-----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, H0Lg0YzcUWewyzSMPvPgDonbmbjf0q5DeYOI5l4DObIahecUDvAP9Jgiw8q8DMe3 hvrJ8RLGWvvQXfgxA3mUrg== 0000075594-97-000016.txt : 19971115 0000075594-97-000016.hdr.sgml : 19971115 ACCESSION NUMBER: 0000075594-97-000016 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 13 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971113 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PACIFICORP /OR/ CENTRAL INDEX KEY: 0000075594 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 930246090 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-05152 FILM NUMBER: 97717211 BUSINESS ADDRESS: STREET 1: 700 NE MULTNOMAH STE 1600 CITY: PORTLAND STATE: OR ZIP: 97232 BUSINESS PHONE: 5037312000 FORMER COMPANY: FORMER CONFORMED NAME: PACIFICORP /ME/ DATE OF NAME CHANGE: 19890628 FORMER COMPANY: FORMER CONFORMED NAME: PC/UP&L MERGING CORP DATE OF NAME CHANGE: 19890628 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 September 30, 1997 __________________ OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission file number 1-5152 ______ PACIFICORP (Exact name of registrant as specified in its charter) STATE OF OREGON 93-0246090 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 700 N.E. Multnomah Suite 1600 Portland, Oregon 97232-4116 (Address of principal executive offices) (Zip code) 503-731-2000 (Registrant's telephone number) 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 twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days. YES X NO _____ _____ At October 31, 1997, there were 296,551,651 shares of registrant's common stock outstanding. 1 PACIFICORP
Page No. ________ PART I. FINANCIAL INFORMATION 2 Item 1. Financial Statements 2 Condensed Consolidated Statements of Income and Retained Earnings 2 Condensed Consolidated Statements of Cash Flows 3 Condensed Consolidated Balance Sheets 4 Notes to Condensed Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 11 PART II. OTHER INFORMATION 32 Item 1. Legal Proceedings 32 Item 6. Exhibits and Reports on Form 8-K 32 Signature 33
2 PART I. FINANCIAL INFORMATION Item 1. Financial Statements PACIFICORP CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS (Millions of Dollars, except per share amounts) (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ___________________ _________________ 1997 1996 1997 1996 ______ ______ ______ ______ REVENUES $2,010.6 $1,011.9 $4,272.5 $2,751.9 _______ _______ _______ _______ EXPENSES Operations 1,464.0 464.2 2,700.0 1,211.9 Maintenance 49.9 49.2 164.6 158.9 Administrative and general 74.9 69.3 225.0 194.4 Depreciation and amortization 114.9 106.1 338.9 313.4 Taxes, other than income taxes 25.8 25.8 79.6 80.6 _______ _______ _______ _______ TOTAL 1,729.5 714.6 3,508.1 1,959.2 _______ _______ _______ _______ INCOME FROM OPERATIONS 281.1 297.3 764.4 792.7 _______ _______ _______ _______ INTEREST EXPENSE AND OTHER Interest expense 112.8 103.1 331.6 309.0 Interest capitalized (3.5) (2.4) (9.7) (8.9) Other expense - net 109.2 3.6 104.8 0.6 _______ _______ _______ _______ TOTAL 218.5 104.3 426.7 300.7 _______ _______ _______ _______ Income from continuing operations before income taxes 62.6 193.0 337.7 492.0 Income tax expense 15.7 70.4 112.4 174.1 _______ _______ _______ _______ Income from continuing operations 46.9 122.6 225.3 317.9 Discontinued Operations (less applicable income tax expense: 1997/$16.6 and $41.8, 1996/$13.0 and $34.7 27.1 20.3 64.5 54.1 _______ _______ _______ _______ NET INCOME 74.0 142.9 289.8 372.0 RETAINED EARNINGS BEGINNING OF PERIOD 827.7 685.0 782.8 632.4 Cash dividends declared Preferred stock (5.5) (5.7) (16.6) (23.5) Common stock per share: 1997 and 1996/$.27 and $.81 (80.1) (79.5) (239.9) (238.2) Preferred stock retired - (7.5) - (7.5) _______ _______ _______ _______ RETAINED EARNINGS END OF PERIOD $ 816.1 $ 735.2 $ 816.1 $ 735.2 ======= ======= ======= ======= EARNINGS ON COMMON STOCK (Net income less preferred dividend requirement) $ 68.2 $ 136.6 $ 271.8 $ 347.7 Average number of common shares outstanding (Thousands) 296,347 294,396 295,884 291,594 EARNINGS PER COMMON SHARE Continuing operations $ .14 $ .39 $ .70 $ 1.00 Discontinued operations .09 .07 .22 .19 _______ _______ _______ _______ TOTAL $ .23 $ .46 $ .92 $ 1.19 ======= ======= ======= ======= See accompanying Notes to Condensed Consolidated Financial Statements
3 PACIFICORP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions of Dollars) (Unaudited)
Nine Months Ended September 30, ______________________ 1997 1996 ______ ______ CASH FLOWS FROM OPERATING ACTIVITIES Income from continuing operations $ 225.3 $ 317.9 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 351.5 326.0 Deferred income taxes and investment tax credits - net 20.7 18.1 Other 82.8 (.7) Accounts receivable and prepayments (225.6) (67.9) Materials, supplies, fuel stock and inventory (10.1) 9.3 Accounts payable and accrued liabilities 168.8 106.4 ______ ______ Net cash provided by continuing operations 613.4 709.1 Net cash provided by (used in) discontinued operations (3.7) 36.8 ______ ______ NET CASH PROVIDED BY OPERATING ACTIVITIES 609.7 745.9 ______ ______ CASH FLOWS FROM INVESTING ACTIVITIES Construction (440.2) (377.2) Investments in and advances to affiliated companies - net (43.5) (145.9) Operating companies and assets acquired (293.7) (176.8) Proceeds from sales of assets 2.5 28.8 Proceeds from sales of finance assets and principal payments 52.6 61.8 Other (37.2) (14.6) ______ ______ NET CASH USED IN INVESTING ACTIVITIES (759.5) (623.9) ______ ______ CASH FLOWS FROM FINANCING ACTIVITIES Changes in short-term debt 23.8 (200.6) Proceeds from long-term debt 742.4 429.1 Proceeds from issuance of common stock 29.1 210.7 Proceeds from issuance of Trusts holding solely PacifiCorp debentures preferred securities 130.7 210.1 Dividends paid (256.0) (261.5) Repayments of long-term debt (373.3) (246.6) Redemptions of preferred stock (72.2) (223.8) Other (65.0) (43.4) ______ ______ NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 159.5 (126.0) ______ ______ INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 9.7 (4.0) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 8.4 15.8 ______ ______ CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 18.1 $ 11.8 ====== ====== SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the period for Interest (net of amount capitalized) $ 382.9 $ 350.1 Income taxes 115.2 150.6 See accompanying Notes to Condensed Consolidated Financial Statements
4 PACIFICORP CONDENSED CONSOLIDATED BALANCE SHEETS (Millions of Dollars) (Unaudited) ASSETS
September 30, December 31, 1997 1996 ____________ ____________ CURRENT ASSETS Cash and cash equivalents $ 18.1 $ 8.4 Accounts receivable less allowance for doubtful accounts: 1997/$10.0 and 1996/$8.5 915.1 620.9 Materials, supplies and fuel stock at average cost 190.8 181.3 Net assets of discontinued operations 803.5 779.5 Other 46.9 71.8 ________ ________ TOTAL CURRENT ASSETS 1,974.4 1,661.9 PROPERTY, PLANT AND EQUIPMENT Domestic Electric Operations 11,997.8 11,698.8 Australian Electric Operations 1,292.4 1,361.9 Other Operations 262.1 68.8 Accumulated depreciation and amortization (4,125.9) (3,862.4) ________ ________ TOTAL PROPERTY, PLANT AND EQUIPMENT - NET 9,426.4 9,267.1 OTHER ASSETS Investments in and advances to affiliated companies 388.1 253.9 Intangible assets - net 567.3 480.7 Regulatory assets - net 1,008.4 1,022.8 Finance note receivable 212.1 214.6 Finance assets - net 420.9 425.6 Real estate investments 239.9 217.0 Deferred charges and other 358.5 268.7 ________ ________ TOTAL OTHER ASSETS 3,195.2 2,883.3 ________ ________ TOTAL ASSETS $14,596.0 $13,812.3 ======== ======== See accompanying Notes to Condensed Consolidated Financial Statements
5 PACIFICORP CONDENSED CONSOLIDATED BALANCE SHEETS (Millions of Dollars) (Unaudited) LIABILITIES AND SHAREHOLDERS' EQUITY
September 30, December 31, 1997 1996 ____________ ____________ CURRENT LIABILITIES Long-term debt currently maturing $ 627.8 $ 219.8 Notes payable and commercial paper 707.4 683.5 Accounts payable 602.7 477.5 Taxes, interest and dividends payable 344.7 290.8 Customer deposits and other 182.3 83.7 ________ ________ TOTAL CURRENT LIABILITIES 2,464.9 1,755.3 DEFERRED CREDITS Income taxes 1,816.7 1,801.0 Investment tax credits 137.2 143.2 Other 660.4 713.2 ________ ________ TOTAL DEFERRED CREDITS 2,614.3 2,657.4 MINORITY INTEREST 15.1 14.7 LONG-TERM DEBT 4,859.6 4,829.4 GUARANTEED PREFERRED BENEFICIAL INTERESTS IN COMPANY'S JUNIOR SUBORDINATED DEBENTURES 340.4 209.7 PREFERRED STOCK SUBJECT TO MANDATORY REDEMPTION 175.0 178.0 PREFERRED STOCK 66.4 135.5 COMMON EQUITY Common shareholders' capital shares authorized 750,000,000; shares outstanding: 1997/296,537,648 and 1996/295,139,753 3,266.1 3,236.8 Retained earnings 816.1 782.8 Cumulative currency translation adjustment (21.9) 12.7 ________ ________ TOTAL COMMON EQUITY 4,060.3 4,032.3 ________ ________ COMMITMENTS AND CONTINGENCIES (See Note 5) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $14,596.0 $13,812.3 ======== ======== See accompanying Notes to Condensed Consolidated Financial Statements
6 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) September 30, 1997 1. FINANCIAL STATEMENTS The accompanying unaudited condensed consolidated financial statements as of September 30, 1997 and December 31, 1996 and for the periods ended September 30, 1997 and 1996, in the opinion of management, include all adjustments, constituting only normal recording of accruals, necessary for a fair presentation of financial position, results of operations and cash flows for such periods. A significant part of the business of PacifiCorp (the "Company") is of a seasonal nature; therefore, results of operations for the periods ended September 30, 1997 and 1996 are not necessarily indicative of the results for a full year. These condensed consolidated financial statements should be read in conjunction with the financial statements and related notes incorporated by reference in the Company's 1996 Annual Report on Form 10-K. The condensed consolidated financial statements of the Company include its integrated domestic electric utility operating divisions of Pacific Power and Utah Power and its wholly owned and majority owned subsidiaries. Major subsidiaries, all of which are wholly owned, are: PacifiCorp Holdings, Inc. ("Holdings"), which holds all of the Company's nonintegrated electric utility investments, including Powercor Australia Limited ("Powercor"), an Australian electricity distributor; PacifiCorp Financial Services, Inc. ("PFS"), a financial services business; and PacifiCorp Power Marketing, Inc. ("PPM"), engaged in wholesale power trading in the eastern energy markets. On April 15, 1997, Holdings acquired 100% of TPC Corporation ("TPC"), a natural gas gathering, processing, storage and marketing company. Together these businesses are referred to herein as the Companies. Significant intercompany transactions and balances have been eliminated. The Company also owns a telecommunications operation, Pacific Telecom, Inc. ("PTI"). The Company has agreed to the disposal of this operation. See Note 3. The Company disposed of Pacific Generation Company ("PGC") on November 1, 1997, and has agreed to the disposal of the natural gas gathering and processing assets of TPC. See Note 4. In addition, the Company has announced its intention to sell certain other assets held by its financial services business. Investments in and advances to affiliated companies represent investments in unconsolidated affiliated companies carried on the equity basis, which approximates the Company's equity in their underlying net book value. Certain amounts from the prior period have been reclassified to conform with the 1997 method of presentation. These reclassifications had no effect on previously reported consolidated net income. 2. PROPOSED ACQUISITION On June 13, 1997, PacifiCorp announced a cash tender offer by PacifiCorp Acquisitions, a wholly owned subsidiary of Holdings, for The Energy Group PLC ("TEG") in a transaction valued at approximately $9.6 billion in debt and equity. TEG is a diversified international energy group with operations in the United 7 Kingdom (the "U.K."), the United States and Australia and includes Peabody Holding Company, Inc., the world's largest private producer of coal, and Eastern Group PLC, one of the leading integrated electricity and gas groups in the U.K. On August 1, 1997, the U.K. Secretary of State for Trade and Industry referred the proposed acquisition of TEG to the Monopolies and Mergers Commission (the "MMC"). The MMC is required to investigate whether the acquisition operates or may be expected to operate against the public interest and has stated its intent to deliver its report to the Secretary of State by November 21, 1997. The Company is cooperating fully with the MMC's investigation. The TEG acquisition also remains subject to antitrust review in the United States. The Company is in the process of responding to a second request for information from the Federal Trade Commission. Any recommend offer by the Company to acquire TEG will also require approval of TEG's Board of Directors. As required under the rules of the U.K. Takeover Code, the Company was required to demonstrate that it had both adequate committed financing and the appropriate amount of sterling to eliminate the risk of exchange rate changes between the offer announcement date and the expected closing date. As a result, the Company entered into 1.45 billion pounds of foreign exchange contracts to lock-in a strike price of approximately $1.64 per pound sterling. Under the terms of the original tender offer, the referral by the U.K. Secretary of State caused the tender offer to lapse. As a result, the financing facilities associated with the TEG acquisition terminated and the Company initiated steps to unwind its foreign exchange positions consistent with its policies on derivatives. As a result of the termination of these foreign exchange positions and initial option costs, the Company realized an after-tax loss of approximately $65 million, or $0.22 per share, in the third quarter of 1997. Generally accepted accounting principles require all costs related to currency hedge positions entered into in anticipation of an acquisition be expensed in the period incurred whether or not the Company is successful in completing the transaction. Additionally, the Company estimates it has incurred approximately $60 million of other costs related to the TEG transaction for bank commitment and facility fees, legal expenses and other related costs. These costs have been deferred because the Company expects to make a new bid for TEG, if allowed. As mentioned above, there is risk that a transaction with TEG will not occur. If it becomes likely that the transaction will not occur or significant uncertainty arises, the Company will write off these transaction costs as a charge to income. 3. DISCONTINUED OPERATIONS On June 13, 1997, the Company announced the planned sale of its wholly owned telecommunications subsidiary, PTI, to Century Telephone Enterprises, Inc. ("Century") for $1.5 billion in cash plus the assumption of PTI's debt. The sale of PTI is subject to regulatory approvals in certain of the states in which it does business. Approval from the Federal Communications Commission was received on October 10, 1997. The sale of PTI is expected to close in the fourth quarter of 1997 at which time the Company expects to recognize an after-tax gain of approximately $370 million, or $1.25 per share. The net assets, operating results and cash flows of PTI have been classified as discontinued operations for all periods presented in the condensed financial statements and notes. 8 Summarized results for PTI were as follows:
Three-Month Nine-Month Periods Ended Periods Ended September 30, September 30, __________________ _________________ 1997 1996 1997 1996 ______ ______ ______ ______ (Dollars in Millions) Revenues $154.0 $136.6 $416.2 $386.2 _____ _____ _____ _____ Income from discontinued operations before income taxes $ 43.7 $ 33.3 $106.3 $ 88.8 Income taxes 16.6 13.0 41.8 34.7 _____ _____ _____ _____ Income from discontinued operations $ 27.1 $ 20.3 $ 64.5 $ 54.1 ===== ===== ===== =====
4. SALES OF SUBSIDIARIES On November 1, 1997, the Company completed the sale of PGC to NRG Energy, Inc. for $151 million in cash. An after-tax gain on the sale of approximately $30 million, or $0.10 per share, will be recognized in the fourth quarter of 1997. On October 28, 1997, TPC reached an agreement to sell all of the capital stock of three subsidiaries that hold its natural gas gathering and processing assets to El Paso Field Services Company for $195 million in cash. The sale of the natural gas gathering and processing assets of TPC is subject to certain conditions, including the expiration or termination of all applicable waiting periods under the Hart-Scott-Rodino Act, and is expected to close in the fourth quarter of 1997. Holdings acquired the outstanding common stock of TPC in a cash tender offer in April this year and, under purchase accounting rules, no gain or loss will be recognized on the sale. 5. CONTINGENT LIABILITIES The Company is subject to numerous environmental laws including: the Federal Clean Air Act, as enforced by the Environmental Protection Agency and various state agencies; the 1990 Clean Air Act Amendments; the Endangered Species Act as it relates to certain potentially endangered species of salmon; the Comprehensive Environmental Response, Compensation and Liability Act, relating to environmental cleanups; along with the Federal Resource Conservation and Recovery Act and the Clean Water Act relating to water quality. These laws could potentially impact future operations. Future costs associated with the disposition of contingencies identified at December 31, 1996 are not expected to be material to the Company's consolidated financial statements. These matters include the Superfund sites where the Company has been or may be designated as a potentially responsible party and Clean Air Act matters. The Company's mining operations are subject to reclamation and closure requirements. The Company monitors these requirements and periodically revises its cost estimates to meet existing legal and regulatory requirements of the various jurisdictions in which it operates. Costs for reclamation are accrued using the units-of-production method such that estimated final mine reclamation and closure costs are fully accrued at completion of mining activities. This is 9 consistent with industry practices, and the Company believes that it has adequately provided for its reclamation obligations. The Company and its subsidiaries are parties to various legal claims, actions and complaints, certain of which involve material amounts. Although the Company is unable to predict with certainty whether or not it will ultimately be successful in these legal proceedings or, if not, what the impact might be, management currently believes that disposition of these matters will not have a materially adverse effect on the Company's consolidated financial statements. The Company's 1991, 1992 and 1993 federal income tax returns are currently under examination by the Internal Revenue Service (the "IRS"). The Company has received an examination report for 1989 and 1990 proposing adjustments that would increase income tax by $11 million. The Company filed a protest of certain proposed adjustments on July 30, 1996 and is currently holding discussions with the Appeals Division of the IRS. 6. GUARANTEED PREFERRED BENEFICIAL INTERESTS IN COMPANY'S JUNIOR SUBORDINATED DEBENTURES On August 4, 1997, PacifiCorp Capital II, a wholly owned subsidiary trust of the Company (the "Trust"), issued, in a public offering, 5,400,000 of its 7.70% Trust Preferred Securities, Series B (the "Preferred Securities"), representing preferred undivided beneficial interests in the assets of the Trust, with a liquidation amount of $25 per Preferred Security. The sole assets of the Trust are $139 million, in aggregate principal amount, of the Company's Series D Debentures due September 30, 2027, and certain rights under a related guarantee by the Company. The Company's guarantee of the Preferred Securities, considered together with the other obligations of the Company with respect to Preferred Securities, constitutes a full and unconditional guarantee by the Company of the Trust's obligations with respect to the Preferred Securities. 7. STOCK INCENTIVE PLAN During 1997, the Company formalized a plan under which selected employees, officers and directors and selected nonemployee agents, consultants, advisors and independent contractors may be granted options to purchase the Company's common stock. Options generally become exercisable in three equal installments on each of the first through third anniversaries of the grant date and have a maximum term of ten years. As of September 30, 1997, options have been granted to 193 officers and employees. Under the plan, 1,322,500 options were granted on June 3, 1997 and 193,500 options were granted on August 12, 1997 at prices of $19.75 and $21.25, respectively. These options to purchase the Company's common stock were issued at 100% of market price on the dates the options were granted. None of the options were exercisable as of September 30, 1997. The Company applies Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees," and related interpretations in accounting for its plan. Accordingly, no compensation expense has been recognized for its stock-based compensation plan. 10 8. NEW ACCOUNTING PRONOUNCEMENT ISSUED BUT NOT ADOPTED In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards ("SFAS") No. 131, "Disclosures about Segments of an Enterprise and Related Information." SFAS No. 131 establishes standards for public enterprises reporting information about operating segments in annual financial statements and requires those enterprises to report selected information about operating segments in interim financial reports issued to shareholders. It also establishes standards for related disclosures about products and services, geographic areas and major customers. This Statement is effective for fiscal years beginning after December 15, 1997. Management is assessing the disclosure implications of this Statement. 11 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS SUMMARY RESULTS OF OPERATIONS This report includes forward-looking statements that involve a number of risks and uncertainties that may influence the financial performance and earnings of the Company and its subsidiaries, including the factors identified in the Company's 1996 Annual Report on Form 10-K. Such forward-looking statements should be considered in light of those factors. Comparison of the three-month periods ended September 30, 1997 and 1996 _______________________________________________________________________
% 1997 1996 Change Change ____ ____ ______ ______ (Dollars in Millions) Earnings contribution on common stock (1) Domestic Electric Operations $ 87.5 $100.1 $(12.6) (13) Australian Electric Operations 15.8 6.6 9.2 139 Other Operations (62.2) 9.6 (71.8) * _____ _____ _____ Continuing Operations 41.1 116.3 (75.2) (65) Discontinued Operations (2) 27.1 20.3 6.8 33 _____ _____ _____ Total $ 68.2 $136.6 $(68.4) (50) ===== ===== ===== Earnings per common share Continuing Operations $ .14 $ .39 $ (.25) (64) Discontinued Operations (2) .09 .07 .02 29 _____ _____ _____ Total $ .23 $ .46 $ (.23) (50) ===== ===== ===== *Not a meaningful number. (1) Earnings contribution on common stock by segment: (a) does not reflect elimination for interest on intercompany borrowing arrangements; (b) includes income taxes on a separate company basis, with any benefit or detriment of consolidation reflected in Other Operations; (c) amounts are net of preferred dividend requirements and minority interest. (2) Discontinued operations represents the Company's interest in PTI.
Earnings on common stock of PacifiCorp declined $68 million, or $0.23 per share. Third quarter 1997 results included a loss of $0.22 per share associated with closing foreign exchange positions. Domestic Electric Operations earnings contribution decreased $13 million, or 13%. Income from operations declined $11 million, or 4%. Increased depreciation expense and higher outside service costs contributed to the decrease in operating income. Increased interest costs were offset in part by reduced income taxes. The earnings contribution from Australian Electric Operations increased $9 million due to 34% load growth at Powercor, mainly from the contestable 12 customer market, and by reductions in generator energy prices. Contestable customers are those customers that are able to choose their electricity supplier. The earnings contribution from Other Operations declined $72 million. Third quarter 1997 results included an after-tax loss of $65 million associated with closing foreign exchange positions relating to the Company's tender offer for TEG. After-tax interest expense for Other Operations increased $3 million due to higher debt balances as a result of the acquisition of Hazelwood power station ("Hazelwood"). The earnings contribution from the discontinued operations of PTI totaled $27 million in 1997 compared to $20 million in 1996. Growth of 6% in customer access lines and increased cable capacity sales accounted for the increase. Comparison of the nine-month periods ended September 30, 1997 and 1996 ______________________________________________________________________
% 1997 1996 Change Change ____ ____ ______ ______ (Dollars in Millions) Earnings contribution on common stock Domestic Electric Operations $224.3 $248.5 $(24.2) (10) Australian Electric Operations 44.9 22.5 22.4 100 Other Operations (61.9) 22.6 (84.5) * _____ _____ _____ Continuing Operations 207.3 293.6 (86.3) (29) Discontinued Operations 64.5 54.1 10.4 19 _____ _____ _____ Total $271.8 $347.7 $(75.9) (22) ===== ===== ===== Earnings per common share Continuing Operations $ .70 $ 1.00 $ (.30) (30) Discontinued Operations .22 .19 .03 16 _____ _____ _____ Total $ .92 $ 1.19 $ (.27) (23) ===== ===== ===== *Not a meaningful number.
Earnings on common stock of PacifiCorp declined $76 million, or $0.27 per share. Results for 1997 included declines of $0.22 per share associated with closing foreign exchange positions, and $0.01 per share relating to billing adjustments for certain Domestic Electric industrial customers, offset in part by a $0.02 per share increase relating to acceleration of deferred credits associated with Tariff H customers in Australia. Results for 1996 included a $0.04 per share gain associated with asset sales at the Company's financial services and telecommunications subsidiaries. Domestic Electric Operations earnings contribution declined $24 million, or 10%. Increases in retail and wholesale revenues were offset by higher operating, overhead and interest costs. Despite the earnings decline, Domestic Electric Operations experienced 3% growth in the average number of retail customers. Additionally, sales volumes for the wholesale electric business rose 86%. These revenue improvements were partially offset by higher purchased power and fuel expenses. 13 The earnings contribution from Australian Electric Operations increased $22 million due to load growth of 33% at Powercor, mainly from the contestable customer market. Earnings contributions from Other Operations declined $85 million. The 1997 results included an after-tax loss of $65 million associated with closing foreign exchange positions relating to the Company's tender offer for TEG, and after-tax interest expense of $5 million relating to Holdings' investment in Hazelwood. The 1996 results included gains associated with sales of financial assets totaling $10 million. The earnings contribution from the discontinued operations of PTI increased $10 million. Increased customer access line growth of 6%, increased sales of enhanced services, growth in cellular operations and increased cable capacity sales primarily accounted for the change. 14 RESULTS OF OPERATIONS Domestic Electric Operations ____________________________ Comparison of the three-month periods ended September 30, 1997 and 1996 _______________________________________________________________________
% 1997 1996 Change Change ____ ____ ______ ______ (Dollars in Millions) Revenues Residential $ 184.1 $ 182.0 $ 2.1 1 Commercial 168.7 160.1 8.6 5 Industrial 201.6 207.7 (6.1) (3) Other 8.1 8.6 (.5) (6) _______ _______ _______ Retail sales 562.5 558.4 4.1 1 Wholesale sales 409.7 210.5 199.2 95 Other 20.7 20.1 .6 3 _______ _______ _______ Total 992.9 789.0 203.9 26 Operating expenses 764.9 550.4 214.5 39 _______ _______ _______ Income from operations 228.0 238.6 (10.6) (4) Interest expense 81.5 72.6 8.9 12 Minority interest and other (.3) (1.1) .8 73 Income taxes 53.5 60.7 (7.2) (12) _______ _______ _______ Net income 93.3 106.4 (13.1) (12) Preferred dividend requirement 5.8 6.3 (.5) (8) _______ _______ _______ Earnings contribution $ 87.5 $ 100.1 $ (12.6) (13) ======= ======= ======= Energy sales (millions of kWh) Residential 2,832 2,806 26 1 Commercial 3,189 2,980 209 7 Industrial 5,572 5,627 (55) (1) Other 184 165 19 12 ______ ______ _____ Retail sales 11,777 11,578 199 2 Wholesale sales 15,354 8,094 7,260 90 ______ ______ _____ Total 27,131 19,672 7,459 38 ====== ====== ===== Residential average usage (kWh) 2,331 2,375 (44) (2) Total customers (end of period) 1,427,478 1,398,166 29,312 2
Revenues Domestic Electric revenues increased $204 million, or 26%, as a result of a $199 million, or 95%, increase in wholesale revenues and a $4 million, or 1%, increase in retail revenues. Retail revenues improved to $563 million mainly on the strength of increased energy sales volumes of 2%. Wholesale revenues increased $199 million, or 95%, and associated energy sales volumes increased 90%. Increased short-term firm and spot market energy volumes added $169 million. Short-term firm and spot market sales prices averaged $23 per mWh compared to $16 per mWh for the same period in 1996. The increased prices added $30 million in revenues. 15 Residential revenues were up $2 million, or 1%. Growth in the average number of residential customers of 3% added $5 million to revenue. This increase was offset in part by price decreases of $1 million in the Company's Utah jurisdiction and by a decline in customer usage of $2 million, which was largely attributable to weather. Commercial revenues grew by $9 million, or 5%, on a 7% increase in energy sales. Growth in the average number of customers of 2% added $4 million to revenues, while increased usage per customer added $6 million. Industrial revenues decreased $6 million, or 3%. Mild weather and planting conditions reduced irrigation revenues by $9 million. Increased usage, primarily by industrial customers in Eastern Wyoming, added $3 million to revenue. On February 12, 1997, the Division of Public Utilities and Committee of Consumer Service in Utah filed a joint petition with the Utah Public Service Commission (the "PSC") requesting the Commission to commence proceedings to establish new rates for Utah customers. The petitioners requested an immediate hearing on a $12 million interim rate reduction and a subsequent general rate case, which the petitioners alleged could result in rates being reduced as much as $54 million. On March 4, 1997, the Utah Legislature passed a bill which created a legislative task force to study stranded cost issues and the timing of customer choice. The bill froze rates in Utah at January 31, 1997 levels until 60 days following the conclusion of the 1998 legislative general session, which is expected to occur March 7, 1998. The PSC is precluded from holding any hearings on rate changes during the freeze period. The Company agreed to an interim price decrease to Utah customers of $12.4 million annually on April 15, 1997. The effect on retail revenues for the period from April 15, 1997 through September 30, 1997 was a decrease of $6 million. Depending on actions taken by the Utah Legislature, the PSC could hold rate hearings after the freeze period expires in 1998, with any price change retroactively effective to the date of the rate case petition. A settlement was reached between the Company and the Bonneville Power Administration ("BPA") for BPA's remaining obligation to the Company under the Residential Purchase and Sales Agreement ("RPSA"). Under the settlement, the BPA will pay the Company a total of $61.8 million through June 30, 2001, when the current RPSA expires. Payments include $47.7 million for the Company's Idaho jurisdiction and $14.1 million for the Oregon jurisdiction. The settlement is intended to mitigate the effect of reduced exchange benefits received by the Company's residential and small farm customers. As a result of the settlement, the Company reduced prices for Idaho irrigation customers by 8% effective May 1, 1997. Operating Expenses Purchased power and wheeling expense increased $199 million, or 119%, to $366 million. Short-term firm and spot market energy purchases were up $166 million, or 7.4 million mWh, more than doubling the amount of purchases in the same period of 1996. Short-term firm and spot market purchase prices averaged $22 per mWh in the quarter versus $15 per mWh in the third quarter of 1996. The increase in purchased power costs included $26 million relating to price increases. Net power costs in the quarter were $6.81 per mWh, compared to $6.75 per mWh, a 1% increase. Net power cost represents the net cost to serve the Company's 16 domestic retail customers on a mWh basis. This is measured by the sum of fuel, purchased power and wheeling expense, less wholesale power and wheeling revenues. The increase in net power cost is attributable to higher average fuel costs offset in part by increased hydro generation and increased wholesale revenue contribution, primarily from higher short-term firm and spot market sales. Administrative and general expenses increased $5 million, or 7%, to $77 million. The increase resulted from higher outside service costs. Depreciation and amortization expense increased $6 million, or 7%, to $92 million. The increase is attributed to increased plant in service. Other Income and Expense Interest expense increased $9 million, or 12%. The increase was attributable to higher debt balances as the result of increased capital contributions to Holdings relating to the acquisition of TPC in the second quarter of 1997. Income tax expense declined $7 million, or 12%, as a result of a decrease in taxable income. 17 Comparison of the nine-month periods ended September 30, 1997 and 1996 ______________________________________________________________________
% 1997 1996 Change Change ____ ____ ______ ______ (Dollars in Millions) Revenues Residential $ 588.6 $ 576.5 $ 12.1 2 Commercial 474.9 459.3 15.6 3 Industrial 537.5 545.3 (7.8) (1) Other 24.1 24.2 (.1) - _______ _______ _______ Retail sales 1,625.1 1,605.3 19.8 1 Wholesale sales 893.8 507.5 386.3 76 Other 58.6 46.2 12.4 27 _______ _______ _______ Total 2,577.5 2,159.0 418.5 19 Operating expenses 1,968.9 1,523.8 445.1 29 _______ _______ _______ Income from operations 608.6 635.2 (26.6) (4) Interest expense 235.7 217.8 17.9 8 Minority interest and other (13.4) (14.6) 1.2 8 Income taxes 144.0 159.2 (15.2) (10) _______ _______ _______ Net income 242.3 272.8 (30.5) (11) Preferred dividend requirement 18.0 24.3 (6.3) (26) _______ _______ _______ Earnings contribution $ 224.3 $ 248.5 $ (24.2) (10) ======= ======= ======= Energy sales (millions of kWh) Residential 9,294 9,260 34 - Commercial 8,811 8,500 311 4 Industrial 15,472 15,382 90 1 Other 546 480 66 14 ______ ______ ______ Retail sales 34,123 33,622 501 1 Wholesale sales 37,456 20,166 17,290 86 ______ ______ ______ Total 71,579 53,788 17,791 33 ====== ====== ====== Residential average usage (kWh) 7,694 7,878 (184) (2) Total customers (end of period) 1,427,478 1,398,166 29,312 2
Revenues Domestic Electric revenues increased $419 million, or 19%, as a result of a $386 million, or 76%, increase in wholesale revenues and a $20 million, or 1%, increase in retail revenues. Retail revenues were 1% higher due to increased energy volumes associated with customer growth. This increase was partially offset by decreased usage largely attributable to the effects of weather. Increased power marketing activity led to an 86% increase in wholesale energy sales and a $386 million, or 76%, increase in revenues. Increased short-term firm and spot market energy volumes added $318 million. Short-term firm and spot market sales prices averaged $19 per mWh compared to $13 per mWh for the same period in 1996. The increased prices added $55 million to revenues. Increased long-term firm sales volumes added $9 million. Residential revenues were up $12 million, or 2%. Growth in the average number of customers of 3% added $14 million to revenue. Higher average prices increased revenues $8 million primarily due to increased rates in Oregon and Wyoming, 18 partially offset by the $6 million decrease in Utah described above. These increases were offset in part by declining customer usage of $11 million, which is largely attributable to weather. Commercial revenues grew by $16 million, or 3%, on a 4% increase in energy sales. Growth in the average number of customers of 3% added $15 million to revenues, while increased usage per customer added $2 million. Industrial revenues decreased $8 million, or 1%, despite a 1% increase in energy sales. Billing adjustments for certain customers reduced revenues by $6 million. Rate decreases in Utah, partially offset by increases in Wyoming, reduced revenues by $4 million. Increased usage, primarily for small to medium-sized industrial customers in Oregon and large industrial customers in Eastern Wyoming, added $10 million to revenue. Mild weather and planting conditions reduced irrigation revenues by $8 million. Operating Expenses Purchased power and wheeling expense increased $370 million, or 89%, to $787 million. Short-term firm and spot market energy purchases were up $283 million, or 16.4 million mWh, more than doubling the amount of purchases in the same period of 1996. Short-term firm and spot market purchase prices averaged $17 per mWh versus $11 per mWh in 1996. The increase in energy prices added $63 million to costs and increased long-term firm purchased power contracts added $12 million. Fuel expense increased $23 million, or 7%, to $339 million. Thermal generation was up 3% to 35.8 million mWh, adding $16 million to fuel costs. Net power costs were $6.80 per mWh, compared to $6.84 per mWh in 1996, a 1% decrease. The lower net power cost is attributable to an 11% increase in hydro generation and a larger wholesale revenue contribution, offset in part by higher average fuel costs. Other operations and maintenance expense increased $18 million, or 6%, to $345 million. The higher expense was caused by increases of $5 million in generation plant operating costs and $6 million of demand side revenue amortization, which is recovered through other revenue. Additionally, customer service expenses increased $5 million, tree trimming expense increased $2 million and costs associated with storm damage in late 1996 of $3 million were recorded. Administrative and general expenses increased $17 million, or 8%, to $226 million. The increase resulted from higher employee-related expenses and outside service costs totaling $7 million and $9 million, respectively. Also included in the increase is $4 million in amortization of deferred regulatory costs for post retirement benefits, recovered through revenues in Oregon and Wyoming price increases. Depreciation and amortization expense increased $18 million, or 7%, to $272 million. The increase was attributable to increased plant in service, including the addition of the Hermiston plant in July 1996 and the Company's new customer service system. 19 Other Income and Expense Interest expense increased $18 million, or 8%. The increase was attributable to higher debt balances as the result of the acquisition of the Hermiston plant in July 1996, and capital contributions to Holdings relating to the acquisition of TPC in the second quarter of 1997. Minority interest expense increased $10 million due to issuances in June 1996 and August 1997 of Company obligated preferred securities of wholly owned subsidiary trusts. Increased sales of surplus dioxide emission allowances added $7 million to other income. Income tax expense declined $15 million, or 10%, as a result of a decrease in taxable income. Preferred dividend requirements declined $6 million due to the redemptions of preferred stock in July 1996 and August 1997. 20 Australian Electric Operations ______________________________ Comparison of the three-month periods ended September 30, 1997 and 1996 _______________________________________________________________________
% 1997 1996 Change Change ____ ____ ______ ______ (Dollars in Millions) Powercor Earnings Contribution Revenues Residential $ 66.4 $ 67.7 $(1.3) (2) Commercial 50.6 47.2 3.4 7 Industrial and other 62.8 57.8 5.0 9 _____ _____ ____ 179.8 172.7 7.1 4 Other 5.6 5.4 .2 4 _____ _____ ____ Total 185.4 178.1 7.3 4 Operating expenses 147.3 143.6 3.7 3 _____ _____ ____ Income from operations 38.1 34.5 3.6 10 Interest expense 15.4 18.8 (3.4) (18) Other income (.4) .5 (.9) * Income taxes 8.4 8.6 (.2) (2) _____ _____ ____ Earnings contribution $ 14.7 $ 6.6 $ 8.1 123 ===== ===== ==== Hazelwood Earnings Contribution (a) $ 1.1 $ - $ 1.1 * ===== ===== ==== Powercor energy sales (millions of kWh) Residential 777 747 30 4 Commercial 724 523 201 38 Industrial and other 1,445 932 513 55 _____ _____ ___ Total 2,946 2,202 744 34 ===== ===== === *Not a meaningful number. (a) Acquired September 13, 1996.
Revenues Powercor's revenues increased $7 million, or 4%. The increase was attributable to increased energy sales volumes of 744 million kWh, or 34%. Energy volumes to contestable customers outside Powercor's franchise area were up 712 million kWh and added $21 million to revenue due to customer gains in Victoria and New South Wales. This included increased energy volumes for customers in Victoria of 263 million kWh that added $7 million to revenue, as well as 449 million kWh sold in 1997 to customers in the recently deregulated market in New South Wales that added $14 million to revenue. Revenue inside Powercor's franchise area from franchise and contestable customers decreased $14 million, or 9%. Lower average realized prices reduced revenue by $16 million. This reduction was offset in part by increased energy volumes of 26 million kWh. 21 Operating Expenses Purchased power expense decreased $4 million, or 4%, to $81 million. Lower pool prices reduced power costs by $32 million, offset in part by a 34% increase in purchased power volumes that added $28 million to costs. Purchased power prices averaged $28 per mWh, compared to $38 per mWh in 1996. Other operations expense increased $9 million, or 45%, to $28 million. Increased sales to contestable customers outside Powercor's franchise area resulted in higher network and grid fees of $13 million. This was offset in part by higher network revenues of $4 million from customers inside Powercor's franchise area serviced by other electricity companies. Interest expense decreased $3 million, or 18%, primarily due to reduced interest rates. Income tax expense was $8 million, which approximated 1996 amounts. The effective tax rate in 1997 is lower than 1996 due to adjustments made in 1996 for prior period tax accruals. Powercor obtains most of its required electricity through a state-wide generation pool. Pool prices vary depending on certain conditions, including weather, economic growth and other factors influencing supply and demand for electric power. Powercor has hedged its pool price exposure with a number of vesting contracts. Prices under the contracts are lower in the Australian summer months because demand is lowest, resulting in higher profit margins for Powercor in the first and fourth calendar quarters. Hazelwood The Company recorded earnings in 1997 of $1 million, excluding the effect of interest charges, on its equity investment in the Hazelwood power station, which was purchased in September of 1996. Hazelwood sells its generation output through a state-wide generation pool and under bilateral contracts directly with Victorian distribution companies. Pool and contract prices vary depending on the same factors described above with respect to Powercor's purchases. Power prices are highest in the Australian winter months because demand is highest, which generally is expected to result in higher profit margins for Hazelwood during the second and third calendar quarters. 22 Comparison of the nine-month periods ended September 30, 1997 and 1996 ______________________________________________________________________
% 1997 1996 Change Change ____ ____ ______ ______ (Dollars in Millions) Powercor Earnings Contribution Revenues Residential $186.3 $180.5 $ 5.8 3 Commercial 149.8 115.1 34.7 30 Industrial and other 181.4 164.0 17.4 11 _____ _____ ____ 517.5 459.6 57.9 13 Other 29.4 18.0 11.4 63 _____ _____ ____ Total 546.9 477.6 69.3 15 Operating expenses 426.6 383.8 42.8 11 _____ _____ ____ Income from operations 120.3 93.8 26.5 28 Interest expense 49.9 56.6 (6.7) (12) Other (income) expense - net (.9) 1.4 (2.3) * Income taxes 25.7 13.3 12.4 93 _____ _____ ____ Earnings contribution $ 45.6 $ 22.5 $23.1 103 ===== ===== ==== Hazelwood Earnings Contribution (a) $ (.7) $ - $ (.7) * ===== ===== ==== Powercor energy sales (millions of kWh) Residential 2,060 2,004 56 3 Commercial 2,014 1,268 746 59 Industrial and other 3,899 2,718 1,181 43 _____ _____ _____ Total 7,973 5,990 1,983 33 ===== ===== ===== *Not a meaningful number. (a) Acquired September 13, 1996.
Revenues Powercor's revenues increased $69 million, or 15%. The increase was attributable to increased energy sales volumes of 1,983 million kWh, or 33%. Energy volumes to contestable customers outside Powercor's franchise area were up 2,007 million kWh and added $77 million to revenue. This includes increased energy volumes for customers in Victoria of 1,242 million kWh which added $53 million to revenue, and energy volumes in 1997 for new customers in New South Wales of 765 million kWh, which added $24 million to revenue. Revenue from customers inside Powercor's franchise area decreased $21 million, or 5%. Lower average realized prices reduced revenue by $19 million. Decreased energy volumes of 24 million kWh, including the net effect of customers lost and gained due to contestability in Powercor's franchise area, reduced revenue by $2 million. Other revenues increased $11 million as a result of accelerated amortization of deferred credits associated with the movement of Tariff H customers to market-based contracts, and increased cable television income. The deferred credits were recorded at the time Powercor was acquired. 23 Operating Expenses Purchased power expense increased $15 million, or 7%, to $236 million. A 33% increase in purchased power volumes that added $73 million to costs was offset in part by lower pool prices of $58 million. Purchased power prices averaged $30 per mWh compared to $37 per mWh in 1996. Other operations expense increased $27 million, or 65%. Increased sales to contestable customers outside Powercor's franchise area resulted in higher network and grid fees of $37 million. This was offset in part by higher network revenues of $10 million from customers inside Powercor's franchise area serviced by other electricity companies. Interest expense decreased $7 million, or 12%, primarily due to reduced interest rates. Income tax expense increased $12 million. The increase is primarily due to higher taxable income in 1997. Hazelwood The Company recorded a $1 million loss, before the effect of interest charges, in 1997 on its equity investment in Hazelwood. 24 Discontinued Telecommunications Operations __________________________________________ Comparison of the three-month periods ended September 30, 1997 and 1996 _______________________________________________________________________
% 1997 1996 Change Change ____ ____ ______ ______ (Dollars in Millions) Revenues Local network service $ 39.5 $ 35.5 $ 4.0 11 Network access service 69.2 64.3 4.9 8 Cellular and other 45.3 36.8 8.5 23 _____ _____ ____ Total 154.0 136.6 17.4 13 Operating expenses 102.9 95.1 7.8 8 _____ _____ ____ Income from operations 51.1 41.5 9.6 23 Interest expense 10.2 10.0 .2 2 Other income - net (2.8) (1.8) (1.0) (56) Income taxes 16.6 13.0 3.6 28 _____ _____ ____ Earnings contribution $ 27.1 $ 20.3 $ 6.8 33 ===== ===== ==== Telephone access lines (end of period) 613,422 553,154 60,268 11
Revenues PTI's revenues increased $17 million, or 13%. Growth of 6% in local exchange access lines, excluding acquisitions, and growth in enhanced services added $3 million to revenue. Network access service revenue increased $3 million due to prior period revenue adjustments and $2 million due to increased minutes of use. Customer growth increased cellular revenue $3 million and increased sales of cable capacity added $6 million. Operating Expenses Operating expenses increased $8 million, or 8%. The increase included $1 million attributable to local exchange access line growth, $2 million in depreciation expense for increased local exchange company plant balances and $4 million for increased sales of cable capacity. Other Income and Expense Interest expense for the third quarter of 1997 was $10 million which approximated 1996 levels. Income taxes increased $4 million in 1997 due to increased taxable income. 25 Comparison of the nine-month periods ended September 30, 1997 and 1996 ______________________________________________________________________
% 1997 1996 Change Change ____ ____ ______ ______ (Dollars in Millions) Revenues Local network service $112.7 $102.0 $10.7 10 Network access service 198.7 190.4 8.3 4 Cellular and other 104.8 93.8 11.0 12 _____ _____ ____ Total 416.2 386.2 30.0 8 Operating expenses 283.0 271.4 11.6 4 _____ _____ ____ Income from operations 133.2 114.8 18.4 16 Interest expense 30.4 30.6 (.2) (1) Other income - net (3.5) (4.6) 1.1 24 Income taxes 41.8 34.7 7.1 20 _____ _____ ____ Earnings contribution $ 64.5 $ 54.1 $10.4 19 ===== ===== ==== Telephone access lines (end of period) 613,422 553,154 60,268 11
Revenues PTI's revenues increased $30 million, or 8%. Growth of 6% in local access lines, excluding acquisitions, and growth in enhanced services added $9 million to local network service revenues. Network access service revenues increased $3 million due to higher minutes of use and $3 million due to prior year revenue adjustments. Cellular and other revenues increased $6 million due to cellular customer growth and $4 million due to additional sales of cable capacity. Operating Expenses Operating expenses increased $12 million, or 4%. The increase included $2 million in costs for increased local exchange access lines, $4 million in depreciation for increased local exchange plant assets, and $2 million for increased cost of cable capacity sales. Other Income and Expense Other income included a $2 million decrease due to a reduction in gains on sales of cellular properties. Income taxes increased $7 million primarily due to an increase in taxable income in 1997. 26 Other Operations ________________ Comparison of the three-month periods ended September 30, 1997 and 1996 _______________________________________________________________________
% 1997 1996 Change Change ____ ____ ______ ______ (Dollars in Millions) Revenues $832.3 $44.8 $787.5 * _____ ____ _____ Income from operations $ 15.0 $24.2 $ (9.2) (38) _____ ____ _____ Earnings contribution TPC $ (0.7) $ - $ (0.7) * PPM 1.4 1.6 (0.2) (13) PFS 5.2 5.2 - - PGC 3.0 4.5 (1.5) (33) Holdings and other (70.9) (1.7) (69.2) * _____ ____ _____ Total $(62.2) $ 9.6 $(71.8) * ===== ==== ===== *Not a meaningful number.
Third quarter 1997 results for Other Operations included an after-tax loss of $65 million, or $0.22 per share, associated with closing foreign exchange positions relating to the Company's offer for TEG. See "Investing Activities, Acquisitions and Planned Expansion." TPC, which was acquired in April 1997, incurred a $1 million loss in the quarter on revenues of $258 million and PGC's earnings declined $2 million. The assets of PGC were sold on November 1, 1997 for $151 million in cash. On October 28, 1997, TPC entered into an agreement to sell its natural gas gathering and processing assets for $195 million. See "Investing Activities, Asset Dispositions." The earnings from PPM were $1 million in the third quarter of 1997, which approximated earnings for the same period in 1996. Third quarter revenues increased $542 million to $545 million on increased energy trading activity. After-tax interest expense for Other Operations increased $3 million in 1997. The increase is attributable in part to higher debt balances as a result of the acquisition of Hazelwood. 27 Comparison of the nine-month periods ended September 30, 1997 and 1996 ______________________________________________________________________
% 1997 1996 Change Change ____ ____ ______ ______ (Dollars in Millions) Revenues $1,148.1 $115.3 $1,032.8 * _______ _____ _______ Income from operations $ 35.5 $ 63.7 $ (28.2) (44) _______ _____ _______ Earnings contribution TPC $ (1.6) $ - $ (1.6) * PPM (0.7) (0.1) (0.6) * PFS 14.7 23.6 (8.9) (38) PGC 7.0 6.7 0.3 4 Holdings and other (81.3) (7.6) (73.7) * _______ _____ _______ Total $ (61.9) $ 22.6 $ (84.5) * ======= ===== ======= *Not a meaningful number.
Other Operations incurred losses of $62 million in the 1997 period compared to income of $23 million in 1996. The 1997 results for Other Operations included an after-tax loss of $65 million, or $0.22 per share, associated with closing foreign exchange positions relating to the Company's offer for TEG. Conversely, the 1996 earnings included gains of $9 million relating to sales of financial service assets. Revenues and income from operations for PFS were $35 million and $11 million, respectively, in 1997 compared to $65 million and $34 million, respectively, in 1996. The reduction in revenue and income from operations resulted from sales of finance assets. TPC, acquired in April 1997, incurred a net loss of $2 million in 1997 on revenues of $410 million. PPM's revenues increased $650 million to $653 million on increased energy trading activities; however, its recorded loss of $1 million was virtually unchanged from the prior period. After-tax interest expense for Other Operations increased $8 million in 1997. The increase is attributable in part to higher debt balances as a result of the acquisitions of Hazelwood and TPC. 28 FINANCIAL CONDITION - For the nine months ended September 30, 1997: OPERATING ACTIVITIES Net cash flows provided by continuing operations were $613 million during the period compared to $709 million in the first nine months of 1996. The $96 million decrease in operating cash flows was primarily attributable to cash expenditures relating to the proposed acquisition of TEG. INVESTING ACTIVITIES Capital spending totaled $777 million in 1997 compared with $700 million in 1996. Construction expenditures totaled $440 million in 1997 compared to $377 million in 1996 due primarily to higher expenditures for Domestic Electric Operations and Australian Electric Operations. Acquisitions and Planned Expansion-- As required under the rules of the U.K. Takeover Code, the Company was required to demonstrate that it had both adequate committed financing and the appropriate amount of sterling to eliminate the risk of exchange rate changes between the offer announcement date for TEG and the expected closing date. As a result, the Company entered into 1.45 billion pounds of foreign exchange contracts to lock-in a strike price of approximately $1.64 per pound sterling. On August 1, 1997, the U.K. Secretary of State for Trade and Industry decided to refer the proposed acquisition of TEG to the MMC. Under the terms of the original tender offer, this action caused the tender offer to lapse. As a result, the financing facilities associated with the TEG acquisition terminated and the Company initiated steps to unwind its foreign exchange positions consistent with its derivative policies. At the time the offer lapsed and the Company had initiated steps to withdraw from the foreign exchange positions, the dollar-sterling exchange rate was approximately $1.63. By the time the positions were closed, however, the exchange rate fell to approximately $1.58, resulting in an after-tax loss of approximately $56 million. In addition, the cost of the initial options was approximately $9 million after tax. These losses, totaling $65 million, or $0.22 per share, were recorded in the third quarter. Generally accepted accounting principles require all costs related to currency hedge transactions entered into in anticipation of an acquisition be expensed in the period incurred whether or not the Company is successful in completing the transaction. In the event the Company is able to renew its offer for TEG, it would expect to enter into foreign exchange positions to adhere to both internal hedging requirements and the U.K. Takeover Code provisions. Additionally, the Company estimates it has incurred approximately $60 million of other costs related to the TEG transaction for bank commitment and facility fees, legal expenses and other related costs. These costs have been deferred because the Company expects to proceed with the TEG transaction, if allowed. 29 On April 15, 1997, Holdings, through a subsidiary, acquired all of the outstanding shares of common stock of TPC, a natural gas gathering, processing, storage and marketing company based in Houston, Texas, for approximately $265 million in cash and assumed debt of approximately $140 million. Following completion of a tender offer, TPC became a wholly owned subsidiary of Holdings through a cash merger at the same price. During May 1997, TPC retired $131 million of its outstanding long-term debt. These transactions were funded with capital contributions from PacifiCorp. Sales of Subsidiaries-- See Note 4 for information concerning the sale of PGC to NRG Energy, Inc. On October 28, 1997, TPC reached an agreement to sell all of the capital stock of three subsidiaries that hold its natural gas gathering and processing systems to El Paso Field Services Company for $195 million. The Company will retain TPC's gas marketing and Market Hub Partners salt-dome storage operations, headquartered in Houston. Discontinued Operations-- See Note 3 for information concerning the sale of PTI to Century. On September 30, 1997, PTI acquired local exchange assets in Minnesota serving approximately 27,000 access lines from US WEST Communications, Inc. for approximately $103 million in cash. On October 6, 1997, PTI acquired local exchange assets in Fairbanks, Alaska, serving approximately 34,000 access lines and 6,800 cellular customers from the City of Fairbanks for $84 million, and on October 31, 1997, PTI acquired local exchange assets in Michigan serving approximately 12,000 access lines from GTE North Incorporated for approximately $34 million in cash. These acquisitions were funded by cash from PTI's operations of $98 million, escrow accounts of $6 million and the issuance of external debt by PTI of $117 million. CAPITALIZATION At September 30, 1997, the Company had approximately $515 million of commercial paper and uncommitted bank borrowings outstanding at an average weighted rate of 5.7%. These borrowings are supported by $700 million of revolving credit agreements. At September 30, 1997, the consolidated subsidiaries had access to $1.6 billion of short-term funds through committed bank revolving credit agreements. Subsidiaries had $169 million of commercial paper outstanding at September 30, 1997, as well as borrowings of $1.1 billion under bank revolving credit facilities. At September 30, 1997, the Companies had $1.1 billion of short-term debt classified as long-term debt as they have the intent and ability to support short-term borrowings through the various revolving credit facilities on a long-term basis. The Company and its subsidiaries have intercompany borrowing arrangements providing for temporary loans of funds between parties at short-term market rates. On May 8, 1997, the Company received proceeds of $400 million from a term loan agreement with certain institutional lenders. The proceeds were used to repay short-term debt. 30 During July 1997, the Company issued $300 million of secured medium-term notes in the form of First Mortgage and Collateral Trust Bonds as follows: $175 million of 6.75% notes due July 15, 2004 and $125 million of 7.0% notes due July 15, 2009. Proceeds were used to repay short-term debt that had been reclassified as long-term debt at June 30, 1997. On August 4, 1997, a wholly owned subsidiary Trust issued, in a public offering, 5,400,000 of its 7.70% Preferred Securities for proceeds of $135 million. Concurrent with the issuance of the Preferred Securities, the Trust issued Series A Common Securities to the Company in the amount of $4 million. The sole asset of the Trust is $139 million of Series D Debentures issued by the Company. The net proceeds to the Company from the issuance of the Debentures is $131 million. See Note 6 to Condensed Consolidated Financial Statements. During 1997, the Company redeemed all outstanding shares of its $1.98 and $7.12 No Par Serial Preferred Stock. The aggregate stated value of the shares redeemed was $72 million. ______________________________________________________________________________ The condensed consolidated financial statements as of September 30, 1997 and December 31, 1996 and for the three-month and nine-month periods ended September 30, 1997 and 1996 have been reviewed by Deloitte & Touche LLP, independent accountants, in accordance with standards established by the American Institute of Certified Public Accountants. A copy of their report is included herein. 31 Deloitte & Touche LLP _____________________ _____________________________________________________ 3900 US Bancorp Tower Telephone:(503)222-1341 111 SW Fifth Avenue Facsimile:(503)224-2172 Portland, Oregon 97204-3698 INDEPENDENT ACCOUNTANTS' REPORT PacifiCorp: We have reviewed the accompanying condensed consolidated balance sheet of PacifiCorp and subsidiaries as of September 30, 1997, and the related condensed consolidated statements of income and retained earnings for the three- and nine-month periods ended September 30, 1997 and 1996 and cash flows for the nine-month periods ended September 30, 1997 and 1996. These financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and of making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to such condensed consolidated financial statements for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated balance sheet of PacifiCorp and subsidiaries as of December 31, 1996, and the related consolidated statements of income, stockholders' equity, and cash flows for the year then ended (not presented herein); and in our report dated January 31, 1997 (March 11, 1997 as to Note 15), we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 1996 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. DELOITTE & TOUCHE LLP October 17, 1997 32 PART II. OTHER INFORMATION Item 1. Legal Proceedings ______ _________________ Regarding the Notice of Violation and Order issued by the Wyoming Department of Environmental Quality in regard to Unit 4 of the Jim Bridger Power Plant (see "Item 3. Legal Proceedings" at page 21 of the Company's Annual Report on Form 10-K for the year ended December 31, 1996), the matter has been fully resolved by payment of a $38,000 fine. In Sierra Club v. Tri-State Generation and Transmission Association, _________________________________________________________________ Inc., et al. (see "Item 3. Legal Proceedings" at page 22 of the ____ Company's Annual Report on Form 10-K for the year ended December 31, 1996), the maximum penalty which the EPA may assess has been increased from $25,000 to $27,500 per day per violation. Item 6. Exhibits and Reports on Form 8-K ______ ________________________________ (a) Exhibits. Exhibit 12(a): Statements of Computation of Ratio of Earnings to Fixed Charges. Exhibit 12(b): Statements of Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends. Exhibit 15: Letter re unaudited interim financial information of awareness of incorporation by reference. Exhibit 27: Financial Data Schedule for the quarter ended September 30, 1997 (filed electronically only). (b) Reports on Form 8-K. On Form 8-K dated October 15, 1997, under Item 5. "Other Events," the Company filed its news release relating to an agreement entered into by PacifiCorp Holdings, Inc. to sell Pacific Generation Company to NRG Energy, Inc., a wholly owned subsidiary of Northern States Power. 33 SIGNATURE 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. PACIFICORP Date November 13, 1997 By RICHARD T. O'BRIEN _________________________ _________________________________ Richard T. O'Brien Senior Vice President (Chief Financial Officer) INDEX TO EXHIBITS
EXHIBIT DESCRIPTION PAGE _______ ___________ ____ Exhibit 12(a): Statements of Computation of Ratio of Earnings to Fixed Charges. Exhibit 12(b): Statements of Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends. Exhibit 15: Letter re unaudited interim financial information of awareness of incorporation by reference. Exhibit 27: Financial Data Schedule for the quarter ended September 30, 1997 (filed electronically only).
EX-12.A 2 EXHIBIT (12)(a) PACIFICORP STATEMENTS OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (IN MILLIONS OF DOLLARS)
YEAR ENDED DECEMBER 31 NINE MONTHS ______________________________________________ ENDED 1992 1993 1994 1995 1996 Sept. 30, 1997 ____ ____ ____ ____ ____ ______________ Fixed Charges, as defined:* Interest expense..................... $ 357.6 $ 333.5 $ 302.0 $ 336.4 $ 415.0 $331.8 Estimated interest portion of rentals charged to expense......... 6.0 4.8 5.6 4.5 4.1 2.7 Preferred dividends of wholly owned subsidiary............ - - - - 15.3 22.6 _______ _______ _______ _______ _______ _____ Total fixed charges.......... $ 363.6 $ 338.3 $ 307.6 $ 340.9 $ 434.4 $357.1 ======= ======= ======= ======= ======= ===== Earnings, as defined:* Income from continuing operations......................... $ 92.9 $ 371.8 $ 397.5 $ 402.0 $ 430.2 $225.3 Add (deduct): Provision for income taxes......... 58.3 163.6 209.0 191.8 236.5 112.4 Minority interest.................. (0.5) 2.7 1.3 1.4 1.8 1.8 Undistributed income of less than 50% owned affiliates........ (6.3) (16.2) (14.7) (15.0) (18.2) (14.9) Fixed charges as above............. 363.6 338.3 307.6 340.9 434.4 357.1 _______ _______ _______ _______ _______ _____ Total earnings............... $ 508.0 $ 860.2 $ 900.7 $ 921.1 $1,084.7 $681.7 ======= ======= ======= ======= ======= ===== Ratio of Earnings to Fixed Charges..... 1.4x 2.5x 2.9x 2.7x 2.5x 1.9x ==== ==== ==== ==== ==== ==== *"Fixed charges" represent consolidated interest charges, an estimated amount representing the interest factor in rents and preferred stock dividend requirements of majority-owned subsidiaries. "Earnings" represent the aggregate of (a) income from continuing operations, (b) taxes based on income from continuing operations, (c) minority interest in the income of majority-owned subsidiaries that have fixed charges, (d) fixed charges and (e) undistributed income of less than 50% owned affiliates without loan guarantees.
EX-12.B 3 PACIFICORP EXHIBIT (12)(b) STATEMENTS OF COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (IN MILLIONS OF DOLLARS)
YEAR ENDED DECEMBER 31 NINE MONTHS _______________________________________________ ENDED 1992 1993 1994 1995 1996 Sept. 30, 1997 ____ ____ ____ ____ ____ ______________ Fixed Charges, as defined:* Interest expense..................... $ 357.6 $ 333.5 $ 302.0 $ 336.4 $ 415.0 $331.8 Estimated interest portion of rentals charged to expense...... 6.0 4.8 5.6 4.5 4.1 2.7 Preferred dividends of wholly owned subsidiary............ - - - - 15.3 22.6 _______ _______ _______ _______ _______ _____ Total fixed charges.......... $ 363.6 $ 338.3 $ 307.6 $ 340.9 $ 434.4 $357.1 Preferred Stock Dividends, as defined:*....................... 59.9 56.8 60.8 57.0 46.2 27.0 _______ _______ _______ _______ _______ _____ Total fixed charges and preferred dividends........ $ 423.5 $ 395.1 $ 368.4 $ 397.9 $ 480.6 $384.1 ======= ======= ======= ======= ======= ===== Earnings, as defined:* Income from continuing operations.... $ 92.9 $ 371.8 $ 397.5 $ 402.0 $ 430.2 $225.3 Add (deduct): Provision for income taxes......... 58.3 163.6 209.0 191.8 236.5 112.4 Minority interest.................. (0.5) 2.7 1.3 1.4 1.8 1.8 Undistributed income of less than 50% owned affiliates............. (6.3) (16.2) (14.7) (15.0) (18.2) (14.9) Fixed charges as above............. 363.6 338.3 307.6 340.9 434.4 357.1 _______ _______ _______ _______ _______ _____ Total earnings............... $ 508.0 $ 860.2 $ 900.7 $ 921.1 $1,084.7 $681.7 ======= ======= ======= ======= ======= ===== Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends.. 1.2x 2.2x 2.4x 2.3x 2.3x 1.8x ==== ==== ==== ==== ==== ==== *"Fixed charges" represent consolidated interest charges and an estimated amount representing the interest factor in rents. "Preferred Stock Dividends" represent preferred dividend requirements multiplied by the ratio which pre-tax income from continuing operations bears to income from continuing operations. "Earnings" represent the aggregate of (a) income from continuing operations, (b) taxes based on income from continuing operations, (c) minority interest in the income of majority-owned subsidiaries that have fixed charges, (d) fixed charges and (e) undistributed income of less than 50% owned affiliates without loan guarantees.
EX-15 4 Deloitte & Touche LLP ___________ _____________________________________________________ Suite 3900 Telephone:(503)222-1341 111 S.W. Fifth Avenue Facsimile:(503)224-2172 Portland, Oregon 97204-3698 EXHIBIT 15 November 10, 1997 PacifiCorp 700 N.E. Multnomah Portland, Oregon We have made a review, in accordance with standards established by the American Institute of Certified Public Accountants, of the unaudited interim financial information of PacifiCorp and subsidiaries for the periods ended September 30, 1997 and 1996, as indicated in our report dated October 17, 1997; because we did not perform an audit, we expressed no opinion on that information. We are aware that our report referred to above, which is included in your Quarterly Report on Form 10-Q for the quarter ended September 30, 1997, is incorporated by reference in Registration Statement Nos. 33-51277, 33-54169, 33-57043, 33-58461, and 333-10885 all on Form S-8, Registration Statement No. 33-36239 on Form S-4, and Registration Statement Nos. 33-62095 and 333-09115 on Form S-3. We also are aware that the aforementioned report, pursuant to Rule 436(c) under the Securities Act of 1933, is not considered a part of the Registration Statement prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of Sections 7 and 11 of that Act. DELOITTE & TOUCHE LLP EX-27 5 EXHIBIT 27(A)
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PACIFICORP'S FORM 10-Q DATED SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000075594 PACIFICORP 1,000 9-MOS DEC-31-1997 JAN-01-1997 SEP-30-1997 PER-BOOK 7894600 2487200 1974400 358500 1881300 14596000 3244200 0 816100 4060300 175000 66400 4835800 148300 0 559100 626900 0 23900 900 4099400 14596000 4272500 112400 3508100 3620500 652000 (95100) 556900 331600 289800 18000 271800 239300 213800 609700 .92 .92 CURRENT ASSETS INCLUDE NET ASSETS OF DISCONTINUED OPERATIONS OF $803,500. NET INCOME AND EARNINGS AVAILABLE FOR COMMON INCLUDE INCOME FROM DISCONTINUED OPERATIONS OF $64,500. EPS INCLUDES EARNINGS PER COMMON SHARE FROM DISCONTINUED OPERATIONS OF $0.22.
EX-27.(B) 6 EXHIBIT 27(B)
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PACIFICORP'S FORM 10-Q DATED JUNE 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000075594 PACIFICORP 1,000 6-MOS DEC-31-1997 JAN-01-1997 JUN-30-1997 PER-BOOK 7865600 2533100 1767200 325600 1888900 14380400 3241200 0 827700 4068900 175000 135500 5336800 166900 0 432200 271800 0 24300 900 3768100 14380400 2261900 96700 1778600 1875300 386600 11500 398100 219700 215800 12200 203600 159400 213100 392100 .69 .69 CURRENT ASSETS INCLUDE NET ASSETS OF DISCONTINUED OPERATIONS OF $789,900. NET INCOME AND EARNINGS AVAILABLE FOR COMMON INCLUDE INCOME FROM DISCONTINUED OPERATIONS OF $37,300. EPS INCLUDES EARNINGS PER COMMON SHARE FROM DISCONTINUED OPERATIONS OF $0.13.
EX-27.(C) 7 EXHIBIT 27(C)
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PACIFICORP'S FORM 10-Q DATED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000075594 PACIFICORP 1,000 3-MOS DEC-31-1997 JAN-01-1997 MAR-31-1997 PER-BOOK 7832500 2165700 1560000 267600 1877200 13703000 3257000 0 818400 4075400 175000 135500 4713600 32800 0 675500 246800 0 24300 900 3623200 13703000 1041800 56100 780400 836500 205300 3900 209200 106500 121000 6100 114900 79600 215700 261000 .39 .39 CURRENT ASSETS INCLUDE NET ASSETS OF DISCONTINUED OPERATIONS OF $784,300. NET INCOME AND EARNINGS AVAILABLE FOR COMMON INCLUDE INCOME FROM DISCONTINUED OPERATIONS OF $18,300. EPS INCLUDES EARNINGS PER COMMON SHARE FROM DISCONTINUED OPERATIONS OF $0.06.
EX-27.(D) 8
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PACIFICORPS FORM 10-K ANNUAL REPORT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000075594 PACIFICORP 1,000 12-MOS DEC-31-1996 JAN-01-1996 DEC-31-1996 PER-BOOK 7825100 2176600 1661900 268700 1880000 13812300 3249500 0 782800 4032300 178000 135500 4804700 89200 0 594300 218900 0 24700 900 3733800 13812300 3803700 236500 2717300 2953800 849900 (4700) 845200 415000 504900 29800 475100 315000 218000 925700 1.62 1.62 CURRENT ASSETS INCLUDE NET ASSETS OF DISCONTINUED OPERATIONS OF $779,500. NET INCOME AND EARNINGS AVAILABLE FOR COMMON INCLUDE INCOME FROM DISCONTINUED OPERATIONS OF $74,700. EPS INCLUDES EARNINGS PER COMMON SHARE FROM DISCONTINUED OPERATIONS OF $0.25.
EX-27.(E) 9
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PACIFICORP'S FORM 10-Q DATED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000075594 PACIFICORP 1,000 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 PER-BOOK 7785500 2156000 1577400 270500 1976500 13765900 3223400 0 735200 3958600 178000 135500 4715600 142800 0 587700 206300 0 24900 1300 3815200 13765900 2752000 174200 1959200 2133400 618600 15700 634300 316400 372000 24300 347700 235500 218100 746000 1.19 1.19 CURRENT ASSETS INCLUDE NET ASSETS OF DISCONTINUED OPERATIONS OF $772,000. NET INCOME AND EARNINGS AVAILABLE FOR COMMON INCLUDE INCOME FROM DISCONTINUED OPERATIONS OF $54,100. EPS INCLUDES EARNINGS PER COMMON SHARE FROM DISCONTINUED OPERATIONS OF $0.19.
EX-27.(F) 10
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PACIFICORP'S FORM 10-Q DATED JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000075594 PACIFICORP 1,000 6-MOS DEC-31-1996 JAN-01-1996 JUN-30-1996 PER-BOOK 7606000 1964700 157330 279300 1927900 13351200 3207000 0 685000 3892000 311500 219000 4644300 30900 0 325800 266700 0 25300 700 3635000 13351200 1740100 103700 1244700 1348400 391700 9600 401300 206000 229100 18000 211100 156000 216700 488200 .73 .73 CURRENT ASSETS INCLUDE NET ASSETS OF DISCONTINUED OPERATIONS OF $764,800. NET INCOME AND EARNINGS AVAILABLE FOR COMMON INCLUDE INCOME FROM DISCONTINUED OPERATIONS OF $33,800. EPS INCLUDES EARNINGS PER COMMON SHARE FROM DISCONTINUED OPERATIONS OF $0.12.
EX-27.(G) 11
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PACIFICORP'S MARCH 31, 1996 FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000075594 PACIFICORP 1,000 3-MOS DEC-31-1996 JAN-01-1996 MAR-31-1996 PER-BOOK 7582300 1964200 1495000 284800 1917900 13244200 3186600 0 674200 3860800 311500 219000 4436500 109800 0 582300 228900 0 25400 1400 3468600 13244200 883500 64700 606600 671300 212200 9400 221600 107600 129900 9000 120900 76700 214800 327100 .42 .42 CURRENT ASSETS INCLUDE NET ASSETS OF DISCONTINUED OPERATIONS OF $760,000. NET INCOME AND EARNINGS AVAILABLE FOR COMMON INCLUDE INCOME FROM DISCONTINUED OPERATIONS OF $15,800. EPS INCLUDES EARNINGS PER COMMON SHARE FROM DISCONTINUED OPERATIONS OF $0.06.
EX-27.(H) 12
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PACIFICORP'S DECEMBER 31, 1995 ANNUAL REPORT FORM 10-K AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000075594 PACIFICORP 1,000 12-MOS DEC-31-1995 JAN-01-1995 DEC-31-1995 PER-BOOK 7580200 1874000 1504300 288700 1919500 13166700 3000700 0 632400 3633100 311500 219000 4482900 277000 0 654100 199100 0 25800 1500 3362700 13166700 2814900 191800 1924300 2116100 698800 39600 738400 336400 505000 38700 466300 307100 212800 839900 1.64 1.64 CURRENT ASSETS INCLUDE NET ASSETS OF DISCONTINUED OPERATIONS OF $757,100. NET INCOME AND EARNINGS AVAILABLE FOR COMMON INCLUDE INCOME FROM DISCONTINUED OPERATIONS OF $103,000. EPS INCLUDES EARNINGS PER COMMON SHARE FROM DISCONTINUED OPERATIONS OF $0.36.
EX-27.(L) 13 EXHIBIT 27(K)
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PACIFICORP'S DECEMBER 31, 1994 ANNUAL REPORT FORM 10-K AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000075594 PACIFICORP 1,000 12-MOS DEC-31-1994 JAN-01-1994 DEC-31-1994 PER-BOOK 7474100 240400 1144800 184200 1956300 10999800 2985500 0 474300 3459800 367400 219000 3365800 0 0 433000 78300 0 25400 1900 3049200 10999800 2840000 209000 1982400 2191400 648600 48700 697300 299800 468000 39700 428300 305200 214000 873000 1.51 1.51 CURRENT ASSETS INCLUDE NET ASSETS OF DISCONTINUED OPERATIONS OF $541,900. NET INCOME AND EARNINGS AVAILABLE FOR COMMON INCLUDE INCOME FROM DISCONTINUED OPERATIONS OF $70,500. EPS INCLUDES EARNINGS PER COMMON SHARE FROM DISCONTINUED OPERATIONS OF $0.25.
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