UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM U-3A-2
DECEMBER 31, 1996
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.
IES INDUSTRIES 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, and
submits the following information:
1. IES Industries Inc. (Industries) - Organized as a holding
company. Incorporated in Iowa. Located in Cedar Rapids,
Iowa.
The following companies are wholly-owned subsidiaries of
Industries:
IES Utilities Inc. (Utilities) - Organized as a public utility
to engage in the generation, transmission, distribution and
sale of electric energy, the purchase, distribution and sale
of natural gas and to provide steam for industrial and heating
purposes. Incorporated in Iowa. Located in Cedar Rapids,
Iowa.
IES Diversified Inc. (Diversified) - Organized as a holding
company for Industries' diversified businesses. At December
31, 1996, direct subsidiaries, all of which are wholly-owned,
include IES Transportation Inc., IES Energy Inc., IES
Investments Inc. and IES International Inc. Incorporated in
Iowa. Located in Cedar Rapids, Iowa.
The following companies are subsidiaries of Utilities or one
of its subsidiaries:
IES Ventures Inc. (Ventures) - Organized as a holding company
for non-utility investments. A wholly-owned subsidiary of
Utilities. Incorporated in Iowa. Located in Cedar Rapids,
Iowa.
Aqua Ventures L.C. (Aqua Ventures) - Organized as an
aquaculture facility to raise fish for human consumption.
Ventures has a 35% equity investment as of December 31, 1996.
Incorporated in Iowa. Located in Cedar Rapids, Iowa.
IES Midland Development Inc. (Midland) - Organized to own and
operate a landfill in Ottumwa, Iowa. A wholly-owned
subsidiary of Ventures. Incorporated in Iowa. Located in
Cedar Rapids, Iowa.
The following companies are subsidiaries of Diversified or one
of its subsidiaries:
IES Transportation Inc. (IES Transportation) - Organized as a
holding company for transportation industry investments of
Industries. Incorporated in Iowa. Located in Cedar Rapids,
Iowa.
Cedar Rapids and Iowa City Railway Company (CRANDIC) -
Organized as a railway. A wholly-owned subsidiary of IES
Transportation. Incorporated in Iowa. Located in Cedar
Rapids, Iowa.
Heartland Rail Corporation (Heartland) - Organized to lease
rail lines and right-of-ways. CRANDIC has a 33.8% equity
investment as of December 31, 1996. Incorporated in Iowa.
Located in Des Moines, Iowa.
IEI Barge Services, Inc. (IEI Barge) - Organized to provide
barge terminal and hauling service on the Mississippi River.
IES Transportation has a 75.2% equity investment as of
December 31, 1996. Incorporated in Iowa. Located in East
Dubuque, Illinois.
IES Transfer Services Inc. (Transfer Services) - Organized as
a storage and transloading facility. A wholly-owned
subsidiary of IES Transportation. Incorporated in Iowa.
Located in Cedar Rapids, Iowa.
Iowa Northern Railway Company (Iowa Northern) - Organized as a
railway. During the fourth quarter of 1994, IES
Transportation's investment in Iowa Northern was converted to
non-voting preferred stock. Incorporated in Iowa. Located in
Greene, Iowa.
IES Energy Inc. (IES Energy) - Organized as a holding company
for non-regulated domestic energy industry investments of
Industries. Incorporated in Iowa. Located in Cedar Rapids,
Iowa.
Industrial Energy Applications, Inc. (IEA) - Organized to
provide commodities-based and facilities-based energy services
for customers, including purchasing energy, standby
generation, cogeneration, steam production, propane air
systems and pipeline bypass. A wholly-owned subsidiary of IES
Energy. Incorporated in Iowa. Located in Cedar Rapids, Iowa.
Industrial Energy Applications Delaware Inc. (IEAD) -
Organized to be the limited partner in a gas gathering and
pipeline system. A wholly-owned subsidiary of IEA.
Incorporated in Delaware. Located in Cedar Rapids, Iowa.
IEA-HES L.L.C. - Organized for natural gas marketing and power
project development businesses of IEA. IEA has a 50% equity
investment as of December 31, 1996. Incorporated in Iowa.
Located in Cedar Rapids, Iowa.
Whiting Petroleum Corporation (Whiting Petroleum) - Organized
to purchase, develop and produce crude oil and natural gas, in
part through the formation and operation of limited
partnerships. A wholly-owned subsidiary of IES Energy.
Incorporated in Delaware. Located in Denver, Colorado.
Whiting Programs, Inc. (Whiting Programs) - Organized to be
the general partner in several limited partnerships formed to
purchase, develop and produce crude oil and natural gas in the
United States. A wholly-owned subsidiary of Whiting
Petroleum. Incorporated in Delaware. Located in Denver,
Colorado.
WOC Acquisition Company (WOC Acquisition) - Organized to
purchase, develop and produce crude oil and natural gas in the
United States until it was dissolved June 19, 1996.
WOK Acquisition Company (WOK Acquisition) - Organized to
purchase, develop and produce crude oil and natural gas in the
United States. A wholly-owned subsidiary of Whiting
Petroleum. Incorporated in Delaware. Located in Denver,
Colorado.
Ely, Inc. - Ely, Inc. has no significant assets other than
cash. IES Energy has a 69.4% equity investment as of
December 31, 1996. Incorporated in Iowa. Located in Cedar
Rapids, Iowa.
IES Investments Inc. (IES Investments) - Organized as a
holding company for miscellaneous investments, primarily
related to real estate, of Industries. Incorporated in Iowa.
Located in Cedar Rapids, Iowa.
Iowa Land and Building Company (ILBC) - Organized as a real
estate holding company. A wholly-owned subsidiary of IES
Investments. Incorporated in Iowa. Located in Cedar Rapids,
Iowa.
2001 Development Corporation (2001) - Organized to promote the
economic development of downtown Cedar Rapids, Iowa, through
real estate improvements. IES Investments has a 54.6% equity
investment as of December 31, 1996. Incorporated in Iowa.
Located in Cedar Rapids, Iowa.
2002 Development Corporation (2002) - Organized as a real
estate development company to develop specific property in
downtown Cedar Rapids, Iowa. A wholly-owned subsidiary of
2001. Incorporated in Iowa. Located in Cedar Rapids, Iowa.
Center Place Limited (Center Place) - Organized as a limited
partnership to construct and operate multi-family rental
apartments in downtown Cedar Rapids, Iowa. IES Investments
has a 28.6% equity investment and 2001 has a 35.7% equity
investment, both as of December 31, 1996. The partnership is
organized in Iowa and located in Iowa City, Iowa.
2060 Partnership (2060) - Organized as a partnership to
develop real estate. 2001 has an 80% equity investment as of
December 31, 1996. The partnership is organized in Iowa and
located in Cedar Rapids, Iowa.
Prairie Ridge Business Park L.C. (Prairie Ridge) - Organized
to develop a business park in Cedar Rapids, Iowa. ILBC has
a 70% equity investment as of December 31, 1996.
Incorporated in Iowa. Located in Cedar Rapids, Iowa.
IES Investco Inc. (Investco) - Organized as a holding company
for certain equity investments. A wholly-owned subsidiary of
IES Investments. Incorporated in Iowa. Located in Cedar
Rapids, Iowa.
Village Lakeshares, Inc. (VLI) - Organized as a holding
company for resort properties. A wholly-owned subsidiary of
IES Investments. Incorporated in Iowa. Located in Cedar
Rapids, Iowa.
Village Lakeshares L.P. (Lakeshares) - Organized as a limited
partnership to manage and sell resort properties. IES
Investments has a 32.9% equity investment and VLI has a 67.1%
equity investment, both as of December 31, 1996. The
partnership is organized in Iowa and located in Spirit Lake,
Iowa.
McLeod, Inc. (McLeod) - Organized as a holding company for
various telecommunication businesses. At December 31, 1996,
IES Investments has an equity investment of less than 20%
voting interest. Incorporated in Delaware. Located in Cedar
Rapids, Iowa.
IES International Inc. (IES International) - Organized as a
holding company for international investments of Industries.
Incorporated in Iowa. Located in Cedar Rapids, Iowa.
IES New Zealand Limited (IES New Zealand) - Organized as a
holding company for IES ownership interests in two New Zealand
utility companies. A wholly-owned subsidiary of IES
International. Incorporated in New Zealand. Located in
Auckland, New Zealand.
Interstate Energy Corporation Pte Ltd. (PTE) - Organized as a
holding company for Chinese investments of Industries. A
wholly-owned subsidiary of IES International. Incorporated
and located in Singapore.
JIES Heat and Power Ltd. (JIES) - Organized as a limited
liability joint venture of PTE and Jiaxing Heat & Power Plant.
PTE has a 50% equity investment as of December 31, 1996.
Incorporated in China. Located in Jiaxing, China.
2. Industries is a holding company and has no significant
properties other than common stock of affiliates, temporary
cash investments and cash surrender values of corporate life
insurance policies.
On November 10, 1995, Industries, WPL Holdings, Inc. (WPLH)
and Interstate Power Company (IPC) entered into an Agreement
and Plan of Merger, as amended (Merger Agreement), providing
for: a) IPC becoming a wholly-owned subsidiary of WPLH, and b)
the merger of Industries with and into WPLH, which merger will
result in the combination of Industries and WPLH as a single
holding company (collectively, the Proposed Merger). The new
holding company will be named Interstate Energy Corporation
(Interstate Energy) and Industries will cease to exist. The
Proposed Merger, which will be accounted for as a pooling of
interests and is intended to be tax-free for federal income
tax purposes, has been approved by the respective Boards of
Directors and shareholders. It is still subject to approval
by several federal and state regulatory agencies. The
companies expect to receive such regulatory approvals by the
end of the third quarter of 1997. Interstate Energy will be
the parent company of Utilities, Wisconsin Power and Light
Company (WPLH's utility subsidiary), and IPC and will be
registered under the Public Utility Holding Company Act of
1935, as amended (1935 Act).
Utilities -
Utilities is a public utility subsidiary of Industries.
Utilities is engaged in the generation, transmission,
distribution and sale of electric energy, the purchase,
distribution and sale of natural gas and to provide steam for
industrial and heating purposes. Utilities' operations are
discussed below.
Electric Operations:
Utilities' principal electric generating stations at December 31,
1996, are as follows:
<TABLE>
<CAPTION>
Name and Location Major Fuel Minimum Net Kilowatts Accredited
of Station Type Generating Capability
<S> <C> <C> <C>
Duane Arnold Energy Center, Palo, Iowa Nuclear 364,000 (1)
Ottumwa Generating Station, Ottumwa, Iowa Coal 343,440 (2)
Prairie Creek Station, Cedar Rapids, Iowa Coal 205,500
Sutherland Station, Marshalltown, Iowa Coal 143,000
Sixth Street Station, Cedar Rapids, Iowa Coal 65,000
Burlington Generating Station, Burlington, Iowa Coal 211,800
George Neal Unit 3, Sioux City, Iowa Coal 144,200 (3)
Total Coal 1,112,940
Peaking Turbines, Marshalltown, Iowa Oil 162,500
Centerville Combustion Turbines, Centerville, Iowa Oil 48,600
Diesel Stations, all in Iowa Oil 12,200
Total Oil 223,300
Grinnell Station, Grinnell, Iowa Gas 45,300
Agency Street Combustion Turbines,
West Burlington, Iowa Gas 57,700
Burlington Combustion Turbines, Burlington, Iowa Gas 63,100 (4)
Red Cedar Combustion Turbines, Cedar Rapids, Iowa Gas 18,800 (5)
Total Gas 184,900
Total generating capability 1,885,140
</TABLE>
(1) Represents Utilities' 70% ownership interest in this 520,000
Kw generating station. The plant is operated by Utilities.
(2) Represents Utilities' 48% ownership interest in this 715,500
Kw generating station. The plant is operated by Utilities.
(3) Represents Utilities' 28% ownership interest in this 515,000
Kw generating station which is operated by an unaffiliated
utility.
(4) Burlington Combustion Turbine Unit 3 became operational June
28, 1996.
(5) Red Cedar Cogeneration Station became operational December 13,
1996.
Utilities has entered into purchased power capacity and coal
contracts and its minimum commitments are as follows (dollars and
tons in thousands):
Purchased Power Coal
Dollars Mw's Dollars Tons
1997 $ 11,175 69 - 144 $ 68,323 4,472
1998 3,415 9 - 109 17,250 886
1999 3,283 1 - 101 17,509 874
2000 283 1 15,696 762
2001 283 1 15,913 751
The Company has several purchase power contracts for the annual six-
month summer season and thus the minimum and maximum of the noted
range represent the power purchased during the winter and summer
seasons, respectively. The Company expects to supplement its coal
contracts with spot market purchases to fulfill its future fossil
fuel needs.
At December 31, 1996, the transmission lines of Utilities,
operating from 34,000 to 345,000 volts, approximated 4,436 circuit
miles (primarily all located in Iowa). Utilities owned 108
transmission substations (all located in Iowa) with a total
installed capacity of 8,647 MVa and 468 distribution substations
(all located in Iowa) with a total installed capacity of 2,626 MVa.
Utilities' electric facilities are interconnected with certain Iowa
and neighboring utilities. Also, Utilities is a member of the
Mid-Continent Area Power Pool (MAPP). This pool is comprised of 18
utilities which are Transmission Owning Members (TOM's) and 58
energy-related companies providing services in the upper midwest
region of the United States, and operates pursuant to an agreement
which provides for the interchange of electric energy, the sharing
of responsibilities for production capacity and reserve and the
supply of electric energy.
Utilities and its predominant business, electric energy generation,
transmission and distribution, are in a period of fundamental
change in the manner in which customers obtain, and energy
suppliers provide, energy services. As legislative, regulatory,
economic and technological changes occur, electric utilities are
faced with increasing pressure to become more competitive. Such
competitive pressures could result in loss of customers and an
incurrence of stranded costs (i.e., the cost of assets rendered
unrecoverable as the result of competitive pricing). To the extent
stranded costs cannot be recovered from customers, they would be
borne by security holders.
The National Energy Policy Act of 1992 addresses several matters
designed to promote competition in the electric wholesale power
generation market. In April 1996, the Federal Energy Regulatory
Commission (FERC) issued final rules (FERC Orders 888 and 889),
largely confirming earlier proposals, requiring electric utilities
to open their transmission lines to other wholesale buyers and
sellers of electricity. The rules became effective on July 9,
1996.
FERC does not have jurisdiction over the retail jurisdiction, and
thus the final FERC rules do not provide for the recovery of
stranded costs resulting from retail competition. The various
states retain jurisdiction over the question of whether to permit
retail competition. The Iowa Utilities Board (IUB) is currently
reviewing the possibility of retail competition and restructuring
the electric utility industry in Iowa. The Company cannot predict
the long-term consequences of these issues on its results of
operations.
Gas Operations:
With the advent of FERC Order 636 (Order 636), issued in 1992, the
nature of Utilities' gas supply portfolio has changed. Order 636,
among other things, eliminated the interstate pipelines' obligation
to serve and now requires Utilities to purchase virtually 100% of
its gas supply requirements from non-pipeline suppliers. Utilities
has enhanced access to competitively priced gas supply and more
flexible transportation services as a result of Order 636.
However, under Order 636, Utilities is required to pay certain
transition costs incurred and billed by its pipeline suppliers.
Utilities began paying the transition costs in 1993 and at December
31, 1996, has recorded a liability of $4.2 million for those
transition costs that have been incurred, but not yet billed, by
the pipelines to date, including $2.1 million expected to be billed
through 1997. Utilities is currently recovering the transition
costs from its customers through its Purchased Gas Adjustment
Clauses as such costs are billed by the pipelines. Transition
costs, in addition to the recorded liability, that may ultimately
be charged to Utilities could approximate $3.8 million. The
ultimate level of costs to be billed to Utilities depends on the
pipelines' future filings with the FERC and other future events,
including the market price of natural gas. However, Utilities
believes any transition costs that the FERC would allow the
pipelines to collect from Utilities would be recovered from its
customers, based upon regulatory treatment of these costs currently
and similar past costs by the Iowa Utilities Board (IUB).
Accordingly, regulatory assets, in amounts corresponding to the
recorded liabilities, have been recorded to reflect the anticipated
recovery.
Contracts with the pipelines subsequent to Order 636 are comprised
primarily of firm transportation, firm storage and no-notice
service. Firm transportation contracts grant Utilities access to
firm pipeline capacity which is used to transport gas supplies from
non-pipeline suppliers on peak day. Firm storage service allows
Utilities to purchase gas during off-peak periods and place this
gas in an account with the pipelines. When the gas is needed for
peak day deliveries, Utilities requests and the pipelines deliver
the gas back on a firm basis. No-notice service grants Utilities
the right to take more or less gas than is actually scheduled up to
the level of no-notice service. No-notice service takes the form
of transportation balancing or storage service depending on the
pipeline.
Utilities' portfolio of firm transportation, firm storage and no-
notice service from pipelines is as follows:
Firm Firm
Transportation Storage No-Notice
Northern:
Volume (Dekatherm/day) 142,996 48,218 10,000
Expiration date 10/31/97 10/31/97 10/31/97
Natural:
Volume (Dekatherm/day) 28,605 34,014 996
Expiration date 11/30/2000 11/30/98 11/30/98
ANR:
Volume (Dekatherm/day) 60,737 19,180 5,000
Expiration date 10/31/2003 10/31/2003 10/31/2003
In addition to firm storage with pipelines, Utilities also
contracts for firm storage from Llano, Inc. This contract calls for
peak day deliveries of 18,667 Dekatherm(Dth)/day and expires May
31, 1997.
Gas supply is purchased from a variety of non-pipeline suppliers
located in the United States and Canada having access to virtually
all major natural gas producing regions. For the calendar year
1996, Utilities' maximum daily load occurred on February 2, 1996
with total system flow of approximately 290,987 dekatherms,
including transported volumes, and a total contract availability of
approximately 276,352 dekatherms.
As a result of Order 636, Utilities accepted assignment of certain
gas supply contracts previously held by Northern. Accepting
assignment of these contracts resulted in lower costs to Utilities
than would have been incurred had Northern bought out the
agreements and billed Utilities for its share of such costs.
Contracts assigned to Utilities from Northern have maximum delivery
requirements of 13,631 Dth, and minimum take requirements of 2,726
Dth. Additional firm gas supply agreements were independently
negotiated by Utilities with various non-pipeline suppliers. These
gas supply agreements have maximum and minimum obligations and will
be delivered through gas transmission pipelines as follows:
Maximum Minimum
Daily Quantity Daily Quantity
(Dth/day) (Dth/day)
Northern 57,569 28,358
Natural 26,575 18,575
ANR 41,000 25,500
These gas supply contracts have expiration dates ranging from a few
months to almost seven years. Rates charged by Utilities'
suppliers are subject to regulation by the FERC. Utilities'
tariffs provide for subsequent adjustments to its natural gas rates
for changes in the cost of natural gas purchased for resale.
3. The following information provides the electric and gas data
for the year ended December 31, 1996:
a. Number of Kwh of electric energy sold:
Utilities
Retail 9,438,806,000
Wholesale 1,745,696,000 (i)
Number of Dekatherms of natural gas
distributed, including transported volumes:
Utilities 42,140,000
b. Number of Kwh of electric energy sold at retail outside
of the state of incorporation:
Utilities None
Number of Dekatherms of natural gas distributed at retail
outside of the state of incorporation:
Utilities None
c. Number of Kwh of electric energy sold at wholesale
outside of the state of incorporation:
Primarily through transactions in MAPP
Utilities 1,021,077,000
Number of Dekatherms of natural gas distributed at
wholesale outside of the state of incorporation:
Utilities None
d. Number of Kwh of electric energy purchased outside of the
state of incorporation:
Primarily through transactions in MAPP
Utilities 2,601,617,000
Number of Dekatherms of natural gas purchased
outside of the state of incorporation:
Utilities 31,809,000 (ii)
(i) Includes sales to resale customers and off-
system sales to other utilities.
(ii) Represents spot gas purchases which are
transported to Utilities' distribution systems (in
the State of Iowa) via three interstate pipeline
systems.
4. a. IES Industries has direct and indirect interests in
the common equity of two New Zealand utility companies
and in the common equity of a Chinese utility company.
Powerco Limited (Powerco)
151 St Hill Street
Wanganui, New Zealand
Powerco statistics:
73,000 electric customers
16,000 gas customers
859,000 Mwh electric sales
764 Gwh gas sales
14,400 sq. Km Electric Network Service Area
600 Km of gas distribution lines
9.4 Mw of installed generating capacity
$80 million of fixed capital assets (U.S. dollars)
$56 million of annual revenue (U.S. dollars)
Central Power Limited (Central Power)
400 Church Street
Palmerston North, New Zealand
Central Power statistics:
33,000 electric customers
464,000 Mwh electric sales
6,200 sq. Km Electric Network Service Area
No electric generation capacity
$62 million of fixed capital assets (U.S. dollars)
$48 million of annual revenue (U.S. dollars)
JIES Heat and Power Ltd.
Yun he Xiao Tu, Wai Juan Road
Jiaxing, Zhejiang Province
People's Republic of China
JIES's facilities include a 36 Mw coal fired
cogeneration plant and a steam distribution system.
JIES statistics:
1 electric customer
27 steam customers
172,950 Mwh electric sales
130,000 tons steam sales
$23 million of fixed assets (U.S. dollars)
$11 million of annual revenue (U.S. dollars)
b. & c. At December 31, 1996, IES New Zealand Limited
(IES New Zealand) owned approximately 8% of the common
equity of both Powerco and Central Power. IES Investments
also has a $10 million loan to a New Zealand corporation
and such loan is secured by stock options of the
borrower. The borrower also has beneficial ownership
interest in Powerco of less than 10%.
Interstate Energy Corporation Pte Ltd. contributed
$13.1 million for 50% of the capital stock of JIES. No
debt or other financial obligations of JIES have recourse
to the company or any of its affiliates.
d. Powerco (Year ended March 31, 1996):
Millions U.S. $
Net Income $ 6
Capitalization (Shareholder Funds) $ 91
Central Power (Year ended March 31, 1996):
Millions U.S. $
Net Income $ 14
Capitalization (Shareholder Funds) $ 84
Effective December 16, 1996, Central Power merged with
Electro Power of Palmerston North, New Zealand. The
above results do not include the impact of such merger.
JIES (Year ended December 31, 1996):
Millions U.S. $
Net Income $ 0.5
Capitalization $ 26.1
e. There are no service, sales or construction
contracts between IES Industries Inc., or any of its
subsidiaries, and Powerco, Central Power or JIES.
Exhibit A
Exhibit A, pages 14 through 16, shows a consolidating balance sheet
of the claimant and its subsidiary companies as of December 31, 1996,
together with a consolidating statement of income of claimant and its
subsidiary companies for the year ended December 31, 1996.
Exhibit A(i), pages 17 through 19, shows a consolidating balance
sheet as of December 31, 1996, together with a consolidating statement
of income for the year ended December 31, 1996, for Utilities.
Exhibit A(ii), pages 20 through 25, shows a consolidating balance
sheet as of December 31, 1996, together with a consolidating statement
of income for the year ended December 31, 1996, for Diversified.
Exhibit A(iii), pages 26 through 31, shows a consolidating balance
sheet as of December 31, 1996, together with a consolidating statement
of income for the year ended December 31, 1996, for IES Transportation.
Exhibit A(iv), pages 32 through 40, shows a consolidating balance
sheet as of December 31, 1996, together with a consolidating statement
of income for the year ended December 31, 1996, for IES Investments.
Exhibit A(v), pages 41 through 46, shows a consolidating balance
sheet as of December 31, 1996, together with a consolidating statement
of income for the year ended December 31, 1996, for IES Energy.
Exhibit A(vi), pages 47 through 49, shows a consolidating balance
sheet as of December 31, 1996, together with a consolidating statement
of income for the year ended December 31, 1996, for IES International.
Exhibit B: Financial Data Schedule
Item No. 1: Total Assets = $2,125,561,797
Item No. 2: Total Operating Revenues = $973,911,896
Item No. 3: Net Income = $60,907,300
Exhibit C
At December 31, 1996, IES International Inc. or its subsidiaries
owned approximately 8% of the common equity of both Powerco Limited and
Central Power Limited, two New Zealand utility companies, and 50% of the
common equity of JIES Heat and Power Ltd., a Chinese utility company.
IES International Inc. is a wholly-owned subsidiary of IES Diversified
Inc. and IES Diversified Inc. is a wholly-owned subsidiary of IES
Industries Inc., the claimant of this report.
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, 1997.
IES Industries Inc.
By /s/ John E. Ebright
John E. Ebright
Controller & Chief Accounting Officer
Corporate Seal
Attest:
/s/ Stephen W. Southwick
All notices and correspondence concerning this statement should be
addressed to:
John E. Ebright
Controller & Chief Accounting Officer
IES Industries Inc.
P. O. Box 351
Cedar Rapids, Iowa 52406
<TABLE>
IES Industries Inc. EXHIBIT A
Consolidated Balance Sheet PAGE 1 OF 3
As of December 31, 1996
<CAPTION> Consol.
IES IES IES Eliminat. IES
Utilities Diversified Industries Subtotal Entries Industries
<S> <C> <C> <C> <C> <C> <C>
Assets -
Utility Plant in Service:
Electric 2,007,838,558 0 0 2,007,838,558 2,007,838,558
Gas 175,471,983 0 0 175,471,983 175,471,983
Other 126,849,801 0 0 126,849,801 126,849,801
Total 2,310,160,342 0 0 2,310,160,342 0 2,310,160,342
Less - accum. depreciation (1,030,389,712) 0 0 (1,030,389,712) (1,030,389,712)
Net plant in service 1,279,770,630 0 0 1,279,770,630 0 1,279,770,630
Leased nuclear fuel 34,724,713 0 0 34,724,713 34,724,713
Construction work in progress 43,719,498 0 0 43,719,498 43,719,498
Total utility plant 1,358,214,841 0 0 1,358,214,841 0 1,358,214,841
Other property 7,309,572 286,637,023 0 293,946,595 (110,544) 293,836,051
Less - accum. depreciation (1,437,814) (68,592,959) 0 (70,030,773) (70,030,773)
Net other property 5,871,758 218,044,064 0 223,915,822 (110,544) 223,805,278
Total Property 1,364,086,599 218,044,064 0 1,582,130,663 (110,544) 1,582,020,119
Investments:
Consolidated subsidiaries 0 0 641,485,015 641,485,015 (641,485,015) 0
Equity investments 256,133 78,631,054 0 78,887,187 78,887,187
Decommissioning trust funds 59,324,557 0 0 59,324,557 59,324,557
Other 4,338,438 104,614 6,936,303 11,379,355 11,379,355
Total Investments 63,919,128 78,735,668 648,421,318 791,076,114 (641,485,015) 149,591,099
Current assets:
Cash 240,164 7,304,905 (236,560) 7,308,509 7,308,509
Cash on deposit with trustee 204,316 0 0 204,316 204,316
Temp. cash invest - affiliates 11,367,894 (6,154,198) (5,213,696) 0 0
Temp. cash investments 0 1,310,000 56,827 1,366,827 1,366,827
Acct. rec. - customers, net 553,766 28,360,305 0 28,914,071 28,914,071
Acct. rec. - other 10,678,675 1,335,023 26,357 12,040,055 12,040,055
Acct. rec. - intercompany 591,746 6,832,464 1,775,177 9,199,387 (9,199,387) 0
Dividend rec. - intercompany 0 0 0 0 0
Income tax refund rec. 2,663,528 0 6,226,075 8,889,603 8,889,603
Accrued utility revenues 21,907,425 0 0 21,907,425 21,907,425
Production fuel 13,322,654 0 0 13,322,654 13,322,654
Materials and supplies 21,715,645 1,126,302 0 22,841,947 22,841,947
Prepayments and other 45,040,256 5,291,233 172,855 50,504,344 50,504,344
Energy adjustment clause balances 10,751,624 0 0 10,751,624 10,751,624
Total current assets 139,037,693 45,406,034 2,807,035 187,250,762 (9,199,387) 178,051,375
Other assets:
Deferred charges 10,438,036 399,423 0 10,837,459 10,837,459
Regulatory assets 201,128,660 0 0 201,128,660 201,128,660
Other 0 3,933,085 0 3,933,085 3,933,085
Total other assets 211,566,696 4,332,508 0 215,899,204 0 215,899,204
Total assets 1,778,610,116 346,518,274 651,228,353 2,776,356,743 (650,794,946) 2,125,561,797
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Industries Inc. EXHIBIT A
Consolidated Balance Sheet PAGE 2 OF 3
As of December 31, 1996
<CAPTION>
Consol.
IES IES IES Eliminat. IES
Utilities Diversified Industries Subtotal Entries Industries
<S> <C> <C> <C> <C> <C> <C>
Capitalization and Liabilities -
Capitalization:
Common stock 33,426,970 123,872,941 407,634,632 564,934,543 (157,299,911) 407,634,632
Paid-in surplus 279,042,085 0 0 279,042,085 (279,042,085) 0
Retained earnings 231,337,218 (26,194,168) 219,350,638 424,493,688 (205,247,326) 219,246,362
Total common equity 543,806,273 97,678,773 626,985,270 1,268,470,316 (641,589,322) 626,880,994
Preferred stock 18,320,300 0 0 18,320,300 18,320,300
Long-term debt 517,333,642 183,765,762 0 701,099,404 701,099,404
Total Capitalization 1,079,460,215 281,444,535 626,985,270 1,987,890,020 (641,589,322) 1,346,300,698
Current liabilities:
Long-term debt maturities 8,140,000 332,803 0 8,472,803 8,472,803
Short-term borrowings 135,000,000 0 0 135,000,000 135,000,000
Nuclear fuel lease obligation 15,124,505 0 0 15,124,505 15,124,505
Accounts payable - trade 69,821,378 28,719,961 1,322,405 99,863,744 (3,194) 99,860,550
Accounts pay. - intercompany 6,466,063 2,730,130 0 9,196,193 (9,196,193) 0
Dividends pay. - intercompany 0 0 0 0 0
Dividends payable 228,594 0 16,202,709 16,431,303 16,431,303
Accrued interest 8,839,360 145,367 0 8,984,727 8,984,727
Accrued other taxes 40,231,672 2,360,535 0 42,592,207 42,592,207
Adjustment clause balances 0 0 0 0 0
Accrued income taxes 721,119 613,138 0 1,334,257 1,334,257
Accum. refueling outage prov. 1,316,412 0 0 1,316,412 1,316,412
Other 22,402,111 4,342,747 1,021,690 27,766,548 27,766,548
Total current liabilities 308,291,214 39,244,681 18,546,804 366,082,699 (9,199,387) 356,883,312
Long-term liabilities:
Nuclear fuel lease obligations 19,600,207 0 0 19,600,207 19,600,207
Environmental liabilities 40,298,373 7,204,000 0 47,502,373 47,502,373
Other 39,856,426 6,430,859 11,849,108 58,136,393 (6,237) 58,130,156
Total long-term liabilities 99,755,006 13,634,859 11,849,108 125,238,973 (6,237) 125,232,736
Deferred Credits:
Accum. deferred income taxes 256,633,862 12,194,196 (6,152,828) 262,675,230 262,675,230
Accum. deferred inv. tax cr. 34,469,819 0 0 34,469,819 34,469,819
Total deferred credits 291,103,681 12,194,196 (6,152,828) 297,145,049 0 297,145,049
Total cap. and liabilities 1,778,610,116 346,518,271 651,228,354 2,776,356,741 (650,794,946) 2,125,561,795
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Industries Inc. EXHIBIT A
Consolidated Statement of Income PAGE 3 OF 3
For the Year Ended December 31, 1996
<CAPTION>
Consol.
IES IES IES Eliminat. IES
Utilities Diversified Industries Subtotal Entries Industries
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Electric 574,272,624 0 0 574,272,624 574,272,624
Gas 160,864,061 113,114,630 0 273,978,691 273,978,691
Steam 19,492,490 4,362,130 0 23,854,620 23,854,620
Other 349,726 102,917,181 0 103,266,907 (1,460,946) 101,805,961
Total revenues 754,978,901 220,393,941 0 975,372,842 (1,460,946) 973,911,896
Operating expenses:
Fuel for production 84,579,026 0 0 84,579,026 84,579,026
Purchased power 88,349,890 0 0 88,349,890 88,349,890
Gas purchased for resale 103,876,773 113,473,999 0 217,350,772 217,350,772
Other operating expenses 150,001,100 66,568,098 (349,715) 216,219,483 (1,460,946) 214,758,537
Maintenance 45,869,347 3,132,083 0 49,001,430 49,001,430
Depreciation and amortization 84,975,141 22,418,155 0 107,393,296 107,393,296
Property taxes 38,369,723 1,380,610 0 39,750,333 39,750,333
Miscellaneous taxes 5,233,150 3,187,146 0 8,420,296 8,420,296
Total operating expenses 601,254,150 210,160,091 (349,715) 811,064,526 (1,460,946) 809,603,580
Operating income 153,724,751 10,233,850 349,715 164,308,316 0 164,308,316
Other income and deductions:
AFUDC - equity 99,973 0 0 99,973 99,973
Income from subsidiaries 260,944 (250,212) (67,360,730) (67,349,998) 67,360,730 10,732
Miscellaneous (net) 5,030,778 (3,021,164) (405,693) 1,603,921 717,471 2,321,392
Total 5,391,695 (3,271,376) (67,766,423) (65,646,104) 68,078,201 2,432,097
Interest expense and other:
Long-term debt 37,046,564 8,343,198 653,680 46,043,442 (717,471) 45,325,971
Other 6,667,609 17,240 2,811,277 9,496,126 9,496,126
Preferred dividends of sub. 0 0 0 0 914,374 914,374
AFUDC - debt (2,202,672) 0 0 (2,202,672) (2,202,672)
Total 41,511,501 8,360,438 3,464,957 53,336,896 196,903 53,533,799
Income before income taxes 106,821,555 5,144,788 64,651,181 176,617,524 (68,275,104) 108,342,420
Federal and state income tax:
Current 35,329,857 (1,049,387) 3,965,941 38,246,411 38,246,411
Deferred 10,408,035 1,648,409 (222,273) 11,834,171 11,834,171
Amortization of inv. tax. cr. (2,645,461) 0 0 (2,645,461) (2,645,461)
Total 43,092,431 599,022 3,743,668 47,435,121 0 47,435,121
Net Income 63,729,124 4,545,766 60,907,513 129,182,403 (68,275,104) 60,907,299
Preferred dividend requirement 914,373 0 0 914,373 (914,374) (1)
Net Income for common stock 62,814,751 4,545,766 60,907,513 128,268,030 (67,360,730) 60,907,300
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Utilities Inc. EXHIBIT A (i)
Consolidated Balance Sheet PAGE 1 OF 3
As of December 31, 1996
<CAPTION>
Consol.
IES Midland IES Eliminat. IES
Utilities Development Ventures Subtotal Entries Utilities Inc.
<S> <C> <C> <C> <C> <C> <C>
Assets -
Utility Plant in Service:
Electric 2,000,117,854 0 0 2,000,117,854 7,720,704 2,007,838,558
Gas 175,471,983 0 0 175,471,983 175,471,983
Other 126,849,801 0 0 126,849,801 126,849,801
Total 2,302,439,638 0 0 2,302,439,638 7,720,704 2,310,160,342
Less - accum. depreciation (1,030,389,712) 0 0 (1,030,389,712) (1,030,389,712)
Net plant in service 1,272,049,926 0 0 1,272,049,926 7,720,704 1,279,770,630
Leased nuclear fuel 34,724,713 0 0 34,724,713 34,724,713
Construction work in progress 39,810,422 0 0 39,810,422 3,909,076 43,719,498
Total utility plant 1,346,585,061 0 0 1,346,585,061 11,629,780 1,358,214,841
Other property 0 4,944,728 0 4,944,728 2,364,844 7,309,572
Less - accum. depreciation 0 (32,392) 0 (32,392) (1,405,422) (1,437,814)
Net other property 0 4,912,336 0 4,912,336 959,422 5,871,758
Total Property 1,346,585,061 4,912,336 0 1,351,497,397 12,589,202 1,364,086,599
Investments:
Consolidated subsidiaries 5,046,862 0 0 5,046,862 (5,046,862) 0
Decommissioning trust funds 59,324,557 0 0 59,324,557 59,324,557
Cash Surr Value - Life Ins 4,280,619 0 0 4,280,619 4,280,619
Other 1,273,375 0 0 1,273,375 (959,423) 313,952
Total Investments 69,925,413 0 0 69,925,413 (6,006,285) 63,919,128
Current assets:
Cash 240,164 0 0 240,164 240,164
Cash on deposit with trustee 204,316 0 0 204,316 204,316
Temp. cash investments 0 0 0 0 0
Temp. cash invest - affiliates 11,367,894 0 0 11,367,894 11,367,894
Acct. rec. - customers, net 546,822 6,944 0 553,766 553,766
Acct. rec. - other 10,678,675 0 500,000 11,178,675 (500,000) 10,678,675
Acct. rec. - intercompany 1,007,656 103,723 0 1,111,379 (519,633) 591,746
Dividend rec. - intercompany 0 0 0 0 0
Income tax refund rec. 2,663,528 0 0 2,663,528 2,663,528
Accrued utility revenues 21,907,425 0 0 21,907,425 21,907,425
Production fuel 13,322,654 0 0 13,322,654 13,322,654
Materials and supplies 21,715,645 0 0 21,715,645 21,715,645
Prepayments and other 18,001,401 0 0 18,001,401 500,000 18,501,401
Energy adjustment clause balances 10,751,624 0 0 10,751,624 10,751,624
Regulatory assets 26,538,855 0 0 26,538,855 26,538,855
Total current assets 138,946,659 110,667 500,000 139,557,326 (519,633) 139,037,693
Other assets:
Deferred charges and other 10,438,036 0 0 10,438,036 10,438,036
Regulatory assets 212,758,440 0 0 212,758,440 (11,629,780) 201,128,660
Other 0 0 0 0 0
Total other assets 223,196,476 0 0 223,196,476 (11,629,780) 211,566,696
Total assets 1,778,653,609 5,023,003 500,000 1,784,176,612 (5,566,496) 1,778,610,116
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Utilities Inc. EXHIBIT A (i)
Consolidated Balance Sheet PAGE 2 OF 3
As of December 31, 1996
<CAPTION>
Consol.
IES Midland IES Eliminat. IES
Utilities Development Ventures Subtotal Entries Utilities Inc.
<S> <C> <C> <C> <C> <C> <C>
Capitalization and Liabilities -
Capitalization:
Common stock 33,426,970 4,912,336 0 38,339,306 (4,912,336) 33,426,970
Paid-in surplus 279,042,085 0 0 279,042,085 279,042,085
Retained earnings 231,337,218 14 134,512 231,471,744 (134,526) 231,337,218
Total common equity 543,806,273 4,912,350 134,512 548,853,135 (5,046,862) 543,806,273
Preferred stock 18,320,300 0 0 18,320,300 18,320,300
Long-term debt 517,333,642 0 0 517,333,642 517,333,642
Total Capitalization 1,079,460,215 4,912,350 134,512 1,084,507,077 (5,046,862) 1,079,460,215
Current liabilities:
Long-term debt maturities 8,140,000 0 0 8,140,000 8,140,000
Notes payable - asscociated companies 0 0 500,000 500,000 (500,000) 0
Short-term borrowings 110,000,000 0 0 110,000,000 110,000,000
Notes payable 25,000,000 0 0 25,000,000 25,000,000
Nuclear fuel lease obligation 15,124,505 0 0 15,124,505 15,124,505
Accounts payable - trade 69,821,378 0 0 69,821,378 69,821,378
Accounts pay. - intercompany 6,726,212 (105,995)(134,521) 6,485,696 (19,633) 6,466,063
Dividends pay. - intercompany 0 0 0 0 0
Dividends payable 228,594 0 0 228,594 228,594
Accrued interest 8,839,360 0 0 8,839,360 8,839,360
Accrued other taxes 40,952,791 0 0 40,952,791 40,952,791
Adjustment clause balances 0 0 0 0 0
Accrued income taxes 0 0 0 0 0
Accum. refueling outage prov. 1,316,412 0 0 1,316,412 1,316,412
FMGP/NEPA obligation 5,517,146 0 0 5,517,146 5,517,146
Other 16,884,965 0 0 16,884,965 16,884,965
Total current liabilities 308,551,363 (105,995) 365,479 308,810,847 (519,633) 308,291,214
Long-term liabilities:
Pension & other benefit obligation 25,826,311 0 0 25,826,311 25,826,311
Nuclear fuel lease obligations 19,600,207 0 0 19,600,207 19,600,207
Environmental liabilities 31,226,000 0 0 31,226,000 31,226,000
NEPA obligation 9,072,373 0 0 9,072,373 9,072,373
Other 14,030,115 0 0 14,030,115 14,030,115
Total long-term liabilities 99,755,006 0 0 99,755,006 0 99,755,006
Deferred Credits:
Accum. deferred income taxes 256,417,205 216,648 9 256,633,862 256,633,862
Accum. deferred inv. tax cr. 34,469,819 0 0 34,469,819 34,469,819
Total deferred credits 290,887,024 216,648 9 291,103,681 0 291,103,681
Total cap. and liabilities 1,778,653,608 5,023,003 500,000 1,784,176,611 (5,566,495) 1,778,610,116
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Utilities Inc. EXHIBIT A (i)
Consolidated Statement of Income PAGE 3 OF 3
For the Year Ended December 31, 1996
<CAPTION> Consol.
IES Midland IES Eliminat. IES
Utilities Development Ventures Subtotal Entries Utilities Inc.
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Electric 574,272,624 0 0 574,272,624 574,272,624
Gas 160,864,061 0 0 160,864,061 160,864,061
Steam 19,492,490 0 0 19,492,490 19,492,490
Other 0 349,726 0 349,726 349,726
Total revenues 754,629,175 349,726 0 754,978,901 0 754,978,901
Operating expenses:
Fuel for production 84,579,026 0 0 84,579,026 84,579,026
Purchased power 88,349,890 0 0 88,349,890 88,349,890
Gas purchased for resale 103,876,773 0 0 103,876,773 103,876,773
Other operating expenses 149,665,739 323,073 12,288 150,001,100 150,001,100
Maintenance 45,869,347 0 0 45,869,347 45,869,347
Depreciation and amortization 84,949,174 25,967 0 84,975,141 84,975,141
Property taxes 38,367,960 1,763 0 38,369,723 38,369,723
Miscellaneous taxes 5,233,150 0 0 5,233,150 5,233,150
Total operating expenses 600,891,059 350,803 12,288 601,254,150 0 601,254,150
Operating income (loss) 153,738,116 (1,077) (12,288) 153,724,751 0 153,724,751
Other income and deductions:
AFUDC - equity 99,973 0 0 99,973 99,973
Income from subsidiaries 159,481 0 0 159,481 101,463 260,944
Miscellaneous (net) 5,030,778 0 0 5,030,778 5,030,778
BTL Taxes (3,259,258) 0 0 (3,259,258) 3,259,258 0
Total 2,030,974 0 0 2,030,974 3,360,721 5,391,695
Interest expense and other:
Long-term debt 37,047,933 (1,076) (293) 37,046,564 37,046,564
Other 6,667,609 0 0 6,667,609 6,667,609
Preferred dividends of sub. 0 0 0 0 0
AFDUC - debt (2,202,672) 0 0 (2,202,672) (2,202,672)
Total 41,512,870 (1,076) (293) 41,511,501 0 41,511,501
Income(loss) before inc. taxes 110,194,272 (1) (11,995) 110,182,276 (3,360,721) 106,821,555
Federal and state income tax:
Current 38,708,824 (216,662)(113,467) 38,378,695 (3,048,838) 35,329,857
Deferred 10,401,784 216,662 9 10,618,455 (210,420) 10,408,035
Amortization of inv. tax. cr. (2,645,461) 0 0 (2,645,461) (2,645,461)
Total 46,465,147 0 (113,458) 46,351,689 (3,259,258) 43,092,431
Net Income 63,729,125 (1) 101,463 63,830,587 (101,463) 63,729,124
Preferred dividend requirement 914,373 0 0 914,373 914,373
Net Income for common stock 62,814,752 (1) 101,463 62,916,214 (101,463) 62,814,751
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Diversified Inc. EXHIBIT A (ii)
Consolidated Balance Sheet PAGE 1 OF 6
As of December 31, 1996
<CAPTION>
IES IES IES IES IES
Transport. Investments Energy Internat'l. Diversified Subtotal
<S> <C> <C> <C> <C> <C> <C>
Assets -
Other property 55,216,774 40,671,454 193,659,229 0 255,716 289,803,173
Less - accum. depreciation (12,013,892) (6,352,851) (50,036,253) 0 (189,963) (68,592,959)
Net other property 43,202,882 34,318,603 143,622,976 0 65,753 221,210,214
Investments:
Consolidated subsidiaries 0 0 0 0 270,257,572 270,257,572
Equity investments 108,680 61,120,533 0 33,280,843 0 94,510,056
Decommissioning trust funds 0 0 0 0 0 0
Other 0 0 104,614 0 (3,000,000) (2,895,386)
Total Investments 108,680 61,120,533 104,614 33,280,843 267,257,572 361,872,242
Current assets:
Cash 93,552 1,096,739 3,197,596 0 1,769,987 6,157,874
Temp. cash invest - affiliates 0 0 0 0 (6,154,198) (6,154,198)
Temp. cash investments 0 1,310,000 0 0 0 1,310,000
Acct. rec. - customers, net 2,784,558 139,050 25,225,203 0 0 28,148,811
Acct. rec. - other 0 510,523 728,205 0 96,295 1,335,023
Acct. rec. - intercompany 958,316 1,147,630 4,630,193 0 481,725 7,217,864
Income tax refunds receivable 0 0 0 0 0 0
Materials and supplies 1,045,968 80,334 0 0 0 1,126,302
Prepayments and other 195,234 1,699,700 2,617,054 0 778,307 5,290,295
Total current assets 5,077,628 5,983,976 36,398,251 0 (3,027,884) 44,431,971
Other assets:
Advances payable to parent 0 2,051 0 0 0 2,051
Deferred charges 8,455 125,176 0 0 265,792 399,423
Regulatory assets 0 0 0 0 0 0
Other 0 3,882,844 50,241 0 5,500,000 9,433,085
Total other assets 8,455 4,010,071 50,241 0 5,765,792 9,834,559
Total assets 48,397,645 105,433,183 180,176,082 33,280,843 270,061,233 637,348,986
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Diversified Inc. EXHIBIT A (ii)
Consolidated Balance Sheet PAGE 2 OF 6
As of December 31, 1996
<CAPTION>
Consol.
Eliminat. IES
Subtotal Entries Diversified
<S> <C> <C> <C>
Assets -
Other property 289,803,173 (3,166,150) 286,637,023
Less - accum. depreciation (68,592,959) (68,592,959)
Net other property 221,210,214 (3,166,150) 218,044,064
Investments:
Consolidated subsidiaries 270,257,572 (270,257,572) 0
Equity investments 94,510,056 (15,879,002) 78,631,054
Decommissioning trust funds 0 0
Other (2,895,386) 3,000,000 104,614
Total Investments 361,872,242 (283,136,574) 78,735,668
Current assets:
Cash 6,157,874 1,147,031 7,304,905
Temp. cash invest - affiliates (6,154,198) (6,154,198)
Temp. cash investments 1,310,000 1,310,000
Acct. rec. - customers, net 28,148,811 211,494 28,360,305
Acct. rec. - other 1,335,023 1,335,023
Acct. rec. - intercompany 7,217,864 (385,400) 6,832,464
Income tax refunds receivable 0 0
Materials and supplies 1,126,302 1,126,302
Prepayments and other 5,290,295 938 5,291,233
Total current assets 44,431,971 974,063 45,406,034
Other assets:
Advances payable to parent 2,051 (2,051) 0
Deferred charges 399,423 399,423
Regulatory assets 0 0
Other 9,433,085 (5,500,000) 3,933,085
Total other assets 9,834,559 (5,502,051) 4,332,508
Total assets 637,348,986 (290,830,712) 346,518,274
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Diversified Inc. EXHIBIT A (ii)
Consolidated Balance Sheet PAGE 3 OF 6
As of December 31, 1996
<CAPTION>
IES IES IES IES IES
Transport. Investments Energy Internat'l. Diversified Subtotal
<S> <C> <C> <C> <C> <C> <C>
Capitalization and Liabilities -
Capitalization:
Common stock 25,164,269 86,201,037 128,622,967 16,561,553 123,872,941 380,422,767
Paid-in surplus 0 0 0 0 0 0
Retained earnings 4,485,263 450,032 8,345,005 427,446 (26,028,018) (12,320,272)
Total common equity 29,649,532 86,651,069 136,967,972 16,988,999 97,844,923 368,102,495
Preferred stock of IES Int'l. 0 0 0 15,879,002 0 15,879,002
Long-term debt 5,500,000 11,660,762 0 0 172,105,000 189,265,762
Total Capitalization 35,149,532 98,311,831 136,967,972 32,868,001 269,949,923 573,247,259
Current liabilities:
Long-term debt maturities 0 332,803 0 0 0 332,803
Accounts payable - trade 3,665,804 200,972 24,670,012 65,000 118,173 28,719,961
Accounts pay. - intercompany 786,903 213,565 242,790 585,176 1,075,602 2,904,036
Dividends pay. - intercompany 0 0 0 0 0 0
Accrued interest 0 13,117 0 0 132,250 145,367
Accrued other taxes 930,026 818,502 612,007 0 0 2,360,535
Accrued income taxes 0 0 334,930 278,208 0 613,138
Other 634,081 849,541 1,710,864 0 1,230 3,195,716
Total current liabilities 6,016,814 2,428,500 27,570,603 928,384 1,327,255 38,271,556
Long-term liabilities:
Advance from parent (372,442) 0 0 0 373,555 1,113
Environmental liabilities 100,000 70,000 7,034,000 0 0 7,204,000
Other 2,662,620 3,651,319 40,303 0 76,617 6,430,859
Total long-term liabilities 2,390,178 3,721,319 7,074,303 0 450,172 13,635,972
Deferred Credits:
Accum. deferred income taxes 4,841,124 971,528 8,563,203 (515,542) (1,666,117) 12,194,196
Accum. deferred inv. tax cr. 0 0 0 0 0 0
Total deferred credits 4,841,124 971,528 8,563,203 (515,542) (1,666,117) 12,194,196
Total cap. and liabilities 48,397,648 105,433,178 180,176,081 33,280,843 270,061,233 637,348,983
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Diversified Inc. EXHIBIT A (ii)
Consolidated Balance Sheet PAGE 4 OF 6
As of December 31, 1996
<CAPTION>
Consol.
Eliminat. IES
Subtotal Entries Diversified
<S> <C> <C> <C>
Capitalization and Liabilities -
Capitalization:
Common stock 380,422,767 (256,549,826) 123,872,941
Paid-in surplus 0 0
Retained earnings (12,320,272) (13,873,896) (26,194,168)
Total common equity 368,102,495 (270,423,722) 97,678,773
Preferred stock of IES Int'l. 15,879,002 (15,879,002) 0
Long-term debt 189,265,762 (5,500,000) 183,765,762
Total Capitalization 573,247,259 (291,802,724) 281,444,535
Current liabilities:
Long-term debt maturities 332,803 332,803
Accounts payable - trade 28,719,961 28,719,961
Accounts pay. - intercompany 2,904,036 (173,906) 2,730,130
Dividends pay. - intercompany 0 0
Accrued interest 145,367 145,367
Accrued other taxes 2,360,535 2,360,535
Accrued income taxes 613,138 613,138
Other 3,195,716 1,147,031 4,342,747
Total current liabilities 38,271,556 973,125 39,244,681
Long-term liabilities:
Advance from parent 1,113 (1,113) 0
Environmental liabilities 7,204,000 7,204,000
Other 6,430,859 6,430,859
Total long-term liabilities 13,635,972 (1,113) 13,634,859
Deferred Credits:
Accum. deferred income taxes 12,194,196 12,194,196
Accum. deferred inv. tax cr. 0 0
Total deferred credits 12,194,196 0 12,194,196
Total cap. and liabilities 637,348,983 (290,830,712) 346,518,271
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Diversified Inc. EXHIBIT A (ii)
Consolidated Statement of Income PAGE 5 OF 6
For the Year Ended December 31, 1996
<CAPTION>
IES IES IES IES IES
Transport. Investments Energy Internat'l. Diversified Subtotal
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Gas 0 0 113,114,630 0 0 113,114,630
Steam 0 0 4,362,130 0 0 4,362,130
Other 19,661,911 9,746,424 73,508,846 0 0 102,917,181
Total revenues 19,661,911 9,746,424 190,985,606 0 0 220,393,941
Operating expenses:
Gas purchased for resale 0 0 113,473,999 0 0 113,473,999
Other operating expenses 8,326,228 7,421,078 43,924,664 1,107,373 5,788,755 66,568,098
Maintenance 1,811,500 1,023,533 297,050 0 0 3,132,083
Depreciation and amortization 1,687,624 1,304,535 19,381,152 0 44,844 22,418,155
Property taxes 632,800 588,210 159,600 0 0 1,380,610
Miscellaneous taxes 749,126 0 2,438,020 0 0 3,187,146
Total operating expenses 13,207,278 10,337,356 179,674,485 1,107,373 5,833,599 210,160,091
Operating income (loss) 6,454,633 (590,932) 11,311,121 (1,107,373) (5,833,599) 10,233,850
Other income and deductions:
Income from subsidiaries 0 (212) 0 (250,000) (13,414,925) (13,665,137)
Other (147,362) (3,903,535) (92,948) (1,406,390) 1,312,996 (4,237,240)
Total (147,362) (3,903,747) (92,948) (1,656,390) (12,101,929) (17,902,377)
Interest expense 506,072 1,148,338 240,162 67,966 7,565,221 9,527,759
Income(loss) before inc. taxes 6,095,923 2,164,477 11,163,907 481,051 (1,296,891) 18,608,468
Federal and state income taxes:
Current 2,032,203 441,495 1,066,431 569,148 (5,158,664) (1,049,387)
Deferred 481,849 101,123 2,313,653 (515,542) (732,674) 1,648,409
Amortization of inv. tax. cr. 0 0 0 0 0 0
Total income taxes 2,514,052 542,618 3,380,084 53,606 (5,891,338) 599,022
Net Income 3,581,871 1,621,859 7,783,823 427,445 4,594,447 18,009,446
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Diversified Inc. EXHIBIT A (ii)
Consolidated Statement of Income PAGE 6 OF 6
For the Year Ended December 31, 1996
<CAPTION>
Consol.
Eliminat. IES
Subtotal Entries Diversified
<C> <S> <S> <S>
Revenues:
Gas 113,114,630 113,114,630
Steam 4,362,130 4,362,130
Other 102,917,181 102,917,181
Total revenues 220,393,941 0 220,393,941
Operating expenses:
Gas purchased for resale 113,473,999 113,473,999
Other operating expenses 66,568,098 66,568,098
Maintenance 3,132,083 3,132,083
Depreciation and amortization 22,418,155 22,418,155
Property taxes 1,380,610 1,380,610
Miscellaneous taxes 3,187,146 3,187,146
Total operating expenses 210,160,091 0 210,160,091
Operating income (loss) 10,233,850 0 10,233,850
Other income and deductions:
Income from subsidiaries (13,665,137) 13,414,925 (250,212)
Other (4,237,240) 1,216,076 (3,021,164)
Total (17,902,377) 14,631,001 (3,271,376)
Interest expense 9,527,759 (1,167,321) 8,360,438
Income(loss) before inc. taxes 18,608,468 (13,463,680) 5,144,788
Federal and state income taxes:
Current (1,049,387) (1,049,387)
Deferred 1,648,409 1,648,409
Amortization of inv. tax. cr. 0 0
Total income taxes 599,022 0 599,022
Net Income 18,009,446 (13,463,680) 4,545,766
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Transportation Inc. EXHIBIT A (iii)
Consolidated Balance Sheet PAGE 1 OF 6
As of December 31, 1996
<CAPTION>
IEI Barge Transfer IES
CRANDIC Services Services Transport. Subtotal
<S> <C> <C> <C> <C> <C>
Assets -
Other property 43,150,167 10,985,092 913,160 0 55,048,419
Less - accum. depreciation (8,549,081) (3,338,081) (126,730) 0 (12,013,892)
Net other property 34,601,086 7,647,011 786,430 0 43,034,527
Investments:
Consolidated subsidiaries 0 0 0 29,484,346 29,484,346
Equity investments 0 0 0 108,680 108,680
Decommissioning trust funds 0 0 0 0 0
Other 0 0 0 0 0
Total Investments 0 0 0 29,593,026 29,593,026
Current assets:
Cash 1,300 92,252 0 0 93,552
Temp. cash invest - affiliates 0 0 0 0 0
Temp. cash investments 0 0 0 0 0
Acct. rec. - customers, net 2,461,009 274,267 49,282 0 2,784,558
Acct. rec. - other 0 0 0 0 0
Acct. rec. - intercompany 957,845 0 0 35,787 993,632
Materials and supplies 1,037,731 0 0 8,237 1,045,968
Prepayments and other 94,834 97,970 2,430 0 195,234
Total current assets 4,552,719 464,489 51,712 44,024 5,112,944
Other assets:
Deferred charges 8,455 0 0 0 8,455
Regulatory assets 0 0 0 0 0
Other 0 0 0 0 0
Total other assets 8,455 0 0 0 8,455
Total assets 39,162,260 8,111,500 838,142 29,637,050 77,748,952
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Transportation Inc. EXHIBIT A (iii)
Consolidated Balance Sheet PAGE 2 OF 6
As of December 31, 1996
<CAPTION>
Consol.
Eliminat. IES
Subtotal Entries Transport
<S> <C> <C> <C>
Assets -
Other property 55,048,419 168,355 55,216,774
Less - accum. depreciation (12,013,892) (12,013,892)
Net other property 43,034,527 168,355 43,202,882
Investments:
Consolidated subsidiaries 29,484,346 (29,484,346) 0
Equity investments 108,680 108,680
Decommissioning trust funds 0 0
Other 0 0
Total Investments 29,593,026 (29,484,346) 108,680
Current assets:
Cash 93,552 93,552
Temp. cash invest - affiliates 0 0
Temp. cash investments 0 0
Acct. rec. - customers, net 2,784,558 2,784,558
Acct. rec. - other 0 0
Acct. rec. - intercompany 993,632 (35,316) 958,316
Materials and supplies 1,045,968 1,045,968
Prepayments and other 195,234 195,234
Total current assets 5,112,944 (35,316) 5,077,628
Other assets:
Deferred charges 8,455 8,455
Regulatory assets 0 0
Other 0 0
Total other assets 8,455 0 8,455
Total assets 77,748,952 (29,351,307) 48,397,645
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Transportation Inc. EXHIBIT A (iii)
Consolidated Balance Sheet PAGE 3 OF 6
As of December 31, 1996
<CAPTION>
IEI Barge Transfer IES
CRANDIC Services Services Transport. Subtotal
<S> <C> <C> <C> <C> <C>
Capitalization and Liabilities -
Capitalization:
Common stock 6,383,024 2,466,800 846,402 25,164,269 34,860,495
Paid-in surplus 0 0 0 0 0
Retained earnings 20,409,127 (92,087) (108,348) 4,485,263 24,693,955
Total common equity 26,792,151 2,374,713 738,054 29,649,532 59,554,450
Long-term debt 0 5,500,000 0 0 5,500,000
Total Capitalization 26,792,151 7,874,713 738,054 29,649,532 65,054,450
Current liabilities:
Long-term debt maturities 0 0 0 0 0
Accounts payable - trade 3,555,440 103,879 6,485 0 3,665,804
Accounts pay. - intercompany 763,835 5,161 19,168 34,055 822,219
Accrued interest 0 0 0 0 0
Accrued other taxes 798,122 88,776 43,008 120 930,026
Accrued income taxes 0 0 0 0 0
Other 222,657 410,475 949 0 634,081
Total current liabilities 5,340,054 608,291 69,610 34,175 6,052,130
Long-term liabilities:
Advance from parent (938) (371,504) 0 0 (372,442)
Environmental liabilities 100,000 0 0 0 100,000
Other 2,073,691 0 0 0 2,073,691
Total long-term liabilities 2,172,753 (371,504) 0 0 1,801,249
Deferred Credits:
Accum. deferred income taxes 4,857,302 0 30,479 (46,657) 4,841,124
Accum. deferred inv. tax cr. 0 0 0 0 0
Total deferred credits 4,857,302 0 30,479 (46,657) 4,841,124
Total cap. and liabilities 39,162,260 8,111,500 838,143 29,637,050 77,748,953
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Transportation Inc. EXHIBIT A (iii)
Consolidated Balance Sheet PAGE 4 OF 6
As of December 31, 1996
<CAPTION>
Consol.
Eliminat. IES
Subtotal Entries Transport
<S> <C> <C> <C>
Capitalization and Liabilities -
Capitalization:
Common stock 34,860,495 (9,696,226) 25,164,269
Paid-in surplus 0 0
Retained earnings 24,693,955 (20,208,692) 4,485,263
Total common equity 59,554,450 (29,904,918) 29,649,532
Long-term debt 5,500,000 5,500,000
Total Capitalization 65,054,450 (29,904,918) 35,149,532
Current liabilities:
Long-term debt maturities 0 0
Accounts payable - trade 3,665,804 3,665,804
Accounts pay. - intercompany 822,219 (35,316) 786,903
Accrued interest 0 0
Accrued other taxes 930,026 930,026
Accrued income taxes 0 0
Other 634,081 634,081
Total current liabilities 6,052,130 (35,316) 6,016,814
Long-term liabilities:
Advance from parent (372,442) (372,442)
Environmental liabilities 100,000 100,000
Other 2,073,691 588,929 2,662,620
Total long-term liabilities 1,801,249 588,929 2,390,178
Deferred Credits:
Accum. deferred income taxes 4,841,124 4,841,124
Accum. deferred inv. tax cr. 0 0
Total deferred credits 4,841,124 0 4,841,124
Total cap. and liabilities 77,748,953 (29,351,305) 48,397,648
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Transportation Inc. EXHIBIT A (iii)
Consolidated Statement of Income PAGE 5 OF 6
For the Year Ended December 31, 1996
<CAPTION>
IEI Barge Transfer IES
CRANDIC Services Services Transport. Subtotal
<S> <C> <C> <C> <C> <C>
Revenues:
Gas 0 0 0 0 0
Steam 0 0 0 0 0
Other 17,374,451 1,872,195 415,265 0 19,661,911
Total revenues 17,374,451 1,872,195 415,265 0 19,661,911
Operating expenses:
Gas purchased for resale 0 0 0 0 0
Other operating expenses 7,253,680 761,753 310,287 508 8,326,228
Maintenance 1,679,969 116,251 15,280 0 1,811,500
Depreciation and amortization 1,237,189 397,724 52,711 0 1,687,624
Property taxes 502,000 84,000 46,800 0 632,800
Miscellaneous taxes 716,636 32,490 0 0 749,126
Total operating expenses 11,389,474 1,392,218 425,078 508 13,207,278
Operating income (loss) 5,984,977 479,977 (9,813) (508) 6,454,633
Other income and deductions:
Income from subsidiaries 0 0 0 (3,603,852) (3,603,852)
Other (173,889) (4,159) (48) 32,109 (145,987)
Total (173,889) (4,159) (48) (3,571,743) (3,749,839)
Fixed charges:
Long-term debt 0 488,832 0 0 488,832
Other debt 7,824 847 931 7,638 17,240
7,824 489,679 931 7,638 506,072
Income(loss) before inc. taxes 6,151,042 (5,543) (10,696) 3,563,597 9,698,400
Federal and state income taxes:
Current 2,053,003 0 (14,196) (6,604) 2,032,203
Deferred 483,686 0 9,827 (11,664) 481,849
Amortization of inv. tax. cr. 0 0 0 0 0
Total income taxes 2,536,689 0 (4,369) (18,268) 2,514,052
Net Income (Loss) 3,614,353 (5,543) (6,327) 3,581,865 7,184,348
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Transportation Inc. EXHIBIT A (iii)
Consolidated Statement of Income PAGE 6 OF 6
For the Year Ended December 31, 1996
<CAPTION>
Consol.
Eliminat. IES
Subtotal Entries Transport
<S> <C> <C> <C>
Revenues:
Gas 0 0
Steam 0 0
Other 19,661,911 19,661,911
Total revenues 19,661,911 0 19,661,911
Operating expenses:
Gas purchased for resale 0 0
Other operating expenses 8,326,228 8,326,228
Maintenance 1,811,500 1,811,500
Depreciation and amortization 1,687,624 1,687,624
Property taxes 632,800 632,800
Miscellaneous taxes 749,126 749,126
Total operating expenses 13,207,278 0 13,207,278
Operating income (loss) 6,454,633 0 6,454,633
Other income and deductions:
Income from subsidiaries (3,603,852) 3,603,852 0
Other (145,987) (1,375) (147,362)
Total (3,749,839) 3,602,477 (147,362)
Fixed charges:
Long-term debt 488,832 488,832
Other debt 17,240 17,240
506,072 0 506,072
Income(loss) before inc. taxes 9,698,400 (3,602,477) 6,095,923
Federal and state income taxes:
Current 2,032,203 2,032,203
Deferred 481,849 481,849
Amortization of inv. tax. cr. 0 0
Total income taxes 2,514,052 0 2,514,052
Net Income (Loss) 7,184,348 (3,602,477) 3,581,871
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Investments Inc. EXHIBIT A (iv)
Consolidated Balance Sheet PAGE 1 OF 9
As of December 31, 1996
<CAPTION>
2001 2060 Center Prairie
Iowa Land Develop. Develop. Place Ridge
<S> <C> <C> <C> <C> <C>
Assets -
Other property 11,363,473 1,700,830 15,718,268 1,684,367 1,050,000
Less - accum. depreciation (591,654) (35,820) (2,688,873) (548,420) 0
Net other property 10,771,819 1,665,010 13,029,395 1,135,947 1,050,000
Investments:
Consolidated subsidiaries 0 2,107,273 0 0 0
Equity investments 0 92,210 0 0 0
Decommissioning trust funds 0 0 0 0 0
Other 0 0 0 0 0
Total Investments 0 2,199,483 0 0 0
Current assets:
Cash 21,861 167,740 345,150 71,040 0
Temp. cash invest - affiliates 0 0 0 0 0
Temp. cash investments 0 1,310,000 0 0 0
Acct. rec. - customers, net 56,350 0 57,405 1,106 0
Acct. rec. - other 0 0 260 0 0
Acct. rec. - intercompany 671,797 1,484,925 0 0 0
Materials and supplies 0 0 0 0 0
Prepayments and other 239,375 10,092 104,583 10,607 0
Total current assets 989,383 2,972,757 507,398 82,753 0
Other assets:
Advances payable to parent 0 0 0 0 2,051
Deferred charges 0 0 123,201 0 0
Regulatory assets 0 0 0 0 0
Other 208,088 0 0 13,441 0
Total other assets 208,088 0 123,201 13,441 2,051
Total assets 11,969,290 6,837,250 13,659,994 1,232,141 1,052,051
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Investments Inc. EXHIBIT A (iv)
Consolidated Balance Sheet PAGE 2 OF 9
As of December 31, 1996
<CAPTION>
IES Village Village 2002 IES
Investco Resorts Lakeshares Develop. Investments
<S> <C> <C> <C> <C> <C>
Assets -
Other property 0 0 7,897,925 2,267,890 (300,781)
Less - accum. depreciation 0 0 (2,241,293) (246,791) 0
Net other property 0 0 5,656,632 2,021,099 (300,781)
Investments:
Consolidated subsidiaries 0 0 0 0 27,639,458
Equity investments 2,500,767 0 0 0 58,527,556
Decommissioning trust funds 0 0 0 0 0
Other 0 0 0 0 0
Total Investments 2,500,767 0 0 0 86,167,014
Current assets:
Cash 0 0 410,574 80,374 0
Temp. cash invest - affiliates 0 0 0 0 0
Temp. cash investments 0 0 0 0 0
Acct. rec. - customers, net 0 0 20,581 3,608 0
Acct. rec. - other 440,000 0 70,263 0 0
Acct. rec. - intercompany 0 0 0 0 1,585,111
Materials and supplies 0 0 80,334 0 0
Prepayments and other 0 0 1,330,272 4,771 0
Total current assets 440,000 0 1,912,024 88,753 1,585,111
Other assets:
Advances payable to parent 0 0 0 0 0
Deferred charges 0 0 0 1,975 0
Regulatory assets 0 0 0 0 0
Other 0 0 3,661,315 0 0
Total other assets 0 0 3,661,315 1,975 0
Total assets 2,940,767 0 11,229,971 2,111,827 87,451,344
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Investments Inc. EXHIBIT A (iv)
Consolidated Balance Sheet PAGE 3 OF 9
As of December 31, 1996
<CAPTION>
Consol.
Eliminat. IES
Subtotal Entries Investments
<S> <C> <C> <C>
Assets -
Other property 41,381,972 (710,518) 40,671,454
Less - accum. depreciation (6,352,851) (6,352,851)
Net other property 35,029,121 (710,518) 34,318,603
Investments:
Consolidated subsidiaries 29,746,731 (29,746,731) 0
Equity investments 61,120,533 61,120,533
Decommissioning trust funds 0 0
Other 0 0
Total Investments 90,867,264 (29,746,731) 61,120,533
Current assets:
Cash 1,096,739 1,096,739
Temp. cash invest - affiliates 0 0
Temp. cash investments 1,310,000 1,310,000
Acct. rec. - customers, net 139,050 139,050
Acct. rec. - other 510,523 510,523
Acct. rec. - intercompany 3,741,833 (2,594,203) 1,147,630
Materials and supplies 80,334 80,334
Prepayments and other 1,699,700 1,699,700
Total current assets 8,578,179 (2,594,203) 5,983,976
Other assets:
Advances payable to parent 2,051 2,051
Deferred charges 125,176 125,176
Regulatory assets 0 0
Other 3,882,844 3,882,844
Total other assets 4,010,071 0 4,010,071
Total assets 138,484,635 (33,051,452) 105,433,183
NOTE: Numbers may not foot due to rounding.
NOTE: IES Investments has several international
investments in "Equity investments"
including a loan to a New Zealand company
and an investment in an international
venture capital fund. These investments
may be included with IES International
Inc. for management purposes.
</TABLE>
<TABLE>
IES Investments Inc. EXHIBIT A (iv)
Consolidated Balance Sheet PAGE 4 OF 9
As of December 31, 1996
<CAPTION>
2001 2060 Center Prairie
Iowa Land Develop. Develop. Place Ridge
<S> <C> <C> <C> <C> <C>
Capitalization and Liabilities -
Capitalization:
Common stock 200,000 8,250,000 4,956,972 1,205,891 1,060,000
Paid-in surplus 9,370,565 0 0 0 0
Retained earnings 903,577 (1,436,364) (3,114,203) (1,087,204) (8,153)
Total common equity 10,474,142 6,813,636 1,842,769 118,687 1,051,847
Long-term debt 0 0 9,422,130 1,023,197 0
Total Capitalization 10,474,142 6,813,636 11,264,899 1,141,884 1,051,847
Current liabilities:
Long-term debt maturities 0 0 0 0 0
Accounts payable - trade 6,099 1,130 26,764 29,990 0
Accounts pay. - intercompany 131,166 0 2,136,785 0 204
Accrued interest 0 0 8,065 913 0
Accrued other taxes 265,993 22,483 215,546 50,100 0
Accrued income taxes 0 0 0 0 0
Other 50,000 0 0 9,250 0
Total current liabilities 453,258 23,613 2,387,160 90,253 204
Long-term liabilities:
Advance from parent 0 0 0 0 0
Environmental liabilities 70,000 0 0 0 0
Other 239,995 0 7,933 0 0
Total long-term liabilities 309,995 0 7,933 0 0
Deferred Credits:
Accum. deferred income taxes 731,895 0 0 0 0
Accum. deferred inv. tax cr. 0 0 0 0 0
Total deferred credits 731,895 0 0 0 0
Total cap. and liabilities 11,969,290 6,837,249 13,659,992 1,232,137 1,052,051
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Investments Inc. EXHIBIT A (iv)
Consolidated Balance Sheet PAGE 5 OF 9
As of December 31, 1996
<CAPTION>
IES Village Village 2002 IES
Investco Resorts Lakeshares Develop. Investments
<S> <C> <C> <C> <C> <C>
Capitalization and Liabilities -
Capitalization:
Common stock 1,000 0 14,107,520 136,191 86,201,037
Paid-in surplus 1,999,829 0 0 0 0
Retained earnings 707,868 0 (4,035,857) (67,510) 886,239
Total common equity 2,708,697 0 10,071,663 68,681 87,087,276
Long-term debt 0 0 4,666 1,543,572 0
Total Capitalization 2,708,697 0 10,076,329 1,612,253 87,087,276
Current liabilities:
Long-term debt maturities 0 0 0 0 0
Accounts payable - trade 0 0 114,417 22,572 0
Accounts pay. - intercompany 82,194 0 0 457,419 0
Accrued interest 0 0 0 4,139 0
Accrued other taxes 0 0 248,935 15,445 0
Accrued income taxes 0 0 0 0 0
Other 0 0 790,291 0 0
Total current liabilities 82,194 0 1,153,643 499,575 0
Long-term liabilities:
Advance from parent 0 0 0 0 0
Environmental liabilities 0 0 0 0 0
Other 0 0 0 0 0
Total long-term liabilities 0 0 0 0 0
Deferred Credits:
Accum. deferred income taxes 149,876 0 0 0 364,068
Accum. deferred inv. tax cr. 0 0 0 0 0
Total deferred credits 149,876 0 0 0 364,068
Total cap. and liabilities 2,940,767 0 11,229,972 2,111,828 87,451,344
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Investments Inc. EXHIBIT A (iv)
Consolidated Balance Sheet PAGE 6 OF 9
As of December 31, 1996
<CAPTION>
Consol.
Eliminat. IES
Subtotal Entries Investments
<S> <C> <C> <C>
Capitalization and Liabilities -
Capitalization:
Common stock 116,118,611 (29,917,574) 86,201,037
Paid-in surplus 11,370,394 (11,370,394) 0
Retained earnings (7,251,607) 7,701,639 450,032
Total common equity 120,237,398 (33,586,329) 86,651,069
Long-term debt 11,993,565 (332,803) 11,660,762
Total Capitalization 132,230,963 (33,919,132) 98,311,831
Current liabilities:
Long-term debt maturities 0 332,803 332,803
Accounts payable - trade 200,972 200,972
Accounts pay. - intercompany 2,807,768 (2,594,203) 213,565
Accrued interest 13,117 13,117
Accrued other taxes 818,502 818,502
Accrued income taxes 0 0
Other 849,541 849,541
Total current liabilities 4,689,900 (2,261,400) 2,428,500
Long-term liabilities:
Advance from parent 0 0
Environmental liabilities 70,000 70,000
Other 247,928 3,403,391 3,651,319
Total long-term liabilities 317,928 3,403,391 3,721,319
Deferred Credits:
Accum. deferred income taxes 1,245,839 (274,311) 971,528
Accum. deferred inv. tax cr. 0 0
Total deferred credits 1,245,839 (274,311) 971,528
Total cap. and liabilities 138,484,630 (33,051,452) 105,433,178
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Investments Inc. EXHIBIT A (iv)
Consolidated Statement of Income PAGE 7 OF 9
For the Year Ended December 31, 1996
<CAPTION>
2001 2060 Center Prairie
Iowa Land Develop. Develop. Place Ridge
<S> <C> <C> <C> <C> <C>
Revenues:
Gas 0 0 0 0 0
Steam 0 0 0 0 0
Other 1,570,366 97,373 2,994,403 291,816 0
Total revenues 1,570,366 97,373 2,994,403 291,816 0
Operating expenses:
Gas purchased for resale 0 0 0 0 0
Other operating expenses 1,098,780 169,117 571,647 91,352 3,468
Maintenance 224,477 25,711 490,245 32,240 735
Depreciation and amortization 34,826 9,660 545,364 67,478 0
Property taxes 85,181 19,945 254,108 56,920 957
Miscellaneous taxes 0 0 0 0 0
Total operating expenses 1,443,264 224,433 1,861,364 247,990 5,160
Operating income (loss) 127,102 (127,060) 1,133,039 43,826 (5,160)
Other income and deductions:
Income from subsidiaries 0 0 0 0 0
Other (748,730) (609,881) 483,542 (1,928) (486)
Total (748,730) (609,881) 483,542 (1,928) (486)
Fixed charges:
Long-term debt 1,991 0 850,047 85,887 0
Income(loss) before inc. taxes 873,841 482,821 (200,550) (40,133) (4,674)
Federal and state income taxes:
Current 11,164 0 0 0 0
Deferred 355,669 0 0 0 0
Amortization of inv. tax. cr. 0 0 0 0 0
Total income taxes 366,833 0 0 0 0
Net Income (Loss) 507,008 482,821 (200,550) (40,133) (4,674)
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Investments Inc. EXHIBIT A (iv)
Consolidated Statement of Income PAGE 8 OF 9
For the Year Ended December 31, 1996
<CAPTION>
IES Village Village 2002 IES
Investco Resorts Lakeshares Develop. Investments
<S> <C> <C> <C> <C> <C>
Revenues:
Gas 0 0 0 0 0
Steam 0 0 0 0 0
Other 0 0 4,313,353 479,113 0
Total revenues 0 0 4,313,353 479,113 0
Operating expenses:
Gas purchased for resale 0 0 0 0 0
Other operating expenses 32,088 0 5,297,598 157,028 0
Maintenance 0 0 161,000 89,125 0
Depreciation and amortization 0 0 568,585 78,622 0
Property taxes 0 0 154,602 16,497 0
Miscellaneous taxes 0 0 0 0 0
Total operating expenses 32,088 0 6,181,785 341,272 0
Operating income (loss) (32,088) 0 (1,868,432) 137,841 0
Other income and deductions:
Income from subsidiaries 0 0 0 0 (173,284)
Other (1,352,108) 0 (429,391) 19,828 (1,472,173)
Total (1,352,108) 0 (429,391) 19,828 (1,645,457)
Fixed charges:
Long-term debt 34,736 0 19,424 133,523 131,526
Income(loss) before inc. taxes 1,285,284 0 (1,458,465) (15,510) 1,513,931
Federal and state income taxes:
Current 418,473 0 0 0 11,858
Deferred 115,026 0 (249,768) 0 (119,804)
Amortization of inv. tax. cr. 0 0 0 0 0
Total income taxes 533,499 0 (249,768) 0 (107,946)
Net Income (Loss) 751,785 0 (1,208,697) (15,510) 1,621,877
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Investments Inc. EXHIBIT A (iv)
Consolidated Statement of Income PAGE 9 OF 9
For the Year Ended December 31, 1996
<CAPTION>
Consol.
Eliminat. IES
Subtotal Entries Investments
<S> <C> <C> <C>
Revenues:
Gas 0 0
Steam 0 0
Other 9,746,424 9,746,424
Total revenues 9,746,424 0 9,746,424
Operating expenses:
Gas purchased for resale 0 0
Other operating expenses 7,421,078 7,421,078
Maintenance 1,023,533 1,023,533
Depreciation and amortization 1,304,535 1,304,535
Property taxes 588,210 588,210
Miscellaneous taxes 0 0
Total operating expenses 10,337,356 0 10,337,356
Operating income (loss) (590,932) 0 (590,932)
Other income and deductions:
Income from subsidiaries (173,284) 173,072 (212)
Other (4,111,327) 207,792 (3,903,535)
Total (4,284,611) 380,864 (3,903,747)
Fixed charges:
Long-term debt 1,257,134 (108,796) 1,148,338
Income(loss) before inc. taxes 2,436,545 (272,068) 2,164,477
Federal and state income taxes:
Current 441,495 441,495
Deferred 101,123 101,123
Amortization of inv. tax. cr. 0 0
Total income taxes 542,618 0 542,618
Net Income (Loss) 1,893,927 (272,068) 1,621,859
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Energy Inc. EXHIBIT A (v)
Consolidated Balance Sheet PAGE 1 OF 6
As of December 31, 1996
<CAPTION>
IES
IEA Whiting Ely Energy Subtotal
<S> <C> <C> <C> <C> <C>
Assets -
Other property 33,916,360 159,742,869 0 0 193,659,229
Less - accum. depreciation (3,822,091) (46,214,162) 0 0 (50,036,253)
Net other property 30,094,269 113,528,707 0 0 143,622,976
Investments:
Consolidated subsidiaries 0 0 0 136,131,427 136,131,427
Equity investments 0 0 0 0 0
Decommissioning trust funds 0 0 0 0 0
Other 0 0 104,614 0 104,614
Total Investments 0 0 104,614 136,131,427 136,236,041
Current assets:
Cash 2,390,679 779,819 27,098 0 3,197,596
Temp. cash invest - affiliates 0 0 0 0 0
Temp. cash investments 0 0 0 0 0
Acct. rec. - customers, net 17,593,565 7,631,638 0 0 25,225,203
Acct. rec. - other 0 728,205 0 0 728,205
Acct. rec. - intercompany 1,390,335 4,625,509 0 0 6,015,844
Income tax refunds receivable 0 0 0 0 0
Materials and supplies 0 0 0 0 0
Prepayments and other 728,555 1,888,499 0 0 2,617,054
Total current assets 22,103,134 15,653,670 27,098 0 37,783,902
Other assets:
Deferred charges 0 0 0 0 0
Regulatory assets 0 0 0 0 0
Other 6,100 44,141 0 0 50,241
Total other assets 6,100 44,141 0 0 50,241
Total assets 52,203,503 129,226,518 131,712 136,131,427 317,693,160
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Energy Inc. EXHIBIT A (v)
Consolidated Balance Sheet PAGE 2 OF 6
As of December 31, 1996
<CAPTION>
Consol.
Eliminat. IES
Subtotal Entries Energy
<S> <C> <C> <C>
Assets -
Other property 193,659,229 193,659,229
Less - accum. depreciation (50,036,253) (50,036,253)
Net other property 143,622,976 0 143,622,976
Investments:
Consolidated subsidiaries 136,131,427 (136,131,427) 0
Equity investments 0 0
Decommissioning trust funds 0 0
Other 104,614 104,614
Total Investments 136,236,041 (136,131,427) 104,614
Current assets:
Cash 3,197,596 3,197,596
Temp. cash invest - affiliates 0 0
Temp. cash investments 0 0
Acct. rec. - customers, net 25,225,203 25,225,203
Acct. rec. - other 728,205 728,205
Acct. rec. - intercompany 6,015,844 (1,385,651) 4,630,193
Income tax refunds receivable 0 0
Materials and supplies 0 0
Prepayments and other 2,617,054 2,617,054
Total current assets 37,783,902 (1,385,651) 36,398,251
Other assets:
Deferred charges 0 0
Regulatory assets 0 0
Other 50,241 50,241
Total other assets 50,241 0 50,241
Total assets 317,693,160 (137,517,078) 180,176,082
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Energy Inc. EXHIBIT A (v)
Consolidated Balance Sheet PAGE 3 OF 6
As of December 31, 1996
<CAPTION>
IES
IEA Whiting Ely Energy Subtotal
<S> <C> <C> <C> <C> <C>
Capitalization and Liabilities -
Capitalization:
Common stock 30,855,842 100,039,352 131,712 128,622,967 259,649,873
Paid-in surplus 0 0 0 0 0
Retained earnings 1,724,788 3,420,036 0 8,345,005 13,489,829
Total common equity 32,580,630 103,459,388 131,712 136,967,972 273,139,702
Long-term debt 0 0 0 0 0
Total Capitalization 32,580,630 103,459,388 131,712 136,967,972 273,139,702
Current liabilities:
Long-term debt maturities 0 0 0 0 0
Accounts payable - trade 16,780,740 7,889,272 0 0 24,670,012
Accounts pay. - intercompany 1,628,441 0 0 0 1,628,441
Accrued interest 0 0 0 0 0
Accrued other taxes 186,253 425,754 0 0 612,007
Accrued income taxes 0 334,930 0 0 334,930
Other 90,691 1,520,173 0 100,000 1,710,864
Total current liabilities 18,686,125 10,170,129 0 100,000 28,956,254
Long-term liabilities:
Advance from parent 0 0 0 0 0
Environmental liabilities 0 7,034,000 0 0 7,034,000
Other 0 0 0 0 0
Total long-term liabilities 0 7,034,000 0 0 7,034,000
Deferred Credits:
Accum. deferred income taxes 936,749 8,563,000 0 (936,546) 8,563,203
Accum. deferred inv. tax cr. 0 0 0 0 0
Total deferred credits 936,749 8,563,000 0 (936,546) 8,563,203
Total cap. and liabilities 52,203,504 129,226,517 131,712 136,131,426 317,693,159
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Energy Inc. EXHIBIT A (v)
Consolidated Balance Sheet PAGE 4 OF 6
As of December 31, 1996
<CAPTION>
Consol.
Eliminat. IES
Subtotal Entries Energy
<S> <C> <C> <C>
Capitalization and Liabilities -
Capitalization:
Common stock 259,649,873 (131,026,906) 128,622,967
Paid-in capital 0 0
Retained earnings 13,489,829 (5,144,824) 8,345,005
Total common equity 273,139,702 (136,171,730) 136,967,972
Long-term debt 0 0
Total Capitalization 273,139,702 (136,171,730) 136,967,972
Current liabilities:
Long-term debt maturities 0 0
Accounts payable - trade 24,670,012 24,670,012
Accounts pay. - intercompany 1,628,441 (1,385,651) 242,790
Accrued interest 0 0
Accrued other taxes 612,007 612,007
Accrued income taxes 334,930 334,930
Other 1,710,864 1,710,864
Total current liabilities 28,956,254 (1,385,651) 27,570,603
Long-term liabilities:
Advance from parent 0 0
Environmental liabilities 7,034,000 7,034,000
Other 0 40,303 40,303
Total long-term liabilities 7,034,000 40,303 7,074,303
Deferred Credits:
Accum. deferred income taxes 8,563,203 8,563,203
Accum. deferred inv. tax cr. 0 0
Total deferred credits 8,563,203 0 8,563,203
Total cap. and liabilities 317,693,159 (137,517,078) 180,176,081
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Energy Inc. EXHIBIT A (v)
Consolidated Statement of Income PAGE 5 OF 6
For the Year Ended December 31, 1996
<CAPTION>
IES
IEA Whiting Ely Energy Subtotal
<S> <C> <C> <C> <C> <C>
Revenues:
Gas 113,114,630 0 0 0 113,114,630
Steam 4,362,130 0 0 0 4,362,130
Other 9,455,572 65,724,379 0 0 75,179,951
Total revenues 126,932,332 65,724,379 0 0 192,656,711
Operating expenses:
Gas purchased for resale 114,899,989 0 0 0 114,899,989
Other operating expenses 14,347,844 29,721,935 0 100,000 44,169,779
Maintenance 297,050 0 0 0 297,050
Depreciation and amortization 892,311 18,488,841 0 0 19,381,152
Property taxes 159,600 0 0 0 159,600
Miscellaneous taxes 0 2,438,020 0 0 2,438,020
Total operating expenses 130,596,794 50,648,796 0 100,000 181,345,590
Operating income (loss) (3,664,462) 15,075,583 0 (100,000) 11,311,121
Other income and deductions:
Income from subsidiaries 0 0 0 (7,841,832) (7,841,832)
Other (17,685) (76,248) 1,419 0 (92,514)
Total (17,685) (76,248) 1,419 (7,841,832) (7,934,346)
Fixed charges:
Long-term debt 135,607 104,555 0 0 240,162
Income(loss) before inc. taxes (3,782,384) 15,047,276 (1,419) 7,741,832 19,005,305
Federal and state income taxes:
Current (1,270,569) 2,337,000 0 0 1,066,431
Deferred (327,368) 2,683,000 0 (41,979) 2,313,653
Amortization of inv. tax. cr. 0 0 0 0 0
Total income taxes (1,597,937) 5,020,000 0 (41,979) 3,380,084
Net Income (Loss) (2,184,447) 10,027,276 (1,419) 7,783,811 15,625,221
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES Energy Inc. EXHIBIT A (v)
Consolidated Statement of Income PAGE 6 OF 6
For the Year Ended December 31, 1996
<CAPTION>
Consol.
Eliminat. IES
Subtotal Entries Energy
<S> <C> <C> <C>
Revenues:
Gas 113,114,630 113,114,630
Steam 4,362,130 4,362,130
Other 75,179,951 (1,671,105) 73,508,846
Total revenues 192,656,711 (1,671,105) 190,985,606
Operating expenses:
Gas purchased for resale 114,899,989 (1,425,990) 113,473,999
Other operating expenses 44,169,779 (245,115) 43,924,664
Maintenance 297,050 297,050
Depreciation and amortization 19,381,152 19,381,152
Property taxes 159,600 159,600
Miscellaneous taxes 2,438,020 2,438,020
Total operating expenses 181,345,590 (1,671,105) 179,674,485
Operating income (loss) 11,311,121 0 11,311,121
Other income and deductions:
Income from subsidiaries (7,841,832) 7,841,832 0
Other (92,514) (434) (92,948)
Total (7,934,346) 7,841,398 (92,948)
Fixed charges:
Long-term debt 240,162 240,162
Income(loss) before inc. taxes 19,005,305 (7,841,398) 11,163,907
Federal and state income taxes:
Current 1,066,431 1,066,431
Deferred 2,313,653 2,313,653
Amortization of inv. tax. cr. 0 0
Total income taxes 3,380,084 0 3,380,084
Net Income (Loss) 15,625,221 (7,841,398) 7,783,823
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES International Inc. EXHIBIT A (vi)
Consolidated Balance Sheet PAGE 1 OF 3
As of December 31, 1996
<CAPTION>
Consol.
IES IES Eliminat. IES
New Zealand International Subtotal Entries International
<S> <C> <C> <C> <C> <C>
Assets -
Other property 0 0 0 0
Less - accum. depreciation 0 0 0 0
Net other property 0 0 0 0 0
Investments:
Consolidated subsidiaries 0 19,540,535 19,540,535 (19,540,535) 0
Equity investments 0 0 0 0
Decommissioning trust funds 0 0 0 0
Investment in foreign entities 19,683,049 13,597,794 33,280,843 33,280,843
Other 0 0 0 0
Total Investments 19,683,049 33,138,329 52,821,378 (19,540,535) 33,280,843
Current assets:
Cash 0 0 0 0
Temp. cash invest - affiliates 0 0 0 0
Temp. cash investments 0 0 0 0
Acct. rec. - customers, net 0 0 0 0
Acct. rec. - other 0 0 0 0
Acct. rec. - intercompany 135,694 0 135,694 (135,694) 0
Income tax refunds receivable 0 0 0 0
Materials and supplies 0 0 0 0
Prepayments and other 0 0 0 0
Total current assets 135,694 0 135,694 (135,694) 0
Other assets:
Deferred charges 0 0 0 0
Regulatory assets 0 0 0 0
Other 0 0 0 0
Total other assets 0 0 0 0 0
Total assets 19,818,743 33,138,329 52,957,072 (19,676,229) 33,280,843
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES International Inc. EXHIBIT A (vi)
Consolidated Balance Sheet PAGE 2 OF 3
As of December 31, 1996
<CAPTION>
Consol.
IES IES Eliminat. IES
New Zealand International Subtotal Entries International
<S> <C> <C> <C> <C> <C>
Capitalization and Liabilities -
Capitalization:
Common stock 18,519,619 16,561,553 35,081,172 (18,519,619) 16,561,553
Paid-in surplus 0 0 0 0
Retained earnings 1,020,916 427,446 1,448,362 (1,020,916) 427,446
Total common equity 19,540,535 16,988,999 36,529,534 (19,540,535) 16,988,999
Cum. pref. stock 0 15,879,002 15,879,002 15,879,002
Total Capitalization 19,540,535 32,868,001 52,408,536 (19,540,535) 32,868,001
Current liabilities:
Long-term debt maturities 0 0 0 0
Accounts payable - trade 0 65,000 65,000 65,000
Accounts pay. - intercompany 0 720,870 720,870 (135,694) 585,176
Accrued interest 0 0 0 0
Accrued other taxes 0 0 0 0
Accrued income taxes 278,208 0 278,208 278,208
Other 0 0 0 0
Total current liabilities 278,208 785,870 1,064,078 (135,694) 928,384
Long-term liabilities:
Advance from parent 0 0 0 0
Environmental liabilities 0 0 0 0
Other 0 0 0 0
Total long-term liabilities 0 0 0 0 0
Deferred Credits:
Accum. deferred income taxes 0 (515,542) (515,542) (515,542)
Accum. deferred inv. tax cr. 0 0 0 0
Total deferred credits 0 (515,542) (515,542) 0 (515,542)
Total cap. and liabilities 19,818,743 33,138,329 52,957,072 (19,676,229) 33,280,843
NOTE: Numbers may not foot due to rounding.
</TABLE>
<TABLE>
IES International Inc. EXHIBIT A (vi)
Consolidated Statement of Income PAGE 3 OF 3
For the Year Ended December 31, 1996
<CAPTION>
Consol.
IES IES Eliminat. IES
New Zealand International Subtotal Entries International
<S> <C> <C> <C> <C> <C>
Revenues:
Gas 0 0 0 0
Steam 0 0 0 0
Other 0 0 0 0
Total revenues 0 0 0 0 0
Operating expenses:
Gas purchased for resale 0 0 0 0
Other operating expenses 1 1,107,372 1,107,373 1,107,373
Maintenance 0 0 0 0
Depreciation and amortization 0 0 0 0
Property taxes 0 0 0 0
Miscellaneous taxes 0 0 0 0
Total operating expenses 1 1,107,372 1,107,373 0 1,107,373
Operating income (loss) (1) (1,107,372) (1,107,373) 0 (1,107,373)
Other income and deductions:
Income from consol. subsidiaries 0 (1,020,917) (1,020,917) 1,020,917 0
Income from equity subsidiaries 0 (250,000) (250,000) (250,000)
Other (1,356,089) (50,301) (1,406,390) (1,406,390)
Total (1,356,089) (1,321,218) (2,677,307) 1,020,917 (1,656,390)
Fixed charges:
Long-term debt 53,386 14,580 67,966 67,966
Income before income taxes 1,302,702 199,266 1,501,968 (1,020,917) 481,051
Federal and state income taxes:
Current 281,787 287,361 569,148 569,148
Deferred 0 (515,542) (515,542) (515,542)
Amortization of inv. tax. cr. 0 0 0 0
Total income taxes 281,787 (228,181) 53,606 0 53,606
Net Income 1,020,915 427,447 1,448,362 (1,020,917) 427,445
NOTE: Numbers may not foot due to rounding.
</TABLE>
