-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Hg2iAFTZdq2ltxNIlULbGJAuOCiVMrLcMvsTGRP6hDNEK6JD0NeROoi2v38XRXI+ CsRFGyjUiSDpEad2jFYZ/A== 0000018654-98-000008.txt : 19980515 0000018654-98-000008.hdr.sgml : 19980515 ACCESSION NUMBER: 0000018654-98-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980514 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTRAL ILLINOIS PUBLIC SERVICE CO CENTRAL INDEX KEY: 0000018654 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 370211380 STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-03672 FILM NUMBER: 98620448 BUSINESS ADDRESS: STREET 1: 607 E ADAMS ST CITY: SPRINGFIELD STATE: IL ZIP: 62739 BUSINESS PHONE: 2175233600 MAIL ADDRESS: STREET 1: CENTRAL ILLINOIS PUBLIC SERVICE CO STREET 2: 607 E ADAMS ST CITY: SPRINGFIELD STATE: IL ZIP: 62739 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended MARCH 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ........ to ........ Commission Registrant; State of Incorporation; I.R.S. Employer File Number Address; and Telephone Number Identification No. ___________ ___________________________________ __________________ 1-3672 CENTRAL ILLINOIS PUBLIC SERVICE COMPANY 37-0211380 (An Illinois Corporation) 607 East Adams Street Springfield, Illinois 62739 217-523-3600 Indicate by check mark whether the Registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes X No _____ _____ Indicate the number of shares outstanding of each of the issuers' classes of common stock, as of the latest practicable date: CENTRAL ILLINOIS PUBLIC SERVICE COMPANY Common stock, no par value, 25,452,373 shares outstanding and held by Ameren Corporation at April 30, 1998 Central Illinois Public Service Company Index Page No. Part I Financial Information (Unaudited) Management's Discussion and Analysis Balance Sheet - March 31, 1998 and December 31, 1997 Statement of Income - Three months and 12 months ended March 31, 1998 and 1997 Statement of Cash Flows - Three months ended March 31, 1998 and 1997 Notes to Financial Statements Part II Other Information PART I. FINANCIAL INFORMATION (UNAUDITED) MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW Central Illinois Public Service Company (AmerenCIPS or the Registrant) is a subsidiary of Ameren Corporation (Ameren), a newly created holding company, which is registered under the Public Utility Holding Company Act of 1935 (PUHCA). In December 1997, Union Electric Company (AmerenUE) and CIPSCO Incorporated (CIPSCO) combined to form Ameren, with AmerenUE and CIPSCO's subsidiaries, the Registrant and CIPSCO Investment Company (CIC), becoming wholly-owned subsidiaries of Ameren (the Merger). The following discussion and analysis should be read in conjunction with the Notes to Financial Statements beginning on page 9, and the Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A), the Audited Financial Statements and the Notes to Financial Statements appearing in the Registrant's 1997 Annual Report included in its 1997 Form 10-K. RESULTS OF OPERATIONS Earnings First quarter 1998 earnings of $12 million declined $2 million from 1997's first quarter earnings. Earnings for the 12 months ended March 31, 1998 were $33 million, a $35 million decrease from the preceding 12-month period. Excluding the extraordinary charge recorded in the fourth quarter of 1997 to write off the generation-related regulatory assets and liabilities of the Registrant's Illinois retail electric business, earnings for the 12-month period ended March 31, 1998, were $61 million. Earnings fluctuated due to many conditions, the primary ones being: weather variations, sales growth, fluctuating operating costs, the write-off of generation-related regulatory assets and liabilities, and merger-related costs. The significant items affecting revenues, costs and earnings during the three-month and 12-month periods ended March 31, 1998, and 1997 are detailed below. Electric Operations Electric Operating Revenues Variations for periods ended March 31, 1998 from comparable prior-year periods ------------------------------------------- (Millions of Dollars) Three Months Twelve Months ------------ ------------- Effect of abnormal weather $ (4) $ (3) Growth and other 5 13 Interchange sales (11) (35) ------------ ------------- $ (10) $ (25) ------------ ------------- The $10 million decrease in first-quarter electric revenues compared to the year-ago quarter was primarily due to milder weather and interchange sales decreasing 38 percent due to market conditions. Weather-sensitive residential and commercial sales decreased 3 percent and 1 percent, respectively, due to milder weather in the current period. Industrial sales increased 3 percent over the same period due to the stronger regional economy. The change in revenues for the 12 months ended March 31, 1998 compared to the prior 12-month period was also due to decreased interchange sales. Interchange sales decreased 17 percent due to market conditions. Residential, commercial and industrial sales remained flat over the same period. Fuel and Purchased Power Variations for periods ended March 31, 1998 from comparable prior-year periods ------------------------------------------- (Millions of Dollars) Three Months Twelve Months ------------ ------------- Fuel: Variation in generation $ (19) $ (14) Price - (3) Generation efficiencies and other 3 - Purchased power variation 9 (10) ------------ ------------- $ (7) $ (27) ------------ ------------- The decline in fuel and purchased power costs for the three months ended March 31, 1998 versus the comparable prior year quarter was driven by a decrease in native load and interchange sales. The decrease in fuel and purchased power costs for the 12 months ended March 31, 1998 versus the year-ago period was driven mainly by a decrease in interchange sales and lower fuel prices due to the use of lower cost coal. Gas Operations Gas revenues for the three months ended March 31, 1998 compared to the comparable prior-year period decreased $11 million primarily due to the effect of milder weather on dekatherm sales to ultimate customers and lower gas costs reflected in the purchased gas adjustment clause. Gas revenues for the 12-month period ended March 31, 1998 decreased $11 million compared to the same year-ago period due to a decline in dekatherm sales to ultimate customers and lower gas costs reflected in the purchased gas adjustment clause. Gas costs for the three months and 12 months ended March 31, 1998 decreased $8 million and $6 million, respectively, compared to the year-ago period. The decreases in gas costs for these periods were primarily due to lower dekatherm sales and lower gas prices. Other Operating Expenses Other operating expense variations reflected recurring factors such as growth, inflation, labor and benefit increases. Other operations expenses increased $2 million for the first quarter of 1998 compared to the same year-ago period due to an increase in injuries and damages expense. The $11 million increase in other operations expenses for the 12 months ended March 31, 1998 compared to the prior 12-month period was primarily due to increases in labor, various equipment rentals and information system-related costs. Maintenance expenses for the first quarter of 1998 decreased $1 million compared to the year-ago quarter due to less scheduled fossil plant maintenance. The $10 million increase in maintenance expenses for the 12- month period ended March 31, 1998 compared to the prior 12-month period was due to scheduled outages at three generating plants during 1997. Depreciation and amortization expense for the three-month and 12-month periods ended March 31, 1998, decreased $2 million and $3 million, respectively, versus the comparable 1997 periods, primarily due to the fourth quarter 1997 write-off of generation related regulatory assets and liabilities of the Registrant's retail electric business. In March 1998, Ameren announced plans to reduce its other operating expenses, including plans to eliminate approximately 400 employee positions by mid-1999 through a hiring freeze and a targeted voluntary separation plan. The Registrant expects that the voluntary separation plan will result in a charge to earnings in the third quarter of 1998 once it is known the number of employees that will accept the terms of the plan. At this time, the Registrant is unable to estimate the expected charge to earnings resulting from the voluntary separation plan. Taxes Income taxes charged to operating expenses for the three months and 12 months ended March 31, 1998, decreased $4 million and $14 million, respectively, versus the comparable 1997 periods, due primarily to lower pre-tax income in 1998. Interest Interest charges for the three months ended March 31, 1998 increased $2 million versus the prior-year period primarily due to increased long-term debt outstanding. Balance Sheet The $24 million decrease in accounts receivable and unbilled revenue at March 31, 1998, compared to December 31, 1997 was due to primarily to lower revenues in February and March 1998 compared to November and December 1997. Changes in accounts and wages payable, taxes accrued and other accruals result from the timing of various payments to taxing authorities and suppliers. LIQUIDITY AND CAPITAL RESOURCES Cash provided by operating activities totaled $53 million for the three months ended March 31, 1998, compared to cash used in operating activities of $15 million during the same 1997 period. Cash flows used in investing activities totaled $15 million and $19 million for the three months ended March 31, 1998 and 1997, respectively. Construction expenditures for the three months ended March 31, 1998 for constructing new or improving existing facilities and complying with the Clean Air Act were $15 million. Capital requirements for the remainder of 1998 are expected to be principally for construction expenditures. Cash flows used in financing activities were $34 million for the three months ended March 31, 1998, compared to cash provided by financing activities of $37 million during the same 1997 period. The Registrant's principal financing activities for the three months ended March 31, 1998 included a debt issuance of $10 million, the redemption of debt of $25 million and the payment of dividends. The Registrant plans to continue utilizing short-term debt to support normal operations and other temporary requirements. The Registrant is authorized by the Securities and Exchange Commission under PUHCA to have up to $250 million of short-term unsecured debt instruments outstanding at any one time. Short-term borrowings consist of bank loans (maturities generally on an overnight basis) and commercial paper (maturities generally within 10 to 45 days). At March 31, 1998, the Registrant had committed bank lines of credit aggregating $80 million (of which $80 million were unused and $31 million were available at such date) which make available interim financing at various rates of interest based on LIBOR, the bank certificate of deposit rate or other options. The lines of credit are renewable annually at various dates throughout the year. At March 31, 1998, the Registrant had $50 million of short-term borrowings. CONTINGENCIES On March 27, 1998, a jury awarded a total of $3 million to the families of four children who contracted neuroblastoma (a rare form of cancer) following the Registrant's 1987 clean-up of a former manufactured gas plant site in Taylorville, Illinois. The Registrant continues to believe it has meritorious defenses and has appealed the verdict. The Registrant believes that the final disposition of this matter will not have a material adverse effect on its financial position, results of operations or liquidity. RATE MATTERS As a result of the Electric Service Customer Choice and Rate Relief Law of 1997 providing for electric utility restructuring in Illinois, the Registrant filed proposals with the Illinois Commerce Commission (ICC) to eliminate the electric fuel adjustment clause for Illinois retail customers, thereby including a historical level of fuel costs in base rates. The ICC approved the Registrant's filing on March 25, 1998. ACCOUNTING MATTERS In February 1998, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards (SFAS) No. 132, "Employers' Disclosures about Pensions and Other Postretirement Benefits." SFAS 132 revises employers' disclosures about pension and other postretirement benefit plans. SFAS 132 is effective for fiscal years beginning after December 31, 1998, although earlier application is encouraged. SFAS 132 is not expected to have a material impact on the Registrant's financial position or results of operations upon adoption. In March 1998, the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants issued Statement of Position (SOP) 98-1, "Accounting for the Costs of Computer Software Developed or Obtained for Internal Use." SOP 98-1 provides guidance on accounting for the costs of computer software developed or obtained for internal use. Under SOP 98-1, certain costs which are currently expensed by the Registrant may be capitalized and amortized over some future period. SOP 98-1 is effective for fiscal years beginning after December 15, 1998, although earlier application is encouraged. At this time, the Registrant is unable to determine the impact of SOP 98-1 on its financial position or results of operations upon adoption. SAFE HARBOR STATEMENT Statements made in this Form 10-Q which are not based on historical facts, are forward-looking and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking statements have been made in good faith and are based on reasonable assumptions, there is no assurance that the expected results will be achieved. These statements include (without limitation) statements as to future expectations, beliefs, plans, strategies, objectives, events, conditions and financial performance. In connection with the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Registrant is providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. Factors include, but are not limited to, the effects of regulatory actions; changes in laws and other governmental actions; competition; future market prices for electricity; average rates for electricity in the Midwest; business and economic conditions; weather conditions; fuel prices and availability; generation plant performance; monetary and fiscal policies; and legal and administrative proceedings. CENTRAL ILLINOIS PUBLIC SERVICE COMPANY BALANCE SHEET UNAUDITED (Thousands of Dollars, Except Shares) March 31, December 31, 1998 1997 ----------- ------------ ASSETS Property and plant, at original cost: Electric $2,338,953 $2,311,364 Gas 252,922 249,499 ----------- ------------ 2,591,875 2,560,863 Less accumulated depreciation and amortization 1,145,939 1,132,591 ----------- ------------ 1,445,936 1,428,272 Construction work in progress 35,424 59,531 ----------- ------------ Total property and plant, net 1,481,360 1,487,803 ----------- ------------ Other assets 31,798 30,476 Current assets: Cash and cash equivalents 10,202 6,040 Accounts receivable - trade (less allowance for doubtful accounts of $1,198 and $1,200, respectively) 57,692 67,495 Unbilled revenue 17,176 31,708 Other accounts and notes receivable 10,911 7,760 Materials and supplies, at average cost - Fossil fuel 37,648 24,919 Gas stored underground 7,983 14,275 Other 33,013 32,334 Other 9,537 32,637 ----------- ----------- Total current assets 184,162 217,168 ----------- ----------- Regulatory assets: Deferred income taxes 28,052 28,052 Other 23,897 25,208 ----------- ----------- Total regulatory assets 51,949 53,260 ----------- ----------- Total Assets $1,749,269 $1,788,707 =========== =========== CAPITAL AND LIABILITIES Capitalization: Common stock, no par value, authorized 45,000,000 shares - outstanding 25,452,373 shares $120,033 $121,282 Retained earnings 445,315 451,477 ----------- ----------- Total common stockholder's equity 565,348 572,759 Preferred stock not subject to mandatory redemption 80,000 80,000 Long-term debt 562,528 558,474 ----------- ----------- Total capitalization 1,207,876 1,211,233 ----------- ----------- Current liabilities: Current maturity of long-term debt 5,000 9,000 Short-term debt 49,500 64,966 Accounts and wages payable 55,171 89,362 Taxes accrued 25,378 15,869 Other 29,948 21,937 ----------- ----------- Total current liabilities 164,997 201,134 ----------- ----------- Accumulated deferred income taxes 253,417 257,914 Accumulated deferred investment tax credits 39,535 40,369 Regulatory liability 48,587 48,587 Other deferred credits and liabilities 34,857 29,470 ----------- ----------- Total Capital and Liabilities $1,749,269 $1,788,707 =========== ===========
CENTRAL ILLINOIS PUBLIC SERVICE COMPANY STATEMENT OF INCOME UNAUDITED (Thousands of Dollars) Three Months Ended Twelve Months Ended March 31, March 31, ------------------ ------------------- 1998 1997 1998 1997 ---- ---- ---- ---- OPERATING REVENUES: Electric $149,271 $159,553 $690,235 $715,203 Gas 50,244 61,139 140,663 152,072 -------- -------- -------- -------- Total operating revenues 199,515 220,692 830,898 867,275 OPERATING EXPENSES: Operations: Fuel and purchased power 51,082 57,613 235,725 262,559 Gas 32,225 40,330 89,121 95,361 Other 41,294 39,551 161,944 150,592 -------- -------- -------- -------- 124,601 137,494 486,790 508,512 Maintenance 13,835 14,870 74,617 64,893 Depreciation and amortization 18,822 21,176 80,335 83,439 Income taxes 4,348 8,563 29,446 43,285 Other taxes 16,177 16,061 58,011 57,845 -------- -------- -------- -------- Total operating expenses 177,783 198,164 729,199 757,974 OPERATING INCOME 21,732 22,528 101,699 109,301 OTHER INCOME AND DEDUCTIONS Allowance for equity funds used during construction 46 217 612 584 Miscellaneous, net 354 (225) (3,221) (2,000) -------- -------- -------- -------- Total other income and deductions 400 (8) (2,609) (1,416) INCOME BEFORE INTEREST CHARGES 22,132 22,520 99,090 107,885 INTEREST CHARGES: Interest 10,432 8,429 38,794 37,461 Allowance for borrowed funds used during construction (418) (275) (929) (744) -------- -------- -------- -------- Net interest charges 10,014 8,154 37,865 36,717 INCOME BEFORE EXTRAORDINARY CHARGE 12,118 14,366 61,225 71,168 -------- -------- -------- -------- EXTRAORDINARY CHARGE, NET OF INCOME TAXES - - (24,853) - -------- -------- -------- -------- NET INCOME 12,118 14,366 36,372 71,168 PREFERRED STOCK DIVIDENDS 984 913 3,786 3,696 -------- -------- -------- -------- NET INCOME AFTER PREFERRED STOCK DIVIDENDS $11,134 $13,453 $32,586 $67,472 ======== ======== ======== ========
CENTRAL ILLINOIS PUBLIC SERVICE COMPANY STATEMENT OF CASH FLOWS UNAUDITED (Thousands of Dollars) Three Months Ended March 31, ------------------ 1998 1997 ---- ---- Cash Flows From Operating: Net income $12,118 $14,366 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 18,822 21,176 Allowance for funds used during construction (464) (492) Deferred income taxes, net (4,497) (2,900) Deferred investment tax credits, net (834) (833) Changes in assets and liabilities: Receivables, net 21,184 13,554 Materials and supplies (7,116) (398) Regulatory assets - other 1,311 (69,626) Accounts and wages payable (34,191) (12,535) Taxes accrued 9,509 13,439 Other, net 36,875 8,945 ------- ------- Net cash provided by (used in) operating activities 52,717 (15,304) Cash Flows From Investing: Construction expenditures (15,273) (19,551) Allowance for funds used during construction 464 492 ------- ------- Net cash used in investing activities (14,809) (19,059) Cash Flows From Financing: Dividends on common stock (17,155) (17,500) Dividends on preferred stock (1,125) (937) Redemptions - Short-term debt (15,466) (16,743) Long-term debt (10,000) - Issuances - Long-term debt 10,000 72,000 ------- ------- Net cash provided by (used in) financing activities (33,746) 36,820 Net increase in cash and cash equivalents 4,162 2,457 Cash and cash equivalents at beginning of year 6,040 2,261 ------- ------- Cash and cash equivalents at end of period $10,202 $4,718 ======= ======= Cash paid during the periods: Interest (net of amount capitalized) $10,086 $7,692 Income taxes, net $ 867 $1,183
CENTRAL ILLINOIS PUBLIC SERVICE COMPANY NOTES TO FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 1998 Note 1 - Effective December 31, 1997, following the receipt of all required state and federal regulatory approvals, Union Electric Company (AmerenUE) and CIPSCO Incorporated (CIPSCO) combined to form Ameren Corporation (Ameren) (the Merger). Note 2 - Financial statement note disclosures, normally included in financial statements prepared in conformity with generally accepted accounting principles, have been omitted in this Form 10-Q pursuant to the Rules and Regulations of the Securities and Exchange Commission. However, in the opinion of the registrant, the disclosures contained in this Form 10- Q are adequate to make the information presented not misleading. See Notes to Financial Statements included in the 1997 Form 10-K for information relevant to the financial statements contained in this Form 10-Q, including information as to the significant accounting policies of the Registrant. Note 3 - In the opinion of the Registrant the interim financial statements filed as part of this Form 10-Q reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the periods presented. The Registrant's financial statements were prepared to permit the information required in the Financial Data Schedule (FDS), Exhibit 27, to be directly extracted from the filed statements. The FDS amounts correspond to or are calculable from the amounts reported in the financial statements or notes thereto. Note 4 - Due to the effect of weather on sales and other factors which are characteristic of public utility operations, financial results for the periods ended March 31, 1998 and 1997 are not necessarily indicative of trends for any three-month or 12-month period. Note 5 - On March 27, 1998, a jury awarded a total of $3 million to the families of four children who contracted neuroblastoma (a rare form of cancer) following the Registrant's 1987 clean-up of a former manufactured gas plant site in Taylorville, Illinois. The Registrant continues to believe it has meritorious defenses and has appealed the verdict. The Registrant believes that the final disposition of this matter will not have a material adverse effect on its financial position, results of operations or liquidity. Note 6 - Statement of Financial Accounting Standards (SFAS) No. 130, "Reporting Comprehensive Income" became effective on January 1, 1998. SFAS 130 requires that all items that are required to be recognized under accounting standards as components of comprehensive income be reported in the financial statements with the same prominence as other financial statement components. Adoption of SFAS 130 did not have a material effect on the financial position, results of operations, liquidity or presentation of financial information of the Registrant. Note 7 - Certain reclassifications were made to prior-year financial statements to conform with current-period presentation. PART II. OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security Holders. (a) The Annual Meeting of Shareholders of CIPS was held on April 28, 1998. (b) All nominees who were proposed as directors by the Board of Directors were elected and there were no other nominees proposed. The results of the votes cast for directors of CIPS is as follows: Withhold Non-Voted Directors With Authority Authority* Brokers --------- -------------- --------- --------- Paul A. Agathen 25,886,398 3,293 0 Donald E. Brandt 25,886,412 3,279 0 John L. Heath 25,886,393 3,298 0 Robert W. Jackson 25,886,407 3,284 0 Charles W. Mueller 25,886,498 3,193 0 Gary L. Rainwater 25,886,412 3,279 0 Charles J. Schukai 25,886,498 3,193 0 Thomas L. Shade 25,886,401 3,290 0 * Calculated on the basis of cumulative voting. Item 6. Exhibits and Reports on Form 8-K. (A) Exhibits: Exhibit 12 Computation of Ratio of Earnings to Fixed Charges and Computation of Ratio of Earnings to Fixed Charges plus Preferred Stock Dividend Requirements Before Income Taxes. Exhibit 27 Financial Data Schedule (required for electronic filing only in accordance with Item 601(c)(1) of Regulation S-K). (B) Reports on Form 8-K: January 20, 1998 Item 5. Other Events: Write-off of generation-related regulatory assets and regulatory liabilities. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant, Central Illinois Public Service Company, has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Central Illinois Public Service Company (Registrant) Date: May 13, 1998 /s/ W. A. Koertner _________________________________________ W. A. Koertner Vice President - Finance, Administration and Marketing (Principal Financial Officer) CENTRAL ILLINOIS PUBLIC SERVICE COMPANY EXHIBIT INDEX TO FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1998 Exhibit No. Description ___________ ___________ Exhibit 12 Computation of Ratio of Earnings to Fixed Charges and Computation of Ratio of Earnings to Fixed Charges plus Preferred Stock Dividend Requirements Before Income Taxes Exhibit 27 Financial Data Schedule EX-12 2 Exhibit 12 CENTRAL ILLINOIS PUBLIC SERVICE COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED STOCK DIVIDEND REQUIREMENTS BEFORE INCOME TAXES (in thousands) 12 Months Ended __________________________________________________________ December 31, March,31 ________________________________________________ 1998 1997 1996 1995 1994 1993 ________ ________ ________ ________ ________ ________ Net income.... $ 36,372 $ 38,620 $ 77,393 $ 70,631 $ 81,913 $ 84,011 Add-Extraordinary items net of tax. 24,853 24,853 - - - - ________ ________ ________ ________ ________ ________ Net income from continuing operations........$ 61,225 $ 63,473 $ 77,393 $ 70,631 $ 81,913 $ 84,011 Add--Federal and state income taxes: Current........ 35,807 38,660 53,847 41,276 38,097 50,441 Deferred (net). (3,026) (1,665) (2,805) 5,627 13,190 1,674 Deferred investment tax credits, net... (3,335) (3,334) (3,349) (3,361) (3,367) (3,366) Income tax applicable to nonoperating income.......... 64 261 (407) 941 603 631 ________ ________ ________ ________ ________ ________ 29,510 33,922 47,286 44,483 48,523 49,380 ________ ________ ________ ________ ________ ________ Net income before income taxes............. 90,735 97,395 124,679 115,114 130,436 133,391 ________ ________ ________ ________ ________ ________ Add--fixed charges: Interest on long-term debt........... 34,188 32,271 31,409 31,168 31,164 32,823 Other interest. 3,112 2,875 4,636 853 358 479 Amortization of net debt premium, discount, expenses and losses..... 1,494 1,643 1,709 1,703 1,678 1,598 ________ ________ ________ ________ ________ ________ 38,794 36,789 37,754 33,724 33,200 34,900 ________ ________ ________ ________ ________ ________ Earnings as defined...........$129,529 $134,184 $162,433 $148,838 $163,636 $168,291 ======== ======== ======== ======== ======== ======== Ratio of earnings to fixed charges. 3.33 3.64 4.30 4.41 4.92 4.82 Earnings required for preferred dividends: Preferred stock dividends...... 3,787 3,715 3,721 3,850 3,510 3,718 Adjustment to pre-tax basis*......... 1,825 1,985 2,273 2,425 2,079 2,185 ________ ________ ________ ________ ________ ________ 5,612 5,700 5,994 6,275 5,589 5,903 ________ ________ ________ ________ ________ ________ Fixed charges plus preferred stock dividend requirements......$ 44,406 $ 42,489 $ 43,748 $ 39,999 $ 38,789 $ 40,803 ======== ======== ======== ======== ======== ======== Ratio of earnings to fixed charges plus preferred stock dividend requirements...... 2.91 3.15 3.71 3.72 4.21 4.12
* An additional charge equivalent to earnings required to adjust dividends on preferred stock to a pre-tax basis (See below.) { Net income before income taxes } { ______________________________ -100% } X preferred dividends = earnings { Net income } required for preferred dividends - 14 - EX-27 3
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE STATEMENT OF INCOME, STATEMENT OF CASH FLOWS, BALANCE SHEET AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000018654 CIPS 1,000 3-MOS DEC-31-1997 JAN-01-1998 MAR-31-1998 PER-BOOK 1,481,360 0 184,162 31,798 51,949 1,749,269 120,033 0 445,315 565,348 0 80,000 562,528 49,500 0 0 5,000 0 0 0 486,893 1,749,269 199,515 4,348 173,435 177,783 21,732 400 22,132 10,014 12,118 984 11,134 17,155 0 52,717 0 0 INCLUDES INCOME TAX EXPENSE. INFORMATION NOT NORMALLY DISCLOSED IN FINANCIAL STATEMENTS AND NOTES.
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