-----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, VAWeMW2cKbD+ufdwg4b1aB5t2gqcioBYqVRq0qn2Vjjw5pOQxC9IMl7YAboZ23ps CVpNHyMIFpJDNAXPcbnWqQ== 0000072909-94-000012.txt : 19940812 0000072909-94-000012.hdr.sgml : 19940812 ACCESSION NUMBER: 0000072909-94-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940630 FILED AS OF DATE: 19940811 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: 94543114 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 6-30-94 10-Q FILING 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 JUNE 30, 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 July 31, 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 June 30, 1994 and December 31, 1993 and the results of its operations for the three and six months ended June 30, 1994 and 1993 and cash flows for each of the six 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 Form 10-K. The following notes should be read in conjunction with such policies and other disclosures in the 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 and some of its wholesale customers have accepted discounted rates for extended term contracts. These discounts will 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. The annual expense for costs accrued under SFAS No. 112 is not materially different than amounts recognized under the company's prior accounting method. The Company has recorded its full liability related to such costs in 1994. Stock Compensation Expense The FASB had previously issued an Exposure Draft considering the accrual of compensation expense related to certain stock awards beginning in 1997 with disclosure required beginning in 1994. On June 8, 1994 the FASB decided that there would not be disclosure requirements for 1994. 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 June 30, 1994, the Company was contingently liable for approximately $1.8 million under the agreements. No losses were sustained under these agreements during 1992, 1993 nor during the first six months 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 10, 1994, the Governor of the State of Minnesota signed into law a bill that authorizes NSP to install 17 dry casks at Prairie Island if the Company satisfies 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. 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 second quarter and six months ended June 30, 1994 was $3.4 million and $21.7 million, respectively. Net income decreased $2.6 million for the second quarter and $0.2 million for the six months ended June 30 from the comparable periods a year ago. The decrease in net income in the second quarter is due to increased fuel and purchased power costs and increased maintenance costs. The decrease in net income in the six months ended June 30 reflects these cost increases offset by the first quarter's increased revenue from electric sales. ELECTRIC SALES AND REVENUES Electric revenues for the second quarter of 1994 increased $3.3 million (3.8 percent) from the electric revenues for the second quarter of 1993. Electric sales increased 5.8 percent in the second quarter of 1994 as compared with the second quarter of 1993 mainly due to the comparably warm temperatures in June 1994. The increased electric wholesale rates effective in September of 1993 resulted in approximately $0.2 million of the increase in the second quarter. In addition, electric revenues decreased $0.1 million because of a decrease in other operating revenue. Other operating revenues consist primarily of charges billed to Northern States Power Company, a Minnesota Corporation (Minnesota Company) through the Interchange Agreement. The Interchange Agreement is a cost- sharing arrangement between the Company and the Minnesota Company in which electric generation and transmission costs for the combined systems of the two companies are shared. Electric revenues for the six months ended June 30, 1994, increased $8.5 million (4.7 percent) from the six months ended June 30, 1993. Electric sales revenues increased $7.9 million from the previous year. The increase was mainly due to favorable weather conditions in 1994. Also, an increase in other operating revenues of $0.6 million occurred, largely the result of Interchange Agreement revenues. GAS SALES AND REVENUES Gas revenues decreased $0.3 million (2.3 percent) in the second quarter 1994 compared to the second quarter 1993. This is the net result of a 14.2 percent decrease in interruptible gas sales, a 7.6 percent decrease in firm gas sales due to comparably warmer temperatures in 1994, and higher commodity costs. Gas revenues increased $4.2 million (10.3 percent) in the first six months of 1994 compared to the first six months of 1993. This is primarily due to a $3.1 million increase in purchased gas commodity and transportation costs in purchased gas adjustment clause revenues. A 2.5 percent increase in sales due to 1994's cooler temperatures also contributed to the increase. OPERATING EXPENSES Operating expenses increased $5.9 million in the second quarter of 1994 as compared to the second quarter of 1993. Gas purchased for resale increases made up $1.1 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 second quarter of 1994 over the second 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 $4.2 million. In the second quarter of 1994, maintenance projects on the Company's transmission lines resulted in a $1.1 million increase over the prior year's same quarter. Depreciation on increased plant has increased by approximately $0.5 million over 1993's level. Offsetting impacts of the mentioned expense increases are reflected in the decrease of $2.2. million in current income tax expense. Operating expenses increase $13.5 million for the six months ended June 30, 1994, compared to the same period in 1993. Gas purchased for resale increases made up $3.1 million of the increases primarily as a result of volumes purchased to supply the increase in sales. Purchased and interchange power combined with the Company' generated fuel increased by approximately $5.7 million as a result of the aforementioned sales increases and Manitoba Hydro contract. Maintenance expenses increased $1.5 million and depreciation $1.1 million. The company's Provision for Deferred Income Taxes has decreased by approximately $2.2 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 two quarters of 1994 as compared with the first two quarters 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 were the primary reasons for a $0.4 million reduction in the second quarter's interest charges compared to the charges of the second quarter of 1993 and in a $0.7 million reduction in the first six month's interest charges compared to the charges of the first six months 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 June 30, 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: August 11, 1994 /s/ Kenneth J. Zagzebski Controller (Principal Accounting Officer) Date: August 11, 1994 /s/ Neal A. Siikarla Treasurer (Principal Financial Officer)
Northern States Power Company (Wisconsin) Balance Sheet June 30 December 3 1994 (*) 1993 ASSETS (Thousands of dollars UTILITY PLANT Electric...................................... $822,023 $810,691 Gas........................................... 84,245 81,567 Electric...................................... 47,348 43,279 Total..................................... 953,616 935,537 Accumulated provision for depreciation...... (332,730) (320,938) Net utility plant......................... 620,886 614,599 OTHER PROPERTY AND INVESTMENTS.................. 6,801 6,887 CURRENT ASSETS Cash and cash equivalents..................... 309 449 Accounts receivable - net..................... 35,728 37,716 Materials and supplies - at average cost Fuel........................................ 2,311 2,293 Other....................................... 7,893 8,692 Accrued utility revenues...................... 10,016 17,230 Prepayments and other......................... 9,853 9,855 Deferred tax asset............................ 1,537 1,254 Total current assets...................... 67,647 77,489 DEFERRED DEBITS Unamortized Debt Expense ..................... 2,982 3,078 Regulatory assets ............................ 31,057 30,036 Other ........................................ 4,445 4,890 Total Deferred Debits ...................... 38,484 38,004 TOTAL................................ $733,818 $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............................. 214,449 205,114 Total common stock equity................. 311,110 301,775 LONG-TERM DEBT 216,600 217,600 Total capitalization...................... 527,710 519,375 CURRENT LIABILITIES Notes payable - parent company................ 10,700 23,500 Long-term debt due within one year............ 500 0 Accounts payable.............................. 12,334 15,264 Salaries, wages, and vacation pay accrued..... 4,578 5,481 Payable to affiliate companies (principally pa 11,267 11,636 Federal taxes accrued......................... 1,970 1,606 Other taxes accrued........................... 3,171 2,492 Interest accrued.............................. 4,816 4,823 Other......................................... 2,859 1,917 Total current liabilities................. 52,195 66,719 DEFERRED CREDITS Accumulated deferred income taxes............. 94,488 88,426 Accumulated deferred investment tax credits... 22,913 23,653 Regulatory liabilities ....................... 19,136 22,416 Other......................................... 17,376 16,390 Total Defered Credits...................... 153,913 150,885 TOTAL................................. $733,818 $736,979 (*) Unaudited The Notes to Financial Statements are an integral part
Northern States Power Company (Wisconsin) Statements of Income Three MontSix Months Ended June 30 June 30 (Thousands of dollars) 1994(*) 1993 1994(*) 1993 Operating revenues Electric..................... $88,520 $85,255 $189,068 $180,569 Gas.......................... 11,585 11,852 45,041 40,824 Total...................... 100,105 97,107 234,109 221,393 Operating expenses Fuel for electric generation. 1,053 345 2,799 1,365 Purchased + interchange power 43,883 40,562 87,345 83,052 Gas purchased for resale..... 10,168 9,060 30,080 26,995 Administrative and general... 7,245 6,652 14,263 13,464 Other operation.............. 12,373 12,106 25,164 24,439 Maintenance.................. 5,626 4,549 9,770 8,306 Depreciation and amortization 7,568 7,082 15,092 13,999 Taxes: Property and general.. 3,436 3,203 6,950 6,502 Current income tax expense... 375 2,535 11,145 8,797 Net Prov - Defer Income Tax.. 1,341 1,053 2,432 4,672 Net Investment tax credit adj (236) (239) (472) (478) Total...................... 92,832 86,908 204,568 191,113 Operating income.............. 7,273 10,199 29,541 30,280 Other income Other income + deduct'n - net 141 325 194 500 AFDC - Equity.................... 194 92 346 238 Total Other income.......... 335 417 540 738 Income before interest charges 7,608 10,616 30,081 31,018 Interest charges Interest on long-term debt... 3,963 3,989 7,937 8,416 Other interest + amortizat'n. 326 653 614 885 AFDC Debt...................... (122) (88) (218) (203) Total...................... 4,167 4,554 8,333 9,098 Net Income.................... $3,441 $6,062 $21,748 $21,920 Statements of Retained Earnings Balance at beg. of period.....$217,214 $202,846 $205,114 $192,816 Net income for period......... 3,441 6,062 21,748 21,920 Net Additions............... 3,441 6,062 21,748 21,920 Dividends paid................ 6,206 5,827 12,413 11,655 Balance at end of period......$214,449 $203,081 $214,449 $203,081 (*) Unaudited The Notes to Financial Statements are an integral part of the Statements of Income and Retained Earnings
Northern States Power Company (Wisconsin) Statements of Cash Flows Six Months Ended June 30 (Thousands of $) 1994(*) 1993(*) Cash Flows from Operating Activities: Net Income......................................... $21,748 $21,920 Adj to reconcile net income to cash from operating Depreciation and amortization.................. 15,935 15,236 Deferred income taxes.......................... 5,779 4,283 Investment tax credit adjustments.............. (740) (478) Allowance for funds used during construction - (346) (238) Other........................................... 0 0 Cash prov. from (used by) changes in working capital 6,837 6,679 Cash prov. from (used by) changes in oth assets+liab. (3,633) (443) Net cash provided from operating activities 45,580 46,959 Cash Flows from Financing Activities: Issuance of long-term debt.......................... 0 107,314 Issuance (repayment) of short-term debt............ (12,800) (18,850) Redempt'n of long-term debt(Incl. Reacquisit'n Prem (500) (100,319) Dividends paid..................................... (12,413) (11,654) Net cash used for financing activities (25,713) (23,509) Cash Flows from Investing Activities: Capital expenditures............................... (21,875) (23,418) Increase (decrease) in const'n related accts pay 924 (764) AFDC - equity...................................... 346 238 Other............................................ 598 (248) Net cash used for investing activities (20,007) (24,192) Net increase (decrease) in cash and cash equivalents (140) (742) Cash and cash equivalents beginning of period....... 449 881 Cash and cash equivalents end of period............. $309 $139 The Notes to Financial Statements are an integral part of the Statement of Cash Flows
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