-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, SdZ/yqXYjBgdHIeI1OfDh/S4yjmfQyWgYZnut6Mt+PZLi9mlTS682ZuVno+YPWWW wmdi18PqRoe6hyXX56CcVQ== 0000072909-94-000009.txt : 19940525 0000072909-94-000009.hdr.sgml : 19940525 ACCESSION NUMBER: 0000072909-94-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940331 FILED AS OF DATE: 19940513 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHERN STATES POWER CO /WI/ CENTRAL INDEX KEY: 0000072909 STANDARD INDUSTRIAL CLASSIFICATION: 4911 IRS NUMBER: 390508315 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-03140 FILM NUMBER: 94527984 BUSINESS ADDRESS: STREET 1: 100 N BARSTOW ST CITY: EAU CLAIRE STATE: WI ZIP: 54702 BUSINESS PHONE: 7158392621 MAIL ADDRESS: STREET 1: P O BOX 8 CITY: EAU CLAIRE STATE: WI ZIP: 54702-008 10-Q 1 10-Q 1ST QUARTER United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark one) X Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended MARCH 31, 1994 Commission File Number 10-3140 NORTHERN STATES POWER COMPANY, A WISCONSIN CORPORATION, MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H (1) AND (2) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT. Northern States Power Company (Exact name of registrant as specified in its charter) Wisconsin 39-0508315 (State or other jurisdiction of (I.R.S.Employer Identification No.) incorporation or organization) 100 North Barstow Street, Eau Claire, Wisconsin 54702 (Address of principal executive officers) (Zip Code) Registrant's telephone number, including area code (715) 839-2621 NONE Former name, former address and former fiscal year, if changed since last report Indicate by check mark whether the registrant (1) has 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 period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at April 30, 1994 Common Stock, $100 par value 862,000 Shares All outstanding common stock is owned beneficially and of record by Northern States Power Company, a Minnesota corporation. Northern States Power Company (Wisconsin) NOTES TO FINANCIAL STATEMENTS In the opinion of management, the accompanying unaudited financial statements contain all adjustments necessary to present fairly the Company's financial position as of March 31, 1994 and December 31, 1993 and the results of its operations for the three months ended March 31, 1994 and March 31, 1993 and cash flows for each of the three months then ended. The accounting policies followed by the Company are set forth in Note 1 to the Company's financial statements in the 1993 SEC Form 10-K. 1. Rate Matters There were no changes in any of the Company's jurisdictions' rates since the 1993 SEC Form 10-K was filed. The Company has offered some of its wholesale customers discounted rates for extended term contracts. These discounts would not materially affect the company's earnings. 2. Accounting Changes Postemployment Benefits Effective January 1, 1994, the company adopted the provisions of Statement of Financial Accounting Standards (SFAS) 112, Accounting for Postemployment Benefits. This standard requires the accrual of certain postemployment costs (such as injury compensation and severance) that are payable in future time periods. No material effect on the Company's results of operations or financial condition is expected from its adoption. Stock Compensation Expense The FASB has issued an Exposure Draft considering the accrual of compensation expense related to certain stock awards beginning in 1997 with disclosure required beginning in 1994. The Company's potential increase in annual compensation expense, as calculated under the provision of this Exposure Draft, is expected to be immaterial. 3. Contingent Liabilities The Company is contingently liable to several financial institutions for debt incurred by companies under the Company's Economic Development Guaranty Program. At March 31, 1994, the Company was contingently liable for approximately $1.4 million under the agreements. No losses were sustained under these agreements during 1992, 1993 nor during the first quarter of 1994; the Company anticipates no future material losses will result from these agreements. 4. Parent Company and Intercompany Agreement-Resolution of Operating Contingency Although the Company does not own a nuclear facility, any impacts on such facilities owned by Northern States Power Company (Minnesota), the parent company, would be a cost included under the Interchange Agreement and the Company would be charged its proportion of the impact. The parent company proposed construction of a temporary onsite dry cask (container) storage facility for spent nuclear fuel at its Prairie Island Nuclear Generating Plant (Prairie Island). At present operating levels, the current Prairie Island onsite storage pool will be filled in 1994. On May 6, 1994, the Minnesota Legislature passed a bill that authorizes NSP to install 17 dry casks at its Prairie Island Nuclear Generating Plant if the Company satisfied certain responsibilities. The first increment of five casks would be available after NSP executes an agreement with the Governor concerning the renewable energy and alternative siting commitments contained in the new law. The second increment of four casks would be available if the Minnesota Environmental Quality Board finds that NSP has applied for an alternative site license, used good faith in locating an alternative site and has committed to build or purchase 100 megawatts (MW) of wind generation. The final increment of eight casks would be available unless prior to June 1, 1999, the Legislature specifically rejects this authorization for the final eight casks, which can only happen if NSP fails to meet the renewable energy commitments of 225 MW of wind generation and 50 MW of biomass generation by December 31, 1998. The Governor has since signed the bill into law. Item 2. Management's Discussion and Analysis of Results of Operations Discussion of financial condition and liquidity is omitted per conditions set forth in general instructions H (1) and (2) of Form 10-Q for wholly-owned subsidiaries. (Reduced disclosure format.) The Company's net income for the first quarter ended March 31, 1994 was $18.3 million, up approximately $2.4 million from the net income recorded for the comparable period a year ago. The increase in net income was primarily due to additional revenues resulting from an increase in weather related energy sales and to a lesser extent due to a gas rate increase of 2.0 percent approved by the PSCW effective January 1, 1994. ELECTRIC SALES AND REVENUES Electric revenues for the first quarter of 1994 increased $5.2 million (5.5 percent) from the electric revenues for the first quarter of 1993. Electric sales increased 6.0 percent in the first quarter of 1994 as compared with the first quarter of 1993 mainly due to the comparably cooler temperatures in 1994. The increased electric wholesale rates effective in September of 1993 resulted in approximately $0.2 million of the increase in the first quarter. GAS SALES AND REVENUES Gas revenues increased $4.5 million (15.5 percent) compared to the first quarter, 1993. This is largely due to a 13 percent increase in firm gas sales due to comparably cooler temperatures in 1994. Higher commodity costs resulted in approximately $1.1 million of purchased gas adjustment clause revenue increases and the forementioned gas rate increase also contributed to the increase. OPERATING EXPENSES Operating expenses increased $7.5 million in the first quarter of 1994 as compared to the first quarter of 1993. Gas purchased for resale increases made up $2.0 million of this increase and were the result of higher commodity costs combined with increased purchased volumes to supply the increased sales. The Company's increased electric sales during the first quarter of 1994 over the first quarter of 1993 combined with increased costs associated with the NSP System's new (effective May 1993) contract with Manitoba Hydro, resulted in the Company's fuel for electric generation and its purchased power and fuel as purchased under its interchange agreement with its parent to increase by approximately $1.7 million. The company's Provision for Deferred Income Taxes has decreased by approximately $2.5 million as a result of debt reacquisitions that occurred in 1993. Offsetting impacts are reflected in the current income tax expense. OTHER INCOME There were no material changes to other income and deductions in the first quarter of 1994 as compared with the first quarter of 1993. INTEREST CHARGES In March 1993, the Company issued $110.0 million of first mortgage bonds due March 1, 2023 with an interest rate of 7- 1/4%. The proceeds from these bonds were used to redeem $47.5 million of 9-1/4% bonds, $38.4 million of 9-3/4% bonds, and $7.8 million of 9-1/4% bonds. In October 1993, the Company issued $40.0 million of first mortgage bonds due October 1, 2003 with an interest rate of 5-3/4%. The proceeds from these bonds were used to redeem $24.3 million of 7-3/4% bonds and $10.8 million of 4-1/2% bonds. These transactions resulted in a $0.4 million reduction in this quarter's interest charges compared to the charges of the first quarter of 1993. PART II. OTHER INFORMATION Item 6: Exhibits and Reports on Form 8-K There were no reports on Form 8-K filed for the three months ended March 31, 1994. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. NORTHERN STATES POWER COMPANY (Registrant) Date: May 13, 1994 /s/ Kenneth J Zagzebski Controller (Principal Accounting Officer) Date: May 13, 1994 /s/ Neal A. Siikarla Treasurer (Principal Financial Officer) PART 1. FINANCIAL INFORMATION Item 1. Financial Statements Three Months March 31 (Thousands of 1994(*) 1993(*) Operating revenues Electric...................................... $100,548 $95,313 Gas........................................... 33,456 28,972 Total....................................... 134,004 124,285 Operating expenses Fuel for electric generation.................. 1,747 1,020 Purchased and interchange power............... 43,462 42,490 Gas purchased for resale...................... 19,912 17,935 Administrative and general.................... 7,018 6,812 Other operation............................... 12,791 12,333 Maintenance................................... 4,144 3,757 Depreciation and amortization................. 7,524 6,917 Taxes: Property and general................... 3,514 3,299 Current income tax expense............. 10,769 6,262 Net Provision for Deferred Income Taxes 1,091 3,619 Net Investment tax credit adjustments.. (236) (239) Total....................................... 111,736 104,205 Operating income............................... 22,268 20,080 Other income Other income and deductions - net............. 52 176 Allowance for funds used during construction - Equity..................................... 152 146 Total Other income........................... 204 322 Income before interest charges................. 22,472 20,402 Interest charges Interest on long-term debt.................... 3,974 4,427 Other interest and amortization............... 288 233 Allowance for funds used during construction - Debt....................................... (96) (115) Total....................................... 4,166 4,545 Net Income..................................... $18,306 $15,857 Statements of Retained Earnings Balance at beginning of period................. $205,114 $192,816 Net income for period.......................... 18,306 15,857 Net Additions................................ 18,306 15,857 Dividends paid................................. 6,206 5,827 Balance at end of period....................... $217,214 $202,846 (*) Unaudited The Notes to Financial Statements are an integral part of the Statement of Income and Retained Earnings
Northern States Power Company (Wisconsin) Balance Sheets March 31 December 31 1994 1993 ASSETS (Thousands of dollars UTILITY PLANT Electric............................................. $812,394 $810,691 Gas.................................................. 81,930 81,567 Other................................................ 44,765 43,279 Total............................................ 939,089 935,537 Accumulated provision for depreciation............. (326,745) (320,938) Net utility plant................................ 612,344 614,599 OTHER PROPERTY AND INVESTMENTS......................... 6,963 6,887 CURRENT ASSETS Cash and cash equivalents............................ 287 449 Accounts receivable - net............................ 41,922 37,716 Materials and supplies - at average cost Fuel............................................... 3,102 2,293 Other.............................................. 5,495 8,692 Accrued utility revenues............................. 12,914 17,230 Prepayments and other................................ 7,403 9,855 Deferred tax asset................................... 1,242 1,254 Total current assets............................. 72,365 77,489 DEFERRED DEBITS Unamortized debt expense............................. 3,044 3,078 Regulatory assets.................................... 30,714 30,036 Other................................................ 5,521 4,890 Total Deferred Debits............................ 39,279 38,004 TOTAL....................................... $730,951 $736,979 LIABILITIES CAPITALIZATION Common Stock - authorized 870,000 shares of $100 par value, issued shares: 1992 and 1991, 862,000.............. $86,200 $86,200 Premium on common stock.............................. 10,461 10,461 Retained Earnings.................................... 217,214 205,114 Total common stock equity........................ 313,875 301,775 LONG-TERM DEBT 217,100 217,600 Total capitalization............................. 530,975 519,375 CURRENT LIABILITIES Notes payable - parent company....................... 2,900 23,500 Long-term debt due within one year................... 500 Accounts payable..................................... 8,393 15,264 Salaries, wages, and vacation pay accrued............ 4,737 5,481 Payable to affiliate companies (principally parent).. 10,858 11,636 Federal taxes accrued................................ 10,280 1,606 Other taxes accrued.................................. 3,430 2,492 Interest accrued..................................... 4,929 4,823 Other................................................ 1,866 1,917 Total current liabilities........................ 47,893 66,719 DEFERRED CREDITS Accumulated deferred income taxes.................... 89,505 88,426 Accumulated deferred investment tax credits.......... 23,417 23,653 Net deferred regulatory liability.................... 22,767 22,416 Other................................................ 16,394 16,390 152,083 150,885 TOTAL........................................ $730,951 $736,979 (*) Unaudited The Notes to Financial Statements are an integral part of the Balance Sheet.
Northern States Power Company (Wisconsin) Statements of Cash Flows
Three Months Ended March 31 (Thousands of doll 1994(*) 1993(*) Cash Flows from Operating Activities: Net Income........................................................... $18,306 $15,857 Adjustments to reconcile net income to cash from operating activities Depreciation and amortization...................................... 7,934 7,409 Deferred income taxes.............................................. 1,091 3,727 Investment tax credit adjustments.................................. (236) (239) Allowance for funds used during construction - equity.............. (152) (146) Other............................................................... 0 0 Cash provided from (used by) changes in working capital.............. 7,738 4,909 Cash provided from (used by) changes in other assets and liabilities.. (19) (304) Net cash provided from operating activities 34,662 31,213 Cash Flows from Financing Activities: Issuance of long-term debt............................................ 0 107,314 Issuance (repayment) of short-term debt.............................. (20,600) (22,000) Redemption of long-term debt(Including Reacquisition Premium)........ 0 (99,411) Dividends paid....................................................... (6,206) (5,827) Net cash used for financing activities (26,806) (19,924) Cash Flows from Investing Activities: Capital expenditures................................................. (5,619) (11,247) Increase (decrease) in construction related accounts payable......... (1,514) (950) Allowance for funds used during construction - equity................ 152 146 Other................................................................ (1,037) 597 Net cash used for investing activities (8,018) (11,454) Net increase (decrease) in cash and cash equivalents.................... (162) (165) Cash and cash equivalents beginning of period........................... 449 881 Cash and cash equivalents end of period................................. $287 $716 The Notes to Financial Statements are an integral part of the Statement of Cash Flows
-----END PRIVACY-ENHANCED MESSAGE-----