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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 17, 1995
WEST TEXAS UTILITIES COMPANY
(Exact name of registrant as specified in its charter)
TEXAS
(State or other jurisdiction of incorporation)
0-340 75-0646790
(Commission File Number) (IRS Employer Identification No.)
301 Cypress Street, Abilene, Texas 79601-5820
(Address of principal executive offices) (zip code)
(915) 674-7000
(Registrant's telephone number, including area code)
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Item 5. Other Events
Set forth below is selected financial data for West Texas Utilities
Company (Company), a wholly-owned electric operating subsidiary of Central
and South West Corporation (CSW). The unaudited financial information for
the fiscal year ended December 31, 1994 is being provided in anticipation
of a possible debt offering by the Company.
The Company's net income for common stock increased to $37 million in
1994 compared to $29 million in 1993. This increase is primarily a
reflection of the following items. Electric operating revenues decreased
by $2.5 million or 1% in 1994 compared to 1993 due to a decrease in off-
system sales, which was partially offset by higher retail sales. The
decrease in electric operating revenues was more than offset by lower
operating expenses of approximately $10.6 million resulting from the
absence of restructuring charges in 1994 and lower fuel and purchased power
expenses. Operating expenses were also impacted by an increase in other
operating expenses in 1994 reflecting a reimbursement in 1993 for the
settlement of a dispute relating to a coal supply contract. A $2.3 million
increase in other income resulting from tax benefits received under the
Company's tax sharing agreement with CSW also contributed to the 1994
increase in net income.
In 1993, the Company accrued $15 million (pre-tax) to meet the costs
of a restructuring and early retirement program. The restructuring charge
in 1993 was partially offset by a one-time $5.4 million increase in net
income resulting from a change in accounting for unbilled revenues, the
purpose of which was to match revenues with production expenses on a more
timely basis and to conform to the prevalent practice in the electric
utility industry. In addition, net income in 1993 was reduced by $1.6
million for the adoption of Statement of Financial Accounting Standards No.
112, Employers' Accounting for Postemployment Benefits.
For additional information relating to the Company's results of
operations during 1993, see the Company's Annual Report on Form 10-K for
the fiscal year ended December 31, 1993.
SELECTED FINANCIAL INFORMATION
For the Years Ended December 31
(thousands)
1994 1993 1992 1991
(Unaudited)
Operating Revenues $342,991 $345,445 $315,370 $318,966
Operating Income 54,763 46,576 57,302 57,925
Income before cumulative effect of 37,366 26,517 35,007 36,368
change in accounting principles
Cumulative effect of change in -- 3,779 -- --
accounting principles
Net Income 37,366 30,296 35,007 36,368
Net Utility Plant 663,855 653,426 651,221 650,833
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CAPITALIZATION AT DECEMBER 31, 1994
(thousands except ratios)
Dollars Percent
(UNAUDITED)
Common Equity $271,954 55.7%
Preferred Stock 6,291 1.3%
Long-term Debt (1) 210,047 43.0%
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$488,292 100.0%
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(1) Does not include $0.7 million of long-term debt classified as due
within 12 months.
West Texas Utilities Company
Ratio of Earnings to Fixed Charges
For the Twelve Months Ended December 31, 1994
(thousands except percentages)
(UNAUDITED)
Operating income $54,763
Adjustments:
Federal income taxes 7,900
Provision for deferred Federal 8,377
income taxes
Deferred investment tax credits (1,321)
Other income and deductions 4,210
Allowance for borrowed and equity
funds
used during construction 474
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Earnings $74,403
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Fixed charges:
Interest on long-term debt $18,547
Other interest 3,534
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Fixed Charges $22,081
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Ratio of Earnings to Fixed Charges 3.37
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WEST TEXAS UTILITIES COMPANY
Date: February 17, 1995
R. Russell Davis
Controller and
Principal Accounting Officer
