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, 1994
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 Salaried Employees
Year ended December 31, 1994
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, 1994 ............................... F-10
Schedule I-Investments--December 31, 1993 ............................... F-11
Schedule II-Net Assets Available for Plan Benefits--December 31, 1994 ... F-12
Schedule II-Net Assets Available for Plan Benefits--December 31, 1993 ... F-14
Schedule III-Changes in Net Assets Available for Plan
Benefits--Year ended December 31, 1994 ............................... F-16
Schedule III-Changes in Net Assets Available for Plan
Benefits--Year ended December 31, 1993 ............................... F-20
Schedule III-Changes in Net Assets Available for Plan
Benefits--Year ended December 31, 1992 ............................... F-24
Consent of Independent Auditors ......................................... F-28
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Committee to administer the Tax Deferred Savings Plan for
Salaried 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 Salaried
Employees
By Richard P. Fagan
Richard P. Fagan
Date: March 10, 1995 Committee Member
By Sherwood J. Rafferty
Sherwood J. Rafferty
Date: March 10, 1995 Committee Member
By Carl E. Johnson
Carl E. Johnson
Date: March 10, 1995 Committee Member
REPORT OF INDEPENDENT AUDITORS
Tax Deferred Savings Plan for Salaried 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 Salaried Employees as
of December 31, 1994 and 1993, 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, 1994. 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 Salaried Employees at
December 31, 1994 and 1993, and the changes in its net assets
available for plan benefits for each of the three years in the
period ended December 31, 1994, 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 LLP
February 17, 1995
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Statements of Net Assets Available for Plan Benefits
December 31,
1994 1993
-----------------------
ASSETS
Investments (Notes 1 and 3 - Schedules I and II):
Guaranteed investment contracts $ 4,802,682 $ 5,143,036
Common stock of New York State Electric & Gas
Corporation (cost - 1994 - $28,364,904
1993 - $25,183,661) 22,058,781 29,814,803
Other (cost - 1994 - $37,473,497
1993 - $31,839,807) 38,839,809 34,976,020
-----------------------
65,701,272 69,933,859
Loans to participants (Note 2 and Schedule II) 2,556,481 2,624,627
-----------------------
Net assets available for plan benefits $68,257,753 $72,558,486
=======================
See notes to financial statements
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Statements of Changes in Net Assets Available for Plan Benefits
Year ended December 31,
1994 1993 1992
--------------------------------------
ADDITIONS (Notes 1, 2, and 3
and Schedule III)
Investment income:
Net unrealized (depreciation)
appreciation in current
value of securities $(12,707,259) $ 240,973 $ 3,813,895
Net realized gain (loss) on
security sales:
Common stock of New York
State Electric & Gas
Corporation (1,564,379) 160,094 108,756
Other (162,772) 108,161 56,645
---------------------------------------
(14,434,410) 509,228 3,979,296
Dividends:
New York State Electric & Gas
Corporation 2,064,361 2,103,495 1,863,115
Other cash dividends (including
capital gain distributions
from mutual funds of
$1,215,614 in 1994, $1,073,499
in 1993 and $713,257 in 1992) 2,039,396 1,833,245 1,171,944
---------------------------------------
4,103,757 3,936,740 3,035,059
Interest on securities 254,501 299,764 427,678
Interest on loans to participants 164,800 172,628 159,686
---------------------------------------
(9,911,352) 4,918,360 7,601,719
Contributions:
Employer 979,632 1,062,102 954,441
Employee 6,246,281 6,754,987 6,013,026
---------------------------------------
7,225,913 7,817,089 6,967,467
Transfers from other plan (Note 7) 3,564,839 1,009,165 627,118
Transfers from Hourly Plan 213,941 184,973 589,285
---------------------------------------
Total additions 1,093,341 13,929,587 15,785,589
DEDUCTIONS (Notes 2 and 6 and
Schedule III)
Withdrawal benefits-stock 2,180,166 585,716 487,607
Withdrawal benefits-cash 3,170,845 606,010 276,310
Administrative fees 43,063 18,258 27,380
---------------------------------------
Total deductions 5,394,074 1,209,984 791,297
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Statements of Changes in Net Assets Available for Plan Benefits
(Continued)
Year ended December 31,
1994 1993 1992
--------------------------------------
Net (decrease) increase (4,300,733) 12,719,603 14,994,292
Net assets available for plan
benefits at beginning of year 72,558,486 59,838,883 44,844,591
--------------------------------------
Net assets available for plan
benefits at end of year $68,257,753 $72,558,486 $59,838,883
======================================
See notes to financial statements
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Notes to Financial Statements
December 31, 1994, 1993, and 1992
1. SIGNIFICANT ACCOUNTING POLICIES
The New York State Electric & Gas Corporation Tax Deferred Savings Plan for
Salaried Employees (the Salaried Plan) was established effective January 1,
1985 to provide for before-tax contributions in accordance with Internal
Revenue Code (Code) Section 401(k). The Salaried 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 (depreciation) appreciation 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).
Certain amounts in the 1993 and 1992 financial statements have been
reclassified to conform to the 1994 presentation.
2. DESCRIPTION OF THE SALARIED PLAN
The Salaried 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 Salaried Plan provisions.
Contributions by the participants are invested, at the election of the
participant, in one or a combination of the following nine 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; (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; (6)
the Global Growth Fund, a mutual fund, consisting primarily of U.S. and
international common stocks; or (7) the three Asset Allocation funds, which
invest primarily among equities and fixed income securities. 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
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Notes to Financial Statements (Continued)
2. DESCRIPTION OF THE SALARIED PLAN (Continued)
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.
An employee not covered by a collective bargaining agreement is eligible for
participation in the Salaried Plan generally upon completion of at least 1,000
hours of service during the 12 consecutive month period beginning on the date
of employment or any anniversary thereof.
Employee contributions, with certain exceptions, range from 1% to 15% of the
participant's base compensation plus any overtime pay. A participant's total
contribution could not exceed $9,240 per year in 1994, $8,994 per year in 1993,
and $8,728 per year in 1992 (excluding any Company contributions). The maximum
amount has been increased annually for inflation.
During 1994, 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).
Contributions are also subject to limitations stipulated by the Code.
Contributions to the Salaried Plan are allocated to participant accounts.
Participants have full and immediate vesting rights in all contributions,
Salaried Plan earnings, and other amounts allocated to their accounts.
Effective July 1, 1994, changes in investment choices and transfers among funds
(other than the Guaranteed Investment Contract Fund and the Company's
contribution to the Company Stock Fund) are made directly between the
participant and the trustee and may be made at any time. Previously, changes
in investment choices and transfers could be made 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, Guaranteed Investment Contract Fund, Global
Growth Fund, and the Asset Allocation Funds 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 Salaried Plan's administrative
committee.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Notes to Financial Statements (Continued)
2. DESCRIPTION OF THE SALARIED 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 Salaried Plan document. The term of the loan may not exceed
five years, and the interest rate as established by the Salaried 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 Salaried Plan's administrative committee provides the Salaried 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 Salaried Plan sponsor has the right to discontinue contributions at any
time and terminate the Salaried Plan. In the event of termination of the
Salaried Plan, the net assets of the Salaried Plan are set aside, first for
payment of all Salaried Plan expenses and, second, for distribution to the
participants, based upon the balances in their individual accounts.
3. INVESTMENTS
The Salaried Plan's investments (including investments bought, sold, and held)
appreciated (depreciated) in fair value as follows:
Year ended December 31,
1994 1993 1992
--------------------------------------
Capital Appreciation Fund $ (508,430) $1,326,429 $ 325,350
Equity Fund (1,127,116) 648,867 302,548
Government Obligation Fund (280,862) (57,267) (392)
Money Market Fund - - -
Company Stock Fund (12,501,740) (1,408,801) 3,351,790
Guaranteed Investment Contract Fund - - -
Global Growth Fund (12,597) - -
Asset Allocation Growth Portfolio (3,298) - -
Asset Allocation Balanced Portfolio (65) - -
Asset Allocation Conservative
Portfolio (302) - -
--------------------------------------
$(14,434,410) $ 509,228 $3,979,296
======================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Notes to Financial Statements (Continued)
3. INVESTMENTS (Continued)
Realized (losses) gains on security
sales resulted from the following:
Year ended December 31, 1994
--------------------------------------
Aggregate Aggregate Net Realized
Cost Proceeds (Loss)
--------------------------------------
Common stock of New York State
Electric & Gas Corporation $6,655,971 $5,091,592 $(1,564,379)
Other 5,596,442 5,433,670 (162,772)
Year ended December 31, 1993
--------------------------------------
Aggregate Aggregate Net Realized
Cost Proceeds Gain
--------------------------------------
Common stock of New York State
Electric & Gas Corporation $6,367,659 $6,527,753 $ 160,094
Other 1,782,833 1,890,994 108,161
Year ended December 31, 1992
--------------------------------------
Aggregate Aggregate Net Realized
Cost Proceeds Gain
--------------------------------------
Common stock of New York State
Electric & Gas Corporation $3,987,968 $4,096,724 $ 108,756
Other 544,264 600,909 56,645
4. INCOME TAX STATUS
The Company has received a determination letter from the Internal Revenue
Service that the Salaried Plan qualifies as a tax deferred savings plan under
Sections 401(a) and 401(k) of the Code.
The Prospectus for the Salaried Plan and other materials provided to
participants include a discussion of the income tax rules applicable to
participants with respect to the Salaried Plan.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Notes to Financial Statements (Continued)
5. PARTICIPANTS
At December 31, 1994, 1993, and 1992, respectively, there were 2,070, 1,704,
and 1,883 participants in one or more funds as follows:
1994 1993 1992
----------------------
Capital Appreciation Fund 1,172 1,050 846
Equity Fund 1,209 1,144 935
Government Obligation Fund 470 452 372
Money Market Fund 691 654 620
Company Stock Fund 1,690 1,661 1,540
Guaranteed Investment Contract Fund 513 533 582
Global Growth Fund 182 - -
Asset Allocation - Growth Portfolio 53 - -
Asset Allocation - Balanced Portfolio 44 - -
Asset Allocation - Conservative Portfolio 10 - -
6. TRANSACTIONS WITH PARTIES-IN-INTEREST
Prior to 1994, trustee fees related to the Guaranteed Investment Contract Fund
were paid by the Salaried Plan, and all other administrative costs of the
Salaried Plan were paid by the Company. Beginning in 1994, all fees are paid
by the Salaried Plan.
7. TRANSFERS FROM OTHER PLAN
During 1994, 1993, and 1992, respectively, participants elected to transfer
135,889, 41,497, and 26,676 shares of Company stock (cost: $3,551,225 in 1994,
$1,009,165 in 1993, and $627,118 in 1992) from the New York State Electric &
Gas Corporation Tax Reduction Act Employee Stock Ownership Plan to the Salaried
Plan.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Schedule I - Investments
December 31, 1994
Balance Held at Market
Name of Issuer and Title of Issue End of Year Cost Value
- ------------------------------------------------------------------------------
Capital Appreciation Fund
Putnam Voyager Fund 1,290,766 shares $13,200,892 $14,869,619
Equity Fund
Putnam Fund for Growth and Income 1,347,789 shares 17,169,778 17,143,871
Government Obligation Fund
Putnam U.S. Government Income Trust 216,978 shares 2,905,210 2,644,963
Money Market Fund
Putnam Money Market Fund 3,241,692 shares 3,241,692 3,241,692
Global Growth Fund 48,635 shares 461,014 448,417
Asset Allocation - Growth Portfolio 34,099 shares 287,003 283,706
Asset Allocation - Balanced Portfolio 11,011 shares 90,797 90,733
Asset Allocation - Conservative
Portfolio 14,385 shares 117,111 116,808
-----------------------
Total $37,473,497 $38,839,809
=======================
Company Stock Fund
New York State Electric & Gas
Corporation common stock 1,160,988 shares $28,364,904 $22,058,781
=======================
Guaranteed Investment Contracts $4,802,682 $4,802,682
=======================
Loans to participants (interest rate 6 1/2% to 9%) $2,556,481 $2,556,481
=======================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 1,048,467 shares $10,440,029 $12,571,119
Equity Fund
Putnam Fund for Growth & Income 1,218,471 shares 15,507,123 16,571,206
Government Obligation Fund
Putnam U.S.Government Income
Trust 217,101 shares 2,978,973 2,920,013
Money Market Fund
Putnam Money Market Fund 2,913,682 shares 2,913,682 2,913,682
------------------------
Total $31,839,807 $34,976,020
========================
Company Stock Fund
New York State Electric & Gas
Corporation common stock 969,587 shares $25,183,661 $29,814,803
========================
Guaranteed Investment Contracts $ 5,143,036 $ 5,143,036
========================
Loans to participants (interest rate 6 1/2% to 7%) $ 2,624,627 $ 2,624,627
========================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Schedule II - Net Assets Available for Plan Benefits
December 31, 1994
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
----------------------------------------------------------------------------------------
Guaranteed investment contracts $4,802,682 $ 4,802,682
Investments:
Common stock of New York State
Electric & Gas Corporation $22,058,781 22,058,781
Other $14,869,619 $17,143,871 $2,644,963 $3,241,692 37,900,145
Loans to participants
----------------------------------------------------------------------------------------
Net assets available for plan benefits $14,869,619 $17,143,871 $2,644,963 $3,241,692 $22,058,781 $4,802,682 $64,761,608
========================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Schedule II - Net Assets Available for Plan Benefits (continued)
December 31, 1994
Asset Asset Asset
Subtotal Global Allocation Allocation Allocation
Brought Growth Growth Balanced Conservative Loan
Forward Fund Portfolio Portfolio Portfolio Fund Total
-----------------------------------------------------------------------------------
Guaranteed investment contracts $ 4,802,682 $ 4,802,682
Investments:
Common stock of New York State
Electric & Gas Corporation 22,058,781 22,058,781
Other 37,900,145 $448,417 $283,706 $90,733 $116,808 38,839,809
Loans to participants $2,556,481 2,556,481
-----------------------------------------------------------------------------------
Net assets available
for plan benefits $64,761,608 $448,417 $283,706 $90,733 $116,808 $2,556,481 $68,257,753
===================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 Subtotal
---------------------------------------------------------------------------------------
Guaranteed investment contracts $5,143,036 $ 5,143,036
Investments:
Common stock of New York State
Electric & Gas Corporation $29,814,803 29,814,803
Other $12,571,119 $16,571,206 $2,920,013 $2,913,682 34,976,020
Loans to participants
---------------------------------------------------------------------------------------
Net assets available
for plan benefits $12,571,119 $16,571,206 $2,920,013 $2,913,682 $29,814,803 $5,143,036 $69,933,859
=======================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Schedule II - Net Assets Available for Plan Benefits (Continued)
December 31, 1993
Subtotal
Brought Loan
Forward Fund Total
------------------------------------
Guaranteed investment contracts $ 5,143,036 $ 5,143,036
Investments:
Common stock of New York State
Electric & Gas Corporation 29,814,803 29,814,803
Other 34,976,020 34,976,020
Loans to participants $2,624,627 2,624,627
------------------------------------
Net assets available
for plan benefits $69,933,859 $2,624,627 $72,558,486
====================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Schedule III - Changes in Net Assets Available for Plan Benefits
Year ended December 31, 1994
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
-----------------------------------------------------------------------------------------
Investment income:
Net unrealized (depreciation)
in current value of securities $ (462,361) $(1,089,989) $ (201,286) $(10,937,361) $(12,690,997)
Net realized (loss) on security
sales:
Common stock of New York State
Electric & Gas Corporation (1,564,379) (1,564,379)
Other (46,069) (37,127) (79,576) (162,772)
-----------------------------------------------------------------------------------------
(508,430) (1,127,116) (280,862) (12,501,740) (14,418,148)
Dividends:
New York State Electric & Gas
Corporation 2,064,361 2,064,361
Other 625,013 1,077,156 206,037 $114,385 2,022,591
Interest on securities $254,501 254,501
Interest on loans to participants
-----------------------------------------------------------------------------------------
116,583 (49,960) (74,825) 114,385 (10,437,379) 254,501 (10,076,695)
Contributions:
Employer 979,632 979,632
Employee 1,927,114 1,688,660 390,000 280,503 1,920,860 6,207,137
Transfers from other plan 3,564,839 3,564,839
Transfers from Hourly Plan 29,009 44,295 2,075 17,982 114,660 5,920 213,941
Interfund transfers (net) 888,022 231,477 (159,383) 304,397 (1,703,361) (228,183) (667,031)
-----------------------------------------------------------------------------------------
Total additions 2,960,728 1,914,472 157,867 717,267 (5,560,749) 32,238 221,823
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Schedule III - Changes in Net Assets Available for Plan Benefits
Year ended December 31, 1994
(Continued)
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
----------------------------------------------------------------------------------------
Withdrawal benefits-stock 2,180,166 2,180,166
Withdrawal benefits-cash 657,217 1,336,302 431,999 387,785 357,542 3,170,845
Administrative fees 5,011 5,505 918 1,472 15,107 15,050 43,063
-----------------------------------------------------------------------------------------
Total deductions 662,228 1,341,807 432,917 389,257 2,195,273 372,592 5,394,074
-----------------------------------------------------------------------------------------
Net increase (decrease) 2,298,500 572,665 (275,050) 328,010 (7,756,022) (340,354) (5,172,251)
Net assets available for plan
benefits at beginning of year 12,571,119 16,571,206 2,920,013 2,913,682 29,814,803 5,143,036 69,933,859
-----------------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year $14,869,619 $17,143,871 $2,644,963 $3,241,692 $22,058,781 $4,802,682 $64,761,608
=========================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Schedule III - Changes in Net Assets Available for Plan Benefits (Continued)
Year Ended December 31, 1994
Asset Asset Asset
Subtotal Global Allocation Allocation Allocation
Brought Growth Growth Balanced Conservative Loan
Forward Fund Portfolio Portfolio Portfolio Fund Total
-------------------------------------------------------------------------------------------
Investment income:
Net unrealized (depreciation)
in current value of securities $(12,690,997) $(12,597) $ (3,298) $ (65) $ (302) $(12,707,259)
Net realized (loss) on security
sales:
Common stock of New York State
Electric & Gas Corporation (1,564,379) (1,564,379)
Other (162,772) (162,772)
-----------------------------------------------------------------------------------------
(14,418,148) (12,597) (3,298) (65) (302) (14,434,410)
Dividends:
New York State Electric & Gas
Corporation 2,064,361 2,064,361
Other 2,022,591 12,753 2,333 452 1,267 2,039,396
Interest on securities 254,501 254,501
Interest on loans to participants $164,800 164,800
----------------------------------------------------------------------------------------
(10,076,695) 156 (965) 387 965 164,800 (9,911,352)
Contributions:
Employer 979,632 979,632
Employee 6,207,137 20,157 10,134 7,362 1,491 6,246,281
Transfers from other plan 3,564,839 3,564,839
Transfers from Hourly Plan 213,941 213,941
Interfund transfers (net) (667,031) 428,104 274,537 82,984 114,352 (232,946) 0
----------------------------------------------------------------------------------------
Total additions 221,823 448,417 283,706 90,733 116,808 (68,146) 1,093,341
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Schedule III - Changes in Net Assets Available for Plan Benefits (Continued)
Year ended December 31, 1994
(Continued)
Asset Asset Asset
Subtotal Global Allocation Allocation Allocation
Brought Growth Growth Balanced Conservative Loan
Forward Fund Portfolio Portfolio Portfolio Fund Total
---------------------------------------------------------------------------------------
Withdrawal benefits-stock 2,180,166 2,180,166
Withdrawal benefits-cash 3,170,845 3,170,845
Administrative fees 43,063 43,063
--------------------------------------------------------------------------------------
Total deductions 5,394,074 5,394,074
--------------------------------------------------------------------------------------
Net (decrease) increase (5,172,251) 448,417 283,706 90,733 116,808 (68,146) (4,300,733)
Net assets available for plan
benefits at beginning of year 69,933,859 2,624,627 72,558,486
----------------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year $64,761,608 $ 448,417 $283,706 $90,733 $116,808 $2,556,481 $68,257,753
========================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 Subtotal
------------------------------------------------------------------------------------------
Investment income:
Net unrealized appreciation
(depreciation) in current
value of securities $ 1,274,271 $ 591,753 $ (56,156) $(1,568,895) $ 240,973
Net realized gain (loss) on
security sales:
Common stock of New York State
Electric & Gas Corporation 160,094 160,094
Other 52,158 57,114 (1,111) 108,161
-----------------------------------------------------------------------------------------
1,326,429 648,867 (57,267) (1,408,801) 509,228
Dividends:
New York State Electric & Gas
Corporation 2,103,495 2,103,495
Other 456,645 1,153,634 163,085 $ 59,881 1,833,245
Interest on securities $ 299,764 299,764
Interest on loans to participants
-----------------------------------------------------------------------------------------
1,783,074 1,802,501 105,818 59,881 694,694 299,764 4,745,732
Contributions:
Employer 1,062,102 1,062,102
Employee 1,614,407 1,469,234 587,474 360,223 2,723,649 6,754,987
Transfers from other plan 1,009,165 1,009,165
Transfers from Hourly Plan 47,447 33,709 23,462 24,344 49,126 6,885 184,973
Interfund transfers (net) 1,605,851 2,510,144 750,035 482,905 (5,196,386) (360,896) (208,347)
-----------------------------------------------------------------------------------------
Total additions 5,050,779 5,815,588 1,466,789 927,353 342,350 (54,247) 13,548,612
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 Subtotal
-----------------------------------------------------------------------------------------
Withdrawal benefits-stock 585,716 585,716
Withdrawal benefits-cash 157,853 341,652 26,200 32,887 47,418 606,010
Administrative fees 18,258 18,258
-----------------------------------------------------------------------------------------
Total deductions 157,853 341,652 26,200 32,887 585,716 65,676 1,209,984
-----------------------------------------------------------------------------------------
Net increase (decrease) 4,892,926 5,473,936 1,440,589 894,466 (243,366) (119,923) 12,338,628
Net assets available for plan
benefits at beginning of year 7,678,193 11,097,270 1,479,424 2,019,216 30,058,169 5,262,959 57,595,231
-----------------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year $12,571,119 $16,571,206 $2,920,013 $2,913,682 $29,814,803 $5,143,036 $69,933,859
=========================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Schedule III - Changes in Net Assets Available for Plan Benefits (Continued)
Year Ended December 31, 1993
Subtotal
Brought Loan
Forward Fund Total
-------------------------------------
Investment income:
Net unrealized appreciation
(depreciation) in current
value of securities $ 240,973 $ 240,973
Net realized gain (loss) on
security sales:
Common stock of New York State
Electric & Gas Corporation 160,094 160,094
Other 108,161 108,161
--------------------------------------
509,228 509,228
Dividends:
New York State Electric & Gas
Corporation 2,103,495 2,103,495
Other 1,833,245 1,833,245
Interest on securities 299,764 299,764
Interest on loans to participants $ 172,628 172,628
--------------------------------------
4,745,732 172,628 4,918,360
Contributions:
Employer 1,062,102 1,062,102
Employee 6,754,987 6,754,987
Transfers from other plan 1,009,165 1,009,165
Transfers from Hourly Plan 184,973 184,973
Interfund transfers (net) (208,347) 208,347 0
-------------------------------------
Total additions 13,548,612 380,975 13,929,587
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Schedule III - Changes in Net Assets Available for Plan Benefits (Continued)
Year Ended December 31, 1993
(Continued)
Subtotal
Brought Loan
Forward Fund Total
-------------------------------------
Withdrawal benefits-stock 585,716 585,716
Withdrawal benefits-cash 606,010 606,010
Administrative fees 18,258 18,258
-------------------------------------
Total deductions 1,209,984 1,209,984
-------------------------------------
Net increase (decrease) 12,338,628 380,975 12,719,603
Net assets available for plan
benefits at beginning of year 57,595,231 2,243,652 59,838,883
-------------------------------------
Net assets available for plan
benefits at end of year $69,933,859 $2,624,627 $72,558,486
=====================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 Subtotal
------------------------------------------------------------------------------------------
Investment income:
Net unrealized appreciation
(depreciation) in current
value of securities $ 303,883 $ 269,782 $ (2,804) $ 3,243,034 $ 3,813,895
Net realized gain on security
sales:
Common stock of New York State
Electric & Gas Corporation 108,756 108,756
Other 21,467 32,766 2,412 56,645
------------------------------------------------------------------------------------------
325,350 302,548 (392) 3,351,790 3,979,296
Dividends:
New York State Electric & Gas
Corporation 1,863,115 1,863,115
Other 342,848 723,073 62,148 $ 43,875 1,171,944
Interest on securities $ 427,678 427,678
Interest on loans to participants
------------------------------------------------------------------------------------------
668,198 1,025,621 61,756 43,875 5,214,905 427,678 7,442,033
Contributions:
Employer 954,441 954,441
Employee 1,257,525 914,491 590,636 403,276 2,847,098 6,013,026
Transfers from other plan 627,118 627,118
Transfers from Hourly Plan 43,787 100,286 15,083 7,219 383,582 39,328 589,285
Interfund transfers (net) 2,789,644 2,058,350 812,516 580,052 (3,231,806) (3,991,883) (983,127)
------------------------------------------------------------------------------------------
Total additions 4,759,154 4,098,748 1,479,991 1,034,422 6,795,338 (3,524,877) 14,642,776
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Schedule III - Changes in Net Assets Available for Plan Benefits (Continued)
Year ended December 31, 1992
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
--------------------------------------------------------------------------------------------
Withdrawal benefits-stock 487,607 487,607
Withdrawal benefits-cash 13,421 140,425 567 28,437 93,460 276,310
Administrative fees 27,380 27,380
--------------------------------------------------------------------------------------------
Total deductions 13,421 140,425 567 28,437 487,607 120,840 791,297
--------------------------------------------------------------------------------------------
Net increase (decrease) 4,745,733 3,958,323 1,479,424 1,005,985 6,307,731 (3,645,717) 13,851,479
Net assets available for plan
benefits at beginning of year 2,932,460 7,138,947 1,013,231 23,750,438 8,908,676 43,743,752
--------------------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year $ 7,678,193 $11,097,270 $1,479,424 $2,019,216 $30,058,169 $5,262,959 $57,595,231
============================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Schedule III - Changes in Net Assets Available for Plan Benefits (Continued)
Year ended December 31, 1992
Subtotal
Brought Loan
Forward Fund Total
------------------------------------
Investment income:
Net unrealized appreciation
(depreciation) in current
value of securities $ 3,813,895 $ 3,813,895
Net realized gain on security
sales:
Common stock of New York State
Electric & Gas Corporation 108,756 108,756
Other 56,645 56,645
------------------------------------
3,979,296 3,979,296
Dividends:
New York State Electric & Gas
Corporation 1,863,115 1,863,115
Other 1,171,944 1,171,944
Interest on securities 427,678 427,678
Interest on loans to participants $ 159,686 159,686
------------------------------------
7,442,033 159,686 7,601,719
Contributions:
Employer 954,441 954,441
Employee 6,013,026 6,013,026
Transfers from other plan 627,118 627,118
Transfers from Hourly Plan 589,285 589,285
Interfund transfers (net) (983,127) 983,127 0
------------------------------------
Total additions 14,642,776 1,142,813 15,785,589
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Schedule III - Changes in Net Assets Available for Plan Benefits (Continued)
Year Ended December 31, 1992
(Continued)
Subtotal
Brought Loan
Forward Fund Total
-------------------------------------
Withdrawal benefits-stock 487,607 487,607
Withdrawal benefits-cash 276,310 276,310
Administrative fees 27,380 27,380
-------------------------------------
Total deductions 791,297 791,297
-------------------------------------
Net increase (decrease) 13,851,479 1,142,813 14,994,292
Net assets available for plan
benefits at beginning of year 43,743,752 1,100,839 44,844,591
-------------------------------------
Net assets available for plan
benefits at end of year $57,595,231 $2,243,652 $59,838,883
=====================================
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 Salaried Employees of
our report dated February 17, 1995, with respect to the financial
statements and schedules of the New York State Electric & Gas
Corporation Tax Deferred Savings Plan for Salaried Employees
included in this Annual Report (Form 11-K) for the year ended
December 31, 1994.
Syracuse, New York Ernst & Young LLP
March 6, 1995