UNITED STATES
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, 1995 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: 1-3368
THE EMPIRE DISTRICT ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
Kansas 44-0236370
(State of Incorporation) (I.R.S. Employer
Identification No.)
602 Joplin Street, Joplin, Missouri 64801
(Address of principal executive offices) (zip code)
Registrant's telephone number: (417) 625-5100
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 ___
Common stock outstanding as of November 1, 1995: 15,149,965
shares.
<PAGE>
THE EMPIRE DISTRICT ELECTRIC COMPANY
INDEX
Page Number
Part I - Financial Information:
Item 1. Financial Statements:
a.Statements of Income 3
b.Balance Sheets 6
c.Statements of Cash Flows 7
d.Notes to Financial Statements 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
Part II Other Information:
Item 1. Legal Proceedings - (none)
Item 2. Changes in Securities - (none)
Item 3. Defaults Upon Senior Securities - (none)
Item 4. Submission of Matters to a Vote of Security
Holders - (none)
Item 5. Other Information 13
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
STATEMENTS OF INCOME (UNAUDITED)
<CAPTION>
Three Months Ended
September 30,
1995 1994
<S> <C> <C>
Operating revenues:
Electric $62,513,979 $52,075,247
Water 275,515 263,875
62,789,494 52,339,122
Operating revenue deductions:
Operating expenses:
Fuel 10,838,242 8,710,079
Purchased power 10,366,212 9,470,011
Other 8,499,034 7,578,186
Voluntary early retirement program 4,583,188 -
Total operating expenses 34,286,676 25,758,276
Maintenance and repairs 3,234,876 2,856,041
Depreciation and amortization 5,146,301 4,622,592
Provision for income taxes 4,932,200 4,919,580
Other taxes 3,045,528 2,829,636
50,645,581 40,986,125
Operating income 12,143,913 11,352,997
Other income and deductions:
Allowance for equity funds used
during construction 124,580 155,408
Interest income 32,293 21,871
Other - net (74,798) (56,596)
82,075 120,683
Income before interest charges 12,225,988 11,473,680
Interest charges:
Long-term debt 3,696,520 3,175,423
Commercial paper 70,836 179,762
Allowance for borrowed funds used
during construction (126,012) (286,739)
Other 61,494 55,258
3,702,838 3,123,704
Net income 8,523,150 8,349,976
Preferred stock dividend requirements 604,085 604,085
Net income applicable to common stock $7,919,065 $7,745,891
Weighted average number of common
shares outstanding 15,082,120 13,788,041
Earnings per weighted average share of
common stock $ 0.53 $ 0.56
Dividends per share of common stock $ 0.32 $ 0.32
<FN>
See accompanying Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF INCOME (UNAUDITED)
<CAPTION>
Nine Months Ended
September 30,
1995 1994
<S> <C> <C>
Operating revenues:
Electric $146,901,698 $134,894,122
Water 748,376 712,991
147,650,074 135,607,113
Operating revenue deductions:
Operating expenses:
Fuel 25,043,590 23,057,084
Purchased power 26,604,462 27,072,101
Other 23,948,466 22,459,640
Voluntary early retirement program 4,583,188 -
Total operating expenses 80,179,706 72,588,825
Maintenance and repairs 9,427,775 7,649,511
Depreciation and amortization 14,645,231 13,746,359
Provision for income taxes 8,752,745 8,941,050
Other taxes 8,049,771 7,902,454
121,055,228 110,828,199
Operating income 26,594,846 24,778,914
Other income and deductions:
Allowance for equity funds used
during construction 864,527 479,282
Interest income 201,485 37,772
Other - net (115,463) (131,440)
950,549 385,614
Income before interest charges 27,545,395 25,164,528
Interest charges:
First mortgage bonds 11,162,867 9,525,489
Commercial paper 442,880 531,631
Allowance for borrowed funds used
during construction (1,085,510) (574,060)
Other 204,248 182,933
10,724,485 9,665,993
Net income 16,820,910 15,498,535
Preferred stock dividend requirements 1,812,255 958,943
Net income applicable to common stock $15,008,655 $14,539,592
Weighted average number of common
shares outstanding 14,585,881 13,687,039
Earnings per weighted average share of
common stock $ 1.03 $ 1.06
Dividends per share of common stock $ 0.96 $ 0.96
<FN>
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF INCOME (UNAUDITED)
<CAPTION>
Twelve Months Ended
September 30,
1995 1994
<S> <C> <C>
Operating revenues:
Electric $188,819,458 $175,059,366
Water 980,463 910,402
189,799,921 175,969,768
Operating revenue deductions:
Operating expenses:
Fuel 32,387,677 29,668,486
Purchased power 34,143,004 36,520,456
Other 32,190,911 30,679,581
Voluntary early retirement program 4,583,188 -
Total operating expenses 103,304,780 96,868,523
Maintenance and repairs 12,562,395 10,350,106
Depreciation and amortization 19,238,052 18,210,216
Provision for income taxes 10,490,695 9,584,680
Other taxes 10,383,511 10,233,457
155,979,433 145,246,982
Operating income 33,820,488 30,722,786
Other income and deductions:
Allowance for equity funds used
during construction 1,115,604 479,283
Interest income 255,399 80,874
Other - net (204,601) (190,122)
1,166,402 370,035
Income before interest charges 34,986,890 31,092,821
Interest charges:
First mortgage bonds 14,594,021 12,848,261
Commercial paper 616,159 586,421
Allowance for borrowed funds used
during construction (1,495,995) (631,329)
Other 267,231 236,484
13,981,416 13,039,837
Net income 21,005,474 18,052,984
Preferred stock dividend requirements 2,416,340 1,055,216
Net income applicable to common stock $18,589,134 $16,997,768
Weighted average number of common
shares outstanding 14,406,517 13,645,500
Earnings per weighted average share of
common stock $ 1.29 $ 1.25
Dividends per share of common stock $ 1.28 $ 1.28
<FN>
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
BALANCE SHEETS
<CAPTION>
September 30, December 31,
1995 1994
(Unaudited)
<S> <C> <C>
ASSETS
Utility plant, at original cost:
Electric $668,104,088 $606,519,616
Water 5,021,105 4,863,228
Construction work in progress 15,747,337 45,317,772
688,872,530 656,700,616
Accumulated depreciation 221,052,771 210,858,722
467,819,759 445,841,894
Current assets:
Cash and cash equivalents 4,323,927 3,362,653
Accounts receivable - trade, net 17,270,880 10,653,580
Accounts receivable - other 1,730,532 2,878,122
Accrued unbilled revenues 3,811,646 5,041,575
Fuel, materials and supplies 13,979,146 12,970,376
Prepaid expenses 1,000,984 708,253
42,117,115 35,614,559
Deferred charges:
Regulatory asset 26,347,710 23,657,498
Unamortized debt expense 14,735,492 13,166,603
Other 2,102,263 1,932,798
43,185,465 38,756,899
Total Assets $553,122,339 $520,213,352
CAPITALIZATION AND LIABILITIES:
Common stock, $1 par value,
15,140,640 and 13,941,531 shares
issued and outstanding,
respectively $15,140,640 $13,941,531
Capital in excess of par value 124,260,525 106,055,389
Retained earnings (Note 3) 54,705,742 53,783,342
Total common stockholders' equity 194,106,907 173,780,262
Preferred stock 32,901,800 32,901,800
Long-term debt 194,715,848 184,976,950
421,724,555 391,659,012
Current liabilities:
Accounts payable and accrued 12,413,429 11,459,243
liabilities
Commercial paper 5,000,000 16,000,000
Customer deposits 2,503,068 2,385,182
Interest accrued 5,290,167 3,413,850
Taxes accrued, including income 4,927,628 1,557,744
taxes
30,134,292 34,816,019
Noncurrent liabilities and deferred
credits:
Regulatory liability 19,134,498 20,683,409
Deferred income taxes 61,309,064 56,229,391
Unamortized investment tax credits 10,226,680 10,741,000
Postretirement benefits 8,805,938 4,083,626
Other 1,787,312 2,000,895
101,263,492 93,738,321
Total Capitalization and
Liabilities $553,122,339 $520,213,352
<FN>
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
<CAPTION>
Nine Months Ended
September 30,
1995 1994
<S> <C> <C>
Operating activities:
Net income $16,820,910 $15,498,535
Adjustments to reconcile net income
to cash flows:
Depreciation and amortization 15,489,261 14,449,214
Deferred income taxes - net 812,136 1,060,055
Investment tax credit - net (514,320) (507,150)
Allowance for equity funds used
during construction (864,527) (479,282)
Issuance of common stock for 401(k)
plan 517,298 480,635
Other 44,434 1,523,838
Cash flows impacted by changes in:
Receivables and accrued unbilled
revenues (4,239,781) (2,273,890)
Fuel, materials and supplies (1,008,770) (1,196,187)
Prepaid expenses and deferred
charges (3,077,697) (1,523,022)
Accounts payable and accrued
liabilities 954,186 (1,630,014)
Other liabilities and deferred
credits 10,915,306 7,938,707
Net cash provided by operating
activities 35,848,436 33,341,439
Investing activities:
Construction expenditures (37,467,126) (54,005,014)
Allowance for equity funds used
during construction 864,527 479,282
Net cash used in investing activities (36,602,599) (53,525,732)
Financing activities:
Proceeds from issuance of first
mortgage bonds 40,000,000 -
Proceeds from issuance of common
stock 18,886,947 3,165,450
Proceeds from issuance of preferred
stock - 25,000,000
Dividends (15,898,510) (13,926,404)
Repayment of first mortgage bonds (30,273,000) (100,000)
Net (repayments) issuances from
short-term borrowings (11,000,000) 6,500,000
Net cash provided by financing
activities 1,715,437 20,639,046
Net increase in cash and cash
equivalents 961,274 454,753
Cash and cash equivalents at beginning
of period 3,362,653 2,802,957
Cash and cash equivalents at end of
period $4,323,927 $3,257,710
<FN>
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Note 1 - Summary of Significant Accounting Policies
The accompanying interim financial statements have been
prepared in accordance with the accounting policies described in
the financial statements and related notes included in the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 1994. There are no significant differences between
the Company's interim and annual accounting policies.
The information furnished reflects all adjustments,
consisting only of normal recurring adjustments, which are, in
the opinion of the Company, necessary to present fairly the
results for the interim periods presented.
Note 2 - Accounting Matters
Effective January 1, 1994, the Company adopted Statements of
Financial Accounting Standards (SFAS) No. 112, "Employers'
Accounting for Postemployment Benefits." Implementation of this
statement did not have a material effect on the Company's
financial results.
<TABLE>
Note 3- Retained Earnings
<CAPTION>
Third
Quarter 1995
<S> <C>
Balance at January 1, 1995 $53,783,342
Changes January 1 through June 30:
Net Income 8,297,760
Less quarterly cash dividends on common
stock:
$0.32 per share (9,262,651)
Less quarterly cash dividends on preferred
stock:
5% cumulative - $0.125 per share (97,546)
4-3/4% cumulative - $0.11875 per share (95,000)
8-1/8% cumulative - $0.203125 per share (1,015,624)
Total changes January 1 through June 30 (2,173,061)
Balance at July 1, 1995 $51,610,281
Changes July 1 through September 30:
Net Income 8,523,150
Less quarterly cash dividends on common
stock:
$0.32 per share (4,823,604)
Less quarterly cash dividends on preferred
stock:
5% cumulative - $0.125 per share (48,773)
4-3/4% cumulative - $0.11875 per share (47,500)
8-1/8% cumulative - $0.200342 per share (507,812)
Total changes July 1 through September 30 3,095,461
Balance at September 30, 1995 $54,705,742
</TABLE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
RESULTS OF OPERATIONS
The following discussion analyzes significant changes in the
results of operations for the three-month, nine-month and twelve-
month periods ended September 30, 1995, compared to the same
periods ended September 30, 1994.
Operating Revenues and Kilowatt-Hour Sales
Of the Company's total electric operating revenues during
the third quarter of 1995, approximately 44% were from
residential customers, 30% from commercial, 16% from industrial,
4% from wholesale on-system customers and 2% from wholesale off-
system customers. The remainder of such revenues were derived
from miscellaneous sources such as public street and highway
lighting and other municipal establishments. The percentage
changes from the prior year in kilowatt-hour ("Kwh") sales and
revenue by major customer class were as follows:
<TABLE>
<CAPTION>
Kwh Sales Revenue
Nine Twelve Nine Twelve
Third Months Months Third Months Months
Quarter Ended Ended Quarter Ended Ended
<S> <C> <C> <C> <C> <C> <C>
Residential 20.0% 5.7% 3.5% 26.8% 13.9% 12.6%
Commercial 13.6 5.8 5.1 19.3 7.3 5.8
Industrial 5.0 4.1 5.3 12.3 4.6 4.3
Wholesale On-
System 9.6 4.8 3.9 9.8 1.3 0.5
Total System 13.6 5.3 4.5 20.8 9.3 8.1
Wholesale Off-
System (13.1) (15.4) (6.3) (12.2) (17.7) (10.7)
Total Sales 11.4 3.7 3.6 19.7 8.5 7.6
</TABLE>
Residential Kwh sales and revenue were substantially higher
during the third quarter of 1995 compared to the third quarter of
1994. This increase was due primarily to the effect of increased
cooling degree days and air conditioning load as a result of
temperatures which were significantly warmer (principally during
August) than during the same period last year and approximately
12% warmer than long-term averages. In addition, residential Kwh
sales and revenue benefited from a 3.5% increase in the average
number of residential customers served compared to the year ago
period. Residential revenues were also positively affected by
the 1994 Missouri rate case described below.
Commercial Kwh sales and revenue increased during the third
quarter of 1995 compared to the year-ago period primarily due to
warmer than normal summer temperatures along with an increase of
4.8% in the average number of commercial customers served over
the same period last year. Industrial Kwh sales and related
revenues were up during the third quarter of 1995 when compared
to the same period last year due to increased usage by the
Company's existing industrial customers resulting from increased
business activity. Commercial and industrial revenues were also
positively affected by the 1994 Missouri rate case discussed
below.
<PAGE>
The Company's residential, commercial and industrial
revenues all increased by a greater percentage than the increase
in Kwh sales would indicate due mainly to the effect of electric
rate increases and a restructuring of the Company's rates in
connection with the Company's 1994 Missouri electric rate case.
This restructuring resulted in a greater overall rate increase
for the Company's residential customers than for its commercial
and industrial customers, and in the shifting of revenue from
winter billing periods to summer billing periods.
On-system wholesale Kwh sales and related revenues were up
during the third quarter due primarily to the weather conditions
discussed above. Revenues from Kwh sales to other electric
systems (off-system) were down significantly during the third
quarter of 1995 as compared to the same quarter a year ago,
primarily as a result of a reduction in low-margin, pass-through
sales of hydro-generated power to other utilities.
Residential Kwh sales increased for the nine and twelve
months ended September 30, 1995, reflecting primarily the warmer
weather experienced during the third quarter of this year and
continued customer growth in the Company's service territory.
Residential revenues for the corresponding periods also increased
as a result of the electric rate increase discussed above. Total
commercial and industrial Kwh sales and related revenues during
the nine and twelve months ended September 30, 1995 increased as
strong economic growth in the Company's service territory
continued. Revenues from on-system wholesale Kwh sales increased
at a lower relative amount compared to the increase in Kwh sales
due to the operation of the fuel adjustment clause applicable to
such FERC regulated sales. Revenues from kilowatt-hour sales to
other electric systems were down during the periods due to
decreased low-margin, pass-through sales of hydro-generated power
to other utilities.
On March 17, 1995, the Company filed a request with the
Missouri Public Service Commission for an increase in rates for
its Missouri electric customers in the amount of $8,543,910, or
5.3%. On November 3, 1995, the Commission approved a stipulated
settlement which will increase the Company's Missouri electric
rates in the amount of $1.4 million or 0.9%, effective November
15, 1995. The Company is currently evaluating the need for rate
relief in its other jurisdictions.
Operating Revenue Deductions
During the third quarter of 1995, total operating and
maintenance expenses increased approximately $8.9 million (31.1%)
($4.3 million, or 15.1%, exclusive of the one-time charge
discussed below relating to the Company's voluntary early
retirement program) compared to the same period last year.
Purchased power costs increased approximately $0.9 million (9.5%)
during the third quarter of 1995, due primarily to increased
customer demand as a result of weather conditions which were
warmer than the same period last year.
Total fuel costs increased approximately $2.1 million
(24.4%) compared to the same period last year. Fuel-generated
kilowatt-hours increased 15.1% over the year-ago period,
reflecting increased demand for energy resulting from the warm
temperatures experienced during the third quarter of 1995 and
continued customer growth. During the quarter, the Company
substantially increased its generation from higher-cost, gas-
fired combustion turbine units following completion of the
conversion of the Company's Energy Center to utilize gas as a
primary fuel, as well as the commercial availability of the
Company's new State Line Power Plant. Other operating expenses
increased approximately $0.9 million (12.2%) compared to the
third quarter of last year, due primarily to higher general and
administrative costs and increased customer service expenses.
<PAGE>
In addition, the Company incurred a one-time pre-tax charge
of approximately $4.6 million related to the implementation and
acceptance by qualifying employees of an enhanced voluntary early
retirement program described in the Company's Current Report on
Form 8-K, dated July 17, 1995. This program was offered as part
of the previously disclosed Competitive Positioning Process.
As part of the Competitive Positioning Process, the Company has
re-evaluated its existing structure and is currently implementing
changes with the goal of improving efficiency.
Maintenance and repair expense increased approximately $0.4
million (13.3%) during the third quarter of 1995 when compared to
the same quarter last year, due primarily to increased
maintenance performed on the Company's generating units as well
as increased distribution system maintenance.
Depreciation expense increased approximately $0.5 million
(11.3%) during the quarter due to increased levels of plant-in-
service primarily at the Company's State Line Power Plant. Total
income taxes were up slightly during the quarter due to higher
taxable income. Taxes other than income taxes increased
approximately $0.2 million (7.6%) during the third quarter,
reflecting increased property tax rates, higher levels of plant-
in-service and increased franchise taxes relating to higher
revenues.
For the nine months and twelve months ended September 30,
1995, total operating expenses were up approximately $7.6 million
(10.5%) and $6.4 million (6.6%), respectively, compared to the
same periods last year. Total fuel and purchased power costs
increased approximately $1.5 million (3.0%) and $0.3 million
(0.5%), respectively, during the current year periods due
primarily to higher customer demand resulting from warmer weather
and continued customer growth.
During the nine months and twelve months ended September 30,
1995, other operating expenses increased approximately $1.5
million (6.6%) and $1.5 million (4.9%) respectively, when
compared to the previous year periods. This was due primarily to
increased work on the Company's distribution system, and costs
associated with the previously disclosed proceedings relating to
the purchase of energy from Ahlstrom Development Corporation and
with the Competitive Positioning Process.
Maintenance expense increased during the nine months and
twelve months ended September 30, 1995, by approximately $1.8
million (23.3%) and $2.2 million (21.4%) respectively, due
primarily to increased maintenance performed on the Company's
generating units as well as increased maintenance to the
Company's distribution system. The Company's Riverton Unit #7
underwent an extended outage to remove cracks in the turbine
rotor shaft during the second quarter of 1995. The total cost of
the repair and the related inspection was approximately $0.4
million. In addition, more maintenance was performed during the
scheduled spring maintenance outage at the Company's Asbury Plant
during the second quarter of 1995 than was performed during the
1994 spring outage.
<PAGE>
For the nine months and twelve months ended September 30,
1995, depreciation expense increased approximately $0.9 million
(6.5%) and $1.0 million (5.6%), respectively, over the same
periods in 1994, reflecting additional plant and equipment placed
in service.
Total provision for income taxes decreased slightly during
the nine-month period ending September 30, 1995, due to lower
taxable income. Income taxes increased approximately $0.9
million (9.5%) during the twelve-month period, reflecting
increased taxable income during the current period when compared
to the same period a year ago.
Nonoperating Items
Allowance for funds used during construction ("AFUDC")
decreased during the third quarter of 1995 when compared to the
same period of 1994, due to a lower level of construction work in
progress. During the nine months and twelve months ended
September 30, 1995, AFUDC increased significantly over the prior
year levels, reflecting a higher level of construction work in
progress, particularly due to construction of the Company's new
State Line Power Plant, which was placed in service on May 30,
1995, as well as higher rates for AFUDC determined in accordance
with formulas prescribed by the FERC.
Interest income increased during each of the periods ending
September 30, 1995, reflecting higher interest earned on
investments and the temporary investment of the proceeds from the
Company's issuance of a new series of First Mortgage Bonds prior
to the redemption of another series of First Mortgage Bonds.
Earnings
For the third quarter of 1995, earnings per share of common
stock were $0.53 compared to $0.56 earned during the third
quarter of 1994. While revenues showed strong growth due to
warmer than normal weather, customer growth and the Missouri rate
increase, these increases were negatively impacted (approximately
$0.18 per share) by the one-time charge related to the enhanced
voluntary early retirement program discussed above.
For the nine months ended September 30, 1995, earnings per
common share were $1.03 compared to $1.06 earned for the same
period last year. Earnings per common share for the twelve
months ended September 30, 1995, were $1.29 compared to $1.25
earned during the same period last year. Increased earnings
resulting from warmer than normal weather during the third
quarter of 1995, continued customer growth, the rate increases
received in Missouri, Kansas and Oklahoma, as well as substantial
increases in AFUDC were offset in part by costs related to the
enhanced voluntary early retirement program discussed above and
by increased preferred stock dividend requirements. Earnings for
the three-month, nine-month and twelve-months ended September 30,
1995, were also affected by the increased number of common shares
outstanding as a result of the issuance of 900,000 shares of
common stock in April, 1995.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
The Company's construction-related expenditures totaled $9.2
million during the third quarter of 1995, compared to $19.3
million for the same period of 1994. For the nine months ended
September 30, 1995, construction-related expenditures totaled
$37.5 million compared to $54.0 million for the same period of
1994. Approximately $11.5 million of expenditures during the
first nine months of 1995 were related to the construction of
Unit #1 at the State Line Power Plant, which was placed in
service on May 30, 1995, and initial expenditures for a second 98
Mw combustion turbine unit scheduled for completion at that site
in mid-1997. Additions to the Company's distribution system to
accommodate additional customer demand represented approximately
$7.7 million of construction expenditures during the period.
Approximately two-thirds of construction expenditures for the
first nine months of 1995 were provided internally from
operations; the remainder was provided from the sale to the
public of the Company's Common Stock and First Mortgage Bonds,
the issuance of commercial paper, and from the sale of common
stock through the Company's Dividend Reinvestment Plan and
Employee Stock Purchase Plan.
The Company's construction expenditures are expected to
total approximately $54.7 million in 1995, including
approximately $13.5 million for new generation additions and
approximately $25.9 million for additions to the Company's
distribution system.
The Company estimates that internally generated funds will
provide approximately one-half of the remaining funds required
for its 1995 construction expenditures. The Company expects to
utilize the proceeds of issuances of short-term commercial paper,
along with the sale of the Company's common stock pursuant to its
Dividend Reinvestment Plan and Employee Stock Purchase Plan, to
finance the remainder of its 1995 construction expenditures. The
Company plans to continue to utilize short-term debt as needed to
support normal operations and for other temporary requirements.
<PAGE>
PART II. OTHER INFORMATION
Item 5. Other Information.
By Report and Order issued November 8, 1995, effective
November 29, 1995, the Missouri Public Service Commission
dismissed the complaint of Ahlstrom Development Corporation and
Cottonwood Energy Partners, L.P., (collectively "Ahlstrom") which
was filed with the Commission on August 1, 1994. That complaint
had requested that the Missouri Public Service Commission require
the Company to purchase power from Ahlstrom beginning in the year
2000. The complaint filed by Ahlstrom in Kansas is still
pending.
At September 30, 1993, the ratio of earnings to fixed
charges, and the ratio of earnings to fixed charges and preferred
stock dividend requirements, were 3.03x and 2.46x, respectively.
See Exhibit (12) hereto.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
(12) Computation of Ratio and Earnings to Fixed Charges
and Earnings to Combined Fixed Charges and Preferred
Stock Dividend Requirements.
(27) Financial Data Schedule for September 30, 1995.
(b) In a Current Report on Form 8-K, dated July 17, 1995, the
Company filed, under Item 5. "Other Events," information
concerning the Company's announcement of an enhanced
voluntary early retirement program.
<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.
THE EMPIRE DISTRICT ELECTRIC COMPANY
Registrant
By R. B. Fancher
------------------------
R. B. Fancher
Vice President - Finance
By G. A. Knapp
------------------------
G. A. Knapp
Controller and Assistant Treasurer
November 14, 1995
EXHIBIT (12)
<TABLE>
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK
DIVIDEND REQUIREMENTS
<CAPTION>
Twelve
Months Ended
September 30,
1995
<S> <C>
Income before provision for income taxes and
fixed charges (Note A) $ 47,309,561
Fixed charges:
Interest on first mortgage bonds $ 13,783,895
Amortization of debt discount and expense
less premium 810,126
Interest on short-term debt 622,159
Other interest 261,231
Rental expense representative of an interest
factor (Note B) 117,836
Total fixed charges 15,595,247
Preferred stock dividend requirements:
Preferred stock dividend requirements not
deductible for tax purposes 2,338,304
Ratio of income before provision for income
taxes to net income 1.510
Nondeductible dividend requirements 3,530,839
Deductible dividends 78,036
Total preferred stock dividend requirements 3,608,875
Total combined fixed charges and preferred stock
dividend requirements $ 19,204,122
Ratio of earnings to fixed charges 3.03x
Ratio of earnings to combined fixed charges and
preferred stock dividend requirements 2.46x
<FN>
NOTE A:For the purpose of determining earnings in the calculation of the
ratio, net income has been increased by the provision for income
taxes, non-operating income taxes and by the sum of fixed
charges as shown above.
NOTE B: One-third of rental expense (which approximates the interest factor).
</TABLE>
<TABLE> <S> <C>
<ARTICLE> UT
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 467,819,759
<OTHER-PROPERTY-AND-INVEST> 0
<TOTAL-CURRENT-ASSETS> 42,117,115
<TOTAL-DEFERRED-CHARGES> 43,185,465
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 553,122,339
<COMMON> 15,140,640
<CAPITAL-SURPLUS-PAID-IN> 124,260,525
<RETAINED-EARNINGS> 54,705,742
<TOTAL-COMMON-STOCKHOLDERS-EQ> 194,106,907
0
32,901,800
<LONG-TERM-DEBT-NET> 194,715,848
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 5,000,000
<LONG-TERM-DEBT-CURRENT-PORT> 0
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 131,397,784
<TOT-CAPITALIZATION-AND-LIAB> 553,122,339
<GROSS-OPERATING-REVENUE> 147,650,074
<INCOME-TAX-EXPENSE> 8,752,745
<OTHER-OPERATING-EXPENSES> 112,302,483
<TOTAL-OPERATING-EXPENSES> 121,055,228
<OPERATING-INCOME-LOSS> 26,594,846
<OTHER-INCOME-NET> 950,549
<INCOME-BEFORE-INTEREST-EXPEN> 27,545,395
<TOTAL-INTEREST-EXPENSE> 10,724,485
<NET-INCOME> 16,820,910
1,812,255
<EARNINGS-AVAILABLE-FOR-COMM> 15,008,655
<COMMON-STOCK-DIVIDENDS> 14,086,255
<TOTAL-INTEREST-ON-BONDS> 11,162,867
<CASH-FLOW-OPERATIONS> 35,848,436
<EPS-PRIMARY> 1.03
<EPS-DILUTED> 1.03
</TABLE>
