<ARTICLE> UT <SUBSIDIARY> <NUMBER> 1 <NAME> POTOMAC CAPITAL INVESTMENT CORPORATION <MULTIPLIER> 1,000 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> DEC-31-1996 <BOOK-VALUE> PER-BOOK <TOTAL-NET-UTILITY-PLANT> 4,401,171 <OTHER-PROPERTY-AND-INVEST> 0 <TOTAL-CURRENT-ASSETS> 416,066 <TOTAL-DEFERRED-CHARGES> 686,951 <OTHER-ASSETS> 1,387,698 <TOTAL-ASSETS> 6,891,886 <COMMON> 118,500 <CAPITAL-SURPLUS-PAID-IN> 1,010,407 <RETAINED-EARNINGS> 760,285 <TOTAL-COMMON-STOCKHOLDERS-EQ> 1,889,192 <PREFERRED-MANDATORY> 142,500 <PREFERRED> 125,298 <LONG-TERM-DEBT-NET> 1,767,598 <SHORT-TERM-NOTES> 8,090<F1> <LONG-TERM-NOTES-PAYABLE> 0 <COMMERCIAL-PAPER-OBLIGATIONS> 123,300<F1> <LONG-TERM-DEBT-CURRENT-PORT> 151,460 <PREFERRED-STOCK-CURRENT> 985 <CAPITAL-LEASE-OBLIGATIONS> 162,936 <LEASES-CURRENT> 20,772 <OTHER-ITEMS-CAPITAL-AND-LIAB> 2,499,755 <TOT-CAPITALIZATION-AND-LIAB> 6,891,886 <GROSS-OPERATING-REVENUE> 2,010,311 <INCOME-TAX-EXPENSE> 134,085 <OTHER-OPERATING-EXPENSES> 1,527,787 <TOTAL-OPERATING-EXPENSES> 1,661,872 <OPERATING-INCOME-LOSS> 348,439 <OTHER-INCOME-NET> 27,924 <INCOME-BEFORE-INTEREST-EXPEN> 376,363 <TOTAL-INTEREST-EXPENSE> 139,403 <NET-INCOME> 236,960 <PREFERRED-STOCK-DIVIDENDS> 16,604 <EARNINGS-AVAILABLE-FOR-COMM> 220,356 <COMMON-STOCK-DIVIDENDS> 196,612 <TOTAL-INTEREST-ON-BONDS> 133,000<F2> <CASH-FLOW-OPERATIONS> 467,839 <EPS-PRIMARY> $1.86 <EPS-DILUTED> 0<F3> <FN> <F1>Included on the Balance Sheet in the caption "Short-term debt." <F2>Total annualized interest costs for all utility long-term debt outstanding at December 31, 1996. <F3>No material dilution would occur if all the convertible preferred stock and debentures were converted into common stock. </FN>