SECURITIES AND EXCHANGE
COMMISSION
Washington, D. C.
FORM U-3A-2
STATEMENT BY HOLDING COMPANY
CLAIMING EXEMPTION
UNDER RULE U-3A-2 FROM THE
PROVISIONS OF THE
PUBLIC UTILITY HOLDING COMPANY
ACT OF 1935
* * * * *
File No. 69-291
TNP Enterprises, Inc.
(Name of Company)
hereby files with the Securities and Exchange 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 (Act), and submits the following
information:
1. The name, State of organization, location and nature of business of
claimant and every subsidiary thereof:
State of Location and
Name Organization Nature of Business
____ ____________ __________________
TNP Enterprises, Inc. Texas P. O. Box 2943
Ft. Worth, TX 76113
Holding Company
Texas-New Mexico Power Company Texas P. O. Box 2943
Ft. Worth, TX 76113
Electric Utility/
Holding Company
Facility Works, Inc. Texas P. O. Box 2943
(formerly known as Ft. Worth, TX 76113
Community Public Service Company) General purpose
corporation
TNP Operating Company Texas P. O. Box 2943
Ft. Worth, TX 76113
General purpose
corporation
(presently
inactive)
Texas Generating Company* Texas P. O. Box 2943
Ft. Worth, TX 76113
Special purpose
corporation
Texas Generating Company II* Texas P. O. Box 2943
Ft. Worth, TX 76113
Special purpose
corporation
*Wholly owned subsidiary of Texas-New Mexico Power Company
2. Following is a brief description of the properties of claimant and of
its subsidiary public utility company, Texas-New Mexico Power Company (TNMP),
used for the generation, transmission, and distribution of electric energy for
sale, indicating the location of principal generating plants, transmission lines
and distribution facilities including all such properties which are outside the
State in which claimant and its subsidiaries are organized, and all transmission
lines which deliver or receive electric energy at the borders of such States:
The claimant owns all of the issued and outstanding common stock, $10.00 par
value, of TNMP, an electric public utility corporation, the principal operating
subsidiary of claimant. Within Texas, TNMP is a regulated public utility engaged
in the supply, transmission, distribution and sale of electric energy. TNMP has
three operating regions throughout Texas. The largest municipalities within
Texas served by TNMP are Texas City, Lewisville, and League City. The regions
located in the State of Texas are as follows:
* North Central Region. Electric transmission and distribution
systems serving 56 communities in northeastern and central
Texas. The region is based at Lewisville, Texas.
* Gulf Coast Region. Electric transmission and distribution
systems serving 14 communities in southeastern Texas. The
region is based at Texas City, Texas.
* Mountain Region. Electric transmission and distribution
system serves 6 communities in southwestern Texas and 9
communities in southern New Mexico. The Mountain region is
based at Silver City, New Mexico. The largest municipalities
within this region served by TNMP are Silver City,
Alamogordo and Ruidoso, New Mexico, and Pecos, Texas.
Generating facilities owned by TNMP and the subsidiaries are located within
Robertson County, Texas, which is in the Central part of Texas. The generating
facilities are referred to as 150 MW, circulating fluidized bed units currently
using lignite as the fuel source. TNMP owns two units. TNMP also has a
transmission line connecting these units to a major transmission grid in Texas.
Electricity from these units is sold by TNMP solely within Texas. Neither the
claimant nor any of its subsidiaries own transmission lines which deliver or
receive electricity at the border of Texas.
Within New Mexico, TNMP is a regulated public utility engaged in the
supply, transmission, distribution and sale of electric energy. A portion of the
Mountain Region serves southern New Mexico, as described above.
3. Certain information, for the calendar year 1997 with respect to claimant
and its subsidiaries, is provided in the following chart:
(a) MWH sold:
Retail 9,652,131
Wholesale 498,038
___________________
Total 10,150,169
===================
TNP Enterprises, Inc. and Texas-New Mexico Power Company are incorporated in
the State of Texas.
(b) MWH sold at retail in (a) above include 1,648,904 MWH sold in New Mexico.
(c) MWH sold at wholesale in (a) above were within Texas.
(d) MWH purchased:
Texas 6,734,548
New Mexico 1,709,442
___________________
Total 8,443,990
===================
<PAGE>
4. Neither the claimant nor any of its subsidiaries are directly or
indirectly involved with, or have an interest in either an Exempt Wholesale
Generator or a foreign utility company.
Exhibit A. A consolidating statement of operations of the claimant and its
subsidiaries for the last calendar year 1997, together with a consolidating
balance sheet and consolidating statements of retained earnings of claimant and
its subsidiaries as of the close of the 1997 calendar year, are presented.
Exhibit B. A Financial Data Schedule for the period ended December 31,
1997, including Item Nos. 1, 2, and 3.
The above named claimant has caused this statement to be duly executed on
its behalf by its authorized officer on this 26th day of February, 1998.
Texas-New Mexico Power Company
By /s/ M. S. Cheema
______________________
Corporate Seal M. S. Cheema
Attest: Sr. Vice President -
Chief Financial Officer
/s/ Paul W. Talbot
__________________
Paul W. Talbot
Secretary
The name, title and address of the officer to whom notices and correspondence
concerning this statement should be addressed is:
Paul W. Talbot Secretary
______________ _________
Name Title
P. O. Box 2943, Fort Worth, Texas 76113
________________________________________
Address
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
TNP ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENTS OF INCOME (LOSS)
For the Year Ended December 31, 1997
(Amounts in Thousands)
Texas-New TNP TNP Facility Consolidating TNP
Mexico Power Operating Enterprises, Works, Entries Enterprises,
Company Company Inc. Inc. Inc.
Consolidated Consolidated
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $ 580,693 $ 8 $ - $ 4,541 $ (8) $ 585,234
------------ ------------ ------------ ------------ ------------ ------------
OPERATING EXPENSES:
Purchased power 261,043 261,043
Fuel 41,730 41,730
Other operating and general expenses 84,294 15 2,085 3,703 (8) 90,089
Cost of sales - 3,986 3,986
Depreciation of utility plant 38,851 2 83 38,936
Taxes other than income taxes 33,260 21 386 29 33,696
Income taxes 22,062 (5) (816) (1,133) 20,108
------------ ------------ ------------ ------------ ------------ ------------
Total Operating Expenses 481,240 33 1,655 6,668 (8) 489,588
------------ ------------ ------------ ------------ ------------ ------------
NET OPERATING INCOME 99,453 (25) (1,655) (2,127) - 95,646
------------ ------------ ------------ ------------ ------------ ------------
OTHER INCOME (LOSS):
Other income and deductions, net 1,120 16 31,175 23 (30,868) 1,466
Income taxes 257 - - - 257
------------ ------------ ------------ ------------ ------------ ------------
Other income (loss), net of taxes 1,377 16 31,175 23 (30,868) 1,723
------------ ------------ ------------ ------------ ------------ ------------
INCOME (LOSS) BEFORE INTEREST
CHARGES 100,830 (9) 29,520 (2,104) (30,868) 97,369
Interest charges 56,912 2 56,914
------------ ------------ ------------ ------------ ------------ ------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 43,918 (9) 29,520 (2,106) (30,868) 40,455
Loss from discontinued nonregulated
operations, net of taxes 10,777 10,777
------------ ------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) 43,918 (9) 29,520 (12,883) (30,868) 29,678
Dividends on preferred stock 158 158
------------ ------------ ------------ ------------ ------------ ------------
INCOME (LOSS) APPLICABLE TO
COMMON STOCK $ 43,760 $ (9) $ 29,520 $ (12,883) $ (30,868) $ 29,520
============ ============ ============ ============ ============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
TNP ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENTS OF RETAINED EARNINGS
For the Year Ended December 31, 1997
(Amounts in Thousands)
Texas-New TNP TNP Facility Consolidating TNP
Mexico Power Operating Enterprises, Works, Entries Enterprises,
Company Company Inc. Inc. Inc.
Consolidated Consolidated
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, 1996 $ 65,308 $ 992 $ 94,703 $ (3,097) $ (63,203) $ 94,703
Net income (loss) 43,918 (9) 29,520 (12,883) (30,868) 29,678
Dividends on preferred stock (158) (158)
Dividends on common stock (44,300) (13,158) 44,300 (13,158)
Retirement of preferred stock 13 13
------------ ------------ ------------ ------------ ------------ ------------
BALANCE AT DECEMBER 31, 1997 $ 64,768 $ 983 $ 111,078 $ (15,980) $ (49,771) $ 111,078
============ ============ ============ ============ ============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
TNP ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
December 31, 1997
(Amounts in Thousands)
Texas-New TNP TNP Facility Consolidating TNP
Mexico Power Operating Enterprises, Works, Entries Enterprises,
Company Company Inc. Inc. Inc.
Consolidated Consolidated
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
UTILITY PLANT $ 1,237,520 $ - $ 18 $ - $ - $ 1,237,538
Less: accumulated depreciation 314,270 314,270
------------ ------------ ------------ ------------ ------------ ------------
Net Utility Plant 923,250 - 18 - - 923,268
------------ ------------ ------------ ------------ ------------ ------------
INVESTMENT IN SUBSIDIARY COMPANIES - - 296,490 (296,490) -
OTHER PROPERTY AND INVESTMENTS,
at cost 214 1,264 2,846 1,380 5,704
CURRENT ASSETS: -
Cash and cash equivalents 2,772 160 12,775 170 15,877
Customer receivable 460 - 6,920 7,380
Other accounts receivable 1,882 - (6,286) 1,200 4,409 1,205
Other current assets 6,852 - 191 569 7,612
Deferred purchased power and
fuel costs 2,570 2,570
------------ ------------ ------------ ------------ ------------ ------------
Total current assets 14,536 160 6,680 8,859 4,409 34,644
------------ ------------ ------------ ------------ ------------ ------------
DEFERRED CHARGES 29,006 115 665 (1,476) 28,310
------------ ------------ ------------ ------------ ------------ ------------
$ 967,006 $ 1,539 $ 306,699 $ 10,239 $ (293,557) $ 991,926
============ ============ ============ ============ ============ ============
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common shareholder's equity:
Common stock $ 107 $ 100 $ 187,163 $ 1 $ (208) $ 187,163
Capital in excess of par value 222,146 400 23,965 (246,511) -
Retained earnings 64,768 983 111,078 (15,980) (49,771) 111,078
------------ ------------ ------------ ------------ ------------ ------------
Total common shareholder's
equity 287,021 1,483 298,241 7,986 (296,490) 298,241
Redeemable cumulative preferred
stock 3,240 3,240
Long-term debt, less current
maturities 477,900 141 - 478,041
------------ ------------ ------------ ------------ ------------ ------------
Total capitalization 768,161 1,483 298,241 8,127 (296,490) 779,522
------------ ------------ ------------ ------------ ------------ ------------
Current maturities of long-term debt 100 - 100
Accounts payable 24,859 31 2,676 2,854 (3,385) 27,035
Other current liabilities 47,471 25 (1,130) 2,142 6,318 54,826
------------ ------------ ------------ ------------ ------------ ------------
Total current liabilities 72,430 56 1,546 4,996 2,933 81,961
------------ ------------ ------------ ------------ ------------ ------------
REGULATORY TAX LIABILITIES 6,318 6,318
ACCUMULATED DEFERRED INCOME TAXES 81,085 7,049 (2,884) 85,250
ACCUMULATED DEFERRED ITC 21,286 (137) 21,149
DEFERRED CREDITS 17,726 - 17,726
------------ ------------ ------------ ------------ ------------ ------------
$ 967,006 $ 1,539 $ 306,699 $ 10,239 $ (293,557) $ 991,926
============ ============ =========== ============ ============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit B
TNP ENTERPRISES, INC. AND SUBSIDIARIES
Financial Data Schedule
For the Period Ending December 31, 1997
(Amounts in Thousands)
<S> <C>
Item No. Caption Heading Amount
- --------------- ------------------------- -------------------
1 Total Assets $ 991,926
2 Total Operating Revenues 585,234
3 Net Income (Loss) 29,678
</TABLE>
