-----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, MJz4o5Bh3TxTudjNO4jECXCYtMauN1X+oSMjXxRJ2/wkFDyn2GxQc41J14yK6tK1 Rey2TpGQtm3O/T1GzreFhA== 0000075594-98-000012.txt : 19980515 0000075594-98-000012.hdr.sgml : 19980515 ACCESSION NUMBER: 0000075594-98-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980514 SROS: NYSE SROS: PCX 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: 98620519 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 March 31, 1998 ______________ OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission 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 April 30, 1998, there were 297,254,422 shares of registrant's common stock outstanding. 1 PACIFICORP
Page No. ________ PART I. FINANCIAL INFORMATION Item 1. Financial Statements 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 10 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 22 Signature 23
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 March 31, ______________________ 1998 1997 ______ ______ REVENUES $2,075.7 $1,041.8 _______ _______ EXPENSES Operations and maintenance 1,599.6 574.7 Administrative and general 79.2 69.0 Depreciation and amortization 116.7 109.3 Taxes, other than income taxes 27.6 27.4 Special charges 113.1 - _______ _______ TOTAL 1,936.2 780.4 _______ _______ INCOME FROM OPERATIONS 139.5 261.4 _______ _______ INTEREST EXPENSE AND OTHER Interest expense 94.3 106.0 Interest capitalized (3.3) (2.8) Other (income)/expense - net 78.7 (0.6) _______ _______ TOTAL 169.7 102.6 _______ _______ Income (loss) from continuing operations before income taxes (30.2) 158.8 Income tax expense/(benefit) (15.1) 56.1 _______ _______ Income (loss) from continuing operations (15.1) 102.7 Discontinued Operations (less applicable income tax expense: 1997/$12.9 - 18.3 _______ _______ NET INCOME (LOSS) (15.1) 121.0 RETAINED EARNINGS BEGINNING OF PERIOD 1,106.3 782.8 Cash dividends declared Preferred stock (4.3) (5.6) Common stock per share of $0.27 (80.3) (79.8) _______ _______ RETAINED EARNINGS END OF PERIOD $1,006.6 $ 818.4 ======= ======= EARNINGS (LOSS) ON COMMON STOCK $ (19.9) $ 114.9 Average number of common shares outstanding - Basic and dilutive (Thousands) 297,059 295,393 EARNINGS (LOSS) PER COMMON SHARE - Basic and dilutive Continuing operations $ (0.07) $ 0.33 Discontinued operations - 0.06 _______ _______ TOTAL $ (0.07) $ 0.39 ======= ======= See accompanying Notes to Condensed Consolidated Financial Statements
3 PACIFICORP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions of Dollars) (Unaudited)
Three Months Ended March 31, ______________________ 1998 1997 ______ ______ CASH FLOWS FROM OPERATING ACTIVITIES Income (loss) from continuing operations $ (15.1) $ 102.7 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Depreciation and amortization 120.1 113.3 Deferred income taxes and investment tax credits - net (40.2) 4.1 Special charges 113.1 - Other 23.4 9.2 Accounts receivable and prepayments (11.4) 107.5 Materials, supplies and fuel stock (7.0) (.3) Accounts payable and accrued liabilities 41.4 (61.6) ______ ______ Net cash provided by continuing operations 224.3 274.9 Net cash used in discontinued operations (304.0) (13.9) ______ ______ NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (79.7) 261.0 ______ ______ CASH FLOWS FROM INVESTING ACTIVITIES Construction (111.0) (127.7) Investments in and advances to affiliated companies - net (21.0) (20.3) Assets acquired (6.8) (4.6) Proceeds from sales of finance assets and principal payments 47.1 26.7 Investment in shares of The Energy Group PLC (625.5) - Other 5.3 6.5 ______ ______ NET CASH USED IN INVESTING ACTIVITIES (711.9) (119.4) ______ ______ CASH FLOWS FROM FINANCING ACTIVITIES Changes in short-term debt 108.7 24.8 Proceeds from long-term debt 417.5 12.3 Proceeds from issuance of common stock 7.9 10.5 Dividends paid (84.1) (85.2) Repayments of long-term debt (369.2) (66.0) Redemptions of preferred stock - (3.0) Other 20.0 (28.8) ______ ______ NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 100.8 (135.4) ______ ______ INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (690.8) 6.2 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 741.3 8.4 ______ ______ CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 50.5 $ 14.6 ====== ====== SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the period for Interest (net of amount capitalized) $ 135.7 $ 176.9 Income taxes 367.3 (1.3) See accompanying Notes to Condensed Consolidated Financial Statements
4 PACIFICORP CONDENSED CONSOLIDATED BALANCE SHEETS (Millions of Dollars) (Unaudited) ASSETS
March 31, December 31, 1998 1997 _________ ____________ CURRENT ASSETS Cash and cash equivalents $ 50.5 $ 741.3 Accounts receivable less allowance for doubtful accounts: 1998/$17.7 and 1997/$18.8 948.5 919.5 Materials, supplies and fuel stock at average cost 205.3 194.3 Real estate investments held for sale 295.8 272.2 Shares of The Energy Group PLC 649.4 - Other 90.4 55.0 ________ ________ TOTAL CURRENT ASSETS 2,239.9 2,182.3 PROPERTY, PLANT AND EQUIPMENT Domestic Electric Operations 12,159.4 12,094.6 Australian Electric Operations 1,192.1 1,161.2 Other Operations 56.6 56.9 Accumulated depreciation and amortization (4,331.5) (4,242.4) ________ ________ TOTAL PROPERTY, PLANT AND EQUIPMENT - NET 9,076.6 9,070.3 OTHER ASSETS Investments in and advances to affiliated companies 266.4 281.6 Intangible assets - net 526.7 524.9 Regulatory assets - net 864.1 871.1 Finance note receivable 210.2 211.2 Finance assets - net 333.2 349.8 Deferred charges and other 295.0 389.0 ________ ________ TOTAL OTHER ASSETS 2,495.6 2,627.6 ________ ________ TOTAL ASSETS $13,812.1 $13,880.2 ======== ======== See accompanying Notes to Condensed Consolidated Financial Statements
5 PACIFICORP CONDENSED CONSOLIDATED BALANCE SHEETS (Millions of Dollars) (Unaudited) LIABILITIES AND SHAREHOLDERS' EQUITY
March 31, December 31, 1998 1997 _________ ____________ CURRENT LIABILITIES Long-term debt currently maturing $ 427.4 $ 365.5 Notes payable and commercial paper 297.9 189.2 Accounts payable 701.8 630.7 Taxes, interest and dividends payable 370.3 701.2 Customer deposits and other 211.0 218.9 ________ ________ TOTAL CURRENT LIABILITIES 2,008.4 2,105.5 DEFERRED CREDITS Income taxes 1,649.7 1,676.1 Investment tax credits 133.2 135.2 Other 764.4 646.2 ________ ________ TOTAL DEFERRED CREDITS 2,547.3 2,457.5 LONG-TERM DEBT 4,425.1 4,414.5 COMMITMENTS AND CONTINGENCIES (See Note 5) - - GUARANTEED PREFERRED BENEFICIAL INTERESTS IN COMPANY'S JUNIOR SUBORDINATED DEBENTURES 340.4 340.4 PREFERRED STOCK SUBJECT TO MANDATORY REDEMPTION 175.0 175.0 PREFERRED STOCK 66.4 66.4 COMMON EQUITY Common shareholders' capital shares authorized 750,000,000; shares outstanding: 1998/297,231,736 and 1997/296,908,110 3,282.3 3,274.2 Retained earnings 1,006.6 1,106.3 Accumulated other comprehensive income (39.4) (59.6) ________ ________ TOTAL COMMON EQUITY 4,249.5 4,320.9 ________ ________ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $13,812.1 $13,880.2 ======== ======== See accompanying Notes to Condensed Consolidated Financial Statements
6 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) March 31, 1998 1. FINANCIAL STATEMENTS The accompanying unaudited condensed consolidated financial statements as of March 31, 1998 and December 31, 1997 and for the periods ended March 31, 1998 and 1997, 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 March 31, 1998 and 1997 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 1997 Annual Report on Form 10-K. The condensed consolidated financial statements of the Company include the integrated domestic electric utility operations of Pacific Power and Utah Power and its wholly owned and majority owned subsidiaries. Major subsidiaries, all of which are wholly owned, are: PacifiCorp Group Holdings Company ("Holdings"), which holds directly or through its wholly owned subsidiary, PacifiCorp International Group Holdings Company, 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; PacifiCorp Power Marketing, Inc. ("PPM"), engaged in wholesale electricity trading in the eastern United States energy markets; and TPC Corporation ("TPC"), a natural gas marketing and storage company, purchased April 15, 1997. Together these businesses are referred to herein as the Companies. Significant intercompany transactions and balances have been eliminated. The Company sold its wholly owned telecommunications subsidiary, Pacific Telecom, Inc. ("PTI"), on December 1, 1997. See Note 3. The Company sold Pacific Generation Company ("PGC") on November 5, 1997, and the natural gas gathering and processing assets of TPC on December 1, 1997. In addition, on May 1, 1998, the Company sold the real estate assets held by PFS. 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. 2. BID FOR THE ENERGY GROUP During 1997 and 1998, the Company sought to acquire The Energy Group PLC ("TEG"), a diversified international energy group with operations in the United Kingdom, the United States and Australia. The Company made three tender offers for TEG. The last offer was valued at $11.1 billion, including the assumption of $4.1 billion of TEG's debt. In March 1998, Texas Utilities Company also made a tender offer at a higher price. On April 30, 1998, the Company announced that it would not increase its revised offer for TEG on the basis that a price in 7 excess of 820 pence per share would not have provided acceptable financial returns for PacifiCorp shareholders. The Company recorded an $86 million pretax charge to first quarter 1998 earnings, included in "Other (income)/expense-net," for bank commitment and facility fees, legal expenses and other related costs incurred since the Company's original bid for TEG in June of 1997. These costs had been deferred pending the outcome of the transaction. Additionally, in connection with the attempt to acquire TEG, a subsidiary of the Company purchased approximately 46 million shares of TEG at a price of 820 pence per share, or $625 million. The Company will record any gain on the TEG shares when they are sold, which is expected to occur in the second quarter of 1998. The Company has entered into forward foreign currency exchange contracts to remove the foreign currency risk associated with its investment in TEG shares. The Company incurred a pretax loss of $3 million in April 1998 in connection with closing its foreign currency option contract associated with the bid for TEG. This loss will be recorded in the second quarter of 1998. 3. DISCONTINUED OPERATIONS On December 1, 1997, Holdings completed the sale of PTI for $1.5 billion in cash plus the assumption of PTI's debt of $713 million. A portion of the proceeds from the sale of PTI were used to repay short-term debt of Holdings. The remaining proceeds were invested in short-term money market instruments and Holdings temporarily advanced excess funds to Domestic Electric Operations for retirement of short-term debt. Summarized operating results for PTI were as follows:
Three-Month Period Ended March 31, ____________ 1997 ______ (Dollars in Millions) Revenues $128.0 _____ Income before income taxes $ 31.2 Income taxes 12.9 _____ Net income $ 18.3 =====
4. ACCOUNTING FOR THE EFFECTS OF REGULATION Domestic Electric Operations prepares its financial statements in accordance with Statement of Financial Accounting Standards ("SFAS") 71, "Accounting for the Effects of Certain Types of Regulations." Under this statement, the Company may defer certain costs as regulatory assets and certain obligations as regulatory liabilities. Regulatory assets and liabilities represent probable future revenues that will be recovered from, or refunded to, customers through the ratemaking process. 8 The Emerging Issues Task Force of the Financial Accounting Standards Board (the "EITF") concluded in 1997 that SFAS 71 should be discontinued when detailed legislation or regulatory orders regarding competition are issued. Additionally, the EITF concluded that regulatory assets and liabilities applicable to businesses being deregulated should be written off unless their recovery is provided for through future regulated cash flows. Recoverability of regulatory assets is assessed at each reporting period. During 1997, the Utah Public Service Commission (the "PSC") held hearings on the proper method to be used in allocating costs among the Company's seven jurisdictions that resulted in an order issued on April 16, 1998. Under the order, differences in allocations associated with the merger of Pacific Power and Utah Power will be eliminated over five years on a straight-line basis. When fully implemented, the order will result in $125 million to $150 million of primarily generation and transmission assets being disallowed from the Company's rate base in Utah. The phase-out of the differences is to be completed by January 1, 2001 and could reduce Utah prices by approximately $50 million to $60 million per year once fully implemented. The order itself will not decrease revenues, but will be included in the overall determination of revenue requirement by the PSC and will be combined with other cost increases and decreases to determine the overall impact to customer rates. The rate case is expected to be heard by the PSC in October 1998. The Company is currently evaluating its regulatory strategy with respect to the Utah allocation order and the impact of the order, if any, in its other regulatory jurisdictions. In December 1997, the California Public Utilities Commission issued an order with respect to the Company's filing concerning transition to direct access requirements enacted in that state. The order mandated a 10% rate reduction effective January 1, 1998, which would result in a $3.5 million annual reduction in revenues. The Company has requested a rehearing of this issue. The Oregon Public Utility Commission and the Company have agreed to an Alternate Form of Regulation ("AFOR") for the Company's Oregon distribution business. The AFOR allows for index-related price increases in 1998, 1999 and 2000, with an annual cap of 2% of distribution revenues in any one year and an overall cap of 5% over the three-year period. The estimated revenue increase in 1998 is approximately $6.9 million. The AFOR also includes incentives to invest in renewable resources and incentives to maintain current service quality levels or penalties for failure to maintain the service quality levels. The Oregon AFOR agreement and the Utah allocation order are examples of the changing regulatory environment in which the Company operates. The Company continues to evaluate the accounting impact of all changes in regulation in the context of its regulatory strategy. Changes in regulatory structure may significantly affect the Company's future financial condition and results of operations. 9 5. CONTINGENT LIABILITIES 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. 6. COMPREHENSIVE INCOME Effective January 1, 1998, the Company adopted SFAS No. 130, "Reporting Comprehensive Income." This statement requires items previously reported as a component of common equity be more prominently reported in a separate financial statement as a component of comprehensive income. The components of comprehensive income are as follows:
Millions of dollars/For three months ended March 31 1998 1997 ______________________________________________________________________ Net income (loss) $(15.1) $121.0 Other comprehensive income Foreign currency translation adjustment, net of taxes 1998/$9.1 and 1997/$(2.1) 13.0 (3.3) Unrealized gain on shares of The Energy Group PLC, net of taxes of $4.6 7.2 - _____ _____ Total comprehensive income $ 5.1 $117.7 ===== =====
7. NEW ACCOUNTING STANDARDS In June 1997, the Financial Accounting Standards Board (the "FASB") issued SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information." SFAS No. 131 requires that companies disclose segment data based on how management makes decisions about allocating resources to segments and measuring performance. This standard is effective for fiscal years beginning after December 15, 1997. Adoption of this standard may result in additional financial disclosure but will not have an effect on the Company's financial position or results of operations. In February 1998, the FASB issued SFAS No. 132, "Employers' Disclosures About Pensions and Other Postretirement Benefits." This statement, which is effective for fiscal years beginning after December 15, 1997, revises employers' disclosures about pension and other postretirement benefit plans. Adoption of this standard will not change the measurement of the liability nor recognition of expense of these plans. 10 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 1997 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 March 31, 1998 and 1997 ___________________________________________________________________
% 1998 1997 Change Change ____ ____ ______ ______ (Dollars in Millions) Earnings contribution (loss) on common stock (1) Domestic Electric Operations $ 5.6 $ 74.6 $ (69.0) (92) Australian Electric Operations 14.1 21.0 (6.9) (33) Unregulated Energy Trading (0.5) (1.0) 0.5 50 Other Operations (39.1) 2.0 (41.1) * _____ _____ ______ Continuing Operations (19.9) 96.6 (116.5) (121) Discontinued Operations (2) - 18.3 (18.3) (100) _____ _____ ______ Total $(19.9) $114.9 $(134.8) (117) ===== ===== ====== Earnings (loss) per common share - Basic and dilutive Continuing Operations $ (0.7) $ 0.33 $ (0.40) (121) Discontinued Operations (2) - 0.06 (0.06) (100) _____ _____ ______ Total $ (0.7) $ 0.39 $ (0.46) (118) ===== ===== ====== *Not a meaningful number. (1) Earnings contribution (loss) 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) Represents the discontinued operations of PTI.
The Company recorded a loss on common stock of $20 million, or $0.07 per share, in the first quarter of 1998, a decline of $135 million, or $0.46 per share, from the same period in 1997. The 1998 results included an after-tax charge of $70 million, or $0.24 per share, associated with the Company's work force reduction in the United States and an after-tax charge of $54 million, or $0.18 per share, associated with the Company's terminated bid for TEG. The first quarter 1997 results included $18 million, or $0.06 per share, from the Company's telecommunications operations that were sold in December of 1997. 11 Domestic Electric Operations earnings contribution was $6 million in the first quarter of 1998. Excluding the $70 million charge relating to the work force reduction, the earnings contribution would have been $76 million as compared to $75 million in the first quarter of 1997. Higher commercial and industrial energy sales contributed to the increase in adjusted earnings. The combined rate of growth in nonfuel operations and maintenance and general and administrative costs was reduced to one percent in the quarter. Earnings from Australian Electric Operations were $14 million in the first quarter of 1998, compared to $21 million in the same quarter last year. Earnings in the quarter were reduced by $2 million as the result of unfavorable fluctuations in the currency exchange rate, which partially offset the benefit of higher sales to commercial and industrial customers in the quarter. Earnings in the first quarter of 1997 were benefited by adjustments totaling $7 million associated with the renegotiation of certain industrial customer contracts. The unregulated energy trading segment reported losses of $0.5 million in the quarter as compared to a $1 million loss in the first quarter of 1997. Other Operations reported a net loss of $39 million in 1998, primarily due to the $54 million after-tax charge for costs associated with the Company's terminated bid for TEG. These costs, dating back to June of 1997, had been deferred pending the outcome of the proposed transaction. 12 RESULTS OF OPERATIONS Domestic Electric Operations ____________________________ Comparison of the three-month periods ended March 31, 1998 and 1997 ___________________________________________________________________
% 1998 1997 Change Change ____ ____ ______ ______ (Dollars in Millions) Revenues Residential $ 231.8 $ 233.1 $ (1.3) (1) Commercial 161.4 150.2 11.2 7 Industrial 162.7 155.0 7.7 5 Other 7.6 7.8 (0.2) (3) _______ _______ _______ Retail sales 563.5 546.1 17.4 3 Wholesale sales 499.1 229.7 269.4 117 Other 14.4 17.4 (3.0) (17) _______ _______ _______ Total 1,077.0 793.2 283.8 36 Operating expenses 981.2 596.5 384.7 64 _______ _______ _______ Income from operations 95.8 196.7 (100.9) (51) Interest expense 80.0 74.1 5.9 8 Minority interest and other (2.7) (7.3) 4.6 63 Income taxes 8.1 49.2 (41.1) (84) _______ _______ _______ Net income 10.4 80.7 (70.3) (87) Preferred dividend requirement 4.8 6.1 (1.3) (21) _______ _______ _______ Earnings contribution $ 5.6 $ 74.6 $ (69.0) (92) ======= ======= ======= Energy sales (millions of kWh) Residential 3,751 3,827 (76) (2) Commercial 2,992 2,784 208 7 Industrial 4,891 4,745 146 3 Other 159 169 (10) (6) ______ ______ ______ Retail sales 11,793 11,525 268 2 Wholesale sales 22,443 10,240 12,203 119 ______ ______ ______ Total 34,236 21,765 12,471 57 ====== ====== ====== Residential average usage (kWh) 3,042 3,187 (145) (5) Total customers (end of period) 1,445,900 1,410,212 35,688 3
Revenues Domestic Electric Operations revenues increased $284 million, or 36%. This increase was primarily attributable to a $269 million increase in wholesale revenues. Wholesale volumes continued to expand with the active markets. The $269 million increase in revenues was driven by energy volumes that more than doubled in 1998 to a total of 22.4 million mWh. Higher short-term and spot market wholesale energy volumes increased revenues by $239 million. Related energy prices averaged $20 per mWh in the quarter, a 25% increase over the prior year. The higher prices for short-term and spot market sales added $21 million to revenues in the quarter. Higher long-term volumes and prices added $9 million to revenues. 13 Residential revenues and energy sales volumes were down $1 million and 2%, respectively. Growth in the average number of residential customers of 3% added $6 million to revenues. This increase was more than offset by volume decreases due to warmer weather and other usage changes, which lowered revenues by $6 million, and lower Utah rates that decreased revenues by $1 million. Commercial revenues were up $11 million, or 7%. Energy sales volumes increased 7% over the prior year. Increased usage by existing commercial customers added $8 million to revenues and a 2% increase in commercial customers added $5 million. Warmer weather in 1998 decreased revenues by $2 million and lower Utah rates decreased revenues by $1 million. Industrial revenues increased $8 million, or 5%. A 3% increase in energy sales volumes drove a $4 million increase in revenues. Revenues in 1997 were reduced by billing adjustments of $6 million for certain industrial customers. See Note 4 regarding regulation of Domestic Electric Operations' utility properties. Operating Expenses Total operating expenses increased $385 million, or 64%. This increase was primarily attributable to increased purchased power expense to serve the expanding wholesale market and the $113 million pretax cost for the work force reduction. Purchased power expense increased $255 million, to $459 million. The higher expense was due to a 10.7 million mWh increase in short-term firm and spot market energy purchases, more than double the amount of purchases in the same period of 1997, which increased purchased power expense $233 million. Short-term firm and spot market purchase prices averaged $20 per mWh in the quarter versus $14 per mWh in 1997, a 36% increase. The increase in purchase prices added $13 million to costs. Higher volumes and prices relating to long-term firm purchased power contracts added $4 million and $3 million, respectively, to purchased power costs. Fuel expense was up $6 million, or 5%, to $123 million as a result of a 12% or 1.4 million mWh increase in thermal generation. The average cost per mWh of thermal generation decreased 6% to $9.73. Hydroelectric generation decreased 7% compared to the first quarter of last year due to less favorable water conditions. Net power costs in the quarter were $7.12 per mWh, compared to $7.98 per mWh in the first quarter of 1997, an 11% decrease. Net power cost represents the net cost to serve the Company's 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 decrease in net power cost was attributable to sales through the wholesale markets of 1.1 million mWh of the Company's generation that was in excess of its retail load requirements. Depreciation and amortization expense increased $9 million, or 10%, to $98 million. Higher depreciation rates that were implemented in the fourth quarter of 1997 added $5 million to expense and increased plant in service added $4 million. 14 Other operations and maintenance expense decreased $3 million, or 3%, to $111 million. Steam plant maintenance expense decreased $2 million due to overhaul timing differences. Distribution plant maintenance expense decreased $1 million due to recognition of storm damage expense in 1997. Administrative and general expenses increased $5 million, or 7%, to $78 million primarily due to timing of employee related costs, partially offset by lower outside service expense. Other Income and Expense Interest expense was up $6 million to $80 million as a result of higher debt balances. The higher debt was due to capital contributions made to Holdings relating to the acquisition of TPC in April 1997. Income tax expense declined $41 million due to the decline in pretax income. 15 Australian Electric Operations ______________________________ Comparison of the three-month periods ended March 31, 1998 and 1997 ___________________________________________________________________
Change Due Change % Change to Currency Due to Due to 1998 1997 Translation Operations Operations ____ ____ ___________ __________ __________ (Dollars in Millions) Powercor Earnings Contribution Revenues Powercor area $116.5 $140.9 $(19.5) $ (4.9) (3) Outside Powercor area Victoria 20.9 23.0 (3.5) 1.4 6 New South Wales 20.2 1.8 (3.4) 21.8 * _____ _____ _____ _____ 157.6 165.7 (26.4) 18.3 11 Other 4.9 17.7 (0.8) (12.0) (68) _____ _____ _____ _____ Total 162.5 183.4 (27.2) 6.3 3 Operating expenses 121.7 128.5 (20.4) 13.6 11 _____ _____ _____ _____ Income from operations 40.8 54.9 (6.8) (7.3) (13) Interest expense 15.8 18.3 (2.6) 0.1 1 Equity in losses of Hazelwood 3.0 3.0 (0.5) 0.5 17 Other (income)/expense (0.4) - 0.1 (0.5) * Income taxes 8.3 12.6 (1.4) (2.9) (23) _____ _____ _____ _____ Earnings contribution $ 14.1 $ 21.0 $ (2.4) $ (4.5) (21) ===== ===== ===== ===== Powercor energy sales (millions of kWh) Powercor area 1,797 1,861 (64) (3) Outside Powercor area Victoria 600 500 100 20 New South Wales 575 59 516 * _____ _____ _____ Total 2,972 2,420 552 23 ===== ===== ===== *Not a meaningful number.
Currency Exchange Rates The currency exchange rate for converting Australian dollars to U. S. dollars was 0.67 in the first quarter of 1998 as compared to 0.78 in 1997, a 14% decrease in the quarter. The effect of this change in exchange rates lowered revenues by $27 million and costs by $25 million in the first quarter of 1998. The following discussion excludes the effects of the lower currency exchange rate in 1998. Revenues Powercor's revenues increased $6 million, or 3%. Excluding $11 million of revenue in 1997 relating to Tariff H contracts, revenues would have increased $17 million, or 10%, due to a 552 million kWh, or 23%, increase in energy sales, which added $21 million to revenues. Declining prices reduced revenues by $3 million. 16 Energy volumes sold to contestable customers outside Powercor's franchise area were up 616 million kWh and added $22 million to revenues due to new customers in New South Wales and $4 million due to new customers in Victoria. Lower prices for sales to contestable customers reduced revenues by $3 million in 1998. Inside Powercor's franchise area, revenues decreased $5 million due to a 64 million kWh decrease in energy sold. Other revenues decreased $12 million, to $5 million, largely as a result of the $11 million of revenues associated with renegotiation of Tariff H contracts in the 1997 period. Operating Expenses Purchased power expense decreased $1 million, or 2%, to $58 million. Lower average prices reduced power costs by $17 million. Prices for purchased power averaged $23 per mWh in the first quarter of 1998 compared to $28 per mWh in the first quarter of 1997 due to competition. The decrease was offset in large part by a 23% increase in purchased power volumes that added $16 million to costs. Other operating expenses increased $15 million, or 37%, to $48 million. Increased sales to contestable customers outside the Powercor service area resulted in higher network fees of $16 million. This increase was offset in part by higher network revenues of $3 million from customers inside Powercor's franchise area serviced by other energy suppliers. Other Income and Expense The Company recorded losses in both 1998 and 1997 of $3 million on its equity investment in the Hazelwood power station. 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 below 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. Income tax expense was down $3 million, or 23%, due to a decrease in taxable income. 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. 17 Unregulated Energy Trading __________________________ Comparison of the three-month periods ended March 31, 1998 and 1997 ___________________________________________________________________
% 1998 1997 Change Change ____ ____ ______ ______ Revenues Natural gas $318.1 $ - $318.1 * Electricity 497.5 38.9 458.6 * _____ _____ _____ Total 815.6 38.9 776.7 * _____ _____ _____ Cost of Sales Natural gas 315.2 - 315.2 * Purchased electric power 495.2 37.9 457.3 * _____ _____ _____ Total 810.4 37.9 772.5 * Gross Margin 5.2 1.0 4.2 * Depreciation and amortization 1.5 - 1.5 * Administrative and other 4.4 2.5 1.9 76 _____ _____ _____ Income (loss) from Operations Natural gas (0.9) - (0.9) * Electricity 0.2 (1.5) 1.7 113 _____ _____ _____ Total (0.7) (1.5) 0.8 53 _____ _____ _____ Interest Expense 0.3 0.1 0.2 * Other income (0.8) - (0.8) * Income tax expense/(benefit) 0.3 (0.6) 0.9 150 _____ _____ _____ Net Income (Loss) Natural gas (0.6) - (0.6) * Electricity 0.1 (1.0) 1.1 * _____ _____ _____ Total $ (0.5) $ (1.0) 0.5 50 ===== ===== ===== Energy Sales Natural gas (MMcf) 134,000 - 134,000 * Electricity (millions of kWh) 19,886 1,461 18,425 * *Not a meaningful number.
PPM recorded electricity trading revenues of $498 million, a related gross margin of $2 million and break even results in the first quarter of 1998 compared to revenues of $39 million, a gross margin of $1 million and a net loss of $1 million in 1997. TPC, acquired in April 1997, recorded natural gas trading revenues of $318 million, a gross margin of $3 million and a net loss of $0.6 million in 1998. 18 Other Operations ________________ Comparison of the three-month periods ended March 31, 1998 and 1997 ___________________________________________________________________
% 1998 1997 Change Change ____ ____ ______ ______ (Dollars in Millions) Earnings contribution (loss) PFS $ 6.6 $ 5.1 $ 1.5 29 PGC - 1.4 (1.4) (100) Holdings and other (45.7) (4.5) (41.2) * _____ ____ _____ Total $(39.1) $ 2.0 $(41.1) * ===== ==== ===== *Not a meaningful number.
Other operations reported a loss of $39 million in the quarter compared to earnings of $2 million in the same period a year ago. The loss was the result of an $86 million pretax charge for costs associated with the Company's terminated bid for TEG. These costs, dating back to June of 1997, had been deferred pending the outcome of the proposed transaction. Results from other operations for the quarter were benefited by approximately $23 million in increased interest income and reduced interest expense as the result of cash received from asset sales in 1997. The after-tax cash proceeds from these sales totaled approximately $1.5 billion. On March 2, 1998, a subsidiary of Holdings purchased approximately 46 million TEG shares at a price of 820 pence per share, or $625 million, utilizing a portion of the cash proceeds from asset sales. On May 1, 1998, the Company received approximately $70 million in cash proceeds in the initial closing for the sale of its affordable housing properties. The completion of this sale is expected to occur in the near future upon receipt of various third party consents. This sale transaction will not have a material impact on the Company's 1998 earnings. 19 FINANCIAL CONDITION - For the three months ended March 31, 1998: OPERATING ACTIVITIES Net cash flows provided by continuing operations were $224 million during the period compared to $275 million in the first three months of 1997. The $51 million decrease in operating cash flows was primarily attributable to income tax payments of $65 million relating to gains on sales of subsidiaries in the fourth quarter of 1997 and expenditures relating to the terminated bid for TEG, partially offset by cash flow improvements at Domestic Electric Operations. Net cash used in discontinued operations represents payment of income taxes associated with a $671 million pretax gain recorded in December 1997 on the sale of PTI. INVESTING ACTIVITIES Capital spending totaled $139 million in 1998 compared with $153 million in 1997. Construction expenditures decreased to $111 million in 1998 from $128 million in 1997 primarily as a result of lower capital expenditures for Domestic Electric Operations and Australian Electric Operations. Bid for The Energy Group During 1997 and 1998, the Company sought to acquire The Energy Group PLC ("TEG"), a diversified international energy group with operations in the United Kingdom, the United States and Australia. The Company made three tender offers for TEG. The last offer was valued at $11.1 billion, including the assumption of $4.1 billion of TEG's debt. In February 1998, Texas Utilities Company also made a tender offer at a higher price. On April 30, 1998, the Company announced that it would not increase its revised offer for TEG on the basis that a price in excess of 820 pence per share would not have provided acceptable financial returns for PacifiCorp shareholders. The Company recorded an $86 million pretax charge to first quarter 1998 earnings for bank commitment and facility fees, legal expenses and other related costs incurred since the Company's original bid for TEG in June of 1997. These costs had been deferred pending the outcome of the transaction. Additionally, in connection with its attempt to acquire TEG, a subsidiary of the Company purchased approximately 46 million shares of TEG at a price of 820 pence per share, or $625 million. The Company will record any gain on the TEG shares when they are sold, which is expected to occur in the second quarter of 1998. The Company has entered into forward foreign currency exchange contracts to remove the foreign currency risk associated with its investment in TEG shares. The Company incurred a pretax loss of $3 million in April 1998 in connection with closing its foreign currency option contract associated with the bid for TEG. This loss will be recorded in the second quarter of 1998. 20 CAPITALIZATION At March 31, 1998, the Company had approximately $412 million of commercial paper and uncommitted bank borrowings outstanding at a weighted average rate of 5.7%. These borrowings are supported by $700 million of revolving credit agreements. At March 31, 1998, the consolidated subsidiaries had access to $900 million of short-term funds through committed bank revolving credit agreements. Subsidiaries had $500 million outstanding under bank revolving credit facilities. At March 31, 1998, the Companies had $618 million 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. In January 1998, Australian Electric Operations issued $400 million of 6.15% Notes due 2008. At the same time, in order to mitigate foreign currency exchange risk, Australian Electric Operations entered into a series of currency exchange agreements in the same amount and for the same duration as the underlying United States denominated notes. The proceeds of the Notes were used to repay Australian bank bill borrowings. On May 12, 1998, the Company issued $200 million of 6.375% secured medium-term notes due May 15, 2008 in the form of First Mortgage and Collateral Trust Bonds. Proceeds were used to repay short-term debt. ______________________________________________________________________________ The condensed consolidated financial statements as of March 31, 1998 and December 31, 1997 and for the three-month periods ended March 31, 1998 and 1997 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. 21 Deloitte & Touche LLP _____________________ _____________________________________________________ Suite 3900 Telephone:(503)222-1341 111 S.W. 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 March 31, 1998, and the related condensed consolidated statements of income and retained earnings and cash flows for the three-month periods ended March 31, 1998 and 1997. 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, 1997, 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 February 3, 1998 (March 2, 1998 as to Note 2), 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, 1997 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. DELOITTE & TOUCHE LLP May 5, 1998 22 PART II. OTHER INFORMATION 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 March 31, 1998 (filed electronically only). (b) Reports on Form 8-K. On Form 8-K, dated April 21, 1998, under Item 5. "Other Events," the Company filed news releases reporting the receipt of a Utah allocation order and the Company's termination of its bid for The Energy Group. The Company also filed the Utah Allocation Order and a news release relating to first quarter 1998 operating results. 23 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 May 14, 1998 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 March 31, 1998 (filed electronically only).
EX-12.A 2 EXHIBIT (12)(a) PACIFICORP STATEMENTS OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Three Months ______________________________________________ Ended 1993 1994 1995 1996 1997 March 31, 1998 ____ ____ ____ ____ ____ ______________ (In Millions of Dollars) Fixed Charges, as defined:* Interest expense..................... $ 333.5 $ 302.0 $ 336.4 $ 415.0 $ 439.8 $ 94.4 Estimated interest portion of rentals charged to expense......... 4.8 5.6 4.5 4.1 6.6 2.3 Preferred dividends of wholly owned subsidiary............ - - - 15.3 33.1 14.3 _______ _______ _______ _______ _______ _____ Total fixed charges.............. $ 338.3 $ 307.6 $ 340.9 $ 434.4 $ 479.5 $111.0 ======= ======= ======= ======= ======= ===== Earnings, as defined:* Income (loss) from continuing operations......................... $ 371.8 $ 397.5 $ 402.0 $ 430.2 $ 225.4 $(30.3) Add (deduct): Provision for income taxes......... 163.6 209.0 191.8 236.5 109.5 (15.1) Minority interest.................. 2.7 1.3 1.4 1.8 1.9 (0.4) Undistributed income of less than 50% owned affiliates........ (16.2) (14.7) (15.0) (18.2) (11.1) 3.9 Fixed charges as above............. 338.3 307.6 340.9 434.4 479.5 111.0 _______ _______ _______ _______ _______ _____ Total earnings................... $ 860.2 $ 900.7 $ 921.1 $1,084.7 $ 805.2 $ 69.1 ======= ======= ======= ======= ======= ===== Ratio of Earnings to Fixed Charges..... 2.5x 2.9x 2.7x 2.5x 1.7x 0.6x ==== ==== ==== ==== ==== ==== *"Fixed charges" represent consolidated interest charges, an estimated amount representing the interest factor in rents and preferred dividend requirements of majority-owned subsidiaries. "Earnings" represent the aggregate of (a) income (loss) from continuing operations, (b) taxes based on income (loss) 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
Three Months ______________________________________________ Ended 1993 1994 1995 1996 1997 March 31, 1998 ____ ____ ____ ____ ____ ______________ (In Millions of Dollars) Fixed Charges, as defined:* Interest expense..................... $ 333.5 $ 302.0 $ 336.4 $ 415.0 $ 439.8 $ 94.4 Estimated interest portion of rentals charged to expense...... 4.8 5.6 4.5 4.1 6.6 2.3 Preferred dividends of wholly owned subsidiary............ - - - 15.3 33.1 14.3 _______ _______ _______ _______ _______ _____ Total fixed charges.............. $ 338.3 $ 307.6 $ 340.9 $ 434.4 $ 479.5 $111.0 Preferred Stock Dividends, as defined:*....................... 56.8 60.8 57.0 46.2 33.9 9.6 _______ _______ _______ _______ _______ _____ Total fixed charges and preferred dividends............ $ 395.1 $ 368.4 $ 397.9 $ 480.6 $ 513.4 $120.6 ======= ======= ======= ======= ======= ===== Earnings, as defined:* Income (loss) from continuing operations......................... $ 371.8 $ 397.5 $ 402.0 $ 430.2 $ 225.4 $(30.3) Add (deduct): Provision for income taxes......... 163.6 209.0 191.8 236.5 109.5 (15.1) Minority interest.................. 2.7 1.3 1.4 1.8 1.9 (0.4) Undistributed income of less than 50% owned affiliates............. (16.2) (14.7) (15.0) (18.2) (11.1) 3.9 Fixed charges as above............. 338.3 307.6 340.9 434.4 479.5 111.0 _______ _______ _______ _______ _______ _____ Total earnings................... $ 860.2 $ 900.7 $ 921.1 $1,084.7 $ 805.2 $ 69.1 ======= ======= ======= ======= ======= ===== Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends.. 2.2x 2.4x 2.3x 2.3x 1.6x 0.6x ==== ==== ==== ==== ==== ==== *"Fixed charges" represent consolidated interest charges, an estimated amount representing the interest factor in rents and preferred dividend requirements of majority-owned subsidiaries. "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 (loss) from continuing operations, (b) taxes based on income (loss) 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 May 13, 1998 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 March 31, 1998 and 1997, as indicated in our report dated May 5, 1998; 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 March 31, 1998, is incorporated by reference in Registration Statement Nos. 33-51277, 33-54169, 33-57043, 33-58461, and 333-10885, and 333-45851, 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 Portland, Oregon EX-27 5 EXHIBIT 27
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PACIFICORP'S FORM 10-K DATED DECEMBER 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000075594 PACIFICORP 1,000 3-MOS DEC-31-1998 JAN-01-1998 MAR-31-1998 PER-BOOK 7814100 2055500 2239900 295000 1407600 13812100 3242900 0 1006600 4249500 175000 66400 4401700 7100 0 290800 426500 0 23400 900 4170800 13812100 2075700 (15100) 1936200 1921100 154600 (75400) 79200 94300 (15100) 4800 (19900) 80300 219400 (100200) (0.07) (0.07)
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