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 quarterly period ended December 31, 1993
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-1160
THE PROVIDENCE GAS COMPANY
(Exact name of registrant as specified in its charter)
Rhode Island 05-0203650
(State or other jurisdiction of (I.R.S. Employer)
incorporation or organization) Identification No.)
100 Weybosset Street, Providence, Rhode Island 02903
(Address of principal executive offices)
(Zip Code)
401-272-5040
Registrant's telephone number, including area code
(Former name, former address and former fiscal year, if changed
since last report)
Indicate by checkmark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No .
APPLICABLE ONLY TO CORPORATE ISSUERS:
Common Stock, $1.00 par value; 1,243,598 shares outstanding at
February 14, 1994.
</PAGE>
THE PROVIDENCE GAS COMPANY
FORM 10-Q
DECEMBER 31, 1993
PART I: FINANCIAL INFORMATION PAGE
Item 1 - Financial Statements
Consolidated Statements of Income for the
three and twelve months ended
December 31, 1993 and 1992 I-1
Consolidated Balance Sheets as of
December 31, 1993, December 31, 1992
and September 30, 1993 I-2
Consolidated Statements of Cash Flows for the
three months ended December 31, 1993 and 1992 I-3
Consolidated Statements of Capitalization as of
December 31, 1993, December 31, 1992
and September 30, 1993 I-4
Notes to Consolidated Financial Statements I-5
Item 2 - Management's Discussion and Analysis of
Financial Conditions and Results of Operations I-9
PART II: OTHER INFORMATION
Item 6 - Exhibits, Reports on Form 8-K and Signature II-1
</PAGE>
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
THE PROVIDENCE GAS COMPANY
STATEMENTS OF INCOME
FOR THE PERIODS ENDED DECEMBER 31
(Unaudited)
THREE MONTHS TWELVE MONTHS
1993 1992 1993 1992
(thousands, except per share amounts)
Operating revenues $62,055 $60,574 $207,533 $195,247
Cost of gas sold 38,369 37,011 126,035 115,094
Operating margin 23,686 23,563 81,498 80,153
Operating expenses:
Other operation 10,317 9,381 40,300 39,754
Maintenance 767 774 3,480 3,135
Depreciation and amortization 2,321 2,235 8,987 8,613
Taxes -
State gross receipts 1,863 1,520 6,091 4,998
Local property and other 1,588 1,624 6,680 6,688
Federal income 1,858 2,200 3,309 3,545
Total operating expenses 18,714 17,734 68,847 66,733
Operating income 4,972 5,829 12,651 13,420
Other income (loss), net 194 (30) 357 604
Income before interest expense 5,166 5,799 13,008 14,024
Interest expense:
Long-term debt 1,118 1,118 5,170 4,337
Other 271 465 1,261 2,292
Interest capitalized (22) (23) (78) (118)
1,367 1,560 6,353 6,511
Net income 3,799 4,239 6,655 7,513
Dividends on preferred stock (174) (174) (696) (696)
Net income applicable to
common stock $ 3,625 $ 4,065 $ 5,959 $ 6,817
======= ======= ======== ========
Earnings per common share $ 2.91 $ 3.27 $ 4.79 $ 5.48
======= ======= ======== ========
PAGE I-1
</PAGE>
Dividends paid per common share $ .89 $ .89 $ 3.56 $ 3.56
======= ======= ======== ========
Weighted average common shares
outstanding 1,243.6 1,243.6 1,243.6 1,243.6
======= ======= ======= ========
PAGE I-1a
</PAGE>
THE PROVIDENCE GAS COMPANY
BALANCE SHEETS
(Unaudited)
(Thousands)
December 31, December 31, September 30,
1993 1992 1993
ASSETS
Gas plant, at original cost $217,125 $205,500 $213,218
Less - Accumulated depreciation and
utility plant acquisition adjustment 73,337 66,108 71,289
143,788 139,392 141,929
Current assets:
Cash and temporary cash investments 3,545 1,461 597
Accounts receivable, less allowance of
$2,179 at 12/31/93, $2,354 at 12/31/92
and $2,354 at 9/30/93 30,746 25,680 16,940
Unbilled revenues 12,016 11,206 2,787
Deferred gas costs 24,189 2,377 16,369
Inventories, at average cost -
Liquefied natural gas, propane and
underground storage 9,846 7,545 11,363
Materials and supplies 1,781 1,553 1,763
Deferred capacity charges - 1,007 -
Prepaid and refundable taxes 4,060 4,802 6,169
Prepayments 1,011 1,063 837
87,194 56,694 56,825
Deferred charges and other assets 16,440 10,693 12,657
Total assets $247,422 $206,779 $211,411
======== ======== ========
CAPITALIZATION AND LIABILITIES
Capitalization: $135,823 $118,210 $135,024
Current liabilities:
Notes payable 35,000 32,695 20,800
Current portion of long-term debt 2,071 1,852 466
Gas supplier refunds - 2,808 -
Accounts payable 22,761 15,775 18,463
Accrued taxes 7,727 8,023 7,356
Accrued vacation 1,681 1,681 1,664
Customer deposits 3,157 2,749 2,895
Other 3,303 2,406 2,955
75,700 67,989 54,599
Deferred credits and reserves:
Accumulated deferred Federal income
taxes 18,312 13,249 13,423
Unamortized investment tax credits 2,945 3,103 2,984
Other 14,642 4,228 5,381
35,899 20,580 21,788
Total capitalization and liabilities $247,422 $206,779 $211,411
======== ======== ========
PAGE I-2
</PAGE>
THE PROVIDENCE GAS COMPANY
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED DECEMBER 31
(Unaudited)
1993 1992
(Thousands of Dollars)
Cash provided by (used for)
Operations:
Net income $ 3,799 $ 4,239
Items not requiring cash:
Depreciation and amortization 2,320 2,290
Deferred Federal income taxes 118 141
Amortization of investment tax credits (39) (37)
Changes in assets and liabilities
which provided (used) cash:
Accounts receivable (13,806) (11,325)
Unbilled revenues (9,229) (7,855)
Deferred gas costs 580 (2,377)
Inventories 1,499 (56)
Deferred capacity charges - 336
Prepaid and refundable taxes 3,028 1,663
Prepayments (174) 116
Gas supplier refunds - 2,808
Accounts payable 5,098 5,570
Accrued taxes 637 841
Refundable gas costs - (1,767)
Accrued vacation, customer deposits
and other 627 (127)
Net cash used for operations (5,542) (5,540)
Investment Activities:
Expenditures for property, plant and
equipment (4,220) (3,701)
Deferred charges and other (95) (402)
Total (4,315) (4,103)
Financing Activities:
Issuance of mortgage bonds 16,000 -
Payments on long-term debt (114) (122)
Increase in notes payable, net (1,800) 12,285
Cash dividends on preferred stock (174) (174)
Cash dividends on common stock (1,107) (1,106)
Total 12,805 10,883
Increase in cash & temporary cash
investments 2,948 1,240
Cash and cash equivalents at beginning
of period 597 221
Cash and cash equivalents at end of period $ 3,545 $ 1,461
======== ========
Supplemental disclosures of cash flow information:
Cash paid during the period-
Interest (net of amount capitalized) $ 911 $ 1,520
Income taxes (net of refunds) $ 93 $ 1,300
PAGE I-3
</PAGE>
THE PROVIDENCE GAS COMPANY
CONSOLIDATED STATEMENTS OF CAPITALIZATION
(UNAUDITED)
(Thousands)
December 31, December 31, September 30,
1993 1992 1993
Common stock equity:
Common stock, $1 par
Authorized - 2,500 shares
Outstanding - 1,244 as of 12/31/93,
12/31/92 and 9/30/93 $ 1,244 $ 1,244 $ 1,244
Amount paid in excess of par 36,452 19,966 36,452
Retained earnings 29,683 28,152 27,165
Total common stock equity 67,379 49,362 64,861
Cumulative preferred stock:
Redeemable 8.70% Series, $100 par
Authorized - 80 shares
Outstanding - 80 shares as of
12/31/93, 12/31/92 and 9/30/93 8,000 8,000 8,000
Long-term debt:
First mortgage bonds 61,000 53,200 61,000
Senior debentures - 7,533 -
Capital leases 1,515 1,967 1,629
Total long-term debt 62,515 62,700 62,629
Less: current portion 2,071 1,852 466
Long-term debt, net 60,444 60,848 62,163
Total capitalization $135,823 $ 118,210 $135,024
======== ========= ========
PAGE I-4
</PAGE>
THE PROVIDENCE GAS COMPANY
Notes to Consolidated Financial Statements
Accounting Policies
It is the Registrant's opinion that the financial information
contained in
this report reflects all normal, recurring adjustments necessary to
a fair
statement of the results for the periods reported; however, such
results are
not necessarily indicative of results to be expected for the year,
due to the
seasonal nature of the Registrant's operations. Certain
information and
footnote disclosures normally included in financial statements
prepared in
accordance with generally accepted accounting principles have been
condensed or
omitted in this Form 10-Q pursuant to the rules and regulations of
the
Securities and Exchange Commission. However, the disclosures
herein when read
with the annual report for 1993 filed on Form 10-K are adequate to
make the
information presented not misleading.
Reclassification
Certain prior year income statement amounts have been
reclassified for
consistent presentation with the current period.
Environmental Matters
Federal, state, and local laws and regulations establishing
standards and
requirements for the protection of the environment have increased
both in
number and in scope within recent years. The Registrant cannot
predict the
future impact of such standards and requirements, which are subject
to change
and can take effect retroactively. The Registrant continues to
monitor the
status of these laws and regulations. Such monitoring involves the
review of
past and current operations and properties. To the best of its
knowledge,
subject to the following two paragraphs, the Registrant believes it
is in
substantial compliance with such laws and regulations. However,
should future
costs be incurred, the Registrant anticipates recovery from third
parties or
through its rate filings.
At one property formerly owned by the Registrant, a study was
done to
determine the extent of the environmental contamination at the
property. This
study is currently being reviewed by the Rhode Island Department of
Environmental Management. The Registrant is unable to predict the
future costs
that may be incurred for this site. However, based upon current
information,
the Registrant does not believe the outcome of this matter will
have a material
impact on its results of operations and financial condition.
In January 1990, the Registrant received notice from the
Massachusetts
Department of Environmental Protection that it is one of several
"potentially
responsible parties" under the Comprehensive Environmental Response
PAGE I-5
</PAGE>
Compensation and Liability Act and also the Superfund Amendment and
Reauthorization Act. This will require the Registrant to share in
clean-up
costs, if any, at a waste disposal site in Massachusetts. While no
preliminary
estimates of costs are currently available, the Registrant's degree
of
responsibility is believed to be minimal.
Management anticipates requesting rate relief for all costs
related to
environmental matters and believes that the resolution of these
matters will
not have a materially adverse effect on the Registrant's results of
operations
and financial condition.
FERC Order 636
In August 1992, the Federal Energy Regulatory Commission
issued a
companion document to Order 636 (Issued April 1992) called Order
636-A. A
combination of principles contained in the documents will make a
number of
significant changes to the structure of services provided by
interstate natural
gas companies. Furthermore, pipelines must provide transportation
services
that are equal in quantity for all gas supplies, whether purchased
from the
pipeline or another supplier of natural gas.
In response to Order 636 and Order 636-A, the Registrant has
solicited
supply proposals from major producers and marketers. Also, the
Registrant is
reviewing different pipeline service options and is exploring new
underground
storage opportunities in an effort to restructure its existing
long-term
contracts. These actions are expected to permit the Registrant to
achieve a
diverse, secure, flexible and economical supply portfolio.
Additional one time
expenses, such as contract exit fees, are anticipated in the
short-term as a
result of the Orders. At the appropriate time, full recovery of
certain costs
related to the Orders will be pursued by the Registrant through the
regulatory
process.
Based upon current information, the Registrant anticipates
transition
costs to total $15 million. Of this amount, the Registrant, as of
November
1993, has currently began recovering $5.8 million through its Cost
of Gas
Adjustment Clause (CGA). The Registrant has recorded a liability
of $15
million along with a regulatory asset anticipating future recovery.
Furthermore, the Registrant expects to eventually realize
long-term
savings in its gas costs. With the necessary resources in place,
the
Registrant anticipates that it can properly manage this matter and
that this
matter will not have a material impact on the Registrant's
financial position
or results of operations.
Properties
ProvGas owns properties that are located in Providence, Rhode
Island
PAGE I-6
</PAGE>
adjacent to the Providence River. These properties, along with
much of
downtown Providence, appear to have been the result of the filling
of lands
formerly flowed by tidal waters. The extent to which ProvGas'
properties
consist of such land cannot be established with precision, but they
most likely
include its main distribution center and the land on which is
situated the
Algonquin LNG storage tank.
In 1991, the Rhode Island Supreme Court issued an opinion
containing
statements to the effect that the State retains title to shoreland
created by
fill from ocean dredging. The statements appear to contradict
earlier judicial
authority to the effect that where the owner of land abutting the
river extends
the upland out from the natural shoreline to an established harbor
line, all of
the rights of the public in the upland, as extended, are
extinguished.
Although to date the Rhode Island Supreme Court has not
clarified its
opinion and the Rhode Island legislature has taken no meaningful
action to
resolve the problem, management believes no action will be taken by
the State
which will interfere in any material way with ProvGas' ability to
conduct its
normal course of operations or impact its financial condition.
FASB 106
On October 1, 1993, the Registrant adopted the provisions of
the Statement
of Financial Accounting Standards No. 106, "Employers' Accounting
for Post-
retirement Benefits Other Than Pensions" (SFAS No. 106). SFAS No.
106 requires
that these benefits, which include health care and life insurance,
be accrued
over the service life of covered employees. Prior to the adoption
of SFAS 106,
the Registrant accounted for these costs when paid. The
Registrant's
actuarially calculated amount of prior service costs (transition
obligation),
not previously accrued, is estimated at approximately $9.9 million.
The
Registrant's annual expense for fiscal 1994, including the
amortization of the
transition obligation over twenty years, is approximately $1.5
million. The
Registrant will recognize additional expenses of $900,000 during
fiscal 1994 as
a result of SFAS No. 106 as compared to the previous
"pay-as-you-go" method.
The Registrant's estimated transition obligation and expense
under SFAS
No. 106 are derived using a discount rate of eight percent with a
medical care
cost trend of 13.8 percent. A one percent change in the medical
care rate
would impact the estimated transition obligation by $1.3 million
while the
change in the annual expense component would be $100,000.
The Rhode Island Public Utility Commission (RIPUC) has allowed
the
Registrant to recover only those post-retirement benefit costs
which can be tax
effectively funded. The Registrant expects to fund approximately
$1.2 million
of the $1.5 million annual post-retirement benefit costs. The
$300,000 short-
fall will be expensed without current recovery.
The RIPUC has also required the Registrant to delay full
recovery of the
$1.2 million funded amount. The Registrant is allowed recovery of
the
PAGE I-7
</PAGE>
incremental difference above the "pay-as-you-go" amount
(approximately
$600,000) and the amount tax effectively funded ($1.2 million) over
a three
year period with
one-third of the incremental cost recovered each year.
Amounts funded, but not recovered during fiscal years 1994 and
1995 will be
deferred and will be recovered over a seven year period beginning
in fiscal
1997. As of December 31, 1993, $200,000 has been deferred.
FAS 109
The Company has adopted the Financial Accounting Standards Board
(FASB) new
standard on Accounting for Income Taxes (FAS 109). The
accompanying financial
statements reflects this new accounting. The Company did not
restate prior
periods.
The standard requires the use of the liability method of
accounting. Under
this method, the existing deferred tax accounts on the accompanying
balance
sheet have been adjusted to reflect the effect of currently enacted
tax rates
applicable to the years in which these taxes will become payable.
Also, the
accounts have been adjusted to reflect the cumulative timing
differences for
which deferred taxes had not been previously recorded.
Consistent with regulatory precedent, the related adjustments to
the
deferred tax accounts will be recovered from or returned to
ratepayers in
future periods. As a result, the adoption of FAS 109 has not had
an impact on
current earnings and is not expected to impact future earnings.
The Company
has recorded a net regulatory asset of $3.6 million upon adoption
of FAS 109.
PAGE I-8
</PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The Registrant's current operating revenues and operating
margin have increased, while net income decreased over the comparable
periods presented, as shown in the table below:
THREE MONTHS TWELVE MONTHS
1993 1992 1993 1992
(thousands of dollars)
Operating revenues $62,055 $60,574 $207,533 $195,247
======= ======= ======== ========
Operating margin $23,686 $23,563 $ 81,498 $ 80,153
======= ======= ======== ========
Net income applicable $ 3,625 $ 4,065 $ 5,959 $ 6,817
to common stock ======= ======= ======== ========
Factors having a direct impact on these results were:
Rate Design: The Rhode Island Public Utilities Commission
(RIPUC) in 1993
approved the Registrant's request to adopt a declining block rate
structure.
This structure allows the Registrant to recover more fixed costs
from rates
immediately when a customer begins buying natural gas. Also, the
structure
will help balance customer bills during the year and will help
protect the
Registrant and the customers during periods of extreme weather
conditions.
This results in a stabilization of earnings from year to year. For
accounting
and gas costs recovery purposes, the Registrant will record the
embedded cost
of gas using seasonal gas factors; $4.36 per Mcf in the heating
season (October
through March) and $2.77 per Mcf in the non-heating season (April
through
September). The effect of the seasonal gas cost accounting will be
that the
quarterly operating margin will decrease in the heating season and
increase in
the non-heating season when compared to the previous method.
Annual earnings,
however, should not be affected by this rate design change.
Another attribute of the new rate design structure, as
compared to the
previous method, is a higher customer charge. The average monthly
customer
charge has been increased to recognize that a substantial portion
of the
Registrant's costs are relatively fixed and must be recovered from
customers
even when gas consumption is less than expected. The Registrant's
volumetric
charge has decreased in order to offset the increased customer
charge.
PAGE I-9
</PAGE>
Degree Days: The following table illustrates the change in
degree days
(weather) during the quarter and twelve month periods this year
versus last
year.
1993 1992 Change % Change
Three months 1,998 2,007 (9) (.5)
Twelve months 5,709 5,769 (60) (1.0)
The net increase in the average number of customers for the
latest quarter
and twelve month periods was approximately 2,100 and 1,400,
respectively.
Although the actual increase for new customers exceeded one percent
for both
the current quarter and twelve month period, this was offset by a
greater than
normal number of shut-offs for non-payments and housing vacancies
during 1992.
The increase in customers was the result of new housing
construction and
conversions from other energy sources.
As a result of stable temperatures experienced during the
latest quarter
and twelve month periods (as compared to the prior period),
residential sales
(which provide the Registrant with its greatest source of sales)
increased 20
million cubic feet (MMcf) or .6 percent and 230 MMcf or 1.7
percent,
respectively.
Non-firm sales for the current three and twelve month periods
decreased
200 MMcf or 15.3 percent and 2,714 MMcf or 40.3 percent,
respectively. Non-
firm revenues have decreased $400,000 or 11.5 percent and $1.1
million or 9.1
percent for the current three and twelve month periods,
respectively, as
compared to last year. The decrease in non-firm sales for the
current quarter
and twelve month periods reflects the expiration of a short-term
contract in
November 1992 with a cogeneration customer that was located outside
of the
Registrant's service territory. However, this did not have a
material impact
on the Registrant's results of operation due to the Registrant's
1992 non-firm
margin sharing agreement.
Firm revenues were $58.7 million for the latest quarter, an
increase of
$2.0 million or 3.5 percent over the same period last year. For
the current
twelve month period, firm revenues have increased by $13.3 million
or 7.3
percent. The increases are the result of higher gas costs (passed
on to
customers through the Cost of Gas Adjustment Clause (CGA),
additional customers
and rate increases implemented in November 1993. For additional
information on
the rate case awards, please refer to the discussion of liquidity
and capital
resources below.
Overall, other operation and maintenance expenses have
increased during
the current periods presented. The increase for the current
quarter was
$930,000 or 9.1 percent while the twelve month increase was
$890,000 or 2.1
percent. The increases during the current quarter and twelve month
periods
were the result of normal wage increases granted due to negotiated
union
contract terms and employee merit raises. Also, due to the
adoption of the
PAGE I-10
</PAGE>
Federal Energy Regulatory Commission's release of Order 636 and the
Financial
Accounting Standards Board (FASB) Standard No. 106, relative to
post-retirement
benefits, operating expenses have further increased in an effort to
comply with
these regulations.
Taxes have increased by $850,000 or 5.6 percent for the
current twelve
month period. This was the result of an increase in state gross
receipts tax
due to higher revenues recorded during the current period.
Interest expenses for the latest three and twelve months
periods have
decreased $190,000 or 12.4 percent and $160,000 or 2.4 percent,
respectively.
A decline in short-term interest rates coupled with a decline in
weighted
average borrowings caused a decrease in short-term interest
expense.
Conversely, interest expenses on long-term debt increased during
the current
twelve month period due to the issuance of First Mortgage Bonds,
Series O,P &
Q. Offsetting the increase were sinking fund payments and the
premature
retirement of First Mortgage Bonds, Series L and Senior Debentures
Series II.
LIQUIDITY AND CAPITAL RESOURCES
On October 14, 1993, ProvGas received approval from the Rhode
Island
Public Utilities Commission (RIPUC) to implement a new rate design,
effective
November 14, 1993, that will help promote economic development and
reduce the
Registrant's earnings sensitivity to weather. In addition to the
improved
stability in earnings, the new rates are designed to increase
annual operating
margin by approximately $700,000. Other components of the rate
award included
an allowed return on equity of 11.2 percent.
In November 1993, the Registrant received the proceeds of $16
million
related to an issuance of First Mortgage Bonds, Series Q (5.62%).
The net
proceeds received from the issuance was used to pay down short-term
debt. In
turn, the short-term debt was used to call long-term debt bearing
a high
interest rate. The previous issuances called were First Mortgage
Bonds, Series
L (8.85%) and the Series II Senior Debentures (8.50%). The net
result of the
issuance will generate interest expense savings to the Registrant
of
approximately $300,000, net of tax.
In June 1993, the Registrant's parent company (Providence
Energy
Corporation) priced its public offering of 850,000 share of common
stock at $19
per common share. The net proceeds of $15.3 million, along with an
additional
$1.1 million, totalling $16.4 million, were contributed as capital
to the
Registrant. The Registrant used the equity for repayment of
short-term debt
incurred to finance the Registrants' capital expenditures.
In November 1992, ProvGas issued $25 million of First Mortgage
Bonds.
These First Mortgage Bonds, which consisted of $12.5 million
(8.09%) designated
as Series O and $12.5 million (8.09%) designated as Series P, will
mature in
September 2022. The net proceeds provided by this issuance were
used to
paydown short-term debt.
PAGE I-11
</PAGE>
The Registrant meets seasonal cash requirements and finances
its capital
expenditures program on an interim basis through short-term
borrowings. For
example, during the latest quarter, the Registrant's accounts
receivable and
unbilled revenues have increased $23 million. These fluctuations
are the
result of higher monthly sales during the current winter months and
a
moratorium on residential shut-offs during the heating season.
Because of these increases, which negatively impact cash flow, the
Registrant
must borrow to maintain an appropriate level of liquidity.
Capital expenditures for the latest quarter were $4.2 million
as compared
to $3.7 million last year. The increase was the result of adding
new and
replacement mains, services and meters. Forecasted capital
expenditures for
the next three years will total approximately $50-$60 million
related mostly to
main, services and meters.
PAGE I-12
</PAGE>
THE PROVIDENCE GAS COMPANY
PART II. OTHER INFORMATION
Item 6 (b). Exhibits and Reports on Form 8-K
No reports on Form 8-K were filed during the quarter for which
this report is filed.
It is the opinion of management that the financial information
contained in this report reflects all adjustments necessary to a
fair statement of results for the period reported, but such
results are not necessarily indicative of results to be expected
for the year, due to the seasonal nature of the
Company's gas operations. All accounting policies and practices
have been applied in a manner consistent with prior periods.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
The Providence Gas Company
(Registrant)
BY:/s/ Gary S. Gillheeney
GARY S. GILLHEENEY
Vice President, Financial and
Information Services and
Treasurer
Date: February 14, 1994
PAGE II - 1
</PAGE>
THE PROVIDENCE GAS COMPANY
PART II. OTHER INFORMATION
Item 6 (b). Exhibits and Reports on Form 8-K
No reports on Form 8-K were filed during the quarter for which
this report is filed.
It is the opinion of management that the financial information
contained in this report reflects all adjustments necessary to a
fair statement of results for the period reported, but such
results are not necessarily indicative of results to be expected
for the year, due to the seasonal nature of the
Company's gas operations. All accounting policies and practices
have been applied in a manner consistent with prior periods.
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly author-
ized.
The Providence Gas Company
(Registrant)
BY:
GARY S. GILLHEENEY
Vice President, Financial and
Information Services and
Treasurer
Date: February 14, 1994
PAGE II - 1
