SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR SECTION
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 1996 Commission File No. 0-505
-------------- -----
BANGOR HYDRO-ELECTRIC COMPANY
-----------------------------------------------------
(Exact Name of Registrant as specified in its Charter
Maine 01-0024370
- ------------------------------- --------------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
33 State Street, Bangor, Maine 04401
- ---------------------------------------- ----------
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code 207-945-5621
------------
None
- -----------------------------------------------------------------------
Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report
Outstanding Common Stock, $5 Par Value - 7,315,099 Shares
March 31, 1996
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
----- -----
FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 1996
PART I - FINANCIAL INFORMATION
PAGE
------
Cover Page 1
Index 2
Consolidated Statements of Income 3
Management's Discussion and Analysis
of Financial Statements 4
Consolidated Balance Sheets - March 31, 1996 and
December 31, 1995 11
Consolidated Statements of Capitalization 13
Consolidated Statements of Cash Flows 14
Consolidated Statements of Retained Earnings 15
Notes to the Consolidated Financial Statements 16
PART II - OTHER INFORMATION 22
Item 6 - Exhibits and Reports on Form 8-K 23
Signature Page 24
BANGOR HYDRO-ELECTRIC COMPANY
CONSOLIDATED STATEMENTS OF INCOME
000's Omitted Except Per Share Amounts
(Unaudited)
3 Months Ended
March 31 March 31,
1996 1995
--------- ----------
ELECTRIC OPERATING REVENUES $ 49,266 $ 48,263
--------- ----------
OPERATING EXPENSES:
Fuel for generation $ 15,930 $ 24,958
Purchased power 3,928 3,960
Other operation and maintenance 7,737 7,234
Depreciation and amortization 1,960 1,549
Amortization of Seabrook Nuclear Unit 425 425
Amortization of contract buyouts 5,190 972
Taxes -
Property and payroll 1,290 1,217
State income 257 300
Federal income 2,095 1,645
--------- ----------
$ 38,812 $ 42,260
--------- ----------
OPERATING INCOME $ 10,454 $ 6,003
--------- ----------
OTHER INCOME AND (DEDUCTIONS):
Allowance for equity funds used
during construction $ 99 $ 219
Other, net of applicable income taxes 298 84
--------- ---------
$ 397 $ 303
--------- ---------
INCOME BEFORE INTEREST EXPENSE $ 10,851 $ 6,306
--------- ---------
INTEREST EXPENSE:
Long-term debt $ 6,057 $ 2,642
Other 911 581
Allowance for borrowed funds used
during construction (212) (210)
--------- ---------
$ 6,756 $ 3,013
--------- ---------
NET INCOME $ 4,095 $ 3,293
DIVIDENDS ON PREFERRED STOCK 393 413
--------- ---------
EARNINGS APPLICABLE TO COMMON STOCK $ 3,702 $ 2,880
========= =========
WEIGHTED AVERAGE NUMBER OF SHARES 7,312 7,220
========= =========
EARNINGS PER COMMON SHARE, based on
the weighted average number of
shares outstanding during the period $ .51 $ .40
========= =========
DIVIDENDS DECLARED PER COMMON SHARE $ .18 $ .33
========= =========
See notes to the consolidated financial statements.
BANGOR HYDRO-ELECTRIC COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
OPERATIONS AND FINANCIAL CONDITION
Management's Discussion and Analysis of the Results of Operations and
Financial Condition contained in Bangor Hydro-Electric Company's (the
"Company") Annual Report on Form 10-K for the year ended December 31, 1995
("1995 Form 10-K") should be read in conjunction with the comments below.
EARNINGS
The quarter ended March 31, 1996 resulted in earnings of $.51 per common
share, compared to earnings of $.40 per common share for the quarter ended
March 31, 1995. The improvement in earnings were due in part to the return to
operation of the Maine Yankee Nuclear Plant (Maine Yankee) in late January of
1996 (See more complete discussion of the Maine Yankee outage in the 1995
Form 10-K). The plant was not operational during most of the first quarter of
1995, and the Company incurred approximately $2.2 million in incremental
replacement power costs. This compares to approximately $934,000 in
incremental replacement power costs in the first quarter of 1996. Also
positively affecting earnings in the first quarter of 1996 were approximately
$1.5 million in savings realized from the 1995 purchased power contracts
buyback. This was offset by an increase in operation and maintenance (O&M)
expense due to storm related activities during the first quarter of 1996 and
an increase in the price of oil, which was minimized by entering into hedging
transactions with three financial institutions (See more complete discussion
of the hedging transactions in the 1995 Form 10-K).
REVENUES
The $1.0 million increase in electric operating revenues was attributable to
an overall 2.4% increase in total kilowatt hour (KWH) sales in the first
quarter of 1996 as compared to 1995, as well as a $1.2 million increase in
off-system sales (sales related to power pool and interconnection agreements
and resales of purchased power). The KWH increase was impacted by an
increase in heating degree days in the first quarter of 1996, due to colder
weather as compared to the 1995 quarter. These increases were offset to some
extent by the impact of eliminating seasonal rates for certain customers
effective March, 1995, and the need to reduce rates to meet increasing
competitive pressures.
EXPENSES
The significant decrease in fuel for generation expense is related to the
buyback of the high cost non-utility generator purchased power contracts on
June 30, 1995 and the previously mentioned return of Maine Yankee to
operation in January 1996. Fuel expense related to the purchased power
contracts buyback were $8.9 million lower in the first quarter of 1996 as
compared to 1995. These decreases were offset somewhat by an increase in the
cost of fuel oil in the first quarter of 1996, which was minimized by the
previously discussed hedging transactions. The Company reduced its fuel
expense by approximately $1.1 million in the first quarter of 1996 through
entering into the fuel hedging agreements.
The $503,000 increase in other O&M expense in the first quarter of 1996 was
due to several factors. Bad debt expense increased by $64,000, due to higher
levels of bad debt write-offs in the 1996 quarter. O&M payroll expense
increased by $52,000 due to one additional week of payroll in the 1996
quarter, as well as the impact of a 2% wage rate increase for both union and
nonunion employees effective November 1, 1995. These payroll increases were
offset by lower employee levels in 1996 due to the early retirement and
severance program in the third quarter of 1995. Also increasing O&M expense
in the first quarter of 1995 was $75,000 in additional outside legal services
and $85,000 related to accruals under the Company's incentive bonus program.
Further, in the first quarter of 1996, postretirement medical and life
insurance benefits expenses increased by $67,000 as compared to the 1995
quarter.
The increase in depreciation and amortization expense was due principally to
anticipated property additions for 1996, recording a full year's depreciation
on 1995 additions to electric plant in service, as well as an increase in the
composite depreciation rate from 3.0% to 3.2%, resulting from a depreciation
study conducted by the Company.
The increase in amortization of costs to terminate purchased power contracts
was a result of the Company amortizing over a ten year period, starting in
July 1995, the costs to terminate the purchased power contracts in June 1995,
amounting to monthly amortization of $1.4 million.
The increase in property and other taxes in the first quarter of 1996 was due
principally to greater property taxes, which was a result of increased
property levels and property tax rates. These increases were offset by
reduced payroll taxes, as a result of lower employee levels in 1996 as
compared to 1995.
The increase in income taxes was primarily a function of higher earnings in
the first quarter of 1996 as compared to the 1995 quarter.
Allowance for funds used during construction (AFDC) decreased in 1996
relative to 1995 primarily due to ceasing accrual of AFDC on FERC hydro
relicensing projects effective March 1, 1995.
Other income, net, increased in the 1996 quarter due principally to $345,000
of interest income earned on the $21 million capital reserve fund set aside
in connection with the June 30, 1995 purchased power contracts buyback
financing with the Finance Authority of Maine.
Long-term debt interest expense increased $3.4 million in the first quarter
of 1996 as compared to 1995 due to $186 million of borrowings on June 30,
1995 to finance the purchased power contracts buyback. The increase was
offset by the impact of sinking fund payments on the Company's 12.25% first
mortgage bonds.
Other interest expense, which is composed primarily of interest expense on
short term borrowings, increased due to higher interest rates as well as a
$7.5 million increase in weighted average short term borrowings outstanding
in the 1996 quarter as compared to 1995. Also included in other interest
expense is the amortization of issuance costs of various debt instruments.
Due to the issuance costs incurred in connection with financing the 1995
purchased power contracts buyback, debt issuance cost amortization expense
was approximately $97,000 higher in the first quarter of 1996.
LIQUIDITY AND CAPITAL RESOURCES
The Consolidated Statements of Cash Flows reflect events in the first
quarters of 1996 and 1995 as they affect the Company's liquidity. Net cash
provided by operations increased by $5.6 million in the first quarter of 1996
as compared to the 1995 quarter. With the elimination of the previously
discussed purchased power contracts in June 1995, the Company's fuel costs
related to the contracts were approximately $8.9 million lower in the first
quarter of 1996. These savings from the contract buybacks were reduced by
increased interest payments on debt issued to finance the buyback
transactions. Also positively impacting cash flows from operations were the
incremental costs incurred in to replace the Company's share of Maine
Yankee's output. These additional fuel costs amounted to $2.2 million for
the first quarter of 1995 as compared to $934,000 for the 1996 quarter.
Reducing cash flows from operations to some extent was a $1.4 million
decrease in accounts payable in the first quarter of 1996 as compared to a
$1.0 million increase in the first quarter of 1995. Also, accounts
receivable, net and unbilled revenue increased by $21,000 in the 1996
quarter, as compared to a $987,000 decrease in the 1995 quarter.
Due to efforts by the Company to control costs and enhance cash flows in
1996, construction expenditures have been reduced by $1.2 million in the 1996
quarter as compared to 1995.
As discussed in the Form 10-Q for the second quarter of 1995, the Company
reduced its quarterly dividend on common stock by $.15 from the prior
quarterly level of $.33 per share, effective for the quarter ending June 30,
1995. This reduction has improved cash flows through a $1.1 million decrease
in common dividend payments for the first quarter of 1996. The Company in
each period made sinking fund payments on its 12.25% first mortgage bonds.
Also in the first quarter of 1996 the Company made a sinking fund payment of
$1.5 million on its 8.76% mandatory redeemable preferred stock. As discussed
in more detail in the footnotes to the consolidated financial statements
contained in the 1995 Form 10-K, the Company, in the first quarter of 1996
made a $115,000 payment to this preferred stockholder related to a "make
whole provision" under the preferred stock agreement.
Under the Company's Dividend Reinvestment and Common Stock Purchase Plan the
Company realized a common stock investment of $163,000 through the issuance
of 13,542 new common shares in 1996 as compared to $421,000 in the comparable
1995 period through the issue of 44,201 shares.
As discussed in the 10-Q for the second quarter of 1995, effective June 30,
1995, the Company entered into a Credit Agreement with a group of seven banks
providing a revolving credit facility in the initial amount of $55 million.
The revolving credit facility has a term of five years.
With the completion of the purchased contract buyback in the second quarter
of 1995, the Company expects minimal external financing needs for the
foreseeable future.
NEW ACCOUNTING STANDARD
In March 1995 the Financial Accounting Standards Board issued Statement No.
121 (FAS 121), "Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Asset to be Disposed Of", effective for financial statements for
fiscal years beginning after December 15, 1995. The Company implemented this
standard in the first quarter of 1995. With the cost of the Company's long-
lived assets and intangibles currently being recovered through its electric
rates, the effect of FAS 121 on the Company's results of operations and
financial position in the first quarter of 1996 was not significant.
Management cannot predict the outcome of the possibility of further
competition and deregulation of the electric utility industry, or the
application of this standard.
OTHER
The Company occassionally makes forward-looking statements such as forecasts
and projections of expected future performance or statements of the Company's
plans and objectives. These forward-looking statements may be contained in
filings with the Securities and Exchange Commission, press releases, and oral
statements. Actual results could potentially differ materially from these
statements. Therefore, no assurances can be given that such forward-looking
statements and estimates will be achieved.
BANGOR HYDRO-ELECTRIC COMPANY
CONSOLIDATED BALANCE SHEETS
000's Omitted
(Unaudited)
ASSETS
Mar. 31, Dec. 31,
1996 1995
---------- ----------
INVESTMENT IN UTILITY PLANT:
Electric plant in service, at original cost $ 302,917 $ 300,374
Less - Accumulated depreciation and amortization 83,948 81,934
---------- ----------
$ 218,969 $ 218,440
Construction work in progress 19,413 18,151
---------- ----------
$ 238,382 $ 236,591
Investments in corporate joint ventures:
Maine Yankee Atomic Power Company $ 5,014 $ 5,014
Maine Electric Power Company, Inc. 125 125
---------- ----------
$ 243,521 $ 241,730
---------- ----------
OTHER INVESTMENTS, principally at cost $ 4,248 $ 4,185
----------- ----------
FUNDS HELD BY TRUSTEE, at cost $ 21,536 $ 21,192
----------- ----------
CURRENT ASSETS:
Cash and cash equivalents $ 7,498 $ 1,424
Accounts receivable, net of reserve 18,523 18,226
Unbilled revenue receivable 8,545 8,821
Inventories, at average cost:
Material and supplies 3,042 3,029
Fuel oil 390 106
Prepaid expenses 1,500 1,738
Deferred Maine Yankee refueling costs 2,083 2,419
----------- ----------
Total current assets $ 41,581 $ 35,763
----------- ----------
DEFERRED CHARGES:
Investment in Seabrook Nuclear Project, net of
accumulated amortization of $25,501 in 1996
and $25,076 in 1995 $ 33,341 $ 33,766
Costs to terminate purchased power contracts,
net of accumulated amortization of $20,751
in 1996 and $4,210 in 1995 186,950 192,140
Deferred regulatory assets 29,755 30,328
Demand-side management costs 1,777 1,946
Other 4,567 5,026
----------- ----------
Total deferred charges $ 256,390 $ 263,206
----------- ----------
Total assets $ 567,276 $ 566,076
========== ==========
See notes to the consolidated financial statements.
BANGOR HYDRO-ELECTRIC COMPANY
CONSOLIDATED BALANCE SHEETS
000's Omitted
(Unaudited)
Mar. 31, Dec. 31,
STOCKHOLDERS' INVESTMENT AND LIABILITIES 1996 1995
--------- ---------
CAPITALIZATION:
Common stock investment $ 105,740 $ 103,192
Preferred stock 4,734 4,734
Preferred stock subject to mandatory redemption,
exclusive of current sinking fund requirements 12,164 12,070
Long-term debt, net of current portion 287,176 288,075
----------- -----------
Total capitalization $ 409,814 $ 408,071
----------- -----------
CURRENT LIABILITIES:
Notes payable - banks $ 35,000 $ 35,000
----------- -----------
Other current liabilities -
Current portion of long-term debt and sinking
fund requirements on preferred stock $ 15,362 $ 16,939
Accounts payable 9,138 10,527
Dividends payable 1,679 1,709
Accrued interest 5,947 4,908
Customers' deposits 335 349
Deferred fuel revenue 1,765 2,017
----------- -----------
Total other current liabilities $ 34,226 $ 36,449
----------- -----------
Total current liabilities $ 69,226 $ 71,449
----------- -----------
DEFERRED CREDITS AND RESERVES:
Deferred income taxes - Seabrook $ 17,325 $ 17,546
Other accumulated deferred income taxes 52,847 50,775
Deferred regulatory liability 8,419 8,568
Unamortized investment tax credits 2,310 2,354
Accrued pension 638 626
Other 6,697 6,687
----------- -----------
Total deferred credits and reserves $ 88,236 $ 86,556
----------- -----------
Total Stockholders' Investment and Liabilities $ 567,276 $ 566,076
=========== ===========
See notes to the consolidated financial statements.
BANGOR HYDRO-ELECTRIC COMPANY
CONSOLIDATED STATEMENTS OF CAPITALIZATION
000's Omitted
Mar. 31, Dec. 31,
1996 1995
------------- ---------
COMMON STOCK INVESTMENT
Common stock, par value $5 per share- $ 36,575 $ 36,508
Authorized -- 10,000,000 shares
Outstanding -- 7,315,099 shares in 1996 and
7,301,557 shares in 1995
Amounts paid in excess of par value 56,706 56,611
Retained earnings 12,459 10,073
------------ ---------
Total common stock investment $ 105,740 $ 103,192
------------ ----------
PREFERRED STOCK-Non participating, cumulative-
Par value $100 per share, authorized 600,000 shares
Not redeemable or redeemable solely at the option
of the issuer -
7%, Noncallable, 25,000 shares, authorized
and outstanding $ 2,500 $ 2,500
4.25%, Callable at $100, 4,840 shares,
authorized and outstanding 484 484
4%, Series A, Callable at $110, 17,500 shares,
authorized and outstanding 1,750 1,750
------------ ----------
$ 4,734 $ 4,734
------------ ----------
8.76%, Subject to mandatory redemption requirements-
Callable at 105.01% if called on or prior to
December 27, 1996,
150,000 shares authorized and 135,000 shares
outstanding in 1996 and 150,000 shares
outstanding in 1995 $ 13,779 $ 15,363
Less: Sinking fund requirements 1,615 3,293
------------ ----------
$ 12,164 $ 12,070
------------ ----------
LONG-TERM DEBT
First Mortgage Bonds-
6.75% Series due 1998 $ 2,500 $ 2,500
10.25% Series due 2019 15,000 15,000
10.25% Series due 2020 30,000 30,000
8.98% Series due 2022 20,000 20,000
7.38% Series due 2002 20,000 20,000
7.30% Series due 2003 15,000 15,000
12.25% Series due 2001 8,222 9,021
------------ ----------
$ 110,722 $ 111,521
Less: Sinking fund requirements 1,746 1,646
------------ ----------
Total first mortgage bonds $ 108,976 $ 109,875
------------ ----------
Variable rate demand pollution control revenue bonds
Series 1983 due 2009 $ 4,200 $ 4,200
------------ ----------
Other Long-Term Debt-
Finance Authority of Maine - Taxable Electric Rate
Stabilization Revenue Notes, 7.03% Series 1995A,
due 2005 $ 126,000 $ 126,000
------------ ----------
Medium Term Notes, Variable interest rate -
LIBO Rate Plus 2%, due 2000 $ 60,000 $ 60,000
Less: Current portion of long-term debt 12,000 12,000
------------ ----------
$ 48,000 $ 48,000
------------ ----------
Total long-term debt $ 287,176 $ 288,075
------------ ----------
Total Capitalization $ 409,814 $ 408,071
============ ==========
See notes to the consolidated financial statements.
BANGOR HYDRO-ELECTRIC COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
000's Omitted
(Unaudited)
1996 1995
-------- --------
CASH FLOWS FROM OPERATIONS:
NET INCOME $ 4,095 $ 3,293
Adjustments to reconcile net income to net cash
provided by (used in) operations:
Depreciation and amortization 1,960 1,549
Amortization of Seabrook Nuclear Project 425 425
Amortization of contract buyouts 5,190 972
Base rate case amortizations included in operation
and maintenance 249 270
Allowance for equity funds used during construction (99) (219)
Deferred income tax provision 2,691 660
Deferred investment tax credits (44) (44)
Changes in assets and liabilities:
Deferred fuel revenue and Maine Yankee refueling
costs 84 (1,318)
Receivables, net and unbilled revenue (21) 987
Materials, supplies and fuel oil (297) 365
Accounts payable (1,389) 1,002
Accrued interest 1,039 (1,211)
Current and deferred income taxes (403) 1,171
Other current assets and liabilities, net 224 283
Other, net 136 30
---------- ----------
Net Cash Provided By Operations $ 13,840 $ 8,215
---------- ----------
CASH FLOWS FROM INVESTING:
Construction expenditures $ (3,595) $ (4,795)
Allowance for borrowed funds used during construction (212) (210)
---------- ----------
Net Cash (Used in) Investing $ (3,807) $ (5,005)
---------- ----------
CASH FLOWS FROM FINANCING:
Dividends on preferred stock $ (395) $ (395)
Dividends on common stock (1,314) (2,371)
Repayments on long-term debt (798) (1,355)
Sinking fund and make whole provision payments on
mandatory redeemable preferred stock (1,615) --
Issuances of common stock
Dividend reinvestment plan (13,542 shares in 1996
and 44,201 in 1995) 163 421
---------- ----------
Net Cash (Used in) Financing $ (3,959) $ (3,700)
---------- ----------
NET CHANGE IN CASH AND CASH EQUIVALENTS $ 6,074 $ (490)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 1,424 1,956
---------- ----------
CASH AND CASH EQUIVALENTS - END OF THREE MONTHS $ 7,498 $ 1,466
========== ==========
CASH PAID DURING THE THREE MONTHS FOR:
INTEREST (Net of Amount Capitalized) $ 5,618 $ 3,956
INCOME TAXES -- --
========== ==========
See notes to the consolidated financial statements.
BANGOR HYDRO-ELECTRIC COMPANY
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
000's Omitted
(Unaudited)
1996 1995
----------- -----------
BALANCE AT JANUARY 1 $ 10,073 $ 13,758
ADD - NET INCOME 4,095 3,293
----------- -----------
$ 14,168 $ 17,051
----------- -----------
DEDUCT:
Dividends -
Preferred stock $ 362 $ 395
Common stock 1,317 2,386
Other 30 18
----------- -----------
$ 1,709 $ 2,799
----------- -----------
BALANCE AT MARCH 31 $ 12,459 $ 14,252
=========== ===========
See notes to the consolidated financial statements.
BANGOR HYDRO-ELECTRIC COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1996
(Unaudited)
(1) BASIS OF PRESENTATION AND ACCOUNTING POLICIES:
Certain information and footnote disclosures, normally included in
financial statements prepared in accordance with generally accepted
accounting principles, have been condensed or omitted in this Form 10-Q
pursuant to the Rules and Regulations of the Securities and Exchange
Commission. However, in the opinion of Bangor Hydro-Electric Company, the
disclosures contained in this Form 10-Q are adequate to make the information
presented not misleading. The year end condensed balance sheet data was
derived from audited financial statements but does not include all
disclosures required by generally accepted accounting principles. These
statements should be read in conjunction with the consolidated financial
statements and the notes thereto and all other information included in the
1995 Form 10-K.
In the opinion of the Company, the accompanying unaudited consolidated
financial statements reflect all adjustments, including normal recurring
accruals, necessary to present fairly the financial position as of March 31,
1996 and the results of operations and cash flows for the periods ended March
31, 1996 and 1995.
The Company's significant accounting policies are described in the Notes to
the Consolidated Financial Statements included in its 1995 Form 10-K filed
with the Securities and Exchange Commission. For interim reporting purposes,
the Company follows these same basic accounting policies but considers each
interim period as an integral part of an annual period. Accordingly, certain
expenses are allocated to interim periods based upon estimates of such
expenses for the year.
(2) INCOME TAXES:
The following table reconciles a provision calculated by multiplying
income before federal income taxes by the statutory federal income tax rate
to the above provisions for federal income taxes:
Three Months Ended March 31,
1996 1995
Amount % Amount %
(Dollars in Thousands)
Federal income tax provision
at statutory rate $2,267 34% $1,807 34%
Less permanent reductions in
tax expense resulting from
statutory exclusions from
taxable income 6 - 55 1
------ --- ------ ---
Federal income tax provision
before effect of temporary
differences $2,261 34% $1,752 33%
Less temporary differences that
are flowed through for
ratemaking and accounting
purposes 166 3 49 1
------ --- ------ ---
Federal income tax provision $2,095 31% $1,703 32%
====== === ====== ===
3) INVESTMENT IN JOINTLY OWNED FACILITIES:
Condensed financial information for Maine Yankee Atomic Power Company ("Maine
Yankee"), Maine Electric Power Company, Inc. ("MEPCO"), Bangor-Pacific Hydro
Associates ("BPHA") and Chester SVC Partnership ("Chester") is as follows:
MAINE YANKEE MEPCO
--------------- -------------------
(Dollars in Thousands)
(Unaudited)
Operations for Three Months Ended
-------------------------------------
Mar. 31, Mar. 31, Mar. 31, Mar. 31,
1996 1995 1996 1995
-------- -------- -------- --------
OPERATIONS:
As reported by investee-
Operating revenues $41,812 $ 62,662 $14,860 $ 9,069
======== ======== ======= =======
Earnings applicable to
common stock $ 1,786 $ 1,715 $ 56 $ 26
======== ======== ======= =======
Company's reported equity-
Equity in net income $ 125 $ 120 $ 8 $ 4
(Deduct) Add-Effect of
adjusting Company's
estimate to actual (50) 8 (4) -
-------- -------- ------- -------
Amounts reported by
Company $ 75 $ 128 $ 4 $ 4
======== ======== ======= =======
MAINE YANKEE MEPCO
------------------ ----------------
(Dollars in Thousands)
(Unaudited)
Financial Position at
Mar. 31 Dec. 31 Mar. 31 Dec. 31
1996 1995 1996 1995
-------- -------- -------- --------
FINANCIAL POSITION:
As reported by investee-
Total assets $574,751 $580,958 $ 8,877 $ 5,919
Less-
Preferred stock 18,000 18,600 - -
Long-term debt 106,999 109,999 - 870
Other liabilities and
deferred credits 378,515 381,158 7,969 4,171
-------- -------- -------- --------
Net assets $ 71,237 $ 71,201 $ 908 $ 878
======== ======== ======== ========
Company's reported equity-
Equity in net assets $ 4,987 $ 4,984 $ 129 $ 125
Add (deduct) - Effect
of adjusting Company's
estimate to actual 27 30 (4) -
-------- -------- -------- --------
Amounts reported by
Company $ 5,014 $ 5,014 $ 125 $ 125
======== ======== ======== ========
BPHA Chester
----------------- -----------------
(Dollars in Thousands)
(Unaudited)
Operations for Three Months Ended
--------------------------------------
Mar. 31, Mar. 31, Mar. 31, Mar. 31,
1996 1995 1996 1995
-------- -------- -------- --------
OPERATIONS:
As reported by investee-
Operating revenues $ 2,088 $ 1,858 $ 1,222 $ 1,236
======= ======== ======= =======
Net Income $ 799 $ 589 $ - $ -
======= ======== ======= =======
Company's reported equity
in net income $ 400 $ 295 $ - $ -
======= ======== ======= =======
Financial Position at
Mar. 31, Dec. 31, Mar. 31, Dec. 31,
1996 1995 1996 1995
-------- -------- -------- --------
FINANCIAL POSITION:
As reported by investee-
Total assets $40,502 $41,007 $29,618 $30,048
Less-
Long-term debt 32,100 32,600 27,908 28,204
Other liabilities 2,450 2,255 1,710 1,844
------- ------- -------- --------
Net assets $ 5,952 $ 6,152 $ - $ -
======= ======= ======== ========
Company's reported equity
in net assets $ 2,976 $ 3,076 $ - $ -
======= ======= ======== ========
4. NEW ACCOUNTING PRONOUNCEMENT:
In March 1995 the Financial Accounting Standards Board issued
Statement No. 121 (FAS 121), "Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Asset to be Disposed Of", effective for financial
statements for fiscal years beginning after December 15, 1995. The Company
implemented this standard in the first quarter of 1995. With the cost of the
Company's long-lived assets and intangibles currently being recovered through
its electric rates, the effect of FAS 121 on the Company's results of
operations and financial position in the first quarter of 1996 was not
significant. Management cannot predict the outcome of the possibility of
further competition and deregulation of the electric utility industry, or the
application of this standard.
BANGOR HYDRO-ELECTRIC COMPANY
FORM 10-Q FOR PERIOD ENDING MARCH 31, 1996
PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
EXHIBITS - None.
REPORTS ON FORM 8-K
A Current Report on Form 8-K dated January 12, 1996 was filed in the
first quarter of 1996, regarding the return to operation of the Maine Yankee
nuclear generating facility.
BANGOR HYDRO-ELECTRIC COMPANY
FORM 10-Q FOR PERIOD ENDED MARCH 31, 1996
The information furnished in this report reflects all
adjustments which are, in the opinion of management, necessary to
a fair statement of the results for the interim period.
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.
BANGOR HYDRO-ELECTRIC COMPANY
-----------------------------
(Registrant)
Dated: May 14, 1996 /S/ Frederick S. Samp
------------------------------
Frederick S. Samp
Vice President - Finance & Law
(Chief Financial Officer)
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
This schedule contains summary financial information extracted from first
quarter 1996 10-Q and is qualified in its entirety by reference to such 10-Q.
</LEGEND>
<CIK> 0000009548
<NAME> BANGOR HYDRO-ELECTRIC COMPANY
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 238,382
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<TOTAL-ASSETS> 567,276
<COMMON> 36,575
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<RETAINED-EARNINGS> 12,459
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12,164
4,734
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1,615
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<GROSS-OPERATING-REVENUE> 49,266
<INCOME-TAX-EXPENSE> 2,352
<OTHER-OPERATING-EXPENSES> 36,460
<TOTAL-OPERATING-EXPENSES> 38,812
<OPERATING-INCOME-LOSS> 10,454
<OTHER-INCOME-NET> 397
<INCOME-BEFORE-INTEREST-EXPEN> 10,851
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<NET-INCOME> 4,095
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<EARNINGS-AVAILABLE-FOR-COMM> 3,702
<COMMON-STOCK-DIVIDENDS> (1,317)
<TOTAL-INTEREST-ON-BONDS> 23,419
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