

2 88 MERGENT PUBLIC UTILITY NEWS April 04, 2014 state & local ,000 16,000 7,000 investment tax credit... (1,000) (1,000) (1,000) tax expense (benefit) ,000 61,000 41,000 Income tax expense.. 19,000 18,000 33,000 Net income ,000 35,000 39,000 outstanding ,546 8,546 8, Number of common As is; 2 As of January 31, 2012 Consolidated Balance Sheet, Years Ended Dec. 31 Cash & cash equivalents ,000 6,000 Restricted cash equivalents ,000 10,000 Accounts receivable, gross , ,000 Less: allowance for uncollectible accounts ,000 11,000 Accounts receivable, net , ,000 Inventories ,000 30,000 Prepayments of income taxes ,000 27,000 Income taxes receivable ,000 5,000 uncertain tax positions , Prepaid expenses & other current assets ,000 11,000 assets , ,000 Regulatory assets , ,000 Prepaid pension expense ,000 88,000 Income taxes receivable , ,000 Restricted cash equivalents ,000 17,000 uncertain tax positions ,000 12,000 Derivative assets ,000 Other assets - other ,000 12,000 Electric generation, cost ,000 10,000 Electric distribution, cost ,821,000 1,707,000 Electric transmission, cost , ,000 progress, cost , ,000 Nonoperating & other property, cost , ,000 Accumulated depreciation , ,000 Net property, plant & equipment ,150,000 1,984,000 Total assets ,275,000 3,229,000 Commercial paper , ,000 Variable rate demand bonds ,000 23,000 long-term debt , ,000 Accounts payable ,000 26,000 Accrued liabilities , ,000 Accounts payable due to associated companies ,000 14,000 Taxes accrued ,000 10,000 Interest accrued ,000 15,000 Customer deposits ,000 25,000 Other current liabilities ,000 22,000 liabilities , ,000 Regulatory liabilities , ,000 liabilities, net , ,000 Investment tax credits ,000 6,000 Other postretirement benefit obligations ,000 34,000 Derivative liabilities ,000 Other deferred credits ,000 18,000 Secured first mortgage bonds , ,000 Variable rate term loan , Net unamortized discount (1,000) (1,000) long-term debt ,000 69,000 Transition bonds issued by ACE Funding , ,000 Common stock ,000 26,000 Premium on stock & other capital contributions , ,000 Retained earnings (accumulated deficit) , ,000 Total equity , ,000 1 Reclassified to conform with presentation DALECO RESOURCES CORP. (DE) Auditor s Report The following is an excerpt from the Report of the Independent Auditor, Mayer Hoffman McCann P.C., as it appeared in Co. s 10-K report: "In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Daleco Resources Corporation and Subsidiaries as of September 30,, and the results of their operations and their cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. The accompanying consolidated financial statements for the year ended September 30, have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has suffered significant recurring net losses from operations and negative operating cash flow, which raise substantial doubt about its ability to continue as a going concern. Management s plans concerning these matters are also described in Note 1 to the consolidated financial statements. The consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties." DELMARVA POWER & LIGHT CO. Electric operating revenues ,053,000 1,050,000 1,074,000 Natural gas operating revenues , , ,000 revenues ,244,000 1,233,000 1,304,000 Purchased energy expenses , , ,000 Gas purchased expenses , , ,000 Other operation & maintenance expenses , , ,000 expense , ,000 89,000 Other taxes ,000 36,000 37,000 expenses ,059,000 1,079,000 1,155,000 Operating income , , ,000 Interest expense ,000 47,000 44,000 Other income ,000 10,000 8,000 Income before.. 145, , ,000 (benefit) - federal.... (8,000) (9,000) (22,000) (benefit) - state & local (1,000) 8,000 tax expense (benefit)..... (8,000) (10,000) (14,000) federal ,000 44,000 53,000 state & local ,000 11,000 4,000 Investment tax credit... (1,000) (1,000) (1,000) tax expense (benefit) ,000 54,000 56,000 Income tax expense.. 56,000 44,000 42, ,000 73,000 71,000 outstanding As is Consolidated Balance Sheet, Years Ended Dec. 31 Cash & cash equivalents ,000 6,000 Accounts receivable, gross , ,000 Less allowance for uncollectible accounts ,000 9,000 Accounts receivable, net , ,000 Inventories ,000 53,000 Prepayments of income taxes ,000 10,000 es, net ,000 11,000 Income taxes receivable ,000 10,000 uncertain tax positions , Prepaid expenses & other current assets ,000 9,000 assets , ,000 Goodwill ,000 8,000 Smart Grid ,000 71,000 Recoverable ,000 69,000 MAPP abandonment costs ,000 38,000 Demand-side management costs ,000 12,000 COPCO acquisition adjustment ,000 26,000 Deferred debt extinguishment costs ,000 15,000 Deferred energy supply costs ,000 13,000 Incremental storm restoration costs ,000 11,000 Deferred losses on gas derivatives ,000 Other regulatory assets ,000 29,000 Prepaid pension expense , ,000 uncertain tax positions ,000 20,000 Other investments & other assets ,000 12,000 Distribution, cost ,788,000 1,664,000 depreciation - distribution , ,000 Transmission, cost , ,000 depreciation - transmission , ,000 Gas, cost , ,000 depreciation - gas , ,000 progress, gross , ,000 Non-operating & other property, cost , ,000 depreciation - non-operating & other property , ,000 Accumulated depreciation ,016,000 1,000,000 Net property plant & equipment ,657,000 2,422,000 Total assets ,581,000 3,282,000 Variable rate demand

3 April 04, 2014 MERGENT PUBLIC UTILITY NEWS 89 bonds , ,000 Commercial paper ,000 32,000 Short-term debt , ,000 long-term debt , ,000 Accounts payable ,000 40,000 Accrued liabilities ,000 85,000 Accounts payable due to associated companies ,000 20,000 Taxes accrued ,000 4,000 Interest accrued ,000 6,000 Derivative liabilities ,000 Other current liabilities ,000 61,000 liabilities , ,000 Asset removal costs , ,000 es due to customers ,000 38,000 Deferred energy supply costs ,000 6,000 Deferred gains on gas derivatives , Other regulatory liabilities ,000 12,000 es, net , ,000 Investment tax credits ,000 5,000 Other postretirement benefit obligation ,000 22,000 Other deferred credits ,000 41,000 First mortgage bonds , ,000 Unsecured tax-exempt bonds ,000 78,000 Medium-term notes (unsecured) ,000 40,000 Notes (unsecured) , ,000 Unamortized discount (1,000) (1,000) long-term debt , ,000 Premium on stock & other capital contributions , ,000 Retained earnings , ,000 Total equity ,044, ,000 1 Reclassified to conform with presentation EDISON MISSION ENERGY Bankruptcy Proceedings On Mar. 28, 2014, the U.S. Bankruptcy Court scheduled a Mar. 28, 2014 hearing to consider several agreements in Co. case. EDISON MISSION ENERGY Bankruptcy Proceedings On Apr. 2, 2014, Co. s Third Amended Joint Chapter 11 Plan of Reorganization (with technical modifications) became effective, and Co. emerged from Chapter 11 protection. The Court confirmed the Plan on March 11, According to the documents filed with the Court, "The Amended Plan of Reorganization and Plan Supplement shall be consistent with this Agreement and shall provide, among other things, that (A) Mission Energy Holding Company shall retain 100% of the equity interests of the Company, (B) the Tax Sharing Agreements shall be deemed to have terminated pursuant to their terms on December 31,, with respect to Co., and shall not be assumed by Co. or assigned to NRG, (C) each EIX Released Party shall be identified as a Released Party and an Exculpated Party; (D) each EIX Released Party shall be afforded the protections under the injunction and exculpation provisions under Article VIII of the Amended Plan of Reorganization; (E) the Reorganization Trust is the successor in interest of Co. and Co. s Subsidiaries for purposes of performing the obligations under, enforcing, and obtaining the benefits of, the terms of this Agreement; (F) the Reorganization Trust shall assume all rights and obligations of Co. and Co. s Subsidiaries under the Amended Plan of Reorganization and this Agreement; (G) the Debtors Motion to Establish Notification and Hearing Procedures For Transfers of, or Claims of Worthlessness with Respect to, Certain Equity Securities and for Related Relief [Docket No. 16] and any interim or final orders granting that motion shall cease to be of any further force and effect on and after the Effective Date; (H) the examination under rule 2004 commenced by the Debtors and the official committee of unsecured creditors and all related orders or subpoenas authorizing or issued pursuant to the rule 2004 examination shall be deemed terminated and cease to be of any further force or effect on and after the Effective Date; and (I) the Company will retain certain assets after the Effective Date pursuant to Section 4.c. The Court concurrently approved the related sale of substantially all of Edison Mission Energy s assets, including the equity interests in its subsidiaries, to NRG Energy. According to NRG Energy, this acquisition of renewable and conventional generation assets makes NRG Energy the largest competitive US power company with about 53,600 megawatts of generating capacity and third-largest US-based renewable energy generation company. NRG Energy expects to close the transaction by the end of the Q1 2014, following Federal Energy Regulatory Commission approval. The confirmed Plan incorporates the February 18, 2014 settlement agreement between Edison Mission Energy, Edison International and certain of Edison Mission Energy s creditors." EDISON MISSION ENERGY Interest Sale Completed On Apr. 1, 2014, NRG Energy Holdings Inc., a subsidiary of NRG Energy, Inc. ("NRG"), acquired substantially all of the assets of Co. for a total purchase price of $2,635,000, consisted of $350,000,000 of newly issued, registered shares of NRG s common stock and $2,285,000 in cash. PACIFICORP Operating revenue.... 5,147,000 4,882,000 4,586,000 Energy costs ,924,000 1,818,000 1,636,000 Operations & maintenance expenses ,114,000 1,242,000 1,103,000 expenses , , ,000 Taxes, other than , , ,000 costs & expenses ,883,000 3,861,000 3,502,000 Operating income (loss) ,264,000 1,021,000 1,084,000 Interest expense , , ,000 borrowed funds ,000 29,000 25,000 equity funds ,000 58,000 47,000 Other income (expense), net ,000 6,000 4,000 Total other income (expense) (285,000) (287,000) (316,000) Income (loss) before income tax expense , , ,000 Current income tax federal ,000 (112,000) (151,000) Current income tax state ,000 (3,000) (10,000) (benefit) ,000 (115,000) (161,000) federal , , ,000 state ,000 33,000 40,000 (benefit) , , ,000 Investment tax credits ,000 4,000 4,000 Income tax expense (benefit) , , , , , ,000 outstanding , , , , , ,400 1 Reclassified to conform with presentation; 2 As is; 3 Approximately Consolidated Balance Sheet, Years Ended Dec. 31 Cash & cash equivalents ,000 80,000 Accounts receivable, gross , ,000 Less allowance for doubtful accounts ,000 9,000 Accounts receivable, net , ,000 Materials & supplies , ,000 Fuel , ,000 es , ,000 Regulatory assets ,000 62,000 Other current assets ,000 75,000 assets ,442,000 1,468,000 Generation ,058,000 10,952,000 Transmission ,235,000 4,732,000 Distribution ,030,000 5,859,000 Intangible plant , ,000 Other property, plant & equipment ,688,000 1,631,000 Accumulated depreciation & ,686,000 7,222,000 Construction work-in-progress ,325,000 1,255,000 equipment, net ,507,000 18,057,000 Regulatory assets ,290,000 1,773,000 Other assets , ,000 Total assets ,659,000 21,728,000 Accounts payable , ,000 Income taxes payable ,000 48,000 Accrued employee expenses ,000 77,000 Accrued interest , ,000 Accrued property & other taxes ,000 54,000 long-term debt & capital lease obligations , ,000 Regulatory liabilities ,000 62,000 Other current liabilities , ,000 liabilities ,274,000 1,284,000 Regulatory liabilities , ,000 First mortgage bonds ,231,000 6,151,000 Tax-exempt bond obligations , ,000 Capitalized lease obligations ,000 55,000 Less current portion of long-term debt & capital lease obligations , ,000 Long-term debt & capital lease obligations, net of current maturities ,639,000 6,594,000 es ,359,000 4,168,000 Other long-term liabilities ,000 1,187,000 Total liabilities ,872,000 14,084,000 Preferred stock ,000 41,000 Additional paid-in capital ,479,000 4,479,000 Retained earnings (accumulated defcit) ,315,000 3,136,000 Unrecognized amounts on retirement benefits, net of tax (9,000) (12,000) (loss), net (9,000) (12,000) Total shareholders equity ,787,000 7,644,000 1 Reclassified to conform with presentation SAN DIEGO GAS & ELECTRIC CO. Electric ,537,000 3,226,000 2,830,000 Natural gas , , ,000 revenues ,066,000 3,694,000 3,373,000 Cost of electric fuel & purchased

4 90 MERGENT PUBLIC UTILITY NEWS April 04, 2014 power ,019, , ,000 Cost of natural gas , , ,000 Operation & maintenance ,157,000 1,154,000 1,072, , , ,000 Franchise fees & other taxes , , ,000 Loss from plant closure , expenses ,284,000 2,885,000 2,618,000 Operating income , , ,000 equity funds used during construction... 39,000 71,000 80,000 Regulatory interest income, net ,000 2,000 2,000 Gains (losses) on interest rate instruments (1,000) Sundry, net (3,000) (4,000) (2,000) Interest income , Interest expense , , ,000 Income before , , ,000 Current United States federal (benefit) ,000 (109,000) (59,000) Current United States state income tax expense (benefit) ,000 14,000 6,000 (benefit) ,000 (95,000) (53,000) Deferred United States federal (benefit) , , ,000 Deferred United States state income tax expense (benefit) ,000 30,000 36,000 (benefit) , , ,000 Deferred investment tax credits , (1,000) Income tax expense.. 191, , ,000 Net income , , ,000 Earnings (losses) attributable to noncontrolling interests (24,000) (26,000) (19,000) Earnings , , ,000 Call premium on preferred stock , Preferred dividend requirements ,000 5,000 5,000 Earnings applicable to common shares , , ,000 outstanding , , , , , ,008 Number of 1 As is Consolidated Balance Sheet, Years Ended Dec. 31 Cash & cash equivalents ,000 87,000 Restricted cash ,000 10,000 trade & other, gross , ,000 Less: allowance for doubtful accounts ,000 6,000 trade, net , ,000 other, net ,000 21,000 Due from unconsolidated affiliates ,000 39,000 Income taxes receivable ,000 35,000 es , Natural gas ,000 3,000 Materials & supplies ,000 79,000 Inventories ,000 82,000 Regulatory balancing accounts, net , ,000 Regulatory assets arising from fixed-price contracts & other derivatives ,000 Other regulatory assets ,000 10,000 Fixed-price contracts & other derivatives ,000 41,000 Other current assets ,000 76,000 assets ,270,000 1,087,000 Restricted cash ,000 22,000 es recoverable in rates , ,000 Regulatory assets arising from fixed-price contracts & other derivatives , ,000 Regulatory assets arising from pensions & other postretirement benefit obligations , ,000 Other regulatory assets , ,000 Nuclear decommissioning trusts ,034, ,000 Sundry , ,000 Natural gas operations ,454,000 1,406,000 Electric distribution ,492,000 5,217,000 Electric transmission ,932,000 3,714,000 Electric generation ,768,000 2,242,000 Other electric , ,000 progress , ,000 equipment ,346,000 14,124,000 Less accumulated depreciation & ,500,000 3,261,000 equipment, net ,846, ,863,000 Total assets ,377,000 14,744,000 Short-term debt , Accounts payable , ,000 Due to unconsolidated affiliate ,000 19,000 es ,000 Dividends & interest payable ,000 36,000 Accrued compensation & benefits , ,000 long-term debt ,000 16,000 Fixed-price contracts & other derivatives ,000 56,000 Customer deposits ,000 60,000 Reserve for wildfire litigation , ,000 Other current liabilities , ,000 liabilities ,079,000 1,104,000 First mortgage bonds ,912,000 3,536,000 Unsecured long-term debt , ,000 Otay Mesa Energy Center LLC secured loan , ,000 Capital lease obligations , ,000 long-term debt ,000 16,000 Unamortized discount on long-term debt (11,000) (12,000) Long-term debt ,525, ,292,000 Customer advances for construction ,000 17,000 postretirement benefit obligations, net of plan assets , ,000 es ,021,000 1,636,000 Deferred investment tax credits ,000 25,000 Regulatory liabilities arising from removal obligations ,403,000 1,603,000 Asset retirement obligations , ,000 Fixed-price contracts & other derivatives , ,000 Deferred credits & other liabilities , ,000 Contingently redeemable preferred stock ,000 Common stock ,338,000 1,338,000 Retained earnings ,299,000 2,895,000 post-retirement benefits - unamortized net actuarial gain (loss) (10,000) (12,000) post-retirement benefits - unamortized prior service credit (cost) ,000 1,000 (loss) (9,000) (11,000) Total San Diego Gas & Electric Company shareholders equity ,628,000 4,222,000 Noncontrolling interest ,000 76,000 Total equity ,719,000 4,298,000 1 Reclassified to conform with presentation; 2 Related to variable interest entity - property, plant and equipment, net: $438,000,000; 3 Related to variable interest entity - property, plant and equipment, net: $466,000,000; 4 Related to variable interest entity - long-term debt: $325,000,000; 5 Related to variable interest entity - long-term debt: $335,000,000 SOUTHERN CALIFORNIA EDISON CO Operating revenue ,562,000 11,851,000 10,577,000 Fuel , , ,000 Purchased power ,567,000 3,831,000 2,989,000 Operation & maintenance ,416,000 3,544,000 3,387,000 Depreciation, decommissioning & ,622,000 1,562,000 1,426,000 Property & other taxes , , ,000 Asset impairment & disallowances ,000 32, expenses ,811,000 9,572,000 8,454,000 Operating income (loss) ,751,000 2,279,000 2,123,000 Equity allowance for funds used during construction... 72,000 96,000 96,000 Increase in cash surrender value of life insurance policies ,000 27,000 26,000 Interest income ,000 7,000 5,000 Other income ,000 14,000 13,000 Interest expense , , ,000 Civic, political & related activities & donations ,000 32,000 30,000 Penalties , Other expenses ,000 18,000 25,000 Income (loss) before tax expense... 1,279,000 1,874,000 1,745,000 Current income taxes - federal (119,000)... (275,000) Current income taxes - state (19,000) 50,000 91, (138,000) 50,000 (184,000) Deferred income

5 April 04, 2014 MERGENT PUBLIC UTILITY NEWS 91 taxes (benefit) - federal , , ,000 Deferred income taxes (benefit) - state ,000 28,000 28,000 (benefit) , , ,000 Income tax expense.. 279, , , ,000,000 1,660,000 1,144,000 Dividends on preferred & preference stock ,000 91,000 59,000 available for common stock ,000 1,569,000 1,085,000 outstanding , , ,888 Number of full time 3,599 6,515 8,069 Number of common 1 Reclassified to conform with presentation; 2 As is Consolidated Balance Sheet, Years Ended Dec. 31 Cash & equivalents ,000 45,000 Receivables, gross , ,000 Less allowances for doubtful accounts ,000 75,000 Receivables, net , ,000 Accrued unbilled revenue , ,000 Inventory , ,000 Derivative assets , ,000 Regulatory assets , ,000 es , Other current assets , ,000 assets ,075,000 2,562,000 Nuclear decommissioning trusts ,494,000 4,048,000 Other investments , ,000 Transmission ,117,000 7,059,000 Distribution ,874,000 16,872,000 Generation ,856,000 4,455,000 General plant & other utility property, plant & equipment ,674,000 4,358,000 depreciation ,493,000 7,424,000 progress ,219,000 4,271,000 Nuclear fuel, at amortized cost , ,000 Nonutility property, plant & equipment, gross , ,000 Accumulated provision for depreciation , ,000 Derivative assets ,000 85,000 Regulatory assets ,241,000 6,422,000 Other long-term assets , ,000 Total assets ,050,000 44,034,000 Short-term debt , ,000 long-term debt , Accounts payable ,373,000 1,297,000 Customer deposits , ,000 Derivative liabilities , ,000 Regulatory liabilities , ,000 es ,000 81,000 Other current liabilities ,091,000 1,105,000 liabilities ,398,000 3,513,000 Mortgage bonds ,975,000 7,775,000 Pollution-control bonds , ,000 Bonds repurchased (161,000) (161,000) Debentures & notes , ,000 long-term debt , Unamortized debt discount, net (38,000) (32,000) Long-term debt, net ,422,000 8,828,000 es & credits ,841,000 6,773,000 Derivative liabilities ,042, ,000 Pension & benefits ,000 2,245,000 Asset retirement obligations ,418,000 2,782,000 Regulatory liabilities ,995,000 5,214,000 Other deferred credits & other long-term liabilities ,845,000 1,997,000 Total liabilities ,912,000 32,291,000 Common stock ,168,000 2,168,000 Additional paid-in capital , ,000 Pension & postretirement benefits other than pension (11,000) (29,000) (loss) (11,000) (29,000) Retained earnings ,594,000 7,228,000 Total common shareholder s equity ,343,000 9,948,000 Preferred & preference stock ,795,000 1,795,000 Total shareholders equity ,138,000 11,743,000 1 Reclassified to conform with presentation USEC, INC Separative work units revenue ,222,900 1,821,800 1,330,900 Uranium revenue ,200 26, ,800 Contract services revenue ,400 14, ,100 Total revenue ,307,500 1,862,100 1,600,800 Cost of sales: separative work units & uranium ,388,800 1,718,500 1,391,100 Cost of sales: contract services ,600 14, ,300 Total cost of sales.... 1,402,400 1,732,700 1,525,400 Gross profit (loss).... (94,900) 129,400 75,400 Advanced technology costs ,100 1,313, ,600 Selling, general & administrative expenses ,800 50,300 56,400 Special charge for workforce reductions & advisory costs ,200 12, Other income ,300 92,100 3,700 Operating income (loss) (230,700) (1,154,300) (248,900) Interest expense ,100 50,400 11,600 Interest income , Income (loss) from continuing operations before (270,100) (1,202,800) (260,000) Current federal provision (benefit) (2,900) (21,200) Current state & local provision (benefit)... (1,800) 2, provision (benefit)... (1,800) (900) (20,600) Deferred federal provision (benefit)... (83,000) (200) 237,200 Deferred state & local provision (benefit)... (1,700) ,200 provision (benefit)... (84,700) (100) 252,400 Provision (benefit) for..... (86,500) (1,000) 231,800 from continuing operations (183,600) (1,201,800) (491,800) Net income from discontinued operations ,700 1, (158,900) (1,200,600) (491,100) Weighted average shares outstanding - basic , ,900 4,800 Weighted average shares outstanding - diluted , ,900 4,800 outstanding , ,008 4,928 continuing operations - basic.... $(37.47) $(245.26) $(102.46) discontinued operations - basic.... $5.04 $0.24 $0.15 per share - basic..... $(32.43) 3 $(245.02) $(102.31) continuing operations - diluted $(37.47) $(245.26) $(102.46) discontinued operations - diluted $5.04 $0.24 $0.15 per share - diluted.... $(32.43) 4 1,432 Number of beneficiary 3 $(245.02) $(102.31) 4 1, , Restated to reflect the sale of Co. s subsidiary, NAC International, Inc. as discontinued operations; 2 Restated to reflect correction of the presentation of the provision for ; 3 Adjusted for 1-for-25 stock split, July 1, ; 4 As is; 5 Approximately; 6 As of March 12, 2014 Consolidated Balance Sheet, Years Ended Dec. 31 Cash & cash equivalents , ,900 utility customers , ,300 DOE pro-rata share of RD&D program funding ,100 4,400 Contract services, primarily department of energy - billed revenue ,700 12,600 Contract services, primarily department of energy - unbilled revenue ,900 1,600 Less: valuation allowances & allowances for doubtful accounts ,000 2,100 Accounts receivable, net , ,800 Separative work units , ,900 Uranium , ,700 Materials & supplies ,800 8,600 Total inventories ,600 1,593,200 Deferred costs associated with deferred revenue , ,800 Other current assets ,700 19,200 assets ,632,000 2,156,900 progress ,700 Leasehold improvements , ,700 Machinery & equipment , ,700 equipment, at cost , ,100 Less accumulated

6 92 MERGENT PUBLIC UTILITY NEWS April 04, 2014 depreciation & , ,100 equipment, net ,900 51,000 Deposit for surety bonds ,800 22,300 Goodwill ,800 Other assets ,800 29,400 Total assets ,705,500 2,266,400 Trade payables ,700 21,100 Compensation & benefits ,300 41,000 American Centrifuge accrued liabilities ,600 13,300 Accrued property & other taxes payable ,200 4,700 Accrued lease turnover - current ,400 32,200 Accrued interest payable on debt ,000 5,300 Accrued severance payments , Other accrued liabilities ,100 28,200 Payables under Russian contract , ,800 Inventories owed to customers & suppliers , ,000 Deferred revenue , ,100 Advances from customers ,400 Credit facility term loan ,200 Convertible senior notes , Convertible preferred stock & accrued dividends payable-in-kind, shares issued , ,500 liabilities ,794,700 1,614,800 Convertible senior notes ,000 Postretirement health & life benefit obligations , ,200 Pension benefit liabilities , ,700 Other liabilities ,800 65,600 Common stock Excess of capital over par value ,216,400 1,213,300 Retained earnings (deficit) (1,520,700) (1,361,800) Treasury stock ,300 33,000 (loss), net of tax (120,100) (291,900) Total stockholders equity (deficit) (458,200) (472,900) 1 Restated to reflect the sale of Co. s subsidiary, NAC International, Inc. as discontinued operations USEC, INC. Auditor s Report The following is an excerpt from the Report of the Independent Auditors, PricewaterhouseCoopers LLP, as it appeared in the 10-K report: "In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, consolidated statements of (loss), consolidated statements of cash flows, and consolidated statements of stockholders equity (deficit) present fairly, in all material respects, the financial position of USEC Inc. and its subsidiaries at December 31, and 2012, and the results of their operations and their cash flows for each of the three years in the period ended December 31, in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31,, based on criteria established in Internal Control - Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company s management is responsible for these financial statements, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management s on Internal Control Over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on these financial statements and on the Company s internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has reported net losses for the years ended December 31,, 2012 and 2011, had a shareholders deficit as of December 31,, and filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code on March 5, 2014, which raise substantial doubt about its ability to continue as a going concern. Management s plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. A company s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate." * MERGENT PUBLIC UTILITY News Reports is published weekly online on Tuesdays and printed the last Friday of the month by Mergent, Inc., 60 Madison Ave., New York, NY The News Reports are part of the PUBLIC UTILITY Manual and provide periodic updates. Send address changes to MERGENT PUBLIC UTILITY, 580 Kingsley Park Drive, Fort Mill, SC Copyright 2014 by Mergent. 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