SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: MARCH 31, 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 0-1125
MADISON GAS AND ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
Wisconsin 39-0444025
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
133 South Blair Street, Madison, Wisconsin 53701-1231
(Address of principal executive offices and zip code)
(608) 252-7000
(Registrant's telephone number including area code)
Common Stock outstanding at May 12, 1995: 10,719,812 shares
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, and (2) has been subject to
such filing requirements for the past 90 days. Yes [X] No [ ]
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Madison Gas and Electric Company and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED INCOME
(Thousands of Dollars)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1995 1994
<S> <C> <C>
STATEMENTS OF INCOME
Operating Revenues:
Electric . . . . . . . . . . . . . . . . . . . . . $34,612 $35,262
Gas . . . . . . . . . . . . . . . . . . . . . . . 39,840 46,871
Total Operating Revenues . . . . . . . . . . . . 74,452 82,133
Operating Expenses:
Fuel for electric generation . . . . . . . . . . . 6,017 6,678
Purchased power . . . . . . . . . . . . . . . . . 1,862 1,666
Natural gas purchased . . . . . . . . . . . . . . 25,939 31,178
Other operations . . . . . . . . . . . . . . . . . 14,911 14,512
Maintenance . . . . . . . . . . . . . . . . . . . 2,598 2,735
Depreciation and amortization . . . . . . . . . . 6,244 5,602
Other general taxes . . . . . . . . . . . . . . . 2,216 2,315
Income tax items . . . . . . . . . . . . . . . . . 4,536 5,793
Total Operating Expenses . . . . . . . . . . . . 64,323 70,479
Net Operating Income . . . . . . . . . . . . . . . . 10,129 11,654
Allowance for funds used during construction - equity
funds . . . . . . . . . . . . . . . . . . . . . . . . 22 34
Other income, net . . . . . . . . . . . . . . . . . . 1,441 551
Income before interest expense . . . . . . . . . . . 11,592 12,239
Interest expense:
Interest on long-term debt . . . . . . . . . . . . 2,589 2,620
Other interest . . . . . . . . . . . . . . . . . . 387 113
Allowance for funds used during construction -
borrowed funds . . . . . . . . . . . . . . . . . . (11) (19)
Net Interest Expense . . . . . . . . . . . . . . 2,965 2,714
Net Income . . . . . . . . . . . . . . . . . . . . . 8,627 9,525
Preferred stock dividends (Note 4a) . . . . . . . . . 64 120
Earnings on common stock . . . . . . . . . . . . . . $8,563 $9,405
Earnings per share of common stock (Note 3) . . . . . $0.80 $0.88
STATEMENTS OF RETAINED INCOME
Balance - beginning of period . . . . . . . . . . . . $77,359 $72,865
Earnings on common stock . . . . . . . . . . . . . . 8,563 9,405
Cash dividends on common stock (Note 3) . . . . . . . (5,039) (4,985)
Balance - end of period . . . . . . . . . . . . . . . $80,883 $77,285
<FN>
The accompanying notes are an integral part of the above statements.
</FN>
</TABLE>
<PAGE>
Madison Gas and Electric Company and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOW
(Thousands of Dollars)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1995 1994
<S> <C> <C>
Operating Activities:
Net income . . . . . . . . . . . . . . . . . . . . $8,627 $9,525
Items not affecting working capital:
Depreciation and amortization . . . . . . . . . 6,244 5,602
Deferred income taxes . . . . . . . . . . . . . (58) 551
Amortization of nuclear fuel . . . . . . . . . . 774 628
Amortization of investment tax credits . . . . . (197) (191)
Allowance for funds used during construction - (22) (34)
equity funds . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . 512 (13)
Net funds provided from operations . . . . . 15,880 16,068
Changes in working capital, excluding cash
equivalents, sinking funds,
maturities, and interim loans:
Decrease in current assets . . . . . . . . . . . 6,535 8,615
Increase in current liabilities . . . . . . . . 2,945 3,985
Other noncurrent items, net . . . . . . . . . . . 2,285 5,381
Cash provided by Operating Activities . . . . . 27,645 34,049
Financing Activities:
Acquisition of nonregulated subsidiary . . . . . (8,036) -
Cash dividends on common and preferred stock . . . (5,103) (5,105)
Other increases/(decreases) in First Mortgage
Bonds . . . . . . . . . . . . . . . . . . . (171) 3
Decrease in preferred stock . . . . . . . . . . . (5,300) -
Decrease in bond - construction funds, net . . . . 1,759 3,434
Decrease in interim loans . . . . . . . . . . . . (13,600) (23,500)
Cash used for Financing Activities . . . . . . . (30,451) (25,168)
Investing Activities:
Additions to utility plant and nuclear fuel . . . (4,093) (3,674)
Allowance for funds used during construction -
borrowed funds . . . . . . . . . . . . . . . . . . (11) (19)
Increase in decommissioning fund . . . . . . . . . (893) (526)
Cash used for Investing Activities . . . . . . . (4,997) (4,219)
Change in Cash and Cash Equivalents (Note 5) . . . . (7,803) 4,662
Beginning of period . . . . . . . . . . . . . . . 11,534 4,178
Cash and cash equivalents at end of period . . . $3,731 $8,840
<FN>
The accompanying notes are an integral part of the above statements.
</FN>
</TABLE>
<PAGE>
Madison Gas and Electric Company and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Thousands of Dollars)
(Unaudited)
<TABLE>
<CAPTION>
Mar. 31, Dec. 31,
1995 1994
<S> <C> <C>
ASSETS
Utility Plant, at original cost, in service:
Electric . . . . . . . . . . . . . . . . . . . . . $482,861 $479,346
Gas . . . . . . . . . . . . . . . . . . . . . . . 169,224 167,710
Gross plant in service . . . . . . . . . . . . . 652,085 647,056
Less accumulated provision for depreciation . . . (329,003) (323,511)
Net plant in service . . . . . . . . . . . . . . 323,082 323,545
Construction work in progress . . . . . . . . . . 9,864 11,920
Nuclear decommissioning fund (Note 2) . . . . . . 28,708 27,815
Nuclear fuel, net . . . . . . . . . . . . . . . . 7,769 8,386
Total Utility Plant . . . . . . . . . . . . . . 369,423 371,666
Other property and investments (Note 6) . . . . . . . 18,103 9,843
Current Assets:
Cash and cash equivalents . . . . . . . . . . . . 3,731 11,534
Accounts receivable, less reserves of $944
and $921, respectively . . . . . . . . . . . . . . 29,338 25,998
Unbilled revenue . . . . . . . . . . . . . . . . . 7,885 10,411
Materials and supplies, at average cost . . . . . 6,477 6,424
Fossil fuel, at average cost . . . . . . . . . . . 2,783 2,130
Stored natural gas, at average cost . . . . . . . 2,446 8,551
Prepaid taxes . . . . . . . . . . . . . . . . . . 4,415 5,838
Other prepayments . . . . . . . . . . . . . . . . 929 1,456
Total Current Assets . . . . . . . . . . . . . . 58,004 72,342
Deferred charges . . . . . . . . . . . . . . . . . . 31,638 33,908
Total Assets . . . . . . . . . . . . . . . . $477,168 $487,759
CAPITALIZATION AND LIABILITIES
Capitalization (see statement) . . . . . . . . . . . $325,556 $325,389
Current Liabilities:
Preferred stock sinking fund requirements . . . . - 200
Long-term debt sinking fund requirements (Note 4b). 275 430
Interim loans - commercial paper outstanding . . . 15,000 28,600
Accounts payable . . . . . . . . . . . . . . . . . 12,716 18,360
Accrued taxes . . . . . . . . . . . . . . . . . . 4,718 1,143
Accrued interest . . . . . . . . . . . . . . . . . 3,992 2,803
Other . . . . . . . . . . . . . . . . . . . . . . 8,146 4,327
Total Current Liabilities . . . . . . . . . . . 44,847 55,863
Other Credits:
Accumulated deferred income taxes . . . . . . . . 56,718 56,595
Regulatory liability . . . . . . . . . . . . . . . 25,023 25,204
Investment tax credit - deferred . . . . . . . . . 12,807 12,998
Other . . . . . . . . . . . . . . . . . . . . . . 12,217 11,710
Total Other Credits . . . . . . . . . . . . . . 106,765 106,507
Commitments . . . . . . . . . . . . . . . . . . . . . - -
Total Capitalization and Liabilities . . . . $477,168 $487,759
<FN>
The accompanying notes are an integral part of the balance sheets.
</FN>
</TABLE>
<PAGE>
Madison Gas and Electric Company and Subsidiaries
CONSOLIDATED STATEMENTS OF CAPITALIZATION
(Thousands of Dollars)
(Unaudited)
<TABLE>
<CAPTION>
Mar. 31, Dec. 31,
1995 1994
<S> <C> <C>
Common Shareholders' Equity:
Common stock - par value $8 per share:
Authorized 28,000,000 shares
Outstanding 10,719,812 shares . . . . . . . . . $85,758 $85,758
Amount received in excess of par value . . . . . . 26,372 26,372
Retained income . . . . . . . . . . . . . . . . . 80,883 77,359
Total Common Shareholders' Equity . . . . . . . 193,013 189,489
Redeemable Preferred Stock cumulative, $25 par value,
authorized 1,175,000 and 1,191,000 shares,
respectively (Note 4a)
Series E, 8.70%, 0 and 212,000 shares outstanding,
respectively, less current sinking fund requirements
of 0 and $200, respectively . . . . . . . . . . . - 5,100
First Mortgage Bonds:
5.45%, 1996 series . . . . . . . . . . . . . . . . 7,920 7,920
7 3/4%, 2001 series . . . . . . . . . . . . . . . 11,302 11,478
6 1/2%, 2006 series:
Pollution Control Revenue Bonds,
principal amount $8,775 and $8,780, respectively,
less construction
fund of $1,638 and $1,618, respectively . . . . 7,137 7,162
8.50%, 2022 series . . . . . . . . . . . . . . . . 40,000 40,000
6.75%, 2027A series:
Industrial Development Revenue Bonds,
principal amount $28,000, less construction fund
of $4,693 and $6,472, respectively . . . . . . . 23,307 21,528
6.70%, 2027B series:
Industrial Development Revenue Bonds . . . . . . 19,300 19,300
7.70%, 2028 series . . . . . . . . . . . . . . . . 25,000 25,000
First Mortgage Bonds Outstanding . . . . . . . . 133,966 132,388
Unamortized discount and premium on bonds, net . . (1,148) (1,158)
Long-term debt sinking fund requirements (Note 4b). (275) (430)
Total First Mortgage Bonds . . . . . . . . . . . 132,543 130,800
Total Capitalization . . . . . . . . . . . . $325,556 $325,389
<FN>
The accompanying notes are an integral part of the above statements.
</FN>
</TABLE>
<PAGE>
Notes to Consolidated Financial Statements (Unaudited)
March 31, 1995
The consolidated financial statements included herein have been
prepared by the Company, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. 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, although the Company
believes that the disclosures made are adequate to make the
information presented not misleading. In the opinion of Company
management, all adjustments (consisting of only normal recurring
adjustments) necessary to fairly present results have been made.
It is suggested that these consolidated financial statements be
read in conjunction with the financial statements and the notes
thereto set forth on pages 20 through 25 of the Company's 1994
Annual Report to Shareholders and in the Company's 1994 Annual
Report on Form 10-K.
1. Summary of Significant Accounting Policies
The accounting and financial policies relative to the
following items have been described in the "Notes to
Consolidated Financial Statements" in the Company's 1994
Annual Report to Shareholders and have been omitted herein
because they have not changed materially through the date of
this report.
a. Basis of consolidation
b. Revenue recognition
c. Utility plant
d. Nuclear fuel
e. Joint plant ownership
f. Cash and cash equivalents
g. Depreciation
h. Income taxes
i. Accounts receivable
j. Pension plans
k. Postretirement benefits other than pensions
l. Fair value of financial instruments
m. Capitalization matters: common stock, notes payable to
banks, commercial paper, and lines of credit
n. Rate matters
o. Commitments
p. Segments of business
2. Nuclear Decommissioning
Nuclear decommissioning costs are accrued over the estimated
service life of the Kewaunee Nuclear Power Plant (Kewaunee),
which is through the year 2013. These costs are currently
recovered from customers in rates and are deposited in
external trusts. For 1995, the decommissioning costs
recovered in rates will be $3.1 million. These trusts are
shown on the balance sheet in the utility plant section, and
as of March 31, 1995, these trusts totaled $28.7 million.
<PAGE>
Decommissioning costs are recovered through depreciation
expense, exclusive of earnings on the trusts. Net earnings on
the trusts are included in other income. The long-term,
after-tax earnings assumption on these trusts is 6.2 percent.
As of March 31, 1995, the accumulated provision for
depreciation included accumulated provisions for
decommissioning totaling $28.7 million.
The Company's share of Kewaunee decommissioning costs is
estimated to be $64.3 million in current dollars based on a
site-specific study performed in 1992 using immediate
dismantlement as the method of decommissioning.
Decommissioning costs are assumed to inflate at an average
rate of 6.1 percent. Physical decommissioning is expected to
occur during the period 2014 through 2021, with additional
expenditures being incurred during the period 2022 through
2050 related to the storage of spent nuclear fuel at the site.
3. Per-Share Amounts
Earnings per share of common stock are computed on the basis
of the weighted average of the daily number of shares
outstanding. For the three months ended March 31, 1995 and
1994, there were 10,719,812 shares.
Dividends declared and paid per share of common stock for the
three months ended March 31, 1995 and 1994, were $0.47 and
$0.465, respectively.
4. Capitalization Matters
a. Redeemable preferred stock.
On February 21, 1995, the Company retired 16,000 Series E
shares for $400,000 in satisfying its annual sinking fund
retirement obligation. The Company repurchased all
remaining shares outstanding of its Series E, 8.70%,
preferred stock on the same day. The total amount of
approximately $5.5 million was financed with short-term
borrowings.
b. First Mortgage Bonds.
The annual sinking fund requirements of the outstanding
First Mortgage Bonds are $430,000 in 1995. As of March 31,
1995, $275,000 is still needed to satisfy the 1995
requirements.
5. Supplemental Cash Flow Information
For purposes of the Consolidated Statements of Cash Flows, the
Company considers cash equivalents to be those investments
that are highly liquid with maturity dates of less than three
months.
<PAGE>
Cash payments for interest, net of amounts capitalized, and
income taxes were as follows:
Three Months Ended
March 31,
(Thousands of dollars) 1995 1994
Interest, net of amounts capitalized . . . $1,876 $1,551
Income taxes paid . . . . . . . . . . . $2,000 $625
6. Acquisition of Nonregulated Subsidiary
In January 1995, the Company purchased certain assets of
American Energy Management, Inc. (AEM), a national energy
marketing firm that provides gas marketing, energy management,
energy auditing, and conservation services to customers in ten
states. The acquisition has been accounted for as a purchase,
and the results of AEM have been included in the accompanying
consolidated financial statements since the date of
acquisition. Pro forma results are not presented as the
amounts do not significantly differ from historical results.
The costs of the acquisition have been allocated on the basis
of the estimated fair market value of the assets acquired and
the liabilities assumed. The resulting goodwill is being
amortized over 25 years. Additionally, the former owner has
an option to purchase 20 percent of AEM at any time prior to
the year 2000.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
The Company's internally generated funds were greater than the
funds used for construction and nuclear fuel expenditures during
the three months ended March 31, 1995 and 1994. It is
anticipated that 1995 construction and nuclear fuel expenditures
will be $25 million. The Company also expects to capitalize
about $2 million to $3 million of spending on conservation
programs with internally generated funds. Approximately
$4 million of the Company's electric construction program during
this period will be met with construction fund draw-downs.
During the first quarter of 1995, the Company was able to
purchase all of its outstanding 8.70%, Series E, preferred stock
and acquire AEM with internally generated cash.
Bank lines of credit available to the Company are currently $25
million.
The Company's capitalization ratios were as follows:
Mar. 31, Dec. 31,
1995 1994
Common shareholders' equity . . . 56.6% 53.4%
Redeemable preferred stock* . . . 0.0 1.5
Long-term debt* . . . . . . . . . 39.0 37.0
Short-term debt . . . . . . . . . 4.4 8.1
*Includes current maturities and current sinking fund
requirements.
The Company's bonds are currently rated Aa2 by Moody's Investors
Service, Inc., and AA by Standard & Poor's Corporation. The
Company's dealer-issued commercial paper carries the highest
ratings assigned by Moody's and Standard & Poor's.
<PAGE>
Results of Operations
Electric Sales and Revenues
Electric retail sales increased approximately 4 percent in the
three-month period ending March 31, 1995, over the comparable
period last year.
Three Months Ended
March 31,
Electric Sales %
(megawatt-hours) 1995 1994 Change
Residential . . . . . . . . 177,884 183,614 (3.1)%
Large commercial and
industrial* . . . . . . . . 220,526 223,740 (1.4)
Small commercial and
industrial . . . . . . . . . 159,126 161,840 (1.7)
Other* . . . . . . . . . . . 72,437 39,447 83.6
Total Retail . . . . . . 629,973 608,641 3.5
Resale . . . . . . . . . . . 10,808 24,614 (56.1)
Total Sales . . . . . . . 640,781 633,255 1.2
*The significant increase in other electric sales is due to a
shift in a major customer from the large commercial and
industrial class.
The increased sales were due, in part, to an increased customer
base of approximately 2 percent over the comparative three-month
period ended a year ago. Electric operating revenues for the
same period decreased approximately $0.7 million, or 1.8 percent.
The decrease in electric operating revenues was the result of the
Company's latest rate case, which decreased electric rates by
$5.1 million, or 3.3 percent.
<PAGE>
Gas Sales and Revenues
For the three months ended March 31, 1995, gas revenues decreased
about $7 million, or 15 percent, as compared to the same period
last year. The decrease is attributable mainly to a reduction of
gas delivered and a shift in a major customer from system rates
to transportation rates. Transport customers revenue is recorded
only as margin (revenue less cost of gas).
Three Months Ended
March 31,
Gas Deliveries %
(thousands of therms) 1995 1994 Change
Residential . . . . . . . . 38,184 42,623 (10.4)%
Commercial and industrial . 37,408 45,221 (17.3)
Total Retail . . . . . . 75,592 87,844 (13.9)
Transport . . . . . . . . . 7,125 1,317 *
Total Gas Deliveries . . 82,717 89,161 (7.2)
*Variance more than 100 percent.
The significant decrease in gas delivered was due to the warm
weather experienced in the first quarter of this year.
The average temperature for the three months ended March 31,
1995, was 26.9 degrees Fahrenheit as compared to 20.3 degrees
Fahrenheit for the same three months ended last year and to a
normal temperature of 24.4 degrees Fahrenheit. The first quarter
average temperature was 33 percent warmer than last year's first
quarter.
The gas customer base increased approximately 3 percent for the
three months ended March 31, 1995, when compared to the same time
period a year ago. This was aided by the expansion of the
Company's service territory into western Wisconsin.
The Company actively manages contracts with natural gas suppliers
to assure that adequate supplies of gas will be available to meet
the long-term needs of its customers.
Electric Fuel and Natural Gas Costs
Fuel cost for electric generation decreased approximately
10 percent for the first three months of 1995 when compared to
the same time period in 1994. This is due to increased
generation at Kewaunee, which has the least expensive cost of
fuel.
Purchased power costs increased $0.2 million for the three months
ended March 31, 1995, compared to the same time period in 1994.
This was due to a 4 percent increase in megawatt-hour purchases
and a slight increase in the cost per megawatt-hour.
<PAGE>
Natural gas costs for the three months ended March 31, 1995,
versus the 1994 comparative period decreased about $5 million, or
16.8 percent. This is due mainly to a lower demand resulting
from the warm weather experienced and a shift in a major customer
to transportation rates, as described earlier.
Other Operating Expenses
Income tax items decreased approximately $1 million, or
22 percent, for the first three months of 1995 when compared to
the same time period in 1994. This was mainly attributable to a
decrease in pretax operating income.
Depreciation expense increased $0.6 million, or 11.5 percent, for
the first three months of 1995 when compared to the same time
period in 1994. This is due to an increase in decommissioning
costs.
Other Items
Interest expense for the three months ended March 31, 1995,
increased approximately 9 percent when compared to the same time
period for 1994. This is due to higher levels of short-term debt
outstanding and higher interest rates in the first quarter of
1995 compared to the same period last year.
Other income for the three months ended March 31, 1995, increased
$0.9 million due to higher earnings experienced from the
Company's nonregulated business over last year's first quarter.
<PAGE>
PART II. OTHER INFORMATION
Item 5 Other Information
The Kewaunee Nuclear Power Plant of which the
Company has 17.8 percent ownership was taken out of
service for scheduled maintenance and refueling on
April 1, 1995, after having generated electricity
continuously for 327 days, a new plant record. It
is anticipated that Kewaunee will be returned to
service during the week of May 14, 1995.
The steam generator tubes at Kewaunee are
susceptible to corrosion characteristics seen
throughout the nuclear industry. During the current
outage, inspection of the steam generators revealed
higher levels of tube degradation than was
anticipated. Continued use of degraded tubes raises
concerns regarding primary-to-secondary leakage of
reactor coolant. Thus, degraded tubes are either
repaired by sleeving or are removed from service by
plugging. The steam generators were designed with
approximately 15 percent heat transfer margin,
meaning that full power should be sustainable with
the equivalent of 15 percent of the steam generator
tubes plugged. Tube plugging and the buildup of
deposits on the tubes affect the heat-transfer
capability of the steam generators to the point
where eventually full power operation is affected.
Prior to the current outage, the equivalent of
approximately 12 percent of the tubes in the steam
generators were plugged with no loss of capacity.
The new indications are in the parent tubes of
previously sleeved tubes in the area of the joint at
the upper end of the sleeves. While indications of
this type have been discovered in the past, the
number of indications detected during this outage
has increased. With all degraded tubes removed from
service, the steam generators will be approximately
22 percent plugged. This means that during the next
operating cycle the plant will operate at a reduced
power level of approximately 4 percent, which is a
reduction in capacity from 525 megawatts net plant
output to approximately 505 megawatts. The
continued safe operation of the plant will not be
impacted by the newly plugged tubes or the reduced
capacity level.
<PAGE>
Operation at this reduced power level should be
temporary. Cost-effective repair technologies are
available that will allow return of the tubes to
service as early as the next maintenance and
refueling shutdown, which is scheduled for the fall
of 1996. Several tube samples have been removed for
further structural and metallurgical examination in
an effort to determine the best repair method.
After repairs are undertaken, as few as 9 percent of
the tubes could remain plugged, thus allowing
resumption of full power operation. An accurate
estimate of the cost of recovering plugged tubes is
not available at this time.
Item 6 (a) Exhibits
Exh. No. Indenture of Mortgage and Deed of Trust between the
4 Company and Firstar Trust Company, as Trustee (and
supplements) reference was provided in the Company's
1994 Annual Report on Form 10-K (Commission File No.
0-1125).
Exh. No. Appendix E to Item 601(c) of Regulation S-K: Public
27 Utility Companies Financial Data Schedule UT.
Item 6 (b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter
for which this report is filed.
Item 12 Ratio of Earnings to Fixed Charges
Three Months
Ended
Mar. 31, 1995
Earnings:
Income before interest expense . . . . $11,592
Add:
Income tax items . . . . . . . . . . . 4,536
Income tax on other income . . . . . . 688
Amortization of debt discount, premium
expense . . . . . . . . . . . . . . . . 63
Allowance for funds used during
construction - borrowed funds . . . . . 11
Interest on rentals . . . . . . . . . . 70
Total Earnings . . . . . . . $16,960
Fixed Charges:
Interest on long-term debt . . . . . . $2,589
Other interest . . . . . . . . . . . . 387
Amortization of debt discount premium
expense . . . . . . . . . . . . . . . . 63
Interest on rentals . . . . . . . . . . 70
Total Fixed Charges . . . . . $3,109
Ratio of Earnings to Fixed Charges . . 5.46x
<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.
MADISON GAS AND ELECTRIC COMPANY
(Registrant)
Date: May 12, 1995 /s/ David C. Mebane
David C. Mebane
Chairman, President and Chief
Executive Officer
(Duly Authorized Officer)
Date: May 12, 1995 /s/ Joseph T. Krzos
Joseph T. Krzos
Vice President - Finance
(Chief Financial and Accounting
Officer)
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
This schedule contains summary financial information extracted
from SEC Form
10-Q. Items 1 through 22 are as of March 31, 1995. Items 23
through 38 are for
the three months end March 31, 1995.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> MAR-31-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 369,423
<OTHER-PROPERTY-AND-INVEST> 18,103
<TOTAL-CURRENT-ASSETS> 58,004
<TOTAL-DEFERRED-CHARGES> 31,638
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 477,168
<COMMON> 85,758
<CAPITAL-SURPLUS-PAID-IN> 26,372
<RETAINED-EARNINGS> 80,883
<TOTAL-COMMON-STOCKHOLDERS-EQ> 193,013
0
0
<LONG-TERM-DEBT-NET> 132,543
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 15,000
<LONG-TERM-DEBT-CURRENT-PORT> 275
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 136,337
<TOT-CAPITALIZATION-AND-LIAB> 477,168
<GROSS-OPERATING-REVENUE> 74,452
<INCOME-TAX-EXPENSE> 4,536
<OTHER-OPERATING-EXPENSES> 59,787
<TOTAL-OPERATING-EXPENSES> 64,323
<OPERATING-INCOME-LOSS> 10,129
<OTHER-INCOME-NET> 1,463
<INCOME-BEFORE-INTEREST-EXPEN> 11,592
<TOTAL-INTEREST-EXPENSE> 2,965
<NET-INCOME> 8,627
64
<EARNINGS-AVAILABLE-FOR-COMM> 8,563
<COMMON-STOCK-DIVIDENDS> (5,039)
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 27,645
<EPS-PRIMARY> .80
<EPS-DILUTED> 0
</TABLE>
