<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
_____________________________
Commission File Number 1-4393
_____________________________
PUGET SOUND POWER & LIGHT COMPANY
(Exact name of registrant as specified in its charter)
Washington 91-0374630
(State or other (I.R.S. Employer
jurisdiction of Identification No.)
incorporation or
organization)
411 - 108th Avenue N.E., Bellevue, Washington 98004-5515
(Address of principal executive offices)
(206) 454-6363
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file for such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes /X/ No / /
The number of shares of registrant's common stock outstanding at March 31,
1995 was 63,640,861.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
Puget Sound Power & Light Company
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended March 31
1995 1994
------- -------
(Unaudited)
(Thousands except shares
and per share amounts)
OPERATING REVENUES $338,345 $329,222
------- -------
OPERATING EXPENSES:
Operation:
Purchased and interchanged power $111,847 $ 99,730
Fuel 6,390 12,293
Other 46,227 52,278
Maintenance 13,293 11,358
Depreciation and amortization 27,024 29,875
Taxes other than federal income taxes 30,691 29,533
Federal income taxes 32,514 30,263
------- -------
Total operating expenses 267,986 265,330
------- -------
OPERATING INCOME 70,359 63,892
------- -------
OTHER INCOME:
Allowance for funds used during construction -
equity portion -- 41
Miscellaneous - net of taxes 1,682 3,840
------- -------
Total other income 1,682 3,881
------- -------
INCOME BEFORE INTEREST CHARGES 72,041 67,773
------- -------
INTEREST CHARGES
Interest and amortization on long-term debt 21,077 20,856
Allowance for funds used during
construction - debt portion (1,160) (722)
Other 3,378 1,112
------- -------
Total interest charges 23,295 21,246
------- -------
NET INCOME 48,746 46,527
------- -------
DEDUCT:
Preferred stock dividend accrual 3,962 3,827
------- -------
INCOME FOR COMMON STOCK $ 44,784 $ 42,700
======= =======
COMMON SHARES OUTSTANDING -
WEIGHTED AVERAGE 63,640,861 63,629,416
EARNINGS PER COMMON SHARE (Note a) $0.70 $0.67
DIVIDENDS PAID PER COMMON SHARE $0.46 $0.46
<PAGE>
Puget Sound Power & Light Company
CONSOLIDATED BALANCE SHEETS
ASSETS
March 31 December 31
1995 1994
--------- ---------
(Unaudited)
(Thousands of Dollars)
UTILITY PLANT:
Electric Plant, at original cost
(including construction work in
progress of $97,729,000 and
$94,067,000 respectively) $3,328,442 $3,306,854
Less: Accumulated depreciation 1,061,174 1,039,943
--------- ---------
Net utility plant 2,267,268 2,266,911
--------- ---------
OTHER PROPERTY AND INVESTMENTS:
Investment in Bonneville Exchange Power
Contract (Note b) 99,578 101,309
Investments in and advances to subsidiaries 78,493 76,517
Energy conservation loans to customers 1,261 1,409
Other investments, at cost 11,963 12,203
--------- ---------
Total other property and investments 191,295 191,438
--------- ---------
CURRENT ASSETS:
Cash 4,722 5,284
Accounts receivable 121,429 107,588
Estimated unbilled revenue 64,002 86,745
PRAM accrued revenues 41,854 47,178
Materials and supplies, at average cost 50,427 49,543
Prepayments and Other 5,468 5,260
--------- ---------
Total current assets 287,902 301,598
--------- ---------
LONG TERM ASSETS:
Regulatory asset for deferred income taxes 267,875 275,296
PRAM accrued revenues (net of current portion) 67,663 63,663
Unamortized debt expense 7,860 8,076
Unamortized energy conservation charges (Note c) 234,553 239,500
Other 122,068 117,288
--------- ---------
Total long-term assets 700,019 703,823
--------- ---------
TOTAL ASSETS $3,446,484 $3,463,770
========= =========
<PAGE>
Puget Sound Power & Light Company
CONSOLIDATED BALANCE SHEETS
CAPITALIZATION AND LIABILITIES
March 31 December 31
1995 1994
--------- ---------
(Unaudited)
(Thousands of Dollars)
CAPITALIZATION:
Shareholders' investment:
Common stock, $10 stated value,
80,000,000 shares authorized,
63,640,861 shares outstanding $ 636,409 $ 636,409
Additional paid-in capital 328,963 328,753
Earnings reinvested in the business 223,049 207,567
--------- ---------
Total common equity 1,188,421 1,172,729
Preferred stock not subject to
mandatory redemption 125,000 125,000
Preferred stock subject to
mandatory redemption 89,041 91,242
Long-term debt 928,329 963,298
--------- ---------
Total capitalization 2,330,791 2,352,269
--------- ---------
CURRENT LIABILITIES
Accounts payable 48,864 58,025
Short-term debt 189,160 234,454
Current maturities of long-term debt 143,004 108,000
Accrued expenses:
Taxes 69,875 40,337
Salaries and wages 20,852 20,809
Interest 24,793 26,181
Other 25,607 25,018
--------- ---------
Total current liabilities 522,155 512,824
--------- ---------
DEFERRED INCOME TAXES:
Deferred income taxes 540,928 541,501
Investment tax credits 622 726
--------- ---------
Total deferred income taxes 541,550 542,227
--------- ---------
OTHER DEFERRED CREDITS:
Customer advances for construction 21,384 21,939
Other 30,604 34,511
--------- ---------
Total other deferred credits 51,988 56,450
--------- ---------
TOTAL CAPITALIZATION AND LIABILITIES $3,446,484 $3,463,770
========= =========
<PAGE>
Puget Sound Power & Light Company
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31
1995 1994
------- -------
(Unaudited)
(Thousands of Dollars)
OPERATING ACTIVITIES:
- --------------------
Net income $ 48,746 $ 46,527
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 27,024 29,875
Deferred income taxes and tax credits - net 6,744 7,963
Equity portion of AFUDC -- (41)
PRAM accrued revenues 1,325 (4,902)
Other (1,270) 1,375
Change in certain current assets
and liabilities (Note d) 27,968 23,807
- ---------------------------------------------------------------------------
Net Cash Provided by Operating Activities 110,537 104,604
- ---------------------------------------------------------------------------
INVESTING ACTIVITIES:
- --------------------
Construction expenditures - excluding equity AFUDC (25,948) (35,497)
Additions to energy conservation program (3,171) (12,168)
Decrease in energy conservation loans 148 367
Cash received from subsidiary -- 30,136
Other (including advances to subsidiaries) (1,379) (5,362)
- ---------------------------------------------------------------------------
Net Cash Used by Investing Activities (30,350) (22,524)
- ---------------------------------------------------------------------------
FINANCING ACTIVITIES:
- --------------------
Decrease in short-term debt (45,294) (43,101)
Dividends paid (33,264) (33,252)
Issuance of preferred stock -- 50,000
Issuance of bonds -- 55,000
Redemption of bonds and notes (2) (65,003)
Redemption of preferred stock (1,992) (41,204)
Issue costs of bonds and stock (197) (1,682)
- ---------------------------------------------------------------------------
Net Cash Used by Financing Activities (80,749) (79,242)
- ---------------------------------------------------------------------------
Increase (Decrease) in Cash (562) 2,838
Cash at Beginning of Period 5,284 3,445
- ---------------------------------------------------------------------------
Cash at End of Period $ 4,722 $ 6,283
===========================================================================
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(a) Earnings Per Common Share
Earnings per common share for the three months ended March 31, 1995 and 1994
have been computed by dividing income for common stock by the weighted
average number of common shares outstanding.
(b) Investment in Bonneville Exchange Power Contract
The Company has a five percent interest, as a tenant in common with three
other investor-owned utilities and Washington Public Power Supply System
("WPPSS"), in the WPPSS Unit 3 project. The Unit 3 project is a partially
constructed 1,240,000 kilowatt nuclear generating plant at Satsop,
Washington, which was in a state of extended construction delay instituted
by the Bonneville Power Administration ("BPA") and WPPSS in 1983. Unit 3
was terminated by WPPSS and the other owners in 1994. Under the terms of a
settlement agreement (the "Settlement Agreement"), which includes a
Settlement Exchange Agreement ("Bonneville Exchange Power Contract") between
the Company and BPA dated September 17, 1985, the Company is receiving
electric power (the "Bonneville Exchange Power") from the federal power
system resources marketed by the BPA for a period of approximately 30.5
years which commenced January 1, 1987. The Settlement Agreement settled the
claims of the Company against WPPSS and BPA relating to the construction
delay of the WPPSS Unit 3 project.
In its general rate order issued on January 17, 1990, the Washington
Utilities and Transportation Commission (the "Washington Commission") found
that all WPPSS Unit 3/Bonneville Exchange Power costs had been prudently
incurred. Under terms of the order, approximately two-thirds or $97 million
of the investment in Bonneville Exchange Power is included in rate base and
amortized on a straight-line basis over the remaining life of the Bonneville
Exchange Power Contract (amortization is included in "Purchased and
interchanged power"). The remainder of the Company's investment is being
recovered in rates over ten years, without a return during the recovery
period. The related amortization is included in "Depreciation and
amortization," pursuant to a Federal Energy Regulatory Commission ("FERC")
accounting directive.
Several issues in the litigation relating to WPPSS Unit 3, including claims
on behalf of WPPSS Unit 5 against the Company and the other Unit 3 owners
seeking recovery of certain common costs, were not settled by the Settlement
Agreement. The claims with respect to WPPSS Unit 3 and Unit 5 common costs,
made in the United States District Court for the Western District of
Washington, arise out of the fact that Unit 3 and Unit 5, which was also
terminated prior to completion, were being constructed adjacent to each
other and were planned to share certain costs. The Company and a number of
the litigants have signed, subject to various conditions, a memorandum of
understanding intended to result in a settlement and dismissal of the
claims. Under the memorandum of understanding, the Company's share of the
settlement amount will be $500,000, an expense which was accrued by the
Company in 1994 and is expected to be paid in the third quarter of 1995.
(c) Unamortized Energy Conservation Costs
The Company's energy conservation expenditures are accumulated, included in
rate base and amortized over a ten-year period at the direction of the
Washington Commission. The Company's total unamortized conservation balance
at March 31, 1995, was $235 million. The amount included in customer rates
by the Washington Commission in its September 1994 PRAM order, based on
expenditures through April 30, 1994, was $229 million. The Company expects
to sell, in the second quarter of 1995, approximately $200 million of its
investment in customer-owned energy conservation measures to a grantor trust
which would finance it with 100 percent debt.
(d) Consolidated Statements of Cash Flows
For purposes of the Consolidated Statements of Cash Flows, the Company
considers all temporary investments to be cash equivalents. These temporary
cash investments are securities held for cash management purposes, having
maturities of three months or less at time of purchase. The net change in
current assets and current liabilities for purposes of the Statement of Cash
Flows excludes short-term debt, current maturities of long-term debt, and
the current portion of the Periodic Rate Adjustment Mechanism ("PRAM")
accrued revenues.
<PAGE>
The following provides additional information concerning cash flow
activities:
Three Months Ended March 31
1995 1994
- ---------------------------------------------------------------------------
(Thousands)
Changes in current assets and current liabilities:
Accounts receivable $(13,841) $(18,194)
Unbilled revenues 22,743 23,966
Materials and supplies (884) 122
Prepayments and Other (208) (3,095)
Accounts payable (9,161) (7,199)
Accrued expenses and Other 28,782 28,207
- ---------------------------------------------------------------------------
Net change in current assets and current liabilities $ 27,431 $ 23,807
===========================================================================
Cash payments:
Interest (net of capitalized interest): $ 24,774 $ 20,386
Income taxes $ 4,700 $ 6,000
- ---------------------------------------------------------------------------
(e) Other
On September 27, 1994, the Washington Commission issued a rate order
relating to the Company's annual rate increase under the PRAM. The Company
had requested a $55.5 million revenue increase and the Commission allowed
$53.7 million. The items of revenue disallowed were $1.6 million related to
two purchased power contracts and $208,000 related to a $978,000 reduction
that the Commission ordered in the Company's rate base for its conservation
program.
On October 1, 1989, the Company signed a contract with Montana Power under
which Montana Power provides, from its share of Colstrip Unit 4, to the
Company 71 average MW of energy (94MW of peak capacity) over a 21 year
period. On February 27, 1995, the Company delivered to Montana Power notice
of termination of the contract based on Montana Power's failure to arrange
for firm contractual transmission rights for such energy as required by the
contract. On February 28, 1995, Montana Power filed a lawsuit in a Montana
State Court and obtained a temporary restraining order regarding the
termination. The Company has filed a notice of removal of the Montana State
Court action to the Federal District Court in Montana. On March 7, 1995,
the Company filed a lawsuit in the United States District Court for the
Western District of Washington in response to Montana Power's failure to
terminate the contract as required and for failure to reimburse the Company
for approximately $39 million in power costs, which are due upon termination
under contract provisions.
On March 17, 1995, an arbitration panel, to which a price dispute
originating in 1991 had been submitted, ruled that the price that the
Company pays for coal to fuel its 50 percent-owned Colstrip 1 and 2 plants
should be lowered. Western Energy Company, the coal supplier and a
subsidiary of Montana Power Company, had sought a price of $10.21 per ton
for the 1.5 million tons of coal the Company purchases annually for the two
units. The arbitration panel fixed the price at $7.68 per ton with
provisions for certain future price escalations. The decision resulted in a
net decrease in fuel and other expenses of $3.4 million recorded in the
first quarter of 1995.
The financial statements contained in this Form 10-Q are unaudited; however,
in the opinion of the Company, they include all adjustments (consisting only
of normal recurring adjustments) necessary for a fair statement of the
results of operations for the periods shown.
<PAGE>
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Net income for the three months ended March 31, 1995, was $48.7 million on
operating revenues of $338.3 million, compared with net income of $46.5
million on operating revenues of $329.2 million for the same period in 1994.
Income for common stock was $44.8 million for the first quarter of 1995
compared to $42.7 million for the first quarter of 1994. Earnings per share
were $0.70 for the first quarter of 1995 compared to $0.67 for the first
quarter of 1994 based on 63.6 million weighted average common shares
outstanding for both periods.
Total kilowatt-hour sales were 6.3 billion, including 0.9 billion in sales to
other utilities, for the first quarter of 1995, compared to 5.7 billion,
including 0.4 billion in sales to other utilities, for the first quarter of
1994.
The Company's operating revenues and associated expenses are not generated
evenly during the year. Variations in energy usage by consumers do occur
from season to season and from month to month within a season, primarily as a
result of weather conditions. The Company normally experiences its highest
energy sales in the first and fourth quarters of the year. Sales to other
utilities also vary by quarter and year depending principally upon water
conditions for the generation of hydroelectric power, customer usage and the
energy requirements of other utilities. With the implementation of the PRAM
in October 1991, earnings are no longer significantly influenced, up or down,
by sales of surplus electricity to other utilities or by weather or hydro
conditions.
Preferred stock dividends increased $0.1 million for the three month period
ending March 31, 1995 compared to the same period in 1994. The increase was
due to the issuance in February 1994 of the $50 million, Adjustable Rate
Cumulative Preferred Stock, Series B ($25 par value). This issue replaced
the $40 million Adjustable Rate Cumulative Preferred Stock, Series A ($100
par value) which was redeemed in February 1994.
<PAGE>
Comparative Periods Ending
March 31, 1995 vs. March 31, 1994
Increase (Decrease)
Three Month Periods
-------------------
(In Millions)
Operating revenue changes
PRAM surcharge billed $15.4
Accrual of revenue under the PRAM - Net (6.2)
BPA Residential Purchase & Sale Agreement (8.8)
Sales to other utilities 6.7
Load and other changes 2.0
----
Total operating revenue changes 9.1
Operating expense changes
Purchased & interchanged power 12.1
Fuel (5.9)
Other operation expenses (6.0)
Maintenance 1.9
Depreciation and amortization (2.9)
Taxes other than federal income taxes 1.2
Federal income taxes 2.3
----
Total operating expense changes 2.7
Allowance for funds used during
construction (AFUDC) 0.4
Other income (2.1)
Interest charges excluding AFUDC 2.5
----
NET INCOME CHANGES $ 2.2
====
The following is additional information pertaining to the changes outlined
in the above table.
Operating Revenues
Revenues since October 1, 1994 increased as a result of rates authorized
by the Washington Commission in its PRAM order issued on September 27,
1994. See discussion of the Periodic Rate Adjustment Mechanism in
"Other.").
Revenues in 1995 and 1994 were reduced because of the credit that the
Company received through the Residential Purchase and Sale Agreement with
BPA. The agreement enables the Company's residential and small farm
customers to receive the benefits of lower-cost federal power. A
corresponding reduction is included in purchased and interchanged power
expenses.
Revenues from kilowatt-hour sales, excluding PRAM, were slightly higher in
the first quarter of 1995 as compared to the same period in 1994 due to
continued growth in the number of customers.
Operating Expenses
Purchased and interchanged power expenses increased $12.1 million for the
first quarter of 1995 compared to the same period in 1994. Higher levels
of purchased power, which contributed an increase of $19.7 million, were
due primarily to increased power purchases from energy cogeneration
facilities. These higher costs were partially offset by increased credits
of $8.4 million associated with the Residential Purchase and Sale
Agreement with BPA. (See discussion of Residential Purchase and Sale
Agreement in "Operating revenues.")
Fuel expense decreased $5.9 million for the three month comparative period
due in part to a decrease of $4.6 million resulting from an Arbitration
Panels' decision of a dispute involving the coal supply agreement at the
Company's fifty percent-owned Colstrip 1 and 2 plants. Another factor
contributing to the decrease in fuel expense was the Company's decision to
purchase additional power from cogeneration facilities rather than run
Company-owned gas turbines to generate electricity.
Other operating expenses decreased $6.0 million for the three month
comparative period. This decrease was primarily due to a $6.9 million
charge in 1994 to reflect costs associated with a voluntary early
separation program. Increases of $1.3 million in amortization expense
associated with the Company's conservation program and $1.0 million in
steam generation expenses were partially offset by a $1.2 million decrease
in transmission expenses.
Maintenance expense increased $1.9 million in 1995 over the same period in
1994 due primarily to higher distribution maintenance expenses resulting
from increased winter storm damage to Company facilities.
Depreciation and amortization expense decreased $2.9 million for the first
quarter of 1995 from the same period in 1994. A decrease of $4.3 million
was due to the completion of the 10 year amortization period related to
two terminated generating projects. This decrease was partially offset by
the effects of new plant placed into service during the past year.
Taxes other than federal income taxes increased $1.2 million for the three
month comparative period due primarily to higher municipal and state
excise tax payments.
Federal income taxes on operations increased $2.3 million for the first
quarter of 1995 from the same period in 1994 due to higher pre-tax
operating income.
AFUDC
AFUDC, which does not represent current cash income, is normally included
partially in other income and partially as an offset to interest expense.
Other income
Other income decreased $2.1 million in the first quarter of 1995 from the
same period in 1994. The decrease was due in part to an after-tax gain of
$1.9 million in 1994 resulting from the sale of a small hydro project by
the Company's hydro development subsidiary. Also contributing to the
decrease was a $0.5 million reduction in Allowance for Funds Used to
Conserve Energy ("AFUCE").
Interest charges
Interest charges, which consist of interest and amortization on long-term
debt and other interest, increased $2.5 million for the first quarter of
1995 compared to the same period in 1994.
Interest and amortization on long-term debt alone increased $0.2 million
for the first quarter of 1995. This increase reflects additional interest
of $0.9 million on two recent issues of Secured Medium-Term Notes totaling
$85 million. These Notes were issued during February and May of 1994.
Partially offsetting this increase were lower interest costs of $0.7
million relating to three First Mortgage Bond redemptions during 1994
totaling $73 million.
Other interest expense increased $2.3 million for the first quarter of
1995 compared to the same period last year due to higher short-term
interest rates and higher levels of outstanding short-term debt.
Construction expenditures (excluding AFUDC and AFUCE) for the first quarter
of 1995 were $27.4 million, including $2.6 million of energy conservation
expenditures, compared to $45.7 million, including $11.0 million of energy
conservation expenditures, for the first quarter of 1994. Construction
expenditures (excluding AFUDC and AFUCE) for the twelve months ending March
31, 1995 were $224.5 million, including $24.1 million of energy conservation
expenditures and a $77.6 million final payment to secure ownership rights on
the new 3rd A.C. Transmission line to the southwestern United States.
Construction expenditures (excluding AFUDC and AFUCE) for the twelve months
ending March 31, 1994 were $214.3 million, including $56.0 million of energy
conservation expenditures. Construction expenditures (excluding AFUDC and
AFUCE) for 1995 and 1996 are expected to be $145 million and $187 million,
respectively.
Cash provided by operations (net of dividends, AFUDC and AFUCE) as a
percentage of construction expenditures (excluding AFUDC and AFUCE) was
276.1% and 152.6% for the first quarters of 1995 and 1994, respectively.
Cash provided by operations (net of dividends, AFUDC and AFUCE) as a
percentage of construction expenditures (excluding AFUDC and AFUCE) were
55.9% and 56.8% for the twelve months ending March 31, 1995 and 1994,
respectively. The Company expects to fund an average of 85% of its estimated
construction expenditures (excluding AFUDC and AFUCE) in 1995 and 1996 from
cash provided by operations (net of dividends, AFUDC and AFUCE) with the
balance being funded through the sales of securities, the nature, amount and
timing of which will be subject to market conditions and other relevant
factors. Construction expenditure estimates are subject to periodic review
and adjustment.
On March 31, 1995, the Company had available $176.5 million in lines of
credit with various banks, which provide credit support for outstanding
commercial paper of $138.2 million, effectively reducing the available
borrowing capacity under these lines of credit to $38.3 million. In
addition, the Company has agreements with several banks to borrow on an
uncommitted, as available, basis at money-market rates quoted by the banks.
There are no costs, other than interest, for these arrangements.
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings
For a description of legal proceedings relating to the Company's five
percent interest in WPPSS Unit No. 3, see Note (b) to the Financial
Statements.
Other contingencies, arising out of the normal course of the Company's
business, exist at March 31, 1995. The ultimate resolution of these issues
is not expected to have a material adverse impact on the financial
condition, results of operations or liquidity of the Company.
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibits are filed herewith:
12-a Statement setting forth computation of ratios of earnings to
fixed charges (1990 through 1994 and twelve months ending
March 31, 1995).
12-b Statement setting forth computation of ratios of earnings to
combined fixed charges and preferred stock dividends (1990
through 1994 and twelve months ending March 31, 1995).
27 Financial Data Schedule
(b) Reports on Form 8-K
None
<PAGE>
SIGNATURES
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.
PUGET SOUND POWER & LIGHT COMPANY
William S. Weaver
-------------------------------
William S. Weaver
Executive Vice President and
Chief Financial Officer
Date: May 12, 1995 Principal financial officer and
officer duly authorized to sign this
report on behalf of the registrant.
<TABLE>
Exhibit 12a
PUGET SOUND POWER & LIGHT COMPANY
STATEMENT SETTING FORTH COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES
(Dollars in Thousands)
<CAPTION>
Year Ended December 31
12 Months Ending ----------------------------------------------------
March 31, 1995 1994 1993 1992 1991 1990
------------------ ----------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EARNINGS AVAILABLE FOR FIXED CHARGES
Pre-tax income:
Net income per statement of income $122,279 $120,059 $138,327 $135,720 $132,777 $132,343
Federal income taxes 82,510 80,259 83,970 72,449 56,180 64,094
Federal income taxes charged to
other income - net 236 1,556 (382) (2,106) (2,267) 12
Undistributed (earnings) or losses
of less-than-fifty-percent-owned
entities -- -- -- (567) (16) (114)
------- ---------------------------------------------------
Total $205,025 $201,874 $221,915 $205,496 $186,674 $196,335
Fixed charges:
Interest on long-term debt $ 84,365 $ 84,144 $ 86,030 $ 89,509 $ 84,791 $ 81,766
Other interest 8,511 6,249 3,542 10,477 6,384 8,368
Portion of rentals representative
of the interest factor 4,191 4,218 3,937 4,474 4,463 4,388
------- ---------------------------------------------------
Total $ 97,067 $ 94,611 $ 93,509 $104,460 $ 95,638 $ 94,522
Earnings available for
fixed charges $302,092 $296,485 $315,424 $309,956 $282,312 $290,857
======= ===================================================
RATIO OF EARNINGS TO FIXED CHARGES 3.11x 3.13x 3.37x 2.97x 2.95x 3.08x
</TABLE>
<PAGE>
Exhibit 12b
Page 1
<TABLE>
PUGET SOUND POWER & LIGHT COMPANY
STATEMENT SETTING FORTH COMPUTATIONS OF
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Dollars in Thousands)
<CAPTION>
Year Ended December 31
12 Months Ending ----------------------------------------------------
March 31, 1995 1994 1993 1992 1991 1990
------------------ ----------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EARNINGS AVAILABLE FOR COMBINED FIXED
CHARGES AND PREFERRED DIVIDEND REQUIREMENTS
Pretax Income:
Net Income per statement
of income $122,279 $120,059 $138,327 $135,720 $132,777 $132,343
Federal income taxes 82,510 80,259 83,970 72,449 56,180 64,094
Federal income taxes charged to
other income - net 236 1,556 (382) (2,106) (2,267) 12
------- ---------------------------------------------------
Subtotal $205,025 201,874 221,915 206,063 186,690 196,449
Undistributed (earnings) or losses
of less-than-fifty-percent-owned
entities -- -- -- (567) (16) (114)
------- ---------------------------------------------------
Total $205,025 $201,874 $221,915 $205,496 $186,674 $196,335
Fixed charges:
Interest on long-term debt $ 84,365 $ 84,144 $ 86,030 $ 89,509 $ 84,791 $ 81,766
Other interest 8,511 6,249 3,542 10,477 6,384 8,368
Portion of rentals representative
of the interest factor 4,191 4,218 3,937 4,474 4,463 4,388
------- ---------------------------------------------------
Total $ 97,067 $ 94,611 $ 93,509 $104,460 $ 95,638 $ 94,522
Earnings available for combined
fixed charges and preferred
dividend requirements $302,092 $296,485 $315,424 $309,956 $282,312 $290,857
======= ===================================================
</TABLE>
<PAGE>
Exhibit 12b
Page 2
<TABLE>
PUGET SOUND POWER & LIGHT COMPANY
STATEMENT SETTING FORTH COMPUTATIONS OF
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Dollars in Thousands)
<CAPTION>
Year Ended December 31
12 Months Ending ----------------------------------------------------
March 31, 1995 1994 1993 1992 1991 1990
------------------ ----------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DIVIDEND REQUIREMENT:
Fixed charges above $ 97,067 $ 94,611 $ 93,509 $104,460 $ 95,638 $ 94,522
Preferred dividend requirements 26,603 26,451 26,378 21,080 14,115 18,399
------- ---------------------------------------------------
Total $123,670 $121,062 $119,887 $125,540 $109,753 $112,921
======= ===================================================
RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS 2.44x 2.45x 2.63x 2.47x 2.57x 2.58x
COMPUTATION OF PREFERRED DIVIDEND
REQUIREMENTS:
(a) Pre-tax income $205,025 $201,874 $221,915 $206,063 $186,690 $196,449
(b) Net income $122,279 $120,059 $138,327 $135,720 $132,777 $132,343
(c) Ratio of (a) to (b) 1.6767 1,6815 1.6043 1.5183 1.4060 1.4844
(d) Preferred dividends $ 15,866 $ 15,731 $ 16,442 $ 13,884 $ 10,039 $ 12,395
Preferred dividend requirements
[(d) multiplied by (c)] $ 26,603 $ 26,451 $ 26,377 $ 21,080 $ 14,115 $ 18,399
======= ===================================================
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> UT
<CIK> 0000081100
<NAME> PUGET SOUND POWER & LIGHT COMPANY
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 2,267,268
<OTHER-PROPERTY-AND-INVEST> 191,295
<TOTAL-CURRENT-ASSETS> 287,902
<TOTAL-DEFERRED-CHARGES> 0
<OTHER-ASSETS> 700,019
<TOTAL-ASSETS> 3,446,484
<COMMON> 636,409
<CAPITAL-SURPLUS-PAID-IN> 328,963
<RETAINED-EARNINGS> 223,049
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,188,421
89,041
125,000
<LONG-TERM-DEBT-NET> 928,329
<SHORT-TERM-NOTES> 51,000
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 138,160
<LONG-TERM-DEBT-CURRENT-PORT> 143,004
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 783,529
<TOT-CAPITALIZATION-AND-LIAB> 3,446,484
<GROSS-OPERATING-REVENUE> 338,345
<INCOME-TAX-EXPENSE> 32,514
<OTHER-OPERATING-EXPENSES> 235,472
<TOTAL-OPERATING-EXPENSES> 267,986
<OPERATING-INCOME-LOSS> 70,359
<OTHER-INCOME-NET> 1,682
<INCOME-BEFORE-INTEREST-EXPEN> 72,041
<TOTAL-INTEREST-EXPENSE> 23,295
<NET-INCOME> 48,746
3,962
<EARNINGS-AVAILABLE-FOR-COMM> 44,784
<COMMON-STOCK-DIVIDENDS> 29,275
<TOTAL-INTEREST-ON-BONDS> 20,093
<CASH-FLOW-OPERATIONS> 110,537
<EPS-PRIMARY> 0.70
<EPS-DILUTED> 0.70
</TABLE>
