FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 1999
Commission File Number 001-11441
ENERGYNORTH, INC.
(Exact name of registrant as specified in its charter)
New Hampshire 02-0363755
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1260 Elm Street, P.O. Box 329, Manchester, NH 03105
(Address and zip code of principal executive offices)
(603) 625-4000
(Registrant's telephone number, including area code)
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 [ ]
EnergyNorth, Inc. had 3,319,718 shares of $1.00 par value common
stock outstanding on April 26, 1999, the filing date of this report.
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENERGYNORTH, INC.
Condensed Consolidated Balance Sheets
Assets
(Unaudited, except for September 30, 1998 data)
(In thousands)
March 31, September 30,
1999 1998 1998
___________________________________
Property:
Utility plant, at cost $162,602 $151,582 $158,595
Accumulated depreciation and amortization 53,980 50,088 51,313
___________________________________
Net utility plant 108,622 101,494 107,282
Net nonutility property, at cost 8,141 7,487 7,771
___________________________________
Net property 116,763 108,981 115,053
___________________________________
Current assets:
Cash and temporary cash investments 1,634 6,247 1,231
Accounts receivable (net of allowances of
$1,323, $1,258 and $1,127, respectively) 16,520 13,351 9,727
Unbilled revenues 1,641 1,454 516
Deferred gas costs 535 - -
Materials and supplies 2,170 1,780 2,086
Supplemental gas supplies 4,257 4,656 9,653
Prepaid and deferred taxes 1,653 1,162 1,804
Recoverable FERC 636 transition costs - 757 252
Prepaid expenses and other 677 708 2,252
___________________________________
Total current assets 29,087 30,115 27,521
___________________________________
Deferred charges and other assets:
Regulatory asset - income taxes 2,401 2,401 2,401
Recoverable environmental costs 10,198 5,003 6,113
Other deferred charges 2,056 1,888 1,941
Other assets 2,387 2,046 2,121
___________________________________
Total deferred charges and other assets 17,042 11,338 12,576
___________________________________
Total assets $162,892 $150,434 $155,150
===================================
See accompanying notes to condensed consolidated financial statements.
<PAGE>
ENERGYNORTH, INC.
Condensed Consolidated Balance Sheets
Stockholders' Equity and Liabilities
(Unaudited, except for September 30, 1998 data)
(In thousands, except share information)
<TABLE>
<CAPTION>
March 31, September 30,
1999 1998 1998
___________________________________
<S> <C> <C> <C>
Capitalization:
Common stockholders' equity:
Common stock - par value of $1 per
share; 10,000,000 shares authorized;
3,319,718, 3,246,258 and 3,317,498
shares issued and outstanding, respectively $ 3,320 $ 3,246 $ 3,317
Amount in excess of par 32,506 30,488 32,445
Retained earnings 23,238 21,950 15,128
___________________________________
Total common stockholders' equity 59,064 55,684 50,890
Long-term debt 45,591 44,815 44,390
___________________________________
Total capitalization 104,655 100,499 95,280
___________________________________
Current liabilities:
Notes payable to banks 4,352 1,600 3,524
Current portion of long-term debt 801 939 2,061
Inventory purchase obligation 5,229 5,311 8,712
Accounts payable 10,942 7,321 10,431
Deferred gas costs - 1,908 3,841
Accrued interest 264 264 272
Accrued and deferred taxes 4,562 4,528 342
Accrued FERC 636 transition costs - 757 252
Accrued environmental remediation costs 5,371 2,046 2,345
Customer deposits and other 2,360 1,866 3,761
___________________________________
Total current liabilities 33,881 26,540 35,541
___________________________________
Commitments and contingencies
Deferred credits:
Deferred income taxes 18,958 18,094 18,828
Unamortized investment tax credits 1,587 1,672 1,610
Regulatory liability - income taxes 1,084 1,197 1,141
Contributions in aid of construction and other 2,727 2,432 2,750
___________________________________
Total deferred credits 24,356 23,395 24,329
___________________________________
Total stockholders' equity and liabilities $162,892 $150,434 $155,150
===================================
See accompanying notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
ENERGYNORTH, INC.
Condensed Consolidated Statements of Income
For the periods ended March 31
(Unaudited)
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Six Months Twelve Months
1999 1998 1999 1998 1999 1998
_________________ __________________ ___________________
<S> <C> <C> <C> <C> <C> <C>
Operating revenues $47,985 $42,032 $79,456 $72,924 $116,458 $100,442
_________________ __________________ ___________________
Operating expenses:
Cost of sales 26,114 23,830 41,970 38,912 67,182 56,206
Operations and maintenance 6,541 5,375 13,109 11,243 24,939 21,869
Depreciation and amortization 2,154 1,725 4,010 3,364 7,250 6,392
Taxes other than income taxes 1,094 1,017 2,175 2,094 4,153 3,012
Federal and state income taxes 4,226 3,427 6,110 5,852 3,360 3,686
_________________ _________________ ___________________
Total operating expenses 40,129 35,374 67,374 61,465 106,884 91,165
_________________ _________________ ___________________
Operating income 7,856 6,658 12,082 11,459 9,574 9,277
Other income 532 337 906 849 1,230 1,317
Interest expense:
Interest on long-term debt 964 968 1,936 1,943 3,890 3,402
Other interest 309 191 718 387 1,180 895
_________________ _________________ ___________________
Total interest expense 1,273 1,159 2,654 2,330 5,070 4,297
_________________ _________________ ___________________
Net income $ 7,115 $ 5,836 $10,334 $ 9,978 $ 5,734 $ 6,297
================= ================= ===================
Weighted average shares outstanding 3,320 3,246 3,319 3,245 3,309 3,244
================= ================= ===================
Basic earnings per share $ 2.14 $ 1.80 $ 3.11 $ 3.07 $ 1.73 $ 1.94
================= ================= ===================
Dividends declared per share $ .335 $ .32 $ .67 $ .64 $ 1.34 $ 1.28
================= ================= ===================
See accompanying notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
ENERGYNORTH, INC.
Condensed Consolidated Statements of Cash Flows
For the six months ended March 31
(Unaudited)
(In thousands)
1999 1998
__________________
Cash flows from operating activities:
Net income $10,334 $ 9,978
Noncash items:
Depreciation and amortization 4,246 3,662
Deferred taxes and investment tax credits, net 22 (327)
Changes in:
Accounts receivable, net (6,792) (9,921)
Unbilled revenues (1,125) (852)
Inventories 5,311 4,440
Prepaid expenses and other 1,575 632
Deferred gas costs (4,376) 608
Accounts payable 511 1,275
Accrued liabilities (1,494) (563)
Accrued/prepaid taxes 4,372 4,559
Payments for environmental costs and other (2,240) (31)
__________________
Net cash provided by operating activities 10,344 13,460
__________________
Cash flows from investing activities:
Additions to property (5,157) (5,847)
Change in note receivable, net - 111
__________________
Net cash used for investing activities (5,157) (5,736)
__________________
Cash flows from financing activities:
Issuance of common stock 63 63
Cash dividends on common stock (2,224) (2,078)
Issuance of long-term debt 1,919 254
Repayment of long-term debt (1,978) (674)
Repayment of capital lease obligations - (46)
Change in notes payable to banks 828 1,500
Change in inventory purchase obligation (3,483) (2,541)
Change in other financing activities 91 47
__________________
Net cash used for financing activities (4,784) (3,475)
__________________
Net increase in cash and temporary cash investments 403 4,249
Cash and temporary cash investments, beginning of period 1,231 1,998
__________________
Cash and temporary cash investments, end of period $ 1,634 $ 6,247
==================
See accompanying notes to condensed consolidated financial statements.
<PAGE>
ENERGYNORTH, INC.
Notes to Condensed Consolidated Financial Statements
March 31, 1999
(Unaudited)
EnergyNorth, Inc. (Company) is an exempt public utility holding
company operating in northern New England. Its principal company
operating subsidiaries include EnergyNorth Natural Gas, Inc. (ENGI),
EnergyNorth Propane, Inc. (ENPI), and ENI Mechanicals, Inc. (ENMI).
ENGI is New Hampshire's largest natural gas utility with over
70,000 customers. ENPI is a retail propane company serving over
14,000 customers in New Hampshire, and through its 49% investment
in VGS Propane, LLC, serves more than 9,000 customers in Vermont.
ENMI, through its wholly owned subsidiaries, Northern Peabody, Inc.
(NPI) and Granite State Plumbing and Heating, Inc. (GSP&H), provides
mechanical contracting services for commercial, industrial and
institutional customers in northern New England. They are engaged
in the design, construction and service of plumbing, heating,
ventilation, air conditioning and process piping systems.
Note 1. Basis of Presentation
The accompanying condensed consolidated financial statements of
EnergyNorth, Inc. include the accounts of all subsidiaries. All
significant intercompany accounts and transactions have been
eliminated in the accompanying financial statements.
Effective May 1, 1998, the Company acquired NPI and GSP&H, which
are subsidiaries of ENMI. The acquisition was accounted for as a
purchase, and is reflected in the condensed consolidated
financial statements for the periods ended March 31, 1999.
The condensed consolidated financial statements included herein
have been prepared by the Company, without audit, pursuant to the
rules and regulations of the U. S. Securities and Exchange
Commission. Certain footnote disclosures and other information,
normally included in financial statements prepared in accordance
with generally accepted accounting principles, have been
condensed or omitted from these interim financial statements,
pursuant to such rules and regulations, although the Company
believes that the disclosures are adequate to make the
information not misleading. In the opinion of the Company, the
accompanying unaudited condensed consolidated financial
statements contain all adjustments, which include only normal
recurring adjustments, necessary to present fairly the financial
position as of March 31, 1999 and 1998 and the results of
operations for the three, six and twelve months then ended and
statements of cash flows for the six months ended March 31, 1999
and 1998. All accounting policies and practices have been applied
in a manner consistent with prior periods. These interim
financial statements should be read in conjunction with the
consolidated financial statements and notes thereto contained
in the Company's Annual Report to Shareholders for the year
ended September 30, 1998.
The business of ENGI and ENPI is influenced by seasonal weather
conditions. The amount of gas sold and transported for central
and space heating purposes and, to a lesser extent, water heating
is directly related to the ambient air temperature.
Consequently, more gas is sold and transported during the winter
months than is sold and transported during the summer months.
Therefore, the
<PAGE>
results of operations for the interim periods presented are not
indicative of the results to be expected for all or any part of
the balance of the current fiscal year.
Reclassifications are made periodically to previously issued
financial statements to conform to the current year's
presentation.
Note 2. Cash Flows
Supplemental disclosures of cash flow information for the six
months ended March 31, are as follows (in thousands):
1999 1998
________________________________________________________________
Cash paid (received) during the period for:
Interest (net of amount capitalized) $2,424 $2,060
Income taxes 1,447 2,004
In preparing the accompanying condensed consolidated statements
of cash flows, all highly liquid investments having maturities of
three months or less when acquired were considered to be cash
equivalents and classified as cash and temporary cash
investments.
Note 3. Commitments and Contingencies
For a discussion of commitments and contingencies, please refer
to Footnote 11 in the Company's 1998 Annual Report to
Shareholders.
<PAGE>
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
March 31, 1999
Results of Operations
_____________________
Net income for the three months ended March 31, 1999 was $7.1
million, or $2.14 per share, compared to $5.8 million, or $1.80
per share, in 1998. For the six months ended March 31, 1999, net
income increased to $10.3 million, or $3.11 per share, from $10.0
million, or $3.07 per share, in 1998. Net income for the twelve
months ended March 31, 1999 declined to $5.7 million, or $1.73
per share, compared to $6.3 million, or $1.94 per share,
in the prior period. Included in the prior twelve-month period
results was a one-time, after-tax credit of $649,000, or $.20 per
share, which was the result of a property tax settlement.
Although temperatures were colder for the current three and six-month
periods compared to the previous periods, they were significantly
warmer than normal for all periods presented. The temperatures had
a major impact on the results of operations for the periods presented.
The table below discloses degree day data as recorded at the U.S.
weather station in Concord, New Hampshire, comparing actual
degree days to the previous period and to normal. Due to the size
and topographical variations of the Company's service territory,
weather conditions vary. Concord, New Hampshire weather data is
considered to be representative of the territory.
Actual Actual Change vs. Change vs.
03-31-99 03-31-98 Normal Previous Period Normal
________ ________ ______ _______________ ______
3 months 3,341 2,981 3,581 12.1% (6.7)%
6 months 5,634 5,539 6,179 1.7% (8.8)%
12 months 6,627 6,919 7,473 (4.2)% (11.3)%
Quarterly Comparison
____________________
Total operating revenues increased almost $6 million, or
14.2%, for the quarter ended March 31, 1999. Included in
revenues for the current period were $6.4 million of ENMI
contract sales. Total utility gas service revenues were $36.4
million compared to $37.5 million in the prior period. The
average number of customers increased 2.4% for the quarter, the
weather was 12.1% colder and firm sendout, including transportation,
increased 15.5%. Despite higher sendout, revenues decreased
$1.1 million as lower purchased gas costs of $4.7 million were
passed through the cost of gas adjustment (CGA) to firm customers.
Although changes in the CGA rates affect operating revenues,
they do not affect total margin because the CGA is a tariff
mechanism designed to provide dollar-for-dollar recovery of
gas costs. Margin increased 13.6% for the quarter.
Retail propane operating revenues were $589,000 more than the
same quarter last year and gross margin increased 25%. Principal
reasons included an increase in propane gallons sold of 21.9%, as
a result of colder temperatures, and an increase of 8.6% in the
average number of retail propane customers.
<PAGE>
Operating expenses of the acquired mechanical contracting
operations were the main reason for the increase in operations
and maintenance expenses from the prior comparable period.
Depreciation and amortization expenses were almost 25% more than
the prior period as a result of capital additions and
amortization of environmental remediation costs. The increase in
other income resulted primarily from income generated by ENPI's
investment in VGS Propane, LLC. Total interest expense increased
due mostly to the higher level of short-term debt outstanding
during the current period.
Six-Month Comparison
____________________
Total operating revenues increased $6.5 million, or 9%, for the
six months ended March 31, 1999. Included in the current period's
revenues were $12.9 million of ENMI contract sales. Total utility
gas service revenues were $58.5 million compared to $64.6 million
in the prior period, a 9.4% decrease. The decrease included
lower purchased gas costs of $6.7 million that were passed through
the CGA to firm customers. The average number of customers grew
2.4% and firm sendout increased 5.3%, as temperatures were 1.7%
colder than the prior period. Margin earned from utility natural gas
operations increased $1.3 million for the six months.
The average number of retail propane customers grew 8% for
the six-month period and temperatures were 1.7% colder than the
prior period. Although retail propane gallons sold increased
approximately 6.8%, operating revenues decreased 2.2% as prices
decreased in response to lower propane costs from suppliers.
Margin was 6.6% better than the prior comparable six-month
period.
Operations and maintenance expenses of the mechanical contracting
operations and higher wages were the primary reasons for the 16.6%
increase in operation and maintenance expenses for the period.
Continued capital additions to the distribution system and amortization
of environmental costs were the primary reasons for the 19.2% increase
in depreciation and amortization expense. The main reason for the
13.9% increase in total interest expense was the greater level of
short-term debt outstanding during the period.
Twelve-Month Comparison
_______________________
Total operating revenues increased more than $16 million, or
15.9%, for the twelve months ended March 31, 1999. Partially
offsetting ENMI contract sales of $26.3 million was a
10.9% decline in utility gas service revenues. Utility gas
service revenues were $79.1 million compared to $88.8 million in
the prior period, due mostly to lower gas costs of $6.9 million
that were passed through the CGA. In addition, revenues
decreased as customers switched from sales service to transportation
service. Although temperatures were 4.2% warmer for the current
twelve-month period, firm sendout, including transportation,
increased 3.7%, as the average number of customers increased
2.4%.
The average number of retail propane customers increased more
than 7.5% for the twelve months ended March 31, 1999.
Consequently, propane gallons sold increased approximately 3.4%
<PAGE>
despite warmer temperatures. Operating revenues decreased
$583,000, as a result of a decrease in sales prices reflecting
lower propane costs. Margin earned from retail propane
operations was 3.8% better than the prior period.
Operations and maintenance expenses of the mechanical contracting
operations and increases in wages were the primary reasons for
the 14% increase in operations and maintenance expenses for the
period. Higher depreciation and amortization charges were a
direct result of plant additions and amortization of
environmental remediation costs. Taxes other than income taxes
for the prior period included favorable property tax settlements.
Total interest expense increased more than 18% during the twelve-
month period due primarily to the $22 million of 7.4% First
Mortgage Bonds issued in September 1997 and the increased level
of short-term debt outstanding during the current period.
Capital Resources and Liquidity
_______________________________
Cash flow patterns reflect the seasonality of the Company's
business. The greatest demand for cash is in the fall and early
winter as utility construction projects are brought to completion and
during the winter as accounts receivable balances grow.
The net accounts receivable balance at March 31, 1999 was
$16.5 million and included $5.3 million from ENMI contract sales.
The balance reflects lower revenues resulting from warmer temperatures
and from lower purchased gas costs being passed through the CGA.
During the spring and early summer months, a positive cash flow
stream is created as gas accounts receivable balances are collected.
At this time, inventories are partially depleted and prepaid amounts,
mostly insurance, are being amortized. The undercollected deferred
gas cost amounts at March 31, 1999 will be billed to customers through
the CGA mechanism in future periods.
The Company's major capital requirements result from efforts to
serve additional natural gas and propane customers and from normal
replacements and efficiency improvements to the existing plant.
For the six months ended March 31, 1999, capital expenditures totaled
more than $5.1 million.
Capital expenditures and working capital requirements were
financed by internally generated funds and supplemented by short-
term bank borrowings. At March 31, 1999, the Company had
unsecured bank lines of credit of $26.7 million, $4.4 million of
which was outstanding.
Construction expenditures for fiscal 1999 are expected to total
approximately $13.4 million. Construction expenditures, payment
of dividends, long-term debt repayments, environmental
remediation and working capital requirements will continue to be
funded through cash generated by operations, supplemented by
available lines of credit.
<PAGE>
Environmental Matters
_____________________
The Company and certain of its predecessors owned or operated
several facilities for the manufacture of gas from coal, a
process used through the mid-1900s that produced by-products that
may be considered contaminated or hazardous under current law,
and some of which may still be present at such facilities. Costs
to complete the Company's share of site investigation, risk
characterization and remediation at manufactured gas sites are
currently estimated to range from $5.4 million to $10.4 million.
In addition to costs incurred to date, the Company has recorded
$5.4 million as an accrued liability at March 31, 1999 with a
corresponding charge to recoverable environmental costs. For
further detail regarding environmental issues please refer to
Footnote 11 in the Company's 1998 Annual Report to Shareholders.
Year 2000 Readiness
___________________
The Company has evaluated its principal computer systems and
noninformation technology systems including, but not limited to,
telecommunication systems, automated meter reading systems,
SCADA, regulator stations, plant remote control systems and
security systems to determine readiness for the year 2000. These
systems are currently capable of processing the year 2000, or are
in the process of being upgraded or replaced by systems that are
similarly capable. All necessary program modifications and system
upgrades and testing are expected to be completed by the year
2000. Costs incurred to date and costs expected to be incurred
to complete the year 2000 readiness are not material and will not
have a material impact on the Company's financial position or
results of operations.
The Company is currently assessing year 2000 issues with third
parties with whom it has a material relationship. Except for the
Company's major pipeline supplier, who has provided assurance of
compliance, the Company has not determined the level of third-party
risk. Due to the complexity of the problem and the reliance on
certain important vendors and suppliers, there can be no guarantee
that year 2000 compliance for all computer systems and other systems
will be achieved or that critical and important vendors and suppliers
will achieve compliance. The successful upgrade of the Company's
system on a timely basis is critical to enable the Company to avoid
business disruption and the loss of essential information or data in the
year 2000. In addition, a disruption of the transmission of gas due
to year 2000 problems experienced by the Company's gas supplier or
other significant vendors and service providers could prevent the
delivery of a sufficient amount of gas to enable the Company to serve
certain customer segments.
Because of the difficulty of assessing year 2000 readiness of others
outside the control of the Company, the Company considers potential
disruptions by these third parties to present the "reasonably likely
worst case scenario." The Company's inability to serve its customers
could result in increased costs, loss of business and other similar
risks. In an effort to investigate the risks of non-compliance, the
Company is in the process of preparing a contingency plan. It is
anticipated that contingency plans will be finalized by September 30, 1999.
<PAGE>
Factors that May Affect Future Results
______________________________________
The Private Securities Litigation Reform Act of 1995 encourages
the use of cautionary statements accompanying forward-looking
statements. The preceding Management's Discussion and Analysis
of Financial Condition and Results of Operations includes or
refers to forward-looking statements concerning the impact of
changes in the cost of gas and of the CGA mechanism on total
margin; projected capital expenditures and sources of cash to
fund expenditures; year 2000 readiness; and estimated costs of
environmental remediation and anticipated regulatory approval
of recovery mechanisms. The Company's future results, generally
and with respect to such forward-looking statements, may be affected
by many factors, among which are uncertainty as to the regulatory
allowance of recovery of changes in the cost of gas; uncertain
demands for capital expenditures and the availability of cash from
various sources; uncertainty as to environmental costs and as to
regulatory approval of the full recovery of environmental costs,
and other regulatory assets; weather; results of regulatory proceedings
on unbundling; impact of new pipeline supplies; and success of the
Company's year 2000 readiness efforts and those of its vendors and
customers.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
A description of pending legal proceedings is contained in the Company's
annual report on Form 10-K for the fiscal year ended September 30, 1998.
No further material legal proceedings or material developments occurred
in the quarter.
Items 2, 3 and 5 are not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
The shareholders of the Company elected certain directors, ratified the
appointment of auditors and adopted the 1998 Stock Option Plan at the
annual meeting held on February 3, 1999. Numbers of votes for each nominee
and for the ratification of auditors and adoption of the Stock Option Plan
are shown in the following table.
Against or Broker
For Withheld Abstain Nonvotes
________________________________________
Director Nominees
_________________
Edward T. Borer 2,736,696 50,526 - -
Michelle L. Chicoine 2,770,676 16,546 - -
Richard B. Couser 2,764,716 22,506 - -
Constance B. Girard-diCarlo 2,727,366 59,856 - -
Auditor Ratification 2,756,701 14,777 15,744 -
____________________
Stock Option Plan Adoption 1,985,782 193,729 64,335 543,376
__________________________
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
27 - Financial Data Schedule
(Submitted only in electronic format to the
Securities and Exchange Commission)
(b) Reports on Form 8-K:
The Company did not file any reports on Form 8-K during the quarter
ended March 31, 1999.
<PAGE>
ENERGYNORTH, INC.
SIGNATURE
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.
EnergyNorth, Inc.
(Registrant)
Date: April 26, 1999 /s/ DAVID A. SKRZYSOWSKI
David A. Skrzysowski, duly authorized
Vice President & Controller
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
This schedule contains summary financial information extracted from the
EnergyNorth, Inc. condensed consolidated balance sheet as of March 31, 1999 and
condensed consolidated statement of income and statement of cash flows for the
six months ended March 31, 1999 and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> MAR-31-1999
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 108,622<F1>
<OTHER-PROPERTY-AND-INVEST> 8,141<F2>
<TOTAL-CURRENT-ASSETS> 29,087
<TOTAL-DEFERRED-CHARGES> 14,655
<OTHER-ASSETS> 2,387
<TOTAL-ASSETS> 162,892
<COMMON> 3,320
<CAPITAL-SURPLUS-PAID-IN> 32,506
<RETAINED-EARNINGS> 23,238
<TOTAL-COMMON-STOCKHOLDERS-EQ> 59,064
0
0
<LONG-TERM-DEBT-NET> 45,591
<SHORT-TERM-NOTES> 4,352
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 801
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 53,084
<TOT-CAPITALIZATION-AND-LIAB> 162,892
<GROSS-OPERATING-REVENUE> 79,456
<INCOME-TAX-EXPENSE> 6,110
<OTHER-OPERATING-EXPENSES> 61,264
<TOTAL-OPERATING-EXPENSES> 67,374
<OPERATING-INCOME-LOSS> 12,082
<OTHER-INCOME-NET> 906
<INCOME-BEFORE-INTEREST-EXPEN> 12,988
<TOTAL-INTEREST-EXPENSE> 2,654
<NET-INCOME> 10,334
0
<EARNINGS-AVAILABLE-FOR-COMM> 3,319
<COMMON-STOCK-DIVIDENDS> 2,224
<TOTAL-INTEREST-ON-BONDS> 3,569<F3>
<CASH-FLOW-OPERATIONS> 5,157
<EPS-PRIMARY> $3.11
<EPS-DILUTED> 0
<FN>
<F1>Net of accumulated depreciation of $53,980
<F2>Net of accumulated depreciation of $10,389
<F3>$3,569 represents the forecasted annual interest on bonds for the fiscal
year ending September 30, 1999. Actual interest on bonds for the three
months ended March 31, 1999 was $1,788
</FN>
</TABLE>
