SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
FORM U-3A-2
STATEMENT BY HOLDING COMPANY
CLAIMING EXEMPTION
UNDER RULE U-3A-2 FROM THE
PROVISIONS OF THE
PUBLIC UTILITY HOLDING COMPANY
ACT OF 1935
* * * * *
File No. 69-291
Texas-New Mexico Power Company
(Name of Company)
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
its statement claiming exemption as a holding company from the provisions of the
Public Utility Holding Company Act of 1935 (Act), and submits the following
information:
1.The name, state of organization, location and nature of
business of claimant and every subsidiary thereof:
State of Location and Nature
Name Organization of Business
------ -------------- --------------------
Texas-New Mexico Power Company Texas P.O. Box 2943
Fort Worth, TX 76113
Electric Utility/
Holding Company
Texas Generating Company Texas P.O. Box 2943
Fort Worth, TX 76113
Special purpose corporation
Texas Generating Company II Texas P.O. Box 2943
Fort Worth, TX 76113
Special purpose corporation
2. Following is a brief description of the properties of
claimant and of each of its wholly owned public utility subsidiaries, Texas
Generating Company (TGC) and Texas Generating Company II (TGC II), used for the
generation, transmission and distribution of electric energy for sale,
indicating the location of principal generating plants, transmission lines and
distribution facilities including all such properties which are outside the
State in which claimant and its subsidiaries are organized, and all transmission
lines which deliver or receive electric energy at the borders of such States:
Texas-New Mexico Power Company (TNMP) serves approximately
228,000 customers in a total of 85 municipalities and adjacent rural
areas. TNMP is a subsidiary of TNP Enterprises, Inc., a public utility
holding company exempt under Section 3(a)(1) of the Act.
Within Texas, TNMP is a regulated public utility engaged in
the generation, supply, transmission, distribution and sale of electric
energy. TNMP has three operating regions throughout Texas. The largest
municipalities within Texas served by TNMP are Texas City, Lewisville,
and League City. The regions located in Texas are:
- North Central Region. Electric transmission and distribution
systems serving 56 communities in northeastern and central
Texas. The region is based at Lewisville, Texas.
- Gulf Coast Region. Electric transmission and distribution
systems serving 14 communities in southeastern Texas. The
region is based at Texas City, Texas.
- Mountain Region. Electric transmission and distribution system
serves 6 communities in southwestern Texas and 9 communities
in southern New Mexico. The Mountain region is based at Silver
City, New Mexico. The largest municipalities within this
region served by TNMP are Silver City, Alamogordo and Ruidoso,
New Mexico, and Pecos, Texas.
TNMP and its subsidiaries own generating facilities located in
Robertson County, Texas, which is in the central part of Texas. The
generating facilities consist of two 150 MW, circulating fluidized bed
units, and currently use lignite as the fuel source. TNMP also has a
transmission line connecting these units to a major transmission grid
in Texas. TNMP sells electricity from these units solely within Texas.
Neither the claimant nor any of its subsidiaries own transmission lines
that deliver or receive electricity at the border of Texas.
As described above, a portion of TNMP's Mountain Region serves
southern New Mexico. Within New Mexico, TNMP is a regulated public
utility engaged in the supply, transmission, distribution and sale of
electric energy. TNMP owns transmission and distribution lines within
New Mexico.
3. Certain information, for the calendar year 1998 with
respect to claimant and its subsidiaries, is provided in the following chart:
(a) MWH sold:
Retail 9,414,540
Wholesale 428,884
------------------
Total 9,843,424
==================
TNP Enterprises, Inc. and Texas-New Mexico Power Company are incorporated in the
State of Texas.
(b) MWH sold at retail in (a) above include 1,677,877 MWH sold in New Mexico.
(c) MWH sold at wholesale in (a) above include 6,049 MWH sold in New Mexico.
(d) MWH purchased:
Texas 6,459,989
New Mexico 1,796,868
------------------
Total 8,256,857
==================
4. Neither the claimant nor any of its subsidiaries are
directly or indirectly involved with, or have an interest in either an Exempt
Wholesale Generator or a foreign utility company.
Exhibit A. A consolidating statement of operations of the
claimant and its subsidiaries for the last calendar year 1998, together with a
consolidating balance sheet and consolidating statements of retained earnings of
claimant and its subsidiaries as of the close of the 1998 calendar year, are
presented.
Exhibit B. A Financial Data Schedule for the period ended
December 31, 1998, including Item Nos. 1, 2, and 3.
<PAGE>
The above named claimant has caused this statement to be duly executed
on its behalf by its authorized officer on this 24th day of February, 1999.
Texas-New Mexico Power Company
By /s/ M. S. Cheema
------------------------------
Corporate Seal M. S. Cheema
Attest: Sr. Vice President -
Chief Financial Officer
/s/ Paul W. Talbot
- ----------------------------------
Paul W. Talbot, Secretary
The name, title and address of the officer to whom notices and correspondence
concerning this statement should be addressed is:
Paul W. Talbot, Secretary
Texas-New Mexico Power Company
P. O. Box 2943,
Fort Worth, Texas 76113
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of TNP Enterprises, Inc.)
CONSOLIDATING STATEMENTS OF INCOME (LOSS)
For the Year Ended December 31, 1998
(Amounts in Thousands)
Texas-New
Texas-New Texas Texas Mexico Power
Mexico Power Generating Generating Consolidating Company
Company Company Company II Entries Consolidated
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $ 586,445 $ 4,278 $ 5,561 $ (9,839) $ 586,445
-------------- ------------ --------------- ------------------ -----------------
OPERATING EXPENSES:
Purchased power and fuel 316,911 316,911
Other operating and maintenance 101,010 (9,839) 91,171
Depreciation of utility plant 28,215 4,278 5,561 38,054
Taxes other than income taxes 36,298 36,298
Income taxes 16,767 97 (1) 16,863
-------------- ------------ --------------- ------------------ -----------------
Total Operating Expenses 499,201 4,375 5,560 (9,839) 499,297
-------------- ------------ --------------- ------------------ -----------------
NET OPERATING INCOME (LOSS) 87,244 (97) 1 - 87,148
-------------- ------------ --------------- ------------------ -----------------
OTHER INCOME (LOSS):
Other income and deductions, net 850 9 9 84 952
Income taxes (46) (3) (3) (52)
-------------- ------------ --------------- ------------------ -----------------
Other income (loss),
net of taxes 804 6 6 84 900
-------------- ------------ --------------- ------------------ -----------------
INCOME (LOSS) BEFORE INTEREST
CHARGES 88,048 (91) 7 84 88,048
Interest charges 53,727 53,727
-------------- ------------ --------------- ------------------ -----------------
NET INCOME (LOSS) 34,321 (91) 7 84 34,321
Dividends on preferred stock 150 150
-------------- ------------ --------------- ------------------ -----------------
INCOME (LOSS) APPLICABLE TO
COMMON STOCK $ 34,171 $ (91) $ 7 $ 84 $ 34,171
============== ============ =============== ================== =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of TNP Enterprises, Inc.)
CONSOLIDATING STATEMENTS OF RETAINED EARNINGS
For the Year Ended December 31, 1998
(Amounts in Thousands)
Texas-New
Texas-New Texas Texas Mexico Power
Mexico Power Generating Generating Consolidating Company
Company Company Company II Entries Consolidated
--------------- ---------------- ------------------ ------------------ ----------------
<S> <C> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, 1997 $ 64,768 $ (54,775) $ (25,158) $ 79,933 $ 64,768
Net income (loss) 34,321 (91) 7 84 34,321
Dividends on preferred stock (150) (150)
Dividends on common stock (19,099) (19,099)
--------------- ---------------- ------------------ ------------------ ----------------
BALANCE AT DECEMBER 31, 1998 $ 79,840 $ (54,866) $ (25,151) $ 80,017 $ 79,840
=============== ================ ================== ================== ================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of TNP Enterprises, Inc.)
CONSOLIDATING BALANCE SHEET
December 31, 1998
(Amounts in Thousands)
Texas-New
Texas-New Texas Texas Mexico Power
Mexico Power Generating Generating Consolidating Company
Company Company Company II Entries Consolidated
-------------- -------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS
UTILITY PLANT $ 883,643 $ 170,000 $ 212,750 $ - $ 1,266,393
Less: accumulated depreciation 267,590 35,802 40,170 343,562
-------------- -------------- --------------- -------------- --------------
Net Utility Plant 616,053 134,198 172,580 - 922,831
-------------- -------------- --------------- -------------- --------------
INVESTMENT IN SUBSIDIARY COMPANIES (79,997) 79,997 -
TNP ONE REPLACEMENT NOTES 417,750 (417,750) -
OTHER PROPERTY AND INVESTMENTS, at cost 2,116 2,116
CURRENT ASSETS:
Cash and cash equivalents 7,609 193 175 7,977
Accounts receivable 110,398 39,400 148,441 (297,316) 923
Other current assets 9,337 9,337
Deferred purchased power and fuel costs 1,676 1,676
-------------- -------------- -------------- ---------------- --------------
Total current assets 129,020 39,593 148,616 (297,316) 19,913
-------------- -------------- -------------- ---------------- --------------
DEFERRED CHARGES 28,706 28,706
-------------- -------------- -------------- ---------------- --------------
$ 1,113,648 $ 173,791 $ 321,196 $ (635,069) $ 973,566
============== ============== ============== ================ ==============
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common shareholder's equity:
Common stock $ 107 $ 10 $ 10 $ (20) $ 107
Capital in excess of par value 222,149 222,149
Retained earnings 79,840 (54,866) (25,151) 80,017 79,840
-------------- ------------- ---------------- -------------- --------------
Total common shareholder's equity 302,096 (54,856) (25,141) 79,997 302,096
Redeemable cumulative preferred stock 3,060 3,060
Long-term debt, less current maturities 450,000 205,000 212,750 (417,750) 450,000
-------------- -------------- --------------- -------------- --------------
Total capitalization 755,156 150,144 187,609 (337,753) 755,156
-------------- -------------- --------------- -------------- --------------
CURRENT LIABILITIES:
Current maturities of long-term debt - -
Accounts payable 127,252 50,599 146,353 (297,316) 26,888
Other current liabilities 135,420 (45,438) (32,224) 57,758
-------------- -------------- --------------- -------------- --------------
Total current liabilities 262,672 5,161 114,129 (297,316) 84,646
-------------- -------------- --------------- -------------- --------------
REGULATORY TAX LIABILITIES 1,778 (537) (284) 957
ACCUMULATED DEFERRED INCOME TAXES 54,613 19,023 19,742 93,378
ACCUMULATED DEFERRED ITC 22,729 22,729
DEFERRED CREDITS 16,700 16,700
-------------- -------------- --------------- -------------- ------------
$ 1,113,648 $ 173,791 $ 321,196 $ (635,069) $ 973,566
============== ============== =============== ============== ============
</TABLE>
<TABLE> <S> <C>
<ARTICLE> OPUR3
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 973,566
<TOTAL-OPERATING-REVENUES> 586,445
<NET-INCOME> 34,321
</TABLE>
