File No. 1-8644
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM U-3A-2
Statement by Holding Company Claiming Exemption
Under Rule U-3A-2 from the Provisions of the
Public Utility Holding Company Act of 1935
IPALCO ENTERPRISES, INC.
25 Monument Circle, P.O. Box 1595
Indianapolis, Indiana 46206-1595
February 28, 1994
(As Amended March 29, 1994)
File No. 1-8644
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Form U-3A-2
(As Amended March 29, 1994)
Statement by Holding Company Claiming Exemption
Under Rule U-3A-2 from the Provisions of the
Public Utility Holding Company Act of 1935
To Be Filed Annually Prior to March 1
IPALCO ENTERPRISES, INC.
hereby files with the Securities and Exchange Commission (Commission),
pursuant to Rule 2, its statement claiming exemption as a holding company
from the provisions of the Public Utility Holding Company Act of 1935, and
submits the following information:
1. Name, State of organization, location and nature of business of
claimant and every subsidiary thereof, other than any exempt wholesale
generator (EWG) or foreign utility company in which claimant directly or
indirectly holds an interest:
IPALCO Enterprises, Inc. (claimant) is an Indiana corporation
located in Indianapolis, Indiana. Pursuant to an Agreement and Plan
of Merger among the claimant, Indianapolis Power & Light Company (IPL)
and IPALCO-Sub, Inc., effective December 31, 1983, the claimant became
a holding company owning all of the issued and outstanding shares of
Common Stock of IPL. Owners of the Common Stock of IPL at the time of
the merger became owners of Common Stock of the claimant, on a share
for share basis, upon the effective date of the merger. The shares of
Cumulative Preferred Stock and debt securities of IPL were unaffected
by the merger and are held by the holders thereof in the same manner
as before the merger. At the date of filing of the initial Statement
on Form U-3A-2, in January, 1984, claimant was solely a holding
company and IPL was its only subsidiary.
IPL is an Indiana corporation engaged in the business of
generating, transmitting and selling electric energy in the City of
Indianapolis, Marion County and in neighboring cities, towns and
communities and adjacent rural areas, all within the State of Indiana,
the most distant point being about forty miles from Indianapolis. It
also produces, distributes and sells steam within a limited area in
such City.
In July, 1984, claimant organized Mid-America Capital Resources,
Inc. (Mid-America), an Indiana wholly-owned subsidiary of claimant,
under and through which claimant intends to conduct its non-regulated
activities. After selling the assets in December, 1986 and effecting
a dissolution in May, 1987 of Indianapolis Cablevision, Inc., its only
subsidiary, Mid-America's principal business until November 17, 1989,
was the investment of the proceeds received from such transaction,
among which is a 5% equity investment in Evergreen Media Corporation
(Evergreen), owner of eleven radio stations across the nation. On
November 17, 1989 a wholly owned subsidiary of Mid-America, called Mid-
America Energy Resources, Inc. (Energy Resources) was formed to market
and provide a commercial district cooling service to larger buildings
in downtown Indianapolis. On July 25, 1991, Energy Resources
acquired, for the total price of $9 Million, Cleveland Thermal Energy
Corporation (Cleveland Thermal) as a subsidiary. Cleveland Thermal
owns and operates a steam heating system in Cleveland, Ohio. On March
31, 1992, Cleveland District Cooling Corporation was formed to market
and provide a district cooling service to larger buildings in downtown
Cleveland. The property and assets of Energy Resources and its
subsidiaries represent 3.4 percent of the consolidated assets of
claimant.
Mid-America, Energy Resources, Cleveland Thermal and Evergreen
are not "public utility companies" as defined in the Act.
Future diversification opportunities for investment into other
business are continually being reviewed, but no further acquisition
has been made as of the date hereof. In carrying out its
diversification activities, claimant does not intend to take any
action which will impair its primary commitment to provide adequate
public utility service to customers of IPL.
2. A brief description of the properties of claimant and each of its
subsidiary public utility companies used for the generation, transmission,
and distribution of electric energy for sale, indicating the location of
principal generating plants, transmission lines, and electric distribution
facilities, including all such properties which are outside the State of
Indiana and all transmission lines which deliver or receive electric energy
at the borders of such State:
At the date of the filing of this Statement the claimant had no
properties of the nature above-described in the State of Indiana or
elsewhere, being solely a holding company owning cash and all of the
issued and outstanding shares of Common Stock of IPL and Mid-America.
The properties of IPL, claimant's only public utility subsidiary,
used for the generation, transmission and distribution of electric
energy for sale are located wholly within the State of Indiana and
consist of the following:
Generating Plants:
IPL owns and operates five primarily coal-fired generating
plants, three of which are used for total electric generation and two
of which are for a combination of electric and steam generation. The
generating plants have a total gross nameplate rating of 2,885 MW, a
winter capability of 2,862 MW and a summer capability of 2,829 MW.
Total Electric Stations:
H.T. Pritchard Plant, 25 miles southwest of Indianapolis, six
units in service with 367 MW nameplate rating (net winter
capability 344 MW, summer 341 MW).
E.W. Stout Plant, located in the southwest part of Marion
County, Indiana, five units in service with 771 MW nameplate
rating (net winter capability 798 MW, summer 767 MW).
Petersburg Plant, located in Pike County, Indiana, four units
in service with 1,716 MW nameplate rating (net winter
capability 1,690 MW, summer 1,690 MW).
Combination Electric and Steam Stations:
C.C. Perry Section K Plant, in the City of Indianapolis, with
20 MW nameplate rating (net winter capability 20 MW, summer
19 MW) for electric and a gross capacity of 1,990 M/lbs. per
hour for steam.
C.C. Perry Section W Plant, in the City of Indianapolis, with
11 MW nameplate rating (net winter capability 10 MW, summer
12 MW) for electric and a gross capacity of 300 M/lbs. per
hour for steam.
Transmission and Distribution System Properties:
IPL's transmission system located entirely within the State of
Indiana includes 454 circuit miles of 345,000 volt lines, 353 circuit
miles of 138,000 volt lines and 275 miles of 34,500 volt lines.
Distribution facilities include 4,686 pole miles and 19,785 wire miles
of overhead lines. Underground distribution and service facilities
include 416 miles of conduit and 4,751 wire miles of conductor.
Underground street lighting facilities include 110 miles of conduit
and 668 wire miles of conductor. The system also has 74 bulk power
substations and 85 distribution substations.
None of the transmission lines are positioned or located to
deliver or receive electric energy at the borders of the State of
Indiana.
3. The following information is for the calendar year 1993 with
respect to claimant and IPL, its only subsidiary public utility company:
(a) Number of KWH of electric energy sold (at retail or
wholesale) by IPL: 12,791,600,944 KWH.
(b) Number of KWH of electric energy distributed at retail
outside the State of Indiana by IPL: None.
(c) Number of KWH of electric energy sold at wholesale outside
the State of Indiana by IPL: None.
(d) Number of KWH of electric energy purchased outside the State
of Indiana or at the State line: None.
Annexed hereto as Exhibit A is a consolidating statement of income and
surplus of the claimant and its subsidiary companies for the last calendar
year (1993), together with a consolidating balance sheet of the claimant
and its subsidiary companies as of the close of such calendar year.
Exhibit A provides sufficient information to satisfy the requirements of
Exhibit B to this form.
4. Claimant does not hold directly or indirectly any interest in an
EWG or a foreign utility company.
(a) Name, location, business address and description of the
facilities used by the EWG or foreign utility company for the
generation, transmission and distribution of electric energy for
sale or for the distribution at retail of natural or manufactured
gas.
Not Applicable.
(b) Name of each system company that holds an interest in such EWG or
foreign utility company; and description of the interest held.
Not Applicable.
(c) Type and amount of capital invested, directly or indirectly, by
the holding company claiming exemption; any direct or indirect
guarantee of the security of the EWG or foreign utility company
by the holding company claiming exemption; and any debt or other
financial obligation for which there is recourse, directly or
indirectly, to the holding company claiming exemption or another
system company, other than the EWG or foreign utility company.
Not Applicable.
(d) Capitalization and earnings of the EWG or foreign utility company
during the reporting period.
Not Applicable.
(e) Identify any service, sales or construction contract(s) between
the EWG or foreign utility company and a system company, and
describe the services to be rendered or goods sold and fees or
revenues under such agreement(s).
Not Applicable.
Exhibit C is not applicable to this filing. (See Paragraph 4 above.)
The above-named claimant has caused this statement to be duly executed
on its behalf by its authorized officers on this 28th day of February,
1994.
IPALCO Enterprises, Inc.
(Name of claimant)
By /s/ John R. Brehm
--------------------------
John R. Brehm
Vice President and Treasurer
(CORPORATE SEAL)
Attest:
/s/ Marcus E. Woods
- ----------------------------
Marcus E. Woods, Secretary
Name, title, and address of officer to whom notices and correspondence
concerning this statement should be addressed:
Marcus E. Woods, Secretary and General Counsel
25 Monument Circle, Indianapolis, Indiana 46204
<TABLE>
IPALCO ENTERPRISES, INC. and SUBSIDIARIES EXHIBIT A
Statements of Consolidating Income
For the Year Ended December 31, 1993
(In Thousands Except Per Share Amounts)
<CAPTION>
Mid-America Consolidating Entries
Capital Resources IPL Enterprises Debit Credit Consolidation
<S> <C> <C> <C> <C> <C> <C>
UTILITY OPERATING REVENUES:
Electric $0 $629,327 $0 $0 $0 $629,327
Steam 0 34,976 0 0 0 34,976
- -------------------------------------------------------------------------------------------------------------------------------
Total operating revenues 0 664,303 0 0 0 664,303
- -------------------------------------------------------------------------------------------------------------------------------
UTILITY OPERATING EXPENSES:
Operation:
Fuel 0 158,390 0 0 0 158,390
Other 0 100,890 0 0 0 100,890
Power purchased (sold) - net 0 19,407 0 0 0 19,407
Purchased steam 0 8,051 0 0 0 8,051
Maintenance 0 67,326 0 0 0 67,326
Depreciation 0 78,372 0 0 0 78,372
Amortization of deferred return - rate
phase-in plan 0 0 0 0 0 0
Taxes other than income taxes 0 29,627 0 0 0 29,627
Income taxes - net 0 59,872 0 0 0 59,872
- -------------------------------------------------------------------------------------------------------------------------------
Total operating expenses 0 521,935 0 0 0 521,935
- -------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME 0 142,368 0 0 0 142,368
- -------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME AND DEDUCTIONS:
Allowance for equity funds used
during construction 0 2,010 0 0 0 2,010
Other - net (4,459) (1,237) (36,606) 0 0 (42,302)
Income taxes - net 2,758 599 14,145 0 0 17,502
- -------------------------------------------------------------------------------------------------------------------------------
Total other income and deductions-net (1,701) 1,372 (22,461) 0 0 (22,790)
- -------------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST AND OTHER CHARGES (1,701) 143,740 (22,461) 0 0 119,578
- -------------------------------------------------------------------------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 0 41,399 0 0 0 41,399
Allowance for borrowed funds
used during construction 0 (3,517) 0 0 0 (3,517)
Other interest 0 2,305 0 0 0 2,305
Amortization of debt premium and
expense - net 0 787 0 0 0 787
Preferred dividend requirements of subsidiary 0 3,182 0 0 0 3,182
- -------------------------------------------------------------------------------------------------------------------------------
Total interest and other charges - net 0 44,156 0 0 0 44,156
- -------------------------------------------------------------------------------------------------------------------------------
NET INCOME ($1,701) $99,584 ($22,461) $0 $0 $75,422
===============================================================================================================================
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 37,668
===============
EARNINGS PER SHARE OF COMMON STOCK $2.00
===============
</TABLE>
<TABLE>
EXHIBIT A
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidating Balance Sheets, December 31, 1993
(Dollars in Thousands)
<CAPTION>
Mid-America Consolidating Entries
ASSETS Capital Resources IPL Enterprises Debit Credit Consolidation
<S> <C> <C> <C> <C> <C> <C>
UTILITY PLANT:
Utility plant in service $0 $2,300,682 $0 $0 $0 $2,300,682
Less accumulated depreciation 0 876,054 0 0 0 876,054
- ----------------------------------------------------------------------------------------------------------------------------------
Net plant in service 0 1,424,628 0 0 0 1,424,628
Construction work in progress 0 168,480 0 0 0 168,480
Property held for future use 0 15,763 0 0 0 15,763
- ----------------------------------------------------------------------------------------------------------------------------------
Utility plant - net 0 1,608,871 0 0 0 1,608,871
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER PROPERTY - At cost, less
accumulated depreciation 75,377 1,873 787,696 0 786,902 (A) 78,044
- ----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents 406 8,349 1,958 0 0 10,713
Marketable securities 0 0 0 0 0 0
Financial investments 10,088 0 0 0 0 10,088
Special deposits 0 0 0 0 0 0
Accounts receivable (less allowance for
doubtful accounts - $672) 2,401 52,847 19,616 0 25,098 (B) 49,766
Fuel - at average cost 0 35,213 0 0 0 35,213
Materials and supplies - at average cost 2,720 54,847 0 0 0 57,567
Prepayments and other current assets 330 3,240 1,987 0 0 5,557
- ----------------------------------------------------------------------------------------------------------------------------------
Total current assets 15,945 154,496 23,561 0 25,098 168,904
- ----------------------------------------------------------------------------------------------------------------------------------
DEFERRED DEBITS:
Unamortized deferred return - rate
phase-in plan 0 0 0 0 0 0
Unamortized Petersburg Unit 4 carrying
charges 0 30,587 0 0 0 30,587
Unamortized redemption premiums
and expenses on debt and preferred stock 221 25,453 0 0 0 25,674
Other Regulatory Assets 0 32,954 0 32,954
Miscellaneous 4,898 16,072 19 0 0 20,989
- ----------------------------------------------------------------------------------------------------------------------------------
Total deferred debits 5,119 105,066 19 0 0 110,204
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL $96,441 $1,870,306 $811,276 $0 $812,000 $1,966,023
==================================================================================================================================
</TABLE>
<TABLE>
IPALCO ENTERPRISES, INC. and SUBSIDIARIES EXHIBIT A
Consolidating Balance Sheets, December 31, 1993
(Dollars in Thousands)
<CAPTION>
Mid-America Consolidating Entries
CAPITALIZATION AND LIABILITIES Capital Resources IPL Enterprises Debit Credit Consolidation
<S> <C> <C> <C> <C> <C> <C>
CAPITALIZATION:
Common shareholders' equity:
Common stock, no par, authorized - 145,000,000
shares, issued and outstanding - 37,692,966
shares in 1993 $33,702 $324,537 $379,460 $358,239 (A) $0 $379,460
Premium on 4% cumulative preferred
stock of subsidiary 0 1,363 0 0 0 1,363
Retained earnings 49,414 379,249 406,388 428,663 (A) 0 406,388
- ---------------------------------------------------------------------------------------------------------------------------------
Total common shareholders' equity 83,116 705,149 785,848 786,902 0 787,211
Cumulative preferred stock 0 51,898 0 0 0 51,898
Long-term debt 9,500 532,260 0 0 0 541,760
- ---------------------------------------------------------------------------------------------------------------------------------
Total capitalization 92,616 1,289,307 785,848 786,902 0 1,380,869
- ---------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES:
Notes payable - banks and commercial paper 0 90,000 0 0 0 90,000
Current maturities and sinking fund
requirements 0 8,729 0 0 0 8,729
Accounts payable 3,655 74,187 5,535 5,876 (B) 0 77,501
Dividends payable 0 20,024 19,497 19,222 (B) 0 20,299
Payrolls accrued 0 4,505 0 0 0 4,505
Taxes accrued 1,370 21,377 226 0 0 22,973
Interest accrued 57 11,150 1 0 0 11,208
Other current liabilities 0 5,316 0 0 0 5,316
- ---------------------------------------------------------------------------------------------------------------------------------
Total current liabilities 5,082 235,288 25,259 25,098 0 240,531
- ---------------------------------------------------------------------------------------------------------------------------------
DEFERRED CREDITS:
Accumulated deferred income taxes (1,390) 270,182 57 0 0 268,849
Unamortized investment tax credit 0 57,029 0 0 0 57,029
Accrued postretirement benefits 110 17,668 62 17,840
Miscellaneous 23 832 50 0 0 905
- ---------------------------------------------------------------------------------------------------------------------------------
Total deferred credits (1,257) 345,711 169 0 0 344,623
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL $96,441 $1,870,306 $811,276 $812,000 $0 $1,966,023
=================================================================================================================================
</TABLE>
<TABLE>
IPALCO ENTERPRISES, INC. and SUBSIDIARIES EXHIBIT A
Statements of Consolidating Retained Earnings
For the Year Ended December 31, 1993
(Dollars in Thousands)
<CAPTION>
Consolidating Entries
Mid-America Consolidated
Capital Resources IPL Enterprises Debit Credit Consolidation
<S> <C> <C> <C> <C> <C> <C>
RETAINED EARNINGS AT BEGINNING OF YEAR $51,115 $356,513 $407,814 $407,628 (A) $0 $407,814
NET INCOME (1,701) 102,766 75,422 101,065 (A) 75,422
- ----------------------------------------------------------------------------------------------------------------------------------
Total 49,414 459,279 483,236 508,693 0 483,236
- ----------------------------------------------------------------------------------------------------------------------------------
DEDUCT:
Cash dividends declared:
Cumulative preferred stock - at prescribed
rate of each series 0 3,182 0 0 3,182 (A) 0
Common stock 0 76,848 76,848 0 76,848 (A) 76,848
- ----------------------------------------------------------------------------------------------------------------------------------
Total 0 80,030 76,848 0 80,030 76,848
- ----------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS AT END OF YEAR $49,414 $379,249 $406,388 $508,693 $80,030 $406,388
==================================================================================================================================
</TABLE>
<TABLE>
EXHIBIT A
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidating Entries for the Year Ended December 31, 1993
<CAPTION>
Debit Credit
<S> <C> <C>
(A) Common Stock - IPL $324,537
Common Stock - Mid-America 33,702
Retained Earnings - Subsidiaries
(Beginning Balance)* 407,628
Net Income of Subsidiary Companies* 101,065
Preferred Dividends - IPL* $3,182
Dividends Declared of Subsidiary Companies* 76,848
Investment in Subsidiary Companies 786,902
To eliminate Enterprises investments in IPL and Mid-America.
*Net Credit to Retained Earnings on the balance sheet is $428,663
(B) Accounts Payable $5,876
Dividends Payable 19,222
Accounts Receivable from Associated Companies $25,098
To eliminate intercompany receivables and payables.
</TABLE>
