EXHIBIT 99-2
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the fiscal year ended December 31, 1997
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, 1997 and 1996, which
have been prepared in accordance with the financial reporting
requirements of ERISA, are attached hereto as Appendix 1 and
incorporated herein by 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 hereunto duly authorized.
New York State Electric & Gas Corporation Tax
Deferred Savings Plan for Hourly Paid Employees
By Richard R. Benson March 6, 1998
Richard R. Benson
Committee Member
By Gerald E. Putman March 6, 1998
Gerald E. Putman
Committee Member
By Sherwood J. Rafferty March 6, 1998
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, 1997 AND 1996,
SUPPLEMENTAL SCHEDULES AS OF AND FOR THE YEAR ENDED
DECEMBER 31, 1997 AND INDEPENDENT ACCOUNTANT'S REPORT
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Year ended December 31, 1997
INDEX
Report of Independent Accountants...................................... 1
Statement of Net Assets Available for Benefits, With Fund
Information--December 31, 1997...................................... 3
Statement of Net Assets Available for Benefits, With Fund
Information--December 31, 1996...................................... 5
Statement of Changes in Net Assets Available for Benefits, With
Fund Information--Year ended December 31, 1997...................... 7
Statement of Changes in Net Assets Available for Benefits, With
Fund Information--Year ended December 31, 1996...................... 9
Notes to Financial Statements.......................................... 11
Line 27a - Schedule of Assets Held for Investment Purposes--
December 31, 1997.................................................... 16
Line 27d - Schedule of Reportable Transactions--Year ended
December 31, 1997.................................................... 17
Consent of Independent Accountants..................................... 18
REPORT OF INDEPENDENT ACCOUNTANTS
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, 1997 and 1996, and the related statements of
changes in net assets available for benefits for the years ended
December 31, 1997 and 1996. 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, 1997 and 1996, and the changes in its net assets
available for benefits for the years ended December 31, 1997 and
1996, in conformity with generally accepted accounting
principles.
Our audits were performed for the purpose of forming an opinion
on the basic financial statements taken as a whole. The
supplemental schedules of assets held for investment purposes as
of December 31, 1997, and reportable transactions for the year
ended December 31, 1997, are presented for the purpose of
additional analysis and are not a required part of the basic
financial statements but are supplementary information required
by the Department of Labor's Rules and Regulations for Reporting
and Disclosure under the Employee Retirement Income Security Act
of 1974. 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 audit of the basic financial statements and, in
our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
The schedule of assets held for investment purposes that
accompanies the Plan's financial statements does not disclose
historical cost of certain plan assets held by the Plan trustee.
Disclosure of this information is required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974.
COOPERS & LYBRAND L.L.P.
Syracuse, New York
February 20, 1998
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statement of Net Assets Available for Benefits, With Fund Information
December 31, 1997
Fund Information
------------------------------------------------------------------------------------------
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
------------------------------------------------------------------------------------------
Assets
Investments:
Guaranteed investment contracts $934,229 $934,229
Common stock of New York State
Electric & Gas Corporation $41,878,933 41,878,933
Other $31,603,236 $36,449,436 $2,869,360 $8,223,054 79,145,086
Loans to participants
-----------------------------------------------------------------------------------------
Net assets available for benefits $31,603,236 $36,449,436 $2,869,360 $8,223,054 $41,878,933 $934,229 $121,958,248
=========================================================================================
See notes to financial statements.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statement of Net Assets Available for Benefits, With Fund Information (Continued)
December 31, 1997
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:
Guaranteed investment contracts $934,229 $934,229
Common stock of New York State
Electric & Gas Corporation 41,878,933 41,878,933
Other 79,145,086 $4,593,473 $3,052,861 $2,397,014 $897,356 90,085,790
Loans to participants $3,615,518 3,615,518
-------------------------------------------------------------------------------------
Net assets available for benefits $121,958,248 $4,593,473 $3,052,861 $2,397,014 $897,356 $3,615,518 $136,514,470
=====================================================================================
See notes to financial statements.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statement of Net Assets Available for Benefits, With Fund Information
December 31, 1996
Fund Information
-----------------------------------------------------------------------------------------
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
-----------------------------------------------------------------------------------------
Assets
Investments:
Guaranteed investment contracts $909,182 $909,182
Common stock of New York State
Electric & Gas Corporation $30,474,962 30,474,962
Other $21,069,829 $24,203,575 $2,188,125 $7,090,991 54,552,520
Loans to participants
-----------------------------------------------------------------------------------------
Net assets available for benefits $21,069,829 $24,203,575 $2,188,125 $7,090,991 $30,474,962 $909,182 $85,936,664
=========================================================================================
See notes to financial statements.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Statement of Net Assets Available for Benefits, With Fund Information (Continued)
December 31, 1996
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:
Guaranteed investment contracts $909,182 $909,182
Common stock of New York State
Electric & Gas Corporation 30,474,962 30,474,962
Other 54,552,520 $2,346,254 $1,202,133 $1,076,226 $317,023 59,494,156
Loans to participants $3,271,689 3,271,689
--------------------------------------------------------------------------------------
Net assets available for benefits $85,936,664 $2,346,254 $1,202,133 $1,076,226 $317,023 $3,271,689 $94,149,989
======================================================================================
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, 1997
Fund Information
-----------------------------------------------------------------------------------------
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
-----------------------------------------------------------------------------------------
Additions
Investment income:
Net appreciation in fair
value of investments $4,012,004 $1,782,131 $51,898 $18,190,650 $24,036,683
Dividends:
New York State Electric & Gas Corp. 1,938,123 1,938,123
Other 1,855,288 4,543,786 152,689 6,551,763
Interest on investments $367,183 $41,465 408,648
Interest on loans to participants
-----------------------------------------------------------------------------------------
5,867,292 6,325,917 204,587 367,183 20,128,773 41,465 32,935,217
Contributions:
Employer 1,366,877 1,366,877
Employee 3,171,474 2,517,069 259,143 660,812 1,719,575 8,328,073
Interfund transfers (net) 1,893,969 4,106,114 303,454 684,308 (11,013,324) (4,370) (4,029,849)
-----------------------------------------------------------------------------------------
Total additions 10,932,735 12,949,100 767,184 1,712,303 12,201,901 37,095 38,600,318
Deductions
Withdrawal benefits - stock 764,427 764,427
Withdrawal benefits - cash 374,941 698,258 88,320 585,155 11,051 1,757,725
Transfers to Salaried Plan 14,498 (4,947) (3,364) (9,612) 1,685 997 (743)
Administrative fees 9,889 9,928 993 4,697 31,818 57,325
-----------------------------------------------------------------------------------------
Total deductions 399,328 703,239 85,949 580,240 797,930 12,048 2,578,734
-----------------------------------------------------------------------------------------
Net increase 10,533,407 12,245,861 681,235 1,132,063 11,403,971 25,047 36,021,584
Net assets available for benefits
at beginning of year 21,069,829 24,203,575 2,188,125 7,090,991 30,474,962 909,182 85,936,664
-----------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $31,603,236 $36,449,436 $2,869,360 $8,223,054 $41,878,933 $934,229 $121,958,248
=========================================================================================
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 (Continued)
Year Ended December 31, 1997
Fund Information
-------------------------------------------------------------------------
Asset Asset Asset
Subtotal Global Allocation Allocation Allocation
Brought Growth Growth Balanced Conservative Loan
Forward Fund Portfolio Portfolio Portfolio Fund Total
---------------------------------------------------------------------------------------
Additions
Investment Income:
Net appreciation (depreciation)
in fair value of investments $24,036,683 $(498,081) $110,570 $33,286 $290 $23,682,748
Dividends:
New York State Electric & Gas Corp. 1,938,123 1,938,123
Other 6,551,763 828,154 199,394 188,363 51,509 7,819,183
Interest on investments 408,648 408,648
Interest on loans to participants $269,052 269,052
---------------------------------------------------------------------------------------
32,935,217 330,073 309,964 221,649 51,799 269,052 34,117,754
Contributions:
Employer 1,366,877 1,366,877
Employee 8,328,073 585,218 342,257 234,491 77,341 9,567,380
Interfund transfers (net) (4,029,849) 1,378,794 1,231,670 870,006 451,343 98,036
---------------------------------------------------------------------------------------
Total additions 38,600,318 2,294,085 1,883,891 1,326,146 580,483 367,088 45,052,011
Deductions:
Withdrawal benefits - stock 764,427 764,427
Withdrawal benefits - cash 1,757,725 45,015 32,480 4,891 23,259 1,863,370
Transfers to Salaried Plan (743) 786 43
Administrative fees 57,325 1,065 683 467 150 59,690
----------------------------------------------------------------------------------------
Total deductions 2,578,734 46,866 33,163 5,358 150 23,259 2,687,530
----------------------------------------------------------------------------------------
Net increase 36,021,584 2,247,219 1,850,728 1,320,788 580,333 343,829 42,364,481
Net assets available for benefits
at beginning of year 85,936,664 2,346,254 1,202,133 1,076,226 317,023 3,271,689 94,149,989
----------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $121,958,248 $4,593,473 $3,052,861 $2,397,014 $897,356 $3,615,518 $136,514,470
========================================================================================
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, 1996
Fund Information
-----------------------------------------------------------------------------------------
Guaranteed
Capital Government Money Company Investment
Appreciation Equity Obligation Market Stock Contract
Fund Fund Fund Fund Fund Fund Subtotal
-----------------------------------------------------------------------------------------
Additions
Investment income:
Net appreciation (depreciation)
in fair value of investments $665,174 $2,070,273 $(57,134) $(6,182,420) $(3,504,107)
Dividends:
New York State Electric & Gas Corp. 2,018,810 2,018,810
Other 1,319,941 2,032,642 140,882 3,493,465
Interest on investments $314,406 $39,433 353,839
Interest on loans to participants
---------------------------------------------------------------------------------------
1,985,115 4,102,915 83,748 314,406 (4,163,610) 39,433 2,362,007
Contributions:
Employer 1,270,641 1,270,641
Employee 2,611,340 2,157,860 316,813 691,248 2,496,687 8,273,948
Interfund transfers (net) 2,889,489 1,027,182 (311,124) 1,856,065 (5,215,922) (2,229,905) (1,984,215)
-----------------------------------------------------------------------------------------
Total additions 7,485,944 7,287,957 89,437 2,861,719 (5,612,204) (2,190,472) 9,922,381
Deductions
Withdrawal benefits - stock 926,667 926,667
Withdrawal benefits - cash 262,877 450,334 24,278 199,764 28,917 966,170
Transfers to Salaried Plan 35,431 (6,559) 13,256 (13,792) 57,471 1,341 87,148
Administrative fees 12,367 12,336 1,788 7,603 44,029 11 78,134
-----------------------------------------------------------------------------------------
Total deductions 310,675 456,111 39,322 193,575 1,028,167 30,269 2,058,119
-----------------------------------------------------------------------------------------
Net increase (decrease) 7,175,269 6,831,846 50,115 2,668,144 (6,640,371) (2,220,741) 7,864,262
Net assets available for benefits
at beginning of year 13,894,560 17,371,729 2,138,010 4,422,847 37,115,333 3,129,923 78,072,402
-----------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $21,069,829 $24,203,575 $2,188,125 $7,090,991 $30,474,962 $909,182 $85,936,664
=========================================================================================
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 (Continued)
Year Ended December 31, 1996
Fund Information
------------------------------------------------------------------------
Asset Asset Asset
Subtotal Global Allocation Allocation Allocation
Brought Growth Growth Balanced Conservative Loan
Forward Fund Portfolio Portfolio Portfolio Fund Total
--------------------------------------------------------------------------------------
Additions
Investment income:
Net appreciation (depreciation)
in fair value of investments $(3,504,107) $73,346 $65,077 $48,385 $5,324 $(3,311,975)
Dividends:
New York State Electric & Gas Corp. 2,018,810 2,018,810
Other 3,493,465 163,865 61,017 72,630 17,003 3,807,980
Interest on investments 353,839 353,839
Interest on loans to participants $233,793 233,793
--------------------------------------------------------------------------------------
2,362,007 237,211 126,094 121,015 22,327 233,793 3,102,447
Contributions:
Employer 1,270,641 1,270,641
Employee 8,273,948 425,319 185,155 175,342 42,229 9,101,993
Interfund transfers (net) (1,984,215) 791,571 500,440 356,823 100,576 234,805
--------------------------------------------------------------------------------------
Total additions 9,922,381 1,454,101 811,689 653,180 165,132 468,598 13,475,081
Deductions
Withdrawal benefits - stock 926,667 926,667
Withdrawal benefits - cash 966,170 25,591 2,837 9,944 20,589 13,169 1,038,300
Transfers to Salaried Plan 87,148 (208) 86,940
Administrative fees 78,134 1,018 550 465 154 80,321
---------------------------------------------------------------------------------------
Total deductions 2,058,119 26,401 3,387 10,409 20,743 13,169 2,132,228
---------------------------------------------------------------------------------------
Net increase 7,864,262 1,427,700 808,302 642,771 144,389 455,429 11,342,853
Net assets available for benefits
at beginning of year 78,072,402 918,554 393,831 433,455 172,634 2,816,260 82,807,136
---------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $85,936,664 $2,346,254 $1,202,133 $1,076,226 $317,023 $3,271,689 $94,149,989
=======================================================================================
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, 1997 and 1996
1. DESCRIPTION OF THE HOURLY PLAN
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 for the exclusive benefit of New York State
Electric & Gas Corporation (company) employees who are eligible to
participate under the Hourly Plan provisions.
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The financial statements are prepared on an accrual basis and in
conformity with generally accepted accounting principles, which
require 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.
Investments
Investments consisting of the company's publicly traded common
stock and various Putnam Investment vehicles are carried at current
value using the market price at closing on the last business day of
the year.
Guaranteed investment contracts are valued at contract value (which
approximates fair market value) which represents contributions plus
interest thereon at the contract rate.
The change during the period between fair value and carrying value
is reflected in the statement of changes in net assets available
for benefits as net appreciation (depreciation) in fair value of
investments.
Contributions
Contributions to the Hourly Plan are allocated to participant
accounts. Participants have full and immediate vesting rights in
employee and employer contributions, investment earnings and other
amounts allocated to their accounts.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Notes to Financial Statements
December 31, 1997 and 1996
2. SIGNIFICANT ACCOUNTING POLICIES (Continued)
Contributions (Continued)
During 1996 an employee covered by a collective bargaining
agreement was eligible for participation in the Hourly 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. Effective January 1, 1997, an employee
may become a participant in the Hourly Plan as of the first day of
any calendar month that commences after the completion of the
employee's first 30 days of employment.
Employee contributions, with certain exceptions, range from 1% to
15% of the participant's base compensation plus any overtime pay.
Subject to limitations stipulated by the Code, a participant's
total contribution could not exceed $9,500 per year in 1997 and
1996.
During 1997 and 1996, 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).
Benefit Payments
Distributions from the Capital Appreciation Fund, Equity Fund,
Government Obligation Fund, Money Market 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 the company's common
stock or in cash, as specified by the participant and subject to
approval by the Hourly Plan's administrative committee.
As of December 31, 1997, plan assets include approximately
$13,014,630 in amounts allocated to participants who have withdrawn
from the Hourly Plan, due to termination, retirement or disability
but for which disbursement of funds have not yet occurred.
Loans
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.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Notes to Financial Statements
December 31, 1997 and 1996
2. SIGNIFICANT ACCOUNTING POLICIES (Continued)
Loans (Continued)
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.
Plan Termination
Although the company has not expressed any intent to terminate the
Hourly Plan, it 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
Contributions by the participants are invested, at the election of
the participant, in one or a combination of the following nine
funds: (1) the Capital Appreciation Fund, a mutual fund,
consisting primarily of common stock; (2) the Equity Fund, a mutual
fund, consisting primarily of common stock; (3) the Government
Obligation Fund, a mutual fund, consisting of securities that are
backed by the full faith and credit of the United States
Government; (4) the Money Market Fund, a mutual fund, consisting of
money market instruments; (5) the Company Stock Fund, consisting of
common stock of the company; (6) the Global Growth Fund, a mutual
fund, consisting primarily of U.S. and 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.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Notes to Financial Statements
December 31, 1997 and 1996
4. INCOME TAX STATUS
The company has received a determination letter from the Internal
Revenue Service, dated June 3, 1994, 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. However, the Plan's administrator
and tax counsel believe that the Plan is designed and currently
being operated in compliance with the applicable requirements of
the Code.
5. TRANSACTIONS WITH PARTIES-IN-INTEREST
All administrative fees are paid by the participants in the Hourly
Plan. Audit and legal fees are paid by the company.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Notes to Financial Statements
December 31, 1997 and 1996
6. UNITS OF PARTICIPATION
Total number of units and net asset value per unit during the period from
January 1, 1996 to December 31, 1997, by quarter, are as follows:
Capital Equity Government Money
Appreciation Fund Obligations Market
---------------- ---------------- -------------- ---------------
Units $ Unit Units $ Unit Units $ Unit Units $ Unit
01/01/96 911,119 15.25 1,072,991 16.19 162,093 13.19 4,422,847 1.00
03/31/96 969,930 16.19 1,114,522 17.05 169,630 12.79 6,456,405 1.00
06/30/96 1,061,344 16.81 1,169,993 17.46 172,589 12.61 6,268,397 1.00
09/30/96 1,145,709 17.55 1,208,239 17.87 168,490 12.63 6,553,174 1.00
12/31/96 1,303,300 16.12 1,341,891 18.02 170,548 12.83 7,090,710 1.00
03/31/97 1,358,302 15.30 1,408,476 18.39 186,779 12.61 7,097,744 1.00
06/30/97 1,380,272 18.03 1,475,906 20.67 188,508 12.87 7,340,477 1.00
09/30/97 1,463,732 20.00 1,551,289 21.80 190,789 13.01 7,429,360 1.00
12/31/97 1,658,963 19.05 1,865,375 19.54 219,202 13.09 8,223,054 1.00
Global Allocation Allocation Allocation
Growth Growth Balanced Conservative
-------------- -------------- -------------- --------------
Units $ Unit Units $ Unit Units $ Unit Units $ Unit
01/01/96 91,947 9.99 39,383 10.00 45,011 9.63 18,724 9.22
03/31/96 115,061 10.58 51,375 10.52 59,709 9.99 19,667 9.32
06/30/96 147,799 10.95 67,076 11.01 72,131 10.36 20,331 9.46
09/30/96 167,564 11.11 78,838 11.41 80,959 10.71 21,925 9.69
12/31/96 216,844 10.82 106,550 11.23 102,596 10.49 29,464 9.58
03/31/97 246,884 10.94 136,839 11.58 126,436 10.71 48,853 9.56
06/30/97 268,802 12.49 154,139 12.64 137,476 11.55 46,944 10.16
09/30/97 330,922 12.99 177,828 13.55 161,704 12.21 61,263 10.62
12/31/97 461,192 9.96 247,596 12.33 215,365 11.13 90,006 9.97
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Line 27a - Schedule of Assets Held for Investment Purposes
December 31, 1997
Balance Held at Market
Name of Issuer and Title of Issue End of Year Cost ** Value
- -----------------------------------------------------------------------------
Capital Appreciation Fund
*Putnam Voyager Fund 1,658,963 shares $31,603,236
Equity Fund
*Putnam Fund for Growth
and Income 1,865,375 shares 36,449,436
Government Obligation Fund
*Putnam U.S. Government
Income Trust 219,202 shares 2,869,360
Money Market Fund
*Putnam Money Market Fund 8,223,054 shares 8,223,054
Global Growth Fund
*Putnam Global Growth Fund 461,192 shares 4,593,473
Asset Allocation Growth Portfolio
*Putnam Asset Allocation - Growth
Portfolio 247,596 shares 3,052,861
Asset Allocation Balanced Portfolio
*Putnam Asset Allocation - Balanced
Portfolio 215,365 shares 2,397,014
Asset Allocation Conservative
Portfolio
*Putnam Asset Allocation
Conservative Portfolio 90,006 shares 897,356
-----------
Total $90,085,790
===========
Company Stock Fund
*New York State Electric & Gas
Corporation common stock 1,179,688 shares $41,878,933
===========
Guaranteed Investment Contracts $934,229 $934,229
=======================
Loans to participants - interest
rates from 6.5% to 10.5% $3,615,518
===========
* Denotes a party-in-interest.
** Information pertaining to the historical cost was not available from the
Trustee.
New York State Electric & Gas Corporation
Tax Deferred Savings Plan for Hourly Paid Employees
Line 27d - Schedule of Reportable Transactions
Year ended December 31, 1997
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
Company Stock Fund - Purchases
*New York State Electric
& Gas Corporation
Common Stock $6,502,145 $6,502,145
Company Stock Fund - Sales
*New York State Electric
& Gas Corporation $10,758,893 $10,758,893
Common Stock $13,288,823 13,288,823 $2,529,930
There were no category (i), (ii), or (iv) reportable transactions during 1997.
* Denotes a party-in-interest.
Consent of Independent Accountants
We consent to the incorporation by reference in the Registration
Statement (Form S-8 No. 333-16201) pertaining to the New York
State Electric & Gas Corporation Tax Deferred Savings Plan for
Hourly Paid Employees of our report dated February 20, 1998, with
respect to the financial statements and schedules of the New York
State Electric & Gas Corporation Tax Deferred Savings Plan for
Hourly Paid Employees for the year ended December 31, 1997, which
report is included in this Annual Report on Form 11-K.
COOPERS & LYBRAND L.L.P.
Syracuse, New York
March 26, 1998