FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from_______________to_________________
Commission File Number 1-2578
OHIO EDISON COMPANY
(Exact name of Registrant as specified in its charter)
Ohio 34-0437786
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
76 South Main Street, Akron, Ohio 44308
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 216-384-5100
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Yes X No
_____ _____
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date:
152,569,437 shares of common stock, $9 par value, outstanding
as of August 2, 1995
OHIO EDISON COMPANY
TABLE OF CONTENTS
Pages
Part I. Financial Information
Consolidated Statements of Income 1
Consolidated Balance Sheets 2-3
Consolidated Statements of Cash Flows 4
Notes to Consolidated Financial Statements 5-6
Report of Independent Public Accountants 7
Management's Discussion and Analysis of
Results of Operations and Financial Condition 8-9
Part II. Other Information
<TABLE>
PART I. FINANCIAL INFORMATION
OHIO EDISON COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ----------------------
1995 1994 1995 1994
------- -------- ------ ------
(In thousands, except per share amounts)
<S> <C> <C> <C> <C>
OPERATING REVENUES $593,838 $585,428 $1,181,572 $1,186,676
OPERATING EXPENSES AND TAXES:
Fuel and purchased power 110,060 107,068 220,101 231,627
Nuclear operating costs 78,080 74,413 151,966 155,554
Other operating costs 101,055 115,244 207,898 222,474
-------- -------- ---------- ----------
Total operation and maintenance expenses 289,195 296,725 579,965 609,655
Provision for depreciation 55,899 52,314 112,765 106,339
Amortization of net regulatory assets 3,338 (4,163) 6,627 (5,970)
General taxes 60,752 57,927 120,309 119,106
Income taxes 45,240 44,550 88,679 87,073
-------- -------- ---------- ----------
Total operating expenses and taxes 454,424 447,353 908,345 916,203
-------- -------- ---------- ----------
OPERATING INCOME 139,414 138,075 273,227 270,473
OTHER INCOME 3,829 3,534 6,826 5,789
-------- -------- ---------- ----------
TOTAL INCOME 143,243 141,609 280,053 276,262
-------- -------- ---------- ----------
NET INTEREST AND OTHER CHARGES:
Interest on long-term debt 61,805 65,358 123,736 130,129
Deferred nuclear unit interest (2,125) (2,129) (4,250) (4,259)
Allowance for borrowed funds used during
construction and capitalized interest (989) (1,382) (2,303) (2,572)
Other interest expense 6,200 4,041 11,762 7,957
Subsidiary's preferred stock dividend requirements 1,301 1,681 2,461 3,037
--------- --------- ---------- ----------
Net interest and other charges 66,192 67,569 131,406 134,292
--------- --------- ---------- ----------
NET INCOME 77,051 74,040 148,647 141,970
PREFERRED STOCK DIVIDEND REQUIREMENTS 5,537 5,359 10,896 10,960
--------- --------- ---------- ----------
EARNINGS ON COMMON STOCK $ 71,514 $ 68,681 $ 137,751 $ 131,010
========= ========= ========== ==========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 143,638 143,161 143,579 143,097
========= ========= ========== ==========
EARNINGS PER SHARE OF COMMON STOCK $ .50 $ .48 $ .96 $ .92
===== ===== ===== ======
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK $.375 $.375 $ .75 $ .75
===== ===== ===== =====
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
</TABLE>
- 1 -
<TABLE> OHIO EDISON COMPANY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<CAPTION>
June 30, December 31,
1995 1994
-------------- -------------
(In thousands)
ASSETS
<S> <C> <C>
UTILITY PLANT:
In service, at original cost $8,538,409 $8,518,050
Less--Accumulated provision for depreciation 2,970,167 2,910,587
---------- ----------
5,568,242 5,607,463
---------- ----------
Construction work in progress-
Electric plant 186,551 174,970
Nuclear fuel 18,028 52,470
---------- ----------
204,579 227,440
---------- ----------
5,772,821 5,834,903
---------- ----------
OTHER PROPERTY AND INVESTMENTS:
Letter of credit collateralization 277,763 277,763
Other 234,050 197,546
---------- ----------
511,813 475,309
---------- ----------
CURRENT ASSETS:
Cash and cash equivalents 60,367 23,291
Receivables-
Customers (less accumulated provisions of $2,462,000
and $2,517,000, respectively, for uncollectible accounts) 256,391 254,515
Other 45,446 54,713
Materials and supplies, at average cost-
Fuel 45,892 40,528
Other 72,719 81,809
Prepayments 91,560 71,836
---------- ----------
572,375 526,692
---------- ----------
DEFERRED CHARGES:
Regulatory assets 1,993,733 2,005,333
Unamortized sale and leaseback costs 105,148 106,883
Other 47,924 44,844
---------- ----------
2,146,805 2,157,060
---------- ----------
$9,003,814 $8,993,964
========== ==========
</TABLE>
- 2 -
<TABLE> OHIO EDISON COMPANY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<CAPTION>
June 30, December 31,
1995 1994
------------- ------------
(In thousands)
CAPITALIZATION AND LIABILITIES
<S> <C> <C>
CAPITALIZATION:
Common stockholders' equity-
Common stock, $9 par value, authorized 175,000,000 shares-
152,569,437 shares outstanding $1,373,125 $1,373,125
Other paid-in capital 725,278 724,848
Retained earnings 419,674 389,600
Unallocated employee stock ownership plan common stock -
8,880,675 and 9,076,489 shares, respectively (166,731) (170,376)
---------- ----------
Total common stockholders' equity 2,351,346 2,317,197
Preferred stock-
Not subject to mandatory redemption 277,335 277,335
Subject to mandatory redemption 25,000 25,000
Preferred stock of consolidated subsidiary-
Not subject to mandatory redemption 50,905 50,905
Subject to mandatory redemption 15,000 15,000
Long-term debt 2,822,225 3,166,593
---------- ----------
5,541,811 5,852,030
---------- ----------
CURRENT LIABILITIES:
Currently payable long-term debt 492,695 227,496
Short-term borrowings 230,950 174,642
Accounts payable 89,152 100,884
Accrued taxes 127,303 140,629
Accrued interest 61,276 65,743
Other 158,384 152,856
---------- ----------
1,159,760 862,250
---------- ----------
DEFERRED CREDITS:
Accumulated deferred income taxes 1,799,758 1,799,324
Accumulated deferred investment tax credits 219,815 223,827
Property taxes 108,874 106,458
Other 173,796 150,075
---------- ----------
2,302,243 2,279,684
---------- ----------
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 2) ---------- ----------
$9,003,814 $8,993,964
========== ==========
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral part of these balance sheets.
</TABLE> - 3 -
<TABLE> OHIO EDISON COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
1995 1994 1995 1994
-------- -------- -------- --------
(In thousands)
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 77,051 $ 74,040 $148,647 $141,970
Adjustments to reconcile net income to net
cash from operating activities-
Provision for depreciation 55,899 52,314 112,765 106,339
Nuclear fuel and lease amortization 17,940 11,861 32,200 32,188
Deferred income taxes, net 4,905 6,152 10,708 15,190
Investment tax credits, net (2,006) (2,009) (4,012) (4,018)
Allowance for equity funds used during construction (649) (1,560) (1,315) (3,066)
Deferred fuel costs, net 1,521 (1,889) 6,017 318
Other amortization, net 3,724 (132) 7,481 (238)
-------- --------- -------- --------
Internal cash before dividends 158,385 138,777 312,491 288,683
Receivables (19,113) (15,530) 7,391 3,661
Materials and supplies 3,220 (6,540) 3,726 2,571
Accounts payable (4,563) 38,380 86 34,482
Other (42,797) (46,860) (24,458) 760
-------- --------- -------- --------
Net cash provided from operating activities 95,132 108,227 299,236 330,157
-------- --------- -------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
New Financing-
Long-term debt 52,646 191,711 127,223 231,797
Short-term borrowings, net 72,089 - 56,308 -
Redemptions and Repayments-
Preferred stock - - - 50,362
Long-term debt 64,258 43,039 207,295 139,474
Short-term borrowings, net - 9,248 - 11,223
Dividend Payments-
Common stock 60,580 56,005 115,385 108,417
Preferred stock 5,333 5,331 10,734 11,145
-------- -------- -------- --------
Net cash provided from (used for) financing
activities (5,436) 78,088 (149,883) (88,824)
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions 39,731 80,050 93,936 145,370
Letter of credit collateralization deposit - 200,000 - 200,000
Other 13,621 3,875 18,341 7,502
-------- --------- -------- --------
Net cash used for investing activities 53,352 283,925 112,277 352,872
-------- --------- -------- --------
Net increase (decrease) in cash and cash equivalents 36,344 (97,610) 37,076 (111,539)
Cash and cash equivalents at beginning of period 24,023 145,761 23,291 159,690
-------- --------- -------- --------
Cash and cash equivalents at end of period $ 60,367 $ 48,151 $ 60,367 $ 48,151
======== ========= ======== ========
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
</TABLE>
- 4 -
OHIO EDISON COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1 - FINANCIAL STATEMENTS:
The condensed consolidated financial statements reflect all
normal recurring adjustments that, in the opinion of management,
are necessary to fairly present results of operations for the
interim periods. These statements should be read in conjunction
with the consolidated financial statements and notes included in
Ohio Edison Company's (Company) 1994 Annual Report to Stockholders.
The results of operations are not intended to be indicative of
results of operations for any future period.
2 - COMMITMENTS, GUARANTEES AND CONTINGENCIES:
Construction Program --
The Company and its wholly owned subsidiary, Pennsylvania
Power Company (Companies), currently forecast expenditures of
approximately $800,000,000 for property additions and improvements
from 1995-1999, of which approximately $180,000,000 is applicable
to 1995. The Companies' nuclear fuel investments are expected to be
approximately $172,000,000 during the 1995-1999 period, of which
approximately $30,000,000 is applicable to 1995.
Guarantees --
The Companies, together with the other Central Area Power
Coordination Group companies, have each severally guaranteed
certain debt and lease obligations in connection with a coal supply
contract for the Bruce Mansfield Plant. As of June 30, 1995, the
Companies' share of the guarantees were $74,850,000. The price
under the coal supply contract, which includes certain minimum
payments, has been determined to be sufficient to satisfy the debt
and lease obligations.
Environmental Matters --
Various federal, state and local authorities regulate the
Companies with regard to air and water quality and other
environmental matters. The Companies have estimated additional
capital expenditures for environmental compliance of approximately
$70,000,000 for the period 1995 through 1999, which is included in
the construction forecast under "Construction Program."
The Clean Air Act Amendments of 1990 required significant
reductions of sulfur dioxide (SO2) and nitrogen oxides (NOx) from
the Companies' coal-fired generating units by 1995 and additional
emission reductions by 2000. SO2 reductions for the years 1995
through 1999 are being achieved by burning lower-sulfur fuel,
generating more electricity from lower-emitting plants and/or
purchasing emission allowances. Equipment already installed
provides NOx reductions sufficient to meet the 1995 requirements.
- 5 -
Plans for complying with reductions required for the year 2000 and
thereafter have not been finalized. The Environmental Protection
Agency (EPA) is conducting additional studies which could indicate
the need for additional NOx reductions from the Companies'
Pennsylvania facilities by the year 2003. The cost of such
reductions, if required, may be substantial. The Company continues
to evaluate its compliance plans and other compliance options.
The Companies are required to meet federally approved SO2
regulations. Violations of such regulations can result in shutdown
of the generating unit involved, and/or civil or criminal penalties
of up to $25,000 for each day the unit is in violation. The EPA has
an interim enforcement policy for SO2 regulations in Ohio that
allows for compliance based on a 30-day averaging period. The EPA
has proposed regulations that could change the interim enforcement
policy, including the method of determining compliance with
emission limits. The Companies cannot predict what action the EPA
may take in the future with respect to the proposed regulations or
the interim enforcement policy.
The Pennsylvania Department of Environmental Resources has
issued regulations dealing with the storage, treatment,
transportation and disposal of residual waste such as coal ash and
scrubber sludge. These regulations impose additional requirements
relating to permitting, ground water monitoring, leachate
collection systems, closure, liability insurance and operating
matters. The Companies are considering various compliance options
but are presently unable to determine the ultimate increase in
capital and operating costs at existing sites.
Legislative, administrative and judicial actions will
continue to change the way that the Companies must operate in order
to comply with environmental laws and regulations. With respect to
any such changes and to the environmental matters described above,
the Companies expect that any resulting additional capital costs
which may be required, as well as any required increase in
operating costs, would ultimately be recovered from their
customers.
- 6 -
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Ohio Edison Company:
We have reviewed the accompanying consolidated balance
sheet of Ohio Edison Company (an Ohio corporation) and subsidiaries
as of June 30, 1995, and the related consolidated statements of
income and cash flows for the three-month and six-month periods
ended June 30, 1995 and 1994. These financial statements are the
responsibility of the Company's management.
We conducted our review in accordance with standards
established by the American Institute of Certified Public
Accountants. A review of interim financial information consists
principally of applying analytical procedures to financial data and
making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards,
the objective of which is the expression of an opinion regarding
the financial statements taken as a whole. Accordingly, we do not
express such an opinion.
Based on our review, we are not aware of any material
modifications that should be made to the financial statements
referred to above for them to be in conformity with generally
accepted accounting principles.
We have previously audited, in accordance with generally
accepted auditing standards, the consolidated balance sheet and
consolidated statement of capitalization of Ohio Edison Company and
subsidiaries as of December 31, 1994, and the related consolidated
statements of income, retained earnings, capital stock and other
paid-in capital, cash flows and taxes for the year then ended (not
presented separately herein). In our opinion, the information set
forth in the accompanying consolidated balance sheet as of December
31, 1994, is fairly stated, in all material respects, in relation
to the balance sheet from which it has been derived.
ARTHUR ANDERSEN LLP
Cleveland, Ohio
August 2, 1995
- 7 -
OHIO EDISON COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Results of Operations
Earnings on common stock increased to $.50 per share in the
second quarter of 1995 compared to $.48 per share for the same
period last year. For the six month period ended June 30, 1995,
earnings increased to $.96 per share from $.92 per share in 1994.
The Companies' ongoing commitment to cost control and higher sales
levels in 1995 produced the improved earnings.
During the first half of 1995, retail kilowatt-hour sales
increased slightly by 0.2% from last year, producing a new sales
record over last year's record level for any first-half in the
Company's history. Commercial and industrial sales increased 0.4%
and 2.3%, respectively, during this period due to an improving
local economy; however, residential sales fell 2.3% due to
unseasonably mild weather conditions in the first quarter of 1995.
Total kilowatt-hour sales were up 1.1% during the first half of
1995 primarily due to a 4.9% increase in sales to other utilities.
Despite the sales increase, operating revenues for the period
decreased by about $5,100,000 compared to last year due to a
reduction in the Company's fuel cost recovery rate.
Total kilowatt-hour sales were up 9.1% in the second
quarter of 1995, with retail kilowatt-hour sales increasing 1.8%
over the same period last year. Residential sales were down 0.2%,
while commercial and industrial sales increased 1.1% and 3.8%,
respectively. The Company began supplying 300 megawatts of power
to another utility in the second quarter of 1995 under a short-term
contract that expires at the end of 1995. This contract was the
principal cause for a 46.2% increase in sales to other utilities in
the second quarter of 1995 compared to last year.
The change in fuel and purchased power costs during the
three and six month periods ended June 30, 1995 reflects increased
sales in conjunction with the effects of deferral accounting that
resulted from the reduction in the Company's fuel cost recovery
rate. Nuclear expenses were lower in the first half of 1995 than
they were last year because of corrective maintenance work that was
being performed during the scheduled refueling outage at the Perry
Plant in 1994. The comparative decrease in other operating costs
reflects the Companies' continuing cost reduction efforts. Also,
last year's amount included a $9,600,000 charge by Penn Power
relating to a voluntary early retirement program offered to
qualifying employees.
Increased depreciation charges in 1995 reflect a higher
level of depreciable utility plant combined with an increase in the
accrual for nuclear decommissioning costs. The change in
amortization of net regulatory assets resulted principally from the
absence of credits in 1995 compared to last year due to limitations
contained in the Company's Rate Stabilization and Service Area
- 8 -
Development Program authorized by the Public Utilities Commission
of Ohio in 1992.
Overall, interest costs were lower during the first half
of 1995 than last year's level. Interest on long-term debt
decreased due to refinancing and redemption of higher-cost debt
that occurred subsequent to June 30, 1994. Other interest expense
increased compared to last year due primarily to higher short-term
borrowing levels in 1995.
Capital Resources and Liquidity
The Companies have continuing cash requirements for planned
capital expenditures and debt maturities. During the second half
of 1995, capital requirements for property additions and capital
leases are expected to be about $123,000,000, including $21,000,000
for nuclear fuel. The Companies have additional cash requirements
of approximately $101,000,000 to meet maturities of long-term debt
during the remainder of 1995. These cash requirements are expected
to be satisfied with internal cash and/or short-term credit
arrangements. In addition, approximately $70,000,000 of variable
rate pollution control put bonds are subject to repricing during
the remainder of the year.
As of June 30, 1995, the Companies had about $60,000,000
of cash and temporary investments. Of that amount, $40,000,000 was
held in escrow for the redemption of pollution control obligations
under one of the forward refunding arrangements discussed below.
The Companies also had $231,000,000 of short-term indebtedness at
the end of the second quarter of 1995. OES Fuel had approximately
$76,000,000 of unused borrowing capability at June 30, 1995 that
was available for reloan to the Company. The Companies also had
$2,000,000 of unused short-term bank lines of credit, and
$14,000,000 of bank facilities that provide for borrowings on a
short-term basis at the banks' discretion. OES Capital had
approximately $5,000,000 of unused, short-term borrowing capability
as of June 30, 1995.
During the first six months of 1995, the Companies
purchased from the bondholders $42,540,000 of first mortgage bonds
which had a weighted average interest rate of 8.25%. During the
second quarter, the Company issued $40,000,000 of 6.75% pollution
control notes under a forward refunding arrangement. The proceeds
were used to refund a like amount of 10.625% pollution control
notes in July 1995. Also in July 1995, the Company issued
$60,000,000 of 7.05% pollution control notes under another forward
refunding arrangement. The proceeds from that issue will be used
during the fourth quarter of 1995 to refund $60,000,000 of 10.5%
pollution control notes.
- 9 -
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
(a) The annual meeting of stockholders was held on April 27,
1995.
(b) At this meeting the following persons were elected to the
Company's Board of Directors:
Number of Votes
--------------------------------------------------
Against or Broker
For Withheld Abstentions Non-Votes
----------- ---------- ----------- ---------
D. C. Blasius 120,503,722 3,992,703 0 0
H. P. Burg 120,619,021 3,877,404 0 0
R. H. Carlson 120,462,688 4,033,737 0 0
R. M. Carter 120,199,803 4,396,622 0 0
C. A. Cartwright 120,322,378 4,174,047 0 0
W. R. Holland 120,370,085 4,126,340 0 0
R. L. Loughhead 120,427,321 4,069,104 0 0
G. H. Meadows 120,495,117 4,001,308 0 0
P. J. Powers 120,448,227 4,048,198 0 0
C. W. Rainger 120,700,208 3,796,217 0 0
G. M. Smart 120,700,485 3,795,940 0 0
J. T. Williams, Sr. 120,476,770 4,019,655 0 0
Allen Wolff was nominated for election as director at the
meeting but was not elected. Assuming the validity of a number
of potentially invalid proxies, Dr. Wolff received votes
representing 882,647 shares which, under cumulative voting,
resulted in 10,144,680 votes.
(c) At this meeting the appointment of Arthur Andersen LLP,
independent public accountants as auditors for the year 1995
was ratified:
Number of Votes
------------------------------------------------------
Against or Broker
For Withheld Abstentions Non-Votes
----------- ---------- ----------- ----------
121,184,520 1,898,325 2,250,709 0
(d) At this meeting a shareholder proposal to disallow proxies
granting discretionary voting powers for any issue placed
before stockholders was rejected:
Number of Votes
------------------------------------------------------
Against or Broker
For Withheld Abstentions Non-Votes
----------- ---------- ----------- ----------
21,653,484 78,068,485 7,369,095 18,242,490
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits
Exhibit
Number
15 Letter from independent public accountants.
Pursuant to paragraph (b)(4)(iii)(A) of Item 601 of Regulation
S-K, the Company has not filed as an exhibit to this Form 10-Q
any instrument with respect to long-term debt if the total
amount of securities authorized thereunder does not exceed 10%
of the total assets of the Company and its subsidiaries on a
consolidated basis, but hereby agrees to furnish to the
Commission on request any such documents.
(b) Reports on Form 8-K
None
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
August 2, 1995
OHIO EDISON COMPANY
-------------------
Registrant
/s/ H. P. Burg
-----------------------------
H. P. Burg
Senior Vice President and
Chief Financial Officer
EXHIBIT 15
Ohio Edison Company
76 South Main Street
Akron, Ohio 44308
Gentlemen:
We are aware that Ohio Edison Company has incorporated by reference
in previously filed Registration Statements No. 33-49135, No. 33-
49259, No. 33-49413 and No. 33-51139, the Company's Quarterly
Report on Form 10-Q for the quarter ended June 30, 1995, which
includes our report dated August 2, 1995, covering the unaudited
interim consolidated financial statements contained therein.
Pursuant to Rule 436(c) of Regulation C of the Securities Act of
1933, such report is not considered a part of the Registration
Statements prepared or certified by our firm or a report prepared
or certified by our firm within the meaning of Sections 7 and 11 of
the Act.
Very truly yours,
ARTHUR ANDERSEN LLP
Cleveland, Ohio
August 2, 1995
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
(Amounts in 1,000's, except earnings per share)
Income tax expense includes $4,442,000 related to other income.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 5,772,821
<OTHER-PROPERTY-AND-INVEST> 511,813
<TOTAL-CURRENT-ASSETS> 572,375
<TOTAL-DEFERRED-CHARGES> 2,146,805
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 9,003,814
<COMMON> 1,373,125
<CAPITAL-SURPLUS-PAID-IN> 558,547
<RETAINED-EARNINGS> 419,674
<TOTAL-COMMON-STOCKHOLDERS-EQ> 2,351,346
40,000
328,240
<LONG-TERM-DEBT-NET> 2,822,225
<SHORT-TERM-NOTES> 116,000
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 114,950
<LONG-TERM-DEBT-CURRENT-PORT> 486,588
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 6,107
<OTHER-ITEMS-CAPITAL-AND-LIAB> 2,738,358
<TOT-CAPITALIZATION-AND-LIAB> 9,003,814
<GROSS-OPERATING-REVENUE> 1,181,572
<INCOME-TAX-EXPENSE> 93,121
<OTHER-OPERATING-EXPENSES> 819,666
<TOTAL-OPERATING-EXPENSES> 908,345
<OPERATING-INCOME-LOSS> 273,227
<OTHER-INCOME-NET> 6,826
<INCOME-BEFORE-INTEREST-EXPEN> 280,053
<TOTAL-INTEREST-EXPENSE> 131,406
<NET-INCOME> 148,647
10,896
<EARNINGS-AVAILABLE-FOR-COMM> 137,751
<COMMON-STOCK-DIVIDENDS> 107,677
<TOTAL-INTEREST-ON-BONDS> 123,736
<CASH-FLOW-OPERATIONS> 299,236
<EPS-PRIMARY> .96
<EPS-DILUTED> .96
</TABLE>
