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 March 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 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 April 30, 1996: 16,182,036 shares.
<PAGE>
THE EMPIRE DISTRICT ELECTRIC COMPANY
INDEX
Page Number
Part I - Financial Information:
Item 1. Financial Statements:
a.Statement of Income 3
b.Balance Sheet 5
c.Statement of Cash Flows 6
d.Notes to Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
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 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
<PAGE>
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
STATEMENT OF INCOME (UNAUDITED)
Three Months Ended
March 31,
1996 1995
<S> <C> <C>
Operating revenues:
Electric $ 47,382,550 $42,161,522
Water 257,513 234,109
47,640,063 42,395,631
Operating revenue deductions:
Operating expenses:
Fuel 8,639,717 7,391,065
Purchased power 11,101,925 7,898,548
Other 7,472,130 7,622,122
Total operating expenses 27,213,772 22,911,735
Maintenance and repairs 2,762,649 2,818,510
Depreciation and amortization 5,282,414 4,672,709
Provision for income taxes 1,995,610 2,016,755
Other taxes 3,001,017 2,528,617
40,255,462 34,948,326
Operating income 7,384,601 7,447,305
Other income and deductions:
Allowance for equity funds used 143,100 403,445
during construction
Interest income 26,850 29,145
Other - net (115,247) 50,460
54,703 483,050
Income before interest charges 7,439,304 7,930,355
Interest charges:
First mortgage bonds 3,695,737 3,592,716
Commercial paper 177,511 272,056
Allowance for borrowed funds used (142,430) (558,527)
during construction
Other 61,818 58,121
3,792,636 3,364,366
Net income 3,646,668 4,565,989
Preferred stock dividend requirements 604,085 604,085
Net income applicable to common stock $ 3,042,583 $ 3,961,904
Weighted average number of common 15,238,248 13,966,088
shares outstanding
Earnings per weighted average share of $ 0.20 $ 0.28
common stock
Dividends per share of common stock $ 0.32 $ 0.32
</TABLE>
[FN]
See accompanying Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INCOME (UNAUDITED)
Twelve Months Ended
March 31,
1996 1995
<S> <C> <C>
Operating revenues:
Electric $197,068,787 $177,509,370
Water 1,013,705 970,454
198,082,492 178,479,824
Operating revenue deductions:
Operating expenses:
Fuel 33,173,844 30,525,497
Purchased power 39,319,554 33,922,825
Other 33,051,887 31,000,713
Voluntary early retirement program 4,583,188 -
Total operating expenses 110,128,473 95,449,035
Maintenance and repairs 12,729,629 11,391,151
Depreciation and amortization 20,460,404 18,476,176
Provision for income taxes 10,398,855 10,498,055
Other taxes 11,277,251 10,206,397
164,994,612 146,020,814
Operating income 33,087,880 32,459,010
Other income and deductions:
Allowance for equity funds used during 809,434 1,011,316
construction
Interest income 249,197 109,975
Other - net (366,657) (68,582)
691,974 1,052,709
Income before interest charges 33,779,854 33,511,719
Interest charges:
First mortgage bonds 14,961,685 13,373,976
Commercial paper 408,179 821,806
Allowance for borrowed funds used (752,709) (1,443,229)
during construction
Other 284,195 252,856
14,901,350 13,005,409
Net income 18,878,504 20,506,310
Preferred stock dividend requirements 2,416,340 2,070,841
Net income applicable to common stock $ 16,462,164 $ 18,435,469
Weighted average number of common 15,045,115 13,826,455
shares outstanding
Earnings per weighted average share of $ 1.09 $ 1.33
common stock
Dividends per share of common stock $ 1.28 $ 1.28
</TABLE>
[FN]
See accompanying Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
BALANCE SHEET
March 31,
1996 December 31,
(Unaudited) 1995
<S> <C> <C>
ASSETS
Utility plant, at original cost:
Electric $683,927,358 $677,583,831
Water 5,115,555 5,073,019
Construction work in progress 18,909,348 16,303,408
707,952,261 698,960,258
Accumulated depreciation 227,954,383 223,268,355
479,997,878 475,691,903
Current assets:
Cash and cash equivalents 3,797,761 3,816,776
Accounts receivable - trade, net 12,835,038 12,512,800
Accrued unbilled revenues 5,121,741 6,579,858
Accounts receivable - other 2,156,183 1,745,999
Fuel, materials and supplies 14,359,032 14,511,898
Prepaid expenses 519,562 682,413
38,789,317 39,849,744
Deferred charges:
Regulatory asset 25,644,003 25,589,864
Unamortized debt expenses 14,334,139 14,546,428
Other 1,563,321 1,690,334
41,541,463 41,826,626
Total Assets $560,328,658 $557,368,273
CAPITALIZATION AND LIABILITIES:
Common stock, $1 par value, 15,293,645
and 15,215,933 shares issued and
outstanding, respectively $ 15,293,645 $ 15,215,933
Capital in excess of par value 127,096,941 125,690,842
Retained earnings (Note 2) 50,400,772 52,230,584
Total common stockholders' equity 192,791,358 193,137,359
Preferred stock 32,901,800 32,901,800
Long-term debt 194,708,780 194,704,814
420,401,938 420,743,973
Current liabilities:
Accounts payable and accrued 11,943,402 14,308,497
liabilities
Commercial paper 13,500,000 14,000,000
Customer deposits 2,535,730 2,516,903
Interest accrued 5,462,878 3,354,668
Taxes accrued, including income taxes 5,111,633 1,486,304
38,553,643 35,666,372
Noncurrent liabilities and deferred
credits:
Regulatory liability 19,419,369 19,680,363
Deferred income taxes 61,265,593 60,495,301
Unamortized investment tax credits 10,051,480 10,141,000
Postretirement benefits other than 4,350,049 4,343,938
pensions
Other 6,286,586 6,297,326
101,373,077 100,957,928
Total Capitalization and
Liabilities $560,328,658 $557,368,273
</TABLE>
[FN]
See accompanying Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CASH FLOWS (UNAUDITED)
Three Months Ended
March 31,
1996 1995*
<S> <C> <C>
Operating activities:
Net income $ 3,646,668 $ 4,565,989
Adjustments to reconcile net income to
cash flows:
Depreciation 5,559,098 4,955,443
Deferred income taxes - net 402,451 205,639
Investment tax credit - net (89,520) (105,320)
Allowance for equity funds used (143,100) (403,445)
during construction
Issuance of common stock for 401(k) 175,622 176,400
plans
Other 783,625 995,798
Cash flows impacted by changes in:
Receivables and accrued unbilled 725,695 2,239,766
revenues
Fuel, materials and supplies 152,866 (590,654)
Prepaid expenses and deferred 543,182 56,517
charges
Accounts payable and accrued (2,364,805) (2,779,234)
liabilities
Customer deposits, interest and 5,752,366 6,087,928
taxes accrued
Other liabilities and deferred (772,900) (1,163,024)
credits
Net cash provided by operating 14,371,248 14,241,803
activities
Investing activities:
Construction expenditures (9,865,072) (14,062,277)
Allowance for equity funds used 143,100 403,445
during construction
Net cash used in investing activities (9,721,972) (13,658,832)
Financing activities:
Proceeds from issuance of common 1,308,189 1,378,156
stock
Dividends (5,476,480) (5,069,566)
Repayment of long-term debt - (74,000)
Net proceeds from short-term (500,000) 2,500,000
borrowings
Net cash used in financing activities (4,668,291) (1,265,410)
Net decrease in cash and cash (19,015) (682,439)
equivalents
Cash and cash equivalents at beginning 3,816,776 3,362,653
of period
Cash and cash equivalents at end of $ 3,797,761 $ 2,680,214
period
</TABLE>
[FN]
*Certain reclassifications have been made to conform with current year
reporting methodology.
See accompanying Notes to Financial Statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Note 1 - Summary of Significant Accounting Policies
The accompanying interim financial statements do not include all
disclosures included in the annual financial statements and therefore
should be read in conjunction with the financial statements and notes
thereto included in the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 1995.
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.
<TABLE>
<CAPTION>
Note 2 - Retained Earnings
First
Quarter
1996
<S> <C>
Balance at January 1, 1996 $52,230,584
Changes January 1 through March 31:
Net Income 3,646,668
Quarterly cash dividends on common stock:
- $0.32 per share (4,872,395)
Quarterly cash dividends on preferred stock:
8-1/8% cumulative - $0.203125 per share (507,813)
5% cumulative - $0.125 per share (48,772)
4-3/4% cumulative - $0.11875 per share (47,500)
Total changes January 1 through March 31 (1,829,812)
Balance at March 31, 1996 $50,400,772
</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 and twelve-month periods
ended March 31, 1996, compared to the same periods ended March 31,
1995.
Operating Revenues and Kilowatt-Hour Sales
The Company's total electric operating revenues increased
approximately $5.2 million (12.4%) during the first quarter of 1996
compared to the first quarter of 1995. Approximately 46% of such total
electric operating revenues during the first three months of 1996 were
from residential customers, 28% from commercial, 16% from industrial
and 5% from wholesale on-system customers. The remainder of such
revenues was derived from miscellaneous sources. 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
Twelve Twelve
First Months First Months
Quarter Ended Quarter Ended
<S> <C> <C> <C> <C>
Residential 17.1% 11.5% 14.5% 15.0%
Commercial 13.1 8.8 12.7 10.9
Industrial 5.2 4.0 6.2 6.2
Wholesale On-System 7.9 5.1 18.2 7.9
</TABLE>
Residential Kwh sales and revenue increased significantly during
the first quarter of 1996 compared to the first quarter of 1995
primarily due to significantly colder temperatures experienced during
the first quarter of 1996, along with an increase of 2.9% in the
average number of residential customers served. Residential revenues
were also positively affected by the increase in Missouri rates which
became effective November 15, 1995.
Commercial Kwh sales and revenue increased during the quarter
reflecting the cold temperatures, along with an increase of 4.5% in
the average number of commercial customers served. Both commercial and
industrial Kwh sales and related revenues were positively affected by
continuing increases in business activity throughout the Company's
service territory. Industrial revenues were also positively affected
by the increase in Missouri rates which became effective November 15,
1995.
Residential and commercial Kwh sales increased more than the
corresponding increase in revenues due to the effect of changes in the
Company's rate design in its 1994 Missouri rate increase. This
restructuring resulted in, among other things, the shifting of revenue
from winter billing periods to summer billing periods.
On-system wholesale Kwh sales were up during the first quarter of
1996 due primarily to the colder weather conditions discussed above.
The larger percentage increase in revenues associated with those sales
resulted from the operation of the fuel adjustment clause, which
permits the pass through to customers of higher fuel and purchased
power costs, applicable to such FERC regulated sales.
<PAGE>
For the twelve months ended March 31, 1996, Kwh sales and
revenues to the Company's on-system customers were up over the year
earlier period, reflecting primarily warmer summer temperatures
experienced during 1995 compared to the mild summer weather in 1994,
significantly colder weather during the first quarter of 1996, the
continued strong customer growth throughout the Company's service
territory and the effect of the Missouri electric rate increase
discussed above.
Other Revenues
In addition to sales to its own customers, the Company also sells
power to other utilities to the extent it is available and provides
transmission service through its system for transactions between other
energy suppliers. During the first quarter of 1996, income from such
off-system transactions exceeded related expenses by approximately
$0.5 million, compared with approximately $0.4 million during the
first quarter of 1995. For the twelve months ended March 31, 1996,
income from such off-system transactions exceeded related expenses by
approximately $1.9 million, compared with approximately $1.5 million
during the twelve months ended March 31, 1995. The increase in net
income from off-system transactions during the current periods was due
primarily to an increase in revenue from transmission service
transactions through the Western Systems Power Pool, of which the
Company is a member.
Operating Revenue Deductions
During the first quarter of 1996, total operating and maintenance
expenses increased approximately $4.2 million (16.5%) compared to the
first quarter of 1995. Purchased power costs were up approximately
$3.2 million (40.6%) during the period, primarily due to increased
purchases needed to meet higher customer demand resulting from the
cold weather conditions experienced during the quarter, along with the
increased number of customers served. The periods of extremely cold
weather during January and February caused the Company's suppliers to
curtail the delivery of natural gas to the Company and other utilities
in the region during those months, and also resulted in the decreased
availability of low-cost nuclear and hydro-generated power from other
utilities. These factors contributed to a higher demand and a tight
market for purchased energy and resulted in significantly higher
prices during the period. Reduced availability at certain of the
Company's generating plants also resulted in the need for increased
purchases of power. Scheduled spring maintenance at the Company's
Asbury Plant, which did not begin until the second quarter of 1995,
began on March 22 of this year. This maintenance outage was a major
inspection which occurs every five years. As a result of the need to
replace some blading in the turbine, the Plant is not expected to be
returned to service until the end of May. Generation at the Company's
Ozark Beach Hydro Plant was down approximately 63% during the first
quarter compared to the same period last year due to low lake levels.
Total fuel costs were up approximately $1.2 million (16.9%)
during the first quarter of 1996, reflecting primarily the use of
higher cost fuel oil at the Energy Center and Riverton Power Plants
during periods of extremely cold weather when the supply of natural
gas was curtailed.
<PAGE>
Other operating expenses decreased approximately $0.1 million
(2.0%) during the period, due primarily to lower general and
administrative costs. Such amounts for the first quarter of 1995 were
higher due to expenses in connection with the Company's 1995
Competitive Positioning Process ("CPP") and the proceedings relating
to the proposed purchase of energy from Ahlstrom Development
Corporation. Maintenance and repairs expenses decreased slightly
during the quarter, primarily due to the return to more normal levels
of maintenance at the Riverton Plant as compared with the extended
outage experienced during the first half of 1995 to repair cracks in a
turbine rotor shaft, offset in part by increased expenses associated
with the Asbury maintenance outage discussed above.
Depreciation and amortization expenses increased approximately
$0.6 million (13.0%) during the quarter due to increased levels of
plant and equipment placed in service, particularly at the Company's
State Line Power Plant. Total income taxes declined slightly during
the first quarter due primarily to lower taxable income during the
current period. Other taxes were up approximately $0.5 million (18.7%)
during the quarter reflecting increased property tax rates, higher
levels of plant-in-service and increased franchise taxes relating to
higher revenues.
During the twelve months ended March 31, 1996, total operating
and maintenance expenses were up approximately $16.0 million (15.0%)
compared to the year ago period. Total purchased power costs were up
approximately $5.4 million (15.9%), primarily due to increased
purchases of higher-cost energy needed to meet increased customer
demand resulting from the warm summer temperatures experienced during
1995, the cold weather during the first quarter of 1996 and the
increase in the number of customers served. Total fuel costs were up
approximately $2.6 million (8.7%) during the period, due primarily to
a substantial increase in 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 State Line Power Plant. Also
affecting fuel costs during the twelve-month period was the use of
higher cost fuel oil during periods of extremely cold weather in the
first quarter of 1996 when the supply of natural gas was curtailed.
Other operating expenses increased approximately $6.6 million
(26.4%) during the twelve months ended March 31, 1996, compared to the
same period last year, due primarily to higher general and
administrative costs associated with the CPP, the proceedings relating
to the proposed purchase of energy from Ahlstrom Development
Corporation, additional costs related to implementation of FAS 106,
increased work on the Company's distribution system and increased
customer accounts expense. Maintenance and repair expenses increased
approximately $1.3 million (11.8%) during the period, due primarily to
increased maintenance performed on the Company's Asbury and Riverton
generating units as well as increased work performed on the Company's
distribution system resulting in part from the growing size of the
system. Depreciation and amortization expense increased approximately
$2.0 million (10.7%) due to increased levels of plant and equipment
placed in service, particularly at the Company's State Line Power
Plant. Total provision for income taxes decreased slightly due to
lower taxable income. Other taxes were up approximately $1.1 million
(10.5%) during the period reflecting increased property tax rates,
higher levels of plant-in-service and increased franchise taxes
relating to higher revenues.
<PAGE>
Nonoperating Items
Total allowance for funds used during construction (AFUDC)
decreased substantially during both current year periods, reflecting
lower levels of construction work in progress, particularly due to the
completion of the Company's new State Line Plant.
Interest income during the first quarter of 1996 was virtually
level with the same period last year, as higher rates earned on
investments offset the lower balances of cash available for
investment. For the twelve months ended March 31, 1996, interest
income was up over the same period in 1995, reflecting higher rates of
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. "Other-net" was higher during the 1995 periods due to the
Company's share of the gain recognized from the sale of 248 railcars
by the joint-owners of the Iatan Plant.
Interest charges on first mortgage bonds increased in both
current year periods due to additional issuances of the Company's
First Mortgage Bonds. Other interest charges were down during the
periods due to decreased levels of short-term borrowing.
Earnings
For the first quarter of 1996, earnings per share of common stock
were $0.20 compared to $0.28 earned during the first quarter of 1995.
Earnings per common share for the twelve months ended March 31, 1996,
were $1.09 compared to $1.33 earned during the same period last year.
Increased revenues resulting from weather conditions favorable to
increased Kwh sales, continued customer growth and the Missouri rate
increase were more than offset by the increase in expenses discussed
above, particularly purchased power expenses and higher fuel costs.
Earnings per share also reflect decreased levels of AFUDC and the
Company's issuance of 900,000 shares of common stock in April 1995.
For the twelve months ended March 31, 1996, earnings per share of
common stock were down due to the factors discussed above with respect
to the first quarter of 1996, along with the one-time pre-tax charge
of approximately $4.6 million related to the Company's enhanced
voluntary early retirement program (which reduced earnings by
approximately $0.19 per share), increased preferred stock dividend
requirements resulting from the Company's issuance of preferred stock
in a public offering in June 1994, and increased interest requirements
resulting from the issuance of first mortgage bonds.
LIQUIDITY AND CAPITAL RESOURCES
The Company's construction-related expenditures totaled $9.9
million during the first quarter of 1996, compared to $14.1 million
for the same period in 1995. During the first quarter of 1996,
approximately 90% of construction expenditures and other funds
requirements were satisfied internally from operations; the remainder
was provided from the issuance of commercial paper, and from the sale
of common stock through the Company's Dividend Reinvestment Plan and
Employee Stock Purchase Plan.
<PAGE>
The Company's construction expenditures are expected to total
approximately $60.7 million in 1996, including approximately $21.7
million for additions to the Company's distribution system to meet
projected increases in customer demand and approximately $15.7 million
for new generating facilities.
The Company currently estimates that internally generated funds
will provide approximately one-half of the funds required for the
remainder of its 1996 construction expenditures. As in the past, the
Company intends to utilize short-term debt to finance the additional
amounts needed for such construction and repay such borrowings with
the proceeds of sales of public offerings of long-term debt or equity
securities, including the sale of the Company's common stock pursuant
to its Dividend Reinvestment Plan and Employee Stock Purchase Plan and
from internally-generated funds. Subject to market and other
conditions, the Company currently plans to issue first mortgage bonds
during the second half of 1996. The Company will continue to utilize
short-term debt as needed to support normal operations or other
temporary requirements.
On April 9, 1996, the Company sold to the public in an
underwritten offering 880,000 shares of its Common Stock. The net
proceeds of the offering of approximately $15.0 million were added to
the Company's general funds and used to repay short-term indebtedness
or for expenses incurred in connection with the Company's construction
program.
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.
(a) The annual meeting of Common Stockholders was held on April 25,
1996.
(b) The following persons were re-elected Directors of the Company to
serve until the 1999 Annual Meeting of Stockholders:
M.F. Chubb, Jr. (11,505,048 votes for; 188,110 withheld
authority).
R.L. Lamb (11,531,132 votes for; 162,026 withheld
authority).
R.E. Mayes (11,505,956 votes for; 187,202 withheld
authority).
The term of office as Director of the following other Directors
continued after the meeting: V. E. Brill, R. D. Hammons, R. C.
Hartley, J. R. Herschend, F. E. Jeffries, M. W. McKinney and M.
M. Posner.
Item 5. Other Information.
At March 31, 1996, the Company's ratio of earnings to fixed
charges, and ratio of earnings to fixed charges and preferred stock
dividend requirements, were 2.86x and 2.31x, respectively. See Exhibit
(12) hereto.
<PAGE>
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 March 31, 1996
(b) No reports on Form 8-K were filed during the first quarter of
1996.
<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
May 15, 1996
<TABLE>
<CAPTION>
EXHIBIT (12)
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDEND
REQUIREMENTS
Twelve
Months Ended
March 31,
1996
<S> <C>
Income before provision for income taxes and fixed $ 45,047,230
charges (Note A)
Fixed charges:
Interest on first mortgage bonds $ 14,109,162
Amortization of debt discount and expense less premium 852,523
Interest on short-term debt 412,679
Other interest 279,695
Rental expense representative of an interest factor (Note 117,887
B)
Total fixed charges 15,771,946
Preferred stock dividend requirements:
Preferred stock dividend requirements not deductible for 2,338,304
tax purposes
Ratio of income before provision for incomes taxes to net 1.551
income
Nondeductible dividend requirements 3,626,710
Deductible dividends 78,036
Total preferred stock dividend requirements 3,704,746
Total combined fixed charges and preferred stock dividend $ 19,476,692
requirements
Ratio of earnings to fixed charges 2.86x
Ratio of earnings to combined fixed charges and preferred 2.31x
stock dividend requirements
</TABLE>
[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> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AT MARCH 31, 1996 AND THE STATEMENT OF INCOME AND THE STATEMENT OF CASH
FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTRIETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 479,997,878
<OTHER-PROPERTY-AND-INVEST> 0
<TOTAL-CURRENT-ASSETS> 38,789,317
<TOTAL-DEFERRED-CHARGES> 41,541,463
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 560,328,658
<COMMON> 15,293,645
<CAPITAL-SURPLUS-PAID-IN> 127,096,941
<RETAINED-EARNINGS> 50,400,772
<TOTAL-COMMON-STOCKHOLDERS-EQ> 192,791,358
0
32,901,800
<LONG-TERM-DEBT-NET> 194,708,780
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 13,500,000
<LONG-TERM-DEBT-CURRENT-PORT> 0
0
<CAPITAL-LEASE-OBLIGATIONS> 0
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604,085
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</TABLE>
