UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1996
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 No. 1-8369
CONNECTICUT ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
Connecticut 06-0869582
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
855 Main Street
Bridgeport, Connecticut 06604
(Address of principal executive offices) (Zip Code)
(203) 579-1732
(Registrant's telephone number, including area code)
(Former name, former address and former
fiscal year, if changed since last report)
Indicate by check 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 [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding at February 7, 1997
----- -------------------------------
Common Stock, $1 par value 9,100,549
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PART I. FINANCIAL INFORMATION
CONNECTICUT ENERGY CORPORATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share)
(Unaudited)
<S> <C> <C>
Three Months Ended
Dec. 31,
------------------------
1996 1995
---- ----
Operating Revenues.................................................... $ 74,873 $ 69,775
Purchased gas......................................................... 40,309 37,493
--------- ---------
Gross margin.......................................................... 34,564 32,282
Operating Expenses:
Operations.......................................................... 13,148 12,299
Maintenance......................................................... 915 1,048
Depreciation........................................................ 3,911 3,737
Federal and state income taxes...................................... 3,353 3,171
Municipal, gross earnings and other taxes........................... 4,231 3,779
--------- ---------
Total operating expenses.............................................. 25,558 24,034
--------- ---------
Operating income...................................................... 9,006 8,248
Other deductions, net................................................. 264 130
Interest Expense:
Interest on long-term debt and
amortization of debt issue costs.................................. 3,082 2,702
Other interest, net................................................. 251 387
--------- ---------
Total interest expense................................................ 3,333 3,089
--------- ---------
Net Income............................................................ $ 5,409 $ 5,029
========= =========
Net income per share.................................................. $ 0.60 $ 0.57
========= =========
Dividends paid per share.............................................. $ 0.33 $ 0.325
--------- ---------
Weighted average number of common
shares outstanding during period.................................... 9,016,065 8,871,106
--------- ---------
See Notes to Consolidated Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CONNECTICUT ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share)
<S> <C> <C>
Dec. 31, Sept. 30,
1996 1996
--------- ---------
(Unaudited)
Assets
- ------
Utility Plant:
Gross utility plant.............................................. $380,679 $376,109
Less: accumulated depreciation................................... 120,980 118,348
-------- --------
Net utility plant................................................ 259,699 257,761
Nonutility property, net........................................... 2,856 2,804
-------- --------
Net utility plant and other property............................... 262,555 260,565
-------- --------
Current Assets:
Cash and cash equivalents........................................ 5,796 5,121
-------- --------
Accounts receivable.............................................. 48,747 33,615
Less: allowance for doubtful accounts............................ 2,641 2,742
-------- --------
Net accounts receivable........................................ 46,106 30,873
-------- --------
Accrued utility revenues, net.................................... 8,721 2,608
Unrecovered purchased gas costs.................................. 7,235 ---
Inventories...................................................... 15,276 15,331
Prepaid expenses................................................. 1,792 1,841
-------- --------
Total current assets............................................... 84,926 55,774
-------- --------
Deferred Charges and Other Assets:
Unamortized debt expenses........................................ 6,183 6,238
Unrecovered deferred income taxes................................ 42,041 41,435
Other............................................................ 37,209 35,216
-------- --------
Total deferred charges and other assets............................ 85,433 82,889
-------- --------
Total assets....................................................... $432,914 $399,228
======== ========
See Notes to Consolidated Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CONNECTICUT ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share)
<S> <C> <C>
Dec. 31, Sept. 30,
1996 1996
--------- ---------
(Unaudited)
Capitalization and Liabilities
- ------------------------------
Common Shareholders' Equity:
Common Stock: authorized--20,000,000 shares, par value $1
per share, issued and outstanding--9,044,437 shares;
9,012,267 shares.............................................. $ 9,044 $ 9,012
Capital in excess of par value.................................. 91,663 91,079
Retained earnings............................................... 40,304 37,870
-------- --------
Total common shareholders' equity................................. 141,011 137,961
-------- --------
Long-term debt.................................................... 138,727 138,727
-------- --------
Total capitalization.............................................. 279,738 276,688
-------- --------
Current Liabilities:
Short-term borrowings........................................... 37,100 19,200
Current maturities of long-term debt............................ 595 595
Accounts payable................................................ 19,506 14,250
Federal, state and deferred income taxes........................ 5,383 2,424
Property and other accrued taxes................................ 7,839 5,555
Interest payable................................................ 2,886 3,569
Customers' deposits............................................. 1,955 1,826
Refundable purchased gas costs.................................. --- 520
Other........................................................... 4,288 3,747
-------- --------
Total current liabilities......................................... 79,552 51,686
-------- --------
Deferred Credits:
Deferred income taxes and investment tax credits................ 66,382 65,381
Other........................................................... 7,242 5,473
-------- --------
Total deferred credits............................................ 73,624 70,854
-------- --------
Total capitalization and liabilities.............................. $432,914 $399,228
======== ========
See Notes to Consolidated Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CONNECTICUT ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
<S> <C> <C>
Three Months Ended
Dec. 31,
-----------------------
1996 1995
---- ----
Net cash used by operating activities................................. $(8,857) $(3,417)
------- -------
Cash Flows from Investing Activities:
Capital expenditures................................................ (5,924) (4,484)
Contributions in aid of construction................................ 28 13
Payments for retirement of utility plant............................ (113) 3
Energy ventures..................................................... --- (2,040)
Other............................................................... --- 2
------- -------
Net cash used by investing activities................................. (6,009) (6,506)
------- -------
Cash Flows from Financing Activities:
Dividends paid on common stock...................................... (2,975) (2,884)
Issuance of common stock............................................ 616 720
Increase in short-term borrowings................................... 17,900 10,700
------- -------
Net cash provided by financing activities............................. 15,541 8,536
------- -------
Net increase (decrease) in cash and cash equivalents.................. 675 (1,387)
Cash and cash equivalents at beginning of period...................... 5,121 4,635
------- -------
Cash and cash equivalents at end of period............................ $ 5,796 $ 3,248
======= =======
Supplemental Disclosures of Cash Flow Information
Cash paid during the period for:
Interest............................................................ $ 4,223 $ 4,236
Income taxes........................................................ $ --- $ ---
See Notes to Consolidated Financial Statements.
</TABLE>
CONNECTICUT ENERGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands)
1. The unaudited consolidated financial statements presented
herein should be read in conjunction with the consolidated
financial statements of Connecticut Energy Corporation
("Connecticut Energy" or "Company") for the fiscal year ended
September 30, 1996 as presented in the Annual Report on Form 10-K.
In the opinion of management, the accompanying financial
information reflects all adjustments which are necessary to provide
a fair presentation of the interim periods shown. All such
adjustments are of a normal recurring nature.
In preparing the financial statements in conformity with
generally accepted accounting principles ("GAAP"), the Company uses
estimates. Estimates are disclosed when there is a reasonable
possibility for change in the near term. For this purpose, near
term is defined as a period of time not to exceed one year from the
date of the financial statements. The Company's financial
statements have been prepared based on management's estimates of
the impact of regulatory, legislative and judicial developments on
the Company or significant groups of its customers. The recorded
amounts of certain accruals, reserves, deferred charges and assets
could be materially impacted if circumstances change which affect
these estimates.
2. The Company's principal subsidiary, The Southern
Connecticut Gas Company ("Southern"), prepares its financial
statements in accordance with the provisions of Statement of
Financial Accounting Standards No. 71, "Accounting for the Effects
of Certain Types of Regulation" ("SFAS 71"), which requires a cost-
based, rate-regulated enterprise such as Southern to reflect the
impact of regulatory decisions in its financial statements. The
Connecticut Department of Public Utility Control's ("DPUC") actions
through the ratemaking process can create regulatory assets in
which costs are allowed for ratemaking purposes in a period other
than the period in which the costs would be charged to expense if
the reporting entity were unregulated.
In the application of SFAS 71, Southern follows
accounting policies that reflect the impact of the rate treatment
of certain events or transactions that are permitted to differ from
GAAP. The most significant of these policies include the recording
of deferred gas costs, deferred environmental evaluation costs and
an unfunded deferred income tax liability, with a corresponding
unrecovered asset, to account for temporary differences previously
flowed through to ratepayers.
Southern had net regulatory assets as of December 31,
1996 and September 30, 1996 of $62,778 and $59,281, respectively.
These amounts are included in deferred charges and other assets and
deferred credits in the consolidated balance sheets and are solely
due to the application of the provisions of SFAS 71.
During fiscal 1996, the DPUC approved regulations
designed to increase competition in the natural gas industry in
Connecticut by giving commercial and industrial gas customers the
ability to purchase gas from independent brokers and marketers and
by allowing local gas distribution companies to charge firm
transportation rates for use of their distribution systems. The
firm transportation rates are designed to provide Southern with the
same margins provided by the bundled services.
While the DPUC's actions encourage a competitive
environment by deregulating certain activities, the Company
believes that it continues to meet the requirements of SFAS 71.
3. Due to the seasonal nature of gas sales for space heating
purposes by Southern, the results of operations for the three
months ended December 31, 1996 are not indicative of the results to
be expected for the fiscal year ending September 30, 1997.
4. Deferred charges and other assets include amounts related
to the following:
Dec. 31, Sept. 30,
As of 1996 1996
- ------------------------------------------------------------------------------
Hardship heating customer accounts receivable arrearages $10,871 $11,753
Energy assistance funding shortfall 1,359 1,502
Prepaid pension and postretirement medical contributions 13,237 11,395
Conservation costs 4,285 3,954
Environmental evaluation costs 865 915
Nonqualified benefit plans 2,232 1,160
Gas holder costs 492 554
Investment in energy ventures 1,889 1,960
Other 1,979 2,023
------- -------
$37,209 $35,216
======= =======
Southern has been allowed to recover various deferred charges
in rates over periods ranging from three to five years in
accordance with the DPUC's Decision in Southern's latest rate case.
5. Deferred credits include amounts related to the
following:
Dec. 31, Sept. 30,
As of 1996 1996
- ------------------------------------------------------------------------------
Interruptible margin sharing $ 346 $ 556
Nonqualified benefit plans 2,706 2,574
Insurance reserve 1,042 722
Hardship heating customer assistance grant program 1,052 75
Economic development initiatives 1,401 675
Other 695 871
------ ------
$7,242 $5,473
====== ======
6. Southern has identified coal tar residue at three sites
in Connecticut resulting from coal gasification operations
conducted at those sites by Southern's predecessors from the late
1800s through the first part of this century. Many gas
distribution companies throughout the country carried on such gas
manufacturing operations during the same period. See section in
Management's Discussion and Analysis entitled "Environmental
Matters" for further detail.
7. Effective October 1, 1996, the Company adopted Statement
of Financial Accounting Standards No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed Of" ("SFAS 121"). This statement imposes stricter
criteria for regulatory assets by requiring that such assets be
probable of future recovery at each balance sheet date. The impact
of this new standard had no effect on the Company's financial
condition or results of operations.
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Net Income
- ----------
Connecticut Energy Corporation's ("Connecticut Energy" or
"Company") consolidated net income for the three months ended
December 31, 1996 and 1995 is detailed below:
Three Months Ended
December 31,
------------------
(in thousands, except per share) 1996 1995
---- ----
Net Income $5,409 $5,029
====== ======
Net Income per Share $ 0.60 $ 0.57
====== ======
Weighted Average Shares Outstanding 9,016 8,871
------ ------
Net income for the three months ended December 31, 1996
increased approximately 8% compared to the three months ended
December 31, 1995 principally due to increased firm margins earned
by the Company's principal subsidiary, The Southern Connecticut Gas
Company ("Southern"). Factors which affected the increase in
Southern's firm margins included: higher usage per residential
customer, customer growth, conversions of nonheating customers to
heating customers and the implementation of firm transportation
tariffs during the third quarter of fiscal 1996. Partially
offsetting the increase in firm margins were higher expenses for
operations, depreciation, taxes and long-term interest.
Total Sales and Transportation Volumes
- --------------------------------------
Southern's total volumes of gas sold and transported for the
three months ended December 31, 1996 were 11,775 MMcf, an increase
of approximately 8% compared to the corresponding 1995 period. This
increase was primarily attributable to increased firm
transportation, on-system interruptible sales and off-system sales
and transportation volumes.
Firm Sales and Transportation Volumes
- -------------------------------------
Firm sales and transportation volumes for the three months
ended December 31, 1996 increased approximately 3% compared to the
corresponding 1995 period. The increase was due to service under
Southern's firm transportation tariffs, growth in Southern's
customer base and the conversions of nonheating customers to
heating customers. This increase was achieved although the weather
was approximately 6% warmer for the three months ended December 31,
1996 when compared to the corresponding 1995 period.
Interruptible Sales and Transportation Volumes
- ----------------------------------------------
Margins earned on volumes delivered to interruptible customers
vary depending upon the relationship of the market price for
alternate fuels to the cost of natural gas and related
transportation. Additionally, on-system margins earned, net of
gross earnings tax, from interruptible services in excess of an
annual target were allocated through a margin sharing mechanism
between Southern and its firm customers. Beginning June 1, 1996,
excess on-system margins earned that would have been returned to
Southern's firm customers have been redirected, with Connecticut
Department of Public Utility Control ("DPUC") approval, to fund
certain economic development and hardship assistance programs.
The chart below depicts volumes of gas sold to and transported
for on-system interruptible customers, off-system sales volumes and
off-system transportation volumes under a special contract with The
Connecticut Light and Power Company for its Devon generating station
as well as gross margins earned and retained due to the margin
sharing mechanism on these services for the three months ended
December 31, 1996 and 1995:
Three Months Ended
December 31,
------------------
(dollars in thousands) 1996 1995
---- ----
Gross Margin Earned $3,396 $2,838
====== ======
Gross Margin Retained $1,072 $ 981
====== ======
Volumes Sold and Transported (MMcf) 4,961 4,306
------ ------
Gross margin retained represents the difference between gross
margin earned and margin to be returned through the margin sharing
mechanism. Gross margins retained by Southern were higher for the
three months ended December 31, 1996 compared to the corresponding
1995 period principally due to higher margins earned from on-system
interruptible sales because of the competitive price of natural gas
compared to other energy sources. Higher margins to be returned in
the 1996 quarter relate to both higher margins earned and the change
in sharing mechanism for certain off-system services as of April 1,
1996 which increased the allocation of margins to be returned to
firm customers from 50% to 85%.
Volumes for the three months ended December 31, 1996 were
higher compared to the corresponding 1995 period primarily due to
increases in interruptible sales and off-system sales and
transportation volumes due to the reasons previously mentioned.
Gross Margin
- ------------
The Company's gross margin for the three months ended December
31, 1996 was approximately 7% higher compared to the corresponding
1995 period. This increase was principally attributed to higher
firm margins earned by Southern.
Southern's firm rates include a Weather Normalization
Adjustment clause ("WNA") which allows Southern to charge or credit
the non-gas portion of its firm rates to reflect deviations from
normal weather. Because weather during the three months ended
December 31, 1996, was approximately 1% colder than normal, the
operation of the WNA returned approximately $50,000 to firm
customers. This compares to a return to firm customers during the
three months ended December 31, 1995 of approximately $1,589,000.
Southern's firm rates also include a Purchased Gas Adjustment
clause ("PGA") which allows Southern to flow through to its
customers, through periodic adjustments to amounts billed, increased
or decreased costs incurred for purchased gas compared to base rate
levels without affecting gross margin. The operation of Southern's
PGA increased revenues and gas costs for the three months ended
December 31, 1996 and 1995 by approximately $1,286,000 and $289,000,
respectively.
Operations Expense
- ------------------
Operations expense for the three months ended December 31, 1996
increased approximately 7% compared to the corresponding 1995 period
due to higher labor costs, uncollectibles expense related to the timing
of the recognition of amortizations allowed by the DPUC, insurance
costs and certain general and administrative expenses. Partially
offsetting the impact of these increases were increased rates for
service on customers' premises, lower initial expenses related to
the transfer of credit and collection administration to an external
service provider and a decrease in regulatory commission expense.
Depreciation Expense
- --------------------
Depreciation expense for the three months ended December 31,
1996 increased approximately 5% compared to the corresponding 1995
period. The increase was primarily due to additions to plant in
service by Southern.
Federal and State Income Taxes
- ------------------------------
The total provision for federal and state income taxes for the
three months ended December 31, 1996 increased approximately 6%
compared to the corresponding 1995 period. This increase was due to
higher pre-tax income.
Municipal, Gross Earnings and Other Taxes
- -----------------------------------------
Municipal, gross earnings and other taxes increased
approximately 12% for the three months ended December 31, 1996
compared to the corresponding 1995 period. This was primarily due
to an increase in gross earnings tax resulting from higher
operating revenues.
Interest Expense
- ----------------
Total interest expense increased approximately 8% for the three
months ended December 31, 1996 compared to the corresponding 1995
period primarily due to higher long-term debt costs associated with
the issuance of $20,000,000 in secured Medium-Term Notes ("MTN") in
August 1996. This increase was partially offset by lower short-term
debt costs related to lower interest expense on margin sharing
balances as well as lower average short-term borrowings.
Additionally, the average short-term interest rate was slightly
lower during the 1996 quarter.
LIQUIDITY AND CAPITAL RESOURCES
Operating Activities
- --------------------
The seasonal nature of Southern's business creates large short-
term cash demands primarily to finance gas purchases, customer
accounts receivable and certain tax payments. To provide these
funds, as well as funds for its capital expenditure program and
other corporate purposes, Connecticut Energy and Southern have
committed lines of credit with a number of banks totaling $5,000,000
and $32,000,000, respectively. Additionally, uncommitted lines of
credit exist with two banks totaling $18,000,000.
Southern had a revolving credit line agreement for up to
$20,000,000 with one bank. This agreement had a revolving credit
feature through December 21, 1996 followed by a term loan period
through December 21, 2000. Effective December 21, 1996, this
arrangement was converted to a committed line of credit of the same
amount. Under this line of credit, Southern and Connecticut Energy
are eligible borrowers.
At December 31, 1996, the Company had unused lines of credit of
$37,900,000. Because of the availability of short-term credit and
the ability to issue long-term debt and additional equity,
management believes it has adequate financial flexibility to meet
its anticipated cash needs.
Operating cash flows for the three months ended December 31,
1996 were negatively impacted by higher unrecovered purchased gas
cost balances, a smaller comparative reduction in gas inventories as
well as a smaller comparative increase in accounts payable balances
in contrast to the corresponding 1995 period. The increase in cash
requirements was partially offset by increases in current
liabilities primarily related to the timing of funding of pension
and postretirement health care contributions as well as increases in
deferred credits related to margins earned which will be used to
fund certain economic development initiatives in Bridgeport and to
provide grants to customers to reduce Southern's hardship assistance
balances.
Investing Activities
- --------------------
Capital expenditures approximated $5,896,000 and $4,471,000 for
the three months ended December 31, 1996 and 1995, respectively.
Capital expenditures for the three months ended December 31, 1995
were curtailed because of more severe weather conditions in contrast
to the three months ended December 31, 1996. On an annual basis,
Southern relies upon cash flows from operating activities to fund a
portion of these expenditures, with the remainder funded by short-
term borrowings and, at some later date, long-term debt and capital
stock financings.
Financing Activities
- --------------------
In fiscal 1996, Southern initiated an MTN program which was
approved by the DPUC. The program permits the issuance, from time
to time, of up to $75,000,000 of secured MTNs over a four-year
period in varying amounts and with varying terms.
On August 1, 1996, Southern made its first issuance and sale
under the program of $20,000,000 in MTNs at a weighted average rate
of 7.84%. Proceeds from the sale of the MTNs were used to reduce
short-term borrowings incurred primarily in connection with
Southern's capital expenditure program and for other general
corporate purposes.
Financing plans for fiscal 1997 include a proposed sale to the
public of approximately 1,000,000 shares of common stock during the
latter part of the year. The proceeds of this sale will be used for
the repayment of short-term debt and for other general corporate
purposes. The method, timing and amounts of any future financings
by the Company or its subsidiaries will depend on a variety of
factors, including capitalization ratios, coverage ratios, interest
costs, the state of the capital markets and general economic
conditions.
Environmental Matters
- ---------------------
Southern has identified coal tar residue at three sites in
Connecticut resulting from coal gasification operations conducted at
those sites by Southern's predecessors from the late 1800s through
the first part of this century. Many gas distribution companies
throughout the country carried on such gas manufacturing operations
during the same period. The coal tar residue is not designated a
hazardous material by any federal or Connecticut agency, but some of
its constituents are classified as hazardous.
On April 27, 1992, Southern notified the Connecticut Department
of Environmental Protection ("DEP") and the United States
Environmental Protection Agency of the presence of coal tar residue
at the sites. On November 9, 1994, the DEP informed Southern that
it had performed a preliminary review of the information provided to
it by Southern and had determined that, based on current priorities
and limited staff resources, a comprehensive review of site
conditions and subsequent participation by the DEP "are not possible
at this time." Until the DEP conducts a comprehensive review, no
discussions with it addressing the extent, timing and type of
remedial action, if any, can occur.
Given the DEP's response, management cannot at this time
predict the costs of any future site analysis and remediation, if
any, nor can it estimate when any such costs, if any, would be
incurred. While such future analytical and cleanup costs could
possibly be significant, management believes, based upon the
provisions of the Partial Settlement in Southern's latest rate
order, that Southern will be able to recover these costs through its
customer rates. Although the method, timing and extent of any
recovery remain uncertain, management currently does not expect that
the incurrence of such costs will materially adversely impact the
Company's financial condition or results of operations.
PART II- OTHER INFORMATION
Items 1, 2, 3, 4 and 5 are inapplicable.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits:
Exhibit 27-Financial Data Schedule
Submitted only in electronic format to the
Securities and Exchange Commission.
(b) Reports on Form 8-K:
There were no reports filed on Form 8-K during
the quarter.
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.
CONNECTICUT ENERGY CORPORATION
(Registrant)
DATE: February 11, 1997 /s/ Vincent L. Ammann, Jr.
----------------- ---------------------------
Vincent L. Ammann, Jr.
Vice President and
Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> UT
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> DEC-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 259,699
<OTHER-PROPERTY-AND-INVEST> 2,856
<TOTAL-CURRENT-ASSETS> 84,926
<TOTAL-DEFERRED-CHARGES> 85,433
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 432,914
<COMMON> 9,044
<CAPITAL-SURPLUS-PAID-IN> 91,663
<RETAINED-EARNINGS> 40,304
<TOTAL-COMMON-STOCKHOLDERS-EQ> 141,011
0
0
<LONG-TERM-DEBT-NET> 138,727
<SHORT-TERM-NOTES> 37,100
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 595
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 115,481
<TOT-CAPITALIZATION-AND-LIAB> 432,914
<GROSS-OPERATING-REVENUE> 74,873
<INCOME-TAX-EXPENSE> 3,353
<OTHER-OPERATING-EXPENSES> 62,514
<TOTAL-OPERATING-EXPENSES> 65,867
<OPERATING-INCOME-LOSS> 9,006
<OTHER-INCOME-NET> (264)
<INCOME-BEFORE-INTEREST-EXPEN> 8,742
<TOTAL-INTEREST-EXPENSE> 3,333
<NET-INCOME> 5,409
0
<EARNINGS-AVAILABLE-FOR-COMM> 5,409
<COMMON-STOCK-DIVIDENDS> 2,975
<TOTAL-INTEREST-ON-BONDS> 3,082
<CASH-FLOW-OPERATIONS> (8,857)
<EPS-PRIMARY> 0.60
<EPS-DILUTED> 0
</TABLE>
