ML20082Q185
| ML20082Q185 | |
| Person / Time | |
|---|---|
| Site: | South Texas  |
| Issue date: | 12/31/1990 |
| From: | HOUSTON LIGHTING & POWER CO. |
| To: | |
| Shared Package | |
| ML20082Q163 | List: |
| References | |
| NUDOCS 9109110290 | |
| Download: ML20082Q185 (468) | |
Text
', , , /, }'..
~'3,(* .t / , . [
I'.'., - '
~
',.I ' ', !
, . f'l "
' ' '*' _ '[.f .b . ,.
- 4 , . ., _
c
- 3
. ? ,' , .'
'l ' l
, . ; *.'.- . . . . . n . . .f. ' - l. l :,, **. .* .:' ' , a'. Y , . k -
- 'l>...! **..* M' '
- ~-l.'\ . ll
. e : ~ . ..> _ .. a ? . .
,~m , ,; .:- . :.g r' p. : .,.< - .x <
k> . . _ a..
'*-). a,..;.' } :.
,j j ? ,I # l;
'['.,'.*
,# *[ ' ' '
2.. - .- , ,l' j ' ' . ;a ._.2, , [ [ )' V,. ' ;. -* g- ,'[,
-]' .;' :o [
., ,.;j .
,*s.
,e
' . .: * - 4 ,. '; ' . .
,s'
.. . ,; . s . ' ' . ' f.','_.l_;=',
.j,~,,,;,- - .. - ...
- .-.9
. . . '. 2, '!'
.. =g } . . . ,
'K.
. s, ._
,% *g.
q.,
l - ; , . . . _ , d,e i ;, ; , ..; ,- ; * -
,c * - <.
- ' ,.'. - ,.' ' . _. [ .T
.L /;; .) , :'. .-.'i
- ' ;,e,'.;. ',.b* ,' -~ .__..Y y ' _ , . . :y.~ :.~ : ',V;
- '~ ' . '_, .,;_ %* '
. .,; v.. _, ' , ;s_ . : Y ~. '.* ,'. . : * ._ ; ,'i Q ;
,l. .' .%&,.'.'*'~l~.*} , ' . '-- .' .f:- 'r }
.. p'
.' ._: *. , ..G . ..
, ' ' < ; , l ' . , - '7.l [ . . ; . . . -: ,,, ,.; ' - :
.q. .y; ;;- .;';,_,~a
,..v. 3
. _ . l: s. y .
_; _. _ . _, . , 7 4.
.Tc . , . + - : ;I
- , ~.:.
.;...,.s i.
.e .
.. y.
- 1. ;
.s
'_ ., .:' , _ . .... ....o' , .-
. .. ;,. ..-.. . . . ,:.~..';......-. s ; .,:
)
A q ,,
v..,...' . ., .
.. ? ; . .,;. . ..*.q... :. . , .
~.,:,,; c.
-.e -
- ,. 4. . ' .; '. .4 ; . -
.s,-
- . ..)'"...~.;
.p
'.; c
..:,.'+R..,,.,,.7
.y
., .,,' .- . .',.j.. .,.-'.n,..:
. ' ' .* . . ;. i., . . *,;;. ~. , , ,... . . . ...., . L. .%.. ;7 [. ' .:.. .7, %.
- ,c...;
, c,,,,;
.. .: .;, e .
i,,
,g
,.... ... . s. A.. ,;......-:. _ s.. . , . c.<)* .,;,,...
v
. . .,. ; . . , -;... , r _. .r ?. , , e. :. ...
- . . ,1 n.
- f. . . > . ; ; . .,.
. g,
. . : c... . .. ; y, : ..o
. y ;. ' .
+.
- 1. , . y . , - .. . , ..' .
' ';. r; ,.
. :,. *.. *l . ^ .s
.' .' ^: % -
- . . . -Q,_ ~-i
- .:: ;. ... ~.. ..'(,*- $ ' ' ' ::. : r ', ' [ "; .'.' .-
. .. . . . ..j- _
- h. ' ..[..,
_ ' ] ; .l '*';:: .s l%'. g . ._ ^ : .. t 7f ' -
~ ..; .{ '. 'y: a " s.
':,. l I ,I
. f : ' m . . . ; .':, ,i .zi '::: ( . l . ;1 '; }; ' .l' .? : . : ." " ...l':' ;,? i
- .f { .N ? .{
- $ , . Y.? '. ? "; . {. ' ' *,"' ' ' i '. ' .lI' ' E. . t . ; . .* . .~'. {, *
- d* ].- ' . ' - :.f- .
-' / [e. t. . 3 , . ( '.. . 3( ; .
,-. " ' -. - , ,3 . . f.,.f
. .. J . . , '. ; [ : ((. , .. , ' -(c h ' J,' , ',.I.,... .3 .f (
- . , ,. . . .. . , g ..s. . . . .
.. u
.:.;g. . .9 y- .v, 7 -.. ... .;y.-,: f.,.,9,. .~., p. .,":,_._,g; . L,. . . : e. ...: . -:p 3 : s.ie, .. - ..-, . .; ;;.y.4. .;: _ . it, ..l..
. , ,,c,r; < ; . ;s .
n ; 3. . . .. ; . .,; t. .... ,e _.3
- e p , . , 7. <,, <;. :,4..:
. . . , .. e.g . .-;- -
.... . s_ .....
. . . < .: . .?.. \ .
t ;,,..,. ,4,r. . g p.
. . . . .; ._ , . ~ .
.....a.-s ,
. . . . ." . . . , ..: . .,(. ;,,. ' .:.; ., .? 4 . t '.. ';. '. J<J.'.,p , ' ,*, ,', . ; ,4 : j..:^ . 7,J .-N'. '.. .;I lO.
>,.."2;:. ' ., '.-l..:'.: ; ta.!>.h.; . . .,'
.3
. .. .. , -. ' . ' ',. . , ... ;. .a .' *O ,..' :.$.; /., ...3c. :-. ..,.....:.'<*... .N
. , ,f.,....
. . , . .' - .- m.: -; c; y . n . . . . = . . .. . - . ; '
. ' . ' .n. ..
, i i ..;, . , ' ' .I n
...'.L R *j } : . ,... .' . ,' ' J,_
- ., ; )
- j;. :
.. s
- ., ..(.p,~ 3 '";,. 4.. ,-., , ;.
' l. .: }'[ . f. . [ .; ., , . , ; : .[ . . . M. ; . .
[. .f.'_,.,".,,.'
l ?. l5 , ..',..l., .
., ' . ' 9. O f \!.;. c ._ ,l ^ I . ' '
r . .'.- ,
1 ; ; .;',.. $..!Y r. w \ ,. .W, t' ',.} ;y-h, s. '.f
.., ?
. ' I ( - l. . . ,.^* . ': .' l , .
..n . .. . h .. : c r . .' ~'
l 0 i.', . ' .. . (- . ;. '
.], .,. .. . -
J' W,'..,:
t,. , ,' (;_l,. .
. : .,. 3) z . %*.,....
~
s - '
& . ;, ; ~. yv. t . u .g..- % ~ ..
~. ,.. "e . .: . .f. :Q. -..
^ -
- s. < .y . , .: Y> ;=( . ; 3 . ::.~.y ..).y ,:;. Q.l< W - : '. v . ..q;-
~.- ' ..,/.,.v.- . .'.s...: 7. : : - .: ! ._..,8,. :L. .y..' >*. }:c.g,Q f. l,.R '.h.:.: .m; g,
- . A, . ,. . . .. .,. . , -;,;'
~' : .
- .- +: :
e .,
' . * . _. . .. _.s..
.s
, e.;
c
.. m ... < :
. .-g, er.. .-
_.., .. . . , :,.,.,;_4,. .. ,. . . . ,
, *~. 8* ' s' .
w g(.;
- ..- A
. . m :;.'...,.,.. ;y. q:.s.3: . v . ~. :. . ..- L,a ... . . , .
, ;.*,._~i,>~.... ,..; ~ .~ .. - . . . . . ...-,: .
.. - . . . .. -s-
. .. . .- e.
..;. . r..a . L ': ..:g '
-- :: .n ' ,% > 6 . . men: - .
- . , - .;- ..?
..(,.
- . ;- .- ;.
- _; , ., t;
.. .., s
, ;. ;.L.
a,. .
y.s..o .- 1;. .-n.
~ -. . . . . .: . . . . .I ~s. .:e .:. : a.~
'-':.,.: y I.- , . _ _ z' ;3 ;. y,, ,_. ;.,..yl.
.::.:< *. . y . - ..; , ,.. f q '. :
. . ;. i . ..[ -
- . ,,
- _ y,._. ' a
...,y.p. . .R '.. ' ' :.
. L. . . - . .
- ^
f..i . i . ~ e . . .4);. y
, f'. .
. . ;; ; ' . ' . ' . 9: y .:. L, -,,, -} ::y; y ,* . ~ . . .:
- 2 . .c ; .. y,.- . ... . . ' ' . n y _ , . ',. i,. ~;~: A>[:. : ;r
. . .;p;.. i. ;;% .q..:4. ..y.m :y. ; q, ..: 9 (., . .; . 7 ..,,;:. . . u.-4 . . e,.v..w.;. - '.
. ; , ; , . , 7. ?m . ;; : >< s : . . y, . ; y ; n.;.: : .v .
-';[ _ ^ j ';> ', , , . ] , 4 . W d.;: .,s. ,', ;.. . , .A. . ,,i,.: { } . .; ' '* z[ ',' ; . f . e
- . ,f ? .s . *.
%s
- sv-Q :. l<. . ;*;' ,?. '.." . "^ '. , ;. , ^; ;. 7. ; ,3 ;. ., . .. .s g4 -' , i L;;,:e
.t
- + , ;; ,f;
- - ...-:n.. %t. :'.-l.,- ; } ,' y* ' . ,. 1 c - ' y: ~ {
. , . . . f .b G. . . ' ? , . '. . . Q._ :.g*,- ( g y~; ; ,.j. _ j ... . ' , ' p. ',4* . . ' . .
< ~ . . .: : '.. :. . v : -
. .' <l s . '; ':'. *;
.. y .}. f. ;. j ; . .; . _ . . ; :;- ,. ...;.. ' _ T '
- 3 .). ,_'; ,q.'
j
'~ .:- .. > -' {s ,;* . :' '..~s.
. ., .':l:..: . . ) ' . * .{1 .'.;* - Q *l^?
' ' . . ' . '- [. hog. . h ' ;b ' s &' "
'~~- *'c' ' . '
'C.'
' ' ^
' .: K . . . ' j ! -t E ; , ,
,i .
~.
,.t ' '. " . l J . , ;" i ?. < f..., , \', " 1; ..! 9, :
(. , . 3, ': ,;,. ; : " f , * .'.j 8 e' d ' ; ^. .; , gT ., ' ' / ' _/ ', 7. . . , : '. .
?f " l:y J .;-' _.. ,' l: . : l l ?,? . ~ , ' ' .i j ,'D
'! ? j.., ; , .f .; -)* -' \:d
..j? .4 ' , .f.:l..g ,;.. g,. . ') _
'c p') 494g .f. , . A . -y '.':' ,. ;cl '. N I it;'.. '~ .$ lf;f. y. l f , : ~.3.;- .
',N* , ,, i y O y
- d g .. ,.3 .
l ';, : i 4.h .;. ,-,. ,. 3 ',,r .%,{ ,* . ti, ' ;
' - .. - , l} . ,
p [ f ; , ,;, , ., J.*....,.._ .
. , ' . " , , } ;',
.c r- ; 3, . . /. , ,c. .. w ; .., j : a ,'- . %,,., , ;,,y,
, g( . , :l 3 , ; 7 . ..- . ;; . w. ; s .,3 8 3 y ;. : . j + : , j(. . g. c) g ,. . ., j.
fl.hs. , , . .f - f.
, . ._:? ;of k?!. $: '-
ppL, ? ,j: ;
R A g, $.,..,' : , ; * , 'lyl(I ;,
r... : . , '::) ..w _ - . . );. - '
, , , .; 2. _. j .; . : ' :f O';_,;.,.',_'.,... ._: ,; ;_ ; ,_ ; {, } :.,g. :. ' y; . ,.._ ,
_ ,; :. M i
.ab - i. .,; .
, < . . . %.; . , q.- . . ,. : g , 4 ' . '. c. , ' 7, f. .. 1 .' .
f,3.L..y,
.e- y . ,. .P c?
. ...,- L.v> -s -. ., .- ...
y; ..,$' . '.- a* :.
.; 4:.e . ) . t43,.1,. Q, ,.lLf.Jt0 c. .,.i. g. y. .R" , , ..A.,-, ...c. . p..-. .,.'...l.-
..; , r...3 ,...,). *t
. . .q,.... :. .e;:.,., . 3;,'j . .,, . q, ,:-.y, t, .. .. ;.' . ,.,,'.,c'"s
.-,..g,......i.c.- : ,.. . ' :.
- . . . - ,; 7. .- . <. '.; . ,s.y-.. , Q. .m , i+ y yw,s.. . , .+ ,,; ... x . .; w. ,
,. ,, ., T .
', pf, s .
.7,;. . .c , ,.\- . . w 7,.,; <
, . .~ . , '.
- .;;~.. ..
i
- .. 9. \ V _ .y / . "' -.. . 7 ..:. ., ff. gir .=:: 4, . +,@ .v.... ', .. ' : ' *,. . .
3_. , . . ,!. ; ; ".;.. :. ., .. : ; >:...;,,
-. - . '~ ..
_,, s g ...y.Q' !
?" '
l Y,l L V,g h, ;; l q,. ':;* [ y 1 ly : ( f '-lp{l;Y.l by,.S [\. ;, : O.* f. ,- .. },.'.fy. .._ :: _ ? 1S7. j i '.Y .[ *' . ll ;_.. :- ,,.j9 'k.
,,'.,,.,a k,..
- g#. .. .. ,4_ .-.,*.,t,
,c , ;. ..,T,e y ge ; g
- - u. P.-
. . , , . - ,, 3. ; ... .. . ... ,
,,...,.,1,1.,.*,
T.
". .,-.,.: t..r,> .- * .,S,
- e. , et . 's. g. A
.,..s.
t
, y. . >
s
,' - '.. g,
,,..,,p,. .,. '.
, '. c, ;(,
.,.. .M, g ,. .. f , y . . ,.,,, ,. rs> , . . . ' . ,p
,...c
.c ;, a. .,- , .. , , , . . , , ,* , . , -, , .
4 ..
.'.u.,.'g.. e. ";,
.s j'l . .
, , . ;; ., : .L.,.,..s.-J.
- .q.,.,.
. :.- - . . . ., ' ?-.p ?<g .i,..,...g g.- .'. +., ,.. 4
. . t .g :
-. . ss ; ~ r .1;.-:*
- f
.3.. . , . . . ,
..,-,4,, ,.,.;., . , . . .
- vc...-, , - .'.
.. f ai . , . . , i. ,s . . . . . .
. z. ,. , 7: .'t e n ..+.c . . '<' . .* ,. .: .
- e. .e;. . . . .;-........p p
4
,o
- . - .. . . . .. .* ( < . . .. h
.- ,....;*. , . . 1
-.v 1-g r* .i
'L.qll...'-v.
. :- ) ' :..
., ': ; ~ . . . (:4.i ' .^ ;: .s -L -l* ': . * -- & %'- - *' ' ' ' :'- '.- ~[ ;'l ?.;z ._.
'e l '. ' ,4 , ;, .' . . _ ; ._'_; .',f ' y; .
- Sl., t
- . 3 i \,s '
,. . ;., r ? ) '-.. 3 r . .
- t. . , .
3 .)
-' ; ^ ': . ,,
.; . .) -
ll - '*; ._ .;; . ': 0..', .
.,"l- . "
- k '- -
lI . . . '
.s .. t. ..,v...,..- .,,c .g . .- . . .
4% I s ..c... .. .. x. . .c . :
?, . , . .[ ,: ,.,' . ....' *. .:,g:' '.. .3;'y;; , .4,
- 4 .P. .:l , . ../, ..g .f. : j ....;,.e-: ' ; l,h. .c . ' ... f'.;gc:!e.n't.,,,,. , . . '. ; ,,,,
~
- k . .;. .-y.3.., . ; ; ;)4 .,gc - - ;. ;: . ...< ? .g, pl f. 1, y.
< +.,....';.
. .a . y. v y.. . ,, 3'*n
.q., C
. , - , 4 .
.,); ':3 , .,
. ,. ..Y.- .r ' f ; q , , :, ,. . . ,.M.-
s.,V. ', j ,' p.
y:/, . . . . ..:: . .;, ,, . f_ *.
- . qs p '.. \ . ., ,
' y, ,': . - - q'p: .".
- . ; .i ___ g
- n. *g - e L:. .,: n *:; :; ...s',. q',,[_ ; .U :;f.. , ;b ' '. ' ; : .x a - - g' -
' '..i.' .$ .h . '%l: : % ,' ' ' '...n- .: :':'.]:" - f.: ..
.,......,.',.'.';'.T..
,*-. -;..'.. - - - [
":-. s' .. - ..
e ! l ~~ ;..r- . ..
't .
&. * . , %. ';l M" '.- )n '(.
a'- s-- .: . ..
~2
' . . . .: S'. t.' ':' yp>. * .,ej'.. ..e
-'.,s.%.'..'.M.4' ,; w 'AJJ,
.*..V. --. n, s , ,-
_il@@BdMM___Q@jf*a?.
WMf h a ~ .^ 4 @
._a m _.mwwwn _w w w_., w _. w _:w;w _ou _.m m _u m ge _w w w
l-p &
v.:
.-,Ii
_+ ~
enice. No mhtterhowgatyourpralact 1%niiltgni isvice or>citr cushnner willhx>kJur it s<xneplace else.
l In a senice indusay: hviide ciccilent service ory nt Onay sbx>nle outofluiness.
For nune than 100 years, llotutan Ligiuing & Ibwer O>ntpiny, a llandon industries suhsidiary, hus prodded exccilcru senice to
} -'clecnic taility cusuancrs,11icn tradition ofc..tstanding service contintws tochiy and is being applial suawfidb' to 111s cable i .
telcihion business, as'util.
~
E 5
b
\
p ,
22 r 1-2 l4 4.'.
e i
< ;7 M ,.
- Wi a '
2 o <
- 9, couronut multucirts ---
- m ,
rgij M
3 WMm M}
Y: 'ItilMAR M A ctANCE ~
l m~-
A" rinnstor Assus . CituRstWN trflTR O t _ ,i N:p e '
ilI While camings declined in 174 key g
n g; actions taken during the , war should result e{py
.. a OQ V in impnwed performance in 1991. 4 Ik T
- p, / . i 1- -m fy- 4I'g[g 9
" g-2 Ih.w SERs10. 3--i - />
sp-t :p,x.
9 c,h,5 9M Ly ; e Quahty customer service is a common (m
pi .I ; clement d all til operations and a Ley to a< g:g g-nx
~
M' I the corporation \ future success.
7 , qdi p:c}f Ql1p v q$w g[0M- - PFNCLNTot REEMU FIMNG\l.RIT113% AND ID TI Ak st3tsisRY 16 j' y -
gqis f
.e itorvros unirnsc a imu rostrm flf r
,. d pm Q The nation's eighth largest electric utility - -gg
> g$ -_
Yq;i-- g
,o u
%- 111 AP pnwides electric senice to a 5,tXU
$a$pe A Gi-
-N m-4: ;;g g' "
square mile area including flouston, the - ;@JQ p uy ,[g. M M. 'NNs I fourth largest city in the US 20 h;;f"-
m Q;
hs i gg;;
a KBtiostINCoRPORVrED gg c +' 4, y f$$): 3m One of the nationk 20 larpst cable television .SQN h F
fg g J uaow operaton, Klltf0M directly senes approx- gg$rg;
?:
T .
d-_ 3m - imately S503XX) customers in four states $r6v m ..
sg, E me and owns a 50 percent interest in Paragon ggg M Communications, a cable television partnership ;g W" ' '
gM 26 fgag -.4:m comun:nds an sening appnnimately 829,IXXI customers. f
'Rat kom cm.mmica:ua crufri erus,iNc.
hhN 7 h+?-
h fil gg -
u n: hie tded 6 m pon;emiuf- e%e Q:
6 ; s?
fQ1j .
Q lp -
UFl pnwides coal supply transportation and handling semecs for six 1ilkP
+
mM p
3
@W gg @2 t
y generating units. 30 WpFt n p{
$ ' l crossARv 32
[p .f a l p::
tQ ITNGCJ asWfloN 33 W is h
[M.1
{ - g'
!?;d i I p' -m kl IMIXIURINFoRslVilON lilC h a , - .
o e
e , , y.
,,h -
g q
C b8B e'
k k,Ik --
b lrn, m.w ..
by1 n
i 3 7 ; . .] } ..- } f_Ufl ffgg$ $'
!kkdYMb;-Qjj . fb s $k b $ d I b I b b b{ b $A b b 1% f
- g' s.i . -
d$h$b Nase sew ; -two. 19m ies ann JWp ; . . ._
z Operating Revenues (000) $ 4,178,576 $ 3,789,780 - $ 3,90,918 103
$@f
(!
n4 ZOperatingExpenses(Un0)i
.@g Net Income (000);
$ 3,228,M6
$ 339,45J
$ 3.006,582
$ 413,452
$ 2.851,094
$ 395,254 7.4 (17.9)
Cash Flow from Operations (000) - '$ 65!,fkl7 $ 677,682 $ 734.854 (38) hJ Qh WF i Earnings Per Common Share
!DividendsPerCcamonShare 2.67 2.'46 332-2.96-334 2.94 (19.6) wX Wd'
$- 28.45 29.05 28.75 Book Wlue Per Share (3 car-end) $ $ (2.1)
%-mjf Market Wlue Per Share (year-end) . $ 36.75 $ 35m 5 28m 5.0 g & Market to11ook%lue(year.end) 129% 120 % 97 %
Price to Earnings Ratio (y ar-end) ' 13.8 10.5 8.4 gy$h s
Return on A crage Common Equity 9.4% 11.7 % 11.8 %
Mhlg"f4 g
@MMt 'Ibtal Assets (000) $11,876,697 $11,681,925 $10,186,752 1.7 DiiM 411mg-term Debt (000)* $ 4,748,358 $ 4,762,100 $ 3,496,868 (03)
. Shareholders' Equity (000) $ 3,646,757 $ 3,675,535 $ 3,407,419 (0.8)
$p[;w{[g) aj Capitalization (000)*
Preferred Stock (000) $ 568.320
. $ 8,963,435
$ 5t&220
$ 9,005,855
$ 440,477
$ 7,346,7M (0.5) hSkoj p' tCom.nonSharesOutstanding(000)
'+ @sy-- . (> car-end) 128,171 126,510 118.511 13 d@?a w - -Number of Common Shareholders M'g - (year-end) . .
74,943 77,445 86,978 (3.2) 13,084 12,878 " 11,599 1.6 lyhg Number of Empknees(year-end) hI ' Includes current portion of long-term debt.-
[hNhh B$
pyp-
' *i1989 increase reflects cable television acquisition. '
is Nd . .
7 .- EARNINGS PER 0051AloN $1LtRE DIUDI:NDS PEP 00%f%lON Sil\RE 0:0&
'M-
- Yl$)jf :s_
T w> : wl@M ;- 5174 }- 5:*
w; ~ sui l u.
h n*4 vn &)' "
M sw 3l@$$ X j .; _
S M^ ~
age fj1 N $ -;:
jQ:yy p Hg:
- h. Tg&iM j: y:f p .t-w$byM{ > s + l :
mL 4 .
f5h ~ $g _q ;
ywp e : c Mk' . r
' J; - ;J -s; Hihen do!"+wofi
- y$)g&ql W w%n
'G 1 g. }
}l .
. tm that ha,r depeeved eamuy r!!h,v mminanJ m dM!mi E"""* W # I"0"D"A N W{ k.f ki y )l $;),
~
nmJmy pwewhhedin
""I"*"""""""#"'
w an wwnnpd m orid n;t n A ..
- ) l'hD b CJmyd La lead is > in dn ujmd jvntnen3 thut lvpr
{' es) l e L, & 2 l ,', enn#miau&w ,c '
.,a mm i
u jj '
.g.
.' -1 1Q1(
na f('#Mj'
%l;}h uRMy% .
n i+
I. < >
L. _
m, p' . '
(j 'p;,w ;: 1
'ItRRt%RY Public Utility Commission of Texas apprtwts $128 million settlement of an appeal of IIL4Pk 1982 rate case. The ruling impnwes lil A Pi 1989 earnings by apprmimately $70 million, s.
p~,
,' m stARen KilLCOM establishes Kill /lY, an independent company which sells adwrtising on cable 'lV p-
,xD channels and sents as managing partner for mhrrtising interconnects with other cable systems.
p) v i
Jew PUC approws $227 million rate inercase for lilA P, confirming rates implemented under bond in - { ; %-
June of 1989.The P11C also issues final rulings on HL&Ph pnidence in planning, management kha%
g and construction of the South Texas Project. p p
JtwE - KliLCOM imests in International Cablccasting'lbchnologies and plans to intnxluce its Digital DN(
I w Music thpress"' prentium senice in Paragon systems beginning in 1991. pffm, 4 .- .
Gll, lit ikiard adopts Shareholder Rights Plan.
f:e*W ,
, ' Jtu .ks N4
. - _ _ - _ . _ _ _ . _ g,e
- 8 Attctst UFl signs 15-year contract to pawide a full-senice lease on 220 rail cars to the Chicago Central & I{ g_
[
Pacific Railroad Company. g Cp,llk. .
Atutst ilouston experiences the hottest day in 10 years on August 27. With temperatures reaching IN (t, ,
degrees, firm elects leity demand reaches a record peak of 11.2 million kilowatts. With interruptitile (%g -
[4 demand included, the peak actually sened hits a new high of 12.2 million kikwatts. 7 g
g strrEMatu KilLCOM forms a joint wnture to create a regional sports network for Minneapolis and ..po h- ; 4 surrounding markets. p *
- n n g -Y OCloHER KEIL-TV becomes the tirst company to co-sponsor A.C. Nichen ratings data to position cable TV [1; adwrtising as a cost-effectiw alternatiw to network affiliates. A
>4e y @+
5,sf Nomintu ~ lll AP files rate case rei luesting increases totaling $552 million to implement second and third g{g (' ,g g phases of its rt.te moderation plan.
p'C e
- - . . . . , , , . . .. - , . . , , . - . . . . _ . . . . . , , . , - , - . . . ~ , , . .
__ Q g1 it w a p-s
$t '
b
TO OUR INVESTORS:
- 9 9F incteen-ninety was a year I:urnings dedine of financial adjustment for llouston Industriec consohdatcJ canungs aw Ilouston Industiics. ikith were $339 million. or $2.h'/ per share. in ltm.
l carnings and retur n on common equits dow n f rom $413 million, or $3.32 per share, in l
l declined, primarily because 1959 results were 19S9 Iloweser, carnings for 19Sn included a l
I
, strengthened by non recurring income one time benefit of approsimately $70 milhon i Nonetheless, I consider the year a succew. f rom ifouston 1j ghting & Power \ succewf ul l
l l Our stock performed well, reflecting regulatory challenge of portions of an earlier rate order.
i I
aral operating achiesements w hich hase put liarnings in FNO aho were negatisely i
our company back on the road to stabihty and impacted by $29 million. resuhing from cost grow th. W: aho maintained our very competi- disallowances associated uith Ill Als FNO l
tise disidend and prmiJed an attractise total rate order. i return to om shareholders.
y,7
.g -, g~.p&gg.
w mw -myyyr,mgqp.ppp7 y p'
p.a;u.: c @ _h j k[Nh
.b ^%;8Qi@y -
Y. eI1 v
ka ,$m$$i*p, c
NS .
i:_n .
- v. . I fQt. i.,:
N'/.~ddQ, . , ahj k;
%g:n, . -f y ,
pg3g n j
' , i -l '.. :- ge.
},
w ,
,g'. . , ,%- ' .,
3 '. -
. jj i
..- .+ . '
.3
- ! )
Y e% 4 k
j s !
- .: a ..,.p r ;
. s
- a. . , , .
Ikm n Jonlan l
0 '
Regulatory pnigress continues Assuming that the Ibuston-area economy in June, lil A P receiwd final appnwal from remains relatively strong and that the rate set-the Pubhc Utility Commission of 'lexas to raise tlement is implemented, we are optimistic electric rules tw $227 million. The order, w hich about i11 A Pk ability to achiew gnmth and folkmed the longest rate proceeding in the impnwr carnings.
PUCh history, alkwvs 1 IIA P to trgin reetwering the cost of building and operating its newest KitLCOM impnnes financial performance electric generating plants. Subsoiber growth and pnsluctivity gains in The $227 million inercase reprewnted the 199tl enabled KilLCOM, our cable television first step of a three-phase plan designed to subsidiary to impnwe its financial perfonn-hmit the financiat impact that a single rate ance. Although 19W included two additional i inercase might haw had on its customers. months of operations of cable systems )
i lil AP filed for the remaining two steps in acquired in March 1989, KilLCOMk kws Nowmber. In February 1991, IillP :md most declined to $71.9 million in 19W, from $72h j parties agreed to a settlement of that request. million the presiouycar.
The agreement would gim iIllP a one- ~lb further strengthen its fin:,ncial perfor-step, $313 million increaw to base rates and mance, KilLCOM is building its customer ;
1 would include recowry of IIl2 P's remaining base through impaned senice and aggressive lmestment in the South Exas Project as well marketing. KilLCOM also is dewloping non-
. as operating costs not currently reflected in traditional rewnue sources, such m pay-per-electric rates. Illa P would freeze its base view programming. digital audio snice and rates until May 1991 Ahhough the settlement advertising sales.
requires regulatory appi.wal, the new rates llerause of the high cost of entering the are to be effective May 16,1991 and may be cable telesision business, Kill COM is not implemented subject to refund if appnwah expected to pnerate carnings until the mid-haw not yet been obtained. 19Ms. We anticipated the hisses at KilLCOM and consider them part of the inwstment O
rec,uired to build a valuable new business l'urther progress anticipated within 111. I remain confident that this invest- As expected, many of the uncertainties facing
, ment will enhance long-term value for our i11 were resolwd in 1990. I thank you for Sour shareholders. support during a sometimes difficult year and praise our empkwres w how efforts contrib-Strategic mmes fiW. tnanagement attention uted to the yeark numerous achier;ments.
In order to focus management time and finan- I especially want to thank ilollis Dean, who I cial resources on utility-related businesses and tetires this 3rar from our Ikiard of Directors cable telesision, we sold th: assets of Inno- and as Executiw Vice President and Chief vatiw Controls, our security lighting subsidi- Finar.eial Officer. Ifollis has sened our com-ary We har al.m ceased capital additions at pany well since 1946, airl we shall miss him.
Developnymt \bntures, our small venture We will newr be free of uncertainties in our capital subsidiary business. I hmewr, I am confident Ihat tbrough We do not anticipate any major acquisitions the energy and dedication of our empkwtes,
- in the near future. We will, howewr, continue wc will impnwe our financial performance, to pursue opportunities for value-added pur- w hile continuing to panide the high level of chases, such as programming senices and stra- senice our customers desene.
tegically hxated cable TV systems.
o~
Don D. Jordan Chairman, President aad
, Chief Esecutiw Officei iIouston,lexas March 14.1991 l
l
l l. ', :
.l .}
l[, F
.[.l }94 ' . ' . 3 j.;-. . .
.:.}
, . /.
;_y
..st_y. i ~ .. . ') . .;< _\: - ,Q.y'~;
v ' ... .; ' .
, _ _ '.L ?. ; . _ . . ; ...[_' -' [: ::Q_ .
;. . , , l ' t ;'. .:.' * .' _' .l. . _
' , ' , . , . ./W
~ . .
.y )' ;, (._ ,.
_ , ,' F.; ' ', * , ,
, .;j jg'(k f
'[. ' ' - .j.[ ', - J ~
* ,. ( .f ' [ :, '*. ',', ' .- T '. , ,7,,; [. * .' H ,b '. . - #[ ; .- i
' ....;.;_.' l *. 'l. . . . .
.~ ,
- - .- < - . .v..m-s
. q ,\.. ' **.' . :.. .
*:( .',l',
..,x
.'..l('*'.,*. . ' lM j %' M
.... . - ( ? .; u - g'.f',~_, ,,..l l l::... .l .; .> ,, ';
6: . .g'd .;l .. ' ' ..' ,': y . . %
... lT.i. , .- *. , '~ .. '.- ._.
. , , , . . ': : M' '
+2
, hhh .. ~ (
~ '
jg *l '
'} '
.' y Qt'-
n . ., - .., .- . - ;. . . , ,ly..-' .-..,: _ _ ; ' y
. . . ,. . , . a : .b . . . .
,. , .: ^ ;s. '.- . W (. R v
v .. . *+ .. . ... .. .
..A: ?
,_ [ .,'
' ' !{_\
g.
* ., .* ' . ' g,
; _ j 't-I '
y,, >.. [# . '
, .4 . .
.Wf j( -(
f 4.
' . -l **.., V I '.
*- , _ ';',.,O
- g r
f E. .;
..f.'.
.( . y l .
- . .e -
.. - . . . . ~ , , . ,. ..s * ,* ~. .
...c*.:.. . . 't.' .- . . , ,; . e. ;' t
. .; 1 1,. , ;t h
- d '
5 ..L ; # .
.I . . . r.e4,} ), 'p{. . g
*. ;,}/~ .. g .} .
. - lt . ._ ; q_ . e'. . . :. . .. ..: _ ., -_'q. .. . . , ' :, . :- . . ' % . .s -
* !.W.s .- e, ; e, . - 's. . ~ . ' .:. . . .;*v n( X
(',,.,. f.f.',...;
..g l . , h ,~ '5,. . . . i If .
h .h ',- . . . t.,
. . * ..'[.. ': - l l; . , ,
e
,,r'. , . l. ~- ; - :
. O ,
,c',... :,a.
y ....;, e. . . .
, , :._ l ': . . y kxQ. , ,,
.)-? '.'.':%.., J N h o. '. , ?. .( . l f,h.. YgnifhDhf:'h. . kl 41\h $ ; _.t- . ;*kl *kl' 4., . $thtk. : .. .,l.* ! , n,e o N
.. .. . .. . . . , ' < . s . - _ . _ :..,. :. .. ' : ,7 4 - - . :- e .. . a p) !
t
'[ ,. .
'.. f,
, k. e f h.,
5% A i,. i ,
. , f. .- . . ,.
..g. ..c
" . 3. , ..! . . , . , .
o .,, , . . . , , . ., .,. . i . , .a . .
', , ' '. '. !: ,,,[
... ,. ,. . ,- - ,s
. '. 'l: {
., . .e
- j. ')y;
, c.# " ..A l hh ,
.- ,3..',.
'.',~.l,
~:
.:, l h } * **.. .
.. .. 4- ,, ct l ^ , * . '._ :: *-
._::., 'f '._..'.; '
' *: ..- * #.. . .: ' ,s l * %.' 'r'.:f.
t' . . * . a
..\.'.'. ..;.
.. . .' -. . ' \' i; *. 8*.
- 4 ',. ' .. '....'.'o ' , Ln. 'l'
'.l'
. .;'.t
- c ':.
7
';jl
;[ n&oi
).'
- a. ... ,.. . . . . , ^ 4: * : i- .. . . , . .
],,..'. ; '. . , ' ' . -
. ,, N ' . ' ; y \
f h . ') h, .g ,
\ '
g ,s . . : , ;, . , . .
. ^ ' . ' ' <; - [. 3 '
- I ~ ' ' '. f l , , ' . .) ' .'l '; ; i ; ::'.4.. l l. ' * ; _, .?
- R ._ ; \. , . . ' ' ] 'Q 'Y t l ; .; '. . . .
.le ,; ,
3,
.. . /_} ,f.. $50ftM!$YYlb'k?' , 5YEWf.'fhYI' .h*W
... . -; . . - .,e ~ .- + - ,
sl . . _ . - .
-l ..
'l %
h
" ,f .,
ff ~,: . . . h 4, '[' .f., , . ~ l
. ,' , ;, af : ,s f . - ', ' ~ , . , ' - n- -'s . . j., . , . . . , + - *g $,, ,'
gt , 7q
. , , y ,.
g, f-
- a. - ' '
-oc o . :icq %r x, m i; . ,... ;, , "
e
-.. t .. .: . m,..!*j.. ...;.'. . g .
'..,J. .
, :: , ' , . , 3
.-,f'.,.'.- .,-,' -.
,y
,,, ; : ..... q. .
.g
,j 3. ;
; i 1 ,., y
, F,,.'c . , ./; N.. .:j . 4g ,On
.p
.h --
g,' ,fai"
.',.......,.,.7, ,,h.:.,f.',..,,..,t'.,-.
-j J,*.
,,i - . . . ' i '#
, ." l . , j. ", * 'a 5 8 '; . , i ' . , . , ..N'. ' , . - './> ;;,m.
. . , - }.'s
..'.'s.*
,',,.y.'.'.,',*
i .l
- g. ,i <
sq y. 3
, . - - 4
..g f g, r.
,,.,.;.y , {j.
-;,.- '.i
- ,..p . t .;
c
. . ' ' }p
. ... . [. ,,, r . , . ., , ,,' , . -
. .r ;
*r
,s 3 , . . .; - ,. g ,7 ' ;
- gg .5 ..j.,.,.,e
.*'I,' . ' . . - '.
.. m.
~..e,,s vi 9 :.. , . ' . ':. .,;.'...' -
...,2 .. : ,,~ . .-"
. t ' . , co. y g. ,
('
.:. . . . .; - .- ..v 4 . y c x
': *.gg. *, ' ' j'.'. [ .. .,' ;; f ' , ' ' . .
..J" ,; '. I ?[. J * ;, i ",,, j.J- l 'p . ? "ls . ( ., q.' T.,Y 'm,-
.",,\
+
....t.,, .,
7 ,.
;-p 3. . . ' ' <, . A[
.+
h,f .- , ;- ( , - -l ., c; (.,,. ..,*t - ] ,.a, , , 5.f ; ,
,,.7.-
; ,4 .:
,, ' . ,< '* [--
t
,? 'T .
'., d- .:
c ' '., ?.,.:..;* - i+sT ". : :, V ' ,.::, ? , . % . "J. . 'r . W, '4 .m - .- - ..~,3 . . , . ,-
1 .. . < ,. J N . 'k f t, /
f.l ,'
' r ../ ' i I, i.
;;[':,"- , ; F ' [ . \ 4. s' ,l , h, . U)'y
' ' . , ' .*; /
.; i. \ 's;. g.g@ , . '.. . . ' - ~.?'...
.,'g-. . ' ' . '
J
'.1'.,.,: }."
% l ,,
- f ' - g ;. '.'(;. : -' '.*.,g
. j , .
'. g ' f.",1 I
. f :
..,,'.f,.'; fQ e-V a ,. . . ?'.,.1* . .* .
. t.
c- s. b.,;, ; - , ,",y J - % * .. .. - - *
'p' ..
. :' ' . - ' . ' ' , r ? ',,. '.q*'",',' m
.,f'.' , . , .. .
QW ') . . . ' _ ,, ',_ '. !; ' *.S, **
; [' 4 Q'; V . :-
p\ *,j p' jl 1(A ,
- 4-M w'5E . :. , t 5 . .
.t.'. i . ; ,
- c. * . ,w. ;'3 w'. c g - . r s. . + ; .1. . e . . v'- r - . ,
. '1[
j a . :. .. # - t g&' q _*. E Cf I,'.-
' . '/',L.' ': ' * ' '*. . - ,-
,,- *g ' ,- -
p . ;,.
-l ,. . _ . .,., . ,
., ., , * , ' , - y 1. _ k ]
", Y ~ ,,d
'... ','.l'r .m
,czf',[ ',,; . !:; _ , : , . .,...c
, ; p. 'g. *g 4
,? $ * ' ' * ' # 1- *~ .. l., ,,,.,..i*-A, ^~ '[ h hf
.,;.'e, '.,1*'. ;, ;n .
.: ,n
- - r: . .:. ' . . . . . f;c .. .
9 G.
. \ ; ;;,;;;
- y. . .....-P,~. . f , q;%Q
. . .. .; . ' ' .v;r '-
~. . %:
' . - - -: - 4
..*.,'.';.;d....f. .,a.9g g, , T %; . . w
+
..t. .
s .. 4+.,in' .1e '
' . , . , , . .g*.
- -u
; g4 ., * , ; ,
. . ), y 1 g y, . . ,..s, ,.. , , , .
,c,...*..
,t
, / ,."*
. ' I'
,- . - ' ', _ , .. .. g -' ' , . : , <
j ' ,. . l'..,', .
' . , ' .;t '-' : . , - ' ' . ['
.. . ' ' ' ;*~ ,t' ' / .", ' '
- p 'i,' s- ;-' * *
' ' , di ., ,i ' ,.,,. ,'p. S . y
'['t'
,.:E, . . ' '
,[' . - ' . , . ' ~g
,';. , , ' , [, ',' ',* ' [.( : ' l. , , ' " . ' , ,'
I ' _ ; l
'l j -' ' . . '* . ,l i 'p '* 3 "\. *
'- '*'...-(, ' s g i.
M,,,.'.,',1,
-- 7
; . . - , .4 -W.. .- .' ' .c . :
.'y,..,ijo h: ' ' .: . . ; , ' '* .
3
..v. h.y, - .. .
sH
- l. 3,, .. g,- '. ; ,.- ' -, ,'.- g, ,',p, c , jif, . f._ .:. '.
.'4'.s ,p. ', ' '.; . '. , . .., .; ,; '.,. ,. .,.:.....
, nQ
,.; ,..,., .... k.
, . . .. - ,-: .,ti+. , , ,,,;.w, .. .- ,
.j ,,.,,,- ..,. g ',,, . ., . ,. g.. .b;D 7 .,
., a , -...
. ,, c.. q.
- y ,-p rv[g. .
.~. i,,'; ..
P'?
,j ,
_'s
.y.,a.
?
.q,,.,'.t,f....
, .. y.
. , 9; _ . : ". y '
4
'ue
;g'.[> >f . ,~ ' . . ; ' - ~;} q. ; ;gL.,)
,.7,_
_ _ v ',...; ,
-M.; _ . , .
.. . \; j : ~, , ,. _ 'l{ _ _ g, _ ,., ( g y ., ... , ; g. 7.-; : ,
j? ". .;,;. ,
- w. ; .
. Q:_M
. 'v.' 3.3.'~. . .;
' ' .. ?:
.e,.[%. +,..a. .. . . ;;; .: y;h ;s."._':. ;y-
.1 :
_e _ .
. , . ' + y:.: . 3, ;,m h L., .
9._ _g.y y. .q.. w a:
, :; : h 4 : ^ ,.,.[.' m.;. 5. '.'. , 3 w,; L
. ; .'.pgf. y.L::.aq
, ?;;; .;; ;:.1 .; . . . .. < <-
.,}, ,.;_.y. ; ._' . :q - M '$'.y_
.. , , , v#,..w}4 g./ ,
9.
,- '. , ,,*, -. p[ .,w. j ( y p' ',
# 8*" gl ' . [ 4 .. - ._
D.
, . ..g[.1.- .
{' e
' .sh _ ',.)8 , ,' d."-
*; 8 [- .. ..
j
'.'},'.,',' .
,U.
.,'W.,..s,..'...g.,.'
. , . , '- *f. .**';' ',. .- ; ' ' ' . S . c. " ' (,.,,'..,',,;p,.' .- ' , '.'ef Q (4 A M*',, . ' - Y i,'- ' ' M' ' '
'[ t .' [ ,. [ [# -'., . -' 1.. , ." -. ' . ' ' . -p' ; ~
,'ya -' , .', ,; .
; ?.., .-
.' . .., ..' 4',*:.,'..,t-
. . . , - . . , n g%. :':--.a. . . .;
<,f,'..*4, .'
- -:' ... .s ,A n , VW. . ,. .; y 4 1a h. . ..u .. - , .,-y . -,' y, . . .., ; 9 ,,;. . ' ' ;- -
.,. v .,y ,g' ._t .,' 2e..
I.'t $. [W . ( }. . s
.. ' 3
, ' *. . ' "8 *
- k.
- P '
[g 3 0
',,.,w
.' [
- f- , < '[.,
' ^ ,,
,4 .
a 'v,, , , . ..,
- c' >~,.',Q.,,.h.
9, w., m : . . . . . . s a : . ..: ,. 4 Q.%": , .' ', ,
- ,.'. q.]
g ;* '.}]:k.*.f.y
;;'J; q (.? y [';}. / [;
^3 ' yl.;' . ,. Q.
_}
. :;;f:s +; '
9:
;. . c m.., .. . : . a :
, T.%'-
.. ; .h ;.- d. ,' r_: Revv x '
/- ;m.p ny
_ .:,_g : b ..l:,l 3 ' e w g;&y.f.Q
- w. m ; ,,.;;%'
,[,
D i.f.;9.& w
; yy;,;f; . :y' e )
Pr. ..'._
. ; l_l W. W p. , . -
e : *<' y;
.v.
g'*. p_b_'
- : ^ _ . L .@:y' ;; q' y*+ -*'% , , , ^' -
, fg . it '%., ..s ,. % . :'*:' **
!.y l, - . l :f, . . ;-f' 3 ' . b ' . , ._ . y' .d,p..I NY. .k}. p f, + .f:, l. .....t..- N. s.: . . . -$s.. '
..' . .. ,. .f-
?,f. sl. .,...,ta*.y $ ._. lll.f.?[.: l f.qm. ,
$ ..:%}l- .
f j, '
- b _
%,rf. , .
. =. ' . . ....,.f..... .$ ,-
. . ., v -
. . . . , .. f. ~ ;j.a %
'2 - .4 y
.h-
"'.v.
. aa
.g M.,*
3 $y*.; ;.
;' ..,;.~. z. ; .> ; ; . t ? ? L. r.'
%.,... .3w'
(,-. e - f .$ l. l X ' ,. - j '; .. _ .yp> ,
+ . g:v : . ,.n.j ',;J. ,,;,#f.._ %l ;. ;; 5,. . ~.;h.~.:(:f.,,.
.k y ._ ..~. ' .; ;y(:
- ~rpl.l .L -V.+n ; e, .: .};f.:.y_.'._, ,;.;;y g,_f Q.
j; . .. ,'.. . ;. .i. ;.. ::.e,. is..l ., .;, a . m,
'.w,*f.:-:. y, .-
- 4 . l pg% ' . ; _ . y ;f,', : : ' . . ,, .. -
- 5;; 4 ' .s.~. 5 % .e, k,,h.Si?$"Nflk.3%.L.,.:.*n.*. .$ : y &;a 'i.. .- .G -# ,$. Y.i,~ jh '.i h n. h h.:.
.gn f.:y; ..: u:;, .;~:; . t:.n g ,a<.g:k.' h).;,Y::?.f.f yn:.m $a f;.:;.& & &9; +f_,
- r .g) c i :. \ f.!;gn. fqpr-
';. . -L . ... . . , ::' ..,e M. N:.>c-p :, ,<.;;;~.l<<.;F J..
.: ,:J:'.*;g
;. :y .[ J. y : a.;Q " J :): h..;g.;v.,e . ... . ; l.' l@~~y .' .. .. : :.; L :. L 7ay '. - . - *
- ...; ;;: ? :;:gM x y, gwg?c)3w,4 kW
- d. k j f y' l l l_ U T ,& d : J.; c *
'C $f; ? '$ k ,h :$ Q le-.kf&~ :;.: '_.fW;'y$g,[o:},j$:\g 4y yx;: e,.[jyyg p&y g g , gy.y ; 3 a q c; g ; 39 n v ,~
3.;9 q,w - i,. ..c.n3 ;,y ;:1 :gs , e.o!,4* y'~ is. .: W -
- m.Q,,W.tf. z 'W. jy Q
. h :.]. 7 fl. h ff:h. ] .
- b. .
u m w@h FM . J a%h:f;.$h
;mw&ms.m mawwwmas.swww @hhh%W$%QWMgMWWW 4 QpMWW,
Y;
, , , . .. if
,*hn't recall nst haiing
- Jij.Memm dnlilAP custor.d.Mie imigh are .
n . ier3 frkady and hate Fj aloplenwillington., i 1, ' s. I ; r or more than 50) tars,"Senice 17iist" has been the gi,,;g,g,, llouston Lighting & Ptmer Company motto. long before customenenice became ' fashionable," 1112P emph3res weie putting the piinciple to wwk - repairiag lines downed
- y hurri-cane force winds, dnekiping solutions it. meet customers' individual energy needs and p
.)
i a i f7{ responding quickh to customer requests. z
*lth by the permission of om customers that we ute alkmed to operate," lillP "l;A -
A President Don Sykora stated at a 1990 inanagement conference. "If our customers feel jj i1 I.
}
positistly toward us and the job we do, our future is ensured." At 1II AP, customer senice meets more than smiling empkgres - it means quick j { re' p(mse, a willingness to listen, an undr (anding of the customerk needs and a commit - j ' ment .o treat each et. comer as an individual, not a number. It also means,empk3 ees pro-
; l viding the personal es that make people enjoy doing business with the company. k n ,,
i m, in the last yrar,111. incter readers kicated h)st pets, kept a watchful c>v on eldedy muumn nuno customers who might need spee:al assistance and nen reported burglaries and other lita w.imas in con crinics to the police At the same time,Ill Al'k mete reading operation pasted all time ,mai, , ,,,,,gn ,unn , ,m o
'"'"'"*""J'"2'""
performance marks in reading accurag n un n ,gm ,w.n Achintments like these would not be possibh without iII A Pk strong commitment m,u;m,,%,s aju u to empk9te training.Tne companyt telephone seniec representathes, who answer '"'"""""""""*" wac IVC in Inhunn 4 more than four million calls a year, ,. m , w e sn y ,o y , receive 40 fulldays of training be- ' """""" 6 "' l"# " amn:a mar,own; fare they begin taking customer calls. y u,mc About two-thitds of that time is spent on the telephone, practicing skills with S3 trainerr..
, y f
g yds ynd g 4
'%$ HIM\ ncils ed I:ini ~ 1
*I ,,gg ,q,,gggm . g g g ; oh Il',1c; wrou, ra n- shm y( .
i ax& p~r n! ban <u!k e unA I
- ^ '-- -- QJVQgRy,W TWQ%VQT 3 h M uwaAbenszauAw.awia.a.a.mussaamwidg
, . . 4 A' #
k Mh mtm f e "We haw a one-stop concept," noted Allen Grant. managet of custome contact. "We try to resohr all protilems in one phow: call, without ti.msfers or call backs. So,we don't release new operators for duty until they can handle at least SO percent of their woit (. without awistance hom a supervisor. Part of the training is anned at recognizing opportunities to create a lasting and f av. orable impression of the company "In a senice business there aie alwnys going to be $' d,n times when mistates are made," stated 'Ihm t re, manager of custcmcr senice. If we .e can admit our mistate, apologize and go the extra mile in resolving the problem, th + J > customer may leave with a bettei impression than il the error never happened." Adverse weather in the winter of 1989 and summer of 1990 :esulted in higher than normal ebetric bills and a fiomi of calls from customets. In response, Illa P took e9ra i }- care to explain billing procedures, discuss payment options and, in some cases, dispatch field personnel to investigate unusually
,a)w W ^W n
a high electricity consumption.
+
Such efforts enn the company consistent!y favorable ratings g 4 fro!U Customers. , t
/i'. - ,
m I t I o Ny
*~ .\ fw ' ): v o m a t n r 4 Hi tc h a s lCI'? c ln !
W:h L i . J,. , h < q ];
., m -
d': nil l,!'; - l'f
, e m , e. ,
!! t
' l'l l'I $,,l , , f
%y 1 s, ,,.
N' O a Ih r 5 s
;7WRWWMTF+pcyf g;
n a .
, }f' L l m atw:*.xz M Gdw L a.AAna.ura w w .as u n a muu.L
$ i Y kh Yk" b]
p.
]
m$ i 1
,j lectrie utility customers haw gum n accustomed to reliable senice w v
\
gM from iII A P. Now lilk cable subsidiary is applying the same cus-l hh e h a tomer orientation to cable telesision, an industry sometimes
] criticized for poor customer senice.
y 4 4 " Satisfying customers is enwial in the cable business," said Donna Wung, KilLCOMk h, M , vice president of customer satisfaction. *Ewry time customers turn on the telesision. ff4] change the channel or pay their cable bill, they decide if they are getting their money \ hd hmi worth from the programs they view and the senice they receiw." ? ij " Customer retention isjust as important as customer acquisition. That means gising Y h customers the senice they want and desent," %ung stated. She noted that the cost of
- r. .,
k , y} acquiring a new customer is fim times the cost of keeping a current one. A sima te unut
- w. 1 KilLCOM operates cable systems under the name Paragon Cable in San Antonio o a, 3, b*]d and Laredo, Texas; Minneapolis, Minnesota
- Orange County; California and Portland, ag ~, m y,
s '] Oregon. Since it took owr the systems in March 1989, the company has workcd to
> u,, w, Q[ , improve the reliability of its senice and reduce senice interruptions. Customer service ,
,, r %, ,
hours were espanded, and Paragon implemented strict senice standards. I , ]J }{ e, Mb b KilLC()M defines quality sen'iec as m, n y
- w 3+g -
sy m. establishing and achiesing standards
%f.
~;
,.'. . ~w$ . i g3j which exceed customer espectations. sp 7,,
4 A M i n-a. giy ; The company has conducted careful . 3' k '
'L studies of w hat drives customer satisfac- l m j%
p +4 tion. While the factors may di"!:r in _' .3 - g 9 cach market sened, the top priorities nfx 6n are courteous emplmves, telephone e accessibility and responsiwness to jd 9,g e, 3 - customer needs. - 9 , 6[( Each Paragon system is responsible .E r l U .,; um : M i i t & for developing a quality senice program
)R$ - ""
appropriate for its market. "Once our
] , ,
a M#
.~
i m '
- ~ - - ~ - - -
4W%WiiWikitTNlfRQtR*W"*%f6}M#*Q R" l[g 7 ; . 3,n .dh.h
*% be been M 'b+'> Ie - * '
- 9. .&
'N h$ with our experkset witti u aww 1;uida.wa bd ine.u ud M dIA S ue C ' il Parnpn,We rtgrhe few complaints considering tlw numlerof unbscriterw D, ami Paramm arms quite o ci i willing to go the extra uile . . . customets espectations of senice wete identified, i forits customers?
. Ilwant Stephens we destloped sestral internal measures to constantly monitor our pelfortua! Ice," Miid Navarra Williarns ;.
vice presider;t and general manager for the Giange County system. Williams and his management team track several senice attributes such a, mvrage telephone hold time, .;' i-the peleentage of seniec calls completed Within M hours afkl the arrage ininutes of senice lost. "i Performance standards are changing as a result Quick fixes used to be the industry W norm, because quantity of work was the established standard. Now the quality of senice 91.. has been added to the equation. This "get it right the first time" philosophy results c in both impawed customer senice and knver j operatillg expenses. (
'}he quality efforts are payilip oII.
O,ange county's customer satisfaction - o-(3 scores impitwed significantly in the past year, and the systemt efforts [' w hast been sh(wveased at industry jf y conferences. E rd [$ y,
. m
\" ,l [
~M ;
g
-'e
((w ri .Wpin ny n - ut c dm u .fILil CaNc 'i: ;g inon.tah m im ano! g kill i O \f) o vuw,m ! to ;;i v% h t /* IN(hino3 uba N; U'O tst ? I i I!L 5 id ( h s %Y iir 01i { ud
. , 1
?L, ',
i, e t4. ,4.. b b<
' j:
, JW
; j. .
,y
'(
- . i 1
%s
~*%w.uQN d&Ls. ma g; , ,
** % ; ,. m.. N eks.%,e
, y p.f;e
.m
;)
7 [ (, ,)
.5 .p 4
Induqgeg OliUU,il,ncy, ," M'INCC Ecar,ics (Wer ,o (.9 ; f i;
*lon
"~"~" aaa
$: < si 00 , Pervina, ,jgys, j Af "*" ""* <ma ~mercm;o,,g,'""'":a ,, -. <mi"%
a v aeo 3% ;n y y ara,eoyh , u m,,,,, ~.a n d,,, ,,,,,,^uccura,ci.c a~ ~ mvc , c,, ,,. L3 o a
,, u,,,,,
a - nuni,,vu ,,,,,, ,,,,
,ha,inen,p, ~ aan . nom,h,,, ,,,
' I i, I rI j
y ;] iI i ; ,
!!y ,1
""""" " ~ u. m f ha2j;[
,c:,mu ::n,,:;n:ditsempI':dOO:l n ch n, 8,c . 4
" "" '?
$wa]4 iQ) y m.
Uni,cd \y9. g,g , urh to soh' ""'" ? oI
~mmuni,y probl
% Con tothe
""' "" "k' Rinnos uma , "
,fiy 3, . .. '""
Cm Pf gresP ledge , w a. '? n~ s n ["* " '" " 6 v s,0; the third ja, , ' "'
.;v d tion in the Gut (C*3st region.
f[g;y[j On,c gyg mon @ They M'""P"~ :
;yempitgccsgon, I E5[IS D[ ' ,,
Y
,l i]
}
yj mthelarges
*,ormr,cr en n, a,,,, ,
g area blood sang ,
,m,,,.
g}
+
PI nsicians ac ,cc ' yq daily a,c caucu, . y,, , , . Y' - 4' Y 4 e n %:
T' ln ; y u n.,,, y?{
ff[-lcl n .- ipllf . # '" e - y ' .
". As yf j" W.I+' % f g;t ,, , . _
4!:
; } I" *" r e . U, ,g ,,, , "
, [}j "*? "/ % s / "., y"
. bd
& q ih
( gm' .m, I (' -x *%-_
pmr7 qwm ,r , y , y ,j. ..y, e
,e. *When paranmlics arrhn! YW e i ,w@ ,
',, t W '
$m K m-w ;,*
C J )d
.-c n
. ilw3 a>ukin't find iny ., . ,
,Auch3 ~' "'" ' daughteripulw, Amtwr y had hist a het of hkuul 3 from a day cut inIwr h ky and,without a blaul 4 transfushm,she might not ? be alhe today." need for an adequate bhui supply," noted Atthur N Nat.cy Dester, h pmident of the Ilattis County Medical Soci- ' d motherof Amber inge p[ cty. "We salute the emph9tes of 111 for their unsell-ish nintribution of more than 6JKK) pints el bkul in 19M1. These ' Gifts of 1.ife' haw M, o helped to save the lives of nearly 20,1Nkl patients.' [
- tt, I
A number of company supported community senices relate directly to lilk busi- # a nesses. Killf0M contributes televisions, cable TV senice and video cassette recorders q to schook in its franchise areas and prmides kits and training on how to use cable tele- e vision as a teaching aid. Killf0M also contributes facilities and personnel for kical f access programming. ; lil4P offers home weatherization programs for the poor and elderly as well as its l SilAltli linergy Assistance Program. SilAlll! helps pay electricity bills for the elderly and disabled who are faced with financial hardships. The program is funded by customer , contributions which me matched lui percent by the enmpany. Since the programk incep- h t tion in 1983,IllAP and its customers have contributed $5.6 milhon.
;A For some emph5 tes, community senice is a lifelong commitment. In 1990, lil AP }
launched " Seniors llelping Seniors," a program which puts its retirees back to work weath- {.g criting the homes of hwv-income senior citizens. ?d 82, l arry Ilale is the prog amk j
" senior" volunteer. "We care about our 9 mg (
g W% community, and Seniors Ilelping Semors - N* a is one way we can make it a better P y place in which to live," Ilate said. _f y~ i
,.. J > n$
% Ng;
, ,, s e 9- .,.-
r
;}
yg w u wu +w:- d a , . .. ww .of
- x. -.
ofmam 4r mr
' S ai' Lu ? n c.t. m , l v1 m m y;[
l}l cm;-l v i \ n i;e s m;y n- bul ' f)<>> uca M d!w b , Nb r
_ FV" MR
~
wy a 'T' W '
.- MNhd; MMI.N Ndkhi M '
1 d,I M h.%d.ucmu.udAdaddliwud 2N
%c it's your comim:y aud f and your n,huitholders, you oller morr gwrumal
[
'~
earr?
}l W4 W}f Kathhtn Rooke M
[ Y[ e,y he philosophy of quality senice extends to Ill's h 1 mvestors as well. 'Ib impant the senice sharehoklers _ N i )q recene,I11 nuwvd investor senices in house in 1982. ! y:4 t6 4 lly handline' the shareholder records internalh for i11 mmmon stock as well as ill A P t W -
- p. -
k ,l > preferred stock and first mortgage bonds, we take a personal interest in our imtstors!' o(I Q W said Kathleen 1(ooke, supenisor of imvstor services. kg 111 is one of the largest corporations in the country w hich handles its own stock transac-
- g hi%7 b tions. Its 15-member department handles more than 57.8 bil! ion worth of secutities and
% pays more than $600 million annually in dividends on stock and interest on bonds. -
gy * '
~-
y , 111 meets all Securities & thchange Commiwion standards and eseceds them in most p, cases. Imtstor Senices completes most routine transfers whhin 48 hours, w hile the Sl!C dN requires a 72-hour turnaround. Non-routine transfers are usually completed within 72 A hours, while the Sl!C has a five-day deadline. 'Ib pnnide even better service, imtstor L
.h yy services has installed new computer sof tware capable of paniding up to the-minute ?
o.J . 0 Vi sharehokler information. y' $ The senice shareholders *,eem to enjoy most is the availability of information. "There b M~ r ,$ is alWayS someone here who can answer a shatchohleIk question," \(ooke said. E
.Y %
Q 111 Chainnan Don Jordan concluded,-we always try to give just a little estra senice q YM d
- w hether we are nnswering sharehoklers' questions, thing dow ned p(nver lines, addresu [5;
_ d.# p-h knf a ciblomelb comp!aknt or walkin[ b. jdE I
' ![ h"; $g (~)
p t for charities.That has been a key to e A hjkO , b , ollr sllCeess, atld I bel eve lbal pbkloso-gM V ,.o ~ ~
.%f L% 3.
<~~
L phy will sent us well in the future." @ p
.. 1
!k 3
a y u~. u :~ no u (p (j
'g o w ,
-m 1 ,
,m z>..,
3 3 . s _l 'iL, . - _ i 1m y'A p' g g-s !M.n ' c..)g 0 - _ __. _ _ _ _ _ - __-________-_ -_____- _ _ ___ _ -_
. . . -. ' . '. * (
Np ,( Q, ' .
. y, . % .
/,, . . '3..g.4;4 l ,,
o P t a f,r-<110.a 1 ; ; . - f. j,; . n
; 2 . , , ' -
( i'q. ~.
,v : :., .,.
g n
. . ,, .g ,.. .,
.i.. , ... ... , ..
~ ".. .. , ~ } 'l'
...-' .A * ' ;. . ' 1 e* . 3: .
; r..
L., . , ' ' . . ' . .'J .* g, . -
',s .s , ..
- : ? -
.m.,'
4- ) , M'
' ;,f Q f, '.[
.[
- . g
- 3. s
. ... .i 3,p; ; y ,. ; , ' .
/'. s ;, >. . g('. ;
. :.6 ... ..". .2 -
. . .f .
'(;
-t ; , ' _
,.\ -
A
,, . c .
,, .- '. ,.g',.' ' . .y p - >
'l "r . . , f,y ..
;.i 9"" y
,' 4 - .~
I ' . ' Q'
'Q..'..,'
. i- -. .t,
'.s i,ec ', . . - t . ...1 .e .
' ',. ,1 .,.. '.
~; ,. . sj ; ..
9
..g ; , , .
l.- '.
. .g r ..
. , ., 1. - . ., -: 0,'.
. 'f
*f h*h
<. - [ 1 -[ ' ]L1, - ! 's , , g , %. , t .
'y , .,
,. g. ,
I. ,. ' Y . .
. . ;. , . ' . "7~'.
js " ,. 'g . t- '- - [ t - } ^. ' . f" * - ; %. m ," 1 }. .d , .
/i '
h.'
'3
.q
,o k"'
OI* MS'
^' e . , t ',c ' .] l* ' [ t su.. e
\. ,. ,
o . .: . . .v . -< . ... . ' - <l' . .< . . 1 - - . I'.. r ' . *
? ,.. . . . . *, , .' ~~
4 . c '. , 3
~
..
- _ ,}.y . . , . . .; .
l e
+ ~ ., .;. .. . .+: ..
. ye. .. .p 1 v. . ; . : ,,.
+ . . - n w. , .c : .
'b , l "
~
1% %t$ll l l
' . .l f . l , _ . - thggg .kghnyn@gQ) i '
l ,
- f ) .l.
d., ,
-3'
.. .... . < l .. ..
g, : ,.
~ h M. '*'s.'
. . (3 ' ' , ' , '* , .
- 7 ,
('fk,i ([(M. %' M %I YfI '
,, s
] a q.,.,,
pn , f.. .. . s
- ~ - .- -
tW. Wk4W .. .. . T ; S. g -" - : * -
.? .-. , ..- . .
g.
. .y-h+Q [ ^' ' &n ,, , . ; ..9 . ; .". .
. .% l%+,
. ..f ;s , .4 ';,. .sqv4es. Ma%IWtNh.
nkto@4A.,4io$ . . -> . . ,e m - '. w
.i..;. .- . 4
',g . . . .. ,, ' w.
#g ...
,e I. g .5 a k. a.
~!'
['. ""' . (bi
.Mh[ . 7M ktgr, h.psk p, stat #\itilidibt.f MMit8Y 5jPf(N k 's. [] } - '
- .; , .. . . . .y , . . . .., . y:-
.g, h,. h. . .; . ;' J. . ' ., .
(gfFh.&4(4pl0tQ Yk)6 hl{ .W . ' Ih . _ . ' , ' ' :
..,' &' z gh. ph. th. i, e, ,e ..
J. , . . ,* .
,*1 -
w ;,. .'
.P.
,* e' '[\ *'. .- jy-
'l, ,. . . ; ;.. .
~
- g. . - <!*
* . - N.i L
% ..; )* s' ) 1 - . t ^^ ' '
. .f :,l ' . * .. '. .. *-
t,'.
- f ..I;i. . .,n ' , ,:
c' .,!. o(.s(...
<,r 4
. 9:.,"
<w - ,
;. ..,.,:. ): , ;
y y.--. . . ..
.-,e- - .
.. i
.c c .,s -. . .
- - ;5 .
v.:
, , - . i ', , . ; y ..- . ',-
i l
.'T 5 M, g,A */ p
..- .9
; . _, . . .. . i. ,. . , , ,.. - , t ..' . .
[','g, g '. F. , . . . - l,y ..
.. 4 , . . ., T '
( Y, 3'[ ,,, [' ; ;,' - - (.7 .' '
. ' . . . , . ; ?j. .,,. . c',.' . '
.h" f, . * ' a, .-
F; '
.- . f, , " ,,y .w ~
-u";(<
.~ y. ' ,-. .
- .' . . /,- . "
'i t ,. 4,
, ,,.g. .,. , . ,,; '
, : ab . ' . . ;;; . ,..
?. ., . , - ..,
.~ ' v..- n fr . , ' , . , .': l. ' . . ' :,
z: .,~ .-
']. N,-. .-... ; . . k,... ,'.i e # .Mg'.'
f, J.~s . .. J. . a . ..?,'. y- i i
. . ,. 3, " . . . . .
9
. t .,'$.
.t j. * ' -
s,/. * . ...
, .V $ . ,. . . , . .
.2 7 .i ', - *
. 7, . *
# ' ' , , .,,(.,-,t; ,.
8 4, . 3.
" , . - V, _ .
- ., ,, *w /
- , ,c ; L
. . .x, . ,
.f 9, ., 3 3 .
, . . . . .n. n w
. v. .;4 . , n .: .
,a s . ; ; ;.: x. . :
- F y
, *. , * * *j . .
.- .w.'
- ", .,. i * ,*- .. _ .,.p t,
-'f- ' '.. ,' ' '-
'/ i" % -
.-.'*\.
- . .'f f..
'i 8 j f. . - .
- e .
]
v . 'L :. ; , \ .' ' , _ .; ,. '
< 'n it
^
.l . . 3 .< . .
' .g ' ' y ; 4,i V ; :. <- '
L.~_ l'?b '
,, c, ' f. ,s 1 f.:. ' " _ ',. ' .
;.1
_.b -; [ Y*h.,. ,\ . V'
. c. . . -
+ 7. .y;
- ' ll. kb i ..Y f,L , .} e f .
h N } l. f f ;Y ?. (N. f 3 3 yy. ., ,, w. .. . g. 3 .;.. , . g. . g y m,. y ;1.- , - , , . . s
**5 . ,i. . - ; h r- 'O' '
, ) * *l . .b . ' . . . . , . -
.. k.
%& f.f.. % .; . 'W- = - 2; a . L .a ,a - . :
- a M . m' . ,',3 p.sf . ' . , .
s : , , . . . 4
. y .w g. ; . .
~ ,-
1.4 .,
,7. 7g... y, %
- i. . .-
7.y .. ; . e ..;. ny ..g , ..
.g.,
.f 7 v
+ . . . s; . . x..
#. + n.3,.,
pc4l . s .,' ~
.e. : . . . s, lR*
= ~ s-Q4 s .,7....r. # .# W.~.....~,,*\.
r . c.y. n..m.,s. m.. ,., ;;~. w..9;. :.wn,w y .n .,y;,x w - .w *
+:w.
,..;r .r", %.
.t,. :
<, c.
; ;i . c,o
,l+,' .&.
s. f'.
.y ! . a:' .: '.' ...;
;
- 3 4i.<! .t . -
- i?A , 2 .
~ ~
'., y. < :,,. ;? ; . '.:', 4> .:m . ,a .: ~ . L - b; ; y}8 ' T q\ '; J.%,, '.y ,% :,,
y '. ' : , yW by a
.,.....':'.1 :,.,-r....o.v.t. :,, (; f .e
'. :. 1: .c ,t jd. .
'2. %.,,}) ; > , .. , .
T. i '
. . "' ./ .,., ~;,}; ,3 ; J y . . ; .;. q.'** y,p. p 'i ,.'. *-
. . .(. ,, .'.,.., , .
' ,a . , g- ysjy;
. .,&) ; y , . r , 7.'oo- .
* 'g. ..g '
- &y t ,,-
g.y'.y,;c'-
' .; l t , ' .1
.* v . N, :,,-
J l7' ,
. ; , x , & y,. . :. : ; +;y.; ._ ,,; [ ":.;g,lJ r.
- e. ;~ % : g' Q ' ~ ( ;;f L _-3,
*~'*~,
.? R.
c 3.-
^ :.: ' . ' , .l ,. . . .
Q. , ?_, ;. . . .b : .
. gl . .{'., u";.<:u A g_ ,.
; . yg
.; ., . _ c
.s .,. : . 3, . , _ ,q ; ; 61 , .; . , .
' u s ; :y,. .. .~
v , 1:<:
..>, m. : .. ..n 9 .
y
;a ,; . ..
. v ,' ;. , :;
,. ; :. ' . ,; ' .. . .e..q .:.,; , . ; ? 6; ' y._w.v
. , u . ;. ,
. ., ; ?,- . . . . ~Ji a.
, we*? ~ )L ,<i. . q, ':. ,9;.:1 ,y; ,
'4
. y :6 Y. , . v'.
4
. ' : ? ,: : : e.
.*.; Q,!'s .. ', , , ' . _ L . 3., 't ; . _'.,,,.
?
su'
,; -d ; ^.*;..Q:.: g'.- ., y.g Qf
.b- .,j4 .y j - l Q p ;; .,
- e &, ., 4 7 ...m. c , e . .o.p& J e t; . t m , ~,e . ..
,) -
{ . .. i. . , , ;,{ . . f ,.) ; ^ l i' .{ *,; . . . , . ,o . t i ,* . '. ," ^* ' f,' _>[lp ;. g. ,. y , 7, 7 .e . ;. .' . . , .
... 3 ,. 3 , 7. . .
^
l^ . : ., a:: ; +l}- a' c .
. ,8....n.._, .
,.a y. , . , . .
...,. . m. .. . a. m
-. . .. . , . r. . .a , ,.+ .. ,~ , ,, .;;. :. g ,. w,g , .. ,. 4,. .
... . s.. . . . ; . . . . , .. . . c . .
Ey : .
'Ag WE Y r r's% a 'cl ' Ld' .M,w,s it y % g(o@yas4Rjbo&yh;* p } ge ae4 w' Q*g- Q'-mQ 1f T f $ N.o-.3Q Q lT<
yl . ' < '
'\..'
p ed) i 4: 3
. %g6. Oh.,rusM1Aink 2- :-
" -%d.bdwCUhudlS&sn11,bLdkAOOh4Aaddv
<mm,
&Q j id 49
. md -
,,4 '
E 3 ouston industties renuded sri mmu; 1usses in the cally years of cable system ['of b '~' 3j carnings of $339.5 million, desabWei tp ab(1981 operations were anticipated and are related 1 m
,j or $247 per share, hit 19'4 "'
7 1l 4 to high depreciation, amortization und inter. un- , 4 um
. l41
.' . m down from $413.5 million.oi $132 per share, -, j q
1 a est espern c. KBt COM s losses are espected k h 7% in 1989. Cash pnwided by opentions dechned 4 4y to decrease as the systenn continue to build s t m it. ,n : d;4 $25.9 million 10 5651.8 milhon in IVAL Retur n ya J, )[ 4 g . { their customer baw and revenues. The syv e g on arrage common equity was 9.4 percent in 13 43 ' tems are espected to generate significant 1 -i -t ms
- f. a 144 nimpared to 11.7 percent in 19S9 3 4,
j. jl puwvth and earnings mvr the long term, 3 Ilouston t.ighting & pimer carned 5391.4 j Utility l'ucls .cported earnings ol $35.2 g "7"
?
%o ], hv , ;
(z million, or $3.08 per share, in 19t4 mmpared i I J j di h !i); 1 million, or 5.28 per share,in 194 compared 4" ifi to $437.3 million, or $3.51 per share, the pre.
*q f .
4 1 ( r 3 , to $4(L3 million, or $.32 per share,in 1989 SNd e vious) tar. Earnings for 1989 included appnw -
~
1 3 M imately $7t)million of nonrecurring income ! 111 pnnides attratthe total return h e Ay o resulting from the settlement of a 1982 rate
,',, ,, h. 3;, { lli common shareholden realized a totai te-
,l order dispute. tur n el 13.5 percent during 1990 and an annual IN '
Alkmance for funds uwd during wnstrue. mmpound return of 15.0 percent lot the fi e g
$ tion (MUDC), deferred carryirg costs and Rrtrus oul RW yrars ending December 31,19'n This com-emtuountm f ' M. j . deferred return acmunted for 25 percent of pares to total returns of (3.2) percent and 13.1
,, o . - _
gi- IlL&p's earnings in IV4 compared to 32 y
"jz~_ )
I percent for the Standard & Poor's 500 for the E nm _ - 4 percent the presious yrar. These non. cash nw j l same periods. q
= i .
' q carnings represent carryingensts awmiatee:
l { l 11! common stock closed at $h75 per share m 9 ; , > Ds' 4 LJ with construction and operation of new gen, 3 l on December 31, IV4 up 5 percent from the f . erating units. 1 - 3 rat-end " '89 ptice. Dh idends paid during
!$ Mj 9 - KHLCOM lost $71.9 niillion, or $ 57 pe ![ }
1 1990 pnmded a yield of 8.5 percent based on
, V share,in 19'4 compared to $723 min 1, or
, ' I the stwk ptice at year-end 1989 g}4 $.58 per share, in 1989. This impnwement
. r
] l. i i
I !; f occurred despite two months of additional 9- @] opera' ion in IVE of cahic television systems ( , 1
%. H ,
;- 3 i ,
acquired in March 1989 1
+ i M) m . ;
- 1 T- 2 ;; i ww] t i a n w j]
%$3 sa w a n, m y ls njwn dah d m lA$4 !a O' Y$s ' 6? b {4?k'$$$\\l% $
b ou rcaOx J!c wla wn 1 rarnw < sm n;n miop-1!:1Cwhl%hn!hr !
&_i' '% ne w i+!
m[L,( a j ; i l. ' a 9- .. _ _ _ _ _ _ _ _ _ _ _ _ _ - . - _ j
, Jt , p.
~
h i L y, ['n lil AP debt upgradal cumt exrtsnnni.s Nn major financing acthity in 1790 $>
,,a .~uu,, I Standard & l\urk raised debt and preferred liir the first time since 1%5, substantially all m, . _ _-
um capital needs were met through internally stock ratinp for lilAP in August. According sw - -,, ' to S&P, "the hieher utility ratinp retleet pnd. ,Qj 17, generated funds or short-tenn bornuinp. t ( pects for fmancial impnnement as a result of j liilkming an actiw 1489,111 had no under. p 4 favorable rate treatment ty the lesas Publie j written offerinn of securities in 19'u [ Utility Commission, as wcll as the determina. !; in January 1991, Ill A P issued $ 100 million . h,' I tion that flouston Lighting & limvr is rea- l principal amount of securities collaterallied ii,j
\ V sonably insulated from cash tequirements 3, tw first mortgan bonds, and $132 million .
t of the cable operationumned by llouston principal amount of first mortgage bonds .g < Industries.' : matured. Ep c, I fj i
. e.
Capital espenditures dullne j-til adopts 1. SOP $ 4; Capital expenditurenuntinued to decline in a " " ' '
- In early October,111 added an empk3 re stock pg j '
1990, tellecting the completion of III A Pk 3 *+'"a *' ownership compment to its existing emphyee {, major power plant construction program for savings plan. A trustee is in the pnicess of the near term. Capital expenditutes for t il nn nu nssselst.s purchasing up to 10 million shares of 111 stock
%, j[
[ . and its subsidiaries totaled $340 million in on the open market. $ n h 19M Capital expenditures in 1989 wc re $429 {}T" 111 will panide funds for the purchases, up h( g; 2 million, excluding tilk $1.3 billion Sable tchi- y7 to an aggregate amount of $350 million. Shares F~' sion system acquisition. } purchased will be used to satisfy a portion of - k. Pajected capital requirements for IWl, j 1111 existing obligaLon to maich emphyee etm- I 4]j y > 1992 and 1993 are $431, $470 and $492 million, tributions under the savings plan. ; l respectively. (Actual expenditures and capital ..
,4 o -
pnicetions exclude AFUDC,refinancinp : $~ i !' u , and maturiti> s of long-tenn debt). Z< 54 s I - [l-l , hti 87 kn P4 v'
] imme of t q ine (( <
im, u,, ay,, t j M of 5%fererJ %L g s_ ., n ~ , o -
,e lr tpnhnan m!
' um m; , fi ll 6 s p a w p E
r [.
4 ,' N M a;, M US n L ui d d a. S h i u d d h ..d w a a h s il h J $ d m a n m A ,a i n .;.a a d a y M y f-) 'lhe folkming table sets lorth select.:d finandal data with tespect to the Compang consolidated financial condition and i;t consolidated results of operations and should bc read in conjunction with the Consolidated Financial Statements and the related
; notes included elsewhere herein.
)
y
+
i 3) (IHOL > WDs Of DOIi%Rs i si1ii fl k Mi s io WUt sist
' q:
, m w
, .j Revenues 5 4,178.576 5 3,7S9,7SO Net income 5 339,454 5 413.452 d liarnino per share 5 2.6' 5 3.32
.j Cash disidends declared per common share 5 2.9n 5 2.96 g Return on aserage common equity 9.4'1 11.7'l j Ratio of carnings to fixed (harges:
j including Al UDC(1) 1.41 2.19 M lheluding Al'UDC (1) IM 1.81 s
. Al \ t TN.l.\lk Itix)k Value per common sbare b 2S 45 5 29.Ob 1*
dj Niatlet price per common share 5 36.75 129'i 5 35al 1204 y _
. MatLet price as a percent of lxxil value 4 u il tR.I sit ' Inial aw is $11,S76.697 51121,925 if Imr.g-terrn oblicatiims (including current
, j nnturities)(3) 5 4.975.359 5 4,4s4.Oll!
Capitalization: 4 3; Common swel equity 4P1 41ri
] Cumulathe preferred stock 6'i 6*i j Ivyterm dcht (including cunent maturities) 53Ci 53Ci j nrun nri sont ut s: Construction and nuclear f uel expenditures j (creluding AFUDC) $ 35S,455 5 3M.653 CaHe telesision investment 31,186 5 1,339.680 "5'
v q9 5 h m ar si.u cn u ouo Pereent of constreetion espenditmes financed
} intemally from opera' ions 84 4 7&:i wj Ratio of carnings to thed charges:
a Including AFUDC(1) 2.80 3.11 I xeluding AFUDC(l) 2.40 2.44 g[(qf
~
Ratio of carnin,.s to fixed charges and prefened 1 i
?r; a
disidend requirements 2.N 2.60 c., M Al:UDC as a percent of net income (1) - 25"i 32"i d9
.d MM (1) Al Ut,C includes I(1 A P's defened carning costs and defened return.
M (2) Reference is aade to Note 17 to the Consolidated Financial Statements for a discussion of 1989 acquisitions and dispositions. 1 (3) include: Cumulathe Preferred Stock subject to mandatory redemption. ty j y 4 N
. ju Y %m ;'
i I a
< -d a v
4 ! .[E 'm 33 [F 5l"i A shji . M Mk?!%g m,Q ' DI@ k h' M9.m..p,$m up1 4 Oi ,f
/
.tm l, ,1 ,
. , ;c t
o
'L.'
.g
'f; f'
Gl *. y - e asc s. __t y. , s t f y:t .n asu.G W k u l k u e x k w s.siu m aakna L ai,u.aust.au w. w i.;h wl u w: M u t a A Lsa a j t. 'c .- p. V L f. i,1.. r 16 AR t SDI D DL (1 Mlit k 31. {p no no m no no no mz no j-
, t l
5 3,s40,918 $3.514,226 53,430.592 53,951,427 54,110,974 53,420.557 $3,784. sal 53 948,334
$ 395.254 5 43.t.958 $ 424,935 5 434,126 5 351,146 $ 299,857 5 116.629 5 201,712
$ 3.34 $ 3.74 5 3.81 5 4.13 5 3.69 5 3.50 $ 1.50 $ T '1 h 2.94 2.86 $ 2.76 5 2.91 5 2.44 5 2.28 5 2.16 5 1.99 5 $
15,6'i 12.7c; l-t- II.8ci 13H;f 14.5ci 16.7Ci 15.70i 64'1 l 3 , 2.36 2.78 2.09 2.8S 2.77 2.90 1.79 2.59 b 1.82 2.W l.96 2.18 2.33 2.68 1.47 2.32 k ' r.
$ 28,75 $ 28.33 $ 27.19 5 25.8S 5 24.31 5 23.27 5 22.23 $ 23.70
$ 28JKI $ 30.00 $ 34.75 5 2X.00 5 22.50 $ 19.3S S 20.00 $ 18.13 L lv; S3ci 40':1 76'i f 97 9 128ci 10 sci 93G
$10,186,752 59,704,164 $93105,258 $8,590,780 $7,486,153 56,543,716 $5,662.498 $5,169,4S2 5 3,598,026 53,234,726 53,20S,160 $2,952,926 52,683.319 52,274,616 52,056.770 51,922,835 p. .p
[ 46Ci 4S% 47th 46Ci 45ci 46's 44"; 45ci [' 6CG bG sci Wi Sri sci 6"i Wb 48ci 467; 489 489 Sori 49ei 50"; 49"i m4 . t w. i:
$ 543,862 $ 755,273 $ 893.053 $ 997.982 5 913,825 $ 754,965 5 708,254
$ 662A155 l-
$ 1,130 $ 49,701 5 26,249 -._
37G 29"i 35 9 39Ci 37G 42Si- 5'cF 4101 . , . i H1 l; 2.76 3,35 3.36 3.76 3.55 3.50 2.29 3.63 L 2.06 2.41 2.42 2.S4 2.99 3.24 1.95 3.30 l 5 .- h 2.39 2.87 2.95 3.26 3.05 3.01 1.94 2.98 b nO 49g 3}ri 529 459 31er 17Ci 529 _ 22ri p p _f t:
- /
( i i i Ir 4 : ('. y , kh. r L.
W ^- W MM, **~" yBT,WTji.
.; w . ..
T. WWi+^T ;'*'M'?
- . ~,. ..> . . .,,
i; W [a h,.G(( G i}Q . fQ;, n , fkf}fl0Q; . . ,QQ g. hf}[i
. .m u.
Q QQ
- UwMm. liv.ibhaud.Chas.l2e 4,iAi:w 5 divbhiMhw a a w AM-ahhslu ui.d ASAs :a:ad Ais%,4jd6 Mse ouston esperienced its secor.J Pn paring for rising demand
- hottest summer on record in 1941, licspite increasing demand, I11 A P has adequate helping dr hv ilouston 1 iphting A generating capacity to meet the current electricity l\merMikmatt hour sales up 4 percent mvr the needs of its sen ice area. The company has completed ,
i piniou year. When the mercury soared to lui all major generation related construction for the degrees on August 27, til A P also recorded an all- near term. l 1 time firm peak demand of 11.2 million Likmatt( Continued grmth in the llouston Gulf Cont i Including intenuptible demand, the peak actually area will, hmorr. require j served hit a new high of 12.2 million kihmatts I lil AP to add at least l 1
'lo a lesser extent, strong selea clso reflected 350 megawatts of elec-continu"d impnnement in the i fouston economy, trical generating capacity to y r l
which has been strengthening since mid 19S7. While , , its system by 1995 in order to l l .' j h national statistics indicate the start of a recession, sent its load teliably. In l l 1louston continues to eshibit such positive eco- preparation for the addi- l I i nomic signs aunoderate job gnmth and a strong tional requirements, lil A P ! I ' l residential hoasing ma:Let. has Iully integrated conser. l Many economists expect f louston to haw one of vation, demand-side manage. the strongest economics in the nation mer the ment and supply options into its
* (,
l next sewral yrars. That message recciwd interna- resource planning. l 1 i tional publicity in July, w hen i fouston successfully Demand-side management ictcrs ,v , ] i hosted the sewn-nation cunomic summit. to programs w hich encourage utility l 4 , -.
== _ _.__ - - - -
Lax 'r.- , j
+
NE h ' ? My m ma rmy e , ;
! a o n , .m nc ' r !!IM q.% am sa _
E Il d l' f WI, e y )*j R I
*s h r % lv:.n. hd : ?I *I1 I V'n k jV s h' b nas c.? (m! Cmc w l.r!; i &,< n i' '
- _ a u n w e a- s J j oucn m un. p j
, t a% ym 1
i
, t :
ir + n n ; . i h
~
k i T a l t
.. i f, ,
l t i I L_i1 , , . . . . _ . --
.. .. r .-
, . ,- . ' , . .. . ; ,sg .'
-2 3,.. : . 'y,
'. ar. ir r .'fig,;cl3 . , 'U ,.;' ., /' ,. .i b', 5' ,;, ., ,c{ h l,[' h , ' '.# 1,. .
. i f , {,
. e
. : r. a
, 3 s ,.
i
..? /.'. . ' ..
4
- g. .' ., ,e' - . i,*. . , . ...
- p. >v,. - i-
---9 y: q.p. n
,y ,. y ?
. . q,.. ,.3. .
- i. ; .
,g'
~.-. .. .
,. .' . . . . , , . . v.3
, 9, . ,.!_. 4. av . .. , , --.'7,'. ..; ;.. . . , . - ;
t , ,, ' - , .1 < . ,g i 3
, , . . ., e s,
.~.r...
y.- '. -)I. . -
.,u,,
- . .L
.. v . :, a, ; r...
- .. \ -; mg..?
*'t*. . . . . . ,,, ' .'. , , .. . .
'*p; s
;;' <v . .
, , i %,N
. 2 A , ..i . . . . ' ' - -
~
, , . 'q.- ,, g *$ s - . ; .> Ii . '
. .' g y- s r.,.
4 . * ; .>;,4 i.f
)' : . g.
, - - ,-i i,
3 , ,, ,. i-
- a ' ' ' .
1
., ., , . t g t 1 . ,.
,; c. s ./.'r . * 'j ,',. , . ,j
..,i.. ' - .-. ,...
7i... . .W * . ., gi [s.f,,".-.-*..
.;, . - > .g, ' . .-...
.p,... . . .-' . ,,' . . . . . ,' ' 4. a - '
',1 . ;-.. - - , . ' , - ], , ' , ; ., . .s , ._
% ,1 ; ..,.. .
. ' +, , - l *'
- 4. g,
~..',,',.".,..e;',
. , I; - of , .t :. . .,. 4 9
. . - t , y , . r.
'1 '-
av. ; ^ 3 . ,; , E: 4 -
,- .',- 7g ; , ' ... J.
.'tt.- .> ' k , . j
- 4 ' .a -
l .- ., . y .y S ' ', 3. . .J.y,_ : ' ' ( ' t '> ~
.' 4
, s.
..- , . r, 1 c .; t ' ' .~ ct . ', -' . . _ '.\, ', l - , Q. f
.\ ..l .; ' ' '
,sf. ,
' 'f ;
' .g ' ,,.,' [ y 3
.r a .
o .. .
- k. ,,' N.h, f b, .i . [1 ([,i0,I .$ .:I),k,. , f.. .., M .j l'; k. - , .[ y U.(,, Q '. M.'l " b,NI'. .[ . k ~ ! T, ,
N .4...jv. . ;, .. J. ::$. : : ' s ' .. l l. .* ' q . . 9.,. ;.'[.l. .'QW , .'. .- N: ) m . .. . .. . . .
.l.','lym.l.h, , fs,kh. 1'R.O . -
-D :
s s ze . .
,e
,'r ..
' ...g .,, :
^ s .. . ;..
\'..'.
, .. l _ ; , < ., sith ' & ; '.e . .M b i.
,.' ,,' ,. - l. . ..
- f. ..,,.,9 + W ' ; ' l '
- s.;el'-^
.% )._ j '. ' . . : :i g '.;.N 'l, ,* * 'T.: ..,l -
- ..,, -^.;Q,
. < r. ,. . g. f x., ,
3 .g.
=
. .. .. . . .ry
-l..,.,
. 3
. t., . ,..m.- ;',. ~ t ,- ,..,
- s. . . . - ,
'* ; , , 4 ... .o.
3 .. ..s. ; y .4 ., . . . -6, ;3
.. , ; , ,i-e.
',. p, , - .. .c.
-i* 9 ym . [' ... , t . . \ ., . , . . 4 , , ' ' , ' '.',3. g,,
, .i .-fe>y ; ".'
\,; g . .. - ., . *
'. ,];,v.' ,[ c '. .. ,~p',p'/
t -
', 5q,sQg -g )f/4 4, ) -. . . , . ~ , . *- .; 4 . .* 3..' > -
q. 4m/ ,,. .4 . ' . j. c.
. \ q s, ' '. ' , ! . , gg ) 's . .. -.')'? .,; b'
.. .'y
.c . ' ? e : .t.. s . ' qe '
. , l '* i. . ..
;., , u - g %gr , .
..]
. , . ' . ...~i. .9 . . ', ,. '. . f l. .' y, ' c . , ;i ' -
, " .l .
.s. .
,.'.,3 . .. -
..."..n.. e
,f. s
,3. ', ., - '.
8.- , - - .n d. . , , . ;, - - i ' ' %. , ;a 'N.,\ lf,,'$*_.t" h.i
'- i
,: W: '. A.
. s .
.c' .
- r. . - . M ;;' o > .y - . . ,, , . , ..n..
. '. .? Q'f>'r .. '..
.( , .;J h ' ? ? : / .' . ." <-
,f, ',a-
. g ..' ll. ',; . T:. .~ * '
' - ^5 *c;
'v.., - :s , " " , ,* e .:,E. G ,(b j . .
..r.,..,y...,..
,y
.. m : ..,,
); ;. . ,w. - .
; e:
; . . ] ' n ,-
3
~ _ ,.f.. . .
( q.
.,,,,v.,. ....,,?
2
..J.
.) 6 ._
e.e~ q. -
,og
.....<; r ,
._a
,. ;;, },%..<
s,,,,.. l 3 . . x , _ ', ,
.c . .
j..;-. ,;
. .. p , s ..'.y , .- g,. 9,
. g
- 4 ;. ,,
,n ..*,',_.,Q'.r,,; ,
,, ,4 9 ;' .,.'(- .: : ' ; ' , ', ,,
. P,*. .s . ', ' f (,;e-g 4; l.;.i.*>,'.*'i-'l',.
' ~
. l,j[ '. 'E , . ' * ,'
', _o-.. l, . w f,
[. ,,.l :, .,
.' '. ', l. '.[ i y .* * ; ..- - .
, i ,, , .. * . ,; ) ? ,.
.,.. , . - ., . ~
. .; .f c..Q
,[ ' ( . - . ,.
i ' . . 1 [ ,'. ',.. y. (, [*., c'. .
,3 , ' b
.[ i ., -
J ,[q. . . . ' ., . ; g. g.i . ; J...s,. ., [J .;.
~'
i ;. . j ,.f ' tf -
,t.
. .*. . - %y-
.. ,.., . ....' ? ,
2,. c . . , i . i , J') Q l . , L,. -
,4fl .. vl-} ,; ;
' j. , , , " ' ... * I
, . . . 4 I } [- Y . *' ,,
y,k q.. ' . , '. .,'.
. . . , . , ,. e . .
. . .. ,, . .:..a,
. p. ~ '. .
- .. . - c .y. , .a,.,..
',.g..
.. .. .. .,j., . a
. ;py.%. .-.;c.*. ' ; , *. .. . .(q,
,,\ E,,. . gi cs.,' e - ' e,'
l ;-
, h . /[. . , .
4 .g 1 . , ~ . .
',..'.,l.'.';.,.,*g'
',.'.',*1..
..s e.. . . . , . . . . y .: .
, - .i. .' .
.. 5 !d y . y., ;. .' .i ,; . I ...'. . y. .. .%, , ,.. .q... . t a.g{ ,lp j, t,
..'A- 4 . . ' ,. ., h, .., :.
, ,< . ,, , . ..\.
., ~, m ; , .
*.x
,- j(d..- .' m[, . ' I ) i, , '
.y.
*d. (; ,I ' ; ,[ ;,.
a, q ;, '3 ' 'J ; t[{
; - . " . .', ., g . N ,
l
'.-}z'
. (.( . . '.; p. [;J ..
. . :s . . . . .. . . + .. .
. 7 ,g,: y : .
e ; .
.;' s'".,,.. ,,, s?*..'.; ;'4's4 g, h E. .# ^,
4,, A - -
,.w ... ;f . 2 , i j :,, ;.
.e m'- ..,o.>.. - , :.
- m .- d
.Ms M " '-
. y~ .- w. . . . l:,..a R .,i. ,'.' .: ' . . &. . ,c, ; ; .... . '.' . '. ,?'
o . ;); . .> : ;. ;,.:...- : : : 9..; ' T<;,.. _.. ..,. h,
. . .. , ; t;;.
- . , 7.
'.1 . ; , . ,. s p 7
. ','[ '). . . . .. .; .- 4]' ' '; "- .' f,;. ,', l ; [ , . , ,
,l-[ [ }11:a.[ '(f. f' y l ],a :
; .; e c, . j,
}';[' , , c,g r
, { , , " ' . q'
- :, : - - ; (p:.> .3. 2 - ' ,:' " ,.3 . .,. : s ; . ;. , ;. 3.. m :: (. .;&.g (.,. ;, .
, ., . y ;.m: .w., n. ;3. _ ; ; _. . ;, . ,
y~l. J.: ' . .J: , )
.: ., :<V A. +'a - -
- . 4.M , ' . 3
'.) l-: . . T ' : ' N. .. . - i . l',: '.' ,. ..
, , . M'. Q . ,,, L . Q 0' ., . ; '* ' ' . ., ; !' ' S' ' : - l; . ';I' ' ~; . .. . . . [ fh
- , s' : ' ' e , I'
,'.? '
; . s . ,. , ' .. lf. :' 'r,o . e " . N; . . .. 'j.'-fC~.y:: [f- .:
.* Q:*.c . ' '- ' :: ? . ', Q % :. . . .
.., ...-7i
, - . . .b .. ;. ~ ^
l-) 1'e; W ., '4 . x!
^
l, 1 g . ( ; . ' ;,_.g-.,' . .,, 3. . x, . . .:. .,. %: '"= Qt;.i;'
. x, .
y :
.;{, . .
Q
;.c,
. m, V 'Q , }f.,;. . .',; lg. .
. . . j .,;s':q . . . (: .
.. m.
~.
.'t..,,i. .f , '3. . ' ' .' i, ' l. -
s ,
.. V.c, m' 6 . ,T.i j s{1 ; ,-.,.y,,, (y . .j . ,),. ..,: 4. 3 *
, f,,o ..., ;)... .. .{.e.,
. e * ^.8 ,9-- .
s- 3 ,.s ..a..,-
,: -i. , .
- 3, *5. ,,g, ,e. ..e '8P , . -,, .. 4, .
.f. 4,
.j
(,,, ..;. i ,
*y. ,[,G :g y's '; , llQ y y
%l . * ' .[; . _ . _ &y , ,
. . . J , ;. .
,f' ' ; 1, l ,. [ L 1,. _ . ' ,yJ ;. , : : ',o , l . . ":s , - . ,'^; ;, . .' ,j
.c .!; + '; ,:: }': y , ' ' y y , 9 , .i. y ,..:.' j..& *
. [ J _ _ ^'y ln Q} . . . ,.,,.
y j jl >; ';: ._ .y , , ;- . . . . , ', . ~ ;_ ; . , ;. f ,. ;. ... . :' -
- Adjy::{l c a } .. _, ' y.4
., 9.
y ;-;. .; {' J . ( 4, . .. M. ,. . . . . , ,,, .. .
- .. ; .. .- s, 3 3 y.[ .y. 7.g 4o,.., 3. . / _ . , , . . :.n. (. 4. .w
- 3. ;. . . . .
~.y . ..--
y[;. . . + ; a, +cy .. .y ,g;. g .. y _; . .. .. y..: y s c .. . . x: .,c- g , , v.,i,,.>['p*.'.,.
'g'* .- ,' ./
,4
,d
. .w .-
s
*./' .f..'
" ,[ ;' j. 3'.. ,- l, , .'::
.t
', 3 , , . . , ., , , , .
. ? }' y j.L.' ; ~ l 1.. ',% ')lQ i '; \ : / f , .' :. ... . k, c
';. 5 ::,'. ::q y.g.'i,
, ., . 4 ')yl *s * ; ;; wh(q) :*
i;-[' ' _. ?,' <
' f? Wv ' :." l: .j. n.;:.',yL.., :;.~c.
' . *. W::' : M l ., " p
;: [- ;;. . .g r , ,g..g .
.;/3 c
? 7 ..v4,,... ,. .. \,y) M..'. . .~ .x;;;.y%, e. ' ;; . ;; .; s..
. . - / . . ;. ::j ';. ., c.'y .f,.,
_. ' ,+ ;
. . . . . o +,m ;. V: .. :.,r.Q, f , . m. .
,7 .
, 'cp ,. 7.
. j. . .. ; . . _ n.:;c ~; '
u
,,.;h. , , . v . .,..p, .......
. :.. . j ."..: . .
.( .; , . ..%.<i.
y. u.... .a 4 ) .ss '
..J, '
, 4, v. , ' q , ,,y, ,
., - , a,q, 4,. -
(. ,;} . H . .
' *--.'>,. J. ,~ . . , y u ,,..b. f,.
>,. .;. :. . ... ' pg 3. .. . f.,Qz~' . . f,
.? %. ,.,
O f, },:.p :; [' ,L. ,f .'.';],;y,, f. g[o . . :p. . _: L y,
, . , - ,, ., g.
n'-. . .v-' , . , . .
.'..],j,y ::
,c ....
. :.e .. - ,, , ...... y-*
., p . ...,1.. r s
.j . . . s,, s, c a 4 3 . . j e,'. -t', ./ . ..g , . v[3*. *j g.....,.-
's..
. . , ,r ..
. . ' . . ;5 * ..j I . . ' +.
i
.*.e'
. . ;: , $. 3 N
. . ' Q .,., .. g .g . ..'?g .', , f ss ,0- 3i- [- l . :
' ' .\ 'l', .,.7,',. V[ p . 'i . 3 y ,e\ ., . , .,,t' .'..
i ". '., ,* .; v e.
. g, ; 1. , ' ,h ,d ..y...
/r .,
. . ,. o, . 'c J ., g .e g.
. . . i J ,' : , , ,
"'. j.; f [ i, g'.. 5
l -
.[ . ,..- '
U. .h .. '
.' f e ,
[. !.! ..
- '/ ' . , t [ 'f,[ N.
T
.n.;:f :y;. ; . ; .-l. . . . . ;, y A1e[.f,U[. D; ;n .x, wc..:?; ;.... m . g , .,w t.,
a y- >< :.; p : . p:t., ., * .4 i;,. ; . ..
.: p.::.; 2
,.? a y . .. . ~ ,m. : ,, . 4. ;. .,:
.,r,1,: :. . ';w .
- . 3: . + ' . . .
v.
. -_ .), .. ;,
.y..n.. .;,". . c.
- 9. -
,; . ::\;g . . c . .:, ,; , ;. ,ye.
+.
s ,. u ;
.u .p c,.. ..
,e . ,;
t, .g; ;...q %: . .; 4.
;.n 9..
j .k,N,1.*. .k Y,[$f,l .Sh_ _ .ph, [. q. [O i . ' . [.
.,4[:.;., [
p:.y gu xa. . t.,;,.g,q... h,;;..[h;k,u[].. m.m.y[, ,r.[hh, .[. O.,j. ;,:1Q"l,%m
\[; :. y(.t.
.<..... u.. . y.g, 3.m.m.:.a .t-:e 0 %. ty. ;w s . .L,v. .;. .m . .. . s,am s.,,.",.9
. . . . . .,..,a.s. m . pn.f. .w.c .. . p: s... . ..
.~. .
. ~. . 4 .M.,.,,,
x . .
>....s *
,.:...,..,,.. ..g.; ,es'.. i .
, +:
[,!; .';:< (., . .,;f f
'. - ,- .' ,e }
-{,, n. f.* y '; '4{ K.,*l.\";;Q.'s ; y' {l;l; ^ g,l( . , .
'. .e( (,k,. ....lg. 3,.
l .[ '. . 7 ;.j Q.{. . .Q.
.hf . ,,j.. h. ., .x,h~$ >h.$.5, $$a.gf. f J.bf_ j).*[m
~ m.-- .,e...
lp[~. S.h.h,&i(&..&Q,,
~+ 2 e ~
N b y
, hw&....,. ..,,.,1.)s - * :.. 2 ..
. ' .:,; n &
3.h.h.ll&.&,y. -Q.. . Gu ; m.
.&. -- wp a F h,.r.*:
.) Y .
s,,. . n
..s m w :..;?. A.'.'
O. . ' , ;. TT"hl
;'$4- +
a eg.)a a.. ..l;&.;. .p'. E y.. e ,f 'q;:' Q . . , v e. :; . :.. ' ' . ' . . .;, ; ., x . pw
- 1. y . a .4. . . g:. s. o.,
.m[/.#c . f, y*l., ' i$ i->2q. f./*L239, [. . !, Y'O *, . %.N.:]w,
. ;; ..,1. , a.,
- $ [.['h i'.b.
L.y,y'g);q :.'Omm.3 j,W, ;. .
.j. .D . .]((p:",;.
y]$
, .. q .
; p,' ';;(. .f. t.
! [;..: 5...) ?\.[w:.
, . h, ? ,h. . J. d . h.,.{
,9
. v.o. am . , . .n. .v w. n
. ;x . . . , n .
~
.l lf k. l; l 9ll, ;, a .q' ; i h i;f f?
{:.. ..m f. '
.'l.Y. f'lf. .)p.p . ..
-~
. n.; y M g . 4 6. @. . ry f,G q w w.w.s . m _.m.m w :. m
- 4. QQ y,qwa. .Q.. ~g.?.5. . m.w.e Q.M.W~V%.~,.. w . w .Q. .:.wg .w
d? N customers to alter the icwl or timing of their electri. A new 10-year agreement was signed in January ? 8
, jjn city usage. Ily IW5,lillP cyvets such programs to IW1 for 270 megawatts of cogeneration capacity. l o s
% reduce demand ty 225 megawatts compared to w hat The agreement becomes elfeciise in lW5 and etwts l ju \ b - 3 otherwise would be requitec. the same capacity us an existing contract which D expires at that time. Q3 l114 p plans to doelop on implement a number of
/] new demand-side management programs in IW1.'lhe Appnwimately 17 percent of 1114 pk energy needs ate currently being met with purchased power 4~#d- y large:.t of these projects involves commet.
a resourte that ihoukt be available for many 3rars. Af cialcool storage.This trehnology
,.hf? M'9. ,
ihifts the operation of ; ne big question facing the company is the price at [1 commercial which usailabk power can be y .) g < 1.: - s 97 i; air conditioning purthased.
*M in addition,
'g{ q' systems to off peak periahbymakingiceor the compan) is 4-g g[h cold water at night or early exploring p,jk n mominganJ usingthe
; fid = chilled water to help cool g- j%
1 S 3 A options for con.
#y a W W
^* struction g the facility during the
, A ,.
, hottest part of the day. ofnCw y,f.
n
'RJ 1, r d lilAP1 cool storage pas tur-program, which is stillin a bine capacity i , 4 pilot phav:, encourages use and reactivation of
,m of thispitwentechnologyty retired generating facilities.
[aNiyj jy M udNy ' prtwiding technical assistance and rate incentises. y; 5m f} u .
%O in addition to demand side manage-
. 4 ment, lillP also is carefully resicwing a - ,, - - - -
m as ee * ,asepp w -s. ne - mx m I""""#""" ""' a - recently sought proposals from other
, Q'fh t snim wn n;vic h :wr w u!
utilities and cogenerators for power pur- daim n ,w
, fh chasesbeginningin lW5.
- 3 a
W -a a Jh:b +h M At. -_- ___-_-____ __ _ --
QW7TW"[ TR ; g3 k' na t-N#, zu7 ', % yA -
;' &" y w .
ha JO ; 1
. 3 Wp , ,
, a j.
(YhEN;lA0$d.4&6& aAhi!XEWEsG ibANnikkuud DEI S % O M A L L* i & A M M N Pniteeting the emirvnment tytalucts, ranging hom the use of ash in road con- t, p cencrating ana deliwring eleciticin to its cus. suuction io the dnsionment of arnriciat ints to y tomers requires iII &P to make etficient use of promote marine hie, scarce natural temurces,while almateguarding the o environment. In kucccefully diWisif)ing its mis of South lesas Project petiortning util tuel resources,111 A P has built generating plants Iil APk newest electric plant, the pintly4mned South that altcady surpaw most of the emission standards Tesas Project nuclear generating .tation. performed e Congress imposed in the Clean Air Act amend- wcllin lW). tecching high mark in annual evalua. 4 L t. menh of PM. Although the full regulatory impact tions ty the Nudear Regulatory Commission and the U of that legislation will not be known for some time, institute of Nuclear limer Operat ons. SIP achiewd 3< v (les n(Ik anklc a e a nI On awla e cE a(N) de o! $ affected by the new air quality standaids b imprme its ability to piotect the public in the h' Protecting the environtnent goes beyond merely unlikely nent of an accident,in August IWI,STP 3 meeting the requirements of any single piece of leg- began a program to enhance emergeng prepared-h( ' n, ,. islation. For many years. HlAP has conducted an new. STP aheady is regarded in the industry 3 4
+
.~'~%
%s ongoing environmental audit progtam for its facih- #D 1 as a matel of U.s. nuclear iahnolon and safety, e[y ties and,in some cases, operations of mntractors. ~ and the Iacihty continues to icceive information . . .
- m lhese cfforts are in addition to the companyk eschangc .isin f rom utility representatiws from (
cooperation with regulatory authorities in th( France, llelgium and other countrics. , w, gy,y numerous inspections and audits they [1 . , conduct of IlliPk tacihties. . in addition, the company is actiw k(e[' ,f
% ' h_
i p.
,e ,
y c. addicMing environmaritaliwucs i ;y y : y' - N rangingimm yiohauhmate
.p4, Q{f
,n g /nj .. wn . ~ (e 3 change to the effect of lJ' g
'l._f y ie . ,Q<M
~a()
y nm ,s, w , , ;. m ,, g,
.,n, ,
n e ,;. yy e ame-ece,mia,. ss' .*A> iM me Wee -g s e IIIAP alw continues to J i h !.r s ,i t of i o-x "M y?-L M j77 _ y~ o 1-encourage the dewtopment of .' N yk (yl&' new a; plications for coal combustion p*W # M. t1 j g, ;,
<e 4 ..,e 4: f f
7, 4. c - a f ,' ., a ,.- .e 4p , w,., . ~ ,w ma. .
,. . . s .
m-
.a.x. -
. , ~ , . - , v - ,a- a . - r. o ,. .---,w . , a .u~
61 j llate requests filed ment wuuld giw 111 A P a one-step,5313 million i in June,111 A P recciwd final apprinal to include a increase to base lates und would include recowr) of portion of S I PA construction and operating costs in the icmainder of fil A P's inwstment in the South a' elettric iates I he $22 / million rate order conhimed thas Project as well as operating sosts not cia tenth 0 rates u hich lil A P implemented under bond the tellected in electric rates. Ill A P woulJ f reue its 2
! previous year and represents the first step of a three- base rates until hiay IW3. anJ fuelicconeitiation
.j phase rate moJeration plan would be sewted into a separate pnueding.
In a related dechion, the Public l'tihty Com- The settiement contemplates that the new rates e n wdi beconie c ifcetive as of Ntas 16, lWl, but is sub-mhsion disalkmed $373.5 mdlion of lil A Pi $2.S i
...{
I bilhon inw<.tment in S I P. lil A P was permit- je(t to appanals by the llouston City Council and led to reduce the thsalkmance by the othrt municipahties and to hearmgs and hnal action y value of pnueds from a legal by the PUC. If those anpnnah haw not ocen 4 settlement with the plantk oriemal obtained bs Mm 16.111 AP m,n implement rates 4 architeet / engineer and constructor, under bond at the $313 milhon lewl
~y
.! and certain t eculatort assets. tesull- f 4 o o ing in an afict tas wnie-off of $15 Programs impnne system reliabilit) million. The ruling folkmed an : While major generating construction has extt nsiw inwstiganon into the been completed foi the near teim,111 A P y
, prudence of S1 P expenditures. has continued to make im.
In Nmember, Ill AP filed a pnwements to its transmis-
;! request for the two remainmg steps sion and dhtribution spient.
;4
; of its rate mode F n plan. In 1 ch- 'lhe most shible of these 3 j ruary IWI,lil AP, the PUC Gencial projects dunng 1%)invohed
- j Counsel, representathes of the the replaecmem of four 3
City of Ilouston and inost other 3 parties agreed to a senlunent of that request. 'lhe settle- .g. se Y
\ '. m .m s - ,,
' _. " ,h i j ,f.' u EEL l h:i&& -
a
, x...y 3yhm
, fll
-k l l
" t '
m m wse - v o c-w ng
. f .e spa ;
3 %w r LM 4, w N, L h&liLnidlk%M,,~MOha:,%A.b.. s MbslkadkhMakk.L~Giku% ,n uuJia - y ; ;y y, a y> . + +, w_ . L I i tralismission towers destroyed k) torrbtdoes in 19S9 plogram pnh' ides OduCalion,d IcCluf V5 and instlustion Itoutine construction pnxedures %ere impossible at no co st alknung the customer to benefit ftom ,. t i because of the towers'large size and heation in the iil A Pi .icars of esperience in this toca. Impuntd midJte of the llouston Ship Channel. With each sutw ht;on ma ntenance benefits the customer by p t bottom section weighing 1.1 tons, the tow er sections prewnting costly dow ntime, w hile impnwing the [ were constructed on land and barped to the site foi reliabihty of ill.A P's entire ttansmission system. ., L ussembh The project was completed in July, folku- Sewral other programs aimed at impaning i{ p ing a sisteen-weck construction peliod. system Ichabiht) were implemented in lW L One [r program uses computer sof tware dewloped by ill A P is recogni/cd for its espertise in g I11 AP staft to identdy and cortect substandatd sute.tation opetation and maintenance, , . [ t-m^ circuits before the) cause repetiti e senice intet. and in June, the company began a new program to help its largest cus- g. p ruptions in Aprilaystem dispatching operations ( A ., ,.. 4 sv-M r tomers maintain customer- < , } f ) ,, were transferred into the nunpanyk new linergy [ owned substations.The M f ,
':. , & Aq
%..'~ 0 =-
Control Center. The new f aciht)), computer control
)
i fit p 3 3 Iv. n l'- [lr d(p 3 (z 1 i j 3 5 '.S,j system phh' ides enhanced Ichabilit) along with ['( y i L n.
~,
.,f. 3
;;- vg -
r i gy l ;
' q [ ;,i Clficietit powVr plant operation and Onhanced f. a ,.
c me -
.f b i nse k ue bu )k k (Ins.
Jacq . . t 4 y y 2. hD c , , n V i ; {y yc, .} , t
-7, c4e Q'
h n ;, % , ... fI j' Hinw sm o aL b m' (' s' m a -n. , , . {fW g ,n~
'f ,4, ,
J, s w w 4i
, r. , h pm
.f 7 , '
, [~
l; 1 y%,). , fQ u i n. v;O , n, ,w
.fk g .
s.s . i
~\ q .
g
, 7,4' s
/gi
- g # -
'! t
- i. O , <
f MO
..I
~
x .> ; j?[%"RW+ - YQIb S;y
- M
.mJ,./s,@*lW, w 2 - - l? >
i- tRy; gn Qj , o :e - f - - < ,
%nwhlx!?h.t &.(5 l slaawma,am N T1 l, Vf \,
a L,l w3--fmb a ,c &; pfh,,..g m - 8' 3 f '.
.b n 1 n lWi, Killn)Mk management fwused itewnue gnath for IWiescceded industi> mt -
,i m3 q on impaw ing the financial. o;wrating and ures. Itewnue pei customer, a Lc) peitormance
} selYice pellof fndfKY of edhk' teles ision me.Bute, was $31 per month, conipared to the 4 g
%ysic!11% the Gimpall) aGjuiled in MatLh 19$9. indusit) aWIage el appf ostinalcly 528. llolsteled y
i Operating as paragon Cable, those s) steins helW h) luo addihonal months of %) stem operalions total
)a oppiosirnately 550Jm customers in some of the icwouc grew almmt 33 percent in IML while grou nakhon\ aI[est cabic malketh ine1uJ@[ ban bnIonio ofcIatknh fMbtineIedscJ nealtf4NfcIcent<
I anJ laredo. Tesas por tland, Oiegon, Minneapohs y y .. 1 Minnesota and Orange County, Cahfornia. Customer grtmth ermains Isc3 objecthe q' uirh interni expense aswiated with the aniui. KlilrO M added mvr:4am basic subscriten in 7 g I
%Ition cofninues to impact hlllCOMh financial IWI, an inCleaW ol 5 peleent mVT 19S9. Ildsic pene-4 .
k, cofN dhy hdkalf(ad) ebibhhkhed t tiNng N beNbuf e oi eNhih (ubto!neks ekpI(bs(d ak W;ep itself as a leadet in ternB of operaNup lWifotmafRT. 3 lWreentape OI[Utelitial eahle housellold% flew A Key contributors to this pertonnance are cus- neatly 2 percentage piints in lWL At 49 ivreent, b, y. ;
.; j tomer ganth and the additional ew- Killf0Mk hasic peactration is neatly 11 percent-
,p y
;s <
d nue somves of pay peraiew and . :p . y' l, ape points behm the industn awtage,indi-adwrtising sales. 'Y M j r-- (,$ Yifpk))eatingthat
~
+ ieeu.d n - h en n eniu m KillCOM ,),tems o---
[ d "me n 4 - .: e re m---
. ? 'l fi Ytf E f? II l% 4+ UI kni!E ' E A $ l' f $ 0 h' ' A I \l
'W /{ w , ,,f.a @!c : Alt!( p m
- ( mea y ale,ud ,1 1 of a c f kJhj 'E
( 48 h b 91 '[f'.% !( '. s 8Q' ) N N 5) b bi % N ,bki b IbL O$ \ / m o . .
! f . .I k'4 6 4 I E4
- h J h. , i' Q n!.08!m Jb
, 4 e.
;7 . .
d[M iggj
/ s .
b
;nc :s - \ ~,
4 g.R
., j - ys f 9 , . ,1 Ntk ..
8
] ,p a
4 / Ns - e ,
, . l
'n v i)
A ,
..., ~
g n ,
.x
,% (
- a. u L .
- ~ ,
-o
=
q c y _; y . -
; y-yn e '
4
?
' .{ .fi
/ .
m
' ' .~
,t f .
'4 i ..
M' -
.. , ~ s l . . , ' , ,- . , , '
. (d T - '.
* ' ' , , , '.. E?.s - , . ' . . . ', ' ' ' . , , .
t . , ' ,
, . .q . .
.. "A' [.
- i - - 4' , ,. .* . F...' 't
,t
. -. . . ., .... .s j, ' u. , , _(;'h
'4 C
' . y ,
' ,. . e,, . .
*}
,m' g ' t ., C :
, c
', .. c. . . .'. .
p , ,
... o . .- - - - . . . ; , A., ; ;L, ;.y ,
- .' , ' h# . , , ', . '
, . . , , - . .' ., . .. k
.%a
-- x +. .' , -y.': . ; . . . . .. / .:.. . ,
~. . .a
~. 4%'- ,
.)s tU.
' #. 'd,..,'y t - .
1.* J .m,* ' .. t [': tfs ' 1 **.-
._p.
. y q . 'c.9%. ' '
' 'i e I, f. [ gg ., 3
.- ., .;...e ** [ ' ' * , s . i. p
* ..* ' ' . 1'-
; L: . 'V r+ _. .v k';, , w , # ,
s , .. ; ;..8 ' , f " ' .
...i.,W(0. g..) f
., . . . s q' .- Ja .7.%" { '3,'ji, %
', ,g. ... M g'i [ 7 l . (Mid .-
,,f
- c. . t ,. . .c >s
. 7; ."'. 6
. < , - : ,.g,.t-
'y., ;
^gw, ,,
s :.. . . . 3; . . . < J , ' , < ;?4. 4..,93 f.. "
,< .f. . S 3;j{ mI \' .Ee. 3, ".c ,. , .(.,-
<J < - . . , , .
s,..,..n,... .s, . .
, ; ., ,,, ,. y ,.
;% .,' \ , 'y . .a ' ', 2 w. ,g & - -
, , . ' ; . . . . ; v. +
.2 .
'? t'
,l .M
' ' . .,.. .e , . - .- . .._ %'. . i, Jg ,.-
., ,, 4 t , s s ' c<, , ' . . . , . . .i . . 3.
a ,
,q y
. . , , 7.g4 . .s
- a. g, ,'* p",,4,g' f9, .,gT. % se.v.. .. .g .
9, 1.' 6 ~ . j .....,/ yj j , ,. f
. . . p6, { . . , . g.
g ., -
" '.'".s., c .g .'. . (' . .. ,. gf}., g.
m
.. c. .*
t ..
. e .. . : .
<.ye,,.,s_- , ., . ,
s, s. ,%g>
- w. g uw .. Q g .,
, w e .a -
. ? yy - '
~cl\.g,j.
l Q,,, .. c3 f'up.w. . ' 4li ' Uc. Q L..*'i,. 7~..
. ' $_ _fy..
w'
,p .y s. n.w . ,. ,e . .
. .. ,. ;,, c. ,
...p. .
3. l, [ J.' l' l. \. ? *
. .w .y; .
t,
, a <,,...ye.c.+*e,m,, e.*,v.
...,f.l. %' m(e .
, 4
.o
. .m f . ,
'A s. vl l4 Q. l. w ,7
. l ,
...- 3 .> .,
.. + . ... .. ., .. e ,. , .. .., i, .
-d W *
~
4 ag .3 .- .. . L
' l .; , . .
s f., '.l . }9 ,.Q.
~
.. / '. : -
. f. ..,'. ;" [/,
,' ;.. Q &m%,
?,.,! n.
m . .. . m ,
;,,,,,b .' ';
..-j ,:- ,. 9>
..'f,.~. . ,\ '
. T.'. .e = .- < .g.94.. ... ; ,,, ., ', .,.<.- .- * '; g-
. 2, .
7, .. _3, .;
. . . . , e. ,, .. . . . .. ..,s g r .
6' g # 5'
'. '* ' P
( 9*
.a -
.$,hm "t ; . .
.,e.' ' ;' . #.'i; S.g',3 v
J ), l s p,.
- .',i, ' . , . ' . ),.,7 i '.( ' ']c ,.. - :
.,,,. ,1 5g (.s, '--- - y., ';p .l - J j ,
c u ' . . A * : ";'.( . . . . ' r. ' . - '.. , H: . FM - ., .
. .; ;.[.; A , . . M , %.g}'\ g.g, f,, ,4
; ~.7 f} < ' 6 . ' .] ',,. ) M. . .
. . ;.S',f'>'}jvga.f f.
. a., . .. . .
~ . . :- .i ,
o}g 12. . g,t#m.,t a. & ;. y..,J g, , . a aa r v. p. V' -G .M iga' Pw ... 7- . , c, ,'.
. . . , . t .
Of,. 4,f + ;3 . i
. .s ...
[ . ; ., - w: ~.
..v.
, , . ~ .. .. 3 ;gx s uJ m:. 3.. ' u: p ., .w;;$.. ; ~a ' '
- - n
;..- t;; ; ;.
. ~. " -
Y \
,Y ~.e. <r _y n , .
g ,,. t,
.5 :.. .
e .i.
, . , y,.. ti < . s.
s , . .
< h
- m. ..
- i . - 4 .
{h., ykcdN',s .h.,.) e h.,1,. ' i, j . b .. ., , . ' D ' U. I \. ' i [> f: ' ' , . g, . ' ' p, .. - l. : 'd "'
- e. h.
- , : ,.:. .. . .%.. e cI ?..? M /..- [p,'q..
i U.' f
.b. . . /5 Y, 5 '[ 9' '
.I
'e 1 mm.c' [ '.) . '.1,%u,a m, M y /kM.? ; x..
. y:.. y o , f .. . . ,c .
.cu s 3 y.
c 2 - . m3 y uq w .
. . .e . , . . .
Lg.
.L -: 3 .
w .. ; l ": - '.. . .
..a.c : .. o .- o ., : 1
,: j,V V
'l . ' Y . ,: . ?. i ) .N, . . .
. f,1
~
y.. T...Q ;!(. .
.m [- } .. .- ..
- 9. . ,. ..
. .. . a J. l ~' '
m.., 3
"",.4-; ,&
.t -
' .:.,,, . '1 -
;- . , . . . . , .- e .,- .
d.....b ... .., ... ,.. -~ . . . L. . .: ; % ::a,3. . 'y..qa, 3 . 1,
. ., 4 , ,.. .. y,
.i . . ....i .
~ . .
,. ,3 4 . .
3 g
. , , , ,y -
;.f .s'cg'
(,, ,,,
, 4,,;y't.
.,$ - q
.. g j) e '
.n, ,
l *;. 1 . .
.: ra ,:~ . } .
,g . .. -4
'. ; ..n ., * ' , ~ . ~. - . ~
~..4*
. . , * ' ':s .. - .
,.O
.. . ? -
- 'j -
11
,;'. ~
~
. ; ; ;.L .RQ [l.. .' J + @, ' . . . . ' ' . T f;9 - .
> ;, + : . e . : :) [ [ :, y .<g: . yf .. ;? ..' ' w .. m v ./ [._ . .... g ...o c ' A,w;
. .f: \L ' .. .,: , [. .
..L. \ . , . . }.} .I ' ' .' j j ' /~ Y* ~. . .h. Q. , ,m_l, .} . Yq ff+ L ... 'l ' W. - . ; } ' "%
- p .. . . . . .. . . . .
' ) .l , I ._ [, - . D . .: .~ .
- f [ . .
- . . . + . . ,, '
?
c. mg s)f te - ,..{ -
}Y. .
_' . [#
' ' ) ;[ .' f l_
L ^ .. . , [9,l ; . Jl. l, j. , - J.y , d@;j g. f ..g. j ' . ., y 7. .., .,.g. + . 1[. . . g ;. 4 3. , 7 . c. ]. y g,_;.y . 3 5.., .f.; gJ y.,
' , ((;.
i \' ' ', ' ;
,.', ., .; 'T'. , ' . . . -.
- D
'[.. $' ,;
.g
,( ($ .
. , . . . ' E .':y ' 6' ..; .
.' .y
.6'%f'. .h .,,".y.Y_'
..t ..v..,.. '
c a.'c. ..
. .c -r,,ys o. . .uc.
.- ...m: ."
'c. n.. : . t . . . c
.. _ . ",:, . - - .. ~, ,.. . ;.
- Jl, .. ee ce s;.q,py . .' :
y F~- ,C'f,'; " p.;.
; .4y; y
' . . r
. o c .. . .. ' f , {. ;;; fr:f ;- -'
.+. ? ,; ', .. .
' ,: . l
.. tM ..
3, ,, .. ;
,7. A, ...". y ... is;X; . .. .. ; ,.
..,.%.- 4
,{. ..,,% .- - .' . . ..
- 4. g . . .
'g e
(.... *. ,,. i. (" ', ' : g V. -l' N: u.,'.
'.'...e '
L 3 _ . f.}' }ly
, . ', i~J . ,. _ . ' ,i :c' .;
.' T , . . ,
U 1'. t
, .;, .: : i .)q ,. .;. . . .g ,! . . . r ,, . ..
s ;,
., . ,; ,7 , , . , - -
.- ,- ', 1"*' ,3
." ' ' ' ' f . l. ' ' . ,
t: c y., %s -,+4 '; .,;' . , }. .. . t :. '""}'.'..'.
'.'.7... D
. f .' '.d'. -, 'fep;
- - .' O . '. , ' . J3,.
...- c. 7.:' N I.. , . '
.i::.a'.
,- ?.J'
- ,s, ' .'~-.t ' ". . ic.
,$ , 7 ,,1
.., ,.,:..-.' f.
' , ., ' . f. % ,
. . ,- i
-... ,- - ; -.g. : y
.,,.; y; '
. . e
,t.g r ;. , ' . f. . . ,. ,,}
, .;,, 9 . ,. ; , :.._<
- f .
' 4; . . , . , _
i # ,.*f,
".~,.s".,: -.
, . ,. , . . ' q ' g
, ~ ' .f - .
..i.'.9.,.,i,.
- . . . . s
) .7,, , ,. , s
., .'.,.5 ft .- ..
. . g.
..3 c...
, .. . , , i - -- .c . .- .
1 7, ,
.' f. _ , .
'_ . , . ,l.c[*..'
A.
, ..l* m s . . , .
/, ,
. .' .k. ' . ' {m' Q , , -,g* ' . . .
v.).
. . e' . m ,.
e' .. ' . , * [' ~.* .,=6-. ' . - . '4 ' ., ,, . "
,,.e 3 a .
2 ' .'.
.:. . .', ; ..- , ;. ,. ~ z..:...
,/<. c . . ~. Y .
g , %; w. ?r.:;n. t:'J .14:. ~" . a , ., , 3 :..> .,:-.
. . - . , . , .,s i . 9, . . ,
' p. . ..s.. g ,. - .' 2 .- ' .. m.
. . ,L .- .
yy ) Q wq,3 3q
@ jj . 'Ib increase its customer baw, KBif0M has per4iew rovnue. Nearly one-third of KilLWMk h *MU og implemented a
- Lifetime MatLeting" strategy pay peraiew customers haw the equipment to 4)
W:M3 ;
%.] theused on ;acreasing customer hyalty and discour- ot der selections on l'irst Choice" w ith the touch apng customers frotn disconnecting wrvice. Folkm-
)) e m. of a button. The number of customers who how the t; ing extensiw customer rescatch, the company has capability of ordering pay per view programming
, a j -$ j& expanded programming selectious and strengthened ineicased ly 11.5 percent in 1W1.
e f Q;A f a n customer service. Impuntments are folkmed with The selectiom on First Choice" are carefuny tai- &nf-W];y - aggressive sales and matteting effor ts, including lored to rneet the viewing interests of each market b,g.u [M d [yl M3 tq. telemarketing, direct mail and promotions targeted to various segments of KilLCOMk customer base. scrwd ly the oimpany KilLWM is one of the few cable systems to offer hical and regional sporis pn> grannning. For cumple, Portland customers can i? ' Pay per4tew trwnue gnes order bilblazer basketball games, sq@q. ; M!J h KilLCOMk pay per view rewr.aes increased 44 per. A N.
- my, 4e 3 eent in NA). Growth ieflected a full year of opera. Achettising roenues double
-;A -
KilLCOMk advertising rewnues increased py< m 7M] ~ tions as well as marketing activities which hieus on attractiw program offerings. discount nights, daily 123 percent owr the proious year, w hich included M,,;l}\ g& Ry pmmotional proiews and si pay peraicw 'lY yuide,
, only ten months of operation. In lWMt.36 of j Substantial growth opportunities still exiu smee the KilLCOMk 531 awnge monthly rewnue per sub-4 4} F g pay pe 4iew business is relatiwly new. setiber came from adwr tising wies - 30 penent
, cf.
p ]QLJ g. Almost half of KIRf0M customers haw access abow the industry awrage. Kill /lY, Kill COMk l nt C mice a pay peraiew senice w hich - new adwrtising sales subsidiary, established itself as i
"""*"""*'" '" 'i"* *P""i"8 '*" "'"c#"* """d*"id"8 """""'"'
I b) "'" Ling to ntabush [Nhhh ! NM and recently teleased mmies for a fee. KilLCOM intermnnects with other cable systerm in major Mk awmys appnwimately $2Al per month for each of
. i %$]sg r mhertising ma:Lets. This alkm s cable companies to }' 4 -;
the mmpanyk 26),(XXI customers w ho can t eceiw join forces and compete effectively with the major Q;f ' 1these pay per4iew sersices. The awrage for the networks for advertising dollars. NQb hp 2 y 'industryisjust undet $2Al. By using state-of 4hc ed advertising insertion d
, y yg ' Athanced technology helps KilLCOM maintain equip ocra. Ki!L/lV has the ability to insert ,y 1[
[$ its leadership position in the generation of pay- commerciah on up to 16 various cable channels L k d
,k
.q-
% g wi s ,-- :y, GR ,n ;uvi ' *P .+
' 3t ,; 1,
,t w e g , l'o <f , , ..f
;,y
.) ,
r' N b- {$4 5' - f! .} - j + n
'f f .
y w}i ' l'! : A 4_ :g w e ; .3
, a , ,
%y ...W aamml.:Ll[ .a.m _. w o'm,)a.A a. w w .._ a u
+ '
b[ % aw.f La m, ,.m _ u u _,a u. w .m:_. m.~ m I customet base. Marn 01 Kill ('OM's maikets otter ! hitnultaneously. .11a\imiting the exptwuie of the ichtr-tiseth me*Vigt . As a pioneer in the cable indtutrv. opporturiities to espand siles to hotels. ietail estab-Kill-W wa the first to e+ sponsor a Nielv;n- lishments and other businesses. A commercial sales {
}
metered market to ptwilion cable adwitistig as a disision has been established to dewlop this rnarket . e etwt.cIlcethe alternathe to network affi;iates. for both sideo and audio senices. j Paragon Comriunications j Enhanml menue soutres _ . . . t llalf of Paragorn customers haw some tele- In addition to its directly arwned systems. I sl'. ion sets its their homes that 4.re not con- Kill COM ow ns 50 pereeni el P.nagon e . :. . nected to cab!c. kt fconneelkhg cYer) tekeVishon ,
; '- boInmlln Cation \ a partoership with l
, va in the home, KilLCOM can generate addi- American ~Ielesision and Communica-I tional rewnues and view ership. Ki!LCOM tions, a subsidiary of Tirne War ner Inc.
inetcased its additiond outlet connections AlC is the managing general partner for l i-during 19% and Mil' continue efforts to thiese pioperties. [ make sure that every television set in the Paragon Communicationnenes i I subsenheth horae is hooked to cable. ; appn nirnately 829.t u bubset iber s in . o in additiors to siewing seVen states. Its systems added appun-cabb teld.sion programs, imately 39.Inhubscribers in Um. a ;- 5 percent metrase. m KitLCOM customers . will tw among the first 'ihe partnership \ Pm tewnues were in l'ie country to be 534 milhon. compared to $221 million in I a' ale to listen to compact 19K9 'lhe paitnership achiewd a mile- i k h* u.a . y la amlio stone n $epteinber.when iionthly carn- }, i music through their stereo sys- liigs turned posiliw for the first time. tems. With Digital Music Express", eustomers can make selections Irom I tr,cr 30 channels, ranging from new i: age to cla%ical music. g,,,i, KllLCOM is also Working to increase its commercial 0
FE@f f4W ?***Y%RW :y~ :,1 ~q7'>,fc *%. L ,
}ph MNMiOM $$$D6][M8h * ' '
j M b e d d h.s a.ua w .u M.S 1 4 L u h m u an u .I b a & u w ( ,Ic N' ] h a.. i g a e n a , q x F , , .~
)q n 1 # Utility Fucis compic ted its sototh with Union Pacific llaihoad Company and the t
a ye n ..f oxd deliwry senice to i11 AP p mer Atchison,'lopcLa and Santa i e llaihtay Company !
- J t 9 plants and signed its first contract to supph panides for transportation of coal to ill api W. A. !
rail sen-ices to a non. affiliate of 111. P.uish plant at a reduced c wt This agiecment owen i e , UFlk weighted average deliwred price of coal shiprnents which escced the minimum requirements [
\
and lignite to ill A P increased by a malest 2 in an esi ling contract with Ihnlington No:thern ;
.i l- percent, Itclatiwly stable pricing was achioed RmiroaJ Company and the A'ISF.
esen though s: des declined 7 percent to 142 A new bucketwheel excavator system began ! million tons in 174 compareJ to 17.5 milhon operating at the.lovett Mine in March The system ! 1
- n. ,
tons for the prenous year. is capable of mtw'ing 10 million cubic yards of twer-t Price stability we enhanced 5 burden annually and will impnwr the ef ficiency of q through impnwvd efficiency y . UhM twvrburden rem (w'al. Oserburden is the dirt ahnt Q 3 ca F , > g % ' 4) y at the Jewett Mine, .y M thelignite. g . . ~ . "3%
' {i C ST .
t L1 o which supplies
.,. , y$1% ,fis e. =
; in addition to supplying coal and lignite to Ill A P, j e
+
,e .
a lignite fot til APL q1 b., ,
/ 'y a
;y Sj UFl continues to market riansportation and pmrr
- ;2 y,
- p i ,
r- 1.imestone plant, ([ g
@1 s ye, .
h- > f ' lant p senices to other coal consume:s. In Augu and greater use 01 spot g -W i the company signed a 15 > tar contract with the l
,. uxd purchases for i11&P's Chicago Central & Pacific lttihoad Company 7
;J W. A. l'arish plant. UFI will pnn ide a full-sen-iec lease of l Other IW accomplishments railroad cars for transportation of co:d n !
'3' will help to control future costs f rom %)uming to generating plants in the G 1 Li An 18-month contract negotiated Chicago area.
\
)--
a
- - - m.rawr
.t* lit als 1x2 p:. , l '} } 4 .w H ! u n l 'i 1
, y m,jdm o a h ,!? >> t m! r m ! / / m m cm i ! !!
1/Ti u os l i n t. Y !!t , r r
- f. ,
f ;4/ ' * / l't 1 < ' t!UI m ii fun - ;i, . ,h r S ch d 'in!! !\ h 1.l 9 i p Y,
._ -.- ._ - - ..~ -. .. -, _- . . - - - . . . - . - . - . - .
, o . ;p. q - - - y g.
y.. w.,
. \, . . .- .
. . ... .., . ' s .
...o; . . - .
.- . ... 4, c . . .
. s .
+
R. .f . ), ' l . l. ' ~ E ._ ([ , d ' '. . l ' '_ ' '.
- f 2. \
., : :. 7
? l .wl '.. } f' ,' s' .,. .' f ',. , .. ,-.n<-,. - p , ': q ' ; ;, ,y - . .. ; - .. . . '. . '.,...,.e v ; . .m . < , - . - - .-
s
.gL, 9'
,..j ... .e . ..
, i . . ~. :-
.,'fc. .,.,v.<>
$ r: . p- - ,
8
- p. - ; a,. . ,- ... h.
- e . .
. e i .l J
4 g w-
.1 i .a
...'s %.
.., r 3 3; d, .:. .. ..- . .,
..t
. . . /
.w.v..-
,.. . . +.
y,,,r;,n'...:.n..
...s .. .. . , .t
.. . . . . 1
. . ",.,c.
8
, . . . ,. .s - - . .
4
+., b.. ,. -
..+ ..
, ~ . . >
.ig. , , . - . . > w .; - ..
3 .. . ,.. v. . ,. . ;. ,.. 4.. . . , . . o. ;- .;, 3,,..:..<
. ....yg
,~
..,- ; : c.;, ., . . . .. x,. ..
- .m ,.g. ; . 3 .. ,
...-- w/.<a
., a. . g .. . . .
. . ; s. . . , . . . -
..a o. .,
,3,'.S w..
V1 y . 4
;3 >,
(. , . ..,.,.3 : 1.: a
,-..'... 4 . 4,t ? . -
o,,.j:, p. i. ~.. ;,..' . ,.,7. . ,,1'... '. 1
- ..:~.."..,.w ."4 . . . .p .4,.., , .
(. .-. ,4,p,4,. .
,.x
...a m. , .. 4,
'.).
g
- p. y 4
gc. .. ... . p, e*.
, 4 - .. i Y c . .- . .. .- , 1
,,y s -
.f, ,. .
- 3. yi, . ,.. . c :7 . c . 4 . pg .',.c... ., ;. , . ., c, ,
r n. .. ... . . . . . . . ;. ..-
,,n .~
A. . Q 4 . , ' ' ...
.y: <^ q. . . , , . '.- , 5 ;' .** ' '
Tg.. . % - 4: - . gw y a; f. 2, y. - - u.. , pa. . .. . . . . . ' . , G _ '. y .: > ;: ., ' %> 4 ;.- >
- , . . , .>... . y, .0 3. . , <. . , ;. ... . .-' 4 .
. . , .gA
. . .o;.,,
i..g. ,.c. ' . . .i .' , << . 4 . g<.
- m. .,
\l4,,.2.,,. .- .3 .
. . .c
, h. . c. .
- LI i 7 4 4
4 ' 4[, .',. 8,, . ' c.. .- .' . l<.. ), ... , : ; g, f .- 43
.3 y , [ ,p.y [ g ' .-
- f 3,y' ?,i[ k' J.l' j.' , '?. l l:; .' ? . ~
c,.. '. ' , . . 'l 4 &#'l% :'
). :.M . 4 n .l (; [ . $ , g % ).7V7,f',s.Q;. g ; ;:;V> F,f .(.'
? l $l." l{7,%
< l / J . ; .) ' ' . . l..t I.,',[,,(('l; . KTj f i '.! ;k# , s ; , ... ?. .. c.n n[e v , t
. .~.
s. t . . , . .
-> ~.
v. r n.. .w .c. . .. . ~ . .. .. .. ; .. - ..
,n:
.L,,, ,, . .., .. , . . .
- . ~.
s.v. ~..e.;~ . .~.. ;.
, .~ - . .;,.~.
- y - .
- . g k. ..
.. y ,- ,
- i , . .- . ., ' .,
', ., '.. -l.s. ,, ' > a. < +- ,- ', .
- 1, * . f.4,,;y. .
',,. . . . , . - ;. .t ' '
- , ,3
,' ,. ,f,
- d
'7, -
~. - .. .. s. ' .*
o ., .t, .., - U _,,.....1,.3
- . -- , 4 - s.. ,
r .g.
..'4,4 ,. - ,
, . . d: . < g'. -..s, .
, - s. . . ......r.,
l 1 .,3 .
.. - .4 . ' , , .~ ' . ' - ( - - ;,
a - J. s . *
.. ..c.
3
*'i'.,.
,' , c ,-
"*t g.
., i p q j% : .
g.: .,* . , ' ,. . , ,' -. i , ' , ' . .3. r... as , e. 7
, -,,,; ; , . ' ..j '..,'c.
. ,' .7,.,. ;J,J : ,1 */ X . i ;
.p
. 7 - . ,c , , .
,6 , . , .,...
., , ' .',y. 4, ,.7,.
p'. qp . .
,,, , ,/ r.,.!. .,. .- ("
M ' * , ' ,
'! ;' . 4 . \ ' I.
,ll
, . , .; . . /, ,.1 i- - . .!
j 1.g : , . : . , . , . .,.. _-
i. :. .
. . .< 4e...'..
i ;, g y ,. .., i 5.e
.: , au?
spp._ , - <
,, , . ;g*. ; ;-
- p* ,. .,y,
. . . , . k.m ..*. . . '. 3W.A. . , */,* ,s ,, .p.,..-,',,;,, , ; -i , c a
' * ? . < , , '.': -' ' , 7 ,i '
. ., a .. . ,
4r.. - . < _ d.: l' _ 7).[, .
.. L ' ', , ,
'..[
N . , , ,, 4 , s . 4 *n,.j
..s T ",'.t *iy.....',
..'i'.* . , e .
,q ., i .. - 3
. .. ., 't
. . '7:-' , . . .',.'t
'p,..'1-,
2@., p .. o , i . " . S, ' '*' P J'4; .' ,
- C. *. , "- , ,' ~ . ' -
1..',... ' ' ' ,
,:) ,'- 4 it l M . ,, g g.yt . ' ', 3,l,* i . '. ' .c,gh. 1. : .,( ,,*;
y ,;v,- .' < -
- c. - , l ., p, o.y- '
y ;, .Ac ' ,. ) ' j ;, ? ' . . .-. my l.V.. . ,,l!g 1.f , .
,, 1,'. c. . , p " . l.'pl N i - . , j. . ". w .i ,, ,p ,;j ,. ; c '. , s y , ,'i,
.i ,c ' q ;/ . j h ,(*,.l . . ,
* ..
- l : - .' .. .k. h ' ,'!S, .,5 ~ .. . 'i ,,'.
, ' 'l
- . u:, '
-5 .. ; -, . - i, .. .. "- t- , ; g -l " '
'. - * .' ' * . . . i
. . . . f.,. . . .. . . , ,..,? - f "' j , ,
.l. ,' < !
l . . sl .&.
^ '
';: '. >s . .d .
? - - *
. $ . ~ ~ h. ; - l % q . l:
.M l;.
. i;i . . .l
} 'l, *l ,
;. '_ ', . ' { ,'* : ._'t ' .' _ * .
.' '..i ^ e.. : f * ' ? , , j _ . s '? '
,. .. .. . , '. ';l,.l,s . ' , ~, ~. l ;. .v. m.
+
l.
._l , , . , .
- n. , . ,, . ,i .s. .,m '- 1 . ., . . . .-
...< . , 1 . . .
.',',i , ,'
,c .,
. - ,i..3,-.,,e
.t ..w - .. .
g i , - .*.
- s. ..e -s :cv1e r n' ; .
i: ', . ., .
',.,..?. ; s.
.. * . . - .9,. -
,. , .; s,; ....- . .
_ ' [ ., '. ; y - * '
,.~,s.
'..l(;. .,,4 s ' s' ',.'
, , _p' _ , ' ,; ; 4. ,, ' , .; - t , '.
y...
,;_s' ' '
. *.._s,,.
, '< ~ . . ' . , . . . . .,. , :
, e_
,g
- s. ,., ,
'c.,
., * .J , *f,3 : - ../,.." ?., . ,. ,,j :s
,.- ' - ., ' ' .- ' : . j i.
'. M > , f. . ", ; ' , " , . i N - - 4... 'Q .
" . .,;f. ~ ; . . ., g . ; h' J, .r.. . ,
4,, j ' 4 ;;I,lh, ?.-'"- '" L . . : p', f,s; . . . l 1, - f. . i- 6 ;
-)J . A. ,,. ,,
e.. g
, 7 .. .
,' ' ' '. . . , . . ' l. ?. .'#' ' . -8',, .
ic ,[3 ',;. ; J '. % !,i - . c.
. . j .j'. .., >^ - 'l. *
** .,, ..;... .- . . 'u y.. > . . . .
,g,. ;,,
.
- j q ' 4,7.L > f"...;. '..
'., ' ^
.*;,' , ,(.y O. l * . ..L*.,..i ~. ; ' .f.g ,,s. . -,;4
,... - . . ,1, ,.
,, y
- . . ., .l ... , .,..s:..,
, ., - s.- .y .. 3. ,
.. .c g
,,, . .pr .,;' - . .',,- . , . ,, . ,.\..
.: .. .+.. . . . + . -. g . ,,, ', .,,,' s:
. .}}