SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PERSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY
PERIOD ENDED June 30, 1994
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 1-3553
SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
Indiana 35-0672570
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
20 N. W. Fourth Street
Evansville, Indiana 47741-0001
(Address of principal executive offices)
(812) 465-5300
(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 such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes [X] No [ ]
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the close of the
period covered by this report.
Common Stock, without par value - 15,754,826 Shares
Outstanding at June 30, 1994
<PAGE>
<TABLE> SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1994 1993 1994 1993
(in thousands except per share data)
<S> <C> <C> <C> <C>
OPERATING REVENUES
Electric $60,484 $61,087 $129,126 $123,897
Gas 13,774 15,036 49,855 45,808
Total operating revenues 74,258 76,123 178,981 169,705
OPERATING EXPENSES
Operation:
Fuel for electric generation 19,652 19,671 44,324 37,914
Purchased electric energy 2,100 2,650 3,385 6,616
Cost of gas sold 6,366 8,128 31,549 29,077
Other 11,698 9,806 22,322 18,761
Total operation 39,816 40,255 101,580 92,368
Maintenance 8,832 6,787 14,070 12,708
Depreciation and amortization 9,435 9,346 18,871 18,692
Federal and state income taxes 3,028 3,832 10,300 10,045
Property and other taxes 2,831 3,237 6,626 7,087
Total operating expenses 63,942 63,457 151,447 140,900
OPERATING INCOME 10,316 12,666 27,534 28,805
Other Income:
Allowance for other funds
used during construction 1,246 654 2,394 909
Interest 145 556 332 688
Other, net 758 395 1,346 1,117
_______ _______ ________ ________
2,149 1,605 4,072 2,714
INCOME BEFORE INTEREST CHARGES 12,465 14,271 31,606 31,519
Interest Charges:
Interest on long-term debt 4,666 5,007 9,289 9,394
Amortization of premium,
discount and expense on debt 185 259 360 354
Other interest 222 103 461 280
Allowance for borrowed funds
used during construction (615) (292) (1,171) (411)
_______ _______ ________ ________
4,458 5,077 8,939 9,617
NET INCOME 8,007 9,194 22,667 21,902
Preferred Stock Dividends 276 276 552 552
NET INCOME APPLICABLE
TO COMMON STOCK $ 7,731 $ 8,918 $ 22,115 $ 21,350
AVERAGE COMMON SHARES OUTSTANDING 15,755 15,755 15,755 15,755
EARNINGS PER SHARE OF COMMON STOCK $0.49 $0.57 $1.40 $1.36
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
</TABLE>
<PAGE>
<TABLE> SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
Six Months Ended
June 30,
1994 1993
(in thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 22,667 $ 21,902
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 18,871 18,692
Deferred income taxes and investment tax
credits, net 1,487 887
Allowance for other funds used
during construction (2,394) (909)
Change in assets and liabilities:
Receivables, net 3,586 2,704
Inventories 2,862 13,223
Coal contract settlement 2,833 -
Accounts payable (6,426) (13,771)
Accrued taxes (631) 2,278
Refunds from gas suppliers - 1,585
Refunds to customers 2,657 179
Accrued coal liability 6,421 3,053
Other assets and liabilities 3,646 461
Net cash provided by operating activities 55,579 50,284
CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (net of allowance for
other funds used during construction) (42,230) (23,296)
Demand side management program expenditures (2,648) (2,380)
Purchases of investments (4,507) (4,044)
Sales of investments 3,103 4,538
Investments in partnerships (3,470) (2,571)
Change in nonutility property (770) (559)
Other 515 378
Net cash used in investing activities (50,007) (27,934)
CASH FLOWS FROM FINANCING ACTIVITIES:
First mortgage bonds - 155,000
Dividends paid (13,500) (13,195)
Reduction in preferred stock and long-term debt - (104,500)
Change in environmental improvement funds
held by Trustee 9,279 (35,175)
Change in notes payable 6,478 (5,188)
Other - (5,616)
Net cash provided by (used in)
financing activities 2,257 (8,674)
NET INCREASE IN CASH
AND CASH EQUIVALENTS 7,829 13,676
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 14,732 3,556
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 22,561 $ 17,232
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
</TABLE>
<PAGE>
<TABLE> SOUTHERN INDIANA GAS AND ELECTRIC
CONSOLIDATED BALANCE SHEETS
<CAPTION>
June 30, December 31,
1994 1993
(in thousands)
<S> <C> <C>
ASSETS
Utility Plant, at original cost:
Electric $885,429 $879,476
Gas 109,260 107,864
________ ________
994,689 987,340
Less - Accumulated provision for
depreciation 441,673 424,086
________ ________
553,016 563,254
Construction work in progress 108,092 72,615
Net Utility Plant 661,108 635,869
Other Investments and Property:
Investments in leveraged leases 34,578 34,924
Investments in partnerships 24,037 25,023
Environmental improvement funds held
by Trustee 13,334 22,613
Nonutility property and other 8,767 7,997
________ ________
80,716 90,557
Current Assets:
Cash and cash equivalents 7,391 5,983
Restricted cash 15,170 8,749
Temporary investments, at cost which
approximates market 7,944 6,540
Receivables,less allowance of $325 and
$136, respectively 24,955 28,541
Inventories 35,328 38,190
Other current assets 1,551 3,048
________ ________
92,339 91,051
Deferred Charges:
Coal contract settlement 10,462 13,295
Unamortized premium on reacquired debt 6,861 7,100
Postretirement benefits obligation
other than pensions 6,349 4,125
Demand side management program 10,059 7,411
Other deferred charges 12,403 11,433
________ ________
46,134 43,363
$880,297 $860,841
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
</TABLE>
<PAGE>
<TABLE> SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
CONSOLIDATED BALANCE SHEETS
<CAPTION>
June 30, December 31,
1994 1993
(in thousands)
<S> <C> <C>
SHAREHOLDERS' EQUITY AND LIABILITIES
Common Stock $102,799 $102,799
Retained Earnings 213,616 204,449
________ ________
316,415 307,248
Less Treasury Stock, at cost 24,540 24,540
Common Shareholders' Equity 291,875 282,708
Cumulative Nonredeemable Preferred Stock 11,090 11,090
Cumulative Redeemable Preferred Stock 7,500 7,500
Cumulative Special Preferred Stock 1,015 1,015
Long-Term Debt, net of current maturities 261,595 261,100
Long-Term Partnership Obligations,
net of current maturities 9,507 12,881
Total capitalization, excluding bonds
subject to tender (see Consolidated
Statements of Capitalization) 582,582 576,294
Current Liabilities:
Current Portion of Adjustable Rate Bonds
Subject to Tender 41,475 41,475
Current Maturities of Long-Term Debt,
Interim Financing and Long-Term
Partnership Obligations:
Maturing long-term debt 715 763
Notes payable 17,100 11,040
Partnership obligations 3,374 3,849
Total current maturities of long-term
debt, interim financing,and long-term
partnership obligations 21,189 15,652
Other Current Liabilities:
Accounts payable 27,514 33,939
Dividends payable 126 135
Accrued taxes 7,310 7,941
Accrued interest 4,579 4,517
Refunds to customers 6,055 3,398
Acrued coal liability 15,170 8,749
Other accrued liabilities 13,446 10,124
Total other current liabilities 74,200 68,803
Total current liabilities 136,864 125,930
Deferred Credits and Other:
Accumulated deferred income taxes 120,968 117,267
Accumulated deferred investment tax credits,
being amortized over lives of property 25,617 26,549
Regulatory liability 5,915 7,197
Postretirement benefits obligation other
than pensions 6,349 4,125
Other 2,002 3,479
________ ________
160,851 158,617
$880,297 $860,841
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.</TABLE>
<PAGE>
<TABLE> SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
CONSOLIDATED STATEMENTS OF CAPITALIZATION
<CAPTION>
June 30, December 31,
1994 1993
(in thousands)
<S> <C> <C>
COMMON SHAREHOLDERS' EQUITY:
Common Stock, without par value, authorized
50,000,000 shares, issued 16,865,003 shares $102,799 $102,799
Retained Earnings, $2,209,642 restricted as
to payment of cash dividends on common stock 213,616 204,449
________ ________
316,415 307,248
Less Treasury Stock, at cost, 1,110,177 shares 24,540 24,540
________ ________
291,875 282,708
PREFERRED STOCK:
Cumulative, $100 par value, authorized
800,000 shares issuable, in series
Nonredeemable
4.8% Series, outstanding 85,895 shares,
callable at $110 per share 8,590 8,590
4.75% Series, outstanding 25,000 shares,
callable at $101 per share 2,500 2,500
________ ________
11,090 11,090
Redeemable
6.50% Series, outstanding 75,000 shares
redeemable at $100 per share
December 1, 2002 7,500 7,500
SPECIAL PREFERRED STOCK:
Cumulative, no par value, authorized 5,000,000
shares, issuable in series: 8 1/2% series,
outstanding 10,150shares, redeemable
at $100 per share 1,015 1,015
LONG-TERM DEBT, NET OF CURRENT MATURITIES:
First mortgage bonds 254,740 254,740
Notes payable 7,728 7,263
Unamortized debt premium and discount, net (873) (903)
________ ________
261,595 261,100
LONG-TERM PARTNERSHIP OBLIGATIONS, NET OF
CURRENT MATURITIES 9,507 12,881
CURRENT PORTION OF ADJUSTABLE RATE POLLUTION CONTROL
BONDS SUBJECT TO TENDER, DUE:
2015, Series A, presently 5.75% 9,975 9,975
2015, Series B, presently 3.50% 31,500 31,500
________ ________
41,475 41,475
Total capitalization, including bonds
subject to tender $624,057 $617,769
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.</TABLE>
<PAGE>
<TABLE> SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
<CAPTION>
for the six months ended
June 30,
1994 1993
(in thousands)
<S> <C> <C>
Balance Beginning of Period $204,449 $191,255
Net Income 22,667 21,902
________ ________
227,116 213,157
Preferred stock dividends 543 552
Common stock dividends ($0.825 per share
in 1994 and $0.805 per share in 1993) 12,957 12,643
________ ________
13,500 13,195
Balance End of Period (See Consolidated
Statements of Capitalization for restriction) $213,616 $199,962
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
</TABLE>
<PAGE>
SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. GENERAL
It is suggested that these consolidated financial statements be read in
conjunction with the consolidated financial statements and the notes
thereto included in the Company's 1993 Annual Report to Shareholders.
The 1994 consolidated statements are on the basis of interim figures
and are subject to audit and adjustments. These financial statements
include the accounts of Southern Indiana Gas and Electric Company and its
wholly-owned subsidiaries, Southern Indiana Properties, Inc., Lincoln
Natural Gas Company, Inc., Energy Systems Group, Inc. (Energy) and Southern
Indiana Minerals, Inc. (SIMI), and include all adjustments which are in the
opinion of management, necessary for a fair statement of the financial
position and results of operations for the six months ended June 30, 1994.
Energy and SIMI were incorporated during the second quarter of 1994.
Because of seasonal and other factors, the earnings for the six months
ending June 30, 1994 should not be taken as an indication for all or any
part of the balance of 1994.
2. UTILITY PLANT
Utility plant is stated at the historical original cost of
construction. Such cost includes payroll-related costs such as taxes,
pensions and other fringe benefits, general and administrative costs, and
an allowance for the cost of funds used during construction (AFUDC), which
represents the estimated debt and equity cost of funds capitalized as a
cost of construction. While capitalized AFUDC does not represent a current
source of cash, it does represent a basis for future cash revenues through
depreciation and return allowances. The weighted average AFUDC rates
(before income taxes) used by the Company for the six months ending June
30, 1994 and 1993 were 9.6% and 10.9%, respectively.
3. CASH FLOW INFORMATION
For the purposes of the Consolidated Balance Sheets and Consolidated
Statements of Cash Flows, the Company considers all highly liquid debt
instruments purchased with an original maturity of three months or less to
be cash equivalents.
The Company, for the six months ended June 30, 1994 and 1993 paid
interest (net of amounts capitalized) of $8,518,000 and $9,905,000,
respectively, and income taxes of $7,933,000 and $6,767,000, respectively.
Additionally the Company is involved in several partnerships which are
partially financed by partnership obligations amounting to $12,881,000 and
$16,730,000 at June 30, 1994 and December 31, 1993, respectively.
4. LONG-TERM DEBT
On May 1, 1994, the interest rate on $31,500,000 of Adjustable Rate
Pollution control bonds was changed from 2.70% to 3.50%. The new interest
rate, 3.50% will be fixed through April 30, 1995. For financial statement
presentation the $31,500,000 of Adjustable Rate Pollution Control bonds are
shown as a current liability.
On July 1, 1994, the interest rate on $9,975,000 of Adjustable Rate
Pollution Control Bonds was changed from 5.75% to 4.60%. The new interest
rate, 4.60%, will be fixed through June 30, 1997. For financial statement
presentation the $9,975,000 of Adjustable Rate Pollution Control Bonds are
shown as a current liability.
5. ACQUISITION OF LINCOLN
On June 30, 1994, the Company completed its acquisition of Lincoln
Natural Gas Company, Inc.(Lincoln), a small gas distribution company of
approximately 1,300 customers contiguous to the eastern boundary of the
Company's gas service territory. The Company issued 49,399 of common stock
for all the common stock of Lincoln. This transaction was accounted for as
a pooling of interests; therefore, prior financial statements have been
restated to reflect this merger.
Revenues and net income included in the Company's Consolidated
Statements of Income are as follows:
<TABLE>
<CAPTION>
3 months 3 months 6 months 6 months
ended ended ended ended
June 30, June 30, June 30, June 30,
1994 1993 1994 1993
(in thousands)
<S> <C> <C> <C> <C>
Net sales:
Sigeco $74,120 $75,941 $178,412 $169,177
Lincoln 138 182 569 528
_______ _______ ________ ________
$74,258 $76,123 $178,981 $169,705
Net income:
Sigeco $ 7,756 $ 8,912 $ 22,152 $ 21,370
Lincoln (25) 6 (37) (20)
_______ _______ ________ ________
$ 7,731 $ 8,918 $ 22,115 $ 21,350
</TABLE>
<PAGE>
SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
OPERATING REVENUES
Electric revenues declined 1% during the second quarter
compared to the same period in 1993. The primary impact on
electric revenues was the decline in average per unit
revenues from sales to nonsystem customers compared to the
second quarter of 1993. Although sales to system customers
rose approximately 3% during the current period, nonsystem
sales declined 26% due to fewer sales to Alcoa Generating
Corporation (AGC) resulting from the shutdown of a potline
at Alcoa's Warrick Operations plant in July 1993.
(Electricity for the five potlines remaining in service is
supplied by AGC generation.)
Increased sales to system and nonsystem customers, up 3%
and 13%, respectively, was the primary reason for a $5.2
million (4%) rise in electric revenues for the six months
ending June 30, 1994. Cooler temperatures during the first
quarter, compared to a year ago, led to the higher system
sales. Despite a decline in sales to AGC resulting from the
shutdown of the potline last July, nonsystem sales were
greater due primarily to the requirements of one
nonassociated utility during the first quarter of 1994.
Recovery of slightly higher fuel and purchased power costs
during the current six month period led to a 1% increase in
related electric revenues. Changes in the cost of fuel for
electric generation and purchased power are passed on to
customers through commission approved fuel cost adjustments.
The impact of lower average rates charged on sales to
nonassociated utilities partially offset the higher electric
revenues previously discussed.
The changes in electric revenue are shown below:
<TABLE>
<CAPTION>
Revenue (Decrease) Increase From
Corresponding Period in 1993
Three Months Six Months
Ended 6-30-94 Ended 6-30-94
<S> <C> <C>
Change in sales volume $ (100) $ 4,900
Fuel and purchased power recovery - 1,600
Change in average rates on sales to
nonassociated utilities (600) (1,650)
Other 97 379
_______ ______
$ (603) $ 5,229
Increase in system sales (MWh) 30,946 67,457
(Decrease) increase in nonsystem
sales (MWh) (76,757) 77,833
</TABLE>
Gas revenue was down $1.3 million (8%) during the
current quarter compared to the second quarter of 1993
chiefly due to a 15% decrease in gas sales. Although total
throughput was relatively unchanged, sales to commercial and
industrial customers declined when several large customers
transported gas supplies purchased from sources other than
the Company. Also contributing to the lower gas revenues
during the period was the recovery of lower average unit
costs of gas sold, down 9%. Changes in the cost of gas sold
are passed on to customers through commission approved gas
cost adjustments. The first step of the Company's two-step
retail base gas rate adjustment, approximately 4% overall on
an annual basis, was effective August 1, 1993. This base
rate increase and a change in sales mix partially offset the
revenue decreases related to fewer sales and recovery of
lower gas costs. The second step of the rate adjustment,
approximately 4% overall, was effective August 1, 1994.
During the six months ended June 30, 1994, gas revenue
was $4 million (9%) greater than the comparable period in
1993. Gas sales declined approximately 2% due to the
increased transportation
activity of certain large customers previously discussed.
The recovery of higher average unit costs of gas sold, up 8%
during the six month period, accounted for much of the
overall increase in revenues. The higher unit gas costs
reflected increased spot market prices during the colder
1994 winter heating season resulting from the general
tightening of the balance between available supply and
demand after several years of excess supply. Also
contributing to the higher revenue was the impact of the
Company's base rate adjustment effective August 1, 1993 and
a change in sales mix.
The changes in gas revenues are shown below:
<TABLE>
<CAPTION>
Revenue (Decrease) Increase From
Corresponding Period in 1993
Three Months Six Months
Ended 6-30-94 Ended 6-30-94
(in thousands)
<S> <C> <C>
Change in sales volume $(2,200) $(1,200)
Cost of gas recovery (900) 2,700
Change in rates and sales mix 1,800 2,300
Other 38 247
_______ _______
$(1,262) $ 4,047
(Decrease) increase in total
throughput (MDth) (85) 44
</TABLE>
OPERATING EXPENSES
Fuel for electric generation was unchanged during the
second quarter compared to the same period in 1993, but rose
$6.4 million (17%) for the six month period ending June 30,
1994 due primarily to the increased sales and to slightly
higher per unit fuel costs. During the first three months
of 1993, the Company purchased substantially greater amounts
of electric energy from other utilities because one of the
Company's generating units was undergoing a routine
maintenance outage, a second unit was undergoing a large
capital improvement project and because market prices were
favorable, leading to a relatively significant decline of
49% in expenditures for such purchases during the first six
months of 1994. Due to fewer unit sales and the lower unit
costs, cost of gas sold was down 22% during the second
quarter of 1994. Cost of gas sold was $2.5 million greater
during the six month period in 1994 due to the higher
average cost of gas delivered.
Other operation expenses, up 19% for both the quarter
and six months ended June 30, 1994, reflected additional
production plant operating expenses related to increased
generation, increased legal and consulting costs related to
the Company's ongoing efforts to renegotiate the contract of
its major coal supplier, greater employee-related benefit
costs, and increases in various other operation expenses.
Maintenance expenditures rose 30% and 11%, respectively,
for the quarter and six months ended June 30, 1994 primarily
due to the Company performing a scheduled major turbine
generator maintenance overhaul on Unit 2 at the Culley
Generating Station which was coordinated with the
construction of the Company's new sulfur dioxide "scrubber"
at the generating station. No comparable major maintenance
projects were performed during the first six months of 1993.
OTHER INCOME AND INTEREST CHARGES
Other income was greater during the reporting periods
due to increased allowance for equity funds used during
construction, primarily from the construction of the
Company's new scrubber. (See "Clean Air Act" in Item 7. of
Management's Discussion and Analysis of Results of
Operations and Financial Condition in the Company's 1993
Form 10-K report for further discussion.) Interest income
declined during the three month and six month periods of
1994 due to fewer funds available for short term investment
purposes. Offsetting the decreased interest income in both
periods was greater income from the Company's nonregulated
operations.
Lower interest on long term debt during the second
quarter of 1994 compared to the same period in 1993 and
increased allowance for borrowed funds used during
construction related to construction of the new scrubber
were the primary reasons for the decline in interest charges
during both reporting periods. (See "Liquidity And Capital
Resources" in Item 7. of Management's Discussion and
Analysis of Results of Operations and Financial Condition in
the Company's 1993 Form 10-K report for further discussion.)
EARNINGS
Earnings per share of common stock for the second
quarter declined eight cents (14%) compared to the same
period in 1993. The $4 million increase in nonfuel-related
operating expenses during the period was the major reason
for the decline in earnings. No major maintenance project
comparable to the maintenance outage on Unit 2 of the Culley
Generating Station was performed during the second quarter
of 1993. Partially offsetting the decline in earnings was
the greater allowance for funds used during construction
related to the new scrubber project.
For the first six months of 1994, earnings per share
were $1.40 compared to $1.36 for the same period in 1993.
Despite greater gas and electric sales due to cooler weather
during the first quarter of 1994 and improved gas and
electric margins resulting from recent rate adjustments,
operating income declined slightly due to increased nonfuel
operating expenses, primarily the turbine generator overhaul
at Culley Generating Station. Contributing to the increased
earnings was the higher allowance for funds used during
construction.
LIQUIDITY AND CAPITAL RESOURCES
The Company's demand for capital is primarily related to
its construction of utility plant and equipment necessary to
meet customers' electric and gas energy needs, as well as
environmental compliance requirements. Expenditures for the
Company's demand side management programs (see following
discussion) will continue to increase and will become a
significant use of capital. Construction expenditures
(excluding allowance for other funds used during
construction) and demand side management program
expenditures incurred during the quarter totaled $26.6
million of which 41% were funded with internally generated
cash. For the six month period, these expenditures totaled
$44.9 million and were 60% funded with internally generated
cash. The Company anticipates continued financial stability
and achievement of its financial objectives during the
remainder of 1994 and is presently faced with no liquidity
problems.
The Company estimates that construction expenditures for
the five year period 1994-1998 will total approximately $270
million. Included in this amount is about $44 million to
comply by 1995 with the Clean Air Act Amendments of 1990.
Also included as part of the 1994-1998 construction program
is approximately $49 million of expenditures to develop and
implement demand side management programs. (See "Clean Air
Act" and "Demand Side Management" in Item 7. of Management's
Discussion and Analysis of Results of Operations and
Financial Condition in the Company's 1993 Form 10-K report
for further discussion of these issues.) Although the
Company expects the majority of the construction
requirements to be provided by internally generated funds,
external financing requirements of about $50 million are
anticipated for redemption of debt securities and other
long-term obligations.
<PAGE>
PART TWO - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
The Company was not required to file a report on
Form 8-K during the second quarter of 1994.
SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned
thereunto duly authorized.
SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
(Registrant)
S. M. Kerney
S. M. Kerney
Controller
Date: August 12, 1994
<PAGE>
SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
INDEX
Part I - Financial Information:
Consolidated Statements of Income for the
Three Months and Six Months ended
June 30, 1994 and 1993
Consolidated Statements of Cash Flows for the
Six Months ended June 30, 1994 and 1993
Consolidated Balance Sheets at June 30, 1994
and December 31, 1993
Consolidated Statements of Capitalization at
June 30,1994 and December 31, 1993
Consolidated Statements of Retained Earnings
for the Six Months ended June 30, 1994 and 1993
Notes to Consolidated Financial Statements
Management's Discussion and Analysis of
Financial Condition and Results of
Operations
Part II - Other Information
Signature
