FORM U-3A-2
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
Statement by Holding Company Claiming Exemption
Under Rule U-3A-2
from the Provisions of the Public Utility Holding Company
Act of 1935
To be filed Annually Prior to March 1
SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
hereby files with the Securities and Exchange Commission
pursuant to Rule 2 its statement claiming exemption as a
holding company from the provisions of the Public Utility
Holding Company Act of 1935, and submits the following
information:
1. Southern Indiana Gas and Electric Company ("SIGECO")
is a combination gas and electric utility and wholly-owned
subsidiary of SIGCORP, Inc. ("SIGCORP"), an investor owned
holding company. SIGCORP was formed in 1995 under the laws
of the State of Indiana by SIGECO. On January 1, 1996,
SIGCORP became the parent of SIGECO, pursuant to a corporate
reorganization plan and also became the parent of nonutility
subsidiaries formerly owned by SIGECO. SIGECO serves
customers in 10 southwestern Indiana counties. Nonutility
business activities are conducted under separate
subsidiaries.
SIGECO is an operating public utility incorporated on
June 10, 1912 under the laws of the State of Indiana. The
Company is located in Evansville, Indiana and is engaged in
the generation, transmission, distribution and sale of
electricity and the purchase, transportation, distribution
and sale of natural gas in southwestern Indiana. SIGECO owns
approximately 33% of the outstanding common stock of
Community Natural Gas Company, Inc. ("Community"), an
Indiana corporation, which is a small Indiana gas
distribution company with offices in Mt. Carmel, Illinois.
Community conducts its business in southwestern Indiana.
2. The principal generating facilities of SIGECO include
the Culley Station with 406,000 kW of capacity and Warrick
Unit No. 4 with 135,000 kW of capacity, both located in
Warrick County near Yankeetown, Indiana; and the A. B. Brown
Station with 500,000 kW of capacity, located in Posey County
about eight miles east of Mt. Vernon, Indiana. These
facilities include six coal-fired generating units and have
a combined generating capacity of 1,041,000 kW.
SIGECO's Broadway Gas Turbine Units, with a capacity of
115,000 kW, are located in Evansville, Vanderburgh County,
Indiana. This generating facility is equipped to burn oil
and/or natural gas. These units generally are used only for
reserve, peaking or emergency purposes due to the higher
unit cost per kilowatt hour of generation when using oil or
gas as fuel.
SIGECO's Brown Gas Turbine I, with capacity of 80,000
kW, is located at the A. B. Brown Station. The unit is
fueled by natural gas, although fuel oil can also be used if
gas is unavailable. The main function of the gas turbine is
to generate adequate power during times of peak demand.
However, it is also used to assist in maintaining voltage
support on the west end of the system, and can be used to
"black start" the Brown plant if a catastrophe should cause
a partial or total system blackout.
SIGECO also owns two gas fired turbine generating units
with a capacity of 20,000 kW, which are used for peaking and
emergency purposes only. These units are known as the
Northeast Gas Turbine Units and are located northeast of
Evansville, in Vanderburgh County, Indiana.
SIGECO's transmission system consists of 823 circuit
miles of 138,000 and 69,000 volt lines. The transmission
system also includes 26 substations with an installed
capacity of 3,897,700 kilovolt amperes. The electric
distribution system includes 3,188 pole miles of lower
voltage overhead lines and 211 trench miles of conduit
containing 1,271 miles of underground distribution cables.
The distribution system also includes 96 distribution
substations with an installed capacity of 2,001,384 kilovolt
amperes and 48,651 distribution transformers with an
installed capacity of 2,159,957 kilovolt amperes.
SIGECO owns and operates three underground gas storage
fields with an estimated ready delivery from storage
capability of 3.8 billion cubic feet of gas. The Oliver
Field, in service since 1954, is located in Posey County,
Indiana, about 13 miles west of Evansville; the Midway
Field, in service since 1966, is located in Spencer County,
Indiana, about 20 miles east of Evansville near Richland,
Indiana; and, the Monroe City Field, in service since 1958,
is located 10 miles east of Vincennes, Indiana.
SIGECO's gas transmission system includes 131 miles of
transmission mains, and the gas distribution system includes
2,751 miles of distribution mains.
The only utility property SIGECO owns outside of Indiana
is approximately eight miles of 138,000 volt electric
transmission line which is located in Kentucky and which
interconnects with Louisville Gas and Electric Company's
transmission system at Cloverport, Kentucky.
Community is a small gas utility that has several
noncontiguous service territories in southwestern Indiana.
Much of its service territory is adjacent to or near the gas
service territory of SIGECO. Community has 6,733 natural
gas customers consisting of residential, commercial,
industrial and public authority classes of service. Its gas
distribution system includes approximately 470 miles of
distribution mains. Community has no underground gas
storage facilities.
3. For the year ended December 31, 1998, SIGECO's retail
and wholesale electric sales totaled 6,859,182,000 kWh,
while its retail and transported gas sales totaled
28,964,771 Dth. SIGECO has no electric or gas retail sales
outside the State of Indiana. For this same period, SIGECO
had wholesale electric sales of 1,300,625,000 kWh to
utilities and power marketers located outside the state of
Indiana. SIGECO had no wholesale natural gas sales outside
of Indiana, or at the state line. During 1998, SIGECO
purchased 484,828,000 kWh of power from utilities and power
marketers located outside the state of Indiana. For the
year ended December 31, 1998, SIGECO's retail natural gas
sales totaled 11,615,735 Dth and 17,349,036 Dth of natural
gas was transported for end users for a total natural gas
sold and transported of 28,964,771 Dth, all of which was
distributed within the State of Indiana. For this same
period, SIGECO had no gas wholesale sales. During 1998,
SIGECO purchased for its system supply 12,949,575 Dth of
natural gas, 100% of its requirements, from 35 natural gas
suppliers.
For the year ended December 31, 1998, Community's retail
gas sales totaled 822,239 Dth, and no natural gas was
transported for end users resulting in a total gas sold and
transported of 822,239 Dth, all of which was distributed
within the State of Indiana. For this same period,
Community had no wholesale natural gas sales. During 1998,
Community received for its system supply 844,564 Dth of
natural gas from its four traditional pipeline suppliers,
Texas Gas Transmission Corporation, Texas Eastern
Corporation, ANR Pipeline and Midwestern Gas. The gas
purchased for its system was purchased through a broker.
4. SIGECO does not hold any interest in an exempt
wholesale generator or foreign utility company.
Exhibit A: Consolidated statement of income and surplus
of SIGECO for the year ended December 31, 1998, together
with a consolidating balance sheet of SIGECO as of the close
of such calendar year.
Exhibit B: Financial data schedule.
The above named Company has caused this statement to be
duly executed on its behalf by its authorized officer on
this 27th day of February, 1999.
SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
By T. L. Burke
T. L. Burke
Treasurer
ATTEST:
L. K. Tiemann
L. K. Tiemann
Assistant Secretary
The name, title and address of the officer to whom notice
and correspondence concerning this statement should be
addressed is:
T. L. Burke
Treasurer
Southern Indiana Gas and Electric Company
20 N.W. Fourth Street
Evansville, Indiana 47741-0001
Exhibit A
<PAGE> 1 of 3
<TABLE>
<CAPTION>
SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
Consolidating Trial Balance
For Twelve Months Ending December 31, 1998
SIGECO
<S> <C>
ASSETS
Utility Plant at cost:
Electric 1,141,870
Gas 150,136
Accumulated Depreciation (593,901)
Cwip 24,306
Investment in Subsidiaries
Investments in leveraged leases
Investments in partnerships
Funds held by Trustee 4,300
Nonutility property & other 1,577
Cash and cash equivalents 512
Cash - Restricted
Temporary investments
Receivables, net 49,942
Notes receivable from assoc. co. 6
Fuel (coal and oil) 15,701
Materials and supplies 15,063
Allowance Inventory 5,133
Gas in underground storage 10,762
Other current assets 9,546
Unamortized def. return on ABB#2
Unamortized prem. on reacq. debt 4,705
Post-retire. ben. oblig. oth. than pensions 2,764
Accum Deferred Income Taxes
Def Tax Asset-FASB109
Other deferred charges 39,490
881,912
</TABLE>
<PAGE> 2 of 3
Exhibit A
<TABLE>
<CAPTION>
SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
Consolidating Trial Balance
For Twelve Months Ending December 31, 1998
SIGECO
<S> <C>
SHAREHOLDERS' EQUITY AND LIABILITIES
Common Stock (78,258)
Additional paid-in capital
Retained Earnings (241,924)
Treasury stock
Cumulative preferred stock (18,590)
Cumulative special preferred stock (808)
Long-term debt less current mat. (169,762)
Long-term Partnership Obligations
Current por. of adj. rate p. c. bonds (53,700)
Notes payable (50,759)
Maturing long-term debt (45,000)
Maturing Partnership Obligations
Accounts payable (28,127)
Notes payable to Assoc. Company (14,930)
Dividends payable (120)
Accrued taxes (4,772)
Accrued interest (4,676)
Refunds to customers (2,156)
Other accrued liabilities (18,544)
Accumulated deferred income taxes (118,147)
Accumulated deferred ITC (18,801)
Regulatory liability - FAS 109
Post-retire. ben. oblig. oth. than pensions (11,337)
Other (1,501)
(881,912)
</TABLE>
<PAGE> 3 of 3
Exhibit A
<TABLE>
<CAPTION>
SOUTHERN INDIANA GAS AND ELECTRIC COMPANY
Consolidating Trial Balance
For Twelve Months Ending December 31, 1998
SIGECO
<S> <C>
INCOME STATEMENT
Operating Revenues
Electric (297,865)
Gas (66,801)
Energy services
Other
Fuel for electric generation 68,849
Purchased electric energy 20,762
Cost of gas sold 39,627
Cost of energy services revenues
Cost of other revenues
Other operation expenses 56,001
Maintenance 37,398
Depreciation and amortization 42,401
Federal and state inc. tax. 25,035
Property and other taxes 12,591
AFUDC (other) 73
Interest income (340)
Other, net (489)
Interest expense on long-term debt 17,376
Amort. of prem., disc. & exp on debt 690
Other interest expense 2,615
AFUDC (borrowed) (1,465)
Preferred dividend requirement 1,095
NET INCOME (42,447)
</TABLE>
<PAGE>
EXHIBIT B
Item No. Caption Heading (in thousands)
1. Total Assets $ 881,912
2. Total Operating Revenues $ 364,666
3. Net Income $ 42,447
