EXHIBIT 99-2
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the fiscal year ended December 31, 1993
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
--------------------------------------------------------
(Full title of the plan)
New York State Electric & Gas Corporation
--------------------------------------------------------
(Name of issuer of the securities held pursuant to the plan)
P. O. Box 3287, Ithaca, New York 14852-3287
--------------------------------------------------------
(Address of principal executive office)
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Year ended December 31, 1993
INDEX
Report of Independent Auditors .......................................... F-1
Items 1 and 2
Statements of Net Assets Available for Plan Benefits .................... F-2
Statements of Changes in Net Assets Available for Plan Benefits ......... F-3
Notes to Financial Statements ........................................... F-5
Schedule I-Investments--December 31, 1993 ............................... F-10
Schedule I-Investments--December 31, 1992 ............................... F-11
Schedule II-Net Assets Available for Plan Benefits--December 31, 1993 ... F-12
Schedule II-Net Assets Available for Plan Benefits--December 31, 1992 ... F-13
Schedule III-Changes in Net Assets Available for Plan
Benefits--Year ended December 31, 1993 ............................... F-14
Schedule III-Changes in Net Assets Available for Plan
Benefits--Year ended December 31, 1992 ............................... F-16
Schedule III-Changes in Net Assets Available for Plan
Benefits--Year ended December 31, 1991 ............................... F-18
Consent of Independent Auditors ......................................... F-20
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Committee to administer the Tax Deferred Savings Plan for Hourly Paid
Employees has duly caused this Annual Report to be signed by the undersigned
thereunto duly authorized.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid
Employees
By Richard P. Fagan
____________________________________________
Richard P. Fagan
Date: March 11, 1994 Committee Member
By Sherwood J. Rafferty
____________________________________________
Sherwood J. Rafferty
Date: March 11, 1994 Committee Member
REPORT OF INDEPENDENT AUDITORS
Tax Deferred Savings Plan for Hourly Paid Employees
Administrative Committee
New York State Electric & Gas Corporation
We have audited the accompanying statements of net assets available for plan
benefits of the New York State Electric & Gas Corporation Tax Deferred Savings
Plan for Hourly Paid Employees as of December 31, 1993 and 1992, and the
related statements of changes in net assets available for plan benefits for
each of the three years in the period ended December 31, 1993. Our audits
also included the financial statement schedules listed in the Index at Items 1
and 2. These financial statements and schedules are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements and schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the New
York State Electric & Gas Corporation Tax Deferred Savings Plan for Hourly
Paid Employees at December 31, 1993 and 1992, and the changes in its net
assets available for plan benefits for each of the three years in the period
ended December 31, 1993, in conformity with generally accepted accounting
principles. Also, in our opinion, the related financial statement schedules,
when considered in relation to the basic financial statements taken as a
whole, present fairly in all material respects the information set forth
therein.
Syracuse, New York Ernst & Young
February 18, 1994
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statements of Net Assets Available for Plan Benefits
December 31,
1993 1992
----------------------
ASSETS
Investments (Notes 1,3,7, and 8 - Schedules I and II):
Guaranteed investment contracts $ 4,319,938 $ 4,458,875
Common stock of New York Electric & Gas
Corporation (cost - 1993 - $30,343,622
1992 - $25,297,526) 33,942,236 31,080,827
Other (cost - 1993 - $18,834,960
1992 - $12,306,307) 20,322,662 12,882,559
----------------------
58,584,836 48,422,261
Loans to participants (Note 2 and Schedule II) 1,973,289 1,324,508
----------------------
Total assets 60,558,125 49,746,769
LIABILITIES
Withdrawals payable to participants
(Note 2 and Schedule II) 2,884,167 1,947,468
----------------------
Total liabilities 2,884,167 1,947,468
----------------------
Net assets available for plan benefits $57,673,958 $47,799,301
======================
See notes to financial statements
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statements of Changes in Net Assets Available for Plan Benefits
Year ended December 31,
1993 1992 1991
--------------------------------------
ADDITIONS (Notes 1, 2, and 3
and Schedule III)
Investment income:
Net unrealized appreciation
(depreciation) in current value
of securities $(1,273,238) $ 3,552,321 $ 2,551,402
Net realized gain on security
sales:
Common stock of New York
State Electric & Gas
Corporation 44,022 79,466 7,401
Other 34,192 32,703 27,100
--------------------------------------
(1,195,024) 3,664,490 2,585,903
Dividends:
New York State Electric & Gas
Corporation 2,232,419 1,792,905 1,274,062
Other cash dividends (including
capital gain distributions
from mutual funds of
$571,150 in 1993, $359,204
in 1992 and $206,666 in 1991) 1,040,481 645,634 464,657
--------------------------------------
3,272,900 2,438,539 1,738,719
Interest on securities 259,723 391,487 590,672
Interest on loans to participants 107,088 62,654 31,679
--------------------------------------
2,444,687 6,557,170 4,946,973
Contributions:
Employer 1,177,250 1,062,874 464,588
Employee 8,227,455 7,407,061 6,374,201
--------------------------------------
9,404,705 8,469,935 6,838,789
--------------------------------------
Total additions 11,849,392 15,027,105 11,785,762
DEDUCTIONS (Notes 2 and 6 and
Schedule III)
Withdrawal benefits-stock 620,045 337,311 339,381
Withdrawal benefits-cash 217,229 251,981 223,336
Withdrawal benefits payable 936,699 1,107,652 468,377
Transfers to Salaried Plan 184,973 589,285 333,258
Trustee fees 15,789 25,104 31,311
--------------------------------------
Total deductions 1,974,735 2,311,333 1,395,663
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statements of Changes in Net Assets Available for Plan Benefits
(Continued)
Year ended December 31,
1993 1992 1991
--------------------------------------
Net increase 9,874,657 12,715,772 10,390,099
Net assets available for plan
benefits at beginning of year 47,799,301 35,083,529 24,693,430
--------------------------------------
Net assets available for plan
benefits at end of year $57,673,958 $47,799,301 $35,083,529
======================================
See notes to financial statements
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Notes to Financial Statements
December 31, 1993, 1992, and 1991
1. SIGNIFICANT ACCOUNTING POLICIES
The New York State Electric & Gas Corporation Tax Deferred Savings Plan for
Hourly Paid Employees (the Hourly Plan) was established effective January 1,
1986 to provide for before-tax contributions in accordance with Internal
Revenue Code (Code) Section 401(k). The Hourly Plan is maintained on the
accrual basis.
Guaranteed investment contracts are valued at contract value which represents
contributions plus interest thereon at the contract rate.
Other investments are carried at current value using the market price at
closing on the last business day of the year.
The change during the period between current value and carrying value is
reflected in the statement of changes in net assets available for plan
benefits as unrealized appreciation (depreciation) in current value of
securities.
Realized gains (losses) are calculated as the difference between the proceeds
of assets sold during the year and the market value of these assets at the
beginning of the year (or the purchase price if the assets sold were acquired
during the year).
2. DESCRIPTION OF THE HOURLY PLAN
The Hourly Plan is a defined contribution plan for the exclusive benefit of
New York State Electric & Gas Corporation (Company) employees who are eligible
to participate under the Hourly Plan provisions.
Contributions by the participants are invested, at the election of the
participant, in one or a combination of the following five funds: (1) the
Company Stock Fund, consisting of common stock of the Company; (2) the Equity
Fund, a mutual fund, consisting primarily of common stock; (3) the Money
Market Fund, a mutual fund, consisting of money market instruments; (4) the
Capital Appreciation Fund, a mutual fund, consisting primarily of common
stock; or (5) the Government Obligation Fund, a mutual fund, consisting of
securities that are backed by the full faith and credit of the United States
Government. Effective January 1, 1992, the Guaranteed Investment Contract
Fund did not accept any new investments. Prior to November 18, 1988, the
Guaranteed Investment Contract Fund consisted of investments in insurance
contracts that guaranteed an effective annual rate of interest through a
specified period and effective November 18, 1988, included investments in
securities and other obligations issued by any company that guaranteed an
effective annual rate of interest through a specified period.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Notes to Financial Statements (Continued)
2. DESCRIPTION OF THE HOURLY PLAN (Continued)
Employees covered by a collective bargaining agreement are eligible for
participation in the Hourly Plan upon completion of at least one year of
service and at least 1,000 hours of service in that year.
Employee contributions range from 1% to 15% of the participant's base
compensation plus any overtime pay. A participant's total contribution could
not exceed $8,994 per year in 1993, $8,728 per year in 1992, and $8,475 per
year in 1991 (excluding any Company contributions). The maximum amount is
increased annually for inflation.
During 1993 and 1992, the Company contributed solely to the Company Stock Fund
an amount equivalent to 25% of the participant's contributions to any fund (up
to 1.5% of the participant's annual base compensation). During 1991, the
Company contributed solely to the Company Stock Fund an amount equivalent to
15% of the participant's contribution to the Company Stock Fund (up to 1.5% of
the participant's annual base compensation).
Contributions are also subject to limitations stipulated by the Code.
Contributions to the Hourly Plan are allocated to participant accounts.
Participants have full and immediate vesting rights in all contributions,
Hourly Plan earnings, and other amounts allocated to their accounts.
Participants may make transfers between the various investment funds (other
than the Guaranteed Investment Contract Fund and the Company's contribution to
the Company Stock Fund) once each calendar quarter on any day of the calendar
quarter. Subject to certain restrictions, transfers may be made from the
Guaranteed Investment Contract Fund (with the exception of amounts related to
1987 contributions) on January 1 of each year.
A participant who is no longer employed by the Company may make transfers
between the various investment funds (other than the Guaranteed Investment
Contract Fund) once each calendar quarter on any day of the calendar quarter.
Subject to certain restrictions, transfers may be made from the Guaranteed
Investment Contract Fund (with the exception of amounts related to 1987
contributions) on January 1 of each year.
Participants may obtain a distribution of their accounts due to financial
hardship or upon request after attaining the age of 59-1/2.
Distributions from the Equity Fund, Money Market Fund, Capital Appreciation
Fund, Government Obligation Fund, and Guaranteed Investment Contract Fund are
made in cash. Distributions from the Company Stock Fund are made in either
whole shares of New York State Electric & Gas Corporation common stock or in
cash, as specified by the participant and subject to approval by the Hourly
Plan's administrative committee.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Notes to Financial Statements (Continued)
2. DESCRIPTION OF THE HOURLY PLAN (Continued)
Participants may, under certain circumstances, borrow against their account
balances. The principal amount of the loan is subject to certain limitations
as defined in the Hourly Plan document. The term of the loan may not exceed
five years, and the interest rate as established by the Hourly Plan's
administrative committee prior to October 16, 1989 was no less than 1% below
the prime rate. Effective October 16, 1989, the interest rate established by
the Hourly Plan's administrative committee provides the Hourly Plan with a
return commensurate with the interest rate charged by persons in the business
of lending money for loans which would be made under similar circumstances.
The loan must be repaid by payroll deductions over the term of the loan. Loan
payments are credited to an applicable fund based upon the participant's
election. If a participant's employment terminates for any reason, the loan
will become immediately due and payable.
The Hourly Plan sponsor has the right to discontinue contributions at any time
and terminate the Hourly Plan. In the event of termination of the Hourly
Plan, the net assets of the Hourly Plan are set aside, first for payment of
all Hourly Plan expenses and, second, for distribution to the participants,
based upon the balances in their individual accounts.
3. INVESTMENTS
The Hourly Plan's investments (including investments bought, sold, and held)
appreciated (depreciated) in fair value as follows:
Year ended December 31,
1993 1992 1991
-------------------------------------
Capital Appreciation Fund $ 593,270 $ 151,061 $ 185,792
Equity Fund 383,832 175,364 301,001
Government Obligation Fund (31,461) (509) --
Money Market Fund -- -- --
Company Stock Fund (2,140,665) 3,338,574 2,099,110
Guaranteed Investment Contract Fund -- -- --
-------------------------------------
$(1,195,024) $3,664,490 $2,585,903
====================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Notes to Financial Statements (Continued)
3. INVESTMENTS (Continued)
Realized gains on security sales
resulted from the following:
Year ended December 31, 1993
--------------------------------------
Aggregate Aggregate Net Realized
Cost Proceeds Gain
--------------------------------------
Common stock of New York State
Electric & Gas Corporation $3,471,971 $3,515,993 $ 44,022
Other 634,922 669,114 34,192
Year ended December 31, 1992
--------------------------------------
Aggregate Aggregate Net Realized
Cost Proceeds Gain
--------------------------------------
Common stock of New York State
Electric & Gas Corporation $1,620,493 $1,699,959 $ 79,466
Other 512,796 545,499 32,703
Year ended December 31, 1991
--------------------------------------
Aggregate Aggregate Net Realized
Cost Proceeds Gain
--------------------------------------
Common stock of New York State
Electric & Gas Corporation $ 585,522 $ 592,923 $ 7,401
Other 128,114 155,214 27,100
4. INCOME TAX STATUS
The Company has received a determination letter from the Internal Revenue
Service that the Hourly Plan qualifies as a tax deferred savings plan under
Sections 401(a) and 401(k) of the Code.
The Prospectus for the Hourly Plan and other materials provided to
participants include a discussion of the income tax rules applicable to
participants with respect to the Hourly Plan.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Notes to Financial Statements (Continued)
5. PARTICIPANTS
At December 31, 1993, 1992, and 1991, respectively, there were 2,439, 2,642,
and 2,482 participants in one or more funds as follows:
1993 1992 1991
---------------------
Capital Appreciation Fund 993 786 360
Equity Fund 1,116 878 628
Government Obligation Fund 407 309 --
Money Market Fund 942 920 352
Company Stock Fund 2,363 2,223 1,832
Guaranteed Investment Contract Fund 713 784 960
6. TRANSACTIONS WITH PARTIES-IN-INTEREST
Trustee fees related to the Guaranteed Investment Contract Fund are paid by
the Hourly Plan. All other administrative costs of the Hourly Plan are paid
by the Company. The Hourly Plan may reimburse the Company up to the
limitations specified in the Hourly Plan document.
7. SUBSEQUENT EVENT
At February 18, 1994, the Company common stock had a market value of $26.625
per share as compared to $30.75 per share at December 31, 1993. This equates
to a decline in market value of $4,553,229 in the Company Stock Fund from
December 31, 1993 to February 18, 1994. Based upon the February 18, 1994
stock price, the market value of shares held would be $29,389,007 as compared
to the December 31, 1993 cost of $30,343,622.
8. UNCERTAINTY
The State of California Department of Insurance (SCDI) assumed control of
Executive Life Insurance Company of California (an insurance company
subsidiary of First Executive Corporation) on April 11, 1991. The Hourly
Plan's Guaranteed Investment Contract Fund includes a GIC issued by Executive
Life Insurance Company of California (Executive Life) that matured December
31, 1991. Participants contributed to this GIC in 1987. The Executive Life
GIC amounts to $1,123,156, including interest accrued through the GIC's
original maturity date of December 31, 1991, and represents 26% of the total
Guaranteed Investment Contract Fund balance of $4,332,133 at December 31,
1993. Although full recovery of participant balances that were invested in
the 1987 Executive Life GIC is not certain, the California courts have
approved a plan which, subject to the outcome of several court proceedings and
in conjunction with state insurance department guaranty funds, may provide
substantial recovery in future years. At February 18, 1994, the Hourly Plan's
management is unable to estimate the loss that may result from the ultimate
settlement of the 1987 Executive Life GIC.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Schedule I - Investments
December 31, 1993
Balance Held at Market
Name of Issuer and Title of Issue End of Year Cost Value
- ------------------------------------------------------------------------------
Capital Appreciation Fund
Putnam Voyager Fund 477,879 shares $ 4,829,848 $ 5,729,770
Equity Fund
Putnam Fund for Growth and Income 723,831 shares 9,222,812 9,844,103
Government Obligation Fund
Putnam U.S. Government Income Trust 117,160 shares 1,609,317 1,575,806
Money Market Fund
Putnam Daily Dividend Trust 3,172,983 shares 3,172,983 3,172,983
------------------------
Total $18,834,960 $20,322,662
========================
Company Stock Fund
New York State Electric & Gas
Corporation common stock 1,103,813 shares $30,343,622 $33,942,236
========================
Guaranteed Investment Contracts $4,319,938 $4,319,938
========================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Schedule I - Investments
December 31, 1992
Balance Held at Market
Name of Insurer and Title of Issue End of Year Cost Value
- ------------------------------------------------------------------------------
Capital Appreciation Fund
Putnam Voyager Fund 311,074 shares $ 2,944,663 $ 3,272,500
Equity Fund
Putnam Fund for Growth and Income 494,033 shares 6,091,712 6,343,385
Government Obligation Fund
Putnam U.S. Government Income Trust 55,726 shares 769,489 766,231
Money Market Fund
Putnam Daily Dividend Trust 2,500,443 shares 2,500,443 2,500,443
------------------------
Total $12,306,307 $12,882,559
========================
Company Stock Fund
New York State Electric & Gas
Corporation common stock 956,333 shares $25,297,526 $31,080,827
========================
Guaranteed Investment Contracts $ 4,458,875 $ 4,458,875
========================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Schedule II - Net Assets Available for Plan Benefits
December 31, 1993
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Total
------------------------------------------------------------------------------------------
Guaranteed investment contracts $ 4,319,938 $ 4,319,938
Investments:
Common stock of New York State
Electric & Gas Corporation $33,942,236 33,942,236
Other $ 5,729,770 $9,844,103 $1,575,806 $ 3,172,983 20,322,662
Loans to participants 39,968 265,645 22,540 69,510 1,235,410 340,216 1,973,289
------------------------------------------------------------------------------------------
Total assets 5,769,738 10,109,748 1,598,346 3,242,493 35,177,646 4,660,154 60,558,125
Withdrawals payable to participants 234,556 499,497 64,077 82,068 1,675,948 328,021 2,884,167
------------------------------------------------------------------------------------------
Net assets available for plan benefits $ 5,535,182 $9,610,251 $1,534,269 $ 3,160,425 $33,501,698 $4,332,133 $57,673,958
==========================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Schedule II - Net Assets Available for Plan Benefits
December 31, 1992
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Total
-------------------------------------------------------------------------------------------
Guaranteed investment contracts $4,458,875 $ 4,458,875
Investments:
Common stock of New York State
Electric & Gas Corporation $31,080,827 31,080,827
Other $3,272,500 $6,343,385 $766,231 $2,500,443 12,882,559
Loans to participants 20,130 224,054 13,797 59,757 730,838 275,932 1,324,508
------------------------------------------------------------------------------------------
Total assets 3,292,630 6,567,439 780,028 2,560,200 31,811,665 4,734,807 49,746,769
Withdrawals payable to participants 14,965 118,460 40,022 34,273 1,427,294 312,454 1,947,468
------------------------------------------------------------------------------------------
Net assets available for plan benefits $3,277,665 $6,448,979 $740,006 $2,525,927 $30,384,371 $4,422,353 $47,799,301
==========================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Schedule III - Changes in Net Assets Available for Plan Benefits
Year ended December 31, 1993
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Total
------------------------------------------------------------------------------------------
Investment income:
Net unrealized appreciation (depre-
ciation) in current value of
securities $ 572,085 $ 369,618 $ (30,254) $(2,184,687) $(1,273,238)
Net realized gain (loss) on security sales:
Common stock of New York State
Electric & Gas Corporation 44,022 44,022
Other 21,185 14,214 (1,207) 34,192
------------------------------------------------------------------------------------------
593,270 383,832 (31,461) (2,140,665) (1,195,024)
Dividends:
New York State Electric & Gas
Corporation 2,232,419 2,232,419
Other 206,710 678,852 86,457 $ 68,462 1,040,481
Interest on securities $ 259,723 259,723
Interest on loans to participants 5,861 16,342 2,494 6,830 75,561 107,088
------------------------------------------------------------------------------------------
805,841 1,079,026 57,490 75,292 167,315 259,723 2,444,687
Contributions:
Employer 1,177,250 1,177,250
Employee 1,284,695 1,289,058 463,056 675,717 4,514,929 8,227,455
Interfund transfers (net) 446,305 1,286,825 324,028 6,582 (1,824,342) (239,398) -0-
------------------------------------------------------------------------------------------
Total additions 2,536,841 3,654,909 844,574 757,591 4,035,152 20,325 11,849,392
------------------------------------------------------------------------------------------
Withdrawal benefits-stock 620,045 620,045
Withdrawal benefits-cash 12,286 78,891 2,794 50,954 72,304 217,229
Withdrawal benefits payable 219,591 381,037 24,055 47,795 248,654 15,567 936,699
Transfers to Salaried Plan 47,447 33,709 23,462 24,344 49,126 6,885 184,973
Trustee fees 15,789 15,789
------------------------------------------------------------------------------------------
Total deductions 279,324 493,637 50,311 123,093 917,825 110,545 1,974,735
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Schedule III - Changes in Net Assets Available for Plan Benefits
Year ended December 31, 1993
(Continued)
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Total
----------------------------------------------------------------------------------------
Net increase (decrease) 2,257,517 3,161,272 794,263 634,498 3,117,327 (90,220) 9,874,657
Net assets available for plan
benefits at beginning of year 3,277,665 6,448,979 740,006 2,525,927 30,384,371 4,422,353 47,799,301
----------------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year $5,535,182 $9,610,251 $1,534,269 $3,160,425 $33,501,698 $4,332,133 $57,673,958
========================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Schedule III - Changes in Net Assets Available for Plan Benefits
Year ended December 31, 1992
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Total
------------------------------------------------------------------------------------------
Investment income:
Net unrealized appreciation (depre-
ciation) in current value of
securities $ 145,148 $ 151,323 $ (3,258) $ 3,259,108 $ 3,552,321
Net realized gain on security sales:
Common stock of New York State
Electric & Gas Corporation 79,466 79,466
Other 5,913 24,041 2,749 32,703
------------------------------------------------------------------------------------------
151,061 175,364 (509) 3,338,574 3,664,490
Dividends:
New York State Electric & Gas
Corporation 1,792,905 1,792,905
Other 150,150 419,508 27,552 $ 48,424 645,634
Interest on securities $ 391,487 391,487
Interest on loans to participants 3,133 11,278 1,253 5,639 41,351 62,654
------------------------------------------------------------------------------------------
304,344 606,150 28,296 54,063 5,172,830 391,487 6,557,170
Contributions:
Employer 1,062,874 1,062,874
Employee 919,697 895,177 437,448 821,708 4,333,031 7,407,061
Interfund transfers (net) 1,060,261 877,590 343,167 597,839 835,604 (3,714,461) -0-
------------------------------------------------------------------------------------------
Total additions 2,284,302 2,378,917 808,911 1,473,610 11,404,339 (3,322,974) 15,027,105
Withdrawal benefits-stock 337,311 337,311
Withdrawal benefits-cash 42,038 46,861 13,800 25,146 124,136 251,981
Withdrawal benefits payable 14,437 76,097 40,022 22,707 910,803 43,586 1,107,652
Transfers to Salaried Plan 43,787 100,286 15,083 7,219 375,917 46,993 589,285
Trustee fees 25,104 25,104
------------------------------------------------------------------------------------------
Total deductions 100,262 223,244 68,905 55,072 1,624,031 239,819 2,311,333
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Schedule III - Changes in Net Assets Available for Plan Benefits
Year ended December 31, 1992
(Continued)
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Total
------------------------------------------------------------------------------------------
Net increase (decrease) 2,184,040 2,155,673 740,006 1,418,538 9,780,308 (3,562,793) 12,715,772
Net assets available for plan
benefits at beginning of year 1,093,625 4,293,306 -0- 1,107,389 20,604,063 7,985,146 35,083,529
------------------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year $3,277,665 $6,448,979 $740,006 $2,525,927 $30,384,371 $4,422,353 $47,799,301
==========================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Schedule III - Changes in Net Assets Available for Plan Benefits
Year ended December 31, 1991
Guaranteed
Capital Money Company Investment
Appreciation Equity Market Stock Contract
Fund Fund Fund Fund Fund Total
---------------------------------------------------------------------------------
Investment income:
Net unrealized appreciation
in current value of securities $ 182,689 $ 277,004 $ 2,091,709 $ 2,551,402
Net realized gain on security sales:
Common stock of New York State
Electric & Gas Corporation 7,401 7,401
Other 3,103 23,997 27,100
---------------------------------------------------------------------------------
185,792 301,001 2,099,110 2,585,903
Dividends:
New York State Electric & Gas
Corporation 1,274,062 1,274,062
Other 67,968 336,528 $ 60,161 464,657
Interest on securities $ 590,672 590,672
Interest on loans to participants 63 4,435 1,837 18,058 7,286 31,679
---------------------------------------------------------------------------------
253,823 641,964 61,998 3,391,230 597,958 4,946,973
Contributions:
Employer 464,588 464,588
Employee 307,750 661,174 227,447 3,734,039 1,443,791 6,374,201
Interfund transfers (net) 556,822 (118,521) (32,875) (64,277) (341,149) -0-
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Total additions 1,118,395 1,184,617 256,570 7,525,580 1,700,600 11,785,762
Withdrawal benefits-stock 339,381 339,381
Withdrawal benefits-cash 36,989 20,202 166,145 223,336
Withdrawal benefits payable 528 22,037 7,318 315,530 122,964 468,377
Transfers to Salaried Plan 24,242 17,907 6,290 221,423 63,396 333,258
Trustee fees 31,311 31,311
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Total deductions 24,770 76,933 33,810 876,334 383,816 1,395,663
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Schedule III - Changes in Net Assets Available for Plan Benefits
Year ended December 31, 1991
(Continued)
Guaranteed
Capital Money Company Investment
Appreciation Equity Market Stock Contract
Fund Fund Fund Fund Fund Total
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Net increase 1,093,625 1,107,684 222,760 6,649,246 1,316,784 10,390,099
Net assets available for plan
benefits at beginning of year -0- 3,185,622 884,629 13,954,817 6,668,362 24,693,430
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Net assets available for plan
benefits at end of year $1,093,625 $4,293,306 $1,107,389 $20,604,063 $7,985,146 $35,083,529
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Consent of Independent Auditors
We consent to the incorporation by reference in the Registration Statement
(Post-effective Amendment No. 1 to Form S-8 No. 33-31897) pertaining to the
New York State Electric & Gas Corporation Tax Deferred Savings Plan for Hourly
Paid Employees of our report dated February 18, 1994, with respect to the
financial statements and schedules of the New York State Electric & Gas
Corporation Tax Deferred Savings Plan for Hourly Paid Employees included in
this Annual Report (Form 11-K) for the year ended December 31, 1993.
Syracuse, New York Ernst & Young
March 7, 1994