File No. 1-8644
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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.
One Monument Circle, P.O. Box 1595
Indianapolis, Indiana 46206-1595
February 26, 1998
File No. 1-8644
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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
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 and has its principal executive
office at One Monument Circle, Indianapolis, Indiana
46204.
Indianapolis Power & Light Company (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, 1965, IPL formed Property and
Land Company, Inc., an Indiana Corporation, for the
purpose of engaging in the business of buying,
owning, holding, improving, leasing, selling, and
otherwise dealing in and with real estate, and for
other general purposes.
In 1996, IPL formed IPL Funding Corporation, an
Indiana corporation, for purposes of engaging in a
financing transaction, and Fort Ben Energy
Management Corp., an Indiana corporation, for
purposes of managing, operating and maintaining
certain steam and chilled water production
facilities and related equipment and distribution
lines.
Unless otherwise indicated, each of the following
subsidiaries is an Indiana corporation conducting
business within the State of Indiana. In July, 1984,
claimant organized Mid-America Capital Resources, Inc.
(MACR), a wholly-owned subsidiary of claimant, under and
through which claimant intends to conduct its non-
regulated activities. On November 17, 1989 a wholly
owned subsidiary of MACR, called Mid-America Energy
Resources, Inc. (MAER) was formed to own and operate a
district cooling system to provide chilled water for the
purpose of air conditioning buildings in downtown
Indianapolis. On July 25, 1991, MAER acquired Cleveland
Thermal Energy Corporation (CTEC), an Ohio corporation,
as a subsidiary. CTEC owns and operates a steam heating
system in Cleveland, Ohio. On March 31, 1992, Cleveland
District Cooling Corporation (CDCC), an Ohio corporation,
was formed to own and operate a district cooling system
in downtown Cleveland. As of March, 1997, CTEC and CDCC
became wholly owned subsidiaries of MACR and not MAER.
In 1992, MACR acquired a 30% ownership interest
in Store Heat and Produce Energy, Inc. (SHAPE), and
currently holds an 80% interest in SHAPE. SHAPE
conducts research and development of energy storage
technology. Indianapolis Campus Energy, Inc. (ICE)
was formed in 1993 to construct, own and operate a
chilled water production facility to provide air
conditioning for the Eli Lilly and Company
Technology Center industrial campus.
Property and Land Company, Inc., IPL Funding
Corporation, Fort Ben Energy Management Corp., MACR,
MAER, CTEC, CDCC, SHAPE and ICE 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 MACR.
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 four primarily coal-fired
generating plants, three of which are used for total
electric generation and one of which is used for a
combination of electric and steam generation. The
generating plants have a total gross nameplate
rating of 3,024 MW, a winter capability of 3,036 MW
and a summer capability of 2,956 MW. All figures
are net of station use.
Total Electric Stations:
H.T. Pritchard Plant, 25 miles southwest of Indianapolis,
seven 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, eleven units in service with 921 MW
nameplate rating (net winter capability 1,000 MW, summer 924
MW).
Petersburg Plant, located in Pike County, Indiana, seven units
in service with 1,716 MW nameplate rating (net winter
capability 1,672 MW, summer 1,672 MW).
The number of units indicated above include three gas
turbine units at the Stout Plant added in 1973, one gas
turbine added in 1994, one gas turbine added in 1995, one
diesel unit each at Pritchard and Stout Plants and three
diesel units at Petersburg Plant, all added in 1967.
Combination Electric and Steam Station:
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.
Transmission and Distribution System Properties:
IPL's transmission system located entirely
within the State of Indiana includes 457 circuit
miles of 345,000 volt lines, 359 circuit miles of
138,000 volt lines and 268 miles of 34,500 volt
lines. Distribution facilities include 4,709 pole
miles and 19,877 wire miles of overhead lines.
Underground distribution and service facilities
include 505 miles of conduit and 5,520 wire miles of
conductor. Underground street lighting facilities
include 109 miles of conduit and 686 wire miles of
conductor. The system also has 73 bulk power
substations and 76 distribution substations.
None of the transmission lines is 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
1997 with respect to IPL, claimant's only subsidiary public
utility company:
(a) Number of KWH of electric energy sold (at
retail or wholesale) by IPL: 14,257,933,991 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.
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.
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 (1997), together with a
consolidating balance sheet of the claimant and its subsidiary
companies as of the close of such calendar year.
Attached hereto as Exhibit B is the Financial Data
Schedule.
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
26th day of February, 1998.
IPALCO Enterprises, Inc.
(Name of claimant)
By /s/ John R. Brehm
John R. Brehm
Vice President and Treasurer
(CORPORATE SEAL)
Attest:
/s/ Bryan G. Tabler
Bryan G. Tabler, Secretary
Name, title, and address of officer to whom notices and
correspondence concerning this statement should be addressed:
Bryan G. Tabler, Vice President, Secretary and General Counsel
One Monument Circle, Indianapolis, Indiana 46204
<TABLE>
IPALCO ENTERPRISES, INC. and SUBSIDIARIES EXHIBIT A
Consolidated Balance Sheets, December 31, 1997
(Dollars in Thousands)
<CAPTION>
MACR
ASSETS CTEC CDCC MAER (Parent) ICE
<S> <C> <C> <C> <C> <C>
UTILITY PLANT:
Utility plant in service $0 $0 $0 $0 $0
Less accumulated depreciation 0 0 0 0 0
- ------------------------------------------------------------------------------------
Utility plant in service - net 0 0 0 0 0
Construction work in progress 0 0 0 0 0
Property held for future use 0 0 0 0 0
- ------------------------------------------------------------------------------------
Utility plant - net 0 0 0 0 0
- ------------------------------------------------------------------------------------
OTHER ASSETS - NET 4,965 7,951 42,532 40,134 15,275
- ------------------------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents 55 0 2,455 4,697 303
Financial investments 0 0 0 0 0
Accounts receivable (less allowance
for doubtful accounts - $1,202) 2,504 199 18,988 31,109 522
Fuel - at average cost 257 0 0 0 0
Materials and supplies-at average cost 237 40 90 0 35
Prepayments and other current assets 137 0 31 0 9
- ------------------------------------------------------------------------------------
Total current assets 3,190 239 21,564 35,806 869
- ------------------------------------------------------------------------------------
DEFERRED DEBITS:
Regulatory assets 0 0 0 0 0
Miscellaneous 323 2,579 9,050 338 1,433
- ------------------------------------------------------------------------------------
Total deferred debits 323 2,579 9,050 338 1,433
- ------------------------------------------------------------------------------------
TOTAL $8,478 $10,769 $73,146 $76,278 $17,577
====================================================================================
</TABLE>
<TABLE> EXHIBIT A
CONTINUATION OF PREVIOUS TABLE IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidated Balance Sheets, December 31, 1997
(Dollars in Thousands)
<CAPTION>
Total
<S> SHAPE AES MACR
ASSETS <C> <C> <C>
UTILITY PLANT:
Utility plant in service $0 $0 $0
Less accumulated depreciation 0 0 0
- ---------------------------------------------------------------------
Utility plant in service - net 0 0 0
Construction work in progress 0 0 0
Property held for future use 0 0 0
- ---------------------------------------------------------------------
Utility plant - net 0 0 0
- ---------------------------------------------------------------------
OTHER ASSETS - net 182 0 111,039
- ---------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents 0 0 7,510
Financial investments 0 0 0
Accounts receivable (less allowance
for doubtful accounts - $1,202) 17 0 53,339
Fuel - at average cost 0 0 257
Materials and supplies-at average cost 366 0 768
Prepayments and other current assets 0 0 177
- ---------------------------------------------------------------------
Total current assets 383 0 62,051
- ---------------------------------------------------------------------
DEFERRED DEBITS:
Regulatory assets 0 0 0
Miscellaneous 338 0 14,061
- ---------------------------------------------------------------------
Total deferred debits 338 0 14,061
- ---------------------------------------------------------------------
TOTAL $903 $0 $187,151
=====================================================================
</TABLE>
<TABLE> EXHIBIT A
CONTINUATION OF PREVIOUS TABLE IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidated Balance Sheets, December 31, 1997
(Dollars in Thousands)
<CAPTION>
MACR
Consolidating Consolidating
Entries Consolidated Entries
Debit Credit MACR IPL Enterprises Debit Credit Consolidation
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
UTILITY PLANT:
Utility plant in service $0 $0 $0 $2,800,446 $0 $0 $0 $2,800,446
Less accumulated depreciation 0 0 0 1,121,317 0 0 0 1,121,317
- ----------------------------------------------------------------------------------------------------------------------------------
Utility plant in service - net 0 0 0 1,679,129 0 0 0 1,679,129
Construction work in progress 0 0 0 77,030 0 0 0 77,030
Property held for future use 0 0 0 10,224 0 0 0 10,224
- ----------------------------------------------------------------------------------------------------------------------------------
Utility plant - net 0 0 0 1,766,383 0 0 0 1,766,383
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS - net 40,048 70,991 5,171 842,714 0 840,642 (A) 78,234
- ----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents 0 0 7,510 4,950 4,833 0 0 17,293
Financial investments 0 0 0 0 0 0 0 0
Accounts receivable (less allowance
for doubtful accounts - $1,202) 0 48,273 5,066 43,053 15,473 0 16,559 (B) 47,033
Fuel - at average cost 0 0 257 35,000 0 0 0 35,257
Materials and supplies-at average cost 0 0 768 47,648 0 0 0 48,416
Prepayments and other current assets 0 0 177 8,486 437 0 0 9,100
- ----------------------------------------------------------------------------------------------------------------------------------
Total current assets 0 48,273 13,778 139,137 20,743 0 16,559 157,099
- ----------------------------------------------------------------------------------------------------------------------------------
DEFERRED DEBITS:
Regulatory assets 0 0 0 126,784 0 126,784
Miscellaneous 0 0 14,061 12,297 (509) 0 0 25,849
- ----------------------------------------------------------------------------------------------------------------------------------
Total deferred debits 0 0 14,061 139,081 (509) 0 0 152,633
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL $0 $88,321 $98,830 $2,049,772 $862,948 $0 $857,201 $2,154,349
==================================================================================================================================
</TABLE>
<TABLE>
EXHIBIT A
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidated Balance Sheets, December 31, 1997
(Dollars in Thousands)
<CAPTION>
MACR
CTEC CDCC MAER (Parent) ICE
<S> <C> <C> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common shareholders' equity:
Common stock $7,000 $25,000 $6,501 $13,702 $1
Premium and net gain on preferred
stock 0 0 0 0 0
Advances - Associated Companies 9,693 14,244 0 18,396 0
Retained earnings (8,940) (21,767) (5,685) 35,263 203
Treasury stock, at cost 0 0 0 0 0
- ------------------------------------------------------------------------------------------
Total common shareholders' equity 7,753 17,477 816 67,361 204
Cumulative preferred stock 0 0 0 0 0
Long-term debt 0 0 68,206 0 16,000
- ------------------------------------------------------------------------------------------
Total capitalization 7,753 17,477 69,022 67,361 16,204
- ------------------------------------------------------------------------------------------
CURRENT LIABILITIES:
Notes payable-banks and commercial paper 0 0 0 10,000 0
Current maturities and sinking fund
requirements 0 0 594 0 0
Accounts payable and accrued expenses 2,635 122 539 327 549
Dividends payable 0 0 0 0 0
Taxes accrued 1,505 (406) 830 691 393
Interest accrued 0 0 423 19 405
Other current liabilities 0 0 0 0 0
- ------------------------------------------------------------------------------------------
Total current liabilities 4,140 (284) 2,386 11,037 1,347
- ------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER
LONG-TERM LIABILITIES:
Accumulated deferred income taxes-net (3,415) (6,424) 1,738 (2,120) 26
Unamortized investment tax credit 0 0 0 0 0
Accrued postretirement benefits 0 0 0 0 0
Accrued pension benefits 0 0 0 0 0
Miscellaneous 0 0 0 0 0
- ------------------------------------------------------------------------------------------
Total deferred credits and other
long-term liabilities (3,415) (6,424) 1,738 (2,120) 26
- ------------------------------------------------------------------------------------------
TOTAL $8,478 $10,769 $73,146 $76,278 $17,577
==========================================================================================
0 0 0 0 0
</TABLE>
<TABLE> EXHIBIT A
CONTINUATION OF PREVIOUS TABLE
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidated Balance Sheets, December 31, 1997
(Dollars in Thousands)
<CAPTION>
Total
SHAPE AES MACR
<C> <C> <C>
<S>
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common shareholders' equity:
Common stock $1,546 $0 $53,750
Premium and net gain on preferred
stock 0 0 0
Advances - Associated Companies 5,940 0 48,273
Retained earnings (6,977) 0 (7,903)
Treasury stock, at cost 0 0 0
- ----------------------------------------------------------------------
Total common shareholders' equity 509 0 94,120
Cumulative preferred stock 0 0 0
Long-term debt 0 0 84,206
- ----------------------------------------------------------------------
Total capitalization 509 0 178,326
- ----------------------------------------------------------------------
CURRENT LIABILITIES:
Notes payable-banks and commercial paper 0 0 10,000
Current maturities and sinking fund
requirements 300 0 894
Accounts payable and accrued expenses 107 0 4,279
Dividends payable 0 0 0
Taxes accrued 19 0 3,032
Interest accrued 0 0 847
Other current liabilities 0 0 0
- ----------------------------------------------------------------------
Total current liabilities 426 0 19,052
- ----------------------------------------------------------------------
DEFERRED CREDITS AND OTHER
LONG-TERM LIABILITIES:
Accumulated deferred income taxes (32) 0 (10,227)
Unamortized investment tax credit 0 0 0
Accrued postretirement benefits 0 0 0
Accrued pension benefits 0 0 0
Miscellaneous 0 0 0
- ----------------------------------------------------------------------
Total deferred credits and other
long-term liabilities (32) 0 (10,227)
- ----------------------------------------------------------------------
TOTAL $903 $0 $187,151
======================================================================
0 0 0
</TABLE>
<TABLE> EXHIBIT A
CONTINUATION OF PREVIOUS TABLE
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidated Balance Sheets, December 31, 1997
(Dollars in Thousands)
<CAPTION>
MACR
Consolidating
Entries Consolidated Consolidating Entries
Debit Credit MACR IPL Enterprises Debit Credit Consolidation
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common shareholders' equity:
Common stock $40,048 $0 $13,702 $324,537 $395,851 $338,239 (A) $0 $395,851
Premium and net gain on preferred
stock 0 0 0 2,329 0 1,680 (A) 0 649
Advances - Associated Companies 48,273 0 0 0
Retained earnings 0 0 (7,903) 508,626 532,730 500,723 (A) 0 532,730
Treasury stock, at cost 0 0 0 0 (403,101) 0 0 (403,101)
- -----------------------------------------------------------------------------------------------------------------------------------
Total common shareholders' equity 88,321 0 5,799 835,492 525,480 840,642 0 526,129
Cumulative preferred stock 0 0 0 9,135 0 0 0 9,135
Long-term debt 0 0 84,206 627,840 320,800 0 0 1,032,846
- -----------------------------------------------------------------------------------------------------------------------------------
Total capitalization 88,321 0 90,005 1,472,467 846,280 840,642 0 1,568,110
- -----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES:
Notes payable-banks and commercial paper 0 0 10,000 23,700 0 0 0 33,700
Current maturities and sinking fund
requirements 0 0 894 0 2,200 0 0 3,094
Accounts payable and accrued expenses 0 0 4,279 63,970 1,242 3,386 (B) 0 66,105
Dividends payable 0 0 0 13,290 11,406 13,173 (B) 0 11,523
Taxes accrued 0 0 3,032 18,674 420 0 0 22,126
Interest accrued 0 0 847 13,258 1,388 0 0 15,493
Other current liabilities 0 0 0 12,556 (1) 0 0 12,555
- -----------------------------------------------------------------------------------------------------------------------------------
Total current liabilities 0 0 19,052 145,448 16,655 16,559 0 164,596
- -----------------------------------------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER
LONG-TERM LIABILITIES:
Accumulated deferred income taxes 0 0 (10,227) 325,386 (290) 0 0 314,869
Unamortized investment tax credit 0 0 0 44,783 0 0 0 44,783
Accrued postretirement benefits 0 0 0 17,144 0 17,144
Accrued pension benefits 0 0 0 39,821 0 39,821
Miscellaneous 0 0 0 4,723 303 0 0 5,026
- -----------------------------------------------------------------------------------------------------------------------------------
Total deferred credits and other
long-term liabilities 0 0 (10,227) 431,857 13 0 0 421,643
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL $88,321 $0 $98,830 $2,049,772 $862,948 $857,201 $0 $2,154,349
===================================================================================================================================
88,321 (88,321) 0 0 0 (857,201) 857,201 0
</TABLE>
<TABLE> EXHIBIT A
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Statements of Consolidated Income
For the Year Ended December 31, 1997
(Dollars In Thousands)
<CAPTION>
MACR
CTEC CDCC MAER (Parent) ICE
<S> <C> <C> <C> <C> <C>
UTILITY OPERATING REVENUES:
Electric $0 $0 $0 $0 $0
Steam 0 0 0 0 0
- -------------------------------------------------------------------------------------------------
Total operating revenues 0 0 0 0 0
- -------------------------------------------------------------------------------------------------
UTILITY OPERATING EXPENSES:
Operation:
Fuel 0 0 0 0 0
Other 0 0 0 0 0
Power purchased 0 0 0 0 0
Purchased steam 0 0 0 0 0
Maintenance 0 0 0 0 0
Depreciation and amortization 0 0 0 0 0
Taxes other than income taxes 0 0 0 0 0
Income taxes - net 0 0 0 0 0
- -------------------------------------------------------------------------------------------------
Total operating expenses 0 0 0 0 0
- -------------------------------------------------------------------------------------------------
OPERATING INCOME 0 0 0 0 0
- -------------------------------------------------------------------------------------------------
OTHER INCOME AND DEDUCTIONS:
Allow for equity funds used during construction
Other - net (1,421) (1,538) 3,798 (906) 1,293
Provision for impairment of nonutility property (10,000) (22,000) 0 0 0
Income taxes - net 3,363 8,283 (238) 815 (53)
- -------------------------------------------------------------------------------------------------
Total other income and deductions-net (8,058) (15,255) 3,560 (91) 1,240
- -------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST AND OTHER CHARGES (8,058) (15,255) 3,560 (91) 1,240
- -------------------------------------------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 0 0 3,249 0 1,214
Allowance for borrowed funds
used during construction 0 0 0 0 0
Other interest 0 0 0 540 0
Amortization of redemption premiums
and expenses on debt - net 0 0 51 0 17
Preferred dividend requirements of subsidiary 0 0 0 0 0
- -------------------------------------------------------------------------------------------------
Total interest and other charges - net 0 0 3,300 540 1,231
- -------------------------------------------------------------------------------------------------
INCOME BEFORE CUMULATIVE EFFECT ($8,058) ($15,255) $260 ($631) $9
- -------------------------------------------------------------------------------------------------
CUMULATIVE EFFECT OF ACCOUNTING CHANGE 0 0 0 0 0
- -------------------------------------------------------------------------------------------------
NET INCOME ($8,058) ($15,255) $260 ($631) $9
=================================================================================================
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
EARNINGS PER SHARE OF COMMON STOCK
</TABLE>
<TABLE> EXHIBIT A
CONTINUATION OF PREVIOUS TABLE IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Statements of Consolidated Income
For the Year Ended December 31, 1997
(Dollars In Thousands)
<CAPTION>
Consolidated
SHAPE AES MACR
<S> <C> <C> <C>
UTILITY OPERATING REVENUES:
Electric $0 $0 $0
Steam 0 0 0
- --------------------------------------------------------------------------------
Total operating revenues 0 0 0
- --------------------------------------------------------------------------------
UTILITY OPERATING EXPENSES:
Operation:
Fuel 0 0 0
Other 0 0 0
Power purchased 0 0 0
Purchased steam 0 0 0
Maintenance 0 0 0
Depreciation and amortization 0 0 0
Taxes other than income taxes 0 0 0
Income taxes - net 0 0 0
- --------------------------------------------------------------------------------
Total operating expenses 0 0 0
- --------------------------------------------------------------------------------
OPERATING INCOME 0 0 0
- --------------------------------------------------------------------------------
OTHER INCOME AND DEDUCTIONS:
Allow for equity funds used during construction
Other - net (1,971) 0 (745)
Provision for impairment of nonutility property 0 0 (32,000)
Income taxes - net 767 0 12,937
- --------------------------------------------------------------------------------
Total other income and deductions-net (1,204) 0 (19,808)
- --------------------------------------------------------------------------------
INCOME BEFORE INTEREST AND OTHER CHARGES (1,204) 0 (19,808)
- --------------------------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 45 0 4,508
Allowance for borrowed funds
used during construction 0 0 0
Other interest 0 0 540
Amortization of redemption premiums
and expenses on debt - net 0 0 68
Preferred dividend requirements of subsidiary 0 0 0
- --------------------------------------------------------------------------------
Total interest and other charges - net 45 0 5,116
- --------------------------------------------------------------------------------
INCOME BEFORE CUMULATIVE EFFECT ($1,249) $0 ($24,924)
- --------------------------------------------------------------------------------
CUMULATIVE EFFECT OF ACCOUNTING CHANGE 0 0 0
- --------------------------------------------------------------------------------
NET INCOME ($1,249) $0 ($24,924)
================================================================================
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
EARNINGS PER SHARE OF COMMON STOCK
</TABLE>
<TABLE> EXHIBIT A
CONTINUATION OF PREVIOUS TABLE IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Statements of Consolidated Income
For the Year Ended December 31, 1997
(Dollars In Thousands)
<CAPTION>
Consolidating Entries
IPL Enterprises Debit Credit Consolidation
<S> <C> <C> <C> <C> <C>
UTILITY OPERATING REVENUES:
Electric $738,134 $0 $0 $0 $738,134
Steam 38,293 0 0 0 38,293
- -------------------------------------------------------------------------------------------------------
Total operating revenues 776,427 0 0 0 776,427
- -------------------------------------------------------------------------------------------------------
UTILITY OPERATING EXPENSES:
Operation:
Fuel 164,578 0 0 0 164,578
Other 143,311 0 0 0 143,311
Power purchased 7,833 0 0 0 7,833
Purchased steam 7,075 0 0 0 7,075
Maintenance 76,679 0 0 0 76,679
Depreciation and amortization 103,230 0 0 0 103,230
Taxes other than income taxes 33,071 0 0 0 33,071
Income taxes - net 73,335 0 0 0 73,335
- -------------------------------------------------------------------------------------------------------
Total operating expenses 609,112 0 0 0 609,112
- -------------------------------------------------------------------------------------------------------
OPERATING INCOME 167,315 0 0 0 167,315
- -------------------------------------------------------------------------------------------------------
OTHER INCOME AND DEDUCTIONS:
Allow for equity funds used during construction 3,462 0 0 0 3,462
Other - net 4,507 (1,638) 0 0 2,124
Provision for impairment of nonutility property 0 0 0 0 (32,000)
Income taxes - net (1,105) 7,172 0 0 19,004
- -------------------------------------------------------------------------------------------------------
Total other income and deductions-net 6,864 5,534 0 0 (7,410)
- -------------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST AND OTHER CHARGES 174,179 5,534 0 0 159,905
- -------------------------------------------------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 38,809 17,068 0 0 60,385
Allowance for borrowed funds
used during construction (945) 0 0 0 (945)
Other interest 1,243 0 0 0 1,783
Amortization of redemption premiums
and expenses on debt - net 1,670 165 0 0 1,903
Preferred dividend requirements of subsidiary 2,760 (1,680) 0 0 1,080
- -------------------------------------------------------------------------------------------------------
Total interest and other charges - net 43,537 15,553 0 0 64,206
- -------------------------------------------------------------------------------------------------------
INCOME BEFORE CUMULATIVE EFFECT $130,642 ($10,019) $0 $0 $95,699
- -------------------------------------------------------------------------------------------------------
CUMULATIVE EFFECT OF ACCOUNTING CHANGE 18,347 0 0 0 18,347
- -------------------------------------------------------------------------------------------------------
NET INCOME $148,989 ($10,019) $0 $0 $114,046
=======================================================================================================
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 47,942
EARNINGS PER SHARE OF COMMON STOCK $2.38
</TABLE>
<TABLE> EXHIBIT A
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Statements of Consolidated Retained Earnings
For the Year Ended December 31, 1997
(Dollars in Thousands)
<CAPTION>
MACR
CTEC CDCC MAER (Parent) ICE
<S> <C> <C> <C> <C> <C>
RETAINED EARNINGS AT BEGINNING OF YEAR ($882) ($6,512) ($5,945) $35,894 $194
NET INCOME (8,058) (15,255) 260 (631) 9
- --------------------------------------------------------------------------------------------------
Total (8,940) (21,767) (5,685) 35,263 203
- --------------------------------------------------------------------------------------------------
DEDUCT:
Cash dividends declared:
Cumulative preferred stock - at
prescribed rate of each series 0 0 0 0 0
Common stock 0 0 0 0 0
- --------------------------------------------------------------------------------------------------
Total 0 0 0 0 0
- --------------------------------------------------------------------------------------------------
RETAINED EARNINGS AT END OF YEAR ($8,940) ($21,767) ($5,685) $35,263 $203
==================================================================================================
</TABLE>
<TABLE> EXHIBIT A
CONTINUATION OF PREVIOUS TABLE
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Statements of Consolidated Retained Earnings
For the Year Ended December 31, 1997
<CAPTION>
Total
SHAPE AES MACR
<S> <C> <C> <C>
RETAINED EARNINGS AT BEGINNING OF YEAR ($5,728) $0 $17,021
NET INCOME (1,249) 0 (24,924)
- ---------------------------------------------------------------------
Total (6,977) 0 (7,903)
- ---------------------------------------------------------------------
DEDUCT:
Cash dividends declared:
Cumulative preferred stock - at
prescribed rate of each series 0 0 0
Common stock 0 0 0
- ---------------------------------------------------------------------
Total 0 0 0
- ---------------------------------------------------------------------
RETAINED EARNINGS AT END OF YEAR ($6,977) $0 ($7,903)
=====================================================================
</TABLE>
<TABLE> EXHIBIT A
CONTINUATION OF PREVIOUS TABLE
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Statements of Consolidated Retained Earnings
For the Year Ended December 31, 1997
<CAPTION>
MACR
Consolidating
Entries Consolidated Consolidated Consolidating Entries
Debit Credit MACR IPL Enterprises Debit Credit Consolidation
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RETAINED EARNINGS AT BEGINNING OF YEAR $0 $0 $17,021 $456,349 $466,397 $473,370 (A) $0 $466,397
NET INCOME 0 0 (24,924) 151,749 114,046 126,825 (A) 114,046
- --------------------------------------------------------------------------------------------------------------------------------
Total 0 0 (7,903) 608,098 580,443 600,195 0 580,443
- --------------------------------------------------------------------------------------------------------------------------------
DEDUCT:
Cash dividends declared:
Cumulative preferred stock - at
prescribed rate of each series 0 0 0 2,760 0 0 2,760 (A) 0
Common stock 0 0 0 96,712 47,713 0 96,712 (A) 47,713
- --------------------------------------------------------------------------------------------------------------------------------
Total 0 0 0 99,472 47,713 0 99,472 47,713
- --------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS AT END OF YEAR $0 $0 ($7,903) $508,626 $532,730 $600,195 $99,472 $532,730
================================================================================================================================
</TABLE>
<TABLE>
EXHIBIT A
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidating Entries for the Year Ended December 31, 1997
<CAPTION>
Debit Credit
<S> <C> <C>
(A) Common Stock - IPL $324,537
Common Stock - Mid-America 13,702
Retained Earnings - Subsidiaries
(Beginning Balance)* 473,370
Net Income of Subsidiary Companies* 126,825
Net Gain on Preferred Stock - IPL 1,680
Preferred Dividends - IPL* $2,760
Dividends Declared of Subsidiary Companies* 96,712
Investment in Subsidiary Companies 840,642
To eliminate Enterprises investments in IPL and Mid-America.
*Net Credit to Retained Earnings on the balance sheet is $500,723
(B) Accounts Payable $3,386
Dividends Payable 13,173
Accounts Receivable from Associated Companies 16,559
To eliminate intercompany receivables and payables.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> OPUR3
<CIK> 0000728391
<NAME> IPALCO ENTERPRISES, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 2,154,349
<TOTAL-OPERATING-REVENUES> 776,427
<NET-INCOME> 114,046
</TABLE>
