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 Nature
Name Organization of Business
------ ------------ -------------------
TNP Enterprises, Inc. Texas P.O. Box 2943
Fort Worth, TX 76113
Holding Company
Texas-New Mexico Power Company Texas P.O. Box 2943
Fort Worth, TX 76113
Electric Utility/
Holding Company
Facility Works, Inc. Texas P.O. Box 2943
Fort Worth, TX 76113
General purpose corporation
TNP Operating Company Texas P.O. Box 2943
Fort Worth, TX 76113
General purpose corporation
(presently inactive)
Texas Generating Company* Texas P.O. Box 2943
Fort Worth, TX 76113
Special purpose corporation
Texas Generating Company II* Texas P.O. Box 2943
Fort Worth, TX 76113
Special purpose corporation
* Wholly-owned subsidiary of Texas-New Mexico Power Company
2. The 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 of its principal operating subsidiary, TNMP, an electric public
utility corporation. Within Texas, TNMP is a regulated public utility
engaged in the generation, supply, transmission, distribution and sale
of electric energy. TNMP has three operating regions within Texas. The
largest municipalities within Texas that TNMP serves are Texas City,
Lewisville, and League City. The regions located in Texas are:
- 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.
TNMP and its subsidiaries own generating facilities located in
Robertson County, Texas, which is in the central part of Texas. The
generating facilities consist of two 150 MW, circulating fluidized bed
units, and currently use lignite as the fuel source. TNMP also has a
transmission line connecting these units to a major transmission grid
in Texas. TNMP sells electricity from these units solely within Texas.
Neither the claimant nor any of its subsidiaries own transmission lines
that deliver or receive electricity at the border of Texas.
As described above, a portion of TNMP's Mountain Region serves
southern New Mexico. Within New Mexico, TNMP is a regulated public
utility engaged in the supply, transmission, distribution and sale of
electric energy. TNMP owns transmission and distribution lines within
New Mexico.
3. Certain information, for the calendar year 1998 with
respect to claimant and its subsidiaries, is provided in the following chart:
(a) MWH sold:
Retail 9,414,540
Wholesale 428,884
------------------
Total 9,843,424
===================
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 1,677,877 MWH sold in New Mexico.
(c) MWH sold at wholesale in (a) above include 6,049 MWH sold in New Mexico.
(d) MWH purchased:
Texas 6,459,989
New Mexico 1,796,868
------------------
Total 8,256,857
===================
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 1998, together with a
consolidating balance sheet and consolidating statements of retained earnings of
claimant and its subsidiaries as of the close of the 1998 calendar year, are
presented.
Exhibit B. A Financial Data Schedule for the period ended
December 31, 1998, including Item Nos. 1, 2, and 3.
<PAGE>
The above named claimant has caused this statement to be duly executed
on its behalf by its authorized officer on this 24th day of February, 1999.
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
TNP Enterprises, Inc.
P. O. Box 2943,
Fort Worth, Texas 76113
<PAGE>
<TABLE>
Exhibit A
<CAPTION>
TNP ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENTS OF INCOME (LOSS)
For the Year Ended December 31, 1998
(Amounts in Thousands)
Texas-New TNP
Mexico Power TNP TNP Enterprises,
Company Operating Enterprises Facility Works, Consolidating Inc.
Consolidated Company Inc. Inc. Entries Consolidated
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $ 586,445 $ 48 $ - $ - $ - $ 586,493
------------ ------------ -------------- ------------ ----------- ------------
OPERATING EXPENSES:
Purchased power and 316,911 316,911
Other operating and maintenance 91,171 19 3,977 - 95,167
Depreciation of utility plant 38,054 2 - 38,056
Taxes other than income taxes 36,298 34 (318) - 36,014
Income taxes 16,863 9 (1,391) - 15,481
------------ ------------ -------------- ------------ ----------- ------------
Total Operating Expenses 499,297 64 2,268 - - 501,629
------------ ------------ -------------- ------------ ----------- ------------
NET OPERATING INCOME 87,148 (16) (2,268) - - 84,864
------------ ------------ -------------- ------------ ----------- ------------
OTHER INCOME (LOSS):
Other income and deductions, net 952 32 21,774 - (21,477) 1,281
Income taxes (52) - (73) - (125)
------------ ------------ -------------- ------------ ----------- ------------
Other income (loss), net of
taxes 900 32 21,701 - (21,477) 1,156
------------ ------------ -------------- ------------ ----------- ------------
INCOME (LOSS) BEFORE INTEREST
CHARGES 88,048 16 19,433 - (21,477) 86,020
Interest charges 53,727 159 - 53,886
------------ ------------ -------------- ------------ ----------- ------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 34,321 16 19,274 - (21,477) 32,134
Loss from discontinued nonregulated
operations, net of taxes 12,710 12,710
------------ ------------ -------------- ------------ ----------- ------------
NET INCOME (LOSS) 34,321 16 19,274 (12,710) (21,477) 19,424
Dividends on preferred stock 150 150
------------ ------------ -------------- ------------ ----------- ------------
INCOME (LOSS) APPLICABLE TO
COMMON STOCK $ 34,171 $ 16 $ 19,274 $ (12,710) $ (21,477) $ 19,274
============ ============ ============== ============ =========== ============
</TABLE>
<PAGE>
<TABLE>
Exhibit A
<CAPTION>
TNP ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENTS OF RETAINED EARNINGS
For the Year Ended December 31, 1998
(Amounts in Thousands)
Texas-New TNP
Mexico Power TNP TNP Enterprises,
Company Operating Enterprises, Facility Works, Consolidating Inc.
Consolidated Company Inc. Inc. Entries Consolidated
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, 1997 $ 64,768 $ 983 $ 111,078 $ (15,979) $ (49,772) $ 111,078
Net income (loss) 34,321 16 19,274 (12,710) (21,477) 19,424
Dividends on preferred stock (150) (150)
Dividends on common stock (19,099) (14,579) 19,099 (14,579)
Retirement of preferred stock 3 3
BALANCE AT DECEMBER 31, 1998 $ 79,840 $ 999 $ 115,776 $ (28,689) $ (52,150) $ 115,776
============= ============= ============== ============= ============== ===============
</TABLE>
<PAGE>
<TABLE>
Exhibit A
<CAPTION>
TNP ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
December 31, 1998
(Amounts in Thousands)
Texas-New TNP
Mexico Power TNP TNP Enterprises,
Company Operating Enterprises, Facility Works, Consolidating Inc.
Consolidated Company Inc. Inc. Entries Consolidated
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
UTILITY PLANT $ 1,266,393 $ - $ 48 $ - $ - $ 1,266,441
Less: accumulated depreciation 343,562 343,562
-------------- ----------- ------------- ----------- -------------- -----------
Net Utility Plant 922,831 - 48 - - 922,879
-------------- ----------- ------------- ----------- -------------- -----------
INVESTMENT IN SUBSIDIARY COMPANIES - 306,406 (306,406) -
OTHER PROPERTY AND INVESTMENTS,
at cost 2,116 962 6,602 704 10,384
CURRENT ASSETS:
Cash and cash equivalents 7,977 487 2,706 1,047 12,217
Accounts receivable 923 - (528) 5,136 424 5,955
Other current assets 9,337 - 3,194 (649) 11,882
Deferred purchased power and fuel costs 1,676 1,676
-------------- ----------- ------------- ----------- -------------- -----------
Total current assets 19,913 487 2,178 9,377 (225) 31,730
-------------- ----------- ------------- ----------- -------------- -----------
DEFERRED CHARGES 28,706 115 (49) - 28,772
-------------- ----------- ------------- ----------- -------------- -----------
$ 973,566 $ 1,564 $ 315,185 $ 10,081 $ (306,631) $ 993,765
============== =========== ============= =========== ============== ===========
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common shareholder's equity:
Common stock $ 107 $ 100 $ 192,518 $ 1 $ (208) $ 192,518
Capital in excess of par value 222,149 400 - 31,499 (254,048) -
Retained earnings 79,840 999 115,776 (28,689) (52,150) 115,776
-------------- ----------- ------------- ----------- -------------- -----------
Total common shareholder' 302,096 1,499 308,294 2,811 (306,406) 308,294
Redeemable cumulative preferred stock 3,060 3,060
Long-term debt, less current
maturities 450,000 9,000 - - 459,000
-------------- ----------- ------------- ----------- -------------- -----------
Total capitalization 755,156 1,499 317,294 2,811 (306,406) 770,354
-------------- ----------- ------------- ----------- -------------- -----------
CURRENT LIABILITIES:
Current maturities of long-term debt - - -
Accounts payable 26,888 31 182 1,046 (135) 28,012
Other current liabilities 57,758 34 (4,835) 6,224 (90) 59,091
-------------- ----------- ------------- ----------- -------------- -----------
Total current liabilities 84,646 65 (4,653) 7,270 (225) 87,103
-------------- ----------- ------------- ----------- -------------- -----------
REGULATORY TAX LIABILITIES 957 957
ACCUMULATED DEFERRED INCOME TAXES 93,378 3,968 97,346
ACCUMULATED DEFERRED ITC 22,729 (1,813) 20,916
DEFERRED CREDITS 16,700 389 17,089
-------------- ----------- ------------- ----------- -------------- -----------
$ 973,566 $ 1,564 $ 315,185 $ 10,081 $ (306,631) $ 993,765
============== =========== ============= =========== ============== ===========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> OPUR3
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 993,765
<TOTAL-OPERATING-REVENUES> 586,493
<NET-INCOME> 19,424
</TABLE>
