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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) of the
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) July 2, 1997
NEW CENTURY ENERGIES, INC.
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(Exact Name of Registrant as Specified in Charter)
Delaware
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(State or Other Jurisdiction
of Incorporation)
1-12927 84-1334327
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(Commission File No.) (IRS Employer
Identification No.)
1225 Seventeenth Street, Denver, Colorado 80202
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code(303) 571-7511
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ITEM 5. OTHER EVENTS
1. Post-Merger Financial Information
On August 1, 1997, Public Service Company of Colorado ("PSCo") and
Southwestern Public Service Company ("SPS") combined to form New Century
Energies, Inc. ("the Company"), a public utility holding company under the
Public Utility Holding Company Act of 1935. PSCo and SPS became subsidiaries of
the Company. In order to satisfy the requirements for the use of
pooling-of-interests method of accounting for the business combination,
unaudited summary financial information for the post-combination period for the
one month ended August 31, 1997 is provided herein.
At August 31, 1997, the Company's assets, capital and liabilities were as
follows (in thousands):
Assets:
Net property, plant and equipment.............. $5,402,452
Investments, at cost, and receivables.......... 343,225
Current assets................................. 719,315
Deferred charges............................... 573,399
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Total assets................................. $7,038,391
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Capital and Liabilities:
Common equity.................................. $2,106,858
Preferred stock of subsidiaries:
Not subject to mandatory redemption.......... 140,008
Subject to mandatory redemption.............. 39,248
SPS obligated mandatorily redeemable preferred
securities of subsidiary trust holding solely
subordinated debentures of SPS .............. 100,000
Long-term debt of subsidiaries................. 1,996,713
Current liabilities............................ 1,429,434
Noncurrent liabilities......................... 81,973
Deferred credits............................... 1,144,157
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Total capital and liabilities................ $7,038,391
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The Company's results of operations for the one month period ended August 31,
1997 are as follows (in thousands):
Operating revenues:
Electric..................................... $ 224,500
Gas.......................................... 35,990
Other........................................ 7,992
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268,482
Operating expenses............................. 227,691
Other income (deductions)...................... (12,331)
Interest charges and preferred dividends....... 21,780
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Net income..................................... $ 6,680
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Through PSCo, the Company has a 50% ownership interest in Yorkshire Power Group
Ltd., which owns 100% of Yorkshire Electricity Group plc ("Yorkshire
Electricity"). The Company accounts for its investment using the equity method.
Unaudited summary income statement information for the one month ended August
31, 1997 is as follows (in thousands):
Operating revenues............................. $ 147,241
Operating income............................... 15,784
Net income..................................... 104
Company's equity in the earnings of Yorkshire
Power Group Ltd .............................. 52
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2. Investment in Yorkshire Electricity
On July 2, 1997, the United Kingdom's ("UK") Labour Party proposed a budget
that included a windfall profits tax on certain privatized business entities and
changed the UK corporate income tax rate from 33% to 31%. The windfall profits
tax liability for Yorkshire Electricity is estimated to be approximately $222
million (135 million pounds sterling). The tax was enacted in late July of 1997
and will be payable in two installments with the first in December 1997 and the
second installment a year later. The Company has completed its initial analysis
of the impact of the windfall profits tax and, during the third quarter of 1997,
recognized a charge of approximately $111 million associated with the Company's
portion of the charge (approximately $1.06 per share). Additionally, the Company
recorded the positive impact of approximately $10 million related to the change
in the UK corporate income tax rate (approximately $0.09 per share). The net
impact of these tax matters is expected to reduce the Company's earnings per
common share in the third quarter of 1997 by approximately $0.97 per share.
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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.
NEW CENTURY ENERGIES, INC.
/s/ Richard C. Kelly
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Executive Vice President and CFO, Financial and
Support Services
Dated: September 26, 1997
