<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q/A
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
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 September
30, 1996 was 63,640,861
<PAGE>
PART II - OTHER INFORMATION
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 (1991 through 1995 and twelve months ending
September 30, 1996).
12-b Statement setting forth computation of ratios of earnings to
combined fixed charges and preferred stock dividends (1991
through 1995 and twelve months ending September 30, 1996).
27 Financial Data Schedule
99 Pro Forma Financial Statements of Puget Sound Energy
(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
James W. Eldredge
---------------------------------
James W. Eldredge
Corporate Secretary and Controller
Date: January 15, 1997 Chief accounting officer and
officer duly authorized to sign this
report on behalf of the registrant.
<PAGE>
<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 ---------------------------------------------------
September 30, 1996 1995 1994 1993 1992 1991
---------------- ---------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EARNINGS AVAILABLE FOR FIXED CHARGES
Pre-tax income:
Net income per statement of income $133,263 $135,720 $120,059 $138,327 $135,720 $132,777
Federal income taxes 85,815 84,545 80,259 83,970 72,449 56,180
Federal income taxes charged to
other income - net 551 (488) 1,556 (382) (2,106) (2,267)
Undistributed (earnings) or losses
of less-than-fifty-percent-owned
entities -- -- -- -- (567) (16)
------- ---------------------------------------------------
Total $219,629 $219,777 $201,874 $221,915 $205,496 $186,674
Fixed charges:
Interest on long-term debt $ 73,807 $ 81,115 $ 84,144 $ 86,030 $ 89,509 $ 84,791
Other interest 8,936 10,049 6,249 3,542 10,477 6,384
Portion of rentals representative
of the interest factor 3,360 3,798 4,218 3,937 4,474 4,463
------- ---------------------------------------------------
Total $ 86,103 $ 94,962 $ 94,611 $ 93,509 $104,460 $ 95,638
Earnings available for
fixed charges $305,732 $314,739 $296,485 $315,424 $309,956 $282,312
======= ===================================================
RATIO OF EARNINGS TO FIXED CHARGES 3.55x 3.31x 3.13x 3.37x 2.97x 2.95x
</TABLE>
<PAGE>
<TABLE>
Exhibit 12b
Page 1
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 ----------------------------------------------------
September 30, 1996 1995 1994 1993 1992 1991
---------------- ----------------------------------------------------
<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 $133,263 $135,720 $120,059 $138,327 $135,720 $132,777
Federal income taxes 85,815 84,545 80,259 83,970 72,449 56,180
Federal income taxes charged to
other income - net 551 (488) 1,556 (382) (2,106) (2,267)
------- ---------------------------------------------------
Subtotal $219,629 $219,777 $201,874 $221,915 $206,063 $186,690
Undistributed (earnings) or losses
of less-than-fifty-percent-owned
entities -- -- -- -- (567) (16)
------- ---------------------------------------------------
Total $219,629 $219,777 $201,874 $221,915 $205,496 $186,674
Fixed charges:
Interest on long-term debt $ 73,807 $ 81,115 $ 84,144 $ 86,030 $ 89,509 $ 84,791
Other interest 8,936 10,049 6,249 3,542 10,477 6,384
Portion of rentals representative
of the interest factor 3,360 3,798 4,218 3,937 4,474 4,463
------- ---------------------------------------------------
Total $ 86,103 $ 94,962 $ 94,611 $ 93,509 $104,460 $ 95,638
Earnings available for combined
fixed charges and preferred
dividend requirements $305,732 $314,739 $296,485 $315,424 $309,956 $282,312
======= ===================================================
</TABLE>
<PAGE>
<TABLE>
Exhibit 12b
Page 2
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 ----------------------------------------------------
September 30, 1996 1995 1994 1993 1992 1991
---------------- ----------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DIVIDEND REQUIREMENT:
Fixed charges above $ 86,103 $ 94,962 $ 94,611 $ 93,509 $104,460 $ 95,638
Preferred dividend requirements 24,950 25,144 26,451 26,377 21,080 14,115
------- ---------------------------------------------------
Total $111,053 $120,106 $121,062 $119,886 $125,540 $109,753
======= ===================================================
RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS 2.75x 2.62x 2.45x 2.63x 2.47x 2.57x
COMPUTATION OF PREFERRED DIVIDEND
REQUIREMENTS:
(a) Pre-tax income $219,629 $219,777 $201,874 $221,915 $206,063 $186,690
(b) Net income $133,263 $135,720 $120,059 $138,327 $135,720 $132,777
(c) Ratio of (a) to (b) 1.6481 1.6193 1.6815 1.6043 1.5183 1.4060
(d) Preferred dividends $ 15,139 $ 15,527 $ 15,731 $ 16,442 $ 13,884 $ 10,039
Preferred dividend requirements
[(d) multiplied by (c)] $ 24,950 $ 25,144 $ 26,451 $ 26,377 $ 21,080 $ 14,115
======= ===================================================
</TABLE>
<PAGE>
<TABLE> <S> <C>
<ARTICLE> UT
<CIK> 0000081100
<NAME> PUGET SOUND POWER & LIGHT COMPANY
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 2,294,532
<OTHER-PROPERTY-AND-INVEST> 207,433
<TOTAL-CURRENT-ASSETS> 263,222
<TOTAL-DEFERRED-CHARGES> 0
<OTHER-ASSETS> 394,722
<TOTAL-ASSETS> 3,159,909
<COMMON> 636,409
<CAPITAL-SURPLUS-PAID-IN> 328,963
<RETAINED-EARNINGS> 199,560
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,164,932
87,840
125,000
<LONG-TERM-DEBT-NET> 920,549
<SHORT-TERM-NOTES> 52,900
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 68,405
<LONG-TERM-DEBT-CURRENT-PORT> 8,000
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 732,283
<TOT-CAPITALIZATION-AND-LIAB> 3,159,909
<GROSS-OPERATING-REVENUE> 841,208
<INCOME-TAX-EXPENSE> 56,776
<OTHER-OPERATING-EXPENSES> 646,842
<TOTAL-OPERATING-EXPENSES> 703,618
<OPERATING-INCOME-LOSS> 137,590
<OTHER-INCOME-NET> 8,020
<INCOME-BEFORE-INTEREST-EXPEN> 145,610
<TOTAL-INTEREST-EXPENSE> 57,438
<NET-INCOME> 88,172
11,337
<EARNINGS-AVAILABLE-FOR-COMM> 76,835
<COMMON-STOCK-DIVIDENDS> 87,824
<TOTAL-INTEREST-ON-BONDS> 52,393
<CASH-FLOW-OPERATIONS> 278,555
<EPS-PRIMARY> 1.21
<EPS-DILUTED> 1.21
</TABLE>
<PAGE>
EXHIBIT 99
UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION
The following unaudited pro forma financial information combines the
historical consolidated balance sheets and statements of income of Puget
Sound Power and Light Company ("Puget") and Washington Energy Company
("WECo") after giving effect to the merger. The unaudited pro forma
condensed balance sheet gives effect to the merger as if it had occurred at
the balance sheet date. The unaudited pro forma condensed statements of
income for the nine months and twelve months ended September 30, 1996, give
effect to the merger as if it had occurred on October 1, 1995. These
statements are prepared on the basis of accounting for the merger as a
pooling-of-interests and are based on the assumptions set forth in the notes
thereto. The following pro forma financial information has been prepared
from, and should be read in conjunction with, the historical consolidated
financial statements and related notes thereto of Puget, WECo and Washington
Natural Gas Company ("WNG"), a wholly-owned subsidiary of WECo. The
following information is not necessarily indicative of the operating results
or financial position that would have occurred had the merger been
consummated on the date, or at the beginning of the periods, for which the
merger is being given effect, nor is it necessarily indicative of future
operating results or financial position.
<PAGE>
EXHIBIT 99
PAGE 2
<TABLE>
PUGET SOUND ENERGY
PRO FORMA CONDENSED BALANCE SHEET
AT SEPTEMBER 30 1996
<CAPTION>
(Thousands of dollars)
(unaudited)
Pro Forma
Puget (1) WECo (1) Combined
---------- ---------- ----------
<S> <C> <C> <C>
ASSETS
Property, Plant and Equipment:
Utility plant $3,465,960 $1,129,849 $4,595,809
Accumulated provisions for depreciation
and amortization 1,171,428 293,979 1,465,407
--------- --------- ---------
Net property, plant and equipment 2,294,532 835,870 3,130,402
--------- --------- ---------
Other Property and Investments:
Investment in Bonneville Exchange Power Contract 88,678 -- 88,678
Investment in and advances to subsidiaries 105,776 -- 105,776
Investment in unconsolidated affiliate -- 69,352 69,352
Other 12,979 5,270 18,249
--------- --------- ---------
Total other property and investments 207,433 74,622 282,055
--------- --------- ---------
Current Assets:
Cash 2,466 599 3,065
Accounts receivable 96,173 11,714 107,887
Estimated unbilled revenue 59,872 12,199 72,071
PRAM accrued revenues 61,451 -- 61,451
Materials and supplies, at average cost 37,904 24,955 62,859
Prepayments and other 5,356 13,509 18,865
--------- --------- ---------
Total current assets 263,222 62,976 326,198
--------- --------- ---------
Long-Term Assets:
Regulatory asset for deferred income taxes 236,781 19,353 256,134
Unamortized energy conservation charges 40,193 -- 40,193
Other 117,748 41,615 159,363
--------- --------- ---------
Total long-term assets 394,722 60,968 455,690
--------- --------- ---------
TOTAL ASSETS $3,159,909 $1,034,436 $4,194,345
========= ========= =========
See accompanying Notes to Unaudited Pro Forma Condensed Financial Statements
</TABLE>
<PAGE>
EXHIBIT 99
PAGE 3
<TABLE>
PUGET SOUND ENERGY
PROFORMA CONDENSED BALANCE SHEET
AT SEPTEMBER 30, 1996
<CAPTION>
(Thousands of dollars)
(unaudited)
Pro Forma
Puget (1) WECo (1) Combined
---------- ---------- ----------
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock and additional paid-in capital (4) $ 965,372 $ 326,650 $1,292,022
Earnings reinvested (Accumulated deficit) 199,560 (127,299) 72,261
Preferred stock not subject to mandatory redemption 125,000 90,000 215,000
Preferred stock subject to mandatory redemption 87,840 -- 87,840
Long-term debt 920,549 344,920 1,265,469
--------- --------- ---------
Total capitalization 2,298,321 634,271 2,932,592
--------- --------- ---------
Current Liabilities:
Accounts payable 49,798 21,891 71,689
Short-term debt 121,305 177,709 299,014
Current maturities of long-term debt 8,000 140 8,140
Accrued taxes 85,459 14,202 99,661
Other 17,243 73,185 90,428
--------- --------- ---------
Total current liabilities 281,805 287,127 568,932
--------- --------- ---------
Deferred Taxes:
Deferred income taxes 493,707 75,119 568,826
Deferred investment credits -- 8,479 8,479
--------- --------- ---------
Total deferred taxes 493,707 83,598 577,305
--------- --------- ---------
Other Deferred Credits:
Customer advances for construction 21,548 5,334 26,882
Other 64,528 24,106 88,634
--------- --------- ---------
Total other deferred credits 86,076 29,440 115,516
--------- --------- ---------
TOTAL CAPITALIZATION AND LIABILITIES $3,159,909 $1,034,436 $4,194,345
========= ========= =========
See accompanying Notes to Unaudited Pro Forma Condensed Financial Statements
</TABLE>
<PAGE>
<TABLE>
EXHIBIT 99
PAGE 4
PUGET SOUND ENERGY
PRO FORMA CONDENSED STATEMENT OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
<CAPTION>
(Thousands, except per share amounts)
(unaudited)
Pro Forma
Puget (1) WECo (1) Combined(5)
---------- ---------- -----------
<S> <C> <C> <C>
OPERATING REVENUES $841,208 $298,216 $1,139,424
OPERATING EXPENSES:
Purchased and interchanged power and gas purchases 300,227 121,942 422,169
Other operating expenses and maintenance 180,032 62,339 242,371
Depreciation, and amortization 81,919 26,727 108,646
Taxes other than federal income taxes 84,664 27,778 112,442
Federal income taxes 56,776 9,744 66,520
------- ------- -------
Total operating expenses 703,618 248,530 952,148
------- ------- -------
OPERATING INCOME 137,590 49,686 187,276
------- ------- -------
OTHER INCOME (EXPENSE):
Preferred dividend requirement - WNG (6 ) -- (5,265) --
Other - net of taxes 8,020 702 8,722
------- ------- -------
Total other income (expense) 8,020 (4,563) 8,722
------- ------- -------
INCOME BEFORE INTEREST CHARGES 145,610 45,123 195,998
INTEREST CHARGES 57,438 30,565 88,003
------- ------- -------
INCOME FROM CONTINUING OPERATIONS BEFORE
PREFERRED DIVIDENDS 88,172 14,558 107,995
LESS: PREFERRED STOCK DIVIDEND ACCRUALS 11,337 -- 16,602
------- ------- -------
INCOME FOR COMMON STOCK (2) $ 76,835 $ 14,558 $ 91,393
======= ======= =======
COMMON SHARES OUTSTANDING WEIGHTED AVERAGE (3) 63,641 24,193 84,447
EARNINGS PER SHARE (2) $1.21 $0.60 $1.08
See accompanying Notes to Unaudited Pro Forma Condensed Financial Statements
</TABLE>
<PAGE>
<TABLE>
EXHIBIT 99
PAGE 5
PUGET SOUND ENERGY
PRO FORMA CONDENSED STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 1996
<CAPTION>
(Thousands, except per share amounts)
(unaudited)
Pro Forma
Puget (1) WECo(1) Combined(5)
---------- ---------- -----------
<S> <C> <C> <C>
OPERATING REVENUES $1,172,017 $425,711 $1,597,728
OPERATING EXPENSES:
Purchased and interchanged power and gas purchases 416,443 177,719 594,162
Other operating expenses and maintenance 245,993 85,689 331,682
Depreciation, depletion and amortization 108,710 35,777 144,487
Taxes other than federal income taxes 113,176 39,308 152,484
Federal income taxes 85,815 15,232 101,047
--------- --------- ---------
Total operating expenses 970,137 353,725 1,323,862
--------- --------- ---------
OPERATING INCOME 201,880 71,986 273,866
--------- --------- ---------
OTHER INCOME (EXPENSE):
Preferred dividend requirement - WNG (6) -- (7,020) --
Other - net of taxes 9,169 1,150 10,319
--------- --------- ---------
Total other income (expense) 9,169 (5,870) 10,319
--------- --------- ---------
INCOME BEFORE INTEREST CHARGES 211,049 66,116 284,185
INTEREST CHARGES 77,786 41,156 118,942
--------- --------- ---------
INCOME FROM CONTINUING OPERATIONS BEFORE
PREFERRED DIVIDENDS 133,263 24,960 165,243
LESS: PREFERRED STOCK DIVIDEND ACCRUALS 15,139 -- 22,159
--------- --------- ---------
INCOME FOR COMMON STOCK (2) $ 118,124 $ 24,960 $143,084
========= ========= =========
COMMON SHARES OUTSTANDING WEIGHTED AVERAGE (3) 63,641 24,159 84,418
EARNINGS PER SHARE (2) $1.86 $1.03 $1.69
See accompanying Notes to Unaudited Pro Forma Condensed Financial Statements
</TABLE>
<PAGE>
EXHIBIT 99
PAGE 6
NOTES TO UNAUDITED PROFORMA CONDENSED FINANCIAL STATEMENTS
(1) Puget's fiscal year ends on December 31. WECo's fiscal year ends on
September 30. The pro forma financial data for the nine months and
twelve months ended September 30, 1996 are the results of nine months
and twelve months ended September 30, 1996 for Puget and WECo.
(2) Income for Common Stock and Earnings Per Share are based on income from
continuing operations after preferred dividend requirements.
(3) The Pro Forma Condensed Financial Statements reflect the conversion of
each share of WECo common stock outstanding into .860 share of Puget
Sound Energy common stock and the issuance of Puget Sound Energy
preferred stock for WNG preferred stock. The Pro Forma Condensed
Financial Statements are presented as if the merger had been consummated
prior to the periods presented.
(4) The number of shares of common stock outstanding, by company, were as
follows:
Puget WECo Pro Forma
---------- ---------- ----------
at September 30, 1996 63,641,000 24,268,000 84,511,000
(5) The Pro Forma Financial Statements do not reflect the $370 million net
cost savings estimated to be achieved in the ten-year period following
consummation of the merger. The terms and conditions under which the
Washington Utilities and Transportation Commission may approve the
merger are unknown.
(6) Assumes WNG preferred stock has been exchanged for Puget Sound Energy
preferred stock. In the Pro Forma Condensed Statements of Income, these
dividend requirements are included in "Preferred Stock Dividend
Accruals."
