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 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)
REQUIRED INFORMATION
The Tax Deferred Savings Plan for Salaried 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 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 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 SALARIED 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 Salaried 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 Salaried 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 Salaried Employees as
of December 31, 1995 and 1994, 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, 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 Salaried 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
of 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 the purpose 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 Salaried 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 $3,319,662 $ 3,319,662
Common stock of New York State
Electric & Gas Corporation
(cost - $29,389,858) $31,027,515 31,027,515
Other (cost - $49,026,495) $23,610,555 $24,920,863 $3,103,601 $4,885,098 56,520,117
Loans to participants (Note 2)
----------------------------------------------------------------------------------------
Net assets available for benefits $23,610,555 $24,920,863 $3,103,601 $4,885,098 $31,027,515 $3,319,662 $90,867,294
========================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 $ 3,319,662 $ 3,319,662
Common stock of New York State
Electric & Gas Corporation
(cost - $29,389,858) 31,027,515 31,027,515
Other (cost - $49,026,495) 56,520,117 $1,514,329 $801,940 $698,912 $273,968 59,809,266
Loans to participants (Note 2) $3,033,421 3,033,421
-----------------------------------------------------------------------------------
Net assets available for benefits $90,867,294 $1,514,329 $801,940 $698,912 $273,968 $3,033,421 $97,189,864
===================================================================================
See notes to financial statements.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 $4,802,682 $ 4,802,682
Common stock of New York State
Electric & Gas Corporation
(cost - $28,364,904) $22,058,781 22,058,781
Other (cost - $37,473,497) $14,869,619 $17,143,871 $2,644,963 $3,241,692 37,900,145
Loans to participants (Note 2)
----------------------------------------------------------------------------------------
Net assets available for 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
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 $ 4,802,682 $ 4,802,682
Common stock of New York State
Electric & Gas Corporation
(cost - $28,364,904) 22,058,781 22,058,781
Other (cost - $37,473,497) 37,900,145 $448,417 $283,706 $90,733 $116,808 38,839,809
Loans to participants (Note 2) $2,556,481 2,556,481
-----------------------------------------------------------------------------------
Net assets available for benefits $64,761,608 $448,417 $283,706 $90,733 $116,808 $2,556,481 $68,257,753
===================================================================================
See notes to financial statements.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 $4,606,021 $4,403,980 $ 195,335 $ 7,943,876 $17,149,212
Net realized gain (loss) on
security sales:
Common stock of New York State
Electric & Gas Corporation 264,194 264,194
Other 432,733 393,762 28,162 854,657
-----------------------------------------------------------------------------------------
5,038,754 4,797,742 223,497 8,208,070 18,268,063
Dividends:
New York State Electric & Gas
Corporation 1,692,966 1,692,966
Other (including capital gain
distributions from mutual funds
of $2,117,871) 1,245,657 1,608,617 201,913 $ 244,233 3,300,420
Interest on securities $ 232,246 232,246
Interest on loans to participants
-----------------------------------------------------------------------------------------
6,284,411 6,406,359 425,410 244,233 9,901,036 232,246 23,493,695
Contributions:
Employer 969,088 969,088
Employee 1,894,802 1,593,465 287,229 350,812 1,581,913 5,708,221
Transfers from other plan (Note 7) 595,628 595,628
Transfers from Hourly Plan 19,625 67,960 5,597 13,487 122,130 3,128 231,927
Interfund transfers (net) 1,144,499 678,310 (10,483) 1,274,536 (3,236,549) (1,517,689) (1,667,376)
-----------------------------------------------------------------------------------------
Total additions 9,343,337 8,746,094 707,753 1,883,068 9,933,246 (1,282,315) 29,331,183
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 $ 9,343,337 $8,746,094 $ 707,753 $1,883,068 $ 9,933,246 $(1,282,315) $29,331,183
Deductions (Notes 2 and 6)
Withdrawal benefits-stock 924,194 924,194
Withdrawal benefits-cash 595,322 961,992 247,967 237,034 188,561 2,230,876
Administrative fees 7,079 7,110 1,148 2,628 40,318 12,144 70,427
------------------------------------------------------------------------------------------
Total deductions 602,401 969,102 249,115 239,662 964,512 200,705 3,225,497
------------------------------------------------------------------------------------------
Net increase (decrease) 8,740,936 7,776,992 458,638 1,643,406 8,968,734 (1,483,020) 26,105,686
Net assets available for benefits
at beginning of year 14,869,619 17,143,871 2,644,963 3,241,692 22,058,781 4,802,682 64,761,608
------------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $23,610,555 $24,920,863 $3,103,601 $4,885,098 $31,027,515 $ 3,319,662 $90,867,294
==========================================================================================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 $17,149,212 $ 94,345 $ 46,635 $ 38,844 $ 31,295 $17,360,331
Net realized gain (loss) on
security sales:
Common stock of New York State
Electric & Gas Corporation 264,194 264,194
Other 854,657 (26,139) 34,941 6,174 (6,433) 863,200
-------------------------------------------------------------------------------------------
18,268,063 68,206 81,576 45,018 24,862 18,487,725
Dividends:
New York State Electric & Gas
Corporation 1,692,966 1,692,966
Other (including capital gain
distributions from mutual funds
of $2,117,871 3,300,420 80,519 38,508 34,339 14,444 3,468,230
Interest on securities 232,246 232,246
Interest on loans to participants $198,579 198,579
-----------------------------------------------------------------------------------------
23,493,695 148,725 120,084 79,357 39,306 198,579 24,079,746
Contributions:
Employer 969,088 969,088
Employee 5,708,221 306,783 171,066 98,929 19,746 6,304,745
Transfers from other plan (Note 7) 595,628 595,628
Transfers from Hourly Plan 231,927 567 13,625 15,919 262,038
Interfund transfers (net) (1,667,376) 654,672 213,726 430,205 106,331 262,442 0
-----------------------------------------------------------------------------------------
Total additions 29,331,183 1,110,747 518,501 608,491 165,383 476,940 32,211,245
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 $29,331,183 $1,110,747 $518,501 $608,491 $165,383 $ 476,940 $32,211,245
Deductions (Notes 2 and 6)
Withdrawal benefits-stock 924,194 924,194
Withdrawal benefits-cash 2,230,876 44,518 73 200 8,186 2,283,853
Administrative fees 70,427 317 194 112 37 71,087
----------------------------------------------------------------------------------------
Total deductions 3,225,497 44,835 267 312 8,223 3,279,134
----------------------------------------------------------------------------------------
Net increase (decrease) 26,105,686 1,065,912 518,234 608,179 157,160 476,940 28,932,111
Net assets available for
benefits at beginning of year 64,761,608 448,417 283,706 90,733 116,808 2,556,481 68,257,753
----------------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year $90,867,294 $1,514,329 $801,940 $698,912 $273,968 $3,033,421 $97,189,864
========================================================================================
See notes to financial statements.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Statement 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)
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 (including capital gain
distributions from mutual
funds of $1,215,614) 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 (Note 7) 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
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 $ 2,960,728 $ 1,914,472 $ 157,867 $ 717,267 $(5,560,749) $ 32,238 $ 221,823
Deductions (Notes 2 and 6)
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
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)
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 (including capital gain
distributions from mutual
funds of $1,215,614) 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 (Note 7) 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
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 $ 221,823 $448,417 $283,706 $90,733 $116,808 $ (68,146) $ 1,093,341
Deductions (Notes 2 and 6)
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 increase (decrease) (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
========================================================================================
See notes to financial statements.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 $ 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 (including capital gain
distributions from mutual
funds of $1,073,499) 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 (Note 7) 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
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 $5,050,779 $ 5,815,588 $1,466,789 $ 927,353 $ 342,350 $ (54,247) $13,548,612
Deductions (Notes 2 and 6)
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
Statement of Changes in Net Assets Available for Benefits, With Fund Information (Continued)
Year Ended December 31, 1993
Subtotal
Brought Loan
Forward Fund Total
-------------------------------------
Additions (Notes 1, 2, and 3)
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 (including capital gain
distributions from mutual
funds of $1,073,499) 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 (Note 7) 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
/TABLE
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Statement of Changes in Net Assets Available for Benefits, With Fund Information (Continued)
Year Ended December 31, 1993
(Continued)
Subtotal
Brought Loan
Forward Fund Total
-------------------------------------
Balance brought forward $13,548,612 $ 380,975 $13,929,587
Deductions (Notes 2 and 6)
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
=====================================
See notes to financial statements.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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
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
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 liabilities 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 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,
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)
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 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 1995 and 1994, $8,994 per year
in 1993 (excluding any Company contributions). The maximum amount has been
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 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
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 Salaried Employees
Notes to Financial Statements (Continued)
2. DESCRIPTION OF THE SALARIED 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 Salaried 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 Salaried Plan document. The term of the loan may not exceed
five years, and 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. 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 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 fair value of individual investments that represent 5% or more of the
Salaried Plan's net assets are as follows:
December 31,
1995 1994
------------------------
Company Stock Fund:
New York State Electric & Gas
Corporation common stock $31,027,515 $22,058,781
Capital Appreciation Fund:
Putnam Voyager Fund 23,610,555 14,869,619
Equity Fund:
Putnam Fund for Growth and Income 24,920,863 17,143,871
Money Market Fund:
Putnam Money Market Fund 4,885,098 3,241,692
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Notes to Financial Statements (Continued)
3. INVESTMENTS (Continued)
The Salaried Plan's investments (including investments bought, sold, and held)
appreciated (depreciated) in fair value as follows:
Year ended December 31,
1995 1994 1993
----------------------------------------
Capital Appreciation Fund $ 5,038,754 $ (508,430) $1,326,429
Equity Fund 4,797,742 (1,127,116) 648,867
Government Obligation Fund 223,497 (280,862) (57,267)
Money Market Fund - - -
Company Stock Fund 8,208,070 (12,501,740) (1,408,801)
Guaranteed Investment Contract Fund - - -
Global Growth Fund 68,206 (12,597) -
Asset Allocation Growth Portfolio 81,576 (3,298) -
Asset Allocation Balanced Portfolio 45,018 (65) -
Asset Allocation Conservative
Portfolio 24,862 (302) -
----------------------------------------
$18,487,725 $(14,434,410) $ 509,228
========================================
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 $1,272,450 $1,536,644 $ 264,194
Other 5,220,424 6,083,624 863,200
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)
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 $6,367,659 $6,527,753 $ 160,094
Other 1,782,833 1,890,994 108,161
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 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 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.
5. PARTICIPANTS
At December 31, 1995, 1994, and 1993, respectively, there were 2,130, 2,070,
and 1,704 participants in one or more funds as follows:
1995 1994 1993
----------------------
Capital Appreciation Fund 1,234 1,172 1,050
Equity Fund 1,233 1,209 1,144
Government Obligation Fund 454 470 452
Money Market Fund 711 691 654
Company Stock Fund 1,669 1,690 1,661
Guaranteed Investment Contract Fund 529 565 601
Global Growth Fund 286 182 -
Asset Allocation - Growth Portfolio 110 53 -
Asset Allocation - Balanced Portfolio 86 44 -
Asset Allocation - Conservative Portfolio 26 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.
Putnam Investments is the plan administrator.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried Employees
Notes to Financial Statements (Continued)
7. TRANSFERS FROM OTHER PLAN
During 1995, 1994, and 1993, respectively, participants elected to transfer
23,882, 135,889 and 41,497 shares of Company stock (cost: $595,628 in 1995,
$3,551,225 in 1994, and $1,009,165 in 1993) from the New York State Electric &
Gas Corporation Tax Reduction Act Employee Stock Ownership Plan to the Salaried
Plan.
8. 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 $4,496,742 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 $26,530,773 as compared to the December 31, 1995 value
of $31,027,515.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 1,548,233 shares $17,335,805 $23,610,555
Equity Fund
*Putnam Fund for Growth
and Income 1,539,275 shares 20,542,788 24,920,863
Government Obligation Fund
*Putnam U.S. Government
Income Trust 235,300 shares 3,168,512 3,103,601
Money Market Fund
*Putnam Money Market Fund 4,885,098 shares 4,885,098 4,885,098
Global Growth Fund
*Putnam Global Growth Fund 151,585 shares 1,432,581 1,514,329
Asset Allocation - Growth Portfolio
*Putnam Asset Allocation - Growth
Portfolio 80,194 shares 758,603 801,940
Asset Allocation - Balanced Portfolio
*Putnam Asset Allocation - Balanced
Portfolio 72,577 shares 660,133 698,912
Asset Allocation - Conservative
Portfolio
*Putnam Asset Allocation -
Conservative Portfolio 29,715 shares 242,975 273,968
-----------------------
Total $49,026,495 $59,809,266
=======================
Company Stock Fund
*New York State Electric & Gas
Corporation common stock 1,199,131 shares $29,389,858 $31,027,515
=======================
Guaranteed Investment Contracts $ 3,319,662 $ 3,319,662
=======================
Loans to participants - interest
rates from 6.5% to 10.5% $ 0 $ 3,033,421
=======================
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Salaried 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 $5,622,340 $5,622,340
$2,643,092 2,249,330 $393,762
Capital Appreciation Fund
*Putnam Voyager Fund 5,900,655 5,900,655
2,199,475 1,766,742 432,733
Company Stock Fund
*New York State Electric
& Gas Corporation
Common Stock 5,820,443 5,820,443
5,059,750 4,795,556 264,194
Money Market Fund
*Putnam Money Market Fund 3,497,596 3,497,596
1,850,093 1,850,093 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 Salaried 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 Salaried 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