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 December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 2-26983
THE PEOPLES GAS LIGHT AND COKE COMPANY
(Exact name of registrant as specified in its charter)
Illinois 36-1613900
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
24th Floor, 130 East Randolph Drive, Chicago, Illinois 60601-6207
(Address of principal executive offices) (Zip Code)
(312) 240-4000
(Registrant's telephone number, including area code)
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 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 t latest practicable date:
24,817,566 shares of Common Stock, without par value, outstanding
at January 31, 1998.
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
The Peoples Gas Light and Coke Company
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<CAPTION>
Three Months Ended Twelve Months Ended
December 31, December 31,
1997 1996 1997 1996
(Thousands of Dollars)
<S> <C> <C> <C> <C>
OPERATING REVENUES:
Gas sales $ 268,231 $ 297,213 $ 935,335 $ 941,049
Transportation 33,564 34,196 118,144 141,751
Other 5,171 5,070 16,492 15,627
Total Operating Revenues 306,966 336,479 1,069,971 1,098,427
OPERATING EXPENSES:
Gas costs 144,079 161,183 502,231 498,210
Operation 41,712 47,397 166,648 190,339
Maintenance 9,894 10,786 43,801 43,901
Depreciation and amortization 16,780 16,404 66,450 64,546
Taxes- Income 18,977 19,975 45,614 50,692
- State and local revenue 32,320 35,900 111,850 115,537
- Other 4,464 4,511 18,993 19,734
Total Operating Expenses 268,226 296,156 955,587 982,959
OPERATING INCOME 38,740 40,323 114,384 115,468
OTHER INCOME AND (DEDUCTIONS):
Interest income 214 244 4,123 1,983
Allowance for funds used during construction 236 27 476 51
Interest on long-term debt (7,777) (7,770) (31,101) (31,102)
Other interest expense (955) (696) (2,454) (3,212)
Income taxes (142) (72) (1,727) (5,147)
Miscellaneous - net 108 54 (288) 11,316
Total Other Income and Deductions (8,316) (8,213) (30,971) (26,111)
NET INCOME APPLICABLE
TO COMMON STOCK $ 30,424 $ 32,110 $ 83,413 $ 89,357
The Notes to Consolidated Financial Statements are an integral part of these statements.
</TABLE>
<TABLE>
The Peoples Gas Light and Coke Company
CONSOLIDATED BALANCE SHEETS
<CAPTION>
December 31, December 31,
1997 September 30, 1996
(Unaudited) 1997 (Unaudited)
(Thousands of Dollars)
PROPERTIES AND OTHER ASSETS
<S> <C> <C> <C>
CAPITAL INVESTMENTS:
Property, plant and equipment, at original cost $1,830,564 $ 1,819,567 $ 1,771,886
Less - Accumulated depreciation 623,906 614,224 583,109
Net property, plant and equipment 1,206,658 1,205,343 1,188,777
Other investments 5,406 5,470 5,797
Total Capital Investments - Net 1,212,064 1,210,813 1,194,574
CURRENT ASSETS:
Cash and cash equivalents 6,745 18,509 7,326
Temporary cash investments 500 15,500 500
Receivables -
Customers, net of allowance for uncollectible accounts
of $26,144, $28,959, and $26,503, respectively 116,343 67,330 121,568
Other 25,568 40,159 28,706
Accrued unbilled revenues 68,377 20,109 79,991
Materials and supplies, at average cost 14,739 13,225 13,107
Gas in storage, at last-in, first-out cost 65,089 67,536 69,836
Gas costs recoverable through rate adjustments 5,500 3,328 33,955
Regulatory assets 9,098 16,698 35,740
Prepayments 46,565 39,802 13,813
Total Current Assets 358,524 302,196 404,542
OTHER ASSETS:
Regulatory assets 28,743 28,914 33,348
Deferred charges 17,777 15,704 14,794
Total Other Assets 46,520 44,618 48,142
Total Properties and Other Assets $1,617,108 $ 1,557,627 $ 1,647,258
The Notes to Consolidated Financial Statements are an integral part of these statements.
</TABLE>
<TABLE>
The Peoples Gas Light and Coke Company
CONSOLIDATED BALANCE SHEETS
<CAPTION>
December 31, December 31,
1997 September 30, 1996
(Unaudited) 1997 (Unaudited)
(Thousands of Dollars)
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C>
CAPITALIZATION:
Common Stockholder's Equity:
Common stock, without par value -
Authorized 40,000,000 shares
Outstanding 24,817,566 shares $ 165,307 $ 165,307 $ 165,307
Retained earnings 423,707 409,662 417,832
Total Common Stockholder's Equity 589,014 574,969 583,139
Long-term debt, exclusive of sinking fund
payments and maturities due within one year 462,400 462,400 462,400
Total Capitalization 1,051,414 1,037,369 1,045,539
CURRENT LIABILITIES:
Interim loans 45,375 700 17,290
Accounts payable 111,868 113,502 171,798
Dividends payable on common stock 16,380 32,015 13,153
Customer gas service and credit deposits 40,938 39,753 35,552
Accrued taxes 47,133 19,056 66,497
Gas sales revenue refundable through rate adjustments - 14,484 12,384
Accrued interest 6,265 8,763 6,269
Temporary LIFO liquidation credit (230) - -
Total Current Liabilities 267,729 228,273 322,943
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes - primarily accelerated depreciation 234,575 229,225 215,462
Investment tax credits being amortized over
the average lives of related property 30,002 30,350 31,328
Other 33,388 32,410 31,986
Total Deferred Credits and Other Liabilities 297,965 291,985 278,776
Total Capitalization and Liabilities $1,617,108 $1,557,627 $1,647,258
The Notes to Consolidated Financial Statements are an integral part of these
statements.
</TABLE>
The Peoples Gas Light and Coke Company
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
December 31,
1997 1996
(Thousands of Dollars)
Operating Activities:
Net income $ 30,424 $ 32,110
Adjustments to reconcile net income to net cash:
Depreciation and amortization 16,780 16,404
Deferred income taxes and investment tax credits - net 4,558 1,406
Change in deferred credits and other liabilities 1,422 4,551
Change in other assets (3,306) 2,214
Change in current assets and liabilities:
Receivables - net (34,422) (55,077)
Accrued unbilled revenues (48,268) (54,457)
Materials and supplies (1,514) 911
Gas in storage 2,447 (13,960)
Gas costs recoverable (2,172) (16,535)
Regulatory assets 7,600 926
Prepayments (6,763) (1,916)
Accounts payable (1,634) 50,145
Customer gas service and credit deposits 1,186 (1,569)
Accrued taxes 28,077 35,255
Gas sales revenue refundable (14,484) 1,650
Accrued interest (2,498) (2,489)
Temporary LIFO liquidation credit (230) -
Net Cash Provided by (Used in) Operating Activities (22,797) (431)
Investing Activities:
Capital expenditures of subsidiaries - construction (16,589) (13,874)
Other assets (102) 508
Other capital investments 64 149
Other temporary cash investments 15,000 -
Net Cash Used in Investing Activities (1,627) (13,217)
Financing Activities:
Interim loans of subsidiaries - net 44,675 16,590
Dividends paid on common stock (32,015) (13,153)
Net Cash Provided by (Used in) Financing Activities 12,660 3,437
Net Increase (Decrease) in Cash and Cash Equivalents (11,764) (10,211)
Cash and Cash Equivalents at Beginning of Period 18,509 17,537
Cash and Cash Equivalents at End of Period $ 6,745 $ 7,326
The Notes to Consolidated Financial Statements are an integral part of these
statements.
The Peoples Gas Light and Coke Company
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying consolidated financial statements have been
prepared by The Peoples Gas Light and Coke Company (Company) in
conformity with the rules and regulations of the Securities and
Exchange Commission (SEC) and reflect all adjustments that are,
in the opinion of management, necessary to present fairly the
results for the interim periods herein and to prevent the
information from being misleading.
Certain footnote disclosures and other information, normally
included in financial statements prepared in accordance with
generally accepted accounting principles, have been condensed or
omitted from these interim financial statements, pursuant to SEC
rules and regulations. Therefore, the statements should be read
in conjunction with the consolidated financial statements and
related notes contained in the Company's Annual Report on Form 10-
K for the fiscal year ended September 30, 1997. Certain items
previously reported for the prior periods have been reclassified
to conform with the presentation in the current periods.
The business of the Company is influenced by seasonal weather
conditions because a large element of the Company's customer load
consists of gas used for space heating. Weather-related
deliveries can, therefore, have a significant positive or
negative impact on net income. Accordingly, the results of
operations for the interim periods presented are not indicative
of the results to be expected for all or any part of the balance
of the current fiscal year.
2. SIGNIFICANT ACCOUNTING POLICIES
2A Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
2B Revenue Recognition
Gas sales revenues are recorded on the accrual basis for all
gas delivered during the month, including an estimate for gas
delivered but unbilled at the end of each month.
2C Regulated Operations
The Company's utility operations are subject to regulation by
the Illinois Commerce Commission (Commission). Regulated
operations are accounted for in accordance with Statement of
Financial Accounting Standards (SFAS) No. 71, "Accounting for the
Effects of Certain Types of Regulation." This standard controls
the application of generally accepted accounting principles for
companies whose rates are determined by an independent regulator
such as the Commission. Regulatory assets represent certain
costs that are expected to be recovered from customers through
the ratemaking process. When incurred, such costs are deferred
as assets in the balance sheet and subsequently recorded as
expenses when those same amounts are reflected in rates.
2D Income Taxes
The Company follows the liability method of accounting for
deferred income taxes. Under the liability method, deferred
income taxes have been recorded using currently enacted tax rates
for the differences between the tax basis of assets and
liabilities and the basis reported in the financial statements.
Due to the effects of regulation on the Company, certain
adjustments made to deferred income taxes are, in turn, debited
or credited to regulatory assets or liabilities.
2E Statement of Cash Flows
For purposes of the balance sheet and the statement of cash
flows, the Company considers all short-term liquid investments
with maturities of three months or less to be cash equivalents.
Income taxes and interest paid (excluding capitalized
interest) were as follows:
For the three months
ended December 31, 1997 1996
(Thousands)
Income taxes paid $ 30 $ 2,928
Interest paid 10,578 10,742
2F Recovery of Gas
Under the tariffs of the Company, the difference for any month
between costs recoverable through the Gas Charge and revenues
billed to customers under the Gas Charge is refunded to or
recovered from customers. Consistent with these tariff
provisions, such difference for any month is recorded either as a
current liability or as a current asset (with a contra entry to
Gas Costs).
For each gas utility, the Commission conducts annual
proceedings regarding the reconciliation of revenues from the Gas
Charge and related costs incurred for gas. In such proceedings,
costs recovered by a utility through the Gas Charge are subject
to challenge. Such a proceeding regarding the Company for fiscal
year 1997 is currently pending before the Commission.
3. ENVIRONMENTAL MATTERS
The Company, its predecessors, and certain former affiliates
operated facilities in the past at multiple sites for the purpose
of manufacturing gas and storing manufactured gas (Manufactured
Gas Sites). In connection with manufacturing and storing gas,
various by-products and waste materials were produced, some of
which might have been disposed of rather than sold. Under
certain laws and regulations relating to the protection of the
environment, the Company might be required to undertake remedial
action with respect to some of these materials. Two of the
Manufactured Gas Sites are discussed in more detail below. The
Company, under the supervision of the Illinois Environmental
Protection Agency (IEPA), is conducting investigations of an
additional 27 Manufactured Gas Sites. These investigations may
require the Company to perform additional investigation and
remediation. The investigations are in a preliminary stage and
are expected to occur over an extended period of time.
The Company has observed what appear to be gas purification
wastes on a Manufactured Gas Site in Chicago, formerly called the
110th Street Station, and property contiguous thereto (110th
Street Station Site). The Company has fenced the 110th Street
Station Site and is conducting a study under the supervision of
the IEPA to determine the feasibility of a limited removal
action.
The current owner of a site in Chicago, formerly called Pitney
Court Station, filed suit against the Company in federal district
court under the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended. The suit
seeks recovery of the past and future costs of investigating and
remediating the site and an order directing the Company to
remediate the site. The Company is contesting this suit.
The Company is accruing and deferring the costs it incurs in
connection with all of the Manufactured Gas Sites, including
related legal expenses, pending recovery through rates or from
insurance carriers or other entities. At December 31, 1997, the
total of the costs deferred by the Company, net of recoveries and
amounts billed to other entities, was $10.6 million. This amount
includes an estimate of the costs of the investigations being
conducted under the supervision of the IEPA referred to above.
The amount also includes an estimate of the costs of remediation
at the 110th Street Station Site, at the minimum amount of the
current estimated range of such costs. The costs of remediation
at the other sites cannot be determined at this time. While the
Company intends to seek contribution from other entities for the
costs incurred at the sites, the full extent of such
contributions cannot be determined at this time.
The Company has filed suit against a number of insurance
carriers for the recovery of environmental costs relating to its
former manufactured gas operations. The suit asks the court to
declare that the insurers are liable under policies in effect
between 1937 and 1986 for costs incurred or to be incurred by the
Company in connection with three Manufactured Gas Sites in
Chicago. The Company is also asking the court to award damages
stemming from the insurers' breach of their contractual
obligation to defend and indemnify the Company against these
costs. At this time, management cannot determine the timing and
extent of the Company's recovery of costs from its insurance
carriers. Accordingly, the costs deferred at December 31, 1997
have not been reduced to reflect recoveries from insurance
carriers.
Costs incurred by the Company for environmental activities
relating to former manufactured gas operations will be recovered
from insurance carriers or other entities or through rates for
utility service. Accordingly, management believes that the costs
incurred by the Company in connection with former manufactured
gas operations will not have a material adverse effect on the
financial position or results of operations of the Company. The
Company is recovering the costs of environmental activities
relating to its former manufactured gas operations, including
carrying charges on the unrecovered balances, under a rate
mechanism approved by the Commission. At December 31, 1997, it
had recovered $5.8 million of such costs through rates.
4. LONG-TERM DEBT
Interest-Rate Adjustments
The rate of interest on the City of Joliet 1984 Series C
Bonds, which are secured by the Company's Adjustable-Rate First
Mortgage Bonds, Series W, is subject to adjustment annually on
October 1. Owners of the Series C Bonds have the right to tender
such bonds at par during a limited period prior to that date.
The Company is obligated to purchase any such bonds tendered if
they cannot be remarketed. All Series C Bonds that were tendered
prior to October 1, 1997, have been remarketed. The interest
rate on such bonds is 3.875 per cent for the period October 1,
1997, through September 30, 1998.
The rate of interest on the City of Chicago 1993 Series B
Bonds, which are secured by the Company's Adjustable-Rate First
Mortgage Bonds, Series EE, is subject to adjustment annually on
December 1. Owners of the Series B Bonds have the right to
tender such bonds at par during a limited period prior to that
date. The Company is obligated to purchase any such bonds
tendered if they cannot be remarketed. All Series B Bonds that
were tendered prior to December 1, 1997, have been remarketed.
The interest rate on such bonds is 3.90 per cent for the period
December 1, 1997, through November 30, 1998.
The Company classifies these adjustable-rate bonds as long-
term liabilities, since it would refinance them on a long-term
basis if they could not be remarketed. In order to ensure its
ability to do so, on February 1, 1994, the Company established a
$37.4 million three year line of credit with The Northern Trust
Company, which has since been extended to January 31, 2000.
Item 2. Management's Discussion and Analysis of Results of
Operations and Financial Condition
RESULTS OF OPERATIONS
Net Income
Net income applicable to common stock decreased $1.7 million,
to $30.4 million, for the three-months ended December 31, 1997,
due primarily to lower gas deliveries caused by warmer weather
and conservation. Increased depreciation and amortization
expense also contributed to the decline. These effects were
partially offset by decreased pension expense caused by changes
in settlement accounting attributed to employees choosing early
retirement and actuarial assumptions, a reduction in the
provision for uncollectible accounts, and lower group insurance
expense.
Net income applicable to common stock decreased $5.9 million,
to $83.4 million, for the 12-month period ending December 31, 1997, due
principally to lower gas deliveries due to warmer weather and conservation.
Also contributing was the prior period's one-time gain associated with
the expiration of gas storage contracts. Benefiting the current period
was the aforementioned reduction in pension expense, a tax accrual
adjustment, and lower interest expense as well as higher interest
income.
A summary of variations affecting income between periods is
presented below, with explanations of significant differences
following:
Three Months Ended 12 Months Ended
December 31, 1997 December 31, 1997
Increase/(Decrease) Increase/(Decrease)
from Prior Period from Prior Period
(Thousands of dollars)
Amount Per Cent Amount Per Cent
Net operating revenues (a) (8,829) (6.3) (28,790) (5.9)
Operation and maintenance expenses (6,577) (11.3) (23,791) (10.2)
Depreciation and amortization expense 376 2.3 1,904 2.9
Income taxes (998) (5.0) (5,078) (10.0)
Other income and deductions (103) 1.3 (4,860) 18.6
Net income applicable to common stock (1,686) (5.3) (5,944) (6.7)
(a) Operating revenues, net of gas costs and revenue taxes.
Net Operating Revenues
Gross revenues of the Company are affected by changes in the
unit cost of the Company's gas purchases and do not include the
cost of gas supplies for customers who purchase gas directly from
producers and marketers rather than from the Company. The direct
customer purchases have no effect on net income because the
Company provides transportation service for such gas volumes and
recovers margins similar to those applicable to conventional gas
sales. Changes in the unit cost of gas do not significantly
affect net income because the Company's tariffs provide for
dollar-for-dollar recovery of gas costs. (See Note 2F of the
Notes to Consolidated Financial Statements.) The Company's
tariffs also provide for dollar-for-dollar recovery of the cost
of revenue taxes imposed by the State and City.
Since income is not significantly affected by changes in
revenue from customers' gas purchases from producers or marketers
rather than from the Company, changes in gas costs, or changes in
revenue taxes, the discussion below pertains to "net operating
revenues" (operating revenues, net of gas costs and revenue
taxes). The Company considers net operating revenues to be a
more pertinent measure of operating results than gross revenues.
Net operating revenues declined $8.8 million, to $130.6
million, for the current three-month period, due largely to
reduced gas deliveries caused by weather that was eight percent
warmer and by conservation.
Net operating revenues decreased $28.8 million, to $455.9
million, for the 12-month period, due to a decline in gas
deliveries attributable to weather that was six and one-half percent warmer
and conservation.
See Other Matters - Operating Statistics for details of
selected financial and operating information by gas service
classification.
Operation and Maintenance Expenses
Operation and maintenance expenses decreased $6.6 million, to
$51.6 million, for the current three-month period, due largely to
a $4.4 million decrease in pension expense, caused by changes in
settlement accounting attributed to employees choosing early
retirement and actuarial assumptions, and to a decrease in
environmental costs recovered through rates ($1.1 million). In
addition, the provision for uncollectible accounts decreased
$741,000 and costs associated with operating and maintaining the
Company's distribution system decreased by $705,000. Partially
offsetting these reductions was an increase in costs associated
with liability insurance premiums and claim settlements
($276,000).
Operation and maintenance expenses decreased $23.8 million, to
$210.4 million, for the current 12-month period, due chiefly to a
$21.0 million decrease in the aforementioned pension expense and
a $2.5 million decrease in the provision for uncollectible
accounts. Also, affecting the period were decreases in
environmental costs of $1.7 million and reductions in costs
associated with liability insurance premiums and claim
settlements of $1.5 million. These reductions were offset, in
part, by an increase in outside services of $3.1 million.
Depreciation and Amortization Expense
Depreciation and amortization expense increased $376,000, to
$16.8 million, and $1.9 million, to $66.5 million, for the
current three- and 12-month periods, respectively, due mainly to
net property additions.
Income Taxes
Income taxes, exclusive of taxes in other income and
deductions, decreased $998,000, to $19.0 million, and $5.1
million, to $45.6 million, for the current three- and 12-month
periods, respectively, due primarily to lower pre-tax income.
Also, affecting the most recent 12-month period was a tax accrual
adjustment.
Other Income and Deductions
Other income and deductions increased $103,000 for the current
three-month period due mainly to increased interest expense on
notes payable and on amounts refundable to customers. Partially
offsetting these effects was an increase in the allowance for
funds used during construction.
Other income and deductions increased $4.9 million for the
current 12-month period, due principally to the prior period's
gain associated with the expiration of natural gas storage
contracts. Partially offsetting this impact was a decrease in
interest expense on amounts refundable to customers.
Other Matters
Effect of Weather. Weather variations affect the volumes of gas
delivered for heating purposes and, therefore, can have a
significant positive or negative impact on net income, cash
position, and coverage ratios.
Large Volume Gas Service Agreements. The Company has entered
into gas service contracts with certain large volume customers
under a specific rate schedule approved by the Commission. These
contracts were negotiated to overcome the potential threat of
bypassing the utility's distribution system. The impact on the
net income of the Company as a result of these contracts is not
material.
Small-Volume Transportation Service. On June 25, 1997, the
Commission allowed Riders SVT and AGG to go into effect for the
Company, thus initiating a two year pilot program designed to
provide transportation service to certain small-volume industrial
and commercial customers of the utility as well as to some of its
large residential customers. The Commission also ordered a
concurrent investigation of the program to ascertain if program
adjustments or revisions are required.
Operating Statistics. The following table represents gas
distribution margin components:
Three Months Ended Twelve Months Ended
December 31, December 31,
1997 1996 1997 1996
Operating Revenues (thousands):
Gas sales
Residential $ 229,655 $ 251,788 $ 790,096 $ 796,537
Commercial 32,429 38,438 121,470 122,060
Industrial 6,147 6,987 23,769 22,452
268,231 297,213 935,335 941,049
Transportation
Residential 10,514 10,777 33,760 46,427
Commercial 12,792 13,197 42,234 53,420
Industrial 6,594 7,768 24,663 35,387
Contract Pooling 3,231 2,054 17,054 6,117
Other 433 400 433 400
33,564 34,196 118,144 141,751
Other 5,171 5,070 16,492 15,627
Total Operating Revenues 306,966 336,479 1,069,971 1,098,427
Less- Gas Costs 144,079 161,183 502,231 498,210
- Revenues Taxes 32,320 35,900 111,850 115,537
Net Operating Revenues $ 130,567 $ 139,396 $ 455,890 $ 484,680
Deliveries (MDth):
Gas Sales
Residential 35,416 39,644 117,031 127,631
Commercial 5,461 6,610 20,313 21,804
Industrial 1,124 1,307 4,339 4,532
42,001 47,561 141,683 153,967
Transportation (a)
Residential 8,009 8,245 24,917 27,291
Commercial 10,682 11,448 35,778 39,029
Industrial 8,841 9,716 31,635 37,507
Other - - 234 -
27,532 29,409 92,564 103,827
Total Gas Sales and Transportation 69,533 76,970 234,247 257,794
Margin per Dth delivered $ 1.88 $ 1.81 $ 1.95 $ 1.88
(a)Volumes associated with contract pooling revenues are
included in their respective customer classes.
LIQUIDITY AND CAPITAL RESOURCES
Environmental Matters. The Company is conducting environmental
investigations and work at certain sites that were the location
of former manufactured gas operations. (See Note 3 of the Notes
to Consolidated Financial Statements.)
Credit Lines. The Company has lines of credit totaling
$129.4 million of which North Shore Gas may borrow up to
$30 million. At December 31, 1997, the Company and North Shore
Gas had unused credit available from banks of $68.8 million.
Interest Coverage. The fixed charges coverage ratios for the
Company for the 12 months ended December 31, 1997, and for fiscal
1997 and 1996 were 4.90, 5.01, and 4.84, respectively.
Year 2000. The Company is modifying all of its computer programs
to be year 2000 compatible. The Company does not believe that
the amount of expenditures it will incur in connection with its
year 2000 modification will have a material adverse effect on the
financial position or results of operations of the Company.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
See Note 3 of the Notes to Consolidated Financial Statements
for a discussion pertaining to environmental matters.
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
Exhibit
Number Description of Document
27 Financial Data Schedule
b. Reports on Form 8-K filed during the quarter ended
December 31, 1997
None
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, as amended, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.
The Peoples Gas Light and
Coke Company
(Registrant)
February 11, 1998 By: /s/ K. S. BALASKOVITS
(Date) K. S. Balaskovits
Vice President and Controller
(Same as above)
Principal Accounting Officer
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM CONSOLIDATED STATMENTS
OF INCOME, CONSOLIDATED BALANCE SHEETS, AND CONSOLIDATED STATEMENTS OF CASH
FLOWS, AND QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> DEC-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 1206658
<OTHER-PROPERTY-AND-INVEST> 5406
<TOTAL-CURRENT-ASSETS> 358524
<TOTAL-DEFERRED-CHARGES> 17777
<OTHER-ASSETS> 28743
<TOTAL-ASSETS> 1617108
<COMMON> 165307
<CAPITAL-SURPLUS-PAID-IN> 0
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0
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0
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0
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