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 the quarterly period ended SEPTEMBER 30, 1994
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 1-11337
_________________________
WPS Resources Corporation
____________________________________________________________________________
(Exact name of Registrant as specified in its charter)
Wisconsin 39-1775292
____________________________________________________________________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
700 North Adams St., P. O. Box 19001, Green Bay, Wisconsin 54307
____________________________________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (414) 433-1445
_________________________
______________________________________________________________________________
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 No X
______ ______
Number of shares outstanding of each class of common stock, as of
the close of the period covered by this report.
________________________________________________________________
Common Stock, $1 par value 23,896,962 shares
<PAGE>
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Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
WPS RESOURCES CORPORATION
CONSOLIDATED BALANCE SHEETS
<CAPTION>
September 30 December 31
1994 1993
------------ ------------
(Thousands)
<S> <C> <C>
ASSETS
Utility Plant:
In-service -
Electric . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,407,142 $ 1,374,662
Gas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196,584 183,798
-------------- -------------
1,603,726 1,558,460
Less - Accumulated provision for depreciation. . . . . . . . 842,586 801,056
-------------- -------------
761,140 757,404
Nuclear decommissioning trusts . . . . . . . . . . . . . . . 60,348 56,699
Construction in progress . . . . . . . . . . . . . . . . . . 8,886 11,781
Nuclear fuel, less accumulated provisions for amortization .
of $134,523, and $130,011, respectively . . . . . . . . . 13,917 17,981
-------------- -------------
Net utility plant. . . . . . . . . . . . . . . . . . . . . 844,291 843,865
-------------- -------------
Current Assets:
Cash and equivalents . . . . . . . . . . . . . . . . . . . . . 24,723 5,391
Customer and other receivables, net of reserves. . . . . . . . 49,602 66,511
Accrued utility revenues . . . . . . . . . . . . . . . . . . . 18,292 37,314
Fossil fuel, at average cost . . . . . . . . . . . . . . . . . 10,099 10,208
Gas in storage, at average cost . . . . . . . . . . . . . . . 19,645 19,885
Materials and supplies, at average cost. . . . . . . . . . . . 20,695 19,411
Prepayments and other. . . . . . . . . . . . . . . . . . . . . 16,030 21,420
-------------- -------------
Total current assets . . . . . . . . . . . . . . . . . 159,086 180,140
-------------- -------------
Deferred Charges . . . . . . . . . . . . . . . . . . . . . . . . 111,903 118,128
Investments and Other Assets . . . . . . . . . . . . . . . . . . 66,464 56,708
-------------- -------------
$ 1,181,744 $ 1,198,841
============== =============
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock equity. . . . . . . . . . . . . . . . . . . . . . $ 444,636 $ 433,724
Preferred stock with no mandatory redemption . . . . . . . . . 51,200 51,200
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . 312,168 314,225
-------------- -------------
Total capitalization . . . . . . . . . . . . . . . . . 808,004 799,149
-------------- -------------
Current Liabilities:
Note payable . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 10,000
Commercial paper . . . . . . . . . . . . . . . . . . . . . . . -- 11,000
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . 44,030 64,113
Accrued taxes. . . . . . . . . . . . . . . . . . . . . . . . . 1,808 3,266
Accrued interest . . . . . . . . . . . . . . . . . . . . . . . 5,012 7,695
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,666 10,735
-------------- -------------
Total current liabilities. . . . . . . . . . . . . . . 76,516 106,809
-------------- -------------
Other Long-Term Liabilities and Deferred Credits:
Accumulated deferred income taxes. . . . . . . . . . . . . . . 134,448 138,952
Accumulated deferred investment credits. . . . . . . . . . . . 32,807 34,210
Regulatory liabilities . . . . . . . . . . . . . . . . . . . . 64,326 61,434
Other long-term liabilities. . . . . . . . . . . . . . . . . . 65,643 58,287
-------------- -------------
297,224 292,883
-------------- -------------
Commitments and Contingencies -------------- -------------
$ 1,181,744 $ 1,198,841
============== =============
The accompanying notes to financial statements are an integral part of these statements.
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<TABLE>
WPS RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF CAPITALIZATION
<CAPTION>
September 30 December 31
1994 1993
------------ -----------
(Thousands)
<S> <C> <C>
COMMON STOCK EQUITY:
Common stock, $1 par value, 100,000,000 shares authorized;
23,896,962 shares outstanding . . . . . . . . . . . . . . . . . $ 23,897 $ 23,897
Premium on capital stock . . . . . . . . . . . . . . . . . . 145,295 145,295
Retained earnings. . . . . . . . . . . . . . . . . . . . . . 297,652 287,915
ESOP loan guarantee. . . . . . . . . . . . . . . . . . . . . (22,208) (23,383)
------------ ------------
Total common stock equity. . . . . . . . . . . . . . 444,636 433,724
------------ ------------
PREFERRED STOCK:
Cumulative, $100 par value, 1,000,000 shares authorized;
With no mandatory redemption -
Series Shares Outstanding
5.00% 132,000. . . . . . . . . 13,200 13,200
5.04% 30,000. . . . . . . . . 3,000 3,000
5.08% 50,000. . . . . . . . . 5,000 5,000
6.76% 150,000. . . . . . . . . 15,000 15,000
6.88% 150,000. . . . . . . . . 15,000 15,000
------------ ------------
Total preferred stock. . . . . . . . . . . . . . . . . 51,200 51,200
------------ ------------
LONG-TERM DEBT:
First mortgage bonds -
Series Year Due
5-1/4% 1998 . . . . . . . . . . 50,000 50,000
7.30% 2002 . . . . . . . . . . 50,000 50,000
6.80% 2003 . . . . . . . . . . 50,000 50,000
6-1/8% 2005 . . . . . . . . . . 9,075 9,075
6.90% 2013 . . . . . . . . . . 22,000 22,000
10-1/8% 2014 . . . . . . . . . . -- 1,000
8.80% 2021 . . . . . . . . . . 60,000 60,000
7-1/8% 2023 . . . . . . . . . . 50,000 50,000
------------ ------------
291,075 292,075
Unamortized discount and premium on bonds, net . . . . . . . (1,175) (1,257)
------------ ------------
Total first mortgage bonds . . . . . . . . . . . . . . . . 289,900 290,818
ESOP loan guarantee. . . . . . . . . . . . . . . . . . . . . 22,208 23,383
Other long-term debt . . . . . . . . . . . . . . . . . . . . 60 24
------------ ------------
Total long-term debt . . . . . . . . . . . . . . . . 312,168 314,225
------------ ------------
Total capitalization . . . . . . . . . . . . . . . . . . . . . . $ 808,004 $ 799,149
============ ============
The accompanying notes to financial statements are an integral part of these statements.
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<TABLE>
WPS RESOURCES CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED
<CAPTION>
September 30
1994 1993
------------ ------------
(Thousands)
<S> <C> <C>
Cash Flows From Operating Activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 41,878 $ 46,727
Adjustments to reconcile net income to net cash from
operating activities -
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . 42,108 45,465
Amortization of nuclear fuel and other . . . . . . . . . . . . . 21,474 19,632
Deferred income taxes. . . . . . . . . . . . . . . . . . . . . . (1,244) (1,257)
Investment credit restored . . . . . . . . . . . . . . . . . . . (1,403) (1,488)
AFUDC equity . . . . . . . . . . . . . . . . . . . . . . . . . . (82) (269)
Pension funding. . . . . . . . . . . . . . . . . . . . . . . . . (8,131) (7,373)
Post retirement liability. . . . . . . . . . . . . . . . . . . . 5,277 4,436
Deferred DSM expenditures. . . . . . . . . . . . . . . . . . . . (7,338) (15,711)
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,176 11,020
Changes in -
Customer and other receivables. . . . . . . . . . . . . . . . . 16,909 6,886
Accrued utility revenues. . . . . . . . . . . . . . . . . . . . 19,022 13,094
Fossil fuel . . . . . . . . . . . . . . . . . . . . . . . . . . 109 4,436
Gas in storage. . . . . . . . . . . . . . . . . . . . . . . . . 240 (11,167)
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . (20,083) (1,406)
Miscellaneous current and accrued liabilities . . . . . . . . . 2,819 (5,888)
Accrued taxes . . . . . . . . . . . . . . . . . . . . . . . . . (1,458) 6,344
------------ ------------
Net Cash From Operating Activities. . . . . . . . . . . . . . 111,273 113,481
------------ ------------
Cash Flows From (Used For) Investing Activities:
Construction and nuclear fuel expenditures, including AFUDC debt (46,025) (46,654)
Decommissioning funding. . . . . . . . . . . . . . . . . . . . . (3,649) (4,746)
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,872 (1,636)
------------ ------------
Net cash from (used for) investing activities . . . . . . . . (47,802) (53,036)
------------ ------------
Cash Flows From (Used For) Financing Activities:
Proceeds from issuance of common stock . . . . . . . . . . . . . - 1,693
Sale of first mortgage bonds . . . . . . . . . . . . . . . . . . - 150,000
Redemption and maturity of first mortgage bonds. . . . . . . . . (1,000) (166,753)
Change in commercial paper . . . . . . . . . . . . . . . . . . . (11,000) (10,000)
Common stock dividends . . . . . . . . . . . . . . . . . . . . . (32,141) (31,411)
------------ ------------
Net cash from (used for) financing activities . . . . . . . . (44,141) (56,471)
------------ ------------
Net Increase in Cash and Equivalents . . . . . . . . . . . . . . . 19,330 3,974
Cash and Equivalents at Beginning of Period. . . . . . . . . . . . 5,393 178
------------ ------------
Cash and Equivalents at End of Period. . . . . . . . . . . . . . . $ 24,723 $ 4,152
============ ============
Cash Paid During Period For:
Interest, less amount capitalized. . . . . . . . . . . . . . . . $ 18,463 $ 17,324
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,832 $ 21,593
The accompanying notes to financial statements are an integral part of these statements.
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<TABLE>
WPS RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
FOR THE NINE MONTHS ENDED
<CAPTION>
September 30
1994 1993
---------- ----------
(Thousands)
<S> <C> <C>
Balance at Beginning of Period . . . . . . . . . . . . $ 287,915 $ 271,220
Add - Net income . . . . . . . . . . . . . . . . . . . 41,878 46,727
---------- ----------
329,793 317,947
---------- ----------
Deduct -
Cash dividends declared on common stock
($1.345 and $1.315 per share, respectively). . . . 32,141 31,411
Other. . . . . . . . . . . . . . . . . . . . . . . . - 148
---------- ----------
32,141 31,559
---------- ----------
Balance at End of Period . . . . . . . . . . . . . . . $ 297,652 $ 286,388
========== ==========
The accompanying notes to financial statements are an integral
part of these statements.
-5-
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<PAGE>
<TABLE>
WPS RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
AS OF SEPTEMBER 30
<CAPTION>
Three Months Ended Nine Months Ende
1994 1993 1994 1993
-------- -------- -------- -------
(Thousands) (Thousands)
<S> <C> <C> <C> <C>
Operating Revenues:
Electric . . . . . . . . . . . . . . . . . . . . . . . . . $ 124,340 $ 128,598 $ 363,842 $371,738
Gas. . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,909 27,712 140,370 131,268
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . 8 -- 51 --
-------- -------- -------- -------
152,257 156,310 504,263 503,006
-------- -------- -------- -------
Operating Expenses:
Operation -
Electric production fuels. . . . . . . . . . . . . . . 29,177 30,008 85,479 88,842
Cost of gas sold . . . . . . . . . . . . . . . . . . . 21,489 20,626 99,416 93,388
Purchased power. . . . . . . . . . . . . . . . . . . . 8,995 5,995 28,747 22,257
Other. . . . . . . . . . . . . . . . . . . . . . . . . 36,878 35,549 110,756 108,792
Maintenance. . . . . . . . . . . . . . . . . . . . . . . 9,877 10,732 35,689 35,299
Depreciation . . . . . . . . . . . . . . . . . . . . . . 14,042 15,054 42,108 45,465
Gross receipts and other taxes . . . . . . . . . . . . . 6,544 6,354 19,531 18,884
-------- -------- -------- -------
127,002 124,318 421,726 412,927
-------- -------- -------- -------
Operating Income . . . . . . . . . . . . . . . . . . . . . 25,255 31,992 82,537 90,079
-------- -------- -------- -------
Other Income and (Deductions):
Allowance for equity funds used during construction. . . 40 16 82 269
Other, net . . . . . . . . . . . . . . . . . . . . . . . 1,459 800 3,793 3,843
Income taxes . . . . . . . . . . . . . . . . . . . . . . 13 (205) (23) (189)
-------- -------- -------- -------
1,512 611 3,852 3,923
-------- -------- -------- -------
Interest Expense:
Interest on long-term debt . . . . . . . . . . . . . . . 5,770 5,883 17,612 18,481
Allowance for borrowed funds used during construction. . (38) 98 (100) (160)
Other interest . . . . . . . . . . . . . . . . . . . . . 477 375 1,364 1,124
-------- -------- -------- -------
6,209 6,356 18,876 19,445
-------- -------- -------- -------
Income Before Income Taxes . . . . . . . . . . . . . . . . 20,558 26,247 67,513 74,557
Income taxes . . . . . . . . . . . . . . . . . . . . . . . 6,830 9,699 23,302 25,297
Preferred Stock Dividends of Subsidiary. . . . . . . . . . 778 875 2,333 2,533
-------- -------- -------- -------
Net Income . . . . . . . . . . . . . . . . . . . . . . . . $ 12,950 $ 15,673 $ 41,878 $ 46,727
======== ======== ======== =======
Earnings Per Average Share of Common Stock . . . . . . . . $0.54 $0.66 $1.75 $1.96
======== ======== ======== =======
The accompanying notes to financial statements are an integral part of these statements.
- 6 -
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(1) Holding Company Formation: On September 1, 1994, the Company acquired
pursuant to a share exchange all of the subsidiary common stock, $4 par
value, of WPSC and issued to the former shareholders of WPSC shares of
the Company's common stock, $1 par value. As a result of the holding
company formation, financial statements of the Company will be
consolidated with the operations of its subsidiaries for all periods
presented. As of September 30, 1994, WPSC represented over 99% of the
Company's consolidated assets, revenues and net income.
As a result of the holding company formation, in all subsequent
financial statements, preferred stock dividends of WPSC will be
retroactively restated as a nonoperating expense. This has the impact
of reducing net income by $875,000 and $2,533,000, for the three and
nine months ended September 30, 1993. This restatement has no impact on
net income and earnings or on earnings per share of common stock.
(2) Financial Information: The following consolidated financial statements
have been prepared by WPS Resources Corporation (the "Company"), without
audit, pursuant to the rules and regulations of the Securities and
Exchange Commission ("SEC") and, in the opinion of Management, include
all adjustments (consisting only of normal recurring adjustments)
necessary for a fair statement of results for each period shown.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such
SEC rules and regulations. The Company believes that the disclosures
made are adequate to make the information presented not misleading. It
is recommended that these financial statements be read in conjunction
with the financial statements and notes thereto included in Wisconsin
Public Service Corporation's ("WPSC") latest annual report on Form 10-K
and with it's March 31, 1994 and June 30, 1994 Form 10-Q.
Because of the seasonal nature of the WPSC's operations, interim results
are not necessarily indicative of annual results.
Item 2. Management's Discussion and Analysis of Financial Condition and
---------------------------------------------------------------
Results of Operations
---------------------
RESULTS OF OPERATIONS
- ---------------------
Third Quarter of 1994 Compared to the Third Quarter of 1993
- -----------------------------------------------------------
Revenues -
Electric operating revenues decreased $4.3 million, or 3.3%, during the third
quarter of 1994 as compared to the third quarter of 1993. Electric revenues
were lower due to a 4.0% decrease in retail Wisconsin rates that took effect
January 1, 1994. This rate decrease was partially offset by 4.3% increase in
kilowatt-hour ("Kwh") sales. Residential Kwh sales increased .9% due to
warmer weather. Commercial and industrial Kwh sales rose 4.9%, reflecting the
warm weather and customer growth. Wholesale Kwh sales increased of 6.3%.
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<PAGE>
Gas operating revenues increased by $.2 million, or 1%, during the third
quarter of 1994 as compared to the third quarter of 1993. Gas revenues were
higher, $6.3 million, due to gas revenues from Packerland Energy Services
("Packerland"), a gas marketing subsidiary which began operation in 1994.
This was offset by lower gas costs at WPSC of 10.8%.
Expenses -
Electric production fuels decreased $.8 million, or 2.8%, in the third quarter
of 1994 as compared to the third quarter of 1993. This decrease was due to
lower coal and nuclear generation of 1.8% and a 2.7% reduction in coal costs
per Kwh generated. Lower coal costs reflects less expensive coal that is
being brought on the spot market.
Gas purchased for resale increased $.9 million, or 4.2%, in the third quarter
of 1994 as compared to the third quarter of 1993. This increase was due to
additional gas costs associated with Packerland and was offset by lower gas
costs at WPSC.
Purchased power increased $3.0 million, or 50.0%, in the third quarter of 1994
as compared to the third quarter of 1993. The primary reason for this
increase was higher consumption in electric energy of 4.3%, while the
Company's coal generation was down 2.2%. Coal related generation was down due
to the Soo-Line railroad strike, which reduced coal inventories at these
plants. The Federal government has intervened and has issued an injunction
through February 1995, but there currently is a backlog in rail shipments.
Depreciation decreased $1.0 million, or 6.7%, in the third quarter of 1994 as
compared to the third quarter of 1993. The primary factor was a depreciation
rate order from the PSCW that took effect January 1, 1994, which reduced the
annual depreciation provision by an estimated $5.8 million.
Federal and state income taxes decreased $2.8 million, or 29.6%, in the third
quarter of 1994 as compared to the third quarter of 1993, due to lower
earnings.
First Nine Months of 1994 Compared to the First Nine Months of 1993
- -------------------------------------------------------------------
Revenues -
Electric operating revenues decreased $7.9 million, or 2.1% for the first nine
months of 1994 as compared to 1993. This decrease was due to a 4.0% reduction
in retail Wisconsin rates that took effect January 1, 1994. This decrease was
partially offset by an overall 4.4% increase in Kwh sales. Residential Kwh
sales increased 3.4% due primarily to weather. Commercial and industrial Kwh
sales rose 4.3%, reflecting the weather and customer growth. Wholesale Kwh
sales were higher by 1.0%.
Gas operating revenues increased $9.1 million, or 6.9% for the first nine
months of 1994 as compared to 1993. Gas revenues were higher due to a 7.7%
increase in sales volume, a .6% increase in Wisconsin retail rates that took
effect January 1, 1994 and gas sales from Packerland which began operations in
1994. These increases were partially offset by a 5.8% reduction in the cost
of gas at WPSC.
-8-
<PAGE>
Expenses -
Electric production fuels decreased $3.4 million, or 3.8%, during the first
nine months of 1994 compared to the same period in 1993, even though coal and
nuclear generation were up 1.8%. This decrease in the cost of fuel was
primarily the result of less expensive coal which has been purchased on the
spot market, which decreased fuel cost per Kwh by 7.1%.
Gas purchased for resale increased $6.0 million, or 6.5%, during the first
nine months of 1994 compared to the same period in 1993. This was due to
higher volume sales at WPSC of 7.7%, and increased gas purchases for
Packerland. The increase was partially offset by a 5.8% reduction in the cost
of gas at WPSC.
Purchased power increased $6.5 million, or 29.2%, during the first nine months
of 1994 compared to the same period in 1993. This was the result of higher
Kwh purchases of 31.7%, which was caused by the cold winter which raised
overall demand for electricity, and the Soo-Line railroad strike during the
third quarter that impacted the Company's ability to operate its coal-fired
units.
Depreciation decreased $3.4 million, or 7.4%, during the first nine months of
1994 compared to the same period in 1993. The primary factor was a
depreciation rate order from the PSCW that took effect January 1, 1994, which
reduced the annual depreciation provision by an estimated $5.8 million.
Federal and state income taxes decreased $2.0 million, or 7.9%, during the
first nine months of 1994 compared to the same period in 1993. This decrease
was due primarily to lower earnings.
FINANCIAL CONDITION
- -------------------
The Company maintains good liquidity levels and a financial condition
considered to be strong by utility analysts. Internally generated funds
exceeded the Company's cash requirements so short-term borrowings were reduced
during the first nine months of 1994, and short-term investments have
increased. No external funding difficulties are anticipated in the future.
Pretax interest coverage was 4.3 times for the 12 months ended September 30,
1994.
WPSC's bond ratings are AA+ (Standard & Poor's) and Aa2 (Moody's).
For the five-year period 1994-1998, internally generated funds are expected to
lag construction expenditures and other investments totalling $533 million by
about $131 million. These expenditures are comprised of $361 million for
electric construction, which includes new generation, $34 million for nuclear
fuel, $49 million for gas construction, and $33 million for other construction
expenditures, $56 million for funding of nuclear plant decommissioning,
certain employee benefit plans, and non-utility investments. The Company
currently expects to finance this shortfall in internally generated funds by
net bond additions of $75 million, and short-term debt of $56 million.
However, no bond sales are anticipated until after 1996.
WPSC's Kewaunee nuclear plant is currently licensed through the year 2013.
Physical decommissioning of the plant is expected to occur during the period
2014-2021 with additional expenditures being incurred during the period 2022-
2050. Costs to decommission in current dollars is $147 million and the
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<PAGE>
undiscounted amount is $785 million. Management does not anticipate
decommissioning to have any negative impacts to the Company's liquidity or
capital resources, since these costs are being funded through external
decommissioning trusts.
WPSC expects to reduce its Wisconsin retail electric rates by at least 2.5% on
January 1, 1995. The exact amount of the rate decrease will be determined by
the PSCW in a soon to be received retail rate order.
-10-
<PAGE>
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
As reported in Part I, Item 1. Business - Other, pages 8 and 9, in the WPSC
Form 10-K for the year ended December 31, 1993, WPSC petitioned for review to
the Brown County Circuit Court limited portions of the Public Service
Commission of Wisconsin ("PSCW") Advance Plan 6 order dated September, 1992
associated with the method to be used to incorporate environmental
externalities in system planning. An intervenor, Wisconsin's Environmental
Decade, Inc., petitioned for review on a related issue to the Circuit Court in
Dane County. The WPS and intervenor petitions were combined and heard by the
Dane County Circuit Court ("Court"). On September 2, 1994, the Court ruled
that while the PSCW has the authority to require monetization of greenhouse
gases for economic as opposed to environmental risk assessment purposes, there
is no substantial evidence in the Advance Plan 6 record to support the
greenhouse gas monetization values chosen by the PSCW. The Court remanded the
decision to the PSCW and required that they establish the factual foundation
for the monetization which it implemented in Advance Plan 6.
Item 6. Exhibits and Reports on Form 8-K.
--------------------------------
(a) Exhibits
--------
The following documents are filed herewith:
(11) Statement Regarding: Computation of Per Share Earnings
(27) Financial Data Schedule
(b) Reports on Form 8-K
-------------------
The Company filed a current report on Form 8-K dated September
1, 1994 reporting that on September 1, 1994 Articles of Share
Exchange implementing the Agreement and Plan of Share Exchange
dated January 17, 1994 between the Company and WPSC were filed
in the office of the Wisconsin Secretary of State.
-11-
<PAGE>
EXHIBIT INDEX
-------------
Exhibit
-------
11 Statement Regarding: Computation of Per Share
Earnings
27 Financial Data Schedule
-12-
<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.
WPS Resources Corporation
____________________________________
(Registrant)
/s/R. H. Knuth
____________________________________
(Signature)
R. H. Knuth
Assistant Vice President Secretary
Date October 31, 1994
_____________________
/s/Ralph G. Baeten
____________________________________
(Signature)
R. G. Baeten
Treasurer
<PAGE>
<TABLE>
Exhibit 11
WISCONSIN PUBLIC SERVICE CORPORATION
------------------------------------
INFORMATION WITH RESPECT TO THE COMPUTATION OF EARNINGS PER SHARE OF COMMON STOCK
---------------------------------------------------------------------------------
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
---------------------- ------------------
(Thousands) (Thousands)
1993 1994 1993 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
SHARES OF COMMON STOCK OUTSTANDING AT
BEGINNING OF PERIOD 23,897 23,897 23,846 23,897
Shares of common stock issued during
this period -
Number
Date of Issue of Shares
------------- ---------
January 27, 1993 10,341 10
February 26, 1993 9,434 10
March 20, 1993 22,142 22
March 24, 1993 8,901 9
---------- --------- --------- ---------
SHARES OF COMMON STOCK OUTSTANDING AT
END OF PERIOD 23,897 23,897 23,897 23,897
========== ========= ========= =========
COMPUTATION OF DAILY WEIGHTED AVERAGE
SHARES OUTSTANDING:
Shares of common stock outstanding at
beginning of period -
Number Number
of of
Days Shares
----- ------
Sept 30, 1993 92 23,896,962 2,198,520
Sept 30, 1993 26 23,846,144 620,000
Sept 30, 1994 92 23,896,962 2,198,521
Sept 30, 1994 273 23,896,962 6,523,871
Shares of common stock outstanding
after shares issued during the period -
Number Number
of of
Days Shares
----- ------
Sept 30, 1993 30 23,856,485 715,695
Sept 30, 1993 22 23,865,919 525,050
Sept 30, 1993 4 23,888,061 95,552
Sept 30, 1993 191 23,896,962 4,564,320
---------- --------- --------- ---------
Total days shares outstanding 2,198,520 2,198,521 6,520,617 6,523,871
========== ========= ========= =========
AVERAGE NUMBER OF SHARES OF COMMON
STOCK OUTSTANDING BASED ON DAILY
WEIGHTED AVERAGE COMPUTATIONS 23,897 23,897 23,885 23,897
========== ========= ========= =========
EARNINGS ON COMMON STOCK, as set forth
in statements of income $15,673 $12,906 $46,727 $41,913
========== ========= ========= =========
EARNINGS PER SHARE OF COMMON STOCK
BASED ON WEIGHTED AVERAGE SHARES
OUTSTANDING $0.66 $0.54 $1.96 $1.75
========== ========= ========= =========
The accompanying notes to financial statements are an integral part of these statements.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
The schedule contains summary financial information extracted from
the Balance Sheet, Income Statement and Capitalization Statement
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> OTHER 9-MOS
<FISCAL-YEAR-END> DEC-31-1994 DEC-31-1994
<PERIOD-END> SEP-30-1994 SEP-30-1994
<BOOK-VALUE> PER-BOOK PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 844291000 0
<OTHER-PROPERTY-AND-INVEST> 66464000 0
<TOTAL-CURRENT-ASSETS> 159086000 0
<TOTAL-DEFERRED-CHARGES> 111903000 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 1181744000 0
<COMMON> 23897000 0
<CAPITAL-SURPLUS-PAID-IN> 145295000 0
<RETAINED-EARNINGS> 275444000<F1> 0
<TOTAL-COMMON-STOCKHOLDERS-EQ> 444636000 0
0 0
51200000 0
<LONG-TERM-DEBT-NET> 312168000 0
<SHORT-TERM-NOTES> 10000000 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 363740000 0
<TOT-CAPITALIZATION-AND-LIAB> 1181744000 0
<GROSS-OPERATING-REVENUE> 0 504263000
<INCOME-TAX-EXPENSE> 0 23302000
<OTHER-OPERATING-EXPENSES> 0 421726000
<TOTAL-OPERATING-EXPENSES> 0 445028000
<OPERATING-INCOME-LOSS> 0 59235000
<OTHER-INCOME-NET> 0 3852000
<INCOME-BEFORE-INTEREST-EXPEN> 0 63087000
<TOTAL-INTEREST-EXPENSE> 0 18876000
<NET-INCOME> 0 44211000
0 2333000
<EARNINGS-AVAILABLE-FOR-COMM> 0 41878000
<COMMON-STOCK-DIVIDENDS> 0 32141000
<TOTAL-INTEREST-ON-BONDS> 0 18463000
<CASH-FLOW-OPERATIONS> 0 111273000
<EPS-PRIMARY> 0 1.75
<EPS-DILUTED> 0 1.75
<FN>
<F1>Gross retained earnings less ESOP loan gauruntee
</FN>
</TABLE>
