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/raid1/www/Hosts/bankrupt/TCR_Public/050226.mbx T R O U B L E D C O M P A N Y R E P O R T E R Saturday, February 26, 2005, Vol. 9, No. 48 Headlines FASTNET CORP: Files Oct. to Dec. 2004 Monthly Operating Reports FOOTSTAR INC: Posts $1.7 Million Net Loss in January 2005 KEYSTONE CONSOLIDATED: Posts $2 Million Net Loss in January 2005 PG&E NATIONAL: NEGT's December 2003 Monthly Operating Report PG&E NATIONAL: NEGT's January 2004 Monthly Operating Report PG&E NATIONAL: NEGT's February 2004 Monthly Operating Report PG&E NATIONAL: NEGT's March 2004 Monthly Operating Report PG&E NATIONAL: NEGT's April 2004 Monthly Operating Report PG&E NATIONAL: NEGT's May 2004 Monthly Operating Report PG&E NATIONAL: NEGT's June 2004 Monthly Operating Report PG&E NATIONAL: NEGT's July 2004 Monthly Operating Report PG&E NATIONAL: NEGT's August 2004 Monthly Operating Report PG&E NATIONAL: NEGT's September 2004 Monthly Operating Report PG&E NATIONAL: ESV's March 2004 Monthly Operating Report PG&E NATIONAL: ESV's April 2004 Monthly Operating Report PG&E NATIONAL: ESV's May 2004 Monthly Operating Report PG&E NATIONAL: ESV's June 2004 Monthly Operating Report PG&E NATIONAL: Quantum's March 2004 Monthly Operating Report PG&E NATIONAL: Quantum's April 2004 Monthly Operating Report PG&E NATIONAL: Quantum's May 2004 Monthly Operating Report PG&E NATIONAL: Quantum's June 2004 Monthly Operating Report PG&E NATIONAL: Quantum's July 2004 Monthly Operating Report PG&E NATIONAL: ET Gas' August 2004 Monthly Operating Report PG&E NATIONAL: ET Investments' Aug. 2004 Monthly Operating Report PG&E NATIONAL: ET Power's August 2004 Monthly Operating Report RELIANCE GROUP: Liquidator Files Q4 2004 Liquidation Status Report RELIANCE GROUP: Posts $498,000 Net Loss in January 2005 ROBOTIC VISION: Posts $2 Million Net Loss in December 2004 TECO AFFILIATES: Panda Gila's Statement of Financial Affairs TECO AFFILIATES: Trans Union's Statement of Financial Affairs TECO AFFILIATES: Union Power's Statement of Financial Affairs TECO AFFILIATES: UPP Finance's Statement of Financial Affairs USG CORP: Earns $19.6 Million of Net Income in December 2004 WINN-DIXIE: Files Consolidated Balance Sheet as of Jan. 12, 2005 ********* FASTNET CORP: Files Oct. to Dec. 2004 Monthly Operating Reports --------------------------------------------------------------- On Feb. 18, 2005 Fastnet Corporation (n/k/a FN Estate Inc.) filed its monthly operating reports for October, November, and December 2004, with the U.S. Bankruptcy Court for the Eastern District of Pennsylvania. The Debtors' Monthly Balance Sheets showed: Oct. 31, 2004 Nov. 30, 2004 Dec. 31, 2004 ------------- ------------- ------------- Assets $5,484,201 $5,123,530 $4,413,385 Post-petition Liabilities 4,057,300 3,785,872 2,488,912 Pre-petition Liabilities 16,208,758 16,208,758 16,431,162 Stockholders' Deficit $26,870,072 $26,959,315 $26,594,903 Full-text copies of the Debtors' Monthly Operating Reports are available at no charge at: October 2004 Monthly Operating Report: http://www.sec.gov/Archives/edgar/data/1092536/000101968705000477/fnestate_8 kex99-1.txt November 2004 Monthly Operating Report: http://www.sec.gov/Archives/edgar/data/1092536/000101968705000477/fnestate_8 kex99-2.txt December 2004 Monthly Operating Report: http://www.sec.gov/Archives/edgar/data/1092536/000101968705000477/fnestate_8 kex99-3.txt On June 10, 2003, Fastnet Corporation (n/k/a FN Estate, Inc.) and on June 13, 2003, each of its subsidiaries (excluding the Company's wholly owned subsidiary "DASLIC", a Delaware Holding Company) filed respective voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in Jointly Administered Case No. 03-23143 in the United States Bankruptcy Court for the Eastern District of Pennsylvania. Also, as reported in the Company's Current Reports on Form 8-K previously filed with the United States Securities and Exchange Commission, the Debtors have sold substantially all of their assets as a result of several transactions completed pursuant to the provisions of the United States Bankruptcy Code on and between December 15, 2003 and May 4, 2004. FOOTSTAR INC: Posts $1.7 Million Net Loss in January 2005 --------------------------------------------------------- On Feb. 17, 2005, Footstar, Inc., and its debtor-affiliates filed their monthly operating report for the month of January 2005 with the U.S. Bankruptcy Court for the Southern District of New York. The Debtors report a $1.7 million net loss on $42.5 million of net sales for January 2005. At Jan. 31, 2005, Footstar, Inc.'s consolidated balance sheet showed: Total Current Assets $363,200,000 Total Assets 411,500,000 Current Liabilities 121,500,000 Total Liabilities Subject to Compromise 175,100,000 Shareholders' Equity $61,900,000 A full-text copy of Footstar, Inc.'s January 2005 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/1011308/000090951805000099/jd2-17ex_9 9.txt Headquartered in West Nyack, New York, Footstar Inc., retails family and athletic footwear. As of August 28, 2004, the Company operated 2,373 Meldisco licensed footwear departments nationwide in Kmart, Rite Aid and Federated Department Stores. The Company also distributes its own Thom McAn brand of quality leather footwear through Kmart, Wal-Mart and Shoe Zone stores. The Company and its debtor-affiliates filed for chapter 11 protection on March 3, 2004 (Bankr. S.D.N.Y. Case No. 04-22350). Paul M. Basta, Esq., at Weil Gotshal & Manges represents the Debtors in their restructuring efforts. When the Debtor filed for protection, it listed $762,500,000 in total assets and $302,200,000 in total debts. KEYSTONE CONSOLIDATED: Posts $2 Million Net Loss in January 2005 ---------------------------------------------------------------- On Feb. 18, 2005, Keystone Consolidated Industries, Inc., and its debtor-affiliates filed their monthly operating reports for the month of January 2005, with the U.S. Bankruptcy Court for the Eastern District of Wisconsin. For the month ending Jan. 31, 2005, Keystone Consolidated reports a $2,153,190 net loss on $30,303,881 of net sales. At Dec. 31, 2004, Keystone Consolidated's balance sheet shows: Current Assets $79,850,464 Total Assets 309,385,141 Current Liabilities 154,008,539 Stockholders' Deficit ($21,702,708) A full-text copy of Keystone Consolidated Industries' January 2005 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/55604/000005560405000005/exhibit991fe b.txt Headquartered in Dallas, Texas, Keystone Consolidated Industries, Inc., makes carbon steel rod, fabricated wire products, including fencing, barbed wire, welded wire and woven wire mesh for the agricultural, construction and do-it-yourself markets. The Company, along with five of its debtor-affiliates, filed for chapter 11 protection on February 26, 2004 (Bankr. E.D. Wisc. Case No. 04-22422). Daryl L. Diesing, Esq., at Whyte Hirschboeck Dudek S.C., and David L. Eaton, Esq., at Kirkland & Ellis LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $196,953,000 in total assets and $365,312,000 in total debts. PG&E NATIONAL: NEGT's December 2003 Monthly Operating Report ------------------------------------------------------------ National Energy & Gas Transmission, Inc. Balance Sheet As of December 31, 2003 ASSETS Cash $72,521,898 Prepetition Accounts Receivable Undetermined Postpetition Accounts Receivable 8,967,593 Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Prepaid Expenses 6,963,593 Deposits $11,770,115 Current Tax Assets Undetermined -------------- Total Current Assets Undetermined Land - Building - Equipment and Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subs Undetermined -------------- Total Other Assets - -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Accounts Payable $11,243,163 Postpetition Notes Payable - Postpetition Rent and Leases Payable - Postpetition Taxes Payable Undetermined Postpetition Accrued Interest - Other Postpetition Liabilities 3,660,324 -------------- Total Postpetition Liabilities 14,903,487 Prepetition Priority Claims - Prepetition Secured Debts - Prepetition Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (deficit): Capital Stock/Owner's Investments - Paid in Capital Surplus 3,086,000,000 Prepetition Retained Earnings (deficit) (3,144,050,278) Postpetition Retained Earnings (deficit) Undetermined -------------- Total Owner's Equity ($58,050,278) -------------- TOTAL LIABILITIES AND OWNER'S EQUITY Undetermined ============== National Energy & Gas Transmission, Inc. Income Statement For the Period December 1 to December 31, 2003 Operating Expenses Officer Salaries - Other Employee Salaries - Payroll Taxes - Employee Benefits - Advertising - Auto Expenses - Entertainment - Real Estate Insurance - Other Insurance $577,051 Leases other than Rent - Outside Services & Contractors 524,737 Professional Fees (Atty. Acct.) 32,489,251 Rent 12,049,525 Repairs & Maintenance 18,046 Supplies (41,356) Real Property Taxes - Telephone 94,628 Travel 56,805 Utilities - Other Operating Expenses: Allocated Salaries and Benefits 78,084 Retention & Severance & Bonuses 1,839,685 Amortization Expense (1,086,037) Bank/Court Fees 184,787 Bad Debt Expense 5,527,651 Impairments 124,308,724 Allocated Corporate Costs (6,532,213) -------------- Total Operating Expenses 170,089,368 -------------- Total Profit/Loss from Operation (170,089,368) Other Income (Expense) Interest Income 32,557,754 Interest Expense (7,438,596) Equity Earnings (247,131,159) -------------- Total Other Income (Expense) (222,012,001) Income before taxes (392,101,369) Income before expense (55,998,122) -------------- Net Income (loss) ($336,103,246) ============== National Energy & Gas Transmission, Inc. Cash Reconciliation Report For the Period December 1 to 31, 2003 Cash balance from prior balance sheet $72,985,750 Net income for month (336,103,246) Expense Not Requiring Cash: Depreciation - Other: Equity Earnings 247,131,159 Amortization (1,086,037) -------------- Total Expenses Not Requiring Cash 246,045,121 -------------- Total Cash from Operations (90,058,124) Other sources/uses of cash: Decrease (Incr): Accounts Receivable (101,682,708) Inventory - Equipment - Furniture & Fixtures - Prepaids 78,998 Accrued Taxes 117,274,971 Increase (Decr): Accounts Payable 5,819,302 Accrued Interest - Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent 11,665,834 Accrued Salaries - Accrued Sales Tax - Note Payable Taxes - Other 47,468,949 Debt 81,954,374 (Less) Unrecorded bank service charges - -------------- Total Other Sources & Uses of Cash 162,579,723 -------------- Ending Cash Balance $72,521,598 ============== Employees that provide services to National Energy & Gas Transmission, Inc., are employed and paid by a service company, NEG Services Company, LLC. NEG Services invoices NEGT, and NEGT pays NEG Services for these costs. During the period from December 1 to 31, 2003, NEGT incurred $3,350,494 for these employee services. Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: NEGT's January 2004 Monthly Operating Report ----------------------------------------------------------- National Energy & Gas Transmission, Inc. Balance Sheet As of January 31, 2004 ASSETS Cash $68,331,567 Prepetition Accounts Receivable Undetermined Postpetition Accounts Receivable 7,519,435 Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Prepaid Expenses $20,077,685 Deposits - Current Tax Assets Undetermined -------------- Total Current Assets Undetermined Land - Building - Equipment and Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subs Undetermined -------------- Total Other Assets - -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Accounts Payable $12,762,116 Postpetition Notes Payable - Postpetition Rent and Leases Payable - Postpetition Taxes Payable Undetermined Postpetition Accrued Interest - Other Postpetition Liabilities 16,319,688 -------------- Total Postpetition Liabilities 29,081,805 Prepetition Priority Claims - Prepetition Secured Debts - Prepetition Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (deficit): Capital Stock/Owner's Investments - Paid in Capital Surplus 3,086,000,000 Prepetition Retained Earnings (deficit) (3,144,050,278) Postpetition Retained Earnings (deficit) Undetermined -------------- Total Owner's Equity ($58,050,278) -------------- TOTAL LIABILITIES AND OWNER'S EQUITY Undetermined ============== National Energy & Gas Transmission, Inc. Income Statement For the Period January 1 to January 31, 2004 Operating Expenses Officer Salaries - Other Employee Salaries - Payroll Taxes - Employee Benefits - Advertising - Auto Expenses - Entertainment - Real Estate Insurance - Other Insurance $570,051 Leases other than Rent - Outside Services & Contractors 9,099,927 Professional Fees (Atty. Acct.) 299,305 Rent 455,300 Repairs & Maintenance 6,892 Supplies (88,340) Real Property Taxes - Telephone 131,386 Travel (6,493) Utilities 32,572 Other Operating Expenses: Allocated Salaries and Benefits (1,910,870) Retention & Severance & Bonuses 259,759 Amortization Expense - Bank/Court Fees 33,387 Allocated Corporate Costs - -------------- Total Operating Expenses 8,882,876 -------------- Total Profit/Loss from Operation (8,882,876) Other Income (Expense) Interest Income (918) Interest Expense - Equity Earnings (7,878,289) -------------- Total Other Income (Expense) (7,879,207) Income before taxes (16,762,083) Income before expense (3,559,260) -------------- Net Income (loss) ($13,202,823) ============== National Energy & Gas Transmission, Inc. Cash Reconciliation Report For the Period January 1 to 31, 2004 Cash balance from prior balance sheet $72,521,598 Net income for month (13,202,823) Expense Not Requiring Cash: Depreciation - Other: Equity Earnings (7,878,289) Amortization - -------------- Total Expenses Not Requiring Cash (7,878,289) -------------- Total Cash from Operations 51,440,486 Other sources/uses of cash: Decrease (Incr): Accounts Receivable 1,448,157 Inventory - Equipment - Furniture & Fixtures - Prepaids 2,325,001 Accrued Taxes 11,189,604 Increase (Decr): Accounts Payable 1,518,952 Accrued Interest - Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent - Accrued Salaries - Accrued Sales Tax - Note Payable Taxes - Other 409,364 (Less) Unrecorded bank service charges - -------------- Total Other Sources & Uses of Cash 16,891,081 -------------- Ending Cash Balance $68,331,567 ============== During the period from January 1 to 31, 2004, National Energy & Gas Transmission, Inc., incurred $498,889 for employee services provided by NEG Services Company, LLC. Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: NEGT's February 2004 Monthly Operating Report ------------------------------------------------------------ National Energy & Gas Transmission, Inc. Balance Sheet As of February 29, 2004 ASSETS Cash $63,603,967 Prepetition Accounts Receivable Undetermined Postpetition Accounts Receivable 7,912,482 Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Prepaid Expenses $18,709,646 Deposits - Current Tax Assets Undetermined -------------- Total Current Assets Undetermined Land - Building - Equipment and Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subs Undetermined -------------- Total Other Assets - -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Accounts Payable $13,299,254 Postpetition Notes Payable - Postpetition Rent and Leases Payable - Postpetition Taxes Payable Undetermined Postpetition Accrued Interest - Other Postpetition Liabilities 16,001,988 -------------- Total Postpetition Liabilities 29,301,243 Prepetition Priority Claims - Prepetition Secured Debts - Prepetition Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (deficit): Capital Stock/Owner's Investments - Paid in Capital Surplus 3,086,000,000 Prepetition Retained Earnings (deficit) (3,144,050,278) Postpetition Retained Earnings (deficit) Undetermined -------------- Total Owner's Equity ($58,050,278) -------------- TOTAL LIABILITIES AND OWNER'S EQUITY Undetermined ============== National Energy & Gas Transmission, Inc. Income Statement For the Period February 1 to February 29, 2004 Operating Expenses Officer Salaries - Other Employee Salaries - Payroll Taxes - Employee Benefits $950 Advertising - Auto Expenses - Entertainment - Real Estate Insurance - Other Insurance - Leases other than Rent - Outside Services & Contractors 5,647,423 Professional Fees (Atty. Acct.) 44,273 Rent 913,129 Repairs & Maintenance 14,357 Supplies (49,213) Real Property Taxes - Other Taxes 70 Telephone 92,730 Travel 847 Utilities 38,599 Other Operating Expenses: Allocated Salaries and Benefits (727,992) Retention & Severance & Bonuses 127,787 Amortization Expense (222,340) Bank/Court Fees 64,338 Allocated Corporate Costs - -------------- Total Operating Expenses 5,944,957 -------------- Total Profit/Loss from Operation (5,944,957) Other Income (Expense) Interest Income 110,518 Interest Expense - Equity Earnings (4,981,211) -------------- Total Other Income (Expense) (4,870,692) Income before taxes (10,815,650) Income before expense (2,566,681) -------------- Net Income (loss) ($8,248,969) ============== National Energy & Gas Transmission, Inc. Cash Reconciliation Report For the Period February 1 to 29, 2004 Cash balance from prior balance sheet $68,331,567 Net income for month (8,248,968) Expense Not Requiring Cash: Depreciation - Other: Equity Earnings (4,981,210) Amortization (222,340) -------------- Total Expenses Not Requiring Cash (5,203,550) -------------- Total Cash from Operations 54,879,047 Other sources/uses of cash: Decrease (Incr): Accounts Receivable (393,047) Inventory - Equipment - Furniture & Fixtures - Prepaids 1,368,039 Accrued Taxes 8,323,754 Increase (Decr): Accounts Payable 537,137 Accrued Interest - Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent - Accrued Salaries - Accrued Sales Tax - Note Payable Taxes - Other (317,699) (Less) Unrecorded bank service charges - -------------- Total Other Sources & Uses of Cash Not given -------------- Ending Cash Balance $64,397,232 ============== During the period from February 1 to 29, 2004, National Energy & Gas Transmission, Inc., incurred $807,431 for employee services provided by NEG Services Company, LLC. Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: NEGT's March 2004 Monthly Operating Report --------------------------------------------------------- National Energy & Gas Transmission, Inc. Balance Sheet As of March 31, 2004 ASSETS Cash $57,737,539 Prepetition Accounts Receivable Undetermined Postpetition Accounts Receivable 8,590,317 Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Prepaid Expenses $18,048,186 Deposits - Current Tax Assets Undetermined -------------- Total Current Assets Undetermined Land - Building - Equipment and Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subs Undetermined -------------- Total Other Assets - -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Accounts Payable $14,985,140 Postpetition Notes Payable - Postpetition Rent and Leases Payable - Postpetition Taxes Payable Undetermined Postpetition Accrued Interest - Other Postpetition Liabilities 12,605,210 -------------- Total Postpetition Liabilities 27,590,351 Prepetition Priority Claims - Prepetition Secured Debts - Prepetition Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (deficit): Capital Stock/Owner's Investments - Paid in Capital Surplus 3,086,000,000 Prepetition Retained Earnings (deficit) (3,144,050,278) Postpetition Retained Earnings (deficit) Undetermined -------------- Total Owner's Equity ($58,050,278) -------------- TOTAL LIABILITIES AND OWNER'S EQUITY Undetermined ============== National Energy & Gas Transmission, Inc. Income Statement For the Period March 1 to March 31, 2004 Operating Expenses Officer Salaries - Other Employee Salaries - Payroll Taxes - Employee Benefits - Advertising - Auto Expenses - Professional Fees (Atty. Acct.) - Other Insurance $578,551 Leases other than rent - Outside Services & Contractors 4,108,616 Rent 1,154,330 Repairs & Maintenance 3,022 Supplies (160,535) Real Property Taxes - Other Taxes 550 Telephone 96,534 Travel 7,206 Utilities 14,189 Other Operating Expenses: Allocated Salaries and Benefits (1,740,476) Retention & Severance & Bonuses 151,594 Amortization Expense (222,340) Bank/Court Fees 25,877 Allocated Corporate Costs - -------------- Total Operating Expenses 4,017,117 -------------- Total Profit/Loss from Operation (4,017,117) Other Income (Expense) Interest Income 17,774,533 Interest Expense - Equity Earnings - -------------- Total Other Income (Expense) 17,774,533 Income before taxes 13,757,416 Income before expense - -------------- Net Income (loss) $13,757,416 ============== National Energy & Gas Transmission, Inc. Cash Reconciliation Report For the Period March 1 to 31, 2004 Cash balance from prior balance sheet $63,603,967 Net income for month 13,757,416 Expense Not Requiring Cash: Depreciation - Other: Equity Earnings - Amortization (222,340) -------------- Total Expenses Not Requiring Cash (222,340) -------------- Total Cash from Operations 77,139,043 Other sources/uses of cash: Decrease (Incr): Accounts Receivable (677,834) Inventory - Equipment - Furniture & Fixtures - Prepaids 661,459 Accrued Taxes (4,260,892) Increase (Decr): Accounts Payable 1,685,886 Accrued Sales Tax - Accrued Professional Fees - Accrued Rent (13,319,162) Accrued Salaries - Note Payable Taxes - Other (3,396,778) (Less) Unrecorded bank service charges - -------------- Total Other Sources & Uses of Cash Not Given -------------- Ending Cash Balance $57,831,722 ============== During the period from March 1 to 31, 2004, National Energy & Gas Transmission, Inc., incurred $784,910 for employee services provided by NEG Services Company, LLC. Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: NEGT's April 2004 Monthly Operating Report --------------------------------------------------------- National Energy & Gas Transmission, Inc. Balance Sheet As of April 30, 2004 ASSETS Cash $53,286,774 Prepetition Accounts Receivable Undetermined Postpetition Accounts Receivable $6,072,879 Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Prepaid Expenses Undetermined Deposits - Current Tax Assets Undetermined -------------- Total Current Assets Undetermined Land - Building - Equipment and Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subs Undetermined -------------- Total Other Assets - -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Accounts Payable $19,335,610 Postpetition Notes Payable - Postpetition Rent and Leases Payable - Postpetition Taxes Payable Undetermined Postpetition Accrued Interest - Other Postpetition Liabilities 15,606,183 -------------- Total Postpetition Liabilities 34,941,793 Prepetition Priority Claims - Prepetition Secured Debts - Prepetition Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (deficit): Capital Stock/Owner's Investments - Paid in Capital Surplus 3,086,000,000 Prepetition Retained Earnings (deficit) (3,144,050,278) Postpetition Retained Earnings (deficit) Undetermined -------------- Total Owner's Equity ($58,050,278) -------------- TOTAL LIABILITIES AND OWNER'S EQUITY Undetermined ============== National Energy & Gas Transmission, Inc. Income Statement For the Period April 1 to April 30, 2004 Operating Expenses Officer Salaries - Other Employee Salaries - Payroll Taxes - Employee Benefits - Advertising - Auto Expenses - Professional Fees (Atty. Acct.) - Other Insurance $735,051 Leases other than rent - Outside Services & Contractors 10,338,269 Rent 1,897,407 Repairs & Maintenance 6,403 Supplies (75,627) Real Property Taxes - Other Taxes 25 Telephone (31,678) Travel 1,536 Utilities - Other Operating Expenses: Allocated Salaries and Benefits (1,609,625) Retention & Severance & Bonuses 365,585 Amortization Expense (1,135,499) Bank/Court Fees 28,053 Allocated Corporate Costs - -------------- Total Operating Expenses 10,545,979 -------------- Total Profit/Loss from Operation (10,545,979) Other Income (Expense) Interest Income 6,190,842 Interest Expense - Equity Earnings - -------------- Total Other Income (Expense) 6,190,842 Income before taxes (4,355,137) Income before expense - -------------- Net Income (loss) ($4,355,137) ============== National Energy & Gas Transmission, Inc. Cash Reconciliation Report For the Period April 1 to 30, 2004 Cash balance from prior balance sheet $57,737,539 Net income for month (4,355,136) Expense Not Requiring Cash: Depreciation - Other: Equity Earnings - Amortization - -------------- Total Expenses Not Requiring Cash - -------------- Total Cash from Operations 53,382,402 Other sources/uses of cash: Decrease (Incr): Accounts Receivable 2,517,437 Inventory - Equipment - Furniture & Fixtures - Prepaids 642,002 Accrued Taxes - Increase (Decr): Accounts Payable 4,350,469 Accrued Interest (6,146,318) Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent - Accrued Salaries - Note Payable Taxes - Other (1,459,219) (Less) Unrecorded bank service charges - -------------- Total Other Sources & Uses of Cash Not Given -------------- Ending Cash Balance $53,286,774 ============== During the period from April 1 to 30, 2004, National Energy & Gas Transmission, Inc., incurred $332,408 for employee services provided by NEG Services Company, LLC. Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: NEGT's May 2004 Monthly Operating Report ------------------------------------------------------- National Energy & Gas Transmission, Inc. Balance Sheet As of May 31, 2004 ASSETS Cash $50,929,368 Prepetition Accounts Receivable Undetermined Postpetition Accounts Receivable 5,906,767 Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Prepaid Expenses $14,961,549 Deposits - Current Tax Assets Undetermined -------------- Total Current Assets Undetermined Land - Building - Equipment and Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subs Undetermined -------------- Total Other Assets - -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Accounts Payable $18,445,248 Postpetition Notes Payable - Postpetition Rent and Leases Payable - Postpetition Taxes Payable Undetermined Postpetition Accrued Interest - Other Postpetition Liabilities Undetermined -------------- Total Postpetition Liabilities 18,445,248 Prepetition Priority Claims - Prepetition Secured Debts - Prepetition Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (deficit): Capital Stock/Owner's Investments - Paid in Capital Surplus 3,086,000,000 Prepetition Retained Earnings (deficit) (3,144,050,278) Postpetition Retained Earnings (deficit) Undetermined -------------- Total Owner's Equity ($58,050,278) -------------- TOTAL LIABILITIES AND OWNER'S EQUITY Undetermined ============== National Energy & Gas Transmission, Inc. Income Statement For the Period May 1 to May 31, 2004 Operating Expenses Officer Salaries - Other Employee Salaries - Payroll Taxes - Employee Benefits - Advertising - Auto Expenses - Other Insurance $570,757 Leases other than rent - Outside Services & Contractors 1,505,942 Professional Fees (Atty. Acct.) 277,585 Rent (498,058) Repairs & Maintenance 8,544 Supplies (40,857) Real Property Taxes - Other Taxes 25 Telephone 126,861 Travel (916) Utilities - Other Operating Expenses: Allocated Salaries and Benefits (272,528) Retention & Severance & Bonuses 671,903 Amortization Expense (388,084) Bank/Court Fees 30,009 Allocated Corporate Costs - -------------- Total Operating Expenses 1,991,183 -------------- Total Profit/Loss from Operation (1,991,183) Other Income (Expense) Interest Income 6,245,311 Interest Expense - Equity Earnings - -------------- Total Other Income (Expense) 6,245,311 Income before taxes 4,254,129 Income before expense - -------------- Net Income (loss) $4,254,129 ============== National Energy & Gas Transmission, Inc. Cash Reconciliation Report For the Period May 1 to 31, 2004 Cash balance from prior balance sheet $53,286,774 Net income for month 4,254,128 Expense Not Requiring Cash: Depreciation - Other: Equity Earnings - Amortization - -------------- Total Expenses Not Requiring Cash - -------------- Total Cash from Operations 57,540,903 Other sources/uses of cash: Decrease (Incr): Accounts Receivable 166,111 Inventory - Equipment - Furniture & Fixtures - Prepaids 644,633 Accrued Taxes - Increase (Decr): Accounts Payable (890,361) Accrued Interest (6,202,314) Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent - Accrued Salaries - Note Payable Taxes - Other (329,604) (Less) Unrecorded bank service charges - -------------- Total Other Sources & Uses of Cash Not Given -------------- Ending Cash Balance $50,929,368 ============== During the period from May 1 to 31, 2004, National Energy & Gas Transmission, Inc., incurred $559,773 for employee services provided by NEG Services Company, LLC. Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: NEGT's June 2004 Monthly Operating Report -------------------------------------------------------- National Energy & Gas Transmission, Inc. Balance Sheet As of June 30, 2004 ASSETS Cash $44,334,278 Prepetition Accounts Receivable Undetermined Postpetition Accounts Receivable 6,346,711 Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Prepaid Expenses $14,569,273 Deposits - Current Tax Assets Undetermined -------------- Total Current Assets Undetermined Land - Building - Equipment and Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subs Undetermined -------------- Total Other Assets - -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Accounts Payable $16,455,608 Postpetition Notes Payable - Postpetition Rent and Leases Payable - Postpetition Taxes Payable Undetermined Postpetition Accrued Interest - Other Postpetition Liabilities Undetermined -------------- Total Postpetition Liabilities 16,455,608 Prepetition Priority Claims - Prepetition Secured Debts - Prepetition Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (deficit): Capital Stock/Owner's Investments - Paid in Capital Surplus 3,086,000,000 Prepetition Retained Earnings (deficit) (3,144,050,278) Postpetition Retained Earnings (deficit) Undetermined -------------- Total Owner's Equity ($58,050,278) -------------- TOTAL LIABILITIES AND OWNER'S EQUITY Undetermined ============== National Energy & Gas Transmission, Inc. Income Statement For the Period June 1 to June 30, 2004 Operating Expenses Officer Salaries - Other Employee Salaries - Payroll Taxes - Employee Benefits - Advertising - Auto Expenses - Other Insurance $570,051 Leases other than rent - Outside Services & Contractors 5,498,048 Professional Fees (Atty. Acct.) 42,790 Rent (3,664,709) Repairs & Maintenance 35,134 Supplies 74,074 Real Property Taxes - Other Taxes - Telephone 101,237 Travel 10,116 Utilities 115,529 Other Operating Expenses: Allocated Salaries and Benefits (1,456,688) Retention & Severance & Bonuses 181,397 Amortization Expense (388,084) Bank/Court Fees 26,573 Allocated Corporate Costs - -------------- Total Operating Expenses 1,145,467 -------------- Total Profit/Loss from Operation (1,145,467) Other Income (Expense) Interest Income 6,295,905 Interest Expense - Equity Earnings - -------------- Total Other Income (Expense) 6,295,905 Income before taxes 5,150,438 Income before expense - -------------- Net Income (loss) $5,150,438 ============== National Energy & Gas Transmission, Inc. Cash Reconciliation Report For the Period June 1 to 30, 2004 Cash balance from prior balance sheet $50,929,368 Net income for month 5,150,438 Expense Not Requiring Cash: Depreciation - Other: Equity Earnings - Amortization - -------------- Total Expenses Not Requiring Cash - -------------- Total Cash from Operations 56,079,806 Other sources/uses of cash: Decrease (Incr): Accounts Receivable (439,943) Inventory - Equipment - Furniture & Fixtures - Prepaids 392,275 Accrued Taxes - Increase (Decr): Accounts Payable (1,989,639) Accrued Interest (6,258,820) Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent - Accrued Salaries - Note Payable Taxes - Other (3,449,399) (Less) Unrecorded bank service charges - -------------- Total Other Sources & Uses of Cash Not Given -------------- Ending Cash Balance $44,334,278 ============== During the period from June 1 to 30, 2004, National Energy & Gas Transmission, Inc., incurred $459,617 for employee services provided by NEG Services Company, LLC. Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: NEGT's July 2004 Monthly Operating Report -------------------------------------------------------- National Energy & Gas Transmission, Inc. Balance Sheet As of July 31, 2004 ASSETS Cash $38,580,397 Prepetition Accounts Receivable Undetermined Postpetition Accounts Receivable 7,125,745 Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Prepaid Expenses $14,515,287 Deposits - Current Tax Assets Undetermined -------------- Total Current Assets Undetermined Land - Building - Equipment and Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subs Undetermined -------------- Total Other Assets - -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Accounts Payable $15,763,809 Postpetition Notes Payable - Postpetition Rent and Leases Payable - Postpetition Taxes Payable Undetermined Postpetition Accrued Interest - Other Postpetition Liabilities Undetermined -------------- Total Postpetition Liabilities 15,763,809 Prepetition Priority Claims - Prepetition Secured Debts - Prepetition Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (deficit): Capital Stock/Owner's Investments - Paid in Capital Surplus 3,086,000,000 Prepetition Retained Earnings (deficit) (3,144,050,278) Postpetition Retained Earnings (deficit) Undetermined -------------- Total Owner's Equity ($58,050,278) -------------- TOTAL LIABILITIES AND OWNER'S EQUITY Undetermined ============== National Energy & Gas Transmission, Inc. Income Statement For the Period July 1 to July 31, 2004 Operating Expenses Officer Salaries - Other Employee Salaries - Payroll Taxes - Employee Benefits - Advertising - Auto Expenses - Other Insurance $198,933 Leases other than rent - Outside Services & Contractors 2,923,420 Professional Fees (Atty. Acct.) 147,941 Rent 810,005 Repairs & Maintenance 23,899 Supplies 154,877 Real Property Taxes - Other Taxes 75 Telephone 92,314 Travel 20,634 Utilities 48,071 Other Operating Expenses: Allocated Salaries and Benefits (749,854) Retention & Severance & Bonuses 809,293 Amortization Expense - Bank/Court Fees 25,779 Allocated Corporate Costs - -------------- Total Operating Expenses 4,505,389 -------------- Total Profit/Loss from Operation (4,505,389) Other Income (Expense) Interest Income 37,130 Interest Expense - Equity Earnings - -------------- Total Other Income (Expense) 37,130 Income before taxes (4,468,260) Income before expense - -------------- Net Income (loss) ($4,468,260) ============== National Energy & Gas Transmission, Inc. Cash Reconciliation Report For the Period July 1 to 31, 2004 Cash balance from prior balance sheet $44,334,278 Net income for month (4,468,259) Expense Not Requiring Cash: Depreciation - Other: Equity Earnings - Amortization - -------------- Total Expenses Not Requiring Cash - -------------- Total Cash from Operations 39,866,018 Other sources/uses of cash: Decrease (Incr): Accounts Receivable (779,034) Inventory - Equipment - Furniture & Fixtures - Prepaids 53,986 Accrued Taxes - Increase (Decr): Accounts Payable (691,798) Accrued Interest - Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent - Accrued Salaries - Note Payable Taxes - Other 131,226 (Less) Unrecorded bank service charges - -------------- Total Other Sources & Uses of Cash Not Given -------------- Ending Cash Balance $38,580,397 ============== During the period from July 1 to 31, 2004, National Energy & Gas Transmission, Inc., incurred $1,569,604 for employee services provided by NEG Services Company, LLC. Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: NEGT's August 2004 Monthly Operating Report ---------------------------------------------------------- National Energy & Gas Transmission, Inc. Balance Sheet As of August 31, 2004 ASSETS Cash $29,727,789 Prepetition Accounts Receivable Undetermined Postpetition Accounts Receivable 4,036,177 Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Prepaid Expenses $4,916,087 Deposits - Current Tax Assets Undetermined -------------- Total Current Assets Undetermined Land - Building - Equipment and Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subs Undetermined -------------- Total Other Assets - -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Accounts Payable $14,820,047 Postpetition Notes Payable - Postpetition Rent and Leases Payable - Postpetition Taxes Payable Undetermined Postpetition Accrued Interest - Other Postpetition Liabilities Undetermined -------------- Total Postpetition Liabilities 14,820,047 Prepetition Priority Claims - Prepetition Secured Debts - Prepetition Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (deficit): Capital Stock/Owner's Investments - Paid in Capital Surplus 3,086,000,000 Prepetition Retained Earnings (deficit) (3,144,050,278) Postpetition Retained Earnings (deficit) Undetermined -------------- Total Owner's Equity ($58,050,278) -------------- TOTAL LIABILITIES AND OWNER'S EQUITY Undetermined ============== National Energy & Gas Transmission, Inc. Income Statement For the Period August 1 to August 31, 2004 Operating Expenses Officer Salaries - Other Employee Salaries - Payroll Taxes - Employee Benefits $849 Advertising - Auto Expenses - Other Insurance 270,590 Leases other than rent - Outside Services & Contractors 7,996,618 Professional Fees (Atty. Acct.) (57,060) Rent 1,105,355 Repairs & Maintenance 15,735 Supplies 22,342 Real Property Taxes - Other Taxes - Telephone 64,611 Travel (438) Utilities 33,884 Other Operating Expenses: Allocated Salaries and Benefits (1,510,623) Retention & Severance & Bonuses 219,046 Amortization Expense - Bank/Court Fees 25,635 Allocated Corporate Costs - -------------- Total Operating Expenses 8,186,544 -------------- Total Profit/Loss from Operation (8,186,544) Other Income (Expense) Interest Income 37,217 Interest Expense - Equity Earnings - -------------- Total Other Income (Expense) 37,217 Income before taxes (8,149,327) Income before expense - -------------- Net Income (loss) ($8,149,327) ============== National Energy & Gas Transmission, Inc. Cash Reconciliation Report For the Period August 1 to 31, 2004 Cash balance from prior balance sheet $38,580,397 Net income for month (8,149,327) Expense Not Requiring Cash: Depreciation - Other: Equity Earnings - Amortization - -------------- Total Expenses Not Requiring Cash - -------------- Total Cash from Operations 30,431,070 Other sources/uses of cash: Decrease (Incr): Accounts Receivable 3,089,568 Inventory - Equipment - Furniture & Fixtures - Prepaids 459,014 Accrued Taxes - Increase (Decr): Accounts Payable (943,762) Accrued Interest - Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent - Accrued Salaries - Note Payable Taxes - Other (3,308,102) (Less) Unrecorded bank service charges - -------------- Total Other Sources & Uses of Cash Not Given -------------- Ending Cash Balance $29,727,789 ============== During the period from August 1 to 31, 2004, National Energy & Gas Transmission, Inc., incurred ($118,289) for employee services provided by NEG Services Company, LLC. Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: NEGT's September 2004 Monthly Operating Report ------------------------------------------------------------- National Energy & Gas Transmission, Inc. Balance Sheet As of September 30, 2004 ASSETS Cash $19,619,981 Prepetition Accounts Receivable Undetermined Postpetition Accounts Receivable 4,266,020 Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Prepaid Expenses $4,911,726 Deposits - Current Tax Assets Undetermined -------------- Total Current Assets Undetermined Land - Building - Equipment and Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subs Undetermined -------------- Total Other Assets - -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Accounts Payable $11,867,562 Postpetition Notes Payable - Postpetition Rent and Leases Payable - Postpetition Taxes Payable Undetermined Postpetition Accrued Interest - Other Postpetition Liabilities Undetermined -------------- Total Postpetition Liabilities 11,867,562 Prepetition Priority Claims - Prepetition Secured Debts - Prepetition Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (deficit): Capital Stock/Owner's Investments - Paid in Capital Surplus 3,086,000,000 Prepetition Retained Earnings (deficit) (3,144,050,278) Postpetition Retained Earnings (deficit) Undetermined -------------- Total Owner's Equity ($58,050,278) -------------- TOTAL LIABILITIES AND OWNER'S EQUITY Undetermined ============== National Energy & Gas Transmission, Inc. Income Statement For the Period September 1 to September 30, 2004 Operating Expenses Officer Salaries - Other Employee Salaries - Payroll Taxes - Employee Benefits - Advertising - Auto Expenses - Other Insurance 39,151 Leases other than rent - Outside Services & Contractors 2,652,235 Professional Fees (Atty. Acct.) 27,664 Rent 221,334 Repairs & Maintenance 6,059 Supplies (55,200) Real Property Taxes - Other Taxes 25 Telephone 72,006 Travel 45,259 Utilities - Other Operating Expenses: Allocated Salaries and Benefits (442,700) Retention & Severance & Bonuses (638,529) Amortization Expense - Bank/Court Fees 20,303 Allocated Corporate Costs - -------------- Total Operating Expenses 1,947,608 -------------- Total Profit/Loss from Operation (1,947,608) Other Income (Expense) Interest Income 30,446 Interest Expense - Equity Earnings - -------------- Total Other Income (Expense) 30,446 Income before taxes (1,917,163) Income before expense - -------------- Net Income (loss) ($1,917,163) ============== National Energy & Gas Transmission, Inc. Cash Reconciliation Report For the Period September 1 to 30, 2004 Cash balance from prior balance sheet $29,727,789 Net income for month (1,917,162) Expense Not Requiring Cash: Depreciation - Other: Equity Earnings - Amortization - -------------- Total Expenses Not Requiring Cash - -------------- Total Cash from Operations 27,810,626 Other sources/uses of cash: Decrease (Incr): Accounts Receivable (229,842) Inventory - Equipment - Furniture & Fixtures - Prepaids 4,361 Accrued Taxes (7,209,000) Increase (Decr): Accounts Payable (2,952,484) Accrued Interest - Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent - Accrued Salaries - Note Payable Taxes - Other 2,196,320 (Less) Unrecorded bank service charges - -------------- Total Other Sources & Uses of Cash Not Given -------------- Ending Cash Balance $19,619,981 ============== During the period from September 1 to 30, 2004, National Energy & Gas Transmission, Inc., incurred $810,370 for employee services provided by NEG Services Company, LLC. Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ESV's March 2004 Monthly Operating Report -------------------------------------------------------- Energy Service Ventures, Inc. Balance Sheet As of March 31, 2004 ASSETS Current Assets Cash $1,890,171 Prepetition Accounts Receivable 3,575,190 Postpetition Accounts Receivable - Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Other Current Assets Allowance for Bad Debts (2,791,840) Deposits - Current Tax Assets - -------------- Total Current Assets $2,673,521 Fixed Assets Land - Building - Equipment, Furniture & Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Other Assets (Identify) Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subsidiaries - -------------- Total Other Assets - -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $14,928 Notes Payable - Rent and Leases Payable - Accrued Interest - Other - -------------- Total Postpetition Liabilities 14,928 Prepetition Liabilities Priority Claims - Secured Debts - Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owners' Investments 10,000 Paid-In Capital Surplus 55,048,465 Retained Earnings Prepetition (76,394,062) Postpetition (71,761) -------------- Total Owner's Equity ($21,407,357) -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== Energy Service Ventures, Inc. Income Statement For the Period March 1 to March 31, 2004 Total Sales/Income - COST OF SALES: Purchases of Inventory - Purchased Services - Other - -------------- Total Cost of Sales - -------------- Gross Profit - OPERATING EXPENSES: Officer Salaries - Other Employee Salaries - Taxes (Payroll) - Employee Benefits - Advertising - Auto. Expenses - Entertainment - Insurance (Real Estate) - Insurance (Other) - Leases (Other than Rent) - Outside Services & Contractors - Professional Fees (Atty. Accts.) - Rents - Restructuring Expense - Repairs & Maintenance - Supplies - Taxes (Real Property) - Taxes (Other) - Telephone - Travel - Utilities - Other Operating Expenses Power costs - Bank Fees - -------------- Total Operating Expenses - -------------- Profit/Loss from Operation - Other Income (Expenses): Interest Income $6,902 Interest Expense - Equity Earnings - -------------- Total Other Income (Expenses) 6,902 -------------- Income Before Taxes 6,902 Income Taxes Expense 2,623 -------------- Net Income (Loss) $4,279 ============== Energy Service Ventures, Inc. Cash Reconciliation Report For the Period March 1 to March 31, 2004 Cash balance from prior balance sheet $1,889,345 Net income for month 4,279 Expense Not Requiring Cash: Taxes 2,623 Interest Income (6,076) -------------- Total Expenses Not Requiring Cash (3,453) -------------- Total Cash from Operations 1,890,171 Other sources/uses of cash: Decrease (Increase): Accounts Receivable - Inventory - Equipment - Furniture & Fixtures - Prepaids - Increase (Decrease): Accounts Payable - Accrued Interest - Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent - Accrued Salaries - Accrued Sales Tax - Note Payable Taxes - (Less) Unrecorded Bank Service Charges - -------------- Total Other Sources & Uses of Cash - -------------- Ending Cash Balance $1,890,171 ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ESV's April 2004 Monthly Operating Report -------------------------------------------------------- Energy Service Ventures, Inc. Balance Sheet As of April 30, 2004 ASSETS Current Assets Cash $1,891,421 Prepetition Accounts Receivable 3,575,924 Postpetition Accounts Receivable - Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Other Current Assets Allowance for Bad Debts (2,791,840) Deposits - Current Tax Assets - -------------- Total Current Assets $2,675,505 Fixed Assets Land - Building - Equipment, Furniture & Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Other Assets (Identify) Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subsidiaries - -------------- Total Other Assets - -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $14,928 Notes Payable - Rent and Leases Payable - Accrued Interest - Other - -------------- Total Postpetition Liabilities 14,928 Prepetition Liabilities Priority Claims - Secured Debts - Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owners' Investments 10,000 Paid-In Capital Surplus 55,048,465 Retained Earnings Prepetition (76,394,062) Postpetition (66,090) -------------- Total Owner's Equity ($21,401,686) -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== Energy Service Ventures, Inc. Income Statement For the Period April 1 to April 30, 2004 Total Sales/Income - COST OF SALES: Purchases of Inventory - Purchased Services - Other - -------------- Total Cost of Sales - -------------- Gross Profit - OPERATING EXPENSES: Officer Salaries - Other Employee Salaries - Taxes (Payroll) - Employee Benefits $2,037 Advertising - Auto. Expenses - Entertainment - Insurance (Real Estate) - Insurance (Other) - Leases (Other than Rent) - Outside Services & Contractors - Professional Fees (Atty. Accts.) (3,625) Rents - Restructuring Expense (795) Repairs & Maintenance - Supplies (5,318) Taxes (Real Property) - Taxes (Other) (710) Telephone - Travel - Utilities - Other Operating Expenses Power costs - Bank Fees - -------------- Total Operating Expenses (8,412) -------------- Profit/Loss from Operation 8,412 Other Income (Expenses): Interest Income 734 Interest Expense - Equity Earnings - -------------- Total Other Income (Expenses) 734 -------------- Income Before Taxes 9,146 Income Taxes Expense 3,475 -------------- Net Income (Loss) $5,671 ============== Energy Service Ventures, Inc. Cash Reconciliation Report For the Period April 1 to April 30, 2004 Cash balance from prior balance sheet $1,890,171 Net income for month 5,671 Expense Not Requiring Cash: Taxes 3,475 Interest Income (734) -------------- Total Expenses Not Requiring Cash 2,741 -------------- Total Cash from Operations 1,898,584 Other sources/uses of cash: Decrease (Increase): Accounts Receivable (7,162) Inventory - Equipment - Furniture & Fixtures - Prepaids - Increase (Decrease): Accounts Payable - Accrued Interest - Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent - Accrued Salaries - Accrued Sales Tax - Note Payable Taxes - (Less) Unrecorded Bank Service Charges - -------------- Total Other Sources & Uses of Cash (7,162) -------------- Ending Cash Balance $1,891,421 ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ESV's May 2004 Monthly Operating Report ------------------------------------------------------ Energy Service Ventures, Inc. Balance Sheet As of May 31, 2004 ASSETS Current Assets Cash $1,892,254 Prepetition Accounts Receivable 3,575,924 Postpetition Accounts Receivable - Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Other Current Assets Allowance for Bad Debts (2,791,840) Deposits - Current Tax Assets - -------------- Total Current Assets $2,676,338 Fixed Assets Land - Building - Equipment, Furniture & Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Other Assets (Identify) Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subsidiaries - -------------- Total Other Assets - -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $14,928 Notes Payable - Rent and Leases Payable - Accrued Interest - Other - -------------- Total Postpetition Liabilities 14,928 Prepetition Liabilities Priority Claims - Secured Debts - Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owners' Investments 10,000 Paid-In Capital Surplus 55,048,465 Retained Earnings Prepetition (76,394,062) Postpetition (54,688) -------------- Total Owner's Equity ($21,390,284) -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== Energy Service Ventures, Inc. Income Statement For the Period May 1 to May 31, 2004 Total Sales/Income - COST OF SALES: Purchases of Inventory - Purchased Services - Other - -------------- Total Cost of Sales - -------------- Gross Profit - OPERATING EXPENSES: Officer Salaries - Other Employee Salaries - Taxes (Payroll) - Employee Benefits $17,557 Advertising - Auto. Expenses - Entertainment - Insurance (Real Estate) - Insurance (Other) - Leases (Other than Rent) - Outside Services & Contractors - Professional Fees (Atty. Accts.) - Rents - Restructuring Expense (833) Repairs & Maintenance - Supplies - Taxes (Real Property) - Taxes (Other) - Telephone - Travel - Utilities - Other Operating Expenses Power costs - Bank Fees - -------------- Total Operating Expenses (18,389) -------------- Profit/Loss from Operation 18,389 Other Income (Expenses): Interest Income - Interest Expense - Equity Earnings - -------------- Total Other Income (Expenses) - -------------- Income Before Taxes 18,389 Income Taxes Expense 6,988 -------------- Net Income (Loss) $11,401 ============== Energy Service Ventures, Inc. Cash Reconciliation Report For the Period May 1 to May 31, 2004 Cash balance from prior balance sheet $1,891,421 Net income for month 11,401 Expense Not Requiring Cash: Taxes 6,988 Interest Income - -------------- Total Expenses Not Requiring Cash 6,988 -------------- Total Cash from Operations 1,909,811 Other sources/uses of cash: Decrease (Increase): Accounts Receivable (17,557) Inventory - Equipment - Furniture & Fixtures - Prepaids - Increase (Decrease): Accounts Payable - Accrued Interest - Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent - Accrued Salaries - Accrued Sales Tax - Note Payable Taxes - (Less) Unrecorded Bank Service Charges - -------------- Total Other Sources & Uses of Cash (17,557) -------------- Ending Cash Balance $1,892,254 ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ESV's June 2004 Monthly Operating Report ------------------------------------------------------- Energy Service Ventures, Inc. Balance Sheet As of June 30, 2004 ASSETS Current Assets Cash $1,893,082 Prepetition Accounts Receivable 3,575,924 Postpetition Accounts Receivable - Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Other Current Assets Allowance for Bad Debts (2,791,840) Deposits - Current Tax Assets - -------------- Total Current Assets $2,677,166 Fixed Assets Land - Building - Equipment, Furniture & Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Other Assets (Identify) Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subsidiaries - -------------- Total Other Assets - -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $14,928 Notes Payable - Rent and Leases Payable - Accrued Interest - Other - -------------- Total Postpetition Liabilities 14,928 Prepetition Liabilities Priority Claims - Secured Debts - Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owners' Investments 10,000 Paid-In Capital Surplus 55,048,465 Retained Earnings Prepetition (76,394,062) Postpetition (54,175) -------------- Total Owner's Equity ($21,389,771) -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== Energy Service Ventures, Inc. Income Statement For the Period June 1 to June 30, 2004 Total Sales/Income - COST OF SALES: Purchases of Inventory - Purchased Services - Other - -------------- Total Cost of Sales - -------------- Gross Profit - OPERATING EXPENSES: Officer Salaries - Other Employee Salaries - Taxes (Payroll) - Employee Benefits - Advertising - Auto. Expenses - Entertainment - Insurance (Real Estate) - Insurance (Other) - Leases (Other than Rent) - Outside Services & Contractors - Professional Fees (Atty. Accts.) - Rents - Restructuring Expense ($828) Repairs & Maintenance - Supplies - Taxes (Real Property) - Taxes (Other) - Telephone - Travel - Utilities - Other Operating Expenses Power costs - Bank Fees - -------------- Total Operating Expenses (827) -------------- Profit/Loss from Operation 827 Other Income (Expenses): Interest Income - Interest Expense - Equity Earnings - -------------- Total Other Income (Expenses) - -------------- Income Before Taxes 827 Income Taxes Expense 314 -------------- Net Income (Loss) $513 ============== Energy Service Ventures, Inc. Cash Reconciliation Report For the Period June 1 to June 30, 2004 Cash balance from prior balance sheet $1,892,254 Net income for month 513 Expense Not Requiring Cash: Taxes 314 Interest Income - -------------- Total Expenses Not Requiring Cash 314 -------------- Total Cash from Operations 1,893,082 Other sources/uses of cash: Decrease (Increase): Accounts Receivable - Inventory - Equipment - Furniture & Fixtures - Prepaids - Increase (Decrease): Accounts Payable - Accrued Interest - Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent - Accrued Salaries - Accrued Sales Tax - Note Payable Taxes - (Less) Unrecorded Bank Service Charges - -------------- Total Other Sources & Uses of Cash - -------------- Ending Cash Balance $1,893,082 ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: Quantum's March 2004 Monthly Operating Report ------------------------------------------------------------ Quantum Ventures Balance Sheet As of March 31, 2004 ASSETS Current Assets Cash - Prepetition Accounts Receivable - Postpetition Accounts Receivable - Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Other Current Assets Prepaid Expenses - Deposits - Current Tax Assets Undetermined -------------- Total Current Assets Undetermined Fixed Assets Land - Building - Equipment, Furniture & Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Other Assets (Identify) Amortizable Costs - Deferred Tax Assets - Investments in Subsidiaries ($21,223,185) -------------- Total Other Assets ($21,223,185) -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable - Notes Payable - Rent and Leases Payable - Accrued Interest - Other - -------------- Total Postpetition Liabilities - Prepetition Liabilities Priority Claims - Secured Debts - Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owners' Investments $100 Paid-In Capital Surplus 233,222,604 Retained Earnings Prepetition (254,177,934) Postpetition - -------------- Total Owner's Equity ($20,955,230) -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== Beginning February 2004, Quantum Ventures included only its Balance Sheet in its Monthly Operating Report. Quantum is a holding company, which owns and manages two subsidiaries -- debtor Energy Services Venture and the non-debtor consulting firm, Barakat & Chamberlain, Inc., which is currently inactive. Quantum has few creditors and no significant assets, other than its interest in its subsidiaries, which, as of June 30, 2003, had a negative value. Pursuant to the ET Debtors' Plan of Liquidation, Quantum will be dissolved as of the Effective Date. Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: Quantum's April 2004 Monthly Operating Report ------------------------------------------------------------ Quantum Ventures Balance Sheet As of April 30, 2004 ASSETS Current Assets Cash - Prepetition Accounts Receivable - Postpetition Accounts Receivable - Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Other Current Assets Prepaid Expenses - Deposits - Current Tax Assets Undetermined -------------- Total Current Assets Undetermined Fixed Assets Land - Building - Equipment, Furniture & Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Other Assets (Identify) Amortizable Costs - Deferred Tax Assets - Investments in Subsidiaries ($21,223,185) -------------- Total Other Assets ($21,223,185) -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable - Notes Payable - Rent and Leases Payable - Accrued Interest - Other - -------------- Total Postpetition Liabilities - Prepetition Liabilities Priority Claims - Secured Debts - Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owners' Investments $100 Paid-In Capital Surplus 233,222,604 Retained Earnings Prepetition (254,177,934) Postpetition - -------------- Total Owner's Equity ($20,955,230) -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: Quantum's May 2004 Monthly Operating Report ---------------------------------------------------------- Quantum Ventures Balance Sheet As of May 31, 2004 ASSETS Current Assets Cash - Prepetition Accounts Receivable - Postpetition Accounts Receivable - Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Other Current Assets Prepaid Expenses - Deposits - Current Tax Assets Undetermined -------------- Total Current Assets Undetermined Fixed Assets Land - Building - Equipment, Furniture & Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Other Assets (Identify) Amortizable Costs - Deferred Tax Assets - Investments in Subsidiaries ($21,223,185) -------------- Total Other Assets ($21,223,185) -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable - Notes Payable - Rent and Leases Payable - Accrued Interest - Other - -------------- Total Postpetition Liabilities - Prepetition Liabilities Priority Claims - Secured Debts - Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owners' Investments $100 Paid-In Capital Surplus 233,222,604 Retained Earnings Prepetition (254,177,934) Postpetition - -------------- Total Owner's Equity ($20,955,230) -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: Quantum's June 2004 Monthly Operating Report ----------------------------------------------------------- Quantum Ventures Balance Sheet As of June 30, 2004 ASSETS Current Assets Cash - Prepetition Accounts Receivable - Postpetition Accounts Receivable - Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Other Current Assets Prepaid Expenses - Deposits - Current Tax Assets Undetermined -------------- Total Current Assets Undetermined Fixed Assets Land - Building - Equipment, Furniture & Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Other Assets (Identify) Amortizable Costs - Deferred Tax Assets - Investments in Subsidiaries ($21,223,185) -------------- Total Other Assets ($21,223,185) -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable - Notes Payable - Rent and Leases Payable - Accrued Interest - Other - -------------- Total Postpetition Liabilities - Prepetition Liabilities Priority Claims - Secured Debts - Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owners' Investments $100 Paid-In Capital Surplus 233,222,604 Retained Earnings Prepetition (254,177,934) Postpetition - -------------- Total Owner's Equity ($20,955,230) -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: Quantum's July 2004 Monthly Operating Report ----------------------------------------------------------- Quantum Ventures Balance Sheet As of July 31, 2004 ASSETS Current Assets Cash - Prepetition Accounts Receivable - Postpetition Accounts Receivable - Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Other Current Assets Prepaid Expenses - Deposits - Current Tax Assets Undetermined -------------- Total Current Assets Undetermined Fixed Assets Land - Building - Equipment, Furniture & Fixtures - Less Accumulated Depreciation - -------------- Total Fixed Assets - Other Assets (Identify) Amortizable Costs - Deferred Tax Assets - Investments in Subsidiaries ($21,223,185) -------------- Total Other Assets ($21,223,185) -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable - Notes Payable - Rent and Leases Payable - Accrued Interest - Other - -------------- Total Postpetition Liabilities - Prepetition Liabilities Priority Claims - Secured Debts - Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owners' Investments $100 Paid-In Capital Surplus 233,222,604 Retained Earnings Prepetition (254,177,934) Postpetition - -------------- Total Owner's Equity ($20,955,230) -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ET Gas' August 2004 Monthly Operating Report ----------------------------------------------------------- NEGT Energy Trading-Gas Corporation Unaudited Balance Sheet As of August 31, 2004 ASSETS Current Assets Cash $10,482,611 Accounts Receivable-Trade 24,039,948 Valuation from Unrealized Commodity Contracts Undetermined Receivables from Officers/Employees/Affiliates Undetermined Notes Receivable Stocks 0 Inventory 0 Other Current Assets Deposits 57,975,017 Prepayments 10,036,386 Other Current Assets 3,113,514 -------------- Total Current Assets Undetermined Fixed Assets Land 0 Building 0 Equipment, Furniture & Fixtures 21,334,912 Less Accumulated Depreciation (20,872,100) -------------- Total Fixed Assets $462,812 Other Assets Accrued taxes Undetermined -------------- Total Other Assets Undetermined -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $0 Accrued Quarterly Fees 250 Notes Payable 0 Rent and Leases Payable 0 Taxes Payable 0 Accrued Interest 0 Other: Accrued Legal fees 0 Accrued Payroll and Benefits 38,134 -------------- Total Postpetition Liabilities $38,384 Prepetition Liabilities Priority Claims Undetermined Secured Debts Undetermined Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owner's Investments - Paid-In Capital Surplus Undetermined Retained Earnings (deficit) Prepetition Undetermined Postpetition Undetermined -------------- Total Owner's Equity Undetermined -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== NEGT Energy Trading-Gas Corporation Income Statement For the Period August 1 to August 31, 2004 Total Sales/Income $473,613 COST OF SALES: Purchases of Inventory 0 Purchased Services 0 Other: (Identify) 0 Purchase of Commodities 0 -------------- Total Cost of Sales 0 -------------- Gross Profit 473,613 OPERATING EXPENSES: Bad Debt Expense 0 Bank Charges 462 Communications 11 Computer Supplies 0 Credit & Commitment Fees 0 Datafeeds 0 Fixed Assets Depreciation 121,724 Indirect Allocations (5,050) Insurance 0 Legal Fees 375,000 Recruiting & Relocation 0 Realized(Gain)/Loss on Foreign Exchange (893) Rent (233) Unrealized(Gain)/Loss on Foreign Exchange 0 Office Supplies 0 Other 446 Payroll and benefits 23,880 Professional Fees 7,244 Software Costs 2,475 Subscriptions 110 Taxes Other than Income 0 Training 67 -------------- Total Operating Expenses 525,246 -------------- Profit/Loss from Operation (51,632) Other Income (Expenses): Interest Income 322,509 Interest Expense 0 Equity in Subsidiaries 0 Other Income(Expenses) (65,879) -------------- Total Other Income (Expenses) 256,629 -------------- Income Before Taxes $204,996 Income Taxes Expense (Benefit) Undetermined -------------- NET INCOME Undetermined ============== NEGT Energy Trading-Gas Corporation Cash Reconciliation Report For the Period August 1 to August 31, 2004 Cash balance from prior balance sheet $10,485,830 Pre-tax Net income for month 204,996 Income/Expenses Not Requiring Cash: Depreciation 121,724 (Gain) Loss on the Sale of Fixed Assets 65,879 Unrealized (Gain) Loss on Foreign Exchange 0 Relief of Allowance for Doubtful Accts 0 -------------- Total Expenses Not Requiring Cash 187,604 -------------- Total Cash from Operations 10,878,431 Other sources/uses of cash: Decrease (Incr): Accounts Receivable Non-Affiliate 15,323,114 Accounts Receivable Affiliate (14,283) Inventory 0 Equipment 9,240 Furniture & Fixtures 0 Prepaids 113 Deposits 12,100,000 Other Current Assets 0 Increase (Decr): Accounts Payable Non-Affiliate (22,910,477) Accounts Payable Affiliate (4,917,810) Accrued Liabilities 0 Current Deferred Liabilities 14,283 Accrued Interest 0 Accrued P/R Taxes 0 Accrued Salaries 0 Accrued Sales Tax 0 Note Payable Taxes 0 Tax Liability 0 -------------- Total Other Sources & Uses of Cash (395,819) -------------- ENDING CASH BALANCE $10,482,611 ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ET Investments' Aug. 2004 Monthly Operating Report ----------------------------------------------------------------- NEGT ET Investments Corporation Unaudited Balance Sheet As of August 31, 2004 ASSETS Current Assets Cash $0 Accounts Receivable 0 Receivables from Officers/Employees/Affiliates Undetermined Notes Receivable Stocks 0 Inventory 0 Other Current Assets - -------------- Total Current Assets Undetermined Fixed Assets Land 0 Building 0 Equipment, Furniture & Fixtures 0 Less Accumulated Depreciation 0 -------------- Total Fixed Assets $0 Other Assets Investment in Subsidiaries Undetermined -------------- Total Other Assets Undetermined -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $0 Accrued Quarterly Fees 250 Notes Payable 0 Rent and Leases Payable 0 Taxes Payable 0 Accrued Interest 0 Other 0 -------------- Total Postpetition Liabilities $250 Prepetition Liabilities Priority Claims Undetermined Secured Debts Undetermined Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock, Owner's Investments Undetermined Paid-In Capital Surplus Undetermined Retained Earnings (deficit) Prepetition Undetermined Postpetition Undetermined -------------- Total Owner's Equity Undetermined -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== NEGT ET Investments Corporation Income Statement For the Period August 1 to August 31, 2004 Total Sales/Income $0 COST OF SALES: Purchases of Inventory 0 Purchased Services 0 Other (Identify) 0 -------------- Total Cost of Sales 0 -------------- Gross Profit 0 OPERATING EXPENSES: Bad Debt Expense 0 Officer Salaries - Other Employee Salaries - Taxes (Payroll) - Employee Benefits - Advertising - Auto Expenses - Entertainment - Insurance (Real Estate) - Insurance (Other) - Leases (Other than Rent) - Outside Services & Contractors - Professional Fees (Atty. Acct.) - Rent - Repairs & Maintenance - Supplies - Taxes (Real Property) - Taxes (Other) - Telephone - Travel - Utilities - Other - -------------- Total Operating Expenses - -------------- Profit/Loss from Operation - Other Income (Expenses): Interest Expense (1,925) Equity in ET Power 14,116,648 -------------- Total Other Income (Expenses) 14,114,723 -------------- Income Before Taxes $14,114,723 Income Taxes Expense (Benefit) Undetermined -------------- NET INCOME Undetermined ============== NEGT ET Investments Corporation Cash Reconciliation Report For the Period August 1 to August 31, 2004 Cash balance from prior balance sheet $0 Pre-tax Net income for month 14,114,723 Expense Not Requiring Cash: Depreciation 0 Other: Investment in Subsidiaries (14,116,648) Relief of Allowance of Doubtful Accounts 0 -------------- Total Expenses Not Requiring Cash (14,116,648) -------------- Total Cash from Operations (1,925) Other sources/uses of cash: Decrease (Incr): Accounts Receivable 0 Inventory 0 Equipment 0 Furniture & Fixtures 0 Increase (Decr): Accounts Payable 0 Accounts Payable - Affiliate 1,925 Accounts Payable - Interest Payable 0 Accrued Interest 0 Accrued P/R Taxes 0 Accrued Professional Fees 0 Accrued Rent 0 Accrued Salaries 0 Accrued Sales Tax 0 Note Payable Taxes 0 Taxes Payable 0 (Less) Unrecorded Bank Service Charges 0 -------------- Total Other Sources & Uses of Cash 1,925 -------------- ENDING CASH BALANCE $0 ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ET Power's August 2004 Monthly Operating Report -------------------------------------------------------------- NEGT Energy Trading-Power L.P. Unaudited Balance Sheet As of August 31, 2004 ASSETS Current Assets Cash $27,131,134 Accounts Receivable 165,686,733 Valuation from Unrealized Commodity Contracts Undetermined Receivables from Officers/Employees/Affiliates Undetermined Notes Receivable Stocks 0 Inventory 0 Other Current Assets Deposits 45,140,769 Prepaids 1,014,999 Other Current Assets 0 -------------- Total Current Assets Undetermined Fixed Assets Land - Building - Equipment, Furniture & Fixtures 2,454,290 Less Accumulated Depreciation (2,283,184) Other Fixed Assets - -------------- Total Fixed Assets 171,106 Other Assets - -------------- Total Other Assets $0 -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $0 Accrued Quarterly Fees 250 Notes Payable 0 Rent and Leases Payable 0 Taxes Payable 0 Accrued Interest 0 Other - -------------- Total Postpetition Liabilities $250 Prepetition Liabilities Priority Claims Undetermined Secured Debts Undetermined Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/ Owner's Investments Undetermined Paid-In Capital Surplus Undetermined Retained Earnings (deficit) Prepetition Undetermined Postpetition Undetermined -------------- Total Owner's Equity Undetermined -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== NEGT Energy Trading-Power L.P. Income Statement For the Period August 1 to August 31, 2004 Total Sales/Income $14,533,828 COST OF SALES: Purchases of Inventory 0 Purchased Services 0 Other: (Identify) 0 Cost of Commodities 1,706 -------------- Total Cost of Sales 1,706 -------------- Gross Profit 14,532,121 OPERATING EXPENSES: Bank Fee Charges 80 Bad Debt Expense 0 Communications 0 Entertainment 0 Fixed Assets Depreciation 42,775 Indirect Allocations 340,885 Legal Fees 0 Realized(Gain)/Loss on Foreign Exchange (496) Unrealized(Gain)/Loss on Foreign Exchange 99 Other 15,017 Training 0 Travel 0 -------------- Total Operating Expenses 398,364 -------------- Profit/Loss from Operation 14,133,757 Other Income (Expenses): Interest Income 353,614 Interest Expense 0 Other Income(Expenses) (82,628) -------------- Total Other Income (Expenses) 270,985 -------------- Income Before Taxes $14,404,743 Income Taxes Expense (Benefit) Undetermined -------------- Net Income Undetermined ============== NEGT Energy Trading-Power L.P. Cash Reconciliation Report For the Period August 1 to August 31, 2004 Cash balance from prior balance sheet $27,108,175 Pre-tax Net income for month 14,404,743 Expense Not Requiring Cash: Depreciation 42,775 (Gain) Loss on sale of fixed assets 82,628 Unrealized (Gain) loss on foreign exchange 99 Relief of Allowance for Doubtful Accounts 0 -------------- Total Expenses Not Requiring Cash 125,503 -------------- Total Cash from Operations 41,638,423 Other sources/uses of cash: Decrease (Incr): Accounts Receivable Non-Affiliate 21,457,764 Accounts Receivable Affiliate 8,062,831 Inventory 0 Equipment 12,100 Furniture & Fixtures 0 Prepaids 0 Deposits 25,960,000 Other Current Assets 0 Increase (Decr): Accounts Payable Non-Affiliates (59,034,139) Accounts Payable Affiliates (10,965,845) Current Deferred Liabilities 0 Accrued Liabilities 0 Accrued Interest 0 Accrued P/R Taxes 0 Accrued Professional Fees 0 Accrued Salaries 0 Accrued Sales Tax 0 Note Payable Taxes 0 -------------- Total Other Sources & Uses of Cash (14,507,288) Total Cash from Investing - Sale of Fixed Assets 0 -------------- Ending Cash Balance $27,131,134 ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/ -- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston, L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) RELIANCE GROUP: Liquidator Files Q4 2004 Liquidation Status Report ------------------------------------------------------------------ M. Diane Koken, Insurance Commissioner of the Commonwealth of Pennsylvania, issues a Status Report on the Liquidation of Reliance Insurance Company for the Fourth Quarter 2004. In her capacity as RIC Liquidator, Ms. Koken reports that, at the end of the fourth quarter 2004, the estate held $5,520,800,000 in assets. The most significant balance was $3,177,000,000, relating to reinsurance receivables and future reinsurance recoverables. This figure was reduced from a $3,448,700,000 estimate in the Third Quarter Report. Total liabilities are estimated at $8,654,200,000, with the most significant balance, $5,029,500,000, attributable to loss and loss adjustment expenses on direct business. The Statement reflects $1,589,100,000 in losses and loss adjustment expenses paid by Guaranty Associations. These figures include data reported to the estate through an automated interface on a time lag basis. Since not all states were reporting through this system at the end of the quarter, actual payments by GAs are higher. This value includes $1,312,600,000 in losses and loss adjustment expenses on assumed reinsurance business, which are Class C general creditor claims. The net deficit produced is $3,133,400,000. Short and intermediate duration marketable investments decreased from $692,300,000 to $500,000,000 at the end of the period. Reinsurance collections, the primary source of funds, totaled $404,600,000 for the nine-month period between January 1, 2004, and September 30, 2004. The estate paid $413,400,000 in early access payments to the GAs. Loss adjustment expenses were $3,400,000. Operating expenses reached $143,900,000, including $59,100,000 in GA reimbursed expenses. At September 30, 2004, RIC held Symbol Technologies common stock worth $111,600,000. At January 21, 2005, the market value of the stock was $17.55 per share. RIC will continue to sell shares as appropriate, depending on market conditions. RIC estimates current and future premium receivables at $111,700,000. This includes receivables arising from large deductible policies billed in 2003 whose ownership is disputed. At September 30, 2004, reinsurance receivables and recoverables totaled $3,177,000,000, down by $271,700,000. RIC holds about $1,000,000,000 in collateral as security. Total reinsurance collections in the first nine months of 2004 amounted to $404,600,000. Collections since the date of liquidation total $990,800,000. The inventory of billed reinsurance receivables is $841,500,000 as of September 30, 2004. Of this amount, approximately $233,000,000 relates to pre-liquidation balances. This balance consists of amounts in both formal and informal dispute, amounts available to reinsurers as legitimate offsets and balances due from insolvent and financially distressed companies. During the fourth quarter of 2004, the commutation settlement of the dispute with John Hancock Life Insurance Company was approved by the Commonwealth Court, reducing pre-liquidation balances by $40,000,000. Data feeds from the Guaranty Associations providing paid and outstanding claim information were loaded into RIC's systems in April 2003. The GA data plus the Notices of Determination generated about $967,000,000 of post-liquidation billings, of which $608,000,000 was unpaid at December 31, 2004. The amount collected will ultimately be much lower due to disputes, offsets and insolvencies. RIC is aggressively attempting to collect reinsurance billings and is in constant contact with its major reinsurers. Formal dispute resolution actions continue against several of the reinsurers with substantial overdue balances, including various Underwriters at Lloyd's and Houston Casualty Company. RIC expects these disputes to be resolved within the next six to 12 months. Thus far in 2004, RIC completed 33 on-site reinsurance audits at various GAs. Ms. Koken advises that reinsurer financial strength is a problem and will continue to be a major concern for the duration of the RIC liquidation proceedings. RIC is monitoring the financial condition of its major reinsurers and will attempt to settle its overall exposure with distressed companies through commutation. However, significant write-offs for uncollectible reinsurance are expected, Ms. Koken says. At December 31, 2004, RIC had a total of 356 employees in both the Philadelphia and New York City offices. Since January 2004, staff has been reduced in most areas with a net decrease of 76 employees. The Liquidator has devoted considerable resources to general asset recovery through numerous plaintiff actions to recover assets owed to the estate. These include litigation and arbitration for: (1) collections from agencies, TPAs, brokers or program managers -- approximately $34,000,000 sought; (2) claims in bankruptcy against financially distressed insureds -- approximately $102,000,000 sought; (3) subrogation matters -- approximately $30,000,000 sought; (4) premium and large deductible collections -- approximately $31,000,000 sought; (5) reinsurance recoveries -- approximately $123,000,000 sought; and (6) other litigation -- approximately $2,000,000 sought. Thus far in 2004, the Liquidator recovered more than $86,200,000 through legal actions. Through December 31, 2004, RIC received 156,846 proofs of claim, of which 3,897 were filed after the deadline. RIC mailed 170,668 status letters and issued 45,266 Notices of Determination. Some claimants have received more than one status letter as the evaluation of their claims progressed. Through December 31, 2004, the Liquidator has allowed $221,800,000 for all NODs issued. The Liquidator has received 392 objections to the NODs. Of those objections, more than 100 have been resolved and 288 are in the objection resolution process. Referees have been assigned to 263 objections. The Liquidator has established a process to review requests for the release of collateral held to secure obligations for direct insureds, reinsurers and premium receivables. As of December 31, 2004, RIC held collateral of approximately $1,800,000,000 to secure current and future obligations. For the year ended December 31, 2004, 239 accounts were reviewed, resulting in the release of $194,000,000 in collateral for 170 accounts. Of the remaining accounts, 32 were denied collateral release and other resolutions were reached for 37 accounts. A committee was established to review and recommend action for cut-through requests. Since implementation of the guidelines, 26 cut-through requests have been submitted to the Liquidator. Of these, 15 have been approved, eight were disapproved, two were withdrawn and one is pending. Of the eight disapprovals, two were never contested, one was also disapproved by the Court after a contest, one was approved by the Court with a decision under appeal by the Liquidator in the Pennsylvania Supreme Court and four are being decided before referees. Reliance Insurance Company (In Liquidation) Special Purpose Balance Sheet At September 30, 2004 Assets Short-term Investments $500,000,000 Symbol Technologies Common Stock 111,600,000 Investments in Trust - Secured Creditors 263,100,000 Real Estate Investments 27,200,000 --------------- Invested Assets 901,900,000 Investments in Affiliates 80,200,000 --------------- Total Invested Assets 982,100,000 Premium Balances 111,700,000 Reinsurance Receivable 841,500,000 Reinsurance Recoverable 2,335,500,000 Early Access to Guaranty Associations 1,203,800,000 Other Assets 46,200,000 --------------- Total Assets $5,520,800,000 =============== Liabilities Loss & Loss Adjustment Expenses - GAs 1,589,100,000 Loss & Loss Adjustment Expenses - Direct 5,029,500,000 Loss & Loss Adjustment Expenses - Assumed 1,312,600,000 Funds Held 319,600,000 Other Liabilities 403,400,000 --------------- Total Liabilities 8,654,200,000 --------------- Net Deficit ($3,133,400,000) =============== Reliance Insurance Company (In Liquidation) Statement of Cash Flow January 1, 2004 to September 30, 2004 Beginning Balance $464,300,000 Sources: Reinsurance Collections 404,600,000 Premium Collections 22,500,000 Subrogation Recoveries 13,600,000 Sale Proceeds from investments 57,800,000 RGH Settlement 45,300,000 Released From Trust 12,500,000 Symbol Technologies Stock Sales 24,800,000 Investment Appreciation 8,800,000 Checks issued but not cashed 27,500,000 Other 14,100,000 --------------- Total Sources 631,500,000 --------------- Uses: Early Access to GAs (413,400,000) Loss & Loss Adjustment Expenses (3,400,000) Operating Expenses (143,900,000) Net Checks Cashed But Issued (35,100,000) --------------- Total Uses (595,800,000) --------------- Net Increase in Funds 35,700,000 Ending Balance $500,000,000 =============== Headquartered in New York, New York, Reliance Group Holdings, Inc. -- http://www.rgh.com/ -- is a holding company that owns 100% of Reliance Financial Services Corporation. Reliance Financial, in turn, owns 100% of Reliance Insurance Company. The holding and intermediate finance companies filed for chapter 11 protection on June 12, 2001 (Bankr. S.D.N.Y. Case No. 01-13403) listing $12,598,054,000 in assets and $12,877,472,000 in debts. The insurance unit is being liquidated by the Insurance Commissioner of the Commonwealth of Pennsylvania. (Reliance Bankruptcy News, Issue No. 69; Bankruptcy Creditors' Service, Inc., 215/945-7000) RELIANCE GROUP: Posts $498,000 Net Loss in January 2005 ------------------------------------------------------- RELIANCE GROUP HOLDINGS, INC., et al. Unaudited Consolidated Balance Sheet, excluding subsidiaries which are not Debtors-in-Possession 31-Jan-2005 _____________________________________ ___________ ASSETS Cash $54,775,000 Accounts and Notes Receivable 13,090,000 Prepaid expenses and deposits 353,000 Due from Reliance Development Group, less allowance of $59,334,000 0 Plant, property & equipment - ---------------- Total Assets $68,218,000 ================ LIABILITIES & SHAREHOLDERS' DEFICIT Liabilities not subject to compromise Postpetition accounts payable $1,373,000 Professional fee holdback payable 2,304,000 PBGC administrative claim 3,000,000 Liabilities subject to compromise 1,106,116,000 ---------------- Total liabilities 1,112,793,000 ---------------- Shareholders' deficit: Common stock 11,616,000 Additional paid in capital 558,541,000 Accumulated deficit (1,614,732,000) ---------------- Total shareholders' deficit (1,044,575,000) ---------------- Total liabilities & deficit $68,218,000 ================ RELIANCE GROUP HOLDINGS, INC., et al. Unaudited Consolidated Statement of 1-Jan-2005 Operations, excluding subsidiaries to which are not Debtors-in-Possession 31-Jan-2005 _____________________________________ ___________ Revenues $0 ---------------- Costs and expenses: Operating and administrative 41,000 Pension Plan Actuarial Adjustments and Expenses 0 Depreciation 0 ---------------- Total costs and expenses 41,000 ---------------- Loss before reorganization items (41,000) ---------------- Reorganization items: Professional fees 560,000 Interest earned on accumulated cash resulting from Chapter 11 proceeding (103,000) ---------------- Total reorganization items 457,000 ---------------- Income Tax benefits 0 ---------------- Net Income ($498,000) ================ RELIANCE GROUP HOLDINGS, INC., et al. Unaudited Consolidated Statement of 1-Jan-2005 Cash Flows, excluding subsidiaries to which are not Debtors-in-Possession 31-Jan-2005 _____________________________________ ___________ Cash flows from operating activities: Loss from operations before reorganization items ($41,000) Adjustments to reconcile loss to net cash provided by operating activities: Income Tax Recovery 0 Depreciation 0 Changes in: Prepaid expenses 0 Postpetition payables (1,000) Increase in Liabilities subject to compromise 0 ---------------- Net cash (used) provided by operating activities before reorganization items (42,000) ---------------- Operating cash flows from reorganization items: Interest earned 103,000 Application of retainer towards reorganization professional fees 0 Payment of reorganization items (220,000) ---------------- Net cash used by reorganization items (117,000) ---------------- Net cash used by operating activities (159,000) ---------------- Cash flows from investing activities: Receipt from Reliance Development Group 0 ---------------- Net cash provided by investing activities 0 ---------------- Cash flow from financing activities: Proceeds of split dollar policies 0 ---------------- Net cash provided by financing activities 0 ---------------- Net increase in cash (159,000) Cash at beginning of period 54,934,000 ---------------- Cash at end of period $54,775,000 ================ Headquartered in New York, New York, Reliance Group Holdings, Inc. -- http://www.rgh.com/ -- is a holding company that owns 100% of Reliance Financial Services Corporation. Reliance Financial, in turn, owns 100% of Reliance Insurance Company. The holding and intermediate finance companies filed for chapter 11 protection on June 12, 2001 (Bankr. S.D.N.Y. Case No. 01-13403) listing $12,598,054,000 in assets and $12,877,472,000 in debts. The insurance unit is being liquidated by the Insurance Commissioner of the Commonwealth of Pennsylvania. (Reliance Bankruptcy News, Issue No. 69; Bankruptcy Creditors' Service, Inc., 215/945-7000) ROBOTIC VISION: Posts $2 Million Net Loss in December 2004 ---------------------------------------------------------- On Feb. 1, 2005, Robotic Vision Systems, Inc., delivered a copy of its monthly operating report for December 2004 to the U.S. Securities and Exchange Commission. Robotic Vision reports a $2,090,000 net loss on $3,217,000 of gross revenues for the month ending Dec. 31, 2004. At Dec. 31, 2004, Robotic Vision's balance sheet showed: Total Current Assets $21,080,000 Total Assets 49,196,000 Total Liabilities Subject to Compromise 53,879,000 Total Liabilities 54,662,000 Shareholders' Equity Deficit ($5,466,000) A full-text copy of Robotic Vision Systems, Inc.'s December 2004 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/225868/000119312505033959/dex991.htm Headquartered in Nashua, New Hampshire, Robotic Vision Systems, Inc. -- http://www.rvsi.com/ -- designs, manufactures and markets machine vision, automatic identification and related products for the semiconductor capital equipment, electronics, automotive, aerospace, pharmaceutical and other industries. The Company, together with its debtor-affiliate, filed for chapter 11 protection on Nov. 19, 2004 (Bankr. D. N.H. Case No. 04-14151). Bruce A. Harwood, Esq., at Sheehan, Phinney, Bass + Green represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $43,046,000 in total assets and $51,338,000 in total debts. TECO AFFILIATES: Panda Gila's Statement of Financial Affairs ------------------------------------------------------------ John T. Duff, the Debtors' President, reports that Panda Gila River, LP, earned income from its Power Generation operation during the two years immediately preceding the bankruptcy petition date: Amount Period ------ ------ $26,652,128 01/01/05 - 01/25/05 378,116,112 01/01/04 - 12/31/04 171,160,102 01/01/03 - 12/31/03 Two years before the Petition Date, Panda Gila also received income other than from its business operations: Amount Source Period ------ ------ ------ $12,000 Lease Income 01/01/05 - 12/31/05 35,500 Interest Income 01/01/05 - 01/25/05 266,732 Interest Income 01/01/04 - 12/31/04 422,000 Other Misc Income 01/01/04 - 12/31/04 169,092 Interest Income 01/01/03 - 12/31/03 Within the 90-day period before the Petition Date, Panda Gila paid $81,429,955 [sic] to certain creditors on account of loans, installment purchases of goods or services, and other debts. These creditors include: Creditor Amount -------- ------ Arizona Dept. of Revenue $1,176,401 1,648,735 1,298,302 Arizona Public Service Company 688,050 544,970 1,744,800 BP Energy Company 6,994,612 669,450 2,311,518 552,966 ChevronTexaco Natural Gas 1,044,442 Cinergy Marketing & Trading, LP 729,349 Conocophillips Company 6,852,094 10,255,857 3,261,715 El Paso Natural Gas Company 1,614,936 1,596,110 1,591,987 1,592,967 Kroll Zolfo Cooper LLC 1,043,250 Latham & Watkins 650,000 1,397,500 NGTS LLC 1,074,222 Salt River Project 865,572 600,023 699,961 1,159,943 759,386 Southern California Edison Company 634,755 1,083,572 724,285 Squire Sanders & Dempsey, LLP 633,100 Tenaska Marketing Ventures 3,261,919 866,688 Transalta Energy Marketing Inc. 1,925,495 UBS AG London Branch 633,330 677,350 United Energy Trading LLC 755,206 1,054,830 Within one year preceding the Petition Date, Panda Gila paid $11,509,428 to its insider creditors. The payments include: Creditor Amount -------- ------ TECO Energy Source, Inc. $317,696 326,661 303,448 TPS Arizona Operations Co. 382,256 359,767 734,084 350,270 667,207 436,133 585,636 346,910 404,959 385,236 371,564 377,821 TWG Merchant, Inc. 454,068 535,209 327,142 Panda Gila is a party of a pending lawsuit commenced within the year immediately before the Petition Date. Aquila Merchant Services, Inc., filed the lawsuit against Panda Gila under Case No. 04-CV-213542 in the Circuit Court of Jackson County, Kansas City. The proceeding is for payment and services differences relating to a Power Management Agreement dated February 19, 2001. On September 27, 2004, Panda Gila made a charitable contribution of $500 to Children's Miracle Network in Salt Lake City, Utah. Panda Gila paid $12,982,750 to debt counseling, within one year immediately preceding the Petition Date. It also holds spare parts worth $727,752 for TPS McAdams, LLC, in Gila River Power Station. Panda Gila received written notices relating to its TECO Power Services site, from Maricopa County Environmental Services Department for possible violation of certain Environmental Laws. In late 2004, Panda Gila was a party to settlements with Maricopa County Environmental Services Department, Air Quality Division, for: * two Notices of Violation alleging excess opacity on October 20 to 21, 2004, from several of the units; * one Notice of Violation alleging the failure to provide timely notice of start of construction several years ago; * one Notice of Violation for failing to provide timely notice of excess emissions; * eight Notices of Violation for failing to provide an accurate semiannual compliance certificate for the period April - September 2003 for each of the eight units at the facility; and * one Notice of Violation alleging that each unit had excess emissions of NOx and CO during startup from April to December 2003 and during normal operations between April 2003 and March 2004. Within two years before the Petition Date, Panda Gila's books of account and records were kept or supervised by: Name Title ---- ----- Susan Allgoever Accounting Manager Anne Ansley Accountant Sharon Armstrong Accounting Manager Gerda Avila Accountant Russ Bell Panda Accounting Alessandra Brantl Panda Accounting Franklin Byrd Panda Controller Kenneth Collins Panda Project Accounting Beth Conrad Panda Accounting Doug Davis Accountant Dawn Armes Accountant Passard Dean Accountant Claude DeMars Accountant Karen Flynn Panda Accounts Payable/Data Entry Gordon Gillette Chief Financial Officer Erica Greenhouse Panda Project Accounting Laurie Harris Panda Accounting Yvonne Hughes Accounting Manager Jeremy Hunsaker Panda Project Accountant Lisa Koebrich Accounting Manager Alicia Lopez Accountant Kathy McKenzie Panda Project Director Accountant Veronic Mudie Accounting Manager Joe Mullholand Panda Senior Project Accountant Whitney North Panda Project Accounting Thomas O'Neil Panda Accounts Payable Coordinator Thomas O'Neil Panda Project Accounting Shirley Payne VP of Finance Lisa Pellegrino Accountant Debbie Pool Panda Project Accounting Natasha Ray Panda Project Accounting Dean Remmers Controller Michelle Renfroe Panda Accounts Payable Coordinator Richard McCormic Accountant Michelle Roethemeyer Panda Accountant S. Mark Rudolph Controller Kathy Scott Panda Accounting Kathy Scott Panda Project Accounting Tammy Spears Panda Project Accounting Brad Stenoien Panda Project Director Accountant Brad Stenoien Panda Project Accounting Jerry Thurmond Panda Chief Financial Officer Michael Workman Accountant Panda Gila issued financial statements to these institutions within two years before the Petition Date: * BP Energy, * Constellation Energy Commodities Group, * J Aron & Company, * UBS AG, * Wachovia Bank, and * AON 50 Kennedy Plaza On December 13, 2004, Bobby Ybarra and Yvonne Hughes supervised the inventory of Panda Gila's property, the value of which is $8,533,616. The records of the inventory are in Ms. Hughes' possession. Panda Gila's current partners, officers, directors and shareholders, hold interest in the company: Name Nature of Interest % Interest ---- ------------------ ---------- C. R. Black Manager 0% J. T. Duff Manager/President 0% M. R. Schuyler Vice President 0% R. Shutran Assistant Secretary 0% S. M. Rudolph VP-Controller, Treasurer and Assistant Secretary 0% Union Power I, LLC General Partner 1% Union Power II, LLC Limited Partner 99% V. P. Crane Alternate Manager/ VP and Secretary 0% Panda Gila River, L.P., Union Power Partners, L.P., Trans-Union Pipeline, L.P., and UPP Finance Co., LLC -- http://www.tecoenergy.com/ -- own and operate the two largest combined-cycle natural gas generation facilities in the United States. The Debtors filed for bankruptcy protection on Jan. 26, 2005 (Bank. D. Ariz. Case No. 05-01143, and 05-01149 through 05-01151). Craig D. Hansen, Esq., Thomas J. Salerno, Esq., and Sean T. Cork, Esq., at Squire, Sanders & Dempsey L.L.P., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $2,196,000,000 in total assets and $2,268,800,000 in total debts. (TECO Affiliates Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., 215/945-7000) TECO AFFILIATES: Trans Union's Statement of Financial Affairs ------------------------------------------------------------- The Debtors' President, John T. Duff, reports that during the two years immediately preceding the bankruptcy petition date, Trans- Union Interstate Pipeline, L.P., earned income from its operations: Amount Period ------ ------ $5,301,672 2004 5,087,894 2003 Within 90 days preceding the Petition Date, Union Power Partners, LP set off $1,325,418 against a debt or deposit of Trans-Union. On the Petition Date, Trans-Union's books of account and records were in the possession of: * TECO Energy, * TECO Wholesale Generation, Parent location, and * Union Power Partners, Plant location Trans-Union issued financial statements to these institutions within two years before the Petition Date: * BP Energy, * Constellation Energy Commodities Group, * J Aron & Company, * UBS AG, * Wachovia Bank, and * AON 50 Kennedy Plaza Trans-Union's current partners, officers, directors and shareholders, hold interest in the company: Name Nature of Interest % Interest ---- ------------------ ---------- C. R. Black Manager 0% J. T. Duff Manager/President 0% M. R. Schuyler Vice President 0% S. M. Rudolph VP-Controller, Treasurer and Assistant Secretary 0% Union Power I, LLC General Partner 1% Union Power II, LLC Limited Partner 99% V. P. Crane Alternate Manager/ VP and Secretary 0% Panda Gila River, L.P., Union Power Partners, L.P., Trans-Union Pipeline, L.P., and UPP Finance Co., LLC -- http://www.tecoenergy.com/ -- own and operate the two largest combined-cycle natural gas generation facilities in the United States. The Debtors filed for bankruptcy protection on Jan. 26, 2005 (Bank. D. Ariz. Case No. 05-01143, and 05-01149 through 05-01151). Craig D. Hansen, Esq., Thomas J. Salerno, Esq., and Sean T. Cork, Esq., at Squire, Sanders & Dempsey L.L.P., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $2,196,000,000 in total assets and $2,268,800,000 in total debts. (TECO Affiliates Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., 215/945-7000) TECO AFFILIATES: Union Power's Statement of Financial Affairs ------------------------------------------------------------- Union Power Partners, L.P., earned income from its Power Generation operations, during the two years immediately preceding the bankruptcy petition date: Amount Period ------ ------ $222,144 01/01/05 - 01/25/05 49,875,303 01/01/04 - 12/31/04 168,381,161 01/01/03 - 12/31/03 Two years before the Petition Date, Union Power also received income other than from its business operations: Amount Source Period ------ ------ ------ $143 Interest Income 01/01/05 - 01/25/05 4,252,063 Interest Income Intercompany - Finco 01/01/05 - 01/25/05 148,320 Interest Income Intercompany - Trans Union 01/01/05 - 01/25/05 204,713 Interest Income 01/01/04 - 12/31/04 4,238,938 Interest Income Intercompany - Finco 01/01/04 - 12/31/04 148,701 Interest Income Intercompany - Trans Union 01/01/04 - 12/31/04 2,008,096 Interest Income 01/01/03 - 12/31/03 Within the 90-day period before the Petition Date, Union Power paid $28,037,778 to certain creditors on account of loans, installment purchases of goods or services, and other debts. Some of these creditors are: Creditor Amount -------- ------ AEP Energy Services, Inc. $2,505,446 719,154 Anadarko Energy Services Co. 697,533 Chevron Texaco 1,608,724 Dept. of Finance & Administration 744,405 Duke Energy Field Services 3,395,250 1,405,840 Kroll Zolfo Cooper, LLC 561,750 Latham & Watkins 650,000 752,500 MGI Supply Ltd. 3,483,416 640,000 833,208 Nobel Energy Marketing Inc 104,535 Regency Intrastate Gas, LLC 802,708 558,000 Within one year before the Petition Date, Union Power made payments aggregating $9,442,429 to insider creditors, which include: Creditor Amount -------- ------ TPS Arkansas Operations Co. $725,114 335,636 659,376 327,297 363,521 421,746 489,279 323,180 479,669 418,362 416,915 TWG Merchant, Inc. 319,257 423,909 Within a year immediately before the Petition Date, two lawsuits were commenced against Union Power: * Aquila Merchant Services, Inc. v. Union Power Agreement of 2/19/01 Partners, L.P., Case No. 04-415 CV-213542, for payment & services differences relating to Power Management filed with the Circuit Court of Jackson County in Kansas City; and * Graylon Hughes v. Panda Energy Int'l Inc., and Edison C. Gasper, Case No. -- Unknown, a personal injury suit, filed with the Circuit Court of Union County in El Dorado, Arizona. On September 9, 2004, Union Power made a $100,000 cash donation to Southern Arkansas University Foundation in Magnolia, Arizona. Union Power made payments relating to debt counseling, within one year before the Petition Date aggregating $10,922,210, which include: Payee Amount ----- ------ Kroll Zolfo Cooper, LLC $561,750 Latham & Watkins 340,394 341,124 431,014 300,000 312,500 650,000 752,500 400,000 Within 90 days preceding the Petition Date, Union Power's creditors made set-offs of: Creditor Amount -------- ------ Trans-Union Interstate Pipeline, LP $441,806 441,806 441,806 Union County Regents Bank 17,376,188 Union Power controls properties owned by these entities in El Dorado, Arizona: Owner Property ----- -------- General Electric 20 fuel nozzles with an aggregate value International, Inc. of $2,080,250 PowerSmarts Equipment with an estimated value of $75,000 TPS Dell, LLC Spare parts for $587,975 Inoperative Load Commutating Inverter for $10 From March 1, 2001, to the present, Union Power was a partner or owned 5% or more of the voting or equity securities of a special purpose entity, UPP Finance Co., LLC, in Tampa, Florida. On the Petition Date, Union Power's books of account and records were in the possession of: * TECO Energy, Parent location, * TECO Wholesale Generation, Parent location, and * Union Power Partners, Plant location Union Power issued financial statements to these institutions within two years before the Petition Date: * BP Energy, * Constellation Energy Commodities Group, * J Aron & Company, * UBS AG, * Wachovia Bank, and * AON 50 Kennedy Plaza On November 8, 2004, Joel Holt and Jonathan Wilson supervised the inventory of Union Power's property for which the value is at $1,285,645. The records of the inventory are in Mr. Wilson's possession. Union Power's current partners, officers, directors and shareholders, hold interest in the company: Name Nature of Interest % Interest ---- ------------------ ---------- C. R. Black Manager 0% J. T. Duff Manager/President 0% M. R. Schuyler Vice President 0% S. M. Rudolph VP-Controller, Treasurer, and Assistant Secretary 0% Union Power I General Partner 1% LLC Union Power II Limited Partner 99% LLC V. P. Crane Alternate Manager/ VP and Secretary 0% Panda Gila River, L.P., Union Power Partners, L.P., Trans-Union Pipeline, L.P., and UPP Finance Co., LLC -- http://www.tecoenergy.com/ -- own and operate the two largest combined-cycle natural gas generation facilities in the United States. The Debtors filed for bankruptcy protection on Jan. 26, 2005 (Bank. D. Ariz. Case No. 05-01143, and 05-01149 through 05-01151). Craig D. Hansen, Esq., Thomas J. Salerno, Esq., and Sean T. Cork, Esq., at Squire, Sanders & Dempsey L.L.P., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $2,196,000,000 in total assets and $2,268,800,000 in total debts. (TECO Affiliates Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., 215/945-7000) TECO AFFILIATES: UPP Finance's Statement of Financial Affairs ------------------------------------------------------------- During the two years immediately preceding the Petition Date, UPP Finance Co., LLP, did not earn income from its operations. On the bankruptcy petition date, UPP Finance's books of account and records were in the possession of: * TECO Energy, Plant location * TECO Wholesale Generation, Parent location, and * Union Power Partners, Plant location These officers and stockholders, directly or indirectly own, control, or hold 5% or more of UPP Finance's voting or equity securities: Name Nature of Interest Percentage ---- ------------------ ---------- C. R. Black Manager 0% J. T. Duff Manager/President 0% M. R. Schuyler Vice President 0% S. M. Rudolph VP-Controller, Treasurer, and Assistant Secretary 0% Union Power Partners, L.P. Shareholder 100% V. P. Crane Alternate Manager/ VP and Secretary 0% Panda Gila River, L.P., Union Power Partners, L.P., Trans-Union Pipeline, L.P., and UPP Finance Co., LLC -- http://www.tecoenergy.com/ -- own and operate the two largest combined-cycle natural gas generation facilities in the United States. The Debtors filed for bankruptcy protection on Jan. 26, 2005 (Bank. D. Ariz. Case No. 05-01143, and 05-01149 through 05-01151). Craig D. Hansen, Esq., Thomas J. Salerno, Esq., and Sean T. Cork, Esq., at Squire, Sanders & Dempsey L.L.P., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $2,196,000,000 in total assets and $2,268,800,000 in total debts. (TECO Affiliates Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., 215/945-7000) USG CORP: Earns $19.6 Million of Net Income in December 2004 ------------------------------------------------------------ USG Corporation, et al. Consolidated Balance Sheet 31-December-2004 __________________________ ________________ Assets: Cash and cash equivalents $516,123,000 Marketable Securities 134,969,000 Restricted Cash 37,664,000 Receivables 372,790,000 Inventories 275,135,000 Income taxes receivable 24,342,000 Deferred income taxes 24,974,000 Other current assets 44,764,000 ------------- Total current assets 1,430,761,000 Property, plant and equipment, net 1,604,546,000 Marketable Securities 275,959,000 Deferred income taxes 152,510,000 Goodwill 42,576,000 Other assets 360,724,000 ------------- Total Assets $3,867,076,000 ============= Liabilities and Stockholders' Equity: Accounts payable $236,937,000 Accrued expenses 202,720,000 Taxes on income 58,057,000 ------------- Total current liabilities 497,714,000 Other liabilities 391,005,000 Liabilities subject to compromise 2,241,998,000 Stockholders' Equity: Common stock 4,998,000 Treasury stock (255,845,000) Capital received in excess of par value 100,374,000 Accumulated other comprehensive income/(loss) 3,481,000 Retained earnings 883,351,000 ------------- Total stockholders' equity 736,359,000 ------------- Total Liabilities and Stockholders' Equity $3,867,076,000 ============= USG Corporation, et al. Month Ending Consolidated Income Statement 31-December-2004 _____________________________ ________________ Net sales $344,425,000 Cost of products sold 293,253,000 Selling and administrative expenses 21,232,000 Chapter 11 reorganization expenses 4,189,000 Provision for restructuring expenses - Interest expense 375,000 Interest income (148,000) Other (income)/expense, net (742,000) ------------- Earnings/(loss) before income taxes 26,266,000 Income taxes (benefit) 6,630,000 ------------- Net Earnings/(loss) $19,636,000 ============= Headquartered in Chicago, Illinois, USG Corporation -- http://www.usg.com/ -- through its subsidiaries, is a leading manufacturer and distributor of building materials producing a wide range of products for use in new residential, new nonresidential and repair and remodel construction, as well as products used in certain industrial processes. The Company filed for chapter 11 protection on June 25, 2001 (Bankr. Del. Case No. 01-02094). David G. Heiman, Esq., and Paul E. Harner, Esq., at Jones Day represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $3,252,000,000 in assets and $2,739,000,000 in debts. (USG Bankruptcy News, Issue No. 81; Bankruptcy Creditors' Service, Inc., 215/945-7000) WINN-DIXIE: Files Consolidated Balance Sheet as of Jan. 12, 2005 ---------------------------------------------------------------- Winn-Dixie Stores, Inc. And Subsidiaries Condensed Consolidated Balance Sheets January 12, 2005 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $31,587,000 Marketable securities 19,440,000 Trade and other receivables, less allowance for doubtful items of $4,289,000 108,746,000 Insurance claims receivable 16,895,000 Income tax receivable 55,593,000 Merchandise inventories less LIFO reserve of $214,070,000 904,396,000 Prepaid expenses and other current assets 40,007,000 Assets held for sale 24,302,000 -------------- Total current assets 1,200,966,000 Property, plant and equipment, net 878,787,000 Other assets, net 155,804,000 -------------- Total assets $2,235,557,000 ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Current portion of long-term debt 260,000 Current obligations under capital leases 2,753,000 Accounts payable 410,376,000 Reserve for insurance claims and self-insurance 98,904,000 Accrued wages and salaries 103,731,000 Accrued rent 122,194,000 Accrued expenses 127,376,000 -------------- Total current liabilities 865,594,000 Reserve for insurance claims and self-insurance 185,435,000 Long-term debt 300,429,000 Long-term borrowings under revolving credit facility 153,000,000 Obligations under capital leases 11,110,000 Defined benefit plan 69,777,000 Lease liability on closed facilities, net of current portion 250,403,000 Other liabilities 35,037,000 -------------- Total liabilities 1,870,785,000 Commitments and contingent liabilities Shareholders' Equity: Common stock $1 par value. Authorized 400,000,000 shares; 154,332,048 shares issued and 142,168,096 shares outstanding at January 12, 2005 142,168,000 Additional paid-in-capital 30,970,000 Retained earnings 203,110,000 Accumulated other comprehensive loss (11,476,000) -------------- Total shareholders' equity 364,772,000 -------------- Total liabilities and shareholders' equity $2,235,557,000 ============== Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc. -- http://www.winn-dixie.com/ -- is one of the nation's largest food retailers. The Company operates stores across the Southeastern United States and in the Bahamas and employs approximately 90,000 people. The Company, along with 23 of its U.S. subsidiaries, filed for chapter 11 protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063). David J. Baker, Esq., at Skadden Arps Slate Meagher & Flom, LLP, and Sarah Robinson Borders, Esq., and Brian C. Walsh, Esq., at King & Spalding LLP represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $2,235,557,000 in total assets and $1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News, Issue No. 1; Bankruptcy Creditors' Service, Inc., 215/945-7000) ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Yvonne L. Metzler, Emi Rose S.R. Parcon, Rizande B. Delos Santos, Jazel P. Laureno, Cherry Soriano-Baaclo, Marjorie Sabijon, Terence Patrick F. Casquejo and Peter A. Chapman, Editors. Copyright 2005. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $675 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***