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, 1997 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, 1997: 16,520,313
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 12
Holders
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,
1997 1996
<S> <C> <C>
Operating revenues:
Electric $47,056,481 $47,382,550
Water 248,286 257,513
47,304,767 47,640,063
Operating revenue deductions:
Operating expenses:
Fuel 6,781,084 8,639,717
Purchased power 12,578,852 11,101,925
Other 7,910,516 7,472,130
Total operating expenses 27,270,452 27,213,772
Maintenance and repairs 3,032,191 2,762,649
Depreciation and amortization 5,556,021 5,282,414
Provision for income taxes 1,515,833 1,995,610
Other taxes 2,856,839 3,001,017
40,231,336 40,255,462
Operating income 7,073,431 7,384,601
Other income and deductions:
Allowance for equity funds used - 143,100
during construction
Interest income 23,816 26,850
Other - net (121,514) (115,247)
(97,698) 54,703
Income before interest charges 6,975,733 7,439,304
Interest charges:
Long-term debt 4,148,202 3,695,737
Allowance for borrowed funds used (511,959) (142,430)
during construction
Other 214,674 239,329
3,850,917 3,792,636
Net income 3,124,816 3,646,668
Preferred stock dividend requirements 604,085 604,085
Net income applicable to common stock $2,520,731 $3,042,583
Weighted average number of common 16,457,197 15,238,248
shares outstanding
Earnings per weighted average share of $0.15 $0.20
common stock
Dividends per share of common stock $0.32 $0.32
</TABLE>
<FOOTNOTE>
See accompanying Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INCOME (UNAUDITED)
Twelve Months Ended
March 31,
1997 1996
<S> <C> <C>
Operating revenues:
Electric $204,607,553 $197,068,787
Water 1,041,109 1,013,705
205,648,662 198,082,492
Operating revenue deductions:
Operating expenses:
Fuel 31,715,702 33,173,844
Purchased power 48,869,956 39,319,554
Other 30,484,532 33,051,887
Voluntary early retirement program - 4,583,188
Total operating expenses 111,070,190 110,128,473
Maintenance and repairs 13,941,625 12,729,629
Depreciation and amortization 21,863,118 20,460,404
Provision for income taxes 11,320,223 10,398,855
Other taxes 11,112,308 11,277,251
169,307,464 164,994,612
Operating income 36,341,198 33,087,880
Other income and deductions:
Allowance for equity funds used 395,795 809,434
during construction
Interest income 155,335 249,197
Other - net (350,793) (366,657)
200,337 691,974
Income before interest charges 36,541,535 33,779,854
Interest charges:
Long-term debt 15,334,029 14,961,685
Allowance for borrowed funds used (1,250,964) (752,709)
during construction
Other 931,115 692,374
15,014,180 14,901,350
Net income 21,527,355 18,878,504
Preferred stock dividend requirements 2,416,340 2,416,340
Net income applicable to common stock $19,111,015 $16,462,164
Weighted average number of common 16,318,551 15,045,115
shares outstanding
Earnings per weighted average share of $1,17 $1.09
common stock
Dividends per share of common stock $1.28 $1.28
</TABLE>
<FOOTNOTE>
See accompanying Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
BALANCE SHEET
March 31,
1997 December 31,
(Unaudited) 1996
<S> <C> <C>
ASSETS
Utility plant, at original cost:
Electric $731,653,031 $714,913,653
Water 5,433,931 5,331,286
Construction work in progress 35,646,463 37,016,435
772,733,425 757,261,374
Accumulated depreciation 247,684,340 242,051,460
525,049,085 515,209,914
Current assets:
Cash and cash equivalents 3,128,621 2,246,136
Accounts receivable - trade, net 11,312,397 12,704,920
Accrued unbilled revenues 4,294,153 6,423,760
Accounts receivable - other 2,606,729 2,874,669
Fuel, materials and supplies 14,081,185 14,435,741
Prepaid expenses 874,042 796,413
36,297,127 39,481,639
Deferred charges:
Regulatory assets 37,640,339 37,831,661
Unamortized debt issuance costs 3,576,271 3,633,349
Other 770,613 823,177
41,987,223 42,288,187
Total Assets $603,333,435 $596,979,740
CAPITALIZATION AND LIABILITIES:
Common stock, $1 par value,
16,511,329 and
16,436,559 shares issued and
outstanding,
respectively $16,511,329 $16,436,559
Capital in excess of par value 146,742,812 145,313,610
Retained earnings (Note 2) 48,597,826 51,340,554
Total common stockholders' equity 211,851,967 213,090,723
Preferred stock 32,901,800 32,901,800
Long-term debt 219,537,643 219,533,678
464,291,410 465,526,201
Current liabilities:
Accounts payable and accrued 12,139,019 14,607,179
liabilities
Commercial paper 11,000,000 7,500,000
Customer deposits 2,894,229 2,820,896
Interest accrued 6,022,396 3,455,254
Taxes accrued, including income 3,907,922 449,771
taxes
35,963,566 28,833,100
Noncurrent liabilities and deferred
credits:
Regulatory liability 18,371,910 18,648,961
Deferred income taxes 65,590,667 64,992,745
Unamortized investment tax credits 9,498,910 9,561,000
Postretirement benefits other than 4,853,429 4,417,796
pensions
Other 4,763,543 4,999,937
103,078,459 102,620,439
Total Capitalization and $603,333,435 $596,979,740
Liabilities
</TABLE>
<FOOTNOTE>
See accompanying Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CASH FLOWS (UNAUDITED)
Three Months Ended
March 31,
1997 1996*
<S> <C> <C>
Operating activities:
Net income $3,124,816 $3,646,668
Adjustments to reconcile net income
to cash flows:
Depreciation and amortization 6,284,845 5,874,596
Pension income (237,501) (177,999)
Deferred income taxes, net 209,945 402,451
Investment tax credit, net (62,090) (89,520)
Allowance for equity funds used - (143,100)
during construction
Issuance of common stock for 401(k) 176,738 175,622
plan
Other 35,826 13,031
Cash flows impacted by changes in:
Accounts receivable and accrued 3,790,070 725,695
unbilled revenues
Fuel, materials and supplies 354,557 152,866
Prepaid expenses and deferred (75,420) 230,298
charges
Accounts payable and accrued (2,468,161) (2,364,805)
liabilities
Customer deposits, interest and 6,098,626 5,752,366
taxes accrued
Other liabilities and other 436,741 173,080
deferred credits
Net cash provided by operating 17,668,992 14,371,249
activities
Investing activities:
Construction expenditures (15,734,205) (9,865,072)
Allowance for equity funds used - 143,100
during construction
Net cash used in investing activities (15,734,205) (9,721,972)
Financing activities:
Proceeds from issuance of common 1,327,233 1,308,189
stock
Dividends (5,867,544) (5,476,480)
Payment of debt issue costs (11,991) -
Net proceeds from short-term 3,500,000 (500,000)
borrowings
Net cash used in financing activities (1,052,302) (4,668,291)
Net increase (decrease) in cash and 882,485 (19,014)
cash equivalents
Cash and cash equivalents at beginning 2,246,136 3,816,775
of period
Cash and cash equivalents at end of $3,128,621 $3,797,761
period
</TABLE>
<FOOTNOTE>
*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, 1996.
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
1997
<S> <C>
Balance at January 1, 1997 $51,340,554
Changes January 1 through March 31:
Net Income 3,124,816
Quarterly cash dividends on common stock:
- $0.32 per share (5,263,459)
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 (2,742,728)
Balance at March 31, 1997 $48,597,826
</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, 1997, compared to the same periods ended
March 31, 1996.
Operating Revenues and Kilowatt-Hour Sales
Of the Company's total electric operating revenues during
the first quarter of 1997, approximately 45% were from
residential customers, 28% from commercial customers, 16% from
industrial customers, 5% from wholesale on-system customers and
3% from wholesale off-system transactions. The remainder of such
revenues were 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 (5.4)% 0.5% (3.1)% 1.5%
Commercial (2.7) 2.6 (1.7) 2.7
Industrial 4.1 7.2 4.2 7.4
Net Wholesale 2.5 6.2 (0.2) 8.9
On-System
Total System (1.8) 3.2 (0.9) 3.5
</TABLE>
Mild temperatures experienced during the first three months
of 1997 resulted in a decline in residential and commercial Kwh
sales and revenue when compared to the same period in 1996 when
temperatures were colder than normal. Industrial Kwh sales and
related revenues, which are not as weather-sensitive as
residential and commercial sales, were positively affected during
the first quarter of 1997 by continuing increases in business
activity throughout the Company's service territory, although
customer growth has been at a slower rate than during the first
three months of 1996.
On-system wholesale Kwh sales were up during the first
quarter of 1997. Revenues associated with those sales, however,
decreased slightly as a result of the operation of the fuel
adjustment clause applicable to these FERC regulated sales. This
clause permits the pass through to customers of changes in fuel
and purchased power costs.
For the twelve months ended March 31, 1997, Kwh sales to and
revenue from the Company's on-system customers were up over the
year earlier period. This increase reflected primarily warmer
summer temperatures experienced during the second quarter of 1996
and significantly colder weather during the fourth quarter of
1996. Mild weather conditions during the third quarter of 1996
partially offset these positive impacts. In addition, a full year
of the November 1995 Missouri electric rate increase contributed
to the increased revenue during the year.
<PAGE>
On August 30, 1996, the Company filed a request with the
Missouri Public Service Commission for a general increase in
rates for its Missouri electric customers in the amount of
approximately $23,438,000 or 13.8%. A stipulated agreement was
filed by the parties to the case on April 4, 1997. The agreement
if approved, would allow for, among other things, a revenue
increase based on a September 30, 1996 test year, plus a true-up
amount through March 31, 1997, that will address changes in rate
base and capital structure as well as isolated adjustments for
Unit No. 2 at the Company's State Line Plant, if it is declared
in service by May 31, 1997. A hearing on the stipulation was held
on April 30, 1997, with a hearing on the true-up amount scheduled
to begin on May 23, 1997. Under Missouri law, the Commission must
act on the Company's request by July 28, 1997. The Company cannot
predict the extent of any increase which might be granted as a
result of this filing.
Off-System Transactions
In addition to sales to its own customers, the Company also
sells power to other utilities as available and also provides
transmission service through its system for transactions between
other energy suppliers. During the first quarter of both 1997 and
1996, income from such off-system transactions exceeded related
expenses by approximately $0.5 million. For the twelve months
ended March 31, 1997, income from such off-system transactions
exceeded related expenses by approximately $2.0 million, compared
with approximately $1.9 million during the twelve months ended
March 31, 1996. The increase in net income from off-system
transactions during the twelve-month period 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 1997, total operating expenses
were virtually level with total operating expenses during the
first quarter of 1996. Purchased power costs were up
approximately $1.5 million (13.3%) during the period, primarily
due to increased purchases of replacement energy needed during an
extended spring maintenance outage at the Asbury Plant. The
outage was scheduled for five weeks instead of the normal three
to allow for the completion of additional work to repair rotor
damage initially discovered during the 1996 Asbury five-year
turbine inspection, plus the connection of new fiberglass cooling
towers. The Asbury Plant was returned to service on April 16,
1997.
Total fuel costs were down approximately $1.9 million
(21.5%) during the first quarter of 1997, reflecting primarily a
decrease of approximately 75 million Kwh (11.8%) in fuel-
generated kilowatt-hours by the Company's plants corresponding to
a lower level of customer demand due to the mild weather
conditions described above. Fuel costs were also affected by the
decreased generation by higher-cost, gas-fired combustion turbine
units at the Energy Center and the Riverton Plant, and more
favorable fuel prices at the jointly-owned Iatan Plant.
Other operating expenses increased approximately $0.4
million (5.9%) during the period, due primarily to higher general
and administrative costs and increased customer account expenses.
Maintenance and repair expense increased approximately $0.3
million (9.8%) during the quarter, primarily due to the increased
expenses associated with the Asbury maintenance outage discussed
above and increased maintenance on the Company's transmission
system.
<PAGE>
Depreciation and amortization expenses increased
approximately $0.3 million (5.2%) during the quarter due to
increased levels of plant and equipment placed in service. Total
income taxes declined during the first quarter of 1997 due
primarily to lower taxable income during the current period.
Other taxes were down approximately $0.1 million (4.8%) during
the quarter reflecting primarily decreased franchise taxes
relating to lower revenues.
During the twelve months ended March 31, 1997, total
operating expenses were up approximately $0.9 million (0.9%)
compared to the year ago period. Excluding the one-time pre-tax
charge of approximately $4.6 million in the third quarter of 1995
relating to the Company's voluntary early retirement program (the
"VERP"), total operating expenses increased approximately $5.5
million (5.2%). Total purchased power costs were up approximately
$9.6 million (24.3%), primarily due to increased purchases of
replacement energy needed during the maintenance outages at the
Asbury Plant discussed above. Several forced outages at the
Company's low-cost Asbury and jointly-owned Iatan Plants during
the third quarter of 1996 also resulted in the Company purchasing
greater amounts of replacement energy than it purchased during
the same period ending March 31, 1996. Total fuel costs were down
approximately $1.5 million (4.4%) during the twelve month period
due primarily to the factors discussed for the three months ended
March 31, 1997.
Other operating expenses decreased approximately $2.6
million (7.8%) during the twelve months ended March 31, 1997,
compared to the same period last year (excluding expenses related
to the VERP), due primarily to lower general and administrative
costs. During the twelve months ended March 31, 1996, the
Company's general and administrative costs were higher in large
part because of the legal proceeding relating to the complaint
filed by Ahlstrom Development Corporation which concluded in
November 1995, and the Company's Competitive Positioning Process.
Maintenance and repair expenses increased approximately $1.2
million (9.5%) during the period, due primarily to increased
maintenance performed on the Company's distribution system. These
expenses were higher in part due to approximately $0.7 million in
repairs associated with damage from a wind storm which occurred
at the end of April 1996, and approximately $0.4 million in
repairs associated with damage from an ice storm which occurred
at the end of November 1996. Depreciation and amortization
expense increased approximately $1.4 million (6.9%) due to
increased levels of plant and equipment placed in service. Total
provision for income taxes increased due to higher taxable income
during the current period. Other taxes were down slightly during
the period.
Nonoperating Items
Total allowance for funds used during construction ("AFUDC")
increased during both current periods, reflecting higher levels
of construction work in progress, particularly due to the
construction of Unit No. 2 at the Company's State Line Plant.
Interest income decreased during both current periods,
reflecting lower balances of cash available for investment
particularly due to increased levels of construction. Interest
charges on first mortgage bonds increased in both the periods due
to additional issuances of the Company's First Mortgage Bonds.
Other interest increased during the twelve months ending March
31, 1997, primarily due to increased usage of short-term debt to
finance the Company's construction program.
<PAGE>
Earnings
For the first quarter of 1997, earnings per share of common
stock were $0.15 compared to $0.20 earned during the first
quarter of 1996. Earnings per share were down primarily due to
decreased revenues resulting from mild weather conditions, the
increase in operating and maintenance expenses discussed above
and increased first mortgage bond interest. Earnings per share
also reflect increased levels of AFUDC and a greater number of
shares outstanding because of the Company's issuance of 880,000
shares of common stock in April 1996.
Earnings per common share for the twelve months ended March
31, 1997, were $1.17 compared to $1.09 earned during the same
period last year (after giving effect to the one-time charge
related to the VERP, which reduced earnings for the twelve months
ended March 31, 1996 by approximately $0.19 per share). Increased
revenue resulting from weather conditions favorable to Kwh sales
and the 1995 Missouri rate increase was partially offset by the
increase in expenses discussed above, particularly increases in
purchased power expenses and distribution maintenance expenses.
Earnings per share for the twelve months ended March 31, 1997,
also reflect a greater number of shares outstanding because of
the Company's issuance of 880,000 shares of common stock in April
1996. The Company believes that adequate rate relief as a result
of its Missouri rate case described above will be necessary to
offset increased purchased power and other expenses, and to
improve its earnings.
LIQUIDITY AND CAPITAL RESOURCES
The Company's construction-related expenditures totaled
$15.7 million during the first quarter of 1997, compared to $9.9
million for the same period in 1996. Approximately $2.9 million
of construction expenditures during the first quarter were
related to the construction of Unit No. 2 at the State Line Power
Plant, which is currently scheduled to be placed in service by
May 31, 1997. During the first quarter of 1997, approximately 75%
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.
The Company's construction expenditures are expected to
total approximately $55.3 million in 1997, including
approximately $22.2 million for additions to the Company's
distribution system to meet projected increases in customer
demand and approximately $11.9 million for the completion of Unit
No. 2 at the State Line Power Plant.
The Company currently estimates that internally generated
funds will provide at least 75% of the funds required for the
remainder of its 1997 construction expenditures. As in the past,
the Company intends to utilize short-term debt to finance the
additional amounts needed for such construction and to repay such
borrowings with internally generated funds and out of 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. The Company will continue to utilize short-term
debt as needed to support normal operations or other temporary
requirements.
<PAGE>
FORWARD LOOKING STATEMENTS
Certain matters discussed in this quarterly report are
"forward-looking statements" intended to qualify for the safe
harbors from liability established by the Private Securities
Litigation Reform Act of 1995. Such statements address future
plans, objectives, expectations and events or conditions
concerning various matters such as capital expenditures,
earnings, rate and other regulatory matters, liquidity and
capital resources, and accounting matters. Actual results in each
case could differ materially from those currently anticipated in
such statements, by reason of factors such as the cost and
availability of purchased power and fuel; the outcome of the
Company's pending electric rate case in Missouri; electric
utility restructuring, including ongoing state and federal
activities; future economic conditions; legislation; regulation;
competition; and other circumstances affecting anticipated rates,
revenues and costs.
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 24, 1997.
(b) The following persons were re-elected Directors of the
Company to serve until the 2000 Annual Meeting of
Stockholders:
R. D. Hammons (12,910,996 votes for; 205,779 withheld
authority).
J. R. Herschend (12,907,491 votes for; 209,284 withheld
authority).
M. W. McKinney (12,961,522 votes for; 155,253 withheld
authority).
M. M. Posner (12,954,521 votes for; 162,254 withheld
authority).
The term of office as Director of the following other
Directors continued after the meeting: V. E. Brill, M. F.
Chubb, Jr., R. C. Hartley, F. E. Jeffries, R. L. Lamb and
R. E. Mayes. No other matters were acted on by the
shareholders at the meeting.
Item 5. Other Information.
At March 31, 1997, the Company's ratio of earnings to fixed
charges, and ratio of earnings to fixed charges and preferred
stock dividend requirements, were 2.99x and 2.45x, 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 March 31, 1997.
(b) No reports on Form 8-K were filed during the first quarter
of 1997.
<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 9, 1997
EXHIBIT (12)
<TABLE>
<CAPTION>
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDEND
REQUIREMENTS
Twelve
Months Ended
March 31,
1997
<S> <C>
Income before provision for income taxes and $49,136,803
fixed charges (Note A)
Fixed charges:
Interest on first mortgage bonds $14,461,254
Amortization of debt discount and expense less 872,775
premium
Interest on short-term debt 623,279
Other interest 307,836
Rental expense representative of an interest 143,931
factor (Note B)
Total fixed charges 16,409,075
Preferred stock dividend requirements:
Preferred stock dividend requirements not 2,338,304
deductible for tax purposes
Ratio of income before provision for incomes 1.520
taxes to net income
Nondeductible dividend requirements 3,554,222
Deductible dividends 78,036
Total preferred stock dividend requirements 3,632,258
Total combined fixed charges and preferred stock $20,041,333
dividend requirements
Ratio of earnings to fixed charges 2.99x
Ratio of earnings to combined fixed charges and
preferred stock dividend requirements 2.45x
</TABLE>
<footnote>
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, 1997 AND THE STATEMENT OF INCOME AND THE STATEMENT OF CASH
FLOWS FOR THE TWELVE MONTHS ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 525,049,085
<OTHER-PROPERTY-AND-INVEST> 0
<TOTAL-CURRENT-ASSETS> 36,297,127
<TOTAL-DEFERRED-CHARGES> 41,987,223
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 603,333,435
<COMMON> 16,511,329
<CAPITAL-SURPLUS-PAID-IN> 146,742,812
<RETAINED-EARNINGS> 48,597,826
<TOTAL-COMMON-STOCKHOLDERS-EQ> 211,851,967
0
32,901,800
<LONG-TERM-DEBT-NET> 219,537,643
<SHORT-TERM-NOTES> 0
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