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 25, 1999
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's operations became inactive during
1998. 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 three primarily coal-
fired generating plants that are used for electric
generation. IPL operates one coal and gas-fired
plant that 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. Each diesel unit has a nameplate rating of 3 MW.
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 4,717 pole
miles and 19,892 wire miles of overhead lines.
Underground distribution and service facilities
include 596 miles of conduit and 5,990 wire miles
of conductor. Underground street lighting
facilities include 108 miles of conduit and 726
wire miles of conductor. The system also has 73
bulk power substations and 68 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
1998 with respect to IPL, claimant's only subsidiary public
utility company:
(a) Number of KWH of electric energy sold
(at retail or wholesale): 15,640,848,544 KWH.
(b) Number of KWH of electric energy
distributed at retail outside the State of
Indiana: None.
(c) Number of KWH of electric energy sold at
wholesale outside the State of Indiana or at the
State line: 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 (1998),
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 25th day of February, 1999.
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, 1998
(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 5,082 7,892 46,550 34,073 16,077
- ------------------------------------------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents 1 0 1,645 1,583 1,217
Financial investments 0 0 0 0 0
Accounts receivable (less allowance
for doubtful accounts - $1,212) 2,077 77 849 31,106 409
Fuel - at average cost 179 0 0 0 0
Materials and supplies-at average cost 260 46 85 0 44
Prepayments and other current assets (277) 397 35 477 (96)
- ------------------------------------------------------------------------------------------------------
Total current assets 2,240 520 2,614 33,166 1,574
- ------------------------------------------------------------------------------------------------------
DEFERRED DEBITS:
Regulatory assets 0 0 0 0 0
Miscellaneous 209 2,103 2,383 375 191
- ------------------------------------------------------------------------------------------------------
Total deferred debits 209 2,103 2,383 375 191
- ------------------------------------------------------------------------------------------------------
TOTAL $7,531 $10,515 $51,547 $67,614 $17,842
======================================================================================================
</TABLE>
<TABLE>
EXHIBIT A
(CONTINUATION OF PREVIOUS TABLE)
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidated Balance Sheets,
December 31, 1998
(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 0 0 109,674
- -----------------------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents 0 0 4,446
Financial investments 0 0 0
Accounts receivable (less allowance
for doubtful accounts - $1,212) 770 0 35,288
Fuel - at average cost 0 0 179
Materials and supplies-at average cost 26 0 461
Prepayments and other current assets (341) 0 195
- -----------------------------------------------------------------------------------
Total current assets 455 0 40,569
- -----------------------------------------------------------------------------------
DEFERRED DEBITS:
Regulatory assets 0 0 0
Miscellaneous 333 0 5,594
- -----------------------------------------------------------------------------------
Total deferred debits 333 0 5,594
- -----------------------------------------------------------------------------------
TOTAL $788 $0 $155,837
===================================================================================
</TABLE>
<TABLE>
EXHIBIT A
(CONTINUATION OF PREVIOUS TABLE)
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidated Balance Sheets,
December 31, 1998
(Dollars in Thousands)
<CAPTION>
MACR
Consolidating Consolidating
Entries Consolidated Entries
Debit Credit MACR IPL Enterprise Debit Credit Consolidation
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
UTILITY PLANT:
Utility plant in service $0 $0 $0 $2,859,899 $0 $0 $0 $2,859,899
Less accumulated depreciation 0 0 0 1,202,356 0 0 0 1,202,356
- --------------------------------------------------------------------------------------------------------------------------------
Utility plant in service - net 0 0 0 1,657,543 0 0 0 1,657,543
Construction work in progress 0 0 0 80,198 0 0 0 80,198
Property held for future use 0 0 0 10,719 0 0 0 10,719
- --------------------------------------------------------------------------------------------------------------------------------
Utility plant - net 0 0 0 1,748,460 0 0 0 1,748,460
- --------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS - net 33,547 76,127 5,790 772,826 0 770,675 (A) 84,068
- --------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents 0 0 4,446 4,250 379 0 0 9,075
Financial investments 0 0 0 0 0 0 0 0
Accounts receivable (less allowance
for doubtful accounts - $1,212) 0 31,105 4,183 36,692 12,478 0 13,651 (B) 39,702
Fuel - at average cost 0 0 179 38,968 0 0 0 39,147
Materials and supplies-at average cost 0 0 461 48,163 0 0 0 48,624
Prepayments and other current assets 0 0 195 11,277 2,853 0 0 14,325
- --------------------------------------------------------------------------------------------------------------------------------
Total current assets 0 31,105 9,464 139,350 15,710 0 13,651 150,873
- --------------------------------------------------------------------------------------------------------------------------------
DEFERRED DEBITS:
Regulatory assets 0 0 0 116,801 0 116,801
Miscellaneous 0 0 5,594 12,665 484 0 0 18,743
- --------------------------------------------------------------------------------------------------------------------------------
Total deferred debits 0 0 5,594 129,466 484 0 0 135,544
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL $0 $64,652 $91,185 $2,023,066 $789,020 $0 $784,326 $2,118,945
================================================================================================================================
</TABLE>
<TABLE>
EXHIBIT A
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidated Balance Sheets,
December 31, 1998
(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 $6,999 $25,000 $1 $13,702 $1
Unearned Compensation - Restricted Stock
Premium and net gain on preferred
stock 0 0 0 0 0
Advances - Associated Companies 12,050 12,660 0 0 189
Retained earnings (10,668) (21,542) (20,595) 48,679 539
Treasury stock, at cost 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------
Total common shareholders' equity 8,381 16,118 (20,594) 62,381 729
Cumulative preferred stock 0 0 0 0 0
Long-term debt 0 0 67,081 0 16,000
- ------------------------------------------------------------------------------------------------------
Total capitalization 8,381 16,118 46,487 62,381 16,729
- ------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES:
Notes payable-banks and commercial paper 0 0 0 6,000 0
Current maturities and sinking fund
requirements 0 0 1,125 0 0
Accounts payable and accrued expenses 1,664 206 504 1,762 168
Dividends payable 0 0 0 0 0
Taxes accrued 648 0 986 191 365
Interest accrued 0 0 418 2 405
Other current liabilities 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------
Total current liabilities 2,312 206 3,033 7,955 938
- ------------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER
LONG-TERM LIABILITIES:
Accumulated deferred income taxes-net (3,162) (5,809) 2,027 (2,722) 175
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 (3,162) (5,809) 2,027 (2,722) 175
- ------------------------------------------------------------------------------------------------------
TOTAL $7,531 $10,515 $51,547 $67,614 $17,842
======================================================================================================
</TABLE>
<TABLE>
EXHIBIT A
(CONTINUATION OF PREVIOUS TABLE)
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidated Balance Sheets,
December 31, 1998
(Dollars in Thousands)
<CAPTION>
Total
SHAPE AES MACR
<C> <C> <C>
<S>
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common shareholders' equity:
Common stock $1,545 $0 $47,248
Unearned Compensation - Restricted Stock
Premium and net gain on preferred
stock 0 0 0
Advances - Associated Companies 6,206 0 31,105
Retained earnings (7,206) 0 (10,793)
Treasury stock, at cost 0 0 0
- -----------------------------------------------------------------------------------
Total common shareholders' equity 545 0 67,560
Cumulative preferred stock 0 0 0
Long-term debt 0 0 83,081
- -----------------------------------------------------------------------------------
Total capitalization 545 0 150,641
- -----------------------------------------------------------------------------------
CURRENT LIABILITIES:
Notes payable-banks and commercial paper 0 0 6,000
Current maturities and sinking fund
requirements 300 0 1,425
Accounts payable and accrued expenses 34 0 4,338
Dividends payable 0 0 0
Taxes accrued 7 0 2,197
Interest accrued 34 0 859
Other current liabilities 0 0 0
- -----------------------------------------------------------------------------------
Total current liabilities 375 0 14,819
- -----------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER
LONG-TERM LIABILITIES:
Accumulated deferred income taxes (132) 0 (9,623)
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 (132) 0 (9,623)
- -----------------------------------------------------------------------------------
TOTAL $788 $0 $155,837
===================================================================================
</TABLE>
<TABLE>
EXHIBIT A
(CONTINUATION OF PREVIOUS TABLE)
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidated Balance Sheets,
December 31, 1998
(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 $33,547 $0 $13,701 $324,537 $434,681 $338,238 (A) $0 $434,681
Unearned Compensation - Restricted Stock $0 $0 $0 $0 ($5,384) $0 ($5,384)
Premium and net gain on preferred
stock 0 0 0 2,642 0 1,993 (A) 0 649
Advances - Associated Companies 31,105 0 0 0
Retained earnings 0 0 (10,793) 440,747 613,431 430,444 (A) 0 612,941
Treasury stock, at cost 0 0 0 0 (468,696) 0 0 (468,696)
- ----------------------------------------------------------------------------------------------------------------------------------
Total common shareholders' equity 64,652 0 2,908 767,926 574,032 770,675 0 574,191
Cumulative preferred stock 0 0 0 59,135 0 0 0 59,135
Long-term debt 0 0 83,081 627,893 197,000 0 0 907,974
- ----------------------------------------------------------------------------------------------------------------------------------
Total capitalization 64,652 0 85,989 1,454,954 771,032 770,675 0 1,541,300
- ----------------------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES:
Notes payable-banks and commercial paper 0 0 6,000 19,200 0 0 0 25,200
Current maturities and sinking fund
requirements 0 0 1,425 0 0 0 0 1,425
Accounts payable and accrued expenses 0 0 4,338 64,461 4,339 1,303 (B) 0 71,835
Dividends payable 0 0 0 13,158 12,582 12,348 (B) 0 13,392
Taxes accrued 0 0 2,197 18,283 243 0 0 20,723
Interest accrued 0 0 859 13,326 191 0 0 14,376
Other current liabilities 0 0 0 13,731 0 0 0 13,731
- ----------------------------------------------------------------------------------------------------------------------------------
Total current liabilities 0 0 14,819 142,159 17,355 13,651 0 160,682
- ----------------------------------------------------------------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER
LONG-TERM LIABILITIES:
Accumulated deferred income taxes 0 0 (9,623) 328,417 (467) 0 0 318,327
Unamortized investment tax credit 0 0 0 41,993 0 0 0 41,993
Accrued postretirement benefits 0 0 0 10,768 0 10,768
Accrued pension benefits 0 0 0 39,953 0 39,953
Miscellaneous 0 0 0 4,822 1,100 0 0 5,922
- ----------------------------------------------------------------------------------------------------------------------------------
Total deferred credits and other
long-term liabilities 0 0 (9,623) 425,953 633 0 0 416,963
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL $64,652 $0 $91,185 $2,023,066 $789,020 $784,326 $0 $2,118,945
==================================================================================================================================
</TABLE>
<TABLE>
EXHIBIT A
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Statements of
Consolidated Income
For the Year Ended
December 31, 1998
(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:
Allowance for equity funds used
during construction
Other - net (2,614) 346 5,811 (2,687) 1,926
Provision for impairment of nonutility property 0 0 0 0 0
Income taxes - net 886 (121) (342) 1,231 (356)
- ------------------------------------------------------------------------------------------------------
Total other income and deductions-net (1,728) 225 5,469 (1,456) 1,570
- ------------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST AND OTHER CHARGES (1,728) 225 5,469 (1,456) 1,570
- ------------------------------------------------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 0 0 5,027 0 1,214
Allowance for borrowed funds
used during construction 0 0 0 0 0
Other interest 0 0 0 396 0
Amortization of redemption premiums
and expenses on debt - net 0 0 84 0 20
Preferred dividend
requirements of subsidiary 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------
Total interest and other charges - net 0 0 5,111 396 1,234
- ------------------------------------------------------------------------------------------------------
INCOME BEFORE CUMULATIVE EFFECT ($1,728) $225 $358 ($1,852) $336
- ------------------------------------------------------------------------------------------------------
CUMULATIVE EFFECT OF ACCOUNTING CHANGE 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------
NET INCOME ($1,728) $225 $358 ($1,852) $336
======================================================================================================
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, 1998
(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:
Allowance for equity funds used
during construction
Other - net (284) 0 2,498
Provision for impairment of nonutility property 0 0 0
Income taxes - net 78 0 1,376
- -----------------------------------------------------------------------------------
Total other income and deductions-net (206) 0 3,874
- -----------------------------------------------------------------------------------
INCOME BEFORE INTEREST AND OTHER CHARGES (206) 0 3,874
- -----------------------------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 23 0 6,264
Allowance for borrowed funds
used during construction 0 0 0
Other interest 0 0 396
Amortization of redemption premiums
and expenses on debt - net 0 0 104
Preferred dividend
requirements of subsidiary 0 0 0
- -----------------------------------------------------------------------------------
Total interest and other charges - net 23 0 6,764
- -----------------------------------------------------------------------------------
INCOME BEFORE CUMULATIVE EFFECT ($229) $0 ($2,890)
- -----------------------------------------------------------------------------------
CUMULATIVE EFFECT OF ACCOUNTING CHANGE 0 0 0
- -----------------------------------------------------------------------------------
NET INCOME ($229) $0 ($2,890)
===================================================================================
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, 1998
(Dollars In Thousands)
<CAPTION>
Consolidating
Entries
IPL Enterprises Debit Credit Consolidation
<S> <C> <C> <C> <C><C>
UTILITY OPERATING REVENUES:
Electric $785,835 $0 $0 $0 $785,835
Steam 35,421 0 0 0 35,421
- ------------------------------------------------------------------------------------------------------
Total operating revenues 821,256 0 0 0 821,256
- ------------------------------------------------------------------------------------------------------
UTILITY OPERATING EXPENSES:
Operation:
Fuel 181,036 0 0 0 181,036
Other 155,610 0 0 0 155,610
Power purchased 7,170 0 0 0 7,170
Purchased steam 5,968 0 0 0 5,968
Maintenance 73,501 0 0 0 73,501
Depreciation and amortization 103,223 0 0 0 103,223
Taxes other than income taxes 35,047 0 0 0 35,047
Income taxes - net 80,190 0 0 0 80,190
- ------------------------------------------------------------------------------------------------------
Total operating expenses 641,745 0 0 0 641,745
- ------------------------------------------------------------------------------------------------------
OPERATING INCOME 179,511 0 0 0 179,511
- ------------------------------------------------------------------------------------------------------
OTHER INCOME AND DEDUCTIONS:
Allowance for equity funds used
during construction 1,389 0 0 0 1,389
Other - net (158) (5,335) 0 0 (2,995)
Gain on termination of agreement 12,500 12,500
Provision for impairment of nonutility property 0 0 0 0 0
Income taxes - net (4,196) 8,051 0 0 5,231
- ------------------------------------------------------------------------------------------------------
Total other income and deductions-net 9,535 2,716 0 0 16,125
- ------------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST AND OTHER CHARGES 189,046 2,716 0 0 195,636
- ------------------------------------------------------------------------------------------------------
INTEREST AND OTHER CHARGES:
Interest on long-term debt 38,395 15,830 0 0 60,489
Allowance for borrowed funds
used during construction (911) 0 0 0 (911)
Other interest 675 0 0 0 1,071
Amortization of redemption premiums
and expenses on debt - net 1,740 218 0 0 2,062
Preferred dividend
requirements of subsidiary 3,119 (313) 0 0 2,806
- ------------------------------------------------------------------------------------------------------
Total interest and other charges - net 43,018 15,735 0 0 65,517
- ------------------------------------------------------------------------------------------------------
INCOME BEFORE CUMULATIVE EFFECT $146,028 ($13,019) $0 $0 $130,119
- ------------------------------------------------------------------------------------------------------
CUMULATIVE EFFECT OF ACCOUNTING CHANGE 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------
NET INCOME $146,028 ($13,019) $0 $0 $130,119
======================================================================================================
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 44,990
=========
EARNINGS PER SHARE OF COMMON STOCK $2.89
=========
</TABLE>
<TABLE>
EXHIBIT A
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Statements of Consolidated
Retained Earnings
For the Year Ended
December 31, 1998
(Dollars in Thousands)
<CAPTION>
MACR
CTEC CDCC MAER (Parent) ICE
<S> <C> <C> <C> <C> <C>
RETAINED EARNINGS AT BEGINNING OF YEAR ($8,940) ($21,767) ($20,953) $50,531 $203
NET INCOME (1,728) 225 358 (1,852) 336
- ------------------------------------------------------------------------------------------------------
Total (10,668) (21,542) (20,595) 48,679 539
- ------------------------------------------------------------------------------------------------------
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 ($10,668) ($21,542) ($20,595) $48,679 $539
======================================================================================================
</TABLE>
<TABLE>
EXHIBIT A
(CONTINUATION OF PREVIOUS TABLE)
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Statements of Consolidated
Retained Earnings
For the Year Ended
December 31, 1998
<CAPTION>
Total
SHAPE AES MACR
<S> <C> <C><C>
RETAINED EARNINGS AT BEGINNING OF YEAR ($6,977) $0 ($7,903)
NET INCOME (229) 0 (2,890)
- -----------------------------------------------------------------------------------
Total (7,206) 0 (10,793)
- -----------------------------------------------------------------------------------
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 ($7,206) $0 ($10,793)
===================================================================================
</TABLE>
<TABLE>
EXHIBIT A
(CONTINUATION OF PREVIOUS TABLE)
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Statements of Consolidated
Retained Earnings
For the Year Ended
December 31, 1998
<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 ($7,903) $508,626 $532,730 $500,723 (A) $0 $532,730
0
NET INCOME 0 0 (2,890) 149,147 130,119 146,257 (A) 130,119
- ----------------------------------------------------------------------------------------------------------------------------------
Total 0 0 (10,793) 657,773 662,849 646,980 0 662,849
- ----------------------------------------------------------------------------------------------------------------------------------
DEDUCT:
Cash dividends declared:
Cumulative preferred stock - at
prescribed rate of each series 0 0 0 3,119 0 0 3,119 (A) 0
Common stock 0 0 0 213,417 49,418 0 213,417 (A) 49,418
Capital stock expense 490 490
- ----------------------------------------------------------------------------------------------------------------------------------
Total 0 0 0 217,026 49,418 0 216,536 49,908
- ----------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS AT END OF YEAR $0 $0 ($10,793) $440,747 $613,431 $646,980 $216,536 $612,941
==================================================================================================================================
</TABLE>
<TABLE>
EXHIBIT A
IPALCO ENTERPRISES, INC. and SUBSIDIARIES
Consolidating Entries for the Year Ended December 31, 1998
<CAPTION>
Debit Credit
--------- ----------
<S> <C> <C>
(A) Common Stock - IPL $324,537
Common Stock - Mid-America 13,701
Retained Earnings - Subsidiaries
(Beginning Balance)* 500,723
Net Income of Subsidiary Companies* 146,257
Net Gain on Preferred Stock - IPL 1,993
Preferred Dividends - IPL* $3,119
Dividends Declared of Subsidiary Companies* 213,417
Investment in Subsidiary Companies 770,675
To eliminate Enterprises investments in IPL and Mid-America.
*Net Credit to Retained Earnings on the balance $430,444
sheet is
(B) Accounts Payable $1,303
Dividends Payable 12,348
Accounts Receivable from Associated 13,651
Companies
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-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 2,118,945
<TOTAL-OPERATING-REVENUES> 821,256
<NET-INCOME> 130,119
</TABLE>
