UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarterly Period Ended June 30, 1996
_____________________________________
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 0-17427
___________
UPPER PENINSULA ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
Michigan 38-2817909
___________________________________ _________________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
600 Lakeshore Drive, P.O. Box 130, Houghton, Michigan 49931-0130
_________________________________________________________________
(Address of principal executive offices) (Zip Code)
(Registrant's telephone no., including area code) (906) 487-5000
______________
_________________________________________________________________
(Former name, former address and former fiscal year, if changed
since last report.)
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 such reports), and (2) has
been subject to such filing requirements for the past 90 days. Yes X No
____ _____
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Sections 12, 13 or 15(d) of the
Securities Exchange Act of 1934 subsequent to the distribution of securities
under a plan confirmed by a court. Yes _______ No _______
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of issuer's classes of
common stock, as of the latest practicable date.
As of July 31, 1996, 2,969,215 shares of common stock, no par value
___________________________________________________________________
<PAGE> -2-
UPPER PENINSULA ENERGY CORPORATION
FORM 10-Q
JUNE 30, 1996
TABLE OF CONTENTS
Page No.
________
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of Income - Three
Months Ended June 30, 1996 and June 30, 1995 3
Consolidated Statements of Income - Six
Months Ended June 30, 1996 and June 30, 1995 4
Consolidated Statements of Cash Flow -
Six Months Ended June 30, 1996 and
June 30, 1995 5
Consolidated Balance Sheets - June 30,
1996 and June 30, 1995
Assets 7
Capitalization and Liabilities 8
Item 2. Management's Discussion and Analysis of
Financial Conditions and Results of
Operations 9
Part II. OTHER INFORMATION 12
Items 1. through 4. N/A
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 13
<PAGE> -3-
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended
June 30
(Unaudited)
__________________
1996 1995
(Thousands of Dollars)
<S> <C> <C>
Operating Revenues........................ $13,810 $14,523
_______ _______
Operating Expenses:
Operation - Power Supply Costs.......... 4,121 4,704
- Other....................... 3,679 3,422
Maintenance............................. 749 781
Depreciation and Amortization........... 1,505 1,431
Federal Income Tax ..................... 513 727
Taxes Other Than Federal Income Taxes -
Ad Valorem............................ 851 823
Other................................. 361 336
_______ _______
Total........................... 11,779 12,224
_______ _______
Operating Income.......................... 2,031 2,299
_______ _______
Other Income (Deductions):
Interest Income......................... 22 12
Other................................... 1 (13)
Federal Income Tax Expense.............. (2) 11
_______ _______
Total........................... 21 10
_______ _______
Income Before Interest Charges............ 2,052 2,309
_______ _______
Interest Charges:
Interest on Long-Term Debt.............. 972 977
Amortization of Debt Expense............ 18 18
Other Interest Expense.................. 44 21
_______ _______
Total........................... 1,034 1,016
_______ _______
Income Before Dividends on Preferred
Stock of Subsidiary..................... 1,018 1,293
Dividends on Preferred Stock of
Subsidiary.............................. 6 7
_______ _______
Net Income................................ $ 1,012 $ 1,286
======= =======
Average Number of Shares Outstanding...... 2,969,215 2,969,215
Earnings Per Share of Common Stock........ $0.34 $0.44
Dividends Paid Per Share of Common Stock.. $0.3125 $0.30
</TABLE>
<PAGE> -4-
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (continued)
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Six Months Ended
June 30
(Unaudited)
______________________
1996 1995
(Thousands of Dollars)
<S> <C> <C>
Operating Revenues........................ $29,382 $31,280
_______ _______
Operating Expenses:
Operation - Power Supply Costs.......... 8,814 10,063
- Other....................... 7,449 6,702
Maintenance............................. 1,573 1,421
Depreciation and Amortization........... 3,010 2,861
Federal Income Tax...................... 1,374 2,054
Taxes Other Than Federal Income Taxes -
Ad Valorem............................ 1,708 1,648
Other................................. 748 691
_______ _______
Total........................... 24,676 25,440
_______ _______
Operating Income.......................... 4,706 5,840
_______ _______
Other Income (Deductions):
Interest Income......................... 39 25
Other................................... 26 (25)
Federal Income Tax Expense.............. (9) 17
_______ _______
Total........................... 56 17
_______ _______
Income Before Interest Charges............ 4,762 5,857
_______ _______
Interest Charges:
Interest on Long-Term Debt.............. 1,946 1,955
Amortization of Debt Expense............ 37 37
Other Interest Expense.................. 60 29
_______ _______
Total........................... 2,043 2,021
_______ _______
Income Before Dividends on Preferred
Stock of Subsidiary..................... 2,719 3,836
Dividends on Preferred Stock of
Subsidiary.............................. 12 14
_______ _______
Net Income................................ $ 2,707 $ 3,822
======= =======
Average Number of Shares Outstanding...... 2,969,215 2,969,215
Earnings Per Share of Common Stock........ $0.91 $1.29
Dividends Paid Per Share of Common Stock.. $0.625 $0.60
</TABLE>
<PAGE> -5-
Item 1. Financial Statements (continued)
CONSOLIDATED STATEMENTS OF CASH FLOW
<TABLE>
<CAPTION>
Six Months Ended
June 30
(Unaudited)
____________________
1996 1995
(Thousands of Dollars)
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income.............................. $ 2,707 $ 3,822
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Depreciation and Amortization......... 3,010 2,861
Dividends on Preferred Stock of
Subsidiary.......................... 12 14
Allowance for Equity Funds Used
During Construction................. (38)
Deferred Federal Income Taxes and
Investment Tax Credit............... (87) 556
Prepaid and Accrued Pension........... (740) 748
Other................................. 379 964
Changes in Assets and Liabilities:
Accounts Receivable................... 1,030 453
Inventories........................... (127) (254)
Prepayments........................... (4) 273
Accrued Ad Valorem Taxes.............. (84) (80)
Accounts Payable and Accrued Accounts. (1,735) (1,389)
_______ _______
Cash Flows From Operating
Activities........................ 4,323 7,968
_______ _______
Cash Flows from Investing Activities:
Plant and Property Additions
(excluding Allowance for Funds Used
During Construction)................ (4,724) (5,895)
Allowance for Borrowed Funds Used
During Construction................. (50)
Other - Net........................... (75) (401)
_______ _______
Cash Flows from Investing
Activities...................... (4,849) (6,296)
_______ _______
Cash Flows From Financing Activities:
Retirement of Long-Term Debt and
Preferred Stock..................... (207) (223)
Dividends............................. (1,868) (1,795)
Increase in Notes Payable............. 2,500 1,000
_______ _______
Cash Flows from Financing
Activities...................... 425 (1,018)
_______ _______
</TABLE>
<PAGE> -6-
Item 1. Financial Statements (continued)
CONSOLIDATED STATEMENTS OF CASH FLOW (continued)
<TABLE>
<CAPTION>
Six Months Ended
June 30
(Unaudited)
____________________
1996 1995
(Thousands of Dollars)
<S> <C> <C>
Net Increase (Decrease) in Cash and
Cash Equivalents........................ (101) 654
Cash and Cash Equivalents at the
Beginning of Period..................... 3,249 2,887
_______ _______
Cash and Cash Equivalents at the End
of Period............................... $ 3,148 $ 3,541
======= =======
Supplemental Cash Flows Information:
Interest Paid......................... $ 2,049 $ 2,045
======= =======
Income Taxes Paid..................... $ 1,250 $ 1,250
======= =======
</TABLE>
<PAGE> -7-
Item 1. Financial Statements (continued)
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
June 30 December 31
1996 1995
(Unaudited)
___________ ___________
(Thousands of Dollars)
<S> <C> <C>
Utility Plant:
Electric Plant in Service............ $161,709 $162,506
Less Accumulated Depreciation and
Amortization....................... 74,009 71,736
________ ________
Net Electric Plant in Service.. 87,700 90,770
Construction Work in Progress........ 14,525 10,045
________ ________
Net Utility Plant.............. 102,225 100,815
________ ________
Other Property and Investments......... 5,947 5,726
________ ________
Current Assets:
Cash and Cash Equivalents............ 3,148 3,249
Accounts Receivable (less allowance
for doubtful accounts of $86)...... 5,796 6,195
Revenue Receivable - Power Supply
Cost Recovery-Net.................. 631
Inventories - at average cost:
Materials and Supplies............. 2,290 2,176
Fuel............................... 276 263
Prepayments.......................... 364 360
Accrued Ad Valorem Taxes............. 3,524 3,440
Deferred Federal Income Taxes........ 1,198 1,219
________ ________
Total.......................... 16,596 17,533
________ ________
Deferred Debits and Other Assets:
Unamortized Debt Expense (being
amortized over the lives of
debt issues)...................... 529 550
Intangible Pension Plan Asset........ 1,821 1,821
Other................................ 2,002 1,939
________ ________
Total.......................... 4,352 4,310
________ ________
$129,120 $128,384
======== ========
</TABLE>
<PAGE> -8-
CONSOLIDATED BALANCE SHEETS (continued)
CAPITALIZATION AND LIABILITIES
<TABLE>
<CAPTION>
June 30 December 31
1996 1995
(Unaudited)
____________ ___________
(Thousands of Dollars)
<S> <C> <C>
Capitalization:
Common Stock and Paid-In-Capital..... $ 21,540 $ 21,552
Retained Earnings.................... 21,036 20,185
________ ________
Total Common Equity............ 42,576 41,737
Redeemable Preferred Stock........... 457 503
Long-Term Debt, less current
maturities......................... 43,336 43,508
________ ________
Total Capitalization........... 86,369 85,748
________ ________
Current Liabilities:
Long-Term Debt Due Within One Year... 236 225
Notes Payable........................ 3,200 700
Accounts Payable..................... 4,098 5,318
Accrued Accounts:
Taxes - Ad Valorem................. 5,270 5,806
- Other...................... 317 147
Wages and Benefits................. 2,735 3,324
Interest........................... 909 871
Revenue Payable - Power Supply
Cost Recovery-Net................ 212
Other.............................. 194 4
________ ________
Total.......................... 17,171 16,395
________ ________
Deferred Credits:
Deferred Federal Income Taxes........ 6,762 6,779
Unamortized Investment Tax Credit.... 2,834 2,925
Customer Advances for Construction... 1,477 1,283
Accrued Pensions..................... 3,329 4,069
Regulatory Liabilities............... 5,355 5,355
Post Retirement Health and Life...... 3,077 2,883
Other................................ 2,746 2,947
________ ________
Total.......................... 25,580 26,241
________ ________
Commitments and Contingencies..........
________ ________
$129,120 $128,384
======== ========
</TABLE>
<PAGE> -9-
Item 1. Financial Statements (continued)
________________________________
On January 1, 1996 the Company adopted Statement of Financial
Accounting Standards No. 121, Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to Be Disposed Of and Statement of
Financial Accounting Standards No. 123, Accounting for Stock-Based
Compensation. Adoption of these Statements did not have a significant
impact on the Company's financial statements.
On April 24, 1996, the Federal Energy Regulatory Commission (FERC)
issued Order No. 888, which requires the Company to file open access
transmission tariff, and Order No. 889, requiring the Company to set
procedures for implementation of standards of conduct utilizing an open
access same time information system.
On July 5, 1996, Upper Peninsula Power Company submitted an application
to the FERC asking for waiver of, or in the alternative, extension of time
to comply with Order No. 888 and Order No. 889.
In the opinion of management, the information furnished reflects all
adjustments which are necessary for a fair statement of results for the
interim period. Certain items previously reported have been reclassified to
conform to the current presentation in the financial statements.
Item 2. Management's Discussion and Analysis of Financial
Conditions and Results of Operations
_________________________________________________
Second Quarter of 1996 Compared to Second Quarter of 1995
_________________________________________________________
Operating revenues for the second quarter of 1996 were $13,810,000
compared to $14,523,000 for the same quarter of
<PAGE> -10-
1995, a decrease of $713,000 (4.9%). The decrease in revenues was mainly
due to the 5.7% rate reduction granted Michigan Public Service Commission
jurisdictional customers effective during the second quarter of 1995, the
decommissioning of K.I. Sawyer Air Force Base, and the pass through of lower
power supply costs.
Power supply costs for the second quarter decreased 12.4% from the 1995
period. This decrease is the result of a 8.5% reduction in mWh sales
together with a 5.5% reduction in the average unit cost of power supply
resulting from an 8.1% increase in hydro generation and some low unit cost
short-term power purchases.
Total other operation and maintenance expenses increased 5.4% during
the second quarter of 1996. The increase was the result of higher
administrative and general expenses brought about by increases in employee-
related costs, regulatory expenses and rents, together with a higher level
of expense charged by the operating department due to a reduced construction
program during the second quarter of 1996 compared to 1995.
Depreciation and ad valorem taxes increased in the second quarter due
to an increase in plant-in-service.
Based on the above changes net income decreased by $274,000 (21.3%),
compared to the second quarter of 1995. Earnings per average common share
for the three months ended June 30, 1996 were $0.34 compared to $0.44 for
the same period in 1995.
First Six Months of 1996 Compared
to First Six Months of 1995
_________________________________
Net income decreased $1,115,000 in the first six months of
<PAGE> -11-
1996 compared to the same period last year. Earnings per average Common
share for the six months ended June 30, 1996 and 1995 were $0.91 and $1.29
respectively.
Operating revenues for the six months ended June 30, 1996 were
$29,382,000 compared to $31,280,000 for the corresponding period of the
prior year, a decrease of $1,898,000 (6.1%). The decrease was due primarily
to the 5.7% rate reduction granted Michigan Public Service Commission
jurisdictional customers effective during the second quarter of 1995, the
decommissioning of K.I. Sawyer Air Force Base, and the pass through of lower
power supply costs.
Power supply costs for the six months ended June 30, 1996 were
$1,249,000 (12.4%) lower than the previous period. A 5.9% reduction in mWh
sales and a 7.1% decrease in the average unit cost of power supply brought
about by an 18.4% increase in hydro generation and low unit cost short-term
purchases contributed to the lower power supply cost in the current period.
Total other operation and maintenance expenses rose 11.1% for the six
months ended June 30, 1996 due mainly to higher employee-related costs and
regulatory expenses as well as a higher level of expense charged by the
operating department due to a reduced construction program during the
current period.
Depreciation and ad valorem taxes increased in the current period due
to an increase in plant-in-service.
No other component of the Corporation's first six months of 1996
operations changed significantly.
Other Financial Information
___________________________
During the second quarter of 1996, the Corporation's cash
<PAGE> -12-
requirements were met through funds that were internally generated and
short-term borrowings. There were $3,200,000 of short-term borrowings at
June 30, 1996 compared to $700,000 at December 31, 1995.
The Corporation's primary subsidiary, Upper Peninsula Power Company
(UPPCO), has indentures relating to first mortgage bonds containing certain
limitations on the payment of cash dividends on common stock. Under the
most restrictive of these provisions, approximately, $15,096,000 of
consolidated retained earnings is available at June 30, 1996, for payment of
common stock cash dividends by the Corporation. At December 31, 1995
unrestricted retained earnings were approximately $14,182,000.
On July 5, 1996 Upper Peninsula Power Company submitted an application
to the Federal Energy Regulatory Commission asking for waiver of, or in the
alternative, extension of time to comply with Order No. 888 which requires
the Company to file open access transmission tariff and Order No. 889
requiring that the Company set procedures for implementation of standards of
conduct utilizing an open access same time information system.
Part II - OTHER INFORMATION
____________________________
Item 1. Legal Proceedings N/A
Item 2. Changes in Securities N/A
Item 3. Defaults Upon Senior Securities N/A
Item 4. Submission of Matters to a Vote of
Security Holders N/A
Item 5. Other Information
In December 1995, 16 employees (excluding
employees working in facilities operated for
others) took part in a voluntary severance
program. These individuals left UPPCO's work
force in the second quarter of 1996. Therefore,
the savings brought about through these employee
reductions have not yet been fully realized.
<PAGE> -13-
Item 6. Exhibits and Reports on Form 8-K
________________________________
(a) List of Exhibits required by Item 601 of
Regulation S-K
Exhibit No. Description of Exhibit
___________ ______________________
(2) Plan of acquisition, reorganization,
arrangement, liquidation or succession N/A
(4) Instruments defining the rights of security
holders,including indentures
[INSTRUMENTS TO WHICH UPPCO IS A PARTY]
4.1(a)-1 --- Indenture of Mortgage dated May 1, 1947
relating to UPPCO's First Mortgage Bonds.
(Exhibit 4(d)-1 to Form 8-K, dated
December 13, 1988)
4.1(a)-2 --- Supplemental Indenture dated as of May 1,
1947.
(Exhibit 4(d)-2 to Form 8-K, dated
December 13, 1988)
4.1(a)-3 --- Second Supplemental Indenture dated as of
December 1, 1948.
(Exhibit 4(d)-3 to Form 8-K, dated
December 13, 1988)
4.1(a)-4 --- Third Supplemental Indenture dated as of
November 1, 1950.
(Exhibit b(1)(d)4 to Registration No.
2-66759)*
4.1(a)-5 --- Fourth Supplemental Indenture dated as of
October 1, 1953.
(Exhibit b(1)(d)5 to Registration No.
2-66759)*
4.1(a)-6 --- Fifth Supplemental Indenture dated as of
April 1, 1957.
(Exhibit b(1)(d)6 to Registration No.
2-66759)*
4.1(a)-7 --- Sixth Supplemental Indenture dated as of
September 1, 1958.
(Exhibit b(1)(d)7 to Registration No.
2-66759)*
4.1(a)-8 --- Seventh Supplemental Indenture dated as of
May 1,1961.
(Exhibit b(1)(d)8 to Registration No.
2-66759)*
4.1(a)-9 --- Eighth Supplemental Indenture dated as of
May 1, 1963.
(Exhibit b(1)(d)9 to Registration No.
2-66759)*
4.1(a)-10 --- Ninth Supplemental Indenture dated as of
January 1, 1971.
(Exhibit 4(d-10 to Form 8-K, dated
December 13, 1988)
4.1(a)-11 --- Tenth Supplemental Indenture dated as of
November 1, 1973.
(Exhibit 4(d-11 to Form 8-K, dated
December 13, 1988)
<PAGE> -14-
4.1(a)-12 --- Eleventh Supplemental Indenture dated as
of May 1, 1976.
(Exhibit 4(d-12 to Form 8-K, dated
December 13, 1988)
4.1(a)-13 --- Twelfth Supplemental Indenture dated as of
August 1, 1981
(Exhibit 4(a)-13 to Form 10-K, dated
March 26, 1982)*
4.1(a)-14 --- Thirteenth Supplemental Indenture dated
as of November 1, 1988
(Exhibit 4(d-14 to Form 8-K, dated
December 13, 1988)
4.1(a)-15 --- Fourteenth Supplemental Indenture dated
as of November 1, 1991
(Exhibit 4.1(a)-15 to Form 10-Q, dated
November 11, 1991)
4.1(a)-16 --- Fifteenth Supplemental Indenture dated as
of March 1, 1993
(Exhibit 4.1(a)-16 to Form 10-K, dated
March 25, 1993)
4.1(b) --- Installment Sales Contract between the
Village of L'Anse and UPPCO dated May 1,
1974.
(Exhibit A-II to Form 8-K, dated
July 10, 1974)*
4.1(c)-1 --- Lease and Security Agreement dated May 9,
1977 between UPPCO, as lessee and
debtor, and PruLease, Inc., as lessor
and secured party.
(Exhibit 5 to Form 10-K dated March 28,
1978)*
4.1(c)-2 --- Amendment No. 1 to Lease and Security
Agreement dated June 29, 1979 between
UPPCO, as lessee and debtor, and
PruLease, Inc. as lessor and secured
party.
(Exhibit b(1)(d)15 to Registration No.
2-66759)*
4.1(c)-3 --- Amendment No. 2 to Lease and Security
Agreement dated May 1, 1982 between
UPPCO, as lessee and debtor, and
PruLease, Inc. as lessor and secured
party.
(Exhibit 4(c)-3 to Form 10-K dated
March 28, 1983)*
4.1(c)-4 --- Loan Agreement dated as of June 30, 1988
between UPPCO and First of America
Bank-Copper Country (Exhibit 4.1(c)-4
to Form 10-K dated March 29, 1989)
4.1(d) --- Lease Agreement dated as of November 13,
1991 between UPPCO and UPBDC
(Exhibit 4.1(d) to Form 10-K dated
March 25, 1992)
[INSTRUMENTS TO WHICH UPBDC IS A PARTY]
4.2(a) --- Trust Indenture, Mortgage and Security
Agreement dated November 1, 1991,
relating to UPBDCO's Senior Secured
Note
<PAGE> -15-
(Exhibit 4.2(a) to Form 10-K dated
March 25, 1992)
4.2(c) --- Loan Agreement dated as of June 20, 1989
between UPBDC and National Bank of
Detroit.
(Exhibit 4.2(c) to Form 10-K, dated
March 28, 1990)
4.2(d) --- Lease Agreement dated as of November 13,
1991 between UPBDC and UPPCO
(Exhibit 4.2(d) to Form 10-K dated
March 25, 1992
* Parenthetical references following descriptions
of Upper Peninsula Power Company instruments are
to filings made by that company. 1934 ACT File
No. is 0-1276
(11) Statement re computation of per share earnings N/A
(15) Letter re unaudited interim financial information N/A
(18) Letter re change in accounting principles N/A
(19) Report furnished to security holders N/A
(22) Published report regarding matters submitted
to vote of security holders N/A
(23) Consents of experts and counsel
23(a) - Consent of Independent Certified Public
Accountants N/A
(24) Power of attorney N/A
(27) Financial Data Schedule, which is submitted
electronically to the Securities and Exchange
Commission for information only N/A
(99) Additional Exhibits N/A
Item 6(b). Reports on Form 8-K
No Form 8-K was filed during the quarter for
which this report filed.
<PAGE> -16-
S I G N A T U R E S
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.
UPPER PENINSULA ENERGY CORPORATION
(Registrant)
Date: August 12, 1996
/s/ B. C. Arola
B. C. Arola
Vice President, Treasurer and Secretary
(Principal Financial Officer)
<TABLE> <S> <C>
<ARTICLE> UT
<CIK> 0000838868
<NAME> UPPER PENINSULA ENERGY CORP
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 102,225
<OTHER-PROPERTY-AND-INVEST> 5,947
<TOTAL-CURRENT-ASSETS> 16,596
<TOTAL-DEFERRED-CHARGES> 4,352
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 129,120
<COMMON> 0
<CAPITAL-SURPLUS-PAID-IN> 21,540
<RETAINED-EARNINGS> 21,036
<TOTAL-COMMON-STOCKHOLDERS-EQ> 42,576
457
0
<LONG-TERM-DEBT-NET> 43,336
<SHORT-TERM-NOTES> 3,200
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 236
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 39,315
<TOT-CAPITALIZATION-AND-LIAB> 129,120
<GROSS-OPERATING-REVENUE> 29,382
<INCOME-TAX-EXPENSE> 1,374
<OTHER-OPERATING-EXPENSES> 23,302
<TOTAL-OPERATING-EXPENSES> 24,676
<OPERATING-INCOME-LOSS> 4,706
<OTHER-INCOME-NET> 56
<INCOME-BEFORE-INTEREST-EXPEN> 4,762
<TOTAL-INTEREST-EXPENSE> 2,043
<NET-INCOME> 2,719
12
<EARNINGS-AVAILABLE-FOR-COMM> 2,707
<COMMON-STOCK-DIVIDENDS> 928
<TOTAL-INTEREST-ON-BONDS> 3,861
<CASH-FLOW-OPERATIONS> 4,323
<EPS-PRIMARY> .91
<EPS-DILUTED> .91
</TABLE>
