ML20010B413
| ML20010B413 | |
| Person / Time | |
|---|---|
| Site: | Bailly |
| Issue date: | 08/06/1981 |
| From: | Eichhorn W EICHHORN, EICHHORN & LINK |
| To: | Vollen R AFFILIATION NOT ASSIGNED |
| References | |
| NUDOCS 8108140452 | |
| Download: ML20010B413 (6) | |
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4 ElCMHORN, EXCHHORN & LINK ATTOMNEYS AT law racocnica r.cicwwonn,sm.
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August 6, 1981 MAURE EN JoMN5 GRIMMER i
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Mr. Robert J. Vollen Qy*D D
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p c/o BPI 109 Norto Dearborn Street 4
g Suite 1300 tn Chicago, Illinois 60602 a
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In the Matter of Northern Indiana Public Sep dce gI k [/ [A g q
Re:
Company (Bailly Generr.ing Station, Nuclear L.U Docket No. 50-367 (Construction Permit Extension)
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Dear Mr. Vollen:
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The news reports to which you refer in your August 3, 8r / tt to me were not based upon release of new financial repor
_.1 Northern Indiana Public Service Company (NIPSCO) but rather a press release issued on Friday, July 31, 1981., A copy of that press release is enclosed.
The qualified audit report referred to in the press release will appear in NIPSCO's 10-0 report to the Securities & Exchange Commission.
That report will be submitted to the Securities & Exchange Commission shortly and a copy of it will be made available to you on or.before August 31, 1981, when other discovery requests are updated.
Yours very truly, EICilllORN, EICHHORN & LINK
/
By:
~ichhorn William 11.
E WHE/dgg D503 Enclosure cc:
Service List f
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TSEEOO@O NORTHERN INDIANA PUBLIC SERVICE COMPANY / 5265 HOHMAN AVENUE /HAMMOND, INDIANA 46320/(219) 853-5200 NIPSCO EARNINGS IMPROVE BUT R ATE RELIEF NECESSARY i
HAMMOND, Ind. -- Edmund A. Schroer, chairman and
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chief executive officer of Northern Indiana Public Service Company,
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today (Friday, July 31, 1981) reported that audited figures for the a
second quarter ended June 30,1981, indicate that net income totaled U
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$25. 9 million compared to $19. 7 million for the thrcs-month period ch ended June 30, 1980.
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Earnings per average common share outstanding in the second quarter reached 49 cents compared to 43 cents per average O(
common share outstanding during the same quarter of the previous W
d year.
H For the first six months of 1981, earnings per average common e
y share totaled $1. 38 compared to $1. 08 per average common share s
during the corresponding period in 1980.
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"These improved second quarter and first half results,"
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Schroer said, " reflect increased gas and electric demand by our major industrial customers, reduced purchased power costs, lowe r maintenance expense, compared to the first half of 1980, and the O
O positive impact o.f last year's electric rate increase.
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.s Pago two "Despite this improvement, " Schroer noted, "recent indicators suggest a moderation in industrial activity durir.g the third quarter, traditionally the weakest production period for our steel and steel-related customers. Furthermore,1981 figures are being compared to depressed 1980 results which were adversely affected by double-digit inflation and a general economic recession.
"While we are encouraged by these first half figures," Schroer continued, "it should be understood that earnings remain at levels substantially below those needed to attract capital (currently about a 16 percent return on en,uity) at favorable rates in today's highly com-petitive national and international money markets. Dividends have not been increased from an annual rate of $1. 50 per share since 1977.
"The necessity c' receiving rate relief in accc,ilance with our February 23,1981, petition to the Public Service Commission of Mdiana has been clearly demonstrated, " the utility chairman said. "Hea rings on the Company's request for a 13. 3 percent electric rate increase concluded July 6,1981.
Earnings per average common share for the 12 month period ended June 30,1981, increased to $1. 84 from $1. 54 for the same period in 1980, with approximately 6. 3 million more evtrage common shares outs tanding.
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Page three The utility chairman also reported that as a result of a July 1 de. cision of the U. S. Court of Appeals for the District of Columbia directing the Nuclear Regulatory Commission (NRC) to include the Bailly Nuclear One pile-depth question in the pending coastruction permit extension proceeding and a July 10 PRC denial of the Company's request to begin hearings on the construction permit extension on September 15,1981, it is becoming increasingly difficult to plan to achieve commercial operation of Bailly Nuclear One in 1989.
Schroer said, "The Company recognizes that if political and emotional factors, litigation delays, regulatory delays and other hostility result in making the 1989 operation date unachievable, construction of Bailly Nuclear One may have to be terminated.
In view of this fact, our outside auditors, Arthur Andersen & Co.,
have qualified their audit report, covering our June 30, 1981, financial statements, subject to tus successful resolution of current outstanding issues," the utility chcirman concluded.
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Pego four EARNINGS
SUMMARY
FOR 3 MONTHS, 6 MONTHS, AND 12 MONTHS ENDED JUNE 30, 1981 3 MONTHS ENDED JUNE 30 1981 1980 Total Operating Revenues
$365,075,218
$300,279,373 Net Income
$ 25,919,432
$ 19,749,513 Preferred and Preference Stock Dividend Requirements
$ 4,945,598
,4,316,537 Balance for Common
$ 20,973,834 9 15,432,976 Earnings per Common Share
$ 0.49 0.43 Average Common Shares Outstanding 42,797,931 35,891,979 Dividends per Common Share
$ 0.37-1/2 0.37-1/2 6 MONTHS ENDED JUNE 30 Total Operating Revenues
$83 8,5 65,115
$ 721,562,965 Net Income
$ 67,288,411
$ 46,913,808 Preferred and Preference Stock Dividend Requirements 9,215,570 8,633,072 Balance for Common
$ 58,072,841
$ 38,280,736 Earnings per Common Share 1.38 1.06 Average Common Shares Outstanding 42,044,633 35,585,637 Dividende per Common Share 0.75 0.75
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' Pago five EARNINGS
SUMMARY
FOR 3 MONTHS, 6 MONTHS, AND 12 MONTHS ENDED JUNE 30, 1981 12 MONTHS
- DED JUNE 30 1981 1980 Total Operating Revenues
$1,483,926,551
$1, 299, 921, 554 Net Income 92,605,004 70,155,809 Preferred and Preference Stock Dividend Requirements 17,786,047 17,275,968 Balance for Common 74,818,957 52,879,841 Earnings per Common Share 1.84 1.54 Average Common Shares Outstanding 40,637,560 34,333,452 Dividends per Common Share 1.50 1.50 f
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