SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 11-K
/X/ ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1995
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ______ to ______
Commission File No.1-3103-2
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)
REQUIRED INFORMATION
The Tax Deferred Savings Plan for Hourly Paid Employees ("Plan")
is subject to the Employee Retirement Income Security Act of 1974
("ERISA"). Therefore, in lieu of the requirements of Items 1-3
of Form 11-K, the financial statements and schedules of the Plan
for the two fiscal years ended December 31, 1995 and 1994, which
have been prepared in accordance with the financial reporting
requirements of ERISA, are attached hereto as Appendix 1 and
incorporated herein by this reference.
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 R. Benson June 11, 1996
Richard R. Benson
Committee Member
By Gerald E. Putman June 11, 1996
Gerald E. Putman
Committee Member
By Sherwood J. Rafferty June 11, 1996
Sherwood J. Rafferty
Committee Member
APPENDIX 1
NEW YORK STATE ELECTRIC & GAS CORPORATION
TAX DEFERRED SAVINGS PLAN FOR HOURLY PAID EMPLOYEES
FINANCIAL STATEMENTS AS OF AND
FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994,
SUPPLEMENTAL SCHEDULES AS OF AND FOR THE YEAR ENDED
DECEMBER 31, 1995 AND INDEPENDENT AUDITORS' REPORT
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Year ended December 31, 1995
INDEX
Report of Independent Auditors .......................................... F-1
Statements of Net Assets Available for Benefits, With Fund
Information--December 31, 1995.........................................F-2
Statements of Net Assets Available for Benefits, With Fund
Information--December 31, 1994.........................................F-4
Statement of Changes in Net Assets Available for Benefits, With
Fund Information--Year ended December 31, 1995........................ F-6
Statement of Changes in Net Assets Available for Benefits, With
Fund Information--Year ended December 31, 1994........................ F-10
Statement of Changes in Net Assets Available for Benefits, With
Fund Information--Year ended December 31, 1993.........................F-14
Notes to Financial Statements.............................................F-18
Schedule of Assets Held for Investment Purposes--December 31, 1995........F-24
Schedule of Reportable Transactions--Year ended December 31, 1995........ F-25
Consent of Independent Auditors ......................................... F-26
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 benefits of the New York State Electric & Gas
Corporation Tax Deferred Savings Plan for Hourly Paid Employees
as of December 31, 1995 and 1994, and the related statements of
changes in net assets available for benefits for each of the
three years in the period ended December 31, 1995. These
financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these
financial statements 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 benefits of the New York State Electric & Gas
Corporation Tax Deferred Savings Plan for Hourly Paid Employees
at December 31, 1995 and 1994, and the changes in its net assets
available for benefits for each of the three years in the period
ended December 31, 1995, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion
on the financial statements taken as a whole. The accompanying
supplemental schedules of assets held for investment purposes as
of December 31, 1995 and reportable transactions for the year
ended December 31, 1995 are presented for purposes of complying
with the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974, and are not a required part of the
financial statements. The Fund Information in the statements of
net assets available for benefits and the statements of changes
in net assets available for benefits is presented for purposes of
additional analysis rather than to present the net assets
available for benefits and changes in net assets available for
benefits of each fund. The supplemental schedules and Fund
Information have been subjected to the auditing procedures
applied in our audits of the financial statements and, in our
opinion, are fairly stated in all material respects in relation
to the financial statements taken as a whole.
Ernst & Young LLP
Syracuse, New York
April 17, 1996
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statements of Net Assets Available for Benefits, with Fund Information
December 31, 1995
Fund Information
-----------------------------------------------------------------------------------------
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
-----------------------------------------------------------------------------------------
Assets
Investments (Notes 1 and 3):
Guaranteed investment contracts $3,129,923 $ 3,129,923
Common stock of New York State
Electric & Gas Corporation
(cost - $36,994,631) $37,115,333 37,115,333
Other (cost - $33,596,629) $13,894,560 $17,371,729 $2,138,010 $4,422,847 37,827,146
Loans to participants (Note 2)
----------------------------------------------------------------------------------------
Net assets available for benefits $13,894,560 $17,371,729 $2,138,010 $4,422,847 $37,115,333 $3,129,923 $78,072,402
========================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statements of Net Assets Available for Benefits, With Fund Information (Continued)
December 31, 1995
Fund Information
-----------------------------------------------------------------------
Asset Asset Asset
Subtotal Global Allocation Allocation Allocation
Brought Growth Growth Balanced Conservative Loan
Forward Fund Portfolio Portfolio Portfolio Fund Total
------------------------------------------------------------------------------------
Assets
Investments (Notes 1 and 3):
Guaranteed investment contracts $ 3,129,923 $ 3,129,923
Common stock of New York State
Electric & Gas Corporation 37,115,333
(cost - $36,994,631) 37,115,333
Other (cost - $33,596,629) 37,827,146 $918,554 $393,831 $433,455 $172,634 39,745,620
Loans to participants (Note 2) $2,816,260 2,816,260
------------------------------------------------------------------------------------
Net assets available for benefits $78,072,402 $918,554 $393,831 $433,455 $172,634 $2,816,260 $82,807,136
====================================================================================
See notes to financial statements.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statements of Net Assets Available for Benefits, With Fund Information
December 31, 1994
Fund Information
----------------------------------------------------------------------------------------
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
----------------------------------------------------------------------------------------
Assets
Investments (Notes 1 and 3):
Guaranteed investment contracts $4,060,365 $ 4,060,365
Common stock of New York State
Electric & Gas Corporation
(cost - $33,692,179) $24,655,111 24,655,111
Other (cost - $23,206,125) $7,304,863 $10,630,168 $1,689,004 $3,566,848 23,190,883
Loans to participants (Note 2)
----------------------------------------------------------------------------------------
Net assets available for benefits $7,304,863 $10,630,168 $1,689,004 $3,566,848 $24,655,111 $4,060,365 $51,906,359
========================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statements of Net Assets Available for Benefits, With Fund Information (Continued)
December 31, 1994
Fund Information
----------------------------------------------------------------------
Asset Asset Asset
Subtotal Global Allocation Allocation Allocation
Brought Growth Growth Balanced Conservative Loan
Forward Fund Portfolio Portfolio Portfolio Fund Total
------------------------------------------------------------------------------------
Assets
Investments (Notes 1 and 3)
Guaranteed investment contracts $ 4,060,365 $ 4,060,365
Common stock of New York State
Electric & Gas Corporation
(cost - $33,692,179) 24,655,111 24,655,111
Other (cost - $23,206,125) 23,190,883 $172,722 $146,419 $148,765 $33,381 23,692,170
Loans to participants (Note 2) $2,372,211 2,372,211
------------------------------------------------------------------------------------
Net assets available for benefits $51,906,359 $172,722 $146,419 $148,765 $33,381 $2,372,211 $54,779,857
====================================================================================
See notes to financial statements.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statement of Changes in Net Assets Available for Benefits, With Fund Information
Year ended December 31, 1995
Fund Information
----------------------------------------------------------------------------------------
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
-----------------------------------------------------------------------------------------
Additions (Notes 1,2, and 3)
Investment income:
Net unrealized appreciation in
current value of securities $ 2,491,852 $ 2,933,993 $ 129,649 $ 9,157,770 $14,713,264
Net realized gain on security sales:
Common stock of New York State
Electric & Gas Corporation 289,188 289,188
Other 180,677 207,988 20,039 408,704
-----------------------------------------------------------------------------------------
2,672,529 3,141,981 149,688 9,446,958 15,411,156
Dividends:
New York State Electric & Gas
Corporation 1,931,882 1,931,882
Other (including capital gain
distributions from mutual
funds of $1,326,840) 731,094 1,096,406 135,853 $ 235,120 2,198,473
Interest on securities $ 229,574 229,574
Interest on loans to participants
-----------------------------------------------------------------------------------------
3,403,623 4,238,387 285,541 235,120 11,378,840 229,574 19,771,085
Contributions:
Employer 1,203,833 1,203,833
Employee 2,010,430 1,856,322 366,511 657,528 3,037,305 7,928,096
Interfund transfers (net) 1,362,393 844,623 (112,292) 97,996 (2,140,885) (1,035,648) (983,813)
-----------------------------------------------------------------------------------------
Total additions 6,776,446 6,939,332 539,760 990,644 13,479,093 (806,074) 27,919,201
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statement of Changes in Net Assets Available for Benefits, With Fund Information
Year ended December 31, 1995
(Continued)
Fund Information
----------------------------------------------------------------------------------------
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
----------------------------------------------------------------------------------------
Balance brought forward $ 6,776,446 $ 6,939,332 $ 539,760 $ 990,644 $13,479,093 $ (806,074) $27,919,201
Deductions (Notes 2 and 6)
Withdrawal benefits - stock 840,410 840,410
Withdrawal benefits - cash 158,730 120,086 83,445 115,463 108,216 585,940
Transfers to Salaried Plan 19,625 67,960 5,597 13,487 122,130 3,128 231,927
Administrative fees 8,394 9,725 1,712 5,695 56,331 13,024 94,881
----------------------------------------------------------------------------------------
Total deductions 186,749 197,771 90,754 134,645 1,018,871 124,368 1,753,158
----------------------------------------------------------------------------------------
Net increase (decrease) 6,589,697 6,741,561 449,006 855,999 12,460,222 (930,442) 26,166,043
Net assets available for benefits
at beginning of year 7,304,863 10,630,168 1,689,004 3,566,848 24,655,111 4,060,365 51,906,359
----------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $13,894,560 $17,371,729 $2,138,010 $4,422,847 $37,115,333 $3,129,923 $78,072,402
========================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statement of Changes in Net Assets Available for Benefits, With Fund Information (Continued)
Year Ended December 31, 1995
Fund Information
------------------------------------------------------------------------
Asset Asset Asset
Subtotal Global Allocation Allocation Allocation
Brought Growth Growth Balanced Conservative Loan
Forward Fund Portfolio Portfolio Portfolio Fund Total
---------------------------------------------------------------------------------------
Additions (Notes 1,2, and 3)
Investment Income:
Net unrealized appreciation in
current value of securities $14,713,264 $ 28,849 $ 35,235 $ 37,648 $ 5,718 $14,820,714
Net realized gain on security sales:
Common stock of New York State
Electric & Gas Corporation 289,188 289,188
Other 408,704 3,421 4,537 1,825 204 418,691
---------------------------------------------------------------------------------------
15,411,156 32,270 39,772 39,473 5,922 15,528,593
Dividends:
New York State Electric & Gas
Corporation 1,931,882 1,931,882
Other (including capital gain
distributions from mutual
funds of $1,326,840) 2,198,473 48,804 16,246 22,705 7,054 2,293,282
Interest on securities 229,574 229,574
Interest on loans to participants - $ 175,288 175,288
---------------------------------------------------------------------------------------
19,771,085 81,074 56,018 62,178 12,976 175,288 20,158,619
Contributions:
Employer 1,203,833 1,203,833
Employee 7,928,096 274,617 100,226 136,526 24,254 8,463,719
Interfund transfers (net) (983,813) 405,793 105,107 86,143 102,090 284,680 0
---------------------------------------------------------------------------------------
Total additions 27,919,201 761,484 261,351 284,847 139,320 459,968 29,826,171
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statement of Changes in Net Assets Available for Benefits, With Fund Information (Continued)
Year Ended December 31, 1995
(Continued)
Fund Information
------------------------------------------------------------------------
Asset Asset Asset
Subtotal Global Allocation Allocation Allocation
Brought Growth Growth Balanced Conservative Loan
Forward Fund Portfolio Portfolio Portfolio Fund Total
--------------------------------------------------------------------------------------
Balance brought forward $27,919,201 $761,484 $261,351 $284,847 $139,320 $ 459,968 $29,826,171
Deductions (Notes 2 and 6)
Withdrawal benefits - stock 840,410 840,410
Withdrawal benefits - cash 585,940 14,750 141 600,831
Transfers to Salaried Plan 231 927 567 13,625 15,919 262,038
Administrative fees 94,881 335 173 157 67 95,613
--------------------------------------------------------------------------------------
Total deductions 1,753,158 15,652 13,939 157 67 15,919 1,798,892
--------------------------------------------------------------------------------------
Net increase (decrease) 26,166,043 745,832 247,412 284,690 139,253 444,049 28,027,279
Net assets available for benefits
at beginning of year 51,906,359 172,722 146,419 148,765 33,381 2,372,211 54,779,857
--------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $ 78,072,402 $918,554 $393,831 $433,455 $172,634 $2,816,260 $82,807,136
======================================================================================
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 Benefits, With Fund Information
Year ended December 31, 1994
Fund Information
-----------------------------------------------------------------------------------------
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
-----------------------------------------------------------------------------------------
Additions (Notes 1, 2, and 3)
Investment income:
Net unrealized (depreciation)
appreciation in current value
of securities $ (207,750) $ (661,506) $ (125,981) $(12,635,682) $(13,630,919)
Net realized (loss) on
security sales:
Common stock of New York State
Electric & Gas Corporation (1,052,387) (1,052,387)
Other (36,304) (27,667) (30,948) (94,919)
-----------------------------------------------------------------------------------------
(244,054) (689,173) (156,929) (13,688,069) (14,778,225)
Dividends:
New York State Electric & Gas
Corporation 2,354,526 2,354,526
Other (including capital gain
distributions from mutual
funds of $661,743) 306,520 654,044 116,951 $ 124,694 1,202,209
Interest on securities $ 210,436 210,436
Interest on loans to participants
-----------------------------------------------------------------------------------------
62,466 (35,129) (39,978) 124,694 (11,333,543) 210,436 (11,011,054)
Contributions:
Employer 1,163,703 1,163,703
Employee 1,676,097 1,675,697 409,845 548,153 3,635,850 7,945,642
Interfund transfers (net) 287,206 41,841 (85,404) 161,458 (1,018,466) (109,734) (723,099)
-----------------------------------------------------------------------------------------
Total additions 2,025,769 1,682,409 284,463 834,305 (7,552,456) 100,702 (2,624,808)
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statement of Changes in Net Assets Available for Benefits, with Fund Information
Year ended December 31, 1994
(Continued)
Fund Information
----------------------------------------------------------------------------------------
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
----------------------------------------------------------------------------------------
Balance brought forward $2,025,769 $ 1,682,409 $ 284,463 $ 834,305 $ (7,552,456) $ 100,702 $(2,624,808)
Deductions (Notes 2 and 6)
Withdrawal benefits - stock 1,593,540 1,593,540
Withdrawal benefits - cash 416,143 844,965 167,915 418,893 340,112 2,188,028
Transfers to Salaried Plan 29,009 44,295 2,075 17,982 114,660 5,920 213,941
Administrative fees 5,524 7,084 1,275 3,565 26,469 14,243 58,160
----------------------------------------------------------------------------------------
Total deductions 450,676 896,344 171,265 440,440 1,734,669 360,275 4,053,669
----------------------------------------------------------------------------------------
Net increase (decrease) 1,575,093 786,065 113,198 393,865 (9,287,125) (259,573) (6,678,477)
Net assets available for benefits
at beginning of year 5,729,770 9,844,103 1,575,806 3,172,983 33,942,236 4,319,938 58,584,836
----------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $7,304,863 $10,630,168 $1,689,004 $3,566,848 $ 24,655,111 $4,060,365 $ 51,906,359
========================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statement of Changes in Net Assets Available for Benefits, With Fund Information (Continued)
Year Ended December 31, 1994
Fund Information
------------------------------------------------------------------------
Asset Asset Asset
Subtotal Global Allocation Allocation Allocation
Brought Growth Growth Balanced Conservative Loan
Forward Fund Portfolio Portfolio Portfolio Fund Total
---------------------------------------------------------------------------------------
Additions (Notes 1,2, and 3)
Investment income:
Net unrealized (depreciation)
appreciation in current value
of securities $(13,630,919) $ (6,241) $ (153) $ 357 $ (380) $(13,637,336)
Net realized (loss) on security sales:
Common stock of New York State
Electric & Gas Corporation (1,052,387) (1,052,387)
Other (94,919) (413) (7) (9) (1) (95,349)
-------------------------------------------------------------------------------------
(14,778,225) (6,654) (160) 348 (381) (14,785,072)
Dividends:
New York State Electric & Gas
Corporation 2,354,526 2,354,526
Other (including capital gain
distributions from mutual funds
of $661,743) 1,202,209 5,334 1,100 885 346 1,209,874
Interest on securities 210,436 210,436
Interest on loans to participants $ 138,824 138,824
-------------------------------------------------------------------------------------
(11,011,054) (1,320) 940 1,233 (35) 138,824 (10,871,412)
Contributions:
Employer 1,163,703 1,163,703
Employee 7,945,642 17,477 7,630 10,665 1,696 7,983,110
Interfund transfers (net) (723,099) 156,565 137,849 136,867 31,720 260,098 0
---------------------------------------------------------------------------------------
Total additions (2,624,808) 172,722 146,419 148,765 33,381 398,922 (1,724,599)
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statement of Changes in Net Assets Available for Benefits, With Fund Information (Continued)
Year Ended December 31, 1994
(Continued)
Fund Information
----------------------------------------------------------------------
Asset Asset Asset
Subtotal Global Allocation Allocation Allocation
Brought Growth Growth Balanced Conservative Loan
Forward Fund Portfolio Portfolio Portfolio Fund Total
------------------------------------------------------------------------------------
Balance brought forward $ (2,624,808) $172,722 $ 146,419 $148,765 $33,381 $ 398,922 $(1,724,599)
Deductions (Notes 2 and 6)
Withdrawal benefits - stock 1,593,540 1,593,540
Withdrawal benefits - cash 2,188,028 2,188,028
Transfers to Salaried Plan 213,941 213,941
Administrative fees 58,160 58,160
--------------------------------------------------------------------------------------
Total deductions 4,053,669 4,053,669
--------------------------------------------------------------------------------------
Net increase (decrease) (6,678,477) 172,722 146,419 148,765 33,381 398,922 (5,778,268)
Net assets available for
benefits at beginning of year 58,584,836 - - - - 1,973,289 60,558,125
--------------------------------------------------------------------------------------
Net assets available for
benefits at end of year $ 51,906,359 $172,722 $146,419 $148,765 $33,381 $2,372,211 $54,779,857
======================================================================================
See notes to financial statements.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statement of Changes in Net Assets Available for Benefits, With Fund Information
Year ended December 31, 1993
Fund Information
-----------------------------------------------------------------------------------------
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
-----------------------------------------------------------------------------------------
Additions (Notes 1, 2, and 3)
Investment income:
Net unrealized appreciation
(depreciation) 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 (including capital gain
distributions from mutual
funds of $571,150) 206,710 678,852 86,457 $ 68,462 1,040,481
Interest on securities $ 259,723 259,723
Interest on loans to participants
-----------------------------------------------------------------------------------------
799,980 1,062,684 54,996 68,462 91,754 259,723 2,337,599
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) 432,328 1,261,576 317,779 3,659 (2,253,353) (303,682) (541,693)
-----------------------------------------------------------------------------------------
Total additions 2,517,003 3,613,318 835,831 747,838 3,530,580 (43,959) 11,200,611
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statement of Changes in Net Assets Available for Benefits, With Fund Information
Year ended December 31, 1993
(Continued)
Fund Information
----------------------------------------------------------------------------------------
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
----------------------------------------------------------------------------------------
Balance brought forward $2,517,003 $3,613,318 $ 835,831 $ 747,838 $ 3,530,580 $ (43,959) $11,200,611
Deductions (Notes 2 and 6)
Withdrawal benefits - stock 620,045 620,045
Withdrawal benefits - cash 12,286 78,891 2,794 50,954 72,304 217,229
Transfers to Salaried Plan 47,447 33,709 23,462 24,344 49,126 6,885 184,973
Administrative fees 15,789 15,789
----------------------------------------------------------------------------------------
Total deductions 59,733 112,600 26,256 75,298 669,171 94,978 1,038,036
----------------------------------------------------------------------------------------
Net increase (decrease) 2,457,270 3,500,718 809,575 672,540 2,861,409 (138,937) 10,162,575
Net assets available for benefits
at beginning of year 3,272,500 6,343,385 766,231 2,500,443 31,080,827 4,458,875 48,422,261
----------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $5,729,770 $9,844,103 $1,575,806 $3,172,983 $33,942,236 $4,319,938 $58,584,836
========================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statement of Changes in Net Assets Available for Benefits, With Fund Information (Continued)
Year Ended December 31, 1993
Fund Information
-------------------------
Subtotal
Brought Loan
Forward Fund Total
--------------------------------------
Additions (Notes 1, 2, and 3)
Investment income:
Net unrealized appreciation
(depreciation) in current
value of securities $(1,273,238) $(1,273,238)
Net realized gain (loss) on
security sales:
Common stock of New York State
Electric & Gas Corporation 44,022 44,022
Other 34,192 34,192
--------------------------------------
(1,195,024) (1,195,024)
Dividends:
New York State Electric & Gas
Corporation 2,232,419 2,232,419
Other (including capital gain
distributions from mutual
funds of $571,150) 1,040,481 1,040,481
Interest on securities 259,723 259,723
Interest on loans to participants $ 107,088 107,088
--------------------------------------
2,337,599 107,088 2,444,687
Contributions:
Employer 1,177,250 1,177,250
Employee 8,227,455 8,227,455
Interfund transfers (net) (541,693) 541,693 0
--------------------------------------
Total additions 11,200,611 648,781 11,849,392
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statement of Changes in Net Assets Available for Benefits, With Fund Information (Continued)
Year Ended December 31, 1993
(Continued)
Fund Information
-----------------------
Subtotal
Brought Loan
Forward Fund Total
-------------------------------------
Balance brought forward $11,200,611 $ 648,781 $11,849,392
Deductions (Notes 2 and 6)
Withdrawal benefits - stock 620,045 620,045
Withdrawal benefits - cash 217,229 217,229
Transfers to Salaried Plan 184,973 184,973
Administrative fees 15,789 15,789
-------------------------------------
Total deductions 1,038,036 1,038,036
-------------------------------------
Net increase (decrease) 10,162,575 648,781 10,811,356
Net assets available for benefits
at beginning of year 48,422,261 1,324,508 49,746,769
-------------------------------------
Net assets available for benefits
at end of year $58,584,836 $1,973,289 $60,558,125
=====================================
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, 1995, 1994, and 1993
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
approximates fair market 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 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).
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liablilities and disclosure of
contingent assets and liabilities at the date of the financial statements.
Estimates also affect the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
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 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
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)
international common stocks; or (7) the three Asset Allocation Funds,
consisting primarily of equity 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 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 covered by a collective bargaining agreement is eligible for
participation in the Hourly Plan generally upon completion of at least 1,000
hours of service during the 12 consecutive month period begining 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 1995 and 1994, $8,994 per year
in 1993, (excluding any Company contributions). The maximum amount is
increased from time to time for inflation.
During 1995, 1994 and 1993, 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 as of the first day
of the year).
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.
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
from the Guaranteed Investment Contract Fund (with the exception of amounts
related to 1987 contributions) were made only 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.
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)
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 Hourly Plan's administrative
committee.
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 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. Interest rates range
from 6.5% to 10.5%. 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 fair value of individual investments that represent 5% or more of the
Hourly Paid Plan's net assets are as follows:
December 31,
1995 1994
--------------------------
Company Stock Fund:
New York State Electric & Gas Corporation $37,115,333 $24,655,111
common stock
Capital Appreciation Fund:
Putnam Voyager Fund 13,894,560 7,304,863
Equity Fund:
Putnam Fund for Growth and Income 17,371,729 10,630,168
Money Market Fund:
Putnam Money Market Fund 4,422,847 3,566,848
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Notes to Financial Statements (Continued)
3. INVESTMENTS (Continued)
The Hourly Plan's investment (including investments bought, sold, and held)
appreciated (depreciated) in fair value as follows:
Year ended December 31,
1995 1994 1993
----------------------------------------
Capital Appreciation Fund $ 2,672,529 $ (244,054) $ 593,270
Equity Fund 3,141,981 (689,173) 383,832
Government Obligation Fund 149,688 (156,929) (31,461)
Money Market Fund - - -
Company Stock Fund 9,446,958 (13,688,069) (2,140,665)
Guaranteed Investment Contract Fund - - -
Global Growth Fund 32,270 (6,654) -
Asset Allocation Growth Portfolio 39,772 (160) -
Asset Allocation Balanced Portfolio 39,473 348 -
Asset Allocation Conservative
Portfolio 5,922 (381) -
----------------------------------------
$ 15,528,593 $(14,785,072) $(1,195,024)
========================================
Realized gains (losses) on security sales resulted from the following:
Year ended December 31, 1995
---------------------------------------
Aggregate Aggregate Net Realized
Cost Proceeds Gain
---------------------------------------
Common stock of New York State
Electric & Gas Corporation $1,282,287 $1,571,475 $ 289,188
Other 1,922,350 2,341,041 418,691
Year ended December 31, 1994
---------------------------------------
Aggregate Aggregate Net Realized
Cost Proceeds (Loss)
---------------------------------------
Common stock of New York State
Electric & Gas Corporation $4,711,899 $3,659,512 $(1,052,387)
Other 3,322,314 3,226,965 (95,349)
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Notes to Financial Statements (Continued)
3. INVESTMENTS (Continued)
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
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 Plan has been amended subsequent
to the receipt of the latest determination letter. The plan administrator is
not aware of any course of action or series of events that have occurred that
might adversely affect the Plan's qualified status.
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.
5. PARTICIPANTS
At December 31, 1995, 1994, and 1993, respectively, there were 3,022, 2,889,
and 2,439 participants in one or more funds as follows:
1995 1994 1993
----------------------
Capital Appreciation Fund 1,337 1,209 993
Equity Fund 1,364 1,311 1,116
Government Obligation Fund 440 441 407
Money Market Fund 995 930 942
Company Stock Fund 2,426 2,382 2,363
Guaranteed Investment Contract Fund 745 766 819
Global Growth Fund 242 121 -
Asset Allocation Growth Portfolio 84 41 -
Asset Allocation Balanced Portfolio 76 40 -
Asset Allocation Conservative Portfolio 32 15 -
6. TRANSACTIONS WITH PARTIES-IN-INTEREST
Prior to 1994, trustee fees related to the Guaranteed Investment Contract Fund
were paid by the Hourly Plan and all other administrative costs of the Hourly
Plan were paid by the Company. Beginning in 1994, all fees are paid by the
Hourly Plan.
Putnam Investments is the plan administrator.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Notes to Financial Statements (Continued)
7. SUBSEQUENT EVENT
At April 17, 1996, the Company's common stock had a market value of $22.125 per
share as compared to $25.875 at December 31, 1995. This equates to a decline
in market value of $5,379,034 in the Company Stock Fund from December 31, 1995
to April 17, 1996. Based upon the April 17, 1996 stock price, the market value
of shares held would be $31,736,299 as compared to the December 31, 1995 value
of $37,115,333.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Schedule of Assets Held for Investment Purposes
December 31, 1995
Balance Held at Market
Name of Issuer and Title of Issue End of Year Cost Value
- -----------------------------------------------------------------------------
Capital Appreciation Fund
*Putnam Voyager Fund 911,119 shares $10,710,536 $13,894,560
Equity Fund
*Putnam Fund for Growth
and Income 1,072,991 shares 14,477,951 17,371,729
Government Obligation Fund
*Putnam U.S. Government
Income Trust 162,093 shares 2,167,854 2,138,010
Money Market Fund
*Putnam Money Market Fund 4,422,847 shares 4,422,847 4,422,847
Global Growth Fund
*Putnam Global Growth Fund 91,947 shares 895,946 918,554
Asset Allocation Growth Portfolio
*Putnam Asset Allocation - Growth
Portfolio 39,383 shares 358,749 393,831
Asset Allocation Balanced Portfolio
*Putnam Asset Allocation - Balanced
Portfolio 45,011 shares 395,450 433,455
Asset Allocation Conservative
Portfolio
*Putnam Asset Allocation
Conservative Portfolio 18,724 shares 167,296 172,634
-----------------------
Total $33,596,629 $39,745,620
=======================
Company Stock Fund
*New York State Electric & Gas
Corporation common stock 1,434,409 shares $36,994,631 $37,115,333
=======================
Guaranteed Investment Contracts $ 3,129,923 $ 3,129,923
=======================
Loans to participants - interest
rates from 6.5% to 10.5% $ 0 $ 2,816,260
=======================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Schedule of Reportable Transactions
Year ended December 31, 1995
Current Value
of Asset on
Purchase Selling Transaction Net Gain
Description of Assets Price Price Date (Loss)
- -------------------------------------------------------------------------------
Category (iii) - Series of transactions in excess of 5% of plan assets
Equity Fund
*Putnam Fund for Growth
and Income $4,508,771 $4,508,771
$ 909,193 701,205 $207,988
Capital Appreciation Fund
*Putnam Voyager Fund 4,943,781 4,943,781
1,026,612 845,935 180,677
Company Stock Fund
*New York State Electric
& Gas Corporation
Common Stock 6,693,774 6,693,774
3,680,510 3,391,322 289,188
Money Market Fund
*Putnam Money Market Fund 2,528,573 2,528,573
1,659,728 1,659,728 0
There were no category (i), (ii), or (iv) reportable transactions during 1995.
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 April 17, 1996, 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, 1995.
ERNST & YOUNG LLP
Syracuse, New York
June 10, 1996