We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Excelerate Energy Inc | NYSE:EE | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.28 | -1.48% | 18.60 | 19.09 | 18.32 | 19.09 | 152,102 | 23:03:29 |
|
|
|
|
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from _______ to _______
|
Texas
|
|
74-0607870
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
Stanton Tower, 100 North Stanton, El Paso, Texas
|
|
79901
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
Large accelerated filer
|
x
|
Accelerated filer
|
o
|
|
|
|
|
|
|
Non-accelerated filer
|
o
|
Smaller reporting company
|
o
|
|
|
|
|
|
|
|
Page No.
|
|
||
Item 1.
|
|
|
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
||
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
|
(
i
)
|
|
Item 1.
|
Financial Statements
|
|
March 31,
2016 |
|
December 31,
2015 |
||||
|
(Unaudited)
|
|
|||||
|
|
|
|
||||
ASSETS
(In thousands)
|
|
|
|
||||
Utility plant:
|
|
|
|
||||
Electric plant in service
|
$
|
3,658,736
|
|
|
$
|
3,616,301
|
|
Less accumulated depreciation and amortization
|
(1,345,255
|
)
|
|
(1,329,843
|
)
|
||
Net plant in service
|
2,313,481
|
|
|
2,286,458
|
|
||
Construction work in progress
|
296,905
|
|
|
293,796
|
|
||
Nuclear fuel; includes fuel in process of $44,474 and $51,854, respectively
|
202,121
|
|
|
190,282
|
|
||
Less accumulated amortization
|
(85,990
|
)
|
|
(75,031
|
)
|
||
Net nuclear fuel
|
116,131
|
|
|
115,251
|
|
||
Net utility plant
|
2,726,517
|
|
|
2,695,505
|
|
||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
41,312
|
|
|
8,149
|
|
||
Accounts receivable, principally trade, net of allowance for doubtful accounts of $1,523 and $2,046, respectively
|
58,030
|
|
|
66,326
|
|
||
Inventories, at cost
|
47,639
|
|
|
48,697
|
|
||
Prepayments and other
|
11,839
|
|
|
9,872
|
|
||
Total current assets
|
158,820
|
|
|
133,044
|
|
||
Deferred charges and other assets:
|
|
|
|
||||
Decommissioning trust funds
|
243,690
|
|
|
239,035
|
|
||
Regulatory assets
|
113,542
|
|
|
115,127
|
|
||
Other
|
17,839
|
|
|
17,896
|
|
||
Total deferred charges and other assets
|
375,071
|
|
|
372,058
|
|
||
Total assets
|
$
|
3,260,408
|
|
|
$
|
3,200,607
|
|
|
1
|
|
|
March 31,
2016 |
|
December 31,
2015 |
||||
|
(Unaudited)
|
|
|||||
CAPITALIZATION AND LIABILITIES
(In thousands except for share data)
|
|
|
|
||||
Capitalization:
|
|
|
|
||||
Common stock, stated value $1 per share, 100,000,000 shares authorized, 65,670,638 and 65,709,819 shares issued, and 158,015 and 118,834 restricted shares, respectively
|
$
|
65,829
|
|
|
$
|
65,829
|
|
Capital in excess of stated value
|
320,047
|
|
|
320,073
|
|
||
Retained earnings
|
1,049,660
|
|
|
1,067,396
|
|
||
Accumulated other comprehensive loss, net of tax
|
(13,632
|
)
|
|
(13,914
|
)
|
||
|
1,421,904
|
|
|
1,439,384
|
|
||
Treasury stock, 25,343,838 and 25,384,834 shares, respectively, at cost
|
(422,163
|
)
|
|
(422,846
|
)
|
||
Common stock equity
|
999,741
|
|
|
1,016,538
|
|
||
Long-term debt, net of current portion
|
1,278,449
|
|
|
1,122,660
|
|
||
Total capitalization
|
2,278,190
|
|
|
2,139,198
|
|
||
Current liabilities:
|
|
|
|
||||
Short-term borrowings under the revolving credit facility
|
87,050
|
|
|
141,738
|
|
||
Accounts payable, principally trade
|
32,768
|
|
|
59,978
|
|
||
Taxes accrued
|
26,094
|
|
|
30,351
|
|
||
Interest accrued
|
19,352
|
|
|
12,649
|
|
||
Over-collection of fuel revenues
|
8,127
|
|
|
4,023
|
|
||
Other
|
29,160
|
|
|
28,325
|
|
||
Total current liabilities
|
202,551
|
|
|
277,064
|
|
||
Deferred credits and other liabilities:
|
|
|
|
||||
Accumulated deferred income taxes
|
490,939
|
|
|
495,237
|
|
||
Accrued pension liability
|
89,141
|
|
|
90,527
|
|
||
Accrued post-retirement benefit liability
|
55,114
|
|
|
54,553
|
|
||
Asset retirement obligation
|
83,495
|
|
|
81,621
|
|
||
Regulatory liabilities
|
23,479
|
|
|
24,303
|
|
||
Other
|
37,499
|
|
|
38,104
|
|
||
Total deferred credits and other liabilities
|
779,667
|
|
|
784,345
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Total capitalization and liabilities
|
$
|
3,260,408
|
|
|
$
|
3,200,607
|
|
|
2
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Operating revenues
|
$
|
157,809
|
|
|
$
|
163,746
|
|
|
$
|
843,932
|
|
|
$
|
895,755
|
|
Energy expenses:
|
|
|
|
|
|
|
|
||||||||
Fuel
|
34,319
|
|
|
37,729
|
|
|
184,990
|
|
|
237,148
|
|
||||
Purchased and interchanged power
|
9,646
|
|
|
11,175
|
|
|
52,016
|
|
|
58,064
|
|
||||
|
43,965
|
|
|
48,904
|
|
|
237,006
|
|
|
295,212
|
|
||||
Operating revenues net of energy expenses
|
113,844
|
|
|
114,842
|
|
|
606,926
|
|
|
600,543
|
|
||||
Other operating expenses:
|
|
|
|
|
|
|
|
||||||||
Other operations
|
58,387
|
|
|
55,599
|
|
|
245,738
|
|
|
238,293
|
|
||||
Maintenance
|
17,515
|
|
|
15,560
|
|
|
67,178
|
|
|
66,907
|
|
||||
Depreciation and amortization
|
23,293
|
|
|
21,565
|
|
|
91,552
|
|
|
84,339
|
|
||||
Taxes other than income taxes
|
14,812
|
|
|
14,158
|
|
|
64,390
|
|
|
61,546
|
|
||||
|
114,007
|
|
|
106,882
|
|
|
468,858
|
|
|
451,085
|
|
||||
Operating income (loss)
|
(163
|
)
|
|
7,960
|
|
|
138,068
|
|
|
149,458
|
|
||||
Other income (deductions):
|
|
|
|
|
|
|
|
||||||||
Allowance for equity funds used during construction
|
2,336
|
|
|
4,275
|
|
|
8,700
|
|
|
16,031
|
|
||||
Investment and interest income, net
|
2,929
|
|
|
5,254
|
|
|
15,183
|
|
|
14,646
|
|
||||
Miscellaneous non-operating income
|
656
|
|
|
180
|
|
|
2,538
|
|
|
2,738
|
|
||||
Miscellaneous non-operating deductions
|
(466
|
)
|
|
(491
|
)
|
|
(4,303
|
)
|
|
(4,271
|
)
|
||||
|
5,455
|
|
|
9,218
|
|
|
22,118
|
|
|
29,144
|
|
||||
Interest charges (credits):
|
|
|
|
|
|
|
|
||||||||
Interest on long-term debt and revolving credit facility
|
16,599
|
|
|
16,483
|
|
|
65,967
|
|
|
60,932
|
|
||||
Other interest
|
562
|
|
|
163
|
|
|
1,712
|
|
|
1,240
|
|
||||
Capitalized interest
|
(1,242
|
)
|
|
(1,289
|
)
|
|
(4,921
|
)
|
|
(5,135
|
)
|
||||
Allowance for borrowed funds used during construction
|
(1,658
|
)
|
|
(2,621
|
)
|
|
(5,974
|
)
|
|
(9,305
|
)
|
||||
|
14,261
|
|
|
12,736
|
|
|
56,784
|
|
|
47,732
|
|
||||
Income (loss) before income taxes
|
(8,969
|
)
|
|
4,442
|
|
|
103,402
|
|
|
130,870
|
|
||||
Income tax expense (benefit)
|
(3,161
|
)
|
|
984
|
|
|
30,750
|
|
|
40,599
|
|
||||
Net income (loss)
|
$
|
(5,808
|
)
|
|
$
|
3,458
|
|
|
$
|
72,652
|
|
|
$
|
90,271
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share
|
$
|
(0.14
|
)
|
|
$
|
0.09
|
|
|
$
|
1.80
|
|
|
$
|
2.24
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share
|
$
|
(0.14
|
)
|
|
$
|
0.09
|
|
|
$
|
1.80
|
|
|
$
|
2.24
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per share of common stock
|
$
|
0.295
|
|
|
$
|
0.28
|
|
|
$
|
1.18
|
|
|
$
|
1.12
|
|
Weighted average number of shares outstanding
|
40,325,324
|
|
|
40,243,199
|
|
|
40,295,316
|
|
|
40,214,198
|
|
||||
Weighted average number of shares and dilutive potential shares outstanding
|
40,325,324
|
|
|
40,266,674
|
|
|
40,332,140
|
|
|
40,240,793
|
|
|
3
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income (loss)
|
$
|
(5,808
|
)
|
|
$
|
3,458
|
|
|
$
|
72,652
|
|
|
$
|
90,271
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Unrecognized pension and post-retirement benefit costs:
|
|
|
|
|
|
|
|
||||||||
Net gain (loss) arising during period
|
—
|
|
|
—
|
|
|
5,429
|
|
|
(74,028
|
)
|
||||
Prior service benefit
|
—
|
|
|
—
|
|
|
824
|
|
|
34,200
|
|
||||
Reclassification adjustments included in net income for amortization of:
|
|
|
|
|
|
|
|
||||||||
Prior service benefit
|
(1,666
|
)
|
|
(1,663
|
)
|
|
(6,577
|
)
|
|
(7,863
|
)
|
||||
Net loss
|
1,223
|
|
|
2,250
|
|
|
7,595
|
|
|
7,309
|
|
||||
Net unrealized gains/losses on marketable securities:
|
|
|
|
|
|
|
|
||||||||
Net holding gains (losses) arising during period
|
2,190
|
|
|
1,014
|
|
|
(1,730
|
)
|
|
10,843
|
|
||||
Reclassification adjustments for net gains included in net income
|
(1,388
|
)
|
|
(3,745
|
)
|
|
(8,757
|
)
|
|
(8,230
|
)
|
||||
Net losses on cash flow hedges:
|
|
|
|
|
|
|
|
||||||||
Reclassification adjustment for interest expense included in net income
|
122
|
|
|
114
|
|
|
475
|
|
|
445
|
|
||||
Total other comprehensive income (loss) before income taxes
|
481
|
|
|
(2,030
|
)
|
|
(2,741
|
)
|
|
(37,324
|
)
|
||||
Income tax benefit (expense) related to items of other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Unrecognized pension and post-retirement benefit costs
|
56
|
|
|
(331
|
)
|
|
(2,899
|
)
|
|
15,142
|
|
||||
Net unrealized losses (gains) on marketable securities
|
(173
|
)
|
|
556
|
|
|
2,099
|
|
|
(561
|
)
|
||||
Losses on cash flow hedges
|
(82
|
)
|
|
(72
|
)
|
|
(213
|
)
|
|
(194
|
)
|
||||
Total income tax benefit (expense)
|
(199
|
)
|
|
153
|
|
|
(1,013
|
)
|
|
14,387
|
|
||||
Other comprehensive income (loss), net of tax
|
282
|
|
|
(1,877
|
)
|
|
(3,754
|
)
|
|
(22,937
|
)
|
||||
Comprehensive income (loss)
|
$
|
(5,526
|
)
|
|
$
|
1,581
|
|
|
$
|
68,898
|
|
|
$
|
67,334
|
|
|
4
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income (loss)
|
$
|
(5,808
|
)
|
|
$
|
3,458
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization of electric plant in service
|
23,293
|
|
|
21,565
|
|
||
Amortization of nuclear fuel
|
11,800
|
|
|
11,392
|
|
||
Deferred income taxes, net
|
(3,632
|
)
|
|
6,255
|
|
||
Allowance for equity funds used during construction
|
(2,336
|
)
|
|
(4,275
|
)
|
||
Other amortization and accretion
|
4,250
|
|
|
4,499
|
|
||
Gain on sale of property, plant and equipment
|
(545
|
)
|
|
—
|
|
||
Net gains on sale of decommissioning trust funds
|
(1,388
|
)
|
|
(3,745
|
)
|
||
Other operating activities
|
124
|
|
|
132
|
|
||
Change in:
|
|
|
|
||||
Accounts receivable
|
8,296
|
|
|
5,828
|
|
||
Inventories
|
1,302
|
|
|
(1,190
|
)
|
||
Net over-collection of fuel revenues
|
4,104
|
|
|
15,687
|
|
||
Prepayments and other
|
(2,975
|
)
|
|
(2,691
|
)
|
||
Accounts payable
|
(21,827
|
)
|
|
(24,230
|
)
|
||
Taxes accrued
|
(5,127
|
)
|
|
(8,825
|
)
|
||
Interest accrued
|
6,703
|
|
|
4,114
|
|
||
Other current liabilities
|
835
|
|
|
(910
|
)
|
||
Deferred charges and credits
|
(3,134
|
)
|
|
(612
|
)
|
||
Net cash provided by operating activities
|
13,935
|
|
|
26,452
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Cash additions to utility property, plant and equipment
|
(52,675
|
)
|
|
(73,865
|
)
|
||
Cash additions to nuclear fuel
|
(11,220
|
)
|
|
(10,183
|
)
|
||
Capitalized interest and AFUDC:
|
|
|
|
||||
Utility property, plant and equipment
|
(3,994
|
)
|
|
(6,896
|
)
|
||
Nuclear fuel
|
(1,242
|
)
|
|
(1,289
|
)
|
||
Allowance for equity funds used during construction
|
2,336
|
|
|
4,275
|
|
||
Decommissioning trust funds:
|
|
|
|
||||
Purchases, including funding of $1.1 million
|
(26,544
|
)
|
|
(26,961
|
)
|
||
Sales and maturities
|
24,078
|
|
|
24,642
|
|
||
Proceeds from sale of property, plant and equipment
|
596
|
|
|
—
|
|
||
Other investing activities
|
(750
|
)
|
|
(230
|
)
|
||
Net cash used for investing activities
|
(69,415
|
)
|
|
(90,507
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Dividends paid
|
(11,928
|
)
|
|
(11,303
|
)
|
||
Borrowings under the revolving credit facility:
|
|
|
|
||||
Proceeds
|
97,655
|
|
|
70,852
|
|
||
Payments
|
(152,343
|
)
|
|
(27,039
|
)
|
||
Proceeds from issuance of senior notes
|
157,052
|
|
|
—
|
|
||
Other financing activities
|
(1,793
|
)
|
|
(985
|
)
|
||
Net cash provided by financing activities
|
88,643
|
|
|
31,525
|
|
||
Net increase (decrease) in cash and cash equivalents
|
33,163
|
|
|
(32,530
|
)
|
||
Cash and cash equivalents at beginning of period
|
8,149
|
|
|
40,504
|
|
||
Cash and cash equivalents at end of period
|
$
|
41,312
|
|
|
$
|
7,974
|
|
|
5
|
|
Supplemental Cash Flow Disclosures (in thousands)
|
|
|
|
|||||
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2016
|
|
2015
|
||||
Cash paid (received) for:
|
|
|
|
|||||
|
Interest on long-term debt and borrowings under the revolving credit facility
|
$
|
10,666
|
|
|
$
|
10,117
|
|
|
Income tax paid (refunded), net
|
66
|
|
|
(807
|
)
|
||
Non-cash investing and financing activities:
|
|
|
|
|||||
|
Changes in accrued plant additions
|
(5,882
|
)
|
|
(5,207
|
)
|
||
|
Grants of restricted shares of common stock
|
653
|
|
|
523
|
|
|
6
|
|
|
7
|
|
|
8
|
|
Changes in Accumulated Other Comprehensive Income (Loss) (net of tax) by component are presented below (in thousands):
|
|||||||||||||||||||||||||||||||||
|
|
|
Three Months Ended March 31, 2016
|
|
Three Months Ended March 31, 2015
|
||||||||||||||||||||||||||||
|
|
|
Unrecognized Pension and Post-retirement Benefit Costs
|
|
Net Unrealized Gains (Losses) on Marketable Securities
|
|
Net Losses on Cash Flow Hedges
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Unrecognized Pension and Post-retirement Benefit Costs
|
|
Net Unrealized Gains (Losses) on Marketable Securities
|
|
Net Losses on Cash Flow Hedges
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at beginning of period
|
$
|
(29,869
|
)
|
|
$
|
27,765
|
|
|
$
|
(11,810
|
)
|
|
$
|
(13,914
|
)
|
|
$
|
(34,884
|
)
|
|
$
|
38,957
|
|
|
$
|
(12,074
|
)
|
|
$
|
(8,001
|
)
|
||
|
Other comprehensive income before reclassifications
|
—
|
|
|
1,742
|
|
|
—
|
|
|
1,742
|
|
|
—
|
|
|
822
|
|
|
—
|
|
|
822
|
|
|||||||||
|
Amounts reclassified from accumulated other comprehensive income (loss)
|
(387
|
)
|
|
(1,113
|
)
|
|
40
|
|
|
(1,460
|
)
|
|
256
|
|
|
(2,997
|
)
|
|
42
|
|
|
(2,699
|
)
|
|||||||||
Balance at end of period
|
$
|
(30,256
|
)
|
|
$
|
28,394
|
|
|
$
|
(11,770
|
)
|
|
$
|
(13,632
|
)
|
|
$
|
(34,628
|
)
|
|
$
|
36,782
|
|
|
$
|
(12,032
|
)
|
|
$
|
(9,878
|
)
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
Twelve Months Ended March 31, 2016
|
|
Twelve Months Ended March 31, 2015
|
||||||||||||||||||||||||||||
|
|
|
Unrecognized Pension and Post-retirement Benefit Costs
|
|
Net Unrealized Gains (Losses) on Marketable Securities
|
|
Net Losses on Cash Flow Hedges
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Unrecognized Pension and Post-retirement Benefit Costs
|
|
Net Unrealized Gains (Losses) on Marketable Securities
|
|
Net Losses on Cash Flow Hedges
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at beginning of period
|
$
|
(34,628
|
)
|
|
$
|
36,782
|
|
|
$
|
(12,032
|
)
|
|
$
|
(9,878
|
)
|
|
$
|
(9,388
|
)
|
|
$
|
34,730
|
|
|
$
|
(12,283
|
)
|
|
$
|
13,059
|
|
||
|
Other comprehensive income (loss) before reclassifications
|
3,777
|
|
|
(1,335
|
)
|
|
—
|
|
|
2,442
|
|
|
(24,775
|
)
|
|
8,717
|
|
|
—
|
|
|
(16,058
|
)
|
|||||||||
|
Amounts reclassified from accumulated other comprehensive income (loss)
|
595
|
|
|
(7,053
|
)
|
|
262
|
|
|
(6,196
|
)
|
|
(465
|
)
|
|
(6,665
|
)
|
|
251
|
|
|
(6,879
|
)
|
|||||||||
Balance at end of period
|
$
|
(30,256
|
)
|
|
$
|
28,394
|
|
|
$
|
(11,770
|
)
|
|
$
|
(13,632
|
)
|
|
$
|
(34,628
|
)
|
|
$
|
36,782
|
|
|
$
|
(12,032
|
)
|
|
$
|
(9,878
|
)
|
|
9
|
|
Details about Accumulated Other Comprehensive Income (Loss) Components
|
|
Three Months Ended March 31,
|
|
Twelve Months Ended March 31,
|
|
Affected Line Item in the Statement of Operations
|
||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of pension and post-retirement benefit costs:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Prior service benefit
|
|
$
|
1,666
|
|
|
$
|
1,663
|
|
|
$
|
6,577
|
|
|
$
|
7,863
|
|
|
(a)
|
|
|
Net loss
|
|
(1,223
|
)
|
|
(2,250
|
)
|
|
(7,595
|
)
|
|
(7,309
|
)
|
|
(a)
|
|||||
|
|
|
|
443
|
|
|
(587
|
)
|
|
(1,018
|
)
|
|
554
|
|
|
(a)
|
||||
|
Income tax effect
|
|
(56
|
)
|
|
331
|
|
|
423
|
|
|
(89
|
)
|
|
Income tax expense
|
|||||
|
|
|
|
387
|
|
|
(256
|
)
|
|
(595
|
)
|
|
465
|
|
|
(a)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Marketable securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net realized gain on sale of securities
|
|
1,388
|
|
|
3,745
|
|
|
8,757
|
|
|
8,230
|
|
|
Investment and interest income, net
|
|||||
|
|
|
|
1,388
|
|
|
3,745
|
|
|
8,757
|
|
|
8,230
|
|
|
Income before income taxes
|
||||
|
Income tax effect
|
|
(275
|
)
|
|
(748
|
)
|
|
(1,704
|
)
|
|
(1,565
|
)
|
|
Income tax expense
|
|||||
|
|
|
|
1,113
|
|
|
2,997
|
|
|
7,053
|
|
|
6,665
|
|
|
Net income
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loss on cash flow hedge:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Amortization of loss
|
|
(122
|
)
|
|
(114
|
)
|
|
(475
|
)
|
|
(445
|
)
|
|
Interest on long-term debt and revolving credit facility
|
|||||
|
|
|
|
(122
|
)
|
|
(114
|
)
|
|
(475
|
)
|
|
(445
|
)
|
|
Income before income taxes
|
||||
|
Income tax effect
|
|
82
|
|
|
72
|
|
|
213
|
|
|
194
|
|
|
Income tax expense
|
|||||
|
|
|
|
(40
|
)
|
|
(42
|
)
|
|
(262
|
)
|
|
(251
|
)
|
|
Net income
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total reclassifications
|
|
$
|
1,460
|
|
|
$
|
2,699
|
|
|
$
|
6,196
|
|
|
$
|
6,879
|
|
|
|
|
|
|
|
10
|
|
|
11
|
|
|
12
|
|
|
13
|
|
|
14
|
|
|
15
|
|
Basic and Diluted Earnings Per Share
. The basic and diluted earnings per share are presented below (in thousands except for share data):
|
|||||||||||||||
|
Three Months Ended March 31,
|
|
Twelve Months Ended March 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic number of common shares outstanding
|
40,325,324
|
|
|
40,243,199
|
|
|
40,295,316
|
|
|
40,214,198
|
|
||||
Dilutive effect of unvested performance awards
|
—
|
|
|
23,475
|
|
|
36,824
|
|
|
26,595
|
|
||||
Diluted number of common shares outstanding
|
40,325,324
|
|
|
40,266,674
|
|
|
40,332,140
|
|
|
40,240,793
|
|
||||
Basic net income (loss) per common share:
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
$
|
(5,808
|
)
|
|
$
|
3,458
|
|
|
$
|
72,652
|
|
|
$
|
90,271
|
|
Income allocated to participating restricted stock
|
(32
|
)
|
|
(33
|
)
|
|
(209
|
)
|
|
(289
|
)
|
||||
Net income (loss) available to common shareholders
|
$
|
(5,840
|
)
|
|
$
|
3,425
|
|
|
$
|
72,443
|
|
|
$
|
89,982
|
|
Diluted net income (loss) per common share:
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
$
|
(5,808
|
)
|
|
$
|
3,458
|
|
|
$
|
72,652
|
|
|
$
|
90,271
|
|
Income reallocated to participating restricted stock
|
(32
|
)
|
|
(33
|
)
|
|
(209
|
)
|
|
(289
|
)
|
||||
Net income (loss) available to common shareholders
|
$
|
(5,840
|
)
|
|
$
|
3,425
|
|
|
$
|
72,443
|
|
|
$
|
89,982
|
|
Basic net income (loss) per common share:
|
|
|
|
|
|
|
|
||||||||
Distributed earnings
|
$
|
0.295
|
|
|
$
|
0.28
|
|
|
$
|
1.18
|
|
|
$
|
1.12
|
|
Undistributed earnings (losses)
|
(0.435
|
)
|
|
(0.19
|
)
|
|
0.62
|
|
|
1.12
|
|
||||
Basic net income (loss) per common share
|
$
|
(0.140
|
)
|
|
$
|
0.09
|
|
|
$
|
1.80
|
|
|
$
|
2.24
|
|
Diluted net income (loss) per common share:
|
|
|
|
|
|
|
|
||||||||
Distributed earnings
|
$
|
0.295
|
|
|
$
|
0.28
|
|
|
$
|
1.18
|
|
|
$
|
1.12
|
|
Undistributed earnings (losses)
|
(0.435
|
)
|
|
(0.19
|
)
|
|
0.62
|
|
|
1.12
|
|
||||
Diluted net income (loss) per common share
|
$
|
(0.140
|
)
|
|
$
|
0.09
|
|
|
$
|
1.80
|
|
|
$
|
2.24
|
|
(a)
|
Certain performance shares were excluded from the computation of diluted earnings per share as
no
payouts would have been required based upon performance at the end of each corresponding period.
|
|
16
|
|
|
17
|
|
|
18
|
|
|
19
|
|
|
20
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Components of net periodic benefit cost:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
1,905
|
|
|
$
|
2,100
|
|
|
$
|
8,597
|
|
|
$
|
8,514
|
|
Interest cost
|
3,265
|
|
|
3,625
|
|
|
14,135
|
|
|
14,797
|
|
||||
Expected return on plan assets
|
(4,712
|
)
|
|
(4,947
|
)
|
|
(19,560
|
)
|
|
(18,966
|
)
|
||||
Amortization of:
|
|
|
|
|
|
|
|
||||||||
Net loss
|
1,888
|
|
|
2,750
|
|
|
9,785
|
|
|
9,830
|
|
||||
Prior service benefit
|
(878
|
)
|
|
(888
|
)
|
|
(3,496
|
)
|
|
(3,535
|
)
|
||||
Net periodic benefit cost
|
$
|
1,468
|
|
|
$
|
2,640
|
|
|
$
|
9,461
|
|
|
$
|
10,640
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Components of net periodic benefit cost:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
715
|
|
|
$
|
875
|
|
|
$
|
3,294
|
|
|
$
|
3,020
|
|
Interest cost
|
873
|
|
|
1,025
|
|
|
3,883
|
|
|
4,363
|
|
||||
Expected return on plan assets
|
(460
|
)
|
|
(525
|
)
|
|
(2,005
|
)
|
|
(2,116
|
)
|
||||
Amortization of:
|
|
|
|
|
|
|
|
||||||||
Prior service benefit
|
(788
|
)
|
|
(775
|
)
|
|
(3,081
|
)
|
|
(4,328
|
)
|
||||
Net gain
|
(665
|
)
|
|
(500
|
)
|
|
(2,190
|
)
|
|
(2,521
|
)
|
||||
Net periodic benefit cost (benefit)
|
$
|
(325
|
)
|
|
$
|
100
|
|
|
$
|
(99
|
)
|
|
$
|
(1,582
|
)
|
|
21
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
|
Carrying
Amount (1)
|
|
Estimated
Fair
Value
|
|
Carrying
Amount (1)
|
|
Estimated
Fair
Value
|
||||||||
Pollution Control Bonds
|
$
|
190,568
|
|
|
$
|
212,123
|
|
|
$
|
190,499
|
|
|
$
|
212,624
|
|
Senior Notes
|
993,195
|
|
|
1,159,850
|
|
|
837,475
|
|
|
829,864
|
|
||||
RGRT Senior Notes (2)
|
94,686
|
|
|
101,190
|
|
|
94,686
|
|
|
100,345
|
|
||||
RCF (2)
|
87,050
|
|
|
87,050
|
|
|
141,738
|
|
|
141,738
|
|
||||
Total
|
$
|
1,365,499
|
|
|
$
|
1,560,213
|
|
|
$
|
1,264,398
|
|
|
$
|
1,284,571
|
|
(1)
|
The Company implemented ASU 2015-03, Interest - Imputation of Interest, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years.The impact of ASU 2015-03 on the Company's balance sheet was to reclassify
$11.6 million
of other deferred charges to long-term debt, net of current portion at December 31, 2015.
|
(2)
|
Nuclear fuel financing, as of
March 31, 2016
and
December 31, 2015
, is funded through the
$95 million
RGRT Senior Notes and
$37.1 million
and
$33.7 million
, respectively under the RCF. As of
March 31, 2016
,
$50.0 million
was outstanding under the RCF for working capital or general corporate purposes. As of
December 31, 2015
,
$108.0 million
was outstanding under the RCF for working capital or general corporate purposes. The interest rate on the Company's borrowings under the RCF is reset throughout the quarter reflecting c
urrent market rates. Consequently, the carrying value approximates fair value.
|
|
March 31, 2016
|
||||||||||||||||||||||
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
Description of Securities
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal Agency Mortgage Backed Securities
|
$
|
996
|
|
|
$
|
(2
|
)
|
|
$
|
1,109
|
|
|
$
|
(23
|
)
|
|
$
|
2,105
|
|
|
$
|
(25
|
)
|
U.S. Government Bonds
|
8,656
|
|
|
(51
|
)
|
|
13,666
|
|
|
(501
|
)
|
|
22,322
|
|
|
(552
|
)
|
||||||
Municipal Obligations
|
3,569
|
|
|
(42
|
)
|
|
8,681
|
|
|
(513
|
)
|
|
12,250
|
|
|
(555
|
)
|
||||||
Corporate Obligations
|
3,128
|
|
|
(170
|
)
|
|
2,949
|
|
|
(276
|
)
|
|
6,077
|
|
|
(446
|
)
|
||||||
Total Debt Securities
|
16,349
|
|
|
(265
|
)
|
|
26,405
|
|
|
(1,313
|
)
|
|
42,754
|
|
|
(1,578
|
)
|
||||||
Common Stock
|
3,441
|
|
|
(620
|
)
|
|
—
|
|
|
—
|
|
|
3,441
|
|
|
(620
|
)
|
||||||
Institutional Equity Funds-International Equity
|
21,856
|
|
|
(1,321
|
)
|
|
—
|
|
|
—
|
|
|
21,856
|
|
|
(1,321
|
)
|
||||||
Total Temporarily Impaired Securities
|
$
|
41,646
|
|
|
$
|
(2,206
|
)
|
|
$
|
26,405
|
|
|
$
|
(1,313
|
)
|
|
$
|
68,051
|
|
|
$
|
(3,519
|
)
|
(1)
|
Includes
105
securities.
|
|
22
|
|
|
December 31, 2015
|
||||||||||||||||||||||
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
Description of Securities
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal Agency Mortgage Backed Securities
|
$
|
9,383
|
|
|
$
|
(97
|
)
|
|
$
|
1,113
|
|
|
$
|
(47
|
)
|
|
$
|
10,496
|
|
|
$
|
(144
|
)
|
U.S. Government Bonds
|
24,094
|
|
|
(310
|
)
|
|
14,272
|
|
|
(623
|
)
|
|
38,366
|
|
|
(933
|
)
|
||||||
Municipal Obligations
|
8,286
|
|
|
(160
|
)
|
|
7,388
|
|
|
(446
|
)
|
|
15,674
|
|
|
(606
|
)
|
||||||
Corporate Obligations
|
6,058
|
|
|
(722
|
)
|
|
2,307
|
|
|
(228
|
)
|
|
8,365
|
|
|
(950
|
)
|
||||||
Total Debt Securities
|
47,821
|
|
|
(1,289
|
)
|
|
25,080
|
|
|
(1,344
|
)
|
|
72,901
|
|
|
(2,633
|
)
|
||||||
Common Stock
|
3,584
|
|
|
(344
|
)
|
|
—
|
|
|
—
|
|
|
3,584
|
|
|
(344
|
)
|
||||||
Institutional Equity Funds-International Equity
|
22,454
|
|
|
(768
|
)
|
|
—
|
|
|
—
|
|
|
22,454
|
|
|
(768
|
)
|
||||||
Total Temporarily Impaired Securities
|
$
|
73,859
|
|
|
$
|
(2,401
|
)
|
|
$
|
25,080
|
|
|
$
|
(1,344
|
)
|
|
$
|
98,939
|
|
|
$
|
(3,745
|
)
|
(2)
|
Includes
133
securities.
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Unrealized holding losses included in pre-tax income
|
$
|
(156
|
)
|
|
$
|
—
|
|
|
$
|
(494
|
)
|
|
$
|
—
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
|
Fair
Value
|
|
Unrealized
Gains
|
|
Fair
Value
|
|
Unrealized
Gains
|
||||||||
Description of Securities:
|
|
|
|
|
|
|
|
||||||||
Federal Agency Mortgage Backed Securities
|
$
|
17,633
|
|
|
$
|
621
|
|
|
$
|
9,589
|
|
|
$
|
438
|
|
U.S. Government Bonds
|
32,557
|
|
|
1,005
|
|
|
12,033
|
|
|
136
|
|
||||
Municipal Obligations
|
10,622
|
|
|
458
|
|
|
8,671
|
|
|
332
|
|
||||
Corporate Obligations
|
16,070
|
|
|
799
|
|
|
10,110
|
|
|
368
|
|
||||
Total Debt Securities
|
76,882
|
|
|
2,883
|
|
|
40,403
|
|
|
1,274
|
|
||||
Common Stock
|
68,928
|
|
|
35,675
|
|
|
72,636
|
|
|
37,001
|
|
||||
Equity Mutual Funds
|
23,764
|
|
|
382
|
|
|
18,853
|
|
|
91
|
|
||||
Cash and Cash Equivalents
|
6,065
|
|
|
—
|
|
|
8,204
|
|
|
—
|
|
||||
Total
|
$
|
175,639
|
|
|
$
|
38,940
|
|
|
$
|
140,096
|
|
|
$
|
38,366
|
|
|
23
|
|
|
Total
|
|
2016
|
|
2017
through 2020 |
|
2021 through 2025
|
|
2026 and Beyond
|
||||||||||
Municipal Debt Obligations
|
$
|
22,872
|
|
|
$
|
717
|
|
|
$
|
9,302
|
|
|
$
|
11,340
|
|
|
$
|
1,513
|
|
Corporate Debt Obligations
|
22,147
|
|
|
—
|
|
|
5,863
|
|
|
8,389
|
|
|
7,895
|
|
|||||
U.S. Government Bonds
|
54,879
|
|
|
3,413
|
|
|
25,654
|
|
|
14,189
|
|
|
11,623
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Proceeds from sales or maturities of available-for-sale securities
|
$
|
24,078
|
|
|
$
|
24,642
|
|
|
$
|
102,003
|
|
|
$
|
104,126
|
|
Gross realized gains included in pre-tax income
|
$
|
1,832
|
|
|
$
|
3,782
|
|
|
$
|
10,429
|
|
|
$
|
8,626
|
|
Gross realized losses included in pre-tax income
|
(288
|
)
|
|
(37
|
)
|
|
(1,178
|
)
|
|
(396
|
)
|
||||
Gross unrealized losses included in pre-tax income
|
(156
|
)
|
|
—
|
|
|
(494
|
)
|
|
—
|
|
||||
Net gains in pre-tax income
|
$
|
1,388
|
|
|
$
|
3,745
|
|
|
$
|
8,757
|
|
|
$
|
8,230
|
|
Net unrealized holding gains (losses) included in accumulated other comprehensive income
|
$
|
2,190
|
|
|
$
|
1,014
|
|
|
$
|
(1,730
|
)
|
|
$
|
10,843
|
|
Net gains reclassified out of accumulated other comprehensive income
|
(1,388
|
)
|
|
(3,745
|
)
|
|
(8,757
|
)
|
|
(8,230
|
)
|
||||
Net gains (losses) in other comprehensive income
|
$
|
802
|
|
|
$
|
(2,731
|
)
|
|
$
|
(10,487
|
)
|
|
$
|
2,613
|
|
•
|
Level 1 – Observable inputs that reflect quoted market prices for identical assets and liabilities in active markets. Financial assets utilizing Level 1 inputs include the nuclear decommissioning trust investments in active exchange-traded equity securities, mutual funds and U.S. Treasury securities that are in a highly liquid and active market.
|
•
|
Level 2 – Inputs other than quoted market prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Financial assets utilizing Level 2 inputs include the nuclear decommissioning trust investments in fixed income securities. The fair value of these financial instruments is based on evaluated prices that reflect observable market information, such as actual trade information of similar securities, adjusted for observable differences. The Institutional Funds are valued using the NAV provided by the administrator of the fund. The NAV price is quoted on a restrictive market although the underlying investments are traded on active markets.
|
|
24
|
|
•
|
Level 3 – Unobservable inputs using data that is not corroborated by market data and primarily based on internal Company analysis using models and various other analysis. Financial assets utilizing Level 3 inputs are the Company's investment in debt securities.
|
Description of Securities
|
Fair Value as of March 31, 2016
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Trading Securities:
|
|
|
|
|
|
|
|
||||||||
Investments in Debt Securities
|
$
|
1,515
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,515
|
|
Available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Government Bonds
|
$
|
54,879
|
|
|
$
|
54,879
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Federal Agency Mortgage Backed Securities
|
19,738
|
|
|
—
|
|
|
19,738
|
|
|
—
|
|
||||
Municipal Bonds
|
22,872
|
|
|
—
|
|
|
22,872
|
|
|
—
|
|
||||
Corporate Asset Backed Obligations
|
22,147
|
|
|
—
|
|
|
22,147
|
|
|
—
|
|
||||
Subtotal Debt Securities
|
119,636
|
|
|
54,879
|
|
|
64,757
|
|
|
—
|
|
||||
Common Stock
|
72,369
|
|
|
72,369
|
|
|
—
|
|
|
—
|
|
||||
Equity Mutual Funds
|
23,764
|
|
|
23,764
|
|
|
—
|
|
|
—
|
|
||||
Institutional Funds-International Equity (1)
|
21,856
|
|
|
|
|
|
|
|
|||||||
Cash and Cash Equivalents
|
6,065
|
|
|
6,065
|
|
|
—
|
|
|
—
|
|
||||
Total Available for Sale
|
$
|
243,690
|
|
|
$
|
157,077
|
|
|
$
|
64,757
|
|
|
$
|
—
|
|
Description of Securities
|
Fair Value as of December 31, 2015
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Trading Securities:
|
|
|
|
|
|
|
|
||||||||
Investments in Debt Securities
|
$
|
1,543
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,543
|
|
Available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Government Bonds
|
$
|
50,399
|
|
|
$
|
50,399
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Federal Agency Mortgage Backed Securities
|
20,085
|
|
|
—
|
|
|
20,085
|
|
|
—
|
|
||||
Municipal Bonds
|
24,345
|
|
|
—
|
|
|
24,345
|
|
|
—
|
|
||||
Corporate Asset Backed Obligations
|
18,475
|
|
|
—
|
|
|
18,475
|
|
|
—
|
|
||||
Subtotal Debt Securities
|
113,304
|
|
|
50,399
|
|
|
62,905
|
|
|
—
|
|
||||
Common Stock
|
76,220
|
|
|
76,220
|
|
|
—
|
|
|
—
|
|
||||
Equity Mutual Funds
|
18,853
|
|
|
18,853
|
|
|
—
|
|
|
—
|
|
||||
Institutional Funds-International Equity (1)
|
22,454
|
|
|
|
|
|
|
|
|||||||
Cash and Cash Equivalents
|
8,204
|
|
|
8,204
|
|
|
—
|
|
|
—
|
|
||||
Total Available for Sale
|
$
|
239,035
|
|
|
$
|
153,676
|
|
|
$
|
62,905
|
|
|
$
|
—
|
|
|
25
|
|
|
26
|
|
|
27
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
capital expenditures,
|
•
|
earnings,
|
•
|
liquidity and capital resources,
|
•
|
ratemaking/regulatory matters,
|
•
|
litigation,
|
•
|
accounting matters,
|
•
|
possible corporate restructurings, acquisitions and dispositions,
|
•
|
compliance with debt and other restrictive covenants,
|
•
|
interest rates and dividends,
|
•
|
environmental matters,
|
•
|
nuclear operations, and
|
•
|
the overall economy of our service area.
|
•
|
actions of our regulators,
|
•
|
our ability to fully and timely recover our costs and earn a reasonable rate of return on our invested capital through the rates that we are permitted to charge,
|
•
|
rates, cost recovery mechanisms and other regulatory matters including the ability to recover fuel costs on a timely basis,
|
•
|
the ability of our operating partners to maintain plant operations and manage operation and maintenance costs at the Palo Verde and Four Corners plants, including costs to comply with any new or expanded regulatory or environmental requirements,
|
•
|
reductions in output at generation plants operated by us,
|
•
|
the size of our construction program and our ability to complete construction on budget and on time,
|
•
|
our reliance on significant customers,
|
•
|
the credit worthiness of our customers,
|
•
|
unscheduled outages of generating units including outages at Palo Verde,
|
•
|
changes in customers' demand for electricity as a result of energy efficiency initiatives and emerging competing services and technologies, including distributed generation,
|
•
|
individual customer groups, including distributed generation customers, may not pay their full cost of service, and other customers may or may not be required to pay the difference,
|
•
|
changes in, and the assumptions used for, retirement and other post-retirement benefit liability calculations, as well as actual and assumed investment returns on retirement and other post-retirement plan assets,
|
•
|
the impact of changing cost escalation and other assumptions on our nuclear decommissioning liability for Palo Verde, as well as actual and assumed investment returns on decommissioning trust fund assets,
|
•
|
disruptions in our transmission system, and in particular the lines that deliver power from our remote generating facilities,
|
•
|
electric utility deregulation or re-regulation,
|
•
|
regulated and competitive markets,
|
|
28
|
|
•
|
ongoing municipal, state and federal activities,
|
•
|
cuts in military spending or shutdowns of the federal government that reduce demand for our services from military and governmental customers,
|
•
|
political, legislative, judicial and regulatory developments,
|
•
|
homeland security considerations, including those associated with the U.S./Mexico border region and the energy industry,
|
•
|
changes in environmental laws and regulations and the enforcement or interpretation thereof, including those related to air, water or greenhouse gas emissions or other environmental matters,
|
•
|
economic and capital market conditions,
|
•
|
changes in accounting requirements and other accounting matters,
|
•
|
changing weather trends and the impact of severe weather conditions,
|
•
|
possible physical or cyber attacks, intrusions or other catastrophic events,
|
•
|
the impact of lawsuits against us,
|
•
|
the impact of changes in interest rates,
|
•
|
Texas, New Mexico and electric industry utility service reliability standards,
|
•
|
coal, uranium, natural gas, oil and wholesale electricity prices and availability,
|
•
|
possible income tax and interest payments as a result of audit adjustments proposed by the Internal Revenue Service or state taxing authorities,
|
•
|
the impact of U.S. health care reform legislation,
|
•
|
loss of key personnel, our ability to recruit and retain qualified employees and our ability to successfully implement succession planning, and
|
•
|
other circumstances affecting anticipated operations, sales and costs.
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income (loss) (in thousands)
|
$
|
(5,808
|
)
|
|
$
|
3,458
|
|
|
$
|
72,652
|
|
|
$
|
90,271
|
|
Basic earnings (loss) per share
|
(0.14
|
)
|
|
0.09
|
|
|
1.80
|
|
|
2.24
|
|
|
29
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||
March 31, 2015 net income
|
|
$
|
3,458
|
|
|
$
|
90,271
|
|
Change in (net of tax):
|
|
|
|
|
||||
Decreased allowance for funds used during construction (a)
|
|
(2,564
|
)
|
|
(9,495
|
)
|
||
Increased operation and maintenance at fossil-fuel generating plants (b)
|
|
(2,062
|
)
|
|
(2,284
|
)
|
||
(Decreased) increased investment and interest income (c)
|
|
(1,865
|
)
|
|
429
|
|
||
Increased depreciation and amortization (d)
|
|
(1,123
|
)
|
|
(4,689
|
)
|
||
Deregulated Palo Verde Unit 3 (e)
|
|
(624
|
)
|
|
(3,270
|
)
|
||
Increased administrative and general expense (f)
|
|
(476
|
)
|
|
(2,886
|
)
|
||
Increased interest on long-term debt (g)
|
|
(76
|
)
|
|
(3,273
|
)
|
||
Palo Verde performance rewards, net (h)
|
|
—
|
|
|
(1,415
|
)
|
||
Increased retail non-fuel base revenues (i)
|
|
624
|
|
|
9,448
|
|
||
Other
|
|
(1,100
|
)
|
|
(184
|
)
|
||
March 31, 2016 net income (loss)
|
|
$
|
(5,808
|
)
|
|
$
|
72,652
|
|
(a)
|
AFUDC decreased for the three and twelve months ended March 31, 2016 compared to the same periods last year due to lower balances of construction work in progress ("CWIP"), primarily due to MPS Units 1 and 2 and the EOC being placed in service in March 2015 and a reduction in the AFUDC accrual rates. This decrease was partially offset by the AFUDC earned on construction costs related to MPS Units 3 and 4.
|
(b)
|
Operations and maintenance ("O&M") expenses at our fossil fuel generating plants increased for the three months ended March 31, 2016 compared to the same period last year, primarily due to (i) maintenance outages on Four Corners Units 5 and Rio Grande Unit 7 compared to a reduced level of maintenance outage costs during first quarter 2015 and (ii) O&M expenses at MPS in first quarter 2016 compared to first quarter 2015.
|
(c)
|
Investment and interest income decreased for the three months ended March 31, 2016 compared to the same period last year primarily due to lower realized gains on securities sold from our Palo Verde decommissioning trust in first quarter 2016 compared to first quarter 2015.
|
(d)
|
Depreciation and amortization increased for the three and twelve months ended March 31, 2016, compared to the same periods last year primarily due to an increase in depreciable plant, primarily due to MPS Units 1 and 2, and the EOC being placed in service in March 2015, partially offset by a change in the estimated useful life of certain intangible software assets.
|
(e)
|
Deregulated Palo Verde Unit 3 revenues decreased primarily due to (i) 16.9% and 20.8%, respectively, decreases in proxy market prices for the three and twelve months ended March 31, 2016 as compared to the same periods last year, reflecting a decline in the price of natural gas and (ii) a decrease in generation for the twelve months ended March 31, 2016 due to a scheduled 2015 spring refueling outage that was completed in May 2015.
|
(f)
|
Administrative and general expenses increased for the three months ended March 31, 2016, compared to the same period last year primarily due to increased (i) outside service costs as a result of increased information technology consulting and system maintenance and (ii) regulatory expense due to the 2015 New Mexico rate case. These increases were partially offset by decreased benefit costs due to a change in actuarial assumptions used to calculate our post-retirement employee benefit plans.
|
|
30
|
|
(g)
|
Interest on long-term debt increased for the twelve months ended March 31, 2016 compared to the same period last year due to interest on the $150 million of 5.00% senior notes issued in December 2014.
|
(h)
|
Recognition of the Palo Verde performance rewards in the second quarter of 2014 associated with the 2009 to 2012 performance periods, net of disallowed fuel and purchased power costs related to the resolution of the Texas fuel reconciliation proceeding designated as PUCT Docket No. 41852.
|
(i)
|
Retail non-fuel base revenues increased for the three months ended March 31, 2016 compared to the same period last year primarily due to increased revenues from our residential customers primarily due to increased kWh sales that resulted from an increase in average number of customers.
|
|
31
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||||
|
|
|
10-Year
|
|
|
|
10-Year
|
||||||||||
|
2016
|
|
2015
|
|
Average
|
|
2016
|
|
2015
|
|
Average*
|
||||||
Heating degree days
|
1,054
|
|
|
1,153
|
|
|
1,183
|
|
|
1,996
|
|
|
2,095
|
|
|
2,174
|
|
Cooling degree days
|
23
|
|
|
34
|
|
|
30
|
|
|
2,828
|
|
|
2,680
|
|
|
2,696
|
|
|
32
|
|
|
33
|
|
(1)
|
Includes the portion of DOE refunds related to spent fuel storage of $1.6 million and $5.8 million in 2016 and 2015, respectively, that were credited to customers through the applicable fuel adjustment clauses.
|
(2)
|
Includes deregulated Palo Verde Unit 3 revenues for the New Mexico jurisdiction of $2.2 million and $3.1 million in 2016 and 2015, respectively.
|
(3)
|
Represents revenues with no related kWh sales.
|
(4)
|
The number of retail customers is based on the number of service locations.
|
|
34
|
|
(1)
|
2016 includes the portion of a DOE refund related to spent fuel storage of $1.6 million that was credited to customers through the applicable fuel adjustment clause. 2015 includes the portion of two DOE refunds related to spent fuel which totaled $13.7 million offset in part by $2.2 million related to Palo Verde performance rewards, net.
|
|
35
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||
Fuel Type
|
Cost
|
|
MWh
|
|
Cost per
MWh
|
|
Cost
|
|
MWh
|
|
Cost per
MWh
|
||||||||||
|
(in thousands)
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
||||||||||
Natural gas
|
$
|
21,136
|
|
|
637,430
|
|
|
$
|
33.16
|
|
|
$
|
28,748
|
|
|
668,575
|
|
|
$
|
43.00
|
|
Coal
|
2,635
|
|
|
81,006
|
|
|
32.53
|
|
|
3,116
|
|
|
137,218
|
|
|
22.71
|
|
||||
Nuclear
|
10,548
|
|
(a)
|
1,380,497
|
|
|
8.94
|
|
|
5,865
|
|
(a)
|
1,362,194
|
|
|
9.01
|
|
||||
Total
|
34,319
|
|
|
2,098,933
|
|
|
17.20
|
|
|
37,729
|
|
|
2,167,987
|
|
|
20.36
|
|
||||
Purchased power:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Photovoltaic
|
5,508
|
|
|
67,764
|
|
|
81.28
|
|
|
4,803
|
|
|
59,059
|
|
|
81.33
|
|
||||
Other
|
4,138
|
|
|
205,157
|
|
|
20.17
|
|
|
6,372
|
|
|
241,713
|
|
|
26.36
|
|
||||
Total purchased power
|
9,646
|
|
|
272,921
|
|
|
35.34
|
|
|
11,175
|
|
|
300,772
|
|
|
37.15
|
|
||||
Total energy
|
$
|
43,965
|
|
|
2,371,854
|
|
|
19.30
|
|
|
$
|
48,904
|
|
|
2,468,759
|
|
|
22.40
|
|
|
Twelve Months Ended March 31,
|
||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||
Fuel Type
|
Cost
|
|
MWh
|
|
Cost per
MWh
|
|
Cost
|
|
MWh
|
|
Cost per
MWh
|
||||||||||
|
(in thousands)
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
||||||||||
Natural gas
|
$
|
126,749
|
|
|
3,759,514
|
|
|
$
|
33.71
|
|
|
$
|
190,004
|
|
|
3,875,040
|
|
|
$
|
49.03
|
|
Coal
|
13,432
|
|
|
601,532
|
|
|
22.33
|
|
|
13,031
|
|
|
599,234
|
|
|
21.75
|
|
||||
Nuclear
|
44,809
|
|
(a)
|
5,154,989
|
|
|
9.04
|
|
|
34,113
|
|
(b)
|
5,104,785
|
|
|
9.61
|
|
||||
Total
|
184,990
|
|
|
9,516,035
|
|
|
19.63
|
|
|
237,148
|
|
|
9,579,059
|
|
|
26.32
|
|
||||
Purchased power:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Photovoltaic
|
23,200
|
|
|
285,946
|
|
|
81.13
|
|
|
21,173
|
|
|
258,239
|
|
|
81.99
|
|
||||
Other
|
28,816
|
|
|
1,077,149
|
|
|
26.75
|
|
|
36,891
|
|
|
1,070,906
|
|
|
35.42
|
|
||||
Total purchased power
|
52,016
|
|
|
1,363,095
|
|
|
38.16
|
|
|
58,064
|
|
|
1,329,145
|
|
|
44.47
|
|
||||
Total energy
|
$
|
237,006
|
|
|
10,879,130
|
|
|
21.95
|
|
|
$
|
295,212
|
|
|
10,908,204
|
|
|
28.53
|
|
|
36
|
|
|
37
|
|
|
38
|
|
|
39
|
|
|
40
|
|
|
41
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
|
42
|
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
(c)
|
Issuer Purchases of Equity Securities.
|
Period
|
|
Total
Number
of Shares
Purchased
|
|
Average Price
Paid per Share
(Including
Commissions)
|
|
Total
Number of
Shares
Purchased as
Part of a
Publicly
Announced
Program
|
|
Maximum
Number of
Shares that May
Yet Be Purchased
Under the Plans
or Programs
|
||||
January 1 to January 31, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
393,816
|
|
February 1 to February 29, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
393,816
|
|
March 1 to March 31, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
393,816
|
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
|
43
|
|
|
|
|
EL PASO ELECTRIC COMPANY
|
|
|
By:
|
/s/ NATHAN T. HIRSCHI
|
|
Nathan T. Hirschi
|
|
Senior Vice President - Chief Financial Officer
|
|
(Duly Authorized Officer and Principal Financial Officer)
|
|
44
|
|
|
|
|
|
Exhibit
Number
|
|
Exhibit
|
|
|
|
|
|
|
|
|
|
4.01
|
|
|
Securities Resolution No. 5, dated March 24, 2016, relating to the Company's 5.000% Senior Notes due 2044. (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated March 21, 2016)
|
|
|
|
|
15
|
|
|
Letter re Unaudited Interim Financial Information
|
|
|
|
|
31.01
|
|
|
Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
32.01
|
|
|
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
101.INS
|
|
|
XBRL Instance Document
|
|
|
|
|
101.SCH
|
|
|
XBRL Taxonomy Extension Schema Linkbase Document
|
|
|
|
|
101.CAL
|
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
101.DEF
|
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
101.LAB
|
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
101.PRE
|
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
45
|
|
1 Year Excelerate Energy Chart |
1 Month Excelerate Energy Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions