SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM U5S
ANNUAL REPORT
For the Year Ended December 31, 1998
Filed Pursuant to the
Public Utility Holding Company Act of 1935
by
NEW CENTURY ENERGIES, INC.
1225 17TH STREET
DENVER, CO 80202
<PAGE>
TABLE OF CONTENTS
Page
Number
Item 1. System Companies and Investments Therein as of
December 31, 1998 .................................. 1
Item 2. Acquisitions or Sales of Utility Assets.............. 5
Item 3. Issue, Sale, Pledge, Guarantee or Assumption of System
Securities ........................................ 6
Item 4. Acquisition, Redemption or Retirement of System Securities 8
Item 5. Investments in Securities of Nonsystem Companies...... 11
Item 6. Officers and Directors................................ 11
Item 7. Contributions and Public Relations.................... 27
Item 8. Service, Sales and Construction Contracts............. 29
Item 9. Wholesale Generators and Foreign Utility Companies.... 29
Item 10. Financial Statements and Exhibits..................... 32
Signature ...................................................... 51
<PAGE>
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
Number of
Name of Company (1) Common % of Voting Issuer Owner's
(and abbreviations used herein) Shares Owned Power Book Value Book Value
------------------------------- ------------ ----- ---------- ----------
(000s) (000s)
<S> <C> <C> <C> <C>
New Century Energies, Inc. (NCE)
Public Service Company of Colorado 100 100 $1,627,332 $1,627,332
(PSCo) (1)
1480 Welton, Inc. (1480) 4,049 100 7,615 7,615
PSR Investments, Inc. (PSR) 363,190 100 5,666 5,666
Green and Clear Lakes Company 2,500 100 102 102
Fuel Resources Development Co.(FUELCO)* 159,000 100 1,175 1,175
PS Colorado Credit Corporation(PSCCC) 1,959,747 100 23,675 23,675
Southwestern Public Service Company (SPS) 100 100 738,220 738,220
Cheyenne Light, Fuel and Power 104,000 100 21,942 21,942
Company (CLF&P)
WestGas InterState, Inc. (WGI) 60,000 100 826 826
New Century Services, Inc. (NCS) 1,000 100 1 1
NC Enterprises, Inc. 1,000 100 185,167 185,167
New Century International, Inc.(NCI)(5) 1,000 100 349,563 349,563
Yorkshire Power Group Limited 440,000,002 50 666,000 333,000
Yorkshire Holdings plc 100 666,000 333,000
Yorkshire Electricity Group 159,270,953 100 666,000 333,000
plc (a FUCO) (9)
Yorkshire Power Finance Limited 1,000 100 - -
The Independent Power 52,650 21.6 1,752 394
Corporation plc (IPC)(a FUCO) (1,9)
ep3, L.L.C. (2,3) 50 (2,992) (1,496)
ep3 LP* (2,3) 50 - -
Independent Power International(IPI)(1)
(an EWG) 21.6 (584) (126)
Corporation Independiente de 100
Energia S.A. (CIESA) (an EWG) (8)
Central Piedra Buena S.A. 39
(Piedra Buena) (an EWG)(8)
New Century-Cadence, Inc. 1,000 100 1,603 1,603
Cadence Network, L.L.C (3) 33.3 1,853 617
Quixx Corporation 51,000 100 77,310 77,310
Quixx Louisville, L.L.C. 100 5,958 5,958
KES Montego, Inc. 1,000 100 32 32
KES Jamaica, L.P. (General 1 5 -
Partner)(an EWG)(2)
Quixx Jamaica, Inc. 10,000 100 3,551 3,551
KES Jamaica, L.P. (Limited 99 5 5
Partner)(an EWG)(2)
</TABLE>
1
<PAGE>
<TABLE>
<CAPTION>
Number of
Name of Company (1) Common % of Voting Issuer Owner's
(and abbreviations used herein) Shares Owned Power Book Value Book Value
------------------------------- ------------ ----- ---------- ----------
(000s) (000s)
<S> <C> <C> <C> <C>
Carolina Energy, Limited Partnership* 32.33 - -
(Limited Partner)(2)
Quixx Carolina, Inc. 10,000 100 1 1
Carolina Energy, Limited 1 - -
Partnership *(General Partner)(2)
Windpower Partners 1994, L.P. 24.67 $ 14,204 $ 3,567
(Limited Partner)(2)
Quixx Mustang Station, Inc. 10,000 100 (2) (2)
Denver City Energy Associates, L.P. 0.5 (5,600) (28)
(General Partner)(an EWG) (2)
Quixx WPP94, Inc. 10,000 100 (4) (4)
Windpower Partners 1994, L.P. 0.33 14,204 47
(General Partner)(2)
Quixx Power Services, Inc. 1,000 100 383 383
Quixx WRR, L.P. (General Partner)(2) 1 4,001 40
Quixx Resources, Inc. 10,000 100 3,117 3,117
Quixx WRR, L.P. (Limited Partner)(2) 99 4,001 3,961
Borger Energy Associates, L.P. 49.5 (1,210) (539)
(Limited Partner) (2,4)
Denver City Energy Associates, L.P. 49.5 (5,600) (2,772)
(Limited Partner) (an EWG) (2)
Quixx Borger Cogen, Inc. (4) 10,000 100 (5) (5)
Borger Energy Associates, L.P. 0.45 (1,210) (5)
(General Partner) (2,4)
Borger Funding Corporation 100 100 - -
Quixxlin Corp. (4) 10,000 100 32 32
Quixx Linden, L.P. (General 0.5 6,034 30
Partner)(2)
Quixx Linden, L.P. (Limited 49.5 6,034 2,987
Partner)(2)
BCH Energy L.P.* 42.2 - -
Mosbacher Power International, 4,028
L.L.C.(6)
Utility Engineering Corporation (UE) 72,000 100 44,773 44,773
Universal Utility Services Company (UUS) 1,000 100 2,691 2,691
Precision Resource Company 1,000 100 268 268
ep3, L.L.C.(2) 50 (2,992) (1,496)
Natural Fuels Corporation (1) 15,679,876 83.63 3,813 3,189
Natural/Total Limited Liability 50 827 414
Company
Natural/Total/KN Limited Partnership 66.67 166 95
Natural/Peoples Limited 25 242 63
Liability Company
e prime, inc. 1,807,719 100 26,340 26,340
Young Gas Storage Company 1,000 100 5,434 5,434
Young Gas Storage Company, Ltd. 47.5 13,676 6,529
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
Number of
Name of Company (1) Common % of Voting Issuer Owner's
(and abbreviations used herein) Shares Owned Power Book Value Book Value
------------------------------- ------------ ----- ---------- ----------
(000s) (000s)
<S> <C> <C> <C> <C>
Texas-Ohio Gas, Inc. 1,000,000 100 (1,369) (1,369)
Texas-Ohio Pipeline, Inc. 1,000,000 100 2,215 2,215
ep3 L.P.* (2) 50 - -
Johnstown Cogeneration Company,L.L.C. 50 2,427 1,214
e prime Networks, Inc. * 100 100 100 -
e prime projects international,Inc. * 100 100 100 2,887
e prime operating, Inc. 100 100 100 (186)
e prime (Belize) limited * -
e prime Energy Marketing, Inc.* 100 100 100 -
The Planergy Group, Inc. (4) 1,000 100 12,025 12,025
Planergy, Inc. (4) 875 100 9,007 9,007
Planergy Limited (4)* 100 - -
USA - Planergy L.L.C.(4)* 49 - -
First American Energy 50 - -
Alliance, L.L.C. (4)*
Southeast Energy Alliance, LLC(4)* 50 - -
Planergy New York, Inc. (4)* 875 100 - -
Planergy (Delaware), Inc. (4)* 100 - - -
Planergy Services, Inc. (4) 1,000 100 9,649 9,649
Planergy Energy Services 25 100 (674) (674)
Corporation (4)
Planergy Services USA, Inc. (4) 3,000 100 50 50
Planergy Services of Texas, Inc. (4) 500 100 58 58
Planergy Services of 500 100 302 302
Houston, Inc. (4)
Cogeneration Capital 79,460 100 15 15
Associates, Inc. (4)
Planergy Services of 15,000 100 498 498
California (4)
Planergy Power II, Inc. (4)* 1,000 100 - -
NCE Communications, Inc (7) 100 100 100 - -
New Century-Centrus, Inc. (4) 1,000 100 786 786
Centrus, L.L.P. (4) 33.3 2,357 786
</TABLE>
* Inactive Subsidiaries
NOTES
(1) PSCo also holds a controlling interest in several other relatively small
ditch and water companies whose capital requirements are not significant.
Certain other subsidiaries of IPC, IPI and Natural Fuels hold controlling or
minority interest in other relatively small companies whose capital requirements
are not signifcant.
(2) Subsidiaries of more than one system company are:
3
<PAGE>
<TABLE>
<CAPTION>
Name of Subsidiary System Company Owners Investment by Owner
- ------------------ --------------------- -------------------
<S> <C> <C>
KES Jamaica, LP KES Montego, Inc. (General Partner 1%) $ -
Quixx Jamaica, Inc. (Limited Partner 99%) 5
Carolina Energy, L.P. Quixx Corporation (Limited Partner 32.33%) -
Quixx Carolina, Inc. (General Partner 1%) -
Windpower Partners 1994, L.P. Quixx Corporation (Limited Partner 24.67%) 3,567
Quixx WPP94, Inc. (General Partner .33%) 47
Denver City Energy Associates, L.P. Quixx Mustang Station, Inc. (General Partner 0.5%) (28)
Quixx Resources, Inc. (Limited Partner 49.5%) (2,772)
Borger Energy Associates, L.P. Quixx Resources, Inc. (Limited Partner 49.5%) (539)
Quixx Borger Cogen, Inc. (Limited Partner 0.5%) (5)
Quixx Linden, L.P. Quixxlin Corp. ( General Partner 0.5%) 30
Quixx Corporation ( Limited Partner 49.5%) 2,987
ep3 L.L.C NC Enterprises, Inc. (33.3%) (1,496)
Independent Power Americas, Inc. (33.3%) (1,496)
Quixx WRR, L.P. Quixx Resources, Inc. (Limited Partner (99%) 3,961
Quixx Corporation (General Partner 1%) 40
ep3 L.P. Independent Power Corporation (Limited Partner 50%) -
e prime, Inc. (Limited Partner 50%) -
</TABLE>
(3) Non corporate subsidiaries are:
Equity
Name of Subsidiary Type of Organization Investment
- ------------------ -------------------- -----------
Cadence Network, L.L.C Limited Liability Company $ 627
Quixx Louisville, L.L.C. Limited Liability Company 5,958
KES Jamaica L.P. Limited Partnership 5
Carolina Energy, Limited Partners Limited Partnership -
Windpower Partners 1994, L.P. Limited Partnership 3,614
Denver City Energy Associates, L.P. Limited Partnership (2,800)
Quixx WRR, L.P. Limited Partnership 4,001
Borger Energy Associates, L.P. Limited Partnership (544)
Quixx Linden, L.P. Limited Partnership 3,017
Mosbacher Power International L.L.C Limited Liability Company 4,028
Natural/Total Limited Liability Company 414
Natural/Total/KN Limited Partnership 95
Natural/Peoples Limited Liability Company 63
Young Gas Storage Company, Ltd Limited Liability Company 6,529
Johnstown Cogeneration Company L.L.C Limited Liability Company 1,214
e prime (Belize) Limited Limited Liability Company -
ep3 L.P. Limited Partnership -
ep3 L.L.C Limited Liability Company (2,992)
USA - Planergy L.L.C. Limited Liability Company -
(4) New subsidiary companies added during 1998 were:
<TABLE>
<CAPTION>
Name of Subsidiary Date and Place of Organization Description
- ----------------- ------------------------------ -----------
<S> <C> <C>
The Planergy Group, Inc. January 2, 1990 in Texas Holds energy-related company
Planergy, Inc. August 19,1997 in Texas Energy services
Planergy Limited May 13, 1997 in Canada Energy services
USA - Planergy LLC July 1, 1997 in Texas Energy services
First American Energy September 30, 1997 in
Alliance LLC North Carolina Energy services
4
<PAGE>
Southeast Energy Alliance LLC July 11, 1997 in North
Carolina Energy services
Planergy New York, Inc. February 20, 1991 in
New York Energy services
Planergy (Delaware), Inc. September 26, 1996 in
Delaware Holds energy-related company
Planergy Services, Inc. July 30, 1987 in
Delaware Holds energy-related company
Planergy Energy Services July 30, 1987 in
Corporation Delaware Energy services
Planergy Services USA, Inc. July 30, 1987 in
Delaware Holds energy-related company
Planergy Services of July 30, 1987 in
Texas, Inc. Delaware Energy services
Planergy Services of July 30, 1987 in
Houston, Inc. Delaware Energy services
Cogeneration Capital June 19, 1981 in
Associates, Inc. California Energy services
Planergy Services of November 6, 1984 in
California California Energy services
Planergy Power II, Inc. July 6, 1992 in Delaware Energy services
New Century-Centrus, Inc. June 10, 1998 in Colorado Holds telecommunication partnership
Centrus, L.L.P. June 16, 1998 in Indiana Telecommunication services
</TABLE>
(5) Became a subsidiary of NC Enterprises in 1998.
(6) The relationship with these entities was terminated as of February 18, 1998.
(7) In 1997 NCE Communications, Inc. was named e prime Telecom, Inc. and was a
subsidiary of e prime, inc.
(8) Detailed financial statements of the foreign subsidiaries were not
available.
ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS
During 1998, there were no acquisitions or sales of utility assets which
involved consideration of more than $1 million.
5
<PAGE>
ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES
<TABLE>
<CAPTION>
Names of Company
Issuing,
Guaranteeing, or
Name of Issuer Assuming Date of
And Title of Issue Securities Transaction Consideration Authorization or Exemption
(1) (2) (3) (4) (5)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PSCCC
Unsecured Medium-term Notes,
Series A, 5.86%, PSCCC 12/1/98 $75,000,000 Rule 52
Due May 30, 2000
Unsecured Medium-term Notes,
Series A, 5.86%, PSCCC 12/15/98 $25,000,000 Rule 52
Due May 30, 2000
Commercial Paper Secured
by $300 million line of
credit
End of year balance PSCCC 12/31/98 $69,225,000 Rule 52
Highest balance during the 11/30/98 $104,850,000
year
Effective average interest
rate of 5.63%
Commitment fee of .10%
PSCo
6% First Collateral Trust
Bonds, Series No. 6 PSCo 4/20/98 $250,000,000 Rule 52
due April 15, 2003
7.60% Deferrable Interest
Subordinated Debentures due PSCo 5/11/98 $200,000,000 Rule 52
June 30, 2038
7.60% Trust Originated PSCo Capital 5/11/98 $194,000,000 Rule 52
Preferred Securities and Trust I Preferred
Common Securities Securities/
$6,000,00
Common
Securities
Guarantee for benefit of
holders of preferred PSCo 5/11/98 - Rule 52
securities and common
securities
Notes Payable to Banks
End of year balance
Highest balance during the PSCo 12/1/98 $0 Rule 52
year 1/1/98 $50,000,000
Effective average
interest rate of 5.69%
No commitment fees
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Names of Company
Issuing,
Guaranteeing, or
Name of Issuer Assuming Date of
And Title of Issue Securities Transaction Consideration Authorization or Exemption
(1) (2) (3) (4) (5)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PSCo (continued)
Commercial Paper
Secured by $450 million lines
of credit PSCo 12/31/98 $333,570,000 Rule 52
End of year balance 9/30/98 $352,700,000
Highest balance during the
year
Effective average
interest rate of 5.71%
Commitment fees of .10% on
$300 million and .08% on
$150 million
SPS
Unsecured notes - standby
credit agreement SPS 6/29/98 $ 45,140,068 Rule 52
Commercial Paper
Secured by $200 million lines
of credit
End of year balance SPS 12/31/98 $ 85,162,000 Rule 52
Highest balance during the year 6/1/98 $182,000,000
Effective average
interest rate of 5.50%
Commitment fees of .06
Quixx
Co-issued 7.26% First Mortgage Borger Funding
Bonds Corporation and
Due December 31, 2022. Borger Energy 6/11/98 $117 ,000,000 Rule 52
Secured by all Borger Funding Associates, L.P.
Corporation's property
100 shares of common stock Borger Funding 6/9/98 $1 Rule 52
Corporation
Credit Agreement with Denver City Up to
Construction Loan and Term Energy 1/9/98 $195,000,000 Rule 52
Loan Facilitites Associates, L.P.
Secured by all assets and
contract rights
</TABLE>
7
<PAGE>
ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES
<TABLE>
<CAPTION>
Extinguished
Name of Company (EXT)
Acquiring, Or Held (H) Authorization or Exemption
Redeeming or for (5)
Name of Issuer and Retiring Further
Title of Issue Securities Consideration Disposition
(1) (2) (3) (4)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PSCo
6 3/4% First Mortgage Bonds due PSCo $25,000,000 EXT Rule 42
July 1, 1998
5 7/8% Pollution Control Bonds
due March 1, 2004 (sinking fund) PSCo $500,000 EXT Rule 42
Medium-Term Notes Series A,
6.80% due May 11, 1998 (2 PSCo $22,000,000 EXT Rule 42
notes-$11 million each)
Medium-Term Notes Series A,
9.00% due April 1, 1998 PSCo $5,000,000 EXT Rule 42
Medium-Term Notes Series C,
6.02% due March 4, 1998 PSCo $50,000,000 EXT Rule 42
Medium-Term Notes Series C,
6.23% due September 4, 1998 PSCo $50,000,000 EXT Rule 42
Preferred Stock
4.20% Not subject to mandatory
redemption PSCo $10,000,000 EXT Rule 42
100,000 shares extinguished
Preferred Stock
4.25% Not subject to mandatory
redemption PSCo $16,000,000 EXT Rule 42
160,000 shares extinguished
Preferred Stock
4.25% Not subject to mandatory
redemption PSCo $1,499,700 EXT Rule 42
14,997 shares extinguished
Preferred Stock
4.50% Not subject to mandatory
redemption PSCo $6,500,000 EXT Rule 42
65,000 shares extinguished
Preferred Stock
4.64% Not subject to mandatory
redemption PSCo $15,995,000 EXT Rule 42
159,950 shares extinguished
Preferred Stock
4.90% Not subject to mandatory
redemption PSCo $30,000,000 EXT Rule 42
300,000 shares extinguished
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Extinguished
Name of Company (EXT)
Acquiring, Or Held (H) Authorization or Exemption
Redeeming or for (5)
Name of Issuer and Retiring Further
Title of Issue Securities Consideration Disposition
(1) (2) (3) (4)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PSCo (continued)
Preferred Stock
7.15% Not subject to mandatory PSCo $25,000,000 EXT Rule 42
redemption
250,000 shares extinguished
Preferred Stock
7.50% Subject to mandatory
redemption PSCo $21,600,000 EXT Rule 42
216,000 shares extinguished
Preferred Stock
8.40% Subject to mandatory
redemption PSCo $20,229,400 EXT Rule 42
202,294 shares extinguished
Preferred Stock
8.40% Not subject to mandatory
redemption PSCo $35,000,000 EXT Rule 42
1,400,000 shares extinguished
PSCCC
Unsecured Medium-Term Notes,
Series A,
5.91% due October 13, 1998 PSCCC $20,000,000 EXT Rule 42
(Retired at maturity)
Unsecured Medium-Term Notes,
Series A,
6.05% due November 24, 1998 PSCCC $10,000,000 EXT Rule 42
(Retired at maturity)
Unsecured Medium-Term Notes,
Series A,
6.01% due November 27, 1998 PSCCC $10,000,000 EXT Rule 42
(Retired at maturity)
Unsecured Medium-Term Notes,
Series A,
6.10% due November 30, 1998 PSCCC $20,000,000 EXT Rule 42
(Retired at maturity)
Unsecured Medium-Term Notes,
Series A,
6.03% due December 1, 1998 PSCCC $10,000,000 EXT Rule 42
(Retired at maturity)
Unsecured Medium-Term Notes,
Series A,
6.07% due December 1, 1998 PSCCC $5,000,000 EXT Rule 42
(Retired at maturity)
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
Extinguished
Name of Company (EXT)
Acquiring, Or Held (H) Authorization or Exemption
Redeeming or for (5)
Name of Issuer and Retiring Further
Title of Issue Securities Consideration Disposition
(1) (2) (3) (4)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PSCCC (continued)
Unsecured Medium-Term Notes,
Series A,
6.14% due December 15, 1998 PSCCC $25,000,000 EXT Rule 42
(Retired at maturity)
1480
Secured Note, 13.50%
due October 1, 2016 1480 $400,312 EXT Rule 42
NCE
Guarantee for e prime and
Texas-Ohio Gas NCE $5,000,000 EXT Rule 42
Expired December 1, 1998
e prime
Guarantee for Texas-Ohio Gas
Expired December 1, 1998 e prime $4,000,000 EXT Rule 42
Guarantee for Texas-Ohio Gas
Expired December 31, 1998 e prime $700,000 EXT Rule 42
Guarantee for Texas-Ohio Gas
Expired June 30, 1998 e prime $2,500,000 EXT Rule 42
</TABLE>
10
<PAGE>
ITEM 5. INVESTMENTS IN SECURITIES OF NON-SYSTEM COMPANIES
For each system company, excluding subsidiaries exempted from regulation as such
pursuant to Section 3(d), securities representing obligations of customers
incurred in the ordinary course of business, and temporary cash report as of the
end of the year:
1. Aggregate amount of investments in persons operating in the retail service
area of the owners, or of its subsidiaries. State the number of persons included
and describe generally the kind of persons included. If investments were made
pursuant to State law, cite the State law under which they were made. NONE
2. With respect to securities owned not included in category 1, state the name
of the issuer, describe the securities, including number of shares and
percentage of voting power as to equity securities, indicate the general nature
of the issuer's business, and state the owner's book value of the investment.
NONE
ITEM 6. OFFICERS AND DIRECTORS
Legend of Abbreviations
CB Chairman of the Board
VC Vice Chairman of the Board
D Director
CEO Chief Executive Officer
P President
COO Chief Operating Officer
CFO Chief Financial Officer
EVP Executive Vice President
SVP Senior Vice President
VP Vice President
GC General Counsel
C Controller
S Secretary
AS Assistant Secretary
T Treasurer
AT Assistant Treasurer
Address Codes
(a) 1225 17th Street, Denver, CO 80202
(b) 600 So. Tyler, Amarillo, TX 79101
(c) 108 West 18th Street, Cheyenne, WY 82003
(d) 500 So. Taylor, Suite 1100,Lobby Box #254, Amarillo, TX 79101
(e) 5601 I-40 West, Amarillo, TX 79106
(f) 5855 Stapleton Dr., North, Suite 135, Denver, CO 80216
(g) 1331 17th Street, Denver, CO 80202
(h) 1003 West Cutting Blvd., Suite 110, Richmond, CA 94804
(i) 901 MoPac Expressway South, Suite 495, Austin, TX 78746
(j) 1235 Smith 7th Line, Peterborough, Ontario, Canada K9J 6X5
11
<PAGE>
Part I. Names, Principal Business Addresses, and Positions Held as of
December 31, 1998. (Continued)
<TABLE>
<CAPTION>
NCE PSCO 1480 PSR Green & SPS CLF&P WGI PSCCC NCS NC
Clear Enterprises
Lake
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Alexander, Eric (d)
Arigoni, Susan (a) VP,AS,AT
Assel, Michael D. (d)
Audet, Philip (i)
Bailey, Robert W. (h)
Barron, Eddie T. (e)
Blanton, Peggy S. (e)
Bloemen, Michael W. (f)
Bonavia, Paul J. (a) SVP,GC SVP,GC SVP,GC SVP SVP,GC
Borgshulte, Donald F.(a)
Brazille, Doris (e)
Brooks, William L. Jr.(i)
Brown, Wayne N. (h)
Brunetti, Wayne H.(a) D,P,COO,VC P,D,CEO,VC P,D,CB D,P,CB D,CEO,VC D,CEO,VC D,P,CB D,P,CEO,VC D,P,CEO,VC
Bunch, Doyle (a) D SVP
Burgess, C. Coney D
1608 So. Polk
Amarillo, TX 79102
Cann, Howard (h)
Conklin, Danny H. D
801 So. Fillmore,
Suite 730
Amarillo, TX 79101
Corbell, Royce (e)
Dallinger, Curtis C.(f)
Doll, Laura R. (i)
Drake, George W. (g)
Fairbanks, David (d)
Felker, Nancy E. (a) AT AT AT AT AT
Figoli, Darla (g)
Forbess, Giles M. D
Flint and Clovis Road
Lubbock, TX 79415
Fowke, Ben G. III (g)
Gibson, Gary L. (b) VP
Gill, Natalie (h)
Greer, Gayle L. D
1624 Market St., #300
Denver, CO 80202
Golden, Jerry W. (i)
Hamilton, Henry (b) EVP,D EVP,D EVP,D
Hart, Cathy J. (a) S S S S S AS S S S S S
Helton, Bill D. (a) D,CB,CEO D,CB D,CB CB,D CB, D CB,D
Hemminghaus, R.R. D
6000 N. Loop 1604 W
San Antonio, TX 78249
Henderson, Billy B. (e)
Hermesmeyer, Jerry (d)
Hirschfeld, A. Barry D
5200 Smith Road
Denver, CO 80216
Jackson, Brian P. (a) SVP D,SVP,CFO D,T,CFO D,CB,P SVP,CFO D,T D,CB,P SVP D,T,CFO
Kaysen, Richard ( c ) D,P,COO
Kelly, Richard C. (a) EVP,CFO D,EVP D D D,T D,EVP D D,T EVP,CFO,D D,EVP
King, Ross (a) D VP
Krattenmaker, Kelly J.(g)
Madden, Teresa S. (a) C C C C C
McAfee, John (b) VP
McCullough,Mike (e)
McMurtry, Michael (i)
McNabb, Barbara (e)
Miller, Monte L. (d)
Mock, J. Howard D
2906 Broadway, NE
Albuquerque, NM 87107
Nelson, Paul A. (f)
Nicholson, Will F. D
918 17th Street,
3rd Floor
Denver, CO 80202
</TABLE>
12
<PAGE>
Part I. Names, Principal Business Addresses, and Positions Held as of
December 31, 1998. (Continued)
<TABLE>
<CAPTION>
NCE PSCO 1480 PSR Green & SPS CLF&P WGI PSCCC NCS NC
Clear Enterprises
Lake
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Niehoff, Michael E.
550 15th Street,
Suite 800
Denver, CO 80202
Patton, Richard (i)
Peterson, Carol (a) AS AS AS AS AS AS AS AS AS AS
Petillo, J. T. (a) EVP EVP EVP EVP
Pilcher, Susan C. (f)
Pomeroy, William J. (c) AS
Pope, Danny B. (e)
Powers. J. Michael D
1003 East Lincolnway
Cheyenne, WY 82001
Pritchard, Michael D.(a) AT AT AT AT
Pullum, Mary (b) AS S AS
Rabago, Karl R. (i)
Read, Mark P. ( c ) AS
Redd, Ershel, C. Jr
800 Gessner, Suite 1030
Houston, TX 77024
Rodosky, Dan (j)
Rogers, Bob (d)
Schleifer, Paul (h)
Schwartz, Charles J. (j)
Slifer, David K. (h)
Slifer, Rodney E. D
230 Bridge Street
Vail, CO 81657
Splawn, Gwen (e)
Steinhilper, James D.(d) T T T AT AT D T
Stephens, W. Thomas D
925 W. Georgia St.
Vancouver B.C. V6C 3L2
Taylor, Marilyn (a) D D VP
Tointon, Robert G. D
1 Greeley National Plaza
822 7th Street, Suite 700
Greeley, CO 80631
Tutko, Donald (i)
Whitcomb,Stephen H. (a) AS AS AS AS AS AS AS
Whitney, Jon (f)
Wilks, David (b) D,EVP P,COO,D D D EVP,D
Williams, Dale (d)
Williams, Jimmy D. (e)
Yanez, Alberto (i)
Yeager, Robert W. D, VP
550 15th Street
Denver, CO 80202
Zarnikau, Jay (i)
</TABLE>
13
<PAGE>
Part I. Names, Principal Business Addresses, and Positions Held as of
December 31, 1998. (Continued)
<TABLE>
<CAPTION>
NC Quixx Quixx KES KES Quixx Quixx Quixx Quixx Quixx Quixx
Cadence Corp Jamaica Montego Jamaica Jamaica Carolina Mustang WPP 94 Power Resources
Pwr Services
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Alexander, Eric (d) CB,P,D
Arigoni, Susan (a)
Assel, Michael D. (d) VP VP VP VP VP
Audet, Philip (i)
Bailey, Robert W. (h)
Barron, Eddie T. (e)
Blanton, Peggy S. (e)
Bloemen, Michael W.(f)
Bonavia, Paul J. (a)
Borgshulte, Donald F.(a)
Brazille, Doris (e)
Brooks, William L. Jr.(i)
Brown, Wayne N. (h)
Brunetti, Wayne H.(a) D,VC,P,CEO VC,D
Bunch, Doyle (a)
Burgess, C. Coney
1608 So. Polk
Amarillo, TX 79102
Cann, Howard (h)
Conklin, Danny H. D
801 So. Fillmore,
Suite 730
Amarillo, TX 79101
Corbell, Royce (e)
Dallinger, Curtis C.(f)
Doll, Laura R. (i)
Drake, George W. (g)
Fairbanks, David (d) VP
Felker, Nancy E. (a) AT
Figoli, Darla (g)
Forbess, Giles M.
Flint and Clovis Road
Lubbock, TX 79415
Fowke, Ben G. III (g)
Gibson, Gary L. (b)
Gill, Natalie (h)
Greer, Gayle L.
1624 Market St., #300
Denver, CO 80202
Golden, Jerry W. (i)
Hamilton, Henry (b) P,CEO,D CB,P,D CB,P,D CB,P,D CB,P,D P,CEO,D P,CEO,D
Hart, Cathy J. (a) S
Helton, Bill D. (a) D,CB CB,D CB,D
Hemminghaus, R.R.
6000 N. Loop 1604 W
San Antonio, TX 78249
Henderson, Billy B. (e)
Hermesmeyer, Jerry (d) D
Hirschfeld, A. Barry
5200 Smith Road
Denver, CO 80216
Jackson, Brian P. (a)
Kaysen, Richard (c)
Kelly, Richard C.(a) D,T D
King, Ross (a)
Krattenmaker, Kelly J.(g)
Madden, Teresa S. (a)
McAfee, John (b)
McCullough,Mike (e)
McMurtry, Michael (i)
McNabb, Barbara (e)
Miller, Monte L. (d) D,S,T
Mock, J. Howard
2906 Broadway, NE
Albuquerque, NM 87107
Nelson, Paul A. (f)
Nicholson, Will F.
918 17th Street,
3rd Floor
Denver, CO 80202
Niehoff, Michael E.
550 15th Street, Suite 800
Denver, CO 80202
</TABLE>
14
<PAGE>
Part I. Names, Principal Business Addresses, and Positions Held as of
December 31, 1998. (Continued)
<TABLE>
<CAPTION>
NC Quixx Quixx KES KES Quixx Quixx Quixx Quixx Quixx Quixx
Cadence Corp Jamaica Montego Jamaica Jamaica Carolina Mustang WPP 94 Power Resources
Pwr Services
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Patton, Richard (i)
Peterson, Carol (a) AS
Petillo, J. T. (a) D,EVP
Pilcher, Susan C. (f)
Pomeroy, William J. ( c )
Pope, Danny B. (e)
Powers. J. Michael
1003 East Lincolnway
Cheyenne, WY 82001
Pritchard, Michael D.(a)
Pullum, Mary (b) S AS S S S S S S AS
Rabago, Karl R. (i)
Read, Mark P. ( c )
Redd, Ershel, C. Jr
800 Gessner,
Suite 1030
Houston, TX 77024
Rodosky, Dan (j)
Rogers, Bob (d) D,VP
Schleifer, Paul (h)
Schwartz, Charles J. (j)
Slifer, David K. (h)
Slifer, Rodney E.
230 Bridge Street
Vail, CO 81657
Splawn, Gwen (e)
Steinhilper,James D.(d) AT VP,T,AS VP,T,AS,D VP,T,AS VP,T,AS VP,T, VP,T, VP,T,AS,D
AS,D AS,D
Stephens, W. Thomas
925 W. Georgia St.
Vancouver B.C. V6C 3L2
Taylor, Marilyn (a)
Tointon, Robert G.
1 Greeley National Plaza
822 7th Street,
Suite 700
Greeley, CO 80631
Tutko, Donald (i)
Whitcomb,Stephen H. (a)
Whitney, Jon (f)
Wilks, David (b) D D
Williams, Dale (d) VP VP,D EVP,COO
Williams, Jimmy D. (e)
Yanez, Alberto (i)
Yeager, Robert W.
550 15th Street
Denver, CO 80202
Zarnikau, Jay (i)
</TABLE>
15
<PAGE>
Part I. Names, Principal Business Addresses, and Positions Held as of
December 31, 1998. (Continued)
<TABLE>
<CAPTION>
Quixx Quixxlin UE UUS Precision Natural NCI e prime Young Texas- Texas- e prime
Borger Corp Resource Fuels Gas Ohio Ohio operat-
Cogen Storage Gas Pipe ing
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Alexander, Eric (d)
Arigoni, Susan (a)
Assel, Michael D.(d) VP VP
Audet, Philip (i)
Bailey, Robert W. (h)
Barron, Eddie T. (e) VP,COO D,CB,
CEO
Blanton, Peggy S. (e) S
Bloemen, Michael W. (f) VP
Bonavia, Paul J. (a) D,P
Borgshulte, Donald F. (a)
Brazille, Doris (e) D
Brooks, William L. Jr. (i)
Brown, Wayne N. (h)
Brunetti, Wayne H. (a) VC,D D D,CB D,VC D
Bunch, Doyle (a) D
Burgess, C. Coney
1608 So. Polk
Amarillo, TX 79102
Cann, Howard (h)
Conklin, Danny H.
801 So. Fillmore,
Suite 730
Amarillo, TX 79101
Corbell, Royce (e) D
Cox, Dwayne P,COO
Dallinger, Curtis C. (f) P
Doll, Laura R. (i)
Drake, George W. (g)
Fairbanks, David (d)
Felker, Nancy E. (a)
Figoli, Darla (g) T T
Forbess, Giles M.
Flint and Clovis Road
Lubbock, TX 79415
Fowke, Ben G. III (g) VP T D,S,T
Gibson, Gary L. (b)
Gill, Natalie (h)
Greer, Gayle L.
1624 Market St., #300
Denver, CO 80202
Golden, Jerry W. (i)
Hamilton, Henry (b) CB,P,D CB,P,D
Hart, Cathy J. (a) S S S S S
Helton, Bill D. (a) D,CB D,CB D CB,D
Hemminghaus, R.R.
6000 N. Loop 1604 W
San Antonio, TX 78249
Henderson, Billy B. (e) VP,T,AS
Hermesmeyer, Jerry (d) D
Hirschfeld, A. Barry
5200 Smith Road
Denver, CO 80216
Jackson, Brian P. (a) T D,T
Kaysen, Richard ( c )
Kelly, Richard C. (a) D D D CEO, D,CB D,CB CB,D D
P,D
King, Ross (a)
Krattenmaker, Kelly J.(g) P CEO, CEO, D,P
EVP VC,D D,VC
Madden, Teresa S. (a)
McAfee, John (b)
McCullough,Mike (e) D
McMurtry, Michael (i)
McNabb, Barbara (e) S
Miller, Monte L. (d)
Mock, J. Howard D
2906 Broadway, NE
Albuquerque, NM 87107
Nelson, Paul A. (f) VP,S
Nicholson, Will F.
918 17th Street,
3rd Floor
Denver, CO 80202
</TABLE>
16
<PAGE>
Part I. Names, Principal Business Addresses, and Positions Held as of
December 31, 1998. (Continued)
<TABLE>
<CAPTION>
Quixx Quixxlin UE UUS Precision Natural NCI e prime Young Texas- Texas- e prime
Borger Corp Resource Fuels Gas Ohio Ohio operat-
Cogen Storage Gas Pipe ing
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Niehoff, Michael E. VP
550 15th Street, Suite 800
Denver, CO 80202
Patton, Richard (i)
Peterson, Carol (a) AS AS AS AS AS AS
Petillo, J. T. (a)
Pilcher, Susan C. (f) VP,T
Pomeroy, William J. (c)
Powers. J. Michael
1003 East Lincolnway
Cheyenne, WY 82001
Pritchard, Michael D.(a)
Pullum, Mary (b) S S S
Rabago, Karl R. (i)
Read, Mark P. ( c )
Redd, Ershel, C. Jr VP P,COO, P,COO,
D D
800 Gessner,
Suite 1030
Houston, TX 77024
Rodosky, Dan (j)
Rogers, Bob (d) D,VP
Schleifer, Paul (h)
Schwartz, Charles J. (j)
Slifer, David K. (h)
Slifer, Rodney E.
230 Bridge Street
Vail, CO 81657
Splawn, Gwen (e) P,COO
Steinhilper,James D.(d) VP,T, VP,T,
AS,D AS,D
Stephens, W. Thomas
925 W. Georgia St.
Vancouver B.C. V6C 3L2
Taylor, Marilyn (a)
Tointon, Robert G.
1 Greeley National Plaza
822 7th Street, Suite 700
Greeley, CO 80631
Tutko, Donald (i)
Whitcomb,Stephen H. (a) AS
Whitney, Jon (f) VC
Wilks, David (b) D D
Williams, Dale (d)
Williams, Jimmy D. (e) VP D
Yanez, Alberto (i)
Yeager, Robert W.
550 15th Street
Denver, CO 80202
Zarnikau, Jay (i)
</TABLE>
17
<PAGE>
Part I. Names, Principal Business Addresses, and Positions Held as of
December 31, 1998. (Continued)
<TABLE>
<CAPTION>
NC NCE Plan- Plan- Plan- Plan- Plan- Plan- Plan- Plan- Plan- Planergy
Centrus Commun ergy ergy ergy ergy ergy ergy ergy ergy ergy Power II
Group Limited Delaware Services Energy Srvc Srvc Srvc
Srvc USA TX Houston
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Alexander, Eric (d)
Arigoni, Susan (a)
Assel, Michael D. (d)
Audet, Philip (i) VP
Bailey, Robert W. (h) VP VP VP VP VP
Barron, Eddie T. (e)
Blanton, Peggy S. (e)
Bloemen, Michael W. (f)
Bonavia, Paul J. (a)
Borgshulte, Donald F. (a) VP
Brazille, Doris (e)
Brooks, William L. Jr. (i) VP
Brown, Wayne N. (h) D,P,CEO
Brunetti, Wayne H.(a) D,VC, D,CB D,CB D D,CB D,CB D,CB D,CB D,CB D,CB
P,CEO
Bunch, Doyle (a) D
Burgess, C. Coney
1608 So. Polk
Amarillo, TX 79102
Cann, Howard (h) D,P,CEO D,P,CEO P P P,CEO P,CEO
Conklin, Danny H.
801 So. Fillmore,
Suite 730
Amarillo, TX 79101
Corbell, Royce (e)
Dallinger, Curtis C. (f)
Doll, Laura R. (i) SVP
Drake, George W. (g)
Fairbanks, David (d)
Felker, Nancy E. (a)
Figoli, Darla (g)
Forbess, Giles M.
Flint and Clovis Road
Lubbock, TX 79415
Fowke, Ben G. III (g)
Gibson, Gary L. (b) D,VP AT
Gill, Natalie (h) AT AT AT AT
Greer, Gayle L.
1624 Market St., #300
Denver, CO 80202
Golden, Jerry W. (i) VP
Hamilton, Henry (b)
Hart, Cathy J. (a) S S S S S S S S S S S S
Helton, Bill D. (a) D,CB
Hemminghaus, R.R.
6000 N. Loop 1604 W
San Antonio, TX 78249
Henderson, Billy B. (e)
Hermesmeyer, Jerry (d)
Hirschfeld, A. Barry
5200 Smith Road
Denver, CO 80216
Jackson, Brian P. (a) D CFO,T T T T T T T T T T T
Kaysen, Richard ( c )
Kelly, Richard C. (a) D,T D,P D,VP D D D D D D D,VP
King, Ross (a)
Krattenmaker,Kelly J.(g)
Madden, Teresa S. (a)
McAfee, John (b)
McCullough,Mike (e)
McMurtry, Michael (i) D,SVP P
McNabb, Barbara (e)
Miller, Monte L. (d)
Mock, J. Howard
2906 Broadway, NE
Albuquerque, NM 87107
Nelson, Paul A. (f)
Nicholson, Will F.
918 17th Street,
3rd Floor
Denver, CO 80202
</TABLE>
18
<PAGE>
Part I. Names, Principal Business Addresses, and Positions Held as of
December 31, 1998. (Continued)
<TABLE>
<CAPTION>
NC NCE Plan- Plan- Plan- Plan- Plan- Plan- Plan- Plan- Plan- Planergy
Centrus Commun ergy ergy ergy ergy ergy ergy ergy ergy ergy Power II
Group Limited Delaware Services Energy Srvc Srvc Srvc
Srvc USA TX Houston
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Niehoff, Michael E.
550 15th Street, Suite 800
Denver, CO 80202
Patton, Richard (i) VP
Peterson, Carol (a) AS AS AS AS AS AS AS AS AS AS AS AS
Petillo, J. T. (a) D,VP D,P D,SVP D,CB VP D,VP D,VP D,VP D,VP D,VP D,P
Pilcher, Susan C. (f)
Pomeroy, William J.(c)
Pope, Danny B. (e)
Powers. J. Michael
1003 East Lincolnway
Cheyenne, WY 82001
Pritchard, Michael D. (a)
Pullum, Mary (b)
Rabago, Karl R. (i) VP
Read, Mark P. (c)
Redd, Ershel, C. Jr
800 Gessner, Suite 1030
Houston, TX 77024
Rodosky, Dan (j) D
Rogers, Bob (d)
Schleifer, Paul (h) VP SVP SVP SVP SVP
Schwartz, Charles J. (j) D
Slifer, David K. (h) VP VP VP VP VP
Slifer, Rodney E.
230 Bridge Street
Vail, CO 81657
Splawn, Gwen (e)
Steinhilper, James D. (d)
Stephens, W. Thomas
925 W. Georgia St.
Vancouver B.C. V6C 3L2
Taylor, Marilyn (a)
Tointon, Robert G.
1 Greeley National Plaza
822 7th Street, Suite 700
Greeley, CO 80631
Tutko, Donald (i) VP
Whitcomb,Stephen H. (a)
Whitney, Jon (f)
Wilks, David (b)
Williams, Dale (d)
Williams, Jimmy D. (e)
Yanez, Alberto (i) VP
Yeager, Robert W.
550 15th Street
Denver, CO 80202
Zarnikau, Jay (i) VP
</TABLE>
19
<PAGE>
Part II. Financial Connections
As of December 31, 1998
Name and Location Position Applicable
Name of Officer of Held in Financial Exemption
or Director Financial Institution Institution Rule
(1) (2) (3) (4)
- --------------------------------------------------------------------------------
C. Coney Burgess Herring Bancorp, Inc., Vernon, TX Chairman 70 (a)
Herring National Bank, Clarendon, TX Director
Herring National Bank, Vernon, TX Director
Danny H. Conklin First National Bank of Amarillo
Amarillo, TX Director 70 (a)
Giles M. Forbess State National Bank of West Texas
Lubbock, TX Director 70 (a)
J. Howard Mock Norwest Banks New Mexico Advisory
Albuquerque, NM Director 70 (a)
Rodney E. Slifer Alpine Banks of Colorado Director 70 (a)
W. Thomas Stephens Putnam Securities Director 70 (b)
Part III. (a) Executive Compensation and (e) Participation in Bonus and
Profit-sharing Arrangements and Other Benefits
Information for items: (a) the compensation of directors and executive
officers of the system companies and (e) their participation in bonus and
profit-sharing arrangements and other benefits is contained under COMPENSATION
OF EXECUTIVE OFFICERS AND DIRECTORS in the NCE 1999 Proxy Statement (pages
9-20), which is incorporated herein by reference, and includes the executive
compensation information for Messrs. Helton, Brunetti, Kelly, Bonavia and Wilks.
Executive compensation information for all other executive officers and
directors of system companies is presented herein. See Item 6. Part I "Names,
Addresses, Positions Held", above for the information on the principal positions
of the system companies executives ("Executive Officers").
20
<PAGE>
As shown in Item 6. Part I, most of the Executive Officers are employed by
several NCE companies. Because it would be impracticable to allocate such
officers' salaries among the various companies, the following tables set forth
information concerning the total compensation paid or awarded in 1998 and 1997.
<TABLE>
<CAPTION>
Summary Compensation Table
====================================================================================================
Annual Compensation Long-Term All
Name Compensation(c) Other
Compen-
sation
($)(d)(e)
-----------------------------------------------------------------------------
Year Awards Payouts
Salary Bonus Other Restrict Securities LTIP
($) ($)(a) Annual -ed Underlying Payouts
Compen Stock Options/ ($)
-sation Awards SAR's (#)
($)(b) ($)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Henry H. Hamilton 1998 200,000 75,098 9,000 0 0 0 10,724
1997 174,583 35,673 49,125 0 66,000 0 11,039
Cathy J. Hart 1998 45,500 27,577 0 0 3,300 0 1,029
Brian P. Jackson 1998 230,000 94,901 9,000 0 0 0 11,334
1997 9,584 0 0 0 75,000 0 30,000
Teresa S. Madden 1998 144,000 44,755 9,000 0 0 0 6,140
1997 106,257 8,365 3,000 0 26,000 0 5,377
Tom Petillo 1998 220,000 90,775 2,250 0 52,600 0 46,118
James D. Steinhilper 1998 144,000 47,275 9,000 0 0 0 17,628
1997 113,495 8,793 57,000 0 26,000 0 2,914
=================================================================================
</TABLE>
(a)The amounts in this column were earned under the annual incentive program
described under "Annual Incentives" in the NCE 1999 Proxy Statement.
(b)The amounts shown for this column include flexible perquisite allowance
benefits of $9,000 each. The amount for Mr. Petillo was prorated for the
portion of the year he resided in the United States.
(c)The amount shown for Mr. Petillo in 1998 consists of stock option awards
under the NCE Omnibus Incentive Plan. This award represented a three-year
front-loaded grant, such that three year's worth of annual stock option
grants were awarded with no option grants expected to be awarded in 1999,
2000 or 2001. A similar award was made to other officers during 1997. Ms.
Hart received stock options as of her date of hire. No stock option grants
were made to any other executive officer during 1998.
(d)No performance cash awards under the Value Creation Plan were paid during
1998.
21
<PAGE>
(e)The amounts represented in the "All Other Compensation" column for 1998
reflect the total of employer matching contributions made under the
Company's employee savings plans and non-qualified savings plans and taxable
premiums paid by the Company, as detailed in the table below: In addition,
the amount for Mr. Petillo included $38,704 in living allowances paid to him
during his assignment in the United Kingdom.
-----------------------------------------------------------------------
Name Contributions to Contributions to Insurance
Employee Savings the Non-Qualified Premiums ($)
Plan ($) Savings Plans ($)
-----------------------------------------------------------------------
Henry H. Hamilton 2,500 1,500 6,724
-----------------------------------------------------------------------
Cathy J. Hart 872 0 157
-----------------------------------------------------------------------
Brian P. Jackson 5,750 4,600 984
-----------------------------------------------------------------------
Teresa S. Madden 5,400 0 740
-----------------------------------------------------------------------
Tom Petillo 5,504 0 1,910
-----------------------------------------------------------------------
James D. Steinhilper 1,800 0 15,828
-----------------------------------------------------------------------
Option/SAR Grants in Last Fiscal Year
=============================================================================
Name Individual Grants
----------------------------------------------------------
Number
of
Securities
Underlying % of Total
Options/ Options/SARs Exercise Grant Date
SARs Granted to or Base Expira Present
Granted Employees in Price -tion Value
(#)(a) Fiscal year ($/Share) Date ($)(b)
- -----------------------------------------------------------------------------
Tom Petillo 16,600 2.91% 46.3125 2/23/08 68,060
36,000 6.31% 46.6875 9/30/08 147,960
- -----------------------------------------------------------------------------
Cathy J. Hart 3,300 0.58% 46.2500 6/22/08 14,124
- --------------------------------------------------------------------------------
(a)The options with an exercise price of $46.3125 were granted by the
Compensation Committee of the NCE Board on February 23, 1998. The options
were intended to vest and be exercisable only to the extent of 33 1/3% on the
first anniversary date of the grant and to the same extent on the second
anniversary and third anniversary. All rights to exercise were intended to be
cumulative to the extent not exercised. All options expire 10 years from the
date of grant.
The options with an exercise price of $46.6875 were granted by the NCE
Compensation Committee on September 10, 1998 in connection with Mr. Petillo's
appointment as President of the Company's Retail business unit. The options
vest and may be fully exercisable on the first anniversary date of the grant.
All options expire 10 years from the date of the grant.
(b)The values in the column are estimates based upon values of $4.10 for the
$46.3125 options, $4.28 for the $46.2500 options and $4.11 for the $46.6875
options. These amounts represent a theoretical present value based on the
Black-Scholes Option Pricing Model and assumptions for option life, risk-free
interest rate, stock volatility and dividend yield. Executives may not sell
or assign these options, which have value only to the extent of the future
stock price appreciation. These amounts or any of the assumptions should not
be used to predict future performance of the stock price or dividends.
22
<PAGE>
===========================================================================
Aggregated Option/SAR Exercises in Last Fiscal Year
and FY-End Option/SAR Values
- ---------------------------------------------------------------------------
Number of Value of
Securities Unexercised
Underlying In-the-Money
Unexercised Options/SARs
Options/SARs at FY-End ($)
Name Shares Value Realized at FY-End (#) (a)
Acquired on ($)
Exercise (#)
- ---------------------------------------------------------------------------
Exercisable/ Exercisable/
Unexercisable Unexercisable
- ---------------------------------------------------------------------------
Henry H. Hamilton 0 0 66,531/ 478,914/
1,363 22,238
- ---------------------------------------------------------------------------
Cathy J. Hart 0 0 0/ 0/
3,300 8,250
- ---------------------------------------------------------------------------
Brian P. Jackson 0 0 75,000/ 281,250/
0 0
- ---------------------------------------------------------------------------
Teresa S. Madden 0 0 28,550/ 229,894/
0 0
- ---------------------------------------------------------------------------
Tom Petillo 0 0 0/ 0/
52,600 114,713
- ---------------------------------------------------------------------------
James D. Steinhilper 20,000 167,598 6,000/ 42,750/
- ---------------------------------------------------------------------------
(a)Options values were calculated based on a $48.75 closing price of NCE common
stock as listed on the NYSE at December 31, 1998.
23
<PAGE>
================================================================================
Long-Term Incentive Plans - Awards in Last Fiscal Year (a)
================================================================================
Name Number Performance Estimated Future Payouts Under
of or Other Non-Stock Price-Based Plans
Shares, Period Until
Units Maturation or
or Payout
Other
Rights
=================================
Threshold Target Maximum
($) (b) ($) ($)
================================================================================
Henry Hamilton 43,333 1/1/98 - 0 43,333 129,999
12/31/00
================================================================================
Cathy J. Hart 8,439 1/1/98 - 0 8,439 25,317
12/31/00
================================================================================
Brian P. Jackson 49,833 1/1/98 - 0 49,833 149,499
12/31/00
================================================================================
Teresa S. Madden 16,800 1/1/98 - 0 16,800 50,400
12/31/00
================================================================================
Tom Petillo 47,667 1/1/98 - 0 47,667 143,001
12/31/00
================================================================================
James D. 16,800 1/1/98 - 0 16,800 50,400
Steinhilper 12/31/00
================================================================================
(a)The amounts in this table represent awards made under the Value Creation
Plan described under "Long-term Incentives" in the Report of the Compensation
Committee on Executive Compensation in the NCE 1999 Proxy Statement.
(b)If the threshold or the 40th percentile is achieved, the payout could range
between zero and the target amount.
24
<PAGE>
The following table shows estimated aggregate pension benefits payable to
a covered participant from the qualified defined benefit plans maintained by NCE
and its subsidiaries and the NCE Supplemental Executive Retirement Plan (the
"SERP").
======================================================================
Pension Plan Table
======================================================================
Remuneration Years of Service
10 15 20 or more years
- ----------------------------------------------------------------------
$125,000 $34,375 $51,563 $68,750
150,000 41,250 61,875 $82,500
175,000 48,125 72,188 96,250
200,000 55,000 82,500 110,000
225,000 61,875 92,813 123,750
250,000 68,750 103,125 137,500
275,000 75,625 113,438 151,250
300,000 82,500 123,750 165,000
350,000 96,250 144,375 192,500
400,000 110,000 165,000 220,000
450,000 123,750 185,625 247,500
500,000 137,500 206,250 275,000
600,000 165,000 247,500 330,000
700,000 192,500 288,750 385,000
800,000 220,000 330,000 440,000
900,000 247,500 371,250 495,000
1,000,000 275,000 412,500 550,000
======================================================================
The benefits listed in the Pension Plan Table are not subject to any
deduction or offset. The compensation used to calculate SERP benefits is base
salary plus annual incentive. Such covered compensation is reflected in the
Salary and Bonus columns of the Summary Compensation Table for 1998.
The SERP benefit accrues over 20 years and is equal to (a) 55% of the
highest three years covered compensation of the five years preceding retirement
or termination minus (b) the qualified plan benefit. The SERP benefit is payable
as an annuity for 20 years, or as a single lump-sum amount equal to the
actuarial equivalent present value of the 20 year annuity. Benefits are payable
at age 62, or as early as age 55 reduced 5% for each year that the benefit
commencement date proceeds age 62.
The estimated years of service under the SERP as of December 31, 1998 were
as follows:
Henry H. Hamilton 35
Brian P. Jackson 1
Teresa S. Madden 19
Tom Petillo 1
James D. Steinhilper 21
25
<PAGE>
Part III (b) Security Ownership of Management and Directors
Executive officers' and directors' interest in system companies, including
options or other rights to acquire securities is contained under Security
Ownership of Management and Directors in the NCE 1999 Proxy Statement (pages
7-8), which is incorporated herein by reference.
Part III (c) Contracts and Transactions with the System Companies
None.
Part III (d) Indebtedness to System Companies
None.
Part III (f) Rights to Indemnity
The Restated Certificate of Incorporation of NCE provides that the
Corporation shall indemnify its directors and officers to the fullest extend
authorized by the General Corporation Laws of the State of Delaware, as amended
from time to time. The Restated Certificate of Incorporation provides that NCE
may maintain insurance (at NCE's expense), to protect directors and officers
against such expense, liability or loss, whether or not the Corporation would
have the power to indemnify such person against such expense, liability or loss
under the General Corporation Laws of the State of Delaware.
26
<PAGE>
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS
(1)NCE and its subsidiaries have established political action committees and
have incurred, in connection with the provisions of the Federal Election
Campaign Act, certain costs for the administration of such committees.
During 1998 PSCO made political relted contributions totaling $25,000, in
accordance with state election laws.
(2)Expenditures, disbursements, or payments for the account of any citizens
group or public relations counsel are summarized below. Where applicable,
amounts have been aggregated.
<TABLE>
<CAPTION>
Name of Name or Number
Company of Beneficiaries Purpose(s) Account(s) Charged Amount
- ------- ---------------- ---------- ------------------ ------
<S> <C> <C> <C> <C>
PSCo Colorado Energy Assistance Foundation Civic Activity Donations $ 2,000,000
Edison Electric Institute Research Donations 146,231
New Century Energies Foundation Community Welfare,
Education, Civic
Activity Donations 1,386,043
Colorado State Fair Civic Activity Donations 25,000
University of Colorado Education Donations 12,500
Downtown Denver Partnership Civic Activity Donations 15,250
Denver Metro Chamber of Commerce Civic Activity Donations 100,000
Chambers of Commerce - 45 Items less
than $10,000 Civic Activity Donations 33,340
Miscellaneous - 167 Items less than $10,000 Community Welfare,
Education, Research
and Civic Activity Donations 278,876
-------
Total $ 3,997,240
===========
27
<PAGE>
SPS Edison Electric Institute Research Donations $ 39,731
New Century Energies Foundation Community Welfare,
Education, Civic
Activity Donations 619,524
Association of Electrical Companies Research, Political
of Texas Activity Donations 70,564
New Mexico Business Development Corp. Civic Activity Donations 75,000
Miscellaneous - 31 Items less than $10,000 Community Welfare,
Education, Research
& Education, and
Civic Activity Donations 32,679
------
Total $ 837,498
============
CLF&P New Century Energies Foundation Community Welfare,
Education Donations $ 23,919
Miscellaneous - 80 Items less than $10,000 Community Welfare,
Education, Research
& Education, and
Civic Activity Donations 21,944
------
Total $ 45,863
============
</TABLE>
28
<PAGE>
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS
Part I. Contracts for services, including engineering or construction services,
or goods supplied or sold between system companies are as follows:
<TABLE>
<CAPTION>
Company Company In Effect
Nature of Performing Receiving Compensation on December 31st
Transactions Service Service (in thousands) Date of Contract (Yes or No)
------------ ------- ------- -------------- ---------------- -----------
<S> <C> <C> <C> <C> <C>
Engineering UE PSCo $55,827 Jan. - Dec. 1998 Yes
Consulting
Svcs
Engineering UE Quixx Corp 56 Jan. - Dec. 1998 Yes
Consulting
Svcs
Engineering UE SPS 6,465 Jan. - Dec. 1998 Yes
Consulting
Svcs
Engineering UE NCS 1,210 Jan. - Dec. 1998 Yes
Consulting
Svcs
Natural Gas Natural PSCo 500 June 1, 1992 Yes
Vehicle Fuels
Support
Natural Gas Natural e prime 237 March 1, 1997 Yes
for Resale at Fuels July 1, 1998
Fueling
Stations
Vehicle Natural PSCo 98 November 1, 1997 Yes
Conversions, Fuels
Maintenance & December 1, 1998
Repair
General Natural PSCo 390 August 27, 1990 Yes
Services Fuels
Electric & PSCo CLF&P 333 Jan - Dec. 1998 Yes
Gas Operations
& Maintenance
</TABLE>
Part II. Contracts to purchase services or goods between any system company (1)
any affiliate company (other than a system company) or (2) any other company in
which any officer or director of the system company receiving service under the
contract, is a partner or owns 5 percent or more of any class of equity
securities. NONE
Part III. Employment of any other person, by any system company, for the
performance on a continuing basis, of management, supervisory or financial
advisory services. NONE
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES
(a) Identify the company, its location and its business address. Describe the
facilities used for the generation, transmission and distribution of electric
energy for sale or for the distribution at retail of natural or manufactured
gas. Identify each system company that holds an interest in the company and
describe the interest held.
29
<PAGE>
EWGs
Jamaica Project: Quixx, 500 So. Taylor, Amarillo, TX 79101, indirectly
through subsidiaries owned a 42.3 MW oil-fired combustion turbine
generating plant located in Montego Bay, Jamaica, W.I. (the "Jamaica
Project"). The Jamaica Project is directly held by KES Jamaica, L.P. ("KES
Jamaica"). Quixx Jamaica, Inc., which is wholly-owned by Quixx, owns a 99%
limited partnership interest in KES Jamaica. KES Montego, Inc., which is
wholly-owned by Quixx, owns the remaining 1% general partnership interest
in KES Jamaica. The project discontinued operations December 31, 1997, and
was dismantled during 1998.
Mustang Station: Quixx, 500 So. Taylor, Amarillo, TX 79101, indirectly
owns 50% of the general and limited partnership interests in Denver City
Energy Associates, L.P. ("DCEA"), that will own a 50% interest in a 488 MW
gas-fired combined cycle facility, the Mustang Station project, under
construction near Denver City, Texas. When the plant is complete, Golden
Spread Electric Cooperative, Inc. will purchase an undivided 50% interest
in DCEA and will purchase the electricity produced therein. Mustang
Station will be brought on line in two phases: 288 MW from two combustion
turbines expected to be in service in mid-1999; and approximately 200 MW
from steam generation in early 2000.
Independent Power International Ltd: Formed under the laws of the Jersey
Isles, with a business office located at Akara Building, 24 Castro Street,
Wickhams Cay 1, Road Town, Tortola, British Virgin Islands, a subsidiary
owned 21.6% by NCI, wholly owns Corporacion Independiente de Energia
("CIESA"), an Argentine corporation, which in turn owns a 39% equity
interest in Central Piedra Buena S.A. ("Central Piedra Buena") also an
Argentine corporation. Central Piedra Buena wholly owns the Piedra Buena
Station ("Piedra Buena"). A description of Piedra Buena is provided below.
CIESA: Formed under the laws of the Republic of Argentina, with a business
office located at Alsina 495, Piso 10, Capital Federal, Buenos Aires,
Argentina 1107, owns a 39% interest in Central Piedra Buena, also an
Argentine corporation. Central Piedra Buena wholly owns Piedra Buena. A
description of Piedra Buena is provided below. CIESA is wholly owned by
IPI. NCI owns 21.6% of IPI.
Central Piedra Buena: Formed under the laws of the Republic of Argentina,
with a business office located at Av. Alicia Moreau de Justo 240, 3 Piso,
Buenos Aires, Argentina 1107, wholly owns Piedra Buena. Central Piedra
Buena is 39% owned by CIESA. CIESA is a wholly owned subsidiary of IPI.
IPI is a 21.6% owned subsidiary of NCI. Piedra Buena is a 620 MW steam
power station, capable of burning natural gas, oil, or coal. It presently
consists of two generating units, and associated equipment (including fuel
handling and storage facilities, and transmission facilities to
interconnect the facility with the Argentine power grid), buildings and
land. It is located in Bahia Blanca, Argentina. It is presently
contemplated that in the future Piedra Buena may be repowered by adding
approximately 500 MW of gas-fired turbine generators and associated heat
recovery steam generators.
FUCOs
Although not presently FUCOs, NCE has indicated to the Commission that it
expects to qualify the following two investments as FUCOs. Accordingly, it
lists them here as a FUCOs for reporting purposes.
Yorkshire Electricity: NCI owns 50% of the outstanding common stock of
Yorkshire Power Group Limited ("YPG"). AEP Resources owns the remaining
50%. YPG wholly owns Yorkshire Holdings which wholly owns Yorkshire
Electricity Group plc ("Yorkshire") an electric distribution company
located in the United Kingdom. The business address of Yorkshire is
Wetherby Road, Scarcroft, Leeds LS14 3HS, Great Britain. Yorkshire is one
of twelve regional electricity companies in England and Wales licensed to
distribute and supply electricity. It serves approximately 2.1 million
customers. Yorkshire's two principal businesses are the "distribution
business" and the "supply business". Yorkshire's distribution business
consists of the distribution of electricity to approximately two million
residential, commercial and industrial customers in its franchise area.
Yorkshire's supply business consists of the purchase and supply of
electricity primarily to customers within the franchise area. Yorkshire
owns, manages and operates the electricity distribution network within the
franchise area. Since the distribution business is substantially a
regulated monopoly, virtually all electricity supplied to
30
<PAGE>
consumers within the franchise area is transported through Yorkshire's
distribution network. Yorkshire purchases most of its electricity
requirements from third-party generators.
Independent Power Corporation plc: NCI owns a 21.6% interest in IPC, a
company organized under the laws of the United Kingdom. IPC is engaged in
the business of developing, owning and operating independent generation
projects outside of the U.S., primarily in Latin America and Central Asia.
IPC's primary focus to date has been on purchasing interests in and
operating existing projects.
(b). State the type and amount of capital invested in the company by the
registered holding company, directly or indirectly. Identify any debt or other
financial obligation for which there is recourse, directly or indirectly, to the
registered holding company or another system company, other than an EWG or
foreign utility company by the registered holding company. Identify any
transfers of assets from any system company (other than an exempt wholesale
generator or foreign utility company) to an affiliate exempt wholesale generator
or foreign utility company. State the market value at the time of transfer, the
book value and the sale price of the transferred asset.
Jamaica Project: Quixx acquired its interest in the Jamaica Project prior
to the consummation of the merger of PSCo and SPS into NCE. Therefore, NCE
has not made either a direct or indirect investment in the Quixx Jamaica
Project. Moreover, in connection with the Jamaica Project, there are no
debt or other financial obligations, for which there is recourse to NCE,
nor has NCE made any direct or indirect guarantees in support of the
project. There have been no asset transfers from any system company in
connections with the Jamaica Project during the reporting period.
Mustang Station: Quixx had contributed $450,000 to DCEA and had received
payment of $5 million through December 31, 1998 as a development fee and
reimbursement of development costs. Debt incurred by DCEA is non-recourse
to NCE and the NCE operating companies. In connection with a credit
agreement between DCEA and its lenders, Quixx as a partner is obligated to
contribute approximately $7.5 million in additional capital during 1999.
IPI: By virtue of its ownership in IPC, NCI acquired its interest in IPI
with no additional investment. Debt incurred by IPI is non-recourse to NCE
and the NCE operating companies. See below the discussion of debt incurred
by IPC from NCI for further information.
CIESA: By virtue of its ownership in IPI, NCI acquired its interest in
CIESA with no additional investment. Debt incurred by CIESA is non-recourse
to NCE and the NCE operating companies.
Central Piedra Buena: By virtue of its ownership in CIESA, NCI acquired its
interest in Central Piedra Buena with no additional investment. Debt
incurred by Central Piedra Buena is non-recourse to NCE and the NCE
operating companies.
Yorkshire: NCI had contributed $362.4 million to YPG for its 50% interest
in Yorkshire through December 31, 1998. Debt issued by YPG is non-recourse
to NCE and the NCE operating companies.
IPC: NCI obtained its interest in IPC for approximately $2 million. The
interest was obtained in June 1997 prior to the merger of PSCo and SPS.
NCI has loaned IPC $12 million with a commitment to lend an additional $3
million. Repayment of the amounts borrowed, with principal payments of $3
million will commence on December 28, 2000 and is required every six
months thereafter. Interest is payable monthly, quarterly or semi-annually
at the election of IPC. Interest is charged at the Eurodollar rate plus
1.25%. IPC must pay a 0.5% commitment fee on the unused portion of the
commitment. All expenditures of borrowed funds made by IPC are subject to
approval of NCI. In September 1997, IPC lent $12 million to IPI on the
same terms and conditions as IPC's agreement with NCI.
(c) State the ratio of debt to common equity of the company and earnings of the
company as of the end of the reporting period.
Jamaica Project: KES Jamaica had approximately $4,700 of common equity and
no outstanding debt as of December 31, 1998. KES Jamaica's net loss for the
year ended December 31, 1998 was approximately $1.2 million.
31
<PAGE>
Mustang Station: DCEA had approximately $140 million in total debt and a
partner's capital deficit of approximately $5.6 million at December 31,
1998. Denver City incurred a net loss of approximately $768,000 during
1998.
IPI: IPI had total debt of approximately $12.0 million and a shareholder
deficit of approximately $584,000 at December 31, 1998. It incurred a net
operating loss of approximately $1.3 million during 1998.
CIESA: Financial statements for this entity, converted to U.S. dollars at
December 31, 1998 were not available.
Central Piedra Buena: Financial statements for this entity, converted to
U.S. dollars at December 31, 1998 were not available.
Yorkshire: YPG had total debt of approximately $2.5 billion and common
shareholders' equity of approximately $666 million at December 31, 1998
resulting in a ratio of approximately 3.75 to 1. It reported net income of
approximately $76.9 million during 1998.
IPC: IPC had total debt of approximately $12.0 million and common
shareholders' equity of approximately $1.8 million resulting in a ratio of
approximately 6.7 to 1. It reported a net loss of approximately $670,000
during 1998.
(d) Identify any service, sales or construction contract(s) between the company
and a system company, and describe the services to be rendered or goods sold and
the fees or revenues under such agreement(s).
Quixx and NCI entered into service agreements on behalf of themselves and
their subsidiaries with NCS.
Part II. See Exhibits H and I.
Part III. NCE's aggregate investment in EWG's and FUCO's is approximately $375.2
million, whihc is 22.7% of its investment in domestic public utility subsidiary
companies
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS
FINANCIAL STATEMENTS - INDEX
Description Page No.
- ----------- --------
Consent of Independent Public Accountants 33
Consolidating Statement of Income of New Century Energies, Inc.
and subsidiaries and Public Service Company of Colorado and
subsidiaries for 1998 34
Consolidating Statement of Retained Earnings of New Century
Energies, Inc. and subsidiaries and Public Service Company
of Colorado and subsidiaries for 1998 36
Consolidating Statement of Cash Flows of New Century Energies,
Inc. and subsidiaries and Public Service Company of Colorado
and subsidiaries for 1998 37
Consolidating Balance Sheets of New Century Energies, Inc. and
subsidiaries and Public Service Company of Colorado and
subsidiaries at December 31, 1998 39
Consolidating financial statements of NC Enterprises, Inc., e prime, inc, Quixx
Corporation, Utility Engineering Corporation and the Planergy Group are filed
confidentially pursuant to Rule 104 (b).
32
<PAGE>
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference in this Annual Report to the Securities and Exchange Commission on
Form U5S of New Century Energies, Inc. for the year ended December 31, 1998,
filed pursuant to the Public Utility Holding Company Act of 1935, of our reports
dated February 23, 1999, covering the consolidated financial statements of New
Century Energies, Inc. and subsidiaries, Public Service Company of Colorado and
subsidiaries and Southwestern Public Service Company included in the New Century
Energies, Inc. combined Annual Report on Form 10-K for the year ended December
31, 1998. It should be noted that we have not audited any financial statements
of the Company subsequent to December 31, 1998, or performed any audit
procedures subsequent to the date of our report.
ARTHUR ANDERSEN LLP
Denver, Colorado
April 30, 1999
33
<PAGE>
NEW CENTURY ENERGIES, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENTS OF INCOME
Year Ended December 31, 1998
(Thousands of Dollars Except Per Share Data)
<TABLE>
<CAPTION>
New Public Cheyenne
Century Service Southwestern New NC Light,
Energies, Inc. Company of Public Century Enterprises, Fuel &
(holding Colorado Service Services, Inc. Power
company) (consolidated) Company Inc. (consolidated) Co.
----------- ------------- ------------ --------- -------------- --------
<S> <C> <C> <C> <C> <C> <C>
Operating revenues:
Electric - 1,635,573 951,187 - 74,517 37,246
Gas - 640,064 - - 188,205 18,438
Other - 8,449 - 269,347 130,496 -
----- ----- ------- ------- ------- ------
- 2,284,086 951,187 269,347 393,218 55,684
Operating expenses:
Fuel used in generation - 212,184 432,127 - - -
Purchased power - 589,637 23,155 - 73,431 27,385
Cost of gas sold - 380,554 - - 175,484 12,045
Other operating and maintenance expenses 4,099 403,292 138,679 259,668 149,000 7,404
Depreciation and amortization - 180,913 78,592 - 6,565 2,647
Taxes (other than income taxes) 308 83,994 47,259 5,074 1,288 1,290
---- ------ ------ ----- ----- -----
4,407 1,850,574 719,812 264,742 405,768 50,771
----- --------- ------- ------- ------- ------
Operating income (4,407) 433,512 231,375 4,605 (12,550) 4,913
Other income and deductions:
Merger expenses - 418 (1,208) - - -
Equity in earnings of Yorkshire Power and
other unconsolidated subsidiaries 340,403 3,446 - - 32,655 -
Miscellaneous income and deductions - net 4,225 2,535 8,819 (2,064) 6,426 57
----- ----- ----- ------ ----- --
344,628 6,399 7,611 (2,064) 39,081 57
Interest charges and preferred dividends
of subsidiaries:
Interest on long-term debt - 120,082 46,471 - - 1,631
Other interest 4,118 20,849 8,925 2,444 24,304 869
Allowance for borrowed funds used during
construction - (12,328) (4,943) - - (76)
Dividends on PSCo and SPS obligated
mandatorily redeemable preferred
securities of subsidiary trusts holding
solely subordinated debentures of PSCo
and SPS - 9,711 7,850 - - -
Dividend requirements and redemption
premium on preferred stock of
subsidiaries - 5,332 - - - -
----- ----- ------ ----- ------ -----
4,118 143,646 58,303 2,444 24,304 2,424
----- ------- ------ ----- ------ -----
Income before income taxes 336,103 296,265 180,683 97 2,227 2,546
Income taxes (5,854) 101,494 65,696 97 (26,634) 847
------ ------- ------ -- ------- ---
Net income 341,957 194,771 114,987 - 28,861 1,699
======= ======= ======= ===== ====== =====
Weighted average common shares outstanding:
Basic
Diluted
Earnings per share of common stock outstanding:
Basic
Diluted
</TABLE>
34
<PAGE>
NEW CENTURY ENERGIES, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENTS OF INCOME
Year Ended December 31, 1998
(Thousands of Dollars Except Per Share Data)
<TABLE>
<CAPTION>
New
Eliminations Century
WestGas and Energies,
InterState, reclassifi- Inc.
Inc. cation (consolidated)
---------- ---------- --------------
<S> <C> <C> <C>
Operating revenues:
Electric - (1,037) 2,697,486
Gas 177 (5,608) 841,276
Other - (336,149) 72,143
---- -------- --------
177 (342,794) 3,610,905
Operating expenses:
Fuel used in generation - - 644,311
Purchased power - (721) 712,887
Cost of gas sold - (5,500) 562,583
Other operating and maintenance expenses 40 (324,439) 637,743
Depreciation and amortization 26 - 268,743
Taxes (other than income taxes) (3) (5,073) 134,137
---- ------ -------
63 (335,733) 2,960,404
---- -------- ---------
Operating income 114 (7,061) 650,501
Other income and deductions:
Merger expenses - - (790)
Equity in earnings of Yorkshire Power and
other unconsolidated subsidiaries - (340,403) 36,101
Miscellaneous income and deductions - net 18 (23,476) (3,460)
-- ------- ------
18 (363,879) 31,851
Interest charges and preferred dividends
of subsidiaries:
Interest on long-term debt - - 168,184
Other interest - (30,440) 31,069
Allowance for borrowed funds used during
construction - - (17,347)
Dividends on PSCo and SPS obligated
mandatorily redeemable preferred
securities of subsidiary trusts holding
solely subordinated debentures of PSCo
and SPS - - 17,561
Dividend requirements and redemption
premium on preferred stock of
subsidiaries - - 5,332
----- ------- -----
- (30,440) 204,799
----- ------- -------
Income before income taxes 132 (340,500) 477,553
Income taxes 47 (97) 135,596
---- ----- -------
Net income 85 (340,403) 341,957
==== ======== =======
Weighted average common shares outstanding:
Basic 111,859
Diluted 112,008
Earnings per share of common stock outstanding:
Basic $3.06
Diluted $3.05
</TABLE>
34
<PAGE>
PUBLIC SERVICE COMPANY OF COLORADO
AND SUBSIDIARIES
CONSOLIDATING STATEMENTS OF INCOME
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Public
Service PS New
Company of 1480 PSR Colorado Century
Colorado Welton, Investments, Credit International
(parent) Inc. Inc. Corporation Inc. (1)
----------- ------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C>
Operating revenues:
Electric 1,635,845 - - - -
Gas 640,104 - - - -
Other 8,347 8,344 - 14,208 -
----- ----- ----- ------ ----
2,284,296 8,344 - 14,208 -
Operating expenses:
Fuel used in generation 212,224 - - - -
Purchased power 589,637 - - - -
Cost of gas sold 380,554 - - - -
Other operating and maintenance expenses 409,636 518 788 454 179
Depreciation and amortization 179,423 1,443 - - 41
Taxes (other than income taxes) 83,415 580 - 5 -
------ --- ---- --- ----
1,854,889 2,541 788 459 220
--------- ----- ---- --- ----
Operating income 429,407 5,803 (788) 13,749 (220)
Other income and deductions:
Merger expenses 418 - - - -
Equity in earnings of Yorkshire Power and
other unconsolidated subsidiaries 17,729 - - - 3,446
Miscellaneous income and deductions - net 9,985 808 (7,589) 27 192
----- --- ------ --- ---
28,132 808 (7,589) 27 3,638
Interest charges and preferred dividends of subsidiaries:
Interest on long-term debt 110,221 4,136 - 6,016 -
Other interest 31,834 12 18 3,744 192
Allowance for borrowed funds used during construction (12,328) - - - -
Dividends on PSCo and SPS obligated mandatorily
redeemable preferred securities of subsidiary
trusts holding solely subordinated debentures
of PSCo and SPS 9,711 - - - -
Dividend requirements and redemption premium on
preferred stock of subsidiaries 5,332 - - - -
----- ---- ----- ----- ----
144,770 4,148 18 9,760 192
------- ----- ----- ----- ---
Income before income taxes 312,769 2,463 (8,395) 4,016 3,226
Income taxes 117,998 883 (19,232) 1,487 427
------- ---- ------- ----- ---
Net income 194,771 1,580 10,837 2,529 2,799
======= ===== ====== ===== =====
</TABLE>
(1) Includes the results of operations for the three months ended March 31,1998
35
<PAGE>
PUBLIC SERVICE COMPANY OF COLORADO
AND SUBSIDIARIES
CONSOLIDATING STATEMENTS OF INCOME
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Fuel
Resources Elimina- Public
Development tions Service
Company and Company of
(A dissolved reclassi- Colorado
company) fication (consolidated)
----------- --------- --------------
<S> <C> <C> <C>
Operating revenues:
Electric - (272) 1,635,573
Gas - (40) 640,064
Other - (22,450) 8,449
--- ------- -----
- (22,762) 2,284,086
Operating expenses:
Fuel used in generation - (40) 212,184
Purchased power - - 589,637
Cost of gas sold - - 380,554
Other operating and maintenance expenses 232 (8,515) 403,292
Depreciation and amortization 6 - 180,913
Taxes (other than income taxes) (6) - 83,994
--- ---- ------
232 (8,555) 1,850,574
--- ------ ---------
Operating income (232) (14,207) 433,512
Other income and deductions:
Merger expenses - - 418
Equity in earnings of Yorkshire Power and
other unconsolidated subsidiaries - (17,729) 3,446
Miscellaneous income and deductions - net 147 (1,035) 2,535
--- ------ -----
147 (18,764) 6,399
Interest charges and preferred dividends of subsidiaries:
Interest on long-term debt - (291) 120,082
Other interest - (14,951) 20,849
Allowance for borrowed funds used during construction - - (12,328)
Dividends on PSCo and SPS obligated mandatorily
redeemable preferred securities of subsidiary
trusts holding solely subordinated debentures
of PSCo and SPS - - 9,711
Dividend requirements and redemption premium on
preferred stock of subsidiaries - - 5,332
---- ------ -----
- (15,242) 143,646
---- ------- -------
Income before income taxes (85) (17,729) 296,265
Income taxes (69) - 101,494
---- ----- -------
Net income (16) (17,729) 194,771
==== ======= =======
</TABLE>
(1) Includes the results of operations for the three months ended March 31,1998
35
<PAGE>
NEW CENTURY ENERGIES, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENTS OF RETAINED EARNINGS
For the Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
New
Century Public South-
Energies, Service western New NC Cheyenne
Inc. Company of Public Century Enterprises, Light, WestGas
(holding Colorado Service Services, Inc. Fuel & InterState,
company) (consolidated) Company Inc. (consolidated) Power Co. Inc.
-------- -------------- ------- ---- -------------- --------- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Retained earnings at beginning of year 659,050 319,280 349,988 - (6,824) 17,312 141
Net income available for common shareholders 341,957 194,771 114,987 - 28,861 1,699 85
Common stock dividends and other (260,330) (188,838) (75,157) - (1) - -
-------- -------- ------- ---- ------ ------ ---
Retained earnings at end of year 740,677 325,213 389,818 - 22,036 19,011 226
======= ======= ======= ==== ====== ====== ===
</TABLE>
PUBLIC SERVICE COMPANY OF COLORADO AND SUBSIDIARIES
CONSOLIDATING STATEMENTS OF RETAINED EARNINGS
For the Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Public New Fuel
Service PSR PS Century Resources Elimination
Company of 1480 Invest Colorado Inter- Development and
Colorado Welton, -ments, Credit national Company (a reclassifi-
(parent) Inc. Inc. Corporation Inc. (1) dissolved corp. cations
-------- ---- ---- ----------- -------- --------------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Retained earnings at beginning
of year 319,280 1,120 698 - (74,619) (42,459) 115,260
Net income available for common
shareholers 194,771 1,580 10,837 2,529 2,799 (16) (17,729)
Common stock dividends and other (188,838) (2,591) (9,501) (2,529) 71,820 - (57,199)
-------- ------ ------ ------ ------ ----- -------
Retained earnings at end of year 325,213 109 2,034 - - (42,475) 40,332
======= === ===== ==== ==== ======= ======
</TABLE>
(1) Sold to NC Enterprises, Inc. on March 31, 1998.
36
<PAGE>
NEW CENTURY ENERGIES, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENTS OF RETAINED EARNINGS
For the Year Ended December 31, 1998
(Thousands of Dollars)
Eliminations New Century
and Energies, Inc.
reclassifications (consolidated)
----------------- --------------
Retained earnings at beginning of year (679,897) 659,050
Net income available for common shareholders (340,403) 341,957
Common stock dividends and other 263,996 (260,330)
------- --------
Retained earnings at end of year (756,304) 740,677
======== =======
PUBLIC SERVICE COMPANY OF COLORADO AND SUBSIDIARIES
CONSOLIDATING STATEMENTS OF RETAINED EARNINGS
For the Year Ended December 31, 1998
(Thousands of Dollars)
Public
Service
Company of
Colorado
(consolidated)
-------------
Retained earnings at beginning
of year 319,280
Net income available for common
shareholers 194,771
Common stock dividends and other (188,838)
--------
Retained earnings at end of year 325,213
=======
(1) Sold to NC Enterprises, Inc. on March 31, 1998.
36
<PAGE>
NEW CENTURY ENERGIES, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
New
Century Public South- NC Cheyenne
Energies, Service western New Enter- Light,
Inc. Company of Public Century prises, Fuel &
(holding Colorado Service Services, Inc. Power
company) (consolidated) Company Inc. (consolidated) Co.
--------- ------------ ----------- --------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Operating activities:
Net income 341,957 200,103 114,987 - 28,861 1,699
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation and amortization - 186,620 83,103 - 7,439 2,694
Amortization of investment tax credits - (4,896) (250) - - (76)
Deferred income taxes 272 7,092 (8,600) (584) 7,279 493
Equity in earnings of Yorkshire Power and
other unconsolidated subsidiaries, net (76,409) (3,446) - - (30,753) -
Change in accounts receivable (14,803) 21,540 20,358 113,275 (14,613) 3,836
Change in inventories - (6,553) (625) - (475) 168
Change in other current assets - 7,937 27,300 (11,035) (7,929) (432)
Change in accounts payable (6,743) 9,148 (43,190) (102,238) 10,103 740
Change in other current liabilities 12,023 22,957 31,699 5,695 908 (428)
Change in deferred amounts (999) (18,289) 30,309 2,863 (12,793) (173)
Change in noncurrent liabilities - (995) - 2,553 616 85
Other - - 3,358 - - -
------- ------ ----- ----- --- ---
Net cash provided by (used in) operating
activities 255,298 421,218 258,449 10,529 (11,357) 8,606
Investing activities:
Construction expenditures - (504,727) (92,218) 127 (2,448) (9,706)
Proceeds from disposition of property, plant
and equipment - 9,102 (2,897) - 3,379 (215)
Payment for purchase of companies, net of
cash acquired - - - - (13,725) -
Payment received on note receivable from NC
Enterprises - 100,000 - - - -
Capital contributed to subsidiaries (124,000) - - - - -
Purchase of other investments - (1,345) (673) - (4,838) -
Sale of other investments - 4,101 820 - 545 -
-------- ----- ---- ---- --- -----
Net cash provided by (used in) investing
activities (124,000) (392,869) (94,968) 127 (17,087) (9,921)
Financing activities:
Proceeds from sale of common stock 161,823 - - - - -
Contribution of capital by NCE - - - - 124,000 -
Proceeds from sale of long-term debt - 247,025 - - 3,443 -
Repayment of note payable to PSCo - (100,000)
Proceeds from the sale of PSCo obligated
mandatorily redeemable preferred
securities of subsidiary trust holding
solely subordinated debentures of PSCo - 187,700 - - - -
Redemption of long-term debt - (157,737) (179) - (1,406) -
Short-term borrowings - net (61,063) 66,195 (85,242) - - -
Intercompany loan - net 12,050 - - (20,800) 7,975 775
Redemption of preferred stock of PSCo - (181,824) - - - -
Dividends on common stock (256,426) (180,430) (77,696) - - -
Dividends and redemption premium on
preferred stock - (8,261) - - - -
----- ------ ------ ------- ----- ----
Net cash provided by (used in) financing
activities (143,616) (27,332) (163,117) (20,800) 34,012 775
-------- ------- -------- ------- ------ ---
Net increase (decrease) in cash and temporary
cash investments (12,318) 1,017 364 (10,144) 5,568 (540)
Cash and temporary cash investments at
beginning of year 13,137 18,909 986 10,594 27,450 1,230
====== ====== ===== ====== ====== =====
Cash and temporary cash investments at
end of year 819 19,926 1,350 450 33,018 690
=== ====== ===== === ====== ====
</TABLE>
37
<PAGE>
NEW CENTURY ENERGIES, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Elimina New
WestGas -tion Century
Inter- and Energies,
State, reclassifi Inc.
Inc. -cation (consolidated)
------- ----------- --------------
<S> <C> <C> <C>
Operating activities:
Net income
Adjustments to reconcile net income to net 85 (345,735) 341,957
cash provided by (used in) operating activities
Depreciation and amortization
Amortization of investment tax credits 26 (53) 279,829
Deferred income taxes - - (5,222)
Equity in earnings of Yorkshire Power and (4) 300 6,248
other unconsolidated subsidiaries, net
Change in accounts receivable - 76,409 (34,199)
Change in inventories 4 (127,571) 2,026
Change in other current assets - - (7,485)
Change in accounts payable - 1,124 16,965
Change in other current liabilities 2 118,474 (13,704)
Change in deferred amounts (17) (2,929) 69,908
Change in noncurrent liabilities 1 (179) 740
Other - 130 2,389
- (3,271) 87
Net cash provided by (used in) operating ---- ------ ----
activities
97 (283,301) 659,539
Investing activities:
Construction expenditures
Proceeds from disposition of property, plant - - (608,972)
and equipment
Payment for purchase of companies, net of - - 9,369
cash acquired
Payment received on note receivable from NC - - (13,725)
Enterprises
Capital contributed to subsidiaries - (100,000) -
Purchase of other investments - 124,000 -
Sale of other investments - 725 (6,131)
- - 5,466
Net cash provided by (used in) investing ---- ------ -----
activities
- 24,725 (613,993)
Financing activities:
Proceeds from sale of common stock
Contribution of capital by NCE - - 161,823
Proceeds from sale of long-term debt - (124,000) -
Repayment of note payable to PSCo - 29 250,497
Proceeds from the sale of PSCo obligated 100,000 -
mandatorily redeemable preferred
securities of subsidiary trust holding
solely subordinated debentures of PSCo
Redemption of long-term debt - - 187,700
Short-term borrowings - net - (1) (159,323)
Intercompany loan - net - 16,161 (63,949)
Redemption of preferred stock of PSCo - -
Dividends on common stock - - (181,824)
Dividends and redemption premium on - 258,126 (256,426)
preferred stock
- 8,261 -
---- ----- ----
Net cash provided by (used in) financing
activities - 258,576 (61,502)
---- ------- -------
Net increase (decrease) in cash and temporary
cash investments 97 - (15,956)
Cash and temporary cash investments at
beginning of year 317 - 72,623
==== ====== ======
Cash and temporary cash investments at
end of year 414 - 56,667
==== ====== ======
</TABLE>
37
<PAGE>
PUBLIC SERVICE COMPANY OF COLORADO AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS
Year Ended December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Public New Fuel
Service PSR PS Century Resources
Company of 1480 Invest- Colorado Inter- Development Co.
Colorado Welton, ments Credit national (a,dissolved
(parent) Inc. Inc. Corporation Inc. (1) Colorado corp.)
--------- -------- --------- ----------- --------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Operating activities:
Net income 200,103 1,580 10,837 2,529 2,799 (16)
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 184,887 1,480 - 206 41 6
Amortization of investment tax credits (4,837) (59) - - - -
Deferred income taxes 7,666 (236) - - - (338)
Equity in earnings of Yorkshire Power and
other unconsolidated subsidiaries, net (3,109) - - - (3,446) -
Change in accounts receivable (169,481) 198 (493) 49,252 (192) 23
Change in inventories (6,553) - - (1,497) - -
Change in other current assets 7,753 (3) 12 (3) - 178
Change in accounts payable 180,539 (138) (1,441) (26,760) 371 310
Change in other current liabilities 24,064 - (514) (796) 427 (224)
Change in deferred amounts (18,289) - - - - -
Change in noncurrent liabilities (995) - - - - -
Other - - - - - -
----- ----- ----- ----- ----- -----
Net cash provided by (used in)
operating activities 401,748 2,822 8,401 22,931 - (61)
Investing activities:
Construction expenditures (504,727) - - - - -
Proceeds from disposition of property, plant
and equipment 9,102 - - - - -
Payment for purchase of companies, net of
cash acquired - - - - - -
Payment received on note receivable from
NC Enterprises 100,000 - - - - -
Capital contributed to subsidiaries - - - - - -
Purchase of other investments (6,837) - (508) - - -
Sale of other investments 6,539 - - - - -
---- ----- ----- ----- ----- ------
Net cash provided by (used in)
investing activities (395,923) - (508) - - -
Financing activities:
Proceeds from sale of common stock - - - (2,437) - -
Contribution of capital by NCE - - - - - -
Proceeds from sale of long-term debt 253,274 - (249) - -
Repayment of note payable to PSCo - - - - - -
Proceeds from sale of PSCo obligated
mandatorily redeemable preferred
securities subsidiary trust holding
solely subordinated debentures of PSCo 187,700 - - - - -
Redemption of long-term debt (157,337) (400) - - - -
Short-term borrowings - net 84,070 - - (17,875) - -
Intercompany loan - net - - - - - -
Retirement of preferred stock of PSCo (181,824) - - - - -
Dividends on common stock (180,430) (2,594) (9,500) (2,529) - -
Dividends and redemption premium on
preferred stock (8,261) - - - - -
------ ----- ----- ------ ----- ------
Net cash provided by (used in) financing
activities (2,808) (2,994) (9,500) (23,090) - -
----- ------ ------ ------- ---- -----
Net increase (decrease) in cash and temporary
cash investments 3,017 (172) (1,607) (159) - (61)
Cash and temporary cash investments at
beginning year 15,555 266 1,554 166 - 1,368
====== === ===== ==== ==== =====
Cash and temporary cash investments at
end of year 18,572 94 (53) 7 - 1,307
====== == === ==== ==== =====
</TABLE>
38
<PAGE>
PUBLIC SERVICE COMPANY OF COLORADO AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS
Year Ended December 31, 1998
(Thousands of Dollars)
Elimina- Public
tions Service
and Company of
reclass- and Colorado
ifications (consolidated)
----------- ------------
Operating activities:
Net income (17,729) 200,103
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization - 186,620
Amortization of investment tax credits - (4,896)
Deferred income taxes - 7,092
Equity in earnings of Yorkshire Power and
other unconsolidated subsidiaries, net 3,109 (3,446)
Change in accounts receivable 142,234 21,540
Change in inventories 1,497 (6,553)
Change in other current assets - 7,937
Change in accounts payable (143,733) 9,148
Change in other current liabilities - 22,957
Change in deferred amounts - (18,289)
Change in noncurrent liabilities - (995)
Other - -
------ ----
Net cash provided by (used in)
operating activities (14,622) 421,218
Investing activities:
Construction expenditures - (504,727)
Proceeds from disposition of property, plant
and equipment - 9,102
Payment for purchase of companies, net of
cash acquired - -
Payment received on note receivable from
NC Enterprises - 100,000
Capital contributed to subsidiaries - -
Purchase of other investments 6,000 (1,345)
Sale of other investments (2,438) 4,101
------ -----
Net cash provided by (used in)
investing activities 3,562 (392,869)
Financing activities:
Proceeds from sale of common stock 2,437 -
Contribution of capital by NCE - -
Proceeds from sale of long-term debt (6,000) 247,025
Repayment of note payable to PSCo - -
Proceeds from sale of PSCo obligated
mandatorily redeemable preferred
securities subsidiary trust holding
solely subordinated debentures of PSCo - 187,700
Redemption of long-term debt - (157,737)
Short-term borrowings - net - 66,195
Intercompany loan - net - -
Retirement of preferred stock of PSCo - (181,824)
Dividends on common stock 14,623 (180,430)
Dividends and redemption premium on
preferred stock - (8,261)
------ ------
Net cash provided by (used in) financing
activities 11,060 (27,332)
------ -------
Net increase (decrease) in cash and temporary
cash investments - 1,017
Cash and temporary cash investments at
beginning year - 18,909
===== ======
Cash and temporary cash investments at
end of year - 19,926
===== ======
38
<PAGE>
NEW CENTURY ENERGIES, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
South-
Public Service western NC
New Century Company of Public New Century Enterprises
Energies, Inc. Colorado Service Services, Inc.
(holding company) (consolidated) Company Inc. (consolidated)
---------------- -------------- ------- ----------- --------------
ASSETS
<S> <C> <C> <C> <C> <C>
Property, plant and equipment, at cost:
Electric - 4,369,134 2,665,115 - -
Gas - 1,171,198 - - 6,661
Steam and other - 71,986 - - 39,691
Common to all departments - 418,484 - - -
Construction in progress - 264,752 121,407 (118) 86
--------------- --------------- ------------ ----------- -------------
- 6,295,554 2,786,522 (118) 46,438
Less: accumulated depreciation - 2,241,165 1,057,183 - 20,452
--------------- --------------- ------------ ----------- -------------
Total property, plant and equipment - 4,054,389 1,729,339 (118) 25,986
--------------- --------------- ------------ ----------- -------------
Investments, at cost:
Investment in Yorkshire Power and
other unconsolidated subsidiaries 2,573,488 - - - 340,874
Notes receivable from affiliates 60,500 192,620 119,036 - -
Other - 22,664 5,591 - 37,022
--------------- --------------- ----------- ------------- -------------
Total investments 2,633,988 215,284 124,627 - 377,896
--------------- --------------- ----------- ------------- -------------
Current assets:
Cash and temporary cash investments 819 19,926 1,350 450 33,018
Accounts receivable, less reserve for
uncollectible accounts 75,910 172,587 76,190 32,638 101,063
Accrued unbilled revenues - 119,856 9,373 - 33
Recoverable purchased gas and electric
energy costs - net - 62,761 - - -
Materials and supplies, at average cost - 47,881 16,970 - 3,860
Fuel inventory, at average cost - 22,361 2,293 - -
Gas in underground storage, at cost
(LIFO) - 51,779 - - -
Prepaid expenses and other - 46,523 11,361 20,911 19,857
--------------- --------------- ----------- ------------- -------------
Total current assets 76,729 543,674 117,537 53,999 157,831
--------------- --------------- ----------- ------------- -------------
Deferred charges:
Regulatory assets - 269,112 111,971 - -
Unamortized debt expense - 17,874 8,767 - 154
Other 979 77,303 37,623 1,366 52,675
--------------- --------------- ----------- ------------- -------------
Total deferred charges 979 364,289 158,361 1,366 52,829
--------------- --------------- ----------- ------------- -------------
2,711,696 5,177,636 2,129,864 55,247 614,542
=============== =============== =========== ============= =============
</TABLE>
39
<PAGE>
NEW CENTURY ENERGIES, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations
Cheyenne Light WestGas and New Century
Fuel & Power InterState, reclassi- Energies, Inc.
Co. Inc. ficatons (consolidated)
-------------- ----------- ------------- --------------
ASSETS
<S> <C> <C> <C> <C>
Property, plant and equipment, at cost:
Electric 62,821 - - 7,097,070
Gas 32,746 - - 1,210,605
Steam and other 12 - (69) 111,620
Common to all departments 4,151 652 - 423,287
Construction in progress 4,973 - - 391,100
------------- ----------- ----------- --------------
104,703 652 (69) 9,233,682
Less: accumulated depreciation 32,692 167 - 3,351,659
------------- ----------- ----------- --------------
Total property, plant and equipment 72,011 485 (69) 5,882,023
------------- ----------- ----------- --------------
Investments, at cost:
Investment in Yorkshire Power and
other unconsolidated subsidiaries - - (2,573,488) 340,874
Notes receivable from affiliates - - (372,156) -
Other 11 - (726) 64,562
------------- ----------- ----------- --------------
Total investments 11 - (2,946,370) 405,436
------------- ----------- ----------- --------------
Current assets:
Cash and temporary cash investments 690 414 - 56,667
Accounts receivable, less reserve for
uncollectible accounts 3,312 2 (142,557) 319,145
Accrued unbilled revenues 1,193 - - 130,455
Recoverable purchased gas and electric
energy costs - net 3,393 - - 66,154
Materials and supplies, at average cost 587 - - 69,298
Fuel inventory, at average cost - - (1) 24,653
Gas in underground storage, at cost
(LIFO) 845 - - 52,624
Prepaid expenses and other 20 - (15,111) 83,561
------------- ----------- ----------- --------------
Total current assets 10,040 416 (157,669) 802,557
------------- ----------- ----------- --------------
Deferred charges:
Regulatory assets 549 - - 381,632
Unamortized debt expense 613 - - 27,408
Other 651 - 2,311 172,908
------------- ----------- ----------- --------------
Total deferred charges 1,813 - 2,311 581,948
------------- ----------- ----------- --------------
83,875 901 (3,101,797) 7,671,964
============= =========== =========== ==============
</TABLE>
39
<PAGE>
NEW CENTURY ENERGIES, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
South-
Public Service western NC
New Century Company of Public New Century Enterprises
Energies, Inc. Colorado Service Services, Inc.
(holding company) (consolidated) Company Inc. (consolidated)
----------------- -------------- ------------ ----------- --------------
CAPITAL AND LIABILITIES
<S> <C> <C> <C> <C> <C>
Common stock 1,866,386 1,302,119 348,402 1 155,367
Retained earnings 740,677 325,213 389,818 - 22,036
Accumulated comprehensive income 7,764 - - - 7,764
----------------- -------------- ------------ ----------- --------------
Total common equity 2,614,827 1,627,332 738,220 1 185,167
PSCo and SPS obligated mandatorily redeemable
preferred securities of subsidiary trust
holding solely subordinated debentures
of PSCo and SPS - 194,000 100,000 - -
Long-term debt of subsidiaries - 1,643,130 530,618 - 333,927
----------------- -------------- ------------ ----------- --------------
2,614,827 3,464,462 1,368,838 1 519,094
----------------- -------------- ------------ ----------- --------------
Noncurrent liabilities:
Employees' postretirement benefits
other than pensions - 55,537 5,941 - 81
Employees' postemployment benefits - 27,195 3,571 - -
----------------- -------------- ------------ ----------- --------------
Total noncurrent liabilities - 82,732 9,512 - 81
----------------- -------------- ------------ ----------- --------------
Current liabilities:
Notes payable and commercial paper 36,437 402,795 94,162 25,150 -
Long-term debt due within one year - 44,481 90,113 - 3,571
Accounts payable (10,087) 226,712 64,275 11,593 59,510
Obligation to return accounts receivable - - - - -
Dividends payable 69,271 46,461 20,007 - -
Recovered electric energy costs - net - - 18,760 - -
Customers' deposits - 23,902 5,904 - 694
Accrued taxes 77 57,848 37,646 (598) (9,506)
Accrued interest 826 36,729 12,273 - -
Current portion of accumulated deferred
income taxes - 8,142 - (72) (195)
Other - 68,729 18,011 14,175 18,914
----------------- -------------- ------------ ----------- --------------
Total current liabilities 96,524 915,799 361,151 50,248 72,988
----------------- -------------- ------------ ----------- --------------
Deferred credits:
Customers' advances for construction - 54,260 361 - -
Unamortized investment tax credits - 94,459 5,219 - -
Accumulated deferred income taxes 272 538,581 380,655 1,375 20,718
Other 73 27,343 4,128 3,623 1,661
----------------- -------------- ------------ ----------- --------------
Total deferred credits 345 714,643 390,363 4,998 22,379
----------------- -------------- ------------ ----------- --------------
2,711,696 5,177,636 2,129,864 55,247 614,542
================= ============== ============ =========== ==============
</TABLE>
40
<PAGE>
NEW CENTURY ENERGIES, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Eliminations
Cheyenne Light WestGas and New Century
Fuel & Power InterState, reclassi- Energies, Inc.
Co. Inc. ficatons (consolidated)
-------------- ----------- ------------- --------------
CAPITAL AND LIABILITIES
<S> <C> <C> <C> <C>
Common stock 3,000 600 (1,809,489) 1,866,386
Retained earnings 19,011 226 (756,304) 740,677
Accumulated comprehensive income - - (7,764) 7,764
-------------- ----------- ------------- --------------
Total common equity 22,011 826 (2,573,557) 2,614,827
PSCo and SPS obligated mandatorily redeemable
preferred securities of subsidiary trust
holding solely subordinated debentures
of PSCo and SPS - - - 294,000
Long-term debt of subsidiaries 29,001 - (331,131) 2,205,545
-------------- ----------- ------------- --------------
51,012 826 (2,904,688) 5,114,372
-------------- ----------- ------------- --------------
Noncurrent liabilities:
Employees' postretirement benefits
other than pensions 173 - - 61,732
Employees' postemployment benefits 560 - - 31,326
-------------- ----------- ------------- --------------
Total noncurrent liabilities 733 - - 93,058
-------------- ----------- ------------- --------------
Current liabilities:
Notes payable and commercial paper 15,875 - (50,025) 524,394
Long-term debt due within one year - - - 138,165
Accounts payable 6,858 (2) (73,779) 285,080
Obligation to return accounts receivable - - - -
Dividends payable - - (66,468) 69,271
Recovered electric energy costs - net - - - 18,760
Customers' deposits 293 - - 30,793
Accrued taxes (85) 2 - 85,384
Accrued interest 401 - - 50,229
Current portion of accumulated deferred
income taxes 269 - (6,113) 2,031
Other 884 3 - 120,716
-------------- ----------- ------------- --------------
Total current liabilities 24,495 3 (196,385) 1,324,823
-------------- ----------- ------------- --------------
Deferred credits:
Customers' advances for construction 779 - - 55,400
Unamortized investment tax credits 1,247 - - 100,925
Accumulated deferred income taxes 5,575 71 - 947,247
Other 34 1 (724) 36,139
-------------- ----------- ------------- --------------
Total deferred credits 7,635 72 (724) 1,139,711
-------------- ----------- ------------- --------------
83,875 901 (3,101,797) 7,671,964
============== =========== ============= ==============
</TABLE>
40
<PAGE>
PUBLIC SERVICE COMPANY OF COLORADO AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Public New Green
Service PSR PS Century and
Company of 1480 Invest- Colorado Interna- Clear
Colorado Welton, ment Credit tional, Lakes
(parent) Inc. Inc. Corporation Inc. Company
-------- ------- ---- ----------- ------- -------
ASSETS
<S> <C> <C> <C> <C> <C> <C>
Property, plant and equipment, at cost:
Electric 4,369,109 - - - - 25
Gas 1,171,167 - - - - -
Steam and other 70,299 1,610 - - - -
Common to all departments 363,379 55,105 - - - -
Construction in progress 264,752 - - - - -
----------- ------- ------ ------ ------- -------
6,238,706 56,715 - - - 25
Less: accumulated depreciation 2,222,714 18,429 - - - -
----------- ------- ------ ------ ------- -------
Total property, plant and equipment 4,015,992 38,286 - - - 25
----------- ------ ------ ------ ------- -------
Investments, at cost:
Investment in Yorkshire Power and other
unconsolidated subsidiaries 38,233 - - - - -
Notes receivable from affiliates 192,620 - - - - -
Other 25,016 - 3,648 - - -
----------- ------ ------ ------ ----- -------
Total investments 255,869 - 3,648 - - -
----------- ------ ------ ------ ----- -------
Current assets:
Cash and temporary cash investments 18,572 94 (53) 6 - -
Accounts receivable, less reserve for
uncollectible accounts 173,623 258 499 322,603 - -
Accrued unbilled revenues 119,856 - - - - -
Recoverable purchased gas and electric
energy costs 62,761 - - - - -
Materials and supplies, at average cost 47,881 - - - - -
Fuel inventory, at average cost 22,361 - - 22,296 - -
Gas in underground storage, at cost (LIFO) 51,779 - - - - -
Prepaid expenses and other 45,927 12,079 494 88 - -
--------- ------ ------- ------- ------ -------
Total current assets 542,760 12,431 940 344,993 - -
--------- ------ ------- ------- ------ -------
Deferred charges:
Regulatory assets 269,112 - - - - -
Unamortized debt expense 17,034 646 - 194 - -
Other 77,303 - - - - -
---------- ------ ------- ------- ----- -------
Total deferred charges 363,449 646 - 194 - -
---------- ------ ------- ------- ----- -------
5,178,070 51,363 4,588 345,187 - 25
========== ====== ======= ======= ===== =======
</TABLE>
41
<PAGE>
PUBLIC SERVICE COMPANY OF COLORADO AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Fuel Elimina- Public
Resources tions Service
Development Co. and Company of
(a dissolved reclassifi- Colorado
Colorado Corp.) cations (consolidated)
-------------- ----------- --------------
ASSETS
<S> <C> <C> <C>
Property, plant and equipment, at cost:
Electric - - 4,369,134
Gas 31 - 1,171,198
Steam and other - 77 71,986
Common to all departments - - 418,484
Construction in progress - - 264,752
------ ----- -------
31 77 6,295,554
Less: accumulated depreciation 22 - 2,241,165
------ ----- ---------
Total property, plant and equipment 9 77 4,054,389
------ ----- ---------
Investments, at cost:
Investment in Yorkshire Power and other
unconsolidated subsidiaries - (38,233) -
Notes receivable from affiliates - - 192,620
Other - (6,000) 22,664
------ -------- --------
Total investments - (44,233) 215,284
------ -------- --------
Current assets:
Cash and temporary cash investments 1,307 - 19,926
Accounts receivable, less reserve for
uncollectible accounts 19 (324,415) 172,587
Accrued unbilled revenues - - 119,856
Recoverable purchased gas and electric
energy costs - - 62,761
Materials and supplies, at average cost - - 47,881
Fuel inventory, at average cost - (22,296) 22,361
Gas in underground storage, at cost (LIFO) - - 51,779
Prepaid expenses and other - (12,065) 46,523
------ ------- --------
Total current assets 1,326 (358,776) 543,674
------ -------- --------
Deferred charges:
Regulatory assets - - 269,112
Unamortized debt expense - - 17,874
Other - - 77,303
------ ----- --------
Total deferred charges - - 364,289
------ ----- --------
1,335 (402,932) 5,177,636
====== ======== =========
</TABLE>
41
<PAGE>
PUBLIC SERVICE COMPANY OF COLORADO AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Public New Green
Service PSR PS Century and
Company of 1480 Invest- Colorado Interna- Clear
Colorado Welton, ment Credit tional, Lakes
(parent) Inc. Inc. Corporation Inc. Company
-------- ------- ---- ----------- ------- -------
CAPITAL AND LIABILITIES
<S> <C> <C> <C> <C> <C>
Common stock 1,302,119 7,506 3,632 23,675 - 25
Retained earnings 325,213 109 2,034 - - -
Accumulated comprehensive income - - - - - -
------------- ------------ ----------- ---------- ------------ -----------
Total common equity 1,627,332 7,615 5,666 23,675 - 25
PSCo and SPS obligated mandatorily redeemable
preferred securities of subsidiary trust
holding solely subordinated debentures
of PSCo and SPS - - - - - -
Long-term debt of subsidiaries 1,712,827 30,303 - 100,000 - -
------------- ------------ ----------- ---------- ------------ -----------
3,340,159 37,918 5,666 123,675 - 25
------------- ------------ ----------- ---------- ------------ -----------
Noncurrent liabilities:
Employees' postretirement benefits other
than pensions 55,537 - - - - -
Employees' postemployment benefits 27,195 - - - - -
------------- ------------ ----------- ---------- ------------ -----------
Total noncurrent liabilities 82,732 - - - - -
------------- ------------ ----------- ---------- ------------ -----------
Current liabilities:
Notes payable and commercial paper 345,636 - - 69,225 - -
Long-term debt due within one year 44,030 451 - - - -
Accounts payable 419,787 87 52 (23,087) - -
Obligation to return accounts receivable - - - 174,996 - -
Dividends payable 46,461 - - - - -
Customers' deposits 23,902 - - - - -
Accrued taxes 60,483 55 (1,130) (57) - -
Accrued interest 35,954 340 - 435 - -
Current portion of accumulated deferred
income taxes 8,147 (5) - - - -
Other 68,052 19 - - - -
------------- ------------ ----------- ---------- ------------ -----------
Total current liabilities 1,052,452 947 (1,078) 221,512 - -
------------- ------------ ----------- ---------- ------------ -----------
Deferred credits:
Customers' advances for construction 54,260 - - - - -
Unamortized investment tax credits 93,632 827 - - - -
Accumulated deferred income taxes 527,502 11,671 - - - -
Other 27,333 - - - - -
------------- ------------ ----------- ---------- ------------ -----------
Total deferred credits 702,727 12,498 - - - -
------------- ------------ ----------- ---------- ------------ -----------
5,178,070 51,363 4,588 345,187 - 25
============= ============ =========== ========== ============ ===========
</TABLE>
42
<PAGE>
PUBLIC SERVICE COMPANY OF COLORADO AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
December 31, 1998
(Thousands of Dollars)
<TABLE>
<CAPTION>
Fuel Elimina- Public
Resources tions Service
Development Co. and Company of
(a dissolved reclassifi- Colorado
Colorado Corp.) cations (consolidated)
-------------- ----------- --------------
CAPITAL AND LIABILITIES
<S> <C> <C> <C>
Common stock 43,650 (78,488) 1,302,119
Retained earnings (42,475) 40,332 325,213
Accumulated comprehensive income - - -
------ ------ -------
Total common equity 1,175 (38,156) 1,627,332
PSCo and SPS obligated mandatorily redeemable
preferred securities of subsidiary trust
holding solely subordinated debentures
of PSCo and SPS - 194,000 194,000
Long-term debt of subsidiaries - (200,000) 1,643,130
-------- -------- ---------
1,175 (44,156) 3,464,462
-------- ------- ---------
Noncurrent liabilities:
Employees' postretirement benefits other
than pensions - - 55,537
Employees' postemployment benefits - - 27,195
-------- ------ --------
Total noncurrent liabilities - - 82,732
-------- ------ --------
Current liabilities:
Notes payable and commercial paper - (12,066) 402,795
Long-term debt due within one year - - 44,481
Accounts payable 1,587 (171,714) 226,712
Obligation to return accounts receivable - (174,996) -
Dividends payable - - 46,461
Customers' deposits - - 23,902
Accrued taxes (1,503) - 57,848
Accrued interest - - 36,729
Current portion of accumulated deferred
income taxes - - 8,142
Other 658 - 68,729
------- ------- --------
Total current liabilities 742 (358,776) 915,799
------- ------- --------
Deferred credits:
Customers' advances for construction - - 54,260
Unamortized investment tax credits - - 94,459
Accumulated deferred income taxes (592) - 538,581
Other 10 - 27,343
-------- ------ --------
(582) - 714,643
Total deferred credits -------- ------- --------
1,335 (402,932) 5,177,636
======== ======== =========
</TABLE>
42
<PAGE>
EXHIBITS
Copies of the documents listed below which are identified with an asterisk (*)
have heretofore been filed with the SEC and are incorporated herein by reference
and a part hereof. Exhibits not so identified are filed herewith unless
otherwise stated.
Exhibit A* Annual reports of NCE (File No. 1-12927), PSCo (File No. 1-3280) and
SPS (File No. 1-3789) are incorporated herein by reference to
their combined annual report on Form 10-K ("Combined Form 10-K") for
the year ended December 31, 1998.
Exhibit B
NCE
B-1.1* Restated Articles of Incorporation dated December 8, 1995 (NCE Form
S-4, Exhibit 3(a)).
B-1.2* Restated Bylaws dated December 15, 1998 (Combined Form 10-K for the
year ended December 31, 1998, Exhibit 3(b)1, File No. 1-12927).
B-1.3* Rights Agreement, dated as of August 1, 1997, between NCE and the Bank
of New York, as Rights Agent (NCE Form 8-K, Exhibit 1, File No.
1-12927).
PSCo
B-2.1* Amended and Restated Articles of Incorporation dated July 10, 1998
(Combined Form 10-K for the year ended December 31, 1998, Exhibit
3(a)1, File No. 1-3280).
B-2.2* By-laws dated November 20, 1997 (Combined Form 10-K for the year ended
December 31, 1997, Exhibit 3(b)1, File No. 1-3280).
SPS
B-3.1* Amended and Restated Articles of Incorporation dated September 30, 1997
(Combined Form 10-K for the year ended December 31,1997, Exhibit 3(a)2,
File No. 1-3789).
B-3.2* By-laws dated September 29, 1997 (Combined Form 10-K for the year ended
December 31,1997, Exhibit 3(b)2, File No. 1-3789).
Exhibit C* Instruments defining the rights of security holders, including
indentures have been previously filed with the SEC and are identified
in the exhibit index in the combined Form 10K for the year ended
December 31, 1998.
Exhibit D New Century Energies, Inc. and subsidiary companies agreement for
filing consolidated Federal income tax return and for allocation of
consolidated Federal income tax return and for allocation of allocation
of consolidated Federal income tax liabilities and benefits.
Exhibit F
F-1.1* Financial information for Yorkshire Power Group Limited (File
No.333-47925) is incorporated herein by reference to its Annual Report
on Form 10-K for the year ended March 31, 1998 and its Quarterly Report
on Form 10-Q for the quarter ended December 31, 1998.
F-1.2 Balance sheets and statements of income and cash flows, to the extent
to F1.8 available for subsidiaries that are not considered a majority owned
associate company including Cadence Network, L.L.C., Windpower
Partners 1994,L.P., Borger Energy Associates, L.P., Quixx Linden, L.P.,
Young Gas Storage Company, Ltd., Johnstown Cogeneration Company, L.L.C.
and Centrus, L.L.P. are filed confidentially pursuant to Rule 104 (b)
of the PUHCA.
43
<PAGE>
Exhibit G Financial Data Schedules for NCE and subsidiary companies. (Included
in electronic submission only.)
Exhibit H The relationship of each EWG in which the system holds an interest to
other system companies is reflected in Item 1.
Exhibit I
I-1 to
I-3 Balance sheets and statements of income and cash flows, to the
extent available, for EWGs and FUCOs that are not considered a
majority-owned associate company including Denver City Energy
Associates, L.P., IPC, IPI and Central Piedra Buena filed
confidentially pursuant to Rule 104 (b) of the PUHCA.
44
<PAGE>
Exhibit D
New Century Energies, Inc. and Subsidiary Companies
AGREEMENT FOR FILING CONSOLIDATED FEDERAL INCOME TAX RETURN
AND FOR
ALLOCATION OF CONSOLIDATED FEDERAL INCOME TAX LIABILITIES
AND BENEFITS
New Century Energies, Inc., a registered public utility holding company,
and its Subsidiaries (collectively referred to as the "Parties") hereby agree to
join annually in the filing of a consolidated federal income tax return and to
allocate the consolidated federal income tax liabilities and benefits among the
members of the consolidated group in accordance with the provisions of this
Agreement.
PARTIES TO THE AGREEMENT:
Federal Employer
Company Name and Address Identification Number
------------------------ ---------------------
New Century Energies, Inc. 84-1334327
Denver, Colorado
Public Service Company of Colorado 84-0296600
Denver, Colorado
Southwestern Public Service Company 75-0575400
Amarillo, Texas
New Century Services, Inc. 84-1393401
Denver, Colorado
Cheyenne Light, Fuel and Power Company 83-0110025
Cheyenne, Wyoming
WestGas Interstate, Inc. 84-1146601
Denver, Colorado
NC Enterprises, Inc. 84-1393468
Denver, Colorado
Green & Clear Lakes Company 84-6015505
Denver, Colorado
1480 Welton, Inc. 84-6015504
Denver, Colorado
PS Colorado Credit Corporation 84-1032526
Denver, Colorado
45
<PAGE>
PSR Investments, Inc. 84-1008701
Denver, Colorado
New Century International, Inc. 84-1396518
Denver, Colorado
Natural Fuels Corporation 84-1138036
Denver, Colorado
Fuel Resources Development Company 84-0606084
Denver, Colorado
e prime, inc. 84-1294626
Denver, Colorado
Young Gas Storage Company 76-0411694
Denver, Colorado
Texas Ohio Gas, Inc. 76-0229099
Denver, Colorado
Texas Ohio Gas Pipeline 76-0323102
Denver, Colorado
e prime Networks, Inc. 84-1378878
Denver, Colorado
e prime operating, inc. 84-1432058
Denver, Colorado
e prime projects international, inc. 84-1432055
Denver, Colorado
e prime Marketing, Inc. 84-1405841
Denver, Colorado
Quixx Corporation 75-2052223
Amarillo, Texas
Quixx Power Services, Inc. 75-2507740
Amarillo, Texas
Quixx Carolina, Inc. 75-2620106
Amarillo, Texas
Quixx WPP94, Inc. 75-2571713
Amarillo, Texas
Quixx Resources, Inc. 88-0352919
Amarillo, Texas
Quixx Borger Cogen, Inc. 52-2035347
Amarillo, Texas
46
<PAGE>
Quixxlin Corporation 74-2792015
Amarillo, Texas
Quixx Jamaica, Inc. 75-2572413
Amarillo, Texas
KES Montego, Inc. 94-3210528
Amarillo, Texas
Quixx Jamaica Power, Inc. 52-2035350
Amarillo, Texas
Quixx Mustang Station, Inc. 75-2673153
Amarillo, Texas
Utility Engineering Corporation 75-2052226
Amarillo, Texas
Precision Resource Company 75-2649652
Amarillo, Texas
Universal Utility Services Company 75-2648792
Amarillo, Texas
The Planergy Group, Inc. 76-0295947
Denver, Colorado
Planergy, Inc. 74-1931624
Denver, Colorado
Planergy (Delaware), Inc. 74-2803427
Denver, Colorado
Planergy New York, Inc. 74-2607771
Denver, Colorado
Planergy Power II, Inc. 76-0375390
Denver, Colorado
Planergy Services, Inc. 68-0138424
Denver, Colorado
Planergy Energy Services, Inc. 68-0138748
Denver, Colorado
Planergy Services USA, Inc. 68-0138749
Denver, Colorado
Cogeneration Capital Associates, Inc. 94-2749760
Denver, Colorado
Planergy Services of Houston, Inc. 68-0149373
Denver, Colorado
47
<PAGE>
Planergy Services of Texas, Inc. 68-0149372
Denver, Colorado
Planergy Services of California, Inc. 68-0041898
Denver, Colorado
New Century - Cadence, Inc. 84-1435388
Denver, Colorado
New Century - Centrus 84-1464846
Denver, Colorado
New Century Energy Telecommunications 84-1378877
Denver, Colorado
DEFINITIONS:
"Consolidated Tax" is the aggregate current federal income tax
liability for a tax year. It is the tax shown on the consolidated federal income
tax return and any adjustments thereto thereafter determined. The Consolidated
Tax will be the refund if the consolidated return shows a negative tax.
"Corporate Tax Credit" is a negative separate return tax of an
associate company for a tax year, equal to the amount by which the Consolidated
Tax is reduced by including a net corporate taxable loss or other net tax
benefit of such associate company in the consolidated tax return.
"Corporate Taxable Income" is the taxable income or loss of an
associate company for a tax year, computed as though such company had filed a
separate return on the same basis as used in the consolidated return, except
that dividend income from associate companies shall be disregarded, and other
intercompany transactions, eliminated in consolidation, shall be given
appropriate effect. It shall be further adjusted to allow for applicable rights
accrued to the associate company under the second paragraph of sub-section (f)
of this Agreement, but carryovers or carrybacks shall not be taken into account
if the associate company has been paid a Corporate Tax Credit therefor. If an
associate company is a member of the registered system's consolidated tax group
for only part of a tax year, that period will be deemed to be its tax year for
purposes of this Agreement.
"Separate Return Tax" is the tax on the Corporate Taxable Income of
an associate company computed as though such company were not a member of a
consolidated group.
These definitions shall apply, as appropriate, in the context of the Alternative
Minimum Tax ("AMT").
48
<PAGE>
TAX ALLOCATION PROCEDURES:
Notwithstanding anything in this Agreement to the contrary, the
Consolidated Tax shall be allocated among the Parties consistent with Rule 45(c)
of the Public Utility Holding Company Act of 1935, utilizing the "Separate
Return Tax" method.
(a) The Consolidated Tax, exclusive of the AMT, will be allocated
among the Parties based on the ratio of each member's Separate Return Tax to the
total Separate Return Tax. The positive tax liability allocated to any
subsidiary of the group will not exceed the Separate Return Tax of such
subsidiary.
(b) Consolidated AMT, i.e., positive consolidated Tentative Minimum
Tax (TMT) in excess of consolidated regular income tax, shall be allocated only
to those members who on a separate return basis would have an excess of TMT over
regular income tax (Excess). For purposes of this allocation, TMT and regular
income tax can be positive or negative. Consolidated AMT will be apportioned
among those members of the Affiliated Group in accordance with the ratio that
the Excess of each Member computed on a separate return basis bears to the total
amount of Excess for all members computed on a separate return basis. A member's
regular income tax allocation will not be reduced as the result of any AMT
allocation.
(c) An AMT credit shall be allocated in accordance with the ratio
that consolidated AMT was apportioned in sub-section (b) of this agreement. Only
those members that had an AMT liability for the current year are allocated the
credit. This credit is used to reduce the tax liability or increase the tax
reimbursement of such members in a future year only when the Affiliated Group is
not in a consolidated AMT position for that taxable year. The Parent shall
inform each member when and to what extent such credit will be utilized.
(d) Intercompany transactions eliminated by consolidation entries
which affect the consolidated tax will be restored to the appropriate member of
the group for the purpose of computing Separate Return Tax.
(e) Any material items taxed at different rates or involving other
special benefits or limitations included in the consolidated tax and separate
return tax for any year will be allocated to the individual members of the
group.
(f) Each member of the group having a corporate tax loss will be
included in the allocation of the Consolidated Tax. Those associate companies
with a positive allocation will pay the amount allocated and those associate
companies with a negative allocation will receive current payment for their
Corporate Tax Credit. These payments will be allocated to the members of the
group having Separate Return Tax as provided in sub-section (a) of this
Agreement.
If the aggregate of the members' corporate tax losses or other tax
benefits are not entirely utilized on the current year's consolidated return,
the consolidated carryback to the applicable prior tax year(s) will be allocated
in the same manner as provided in sub-section (g) of this Agreement. If these
losses or other tax benefits cannot be used through a carryback to a previous
consolidated return year, their carryover shall be equitably allocated to those
members whose investments or contributions generated the business or tax credit
or the capital loss, or whose activities generated other losses or tax benefits.
(g) In the event the Consolidated Tax liability is subsequently
revised by Internal Revenue Service audit adjustments, amended returns, claims
for refund, or otherwise, such changes shall be allocated in the same manner as
though the adjustments on which they are based had formed a part of the original
consolidated return.
49
<PAGE>
EFFECTIVE DATE:
This Agreement is effective for the allocation of the current
federal income tax liabilities of the Parties for the tax year in which final
approval is received for the merger of Public Service Company of Colorado and
Southwestern Public Service Company, and all subsequent years until this
Agreement is revised.
NEW MEMBERS:
If during a consolidated return period the Parent or a subsidiary
acquires or organizes another corporation that is required to be included in the
consolidated return, then such corporation shall join in and be bound by this
agreement.
APPROVAL:
This Agreement is subject to the approval of the Securities and
Exchange Commission. A copy of this Agreement will be filed as an exhibit to the
Form U5S Annual Report to the Securities and Exchange Commission by New Century
Energies, Inc. for the year in which final approval is received for the merger
of Public Service Company of Colorado and Southwestern Public Service Company.
Pursuant to the requirements of the Public Utility Holding Company
Act of 1935, the undersigned, duly authorized, have signed this Agreement on
behalf of the Parties indicated.
50
<PAGE>
SIGNATURE
Each undersigned system company has duly caused this annual report to be signed
on its behalf by the undersigned thereunto duly authorized pursuant to the
requirements of the Public Utility Holding Company Act of 1935. The signature of
each undersigned company shall be deemed to relate only to matters having
reference to such company or its subsidiaries.
NEW CENTURY ENERGIES, INC.
By: /s/ Teresa S. Madden
Teresa S. Madden
Controller
Dated: May 3, 1999
51
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM NEW CENTURY
ENERGIES, INC. CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 1998 AND
CONSOLIDATED STATEMENTS OF INCOME AND CASH FLOWS FOR THE YEAR ENDED DECEMBER 31,
1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 5,882,023
<OTHER-PROPERTY-AND-INVEST> 405,436
<TOTAL-CURRENT-ASSETS> 802,557
<TOTAL-DEFERRED-CHARGES> 581,948
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 7,671,964
<COMMON> 114,491
<CAPITAL-SURPLUS-PAID-IN> 1,751,895
<RETAINED-EARNINGS> 740,677
<TOTAL-COMMON-STOCKHOLDERS-EQ> 2,614,827
294,000
0
<LONG-TERM-DEBT-NET> 2,169,954
<SHORT-TERM-NOTES> 36,438
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 487,956
<LONG-TERM-DEBT-CURRENT-PORT> 134,005
0
<CAPITAL-LEASE-OBLIGATIONS> 35,591
<LEASES-CURRENT> 4,160
<OTHER-ITEMS-CAPITAL-AND-LIAB> 1,895,033
<TOT-CAPITALIZATION-AND-LIAB> 7,671,964
<GROSS-OPERATING-REVENUE> 3,610,905
<INCOME-TAX-EXPENSE> 135,596
<OTHER-OPERATING-EXPENSES> 2,960,404
<TOTAL-OPERATING-EXPENSES> 2,960,404
<OPERATING-INCOME-LOSS> 650,501
<OTHER-INCOME-NET> 31,851
<INCOME-BEFORE-INTEREST-EXPEN> 682,352
<TOTAL-INTEREST-EXPENSE> 199,467
<NET-INCOME> 341,957
5,332
<EARNINGS-AVAILABLE-FOR-COMM> 0
<COMMON-STOCK-DIVIDENDS> 260,330
<TOTAL-INTEREST-ON-BONDS> 185,745
<CASH-FLOW-OPERATIONS> 659,539
<EPS-PRIMARY> 3.06
<EPS-DILUTED> 3.05
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PUBLIC
SERVICE COMPANY OF COLORADO AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AS OF
DECEMBER 31, 1998 AND CONSOLIDATED STATEMENTS OF INCOME AND CASH FLOWS FOR THE
YEAR ENDED DECEMBER 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 4,054,389
<OTHER-PROPERTY-AND-INVEST> 215,284
<TOTAL-CURRENT-ASSETS> 543,674
<TOTAL-DEFERRED-CHARGES> 364,289
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 5,177,636
<COMMON> 0
<CAPITAL-SURPLUS-PAID-IN> 1,302,119
<RETAINED-EARNINGS> 325,213
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,627,332
194,000
0
<LONG-TERM-DEBT-NET> 1,607,604
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 402,795
<LONG-TERM-DEBT-CURRENT-PORT> 40,451
0
<CAPITAL-LEASE-OBLIGATIONS> 35,526
<LEASES-CURRENT> 4,030
<OTHER-ITEMS-CAPITAL-AND-LIAB> 1,265,898
<TOT-CAPITALIZATION-AND-LIAB> 5,177,636
<GROSS-OPERATING-REVENUE> 2,284,086
<INCOME-TAX-EXPENSE> 101,494
<OTHER-OPERATING-EXPENSES> 1,850,574
<TOTAL-OPERATING-EXPENSES> 1,850,574
<OPERATING-INCOME-LOSS> 433,512
<OTHER-INCOME-NET> 6,399
<INCOME-BEFORE-INTEREST-EXPEN> 439,911
<TOTAL-INTEREST-EXPENSE> 138,314
<NET-INCOME> 194,771
5,332
<EARNINGS-AVAILABLE-FOR-COMM> 0
<COMMON-STOCK-DIVIDENDS> 188,845
<TOTAL-INTEREST-ON-BONDS> 129,793
<CASH-FLOW-OPERATIONS> 421,218
<EPS-PRIMARY> 0.000
<EPS-DILUTED> 0.000
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SOUTHWESTERN
PUBLIC SERVICE COMPANY BALANCE SHEET AS OF DECEMBER 31, 1998 AND STATEMENTS OF
INCOME AND CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1998 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 1,729,339
<OTHER-PROPERTY-AND-INVEST> 124,627
<TOTAL-CURRENT-ASSETS> 117,537
<TOTAL-DEFERRED-CHARGES> 158,361
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 2,129,864
<COMMON> 0
<CAPITAL-SURPLUS-PAID-IN> 348,402
<RETAINED-EARNINGS> 389,818
<TOTAL-COMMON-STOCKHOLDERS-EQ> 738,220
100,000
0
<LONG-TERM-DEBT-NET> 530,618
<SHORT-TERM-NOTES> 9,000
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 85,162
<LONG-TERM-DEBT-CURRENT-PORT> 90,113
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 576,751
<TOT-CAPITALIZATION-AND-LIAB> 2,129,864
<GROSS-OPERATING-REVENUE> 951,187
<INCOME-TAX-EXPENSE> 65,696
<OTHER-OPERATING-EXPENSES> 719,812
<TOTAL-OPERATING-EXPENSES> 719,812
<OPERATING-INCOME-LOSS> 231,375
<OTHER-INCOME-NET> 7,611
<INCOME-BEFORE-INTEREST-EXPEN> 238,986
<TOTAL-INTEREST-EXPENSE> 58,303
<NET-INCOME> 114,987
0
<EARNINGS-AVAILABLE-FOR-COMM> 0
<COMMON-STOCK-DIVIDENDS> 75,157
<TOTAL-INTEREST-ON-BONDS> 54,321
<CASH-FLOW-OPERATIONS> 258,449
<EPS-PRIMARY> 0.000
<EPS-DILUTED> 0.000
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM NEW CENTURY
SERVICES, INC. BALANCE SHEET AS OF DECEMBER 31, 1998 AND STATEMENTS OF INCOME
AND CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1998 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> (118)
<OTHER-PROPERTY-AND-INVEST> 0
<TOTAL-CURRENT-ASSETS> 53,999
<TOTAL-DEFERRED-CHARGES> 1,366
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 55,247
<COMMON> 0
<CAPITAL-SURPLUS-PAID-IN> 0
<RETAINED-EARNINGS> 0
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1
0
0
<LONG-TERM-DEBT-NET> 0
<SHORT-TERM-NOTES> 25,150
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 0
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 30,097
<TOT-CAPITALIZATION-AND-LIAB> 55,247
<GROSS-OPERATING-REVENUE> 269,347
<INCOME-TAX-EXPENSE> 97
<OTHER-OPERATING-EXPENSES> 264,742
<TOTAL-OPERATING-EXPENSES> 264,742
<OPERATING-INCOME-LOSS> 4,605
<OTHER-INCOME-NET> (2,064)
<INCOME-BEFORE-INTEREST-EXPEN> 2,541
<TOTAL-INTEREST-EXPENSE> 2,444
<NET-INCOME> 0
0
<EARNINGS-AVAILABLE-FOR-COMM> 0
<COMMON-STOCK-DIVIDENDS> 0
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 10,529
<EPS-PRIMARY> 0.000
<EPS-DILUTED> 0.000
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CHEYENNE
LIGHT, FUEL & POWER BALANCE SHEET AS OF DECEMBER 31, 1998 AND STATEMENTS OF
INCOME AND CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1998 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 72,011
<OTHER-PROPERTY-AND-INVEST> 11
<TOTAL-CURRENT-ASSETS> 10,040
<TOTAL-DEFERRED-CHARGES> 1,813
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 83,875
<COMMON> 0
<CAPITAL-SURPLUS-PAID-IN> 3,000
<RETAINED-EARNINGS> 19,011
<TOTAL-COMMON-STOCKHOLDERS-EQ> 22,011
0
0
<LONG-TERM-DEBT-NET> 29,001
<SHORT-TERM-NOTES> 15,875
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 0
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 16,988
<TOT-CAPITALIZATION-AND-LIAB> 83,875
<GROSS-OPERATING-REVENUE> 55,684
<INCOME-TAX-EXPENSE> 847
<OTHER-OPERATING-EXPENSES> 50,771
<TOTAL-OPERATING-EXPENSES> 50,771
<OPERATING-INCOME-LOSS> 4,913
<OTHER-INCOME-NET> 57
<INCOME-BEFORE-INTEREST-EXPEN> 4,970
<TOTAL-INTEREST-EXPENSE> 2,424
<NET-INCOME> 1,699
0
<EARNINGS-AVAILABLE-FOR-COMM> 0
<COMMON-STOCK-DIVIDENDS> 0
<TOTAL-INTEREST-ON-BONDS> 1,631
<CASH-FLOW-OPERATIONS> 8,606
<EPS-PRIMARY> 0.000
<EPS-DILUTED> 0.000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM WESTGAS
INTERSTATE, INC. BALANCE SHEET AS OF DECEMBER 31, 1998 AND STATEMENTS OF INCOME
AND CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1998 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 485
<OTHER-PROPERTY-AND-INVEST> 0
<TOTAL-CURRENT-ASSETS> 416
<TOTAL-DEFERRED-CHARGES> 0
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 901
<COMMON> 600
<CAPITAL-SURPLUS-PAID-IN> 0
<RETAINED-EARNINGS> 226
<TOTAL-COMMON-STOCKHOLDERS-EQ> 826
0
0
<LONG-TERM-DEBT-NET> 0
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 0
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 75
<TOT-CAPITALIZATION-AND-LIAB> 901
<GROSS-OPERATING-REVENUE> 177
<INCOME-TAX-EXPENSE> 47
<OTHER-OPERATING-EXPENSES> 63
<TOTAL-OPERATING-EXPENSES> 63
<OPERATING-INCOME-LOSS> 114
<OTHER-INCOME-NET> 18
<INCOME-BEFORE-INTEREST-EXPEN> 132
<TOTAL-INTEREST-EXPENSE> 0
<NET-INCOME> 85
0
<EARNINGS-AVAILABLE-FOR-COMM> 0
<COMMON-STOCK-DIVIDENDS> 0
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 97
<EPS-PRIMARY> 0.000
<EPS-DILUTED> 0.000
</TABLE>
