SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- - ---- EXCHANGE ACT OF 1934
For the quarterly period ended SEPTEMBER 30, 1994
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- - ---- EXCHANGE ACT OF 1934
For the transition period from _____________ to _______________
Commission file number 1-3016
_________________________
Wisconsin Public Service Corporation
____________________________________________________________________________
(Exact name of Registrant as specified in its charter)
Wisconsin 39-0715160
____________________________________________________________________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
700 North Adams St., P. O. Box 19001, Green Bay, Wisconsin 54307
____________________________________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (414) 433-1445
______________________________________________________________________________
Former name, former address and former fiscal year if changed since last
report
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that
the Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes x No
______ ______
Number of shares outstanding of each class of common stock, as of
the close of the period covered by this report.
________________________________________________________________
Common Stock, $4 par value 23,896,962 shares
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Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
WISCONSIN PUBLIC SERVICE CORPORATION
BALANCE SHEETS
<CAPTION>
September 30 December 31
1994 1993
------------ -----------
(Thousands)
<S> <C> <C>
ASSETS
Utility Plant:
In-service -
Electric . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,407,142 $ 1,374,662
Gas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196,584 183,798
-------------- -------------
1,603,726 1,558,460
Less - Accumulated provision for depreciation. . . . . . . . 842,586 801,056
-------------- -------------
761,140 757,404
Nuclear decommissioning trusts . . . . . . . . . . . . . . . 60,348 56,699
Construction in progress . . . . . . . . . . . . . . . . . . 8,886 11,781
Nuclear fuel, less accumulated provisions for amortization .
of $134,523, and $130,011, respectively . . . . . . . . . 13,917 17,981
-------------- -------------
Net utility plant. . . . . . . . . . . . . . . . . . . . . 844,291 843,865
-------------- -------------
Current Assets:
Cash and equivalents . . . . . . . . . . . . . . . . . . . . . 23,269 5,391
Customer and other receivables, net of reserves. . . . . . . . 48,885 66,511
Accrued utility revenues . . . . . . . . . . . . . . . . . . . 18,292 37,314
Fossil fuel, at average cost . . . . . . . . . . . . . . . . . 10,099 10,208
Gas in storage, at average cost . . . . . . . . . . . . . . . 19,633 19,885
Materials and supplies, at average cost. . . . . . . . . . . . 20,695 19,411
Prepayments and other. . . . . . . . . . . . . . . . . . . . . 16,018 21,420
-------------- -------------
Total current assets . . . . . . . . . . . . . . . . . 156,891 180,140
-------------- -------------
Deferred Charges . . . . . . . . . . . . . . . . . . . . . . . . 111,616 118,128
Investments and Other Assets . . . . . . . . . . . . . . . . . . 64,601 56,708
-------------- -------------
$ 1,177,399 $ 1,198,841
============== =============
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock equity. . . . . . . . . . . . . . . . . . . . . . $ 440,770 $ 434,503
Preferred stock with no mandatory redemption . . . . . . . . . 51,200 51,200
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . 312,169 314,225
-------------- -------------
Total capitalization . . . . . . . . . . . . . . . . . 804,139 799,928
-------------- -------------
Current Liabilities:
Note payable . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 10,000
Commercial paper . . . . . . . . . . . . . . . . . . . . . . . -- 11,000
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . 43,697 64,113
Accrued taxes. . . . . . . . . . . . . . . . . . . . . . . . . 1,763 3,266
Accrued interest . . . . . . . . . . . . . . . . . . . . . . . 5,012 7,695
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,666 9,956
-------------- -------------
Total current liabilities. . . . . . . . . . . . . . . 76,138 106,030
-------------- -------------
Other Long-Term Liabilities and Deferred Credits:
Accumulated deferred income taxes. . . . . . . . . . . . . . . 134,346 138,952
Accumulated deferred investment credits. . . . . . . . . . . . 32,807 34,210
Regulatory liabilities . . . . . . . . . . . . . . . . . . . . 64,326 61,434
Other long-term liabilities. . . . . . . . . . . . . . . . . . 65,643 58,287
-------------- -------------
297,122 292,883
-------------- -------------
Commitments and Contingencies -------------- -------------
$ 1,177,399 $ 1,198,841
============== =============
The accompanying notes to financial statements are an integral part of these statements.
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<TABLE>
WISCONSIN PUBLIC SERVICE CORPORATION
STATEMENTS OF CAPITALIZATION
September 30 December 31
1994 1993
------------ ------------
(Thousands)
<S> <C> <C>
COMMON STOCK EQUITY:
Common stock, $4 par value, 32,000,000 shares authorized;
23,896,962 shares outstanding . . . . . . . . . . . . . . . . . $ 95,588 $ 95,588
Premium on capital stock . . . . . . . . . . . . . . . . . . 73,605 73,605
Retained earnings. . . . . . . . . . . . . . . . . . . . . . 293,785 288,693
ESOP loan guarantee. . . . . . . . . . . . . . . . . . . . . (22,208) (23,383)
------------ -------------
Total common stock equity. . . . . . . . . . . . . . 440,770 434,503
------------ -------------
PREFERRED STOCK:
Cumulative, $100 par value, 1,000,000 shares authorized;
With no mandatory redemption -
Series Shares Outstanding
5.00% 132,000. . . . . . . . . 13,200 13,200
5.04% 30,000. . . . . . . . . 3,000 3,000
5.08% 50,000. . . . . . . . . 5,000 5,000
6.76% 150,000. . . . . . . . . 15,000 15,000
6.88% 150,000. . . . . . . . . 15,000 15,000
------------ -------------
Total preferred stock. . . . . . . . . . . . . . . . . 51,200 51,200
------------ -------------
LONG-TERM DEBT:
First mortgage bonds -
Series Year Due
5-1/4% 1998 . . . . . . . . . . 50,000 50,000
7.30% 2002 . . . . . . . . . . 50,000 50,000
6.80% 2003 . . . . . . . . . . 50,000 50,000
6-1/8% 2005 . . . . . . . . . . 9,075 9,075
6.90% 2013 . . . . . . . . . . 22,000 22,000
10-1/8% 2014 . . . . . . . . . . -- 1,000
8.80% 2021 . . . . . . . . . . 60,000 60,000
7-1/8% 2023 . . . . . . . . . . 50,000 50,000
------------ -------------
291,075 292,075
Unamortized discount and premium on bonds, net . . . . . . . (1,175) (1,257)
------------ -------------
Total first mortgage bonds . . . . . . . . . . . . . . . . 289,900 290,818
ESOP loan guarantee. . . . . . . . . . . . . . . . . . . . . 22,208 23,383
Other long-term debt . . . . . . . . . . . . . . . . . . . . 61 24
------------ -------------
Total long-term debt . . . . . . . . . . . . . . . . 312,169 314,225
------------ -------------
Total capitalization . . . . . . . . . . . . . . . . . . . . . . $ 804,139 $ 799,928
============ =============
The accompanying notes to financial statements are an integral part of these statements.
- 3 -
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<TABLE>
WISCONSIN PUBLIC SERVICE CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED
<CAPTION>
September 30
1994 1993
---------- -----------
(Thousands)
<S> <C> <C>
Cash Flows From Operating Activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 44,246 $ 49,260
Adjustments to reconcile net income to net cash from
operating activities -
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . 42,108 45,465
Amortization of nuclear fuel and other . . . . . . . . . . . . . 21,474 19,632
Deferred income taxes. . . . . . . . . . . . . . . . . . . . . . (1,346) (1,257)
Investment credit restored . . . . . . . . . . . . . . . . . . . (1,403) (1,488)
AFUDC equity . . . . . . . . . . . . . . . . . . . . . . . . . . (82) (269)
Pension funding. . . . . . . . . . . . . . . . . . . . . . . . . (8,131) (7,373)
Post retirement liability. . . . . . . . . . . . . . . . . . . . 5,277 4,436
Deferred DSM expenditures. . . . . . . . . . . . . . . . . . . . (7,338) (15,711)
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,981 10,883
Changes in -
Customer and other receivables. . . . . . . . . . . . . . . . . 17,626 6,886
Accrued utility revenues. . . . . . . . . . . . . . . . . . . . 19,022 13,094
Fossil fuel . . . . . . . . . . . . . . . . . . . . . . . . . . 109 4,436
Gas in storage. . . . . . . . . . . . . . . . . . . . . . . . . 252 (11,167)
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . (20,416) (1,406)
Miscellaneous current and accrued liabilities . . . . . . . . . 2,181 (5,888)
Accrued taxes . . . . . . . . . . . . . . . . . . . . . . . . . (1,503) 6,344
---------- ----------
Net Cash From Operating Activities. . . . . . . . . . . . . . 116,057 115,877
---------- ----------
Cash Flows From (Used For) Investing Activities:
Construction and nuclear fuel expenditures, including AFUDC debt (46,025) (46,654)
Decommissioning funding. . . . . . . . . . . . . . . . . . . . . (3,649) (4,746)
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,872 (1,636)
---------- ----------
Net cash from (used for) investing activities . . . . . . . . (47,802) (53,036)
---------- ----------
Cash Flows From (Used For) Financing Activities:
Proceeds from issuance of common stock . . . . . . . . . . . . . - 1,693
Sale of first mortgage bonds . . . . . . . . . . . . . . . . . . - 150,000
Redemption and maturity of first mortgage bonds. . . . . . . . . (1,000) (166,753)
Change in commercial paper . . . . . . . . . . . . . . . . . . . (11,000) (10,000)
Preferred stock dividends. . . . . . . . . . . . . . . . . . . . (2,333) (2,396)
Common stock dividends . . . . . . . . . . . . . . . . . . . . . (36,044) (31,411)
---------- ----------
Net cash from (used for) financing activities . . . . . . . . (50,377) (58,867)
---------- ----------
Net Increase in Cash and Equivalents . . . . . . . . . . . . . . . 17,878 3,974
Cash and Equivalents at Beginning of Period. . . . . . . . . . . . 5,391 178
---------- ----------
Cash and Equivalents at End of Period. . . . . . . . . . . . . . . $ 23,269 $ 4,152
========== ==========
Cash Paid During Period For:
Interest, less amount capitalized. . . . . . . . . . . . . . . . $ 18,463 $ 17,324
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,830 $ 21,593
The accompanying notes to financial statements are an integral part of these statements.
-4-
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<TABLE>
WISCONSIN PUBLIC SERVICE CORPORATION
STATEMENTS OF RETAINED EARNINGS
FOR THE NINE MONTHS ENDED
September 30,
1994 1993
--------- ---------
(Thousands)
<S> <C> <C>
Balance at Beginning of Period . . . . . . . . . . . . . . . . . . . . $ 288,693 $ 272,019
Add - Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,246 . 49,260
-------- --------
332,939 321,279
-------- --------
Deduct -
Cash dividends declared on preferred stock . . . . . . . . . . . . . . 3,111 . 3,332
Cash dividends declared on common stock
($1.345 and $1.315 per share, respectively). . . . . . . 32,142 31,411
Loss on reacquired preferred stock . . . . . . . . . . . . - 148
Dividend to parent . . . . . . . . . . . . . . . . . . . . . . . . . . 3,901 . -
-------- --------
39,154 34,891
-------- --------
Balance at End of Period . . . . . . . . . . . . . . . . . . . . . . . $ 293,785 $ 286,388
======== ========
The accompanying notes to financial statements are an integral
part of these statements.
-5-
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<TABLE>
WISCONSIN PUBLIC SERVICE CORPORATION
STATEMENTS OF INCOME
AS OF SEPTEMBER 30
Three Months Ended Nine Months Ende
1994 1993 1994 1993
------ ------- ------ ------
(Thousands) (Thousands)
<S> <C> <C> <C> <C>
Operating Revenues:
Electric . . . . . . . . . . . . . . . . . . . . . . . . . $ 124,340 $128,598 $363,842 $371,738
Gas. . . . . . . . . . . . . . . . . . . . . . . . . . . 25,290 27,712 134,087 131,268
-------- ------- ------- -------
149,630 156,310 497,929 503,006
-------- ------- ------- -------
Operating Expenses:
Operation -
Electric production fuels. . . . . . . . . . . . . . . 29,177 30,008 85,479 88,842
Cost of gas sold . . . . . . . . . . . . . . . . . . . 18,946 20,626 93,274 93,388
Purchased power. . . . . . . . . . . . . . . . . . . . 8,995 5,995 28,747 22,257
Other. . . . . . . . . . . . . . . . . . . . . . . . . 36,745 35,549 110,384 108,792
Maintenance. . . . . . . . . . . . . . . . . . . . . . . 9,877 10,732 35,689 35,299
Depreciation . . . . . . . . . . . . . . . . . . . . . . 14,042 15,054 42,108 45,465
Taxes -
Federal income . . . . . . . . . . . . . . . . . . . . 5,307 8,238 18,909 21,207
Investment credit restored . . . . . . . . . . . . . . (498) (497) (1,403) (1,488)
State income . . . . . . . . . . . . . . . . . . . . . 2,036 1,958 5,863 5,578
Gross receipts and other . . . . . . . . . . . . . . . 6,544 6,354 19,531 18,884
-------- ------- ------- -------
131,171 134,017 438,581 438,224
-------- ------- ------- -------
Operating Income . . . . . . . . . . . . . . . . . . . . . 18,459 22,293 59,348 64,782
-------- ------- ------- -------
Other Income and (Deductions):
Allowance for equity funds used during construction. . . 40 16 82 269
Other, net . . . . . . . . . . . . . . . . . . . . . . . 1,381 800 3,715 3,843
Income taxes . . . . . . . . . . . . . . . . . . . . . . 13 (205) (23) (189)
-------- ------- ------- -------
1,434 611 3,774 3,923
-------- ------- ------- -------
Income Before Interest Expense . . . . . . . . . . . . . . 19,893 22,904 63,122 68,705
-------- ------- ------- -------
Interest Expense:
Interest on long-term debt . . . . . . . . . . . . . . . 5,770 5,883 17,612 18,481
Allowance for borrowed funds used during construction. . (38) 98 (100) (160)
Other interest . . . . . . . . . . . . . . . . . . . . . 477 375 1,364 1,124
-------- ------- ------- -------
6,209 6,356 18,876 19,445
-------- ------- ------- -------
Net Income . . . . . . . . . . . . . . . . . . . . . . . . 13,684 16,548 44,246 49,260
Preferred Stock Dividend Requirements. . . . . . . . . . . 778 875 2,333 2,533
-------- ------- ------- -------
Earnings on Common Stock . . . . . . . . . . . . . . . . . . $ 12,906 15,673 41,913 46,727
======== ======= ======= =======
Earnings Per Average Share of Common Stock . . . . . . . . $0.54 $0.66 $1.75 $1.96
======== ======= ======= =======
The accompanying notes to financial statements are an integral part of these statements.
- 6 -
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<PAGE>
NOTES TO FINANCIAL STATEMENTS
(1) Financial Information: The following financial statements have been
prepared by Wisconsin Public Service Corporation (the "Company"),
without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission ("SEC") and, in the opinion of Management,
include all adjustments (consisting only of normal recurring
adjustments) necessary for a fair statement of results for each period
shown. Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such
SEC rules and regulations. The Company believes that the disclosures
made are adequate to make the information presented not misleading. It
is recommended that these financial statements be read in conjunction
with the financial statements and notes thereto included in the
Company's latest annual report on Form 10-K and with the Company's March
31, 1994 and June 30, 1994 Form 10-Q.
Because of the seasonal nature of the Company's operations, interim
results are not necessarily indicative of annual results.
(2) Holding Company Formation: Effective September 1, 1994, all of the
outstanding shares of common stock of the Company were exchanged for $1
par common stock of WPS Resources Corporation ("Resources"). Resources
is a newly formed holding company which owns all of the oustanding
common stock of the Company and of certain non-utility subsidiaries. In
connection with this share exchange, the Company transferred its
investments in certain non-utility subsidiaries to Resources at a cost
of $3.9 million. This transfer has been recorded as a dividend.
Item 2. Management's Discussion and Analysis of Financial Condition and
----------------------------------------------------------------
Results of Operations
---------------------
RESULTS OF OPERATIONS
- - ---------------------
Third Quarter of 1994 Compared to the Third Quarter of 1993
- - -----------------------------------------------------------
Revenues -
Electric operating revenues decreased $4.3 million, or 3.3%, during the third
quarter of 1994 as compared to the third quarter of 1993. Electric revenues
were lower due to a 4.0% decrease in retail Wisconsin rates that took effect
January 1, 1994. This rate decrease was partially offset by 4.3% increase in
kilowatt-hour ("Kwh") sales. Residential Kwh sales increased .9% due to
warmer weather. Commercial and industrial Kwh sales rose 4.9%, reflecting the
warm weather and customer growth. Wholesale Kwh sales increased 6.3%.
Gas operating revenues decreased $2.4 million, or 8.7%, during the third
quarter of 1994 as compared to the third quarter of 1993. Gas revenues were
lower due to an 10.8% decrease in the cost of gas. This decrease was
partially offset by a 5.3% increase in therm sales and a .6% increase in
retail Wisconsin rates that took effect January 1, 1994.
-7-
<PAGE>
Expenses -
Electric production fuels decreased $.8 million, or 2.8%, in the third quarter
of 1994 as compared with the third quarter of 1993. This decrease was due to
a 1.8% decrease in generation and a 2.7% reduction in coal costs per Kwh
generated. Lower coal costs reflect less expensive coal that is being
purchased on the spot market.
Gas purchased for resale decreased $1.7 million, or 8.1%, in the third quarter
of 1994 as compared with the third quarter of 1993. This decrease was due to
the lower cost of gas discussed earlier.
Purchased power increased $3.0 million, or 50.0%, in the third quarter of 1994
as compared with the third quarter of 1993. The primary reason for this
increase was higher consumption in electric energy of 4.3%, while the
Company's coal generation was down 2.2%. Coal related generation was down due
to the Soo-Line railroad strike, which reduced coal inventories at these
plants. The Federal government has intervened and has issued an injunction
through February 1995, but there currently is a backlog in rail shipments.
Depreciation decreased $1.0 million, or 6.7%, in the third quarter of 1994 as
compared with the third quarter of 1993. The primary factor was a
depreciation rate order from the PSCW that took effect January 1, 1994, which
reduced the annual depreciation provision by an estimated $5.8 million.
Federal and state income taxes decreased $2.8 million, or 28.0%, in the third
quarter of 1994 as compared with the third quarter of 1993, due to primarily
to lower earnings.
First Nine Months of 1994 Compared to the First Nine Months of 1993
- - -------------------------------------------------------------------
Revenues -
Electric operating revenues decreased $7.9 million, or 2.1% for the first nine
months of 1994 as compared to 1993. This decrease was due to a 4.0% reduction
in retail Wisconsin rates that took effect January 1, 1994. This decrease was
partially offset by an overall 4.4% increase in Kwh sales. Residential Kwh
sales increased 3.4% due primarily to weather. Commercial and industrial Kwh
sales rose 6.1%, reflecting the weather and customer growth. Wholesale Kwh
sales were higher by 1.0%.
Gas operating revenues increased $2.8 million, or 2.2% for the first nine
months of 1994 as compared to 1993. Gas revenues were higher due to a 7.7%
increase in sales volume due primarily to a cold first quarter and a .6%
increase in Wisconsin retail rates that took effect January 1, 1994. These
increases were partially offset by a 5.8% reduction in the cost of gas.
Expenses -
Electric production fuels decreased $3.4 million, or 3.8%, during the first
nine months of 1994 as compared to the same period in 1993, even though coal
and nuclear generation were up 1.8%. This decrease in the cost of fuel was
primarily the result of less expensive coal which has been purchased on the
spot market, which decreased fuel cost per Kwh by 7.1%.
-8-
<PAGE>
Gas purchased for resale decreased $.1 million, or .1%, during the first nine
months of 1994 compared to the same period in 1993. Even though gas volumes
were up by 7.7%, this was offset by a 5.8% reduction in the cost of gas.
Purchased power increased $6.5 million, or 29.2%, during the first nine months
of 1994 compared to the same period in 1993. This was the result of higher
Kwh purchases of 31.7%, which was caused by the cold winter which raised
overall demand for electricity, and the Soo-Line railroad strike during the
third quarter that impacted the Company's ability to operate its coal-fired
generating units.
Depreciation decreased $3.4 million, or 7.4%, during the first nine months of
1994 compared to the same period in 1993. The primary factor was a
depreciation rate order from the PSCW that took effect January 1, 1994, which
reduced the annual depreciation provision by an estimated $5.8 million.
Federal and state income taxes decreased $2.0 million, or 7.5%, during the
first nine months of 1994 compared to the same period in 1993. This decrease
was due primarily to lower earnings.
FINANCIAL CONDITION
- - -------------------
The Company continues to maintain good liquidity levels and a financial
condition considered to be strong by utility analysts. Internally generated
funds exceeded the Company's cash requirements so short-term borrowings were
reduced during the first nine months of 1994, and short-term investments have
increased. No external funding difficulties are anticipated in the future.
Pretax interest coverage was 4.3 times for the 12 months ended September 30,
1994.
The Company's bond ratings are AA+ (Standard & Poor's) and Aa2 (Moody's).
For the five-year period 1994-1998, internally generated funds are expected to
lag construction expenditures and other investments totalling $533 million by
about $131 million. These expenditures are comprised of $361 million for
electric construction, which includes new generation, $34 million for nuclear
fuel, $49 million for gas construction, and $33 million for other construction
expenditures, $56 million for funding of nuclear plant decommissioning,
certain employee benefit plans, and non-utility investments. The Company
currently expects to finance this shortfall in internally generated funds by
net bond additions of $75 million, and short-term debt of $56 million.
However, no bond sales are anticipated until after 1996.
The Company's Kewaunee nuclear plant is currently licensed through the year
2013. Physical decommissioning of the plant is expected to occur during the
period 2014-2021 with additional expenditures being incurred during the period
2022-2050. Costs to decommission in current dollars is $147 million and the
undiscounted amount is $785 million. Management does not anticipate
decommissioning to have any negative impact on the Company's liquidity or
capital resources, since the decommissioning costs are being funded through
external decommissioning trusts.
The Company has an electric rate application pending with the PSCW and
anticipates to reduce its Wisconsin retail electric rates by at least 2.5%
beginning January 1, 1995. The exact amount of the rate decrease will be
determined by the PSCW after a hearing.
-9-
<PAGE>
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
As reported in Part I, Item 1. Business - Other, pages 8 and 9, in the
Wisconsin Public Service Corporation ("WPS") Form 10-K for the year ended
December 31, 1993, WPS petitioned for review to the Brown County Circuit Court
limited portions of the PSCW Advance Plan 6 order dated September 1992
associated with the method to be used to incorporate environmental
externalities in system planning. An intervenor, Wisconsin's Environmental
Decade, Inc., petitioned for review on a related issue to the Circuit Court in
Dane County. The WPS and intervenor petitions were combined and heard by the
Dane County Circuit Court ("Court"). On September 2, 1994, the Court ruled
that while the PSCW has the authority to require monetization of greenhouse
gases for economic as opposed to environmental risk assement purposes, there
is no substantial evidence in the Advance Plan 6 record to support the
greenhouse gas monetization values chosen by the PSCW. The Court remanded the
decision to the PSCW and required that the PSCW establish the factual
foundation for the monetization which it implemented in Advance Plan 6.
Item 6. Exhibits and Reports on Form 8-K.
---------------------------------
(a) Exhibits
The following documents are filed herewith:
(11) Statement Regarding: Computation of Per Share Earnings
(27) Financial Data Schedule
(b) Reports on Form 8-K
-------------------
The company filed a current report on Form 8-K dated September
1, 1994 reporting that on September 1, 1994 Articles of Share
Exchange implementing the Agreement and Plan of Share Exchange
dated January 17, 1994 between Resources and the Company were
filed in the office of the Wisconsin Secretary of State.
-10-
<PAGE>
EXHIBIT INDEX
-------------
Exhibit
-------
11 Statement Regarding: Computation of Per Share
Earnings
27 Financial Data Schedule
<PAGE>
SIGNATURES
__________
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Wisconsin Public Service Corporation
____________________________________
(Registrant)
/s/R. H. Knuth
____________________________________
(Signature)
R. H. Knuth
Assistant Vice President Secretary
Date October 31, 1994
_____________________
/s/Diane L. Ford
____________________________________
(Signature)
Diane L. Ford
Chief Accounting Officer
<PAGE>
</TABLE>
<TABLE>
Exhibit 11
WISCONSIN PUBLIC SERVICE CORPORATION
INFORMATION WITH RESPECT TO THE COMPUTATION OF EARNINGS PER SHARE OF COMMON S
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
--------------------- ---------------------
(Thousands) (Thousands)
1993 1994 1993 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
SHARES OF COMMON STOCK OUTSTANDING AT
BEGINNING OF PERIOD 23,897 23,897 23,846 23,897
Shares of common stock issued during
this period -
Number
Date of Issue of Shares
------------- ---------
January 27, 1993 10,341 10
February 26, 1993 9,434 10
March 20, 1993 22,142 22
March 24, 1993 8,901 9
---------- ---------- ---------- ----------
SHARES OF COMMON STOCK OUTSTANDING AT
END OF PERIOD 23,897 23,897 23,897 23,897
========== ========== ========== ==========
COMPUTATION OF DAILY WEIGHTED AVERAGE
SHARES OUTSTANDING:
Shares of common stock outstanding at
beginning of period -
Number Number
of of
Days Shares
----- ------
Sept 30, 1993 92 23,896,962 2,198,520
Sept 30, 1993 26 23,846,144 620,000
Sept 30, 1994 92 23,896,962 2,198,521
Sept 30, 1994 273 23,896,962 6,523,871
Shares of common stock outstanding
after shares issued during the period -
Number Number
of of
Days Shares
---- ------
Sept 30, 1993 30 23,856,485 715,695
Sept 30, 1993 22 23,865,919 525,050
Sept 30, 1993 4 23,888,061 95,552
Sept 30, 1993 191 23,896,962 4,564,320
---------- ---------- ---------- ----------
Total days shares outstanding 2,198,520 2,198,521 6,520,617 6,523,871
========== ========== ========== ==========
AVERAGE NUMBER OF SHARES OF COMMON
STOCK OUTSTANDING BASED ON DAILY
WEIGHTED AVERAGE COMPUTATIONS 23,897 23,897 23,885 23,897
========== ========== ========== ==========
EARNINGS ON COMMON STOCK, as set forth
in statements of income $15,673 $12,906 $46,727 $41,913
========== ========== ========== ==========
EARNINGS PER SHARE OF COMMON STOCK
BASED ON WEIGHTED AVERAGE SHARES
OUTSTANDING $0.66 $0.54 $1.96 $1.75
========== ========== ========== ==========
The accompanying notes to financial statements are an integral part of these statements.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
The schedule contains summary financial information extracted from
the Balance Sheet, Income Statement and Capitalization Statement
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> OTHER 9-MOS
<FISCAL-YEAR-END> DEC-31-1994 DEC-31-1994
<PERIOD-END> SEP-30-1994 SEP-30-1994
<BOOK-VALUE> PER-BOOK PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 844291000 0
<OTHER-PROPERTY-AND-INVEST> 64601000 0
<TOTAL-CURRENT-ASSETS> 156891000 0
<TOTAL-DEFERRED-CHARGES> 111616000 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 1177399000 0
<COMMON> 95588000 0
<CAPITAL-SURPLUS-PAID-IN> 73605000 0
<RETAINED-EARNINGS> 271577000<F1> 0
<TOTAL-COMMON-STOCKHOLDERS-EQ> 440770000 0
0 0
51200000 0
<LONG-TERM-DEBT-NET> 312169000 0
<SHORT-TERM-NOTES> 10000000 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 363260000 0
<TOT-CAPITALIZATION-AND-LIAB> 1177399000 0
<GROSS-OPERATING-REVENUE> 0 497929000
<INCOME-TAX-EXPENSE> 0 23369000
<OTHER-OPERATING-EXPENSES> 0 415212000
<TOTAL-OPERATING-EXPENSES> 0 438581000
<OPERATING-INCOME-LOSS> 0 59348000
<OTHER-INCOME-NET> 0 3774000
<INCOME-BEFORE-INTEREST-EXPEN> 0 63122000
<TOTAL-INTEREST-EXPENSE> 0 18876000
<NET-INCOME> 0 44246000
0 2333000
<EARNINGS-AVAILABLE-FOR-COMM> 0 41913000
<COMMON-STOCK-DIVIDENDS> 0 36044000
<TOTAL-INTEREST-ON-BONDS> 0 18463000
<CASH-FLOW-OPERATIONS> 0 111273000
<EPS-PRIMARY> 0 1.75
<EPS-DILUTED> 0 1.75
<FN>
<F1>Gross retained earnings less ESOP loan gauruntee
</FN>
</TABLE>
