-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, YBQ+oudYigUFISThnKbkcE+R0hphoYhq89DusmmcXgcqEYOM1Tv36sKj3P4biTHE XUKs6+HW3XDOjzIT6eMkoA== 0000092521-95-000005.txt : 19950417 0000092521-95-000005.hdr.sgml : 19950417 ACCESSION NUMBER: 0000092521-95-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19950228 FILED AS OF DATE: 19950414 SROS: CSE SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHWESTERN PUBLIC SERVICE CO CENTRAL INDEX KEY: 0000092521 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 750575400 STATE OF INCORPORATION: NM FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-03789 FILM NUMBER: 95528801 BUSINESS ADDRESS: STREET 1: SPS TOWER STREET 2: TYLER AT SIXTH ST CITY: AMARILLO STATE: TX ZIP: 79101 BUSINESS PHONE: 8063782121 MAIL ADDRESS: STREET 1: PO BOX 1261 CITY: AMARILLO STATE: TX ZIP: 79170 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 28, 1995 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 1-3789 SOUTHWESTERN PUBLIC SERVICE COMPANY (Exact name of registrant as specified in its charter) New Mexico 75-0575400 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) Tyler at Sixth, Amarillo, Texas 79101 (Address of principal executive offices) (Zip Code) Registrant's Telephone Number, including area code (806) 378-2121 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No __ As of April 10, 1995, 40,917,908 shares of the Company's common stock were outstanding. SOUTHWESTERN PUBLIC SERVICE COMPANY FORM 10-Q For the Quarter Ended February 28, 1995 TABLE OF CONTENTS Page PART I. Financial Information (Unaudited, except Condensed Consolidated Balance Sheet at August 31, 1994) Condensed Consolidated Balance Sheets at February 28, 1995 and August 31, 1994 3, 4 Condensed Consolidated Statements of Earnings for the three, six and twelve months ended February 28, 1995 and February 28, 1994 5 Condensed Consolidated Statements of Cash Flows for the six and twelve months ended February 28, 1995 and February 28, 1994 6 Notes to Condensed Consolidated Financial Statements 7 Independent Accountants' Report 8 Management's Discussion and Analysis of Financial Condition and Results of Operations 9, 10 PART II. Other Information 11 Signatures 12 Exhibit 12. Statement of Computation of Ratio of Earnings 13 PART I. FINANCIAL INFORMATION
SOUTHWESTERN PUBLIC SERVICE COMPANY Condensed Consolidated Balance Sheets Assets February 28, August 31, 1995 1994 (Unaudited) (In Thousands) Utility plant: Utility plant in service $2,279,721 $2,280,126 Accumulated depreciation (818,264) (794,102) Net plant in service 1,461,457 1,486,024 Construction work in progress 61,453 22,590 Net utility plant 1,522,910 1,508,614 Nonutility property and investments 53,508 41,868 Current assets: Cash and temporary investments 16,261 20,782 Accounts receivable, net 55,753 69,357 Accrual for unbilled revenues 2,498 21,318 Materials and supplies, at average cost 20,669 18,238 Prepayments and other current assets 7,227 8,555 Total current assets 102,408 138,250 Deferred debits 127,761 132,503 Total assets $1,806,587 $1,821,235 Continued . . .
SOUTHWESTERN PUBLIC SERVICE COMPANY Condensed Consolidated Balance Sheets Capitalization and Liabilities February 28, August 31, 1995 1994 (Unaudited) (In Thousands) Capitalization: Common stock, $1 par value, authorized - 100,000,000 shares; issued and outstanding - 40,917,908 shares $ 40,918 $ 40,918 Premium on capital stock 306,376 306,376 Retained earnings 341,275 348,878 Total common shareholders' equity 688,569 696,172 Preferred stock - redemption not required 72,680 72,680 Long-term debt 576,259 506,487 Total capitalization 1,337,508 1,275,339 Current liabilities: Short-term debt -- 14,994 Current maturities of long-term debt 500 16,741 Accounts payable 8,321 12,301 Liability for refunds to customers 3,362 3,804 Interest accrued 8,834 8,799 Fuel and purchased power expense accrued 26,279 40,884 Taxes accrued 5,369 30,359 Dividends payable on common stock 22,505 22,505 Other current liabilities 32,506 35,092 Total current liabilities 107,676 185,479 Deferred credits: Deferred income taxes 344,233 339,456 Unamortized investment tax credits 6,178 6,303 Other 10,992 14,658 Total deferred credits 361,403 360,417 Total capitalization and liabilities $1,806,587 $1,821,235 See accompanying notes to condensed consolidated financial statements.
SOUTHWESTERN PUBLIC SERVICE COMPANY Condensed Consolidated Statements of Earnings (Unaudited) Three Months Ended Six Months Ended Twelve Months Ended 2-28-95 2-28-94 2-28-95 2-28-94 2-28-95 2-28-94 (In Thousands, Except Per Share Amounts) Operating revenues $181,848 $189,392 $369,065 $392,463 $820,050 $830,193 Operating expenses: Operation: Fuel 83,622 93,826 167,648 189,440 381,415 394,131 Purchased power 1,232 1,138 2,331 2,435 4,500 4,924 Other 25,679 25,068 51,411 50,655 108,051 106,489 Maintenance 8,056 6,933 15,946 13,605 30,617 27,673 Depreciation and amortization 15,287 15,348 30,579 31,233 59,897 61,846 Taxes other than property and income taxes 4,857 4,868 9,667 9,774 19,364 18,868 Property taxes 6,017 5,487 11,861 10,937 23,392 22,401 Income taxes (note 2) 9,313 10,355 21,749 24,158 55,448 56,991 Total operating expenses 154,063 163,023 311,192 332,237 682,684 693,323 Operating income 27,785 26,369 57,873 60,226 137,366 136,870 Other income, net: Income taxes (note 2) (731) (405) (1,217) (1,252) (496) (1,893) Other, net 1,972 1,402 3,507 4,419 2,491 7,737 Total other income, net 1,241 997 2,290 3,167 1,995 5,844 Earnings before interest charges 29,026 27,366 60,163 63,393 139,361 142,714 Interest charges 10,349 9,995 20,317 19,977 40,764 40,131 Net earnings 18,677 17,371 39,846 43,416 98,597 102,583 Dividends and premiums on cumulative preferred stock 1,220 1,220 2,439 2,439 4,878 5,261 Earnings applicable to common stock $ 17,457 $ 16,151 $ 37,407 $ 40,977 $ 93,719 $ 97,322 Earnings per common share* $ 0.43 $ 0.39 $ 0.91 $ 1.00 $ 2.29 $ 2.38 Weighted average shares outstanding 40,918 40,918 40,918 40,918 40,918 40,918 Dividends declared per common share $ 0.55 $ 0.55 $ 1.10 $ 1.10 $ 2.20 $ 2.20 ( ) Denotes deduction. *Based on weighted average shares outstanding. See accompanying notes to condensed consolidated financial statements.
SOUTHWESTERN PUBLIC SERVICE COMPANY Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended Twelve Months Ended 2-28-95 2-28-94 2-28-95 2-28-94 (In Thousands) Operating Activities: Cash received from customers $400,557 $421,091 $831,068 $828,608 Cash paid to suppliers and employees (258,663) (264,583) (530,698) (523,017) Interest paid (20,207) (19,540) (40,236) (38,618) Income taxes paid (32,882) (34,205) (45,803) (55,306) Taxes other than income taxes paid (31,145) (30,756) (41,777) (44,049) Other operating cash receipts and payments, net 2,938 194 15,497 6,540 Net cash provided by operating activities 60,598 72,201 188,051 174,158 Investing Activities: Construction expenditures (44,567) (46,877) (89,479) (87,098) Nonutility property and investments (11,640) (7,185) (17,219) (9,581) Net cash used in investing activities (56,207) (54,062) (106,698) (96,679) Financing Activities: Issuance of long-term debt 70,000 -- 70,000 -- Retirement of long-term debt (16,469) (25,580) (16,433) (26,086) Change in short-term debt (14,994) 44,500 (44,500) 44,500 Dividends paid (common and preferred) (47,449) (47,449) (94,898) (94,896) Net cash used in financing activities (8,912) (28,529) (85,831) (76,482) Net Increase (Decrease) in Cash and Temporary Investments (4,521) (10,390) (4,478) 997 Cash and Temporary Investments at Beginning of Period 20,782 31,129 20,739 19,742 Cash and Temporary Investments at End of Period $ 16,261 $ 20,739 $ 16,261 $ 20,739 Reconciliation of Net Earnings to Net Cash Provided by Operating Activities: Net earnings $ 39,846 $ 43,416 $ 98,597 $102,583 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 30,579 31,233 59,897 61,846 Deferred income taxes 5,570 3,277 13,857 7,087 Investment tax credits (125) (125) (250) (250) Allowance for equity funds used during construction (43) (571) (31) (1,616) Total 75,827 77,230 172,070 169,650 Cash flows impacted by changes in: Accounts receivable 13,604 15,362 2,322 271 Accrual for unbilled revenues 18,820 13,723 7,401 1,881 Materials and supplies (2,431) (1,858) (2,068) (333) Accounts payable (3,980) 250 (3,159) 2,952 Fuel and purchased power expense accrued (14,605) (11,300) (3,611) 1,365 Taxes accrued (24,990) (21,909) 1,531 (3,227) Liability for refunds to customers (442) 54 2,272 (2,677) Other, net (1,205) 649 11,293 4,276 Net cash provided by operating activities $ 60,598 $ 72,201 $188,051 $174,158 See accompanying notes to condensed consolidated financial statements.
SOUTHWESTERN PUBLIC SERVICE COMPANY Notes to Condensed Consolidated Financial Statements (Unaudited) (1) Interim periods. The results of operations for the interim periods are not necessarily an indication of the expected results for the fiscal year due to the seasonal nature of Southwestern Public Service Company's (the Company) business. The unaudited condensed consolidated financial statements included herein were prepared from the books of the Company in accordance with generally accepted accounting principles and reflect all adjustments (none of which are other than normal recurring adjustments) which are, in the opinion of management, necessary to provide a fair statement of the results of operations and financial position for the interim periods. Such financial statements generally conform to the presentation reflected in the Company's Annual Report to Shareholders. The current interim periods reported herein are included in the fiscal year subject to independent audit at the end of the year. (2) Income taxes. The components of income tax expense (benefit) are as follows:
Three Months Ended Six Months Ended Twelve Months Ended 2-28-95 2-28-94 2-28-95 2-28-94 2-28-95 2-28-94 (In Thousands) Taxes on operating income: Federal-current $ 5,831 $ 7,183 $15,490 $19,568 $39,800 $47,589 Federal-deferred 3,207 2,940 5,697 3,942 14,142 7,767 Investment tax credits (63) (63) (125) (125) (250) (250) State-current 338 295 687 773 1,756 1,885 9,313 10,355 21,749 24,158 55,448 56,991 Taxes on other income: Federal-current 837 381 1,332 1,917 769 2,573 Federal-deferred (118) 24 (127) (665) (285) (680) State-current 12 -- 12 -- 12 -- 731 405 1,217 1,252 496 1,893 Total income taxes $10,044 $10,760 $22,966 $25,410 $55,944 $58,884
(3) Long-Term Debt. The Company made a public offering of $70 million of First Mortgage Bonds (Bonds) on February 22, 1995. The proceeds from the Bonds were applied primarily to the retirement of short-term debt. (4) Rate and Regulatory Matters. On December 19, 1989, the FERC issued its order regarding the 1985 rate case (see Note 10 in Form 10-K for fiscal years 1985 and 1989), and on October 18, 1990, denied rehearing of that order. The Company appealed certain portions of the order that related to recognition in rates of the reduction of the federal income tax rate from 46% to 34%. The United States Court of Appeals for the District of Columbia Circuit remanded the case, directing the FERC to reconsider the Company's claim of an offsetting cost and limiting the FERC's actions. The FERC issued its Order on Remand in July, 1992, required filings were made and a hearing was completed in February 1994. In October 1994, the administrative law judge issued a favorable initial decision that, if approved by the FERC, would result in a substantial recovery by the Company. Until a final order is issued by the FERC, the Company is unable to accurately estimate the amount recoverable from these proceedings. (5) General. See note (1) of Notes to Consolidated Financial Statements in the Company's 1994 Annual Report on Form 10-K for a summary of the Company's significant accounting policies. Independent Accountants' Report Southwestern Public Service Company: We have reviewed the accompanying condensed consolidated balance sheet of Southwestern Public Service Company and subsidiaries as of February 28, 1995, and the related condensed consolidated statements of earnings for the three-month, six-month and twelve-month periods ended February 28, 1995 and 1994, and cash flows for the six-month and twelve-month periods ended February 28, 1995 and 1994. 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 making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit 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 and statement of capitalization of Southwestern Public Service Company and subsidiaries as of August 31, 1994, 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 October 7, 1994, 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 February 28, 1995, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. Deloitte & Touche LLP April 10, 1995 Dallas, Texas MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Operating Revenues and Kilowatt-Hour Sales Substantially all of the Company's operating revenues result from the sale of electric energy. The principal factors determining revenues are the amount and price per unit of energy sold. The following table describes the principal components of changes in revenues.
Increase (Decrease) From Corresponding Prior Period Three Months Six Months Twelve Months Ended Ended Ended 2-28-95 2-28-95 2-28-95 (Dollars In Thousands) Estimated effect on revenues of variations in: Kilowatt-hour (kwh) sales* $ 961 $ 1,929 $ 28,942 Rates 2,805 (401) (9,971) Fuel and purchased power cost recovery (5,063) (13,759) (13,955) Subtotal (1,297) (12,231) 5,016 Non-firm kwh sales (6,247) (11,167) (15,159) Total revenue decrease $(7,544) $(23,398) $(10,143) Increase in kwh sales* (in millions) 48 95 742 Decrease in non-firm kwh sales (in millions) (253) (423) (541) *Comprised of retail and wholesale excluding economy and interruptible (non-firm) wholesale kwh sales.
Variations in Kwh Sales. The revenue increases in the three- and six-month periods are attributable primarily to increased sales to rural electric cooperatives (RECs). These increases are principally due to sales to Cap Rock Electric Cooperative that began in February 1994. The twelve-month increase was primarily the result of dry, warm weather last summer that favorably impacted agriculture-related sales and a modest improvement in the service area's economy that contributed to all periods presented. Variations in Rates. Revenues increased in the three-month period due primarily to contractually set demand charges for certain wholesale customers. Although firm wholesale kwh sales declined, the average revenue per kwh sold increased due to such contractual demand charges. Also contributing to the revenue increase in the three-month period were demand charges for REC customers. These REC demand charges are based on the highest monthly usage of the past twelve months which, for such period, included unusually hot weather. The declines in the six- and twelve-month periods resulted primarily from the effects of the retail rate reductions in Texas and New Mexico. In Texas reduced rates totaling approximately $13 million annually were implemented October 15, 1993. In New Mexico an approximate $4 million annual reduction became effective April 1, 1994. Variations in Fuel and Purchased Power Cost Recovery. Revenue decreases are due to lower natural gas prices in all periods. Lower coal costs contributed to the decline in the six- and twelve-month periods. Variations in Non-Firm Kwh Sales. The amount of revenues arising from non- firm sales is dependent, in large part, upon the availability of hydroelectric power from the Northwest and competing generation from major plants in the West. Lower non-firm sales in all periods were due primarily to available power from these major western plants and excess hydroelectric power in the Northwest. Mild weather throughout the region also contributed to the decline for the three- and six-month periods. Operating Expenses and Non-Operating Items Fuel and purchased power expense comprised 55.1%, 54.6% and 56.5% of total operating expenses for the three, six and twelve months ended February 28, 1995, respectively. When compared to the corresponding periods last year, these expenses decreased $10.1 million or 10.6%, $21.9 million or 11.4%, and $13.1 million or 3.3%, respectively. Fuel expense (excluding purchased power expense), per net kwh generated, decreased from 1.90 to 1.77 cents, from 1.88 to 1.72 cents, and from 1.87 to 1.79 cents for the respective three-, six- and twelve-month periods because of lower spot-market prices for natural gas in all periods and lower coal costs in the six- and twelve-month periods. The low spot-market prices for natural gas are expected to be temporary in nature. Total operating expenses, excluding fuel and purchased power increased $1.4 million or 1.7%, $0.9 million or 0.6%, and $2.5 million or 0.8% for the respective three-, six- and twelve-month periods. These increases resulted primarily from scheduled power plant maintenance. Property taxes were greater in all periods due to continuing escalation of ad valorem taxes in the state of Texas related to school funding. Increased utility plant also contributed to the rise in property taxes. Management does not expect significant increases in the future related to Texas school funding. A decline in "other income" in the six-month period reflects the receipt last year of interest on a wholesale rate case settlement and decreased allowance for funds used during construction (AFUDC) of $0.5 million or 92.5% in the current period. The decreased "other income" in the twelve- month period was caused by the recognition in August 1994 of nonrecurring expenses totaling $3.4 million. These nonrecurring expenses related to engineering and design costs of a previously planned generating facility and business development costs related to a generation project in Missouri. In the twelve-month period, AFUDC decreased $1.6 million or 98.1%, which also contributed to the decline in "other income." Earnings Current operating income and earnings applicable to common stock increased for the three-month period due principally to the increased kilowatt-hour sales to RECs. The declines in earnings for the six- and twelve-month periods were caused primarily by the implementation of lower retail rates in Texas and New Mexico. Also influencing the twelve-month period was the reduced "other income." Assuming normal weather conditions, earnings for the 1995 fiscal year are expected to remain relatively level or decline somewhat due to the 1994 retail rate reductions and increased operating expenses. LIQUIDITY AND CAPITAL RESOURCES The Company's demand for capital is primarily related to the construction of utility plant and equipment. Cash construction expenditures excluding AFUDC for the three, six and twelve months ended February 28, 1995, were $22.4 million, $44.6 million and $89.5 million, respectively. The Company cannot accurately forecast the portion of capital expenditures to be provided from internally generated funds, but expects that it will be approximately 70% in fiscal 1995. The Company issued $70 million principal amount of 8.5% First Mortgage Bonds (Bonds) on February 22, 1995. The proceeds from the Bonds were applied primarily to the retirement of short-term debt. The Company has effective a shelf registration under which an aggregate of $130 million of Bonds and Cumulative Preferred Stock remains available for issue (a maximum of $40 million Preferred Stock is issuable thereunder). CHANGES IN ACCOUNTING STANDARDS In November 1992, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 112 "Employers' Accounting for Postemployment Benefits" (Statement 112). Statement 112 requires the accrual of certain postemployment benefits provided to former or inactive employees. The implementation of Statement 112 in the current period did not have a material effect on the Company's financial position or results of operations. PART II. OTHER INFORMATION Item 4. Other Information. The Company's Annual Meeting of Shareholders was held January 11, 1995. The following persons, with the exception of R. R. Hemminghaus, were reelected to the Company's Board of Directors to hold office until the Annual Meeting of Shareholders in 1998. Mr. Hemminghaus was reelected to the Company's Board of Directors to hold office until the Annual Meeting of Shareholders in 1996. Director In Favor Withheld Gene H. Bishop 33,970,305 419,280 C. Coney Burgess 34,042,675 346,910 J. Howard Mock 34,044,181 345,404 Gary W. Wolf 33,740,743 648,841 R. R. Hemminghaus 33,972,157 417,428 Item 5. Other Information. The Company's ratio of earnings to fixed charges for the twelve months ended February 28, 1995, was 4.55. The ratio of earnings to fixed charges and preferred dividend requirements combined was 3.87 for such period. Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits: 12 Statement showing computations of ratio of earnings for the twelve months ended February 28, 1995 15 Letter of Deloitte & Touche LLP regarding unaudited condensed consolidated interim financial information (b) Reports on Form 8-K: None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SOUTHWESTERN PUBLIC SERVICE COMPANY Doyle R. Bunch II Executive Vice-President Accounting and Corporate Development DATE: April 10, 1995 EX-12 2 RATIO OF EARNINGS
SOUTHWESTERN PUBLIC SERVICE COMPANY EXHIBIT 12. Statement of Computation of Ratio of Earnings Twelve Months Ended February 28, 1995 (Dollars In Thousands) Computation of Ratio of Earnings to Fixed Charges: Fixed charges, as defined: Interest on long-term debt $ 37,766 Amortization of debt premium, discount and expense 517 Other interest 4,058 Estimated interest factor of rental charges 1,184 Total fixed charges $ 43,525 Earnings as defined: Net earnings per statement of earnings $ 98,597 Fixed charges as shown 43,525 Income taxes: Federal-current 40,569 Federal-deferred 13,857 State 1,768 Investment tax credits (250) Earnings available for fixed charges $198,066 Ratio of earnings to fixed charges 4.55 Computation of Ratio of Earnings to Fixed Charges and Preferred Dividend Requirements Combined: Total fixed charges, as shown above $ 43,525 Preferred dividend requirements* 7,596 Total fixed charges and preferred dividend requirements combined $ 51,121 Earnings available for fixed charges and preferred dividend requirements combined $198,066 Ratio of earnings to fixed charges and preferred dividend requirements combined 3.87 *Preferred dividend requirements: Annual preferred dividend requirement $ 4,878 Less amount deductible for income tax purposes 84 Net requirement [A] $ 4,794 1 / (100% - effective tax rate) [B] 1.567 Effective tax rate 36.2% [A] x [B] $ 7,512 Add amount deductible for income tax purposes 84 Preferred dividend requirements $ 7,596
EX-15 3 LETTER OF DELOITTE & TOUCHE LLP EXHIBIT 15. Southwestern Public Service Company: We have made a review, in accordance with standards established by the American Institute of Certified Public Accountants, of the unaudited condensed consolidated interim financial information of Southwestern Public Service Company and subsidiaries for the periods ended February 28, 1995 and 1994, as indicated in our report dated April 10, 1995; 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 February 28, 1995, is incorporated by reference in Amendment No. 1 to Registration Statement No. 33-53171 on Form S-3 and Registration Statement Nos. 33-27452 and 33-57869 on Form S-8. We are also 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 April 10, 1995 Dallas, Texas EX-27 4 FINANCIAL DATA SCHEDULE
UT 1000 6-MOS AUG-31-1995 FEB-28-1995 PER-BOOK 1,522,910 53,508 102,408 127,761 0 1,806,587 40,918 306,479 341,275 688,672 0 72,680 576,259 0 0 0 500 0 0 0 107,073 1,806,587 369,065 21,749 289,443 311,192 57,873 2,290 60,163 20,317 39,846 2,439 37,407 45,010 19,059 60,598 0.91 0
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