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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) - OCTOBER 13, 1995
TEXAS UTILITIES COMPANY
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
TEXAS 1-3591 75-0705930
(STATE OR OTHER JURISDICTION (COMMISSION (I.R.S. EMPLOYER
OF INCORPORATION) FILE NUMBER) IDENTIFICATION NO.)
ENERGY PLAZA, 1601 BRYAN TOWER, DALLAS, TEXAS 75201
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE - (214) 812-4600
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ITEM 5. OTHER EVENTS
Reference is made to the Annual Report on Form 10-K of Texas Utilities Company
(Company) for the year ended December 31, 1994 in Item 1. Business under Fuel
Supply and Purchased Power, in Item 2. Properties under Capital Expenditures,
in Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operation and in Item 8. Financial Statements and Supplementary Data
under Note 11 to Consolidated Financial Statements. Reference is also made to
the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 1995
in Item 1. Financial Statements under Note 7 to Condensed Consolidated Financial
Statements and in Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operation, and to the Company's Quarterly Report on
Form 10-Q for the quarter ended June 30, 1995 in Item 1. Financial Statements
under Note 6 to Condensed Financial Statements and in Item 2. Management's
Discussion and Analysis of Financial Condition and Results of Operation.
The Company announced on October 13, 1995 that it had recorded the impairment of
several non-performing assets. The total impairment was $802 million after tax,
or $3.55 per share, which has been included in results for the quarter ended
September 30, 1995. The impaired assets include the partially completed Twin
Oak and Forest Grove lignite generating units of the Company's principal
subsidiary, Texas Utilities Electric Company (TU Electric), and the coal
reserves in New Mexico of the Company's Chaco Energy Company subsidiary (Chaco),
as well as several minor assets. The Company indicated that the Twin Oak and
Forest Grove plants no longer fit TU Electric's capacity needs due to changes in
load growth patterns and availability of alternative generation. Such plant
impairment has been measured based on management's expectations that these
assets will either be sold or constructed outside the traditional regulated
business. A variety of options are being pursued with respect to the Chaco coal
reserves.
The Company also announced that its Board of Directors had declared a quarterly
dividend of $0.50 per share payable on January 2, 1996 to shareholders of record
on December 7, 1995. The previous quarterly dividend was $0.77 per share. The
Company indicated that it remains in a strong cash flow position and plans to
use this cash flow to continue to aggressively buy back TU Electric's long term
debt and preferred stock, buy back up to $250 million of the Company's common
stock over the next three years and fund attractive investment opportunities as
they become available.
SIGNATURE
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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.
TEXAS UTILITIES COMPANY
By: /s/ H. Dan Farell
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H. Dan Farell
Controller and Principal Accounting Officer
Date: October 17, 1995
