ML20094N670

Public Svc Co Annual Financial Rept for 1991

ML20094N670
Person / Time
Site:	Fort Saint Vrain
Issue date:	12/31/1991
From:	Hock D PUBLIC SERVICE CO. OF COLORADO
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
P-92148, NUDOCS 9204070033
Download: ML20094N670 (52)

Text

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==' = - l l 16805 WCR 19 1/2, Platteville, Colorado 80651 l l April 3, 1992 Fort St. Vrain l Unit No. 1 P-92148 U. S. Nuclear Regulatory Commission ATTN! Decument Control Desk Washington, D.C. 20555 Docket No. 50-267 BUDJECT ANNUAL FINANCI.% REPORT l centlemen: Enclosed are ten (10) copies of the 1991 Annual Report for Public Service company et Colorado, including thn certified financial statements for 1991. This document is submitted for your information and use in accordance with 10 CFR 50.71(b). l Sinc $re}y,, p 4 A/ . / m.- F. J. Novachek Peputy Program Manager FJN/LMG Enclosures L l cc: Regional Administrator, Region IV ] 1 Mr. J. B. Baird Senior Resident Inspector Fort St. Vrain i 9204070033 911231 [ [ PDR ADOCK 05000267 j 1 PDR { l t

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Gross P! ant investment (000) $4,273,744 $4.03B 771 58 Number of Employees 6,565 6 T,11 (0 7) Common Stock Sharenolders 56,038 55 945 02 Common Stock Sha'ec Outstand ng (000) 56,294 M70 30 Operations Electne Revenues (000) S1,180,501 $1,145 916 30 Kilowatt Haur Sales (macns) 20,452 20.148 15 Electne Customers 1,000,662 9nM3 10 gas Revenues (000) S 587,609 i SG1.712 46 Mcf Delivenes (000) 232,702 210.92'? 10 3 Gas Customers 878,579 BG 39 15 Percentage of Male, Female and Minority Employees at ,,,i, pm 3w Year End 1990 and 1991 um p.m Am.m.a emms.r. Hi.e.mc ai.e a ui,a.r i. whet. tes.i 11r90 199 4 1990 1991 1990 1991 1990 1991 1990 1999 1990 1991 1990 1991 1990 1991 1690 1991 t,'1 i, 3 6 elv( 4 e i t 1

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.I_ _ _ _ _ ~ 1 5 j To Our na s_ _ _ _ m_ _ m _a _ _ _ _ i L ' L 1 1991 was a year of nuij< >r det isions f or l'ublic Service Company (>l Col (> rad (L l aan very prt >ud < >l w hat < >ur nr.in-agement team atal our etnployees were able to achieve in 3 j spite of somc of the most dif ficult financial (hallenges we luve ever f aced. While < >ur 1991 car nings of $2aN per } share (one cent less than last year > would suggest very little, if any, progress t< > ward our goal of increasing total return for our shai" holders, the many cotical issues addres-sed and resolved during the year demonstrate that this was in f act an impiessive achievement. The specifics of these issues and how we addressed them are highlighted I in this annual report. Af ter reading it,1 am confident you l will agree that 1991 was a very suu essful year for our company, it was a year in which we made some very l important decisions and senewed our conuultment to cost i ef fective, high quality energy services. J l Looking ahead, it is clear that the many ( hanges in the l hustness envirotunent, and specifically in the electric and j natural gas industries, will have a major impact on our i c< "upa ny. These changes include increasing deregulation l resulting in intense competition for some segments of our traditional utility investments and markets; an accelerating emphasis (in energy conseivation an i demand-side supply, along with increasing regulatory invowement in planning for future energy tesources; and c<intinuing cons (>1idation of systems and ( ompanies within both industries. These changes, as well as the capital testraints ecsulting j f roin the financial dilliculties we have experienced since 1986, led us to a reevaluation of < >ur corporate strategies in 1991, We decided, an u >ng < >t her t hings, t< > C< incent rate our ef forts on the c< >te electric and gas businesses. As a i sesult, we have begun a reassessment of our investment m business units < >utside that core. I While much of the country suf f ered the ef f ects of a reces-sinn in 1991, the economy in our scivice territory out-paced most of the nation-resulting in ste.aly, albeit slow, customer and sales growth. Our marketing strategy for the test of the decade wH1 be directed at retaining our present customer base and taking advantage of gniwth opportunities with existing and new < stomers. I Regulation will continue to be a key nsue. As a pan < >f our 1991 settlement agreement with the Ci>lorado public Utilities Commission, we are required to file a r.ite case by November 1992. With the many changes in the regulatory process noted above, this case will undoubtedly establish a new framewor k for utility regulation in Colorado. There-i fore, we intend to be very aggressive in proposing regulatory principles which will minimi/c < >r climinate s egulatory lag in adjusting our prices. We also will be requesting the use ? -{

1 I 1 of segulatory incentives that will move us away f om the traditional ( ost-plus approat h to one of shailng in cost 4 teductions and imptovements in productivity, so that both l customers and shareholders benefit. i l Also, given the renewed emphasis on conservation and f demand-side sesources, we will propose incentives which l allow us to be an active and willing participant in these energy etliciency elforts. We aheady have started down this path by initiating a collaborative process to address energy cificiency issues liased on the positive working relationship that we have developed with our ( l commission and the other participants in the 4 i tegulatory psocess, I believe we will achieve I g our objectives in the regulatory asena. ) v. As has always been the case, the most impor- / , tant ingsedient for out f uture success is our .wj pet >ple, and 1991 was a very dernanding and -, y J. dif fic ult year for the etnployees of Public Service ) Company, At mid-year, we realized that the . l unexpected costs for delueling delays at l' ort St. Vrain and the sequirement to enter into a ~ ' rate settlement agreement had tht potential to ~ cause a significant decrease in 1991 earnings. l I asked our employees to step up to this chal-j l lenge by reducing expenses to cover the forecasted shonfall in earnings, They met my expectations and also conunitted to continue j1 this ef fort in 1992 and beyond. i I Tinough our service excellence program, our employees also made a significant number of e Other contributions to enhance our ability to reach our earnings goal. These included sevend employee-directed teams, which addiessed subjects ranging f rom labor-management conununication and problem solving to performance-based incentive plans. I believe it is clear that in 1991 we developed a discipline for achieving positive tesults in the face of dillicult circum-sta nt es With that discipline ami the continuing effons of our management team and employees, I am confident we can reach our objective of being the ptemier energy com-pany in the f(ocky Mountain region. 1 i I -tn <, f ti It lin k (.h.unn.m. I'rcsulent aint (:hief ITeoitn e ( )f f a cr l Polibe sen n e company . it ( ~.< >h ir.u h e i l 3 ew.w.-ry,w.-ev+,-w.-,--... -..., -,., -,, - -,.,.... -. - - - -.

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~ _. _ _ _. _ _ _ _ _ a i ( i i, l 1:ven a casual wnsumer of the conyuny% (ominisment to state of hiaho Considerable hri Cohirado luniness news wouhl its sharehoklers and customers nation-involving the 10l% l has e twen ew are of the many This strategic cosa en rath ni, l'ubhc Sen it e Co, the 5hoshone i i u>nthcts that conf ronted Pubhc coupled with the cornpany% ILmnt a k Irwilan Tnbes and the l Service Co. of Coh>rado dutmg willingnew u> step up to current state of hiaho - ensued. l l IW1. Toppitig the list of f armliat and futtue issues, will be the While l'ublic Sen it.e Cn arut the issues were public Servk e CnN driving force as Public Sen t(e j IK)E iniually ac< cited favorable efforts to resolve na tiecoinmis-Cn aggtessively positions itsell-sioning-related problems at the to maxtmtic future cannings rahngs in loth the t a lhstrict I r Cous1 in !!oise, f talui and the 9th l t ~ hiled lint St. Vrain nuclear gen-opportunities. Citt uit Cc >utt t e! Appeals in San [ erating statie rn. $n tindly, min h l' runt isco, Idalu s has lven sue. local and rudotul news was gen-l erated concerning Public sen k e bSolVIng ( essf ut in iemp.,ranty blo< king i the shipments by persuading the CnN tole in the resolution of the Fort St. Vrain idahorederaiu>unthai m E,m m ] lunkruptcy of the Color.nh a. tite obt.un a state air quahty permtt for 1:lettric Association. Another Public he:Th e Co. Inade conski-its Idalm latihty before nue spent major unntrover y that sjuwned sing h public azul investment crable progrew (fusing 1Wl to f uel can it sr ned these. j community debate was how the mkhew the hngering problems awociated with the l' ort St. Vr.un it was im;vrauve that this situauon company woukt resjund to pies. le mhhewed, lerauw cat h atkh. I sure from corwumer groups aint run lear genceaung stauon. To say tional month the f uel temained in the Colorado Public Utilities that the plant has lven a s hal. the reador u.ne Pubhc Servk e Commission stall to ref und sub-lenge" to the company is,m Co. had been meunmg approxi. understatement. stantial carmngs to its custorners nutely W nullion in athhuonal i arnt dramatically lower f uture

1. n Q Vrain had been dw ussts to maintain plant systeno o

rates incesuse of the (ompany% nadon s only high* nJuaune, and n tain ewential personnel. l abihty to f ace these conlikts, to gwumled conunen1al nut lear Because the company reallied it develop and negotiate n soluuons, reacton h Ngan (ununenlat u.ukt not rely solely on a suc-f and to answer these and many qvradon in M,W and suu ew uWul legal outcoine, it inuh a other twues IW1 wi!! he accog-nl/ed as a year of *getting results. fu numsuatM e sake, more In Wty.H dw plant sue f or the { eflicient technology. Ilowes er, interim storage of the spent fuel. i I l Iloilding upon this momentum for IW2 was the development of it .;,i

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a strategic plan in the company % ' ' l 10 " ' Ii of senior executives to (learly delme the parameters of the company % 1 ' n e' 4i-t i' o ; psi Wtni"'>h>- s 1 N i business and focus on a direction '~ i of talgeted growth. l>unng the evolution of this strategy, three the plant % continuing finam ial The ik ensed simcture mdced key objectives emerged that drain on the company-- coupled ptoved necessuy, and l'oblic i cffectively set that direction with the need to make additional Servke Co legan remodng the repairs- ( aused Public Servit e f uel from the plant % (ore and .Public Service Co. will stnve in Ca u> twnnanently halt plant st< > ring it at the tenymrary f acihty I itnprove the total retum to ogwrauons in August 1989. in I)etetnirr IWl. It is estimated sharehohlers, with an emphasis that the fuel will tw completely on growing bciok value and Since that time, the company has remou d In>m the plant by August mamtaining a capital structure twen aggrewively attempting to 1W2. af ter w hk b decommiwlon-that will improve credit quality. remove and ptoperly store the ing can conunue I plant % tuulear fuel, whk h is .Public Servk e Ca w ill f oc us o" requin d lefore the deconuniv Meanw hile, Pubbe Servwe Co I the core electric and natural sion ng purew can conunut and the IX)E me continuing in gas businesses. Ahhough three of nine spent their elloris to us ercome the fuel segments aheady were legal barriers netewary to ship l .Pubbe Servi (e L.u w ill meet the stored at the 1)epartment of, the f uel to the Idaho Nation al l needs of he marketplace and t 1:nergy 3 (IX)ll Idaho Nadonal Enginecr mg 1.aboratory, w h. h a develop core businew services Engineering 1.aboratory uraler the has a lauhty specifically de-. i that assure customer retention tenns of.a 19M agreement with signed to store it..the spent hwl and growth the lx)E, the company % effons f rom I. ort $t. Vrain contains the Creating the pn>ducuve internal to ship the rem.uning six seg-energy equivalent of more than environment needed to reallie ments during IW1 were met 14 imilion barrels of oil, and its these objectives demonstrated with strong opixisioon from the (ham es of tving repn cewed 5

are nua n greater ir n is sent io store the pianis spent mel, the able,cuicineni. w hi< h was Idaho, rather than being tem-t om;uny has put the most dith-appu n ed by the Coh nad<, Public pormily storett at i on St Vrain cult l' ort St. \\ rain issues behiiul it. L 'tihties Commissn an m July 1W1. and eventually shipped to a hnal It can now h wik ahead with confi-re;x.sitory. Stonng the used f uel dence to it., plans to reptm er the I nder the terms of the agree-at Fon St. Vrain beyond 1W5 lus plant as a natural gas-lhed f acihty ment, the ( ompany agiced to a the [w >tes.Hal for f unher hnancut byIWH $22 nulhon customer wf urni in inupati on the com;uny. In mkh. 1W1 and an electiir rate reduc-tion Pubhc Senat e Cu h contin. tion of approstmately $3 imlin>n uing to evahute its abihty to R RQ per anonth 1 oin knuary IW2 rems er sluppmg delas o ests fn>m through Ame iWA The finamial ihe i x w or the sute or idaho Success.ma impaa of d,e seidemeni was s* ruficandy h ss dun the nu immend-Changing. ediefu/idandrateinhxwinsand The other in.nor issue that Pubhc Sen' ice Co had to address was was in the Ivst interest < d Public whether to pmsue the option of Regulatory Sen me ces imesoir mnsim.com dismantling and decomtnission-The com;un) also agreed to ble ing i on St. Vrain on a three-year Arena a raie case i.ne m iW2. w un basis, or the ahernatis e of post-new rates anticiguted to lo i nue Innung the 6 nommissioning An ef fort by a Colormki consumer effe(ttve by July IWS process up to % yeart The gmup and the stall of the Oslorad< i advantage of the shon-tenn ap-Public Utihties Cornmissi<m to This rate case hhtig-coupled prtuch h that it eliminates future significantly lower Public Service with an agscement to address financial. regulatory and envi-Co rates and provide customer sivcific energy unnervation ronmental uncertainties tlut ref unds was the cause of ( onsid-proposals-w di tv a poncipal would exist if this work were crable mntern to the company coriv > rate h uis in IW2. As the deferred until the middle of the early in lW1. Ag.un, Pubhc Sen ne largest energy (ompany in 21st century. Co demonstrated that it could Colorado, the u nnpany reahecs face conflict and minimi/c the it snust take a leadership and flowever, moving ahead with adverse results, cooperath e role in working with the three-year plan presented state argulators and others to a new obstacle-- an additional in response to a fonnal com-develop beuer, nuire future- $12 i milhon was needed to plaint by the Oth(e of Consumer onented regulato:T po iresses. fund the early dismantlement Counsel and a resulting agree-procedure. Af ter f mstrated ment, Public Sen'ite Co bled its Spemfically, the mmpany has attempts to expeditiously resolve first rate case since 1981 in thh agreed to explore n< n ct w ays to thh issue thniugh the nonnal January 31 filing, the company implement vanous demand +ide regulatory process, Public requested a nomitul $13 6 mil-managemem plugtams-measures Servic e O >. initiated discussions hon rate increase. directed at reducing the growth directly w ith the Ollice of O msumer Counsel, the su11 of the Colorado Pubhc I riihties Onnmission and other interested parties. 'Ibe discussions were successf ul, and on December 2 <, i, 1W1, the conunission approved a settlement agreement tlut will alh >w the recovery of the $12 4 milhon during a 12-year period. Af ter reviewmg the rate bling, of peak demand f or electricuy-beginning July IWA As pan of the staf f of the utdity commb-that benef a both cusnimeis and that settlement, Public 5ervice sion and the consumer group the company. Aho t iemg res iew n! Co. agreed to not pursue cenain luth filed testimony arguing that b..e tradaional relationslup that rate-making principles and to public 5crvice Co should sn/m e exists betw een res enues and make annual contnbuuons to its rates more than $100 nullicin customer sales tlut inhibas energy the Colorado Energy Assistance annually. In addnion, the Ofhce conservat a n Ioundation over that same time of Consumer Counsel sought a perknl ref und that totaled neady $167 Public Sen ice Co alst > agreed tti milhon. Rather that.,4occed establish a milaborative program As a result of. secunng this add". tional fundmg for the shon-term dm@ h b W adums m anMy/c luiw the annpany dictable regul.nory prot ess. should mvest in ( ustomer irn en-det onutyissioning process and pa uva m ouu einincuy demands successf ully having a place to d a m d n w b ror_ Another o nnnutment inmh es 6

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Colorado-Ute Acquisillon: A Successful in gene,ai, d,e pian dmues 0,c invesny ung. ys io inaude a assets of O dorado-l'te among the vanety of groulw in Pubhc Conclusion dun uuunwihow aswn monde Senite Co/s plans to snect the thnv 1.uge u ul flini power plants, f uture energy needs of its cus-for Pubh.c nvesuun mdn,cdorhyd,ockt. tomers And finally, the coinpany tne facilities atul more dun IJW pledged to a(kiress how it usuki Service Co. mdes a tnmsmiuton hnes.rubhc assist low int oine consumers to lower their perAonal erwrgy Sense or will auluite 332 inega-usage arul resultin utility bills. 'the billion dollar bankruptcy of w.ub of die 153 megawans the Colorathnt 'te Flectric Associ' owned or leasul liv O >lonnhWie '1hese twues are garnering con. ation pawed a snilestone on and operate the +U> megawatt siderable attention, arnt the l'ebrua ry p>, IW2, when the 3 g,q. den pow er pl.uu. h also will Onlorado Public Otihtles Comino. th llankruptcy Coun in 1)enver aupure du sut m) miles of tr.ms-sion has twen actively involved (onfirmed a consensual plan of mWsion lines atM rebted hu daiet in discuwing these snatters at the reorganitation Gled by Public national level. Pubhc 'crne Or Sersk e Co,1)em er-based '1:1-O ttorado-t 'te% electric anar ket, beheves the uinuniwlon is ap-St.ue Gerieration arul Transmission < onsisting of approximately pro.n hing thern in a (unstructive Awr m.iation. arul authonp, based Juum Colorado cusu>mers manner that will le.nl to realistic in Ponland, ()regi m. sen cd by 14 rural electrictfica-and beneficial conclusiont Hon awociations, also will be divided utuler the terms of the scorganitation plan. Four of the cooperatives, whk h represent appioxinutely h.df of Colorudo-Ute% electric load, will le served by Pubhc Service Co 'the 10 ! e remaining sinaller u m >peratives wdl l ux ome inemirrs of Triatate. it is apparent that the regulatory This long-awaned deenion was punew is (hanging, arul Pul.lic the culmination of more than Psk m h @e& Service Co is positioning itself two and a hall years of strategit g g g .g to find new opportunities as its planning, intenw negotiations Na d by the Federal businew changes lloth the com-between (onsumer-owned and , g, ,g g pany and the communines it itn estor-owned power mierests, med d dw umen cm N serves wdl benent as it implements considerable political and cow adW d programs that allow a wiser, tomer debate and extensis e more productive use of what is conununications with many dd-the myriad twncfits of this autuu a Gnite source of ent rgy. ferent groups 'ihe three-way plan sition to Public Senace Co. and acptesents a landmath agreement its shareboklen irnhale-that.nhlresses the corncrus aiul ,%tarket G xm-th-Public Serth e inten sts of all the involvnt par-W pa dohde per ties, while assunng mrd Cnlonnio dw bor m nh s g ratives consumers of rehable, long tertu g g, twmet supphes at reau nuble and - M Colo da Wny stable pnces. of these areas-ptinurity situated to the south and east of metro- 'the teorganizat on plan ~ w ha h also has been at prowd by the polaan Dencer and in develop-Colorado Public t hhties Conunis. ing enountain conununities and sion-still aspiires the approval ski nwn.um.- an' ex1mn neing of the Federal Energy Regulatory giowth rates twice as high as the Conunission. When hiuh/cd, it proia1ed lewb fot tuost of Public Will solve one of the nation \\ h"O "' C" Ivi"' """'O largest bankruptues and sm cew Improved luarnings Potential-f ully meet the needs of d< >rens of a una m nwsunent separate interests Itut more '""'"M" importantiv to Pubhe sen k e Co,

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it repiesenb substantui strategic " # ""* P" " Y ' "" " I " * '"" and hnancial bencias ti> its shareholders and customers. 9 l l

Added investment inw-Cost Assets for l'uturr bbh With the estraoidinary unturnit-Needw Acquinng these assets inent inf its work f ot(c, the t om-provides tlw ( ompany with new ~1he hard-won sinxesww of IW1 pany was sou essful in tedaang cajut ity at a fracDon t >T the a est "ill unquestionably generinte the expeny.s for the balant e tif the awociated with new plant (on. moinenturn netessary to wntinue year by nere than 517 nullion. A struction (approsimately Spo the company % efforts to optuniic sumimly aggressn e goal has Iven per kilowatt. (ompared to $1,200 the actum to its sharehohlets. set f or IW2 to inatntain expenses to $1.910 per kilowatt) Also, at the reduced IW1 les el Public Sert ice Co, w til contract w headway and on We nub for 50 megawatts of gnut based ous untical iwucs during the year A set omi strategic objecth e~ power that u ill pnivide extra titue ha gaum favorable teat tuin conttihtiting to the u nsupany's in dw itw estment in.ukets. ahnhty to position for f uture to it' power i ort St. Vrain and Jelay the need tri u >nstruct the AMuiugh bws r swuN rahw growe Man to We dn Min r ext gerwrating unit until some-pniute y knpacted im nt utthly to coni entrate on (ore businew Mot Public 5civit e Co % abihty activities aint Mmrture cat h orga-ame af ter 2WR to resolve the financial risk aw n ni/ anon to allow f or more eflh ient iteduction in 14 rchased ciate(l w ith these Iwues has led operations To supgxist this Power itequiresnentn-The to strengthening the market % endeavor, a strategy was imple. comtuny is u orking to reduce its perteption of the company % mented to assess every turn tion dependerne on parthased power, investment potential. perfonned in the company and a:El this auluisition will replace some esisting pun based power jn, ,,y,y, 7, 7,, j3,;; f p_ O tr trincts. It is anticilMted that the t<nnpany% purchawd gx mer b aj,;ic + +> t' t3?1 > + compinent will do ip ftom nearly 39 iwrcent to appmximately D !h percent of its t< ital power supply. e ence by tk Meady &hne those ewennal to um (ore 1:npruvett inad Italance-Public Service Co -- w hich has its npwar nuemcnt n dw mar t business ^1his has led to some value o dw company (onunon my (hf Hmit decNous including greatest energy dunand dunng the summer air-condaioning months-I" '""" """""'Y'"d"'"""'I"'h" of ON ne on wo low A%ough das pro-will as hieve greater system ef fi-viency thniugh the addition of I*""'""I *'d'""U""" to N a &inanthog one, Mgnh new winter-peaking wholesale Maintaining the dsvidend level cant progress has tven made. customers' sinw W% in h$ d dw mm Additional T ansmission table financial strain applied it is clear that IW1 was a year that Option *- As a result of the by Fort St. Vrain, illustrates the Public Service Co. aggressively three-way deal, the o nmpany will mength < ef the company's con. stepped up to the " problem become joint owner in bulk unuing conunitment to its share-iwues" and enjoyed great suu ew ho m Pubhc Servit e Co is in moving them dramatically power transmission hnes to the southwest and southeast, whic h hopdul that H not only can sur toward nwolution 'these an om-ta dw din &nd but dut it has phdunenh he ducaly to dm duw will enhance the compan> N fleubility to neg<.tiate f uture elec-ine wawghw in pim e to budd us o winnue ohean n dm nM tricity sales or punhases This I'""ocial strength to the point erher, w hk h w ere des eloped by w re a dni&nd inaeaw can A u mpny i Neunite Pohey additional transmission capacity also blends well with Public be considered, ane S%tegy Group-unproung '" I *

• I" A "d" M "A Service to s progressive approach A pn.n<.spal component of the focusing on the cose electric' to make its excess transmission companV. ddve towed %w-an(l n.uu gas buunewes and accessible to outside users. As a hnanc.ial growth was a suuessf ul heuer meeting the needs of the result, the company's transmissi""

(ommmmide We m wde mdgWe system will continue to le as ail-y g. g ,, g gw able to any agency or ( ompany kne M1 wulement agreement, Although some of the cotical wanting to send power to a On o m p m no p W d h-imes me now Idmd Pubk wholesale customer. d W a wiham wdwh wou O t Om mownm e in operatmg and maintenance ated in lW1 must continue in espenww to sustain an e.unings PN2 and beyond The (ompany% position able to support the com. 04tmmttnent to its sh.uch< dders mitment to investor value. customers and etuployees remains central to its f uture suu ess, 10

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l < if dilet tof s meeting. Phiiip I), g g Shaneruasnamedvkep,nnient A hWebg ",e's'p'o'n"s'ibic ior an ( usiomer ope,. ""'""*"i"r""""'- i ubbe sen-ice o, connnun In athitis (Mllside t >l die j)cilver IC Ideady lMisitit ifR4l til litaKlilti/t? its expenetu e and irsoun es m nwttopilitan atea.11e will t on-the t one rutural gas business Not unue in his role as president of only will the traditional natural IWI was another year blled the theirnne 1.ight, l'ucl and gas supply luisinew temain strong. with etwironmental pl.untits for Power Co subsit hary Public Sen he Co. h u mtinues to but also the t ompan> % % est(ias subsidiary is experief R ing dra-IC led 'gtti/ed as an eiwittitalitental In adtbih m. a valief y 4 of f e'-] N insi-leader in Colorado, irst known inlay a hangn were in.nle anuing nutic gains in its etbrt to lusikt the inf rastmdure to nu n e lh s ky for its clean air ellons 'lhne and tin' u nnpatWs esecuth e otta ess hkiuntain region natural gai to the ther autvitms include des clop. St.uityn IL Ta> lor, s ice president < d hunun tesources. awtuned gniwing tienund o' the Cahtointa ing the inf rastructuie to aHow lot and Alidw est snarkers. the opetuuon id f utural gas fueled atkhtn inal inp msibihtws tot pubin velucles. he isting two liepanment af f airs and i ot pt irate serin es and 'the (omp my also anthipaws that of 1:netgy Clean O ut Te(luu > logy let ame s h e picsident of admin-shatchokters will benclu hom its denu >nstrat6on pioiet ts, helpmg istratn e se Tavs. Hn haid C Kelly, respinse to the market demand to estabbsh C< ilouth >% Pollution who wa' awinned senk it execu. tor (lean hicis Suth s entres as Pics enoon Pannership using tar responsibihty toi this aica, Natural leucts, with a mission to f ew er hanniul siih ents in its was named senior va e penitlent, increase the denund h n com- < >lerath ins and tecys hng ozone. finante and adnutustration and pressed rutural gas wdl result in danugmg l~reiinm. (onunnes as (hief hnancial e,thscr. inc reasett corp nate ge = >d wdl. as well as henchts to the t a nnpan)% ('>f ettual internt to its investors t >ther erlated (lunges int hided lx ittom hne. 'the o nnpany is l'howtb 'ontiunywiH N aWinngloun R AKiiuto senior im u ted by the new f ederal stan. eset utn e inp,nsd nhty for the aheady seeing f.n orable nzsults f roin its rif ons to enu iurage sesi. dards ntabbshed by the (:lcan Au tates and regulations function dential customers to o irn ert then Att Amendments t il prio Herause and al punting thws C Kmg as wood burning f uepl.n es to t lean. of the uuulunv% cat h t onmut. Yk t pinntent of menopohtan ment in this area and the use e d ( ustonwr operanons w ha h homing natuul gas low-sultat w estem ( o.d l'oblic ini ludes met utn e tesp >nsibihty "I'lW h >ng-tettn stu trw (d llW Sen h e ( (1. allrady meets the b it ille g.ls anti elet tin' thstillm-(ompany% natural gas business, stoct standatds hir sulf ur dioxide ik m thvish ms however will be dependent on enussions. In akhtu >n. the ( om-how w ell it respontis t< > the pany is wt uking vi meet the t hangmg tenulatoly em m uuuent nitrogen oude enussions testuise-Liter in IW2. it is anticipated ment by JOi 10. m t i mn u n t u in w it h tlut the reth ral 1:neigv Hegulatory a sunitar o unnutment u nude to Corunuwbin wiH twue a Onal the ge >ven u n 4 4 O >h nathi m luxo dectsh in t >n its N(itke ( d' Ptt ilie mu t Hulenukmgs % hk h seeks tii complete the restna tunng of the natinal gas industri Pubhc 12

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OPlill ATlNG STATISTICS l'utk Scwo Cytww of Cous@ md Sesmno Notural Gas Service Statistics 1991 1.m 1m 1M in i n, t hi Scf Gas Dehvories 232.7 "i9 '1 4 '-- ~' 17 e 1 1 'u 3 1%1 i % Cum 10.3 % 43 4o e '. ' W ! 13 4 r Customers (000) 878.6 w4 s31 hn4 m '- n7 / En _ , p. D a p 1.6 % t4 ? I ,1 is e 30, Average Armual Ret,4dential Mcf Usaga 116.8 tt'/ 14, e Ui* 1u-. t 11 J 1-.e ]Cym, 4.3% ?r< 4 11 e.' i' l1? O f 46 Annual Hoating Degree Days 6,914 6'J '>1>

• Lo t ~ /1 4 ' 'a

% Chv? U.1 % is r te n ( W 4! rW Average flesidential Revenue Per Mef $3.74 37 3ei 4 13 p au % C Nrtiq (1,1)* k w vo 11 N -9 n () o p y-- Average Armual Revenue Per Residential 4ustomer $437 cm 4o us a n 1 iii % ChrP 4.0% ch R 6 g>> l1! 73 w Daily Availability-(MMcf) 1,001 1f 1Fr !i1' 1 471 iC 1y1 5 Maximum Peak Day Sendout (MMef) 1,268 1-" 107 1+/! 39 1 14 n i 1.mt %Dev (20.1)% 0, f7 4 t> u 1i (u ti D Electric Service Statistics 1991 U*, 'm N iM N 1El Kilowatt Hour Sales (milhons) 20.452 "l1 14 h7* WIN nW !734 1',473 .- -% CNrP-- 1.6 % /' 40 f4 1% Customers (000) 1,000.7 %6 W6 9?L 'n ? 1 4A %1 N CNry#,. 10% u? fr 07 09 te 3 F. Average Annual Residential Kwh Usage 6,563 R44; 03b h i ri c ' <.o 6 t!. 731 4 % Cwp 1.8% um ?3 7 ( 1 3, a,16 Acerage Residential Revenue Per Kwh 7.07c 7 O? ? 11 7 lit 71b 7 34 6 74 e -.... -% Chw@ - 0.7% ( 13, it h M I I? 1% AverC9e Annual Revenue Per . Res6dential Customer - $464 4% e1 4m 40 .? 1 5W ... _% Chew 2.4% 04 70; Pb iU 4 13

• /N Net Dependable System Capability at Time of Peak-Megawatts 4,168(s) 4 3? ' M 3 91a a 191161 1 UN

'iLtica 31kei Net Finn System Peak Load (Mw) 3,568 399 14M iV 'W 3ZF ? K "J % Ch:rge (0.6)% 30 -w 19 19 'O 16% Reserve Margin at Time of Peak 16.8 % mM !? 3 mJ 1 i :) t/

• 1m Genershon try Class of Fuel:. _ _ _ - - -.....

Cp 98.1 % N3 Y9 91 1 atc wi W, '_m thhrd un-1.7% lb ?? 3' 3n 13 0h 04 0.2% U1 D? f U1 01 03% f u..ie w 40 63 16 O f, 00' ANrage Cost Per Unit of Fuel: Cte Ian $22.40 21 44 21 4i N Pf J4 93 $ 2i M Nil!J9 G.rcMd $ 1.98 207 ? if /? ?D / 84 5 31/ 04 Bee $21.16 278 L 31 4 rh ?K

4 m S in Acage Fuel Cost Por MMSTU S 1.20 1 17 11?

1's ! u it i1N wow-re m (w) poter rec kgf 14

t l 1:lN ANCI Al. AND STATISTICAL. DATA IUrbc kvoce Qvsgung ot CO10noJa and $utuires 1 t t i 0.hu%f tun i e tot a tbimi) I 1991 UAo 1m6 tu 1'es t r_r% 151 l Opetsbriq Revenueo Rm $1,160.6 11459 11M 11160 t on s loM i 74? i Gu $87.$ !O17 57/ 1 W1A %33 U u: 0 8 Ki 4 Dhef 26A A3 P3 9 30 16 3 15 7 11 0 Total Revermes $1,794.4 17B 9 1707 ma 1 m7 4 1y 79 $1ymj -locome Defore Estraordinary hom and Cumulative Effect of a Change I in Accounting Method S 149,7 14 1 1@ B H5D 1417 !?3 b $ im B poi 4; Entraordinary item l Cumuletsve Effect to 1/1/87 a6 J of Accruing Unbilled Revenues - = blincortto 149.7 146 1 1N6 1?$ 0 173 3 y4 1(O g f letted DMdend Requ6rements 12.2 1/ 4 1? ti !? 8 13 2 1 ', 7 10 7 Emmings Available toe Common Stock $ 137.5 In7 ro/ 11? > w1 67 5 84 1 i Eam6ngs Pee We6ghted Average Sharet - bv% r untwv en att tuntN w t?W1 } b C%Yny e nonna n.fuJ $2.48 ? 49 ?9 ' 11 / 4J Pts. 31 97 3 I i im y d t ug W-(199 7 Cawum eM! to 1/1W O!O -d muu:rej VdjeJ wn 49 _ S2.48 2 49 ?9 ? 14 3 0$ u 13 5197 W t DMdende Per Shares Pad $2.00 ? 00 ?W ?W ? 03 /tb 11(n IMwi $2.00 ?m ?ro ?(0 / 00 ?t0 11 $9 Common Stock Outstandireg: WegW-d u. cap tL(J3) 65,471 5303 $? WJ h2 457 6lM f4 0?3N 4? TJW 66,294 M 3N f2 WJ7 L? 4% h? 457 Y ^t9 44 890 Ye, nnd (DLO) 3 ? 43 3 054 ?to, ?9t PBa 1 ? C? $3,473 _ Total Assets Common Equity $1,034 %4 M (V6 - bbP 101 1 733 Preferred Stocks 6ts:t to treat:sy u nvrpton x pp 44 46 O LP M 67 F) s-f u wbst tu newry reatmren 140 140 143 140 143 140 140 Long Term Debt 900 h 913 944 UM MO Ure Short Term Borrow 6ngs,'_ 297 .]M 1% 1(? hah 191 b4-Total Capitaltration $2,415 _ ?.:05 _P193 2 163 ?iM 2 045 51895 Capitalization Ration-ear-End; Comon ecmy 42.8% 41 b 41 2 -@0 3% 37 ? 38 9 % B? B6 89 90 10 1 12 1 % - Preher(M sin Ord dt.e wt'un 1 yr ) 7.7% ~ 40 7 41 7 4i6 4? 4 41J 45 h - Lorg wm ebt Ond dw Mf un 1 yC) 41.2 % f Mes payatAe a%1 curwcu ruter 8.3% 93 B5 75 90 93 32% Construction Espenditures $260.7 N.12 1714 162 8 127 6 M? i?% 7 - 4 % of 1Nu cap 1WNon. 10.8 % i13 80 ?$ 59 9 f3 13 5 % Jash Generated intemallr* 5177.7 174 6 t 7? 3 1%' 8 47 9 W10 5%7 i ? WMd???WW" - = 69Q U7 %7 1W6 Gf 4W. Rates of Retum Eamed: f ots carmahnn(Opet oum 10.1 % 10 3 11 3 10 ? 10 7 11 7 78% Avg common e'pty tw!:Je exith udmry the and a change in i = ccounwg mem1(Not to cernawa 13.0% 14 3 44 13 0 tt 7 t? ? 1? 1% Avg connon eq#v (Not te ammon) 13.8% 14 3 S4 r3 0 19 3 08 171% Pretan coverage of interest Empense ~ 2.94: 3 07 3 02 ? 81 3 91-25? 3% 31 .31 33 46 3 $" ' 04 32 % _ L Effective income Tax Rate 80.6 % IC 3 772 93 5 a6 1M85 N 3% Payout Ratio on DMdends Paid Book Value Per Share $10.38 17 74 17 13 mA3 16 35 ts 4 $103p L somber p6nployees-Year;End 6,565 Si MN 0 557 64m wu m

• kclaws (iebt duo w%n one veaf. rc% puMpe a"d C anM_/cd p@er. ard pmfc "ed He wbpv't D Nmdatyy rcenoton wt ' me yrd

" Cavowded Pan opermom mi of cae uwd u a vwm 1M1 uewavt as twas (riner.mi nermy

• C, hated M cash p<nvdtd *'om 0;eaW % fW o' cem used iar uryNda 4 mi.c hy c e Sg.t& w excm rd n' Af DCMA moi,wrd 14S1 G.U:tIOd 35 iJidS gON "idtilirlOf rOlv M a % d %1 Cr/WOMtfFi 05 W./M y
• 9t:4. e e@ Kid %1fy dtsff t Y

15

N ANAGliMl!NT'S DISCUSSION AND ANAINSIS hohr &vce comen of Coww aM Satw.rn i R: cults of Operations Statemen!s) and a 4 2% naease in gau rales (wt och en Ea'nngs per chare were $2 48. 52 49 and $2 69 in 1931. c!uno tranmartaSon servws and gathenng and prccess. 1503 and 1989. respecWely. The 1991 camings ing actw$es) lhe hgher sales r0su!!ed pumarJy from remained relatively staWe, wtion compared to 19M colder avather experenced in 1931 as weh as a 1 b% desp<te tugrnheant factors including the negatve impact of increase in customers lhese 'ncreases. howes er were a $22 mdkory$13 8 nbikon after-tm or 25 cents per share) offset by a bwer recovery of gas costs whch ata passed i refund to electnc customers resultog from the rate on to custon ers theough the Gas Cost Adystn v nt (SCA) Settlement Agreement appreved by The Pubke UMbes lotai gas 0+/enes inctered 10 3% und 13% in 1B t Comamion of the State of Cokvado (CPUC)(see Note 7 and 19M respectwely. dae to ocreases in gas gatt enng Conmitments and Conongencies in the Notes to Consom and pacemng acbvtes and transpathon servces The dated Fnarcal Statements). hs negaWe f actor was per un<t fee charged im tranplaton wrve whJe 9g-genera 9/ m$ga!eo by the postve effects of hgher 1991 nAcantly less than the per umt anount charged for a sa!e electric sales and naturaf gas dehvenes as wed as rate to a s1nct customer, orovdes an opmahng magin equiv-and tax adjustments which are dscu%ed below. T he aient to the margrn earned on UN sold in addition atd 1990 earnings. when compared to 1989 dockned pnman mmdar to gas transpo1&nn servres. the por un:t feo L lly due to genera! increases in the cost of labor, matena s chwged for gathenng and procesung acNibes is a!so t a'd supphes The 1990 carnings however, were po+ signihcanUy W than the per unit an ount charged for too tive!y a"ected by the exclusion of nuclear operabng and saio of gas Thn!efore, increaws in such actwees M not i rDaintenance Costs wb ch have been cha god agair st the have as great an impact on gas revenues as increaws o defuehng and decomt usioring hab i1ty isnce Aug5 deiaenes from the sale of gas Lower gas cocts from sup-1989 (see Note 2= Fort 51 Vrain Nuclear Generabng phers in 1990. when compared to 1981 mhich are passed Staban in the Notes to C<.nsolidated Finaned Statements) on to cuMomors through the GCA. and a 13% decrease R; venues in gas saluS were the pornary reasons for the deChne O 394' 3,wenuos The increase in 1931 electhe operating revenues. when compared to 19CO. is due. in part to a 1.5 4 incream in Elecinc and gas operabog euvunues refiect the of fect of electnc sales volume resumng from a 1.0% increase in rate changes and cost adjustrnent clauses on pnces of customers and weather related factors lo add > tion, the units sold Operahng twenues also reficct the volume pos$ve effect of revisions in the negotiated electna retad changes m un:t sabs and dehvenes The forego'ng factom base rate reductions and higher energy costs wiiih are ali contnDuted to annual changes in revenues when com-recovered from customers through the tlecinc Cost pared to revenues for the preceding years as irdcho in Adjustment (ECA). served to further increase electoc the folioning tabiu operatog revenues As discussed in greater delad in Note mmw tbw

7. Commitments and Conbngencies in the Notes to Con-sohdated Financia! Statements. base rate reducbons th +s wmm

~~ t99i M amounted to approomately $14 9 milhon $24 milhon, and .]yj]1g S 8 S $36 m%on in 1991,1990 and 1989. respectwely. The tu e 7,am (22.0) 1991 electnc rate reducbon, which is otiset by a simdat bwnw W W com 20.9 Mi 4 posrtn,e gas rate adjustrnent was inshtuted to rectdy the h 4 e <m $ 34.6 i c4 earnings imbalance ahch costs between the electnc and Gu reen gas departments These postve f actors, however, were M 'm m m $ R2 i GMcmta4ummeur (13.7) ( w fa off set by a $22 muhon e!cctoc refund recogneed in the &w mewwmemme 25A e second quarter of 1991; The refund was the result of a rate M e amw 4Ww $ 25.9 1 f S f;) Sethement Agreement entered into with the Colorada ~ Othce of Consumer CounscHOCC) and approved by the Operating Expenses CPUC The moderate increase in 1990 electoc revenues The increates (decreaseg in operatog expenws f rom over 1989 is pnmardy annbutade to a 2 2% increase in the preceding year were as fobows sales volume and the revisions in the negobated electne mw d DM rotad base rate reduchons which were off set, n part, by J99C. N bwer energy costs recovered through tne ECA - O %e o gemon s t 0.6 i to ewuamm 21.9 o9 Gas operatog revenues increased s gni6 candy in 1991 @ j [ [ ]'$ $ 2 when com;)ared to 1990, due to the posmvc effect of the m wnm oa.3) na gas rate adjustment desgned to rechfy the departmental D( pum 5.2 37 eamings imbatance (see Note 7, Commitments and (({"* ' " ' " ( ) ConSngencies in tne Notes to Consokdated Finance 4, 3 g, gg 16 . ~

The 1991 incteam in fuel used in generabon em pense 1 Genemtng Staten in the Notes to Cu Mdated F inanc al pnma4p attnbulahte to hgher luel t menso ad;. s!ments StMen entN 10 miibon. hgher admoctrabm arut gen Atuc h co'rel ate w1h the inctease in elucinc operabng ree t ra! e'pfnet and t eighur custaner Spenses tontthated enaes assceated W,th the [CA SMjh! increases in the p'r 'o thu incmase in other operaNig e(per ses n 1!O1 and und cott of con and mouetate inueases in gene'abon n 10N when compmed to the mWc bye precedng year. both 1!O t and 19JO served to increase tael umi in nen. bO Al" IUVtG of Thed300 phP d !Ror dalanC e thyygh(ygj of atKP1 eipe? M! wtK-n (10'f pared ja the f%pgj4g ; rg IM Ahen ctmpared to 19 O. Wy, the pnmary rem.on ced>ng yeat The 1E@ increae. 4%n comp ved to for tt e dechno in main!"runce e tpenses in 1931 in addr 1993. me mMated by loa er f uel c r oer w av.m q tun. approunde!/ $8 2 maon of mpaFrnent prenarG asW U'ed A dh the [C A as? oated Mh noche sweNory wm recognved n 19:0 Purchai,ed poner en pens ; increased synt can!'y n for whch there was no comeporu_i ng t t argo in 1991 lho 1991, When cynpiVed to 191 due in pW.10 hgner po' dechno n 1910 rna:ntenance expenant when compared un t costs lot the energ/ purctused and increased Kwh to 19# 6 ttue pnmtn!y 'o the edupon of narlear man. pu< chases These increases were iuriner unructed b/ terance expenses 4Ah !avo been chauod agmnSt the ncreased Durchated pow emense adjustme ts whch defuehng and docomm9;snrnng halRty unce the cessa. n correlate to the incteased eiestne operabng revenues kv1 of operabuns in August 1!W anocWed wdh the ECA h add Doo the Comrwy conno-DO N9N OCreaW in IWl atId lKO dep'e' ;a!K n Ue5 to pu!chasO an ifIC!caMng anount (if eriergy from O'DOh50 ahen compared to the respectNo premding Quatfong Fa%bes (QF s) dao 10 f eguutory requuemens W"E

• D4"anty a"nbutabie to ong?ng pbut add bons The OFs charge a hig'er rate per Kwh than the Com-pany c other supphers The increasua purchased po^er 3,,s ON'r IMn momo 1 ns e K rosed H 1!O1 and e,ponse n 19:0 over 1989 was pnman!y attrbutabe to 19M when compmed lo '

respectse prer edou yeM. increased Kwh purchases which were tronitrated bi prmWy as a tsul of h'7 ar prepotty taves increawn in decreaMM purchased poNet expense adptmM the mW ieve as we!! as h9he' a%%fCd D'DDf"ty vabes sAll s nia wili-t t nit )sII R < au Will-crenbuted to the hgher property 1Mes in both yeam 1 t tuluc ANi> % i t I ciluc ANi> < ; As The ri dac!00 in 1931 Acome tar eapenso, when cone O ia EWN p.ced to 19% was for the n ost part attnbutable to j deCreabOd income beIore H ICOm0 takes and thH f DLognb l t on of i ngher tax dudachonc in the cunont year for which eCA JB nn defened trues were provided Hgher income before incomo ta= es was the pnmary reason for the increase in 4es. _.. _. _ 2(+ 19B income ta< e, pense when compared to 19B9 1 he l 1989 income ta r e> pense was hoaever, a'fucted by two l._ b 1_ sl.. ! 20% t,gn:hcant dens locome tav e> pense was lower in 1989 0 dJe 10 a revson in the amount of defened ta=.Os to be TOC gw 'f ogneed as a resu't of taxabte coninbubons in ad of con-shucbon uncor the Tat Reform Act of 1956 (see Noto 9 ao+ i* Income la< Emonse in tne Notes to Consohdatr J i mo m -l Financal StatementW Th s reduchun was OHset by lower j tM benef M due to the rocognmon of defened taw banchts assoaated wnh tho 1986 fon St Vratn entramd nary lors i L I The dderred tax benehts were recognved at hgher rates m e 8n s e r m W m to m m than those in effect for such actaa! deducbonu included in the 1939 ta< retum The increase in gas purchased for reside expence wa3 primam / attnbutable tc an inctease in sales dunng 199 t 1he increase in 1991 o nsceMneous income and deduc-when compa'ed to 19~O Gas purchased for resate ton 9 net over 1970 resuhed pananty from the rec (gnton e) pense was lower n 1990 when compared to 1981 dm in 1931 of a $3 meon incentvo award for the Company s to hwer gas sa'es and a dechne in the per un t cost 0f gr> eMorE in secanng a $67 mhon f of and for its custones bom one of the Compan/s natu al gas supphers r The nerease in other operabng e <ponses e due. in paq to the recog%on in the i tst quaner of 1991 of $131 nk intemst e4anse increased M 1931, when compared to hon in addfonal detachng and decommsvunng e <penws the previous yent an a resu't of an nacaw of $915 n 4 rewed to actual and anbcipated Fort St Vra+n spent fue! bon n long tono debt uued throughout the yeat The shipping deiays (see Note 2. Fort St Vrain Nuclear t7

i r M ANAGl!MIIN11"S DISCUSSION AND ANA1.YSIS cena I Nuc Serre Ceway c/ Cawanu Moa ces t dech c in inte%t em pense in 1991 wron compa'ed to coated futu'e efkts frun a%p9an of 1%se dwbsure 1939. Aas prinMd/ ddO tO a UPeredW in ID!Crebt eptElsa f eQuPDn OnIS AWki nO! bU n 0aning! I U on bngderm deh1 W dechno wac the msu't of the retae. f Derit of $35 S mton !n 1,r st n of1caou bonds arki $25 0 h I d"Y WE U C NB C*N W"M d W"d mAon in credum tenn notes in theiret tuarter of 19?O AmnSog Stahdyddb W ' AmunDng he inmue The poWvo effect of thcse rePtnnents was maalted by I d"S **h M "WiUL SI ih '" C"' D' I 'n ac u' Accoun. increased into'est empense resutting from the is$uance of UU W D b U S' MM"U D' IhCU"C la'O 175 0 ndon in f 61 nMtgage bonah,n Ju!y,1M3 T h s danu 6 vb:tw in+ 5 ai yers trainning 0 er 9 December th 1N2 Wnne the Compa y i An adoptni n $Nu$. "% "^*" # #U # # ""'#"#"i " "#

• tut nnpact, ma nom Non e Tann. in the Mos to ConunL i

O r.93 mna dated huarca! Sta! aments for a Of ta ied deCunrson D w, a w m e n m m me m w i Commitments and Contingencies l lhu Compaq m M!ved mth Imter dmgoNed under $2 m' ~ e iht! Coi!Of(dlenhTO [ny'If ofirDf 41tlll bey >cf W.($ COM ip{,n - $t " m ratan and Liabety Ac1(CERCLA) m hvardan wete w Po Way bndM Me md the Bwr W14 Ce pany Mn T he Curoany a ehgW to natopate o a W sr w .n Mb MWW bn @ W and u s us. _ m. Company 5 porton of the deanup costs is esdnated to t o i N W M 3 ndbo C D 7 nd It v d%Ad tM thn Ctx npany wd mMb E obko%on o te matter dunny aao. t e ~ ~ ~ k ku M d 19W Tm BS Ma Mrgamu eMa tuted to be up to aNmemriMy $6 in@on Neooto on _ n gg g g y (* ~g ~ j ' ~ W conunue inta 1992 mth cleanup posuly tx9nnog in y the sprn9 or r.ummer lhe Company oelm.t that et is 81 M M f4 W 81 MM NO W gg, W Am.m m vte u n m Awn, o w u.w; D+"u Louy brW and Barte Mes M be recovemd thm@. 9mnwww em cwwwwma v,e ww m mm o.m g my#mnm s,, a mu'ance See Nde 7 Comm.tments and C.ontngoncoc w m o w**** in (no Note to Consohdmed FmnN StNen m Ior a w come e imu mm en s nw dotaded dscusw>n 6f a u t4 9 wrm Rate ives and commitmenN assocated v,"th the pu'- Recently issued Accounting Standards chase of asm!s hom Co!orado Uto Electnc Amoanon Not Yet Adopted Inc as well as othH commimenf S and Conbr.ger ces we in December 1990. the h.nancu /socounung Standards e cuueWn detM in Note 7. Como timents aNd Contin-Board (F ASB) issued Statenwnt d Financa! Accounung Standmds No % Emp!cyers' Accounting br Pau- ' ocs s in the Notes to Consobdated hnancW Statuments retvenwn! Boref a Other Than Pensons", which estab-impact of Inflation and Changing Prices tshes the account:ng and recor0ng sinda ds W pod-Cap !ahntenvve industnes such as the utity industry, am rebrermnt benefd other than pensons Whde the Canpar y part culady a'fecleo by s@ndcant long tem unhaton Very bebeves amphc ' of the now darx d not have a matw ramp!y, deptocahon on oNay property. p ant and eque-adverte financ@mpact,500ibr o employne BencMsin rnent which :s chargun aosnst earnings for a%nts the Notes to Ccrisokdated Financa! S'atoments km a acquired in the pat t. mes not rehect the inf Wed cost of detMed d-scur, son acquinng simdar azots. Consequent!,s higher profe may be reported on a coninuing bass vath no accompanying in Dt comber 1991, tne FASB ssued Statement of F; nan-UNn in rd pdrchwna pow or econonE vNua Hoe cial Accounbog Standards No 107 - D:sclosures About Evor_ the statwadon h inttapon at reWo!y Dw levuk has Fatr Value of FinancW Instruments". whicn et tabbhes d$ minenced tnidmpy;t on tne cunent operatng rew% ClOSU'e requirenwnts related to the Idr VNuc d br >ance! ridroments Th:s statenent m effective for years end:ng Liquidity and Capital Resources after December 15.1992. and the Company intends to Historical Cash Flows adootit in 1992 Since the ? tute f air mas et vNuo of fnan J Cash pro /ded by opmans ranNrwa rebuMy dWo. - CiM indruments k not currentV deterrnnat%e, the Com-- when compyeo to 19% weaq oW % 7 n@on The pany bc4ev03 tha? dscu% ort atins tmo of any aN 1 18 i

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d. ho w ' Aq+ ",

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I i MANAGl!MiiNT'S DISCUSSION AND ANAINSIS como nw nmce cmuw comanenna#es - Conpany and its wbsld: anes nuy nret t%r extema! r ot proh> bio the issuance of approumately $$7 4 maon capda! requirements thf ough the issumce of hrSt inaft-et r $w bonds (in additon to the $NO mhon pnncipal page bonds, prLAened and'or comn on S!cck, by increas-anuant of secured n gxbum-tenn notes dscusted atove) ing the lecel of interrred, ate IOrm borrcwng under P$ at an amned annu.T interest rate of 8 5% Covewyf e- 'e Colutada Cred1 Cupo aton s (PSCCC) med.umlerm s ote the not camings test at December 31 1931,6as 5 r program or itvough sho$ term borroMog under cornmit-ted E unccennutted bank bo'roMng a'ranaements de N Compang, habd AM's of inco'porr at cumj bebw. The inancng needs are subject to contnuing' the issuance of add:tona! prefurred skd Wahaat p'e-reden a+ d can cfunge @pendira on itwhet and buses kned shwMdm ammR untez 9m gron incono !condtons and crwihm. if any. in the constructu1 pMs of mWW U o payment of interest charges for a recent ' the Ccn pany and as sutodaes tWw nonni pvod m at kmt u bmes the tota! of (1) the antiu3! interest requ'rements on allindebtedno% to b0 out-l h 1931. the Company amerded the Autarabc Drvdend standirg for nore than one year and (2) the annual dw Heinvestn ont and Con non Stock Purchase han whereby dend retpten onts aWI preferred stock to be outstandng MhweMders nuy purchase add: tonal shares of com. At Docember 31 1931. g*oss income avadable undur thm rfon Miock of the Company through ite reinvestment of requirement woud Lemt1 the Company tmssue anyo+ cash divdends at a 3"s dacount for new imuc cha m and ntite!y $15 bH!on of add.tona!prefo'rud stock at an as-no price decount on open meet st ses Add to at surred wrw! iivdund rate of 7 0?% Coveage of g oss t i Wres of common stock may a!so t,o purchased voth a cone tv 'est charges at Da ember 31, IN1. waq 3 52 oplonal cash peyments wdh no pnce dKount The 10B j - 1rO4 proceeds from ho dwidend reinvntmnnt plart esto Ihe Con pv3 Restated Artclos of Ircoyoraton prohits. mated at approumately $ 12S m@on, wS 20 pIovde

• 'N P"*"ed mM oW apprmal Um isance or funan to noet the caput recurenents of the Company a%umption of ur6ecured indebtednet 'ther than for refund:ng purposes g' eater than 15% the agg,ag 3te of At December 31. 401, the Company and im subsda6es (1) the total poropal an ount of an bonds or other securL I

had temporuy cash 'ovestments of $22 8 m6on bes reptesentirg secured indubtedres of the Company. .j then outstand!nct and (?) the total of the capdai and sur-As of Decomter C 1,1991. PSCCC had bonowed $158 7 plus d P.a Company, as then tecorded on as txoM At miHon in shon term debt for use pnmanly in the purchase of the Companys customer accounts recevablo and fossd Dwember 31,1991. the Company had outstand ng un-het inventones PSCCC may penedica9y convert stort^ 3gy,ed ndebtednem, includeg subsdary indebtedne% with the credit support of the Company, in the amount of i les m det : to in!onnedato term debt secuntos At c' $90 0 mmon The nnnum a'uount pened under N I Docomber 31.197. PSCCC had ro intemedate-term WtMm wm approedo y $315 9 menn at December r debt outstandag the icvei of hnaneirig o PSCCC s tod 3 tin 1 -l d rectly to dady thanges in the level of the Company s out-standing cu90mor accounts receivabte and notghly A'rangenents for bank knes of crede totaled $300 mcon changes in fosM fuelinventones 40 Company & pects in committed knee and $60 mdhon n uncommitted ho s at l that the amount of hnancing a%ociated wdh PSCCC wm December 31. IfG1, at whch tm e $1715 mil:en was vary minmaity from year-to-year a!!houah seasonaMluctu-available te the Company and PSCCC. The Company abons in the Ir/ vel of assets wm causo corresponding !!uc. could generaky borrow under unconmtted preappeoved tuatons in the level of assoaated f.nanong knos of creo t upon request, however Ine banks hain no l f rm comm4mont to make such cans In 1990, the Cornpany fded a rcgistraton statonon1 wdh the Secuntes and Exchange Commmson :or the issuance At Deco,.ber 31,1991 Western Gas Supply Canpany, of $500 mson prinopat amount of (m mo'tgage bonds of (WestGas) Cheyenne Lght. Fue! and Power Company WNch $2CD mMon was designa!6d for a secured medium, (Cheyenne)a:4 Natucal fuels Corporaton had indvdual term roto pro [ yam, As of D(cember 31,1991, $915 mean arregements for conmated bank knes of cront of $25 - ponctpa! amount of rned)um-term notes had been 1%ued muon, $2 rrdhon and $4 m40*t respechvely The unused -- amounts of inoce comtruued lines of cred t at Decertbor The Company's heenture permis u o issuance of addr 31 w% we $ 12 9 maon $2 mdton. and $3 9 mmon, tonal brst nortgage bonds to the catent of f0% of tha value respectxely. . of not add @or,s to the Company's uMty property, provded net earnings twfLe depreciaton. taxes on ;rcomo and On January 15.1992. the Company and PSCCC eitended interes! expense for a recent twoke month penod are at the credd f aciMy joint!y entered into oni~ebruary 8.1931, least 2 51:mes annua! intorest reqamments on a!! bons to Tne credit facady with sovera! banks provides $300 mMon bo outstanding At December 31,1931. tre amount of net in bank hnes of cred4 The credd fachty, which in&d po-additons would pemm!(and the nef carnings fest v.ouki man!y to suppa't the issuance of correnorcal paper by the 20 \\ L

4 Ill!PollT 01: M A N AGliM lint Putw Sewce como.un ut Caeau ans sutoswes Company ana PSCCC, WMinen!y p<c,xtes for d/ect Report of Management boric, ong thef cunder. Wah this eMensat Banncck Conter Tte cmnpanying founcmen e>,s of PuMc Smm Cowabon, Cheyenry 14% Weqa't Inc. Fue1 Resour ces Ca npany of Colomdo and r>ubsdanes i me tron pre Dwelopment Co an:1 WestGas were provded access to pd by Qn My WwM n MpW e gedy the credd f acA!) under a $1N rnhan aggmg We sub knut Mh d f ect boneMngs Quat antecd by thE.xtopany Gen-ampWd a%Ounbng pondpH conwont eth the Une km S/r.to o! Accouns of the Federa! Ef ugv Regubtory erany the banks a partictpanM in the c nit fa%ty would Commesm Ttmntmnty and ohotrvdy of tho data in these have no obhgakv1 to continue their conntta ents d there f nanoat statements are the fet ponwb?!/ of maragement has been a rnatenN adTrLe chance in the budness of tv 1nanM inDnd@ @nt3ntd elseWher0 in th's Annua! Od90la' CUnd400 Of the Company knd qs $Ubs;d aries tabf n Retd uG con 9 stent #!h thahn 100 finanaal StatemonM as a whole, that gud prwent the Company and 45 sub. $dahes ff 0f D pr!rIQ!If dn'J ihed Obhg&!On undOf If te Creil l lhD Company ndntaths Ohd enigrCOS a Sy5 tem n' shternal facity lte facnty epres December 31.1992 ;soo Note con 90ls. vhch 6 de90ned to pwido reasonable absur-O Bank Unos of Credit and Ccenpensat;ng Bank Ba!ances 3,w on a cost effectve bass, as to the intognty, obpcW-In the Notes to Connohdated Anartial StatementM dy and rotatsty of the f:nancia! reco os inuyctem i Part w t t n1 n At A t a t oss nu u u A rndudes a prcyam cd internal auu:tb to assu'o manage-IN I nn w1 i A,'Ivi' INPI N! nit nis ss g ment that propr r procedums and net'ods of ODemton are - l t 4 t.\\Pll -\\!!/ \\ l D #N ~ UDOd to implOn Ont trO plans. pohWS and dueCliveS OI N &' N i '. rnanagonent idinag.pnent has considered the if dernal l 88nm awnan. Rrnm wn vrau auddof's and the independent pubhc accountants. recom nondaSons dunng the year concerning the Company #s a5 i- ~ @cm of mW!cond md has Wn amns M e bameam mm cmnececums1amesum, m uo f f Ont behWOS tn31, ab Of December 31, '!W1, the ~ Company s tvstem of intema! controm p adeoaate to ^ F dcCupp%h the OhleCDyes d'ScuZed atOve furtherme, thH a0Counbng pf ucOddes and internal COnfrd! System Ol ~ the Ctynpany are f ev'eWed by the Aud t Comn ntno of tho BDafd oI b?Ollof S T he acc.ompanying finaned st2fmonts have t oen aud,ted iN b/ Atthur Anderson & Co, indepenooni pubhc accoun-tants Managerrent has made a, amble to Arthur Anderson i I & Co M the CompanyMnancial rocof ds and iotated data, as weg as reprecentatons Ae beh&se to te vabd and I e tu fe e i m m mw& .o w OON'ODUd!C Tr w W W.*ecr w ior4 A < Ib m % Fa3 n priW c' d v w w t, t w r o n a m netwa [d hh a(($4 6-+ + . - 7~ 4 a nem enn-l h n gr iv ( o e g D N or a-,4 tw,:a IN w l m u,a m I l 21-w,_.--..,_ _ _-_ _ _,, _,,

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l CONSOLIDATED STNTEMENTS OF INCOME Pubhc Sweice Cour ct Cokvaac and Subsid; wies Years ended December 31,1991,1990 & 1982 f 0%sancs of Dea s Except Pv %aio Dam) 1991 1990 1989 ? Operating Revenues: Electric ~ $1,180,501 51,145.915 $1.139.471 Gas 587,609 501,712 577.282 Other .26,794 26 312 23,913 Operatirk) Expenses: Fuel used in generaton 177,365 106.784 105 801 Purchased power ; 323,793 301 910 295.025 Gas purchased for resato 365,991 358 263 380 078 Other opaatog expensen 361,610 332,51G 329,991 Maintenance 67,216 85.522 86.755 Deprcoahon 111,728 106,527 102 331 Taxes (other than income taxes)(Nom 10) 74,335 70 033 57,430 locome tnos (Noto 9) ' 69,288 73.978 60,557 1,551,326 1 ADS 533 1 A94 A68 ' ' A3,578 238A06 246.193 Uperating' Income 2 Other incemc and Deductions: A!!owance L equity funds used dunng construcnan (Note 1) 4,763 3 444 1,581 2,889 1.590 1,485 M:scellaneous income and deductionswt Interest Chargec: Interest on long tema debt 81,666 75,075 77.627 Amorhzaban of debt dicount and expense los.s premium 1,827 1MJ 1,385 00 tar interest 22,718 23 949 23 45G Allowance for borrowed funds used during . co]gtygongate O (4,674) (3.271) (2,0j4) 101,537 97 296 100A24 Net income 149,693 14G,144 148.840 12,234 12A39 12.645 Dividend Requirements on Preferred Stock 136,193 Earnings Avaltable for Common Stock $ 137,459 $ 133.705 Shares of Common Stock OutstandinD (thousands): Year-end 56,294 54,320 52.807 yeygg aypagg_ - 53.62t( _ _52.559 55,471 Earnings Per Weighted Average Share S2.48 $2 49 $2.59 cf Common Stock Outstanding _ Dividends Per Share of Common Stcck: Paid S2.00 $2 00 $2.00 Dociated . _$2.00 S2.00 $2 00 b ( = b 1,} I i l-23 ~

CONSOI.fDATIID 13ALA NCE SHliHTS PubM Sorsce Company of Cobrado and Subsid.aoes December 31. n91 & 1990 (Theands of Eblurs). Assets 1991 1990 Pioperty; Plantand Equihment, at Cost: Electric $2.784,646 52.050.088 Gas 871,843 808f$18 Steam and other 95,324 97,985 Common to a!! departments 271,991 ?58 745 Constructon in promess 171,698 145,333 4,195,502 1 900.969 Less, Accumulated deprecation 1,511,162 1 412.443 ~ --Fort St Vra!n related property (Note 2) 2,G84,340 18.526 78,242 /B02 Less' Accumulatcc deproc:a!on 16,782 17.067 1 ~ 61,460 00.f35 _.. _ _ _.... Total Property, Plant and Equipment 2,745,000 2RG261 trnh_is, at Cost ~ Current Assets: d 1,572~ 116.029 Crh 13,509 8.928 Temporary casn investments 22,765 18.256 Accounts receivable, less reserve foi uncollectible accounts ($4,741 at December 31.1991; $4.370 at December 31 19r0) 144,869 127,845 Gas refund receh' ible 14 979 Accrued unbi!!ea revenues (Note 1) 62,539 06,50G Recoverable purctased gas and electnc energy costs-net (Note 1) 44,702 65.870 Matena!s and supphes, at average cost 78,367 71,919 Fuelinventory, at average cost 34,447 33,427 Gas in underground storage at cost (LIFO) 14,803 13.701 Prepaid expensos 14,409 11 453 Other 1,199 831 Tctal Current Assets ~ 431,609 433 755 Def:rred Charges: ljoamortized debt expense 19,491 20,012 Recoverable nucler piant and deconmssioning costs (Note 2) 124,444 5.026 Gas refund receivable 29.957 Otner 39,873 29,073 ww.l- - -.._., Tchi Assets _..w_u_y-y ,,,y_ g _,,,_q. $3,472,789 $3 243.072 m e - m r _ m m o m m m m eree m - - n o m m _, i i

tinoas.mm. e tuma 1991 1990 , - - -Capital and Liabilities-- Common Equity: Cornmon stock (Note 3) S 795,718 5 7b1,149 Retained earnings 238,715 212,514 Preferred Stock (Note 3): Not subject to mandatory redemption 140,008 140 003 Subject to mandatory redempton at par 43,702 46.3G8 900,491 896 029 Long-Term Debt (Note 4) _ 2,118,724 2,046.0G8 Noncurrent Liathlities: Defuehng and decomm:sson og habday (Note 2) 145,331 13.197 749 29 957 Gas refund Iabaty 140,080 43,154 Current Llabilities: Notes payable and commercd paper (Note 5) 200,640 213,833 Long-term debt due witnin one year 93,474 42.235 Preferred stock subject to mandatory redemption w; thin one yea'(Note 3) 2,576 2,5?6 Accounts payable 171,805 177,753 Dwicends payable 31,171 30.23G Customers' deoosits 15,842 15 071 Accrued taxes 76,343 64.876 Accrued interest 24,401 20.701 Gas refund habday 49,975 41.102 Current portion of defuehng and decommissioning hab.hty (Note 2) 47,034 82.169 Other 51,829 48.918 'iotal CurreniUabiiitIes ~ ~ '765,090 739 530 ~ ~ Deferred Credits: Customers' advances for constructon 46,927 40.768 Unamortved investment tax cred,ts 134,386 139 G16 Accumu!ated deferred income tar.es (Note 9) 251,481 225.350 10,101 8.577 1 Other Commitments and Contingencies (Notes 2 and 7) S3,472,789 $ 3.243 072 IoiafCapital and Ulabilities ~ ~ 25 e

CONSOLIDN1'llD STATliM11NTS Ol; RliTAINliD li A R N1NGS l TLtN Semcc Comnay of Coicur and Sesa.no! Yea's endea Docemtwr 31.1931 Iw & 195 l l go m + ou.,, $ i s 1991 1910 1939 Retained Eamings at Beginning of Year S212,514 $186264 $ 15523? Net incomo 149,693 140.144 140,840 362,207 332 428 304 072 Dividends: On comob:rm pmferced stoa. $100 par vxu. 4 20% senes 420 CO 420 4 o senes 744 744 744 4 > % senes 293 79 3 293 4 61% tenec 742 742 742 ' 90% sencs 735 735 735 4 90?- 2nd sened 735 735 735 715% t.enes 1,787 1,787 1.787 7 50% tones 1,665 1,755 1845 8 40% senes 2,130 ?"M P.370 $25 par va!ue B40% senes 2,940 2.940 2,940 12,200 12 405 12.611 r)n cormon stock $2 00 per share in 1991 '930 and 1989 111,292 107509 105 177 Retained Eamings at End of Year 123,492 119.914 117,788 $2J8,715 $212 514 5166 284 ru e s r w egremsoe.y.ou m e v u n nf. ,, r iu g a p. < -9,w t.--, a u,, m ) 20

. CONSOLIDATJiD STN1'EM ENTS OF CASH FLOWS Pa.?:: Sente Ccenpany of Coorada and Subwanes Yvxs enaud Dwemtwr 3L 1991.1WM 1989 imaumh of Dawn 1991 1990 1989 - Operatirig Activitics: - Net income S 149,693 $ A144 $ 148 840 t Adjustments to reconcile net income to net cash provided b'/ operating activities: DepredaNan and amort:lation 118,943 113 420 115f763 Amortizaron of investmer,: tax creda (5,230) (4 992) (52G7) Deterred income taxes 26,122 34287 37,020 Allowance for equ:ty funas used dunng construction (4,763) (3.444) (1,681) Change in accounts rece:vable (17,024) 8.378 11.414 Change in inventones (8,570) 8 350 (15 448) Change in other current assets 21,811 (17.984) (7.842) Change in accounts payabie (5,948) 13.319 21 009 Change rn other current habd:14es (11,022) 40234 47,521 Change in gas refunds-net 24,541 22..?d4 (6.523) Change in deferrea amounts (122,554) 1998 12.319 Change in noncurrent defuehng and decomntssioning habi!.ty 132,134 (71,903) (63 266) 0:ner 2,134 3 385 (G,525) ~ Net Cash Novided by Operating Activities 300,267 '293,522 288[034 investing Activities: Construct on expend:tures (260.704) a ' 221) (174,418) Anowance for egaty funds used dunng construct:on 4,763 3.444 1,581 Proceeds from d:spoMon of equ:pment 5,893 5 321 3.949 Purchase of otner investments (11,396) (49.367) (129.861) Safe of other investments 15,002 25 798 137.827 " Net Cash Used ininvesting Activiti$s (246N4'2)[ (276525)' (160 922) Financing Activities: . Proceeds from sa!e of common stock (Note 1) 39,305 27,881 8.570 Proceeds from sa!e of long term notes and bonds 97,204 83 684 19 843 Redemptior, oi long-term notes and bonds (42,918) (94 008) (48.228) Proceeds from snort-term Dorrowings 690,645 142.793 222,790 Repayment of sho'1-term txyroungs (703,838) (82,168) (199.950) Redempton of preferred stock (2,576) (2.576) (2.576) Dividends on common stock (110,006) (1003 53) (105.002) Dividends on pretened stock (12,251) (12,456) (12 662) ~ ~ NeiCashiis~ed in Financing Activities (44,735) (43 603) (117 215) ~ ~ ~ ^ Met lncrease (Decrease)ln Cash and Temporary Cash investments 9,090 (26.106) 9 897 Cash and Temporary Cash investments at Beginning of Year - 27,184 53 290 43 393 _., Cash and Temporary Cash investments at End of Year S 36,274 $ 27.184 $ 53 200 b 1% T: rK.<es b COMO ITU fJh3nS3l E 5 er% dT an inffgd tc r' 9 Pede t WOW Q!f r?Tr"; ?

E NOTliS TO CONSOLIDATIID FINANCI AL STATliMl!NTS Pubhc Sewce Company of Colorado and Subsidaies . 1. Summary of Significant Accounting Policies Fuet Resources Developrnent Go (Fuelco) uses the unit-Ccnsolidation OLpmductm depreciahon method for producing od and Pubhc Servce Company of Cokarado (the Company) fol. gas pmperites. f or income tax purposes, the Company lows the practce of conschdahng the accounts of ds sub-and its subsdanes use acceleratod depreciabon and scaries Ah intercompany riems and transacDons have ode doctons pmoded by the tax laws beenehminated Allowance for funds used during construction (AFDC) Ravenue recognition The Company and Cheyenne Lght. Fuel and Power Ccm-AFDC. mm does not represent cunent cash earnings, is pany (Cheyenne) accrue for estimated unbdled f evene dehned in the system of accounts prescnbod by the Federal for services provided after the meters were last read on a Eneroy Regulatory Commiss on (FERC) and The Pubhc UWh Candon of the State of Colorado (CPUC) as cycle biang bas:s through the end of each fiscal perod he not cost dmng the cenod of cons!'uction of borrowed Statements of cash flows funds used for construction purposes and a reasonable For purposes of the consohdated statements of cash flows rate on funds denved from other sources lho Company the Company and as subsdaries consider a4 tempora <y cap; tables AFDC as a part of the cost of utsty plant. The cash investments to be cash eqwvaients These tempo. fonox:ng range of AFDC rates wem used for the years rary cash investments are secuntos having ong:nal maton. 1991.1990 and 1989 tos of three months or less or having longer matunties but 1991 19,o 39g with put daies of three months or less Encrm 8moS 8 60 m 9 %iom Income taxes and enterest - (mcluding capitahzed interest) paid Income taxes Uzum of Osro The Company and as signihcant subsdaries fde consoh-ircorrMws .M_ _E _ W dated State and Federa! income tax retums. Income taxes - $44 418 $ 41 n9 $ 37 672 are a30cated to the subsdanes based on sepatate com-interest $%o10 $ 95236 5 99 633 pany computations of taxable income or loss. Non-cash transachons: The Company and its regulated subsdanos, Wenern Gas During 1991 and 1990. 242.674 and 197.862 shares of Supply Company (WestGas) and Cheyenne, pmde for common stock, respechvely, valued at the market pnce on deferred locome taxes to the extent a!iowed by regulatory date of issuance (approximately $5 3 mdaon in 1991 and agencies. including deferred taxes ansing from the use of $5.0 mimon in 1990), were issued to the Emplowes' Savings accelerated depreciabon accelerated cost recovery and Steck Chvnership Pian of Pub 0c ;cae Company of quahfying accelerated amoruzation and timing differences Colorado and Partc(catop Su%d:ary Companes The due to unbdled revenues which include deferred gas and estimated insuance va!ues were recognized in other oper-electnc costs. In adddion, tne Company currentiy provides ating expenses during the respective preceding years. for deferred taxes on book tax Um:ng dfferences ansing These stock issuances were not cash transactions and are from items associated with Fort St Vrain (see Note 2), from not reflected as a source of cash in the consolidated state-certa:n customer refunds and for all bocktax timing d<f fer-ments of cash flows. No matenat non-cash invesbng or ences included in FERC junscFctiona! rates. AB of the hnancing transactons were recorded dunng 1989. Company s non-regulated subsidianos 1480 Wetton. Inc (1480) Fuelco, Bannock Center Corporabon (BCC), PSR Dapreciation investments Inc, and PS Cdorado Credit Corporabon Tre Company and its subsdaries use stra ghi-hne depre-(PSCCC). provide for def erred thes arising from all book. ciahon for accounhng purposes Composde rates are used tax hming dJferences .for the vanous classes of depreciable asse's. Deprectation rates include provisions for disposal and removal costs of As a resul1 of the Tax Reform Act of 1986. the Company property. plant and equipment Total depreciaton expense determines ds income tax to be the greater of regular in-in 1991 approximates an annua! rate of 3 0% on the aver-corre tax or alternadve minimum tax ( AMT) Any excess of age cost of depreciab e properties AMT over regular income tax becoines a credit which may be appbed against future regu!ar tax habiWes Replacements and betterments represonnng units of prop- = orty are capitahzed. liems that represent less ihr n unds of Invest nent tax cred:ts are no longer avalab!e to the Com-property are charged to operaSons as ma:ntenance The pany and its subsdanes as a result of the Tax Reform Act cost of units of procerty retired. togetner VAh cost of re-of 1986 Previously recorded investment tax cred:ts have - moval less sa!vage, rs charged in fu!i against accumulated ben defered and are be$ng an abzed to income over the depreciabon. producuve hves of the related oroperty 28

Amortization of debt premium, the Company cunentty estimates it will need the capac!ty discount and expense asaole from the converted p! ant T he Company wdl be Debt pren dum. d+scount and expeme ; Desng amortzed repred to obtain a certibcate of pubhc conveniento and to ir:corre over the respecove onginai Lves of the apphca-nt cessity from the CPUC ll it becones p'otubie that all ble issues or as arected by tne CPUC or a porton of such investment aWor the usated taxes wW not be recovuted the Company wil recogow an er pense Flecoverable purchased gas and electric eWo the unn cow we a munts at the time such unre-energy costs-net coverable amounts can be reasonably estimated The Compvy. Oneyenne and WestGas recover certa 1n purchased gas a,d electoc energy cosh in excess of Dunng 1501 as a result of spent tuet s%pment de!ays and amounts rervered inrough base rates. from the:r retM a h<gher probabaty of uthzaton of the on cite independent customers through vanous gu and electoc cost adjust-spent f uel storage instaSanon OSFSWd:scussed below ment lads Tnese cost adjustment tan'is &ch include a under De'uehng"). tne Company reccgwed an add; tonal promon for the co ecton of dde"ed purchased gas and 5131 mean in oefuehng and decomnessoning expenses n electoc energy costs, are rev: sed penod1 cal'y as prescr. bed Other operating eqv ises in 1931 a;so include present by the appropnate regu!atory agenc2% The ce+ened costs vatue ad;umments of approumately $7 9 mAon to the are the dference beineen actuat costs ncuned and the defuehng and decommwoning habity S mJar adjust-amounts current:y recove*ed f rom customers A substan'.N rnents n 1EO3 and 1969 of approurately $10 9 m@on portion of it s de'e red amount repreknts the costs in-and $14 2 mAon mspectNel/ were included in other cuned to provide gas and e'ectnc energy which customers operahng e,penses in adabon,1EO) maintenance have used but for whch tney have not yet been b6ed egenws indude appronmately $8 2 mean assaciated wnh impawd nucJear assets pomanly related to the wnte-fleclassification down of nuclear matenals and supphes inventory Dunng Certain derns in the 19N and 19B9 Cormohdated Financ:N 10B9 Ine put s MN yem of operatm Fort St Vrain did Statements have oeen reclasc6cd to conform to the 1991 not p'oduce revenues adequate to o4 set expenses Ac. manner of presentagon cord ngy an addmonai mortf a!! of approumately $15 9 muon o unrecoverabte operat,ng and capaa! expondo 2 Fort St.Vrain Nuclear Generating Station tures was recogwed in 1<Ja9 investment in Fort St. Vrsin Decommissioning On August 29 1969, the Company announced as dec:sion On Decemner 27.1091. the CPUC approwd a Supple. to end nuclear operato4 s at Fort St Vra:n The accoon was based on tne knanca! mpact of an an9C pMed lengthy ntn N Mirement Agreement (the Acreement) to the 1986 Fort St Vra;n St:putabon and Set:Mment Agreement anow-outage neceWry to repa'r the plant s steam generator system coupied wth inc plant's bctory cf redaced less of ing the Company to conhnue with the cany d smant:ement/ generatton The Company commenced the aetuehng pro. dwoninwonang of Fort St Vra:n (Eady a cuan9ementi cess as d scussed below in tne sect,on ent:tted "Def uehng decomn assiornng essumes (nat fonowing the iemovai of the s;;ent f uel Sqrnents from the reactor (aef uehng). the radio-Dunng 1986, the Company entered into a Stipu! anon and achve components of tne reactor wii! be d:smantted and Settlement Agreement wan the CPUC. the Colorado Of$ce renmed over a three year penod ) of Consumer Counseq0CC) and the oth r partes in-voNed in Ltigton and admnstraw: proceed 1ngs rewed Pursuant to the Ag'eement, tne Company WW recover from Customers approumately $124 4 mAon, p;us a 9% carry. to Fort St Vr:en s h, story of l<mmd operahons As a resu:1 ine Company's invecment in Fort St Vran was removea ing cost. wh:ch repmcents tne inhahon ad;usted estmated from rate hwe and certa.n charges were recogTed n-romanng cost of the cady dSmanhement/deComm!SsO4-ciud:ng the wrde-down of a submanta' port:on of such ng Mvdes not prwoudy recogn zed as emense over a inveciment and the recogn6cn of the then estmated f uture tAeke yea' perod, tegnning July 1.1993 The annual unrecoverable defueh ig and decomm;ssioning expenwn amount thmged to cu90mera exh year wW be approxi-mate:y $13 9 mean As a resu!t. a 5124 4 mhon regulatory The recovery of ine rema:n:ng insestment in Fort St Vran asset and a conesponding increase in the detuohng and (apprommawy 561.5 m%on at Decemoer 31.1991). as accomnmssioning hab{ty has been included in the consoh-w@ as the tax eNcts of prev,cus!/ recognved ta W dec-dNed babnu sheet 1:onS asioCakd WM SJU iinVestment !or ANCh no de h con &Mun for he af K NMon to Chmge this annu^tl fened ta>ed Aere TqEDO to be prOv;ded (apprQ1RnMcH1 amount h mm r, N Ayeement s9pum that the $75 mf on at Dec ' ter 31 1931) :s unmanty depenaum on ine Comanyl abdy la repor ine fac 'ty as a naa' Comp W ". mMe to certain ratem#ng poncio!es donna thN 2 yur Dehoa as fonne gas ted p!ax when s iny ods to compa by 1998 e r " 29

TNOTIIS TO CONSOLIDATliL) MNANCl AL STATl!MENTS consnued J Pubbc Serece Company of Colowda and Subsidmes

• No adjustment wd! be made for regulatory purposes to (apptommately 51 years). after whch decomm:ssioning the Company's cap:tal structure that wou'd result in the would be completed with the four-year d:smantlerrent of allocation of the prevously recognked Fort St Vrain wnte-the reactor. Due to the extended time Immo for wmplet on -

~ downs to aH components of the capital structuf e rather than of this decommissoning approach. the SAFSTOR cost to common eqdtyalone, eshmate had been determined on a present value basis 3

• With respect to conss ucton work in progress (CWIP) the wh>ch required quarterly expense cdjustments w. recog-nize the passago of time present regu!atory treatment (cxclusion of CWIP from rate base) will continue provided that the Company may re-Fonowing is a reconcthation of the recordad defuehng and quest an exception in the event certain targer power plant decomm ssoning cost estimate from September 30,1986, projects are persued, excluding tne repowenng of Fort St when the plant was removed from rate base. to December Vrain 31.1991:
• The Company will implement accrual accounting for reg-( """* O'M ulatory purposes in accordance with tne provisions of DQQQ7""M 3gg Statement of Financial Accounhng Standards No,106 -

numn eurmv3cw ca mt " Employers' Accounhng for Postretirement Benehts Other Reno" n enmme 33 tm 13 (m Than Pensons" (SFAS 106), mod 6ed in certain respects Qj]M"* gm (see Note 8). newot me quem,n acerwa tNNfi 9 309 3G4?8

• For regulatory purposer, aaministrat.ve and genera; 333 333 costs win be abocated to Fort St Vrain so as to rehect the Debe4ng emed ver INmgh 1?J t o f (1?S nac)

Q]g {"" porton of such costs attnbutable to Fort St Vra:n. In add. ton. the Company has committed to make contnbu-DAeng a donmss ormg tons to the Colorado Energy Assistance Foundabon for a htigaton to recover damages associated with spent fuel -$yQ 3y thirteen year penod. In the event the Company conynences gg shipping delays (discussed below under "Defuchng"), the Company's electnc customers wdl be entitled to a iefund or credit equa! to one-hatf of any net cash payment (a'ter fees, Because of the uncertainty as to completion of decomm s-includ:ng lega! fees) received by thn Company. domng at cunently estimated costs and the fact inat the decommissoning plan is subject to NRC approval, there The Company has submitted a proposed early dicmantle. can be no assurance that the actual cost of defuchng and ment / decommissioning plan to the Nuclear Regulatory decommissioning will not exceed the est: mated liabinty The Commission (NRC) and the Company has contracted with Company could be required to revise the estimated cost of Westinghouse Electric Corporaton and MK-Ferguson. a defuehng and decommissioning because of any changes dvision of Morrison Knudsen Corporahon, for the early dis-which rnay be required in the decommissioning plan b y manttement/ decommissioning of Fort St Vrain The con-inc NRC cv others or because of the resoluton of other tract stipulates a fixed price, based on the dehned work uncertainties such as the disposa! Of spent fuel as d:s-scope; however, such pnce could be revised oue to cussed below. changes in the work scope or changes in certain reguia-l tions. Generally, contract termination by the Company Defueling

would result in the Company being responsible for a:! con in 1965, the Company, the Atomic Energy Commisson tractor incurred costs to the daie of nobce of termination (now the Department of Energy (DOE)) and General plus reasonable costs associated with sett!ement expenses Dynamics entered into an agreement to construct Fort St related to the cessaton of work.

Vrarn The 1965 agreement. as amended and mod hed, requires the DOE to designate a facQty for the tempora y l Beg nning in tne fourtn qua'ter of 19911 adophon of the early storage and reprocessing of Fort St Vrain's first eight dismantlement / decommissioning approach ohminated the spent fuel segments and additiona! coent fuel segments at need for any future present va!ue adjustment charges to the DOE's d:scretion. Pumuant to the terms of an agree-earnings associated with the defueling and decomtrus-ment dated Apn! 1,1980, among the Company. the DOE sioning habikty Poor to the issuance of the December 27. and General Dynamics. the DOE designated the Idaho 1991 CPUC decision, the i mpany was also considenng Natona! Engneenng Laboratory UNEL) for receipt of the - the SAFSTOR option for decommissioning, which as-Fort St Vra:n hrst c:ght spent fuel segments. On June 24 sumed that fo!lowing defuehng, the nuclear porbon of the 1983. the Company and the DOE entered into a contract plant would be prepared for a prolonged decay penod for the d:sposa: of spent nuc' ear fuui and!'er high level 30'.

~ _ ---. 1 l radioactive wasto f rom Fut St. Vrain beginning with fuoi If the litigation d4scussed above is not resolved or becauso .I J segment 9, in the event the DOE dccs not accept segment of other uncertainbes, it trcomes prooabte that storage of 9 under the pxions of the 1965 agreenoot as amended the spent fuel in the ISFSI wm be mqueed until ?OP0 when and mod fred ] e Company is cwronly pursuing wnn the suco fuel would be shtpped to an assumed avadable Fed DOE the sW. fAeprocessing of the equNaient spent fuel crat repository, the Company would be required to recog elcrre as of sr gment 9 at the INEL in conjunctbn with the ni/o an add 1onal defuchng expenso for maintatning the storage /reprccesdng of the fest eight segments ISFSI dunng this extended penod At Decernher 31,1991, such e, pense was estimated to be approomately $13 m+ In addmon to gs contractua! obhgations to provide for tem-hon determined on a present value bass These expende porary storage and reprocessing of Fort St Wun spent fuel tures have been escalated at an averago annual rate of segments, the DOE is requimd by Federat shtute to pm 5 3% and dscounted to present value at a rate of 9% In vde a repostory for the pcmunt simago and d.sposal of ths situation costs associated with the shipment of the fuel spent nuclear fuel teg;nning in 1998 However, DOE cur-f rom the IST Si to the Federa! reposdory in 20?O are as-renty eshmates that such a repository wd! not be avadabic sunwd to be the responsibbty of the DOE and, thereforo, untd 2010 Absent other anangenents wdh the DOE as d* are escluded from thm stunate At the twe, the Company cussed above, the eqtvaient Spent fuet elements of seg-- cannot pred.cl the hkeM ood, timing of recognton or the s mont 9 wd be stored at the ISFSI(d scussed below) anount of such addmonal costs to be recogneed, if any Whde the plant was operating three spent foot segments Funding wue transported to the INEL. Af ter cessabon of operatons Under NRC regulahons. the Compny is requned to make at Fort St Vrain, defuehng actrvites were initated and author" Mngs Mh. and obtain the approva! of, the NRC reaarding izaton from the DOE to cormience the rhprrent of the spent code aspects of the Company's decommissioninh prcF nucioar fuel to the INEL was recerved in February 1991 - posa!s The plan must provde for the technical and opera. tona! aspects N decunnssbning and specdy that Despite the Company's arrangements with the DOE, the phon wW be mado fu tne es of decmundamg Governor of Idaho contested the shipment of Fon St Vrain (not including dddng) through NRC presenbed meth-spent nuclear fuel to the State of Idaho. As a result. several ods of funding which arc. (1) lump sum prepayment, (2) an lawsuits were commenced dunnq t991 among the Com_ mtenahinking fund wdh annual paynets; & @ a gmb pany, the DOE, the State of Idaho and the Shogone; anu n mod (wch as inwranca mmty Nnd bm of Bannock Ind;an Tribes. whose reservaton e located near cmdd a im of credd) Within two years after cessaton of the INEL. Whoe the Company has been successful in ship-pedons, a heensee must submn ds funding plan to the ping some fuel elements to the INEL since the inmation of NRC to assure the avadabihty of funds for completon of these lawsuits. the Company is not cunenUy m@ng any dC *** ""'og Ory January 27 m92. the NRC ap. - shipments due to the DOE being enjoined from receiving proved th Company s funding decommissioning pian . Fort St Vrain spent fuel by a preuminary injunction issued The Company has also obtained a commitment f rom a by the U S District Court for the Dstnct of Idaho. hnancial inst;tuhon, suuject to executon of final docurnen. Whde the Company intends to pursue aU avahable lega! taton. to,ssue an unsecured irrevocabic letter of cmdit actons to enable it to ship the spent fuel to Idaho. the that wn! meet the NRC s stipulated funding guidehnes eventua! outcome of the Imgatort and its tinung_ are uncer-including those proposed on Augd 21,1991 by the NRC tain. The Company constructed tne tSFSi for Ine intenm that address decommimoning funding r equwements for storage of spent tuehegments 4 9 in order to safeguard nuclear power reactors that have been pmmaturely shut against any potentiai future delays in the defuehng pro-down The ssuance of the irrevocable letter of credit is cess Accordngly, on December 26,1991. the Company subject to, among other things, the approvai of the began detuehng the reactor to the ISFSI The Company Company s decominiwoning plan by the NRC cunenty antopates complebon of defuehng to the LSFS1 The Company has previouuy not asde funds for decom-by August 1992. Recognition of the addtonal $131 mdhon n#,sMng me twtor in trust accounts that total approe in defuebnq and decommss oning egenses dunng 1991 anows for tihe uuhzation of this facuty fo< an intenm perKd maw W 8 nWon at NmnM 3 L M Appunatey 22 fa @on chhm amount represents funds recovered of tmo without the recognmonof addmonalexpense The from customers and the earnings from the trust accounts Company beheves the aefuehng and decornmsactnng O romanung mAon wWch was contnbuted to the habd;ty currendy recorded on tne books is adequate as. kust accounN in W and M n3pmwntduns not surrang inat (i) the tue! is stored in the IGFSi unta 1993 and wecicah recovered from customers in addman, dunng (ii) at that tme, the spent fue! e sh;ppcd to the fNEL with Dembe M 0C Nnpany edaWhed a Tpade completion of shipp!nq by the end of 19% dacommwonino trust for Ine ISFS! and contnbuted l 31

NOTES TO CONSOLIDATED FIN ANCI AL STATEM ENTS connnum Pubhc Service Corry:any of Colorado and Subsidianes $1 A mdkon to the trust it is anticipated that this coninbui vate habity insurance; each reactor hcensee, includ:ng ton, togerner with the expected earnings on the funds, wi!! - the Company. is responsible to sha'e in the habihty up to be sufhcient to decommisso l the ISFSI in 1995, the maiimum amount through a deferred premiurh as-Defuehng and od er fuel re!ated costs, of which the rmpr!y sessment. The maximum amount the Company would be required to pa/ n respect of each incident at a United i i are scheduled to occtr through 1992 and whch tt e Com.

pany is not iequired to prefund are being paid from a comtg States nuclear p; ant would be approximate'y $66 milhon naton of operating funds of the Ccmpany and its suosd. aries.

(which includes a 5% surcharge), indexed every We aWor theissuanceof securites years for inttaton, pravded that not more than $10 mi;; ion would be payable per incdont in any one year'- Nuc4ar insurance The Poce Anderson Act, as amended, hmits the pubhc ha-In additon to the Company's habbty insurance. Federal Dility of a hcensee for a sing!O nuclear incident at its nuclear regula'ons requim the Company to maintain $1 OG bdhon power plant to the amount of hnancia! protecton avadable in nuclear property insurance EffectNo February 1.1991, ' through habaty insurance and deferred premium assess, however, the NRC gf anted the Company's exemption ment charges, currently approximately $7.8 bilhon, which request to reduce the nuc! car property insurance cover-

includes a SS surcharge. Financial protection for this age from $106 bilbori to a rninimum of $109 mdiert Th

s

' exposure is provded by prrvate insurance and an indem-Icwer Smit wd! cover stabWabon and decontarn: nation nity agreement with the NRC. Effective July 1,1989. the expenses resulting hom a worst caso defuehng accident. Company maintains $P00 mdkon of povate insurance. the The Company current!y maintains $281 milhon in property amount required by the NRC. In the event of a nuclear incp insurance coverage The additional insurance coverage _ dont involving a bconsed commercial power p! ant in the above the $169 mDhon is necessary to provde for the esti-United States that results in damages in excess of the pri-mated depreciated replacement value of the ptant asse's that wiu be used in the repowering of Fort St Vrain

3. Capital Stock 1991 1W0

_ _. _ _. Shares ...%ces _.Anug__ Amount (Tnoucs (Roucs O!OGEYs) td D dys) Cumulative preferred stock, $100 par value: Asnrad 3,000,000 3 n(nono issued anc outmocing. Not suorx; to mandatory redepur 4 PO% sevs 100,000 $ 10,000 Kn NE $ 10 K O 4W smes bncudes $7.500 peton9 175,000 17,508 175 NO 17 508 4 #% SeN5 65,000 6,500 65 Cio 6 SCO 4 64% wm 160,000 16,000 ifomo 1h000 4 Ec% seres 150,000 15,000 1f.0 KO 15NO 4 90% Tu sere 150,000 15,000 t50 000 6 000 /15% 6C50% 250,000 25,000 ?m RO 25 000 _. _ - -. _ ~ _ . $105,008..... _. TGW 1,050,000 1050D U . $ 106 CO8 Gub ect to rviu ey redempton i 7 50% seres 216,000 S 21,600 M fro 3 ?2.800 ~ 8 40% Sad 247,680 24,768 M440 M 144 I ea f4bmsd stocksabsci to conomor ledempnon Mhr o epst ~ , 2S,760), (2,576). (ps %) ( _ v _ PS't}) ( TOW 437,920 $ 43,792 4G3feo $ 46 368 - Cumulative preferred stock, $25 par value: Amnonzed ' 4,000,000 4 000 Om. 4 knual ard outs'andag Not sonect to mrdaLvy feder*pton 8 40% woes 1,400,000 $ 35,000 14;O 00 5 35 Cr.O Common stock, $5 par value: j'@le3 140,000,000 1m i:n:Om aed and cigancing 56,293,525 $28508 542% e $271 w! Prep.cug c ymm ED 514,250 47%G $795,718 1/51. t 49 a ' 32

-~ Changes in common stock and premium on comn on stock for the three years ended December 3 L 1991 are as follows (Itnu:. ands of Dobs) Average Premium Price Per Common on Common Share Stock Stock =_- SN?NG $4 47.437 Ga'ance. Janury L 19M $?4 S3 1744 RH11 34f( 733 snm mea unds tSe Dwaend nmwstmeu PM $?.3 7s 3 12 615 9ai<e xtgprie:ra N 036 asa 260 ea ance Decemtwr 31 1999 S?S13 MG 3 983 197 Sf2 sh ws msued under the Empioyees' Saency Pian $2120 0 576 P1305 _ 36163 snges Speo under me ovoend Reneamer4_ Pian 271 fot 479s48 1 B&inee. December 31 17-.i0 $21 W f114 debO 24? 67d Ef Jires 65Wd un1er f?P Emp'oyed Sunt,~ Pun 1730L03 shives med_unaer the Dwiend Reps pera P& Vy 71. __ _ 8 63 30 t 52 - smim 5su pso exance rwemw 3t 19m On February 20,1991, the Co. pany's Board of Directors The preferred stock may be redeemed at the opton of the m declared a dividend of one common share purchase rght Company upon at least 30, but not note than 60. days (nght)on each outstanding share of the Compan/s com-notice in accordance with the foVowing schedule of pnces rnon stock Alt future comnon shares issued will contain plus an arrount equal to the accrued dividends to the date this right Each right stipulates an inrtial purchase pnce of f 4ed for redempton $55 per share and a!so prescobes a means whereby the Danalue: resulting effect is such that, under the circumstances des-cribed below, shareholders would be entitled to purchase Not subject to mandatory redemption: additional shares of common stock at 50% of the preva* GYS series' $101; 41/4% series $10 t,46 senes. ing market price at the time of exercise. The nghts are not $101: 4 64% senes: $101: 4.90% seres: $101. 4 90% currently exercisable. but would become exercisable if 2nd senes $101: 715% series $101. cerwn events occurred related to a per son or grcup acquir-ing or attempting to acquire 20% or more of the outstanding Subject to mandatory redempton sharesof commonstockof theCompany. 7.50% serom $103 on or onor to August 31c 1992, reducing each year thereafter by $0 25 per share untd in the event a takeover results in the Comruny Deing merged August 31,2003. after which the redempton pnce is into an acquiror, the unexercised nghts could be used to pur- $100; 8 40% series' $103 25 on or pror to July 31. chase snares in tne acquaror at 50% of market pnce Subject 1992. and reducing each year thereaf ter by $0.25 per to certa;n conditions if a person or group acquires 20% but share untd July 31. 2004, atter which the redemption no more than 50% of the Company's common stock. the pace is $100. Company s Board of Directors may exchange each ngh! held by shareholders other than the acqurnng person or in 1992 and in each year thereafter, the Company must group for one share of common stock (or its equiva!ent) offer to repurchase 12D]O shares of the 7 50% series at $ 100 per share, plus accrued dtvidends to the date set if a pcrson or group successfully acquires 80% of the Con > for repurchm.e, and 13 700 shares of the 8 40% senes pany's common stock for cash, after tendenng for all of the at $100 per share, plus accrued dividends to the date common stock, and satisfos certain other cond,tions, tne set for repurchase Consequently, this preferred stock nghts would not operate The rights expire on March 22-to be redeemed is classified as preterred stock subject - 2001: however, each right may be redeemed by the Board to mandatory redempton withto one year in the Decem-of Directors for one cent at any time prior to the acquisit:on ber 31,199 t conschdated balance sheet. of 20% of the common stock by a potentia! acquiror. $25 par vabo During each of the years 1991,1990 and 1989, the Com-Not subject to mandatory redemption pany repurchased 12<000 shares of the 7120% cumu!ative 8 40% nones $25 25 preferred senes and 13.760 shares of tne 8 40% cumuta. tive preferred senes subject to mandatory redemphon at $100 por share plus accrued dNKiends to the dato set for purchase ho otner changes in preferred stock occurred in the thme years ended December 31.1991 33

NOTilS TO CONSOI.1DN1' lid FIN ANCI AL STNTliMliNTS Cocaar Pubhc Semce Campany of Comuda amt Ses das l

4. Long Term Debt (ie sm ot omo 1991 1990 bI5h SMvice Ccer,pany of Ccdorado Fest mongage txands-4> % sunus ;3a d October 1.1931 S

$ 30.000 4 *% senes due March 1.1932 8,800 8.800 8 95% senes, due May 1.1992 75,000 75 000 4 V% senes. due June 1 1994 35,000 35 000 5 4 % senes, due May 1,1996 35,000 35OCO Si% series. due July 1,1997 35,000 35.000 6.% senes aue Juty 1,1993 25,000 25,000 81% senes. due September 1. 20~0 35,000 35 Orjo 7a% senes due February 1,2001 40,000 40.000 7> % senus, due August 1. 2032 50,000 50 000 74% senes. due June 1. 2003 50,000 50,000 9 4 % senes. due October 1. 2005 49,500 49.500 8J% senes. due November 1,2007 50,000 50 000 94% senes. due October L 2008 50,000 50fX)0 9h% senes due Ju!y 1. 2020 75,000 75 000 PoHut on Control Series A. 54% due Maren 1,2004 24,000 24.000 Pohubon Control Senes B 7 4% due December 1.1995 2,500 2.500 8%, due December 1,2004 35,000 35 000 Pohubon Control Senes C 7a% dae October 1. 2004 15,000 15.000 7tk due October 1. 2005 1,960 1 900 74% due October 1. 2006 2,105 2 105 7 xi due October 1. 2007 2,260 2,260 7+% due October 1,2008 2,425 ? 425

7. % due October 1. 2009 26,250 26 250 PoPudon Control Senes E.

9% due May 1,2013 42,000 42.000 Potut on Contro! Senes F. 7% due November 1. 2009 27,250 27 250 Secured Medium-Term Notes Senes A 8 38% due January 12.1994 10,000 8 375% due January 17.1994 10,000 8 55% due January 11.1935 20,000 8 82% due January 15.1906 15,000 B 90% due August 1.1997 5,000 8 00% aue August 15 1997 5,000 9% due Apq! 1.1998 5,000 9 08% due Ma ch 15,1999 10,000 8 90% dae August 10.1999 5,000 9 25% duc March 27, 2001 6,500 Unamortized premium 545 615 Unamort: zed dscount (1,039) (1.000) Caoitaliease outgatons. 8 40%14 65% due in . _. instanments through Apn! 1,1995 2,230 2651 S887,286 3 826 226 34

prmwe a russi 1991-19.0 Dheyenne Light, Fuel and Power Company - - First trortgage bonds-7X% serics, due Apol 1,2003 $ 4,000 $ 4,000 inductnal Development Revenue Bondt 7.2S% due September 1,2021 7,000 10 70 % unsecured notes, due September 1. '395 8,000 8.000 Westem Gas Supply Company. Unsecured promsse i notes 7K% due December li 1937 20,000 201X7J 10 35% duo in instanments through December 1,1E09 4,000-5.334 1160% due May 1,2015 5,000 5,000 12.875% due May 1. 2025 10,000 10J7JO -Unanrxtized discount (292) (305)- 1480 Wetton, Inc : 12 50% secured promcsory note. due in i insta!!ments inrougn Marcn 1.1938 8,906 9792 13 25% secured promrssory rote, due in insta!irnents Inrough October 1. 2016 32,708 3? BG8

Fuel Resources Development Co.

Unsecutcd note. due June 30.1992, interest rate fluctuates wdh the New Yotk Federal Funds rate (4 49% at December 31.1991 and 5 93% at December 31l 199Ch 7,000 7,000 ' Bannock Center Corporatio,: 8% mortgage rete, due in insta3ments through January 1 1992 200 250 PS Colorado Cred:t Corporaton 8 30% to 8 75% unsecured notas matunng 10,000 -January 16,1991 to February 5.1991 Natural Fuels Corporation - - 12 25% secured note, due in insta!!m5nts 9 through May 23,1994 Capital lease obhgations 82% due in 148 99 jnstai!ments through August 31.1990 993,905-938264 - Less Matunnes due w: thin one year 93,474 e 235 S900,491 $ 896,029 In October of 19CQ the Company fJed a registraton state-At December 31.1991, PSCCC had in piace a pragam to - mont with the Secunbes and Exchange Ccenmission relat-soil its pnvate med:unstorm notes. wnh matuntss imm nine --ing to a $500.000100 pnncipal amount of First Mortgage months to ten years, up to an amount of $100fXR000 out-Bonds of which $200 000.0C0 was subsequen!!y demg-s:aneng at any one time. T hem wure no amounts outstand. . nated for offoring pursuant to a secured mod umyterm note ing a(December 31,1991. and $ 10,000 000 outs and,ng at . program Asof December 31,1991 the Company has Decemher 31,1990 imaxi $91 f.KJO,000 under the secured med: urn-term note program The Company w i connnue f rom tima to trne to Substantia 3y El properton of tne Company and its subst o OMor such secured meda n term notes and bonds based dmes. Other tMn mpreWy copMd prowly. are sub!act to the kns secunng the Compmty s M_,t Mortgyo BmKM on marke!Cond tons and Ofhnr f actors l m inc monmoendmd ne a sunmare 1 35

~

4. '

NOTES TO CONSOLiliATliD FIN ANCI AL STATliMIINTS Connouea Pubhc Servico Comp;my cd Coloru3&ui SubsCa The aggregate annuat mahnte 3 an d Wr Aing fund r ?quee-monts during the fwe years subsequent to December 31 1991 are: Ystr Maturities. Sinking Funtj Aequirements Total 5W W3 44 ry o $4 6Di jou W9 079 0nD 193J 2/D(W 49:H:W T 3T, WO 1994 s D OL000 47 6@ 6:' ' SO OKI 19B 33115 fM 4 %5 f W G70 0 0 1W 61233 OW b LOW O !4, ? E ;rU The Company e <pects Inabsty its onbog fund obhgabons tfrough tne apphcaton of procedy aod?ons and Cheyenne expects to satsfy $iXKOJ ef is enking fund ohhgaboos annu:dy througq the appkcahon of propery addhons

5. Notss Payable and Commercial Paper Information reganng notes payable and commerca!

paper for the yea s ended Decemoer 31,1991 and 1930 is as fo"ms. mu m mvDevo 1991 19'30 Notes payable to bank s jweghied average interest rates of 5' I58% at Dacernber 31.1991 and 8 54% at December 31,19T) S 12,100 $ 68.733 Commercia) paper (wcoghted average interest rates of 5 55% at December 31,1991 and 9 06% at December 31.1990) 188,540 145.100 S 200,640 $213 833 Maximum amount outstanding at any month-end dunna the period S 200,640 $254230 - Weighted average amount (based on the dady outstandrng balance) l outstand:ng for the penod (we<ghted average interest rates cl 6 47% i for the year ended Decemb3r 31.1991 and 814% for the ycar ended December 31.1990) S179,494 $ 163 73f;

6. B:nk Lines of Credit and Compensating rowings thereunder guaranteed by the Company Gener-Cank Dalances aHy, the banks as part:c: pants in the f acety would have no -

Arrangements by the Company and its sub9d: aries for obhgaton to conhnue tnen commitments C there has been committed knes of ciedd are maintained enteely by fee a matonal adverse change in the conschdated financia; payments in beu of compensabng baiances Arrangements condton, operations business or otnerwise. that would for uncommced knes of cred t have no fee or cornpensat. prevent ik Company and its subsid: aries from performing ing balance requirements then ob6gabons under the facmty. l' On February 8,1991. the Ccmpany and PSCCC jointly At Decen(or 31.1931, WestGas Choyenre and Natfal Fuels entered into a credit facsty with several banks provid,ng Corporabon (Natura: Fuels) had indedual arrangements for $300 000.000 in bank hnes of credit The fac6ty. wn;ch was commmed bank knes of cred:t of $25,000 000; $2 000000 to mature February 6,1992, replaced the $300,000,000 and S4 OM000. respectvety The unused arnounts of these individda:ty arranged bank knes of creoit in effect at the comrrited hnes of czed.t at December 3 t.1991 were time tnis facaty was entered into. Tnere were $300.000.000 $12MlUOO.12.0m000 and $3 864.000 respechvely in available comm:tments on December 31 1991,of which ind e ! $111,500;000 rerrans unused On January 15,1992.ine n nyn conn bank M o W W Company and PSCCC extended this cred>t facity to on-totaed $ 150.000 000 at December 31,1990. of wh!ch ture December 31,199m, The f acity, whch is used onmanly 1136M1000 was avadabie Certa n of the agreements for to support the comme. rc'a! paper issuance of the Company those credt knes required that investment grade status be n md NowonwnM Mo M hned ce and PSCCC, a:terna!Ne!y provides for a: rect borromng thereunder, With !h6 extensor 1 BCC Cheyenne.1480 wm pnmanWm uppon tnpuance d commmal Fueico and Wes' Gas were provided access to the facey paper by the Cornpany and PSCCC. but a% aiowed for ^N under a $100 000 000 aggregata sub-hmd w th d' rect bor l 1 3G

ladivdua! anangements for uncomruned bank knes of cred:t Tt e Company wm also acquit e transmission knes to serve - totaled $03000000 at Docenter 31,1991 and $150D00.000 the now customers and wdl acquire joint ownership with T rt-at December 31,1990 The unused uncommitted hnes of State in vanous buik power transmisson hnes thf oughout cred:t at December 31,1931 and 1990 were $60KO 000 Colorado These transorsson hnes wm g vo the Company and $95.000000. tespect!vdy The Ctrnpany and its suty access to the Four Corners area in soutnwest Colorado as sdanes genera 0y may borrow under umcxu ndted preap-we!! as provde transmisson paths for transmitting the ac- . proved hnes of credit upotuequest; however. tre banks queed capacity d:scussed above into the Company system have no hrm conynitment to make such loans. It is anticipated that cred, tors WW ix pad in fut! under the

7. Commitments and Contingencies Joint Pian The Company wHi pay approdmately $300 mA Ion and Pac fCorp wm pay apptournately $r50 mmion The Colorado Ute Electric Association,Inc, payments wm be designated for satsfaction )! secured (Colorado-Ute) cebt anct unsecured cred, tors TrLState 6 assume the On September 20,1931, the Company Tn-State Generaton Cr aig 3 lease and the balance of the Colorado-Ute secured and Trancmsson Associaton, Inc. (TrLState). PacifCorp debt of approumate!y $270 rMon. The Company expects Elecino Operatons (PacthCo<p) and Intermountain Rura!

to hnance this assel acquisiton w;th debt instruments Electric Association fded a Joint Plan of Reorganea5cn (Joint P!an) which was amended October 31,1991, in the The bankrootcy court conbrmed the Joint Plan on February Chaoter 11 reorganizaton of Colorado-Ute, currenity pend-19 1992 Pror to conbrmahon. vanous federa! and state ing in the U S Bankruptcy Cou t regu!atory agenc es. vanous groups of cred: tors and other r The Company in-State and PacifCorp agreed to divide numerous part es to operating agreements with Colorado-the electric icad, assets and habdites of Colorad>Ute Ute had approved the Joint P!an The Company has bled Under the agreement, Tn-State wW serve ten cooperanves an apphcat,on for expectted approva! by the FERC for the that wdl become members of Tn-State. representing about portons of the Joint Plan under FERC junsd cton The Ccm haif theload of Colorad&Ute The roma:ning four coopera. pany ant 4cipates receiving FERC approva! and expects to tives, which serve approximately 105.000 customers and corrpete the acquisiton of assels in the Sping of 1992 represent the other ha!! of the Colorad>Ute.oad wm be-gg come customers of the Company. Rate settlements-The generat:ng assets of Colorad>Ute. pomanly the Craig On January 31 1991. the Company fded a rate case with and Hayden coaMred plants in northwestem Colorado. wm Ine CPUC requesting an increase in revenue levels, among oc divided among the Company, TrbSta'e and PacdCorp otner things Dunng June 2991, the Company the OCC The Company wm acquire appreomate'y 332 megawatts and other parties signed three Settlement Agreements and $ia)as to!!aws f ded a joint motion to dismiss the Company's rate case. Hayden 1 139 Mw The terms of the Sement Aguments and the dessa! Hayden 2 98 MN of the rate case were approved by the CPUC on July 17. Craig 1 415 Mw 1991. The Settlement Agreement addressing revenue Cra g 2 415 Mw mquirements provided among other things: (1) for a $22 Variom Hydro Plants 116Ma mmon ref und to e!ectric customers in August 1991,(2) that tne Company w;it not request an increase in base rates TrhState wM acqube 100 Mw and assume the Craig 3 lease prior to November 2.1992 and wd not seek an increase in. of 408 Mu, and Pac.hCorp wm acouce 243 Mw The Com-base rates to be etfective pnor to July 1,1993. and (3) for a pany wd operate the Hayden Staton TrLState wm operate reducton in electne rates of 3 38% or apprommate!y $3 the Nucia fluid zed bed coa! f acmty and the Craig Staton mmon per monin. for the penod beginning January 1 Pac;fCorp we acquee tnothirds of Colorado-Ute s interest 1992 and encina June 30,1993 or und the effective bate in the Trapoer M:no wtth TrLStato acciuinng tne rema nin9 of net ates, cuitent?y anucipated to be Ju!y 1.1993, in on&thed interest. add hon the Company has committed to fde a new rate case on November 2.1992. In addmon, tne Company wu,t enter into various purchase power agreements with Tn State for the purchase of 200 The second Settienent Agreement estabhshed a procedure Mu and PacdCorp for the purchate of 176 Mo. The in-by wNch the CPUC can rron, tor the Cornpan/s hnancia! State purchase agreements will be in addeon to the enst~ - resuas subject to the CPUC's pnsd-cton untd new rates ing purchase agreements between the Company and tecome e*fectrve in 1993 For non tonng purposes, the Tn-State Short term hrm purchates wdl be decmaced as a CPUC wm use the_ regulatory ponc!p;es from the Company's resuit of inese new purchase cows r agreements-last rate case whicr became effective in May 1984 and a 37 l

wv NOTliS TO CONSOLIDATliD F1N ANCI AL STATEMIINTS com ua l puw c suce cmcrw ce no av Sad a' es rata oneun on rama equw raw of M W to 13 5% Environmental issues as a LCDChmTk MpNt Vhen the Carpany s futtf e tnam 1!ie Lowry LanaM in wumeau tregian Jenwe* hm Cd pedarmany M (M meEumd NOn M 9% Ed 4 N M 3"4* D O# IN (E A) a3 a bupNMd IUMdOM WN # 00' M d IO The thrd Sc " ement Agmement ref @d n the openog of the Comp'e%nue Emonmi nw R6tu"A Concon four na duet, a the CPUC The fnt dodet. Mxua satun md Udmv Act (CERCLA) U er NHCL A the on Ju;y T5.193t aad'eaca he s ;ues o' decouwg he EN has oded Pd ngg thponwe P.vte. t PRPg of TeiO lues Of !ne Company ham fs mob and h Wg dod p,y paws god and secuW kh y IN N iup O' egabi m og regub!my : cen'u s to encou'a w dand t4 s The m ' xid sea i atn * / Pov %oe de IR Ftammt peg' Jus (DSW h 'tmN d ta DSM D'O CWCL /4 ;oce, pm EPA to pf > un, & n ne o' tN PRPs graq p e second dcd t t (a o openen an JA 15 1!O1) <g ygg y atp3, EPA wn g vc PRP > ! agm w c een nt P 2 pm i b DSM nWtmeny me pch Tne Compxy em r raa 09d tv o 's d wa d !.t of DSM for n1 customer cbWs and Pie hpienMmn P sh xd neu% cd 4& gmmd n n bo, ' cb & O' w a DSM D'm ym The thrd dm wd Oc obe' m pce tm %en ncn;ea ma e nmy cm% as t W1. y4zes h gard Re arce PW n og" ta N a PRP x no Lovcq Lu a The EPA > pn Ai ng w & ' m rount en 9 derra a suppN ma twontw u ,, re y mye (von ami t% bW : Nd6 7 the Lwy nZe5 On December J 93{eneNias tne founn cme' v i > t g <tv 1 o purp f eo+ m n 4 ng ne g o w n n u m opened D e 4 nne TOW cro'T e D%e UPMI oa3 et cleanup n Niend ni M w d he AMWn d PO Includ Pg 3'TOKJ OP e G us cr ' t Og DMy PO'h b n "- i,unupCOMcenongPC W OJsPRP: of av tance and tre d o' Und ng av ance Trc. Comorry Nd been M N rwi cDN Y n t'o LD 'y Rre austrants curre ty a #ed tm ;,' Gene,my Gwp 00, g w+ cn un na n Cn R bmy 119sa 'ne Company. me OCC and ne Na" rw ' W mc EPA and M cm W1a^. ' t% Lwy LxG of he CPUC reached an electnc ram todacton agne're'? g yng g m obtexne oacto rJU Os dheCom-in respons2 to me Com;my s emngs bmg n ce > of paw m' Ses me cmrd r "i mm t% Lwy La # regum> afog 'au s 9 de pency. Smiv reaB 6 ne. t 1 w _m_.Gm~n(wnn Mov ~ G'oc d ; * ' h me C; o r wme g@rn Jed e dt Od;ng Un', NoMTiber 27 199 kb g3 g3 mg g p g ], g rg Graup W,r y fea a resa tm compm s eec rars -ema. m .a rm e aemn uma e a x m bom January through Ma'ch of 1939. 319% from Apre -g m,,, a Lozg Lnm N PA w., wa P ut .) ) O ] ! j'l . q,[f l it ' } I f II, * ' s k ' k! cember of 19B in 19% me eecte rye rednor me mo PRPs www s nv uumn of na% < t 'N Lwv te m 4 29% tmJam rv!nrougn ADN and i 11% Fom W to e mond n emo ma tww 1 he EPA h n ph - %1 Novembt ' 27 1%3 In addion as exDanN be m T g3 3 ; j g, - P' 's t dW e "

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eg, =W ad4 Mm;r o #- avngIWJ 4 -~

- ---- - _.- ~ ~ _ _. Under CERCLA. the EPA has identMed and a phase 11 enve through 2013 The min! mum reman ng quantibes to be'- ronmentaf assessment has revealed priespread contams - purCtwsed under these cCattacts total M m6on torn The - nation from hazardous substances at the Barter MetMs coM puichase paces are subject to pEodic adytroent Company proporties located in central Denver. For an enh for n4tcn and naket conddons lorafenknWed ob!ga-mated 30 years, the Company sold scrap metal and ehette tonc, tmsed on conte paces wta aoprA nato!y $818 = ca! equipment to Barter for reprocessing The Corroany # mWon at Decenoc > 31,1931 - . be ovolvea in cleanuo of the s.to as it behoves it was a pn DENM" mary conpibutor, The total project cost ts cunent<y estanated he Compr@auence@o Mgenn wnPah the to be up to approunutely $5 mAon Negotatens anung the partes WM continue into t 932 with cicanup possib!y U ""##" W 'M 03d '" CO"IPU"Y **"Ud D'

• D DN"9"#N M W" S-1 bea:nnog n the spring or surnmer.

~ e@1r KJ in 1997, DrCMdd for a n urWMum f enWOtnQ fransporI i The Company boheves that it is probabie thd cmts incuned 4 Jn14y of i9 m&on tons Coa! transport contract prices related to the c!canup of the Lowry Landfdl and Barter s%s me nepotuted based on mau conddona a'.d are as l wM be recovered through insu ance in adddu)nlothos0 ptcd g nodicMy for innahon af d opef abng httors, Totaf sh the Company has ident:hed severaWtec wtere ammed othgaborn baseu on cunent pnces, were ap-l cleanup of hazardous substances may be required MWe prcdmately 90 m@on m December 31.1991 settlement costs and potentW habit / we stM unde investe NatuW gn gation and negotiation, Inc Company tGeves itmho res. oluton of those matters wd! not have a matard chect on ds The Company and ds regulated subsid. anes have entered ' hnancd position The Corr;xany hhy intends to pu%e the W bnglunn conteacts expving through 2004 for the pur-reen/ory of at costs acuneyor scch projects through chawof nma!gau antopmonof futuremqueenonts insurance coverage and'or too razo rogulatory process 1o h geral purchase pnces under those con 9 acts are based the extent any costs we not roccvered through trW opbons on maM once fonnutas Totai estimated obhgatons, Usted above, the C"mpany wotM bo reausreh to recognize tmd on cunent prices, wae $619 m@on at December R ML an e(pense fa such unrecoverabNmounts-- ~ 00 Novonber 15. En Pr# dent Busn sgnechnto law Purchased power; l l Ine Dean Air Act Amendme, ts of 1990 & mod at buen!q The Company ad Cheyenne have entered into agrwments L tne noddy of rainta9 in the LWied States The Anendments W purchased power to rneet systcm load and energy l< iequec coat bWg pae piante to reduce cuNr ocuda recueements tmoplace Generanon nom Company-owned l1 (302) ana Qngen on10 (NOH ornssons 10 weched le+ una under rentenance and outages. and to prowde the l els Ro Ocepany is vrency moeing tho emisson stan-Company 3 operahnc; reserve onhgabon to the inland f da ds riacid on SC'ryhrough me use of low sulfur coat Power Poo! These agreemen:s expae on vanous dates The Company wM be req @ed to naW wrta.n couers to through the year 2025 The pnce of the energy purchased rodm NOx emism s c determined by contracts, wh:ch have been accephsd by the FERC, provcng generauy for recovery by the schors of On October A 1E tre resutts of the tJetro Denver Brown Peir costs. The supphers under these contracts have ob-L C6ud Study, aiong w th a ten po!nt recomrrendaton were - tuned hnancing for their facites based on such contracts. l, re! eared hy t"n Govemor of tou State of Cobrado in Total payments asscoated wdh such contracts were $ 170 responsF th.f C9npany wel attempt to reduce SO2 emis~ maon ( l991), 5165 mson (1mo) and $ 167 rnaan (1989) stons Kfp by app!yng :cducton technology on a3 of ns The ichving table shoM the h1ed port on of commitments [ ~ major metropchtal' area gene aung unitand to reduce under these contracts (payable provded power rG avad-NOx emis ions 20b bymod vog those gonemung u* able) for each of the omt hve years and in the aggregate i: r The Correny bekives that conostent with hetonca! regu-nwrow mw - la!OG trt'a%er1 any COS S to cor:1plywdh poHutton controi 3en gad %ym y nigu!atons wWd be recovered fa n ds customero How-W $ umm eVOf, no US5uranCO con be Orvun that (n:S prachCO Wdi Con- .tn#nu oue o TW W7h07 - Purchase requirements mt #a mafw a a <n.? i !.0 5 M 13M ~ - GDJj - At Decernber 3L 1991 the Company had in piace long-IOrID contracIS for it le purchaSC of cod!IOr UNshng power {n addaon. Mo Company ha9 other ionq h?rm purchased . Di//$ tWOugn 1997 and !Or the PdenOe bleam bOCinc oce connxts expwing through 2022 taat includn hrm ConO%ng $MTOn P'oposaj Und 2 horn d$ cQmpIchon DurchaSe D3mrDdmen(S These cC0Eac!S DmWy p'OddO 39 , -, - - _ - ~ _

NOTIIS TO CONSOLIDNITiD F1NANCl AL STN1'llM11NTS Conenued Pubhc Semce Ccwpxw cf Cowmdo and Subsidxes W recovvry by sekersof their couts Estenaied firm com-The Company and es subsidianes' findeng pokcy is to. . mitments (payabte prooded power is avadable) under Inbuto annuaPy, at a minimum. tDe amount necessary _; at-ihem contracts totai $3 4 bdlen The estanated tota! firm isfy tieIntemalRevenue Service fund ng standards The commitment anoint includes contracts wWch O'e espeeted nel penstun expense (credit)in 1991.1990 and 1939 was to be e +ecuted as part of the Joint P!an d:scussed above composed of under Co:otado Ute. n nown, w Dam Histoncatly. au minimum coat coal transportatort natura? gas, and pur chased power requncmunts have toen net seem H 2,196 5nw i m MM e:t s c,i on ;u yc bd ~ hisce!!aneompurchases b'*H W " 3 322 M ^% Comm;tments made for the purcha50 of vanous dems of fQ plant and eqwpment aggregated apptowmatety $213 me ,. m og < s hon at December 31.1991 w watr.ms Acenew mna em - Fort St. Vrain in 87 (3.673) 13 c7m uno See Note 2 for cena:n conungencies re!aung to Fort St. 0""nem 39,007 m 7?ct .n sw

Vrain,

!M pty a t.rew i m an S 2,185 5 W $ (1.MB) Cu:tomer accounts receivable The Company is umuired to provide service and g' ant cred:t to a diverse customer base wthin its senace temtory Sign:ficant assumpoons used in detumining~ net penodic The Company may requ:re secunty deposits pnor to provid-penson cost we. ing service to customers depending upon an assessment i99i m tw of cf ed t wonhiness The Company rev:ews customer a? N e w ra a,9 *4 a P. M. counts recervable on a regular basis and has in effect an Deecma W % e rew unCoheCDble acC-ounts [XAcy. e commme.w 5,5 % w 51A r breda egwf a.ema. The Company has reviewed es customer base for concen. wpmu N man tratons of credit nsk and has determined inat no indvidua! 11 % 1W customer or group of customers engaged in simdar active ties represent a matenai concentraton of cred.1 nsk to the Vanances betAeon actuat exponence and assumptions Company. for costs and returns on assets are amoqued over the average renming service bves of emp!cw s in the plan The Company has in place a leasing program which in. A companson of the actuanauy computed benef:t obi:ga-Cludes a proveon whereoy the Company indemnhes too l'ons and p!an assets at December 31, 9J1 and 1990, is lessor for all haba. ties whch might anse from the acquiso presented in tne toHoeng tab e. Pian assets are stated at tion. use, or disposit on of the ! cased property. fair value and are compnsed pnmaMy of corporate debt and equ:ty secunt.es. a rea! estate fund and govemment securi-

8. Employee Benefits 1:es held edher directly or in commingled funds Psn:lons The Company and its subsid: anes (exclud:ng Natura! Fucus) mainta n a noncontnnutory defined Deneht pens on plan covenng substantia 9y ait emp!oyees. Effect;ve January 1, 1991, the Board of Daectors of the Company approved an amendment that removed the 35 years of cred>ted service hmitahon in the ret!rement benef!t formula and redehned ehgib!c compensaDon used in the formula to be based on an employee's highest average compensaten dunng any five years of credeled serv ce. Effecove December 17.1991 the Bomd of D> rectors of the Company approved an arrond-ment and restatement of the plan. The changes to the pian

. were genera"y to comp ly w:th the Tax Reform Act of 1986 and d d nn! resu!!in a change in pension benci:ts 40

t n a w m of u s a m 1991 1990 ctuanai present value 6f tveneht obhghons Vested $ 314,924 $275.487 Nonvested __ 28,543 23168 343,467 298,575 Effect of projected futuro salary i_ncmanes 103,586 87,333 Projected beneht obhgation for servce rendered to date 447,053 385 908 Plan assets at fair vatue . (459,847). (392.913) Excess of plan assets over projected ' benett co gaton 12,794 7,005 n Unrecoryuzed not loss - 27,628 27EO Poor servce cost not yet recognized in net perodic pension cost 11,672 12,474 Unrecognized not transition asset at January 1.1986, inng recognized over 17 pars _ _ _ , (40,411); (44 084) Prepaid pension asset C 11,683 $ 2,945 Signihcant assumptions used in determining the beneht 1992 and the Company and its subsdaries intend to obhgatons were= adopt this statement January 1,1993. 1991 1!N Dunng 1991, the CPUC approved a rate Settlement Deunt rae._ F% 8.2% Ageement (see Note 7) and the Fort St Vr# Supple-D w c w1 ang1. unn menta! Settlement Agreement (see Note 2). both of which si compenuon Wd ~ ~ ^ ~ m 5.5% aodress the accounhng and regulatory treatment of the costs of postrentement becehts other than pens ons The Postretirement benefits other than pensions rate Settlement Agreement st puiales that the Company in adition to provdng pension benehts-the Company and co9ue to recover such costs as pad untti July 1,1993, as subsdanes provide certain health care and hfe insur-the..ato nevv ratos are anticipated to be etfectwe The For. ance benehts for retired employees A signihcant ponen of St. Vrarn Supptemental Settioment Agreement stipulates the employees becomo elig:ble for these benehts if they that, effective July 1,1993 the Company will be ahowed to reach either early or nonnal retirement age while working for recover the costs of postret rement benehts other than the Company or its subsdanes The cost of provdng health pensions as accrued in accordance with the provisions of care and h!c insurance benehts to actve, rented and dis-SFAS 106, mod hed as foHows. abled employees amounted to $33 4 milkon, $30 4 mdhon . the actuanat catculatton of such babihty wdt include a and $27.3 mdhon in 1991.19T and 1989. respectively The return on msets that rehects monthly contnbutions net cost of provdng tnese benehts for rehred employees (2,375 of beneht payments throughout the yea <. in 1991 and 2,338 in 1990) was $8 0 and $7,5 milhon, re- . the attnbution penod wJi reflect each emp!oyee's en i spectivoV Active and disabled empio' fees (6 407 in 1991 and 6.709 in 1990) beneht costs were $25 4 and $22.9 md_ pected ret rement date rather than the fu0 chg;b6ty date; hon. respectively. The pnor year cost for 1989 of provdng . a forty year levehzed pnncipal and interest amon!/~ these benetts for the 2.284 retired employees and the aton WW be used for the transibon obhgabon; and 6.623 achve and cisabied ernployees was not separable- . the accounung and regulatory treatment for hfe insur-ance benehts will remain on an as paid basis in December 1990 the Financial Accounung Standards Board (FASB) issued SFAS 106 which estabhshes the Pursuant to the Fort St Vrain Supp)omentat Sett!ement accounting and reportng standards for postrebrement Agreement any dJference en expenso result:ng from the benehts other than pens:ons The statement reciuires the nod:hed SFAS 106 approach and the approach required accruah dunng the years that an employee renders servce by SFAS 106 wm be ret:ected as a regulatnry asset in the to tne Company, of the expected cost of provdng pmt-conschdated balance sheet and wi!i be recovered from L retirement benehts to the employee and the employeeb cwomers ever future conods l bereficianos and covered dependents he staWment is j effective for fiscal years beginning after Decemoer 15, 41 1

~ NOTES TO CONSOLIDATED FINANCI AL STATEMENTS contnued . Pubhc Semce Company of Colorada and Subsdanes Based on an evaluation prepared by the Company's actu-officers and key management employees Current!y. Only ary, the postret;rement benefit obhgaton at January 1. cash a wards are permitted under the incentive Pians and 1993, determined ae, prescobed by the CPUC for the are based on performance goals tied directly to the Company, ts estimated to range from $125 rndkon to $145 Company's financial performance The Company is seek-mdkort The 1933 expense for these benef:ta is estimated ing shareholder approval of the Omnibus incent vc Plan at to rango between $14 mdhon and $16 mi! bon The life the 1992 Annuai Shareholders Mouting wh ch wdl permit insurance beneht obhgatort which will rem &n on an as the issuance of stock based awards under the incentive paid basis for the Company. determined in accordance P!ans T he Long term incentive Pian wd! a!!ow for the with SFAS 106, is estimated to be betwecn $50 mdhon and issuana of stock optons and restncted shares rnay be $60 mdian Changes in assumptons such as hea*th care azataed in hou of a porton of tne cash award currently costs, work force demographics or interest rates between provicied by the Annualincentive Pian The stock optons now and January 1.1993 could result n a reesion in the would be issued at the then fa'r market value of the estimated obhgat.on and related ex pense Company's common stock and vest over a three yea

• penod Dunng 1991, ro amounts were paid under the incentive compensation -

Incent:ye P;ans During 1991, the Company established th. %qnual and Long term Incentrve Plans (the incentive Plans) affecting

9. Inccme Tax Expense

- Income tax expense consists of the tonvMng drouanas et osm) 1991 1990 1989

CurierUncorre taxes:

~ ~~'- ' Federal S 40,156 5 40,742 $ 30,174 State 8,240 3,931 4 630 Deferred income taxes (benefits) related to 48,396 44 673 _ 34.804 . _. _ _ _ - _ _. ~. _ _ _ _. _.... Contributions in aid of construct:cn (4,789) (3 300) (11.082) Accelerated depreciation 20,721 23,893 19.064 l Net unbiMed revenues (7,552) (2,780) (14 784) Fort St Vrain plant abandonment 232 327 42.647 Fort St Vrain defuehng and decommissoning 12,531 21.596 8.052 A!temative minimum tax - 2,231 (5,114) (2.180) . - - - _Other book, tax t'rrang d,fferences .._. 37.020 2,748 (335) (4,697) l 26,122 34287 ~ l Amorteaton of investment tax cred.ts_ _ (5,230) _ (4 982) _ 5.267) ( Tota! income taxes S 69,288 5 73 978 $tM 557 n Deferred tax provisions are not recorded on certain bcok-becomes a crecht which may be apphed against future tax timing d;fferences. As of December 31,1991, the regular tax liabihties cumu! awe net amount of such timing differences was I - $348.034.000 The tax e!!ect of this amount is not recorded Dunng June 1989, the Company and its regulated sub-seanes med the r est: mate of the deferred taxes to be currentry as regulatory commisson procedures wd! resu!; in such costs being charged to customers when the timing mcogn@d as a msuu chase customa coninbutons h d fferences reverse and the related taves are paid. a;d of constructioq under the Tax Refomi Act of 1986 The recognton of such deferred tax assets for the penod As a result of the Tax Reform Act of 1986. the Company January 1 1987 through June 30.1989, which had not determines its income tax liabihty to be the g' eater of regu-previousty bt ~.Yovided for, reduced 1989 totalincomo l' lar income tax or AMT. As of December 31.1931, the tax expense and increased not income by apprcximately I Company has an excess cumulatrve AMT habihty over reg- $16 9 mihon For financia! reporting purposes. deferred .ular tax babihty of approximately $5.1 mAon This excess tax assets are netted against daterred tax liabat;es l [ 42

A reconcMation of the statutory U S. income tax rates aad the effect:vo tax rates is as follows-11houmvos of Deevs) 1991 1990 1989 IaIx computed aib S stafutory rEe ~ - on pre-tax accounting income S74,454 34.0 % $74.842 34 0 % $73.235 34.0%. - Increase (decrease)in tax from-D;fterence between tax and book depreciation (451) (02) (1,215) to 5) 1,067 05 A!!owance for fund; used dunng construction (2,767) (1.3) (2.122) (10) (1.226) (0 6) Amortizabon of investment tax credits (5,095) (2.3) (1195) (2 4) (5 178) (2 5) State income taxes. net of federalincome tax benefit 5,431 2.5 2.588 12 3,060 14 Customer contnbutions in aid of construction 1,113 0.5 1.321 06 (7.794) (3 6) Capitat: zed software net of amortization (5,533) - (2.5) (3 678) (1.7) (2.390) (11) - Fort St Vrain p: ant abandonment 214 0.1 548 03 10 7)8 51 Fort St Vrain defuehng and decommissioning 1,441 0.6 3,802 1.7 1,277 06 Net unbmed revenues (735) (0.3) (1.020) (0 5) (2.178) (10) __Other-net 1,216 0.5 _4,1 J7 1.9 (4.024) (1p) Total income taxes $69,288 31.6 % $73 978 33 6 % $60 557 30,9 % On February 11.1992, tne FASB issued Statement of teorn an enterprise's activitios during the curront and pro-Financial Accounting Standards No 109 " Accounting for ceding years The Company is cunently analyzing the pro-income Taxes" (SFAS 109), which supersedes Statement visions of SFAS 109 and the Company beheves of Financia! Accounting Standards No. 96 " Accounting apphcation of the new standard will not have a matenal for income Taxes " This statement is effective for f: scal adverse financia! impact years beginning after December 15.1992. SPAS 109 estabhshes new financial accounting and reporting starF - dards to recognize tax habihties and assets that result -10. SuppMmentary Income Statement Information meuem d 06ima 1991 1990 1989 - Taxes (other than income taxas) Real estate and persona! property ta<es $43,746 - $41.307 $39.567 Social secunty taxes 20,398 19,95! 18.237 City and state use taxes 8,397 8.625 7,540 Misce!!aneous taxes 7,045 5 823 _ G324 S79,586 $75.706 $71.668 -Charged D;rectiy to ncome. Operating expenses _ S74,335 $70 033 $67.430 Other 138-124 129 To pyppprJy, plant and equion ent and vanous otiter accounts 5,113 5.549 4,109 S79,586 $75,700 $71.668 43

NOTIIS TO CONSOLIDATliD 1:1N ANCI AL STN1'liMliNTS coruwa Public Semce Convany et C0!arado and Subsdanes

11. Segments of Business -

Segment informaton for the year ended Docen ber 31,1991 is as follows (Tl msands of DoMars) Electric Gas Other Total OperatLog revenues -.. -. .$1.180 501. $587f03_. ..$ 26.794. _ _ . $ 1,794 904 Operat.ng expenses, excluding dooreaaton and income taxes 847.798 518.157 4,355 1,370.310 Depmciajon _ 83 416 25 831_ 2.481 111,728 Total operat ng emenses' 543,988_. _ _ 6,836 _1 482,038 931214 Operating income' $ 249,P87 $ 43 621 $ 19,958 $ 312,800 Plant construction emend,tures" $ 155357 $ 99.771 $ 5,476 $ 260.704 Identifiable assets. Decenber 31,1991: Property, plant and equipment" $2.006.776 $C37.083 $101.941 $2,745.8cao Matenals and supphes $ 6524? $ 13.059 GG 78.367 Fuel inventory $ 34 238 209 34.447 Gas in underground storage $ 14.803 .14,803 Other corpo[a'e assets. _599,372 $ 3.472,789 Segment informaton for the year ended December 31,1990 is as follows-(nSousands of Dohan,) Elcctric Gas Otner Total ypeatoggevenues $1,145.915 F5617 R . ~ _._. _ _ _ __ _ $ 26.312 $ 1.733 939 Operating expenses. excludng dapreciafon and income tares 806 287 5:Ji415 5.326 1.315.028 Depmciagon 79 ( 9 M9 _ _ 2KS _ __ _ _106 S27 ._Jojal opgatog qqppnsesl _,-_-__,, E ?37 M,084 8 234 _ __1 421,555 Operating income' $ 2hD t. ! 34400 $ 18,078 $ 312.384 Plant construction expenditures * ' $ 150,780 $10bL233 $ 5 208 $ 261221 Identdiable assets. Decemoor 3',1990 ~ ^ Property, plant and equipment" $(939201 5 % 9.108 $1LR852 $2,609.261 Matenals and supp!;es $ in 404 $ 11.486 29 71.919 Fuelinventory-S 33.219 208 - 33.427 Gas in underground storage. $ 13.701 13,701 -.. - - ~.Other corporate assets.. -. 514.764. ' Pibe FCOre tav% " indGNS 3JOC&Gn O' CCNnfMr @ty Of00tvty I 44 -

_-~ -. -. _ - =

Segment informaton for the year ended Decemoer 31,1989 is as fo!!oss.

(T hou c.ar. of Do's;cs) Electric _ Gas Other Total - $1.139,471_. _ _ _. _ _ _ _ _ _.. _ _ _ $ 1,740f>66 Qperalmg [ eve!ws;__._ _ _ __ __ 557728? - $23.913 - Operating expenses, excluding deprecialon andincomo taies 813.128 511.123 829 1,325.080 _ _02,831-78f68 20 849 3 324 1 Deprec$ tion -.To.tal operating expenses' 8_G- _ _S31,9_72_- _ __ 4.1_53 1.42, 7,9_11 891.7 Operating incorro* $ 247,685 5 45,310 $19,700 $ 312,755 . P; ant constructon expend.tures" $ 112.760 $ 54.135 $ 7 533

5. 174 418 4

. Identifiable assets. December 31.1939. Prcporty, plant and equipment" $1.886 444 $488.592 $93.107 $ 2.468.143 Matena!s and supphes - 5 G6.857 $ 10.045 35 76.937 fue: inventory-S 34.251 117 34,368 Gas in underg<ound storage ' $6 092 16.092 458.899 _.Other corpora (e assels $3 064,439 eebe ocme ta<es " incum socem of ccmrm urty propeg ' 12. Operating Leases : The Company and its subsid anes maintain operat;ng leases for equipment and facihties used in the normal course of business The majonty of those operating leases are under aleasing progtam that has initial roncancetable terms of . one year. Other operating leases have various terms and may be renewed or replaced Rental evpense for 1991, 1990 and 1989 was $21.7 milhon. $18 4 mSion and $11.0 milhon, respectivelyM December 31,1991. tuture min: mum rental payments appucable to noncanceiable operating leases were as follows:- 2M MM94 yeam eeg December 31 1CO2 5 Pl?2D 1993 23 (D) 1504. 17 837 H)35 i1 891 .19.m 4 323 --.... b$ NS ? ? ? Y! W $$ .:. -.:_~- ww mn.mumeme payr.. sm8m 45

i NOTils TO CONSOLIDATliD lilN ANCI AL STATliMIINTS <wnned Pubhc Service Co:muny of C0101000 and Sutwd ns 4

13. Cuirterly Financial Data (Unaudited)

The foliomng summanzed quarterly infomiabon for 1991 and 1990 is unaud:tod but includes an adjustments (con-1 sisting ordy of nornul recurnng accruals) which the Com-pany cons:ocrs necessary for a fair presentabon of the resu!!s for the perods information for any one quarterly panod is not recessan!y indcative of the results wtuch may be expected for a twelve-month penod due to sea-sen al and other f actors Ge$ mcm M mam 0M 1991 Three Months Ended March 31 June 30 September 30 December 31 Operabng revenues $550 843 $330.723 $ 379?93 $473.645 Operating income $ 69.447 $ 35 763 $ 58.114 $ 80254 Net income $ 45.093 $ 12212 $ 34,340 $ 58,048 Eamings avadable for common su 5 42.017 $ 9.136 $ 31282 $ 55.024 -Weighted average common shares outstanding 54 746 552t37 55.721 56 152 Earnings per weighted average common share $0 77 $016 $0 56 $0 99 (Thoasanm. escent w shwe aya} 1990 Three Months Ended March 31 June 30 September 30 December 31 Operabng revenues ' $513,322 $418fe9 $ 364,360 - $437 SG8 Operat:ng income. $ 66.197 $ 52.622 $ 57.114 $ 62,473 Net income S 42289 $ 30 *88 $ 34 259 -$ 39.408 Earnings availabk. for common stock " $ 39,162 $ 27.061 $ 31,149 $ 3d332 Weighted average common shams outstard;ng 53,072 53.440 53 802 - 54,188 Earnings per weightea avorage common share ' $0 74 $0 51 so 58 $0 67 " F> tte year 1M omratng rnen en and gas pumhawd hr reuse ap;nse ny tne 15rm omr% ed MM 31 Jurr X; and Switmter 30 u bJe bxn restan110 rWtt a rewsny)in tre tmatment of gas iefa.is remwJ h ur : ot w r These remens ha,1 r.a ", :t on irmre

• Due to rcond-ng qua"ery tg;ec ac not add I? anoud Wa' 46-

SH ARIIHOLDliR INIOlGIK1'lON 1 l'ubhc Sorvce Company of Cowrdda and Suostaanes Dividends Annual Meeting Dividends on comrmo stock, as declarco by the Board of Tno ar r ut n wing of shtoholders wm be told at 200 p m. Diroctors, are generally payable on the first day of Fet> on May 5.1 LE, at the Radcon Hotel Grand Baitrco n, Lobby ruary. May, August and November of each year The com Lad 1550 Court Face DoneCdorado pany pays regular quarterly d vidends on its.; referred stock Shareholders'inquides snd Assistance on the fit 51 of March June. September, and December of each year = Rharehdonts desinng assis%nce v. W or stolen stock certifcates or d,vidend checks. na'T e. 1 ges. address Dvidends pad on stock held in ' street name" are pad to changes stock transfers informat:on on u A DRP, or other the holder of record generaily a brokerage fim or bank matbrs should ct! the Sharuhol der Servnes Department nominee Th6 oividcnds af e then reo,stnbuted to benefied h foHomng tdephone numbers ate ava!Iable danng buse owners by the brokerage tem of bank in accordance m!h ness houra 7 30 a m to 3 00 o m WST) r the beneficial owners' instructions Denver Metro Area (303)2042fie Shareholders of record receive dvdends airectly Irom tne ToWree M rnber (fKXU 635 0M6 ~ company unless such sha<choider has elected to reavesi divdends inrouC" the company's Dvdend Reinvestnvnt Wntte .mmunca >on shoubd be addressed to-P:an (DRP)or has authorued d> rect depos:t of d vdends to Pubhc Semce Company of Colorado a financial e titution. s Shareholder Services Dividend Reinvestment Plan P O Box 840, Suce 300 Denver.Coloraac 802010840 The company's DRP provides an opportun.ty for no;ders of the company's common stock to acquire addmonal shares of such stock in a convenient and economca! manaer Partcipants in the Plan may reinvest cash deviaends on aH or a po: ton of ine>r snares of common stock and/or make optiona! cash payments. Stock Trading The company's common stock ($5 par value) is I,sted for trading on Ine New York: Midwest and Pacif c Stock Exchanges under the teker symbol"PSR". Quotes may be obtained in aaily newspapers where the common stock is listed as "PSvCor in tne New Yo<k Stock Exchange ist;ng table. Three senes of cumulative preferred stock are actively . traded 41/4 -o ($ 100 par value)on the Amercan Stock Exchange; 7 15% ($100 par value) on the New York Stock Exchanarc and 8.40% ($25 par value) on the New York Stock Exchange and Boston Stock Exchange Alt other senes are not actrsely traded and ma ket pnces a'e not pubbshed Transfer Agent The company is the soie transfer agent and iegistrar for its common and preferred stock 47 l

i BOARDOF DJRECTORS AND liXECUTIVE OFFICERS ~ Soard of Directors Executive Committee James H. Rann ger Ph@p L Noll . D, D Hock .DDM Vge Pn w ient Maumam Denver CO'1%N Do's M Druy.- Rxes em negaatons Age 52 (33) - Cna1rnan of he Rwd Cede 8 Maanley 3gg g (33) 4 Lawtonce F, Petont i Prem and Wm F Ncuan. Jr Ph&p D. Shaffer Whent MWoptWan J Chet E xecut ve Oncer ' R@en G hW@ Vi2e hemtent ^'je M 96) - Age M Audit Comm!ttee 0 " C

• W'C'O M * ^

George A. Senkus - Colks P. Chandler, Jr. J M1chael Pow' h*! MN'D" Denve CO (1985) - Thomas T Faey Mantyn E. Taylor Age SS P4 Presicent Gaya L Gru Vce newdent 1 Chander & Asama;es, Inc Thonm E Rod 0guez Admnotwve Somm Pdor West 9 Nyth MePouokan A00-Pension investment A 0C091 9 Doris M. Drury, PhD Committee Ralph Sargent ill Denver. CO (1975) Presidents D^@T - W T Siebmns . Atos CMoge.

• Il3I Subsidiary Companics C@sP ahJ E<ecutaa DJector..

MBA pngam A Bmry HescNeid Other Officers D. O Hock PmrAent Centar for Dasiness payney E Sder BrM Center Cow &un W. Wayne Brown l e 0 W euon inc al Ecotanic Forecasnt'a inc Compensation Committee Awsta,t Secrewy G<een and Ciear Lakes Ccenpany. Ago05 ~ Dom M Drwy and Corwe P S Com@ Cod N rdN P Thorras T. Fare Gcog 2 0 Mmey Age 41 (19; P S B tomtmenR inc Putt:lo CO(Gh _ p Nch&on. Jr. Atwr6 at Law W I *M . Anthony J, DeNovolhs Ap % 99) Petewn & Fonda rt G.Txaon ARSte!Socmte and AJo w A. E. Middents - Age 43 Q1) f ucJ Hescues D"vehvnunt Co ProfessorW Corp Executive Officers George P. Green 4[ 1 Age 57 D.D. Hock Armant 5x wtag 9 Gayle L Creer Chaeman of the Dwd Age St (n; PhAp D Shaffer Denver CO { 1996; - Pre @nt and Vice P etdent, Ch,et Execubve 06cet Carol J. Peterson Arrencan Te.evson Age n6 991 gmgg

nd Power Company 9gg.

Age 46 f 1h, ed Communcanons ClaA B. Ewaid Corraaton senu V,ce Premaent J. Anthony Terrell Thomas E. Moore Age 50 Custones - Anw secretwy av) Naura: Fueu Corpoetion A. Barry Hirschfeld - A90 57 '32I Assciant Treawer A W 30 W t Age.t8 D). Other Principal Denver, CO ( 19fG) Richard C. Kopy ~ Prestent A B. HrscMeld Senior Vce Pmsoern Stephen H. Whitcomb Subsidiary Onicers Press loc = Fnance and /wimnutrM:00 A m ntCet:chry Rchard E. Draun Age 49' , Chief Fmnera! Offcer A e 41(10 becutrve V cc herdere 9 and Chee' Operatng OScer ' George B. McKinley No 4S W-) Richard L. Hun a Evanstm WY 097th patrick W. McCarter Aswtant Tr e F#i Resources Demopment Co w Prescent Senor Vse President AWDW Ace 62 (h First McAdey Corp Electoc OWahoDS Larry D. Hati 9 Age 64 Age 64 (30) mt Dea 6rm C Will F. Ncholson, Jr. James R. McCotter ^9" M M Derwet, CO ( 1984 sen,or Vce Pres.acot W@am E. Lewis Ado 49 94 hstern Gas Supt 'y Company Chaemen of the Baa'd Genera! Counse and - and Pinident Aman: Tr asurer e . Corporme Secretai Age 42 90) b'98' Coloraco Natonal SarAshares, Inc.. Age 43 (16) f

Marmgus, Kesy. Stansteld & O Donnen

-. Age 62

n. E. Mddents Geographic Divisions Denver Colorado Semor Vee Psced J. Michael Powers -

Gas Operations Joseph Aumstine Auditors - Cheyenne WY (1978) Age 53 (31) r O* "' p 1)Mt"DPU* P A'tnur Ance<sen & Co President Pown Snck and Tile Age 45 717 17tn S? reel SuV 19L0 and Powers Products Co ~ h C. Crawforcl U Bill L Crotey D* t [h wwn Transfer Agents and Registrars an Thomas E. Rodnguez - Age 59 g). Ape 5: (19) for a!Iissues of Capital 8tock - Denver CO ( 198u E Presdent Thomas E Padogwz - Date V. Fetchenhior o P Du. Principal Transfer Agent, /& Assoc w es.P C h NWol Divtfend Paying Agent, A e 4W= Drvdend Reinvestment Plan Agg 47 ; Wonn TenoW 9 Agent, Registrar and Semces Michael J. Geile Rodney E. Shfer. Age 58 (M) H m e ogn; Putsc Servce Company . Van CO ( G%) CICUin'dd0 - pyng - Ross C. King, Jr. AM 4WD '. - Denses Cointado Sder, Sinth & Frarmon. VG P9sdWt W. Bruce Hansford Ages / hopohtan Customer Franc gny

. ) Deno!6 s wars of seMce &

OperabcN g g gy Ag' e LO [23'1 W. Thomas Stephens ' Air 50(25) thW"9" U"C"*D"' INI - Denver, CO 00am Kenneth L Headrick

Chaeman Prestaent.and

. William J. Martin Nortnem Agm a d Decerrber 31,1991 Cnef DecuWe ONor Y" N*"I A 0 EG (3 tf 9 Ma e Corporaton E g emg. Douglas C. Lockhart Age 60 (34 F C* Robert G. Tomton 9e 4 Oh eeiet CO 0984 (ar j Laughlin,Jr' Jose h O. Marquez i P s cintan, Inc. M3VCG CM* %WS h-3 ['>" n av sma s-~ Age S I Q1) ( )YeareOcted to the . 6Cyd of D: rectors. A99s OS O DOComber 31,1991 f '48

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