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: JUNE 30, 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 0-1125
MADISON GAS AND ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
Wisconsin 39-0444025
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
133 South Blair Street, Madison, Wisconsin 53703
(Address of principal executive offices and ZIP code)
(608) 252-7000
(Registrant's telephone number including area code)
Common Stock Outstanding at August 13, 1997: 16,079,718 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>
<TABLE>
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)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
STATEMENTS OF INCOME
Operating Revenues:
Electric $40,653 $35,996 $ 78,083 $ 72,074
Gas 12,599 14,378 60,081 58,355
Total Operating Revenues 53,252 50,374 138,164 130,429
Operating Expenses:
Fuel for electric generation 7,982 6,243 15,492 12,801
Purchased power 4,322 2,506 8,636 4,398
Natural gas purchased 6,261 7,767 39,436 37,335
Other operations 16,098 13,964 31,456 28,032
Maintenance 4,083 2,755 6,623 4,895
Depreciation and amortization 6,403 6,328 12,767 12,525
Other general taxes 2,233 2,203 4,447 4,448
Income tax items 1,129 2,293 5,215 7,934
Total Operating Expenses 48,511 44,059 124,072 112,368
Net Operating Income 4,741 6,315 14,092 18,061
AFUDC - equity funds 13 16 24 26
Other income, net 259 285 791 518
Nonutility operating
income/(loss), net 123 (1,026) 910 (2,938)
Income before interest expense 5,136 5,590 15,817 15,667
Interest expense:
Interest on long-term debt 2,416 2,480 4,820 4,996
Other interest 161 77 409 275
AFUDC - borrowed funds (7) (8) (13) (13)
Net Interest Expense 2,570 2,549 5,216 5,258
Net Income $2,566 $3,041 $ 10,601 $10,409
Earnings per share of common
stock (Note 3) $016 $019 $066 $065
STATEMENTS OF RETAINED INCOME
Balance - beginning of period $53,341 $66,774 $50,451 $64,499
Earnings on common stock 2,566 3,041 10,601 10,409
Cash dividends on common stock (Note 3) (5,146) (5,093) (10,291) (10,186)
Balance - end of period $50,761 $64,722 $50,761 $64,722
The accompanying notes are an integral part of the above statements.
</TABLE>
<PAGE>
<TABLE>
Madison Gas and Electric Company and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands of Dollars)
(Unaudited)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Operating Activities:
Net income $ 2,566 $3,041 $10,601 $10,409
Items not affecting working capial
Depreciation and amortization 6,403 6,328 12,767 12,525
Deferred income taxes (727) (672) (710) (1,699)
Amortization of nuclear fuel 98 723 98 1,478
Amortization of investment tax credits (187) (204) (378) (392)
AFUDC - equity (13) (16) (24) (26)
Other 294 188 474 (2,793)
Net funds provided from Operations 8,434 9,388 22,828 19,502
Changes in working capital,
excluding cash, sinking funds,
maturities, and interim loans:
(Increase)/decrease in current assets (74) 9,526 22,727 13,866
Decrease in current liabilities (2,688) (15,720) (16,500) (4,558)
Other noncurrent items, net (1,790) 4,634 5,306 9,819
Cash provided by Operating Activities 3,882 7,828 34,361 38,629
Financing Activities:
Cash dividends on common and preferred stock (5,145) (5,093) (10,291) (10,186)
Maturities/redemptions of First
Mortgage Bonds (3,800) (7,840) (3,800) (7,840)
Increases in long-term debt 5,000 - 5,000 -
Other decreases in First Mortgage Bonds 10 10 19 20
Increase/(decrease) in interim loans 5,000 14,000 (16,250) (6,500)
Cash provided by/(used for) Financing
Activities 1,065 1,077 (25,322) (24,506)
Investing Activities:
Sale of Superior Lamp, Inc. - 201 - 201
Additions to utility plant and nuclear fuel (5,910) (7,993) (9,227) (11,343)
AFUDC - borrowed funds (7) (8) (13) (13)
Increase in nuclear decommissioning fund (1,017) (1,176) (2,158) (2,252)
Cash used for Investing Activities (6,934) (8,976) (11,398) (13,407)
Change in Cash and Equivalents (1,987) (71) (2,359) 716
Cash and equivalents at beginning of period 4,916 3,631 5,288 2,844
Cash and equivalents at end of period $ 2,929 $3,560 $ 2,929 $ 3,560
The accompanying notes are an integral part of the above statements.
</TABLE>
<PAGE>
<TABLE>
Madison Gas and Electric Company and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Thousands of Dollars)
(Unaudited)
<CAPTION>
June 30, Dec. 31,
1997 1996
<S> <C> <C>
ASSETS
Utility Plant, at original cost, in service:
Electric $505,537 $500,690
Gas 180,731 178,312
Gross plant in service 686,268 679,002
Less accumulated provision for depreciation (391,053) (374,315)
Net plant in service 295,215 304,687
Construction work in progress 7,766 7,517
Nuclear decommissioning fund (Note 2) 51,425 44,617
Nuclear fuel, net 9,049 8,378
Total Utility Plant 363,455 365,199
Other property and investments 7,078 7,115
Current Assets:
Cash and cash equivalents 2,929 5,288
Accounts receivable, less reserves of $1,626
and $1,220, respectively 25,441 39,145
Unbilled revenue 6,742 13,852
Materials and supplies, at average cost 5,459 5,740
Fossil fuel, at average cost 2,955 1,808
Stored natural gas, at average cost 6,011 7,189
Prepaid taxes 5,960 7,258
Other prepayments 1,126 1,429
Total Current Assets 56,623 81,709
Deferred charges 25,219 30,146
Total Assets $452,375 $484,169
CAPITALIZATION AND LIABILITIES
Capitalization (see statement) $309,504 $307,975
Current Liabilities:
Long-term debt sinking fund requirements 200 200
Interim loans - commercial paper outstanding 13,500 29,750
Accounts payable 15,710 30,094
Accrued taxes (309) 79
Accrued interest 2,250 2,322
Accrued nonregulated items - 7,923
Other 13,920 7,653
Total Current Liabilities 45,271 78,021
Other Credits:
Deferred income taxes 46,308 46,972
Regulatory liability - SFAS 109 23,868 23,914
Investment tax credit - deferred 11,061 11,439
Other regulatory liabilities 16,363 15,848
Total Other Credits 97,600 98,173
Commitments - -
Total Capitalization and Liabilities $452,375 $484,169
The accompanying notes are an integral part of the above balance sheets.
</TABLE>
<PAGE>
<TABLE>
Madison Gas and Electric Company and Subsidiaries
CONSOLIDATED STATEMENTS OF CAPITALIZATION
(Thousands of Dollars)
(Unaudited)
<CAPTION>
June 30, Dec. 31,
1997 1996
<S> <C> <C>
Common Shareholders' Equity:
Common stock - par value $1 per share:
Authorized 50,000,000 shares
Outstanding 16,079,718 shares $ 16,080 $ 16,080
Amount received in excess of par value 112,558 112,558
Retained income 50,761 50,451
Total Common Shareholders' Equity 179,399 179,089
First Mortgage Bonds:
6 1/2%, 2006 series:
Pollution Control Revenue Bonds 6,875 6,875
8.50%, 2022 series 40,000 40,000
6.75%, 2027A series:
Industrial Development Revenue Bonds 28,000 28,000
6.70%, 2027B series:
Industrial Development Revenue Bonds 19,300 19,300
7.70%, 2028 series 21,200 25,000
First Mortgage Bonds Outstanding 115,375 119,175
Unamortized discount and premium on bonds, net (1,070) (1,089)
Long-term debt sinking fund requirements (200) (200)
Total First Mortgage Bonds 114,105 117,886
Other Long-Term Debt:
6.01%, due 2000 11,000 11,000
6.91%, due 2004 5,000 -
Total Capitalization $309,504 $307,975
The accompanying notes are an integral part of the above statements.
</TABLE>
<PAGE>
Notes to Consolidated Financial Statements (Unaudited)
June 30, 1997
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 (SEC). 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 14 through 19 of the Company's 1996 Annual Report to Shareholders and in
the Company's 1996 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 1996 Annual Report to Shareholders and have been
omitted herein because they have not changed materially through the date
of this report.
a. General
b. Utility plant
c. Nuclear fuel
d. Joint plant ownership
e. Depreciation
f. Income taxes
g. Pension plans
h. Postretirement benefits other than pensions
i. Fair value of financial instruments
j. Capitalization matters: preferred stock; and notes payable to
banks, commercial paper, and lines of credit
k. Gas marketing subsidiaries
l. GLENCO economic benefit
m. Commitments
n. Segments of business
o. Regulatory assets and liabilities
<PAGE>
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. The Company is presently
funding decommissioning costs at the $3.1 million level. A higher annual
amount was approved by the Public Service Commission of Wisconsin (PSCW)
in July 1997 to fully fund decommissioning costs by year end 2002. These
trusts are shown on the balance sheet in the utility plant section. As
of June 30, 1997, these trusts totaled $51.4 million (fair market
value).
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.
The Company's share of Kewaunee decommissioning costs is estimated to be
$72.8 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 and for the six months ended June 30, 1997 and 1996, there were
16,079,718 shares.
Dividends declared and paid per share of common stock for the periods
ended June 30, 1997 and 1996, were, respectively, for the three months
$0.320 and $0.317; for the six months $0.64 and $0.634.
4. Rate Matters
In July 1997, the PSCW issued its rate order that will increase electric
rates $4.9 million, or 3.1 percent, and gas rates $3.5 million, or 3.5
percent. These rates will remain in place until the next test year,
which is scheduled to begin January 1, 1999. The current rates are based
on a return on common stock equity of 12.0 percent. The proposed early
recovery of the Kewaunee investment and accelerated decommissioning
collections are the primary reasons for the increase in electric rates.
The Company received an interim rate order from the PSCW in March 1997.
The order provided for a 0.507 cent per kilowatt-hour surcharge on
customers' bills to cover the continuing costs that were incurred by the
Company while Kewaunee was out of service.
<PAGE>
On June 12, 1997, the repairs to Kewaunee were completed and Kewaunee
began its return to commercial operation. On June 25, 1997, Kewaunee
increased power to its maximum capability and started the agreed upon
seven-day window needed to perform the primary to secondary tests to
ensure final verification of the steam generation repairs. The surcharge
ceased on July 1, 1997.
Prior to the recently approved increases, rates for electric service had
not been increased since 1990 and were reduced in 1993 and 1994. Gas
rates had not been increased since 1989 and were reduced in 1990, 1992,
and 1993.
5. First Mortgage Bonds and Other Long-Term Debt
On April 18, 1997, the Company purchased on the open market $3.8 million
of its 7.70%, 2028 series, First Mortgage Bonds. The Company purchased
these bonds at a discount and later retired them.
On June 10, 1997, the Company entered into a fixed interest rate
agreement with a commercial bank in a principal amount of $5.0 million
at 6.91%, maturing on June 10, 2004.
6. Supplemental Cash Flow Information
For purposes of the Consolidated Statements of Cash Flow, the Company
considers cash equivalents to be those investments that are highly
liquid with maturity dates of less than three months.
Cash payments for interest, net of amounts capitalized, and income taxes
were as follows:
Three Months Ended Six Months Ended
June 30, June 30,
(Thousands of dollars) 1997 1996 1997 1996
Interest, net of
amounts capitalized $3,908 $4,078 $5,247 $5,338
Income taxes paid $7,422 $7,470 $7,166 $9,572
<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 for the six-month period ended
June 30, 1997. The Company experienced decreased additions to utility plant
and nuclear fuel expenditures during the first half of 1997 compared to 1996.
It is anticipated that 1997 construction and nuclear fuel expenditures will be
approximately $30.8 million.
Cash provided by operating activities decreased $4.3 million, or 11 percent,
during the first half of 1997 compared to 1996 due to a decrease in the
Company's working capital. Cash provided by operating activities during the
second quarter of 1997 decreased $3.9 million compared to last year's second
quarter. This is mainly attributable to the decrease in current liabilities
due to the timing of the Company's payables.
Bank lines of credit available to the Company as of June 30, 1997, were $45
million.
The Company's capitalization ratios were as follows:
June 30, Dec. 31,
1997 1996
Common shareholders' equity 55.5% 53.0%
Long-term debt* 40.3 38.2
Short-term debt 4.2 8.8
*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>
Business Environment
On May 1, 1995, Northern States Power Company (NSP) and Wisconsin Energy
Corporation (WEC) announced a proposed $6.0 billion merger. A company called
Primergy Corporation (Primergy) was formed as a result of the merger. On May
14, 1997, the Federal Energy Regulatory Commission (FERC) temporarily rejected
the merger, citing concerns over dominance in the Midwest power and
transmission markets. Studies showed Primergy could have significantly raised
prices for electric customers in Wisconsin by exercising anticompetitive
market power. The FERC stated that Primergy would be able to dominate the
eastern Wisconsin and upper Michigan power generation market. On May 16, 1997,
the Board of Directors from both NSP and WEC agreed to terminate their merger
agreement.
Regulatory Environment
In December 1995, the PSCW outlined its plan for the restructuring of the
electric utility industry in Wisconsin. The PSCW's plan generally followed a
plan proposed by the Company and a broad coalition of customers, public
interest groups, cooperative associations, municipal power entities, organized
labor, and others. Under the proposed PSCW plan, the Company is developing
plans illustrating how it intends to separate generation, transmission,
distribution, and energy services into separate business units. The PSCW would
continue distribution and transmission regulation. To limit the market power
of current transmission owners, the PSCW proposes moving either to appointment
of an independent system operator or to organization of a single statewide
transmission system. Additional proceedings and presentation to the state
legislature on the PSCW's electric utility restructuring proposal are planned
prior to the target implementation date.
In July 1997, the PSCW issued an order in the Company's rate case authorizing
the Company's proposed gas cost recovery mechanism that will allow recovery of
pipeline capacity, FERC-approved/mandated charges, and supply demand costs.
Under the new mechanism, gas commodity costs will be compared to a monthly
benchmark equal to the first of the month index plus adders reflecting the
effects on pricing for reliability, flexibility, weather, and variable
transportation costs. If actual costs are below the benchmark, full recovery
is allowed. Gas commodity costs above the benchmark will be reviewed by the
PSCW. A target will also be determined for capacity release. Capacity release
above the target will be shared 60 percent with ratepayers and 40 percent with
shareholders. Any shortfalls in capacity release will be shared 40 percent
with ratepayers and 60 percent with shareholders.
<PAGE>
Results of Operations
Electric Sales and Revenues
Electric retail sales increased approximately 2.3 percent for the six-month
period ended June 30, 1997, over the comparable period last year (see table).
<TABLE>
Electric Sales in Megawatt-Hours
<CAPTION>
Three Months Ended June 30, Six Months Ended June 30,
1997 1996 % Change 1997 1996 % Change
<S> <C> <C> <C> <C> <C> <C>
Residential 154,519 156,825 (1.47)% 343,423 350,245 (1.95)%
Large commercial and
industrial 242,723 233,358 4.01 473,533 457,270 3.56
Small commercial and
industrial 183,333 171,400 6.96 356,174 343,973 3.55
Other 77,130 82,712 (6.75) 164,199 155,958 5.28
Total retail 657,705 644,295 2.08 1,337,329 1,307,446 2.29
Sales for resale 14,268 5,704 150.14 19,852 14,863 33.57
Total sales 671,973 649,999 3.38 1,357,181 1,322,309 2.64
</TABLE>
Electric operating revenues increased about $6.0 million, or 8.3 percent, for
the first half of 1997 as compared to the same period in 1996. The increase
was due to an increase in the electric customer base and the 0.507 cent per
kilowatt-hour surcharge related to the extended outage of Kewaunee.
Electric operating revenues for the three-month period ended June 30, 1997,
increased $4.7 million, or 12.9 percent, as compared to last year's second
quarter. The increase in revenues is due to an increase in electric retail
sales of 2.1 percent for the same time periods, and the interim rate surcharge
related to the Kewaunee outage.
<PAGE>
Gas Sales and Revenues
For the six months ended June 30, 1997, gas operating revenues increased
$1.7 million, or 3 percent, compared with the same period in 1996. This
increase in revenues, despite a decrease in gas deliveries of 5.3 percent (see
table), is due primarily to higher-unit gas costs during the first quarter,
which were passed on to customers through the Purchased Gas Adjustment Clause
(PGAC).
For the three months ended June 30, 1997, gas revenues decreased $1.8 million,
or 12 percent, compared to last year. This can be partially attributed to the
relatively flat gas deliveries caused by the warmer weather in this year's
second quarter compared to last year's. Also, unit gas costs were much lower
for the second quarter of 1997 compared to last year's second quarter, and the
resulting savings in gas costs were passed on to customers through the PGAC.
The following table illustrates gas deliveries as compared to the previous
year:
<TABLE>
Gas Deliveries in Thousands of Therms
<CAPTION>
Three Months Ended June 30, Six Months Ended June 30,
1997 1996 % Change 1997 1996 % Change
<S> <C> <C> <C> <C> <C> <C>
Residential 13,723 14,321 (4.18)% 54,684 59,003 (7.3)%
Commercial and
Industrial 13,857 13,245 4.62 50,256 52,476 (4.2)
Total retail 27,580 27,566 0.05 104,940 111,479 (5.87)
Transport 9,752 10,127 (3.70) 19,094 19,436 (1.76)
Total deliveries 37,332 37,693 (0.96) 124,034 130,915 (5.26)
</TABLE>
Electric Fuel and Natural Gas Costs
Fuel costs for electric generation and purchased power increased 40.6 percent,
or $8.7 million, for the second quarter of 1997 compared to last year's second
quarter. This increase is attributed to the higher cost of replacement power
due to the extended outage at Kewaunee. The Company was granted a surcharge
March 6, 1997, to offset these higher costs. The surcharge ended July 1, 1997.
Fuel costs and purchased power increased 40.3 percent, or $6.9 million, for
the six months ended June 30, 1997, as compared to last year. Again, the
increase is due to the higher cost of replacement power due to the extended
outage at Kewaunee.
<PAGE>
Natural gas costs for the six-month period ended June 30, 1997, increased $2.1
million, or 5.6 percent, compared to the same period a year ago. This is due
mainly to the increase in the purchased gas cost per therm in the first three
months of 1997, offset by the decrease in the second quarter.
Natural gas costs for the three months ended June 30, 1997, versus the 1996
comparative period decreased 19.4 percent, or $1.5 million, due to a decrease
in the cost per therm of $0.06, or 19.6 percent.
Other Operating Expenses
Income taxes decreased for both the three- and six-month periods ended
June 30, 1997, compared to the same periods last year. For the three months
ended, income taxes decreased $1.2 million, or 50.8 percent, and for the six
months ended, income taxes decreased $2.7 million, or 34.3 percent. This is
mainly attributable to a decrease in pretax operating income.
Operations and maintenance costs increased $3.5 million, or 20.7 percent, for
the second quarter of 1997 and increased $5.2 million, or 15.6 percent, for
the first half of the year compared to the same periods a year ago. The
primary reasons for the increases are the costs due to the extended outage of
Kewaunee and costs associated with the regional electric power shortages.
Other Items
Non-utility operating income increased $1.1 million for the three months ended
June 30, 1997, and increased $3.8 million for the six months ended June 30,
1997, compared to last year. The Company's two gas marketing subsidiaries,
Great Lakes Energy Corp. and American Energy Management, Inc., formed a joint
venture effective January 1, 1997, with National Gas & Electric L.P. to market
natural gas and energy services to industrial and commercial customers in the
Great Lakes region. The joint venture is called National Energy Management,
L.L.C., and is based in Chicago.
The Company's non-utility operating income was $0.1 million for the three
months and $0.9 million for the six months ended June 30, 1997. For the same
periods a year ago, the Company's two gas marketing subsidiaries experienced
net operating losses of $1.0 million and $2.9 million, respectively.
<PAGE>
PART II. OTHER INFORMATION
Item 5 Other Information
Kewaunee began limited operation on June 12, 1997, after having been out
of service since September 21, 1996, for routine maintenance and repair
of steam generators. Kewaunee was considered fully returned to service
on July 2, 1997. Kewaunee is operated by Wisconsin Public Service
Corporation. The Company has a 17.8 percent ownership interest in
Kewaunee.
The most recent repair work involved resleeving a portion of the steam
generator tubes. The Company continues to assess the future alternatives
for Kewaunee ranging from replacing existing steam generators to early
plant closure with replacement power options.
Item 6(a) Exhibits
Exhibit 4 Indenture of Mortgage and Deed of Trust between the Company and
Firstar Trust Company, as Trustee (and supplements). Reference was
provided in the Company's 1996 Annual Report on Form 10-K
(Commission File No. 0-1125).
Exhibit 12 Ratio of Earnings to Fixed Charges
Exhibit 27 Appendix E to Item 601(c) of Regulation S-K: Public Utility
Companies Financial Data Schedule UT.
Exhibit Page
Exhibit 4 NA
Exhibit 12 16
Exhibit 27 17
Item 6(b) Reports on Form 8-K
No reports on 8-K were filed during the quarter for which this
report is filed.
<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: August 13, 1997 /s/ David C. Mebane
David C. Mebane
Chairman, President and Chief Executive Officer
(Duly Authorized Officer)
Date: August 13, 1997 /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 June 30, 1997. Items 23 through 38 are for
the six months ended June 30, 1997.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 363,455
<OTHER-PROPERTY-AND-INVEST> 7,078
<TOTAL-CURRENT-ASSETS> 56,623
<TOTAL-DEFERRED-CHARGES> 25,219
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 452,375
<COMMON> 16,080
<CAPITAL-SURPLUS-PAID-IN> 112,558
<RETAINED-EARNINGS> 50,761
<TOTAL-COMMON-STOCKHOLDERS-EQ> 179,399
0
0
<LONG-TERM-DEBT-NET> 130,105
<SHORT-TERM-NOTES> 13,500
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 200
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 129,171
<TOT-CAPITALIZATION-AND-LIAB> 452,375
<GROSS-OPERATING-REVENUE> 138,164
<INCOME-TAX-EXPENSE> 5,215
<OTHER-OPERATING-EXPENSES> 118,857
<TOTAL-OPERATING-EXPENSES> 124,072
<OPERATING-INCOME-LOSS> 14,092
<OTHER-INCOME-NET> 1,725
<INCOME-BEFORE-INTEREST-EXPEN> 15,817
<TOTAL-INTEREST-EXPENSE> 5,216
<NET-INCOME> 10,601
0
<EARNINGS-AVAILABLE-FOR-COMM> 10,601
<COMMON-STOCK-DIVIDENDS> (10,291)
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 34,361
<EPS-PRIMARY> 0.66
<EPS-DILUTED> 0
</TABLE>
Ratio of Earnings to Fixed Charges Exhibit 12
Six Months
Ended
June 30, 1997
Earnings
Income before interest expense . . . . . . . . . $15,817
Add:
Income tax items . . . . . . . . . . . . . . . . 5,215
Income tax on other income . . . . . . . . . . . 1,246
Amortization of debt discount, premium expense . 144
AFUDC - borrowed funds . . . . . . . . . . . . . 13
Interest on rentals . . . . . . . . . . . . . . . 454
Total Earnings . . . . . . . . . . . . . . $22,889
Fixed Charges
Interest on long-term debt . . . . . . . . . . . $ 4,820
Other interest . . . . . . . . . . . . . . . . . 409
Amortization of debt discount, premium expense . 144
Interest on rentals . . . . . . . . . . . . . . . 454
Total Fixed Charges . . . . . . . . . . . . $ 5,827
Ratio of Earnings to Fixed Charges . . . . . . . 3.93x
