FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1994
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
IOWA-ILLINOIS GAS AND ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
Illinois 42-0673189
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
206 East Second Street, Davenport, Iowa 52801
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
(319) 326-7111
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 and 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 the
filing requirements for the past 90 days.
Yes X No ____
Common shares outstanding at March 31, 1994 29,344,012<PAGE>
<PAGE>
<TABLE>
Part I. Quarterly
Financial Information
IOWA-ILLINOIS GAS AND
ELECTRIC COMPANY
CONSOLIDATED STATEMENTS OF
INCOME
<CAPTION>
First Quarter Ended
March 31
1994 1993
(In thousands, except
per share amounts)
(Unaudited)
<S>
<C> <C>
OPERATING REVENUES
Electric
$84,608 $76,347
Gas
100,256 85,523
184,864 161,870
OPERATING EXPENSES AND TAXES
Operation-
Cost of gas sold
75,040 61,980
Cost for fuel, energy and capacity
20,174 14,662
Other operation
27,197 22,800
Maintenance
12,028 9,219
Provision for depreciation
15,383 14,469
Depreciation and equity funds
recovered under Louisa Phase-In Clause
- 1,185
Income taxes
6,935 7,957
Property and other taxes
9,303 9,286
166,060 141,558
OPERATING INCOME
18,804 20,312
OTHER INCOME
InterCoast Energy Company -
Oil and gas revenues
15,775 11,621
Other income
9,625 8,612
Expenses, including interest and
provision for income taxes
(21,692) (15,552)
Net income of InterCoast Energy Company
3,708 4,681
Allowance for equity funds
used during construction
176 -
Miscellaneous
332 (400)
4,216 4,281
INCOME BEFORE UTILITY INTEREST CHARGES
23,020 24,593
UTILITY INTEREST CHARGES
Interest on long-term debt
5,860 6,236
Other interest expense
285 395
Allowance for borrowed funds
used during construction
(215) (289)
5,930 6,342
NET INCOME
17,090 18,251
PREFERRED AND PREFERENCE
DIVIDEND REQUIREMENTS
1,203 1,253
NET INCOME ON COMMON SHARES
$15,887 $16,998
AVERAGE COMMON SHARES OUTSTANDING
29,349 29,329
NET INCOME PER AVERAGE
COMMON SHARE OUTSTANDING
$0.54 $0.58
CASH DIVIDENDS DECLARED AND
PAID PER COMMON SHARE
$0.4325 $0.4325
<FN>
The accompanying notes to consolidated
financial statements are an intergral part of t
-1-
</TABLE>
<PAGE>
<TABLE>
IOWA-ILLINOIS GAS AND
ELECTRIC COMPANY
CONSOLIDATED
BALANCE SHEETS
<CAPTION>
3-31-94 12-31-93
(In thousands,
<S>
<C> <C> <C> <C>
share amoun
PROPERTY AND OTHER ASSETS
(Unaudi
UTILITY PLANT, at original cost
Electric
$1,279,700 $1,279,700 ******** *********
Gas
273,847 271,342
1,553,547 1,551,042 *********
Less--Accumulated provision for depreciation
613,116 605,708
940,431 945,334
Nuclear fuel, net of accumulated amortization
26,109 25,120
Construction work in progress
29,381 22,791
995,921 993,245
CURRENT ASSETS
Cash and cash equivalents
15,964 17,844
Accounts receivable, less reserves of $1,269 and $1,165
44,105 43,389
Accrued unbilled revenues
20,925 22,182
Inventories
22,480 35,597
Deferred gas expense
8 5,794
Other
14,194 18,246
117,676 143,052
INVESTMENTS
InterCoast Energy Company
518,294 501,829
Nuclear decommissioning trust fund
42,527 39,470
Corporate-owned life insurance
12,353 12,836
573,174 554,135
OTHER ASSETS
Regulatory assets
94,454 92,828
Other
10,397 10,303
104,851 103,131
1,791,622 1,793,563 *********
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
COMMON SHAREHOLDERS' EQUITY
Common shares--authorized 80,000,000 shares--outstanding
29,344,012 and
29,352,173 shares stated at
280,009 280,009
Retained earnings
222,532 219,371
Other
3,005 32
505,546 499,412
PREFERRED SHARES--authorized 400,000 shares, cumulative
--outstanding 198,288 shares not subject to mandatory
redemption 19,829 19,829
PREFERENCE SHARES--authorized 2,386,250 shares, cumulative
--outstanding 500,000 shares subject to mandatory
redemption 50,000 50,000
LONG-TERM DEBT
First Mortgage Bonds
323,655 323,625
Pollution Control Obligations
48,277 48,275
InterCoast Energy Company
255,000 242,500
626,932 614,400
TOTAL CAPITALIZATION
1,202,307 1,183,641 *********
CURRENT LIABILITIES
Notes payable
23,000 31,000
Debt redeemable within one year
59,232 59,232
Accounts payable
27,258 44,847
Accrued taxes
28,339 24,913
Accrued interest
9,789 11,413
Accrued gas expense
21,781 11,745
Other
6,112 18,322
175,511 201,472
OTHER LIABILITIES
Capital lease obligations
9,913 10,036
Accumulated provision for nuclear decommissioning
42,527 39,470
Other
44,505 42,984
96,945 92,490
ACCUMULATED DEFERRED INCOME TAXES
276,044 274,605
ACCUMULATED DEFERRED INVESTMENT TAX CREDITS
40,815 41,355
$1,791,622 $1,793,563 ****** *********
<FN>
The accompanying notes to consolidated financial statements
are an integral part of these statem
- - -2-
</TABLE>
<PAGE>
<TABLE>
IOWA-ILLINOIS GAS AND ELECTRIC
COMPANY
CONSOLIDATED STATEMENTS OF
CASH FLOWS
<CAPTION>
Three Months Ended
March 31
1994 1993
(In thousands)
(Unaudited)
<S>
<C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$17,090 $18,251
Adjustments to reconcile net income
to net cash from operating activities -
Depreciation
16,382 15,728
Depletion
4,272 2,993
Depreciation and equity funds recovered under
Louisa Phase-In Clause
- - - 1,185
Nuclear fuel amortization
2,213 2,589
Deferred income taxes, net
(543) 1,194
Tax credits, net
(540) (563)
Net gain on disposition of securities
(528) (1,620)
Allowance for equity funds used during constr
(176) - -
Changes in current assets and liabilities
Accounts receivable
(716) 2,100
Accrued unbilled revenues
1,257 2,455
Inventories
13,117 15,330
Deferred and accrued gas expense
15,822 11,396
Accounts payable
(17,688) 1,062
Accrued taxes
3,426 2,574
Other current assets and liabilities
(9,767) (13,943)
Energy-efficiency program cost deferrals, net
(1,993) (1,511)
Other
(1,459) (2,241)
Net cash from operating activities
40,169 56,979
CASH FLOWS FROM INVESTING ACTIVITIES
Utility plant expenditures
(14,852) (14,666)
Nuclear fuel expenditures
(3,202) (5,582)
Allowance for equity funds used during construction
176 - -
Nuclear decommissioning trust fund
(2,186) (1,960)
Oil and gas investments
(4,641) (7,267)
Purchase of investments
(19,725) (35,301)
Sale of investments
9,958 21,947
Other
1,893 570
Net cash from investing activities
(32,579) (42,259)
CASH FLOWS FROM FINANCING ACTIVITIES
Long-term debt issued
- - - 75,865
Long-term borrowings of InterCoast Energy Company -
Increase in unsecured revolving credit facility
12,500 4,500
Decrease in short-term borrowings
(8,000) (22,500)
Dividends paid
(13,940) (11,706)
Issuance expense
(30) (508)
Net cash from financing activities
(9,470) 45,651
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
(1,880) 60,371
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
17,844 20,827
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$15,964 $81,198
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the periods for -
Interest (net of amounts capitalized)
$13,795 $13,875
Income taxes
15 7
<FN>
The accompanying notes to consolidated financial
statements are an integral part of t
-3-
</TABLE>
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(a) The condensed consolidated financial statements
included herein have been prepared by the Company pursuant to the
rules and regulations of the Securities and Exchange Commission.
The statements reflect all adjustments which are, in the
Company's opinion, necessary for a fair statement of the results
for the periods presented. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have
been condensed or omitted pursuant to such rules and regulations.
However, the Company believes that the disclosures are adequate
to make the information presented not misleading. Certain 1993
amounts have been reclassified to conform to the current year
presentation. It is suggested that these condensed consolidated
financial statements be read in conjunction with the consolidated
financial statements and the notes thereto incorporated by
reference in the latest annual report on Form 10-K.
(b) On May 3, 1993, the Company filed revised electric
rates with the Iowa Utilities Board (IUB) designed to increase
annual electric revenues by approximately $13.5 million (7.5%)
and to provide for any increase in the federal corporate income
tax rate ultimately enacted. A temporary annual rate increase of
$6.8 million (3.8%) was implemented July 26, 1993. Final rates
at the $6.8 million increase level became effective April 15,
1994.
(c) In April 1992, the Federal Energy Regulatory Commission
(FERC) issued Order No. 636, directing a restructuring by
interstate pipeline companies for their natural gas sales and
transportation services. The FERC Order contemplated that
transitional gas supply realignment costs related to this
restructuring may be billed by interstate pipelines to their
customers. The amount of transition costs which the FERC may
ultimately authorize the pipelines to bill the Company is
estimated to be $35 to $50 million. The Illinois Commerce
Commission has allowed the Company to include provisions for such
costs in its customer billings. Two intervenors have sought
rehearing. Provisions for such costs are also being included in
customer billings in Iowa.
(d) The allowance for funds used during construction
(AFUDC) includes the costs of equity and borrowed funds used to
finance construction which are capitalized in accordance with
rules prescribed by the Federal Energy Regulatory Commission
(FERC). The FERC's Uniform System of Accounts defines AFUDC as
the net cost of borrowed funds used for construction and a
reasonable rate to reflect the costs of other funds so used.
In the first three months of 1994 and 1993, AFUDC rates were 6.2%
and 3.5%, respectively, compounded semi-annually. Under FERC
rules, if average short-term debt outstanding exceeds
construction work in progress (CWIP), all CWIP is assumed to have
been financed with short-term debt. This was the condition in
1993. While currently capitalized AFUDC does not represent a
current source of cash, it does represent a basis for future
sources of cash through the inclusion in rates of depreciation
charges and allowance for returns on investment.
(e) On January 1, 1994, the Company adopted Statement of
Financial Standards No. 115, Accounting for Certain Investments
in Debt and Equity Securities (SFAS 115). Under this statement,
InterCoast Energy Company (InterCoast), the Company's wholly
owned non-regulated subsidiary, investments in debt and
marketable equity securities are reported at fair value with net
unrealized gains and losses reported as a net of tax amount in a
separate component of shareholders' equity until realized. The
adoption of SFAS 115 did not have a material effect on financial
position or results of operations.
(f) The Company is investigating five properties currently
owned by the Company which were, at one time, sites of gas
manufacturing plants. The purpose of these investigations is to
determine whether waste materials are present, whether such
materials constitute an environmental or health risk, and whether
the Company has any responsibility for remedial action. One site
is located in Illinois and four sites are located in Iowa. With
regard to the Illinois property, the Company has signed a working
agreement with the Illinois Environmental Protection Agency to
perform further investigation to determine whether waste
materials are present and, if so, whether such materials
constitute an environmental or health risk. At March 31, 1994,
an estimated liability of $3.3 million has been recorded for
litigation, investigation and remediation related to the Illinois
site. A regulatory asset has been recorded reflecting
anticipated cost recovery through rates in Illinois. With regard
to the Iowa sites, no agreement or consent order has been
negotiated to perform any site investigations or remediation.
The Company has recorded a $4 million estimated liability for the
Iowa sites. A regulatory asset has been recorded based on the
current regulatory treatment of comparable costs in Iowa. The
estimated recorded liabilities for these properties are based
upon preliminary data. Thus, actual costs could vary
significantly from the estimates. In addition, insurance
recoveries for some or all of the costs may be possible, but the
liabilities recorded have not been reduced by any estimate of
such recoveries. Although the timing of incurred costs,
recoveries and the inclusion of provision for such costs in rates
may affect the results of operations in individual periods,
management believes that the outcome of these issues will not
have a material adverse effect on the Company's financial
position or results of operations.
Clean Air Act legislation was signed into law in November
1990 and U.S. Environmental Protection Agency rulemaking
proceedings are underway. The Company has four jointly and one
wholly owned coal-fired generating stations which represent
approximately 65% of the Company's electric generating
capability. Each of these facilities will be impacted to varying
degrees by the legislation.
Only one unit at the wholly owned generating station,
representing approximately 10% of the Company's electric
generating capability, will be impacted by the emission reduction
requirements effective in 1995. Beginning in 1995, this unit
will be required to hold allowances, issued by the federal
government, in order to emit sulfur dioxide. The compliance
strategy for this unit includes modifications to allow for
burning low sulfur coal, modifications for nitrogen oxide control
and installation of a new emission monitoring system. The
Company's remaining construction expenditures relative to this
work are estimated to be $5.4 million.
The four generating stations not affected until 2000 already
burn low sulfur coal, so additional capital costs will not be
incurred for sulfur dioxide emission reduction requirements.
Beginning in 2000, these stations will be required to hold
allowances, issued by the federal government, in order to emit
sulfur dioxide. Installation of low nitrogen oxide burners is
required at one of these facilities and existing emission
monitoring systems at all four facilities will require upgrading.
The Company's remaining construction cost for this work is
estimated to be $2.1 million.
It is anticipated that any costs incurred by the Company to
comply with the Clean Air Act legislation would be included in
the cost of service on which the Company's rates for utility
service are based.
(g) Expenses of InterCoast include interest expense as
follows:
March 31
1994 1993
Three Months Ended. . . .$ 6,241,000 $ 5,924,000
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
RESULTS OF OPERATIONS
Operating Revenues
Electric revenues increased in the first quarter of 1994
compared to the first quarter of 1993 primarily due to increased
sales for resale and increased revenues reflecting higher rates.
A temporary annual electric rate increase in Iowa of $6.8
million was implemented July 26, 1993. Final rates at the $6.8
million increase level became effective April 15, 1994.
On July 28, 1993, an annual electric rate increase in
Illinois of $9.6 million became effective following Illinois
Commerce Commission (ICC) approval. On January 15, 1994, an
additional electric increase of $230,000 related to the increase
in the federal corporate income tax rate became effective on
rehearing. Also on rehearing, the ICC approved a rate rider
which permits the Company to recover costs of investigation,
remediation and litigation relating to former manufactured gas
plant sites. In addition, on January 1, 1994, nuclear
decommissioning costs included in customer billings through a
rate rider were increased by $1.2 million annually. Increased
revenues collected through rate riders relating to former
manufactured gas plant sites and nuclear decommissioning will not
affect net income due to a corresponding increase in costs. The
previously mentioned rate increases were partially offset by a
$1.5 million decrease in revenues for the first quarter of 1994
reflecting the expiration of the Company's Louisa Phase-In Clause
on June 30, 1993.
Revenues also increased in the first quarter of 1994
compared to the first quarter of 1993 due to increased fuel and
energy costs billings to retail customers. Variations in fuel
and energy cost billings reflect corresponding changes in fuel
and purchased energy costs and, thus, do not affect net income.
<PAGE>
The changes in electric revenues are shown below:
Revenue Increase (Decrease)
First Quarter 1994 to First Quarter 1993
(In thousands)
Change in Retail Fuel and Energy
Adjustment Clause Billings $ 1,700
Change in Sales for Resale 3,900
Change Due to the Effect of
Higher Rates 2,700
$ 8,300
Gas revenues increased in the first quarter of 1994 compared
to the first quarter of 1993. The principal factors contributing
to the increase were higher purchased gas cost billings,
increased sales volumes reflecting temperatures which were 5%
colder than the first quarter of 1993 (when measured by heating
degree days) and higher rates. Variations in purchased gas cost
billings reflect corresponding changes in cost of gas sold and,
thus, do not affect net income.
On July 28, 1993, an annual gas rate increase in Illinois of
$2 million became effective following ICC approval. On January
15, 1994, an additional gas increase of $49,000 related to the
increase in the federal corporate income tax rate became
effective on rehearing. As noted previously, also on rehearing,
the ICC approved a rate rider which permits the Company to
recover costs of investigation, remediation and litigation
relating to former manufactured gas plant sites.
<PAGE>
The changes in gas revenue are shown below:
Revenue Increase (Decrease)
First Quarter 1994 to First Quarter 1993
(In thousands)
Change in Purchased Gas
Adjustment Clause Billings $ 7,400
Change in Unit Sales 6,700
Change Due to the Effect of
Higher Rates 600
$14,700
Operation
Cost of gas sold increased in the first quarter of 1994
compared to the first quarter of 1993 primarily due to increased
purchased gas costs from suppliers and higher gas purchases in
the first quarter of 1994.
Changes in the cost of electric fuel, energy and capacity
reflect fluctuations in generation mix, fuel cost and energy and
capacity purchases. Increased fuel, energy and capacity costs in
the first quarter of 1994 compared to the first quarter of 1993
are primarily due to increased average unit fuel and energy costs
and increased total sales.
Other operation and maintenance increased in the first
quarter of 1994 compared to the first quarter of 1993 primarily
due to increased costs at the Quad-Cities Nuclear Power Station.
Depreciation and Equity Funds
Recovered Under Louisa Phase-In Clause
The decrease in the amount recovered under the Louisa Phase-
In Clause in the first quarter of 1994 compared to the first
quarter of 1993 reflects the expiration of the Louisa Phase-In
Clause on June 30, 1993.
Oil and Gas Revenues of InterCoast Energy Company
Oil and gas revenues of InterCoast increased in the first
quarter of 1994 compared to the first quarter of 1993 primarily
due to higher production volumes reflecting additional acquired
reserves and higher gas prices, partially offset by lower oil
prices.
Other Income of InterCoast Energy Company
Other income of InterCoast increased in the first quarter of
1994 compared to the first quarter of 1993 primarily due to
greater income from special purpose funds, partially offset by
decreased gains on the disposition of marketable securities.
Expenses of InterCoast Energy Company
Expenses of InterCoast increased in the first quarter of
1994 compared to the first quarter of 1993 primarily due to
greater oil and gas expenses.
Allowance for Funds Used During Construction
The increase in the total allowance for the first quarter of
1994 compared to first quarter of 1993 is primarily due to a
higher AFUDC rate, 6.2% compared to 3.5%. Under FERC rules, if
average short-term debt outstanding exceeds construction work in
progress (CWIP), all CWIP is assumed to have been financed with
short-term debt. This was the condition in 1993.
LIQUIDITY AND CAPITAL RESOURCES
The Company's current utility construction program forecast
calls for expenditures of $87.6 million in 1994. Approximately
65% of these expenditures are expected to be met from cash
generated from operations. The Company's utility capital
requirements for the years 1994-1998 include budgeted
construction expenditures of $319.6 million, expected
contributions to nuclear decommissioning trust funds of $45.7
million and maturities, sinking funds and redemptions related to
long-term debt of $98.2 million.
At March 31, 1994 and December 31, 1993, the Company had $23
million and $31 million, respectively, of outstanding short-term
commercial paper notes.
In April 1992, the FERC issued Order No. 636, directing a
restructuring by interstate pipeline companies for their natural
gas sales and transportation services. The FERC Order
contemplated that transitional gas supply realignment costs
related to this restructuring may be billed by interstate
pipelines to their customers. The amount of transition costs
which the FERC may ultimately authorize the pipelines to bill the
Company is estimated to be $35 to $50 million. The Company
expects to be allowed to include provisions for such costs in its
customer billings.
The Company is investigating five properties currently owned
by the Company which were, at one time, sites of gas
manufacturing plants. The purpose of these investigations is to
determine whether waste materials are present, whether such
materials constitute an environmental or health risk, and whether
the Company has any responsibility for remedial action. One site
is located in Illinois and four sites are located in Iowa. With
regard to the Illinois property, the Company has signed a working
agreement with the Illinois Environmental Protection Agency to
perform further investigation to determine whether waste
materials are present and, if so, whether such materials
constitute an environmental or health risk. At March 31, 1994,
an estimated liability of $3.3 million has been recorded for
litigation, investigation and remediation related to the Illinois
site. A regulatory asset has been recorded reflecting
anticipated cost recovery through rates in Illinois. With regard
to the Iowa sites, no agreement or consent order has been
negotiated to perform any site investigations or remediation.
The Company has recorded a $4 million estimated liability for the
Iowa sites. A regulatory asset has been recorded based on the
current regulatory treatment of comparable costs in Iowa. The
estimated recorded liabilities for these properties are based
upon preliminary data. Thus, actual costs could vary
significantly from the estimates. In addition, insurance
recoveries for some or all of the costs may be possible, but the
liabilities recorded have not been reduced by any estimate of
such recoveries. Although the timing of incurred costs,
recoveries and the inclusion of provision for such costs in rates
may affect the results of operations in individual periods,
management believes that the outcome of these issues will not
have a material adverse effect on the Company's financial
position or results of operations.
Clean Air Act legislation was signed into law in November
1990 and U.S. Environmental Protection Agency rulemaking
proceedings are underway. The Company has four jointly and one
wholly owned coal-fired generating stations which represent
approximately 65% of the Company's electric generating
capability. Each of these facilities will be impacted to varying
degrees by the legislation.
Only one unit at the wholly owned generating station,
representing approximately 10% of the Company's electric
generating capability, will be impacted by the emission reduction
requirements effective in 1995. Beginning in 1995, this unit
will be required to hold allowances, issued by the federal
government, in order to emit sulfur dioxide. The compliance
strategy for this unit includes modifications to allow for
burning low sulfur coal, modifications for nitrogen oxide control
and installation of a new emission monitoring system. The
Company's remaining construction expenditures relative to this
work are estimated to be $5.4 million.
The four generating stations not affected until 2000 already
burn low sulfur coal, so additional capital costs will not be
incurred for sulfur dioxide emission reduction requirements.
Beginning in 2000, these stations will be required to hold
allowances, issued by the federal government, in order to emit
sulfur dioxide. Installation of low nitrogen oxide burners is
required at one of these facilities and existing emission
monitoring systems at all four facilities will require upgrading.
The Company's remaining construction cost for this work is
estimated to be $2.1 million.
It is anticipated that any costs incurred by the Company to
comply with the Clean Air Act legislation would be included in
the cost of service on which the Company's rates for utility
service are based.
The forecasted 1994 capital expenditures for InterCoast are
approximately $82.6 million. Actual expenditures are dependent
on overall InterCoast performance and general market conditions.
InterCoast's aggregate amounts of maturities and cash
sinking fund requirements for long-term debt outstanding at March
31, 1994 are $59 million for 1994 and $269 million for the years
1994-1998. Amounts due in 1994 are expected to be refinanced
with debt instruments and operating cash flow.
In January 1994, InterCoast renegotiated its unsecured
revolving credit facility agreement. The renegotiation increased
the amount of capital available from $65 million to $110 million.
The amended credit agreement matures February 14, 1996.
Borrowings under this agreement may be on a fixed rate, floating
rate or competitive bid rate basis. All such borrowings are
without recourse to the parent Company. Borrowings at March 31,
1994 were $57 million at a weighted average interest cost of
4.3%.
<PAGE>
Part II - Other Information
Item 5. Other Events
Rate Matters
See Note (b) to the Consolidated Financial Statements
contained in Part I of this Form 10-Q for a discussion of an Iowa
electric rate filing.
Federal Gas Transition Costs
See Note (c) to the Consolidated Financial Statements
contained in Part I of this Form 10-Q for a discussion of federal
gas transition costs related to Federal Energy Regulatory
Commission Order No. 636.
Environmental Matters
See Note (f) to the Consolidated Financial Statements
contained in Part I of this Form 10-Q for a discussion related to
manufactured gas plant sites and Clean Air Act legislation.
Common Shares
On April 22, 1994, the Company filed a Registration
Statement for its new Dividend Reinvestment and Share Purchase
Plan. This Plan provides for the issuance of new shares with
dividends reinvested and with optional cash investments by
shareholders, effective with the June 1, 1994 dividend. The
additional cash obtained is expected to be used to fund current
and future utility construction expenditures. Previously, shares
for the Company's Dividend Reinvestment Plan were purchased on
the open market.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit
No. Description of Document
23.A Consent of Deloitte & Touche
23.B Consent of Arthur Andersen & Co.
(b) Reports on Form 8-K - None <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.
Iowa-Illinois Gas and Electric Company
(Registrant)
Date: April 29, 1994 By /s/ L. E. Cooper
L. E. Cooper
Vice President-Finance
(Chief Financial Officer)
Date: April 29, 1994 By /s/ K. M. Giger
K. M. Giger
Secretary and Treasurer
CONSENT OF INDEPENDENT AUDITORS
Iowa-Illinois Gas and Electric Company:
We consent to the incorportion by reference in Registration
Statement No. 33-23081 on Form S-8 and Registration Statement No.
33-20329 on Form S-8 of our reports dated January 26, 1994,
appearing in and incorporated by reference in this Annual Report
on Form 10-K of Iowa-Illinois Gas and Electric Company for the
year ended December 31, 1993.
/s/DELOITTE & TOUCHE
DELOITTE & TOUCHE
Davenport, Iowa
March 24, 1994
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the
incorporation by reference in Registration Statement No. 33-23081
on Form S-8 and Registration Statement No. 33-20329 on Form S-8
of our reports dated January 28, 1993, covering the consolidated
balance sheet and statement of capitalization of Iowa-Illinois
Gas and Electric Company and Subsidiary Company as of December
31, 1992, and the related statements of income, retained earnings
and cash flows for each of the two years in the period ended
December 31, 1992, and the financial statement schedules listed
in Item 14(a)(2) as of December 31, 1992, and for the two years
then ended, included in the Company's Form 10-K for the year
ended December 31, 1993, (Commission file number 1-3573). It
should be noted that we have not audited any financial statements
of the Company subsequent to December 31, 1992, or performed any
audit procedures subsequent to the date of our report.
/s/ARTHUR ANDERSEN & CO.
ARTHUR ANDERSEN & CO.
Chicago, Illinois
March 23, 1994
