UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-13-60
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1998 and ending December 31, 1998
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
NEW CENTURY SERVICES, INC.
(Exact Name of Reporting Company)
A Subsidiary SERVICE COMPANY
("Mutual" or "Subsidiary")
Date of Incorporation April 2, 1997
State or Sovereign Power under which Incorporated or Organized: Delaware
Location of Principal Executive Offices of Reporting Company: Denver, Colorado
Name, title, and address of officer to whom correspondence concerning this
report should be addressed:
Teresa S. Madden Controller 1225 17th Street Denver, CO 80202-5533
(Name) (Title) (Address)
Name of Principal Holding Company Whose Subsidiaries are served by
Reporting Company:
NEW CENTURY ENERGIES, INC.
<PAGE>
Page 1
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing. --Rule 94 provides that on or before the first day of May in
each calendar year, each mutual service company and each subsidiary service
company as to which the Commission shall have made a favorable finding pursuant
to Rule 88, and every service company whose application for approval or
declaration pursuant to Rule 88 is pending shall file with the Commission an
annual report on Form U-13-60 and in accordance with the Instructions for that
form.
2. Number of Copies. --Each annual report shall be filed in duplicate. The
company should prepare and retain at least one extra copy for itself in case
correspondence with reference to the report becomes necessary.
3. Period Covered by Report. --The first report filed by any company shall cover
the period from the date the Uniform System of Accounts was required to be made
effective as to that company under Rules 82 and 93 to the end of that calendar
year. Subsequent reports should cover a calendar year.
4. Report Format. --Reports shall be submitted on the forms prepared by the
Commission. If the space provided on any sheet of such form is inadequate,
additional sheets may be inserted of the same size as a sheet of the form or
folded to each size.
5. Money Amounts Displayed. --All money amounts required to be shown in
financial statements may be expressed in whole dollars, in thousands of dollars
or in hundred thousands of dollars, as appropriate and subject to provisions of
Regulation S-X (210.3-01(b)).
6. Deficits Displayed. --Deficits and other like entries shall be indicated by
the use of either brackets or a parenthesis with corresponding reference in
footnotes. (Regulation S-X,210.3-01(c))
7. Major Amendments or Corrections. --Any company desiring to amend or correct a
major omission or error in a report after it has been filed with the Commission
shall submit an amended report including only those pages, schedules, and
entries that are to be amended or corrected. A cover letter shall be submitted
requesting the Commission to incorporate the amended report changes and shall be
signed by a duly authorized officer of the company.
8. Definitions. --Definitions contained in Instruction 01-8 to the Uniform
System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended February 2,
1979 shall be applicable to words or terms used specifically within this Form
U-13-60.
9. Organization Chart. --The service company shall submit with each annual
report a copy of its current organization chart.
10. Methods of Allocation. --The service company shall submit with each annual
report a listing of the currently effective methods of allocation being used by
the service company and on file with the Securities and Exchange Commission
pursuant to the Public Utility Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed. --The service
company shall submit with each annual report a copy of the annual statement
supplied to each associate company in support of the amount of compensation for
use of capital billed during the calendar year.
<PAGE>
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LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or Page
Description of Schedules and Accounts Account Number Number
- ------------------------------------- -------------- ------
Comparative Balance Sheets Schedule I 3-4
Service Company Property Schedule II 5
Accumulated Provision for Depreciation and Amortization
of Service Company Property Schedule III 6
Investments Schedule IV 7
Accounts Receivable from Associate Companies Schedule V 8
Fuel Stock Expenses Undistributed Schedule VI 9
Stores Expense Undistributed Schedule VII 9
Miscellaneous Current and Accrued Assets Schedule VIII 10
Miscellaneous Deferred Debits Schedule IX 10
Research, Development, or Demonstration Expenditures Schedule X 10
Proprietary Capital Schedule XI 11
Long-Term Debt Schedule XII 12
Current and Accrued Liabilities Schedule XIII 13
Notes to Financial Statements Schedule XIV 14-14d
Comparative Income Statement Schedule XV 15
Analysis of Billing - Associate Companies Account 457 16
Analysis of Billing - Nonassociate Companies Account 458 17
Analysis of Charges for Service - Associate and
Nonassociate Companies Schedule XVI 18
Schedule of Expense by Department or Service Function Schedule XVII 19-19c
Departmental Analysis of Salaries Account 920 20
Outside Services Employed Account 923 21-21a
Employee Pensions and Benefits Account 926 22
General Advertising Expenses Account 930.1 23
<PAGE>
Page 2a
Schedule or Page
Description of Schedules and Accounts Account Number Number
- ------------------------------------- -------------- ------
Miscellaneous General Expenses Account 930.2 23
Rents Account 931 23
Taxes Other Than Income Taxes Account 408 24
Donations Account 426.1 25-25a
Other Deductions Account 426.5 26
Notes to Statements of Income Schedule XVIII 27
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Organization Chart 28
Methods of Allocation 29-29c
Annual Statement of Compensation for Use of Capital Billed 30
Signature Clause 31
<PAGE>
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ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
SCHEDULE I--COMPARATIVE BALANCE SHEET
(thousands of dollars)
Give balance sheet of the Company as of December 31 of the current and prior
year.
DECEMBER 31,
ACCOUNT ASSETS AND OTHER DEBITS 1998 1997
SERVICE COMPANY PROPERTY
101 Service company property (Schedule I) $ - $ -
107 Construction work in progress (Schedule II) (118) 9
------ -------
Total Property (118) 9
------ -------
108 Less accumulated provision for
depreciation and amortization of
service company property (Schedule III) - -
----- ------
Net Service Company Property (118) 9
----- ------
INVESTMENTS
123 Investments in associate companies (Schedule IV) - -
124 Other Investments (Schedule IV) - -
----- ------
Total Investments - -
----- ------
CURRENT AND ACCRUED ASSETS
131 Cash 436 3,868
134 Special deposits - -
135 Working funds 15 1
136 Temporary cash investments (Schedule IV) - 6,725
141 Notes receivable - -
143 Accounts receivable 939 866
144 Accumulated provision for uncollectable
accounts - -
146 Accounts receivable from associate
companies (Schedule V) 31,698 145,046
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies - -
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 20,911 9,875
174 Miscellaneous current and accrued
assets (Schedule VIII) - -
------ -----
Total Current and Accrued Assets 53,999 166,381
------ -------
DEFERRED DEBITS
181 Unamortized debt expense - -
184 Clearing accounts 347 3,104
186 Miscellaneous deferred debits (Schedule IX) 1,019 500
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes - -
----- -----
Total Deferred Debits 1,366 3,604
----- -----
TOTAL ASSETS AND OTHER DEBITS $ 55,247 $169,994
======== ========
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ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
SCHEDULE I--COMPARATIVE BALANCE SHEET
(thousands of dollars)
DECEMBER 31,
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL 1998 1997
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) $ - $ -
211 Miscellaneous paid-in-capital (Schedule XI) 1 1
215 Appropriated retained earnings (Schedule XI) - -
216 Unappropriated retained earnings (Schedule XI) - -
------- -------
Total Proprietary Capital 1 1
------- -------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) - -
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
------ -------
Total Long-Term Debt - -
------ -------
CURRENT AND ACCRUED LIABILITIES
231 Notes payable - -
232 Accounts payable 10,583 1,035
233 Notes payable to associate companies (Schedule XIII) 25,150 45,950
234 Accounts payable to associate
companies (Schedule XIII) 4,579 113,537
236 Taxes accrued (598) (1,907)
237 Interest accrued - -
238 Dividends declared - -
241 Tax collections payable (753) (4,350)
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 14,174 9,788
------ -----
Total Current and Accrued Liabilities 53,135 164,053
------ -------
DEFERRED CREDITS
253 Other deferred credits 806 4,052
255 Accumulated deferred investment tax credits - -
----- -----
Total Deferred Credits 806 4,052
----- -----
282 ACCUMULATED DEFERRED INCOME TAXES 1,305 1,888
----- -----
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $55,247 $169,994
======= ========
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ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
SCHEDULE II--SERVICE COMPANY PROPERTY
(thousands of dollars)
<TABLE>
<CAPTION>
BALANCE AT RETIREMENTS OTHER BALANCE
BEGINNING OR CHANGES AT CLOSE
DESCRIPTION OF YEAR ADDITIONS SALES (1),(4) OF YEAR
---------- ---------- ---------- -------- --------
SERVICE COMPANY PROPERTY
<S> <C> <C> <C> <C> <C>
Account
301 Organization $ - $ - $ - $ - $ -
303 Miscellaneous intangible plant - - - - -
304 Land and land rights - - - - -
305 Structures and improvements - - - - -
306 Leasehold improvements - - - - -
307 Equipment (2) - - - - -
308 Office furniture and equipment - - - - -
309 Automobiles, other vehicles and - - - - -
related garage equipment - - - - -
310 Aircraft and airport equipment - - - - -
311 Other service company property (3) - - - - -
------ ------- ------- ------ ------
SUB-TOTAL - - - - -
107 Construction work in progress (4) 9 - - (127) (118)
------ ------- ------ ------- ------
TOTAL $ 9 $ - $ - $ (127) $ (118)
====== ======= ====== ======= ======
</TABLE>
(1) Provide an explanation of those changes considered material: None
(2) Subaccounts are required for each class of equipment owned. The service
company shall provide a listing by subaccount of equipment additions during
the year and the balance at the close of the year: None
(3) Describe other service company property: None
(4) Describe construction work in progress: Represents balance in the overhead
allocation pool for the Continuing Property Record (CPR) function. This
balance will be transferred to NCE's operating companies in 1999.
<PAGE>
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ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
SCHEDULE III--ACCUMULATED PROVISION FOR DEPRECIATION
AND AMORTIZATION OF SERVICE COMPANY PROPERTY
(thousands of dollars)
<TABLE>
<CAPTION>
BALANCE AT ADDITIONS RETIREMENTS OTHER BALANCE
BEGINNING TO ACCOUNT OR CHANGES AT CLOSE
DESCRIPTION OF YEAR 403 SALES (1) OF YEAR
---------- ---------- ----------- ------- ---------
<S> <C> <C> <C> <C> <C>
Account
301 Organization $ - $ - $ - $ - $ -
303 Miscellaneous intangible plant - - - - -
304 Land and land rights - - - - -
305 Structures and improvements - - - - -
306 Leasehold improvements - - - - -
307 Equipment - - - - -
308 Office furniture and equipment - - - - -
309 Automobiles, other vehicles and
related garage equipment - - - - -
310 Aircraft and airport equipment - - - - -
311 Other service company property - - - - -
----- ------ ----- ---- -----
TOTAL $ - $ - $ - $ - $ -
===== ====== ===== ==== =====
</TABLE>
(1) Provide an explanation of those changes considered material: None
<PAGE>
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ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
SCHEDULE IV--INVESTMENTS
(thousands of dollars)
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124, "Other Investments", state each investment separately, with
description, including the name of issuing company, number of shares or
principal amount, etc.
Under Account 136, "Temporary Cash Investments", list each investment
separately.
BALANCE AT BALANCE AT
BEGINNING CLOSE
ACCOUNT ASSETS AND OTHER DEBITS OF YEAR OF YEAR
------------ ------------
123 Investment in associate companies $ - $ -
124 Other investments - -
136 Temporary cash investments
Federated Investors (money market) 6,725 -
---------- --------
TOTAL $ 6,725 $ -
---------- --------
TOTAL $ 6,725 $ -
========== ========
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ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
SCHEDULE V--ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
(thousands of dollars)
INSTRUCTIONS: Complete the following schedule listing accounts receivable from
each associate company. Where the service company has provided accommodation or
convenience payments for associate companies, a separate listing of total
payments for each associate company by subaccount should be provided.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
---------- -----------
Account 146 -- Accounts Receivable from Associate Companies
New Century Energies, Inc. $ 1,297 $ 362
NC Enterprises, Inc. - 14
New Century Cadence, Inc. 214 (8)
Cheyenne Light, Fuel and Power Company 259 328
1480 Welton, Inc. 20 87
Public Service Company of Colorado 106,517 17,227
PSR Investments, Inc. 19 43
e prime, inc. 576 1,373
New Century International, Inc. 222 103
Natural Fuels Corporation 62 172
Fuel Resources Development Co., a dissolved corporation (4) -
PS Colorado Credit Corporation 42 60
WestGas InterState, Inc. 5 2
Utility Engineering Corporation 737 572
Quixx Corporation 370 1,780
Quixx Power Services, Inc. - 44
Southwestern Public Service Company 34,710 8,804
The Planergy Group, Inc. - 359
New Century Centrus, Inc. - 376
-------- --------
TOTAL $ 145,046 $ 31,698
========= ========
TOTAL
PAYMENTS
------------
Analysis of Convenience or Accommodation Payments:
Public Service Company of Colorado $ 5,893
Southwestern Public Service Company 1,710
Cheyenne Light, Fuel and Power Company 58
1480 Welton, Inc. 25
Quixx Corporation 14
------------
TOTAL PAYMENTS $ 7,700
============
The majority of the convenience payments relate to taxes, insurance and employee
benefits.
<PAGE>
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ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
SCHEDULE VI--FUEL STOCK EXPENSES UNDISTRIBUTED
(thousands of dollars)
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
fuel stock expenses during the year and indicate amount attributable to each
associate company. Under the section headed "Summary" list below give an overall
report of the fuel functions performed by the service company.
DESCRIPTION LABOR EXPENSE TOTAL
----- ------- -------
Account 152 -- Fuel Stock Expenses
Undistributed $ - $ - $ -
------- ------- -------
TOTAL $ - $ - $ -
======= ======= =======
Summary: None
SCHEDULE VII--STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
stores expenses during the year and indicate amount attributable to each
associate company.
DESCRIPTION LABOR EXPENSE TOTAL
------ ------- ------
Account 163 -- Stores Expenses Undistributed $ - $ - $ -
------- ------- -------
TOTAL $ - $ - $ -
======= ======= =======
<PAGE>
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ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
SCHEDULE VIII--MISCELLANEOUS CURRENT AND ACCRUED ASSETS
(thousands of dollars)
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped, showing the number of items in each group.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
------------ ------------
Account 174 -- Miscellaneous Current and Accrued $ - $ -
Assets ------------ ------------
TOTAL $ - $ -
============ ============
SCHEDULE IX-- MISCALLANEOUS DEFERRED DEBITS
(THOUSANDS OF DOLLARS)
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped by class showing the number of items in each class.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
ACCOUNT 186 -- MISCELLANEOUS DEFERRED DEBITS ------------ ------------
Deposit for purchase of aircraft $ 500 $ 500
Prepaid pension - 519
------------ ------------
TOTAL $ 500 $ 1,019
============ ============
SCHEDULE X--RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
(thousands of dollars)
INSTRUCTIONS: Provide a description of each material research, development, or
demonstration project which incurred costs by the service corporation during the
year.
BALANCE AT BALANCE AT
BEGINNING CLOSE
OF YEAR OF YEAR
------------ ------------
ACCOUNT 188 -- RESEARCH, DEVELOPMENT, OR
DEMONSTRATION
Expenditures $ - $ -
------------ ------------
TOTAL $ - $ -
============ ============
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ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
SCHEDULE XI--PROPRIETARY CAPITAL
(thousands of dollars, except per share data)
PAR OR OUTSTANDING AT
NUMBER OF STATED CLOSE OF PERIOD
ACCOUNT SHARES VALUE NUMBER TOTAL
NUMBER CLASS OF STOCK AUTHORIZED PER SHARE OF SHARES AMOUNT
201 COMMON STOCK ISSUED 1,000 $0.01 1,000 $ -
INSTRUCTIONS: Classify amounts in each account with a brief explanation,
disclosing the general nature of transactions which give rise to the amounts.
DESCRIPTION AMOUNT
Account 211 -- Miscellaneous Paid-In Capital $ 1
Account 215 -- Appropriated Retained Earnings -
----------
TOTAL $ 1
==========
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year,
distinguishing between compensation for the use of capital owned or net loss
remaining from servicing nonassociates per the General Instructions of the
Uniform System of Accounts. For dividends paid during the year in cash or
otherwise, provide rate percentage, amount of dividend, date declared and date
paid.
BALANCE AT BALANCE
BEGINNING NET INCOME DIVIDENDS AT CLOSE
DESCRIPTION OF YEAR OR (LOSS) PAID OF YEAR
Account 216 -- Unappropriated
Retained Earnings $ - $ - $ - $ -
====== ====== ====== ======
TOTAL $ - $ - $ - $ -
====== ====== ====== ======
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ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
SCHEDULE XII--LONG-TERM DEBT
(thousands of dollars)
INSTRUCTIONS: Advances from associate companies should be reported separately
for advances on notes and advances on open accounts. Names of associate
companies from which advances were received shall be shown under the class and
series of obligation column. For Account 224 - Other long-term debt provide the
name of creditor company or organization, terms of the obligation, date of
maturity, interest rate, and the amount authorized and outstanding.
<TABLE>
<CAPTION>
TERM OF OBLIGATION BALANCE AT BALANCE
CLASS & SERIES DATE OF INTEREST AMOUNT BEGINNING DEDUCTIONS AT CLOSE
NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS (1) OF YEAR
- -------------------- -------------------- -------- -------- ---------- --------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Account 223 - Advances From Associate Companies: $ - $ - $ - $ - $ -
Account 224 - Other Long-Term Debt: $ - $ - $ - $ - $ -
------ ----- ------ ------ ------
TOTAL $ - $ - $ - $ - $ -
====== ===== ====== ====== ======
(1) Give an explanation of deductions: None
</TABLE>
<PAGE>
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ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
SCHEDULE XIII--CURRENT AND ACCRUED LIABILITIES
(thousands of dollars)
INSTRUCTIONS: Provide balance of notes and accounts payable to each associate
company. Give description and amount of miscellaneous current and accrued
liabilities. Items less than $10,000 may be grouped, showing the number of items
in each group.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
------- -------
Account 233 -- Notes Payable to Associate Companies
Notes Payable - New Century Energies, Inc. $ 45,950 $ 25,150
--------- ---------
TOTAL $ 45,950 $ 25,150
========= =========
Account 234 -- Accounts Payable to Associate Companies
Accounts Payable - New Century Energies, Inc. $ 126 $ (302)
Accounts Payable - New Century Cadence, Inc. (7) -
Accounts Payable - Cheyenne Light, Fuel and
Power Company - (5)
Accounts Payable - Public Service Company
of Colorado 96,027 4,527
Accounts Payable - Quixx Corporation - 1
Accounts Payable - Southwestern Public
Service Company 17,391 358
------ ------
TOTAL $ 113,537 $ 4,579
========== =========
Account 242 -- Miscellaneous Current and Accrued Liabilities
Accrued Vacation Liability $ 5,551 $ 6,729
Supplemental Executive Retirement Plan 652 852
Payroll 1,061 1,931
Current Liability - Outstanding Accounts
Payable checks (Norwest Bank at Grand
Junction) 2,524 4,662
------- --------
TOTAL $ 9,788 $ 14,174
========= =========
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Page 14
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
Schedule XIV - NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes regarding the
financial statements or any account thereof. Furnish particulars as to any
significant contingent assets or liabilities existing at the end of the year.
Notes relating to financial statements shown elsewhere in this report may be
indicated here by reference.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Effective August 1, 1997, following the receipt of all required State and
Federal regulatory approvals, Public Service Company of Colorado ("PSCo") and
Southwestern Public Service Company ("SPS") merged in a tax-free "merger of
equals" transaction (the "Merger") and became wholly-owned subsidiaries of New
Century Energies, Inc. ("NCE"). New Century Services ("NCS" or the "Company"), a
wholly-owned subsidiary of NCE, was incorporated in 1997 under the State of
Delaware. NCS is the service company for the NCE system and provides a variety
of administrative, management, engineering, construction, environmental and
support services. NCS provides its services to the NCE system generally at cost,
pursuant to service agreements approved by the Securities and Exchange
Commission (`SEC") under the Public Utility Holding Company Act of 1935
("PUHCA").
The combining companies completed an employee downsizing in April 1997.
Effective May 1, 1997, with SEC approval, certain employees of PSCo and SPS were
transferred to NCS. Between May 1, 1997 and July 31, 1997, the Company was owned
50/50 by PSCo and SPS. Beginning on August 1, 1997, the Company was owned 100%
by NCE. The prior year information included in the Form U-13-60 Annual Report
covers the period from inception (May 1, 1997) through December 31, 1997.
Regulation
NCS is subject to regulation by the SEC under the PUHCA. NCS' accounting
policies conform to generally accepted accounting principles. NCS maintains its
accounts in accordance with PUHCA, as administered by the SEC.
Management Estimates
The preparation of financial statements, in conformity with generally
accepted accounting principles, requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Fair Value Disclosure
The carrying amount of financial instruments approximates fair value.
Statement of Financial Accounting Standards No. 107, "Disclosures about Fair
Value of Financial Instruments", defines the fair value of a financial
instrument as the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale.
The fair value estimates presented are based on pertinent information
available to management as of December 31, 1998 and 1997. These fair value
estimates have not been comprehensively revalued for purposes of
<PAGE>
Page 14a
these financial statements since that date, and current estimates of fair value
may differ significantly from the amounts presented herein.
Income Taxes
The Company's operations are included in the consolidated Federal income
tax return of NCE. The allocation of income tax consequences to the Company,
including alternative minimum tax, is calculated under a parent company policy
which provides that benefits or liabilities created by the Company, computed on
a separate return basis, will be allocated to (and paid to or by) the Company to
the extent the benefits are usable or additional liabilities are incurred in
NCE's consolidated tax returns. Deferred taxes are provided on temporary
differences between the financial accounting and tax bases of assets and
liabilities using the tax rates which are in effect at the balance sheet date
(see Note 6).
Stock-based Compensation
The Company uses the intrinsic value based method of accounting for its
stock-based compensation plan.
2. COMMON STOCK
NCS is authorized to issue 1,000 shares of Common Stock at a par value of
one cent ($0.01) per share. During 1998 and 1997, all shares of common stock
were issued and held by NCE.
3. SHORT-TERM BORROWING ARRANGEMENTS
NCE has a $200 million credit facility that expires August 11, 2002, with
several banks. The Board of Directors has authorized the Company to borrow
directly from NCE or through the credit facility with an NCE guaranty.
Currently, all short term borrowings are through NCE. At December 31, 1998, none
of the credit facility was outstanding and intercompany borrowings totaled
approximately $25 million at a weighted average interest rate of 5.76%. At
December 31, 1997, approximately $46 million outstanding under the credit
facility at a weighted average interest rate of 6.12%.
4. COMMITMENTS AND CONTINGENCIES
Leasing Programs
The Company made payments for leases of various facilities used in the
normal course of business. The majority of the operating leases are under a
leasing program that has initial noncancelable terms of one year, while the
remaining leases have various terms. These leases may be renewed or replaced. No
material restrictions exist in these leasing agreements concerning dividends,
additional debt, or further leasing. Rental expense for the year ending December
31, 1998 and the eight months ended December 31, 1997 was approximately $6.0
million and $2.6 million, respectively.
Estimated future minimum lease payments at December 31, 1998 are as
follows (in thousands of dollars):
1999 $7,678
2000 7,459
2001 3,043
2002 226
2003 180
All years thereafter 900
<PAGE>
Page 14b
Service Agreements
In 1995, PSCo outsourced approximately 370 positions as part of a ten-year
service agreement with IBM Global Services to manage most of PSCo's information
technology systems and network infrastructure. Effective May 1, 1997, the
agreement was assigned to NCS and amended to include SPS' information technology
systems and network infrastructure. The service agreement terminates in February
2005.
For the year ended December 31, 1998 and for the eight months ended
December 31, 1997, NCS payments to IBM Global Services were approximately $78
and $50 million, respectively. At December 31, 1998, the total estimated
remaining commitment under this agreement is approximately $288 million, with
estimated annual payments ranging from $49 million to $60 million.
Contracts
NCS entered into a purchase agreement in September 1997 with Bombardier
Aerospace to acquire a Learjet 45. The purchase price is anticipated to be
approximately $8.4 million. A $0.5 million deposit was paid in September 1997,
an additional $0.5 million will be paid in September 1999 and the balance is due
upon delivery, which is anticipated on or about September 2000.
Year 2000 Costs
The Company currently expects to incur costs of approximately $15 million
to modify its computer software, hardware and other automated systems used in
operations enabling proper data processing relating to the year 2000 ("Y2K") and
beyond. The Company expects these computer modifications to be implemented by
September 30, 1999. The majority of all Y2K costs will be allocated to or
incurred by NCE's operating utilities. A significant portion of the costs
incurred to address the Company's Y2K issues will represent the redeployment of
existing information technology resources
If correction or replacement of non-compliant systems are not completed on
a timely basis, the Y2K issues may have a material impact on the operations of
NCE and its subsidiaries. Management, however, does not anticipate these
activities will have a material adverse impact on the financial position or
results of operations for NCS.
5. EMPLOYEE BENEFITS
The Financial Accounting Standards Board issued Statement of Financial
Accounting Standards No.132, "Employers' Disclosures about Pensions & Other
Postretirement Benefits", effective for 1998. This standard does not change the
measurement or recognition of costs for pension or other postretirement plans
but rather standardizes disclosures.
Pensions
The Company participates in tax qualified noncontributory defined benefit
pension plans which cover substantially all NCE employees. At December 31, 1998,
there were 5,839 NCE employees (including 1,171 Company employees) participating
in these plans. NCE, as the plan sponsor, has overall responsibility for
directly allocating such costs of each individual plan to each of the
participating employers. This allocation was determined by the plans' actuary
based on benefit obligations for active participants.
Plan assets are held in a master trust. Plan assets are stated at fair
value and are comprised primarily of corporate debt and equity securities, a
real estate fund and government securities held either directly or in commingled
funds. The Company's funding policy is to contribute annually, at a minimum, the
amount necessary to satisfy the Internal Revenue Service funding standards.
Because of the overfunded status of the plans, no contributions were made by the
Company or other participating employers during 1998 and 1997.
<PAGE>
Page 14c
Summary information of the actuarially computed benefit obligation, plan
assets, funded status and prepaid pension asset for the NCE Plans at December
31, 1998 and 1997, is presented in the following table (in thousands).
1998 1997
---- ----
Benefit obligation.......................... $ 1,013,791 $ 991,973
Fair value of plan assets................... 1,238,921 1,131,270
----------- ----------
Funded status: Plan assets exceed
benefit obligations...................... $ 255,130 $ 139,297
=========== ==========
NCE prepaid pension asset................... $ 40,348 $ 16,475
=========== ==========
The assumed discount rates used in 1998 and 1997 were 6.75% and 7.0%,
respectively. The rate of expected long-term increase in compensation level was
4% in both 1998 and 1997.
The Company's net periodic pension cost (credit) for the year ended
December 31, 1998 and for the eight months ended December 31, 1997 and the
significant assumptions used by the Company's actuary in the determination of
these amounts are presented in the following table (in thousand of dollars):
1998 1997
---- ----
Company's net periodic pension cost (credit) $(519) $(1,099)
===== =======
Significant assumptions:
Discount rate............................. 7.0% 7.75%
Expected long-term increase in compensation
level ................................. 4.0% 4.25%
Expected weighted average long-term rate
of return on assets ................... 9.5% 9.75%
Defined Contribution Plans
The Company participates in defined contribution plans, which cover
substantially all NCE employees. Total costs of these plans incurred by NCS for
the year ended December 31, 1998 and for the eight months ended December 31,
1997 totaled $4.2 million and $1.4 million, respectively.
Postretirement Benefits Other Than Pensions
The Company provides certain postretirement health care and life insurance
benefits for substantially all employees who reach retirement age while working
for the Company. The Company participates in various health and welfare plans
administered by NCE. NCE, as the plan sponsor, will continue to reflect the
costs of these plans in accordance with the full accrual accounting adopted in
1993 and directly allocate such costs to each of the participating employers.
Prior to 1993, NCE recorded the cost of these benefits for these plans on a
pay-as-you-go basis. NCE is amortizing the transition obligations for these
plans over a period of 20 years. Plan assets are stated at fair value and are
comprised primarily of corporate debt and equity securities, a real estate fund,
government securities and other short-term investments held either directly or
in commingled funds.
Summary information of the actuarially computed benefit obligation, plan
assets, funded status and accrued benefit cost for the NCE plans at December 31,
1998 and 1997, is presented in the following table (in thousands):
1998 1997
--------- --------
Benefit obligations......................... $ 397,195 $376,685
Fair value of plan assets................... 146,228 112,324
--------- --------
Funded status: Plan benefit obligations
exceed assets............................ $ 250,967 $264,361
========= ========
NCE accrued benefit cost.................... $ 61,732 $ 62,716
========= ========
<PAGE>
Page 14d
The assumed discount rates used in 1998 and 1997 were 6.75% and 7.0%,
respectively. The rate of expected long-term increase in compensation level was
4% in both 1998 and 1997.
The Company's net periodic postretirement benefit cost for the year ended
December 31, 1998 and for the eight months ended December 31, 1997 and the
significant assumptions used by the Company's actuary in the determination of
these amounts are presented in the following table (in thousand of dollars):
1998 1997
---- ----
Company's net periodic postretirement benefit cost... $ 4,581 $ 4,256
Significant assumptions:
Discount rate...................................... 7.0% 7.75%
Expected long-term increase in compensation level.. 4.0% 4.0%
Expected weighted average long-term rate of return
on assets ....................................... 9.5% 9.75%
The Company funded an amount equal to the net periodic postretirement
benefit cost in 1998 and 1997. The assumed health care cost trend rate in 1998
is 8.5%, decreasing to 4.5% in 2007 in 0.5% annual increments. A 1% increase in
the assumed health care cost trend rate will increase the Company's total
accumulated benefit obligation by approximately $669,000 and the service and
interest cost components of net periodic postretirement benefit costs by
approximately $73,000.
6. INCOME TAXES
The provision for income taxes for the periods ending December 31, 1998
and 1997 consist of the following (in thousands of dollars):
Current income taxes: 1998 1997
------- -------
Federal $ 620 $(1,575)
State 61 (237)
------ -----
Total current income taxes 681 (1,812)
------ ------
Deferred income taxes:
Federal (507) 1,728
State (77) 160
------- -------
Total deferred income taxes (584) 1,888
------ -----
Total provision for income taxes $ 97 $ 76
====== =======
A reconciliation of the statutory U.S. income tax rate and the effective
tax rates for the periods ending December 31, 1998 and 1997 follows (in
thousands of dollars, except percentages):
1998 1997
---- ----
Tax computed at U.S. statutory rate on
pre-tax accounting income $ 34 35% $ 27 35%
Increase (decrease) in tax from:
State income taxes, net of federal
income taxes benefit (10) (10) 6 8.5
Non-deductible business meals 88 90 43 56.5
Other (15) (15) - -
---- --- ---- ----
Total income taxes $ 97 100% $ 76 100%
===== === ==== ===
<PAGE>
Page 15
ANNUAL REPORT OF NEW CENTURY SERVICES, INC
For the Year Ended December 31, 1998
SCHEDULE XV--COMPARATIVE INCOME STATEMENT
(thousands of dollars)
CURRENT PRIOR
ACCOUNT DESCRIPTION YEAR YEAR
- ------- ----------- ---- ----
INCOME
457 Services rendered to associate companies $ 314,838 $ 150,077
458 Services rendered to nonassociate companies - -
421 Miscellaneous income and loss 223 107
--------- ----------
TOTAL INCOME 315,061 150,184
--------- ----------
EXPENSES
920 Salaries and wages 60,511 39,845
921 Office supplies and expenses 199,393 82,816
922 Administrative expenses transferred - credit - -
923 Outside services employed 8,065 7,893
924 Property insurance - -
925 Injuries and damages 797 334
926 Employee pensions and benefits 29,303 13,300
928 Regulatory commission expenses - -
930.1 General advertising expenses - 146
930.2 Miscellaneous general expenses 1,067 16
931 Rents 6,023 2,620
932 Maintenance of structures and equipment - -
403 Depreciation and amortization expense - -
408 Taxes other than income taxes 5,073 2,241
409 Income taxes 681 (1,812)
410 Provision for deferred income taxes 5,875 4,623
411 Provision for deferred income taxes - credit (6,459) (2,735)
411.5 Investment tax credit - -
426.1 Donations 2,198 327
426.5 Other deductions 90 90
427 Interest on long-term debt - -
430 Interest on debt to associate companies 2,442 480
431 Other interest expense 2 -
--------- ----------
TOTAL EXPENSE 315,061 150,184
--------- ----------
NET INCOME OR (LOSS) $ - $ -
========= ==========
<PAGE>
Page 16
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
ANALYSIS OF BILLING
ASSOCIATE COMPANIES--ACCOUNT 457
(thousands of dollars)
<TABLE>
<CAPTION>
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
- ------------------------------ -------- --------- ------------- ------
457-1 457-2 457-3
<S> <C> <C> <C> <C>
Public Service Company of Colorado $ 165,731 $ 73,247 $ 1,519 $ 240,497
Southwestern Public Service Company 34,675 26,578 614 61,867
Cheyenne Light, Fuel and Power Company 1,391 1,772 31 3,194
1480 Welton, Inc. 61 466 4 531
e prime, inc. 240 380 27 647
PS Colorado Credit Corporation 89 274 10 373
PSR Investments, Inc. 81 144 11 236
WestGas InterState, Inc. 30 4 - 34
Quixx Corporation 932 405 21 1,358
Utility Engineering Corporation 606 490 23 1,119
New Century Energies, Inc. 374 2,171 163 2,708
Natural Fuels Corporation 29 73 4 106
New Century International, Inc. 631 55 9 695
New Century Cadence, Inc. 45 3 - 48
NC Enterprises, Inc. 318 - - 318
Public Service Company of Co. (Hayden) 3 46 - 49
The Planergy Group, Inc. 174 41 6 221
New Century Centrus, Inc. 837 - - 837
==== ====== ====== =====
TOTAL $ 206,247 $ 106,149 $ 2,442 $ 314,838
========= ========= ======= =========
</TABLE>
<PAGE>
Page 17
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES--ACCOUNT 458
(thousands of dollars)
INSTRUCTIONS: Provide a brief description of the services rendered to each
nonassociate company:
<TABLE>
<CAPTION>
NAME OF DIRECT INDIRECT COMPENSATION EXCESS TOTAL
NONASSOCIATE COSTS COSTS FOR USE TOTAL OR AMOUNT
COMPANY CHARGED CHARGED OF CAPITAL COST DEFICIENCY BILLED
- ---------------- ----------- ----------- ------------- ----------- ---------- --------
458-1 458-2 458-3 458-4
<S> <C>
None
</TABLE>
<PAGE>
Page 18
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
SCHEDULE XVI-ANALYSIS OF CHARGES FOR SERVICE-ASSOCIATE AND
NONASSOCIATE COMPANIES
(thousands of dollars)
INSTRUCTIONS: Total cost of service will equal for associate and nonassociate
companies the total amount billed under their separate analysis of billing
schedules.
<TABLE>
<CAPTION>
ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY CHARGES
DIRECT INDIRECT
DESCRIPTION OF ITEMS COST COST TOTAL (None)
------- ------- --------
<S> <C> <C> <C> <C>
920 Salaries and wages $ 51,353 $ 9,158 $ 60,511
921 Office supplies and expenses 115,788 83,605 199,393
922 Administrative expense - - -
923 Outside services employed 1,222 6,843 8,065
924 Property insurance - - -
925 Injuries and damages 23 774 797
926 Employee pensions and benefits 1,077 28,226 29,303
928 Regulatory commission expense - - -
930.1 General advertising expenses - - -
930.2 Miscellaneous general expense 15 1,052 1,067
931 Rents 122 5,901 6,023
932 Maintenance of structures and equipment - - -
403 Depreciation and amortization expense - - -
408 Taxes other than income taxes 194 4,879 5,073
409 Income taxes 551 130 681
410 Provision for deferred income taxes 5,875 - 5,875
411 Provision for deferred income tax credit (6,459) - (6,459)
411.5 Investment tax credit - - -
426.1 Donations 85 2,113 2,198
426.5 Other donations 21 69 90
427 Interest on long-term debt - - -
431 Other interest expense - 2 2
---------------------------
TOTAL EXPENSES 169,867 142,752 312,619
---------------------------
Compensation for use of equity capital - - -
430 Interest on debt to associate companies - 2,442 2,442
===========================
TOTAL COST OF SERVICE $169,867 $145,194 $315,061
============================
</TABLE>
<PAGE>
Page 19
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
SCHEDULE XVII--SCHEDULE OF EXPENSE
BY DEPARTMENT OR SERVICE FUNCTION
(thousands of dollars)
INSTRUCTIONS: Indicate each department or service function.
(See Instruction 01-3 General Structure of
Accounting System: Uniform System of Accounts).
<TABLE>
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------
CEO
TOTAL EXECUTIVE DIRECT CORPORATE GENERAL
ACCOUNT DESCRIPTION OF ITEMS AMOUNT OVERHEAD SERVICES REPORTS COMMUNICATIONS COUNSEL
- ------- -------------------- ------ -------- -------- ------- -------------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and wages $ 60,511 $ - $ 4,176 $ 1,398 $ 1,244 $ 1,103
921 Office supplies and expenses 199,393 - 5,819 2,508 5,245 617
922 Administrative expense - - - - - -
923 Outside services employed 8,065 - 2,283 91 4 114
924 Property insurance - - - - - -
925 Injuries and damages 797 - - - - -
926 Employee pensions and benefits 29,303 - 399 206 142 94
928 Regulatory commission expense - - - - - -
930.1 General advertising expenses - - - - - -
930.2 Miscellaneous general expense 1,067 - 9 - - -
931 Rents 6,023 - - - - -
932 Maintenance of structures and equipment - - - - - -
403 Depreciation and amortization expense - - - - - -
408 Taxes other than income taxes 5,073 - - - - -
409 Income taxes 681 - - - - -
410 Provision for deferred income taxes 5,875 - - - - -
411 Provision for deferred income taxes-credit (6,459) - - - - -
411.5 Investment tax credit - - - - - -
426.1 Donations 2,198 - - - 2,114 -
426.5 Other donations 90 - 16 - 18 -
427 Interest on long-term debt - - - - - -
430 Interest on debt to associate companies 2,442 - - - - -
431 Other interest expense 2 - - - - -
==================================================================
TOTAL EXPENSES $315,061 $ - $ 12,702 $ 4,203 $ 8,767 $ 1,928
==================================================================
</TABLE>
<PAGE>
Page 19a
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Period Ended December 31, 1998
SCHEDULE XVII--SCHEDULE OF EXPENSE
BY DEPARTMENT OR SERVICE FUNCTION
(thousands of dollars)
INSTRUCTIONS: Indicate each department or service function.
(See Instruction 01-3 General Structure of
Accounting System: Uniform System of Accounts).
<TABLE>
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
-----------------------------------------------------------
CORP CFO
PLANNING COMMODITY PURCHASED ENERGY/ DIRECT
ACCOUNT DESCRIPTION OF ITEMS & DEVELOP SERVICES POWER ENVIRONMENTAL REPORTS
- ------- -------------------- --------- -------- ----- ------------- -------
<S> <C> <C> <C> <C> <C> <C>
920 Salaries and wages $ 2,110 $ 4,440 $ 1,634 $ 3,092 $ 6,207
921 Office supplies and expenses 4,769 3,121 1,670 2,881 65,538
922 Administrative expense - - - - -
923 Outside services employed 829 166 - 372 747
924 Property insurance - - - - -
925 Injuries and damages - - - - 1
926 Employee pensions and benefits 236 533 135 320 1,209
928 Regulatory commission expense - - - - -
930.1 General advertising expenses - - - - -
930.2 Miscellaneous general expense - - - - 111
931 Rents - - - - 1,215
932 Maintenance of structures and equipment - - - - -
403 Depreciation and amortization expense - - - - -
408 Taxes other than income taxes - - - - 97
409 Income taxes - - - - 681
410 Provision for deferred income taxes - - - - 5,875
411 Provision for deferred income taxes-credit - - - - (6,459)
411.5 Investment tax credit - - - - -
426.1 Donations - - - - -
426.5 Other donations - - - - 11
427 Interest on long-term debt - - - - -
430 Interest on debt to associate companies - - - - -
431 Other interest expense - - - - -
==========================================================
TOTAL EXPENSES $ 7,944 $ 8,260 $ 3,439 $ 6,665 $ 75,233
==========================================================
</TABLE>
<PAGE>
Page 19b
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
SCHEDULE XVII--SCHEDULE OF EXPENSE
BY DEPARTMENT OR SERVICE FUNCTION
(thousands of dollars)
INSTRUCTIONS: Indicate each department or service function.
(See Instruction 01-3 General Structure of
Accounting System: Uniform System of Accounts).
<TABLE>
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
---------------------------------------------------------------
HUMAN REGULATORY CONTROLLERS DESIGN
ACCOUNT DESCRIPTION OF ITEMS RESOURCES ADMINISTRATION ORGANIZATION SALES ENGINEERING
- ------- -------------------- --------- -------------- ------------ ----- -----------
<S> <C> <C> <C> <C> <C> <C>
920 Salaries and wages $ 4,211 $ 1,937 $ 2,813 $ 5,664 $ 7,277
921 Office supplies and expenses 5,868 1,378 56,211 3,987 2,806
922 Administrative expense - - - - -
923 Outside services employed 876 3 846 1 10
924 Property insurance - - - - -
925 Injuries and damages - - 520 - -
926 Employee pensions and benefits 11,727 258 10,257 707 1,095
928 Regulatory commission expense - - - - -
930.1 General advertising expenses - - - - -
930.2 Miscellaneous general expense - - 947 - -
931 Rents - - 4,808 - -
932 Maintenance of structures and equipment - - - - -
403 Depreciation and amortization expense - - - - -
408 Taxes other than income taxes 4,977 - (1) - -
409 Income taxes - - - - -
410 Provision for deferred income taxes - - - - -
411 Provision for deferred income taxes-credit - - - - -
411.5 Investment tax credit - - - - -
426.1 Donations - - 2 82 -
426.5 Other donations - - - 44 1
427 Interest on long-term debt - - - - -
430 Interest on debt to associate companies - - 2,442 - -
431 Other interest expense - - - - -
================================================================
TOTAL EXPENSES $ 27,659 $ 3,576 $ 78,845 $ 10,485 $ 11,189
================================================================
</TABLE>
<PAGE>
Page 19c
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
SCHEDULE XVII--SCHEDULE OF EXPENSE
BY DEPARTMENT OR SERVICE FUNCTION
(thousands of dollars)
INSTRUCTIONS: Indicate each department or service function.
(See Instruction 01-3 General Structure of
Accounting System: Uniform System of Accounts).
<TABLE>
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
-----------------------------------------------------------------------
CONSTRUCTION, GAS PLANNING, FINANCE
OPERATION & CUSTOMER MARKETING AND ENERGY
ACCOUNT DESCRIPTION OF ITEMS MAINTENANCE SERVICE MARKETING & SUPPLY TREASURY SUPPLY
- ------- -------------------- ----------- ------- --------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and wages $ 952 $ 5,930 $ 3,303 $ 1,878 $ 1,041 $ 101
921 Office supplies and expenses 1,110 30,180 2,847 1,646 1,132 60
922 Administrative expense - - - - - -
923 Outside services employed 306 268 1,112 18 19 -
924 Property insurance - - - - - -
925 Injuries and damages - 276 - - - -
926 Employee pensions and benefits 119 991 446 294 122 13
928 Regulatory commission expense - - - - - -
930.1 General advertising expenses - - - - - -
930.2 Miscellaneous general expense - - - - - -
931 Rents - - - - - -
932 Maintenance of structures and equipment - - - - - -
403 Depreciation and amortization expense - - - - - -
408 Taxes other than income taxes - - - - - -
409 Income taxes - - - - - -
410 Provision for deferred income taxes - - - - - -
411 Provision for deferred income taxes-credit - - - - - -
411.5 Investment tax credit - - - - - -
426.1 Donations - - - - - -
426.5 Other donations - - - - - -
427 Interest on long-term debt - - - - - -
430 Interest on debt to associate companies - - - - - -
431 Other interest expense - - - - 2 -
=======================================================================
TOTAL EXPENSES $ 2,487 $ 37,645 $ 7,708 $ 3,836 $ 2,316 $ 174
=======================================================================
</TABLE>
<PAGE>
Page 20
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
DEPARTMENTAL ANALYSIS OF SALARIES--ACCOUNT 920
(thousands of dollars)
<TABLE>
<CAPTION>
DEPARTMENTAL SALARY EXPENSE
--------------------------------------------
INCLUDED IN AMOUNTS BILLED TO:
PARENT NUMBER OF
NAME OF DEPARTMENT TOTAL COMPANY OTHER NON- PERSONNEL
OR SERVICE FUNCTION AMOUNT (NCE) ASSOCIATES ASSOCIATES END OF YEAR
- ------------------- ------ ----- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Executive Services $ 4,176 $ 230 $ 3,946 $ - 40
CEO Direct Reports 1,398 29 1,369 - 33
Corporate Communications 1,244 36 1,208 - 28
General Counsel 1,103 47 1,056 - 13
Corporate Planning & Development 2,110 52 2,058 - 35
Commodity Services 4,440 - 4,440 - 84
Purchased Power 1,634 - 1,634 - 25
Energy & Environmental 3,092 - 3,092 - 62
CFO Direct Reports 6,207 14 6,193 - 147
Human Resources 4,211 1 4,210 - 97
Regulatory Administration 1,937 - 1,937 - 37
Controllers Organization 2,813 136 2,677 - 74
Sales 5,664 - 5,664 - 102
Design Engineering 7,277 - 7,277 - 158
Construction, Oper & Maintenance 952 - 952 - 14
Customer Service 5,930 - 5,930 - 151
Marketing 3,303 - 3,303 - 70
Gas Planning, Marketing & Supp1y 1,878 - 1,878 - 35
Finance & Treasury 1,041 53 988 - 22
Energy Supply 101 - 101 - 2
========================================================
TOTAL $ 60,511 $ 598 $ 59,913 $ - 1,229
========================================================
</TABLE>
<PAGE>
Page 21
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
OUTSIDE SERVICES EMPLOYED--ACCOUNT 923
(thousands of dollars)
INSTRUCTIONS: Provide a breakdown of outside services employed. If the aggregate
amounts paid to any one payee and included within one category is less than
$25,000, only the aggregate number and amount of all such payments included
within the subaccounts need be shown. Provide a subtotal for each type of
service.
<TABLE>
<CAPTION>
RELATIONSHIP
SERVICES A'=ASSOCIATED
FROM WHOM PURCHASED PROVIDED "NA"=NONASSOCIATED AMOUNT
------------------- -------- ------------------ ------
<S> <C> <C> <C>
Legal Services
Cahill Gordon & Reindel Legal NA $ 26
Reid & Priest Legal NA 68
Other (11) Legal NA 5
------
Total Legal Services 99
------
Auditing, Tax, Consulting and Accounting Services
Arthur Andersen, LLP Auditing, Tax and Accounting Services NA 992
Deloitte & Touche, LLP Auditing, Tax and Accounting Services NA 1,735
-----
Total Auditing, Tax, Consulting and 2,727
Accounting Services
Temporary Personnel
Accu Staff, Inc. Temporary Personnel NA 34
Kelly Services Temporary Personnel NA 32
Precision Resources Temporary Personnel A 284
---
Total Temporary Personnel 350
---
Consulting Services
Alan W. Burgess Chief Medical Officer NA 48
Allen & Overy International Business Consulting NA 41
H L Yoh Company SILCO Consulting NA 42
Management Systems International Business Process Improvement NA 174
Perry E. Smith Supply Chain Consulting NA 100
Personnel Decisions International Human Resources Consulting NA 51
Policy Assessment Corporation Electric Deregulation Consulting NA 30
Saligent, Inc. Data Warehousing Consulting NA 48
Toeroek Assoc., Inc. Consulting, Title V NA 58
Watson Wyatt Benefits Consulting NA 129
---
Total Consulting 721
---
Outside Services
AEP Resources International Yorkshire SEC Registration Fee A 41
Apogee Group, Inc. Management Training NA 40
Automatic Data Processing Payroll NA 125
Bank of New York Proxy/Shareholder Services NA 465
Beacon Hill Partner Transfer Agent Services NA 53
Brand New Corporation Market Research NA 98
</TABLE>
<PAGE>
Page 21a
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
OUTSIDE SERVICES EMPLOYED--ACCOUNT 923
(thousands of dollars)
<TABLE>
<CAPTION>
RELATIONSHIP
SERVICES A'=ASSOCIATED
FROM WHOM PURCHASED PROVIDED "NA"=NONASSOCIATED AMOUNT
------------------- -------- ------------------ ------
<S> <C> <C> <C>
Columbia Clinic Services Wellness Medical Consulting NA $ 41
Concentra Medical Centers Wellness Program NA 33
D&D Environmental Consulting, Inc. Air Monitoring NA 32
Dayton Hudson's Express Business Ideas NA 58
Eagle Research Recruiting and Surveys NA 83
Electric Software Products Software NA 28
Executive Life Insurance Plan Benefits NA 71
Frost & Sullivan Energy Subscription NA 36
Gobbell Hays Partners Hazard Assessment NA 94
Hartford Life & Annuity Benefits NA 289
Health Promotion Management,Inc. Wellness Program NA 441
Insights Unlimited Market Research NA 654
International Billing Service Computer Programming NA 280
International Utility Efficiency Membership NA 163
Morgan Guaranty Trust Financial Services NA 37
Occu-Mobile, Inc. Medical Services NA 39
Phase Con Air Monitoring NA 48
Productivity Management Suggestion and Incentive Workshops NA 163
Thomas & Perkins Advertising NA 44
Utility Engineering Engineering Services A 31
Walsh Environmental Environmental NA 37
Other (259) Various Outside Services NA 644
-----
Total Outside Services 4,168
-----
TOTAL OUTSIDE SERVICES EMPLOYED 8,065
=====
</TABLE>
<PAGE>
Page 22
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
EMPLOYEE PENSION AND BENEFITS--ACCOUNT 926
(thousands of dollars)
INSTRUCTIONS: Provide a listing of each pension plan and benefit program
provided by the service company. Such listing should be limited to $25,000.
DESCRIPTION AMOUNT
-------------
Incentive Plan $ 6,089
Pensions (2,731)
Supplemental Executive Retirement Plan 3,500
Employee Savings Plans (401K) 4,216
OPEB-Long-term Health 3,687
OPEB-Long-term Life 894
Managed Health Care 5,029
Other Medical 30
Dental Care 798
Vision Care 131
Long-term Disability 576
Life Insurance 394
Lost time 9,426
Other (2,736)
-------------
$ 29,303
=============
<PAGE>
Page 23
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
GENERAL ADVERTISING EXPENSE--ACCOUNT 930.1
(thousands of dollars)
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses", classifying the items according to the nature of
the advertising and as defined in the account definition. If a particular class
includes an amount in excess of $3,000 applicable to a single payee, show
separately the name of the payee and the aggregate amount applicable thereto.
DESCRIPTION NAME OF PAYEE AMOUNT
None
MISCELLANEOUS GENERAL EXPENSES--ACCOUNT 930.2
(thousands of dollars)
INSTRUCTIONS: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses" classifying such expenses according to their
nature. Payments and expenses permitted by Section 321 (b)(2) of the Federal
Election Campaign Act, as amended by Public Law 94-283 in 1976 (2 U.S.C. 441
(b)(2)) shall be separately classified.
DESCRIPTION NAME OF PAYEE AMOUNT
Miscellanous General Expenses Various $ 1
NYSE Annual Fee New York Stock Exchange, Inc. 100
Board of Director Fees and Expenses Various 966
-------
TOTAL $ 1,067
=======
RENTS--ACCOUNT 931
(thousands of dollars)
INSTRUCTIONS: Provide a listing of the amount included in Account 931, "Rents",
classifying such expenses by major groupings of property, as defined in the
account definition of the Uniform System of Accounts.
TYPE OF PROPERTY AMOUNT
Rent of office space-various facilities $ 6,023
--------
TOTAL $ 6,023
========
<PAGE>
Page 24
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
TAXES OTHER THAN INCOME TAXES--ACCOUNT 408
(thousands of dollars)
INSTRUCTIONS: Provide an analysis of Account 408 "Taxes Other Than Income
Taxes". Separate the analysis into two groups: (1) other than U.S. Government
taxes, and (2) U.S. Government taxes. Specify each of the various kinds of taxes
and show the amounts thereof. Provide a subtotal for each class of tax.
DESCRIPTION AMOUNT
Other Than U.S. Government Taxes:
State Unemployment Taxes $ 105
Denver City Tax 39
Aurora City Tax 1
Oklahoma Tax Commission 1
Franchise Tax - Texas 97
Franchise Tax - New Mexico and other 1
-----
SUBTOTAL 244
-----
U.S. Government Taxes:
Social Security Taxes 4,747
Federal Unemployment Taxes 82
-----
SUBTOTAL 4,829
-----
TOTAL $ 5,073
=======
<PAGE>
Page 25
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
DONATIONS--ACCOUNT 426.1
(thousands of dollars)
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The aggregate number and
amount of all items of less than $3,000 may be shown in lieu of details.
<TABLE>
<CAPTION>
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
- ----------------- ------------------- ------
<S> <C> <C>
Amarillo Area Foundation Contribution to support the Pharmacy School at Texas Tech $ 5
Adams County Economic Development Contribution to support the activities of the organization 20
Boulder Chamber of Commerce Annual membership contribution 5
Boy Scouts of America Contribution to support the activities of the organization 5
Citizen's Scholarship Foundation Contribution to support scholarship program 29
Colorado State Fair Contribution to support the activities of the organization 25
Hispanic Chamber of Commerce, Inc. Contribution to support the activities of the organization 9
Downtown Denver Partnership, Inc. Annual membership contribution 13
Georgetown Energy Museum Contribution to support the activities of the organization 60
Jefferson Economic Council Annual membership contribution 8
Northern Colorado Legislative Alliance Annual membership contribution 5
Rocky Mountain Commercial Real Estate Expo Contribution to support the activities of the organization 5
South Metro Denver Chamber of Commerce Contribution to support the activities of the organization 3
Southeast Denver-Douglas County Contribution to support the activities of the organization 8
Texas Tech University Contribution to support the building of Spirit Arena - Lubbock 20
Volunteers of America Contribution to support community service organizations 3
West Texas A&M University Contribution to support Scholarship program 5
WPS/YMCA Contribution to support the activities of the organization 7
</TABLE>
<PAGE>
Page 25a
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
DONATIONS--ACCOUNT 426.1
(thousands of dollars)
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The aggregate number and
amount of all items of less than $3,000 may be shown in lieu of details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
- ----------------- ------------------- ------
NCE Foundation Contributions to support the activities
of the organization $ 1,901
Other (146) 62
-------
TOTAL $ 2,198
=======
<PAGE>
Page 26
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
OTHER DEDUCTIONS--ACCOUNT 426.5
(thousands of dollars)
INSTRUCTIONS: Provide a listing of the amount include in Account 426.5, "Other
Deductions", classifying such expenses according to their nature.
<TABLE>
<CAPTION>
DESCRIPTION NAME OF PAYEE AMOUNT
- ----------- ------------- ------
<S> <C> <C>
Expenditures for Certain Civic, Company employee and administrative costs
Political & Related Activities for civic, political and related activities $ 80
Penalties - franchise taxes States of Oklahoma and Texas 10
=====
TOTAL $ 90
=====
</TABLE>
<PAGE>
Page 27
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
SCHEDULE XVIII--NOTES TO STATEMENT OF INCOME
INSTRUCTIONS: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish particulars as to any
significant increases and services rendered or expenses incurred during the
year. Notes related to financial statements shown elsewhere in this report may
be indicated here by reference.
See Notes to Financial Statements on pages 14-14d.
<PAGE>
Page 28
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
For the Year Ended December 31, 1998
ORGANIZATION CHART
<TABLE>
<CAPTION>
ORGANIZATION CHART SERVICE FUNCTION
------------------ ----------------
<S> <C>
Chairman Executive
Audit Services CEO Direct Reports
Aviation CEO Direct Reports
Governmental Affairs CEO Direct Reports
Vice-Chairman Executive
Corporate Communications Corporate Communications
General Counsel General Counsel
Corporate Planning and Development-Sr. V.P. Executive
Business Planning and Development Corp. Planning and Development
Commodity Services-Executive V.P. Executive
Commodity Services-all others Commodity Services
Production Services Commodity Services
Energy and Environmental-V.P. Executive
Energy and Environmental-all others Energy and Environmental
Purchased Power and Electric Trading Purchased Power
Marketing and Services-President Executive
Sales-V.P. Executive
Sales-all others Sales
Marketing Marketing
Design Engineering-V.P. Executive
Design Engineering-all others Design Engineering
Construction, Operations and Maintenance-V.P. Executive
Construction, Operations and Maintenance-all others Constr., Oper. and Maint.
Customer Accounts and Services Customer Service
Energy Supply Management and Bulk Power Transport Energy Supply
Gas Planning, Marketing and Supply Gas Plan., Marketing and Supply
Financial and Support Services-CFO Executive
Human Resources-V.P. Executive
Human Resources-all others Human Resources
Regulatory Administration Executive
Regulatory Administration-all others Regulatory Administration
Finance and Treasury - Sr. V.P. Executive
Finance and Treasury-Director Executive
Finance and Treasury-all others Finance and Treasury
Accounting - Controller Executive
Accounting-all others Controllers Organization
Information Technology CFO Direct Reports
Supply Chain CFO Direct Reports
Facilities and Real Estate CFO Direct Reports
Shareholder Services CFO Direct Reports
</TABLE>
<PAGE>
Page 29
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
METHODS OF ALLOCATION
Sales Ratio - Based on firm kilowatt-hour electric sales (and/or the
equivalent cubic feet of natural gas sales based on a Btu content, where
applicable), excluding inter-system sales, for the immediately preceding
twelve consecutive calendar months, the numerator of which is for an
Operating Company or an affiliate and the denominator of which is for all
Operating Companies and affected affiliate companies. This ratio will be
determined annually, or at such time as may be required due to a
significant change.
Residential Sales Ratio - Based on firm kilowatt-hour electric sales to
residential customers for the immediately preceding twelve consecutive
calendar months, the numerator of which is for an Operating Company or an
affiliate and the denominator of which is for all Operating Companies and
affected affiliate companies. This ratio will be determined annually, or at
such time as may be required due to a significant change.
Business Sales Ratio - Based on firm kilowatt-hour electric sales to
business customers that purchase less than 250 kilowatts for the
immediately preceding twelve consecutive calendar months, the numerator of
which is for an Operating Company or an affiliate and the denominator of
which is for all Operating Companies and affected affiliate companies. This
ratio will be determined annually, or at such time as may be required due
to a significant change.
Large Commercial & Industrial Sales Ratio - Based on firm kilowatt-hour
electric sales to large commercial and industrial customers that purchase
greater than 250 kilowatts for the immediately preceding twelve consecutive
calendar months, the numerator of which is for an Operating Company or an
affiliate and the denominator of which is for all Operating Companies and
affected affiliate companies. This ratio will be determined annually, or at
such time as may be required due to a significant change.
Electric Peak Load Ratio - Based on the sum of the monthly electric maximum
system demands for the immediately preceding twelve consecutive calendar
months, the numerator of which is for an Operating Company and the
denominator of which is for all Operating Companies. This ratio will be
determined annually, or at such time as may be required due to a
significant change.
Customers Ratio - Based on the sum of total electric customers (and/or gas
customers, or residential, business and large commercial and industrial
customers where applicable) at the end of each month for the immediately
preceeding twelve consecutive calendar months, the numerator of which is
for an Operating Company or an affected affiliate company and the
denominator of which is for all Operating Companies and affected affiliate
companies. This ratio will be determined annually, or at such time as may
be required due to a significant change.
Employees Ratio - Based on the sum of the number of employees at the end of
each month for the immediately preceding twelve calendar months, the
numerator of which is for an Operating Company or an affected affiliate
company and the denominator of which is for all Operating Companies and
affected affiliate companies. This ratio will be determined annually, or at
such time as may be required due to a significant change.
<PAGE>
Page 29a
Construction Expenditures Ratio - Based on construction or capital
expenditures, net of reimbursements, for the immediately preceding twelve
consecutive calendar months, the numerator of which is for an Operating
Company or an affected affiliate company and the denominator of which is
for all Operating Companies and affected affiliate companies. This ratio
will be determined annually, or at such time as may be required due to a
significant change.
Transmission Construction Expenditures Ratio - Based on transmission
construction or capital expenditures, net of reimbursements, for the
immediately preceding twelve consecutive calendar months, the numerator of
which is for an Operating Company or an affected affiliate company and the
denominator of which is for all Operating Companies and affected affiliate
companies. This ratio will be determined annually, or at such time as may
be required due to a significant change.
Distribution Construction Expenditures Ratio - Based on distribution
construction or capital expenditures, net of reimbursements, for the
immediately preceding twelve consecutive calendar months, the numerator of
which is for an Operating Company or an affected affiliate company and the
denominator of which is for all Operating Companies and affected affiliate
companies. This ratio will be determined annually, or at such time as may
be required due to a significant change.
Substation Construction Expenditures Ratio - Based on substation
construction or capital expenditures, net of reimbursements, for the
immediately preceding twelve consecutive calendar months, the numerator of
which is for an Operating Company or an affected affiliate company and the
denominator of which is for all Operating Companies and affected affiliate
companies. This ratio will be determined annually, or at such time as may
be required due to a significant change.
Total Common Equity Ratio, with 20 Percent of Common Equity assigned to
New Century Energies, Inc. - Based on the sum of the common equity at the
end of each month for the immediately preceding twelve calendar months,
the numerator of which is for an Operating Company or an affected
affiliate company and the denominator of which is for all Operating
Companies and affected affiliate companies. This ratio will be determined
annually, or at such time as may be required due to significant changes.
Revenue Ratio - Based on the sum of the revenue at the end of each month
for the immediately preceding twelve consecutive calendar months, the
numerator of which is for an Operating Company or an affected affiliate
company and the denominator of which is for all Operating Companies and
affected affiliate companies. This ratio will be determined annually, or
at such time as may be required due to significant changes.
Wholesale Revenue Ratio - Based on the sum of the electric wholesale
revenue at the end of each month for the immediately preceding twelve
consecutive calendar months, the numerator of which is for an Operating
Company or an affected affiliate company and the denominator of which is
for all Operating Companies and affected affiliate companies. This ratio
will be determined annually, or at such time as may be required due to
significant changes.
Industrial Revenue Ratio - Based on the sum of the electric industrial
revenue at the end of each month for the immediately preceding twelve
consecutive calendar months, the numerator of which is for an Operating
Company or an affected affiliate company and the denominator of which is
for all Operating Companies and affected affiliate companies. This ratio
will be determined annually, or at such time as may be required due to
significant changes.
<PAGE>
Page 29b
Payroll Ratio - Based on the sum of the payroll at the end of each month
for the immediately preceding twelve consecutive calendar months, the
numerator of which is for an Operating Company or an affected affiliate
company and the denominator of which is for all Operating Companies and
affected affiliate companies. This ratio will be determined annually, or
at such time as may be required due to significant changes.
Electric Mwh Generation - Based on the sum of electric Mwh generated
during each month for the immediately preceding twelve consecutive
calendar months, the numerator of which is for an Operating Company and
the denominator of which is for all Operating Companies. This ratio will
be determined annually, or at such time as may be required due to
significant changes.
Electric Kwh Purchased Power Ratio - Based on the sum of electric Kwh
purchased power during each month for the immediately preceding twelve
consecutive calendar months, the numerator of which is for an Operating
Company and the denominator of which is for all Operating Companies. This
ratio will be determined annually, or at such time as may be required due
to significant changes.
Total Assets Ratio - Based on the total assets at year end for the
preceding year, the numerator of which is for an Operating Company or
affected affiliate company and the denominator of which is for all
Operating Companies and affected affiliate companies. This ratio will be
determined annually, or at such time as may be required due to significant
changes.
Cost of Gas Sold - Based on the sum of the cost of gas sold at the end of
each month for the immediately preceding twelve consecutive calendar
months, the numerator of which is for an Operating Company or an affected
affiliate company and the denominator of which is for all Operating
Companies and affected affiliate companies. This ratio will be determined
annually, or at such time as may be required due to significant changes.
Gas Throughput Ratio - Based on the sum of the gas throughput dekatherms
at the end of each month for the immediately preceding twelve consecutive
calendar months, the numerator of which is for an Operating Company or an
affected affiliate company and the denominator of which is for all
Operating Companies and affected affiliate companies. This ratio will be
determined annually, or at such time as may be required due to significant
changes.
Gas Transport Dekatherms - Based on the sum of transported gas dekatherms
at the end of each month for the immediately preceding twelve consecutive
calendar months, the numerator of which is for an Operating Company or an
affected affiliate company and the denominator of which is for all
Operating Companies and affected affiliate companies. This ratio will be
determined annually, or at such time as may be required due to significant
changes.
Payment Transaction Ratio - Based on the sum of the number of payment
transactions processed during each month for the immediately preceding
twelve consecutive calendar months, the numerator of which is for an
Operating Company or an affected affiliate company and the denominator of
which is for all Operating Companies and affected affiliate companies.
This ratio will be determined annually, or at such time as may be required
due to significant changes.
Accounting Transactions Ratio - Based on the sum of the number of
accounting transactions processed during each month for the immediately
preceding twelve consecutive calendar months, the numerator of which is
for an Operating Company or an affected affiliate company and the
denominator of which is for all Operating Companies and affected affiliate
companies.
<PAGE>
Page 29c
Square Footage Ratio - Based on the total square footage at yearend for
the preceding year, the numerator of which is for an Operating Company or
an affected affiliate company and the denominator of which is for all
Operating Companies and affiliate companies.
<PAGE>
Page 30
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
For the Year Ended December 31, 1998
The following annual statement was supplied to each associate company in
support of the amount of compensation for use of capital billed during 1998:
In accordance with Instruction 01-12 of the Securities and Exchange
Commission's Uniform System of Accounts for Mutual Service Companies and
Subsidiary Service Companies, New Century Services, Inc. submits the following
information on the billing of interest on borrowed funds to associated companies
for the year 1998:
A. Amount of interest billed to associate companies is contained on page
16, Analysis of Billing.
B. The basis for billing of interest to the associated companies is based
on an average of the Revenue Ratio, the Total Construction Expenditures
Ratio and the Total Common Equity Ratio (see Methods of Allocation,
page 29-29c, for additional discussion).
<PAGE>
Page 31
ANNUAL REPORT OF NEW CENTURY SERVICES, INC.
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company Act of
1935 and the rules and regulations of the Securities and Exchange Commission
issued thereunder, the undersigned company has duly caused this report to be
signed on its behalf by the undersigned officer thereunto duly authorized.
New Century Services, Inc.
-------------------------------
(Name of Reporting Company)
By: /s/ Teresa S. Madden
-------------------------------
(Signature of Signing Officer)
Teresa S. Madden, Controller
-------------------------------
(Printed Name and Title of Signing Officer)
Date: April 30, 1999
<PAGE>
<TABLE> <S> <C>
<ARTICLE> OPUR2
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM NEW CENTURY
SERVICES, INC. BALANCE SHEET & INCOME STATEMENT AS OF DECEMBER 31, 1998.
</LEGEND>
<CIK> 0001004858
<NAME> New Century Energies, Inc.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> (118)
<TOTAL-INVESTMENTS> 0
<TOTAL-CURRENT-ASSETS> 53,999
<TOTAL-DEFERRED-DEBITS> 1,366
<OTHER-ASSETS-AND-DEBITS> 55,247
<TOTAL-ASSETS-AND-DEBITS> 55,247
<TOTAL-PROPRIETARY-CAPITAL> 1
<TOTAL-LONG-TERM-DEBT> 0
<NOTES-PAYABLE> 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 25,150
<OTHER-CURR-AND-ACCRUED-LIAB> 53,135
<TOTAL-DEFERRED-CREDITS> 806
<DEFERRED-INCOME-TAX> 0
<TOT-LIABIL-AND-PROPRIET-CAP> 55,247
<SERVICES-ASSOCIATE-COMPANIES> 314,838
<SERVICES-NON-ASSOCIATE-COMP> 0
<MISC-INCOME-OR-LOSS> 223
<TOTAL-INCOME> 315,061
<SALARIES-AND-WAGES> 60,511
<EMPLOYEE-PENSION-AND-BENEFIT> 29,303
<OTHER-EXPENSES> 315,061
<TOTAL-EXPENSES> 315,061
<NET-INCOME> 0
<TOTAL-EXPENSES-DIRECT-COST> 206,247
<TOTAL-EXPENSES-INDIRECT-COST> 106,149
<TOT-EXP-DIRECT-AND-INDIRECT> 314,838
<PERSONNEL-END-OF-YEAR> 1,229
</TABLE>
