ML20126M528
| ML20126M528 | |
| Person / Time | |
|---|---|
| Site: | Trojan File:Portland General Electric icon.png |
| Issue date: | 12/31/1991 |
| From: | PORTLAND GENERAL ELECTRIC CO. |
| To: | |
| Shared Package | |
| ML20126M198 | List: |
| References | |
| NUDOCS 9301110027 | |
| Download: ML20126M528 (62) | |
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+ PacifCurp's 1W1 net EEEC7R/CITll.IIT mwmc rose unen per. OPER.ty/053 (ent to $307 milhon.
Ewy n!n tuderderde
+ Eamian per wmmon shxe pmed 501, or one khlitm a'r an impanantsouv penent, m $1 A qfmnar andraniggwd
+ Comnion JnidenJs for PaqsCurp. Ratntlemt inac.ned four penent. ,,jgy qryjjj7,jpg,7 plant andtrummisiius righ:s con!*1?ukdto Ibtitfains.
Iinmanhauu;b.itb PaiijiCorp's swus a< aIw-costprarprw!wrdat mala
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detdim;d:jivrwein de a,mj<nthe chrdrwit enry marketpla
+ Paahp's th e4 car toul JilXIXGdREFifRCE imeurnent rcturn sunds at 1)EllLOPJIEXT 14a penent
+ Ihe OP 5tMli Mock prieg 31NCO's #a%'a/ f aithats appreunion and daidends avdprwlasaitw!umn combined to teturn 15.3 j,,j,g,rrisavth is 1091 pen ent.
vid deturrh.uqf$5Nmi!! ion
+ .l he .uP Llettrx q/ofdanGufowaptwpnia l'abn Indes retamed 14 6 penent m er the fneacar listnallyleprpsn VCTi"d- operia.n!la: erin deyara:d prriandfortheduranon j qf I90tillhxea saktannal _
nga.+ce efet on NERCO'i I92resu!c
+ Pauhp's retum on TEl.EC0ll.1/fNIC.lT/0XS as erace common espar)
! mat h9th iriditb m thC pan tuo sean and at lent 6 Paat Tdemontas to three n(the last th e. grw as thetdavmmnicanons
+ Pacihy's Ym retum aimiayimw on buihlingi:s s u 14.3 percent lwaltd<phantof<rannns.
+ 1n l% the 83lomon ly Anoderlmaltdephonerumpany Electnc l~tihneund MP r<u acrim/in 199/ ar Pad /ic 5m retum8 u ere 1 U per- Tder:m ach@ wks npimitin cent and IR3 pen.ent y,,jgy far in de respettis e!).
Uppr.1/id nt. F \ t i f I t' o R P 2
l lb 0;ir Sharvin!ders, he ) car lWl uas aq c\tc!lent } car hy mint mtJ- $s ut nun e into IW2, a major emphasis will he impros ing surei We auluired additional lou unt generating awcts the credit quah!) of our nonclectric businewt% resiewing and other carning anen in clectric oper,itiom: continued our awen with a cieu to disptsing of those which do not u,rnohJating our conununication company im estment into hae a reasonable espeumion of meeting our caninus b(al c\thange alld tCllu}al operJtioth; and, JI hl5N(D, ohjectisC% and continiling on our count o[Improsing the made u ha! we stlN think to bC a llnC long term natual gas competi!h e po'.ition o[our electric utilit) opCT itions . . imestment. Iloucscr. for the short term. the imestment \\'e me aho presendy fme tuning our occull long-tenn h rahing unforeseen tha!!CnRet comprCbCrbhC stIategic objecthek I'mm the imestoIs' Since the culy IW1 aaluisition, nauul gas prices hac point of Lieu, the meuH stategy has not chan:cd from ; [J!len and remJincd low. This h.h pur carnine and cash that already communicated to you. In fact I beliese tha j Cou pressure on N ER(D and is impacting the aedit quah- umtinuity of stategic direction continues to dhongui.h t) of the compim and other of our nonclectric businesses PacitiCorp from othen in our industn. As a result. <ioring the tint quaner of IW2 ue espect to l record a subsuntul after us uIitedoun of NERC(Ts oil and R.h propcmes that udl unge hetuctn 5150 milhon .. and 5l75 mi! hon. The comp.!ny is aho Lo!hidCring Cail) ~, adoption of a number of pending accounting thanges required of Jll companics awocuted ulth recent pro-nouncemcnts of the IiHJncul $nounting btJhdards
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liond. These thanges relre to renrce health care emn N. e and other mJtten more fulh described in the actompany .. .. g ,f ing financiJI stJtemenn. WC Mih aho resieu the carning -#" ~
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Uluc of our other assen to enwre thM th"tr restJted car- , y 4 ., ning s alue is approp .r. h[ht of curTent c(onoinic fx- "F' A M GLEASON 3g ton and are conscn J!hch s!ated. Prefadent he tulance of my letter uiu thetn on helping you under- d and chief hecutive offner sund our nujor PHI nhiestmenn our plam for F"2, and the cominued underhine strength of PaatiCorp.
\\ c aho continue to reline our organizational soucmre so thn it can most etfecthcly and efficiently adJress the 4
Financialhichliehts for 19here: cuential usk of economicalk operating the company and
+ NCsenuCs increasing 49. .
meenn; our customer needs h) uking full adunuge of exceeding 54 hiWon for the fint time: the resources a our u>mnund - he the3 our utented 9 Net income mCreasmg to NO7 million, a M gain; emplo)ce group, our lou-tml pow er p! ann, our economi-e EarninD as Ji!ahle for common sn(k increasing cal coal m nes. our hichly technological telephone opeu-to iMl midion, up bl; Ii'Uk UIIhC hICdJIh Uf UUII"w CIIUU'@i'hiUU liUC dCLC"'
$ Ohidends pJid pCr sharC inGC,hini; to ib47. Up 49; and the electric mJuagemen! group hae hcc0 blended
+ Hook ulue increasing m 51140 per shue, aho up Uh k to ehminne iedundJncy. reduce unt, and p!xe
+ And, ahhou"h ennines per sharc increased only to 51.M. rnanatement cbner to the decision making prmen Thh ue cmered the caminas requiremenn on the 119 mih a!,o reemphni/c3 thx ne sieu ounches primnik n an l ion increase in Meude shMes ouhunding thM Mere Cledrit utilii), not Js a utuhmCute! ln thM reCHd, we reglHred to prmide needed crou th capiuL espect to see electric utihty opersioih (ontintie to holJ l their s!gnititanct .h IAlti( $orp\ IMgest hihinew se[Went.
I
? i R V
We already opente one of the strongest utility systems Colleahely, these major consactions add to our abihty to in the West and I beliese that the actions undertaken in meet our load growth into the latter part of the decade 19W and under way in lW2 will add to that strength. and ensure asailability of continued low-cost coal and We bas e continued to meet our price commitments to our geneuting plant capacia. We expect to add to our ability customers set forth in the approval of the PacifiCorp/l'uh to meet our future load grow th through the Demand Side Power merger with our customen benefiting from annual. Resource progum described in the body of the report. i/ed price reductions touhn; $206 million. We are now Pacific Telecom experienced a year of extraordinary delkering electrical energy to our customen throughout change in lW1 - strengthening an already strong core our system at prices that are approximately the same as of business activities. those charged in the early twas in nominal terms, and, in ikginning with the late 1990 purchase of a hul Econsin indation aJjusted tenm equal to those of the mid 1970s. telephone exchange company with R500 access lines, Ilowes er, u e must continuously improve the u ay w e oper- Pacific Telecom is reemphasizing and building on its her-ate the electric business. Even though we already run four itage as a kul telephone company. This past summer we of the nation's twehe lowest cost coal fired generatin purchased a small kical telephone company in hiinnesta, plana, we beliese that the electric business will become adding another sute to our senice territory and increasing more competitive and that we must strive to be among the our presence in the l'pper Niidwest where other acquisi-km-cost producers if w e are to pnwper. tion candidates are available. Consistent with thk ueu, I would like to bring you up- Pacific Telecom continues m detekip the business oppor-to-date on a number of specine items in the electric tunities accompanying the 1.9 million potential customers business that builJ significant long-term value: (or POPS) that make up out franchised cellular telephone
+ The purchase of Cholla l' nit 4 from Arizona Public markets. This business should continue to increase its Senice w as completed on July 17, lW1 - in time for us contribution to PTfs bottom line in the near term.
to sell power to that utility and help meet their summer The long disunce market in .Ca3ka underwent another peak denund. The purchase emered a coa!-fired 350- change in 1991 with the introduction ofintrastate market megaw att uni: and related common facilities for approxi- competition. % date, Alascom has retained a very strong mately $630 per kilowatt of pros en, coal-fired capacitv. 80 percent of tool calling volume.
+ We receised bankruptcy court approval in Februan- Alaska's intersute long disunce market aho saw a new IW2 of a proposed tunsaction m: development in 1991. In the fall ue reached agreement
- Buy 243 megawatt 3 of plant capacity and related fuel with AT&T to sell Alaseom's intersute long disunce supply from the bankrupt Coloudo-l'ce Electric business for $255 million and to sell two-thirds of our hsociation's share of the Cuig and Hayden coal. capacity on the spur of the Noah Pacific fiber optic cable Ored plana: connecting Alaska with Gregon for $75 million.
- Sell 176 megawan3 of power under a long-term power Assuming the tonsaction as contemplated receives neces-contuct m Public Senice Company of Cok>udo: and, san approvals, the $255 million and the $75 million will be
- Enter a 50-megawan seasonal power exchange agree. paid to PTl over th e years pros iding transition income and ment with Tri-Sute Generation and Transmission cash for debt reduction and expansion of local exchange (loopeuth e. properties. The transaction will also resolve long standing marketing and regulatory issues in Alaska.
+ We reacquired subsuntully all of the ounersh.ip nghts to the W3odak plant uhich will ensure its long term, I l'l s Id its cellular operations in Santiago, Chile, result-lou costpowerasailability. ing in an after us gain of $17 million again paniding cash for expanding hul telephone operations. Although the P \ t ! $ I h R P 4
We already operate one of the strongest utility systems- Collectively [these major transactions add to our ability to - in the West and I believe that the actions undertaken in meet our krad growth into the latter pu of the decade - 1991 and under way in IW2 will add to that strength. and ensure availability of continueJ low-cost coal and' We have continued to meet our price commitments to ourgenerating plant capacirg We expect to add to our ability customers set fonh in the approval of the PacifiCorp/l'tah . to meet our future load growth thmugh the Demand Side - Power merger with our customen benefiting from annual. Resource pmgram described in the body of the report.
~
ized price reductions totaling $206 million. We are now Pacific Telecom experienced a year of extraordinary delivering electrical energy to our customers throughout change in 1991 - strengthening an already strong core our system at prices that are approximately the same as of business activities. those charged in the early 1980s in nominal terms, and, in Beginning with tne late 1990 purchase of a local Wisconsin inflation-adjusted terms, equal to those of the mid-1970s. telepho'ne exchange company 'with 64,500 access lines, ilowever, w e must continuously improve the war we oper- . Pacific Telecom is reemphasizing and building on its her ate the electric business. Even though we already run four itage as a kcal telephone company This past summer we : of the nation's twelve lowest-cost coal-fired generating purchased a small local telephone company' in .\linnesota; plants, we believe that the electric business will become adding another state to our senice territory and increasing more competitive and that we must suive to be among the our presence in the Upper .\lidwest where other acquisi-low-cost producers if we are to prosper- tion candidates are available. Consistent with this view. I would like to bring you up- Pacific Telecom continues to develop th business opport to-date on a number of specific items in the electric tunities accompanying the 1.9 million potential customers business that build significant longaerm value: (or POPS) that make up our franchised cellular telephone
+ The purchase of Cholla Unit 4 fmm Arizona Public markets. This business should contmue to mcrease ns Senice was completed on July 17,1991 -in time for us contribution to IrlTs bottom line in the near term.
to sell power to that utility and help meet their summer he long distance market in Alaska undentent another . peak demand. The pun:hase covered a coal-fired 350- change in 1991 with the im,oduction of intrastate market ' megawatt unit and related common facilities for approxi- competition. 'Ib date. Alascom has retained a very strong . mately $630 per kilowatt of pmven, coal-fired capacity. 80 percentof totalcalling volume.
+ We received bankruptcy court approval in February Alaska's interstate long distance market also saw a new 1992 of a proposed transaction to: development in 1991. In the fall, we reached agreement
+ Buy 243 megawatts of plant capacity and related fuel - with AT&T to sell Alascom's interstate long distan supply fmm the bankrupt Colorado-Ute Electric business for $255 million and m sell two-thirds of our Association's share of the Craig and llayden coal, capacity on the spur of the Nonh Pacific fiber optic cable e nnecting Alaska with Gregon for $75 millior..
fred plants;
- Sell 176 megawatts of gmer under a long-temi power Assuming the transaction as contemplated receives neces-sary appmvals, the $255 million and the $75 million will be
- contract m Public Senice Company of Colorado; and,
+ Enter a 50-megawatt seasonal pmer exchange agree. paid to PTl over five years providing transition income and ment with Tri-State Generation and Transmission cash for debt reduction and expansion of local exchange pr peniescThe transaction will also resolve lo_ng-standing Coopemtive
. . marketing and regulatory issues in' Alaska.
+ We reacquired substannally all of the ownersh.ip nghts Prl sold its cellular operations in Santiago, Chile, result-to the Wyodak plant which will ensure its long-term, ing in an after-tax gain of $17 million again providing cash low-costpower availabilin; for expanding local telephone operations. Although the l
r ec i r :-e o i, ,
l' l i sale of our international unit, TRT/FTC, fell thn; ugh, w e w w=--+ * -
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still expeu to achieve s alue for this noncore telecommu- hh 17 : M_ N?M f
-l NF #9"i#'dIIO* Afi20IJ MicJtions husinew.
n'n % Publit Service Companyin l _* \ p t d Un thC stICntth of strong coal earnings and the awet i [ July 199f, Uniti of the
'q Y coal fired Cholla power Sales disedwed later in this report, N[RC() achieged .
bnancial resu!!iin lW) similar to those of the prior year. 'I .s i. ~ '; Pl ant is a low cost, lower. Honeser. Ph2 kioks to be a ditlicult year for the mining
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- nsk alrunanno 6unding new, large.sch plants.
I and resource deselopment company because of coh.inu- . ' 1- '
%, ' Pictured are Mary Romans, ing lou prices for natural gas and other commodities. s p,,cjnco,p., c3ou, pf,n, site engineer and APS plant ds a result of these di0iculties. NERCO expcas to report -
f I e atrolopuafor, Alchard j a net loss for the 6nt quarter of Fh2 and, absent general - Fraley,
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- impnwcment in natural ca3 prices, will contmue to expen-
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l ence deprewed resula for the balance of the Scar. boking bevond IW1 it's important m remind ounches y
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j ,7 Nerco Coal i uhy NERCO chose to imest in natural gas, llere,in spite ; , NfitC0 improved operat-of current low prices our underlying premisc iemams .
'a9 '#'ci'a(Y. r'duced clear and true - natur:d gas should experience increas- .!5 ;
'*"' *"d #"" 8^" *"
- in; demand and price mer time as it is a clean, socially- '
[ aggressive marketing strat. l acceptable tuel priced Icw per IITl' than o.d. egy that resulted o.n coal production of 28 million Nather than simph waiting for price improsement uhich
'oa5ia N Mo5t of ue helieve Mill i.ome. NERC() is aggrewisely manag-
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in;in business to improve its credit quality and reduce ~
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4 other risks. , .'
+ through stable,long term l ds alua)s, I appreciate the commitment and dedication 90- contracts.
j Paci6 Corp's talented employees has e shown toward build-ing a strong and competithe company. This commitment ui!! pa) oti, as toecther ut are building a company that will be a leader in each of our core business industries. . Fiber Optic Cable control center To our imeston. rm crateful for the ecntidence and trust I 90 h . i . . you'se placed in Pacl0 Corp oser the Sean. We'll work . . . Oowntown Portlandis the f
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hard to continue camine that con 0dence and trust as we of the 5,200.mde North strh e to hudd salue for the long term Pacific fiber optic cable-
' the first direct liber optic link between the U.S. and
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- j Japan. At the Gateway s Operations Center, the Lll. (;!n]Mt cable, with its ability to handle 85,000 simaltane-
?!U!i!c!llu!N![1lfilbWR!!:t fllN.Yr ous messages, connects with fiber optic cables belonging to majorlong distance carners.
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[$ ' t ll-{ q . , , a r i a? , Huntington Power Plant Central Utah's Huntington neighbonng company-owned tional water-handling power plant uses clean-burning. farm uses water from the plant methods, the plant has saved low sulfur coal from a nearby to orrugate alfalfa and other $42 mdhon since 1974 when company-ownedmine The crops. Compared to conven- srngation began. s , a -
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f .. The 5630-per kikmatt purchase price of the ;50- 3 mecauatt facility was one-third that of an equhalent, '
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g newly-constructed unit. In addition, the transaction - indudes far-rexhing ptmer plannine and operating a! agreemenn heneficial to both companies. E In a second transaction, PacifiCorp received bank- N,'. t
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ruptc) court approval to hily 2-I3 metauatti of coal- -[ . , 1, g'. p + .% T fired pouer plants from the hankrupt Colorado-l'te . # - 1 %' E1 Heat Purnp Marketing .\ '
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1 E.kctne Assocu. .non. I,he Colorado-l'te transaction, c. Y-Io help Paafscorp's electric customers benef:t from h>gh like the Arizona purchase, allous Pac.iCorp it to buy gQf 2 N,, _ ' ,
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standards in heat pump prosen, low-cost generating resources and secure installatoon and semice. the ( l f <j' ' ' f H-Pro Network was estab- j:',, ., o[huildkng neu [dcklltiC% hshed wrth gua'ifying local [< d" (laudsa 5tembroner, (RIGHT) Inacasinnhe opeuung eMaency of the compa-M h?h '.
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Paoftc Power commeraal .: .. d sales representative andlohn the resource p}an. In 199}, sescral of PackplCorp's _) { ? . ;. ; Periins. an s-ero contract ' wal fired plants set all-time production records 1 .. .r f\' wsth k ennedy Fuel. were 1
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members of a team responss- abm[ uIth reducing production costt ; ble for system design and
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instalhng 150 heat pumps at & '1 . this $8.5 mdhon retirement increase operating Oc\ihility, control of tuo Wyoming l ., . complex in Meaford. Oregon. gjace oal mines sersing W)oming power plants 13 N ! I - When the heat pumps are
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Ob?+u . ; . L ' combmed wrth the new build- - uL rng's other energy eff aency The mines furnish coal to pbnts near Rock Springs EAl' )' LI measures, the customer g g ggl g. N \ Y. y.,[ . .} m expects to save $t3.000 in
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J ' annual energy costs and s,e ou ns and operates most of the mines supplying fuci y .. g .yg;&m x 3 . e ; .q F . ' . c - - + payback on investmentin y {g y ' "* undersix years. In f 991,the _ . t the same time the company is mereasm; operat- ., y ' 6 M s 29 H-Pro contractors in tse , y Meaford area insta!Ied f.300 jnz g((iCiencV and dC\ihilip af itS coal-firCd and - heat pumps -provid.ng a val- .. ved sen,ce for Pacticorp s h)droelectric pbnts, it is also actively esploring the customa potenti.il of new pouer generation options, including . rencuable resources. As an cumple, PacifiCorp will invest sl milhon in , a solar demonstration project in the California desert near Ibrstou. The company is already part ow ner of a y'
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northern California uindfarm and operator of a 25- . metau art ecothemul plant in southw estern l'tah. . 3* ?
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. - _ypy .~. acificorp h aho firmh committed to developing d>wgr*!"d::;$h 4 another important resource option - demand-side vi:
g) a M nf l'd g,,y *@f sp - ~
, e, ji mq*g k . .- mJnagement. Jho known as conservJtion of energy i Wl'N. t /
& 4j j t cQicjency, i~ a Reducing energy consumption through proven Y
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'Ay= q bd 3 ri t 4 i mestments in enerp eniciency t,rees custing power
.g3 energy rfficiency et th Broadway 7 9g, (979979 gg;7;9 (gz9g P P "
h% The company'sintegrated dkh C,4 - y- ,. i much as 950 million in demand-side resources (con- resource planindudes 5erValion)o\er the neXC fi\e years. gyefficsency Byexceeding
, , existmg buildmg energy codes, c.vners of downtown Y.h n l Portland's new 1000
;y Broadway B*sildmg(LEfT) expect to save more than 30 h'
percentin their annualelec-
} tnc usage.
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% Pacificalp > up frootinvest-Y -
a mentin high efficiency win.
? dows, insulation,lightmg.
heatmg andcoohng systems andcontrols willbelargely tepaidby the buildmg's owners over 15 years through an
- energy serwce charge
- the budding receiveda nationalenergy efficiency award forbuild-ing management from Energy User's News.
Installation of a floor.by. floor heating andcooling system (INSET), coupled with state of the-art control technology, enables the managementof the 1000 Broadway Building to remotely controltempera-turesinindividualzones andprcgramlighting needs foreach floor-i i 9 e
ACIFICORP C0]IBINES SERVICE WITH RESPONS! BILI 1T
. ) TOBRINGPOWER TO HlLUED CUST03IERS t
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. \nuth;r rt rrumn. l'aalif rap al n otto irlad o,toma o o atvh of ., i . o r < n. uan - y,;pg gn,,y, ,, ,ff,y,ng7, ,, po,,,5;, g,,,, l aprL i na q1 elib le nn emsting power resources for other uses.
'The inergy fonAnswer" and other efficen-l',at onn., dp, nd rai a fin ir nilt and u nnomn ali\ hajaoi q: po. o r rappis ir aava r ,
cy programs help customers bke the 1000
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teh Niton of mun sp<d tiain kiv.. . iallia . ,vianon. alla tin. , a , torn a to,aur and comfort and save money. I k1dnWlnnk ptwlHunon. INelio l.. a hode ah lum paa a marioon, suo o n. andIhr a sosl o/ dthlandrykt/V l I [7.y b F y.s % Q-g. i._._. pe w
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l ._._._ _._. i p .. l h' I c.4 l l A t an average cost of s 11 per ton. the m,n. Like most of paaf: Corp s other coar. fired sng operations owned by the utdity are plants, the Hunter plant m central Utah among the nation's most efftoent and is close to its low. sulfur coal supplier _ Irgestproducers of dean burning, low-sul. the company-owned and operated far coal Owniang the monmg operations pro- Cottonwood mme. l vides a utshty hke PaofsCorp greater operat- beasonalpower dispatching assures the Hydroelectnc power is paafiCorp s lowest. ing fies:bthty and control over fuel costs, the most efficient use of power plants loke cost powerin terms of fuel costs. In opera-largest ccst in produang and deltvenng Hunter. In the wanter, energy from Hunter tion smce 1931, the company's largest power. With the recer:t acquisitions of the as occasionally dispatched to the Paafic hydroelectnc plant is the Merwin project on Glenrock and Bridger mmes m Wyommg and tubrthwest as the company's northern cus- , the Centraha mme m Washegton PacfrCorp tomers experience an annualpeak demand l Merwin received a national commendation ncw controls most of the fuel sucolymg the during the heating season. In the summer, company. managed coal f; rod power pl ants. Hunter's output is used to meet air condi-troning and orngation loads of Utah and the desert Southwest. l t n _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ . ~ _ _ . _ _ . _ _ _ _ . _ _ . _ -
Ihree large customer groups (RIGHT) repre-sent most of the company's retail electric sales. In t991 tndustrialsales comprised 30 NY " percent of the company's totalelectnc rev, enues, commerdal23 percent and residential 29 percent. A L (. i i i i i I.
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moving et long distances from the source to Paaf; Corp's two system control centers. 5 customers as yet another. PaaftCorp :seploys Employees at the new Portland, Oregon U-f l the natnon's largest geographical transmos. center rely on human intelligence. market l sion and distnbution system to accomplish savvy and computer capaaty to monimize
~'~~~N the task To keep marketpaths open and poser costs. With the moment to-moment, rehable *ontmualinvestments are made un day to-day economic dispatch deosions new knes and upgrades to existmg faahties made at this and a uster facisty m Salt lake City. PacitCorp puts its generation and Known fories Fruntof the uanth club and transmission resources to optimum use. cther food specialties. Harry & David's (TOP) added another assembly line for chocolate prooucts at its Medford, Oregon, pl ant.
Home to the Utahian of the National Basketball Association. Salt Lake City's new 20.000 seat Delta Center (CENTER) also hosts major cultural ev ents and is representative of a large commercial electnc customer. Kras don t notice the sun >s heat in Se,dy. Utah (80TTOML but air cond,t;onsng is the reason residential summer electncry use increases m Pacf> Corp's Utah service area. I1
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Environmental Stewardship .-Y
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Remains A Kn Objective
. ameewammsensism
}n F/>l PacifiCorp continued its long-sunding com- k3 g a mitment to the environment. Our comprehenske .-
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envininmental goal seeks new uays to expand pn>- g,,,,,,,,,. gems bene 6 ting the environment, while balancing the
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.. ,% -., ,,,,gs ,y include accelerated c6iciency protums and the acqui-
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* *4 : : , udenas man,menom sition of additional reneu able pou er sources. .'L ?- memes amperasuws-IIaci6 Corp, of necessity. uill continue to rely heasily on coal to geneute electricity. As such. the compan) : .
is aware of the environmenal issues a0'ecting coal, . .y- . 9 induding carbon dim ide emissions iC0g and public ,
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concerns about povable tlobal warming. As a result. ,. descloping a C(h off3ettint program it one fotus of ...
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- \ttention to Costs lloost Wholesale Po:cer . .
Sales- lids Econmnic Development & w ,,,,,,,,,u m .a _
}n the wholesale poner market, lou-cost producers Sa4Wreex* m'430"5 8d'a= =*'F. SN a,iphy-ess#eeanarinersime myr esa m med sp, mss reign. In UNI, sales to other utilities tuuled a,b. md- 3 % % , g ,,,,,,,,,, ,,,, mm.,, ,,,,, ,,,,,
hon, or 14 percent of electric retenues. Wholesale .
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pow er sales are expected to increase another 5130 mil- : W ,'I W Lj. . lion in FN2. the Erst fuli Scar of latte new contuch l "h , u nh ses eul u estem utih . ties.
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laou production wsts anJ resulting lou prices ako . h [,- U lj ^ QfI aid economie des elopment etiorts in the sersice area. - Bene 6b derived from power plant and tunsmission ~. iT J .
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asset acquisitions. seasonal power exchances and the Paci6 Corp-ifuh Pouer merter collecthcly combine .- to help mainuin suble-to-louer electricity prict - . M.MgratPtszhase Osates trakse
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Some 32 separate price reducn.ons nase taken e6ect - in the fout 3ean following the mercer's announce- 3, ys.nsaierace.ws naraneryennenseasseement. . ment. Prices in i. u h alone base dechned more t9an M.d8nurtseth m nungermeme @ g ,,, l.;. N pertent, u hile Unt's sutem aseute price approx- f;.y,ge,,,grienq,,en iram,ser neyswoompemw- - imates UN s as.erate. n :egesentemwsensaammet . .- t? -
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m.s 3-g*. 3. ,. . g%. o% &Kl _ Coal, NaturalGas and Pmious Metals W Q Q -) .R;% QW . are NERCO's Future
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I ;, - in a omt ot depressed pntes. \l Rt .()'s ponun tot us tuntumes to be, j[ W '"""""*'""'"""'"""""' 1991 %s a lbugh lear; 1992 to be lhugher ' 4'~ RMtha,
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,agg - e NERCO's Antelope CoalMine Ssanow. econom<<any accessi. soa. cost coat prosucer. coatin i99s uost or ts,s coat ble coalseams in Wyoming and The hielope mme near was sold to electric utshty Montana's Powder Rwer Basm Douglas Wyomirg. produced customers hke Northern $tates are a major reason hlRCO is a 5 4 milhon tons oflow-suffur Power Company on Mmneapohs.
t s ! 4 6 o a r sauseammasase 15
i th a result of the sharp decline in gas prices in early foreign antomers are also coming to apprecine the i IW2, NERCO eveets to reaignize a non-cash impair- desirable characteristics of NERCO's Powder River ment expense on its oil and gas properties in the first liasin coal. In lWl, testing quantities of coal were quaner of IW2. The emount of the writedow n will be shipped to Carboex, a Spanish utility fuel buyer, and based on NERCO's es aluation ofits oil and gas proper. Chugoku Electric Power of Japan. ties at current piites, llowever, based on early41 arch th the low sulfur nul market h extremely competi-IW2 cas prices and other infomution currently avail . tive, controlling and reducing costs is as important to able, the after tax writedown would range between NERCO's long term profitability as is controlling over *
$150million and $175 million. M)0 millit n tons of resenes. Shallow, economically- ;
NERCO is continuing to evaluate the carrying vaine accessible soai seams, duracteristic of wyoming and of all its properties in light of related economic fac. Montana's Powder River liasin, are a principal reason tors, including prices recched for its commodities, NERCO is a low cost producer. By exploiting its capital expenditure plans and potential asset disposi. inherent geologic advantage and focusing on costs and - tions. NERCO's commodities prices have generally pnxluctivity, NERCO cyects to remain in the com-declined mer recent years. Should this trend contin- petitive forefront for years to come. ue, fcture writedowns may result. NERCO and . PacifiCorp are examining a full range of opoons to NERCO Oil & Gasil'ositionetl address theseissues. la l'Clforin in flie lIHlHTC
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NERCO's 1991 CoalSales "C * *'" d 'd '" '1""' " " """" ' Total % 3lillion Tons from 13 billion cubic feet to 715 billion cubic feet, NERCO enters IW2 as a leading producer of high-Production has grown equally drama _tically. quality, low sulfur coal- a key competitive advantage Why did NERCO choose natural gas? The decision' as many c ul users face the need to reduce sulfur underlying premise is valid and straight fonvard: natu . dioxide emissions. These advantages were apparent tal gas should experience increasing demand and price in NERCO's 1991 sales of some 36 million tons. ' over time as it is a ckan, environmentally acteptable Most of NERCO's coal customers are electric fuel,pricedlessutili- per BTU th n oil; ties with about 75 percent of sales made under long- Prior to the April 1991 acquisition, NERC0 was term contracts. Additionally, the strict new standards able to do only limited offshore exploration; the com-of the federal Clean Air Act Amendments of 1990 cx pany instead focused its growth solely on pmperty stimulating demand for low sulfur coal. As a result, acquisition and development. With the acquisition, L NE RCO is directing its domestic m'arketing etTorts to NERCO can nou actively explore its vast new prop-l those customers considering switching to low sulfur enies and hopes to replace resenes depleted through coal or blending eleaner coal with existing supplies. production with new reserves discovered thmugh - ,.<~,<.,,
+ kb -'
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* ' Y EEPl oration Center
, .. ; ~ .y- ' .1
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Before expensive 4 g l ,, . . . exploratory dnthng begins
',l ? on on oiland naturalpas
. . ., ; s tl _
property, a team of
'. , Houston-based geologists 3 ~
perform txtensive analyses 4
- R , Using detailed three dimen.
- p
- slonalseismic models and
= reservoor simulations
" ;> $ophisticated computer h '
tect,nology reduces fmancial risk by identifymg optimal
* ~ " *
$ ~
drilhng locattor,s.
;A i k
. < Offshore 0ll & Gas Production Platform
..ym. The large April 1991 acqui.
sition of Gulf toast offshore properties added to NEReO's naturalgas MTW* reserves, expandedproduc. tion rates andincreased
'_ '~.,
' ^
- r : . marketmg access and power. Although natural
.y 3 '
t V pas pnces were historically h ,> 1 qa.wr
'[ naturalgas willbe mort Y;$ ~: : ,. , {.
highly valuedin the future. 4_ g '4; 1 9^ [. -'i i >
<r Gold Production:
Cripple Creek Mine Makes First Pour The discovery of 1.5 militon ounces of proven gold reserves and deposits at NERCO's Cripple Creek Mme c\pIOTJtion - 3 less eastly approach to resers e replace- the nurket strengthens as e\pected, NERCO - with w,5 t3e 199t highi.ght of inent. l}DWesef, eOntinued l0W DJtural RJs prices Will its increased production eJp3bility and stIOng market locatedin the shadow of constrain exploration in l9T. deceu - li Well positi0ned to take 3dVant3Re Of colorado's Ake's Peak. the new mine pouredits first 1 3tuf3l f.'Js plJp a pIOnlinent Tole .in the nation s Opportunity. gold mgot in January 1992. ev0hing long-term energy policy and future. When r , < i i i i o a r 17
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\ Jh( llijjofil\ $ll })hinih thCl4 lil1I.lNk.t t onni i hn, kl.lv onI lo.inCCI !ilnf g diganiCiA llnit nCCth \rhtinoon eioku h in t hC i t linlai phoi,C ' Q
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) 1r Before e pensive
, , ' _[
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- s tKVorstory dru!iing begons on an oiland.*stural gas l
h l .j -' property, a team of f ~\'
'l } y Houston basedgeologtsts l _'. ,, % -. ,
perform entinsive nnalyses { using detailed thlet domen-A * ' sionalsersmot models and I ' '
- reservoir simulations
.) $ophistnated comps ter l
{ h technology redures finantial risk by udentifymg opt, mal ) . . { drillmg locations. m N l -
;] ., .
l t ,
.-in .
< /p , ' .
I ] Offshore Oil & Gas
, h ,
The arge Apr 19 10 uh e .. M:.~ $1tton of Gulf toast offshore } properties added to NERCO's naturalgas s expan edp odup
~'
j .) % WW,MiUS & Kh k Y ' '
]? marketsng access and I
' l power. Although natural I
, l
^
1 y , gas pnces were histoncally l j ;
; ] L-; g j . Iowin 1991, NERCO expects
>1 naturalgas willbe more
} , g , i g: %a .. l highly valued m the future, jgp ;;- j
- .s l
!$ U l ,c j t Gold Production: .
i -~ Cripple Creek Mine i Makes Firrt Pour 4 l The d>scovery of r s miliion , ounces of proven gold a reserves and deposits at hERCO's Cripple Creek Mine C\plof.itIOn - J lC6 Custly Jppf0dCh to itsef\ C ftpljfC- the markCI strengthens as C\pCCted NESCO- uith nas the 199f highlvght ?f ment. Ihme\ CT, Continued low natural gas pricts will its intreased proJuction Capabihty and strong market locatedin the shadow of COnstfain C\plOfjIlon in ID1 JLTCu - is MCI! pu%iliUDCd to t.ikC 3didatJyC Of Colorado's Pae's Peak, the 7 . . .. new mme pouredits f.rst
- . Jturd) UJs plJss J prominent f0}C in the nation s opportunits.
, goldinyt in Janury 1992. Ctol\inf lpD!'-tefm entig) polic) JIR! flitufC. Whtn i , < > > < i t - 17 )
. . . . . . . . . . ....m.. .. ...: __m.eWau.-Nwu N M' r W ww, ,yy - ' ' ' = - - -
ELECOlliH1 IC1TKNS . 4
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- Ihpanding localI%ne 13nsiness .
the 'Ibp Gnowth I'riority l _ ith ui c.u ninc.s ( oninliulion of Wl unlhon in l'NI . I' a lla I cIn oni . an C l(n an o\uicd solmdun a pwscnicd I 4 pou is of l'.a itit otpi
. total carnines l',n it a IcIn uni is onc of the nanon I on th ll
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Aurora II Launch Paac retecom eneers tu chas. cabre in May 1991. e new gen- a ne,.:~ s orover200 earth lenges of Alaska's long d:stante tration sateliste. Aurora ll. sas stations effavently >;%e telecommunicat,an needs with launched f om Cape Canaveral. the dualchallenges of Aladis a state-of the art, satellite. Florida, to its 22.000 rnile sta- large s.<re andlow-poputa- l based system and liber optot tionaq orbit Aurora 11and tion density , , , , h
i I ds J ICsuit, IIl stra Cs !o dClh Cf (pu!it) Wmmuni- fp)f q f)fy/g)gg h[y'fg/fg)) l ution wn n.Cs at rCJuulde pnCCs . ibsolute fun- in j/nshn to /irus on /n/rustute { l danitatah to nurturin tustomCr rCbnomhips and J/ur/cel /'ending Sale of /nterstate buddm.' duf tIU ddCr iajue l I }\ !< GlItlCplvent CulunJCs JIC sirOU!h iteipCr. one dhtantC sCnite in Abska is aho a nujor busi-CCor deit.dh stun hCd- pbCinc the compjm JhtaJ d UC" O PA bC C Cthin. NC(J!he t!!C stjte hJs j ! thC tC;lhnJI OCll ,#perJf dp Comp 4HCs and In%t othCT bra IndCpCndJnt IC}Cphone CompJniet l' sing (lii,
!JIEC JICJ Jud It'M phpt!!Jtihn dClbit), pru\idin[
l ' tC( hip ibQ. I'l'l, Up sil tCCubtfin jppn n,d, CgpcCts to ICICC('Innluni(Jtihih sCni(Cs ptnt tinitjut Operd-bC'[ !Il tCs! nurkClin[ CidunCCd seni(Cs, hkC CJllin2 f )n J Jnd nijlkCIln[ dul!CD[Cs. 3lJsuint, J fjtj6C fHmibCI Jnd fume idCIIUbtatiott, JnitinudC redul ti[ ICICCUnl s!!!hidbn, JusMCh thesC thjllentCs uith J uht numbers, sCICCn\C Call tonsardin: Jnd other '!Jtt-of thC-art satellitt nCluork of DiCr 30 carth str\ lCCs. l htse NCT)KCs die iil addititail to the Upgg $1Jtions Jnd J DCM, sCCond-RCntratiun $dtCllitC - l trJdl!IO!Ul CJll fieru Jfding, (J!l-MJilln2 Jnd Cthttim- dilrbrd ll 3lJWom's pri\JtC-l[nC Jnd intChtJtC Clh-rin[InZ sCniCCs. ll1 kCCping ulth this nCM 3tJIC-of the. t<>rnen rely on tiudin bher opdC digital seniCe to Od/ bsher, J/ong wrth co.
' ' ' U Y U n oriers at the Portland rtl) 00 mult thJn NN) nli!Cs DI bbCI Optic CJb!C- \UItbFJLbCCdblC-f l Gi tenay Operat:ons Center, take responstb Ir- . .
l ty for operating the elec- . I tronics of the U $ half , g c! t% North Pacefrc fiber I optic cable The cable l \ spans the ocean f,om l Psofic Cty. Oregon, to l l l
- M ura, Japan. near Tokyo; a 100 mde branch of the h4 cable extends northaard e
\
to Sesard. Alasks. 0'. 'l r ,_
~
. . ij-c - - -
A t year end. about t t - - k {f percent of the cable's , ,,.g-N capaofy had been sold to I. % l snternationallong dis- , N '
" ~A -
tance carners indudung , amm , US $pront. MCI AT&T. - % .- l Bntah Telecom, Mercury f Commungat.ons and .
'? tj KDD of Japan The pro. > w i
^
fect expenenced a slow ing cf capaat} $1les nn 199? as a resWt o! soft global economK cond:- tions $ ales are enpected to pick-up to 1992. l- 5 6 h e.
___-___. _-. - ---..~_ _ - - - _ . _ . . - . - l 1
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n i rz 5 - l ..
*-- -2TR- - ) 7n L
l 25 localand Cellular 2 Telecorninunications
! ~
Growin the Upper i - Midwest w%. P,ohoeletows localand QY
~
WW to cyg - cellular telephone busoness. es in the l!pper %dwest i
- i !Y f,g k have 98000 access lines and t 4 rndhon cellular h A pops, a vnessure of popula-b hf,, ., toon in a tranchised cellular M ' m. . D} servicc " kct l
W w - " -
%k ' fph r ,&. ***b* #'
l
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phone custome's in the he - .. ~kkw.&& company's Wisconssn 11ar-k et doubled in *he last three years. Agricultural ! WISCONSIN f'l m '"fa~"O,C. a
' ;; q +, ness band radio to higher-i , .. ):
- l'
- l. quahty, versatile cellular service. To make it easter l 'l '
to switch, the company's l
~
'*Y .
, ' g ,p Appleton. Wisconsin.
' e~ .
,, .. Ce!Iulink subsidia'y will Y
i
,,,,,,, W. ,_
e' d3 9 visit customers in persort [ j a - on .m
- Like many professionals.
l 4,+s:s s*~,% m~~ Li ,.L ,~ e. , e e ee-., l <U"I' b'ON 'G,' Ofh<* w .v ...M rnanager on Appleton. reises j on the phone. While on the
- 90. yn eps in touch wgh
' r \ cart $lJ@n) flinlishCd intehtate long dhiance pro \ide IntChtate aleWiec toll, WSIS Acnice and l customers and Wall $treet ser% Gi.Nka. hhtoricalk the on!) state not direct- international mesute toll senice benseen Alaska and Basiness phone customers ly sen ed by .\TcT. Thh is espetted to thance in the tot of the uorkl. Rather AT&T would pnWide indude the w,sconsin store i<,c u m _ ns _ u ,e _ e m ,emi _ ntem m ndeendido m aendc u ~~~ unique store caters to l those of the louer F st.itn where it etirrently pro \ ides rounsts and. as ,ts name l touard e\panthng the h% al telephone cuhance and
. imphes, sells only products cCllU jr pbonC blb nCssC A !asclin} and d.f.b, , seril(C. k. ndCr (lle a_[rCCMCnt, k,l,b,!, u(H!d paV '
caught, grown or manufac. reJched an agreement in 1WI to sell Al.hcom; inter- AI.hcom $255 milhon oser titc years and another 575 turedin the state. state operations to .\T&T pendine apprmah from mi!! ion mer fise Sean for nothirds of the capacity on d!.hka and federal reculaton and certain other cornh- the A1.ska spur of the North Pacitie tiher optic cable. tiont The ule k cxpeued to t Lne in late 1W2. 0:her than the North Pacific cable capacity no phs sical Rder thC Ni!D JZreement,3l.ho,m u ould no li,nect .hsen or facilitio of Al. mon) would be sold. i i ,. ,, 1 w 21
l l
/
Alastorn: Sea land's l Private line Connection l
?
for AI.ncom s pnvate-hne ? tustomers Mt $ea-land the
l lacyest vnanne shppmg .
I operation m Alaske. Quahty _ \ fler opf!( C694tal servfte to [ g ana the lower 48 states and the
,,R**g-m' f1 \ 4 rest of the world11provided ,**% o
. [
through a spur of the fiorth r . . ._ jf.-i, g N , 3M' j s% Papfot table Although , Alastom IFJChed 811 agree-
'N
~
ment wrth AT&T to sellits , _- (
'\
mterstate long d: stance [\
*..f.a I
bullne11, pffVate bne (Ul'
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tomer1 hkt $ea land Wdl , , _ , &
- p. - ,
p=g6 of A-, m,,es, - - g -
; . a.e, 997 s;( ze
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o- . . _ _ 4 _a he salCs J[rcemCnt prosidCs for $1bI to ! Case fDim Ihe salC Mill remme restrictions t!UI ('Urient!) pre-Al.ncom. on a long tenn basis, fxilities necessan to sent PTl's local telephone exchances and intusute - sen e the needs of LUs imchute lon disunce cus- long disunce opeution from working tocether for - t(imth. Intrastate and pn\Jte-line ser\icCs currCat!{ ma\imum elliciCIRJ. fumished hs hcom uould he unatTected by the sale. PTI's Strategic Din ction C. lear-
- llascom .1 lore Than .1lects Positionedfor Future Growth Intrastate .11arket Challenges g , ,
Intustate nurket competition came to Alaska in local telephone euhance senice and cellular proper-IW1. Iloweser. Ahncom continued prmidine quahty ties While remainine competitise in the Alaskan sen iecs at connetitis e prices and, as a result. lost s en intrasute lone disunce nurket - Pacitic Telecom is fem custontCr% SClling d!.bcom's in!Chiaie }one dis- pt nitioned for continued CrontlL t.ince opCration Mill al!ou PaciIle '!clCeom to deiCliip a fulls unitied appro.nh to doine businen in the sute. er an
3 l dINLNCIALSEC110NCONTENTS l 24 Aramartl,n/$rmation l
~
15 (Isattahlutonnariam . v)
, og 16 l.muuhn andGipitalResounn .
l l U Induan Srement, I u l
'M 41 Repat of 11ananment 41 Indepwdent \aduon'Reput . .
y i> 43 Statemewts of Con ><duland faromo
- N-and Rnainedharuines
, y: ,-
44 Consedid<tted Ratana Shets
+ 46 statemrut, of ConsolidatedCash. Flors v .
V 47 Naks to Comsolidatal Finam ial Statemruts
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\l311\ltYINI;0lt.111YTION Wi i Il M of ly 611. ws t )1
- Illi )} Alt 3W mi i . rm ( . met br.ute Wul lYjl lYU lI/$ lIfk s l h *() l9h6 ( egmec (%4 Hl:\ 1;Nt'i.s $4m70 $ IAw I i U.315 $ 1;22 4 $ 3.275 2 $ 3,173 0 41 59 INCO\ll. f RO\1 OPl R YilON% 1.125 7 Ur A 5 1.0143 1.044 1 1Mnn 912 0 3 4 NET INCO\ll '.07.2 4719 4M6 446 7 411 1 351 4 7 7 f.\kNINGs COM RllCl,0N ON(,0\l\lON VI(X K l icant O;wutons 14u 3 14.2 329 6 'e n 291 0 227 0 4 9
% rang and Rewur(c Des clopment 67 7 Mo M.0 59A 54.2 52.0 4 $
I dcu,mrnunk atiom W3 72 1 62.k 54.2 35.x R9 (4) 15 l uontial ben n n 69 76 11 14 4 97 41 (9) ll Copiate 110 01 t 26 9) tie.l; (7.4 ) (? h 12.2) M 05) lOlAL $ 4H5 5 452.0 $ 4444 $ 426.0 $ 3%5 $ 314) 6 9 13RNING. 5 Pl;k h.litki;
$ ! *, 1 IM $ 1 81 $ 171 $ 1.59 i 1H I 7 CA%Il DIVIDi.M 6 Pl.R CO\l\10N s.ll \ki; Paid $ 1 47 $ 14! $ 13; $ 130i $ L245 5 1 20 4 4 Dalarul $ 14M i I 42; $ 13M $ IG $ 1245 $ l.20 4 4
'l oral men $ U.229 $ 12372 $ 11,895 $ 11,396 $ 19303 $ 9,362 7 7 Corpoure idennfuble men $ 2 16 $ 128 $ M7 $ 117 $ 2n2 $ 157 (2>i) 8 l oul empim ecs 15.722 lb,W, 15.492 16,41s 1U18 16.124 H) (D Common sharehohlen of ramd /Howdd 1611 IM 6 171 0 1M0 1%7 1910 (1) On llook ulue pct sharc $ 11.44 $ 1249 $ 1129 $ IL91 $ 11.77 $ 1134 6 3 Ntarket prk e per slurc $ 25 % $ 12% $ 22 'l, $ 17 '/: $ 16 % $ 17 "/m 12 7 Prkc cammn mu!6ple 115 12 1 12 6 10.! 10.1 13.5 12 -
Pretn intcrot cm cate 24 24 2.4 2.5 27 21 - (2) Retorn on ;n coce common cquir3 14 3 14.9 14.9 14 6 us 11.9 (4) 4 wowmo wrewm imp uA.uduc unas ch.d ymences hcLi mnonh for J4;wn 1491CulllMRillVIOIVVO 4 l:leurit Opeunom' carmnn contnbution rose $12 mdhon or munications wlnidian, offsct in part by the Aupni 1990 49 pnnaril3 due to inucncd encig) ules, highcr prico for aulahition of NonhTVnt Teletummonitanont Inc.fNorth-energy sold to other utilido and redmed Iown in;m equit3 Wntb mediumni/cd %du cst hul telephone company imesoneun in ovenernion pmjects Othetting thne gaim 4 l'inandal hen L n' contnbution dedined $1 milhon or 91 une inacned imerest npense, mtome in npenw and pic- prinurily due m louer neuge fmante men, increased esets fCried dnid<rhl retjukremenh and detreased iMernt capiu}i/cd. 99 gggg ggl gagg gj de C%cd redn m ih cor@dr leh $ 6 \lming and Hooune Desclopmenn uintribution inacased odminew
$3 nnilian or 49 priman!y due to the ule of a long tam gn
- Corpouici neg,anc contrihotion imprmed by $17 milhon wpp!) agreement and the seulement of a uuhuntuct dapute. primanly due to deccased opconne Imscunuhing imm ules offset in part b3 the cffecn of signifkant price dahncs for ga of nonaire budnewes and increned comobdated ta benefin.
and piedous metah and inucacd operning and imernt
, Do cus ndef uennon Orn ounund.ng rme UI Mperne rclated to the atyllidtion oft h propertin ggggg gg g[g g jg gjg gj [ggj,g p 4 Telaommuniatiam' tonnibution dethned $1 million or hsuantes for the dhider.d reintntment anJ emplosee sud 41 prinuri!y due m a dedme in ulcs of uNe capaut) and ub ouncnhip plans and the effect in the prior Scar of shares helJ tution adjoymenn associated with an imenutiorul teleconr for use in aqukitiont P 9 ( l i i t O lt P
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- U SlJrth June hq4 Ihbcl 1)a cinbei 11 W 3a 31 p/>l H et ero.cs i W;6 i 924 4 i P 1,> $1J 22 4 imomc h,m opcon n 272 1 22e 237.1 T4U Nct mtome 1%0 %1 120 3 U.H, l.numru ca omm ud ill; M2 ll U) 156.9 Un on pu u,non- arc N 31 44 m
( hmmon d1ulni p.nd p- r &a 3n .h 37; 375 (M non doiira dul.ncd per An .h .U5 .373 .U3 Limnon sn4 L pai t pa sVt iM 51a limb 3 21 2\ % 25 % Im 2a b 2n u. 'n t 22 % - - - - - jff Hj bnenurs } 9l] } $ h756 ( 4y,l $ljfbl$ - lou,uic in en opcun,r s 2m u 22D 26h9 311 3 NIDU pr# 4 "N W "' " " " " No mmme ITe %1 137.6 I anu e, on unnman u
- k 12 9 m In43 13hl
---h0 L mur c.s pcr u.mmon shoc 52 A .41 .52 Common thuan h pnJ pu sha 36 34; 36 36 ~-'"~~~M Conuwm ihu&nJs du !xcl pcs shm 34; 4 36 38
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( ornmon stod pot c pel .shee (M bl'I llwh 3% B% 21 '/, 22% q ",, im 1n 1, F/ % 17 ", 20 4 %. n;:: c:
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.us v-jj;4 d d 36j 39 3
w Noe n r % , a A + n hn k wN Om o ua.W u munce mJ np c .m. ,m gg% 3.
% ,a s.- tm.oumm , .4 m e e uaA m - wwm ]Wp g-j ' 3;L pH;f,; %j KU 19W/ C01//'.1/1/170 /H4
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$ llettuc ()peurioni(unrnbuuua rme $5 rudhon of l'i pn. $ l manual Scn u n' oeninhutian inacased i4 Odbn pnnut- t kg R$
mod >d2e ~ n inuencintdow n. hum man. merec,sn. as n ainmhortheepa,nensof,smai:nunuractu, ion om. c'< , 4 ma me and dcocm d ouome in npene 'lhese emm uric off- uq obtxned in Uno aid a 9 mdhon gain from the ule of YNiVI W V4 UI W W Nb IUU 4ct in pst b) 1:m er enern sales pn o and the t f!cuwf scttie- fhe anp! ann from in miathn lutfohn 'Ihne imptmemenn W 9l Incn! Of eCitant n WLiurriDj'lun!r R t f cl.l!cd 1%Ucs in l9N u de ojhet m pRt b) a N md!vm ldu fystdtin[ from the \JlC of
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f Enn; and ibus e Iin clopmenthuntubunou mi rencd S""A"" "i >"Ch 'n knuss Pm 1 he auct ule un pan il nabn or N Ngn tkanth lueber ud od and en incnues. of a pLm to dow mbe and ieorganite I iruncul kn ico rnuhm: from the emtmoed ctpawn of NFRCoiimcu- e Cupoutn ngene omtribunom wie $27 mibn in Pho ment in thne opcunons in Lie 19* I au! Um aa oumed for a compecd to $16 mdhon m FM. Caning sa!un of noruore
$7 m&n inacnc The c!fcu of dus inocer un otnet b) a imnuncna ucre reduced ill mdhon m PH uhkh indaded 56 miNn ancotas en auted to !!us sccment in FWe e a ihe urnc-ofiof the Ge;unO tcramnine equity imotmem in rnuh of a (hange in the ( Wapan6 tarrung s ahic of Ni:RCO lhpu d I-inua ul Gron inc uinwon wd (Anu inu u!c ta the pubhu + Tdcuimnmmcanoni tonmbunon moened 59 nWhon or iVi pnmanh due to a $12 nubo cain inca the s.de of a u,m-munkadons suhddun and the u!e of 3Pi of the ca;ucth on the Mrth l%fa (lNc. 'l tcsc fnor die innhs ucre pmuhy utiset h mtusute udi Ir; redutoons, louer out-of penad intentate rnctme adpanenn an 1incn a cd mtcrest cyese tcIMcd tu thC YSrthMcst A1juhutbH!.
l P s e i f I o k f B
lbc uaIW1b', W am mtu.:d e te N f4 4 im m ,
. Nr h a t k J a 1 css ta twa smpu cenm.
ucc lum m a i l t on ( k renns. W q .nd b s a( tu c a u..d u;mt. t u ha c b ra nisa n tes , m a cf. l)nchpment ed I( u a on1 :m .p Rt-r g m re a n W tcu c ec n h m wu L;s m m ucJ m u unnce ahm.d a nupt .unt du n , 4 i i rt im & a t% bd mam n.ms u a tk asut %c t Caf nia anj Neula u uc. pan of the Cepan, 41 hn" d rat un"n it u nc um s icnmhos ed a ten t + cs cco"h mintodimeu p n mpel noprmrc I lutm () perms' ab: m. to s n e as us b wauu! als i 1)xmc IW1. the (.ompam k imested m tonwn at m vt w pm es m tk fmun L usmw i ofalb mnea, ti~n mns se e of pr Juana $10.' nWun tunums. tona! p rc on muca,cd Nl Ri J h n;nson t , de ocus m e ihil nuNa ed dmdunn andider. 91 nhn. of Gntuen wmu dn potn Paufa 'ldum npnicJ ns .I hc Omumi m mum ad annsu prxum foi Fr s, be.J! cu b1M; f jK rail:M anJ resua icd ne rir; irand n te n ,,f t on ou , m, prod cion. il b. mo, hon. nansnoen $B0 inn ciur t..rc wmpeuon 'm W ka . h n datnbunon anj .e.ce. (. ;l,, nahm anJ a.7netnn, >Jw _-_ -._.._._ At part of the (f! ort ra ina:Uc; fucl t o.h ed nu t; ast opcu!- num ~j hc lW2(oniumnM l4% urn n nderdd D enluntc y int ilcuhhn. tenam i nd manne opurions. u hu h had hcen uvem citircnucs thrwh mipmune the guhn of ncncu- II'IIIIMXUITU oremvh fonned to culom ch sen e o, cum rene.ena inm .mJ dninbunon fa duits ululc nu orpnunne new illYIMIG111M 4 ! k 181'> pbnn, ucre transient J hom NI IU () r , I ht tm ( 4tu' nim donitul-ude iy:irn and rencuable resuorte procramt in 7 - #
~ ~
Thcr the naufer. tuo thuds of the cod wm ;J b) the alinon. t' c ( a o paa ennats a u dl spend D nubn m TJ O.mpami ten uuhfacJ da nna! pbon n pndom! b, noncs Un2 m nan m Ura nJa F4 m6on m P.r4 on danand- g ;y j " tou rn.numi k I icum ( 7pt on m uJe in iuun I)coundule opnons nalade tustonar effn J j 9 o _m Ihc ( on paM prc% nth Jfdh Ipattk l hat (apt.d q<nd!N,' in , the IW to IW wd I v dl cuud net ush flow nom oim " " ' " ""* " W *"I' ' b '"' l N I ""' P#" " 3 h" b. i. 1 . nons icw dudends in No n e on to W in e on ~l k ""Oh"" in a Wu nsuuh pngett uah the lkpannant of __
] .;_j _m umpam npan in reuca and icJotc as upM spt Jat I""O 3"d "d" "UhhD *"U th' "h' of de prqct t i :
4j pbm, punculak m an as adcued k Wer mmnoJin pn< n i n w hu1A k em an a nunkt M untaldc lounons for a l j i manung auninn. uhhh unoke the hsua e of dd t. pu '"h'C'" """ d 3 ' d
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4"
^- ] 1_i
'. 3 k h h ., . " . ,
h ,
! k ] $h , kh .Il) _ (h- (
tan the t onent opnA sumtorc, udi be punned to get bounm im ("(:niouJ+11ci (ded M 1(n 6 Corp. Pubh 1 4 _q 4 , _y the f. ump;O anra pacd pouth I sonato of tutorc iash scn u e ( hmpam of ( aulo t"N X fi. I ribe Ucnconon j j and 1 ransmnsum Aumiatmn, ino FTnatuel and ' ' Ikms m the pnm wu h.ne becn reused doununJ to refka wu wmn+ emn ma uenon a sm nsn a um imcnnmaama neonannuanon u n appucJ M ac _J, 0 1a J: o tempa rc(cn cd n FN! udet than PW as annupeed had.rupta won in I tb:uary IW1 The U nb proudes for the *
- W
, (:omlunn pahase of N n ct.nuta of pencutha awen anJ g wononens 11C/R/C OITR 17/OM fuel reso mn hr ijw neon. a I,n mccauan nyca con- 13 bd RrWnc
_ .. lb clopcra tuu poudug far a uucm power tdc h PauhCorp to P5(.O Pau h. ,p wcks to posma n.df m n cct t uuomer emth m . E I h "" 4 """ nJ a 30 me man seasonal tuharte benscen the (hnpam - in senitc c.n.c onutcJ to be bcrucen 2 s .mmuh m rk . Jnd I rFhM .l be tbnP![, n npected tu ott Uf m Aprd IN. not three sert thogh unhan .n of a tml on. ;d "least wu p!)Dning }n tb o p!Ec%. the ( hi Upjn) Idint O the p b of C OP N P*lf M C"# wpphing the tost"mcr unh rchJle loa sou enan f ram pna n fau uk n do oben do ecam@ to who wort o dut an focnJh m the enumancnt u hle .d,o nn rea unhm Nuutm do penmt ik Company to ine nhtirm mphuchoMcs uloe in a nme ef s6n cwnoma puth .mJ mJ u u h Aquhed poun wpphes m a momer that hecps tlungmg rego!nion. Il e Compan tewLuucs tha (ifbtnt dou n lonm t com fx rcud tmtorncn anJ proudn aJded au marucuacnt requen m cer cmphaVs en cuhung the COMh * "'hW 3 ' h'n m i ue , er denmd nminbution to esmne tha ca h potennd im esna nt h I k hwmcc of ad ic ond dcht prefencJ u.(k anJ wmnen expated ni pt-4 de est in a mmon dat wiH nu : t dn the (uncat tapnA stratture The i "I tonsnion unh Sna Pubhc knne Con. pen not u W k ponued tappet the (mpania nupacd crmh onh aJJed W meauan of icm i m upaan e a m4 d r s r ; i i r o n 9 - -
)/
UAR11?RIXINFOR3fA110N? unuown nouaks totantiai rsta o
.t i
114rth June &pternher ikccrnber '. ! 31 30 30 31 ;j 1991 ; Rnenun $9754 59M4 $984h $1,1214 ! Irwome from opentions 292.1 229.8 257.1 346.7
-l
- Net income 1%0 Al 120.5 ItA 6 -j Larnino on mmmon stock 129.5 h0.2 1119 1%9 "
Earning per common share ,31 31 .44 40 -
.h
^ ~
Oumon dnidends paid penhare .% 3 75 3 73 - Oimnmn dnidends dabred per share .% 3 75 375 37$ - j G>rnmon umk price per share (NME)
- Ibgh 23 23 23 % 25 % '}
low 20 % 20% 20 % 22 % - '
]
_ i9'o - - knenun i 912.1 $ 8754 $957.1 $1,0915 SIIIl0 M 7UCK
- Income from operatiom 2m0 2273 '261.9 3113
"\t\RUTl' RICE N :
Net income - 130.8 %) 109.4 137.6 *'* N N #' 4 1:rirninc on nimnon sta k 125.8 M8 IN3 131.1 _ 3M j Earnings per mmmon share .52 38 43 .52 i Ormnon dnidends paid penbare 345 345 .% .36 II3 'j Onnnon dividends dedared per share 345 36 .h 36 : Dennn sawk piite pes share (NTSE)
~
lhgh
' I.ow 23%
20 % 23 % 19 % 21 % 17 % 22 % 20 g ;- A ,,fum peur the..peram u timmi nue :st. W hramh reputed ymnerly infonnumn he tren rescd te rened the retimifusuf tertin restnac and esprme anumntt a p 1hese retimifamm had no etfett un prewel) trperted onwedad net uwne 373, t IVWC0111%REll1019H W ]
- Eleurie Operatiom' umtribution rose $5 million or 1% pri- 6 Financial Senim' contribution increased $4 millkm primar- 12.5 i marily due to a 44 innene in kilowatt hour ules, rnerger uw ily n a roult of the operatiom of a snull mmufacturing mm-
.:i Eings and deocased inmme tax expenseflhese gains were off- _ guny obtained in 1990 and a $4 million gain from the ule of! . .
3" set in 'part by low er energy ules prices and the effeus of senle- fne airpbnn from its asiation portfolio. These impn>vementt - ment of tenain nonteturring contract-rebted iwun in 1989, J 020%U2.0M uere offset in part by a $4 million low roulting from the sale of
' 0 Mining and Hewuree Iksek>pmentiwntribution inacased W mEon of anets in January 1990. The asset ute uai part t
$1 million or M. Significandy hkher coal oil and gas rnenun, of a pbn m dowmite and reorganize Finniahicct roulting fsm the continued espamion of NERC0iinven _ + Corporarei negative fontributiom were $27 millinn in 1990 .
ment in these operations in late 1989 and 1990, acmunted for a eundured to $16 million_ in 1989, Carrying sakin of noncore '.
, $7 milhon inacase; The effect of this inerene wa offset by a imestments were reduc'e d $1I millkm in 1990, u hkh induded
$6 millhin after th gain alkuted m this egnient in 1989 as a the unte off of the Depanyi remaining equity invntmem in !
risuh of a change in the Omjunyi urning value of NERCO - Equitec Financial Group. Inc. L common sn(k folkming a ule to the public. 4
- Telecommunicitions' esmtribution inacased $9 million or 151 primarily due to a $12 million gain fmm the ule of a com-
- rnunicatiom sub3idiary and the sale of 31% of the capacity on -
the North l'acific Cable. The e fatorable resuhs were panbily offset by intrasti.te ton rate'reductiomilower mit-of-period .
- intenute toenut ' adjustments and increased imeiest' espeme i rel tied to the boril Mn! 3Gjuisitiort #
/
.p-a c-1cy lJC o'a P i:
31 . . - , . . - .. ..a.____,__.______,.-_. _. 2 ,- _ . x . _ _ _ _. _ ._ . .. _ m_,. _ . _ _ , -
faI ()Ull)lTlilNI) C:ll'1 Ell RESO URCES Y"iIrM hl!>tf1 Os lh6'lHfil O it u.d 1%ierted 19 0 two Uni pn2 1m Ph4 N} l ( Ahlt iIDWl RO\1 Ol'l:R \ll\G \Cll\lI11 % 1.la n n. Opconons i sm i 426 i 741
\ f;ra e W kevian c Ibd >jmicra 19; 227 So Tdet om t .nu anom !!u 191 11(i linanualN: nun 2C P.5 157
( h bei 1 20 11 101\L 1.119 1.132 1.276 O \\ll i)l\'ll)l.\l)s i'Ali) M2 %1 4W Nlil i :n7 i 7M ! %7 5 7N3 tim m $wnMo (nw!Rt UIION 1:Ictua Opcunons $D i 410 i 504 i No 5 512 $ $W
, Bill / hlt Mmng and kn.,unc I)cs cl 'p'ncnt ils th 209 21; .N 2tn
/ RHl/ Ol'l R 111Mi 1,4 11,
-l (la nmnnuunom 150 1 <m Iin- 114 cil,fil.(Ill \.
fggj;ffy7, (hher A ls 4 - - H 'A IU' 4IE 4\4 4AI YII
- v:u rm m inn o v ~
pm . - - _ .
\Cf)l'l%l I lt )\S \\l)IN\ 1.S l \ll:NIh I In tra 0;uanom M 49 292 260
\lmme and Revum e 1)eulupment 91 267 4% 15 M
n 'l dn on cu aniuo"m 30 274 41 13 um. _ _ ._j p ,,, h4 ( hlict ill) ilM 3 - l j ! i d 'I(TI AI.C\l'll'AL si'l.\lilNG i 702 31.U2 il.H4 i 1.227 i 947 i 911 % -. [ .dM _ _ _ i IN \NCI \iM R\ ICI.nl: l' \l)l)I I lONs j. Ly
,j i[ 'I O OPl R \'l l\G .\%1:'1 % i 2m i il59 i 71 i 27 j
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('jj'j j \{, l,}(\({,()](( j(i \'[ l()Nh 1 i .., s c(k t k Y(a b fIls .a . . h \lmine.mJ Remun c i)cs clopment (>; 40 % w-_M d
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,)' _-
Tdn omnumunom 23 29 29 D., 42 12 3s4 32 29 lin.nnial 5en u cs 374 M3 347 15; 157 74
~ .l, a 5
.' Other i 45 3 2 2 1 o . _ _. .,a za a2 . j __..
'4 z3g g *g 4 ( ygg ( g- , g 333
- '4 * * -*-
F6 % 91 _ . . _ . _ _ _ _ _ _ _ _ . _ k !!lif it illJfKlPC% i 177 i .5, .'. i .D 0 I um.J % n O h knaemu s cam 0 %d Remtr I b cL;wcot C f.lectm 0;cs n D uenw
= _ . . _ . . _ . . _ _ . .
' t 4 (. 1 ) I t i R t
The 3nr IW1 bmucht a nmnber of than for PanLrpi 5214 nuihon. but a6 added; anev, to low u.st surphn genere une busintwes of Idcitnc Opeutiom. %ning and Resour<c innacasonal upaun cu hance from custing resouren; a spuf-l}cs cloprnent and Ie!ctonimuldlatforM. NeorgJr;i/JtiDns k~ ant rocoue Micam [r ifn M sicia uln; kmprMed intercorinc(- aimed at improur'g c ffsienn and rolacing visa tout heJ nuo3 tium with the dncri Muthu est, Cahfomia and No ada whole-para of the Company. Addnion.d gentution remunn ucre ule nuthen. and au ess to esung (ombusnon turbine upacity acquired impnnint Licorn Opeunom' abihn to scn e m ov for senonal pakt Dunnt iWl, the Gmpam aho imnted in tomcn at cony.etitise prun m the future. Aupiiution of adJr uentruttion u.miumt of. pmthxtion, $102 imllion transtnis- , tional ga inenn inucased Ni RCus nynure to the effeus unn. il01 n ilhon; and dntribution and other, $Vil milhon. of fluouating commodin pnces. Pacific Teletom npanded it' The Companis cmruuion and autuisinon program for lW2 bx a! tu hance operanom and rnponded a the intmixtion of vinskn of. pmduuinn. $1B mdimn; tunsmhsion, $150 mib inunute uimpc6aon in AbskJ hon; dambution and athct, $317 nulhon; and acquhition, $2MI As part of the effort to ma5ure fuel u.sn and mucase opeut- mdhon The tw2 amstrouion program h intended to enhante p ing Deubilin,ieiuin (oal ndn ng opeuunns, uhkh luJ been nuem ef6uenon throuth improung the quahti of genera- ' U II'IIIE SI'I3IIINU 311%IWSim1LAT onginaHy lurmed to culumch sene clntrk generating tion and dnuibution faihon, while inunporating new W h M71 phnn, were tramictred from NLRCO m fdcunc Opcutions dcmanddide options and rentwable resourte pmguna in After the tramfer, tumthirds of the coal comumed b3 the addmon. the Company cuinutn it will spend $28 rnilhon in Companyi ten toabfacd thermal plann is pn duced bs mines lW2,546 mdhon m ph3 and $74 milhon in IW4 on denund-now nmuged by ideont Opconons ele rnounn. Denund4ide optiom include customtt effi , g "r"" P'"R""" !" ndute cuuing enero me and to make The Compan3 prnenth anticipain that upiul spending m the pN2 to ph4 period will cWeed nct enh flow from opeu-T tiam less dnidends by $610 milhon to $700 ndliion. The insesong in a wbr resanh pmjeu with the Department of - . g Compam npeco to rniew and redate in upiul spenJing Enerp and oder uthn %ouhl the rnuhs of the project pnae faucable, there are a number of smoble kanom for a pbm, putaubtl m 3 aren affeued bs lower tommodm prket iinanung achitin, whkh muihe the iwoante of debt, pre- '"lx reneunon pbnt in ec Compann sen ke aret --- - e fened stak and common stock in amounn that noold nuin. A joint plan of reorganintion rebting to ColoudmUte Electrie uin the (urrent upital umuure, will be pursued to suppon Amianon, Inc. CColoudof te") Eled by PacifiCorp Public , y the Compann anocipated emwth. Esnmates of future cash Sen ice Compan) of Coloudo ptSC(Th Tri:Sute Gencodun 00m in the prior 3 ear hac been inned downwarJ to redett and Tonsmiuinn Association, Inc. FTri State") and lowcr commabt) prkn and delenon of $114 ndlhon of enh Intern ounuin Ruol Electric Awociation was appmsed by the _ p reteipa reten cd in lW1 uther than lW3 as antiopated, bankruptcy coun in Fchnury ph2. The pbn 'pnnido for the
** H Compam's punhoe of 24 % megau ans of generadng awets and a Telcommnianons fuel rouarccs fer $260 mdlion, a 14 mcgawatt,304 ear ton- B hiq &Re w e (llc 7RIC Ol'/11770M . I PaufiCorp seeks to pnmon incif m meet cusmmer gmath in
*" P ng or a 99em power ule by Pauf icap o hbW g ;(c{, l,uun, w ns m nommd u aen n m nna ynta
>""I. "9"aus-d ~h bouwnacc-em _
an u e. e ning h npected to occur in Apnl IW2, nnt three 3 cars, through utihntion of a mol uurd " lost cost pbnning" In thh potest the Company babnto the goah of Whenner the Cunp.m3 has pmer avaibble and the rauket suppl3 ing the ontomer whh rehable lowest enerp fmm price h inurable, it makn oh uem3 sales generally to other udhdek Off* tem ules permit the Company to use nkting wurces that are friendl) to the eminmment u bile 46 increas ing shaholdet ulue. In nime of slower economic gnm th and and neuly auputed pmer supplies in a nunner thx Leeps changing regubtion, the Company recogni/cs tlut efficient dawn Wmn cmt for retail customers and punido edded asset nunagement rnpun grener emphah on culuating the Anibihty in meenn; changn in emtomer demand. contnbution to eenitts thn exh potentbl imestment is The iwuante of addi6onal debt, prefened stotk and common espeued to prodle. sak in amounts the will nuinuin the cunent capiul structure The IW1 trantuniti wis Arizona Public henite Company not dkad*WM k U@M MMd d-P U onl3adJed 350 megawsts of cenerrion upacity at a cost of e $ t i iit o it e D
.-_.,..._.-....--J
#" "Y "1" "~'"" '""'" ""'"'
iflNING A.\D RI:50I RCl; DI 1 I:1. OIL 1II NT fmm intemally rencreted ash Dows, and uherc neteuar),
\t Deumber 31. lWl, Nhku) mnunlied W nulhon tons of from borrowino under NERCO's temhing uedit facihtiet l
pudommant y low sulfur uW resenn. NERCO hebesn that the NERCOi management behnn eduing lines of credit and demand for law 4ulfur otJ u dl inuene mer time as unhucem- dncretion uith reyut to capial, cp nation and des clopment ply with the Cican Air Act sulfur duide emhdon knuutons. vending udi prmide them uith suf6cmnt fmancial 6eubiht) and upM nwun cua nceukiopaed requirenents NERCO he smfiumh increased in imestment m oil and en pmpcrt n with aquisitions of $4% milhon in lW1 and m .CO11.1113,/ CATION 5,
$24') nulhon in Im Due to the low prite emitorcnent daring JIIL IW1. NERCO mmemrated its explornion and desclopment Pau6c lelemm mmpleted tuo major project in lWI. The expenditures on drining prmpects uuh a high probabihty of Nonb Panfic Cable, a subnurine fiber optic cabic between the
~
mucuful mmpletion, in an effort to reduce in financial rnk- UA and Japan with a spur ktween Alaka and the lower 48 He locl and focus of oploution actnity depend on sncol states, began urning uimnwrcial uaf6c in Me IW1. he toul fators mtluding anticipacd pndact pnces dochipment and pmject cost to Paafr Te!ecom un $231 milhon of which $127 pmduct on mg auitab:ht) of funding and the especutio mf millmn un npended in lWl, A utelhte to replxe Puific imprming NERCON meull future economic ulue. Telemm's prior utt!hte w a placed in senice in jui3 IW1 at a Additiom to pmpen), plant and equipment of $2W milhon m toul ant of 59 mdhon, including $35 milhon paid in lWI IW1 induded 121 million in coal operations primarily for During IWI, Pxifk Telemmi opital spending mmhted of mimne opnpment, $U5 milhon in oil and ga opcunom. pri- $W million for hul eu hange operaiom, $107 milhon for long nutily for dochpnwnt of prnioml) AquircJ properties; $;0 knes, induding $35 milhon for a utclbte and $41 njlhon for imlhon in predom metah operatiom for mme dochpment the Alaka $put of the North Paific Cabk, $3 miikun for cellu-and mill expamion, and D milbon in other. le opeutiora and $16 mdhon for othcr communicatiom sub-NERCO's IW2 upiul evnditurn are npected to le out, ddutiet Pxific Telecomi IW2 mnstruction npenditwn are 120 mdhon; od and gas $140 milliam piccious rncuh, $60 nVI- npected to be: $M million for hul cubange operaions $34 hon; and other, $10 milhon A lage ponion of NEHCOi mdhon for long hnes $15 mdlion for ecllular operatiom and planned oil and tauapul npendaures are npected to be for $11 mi!! ion for other communiteions sdnidiaries nphation and do clopment of propttties aymred in lWE Padfic Telecom and American Telephone and Telegaph Inn mmmodities prices will wntinue m adsenel) affect Company FAT &T7 hne agreed to tunsfer 'o AT&T ihe _ NERCOi famre fmancial perfomunce b3 decreasing rn enon prmien of intenute r id international mesuge toll and wide and cash fWs. Aho, NERCO may funher wruil poduction to area telephone senices arrently panided in Alaka by long prnen e the emnotnk ulue ofits rnen n and wiH be reauess, lines Under the terms of the agreement, AT&T will pay ing plam for capiu! npenditun and auet dhp>dtions Pxific Telcmm a toul of $330 milhon mer Osc 3earx indud-
"E * "" "' """Ih 'd' of the upacity of the Alaka As a resuh of the shup dedine in gn prien in cady PN.
hun e pn.cceds from AT&T will be remgnized mer a NERCO npeta to remgnize a nuncah impairment opeme Gegen tunsition period to offset the inenue requirement un in oil and gn propertin in the Erst quarter of IW2, The dort all rnuhing from the jurhdktianal shift and the pmposed amount of the u nte-down will be lused upon NERCOi n al-
. regulcor3 ucatment thereof Oser the fneqear perimt Puific union of.its od and en pmpertin at cunent prices llowner,.
elemn@nuo a e se rn enue shonfa ! through redue-based on early Mach IW2 gn prices and other information tunentl 3aailable, NERCO npeen to recogniet a 6nt que- d""D"U"E *' 3"d "tC h^C ""d f** '" C""C5 EC"C ated by mercasing u!!ing mlumes. As a result, the changn to ter after-ta auet impairment npeme ranging from approxi-be implemented thmugh the agreement are not eyected to mately il50 milhon to $175 milhon. hne a signi6eant ads ene effect. He agreement is sebject to NERCO will mntinue to euhute the carrying u!ue of allits moleon approul and ctruin other mnd!! ions propertin in light of relaed economic fxtors, includmg prices
# #" *" E " ' " " " " " ' ' #
necised for in commodaies, capiul npendaure plam and I"* ^# I" "M '" acche tk pment uke of the cah potential asset dkpmitiont NERCOi mmmad tin prien pemenn a e me the agreement is approved. If this occun, hne generah dedmed mer recent scart Should thh nenJ pnee w eudm e nort-term debt. continue, the future remgnition of impairment eveme at cer-tain ofin properues ma) !nu!t. F 4 ( i 1 1 c e k F 28
in Nmenkt IW1. Paufi lelemm encd the omeb ,g7fyg 3g7jpfg tion of an ecemca ugncJ m Jamun Pol. to scl! m inteme tional telemmmunianorn subsidun- Paufw 'l cletom a cuL Net ush pnn iJed bs operaime actnitin las bcen PaufiCorpi usm: in opuom related to thn suiniJury .md contman to pnnun mune of brnmhtv. The irarme in unh pnnidcd by remtd thh an nonent, $10 rndhon. n awen held foi ule. opeutmn atnit:n of $144 mdhon or Iri m PNI w n prinun-Paufw ~l elcu,m a wckine to np.md m i ol cdunee opeu. h due to a $114 nulhon payment in,m 'uuamento %niopA tiom and (cIlubt mtuce through a(qmtnnt \ combmanon Unhhn I)nuict for the sale of power cntidements in 194. of imernalh cencuted t,nh eid uternJ debt meulJ be uwd I) nng Phl, IWI and 194 ush from opeutinpunitin lew to fund thew sopiisitmm.1:qtor) intan(n bs Paufn dnidends paid prmided fm 9W,1019 and 12Ti of uimmx-I clcmm nu) be tonudacd if a large autuidoon at uned non npeniturcs respenneh.The reduted mmuuuion an. trage Inch are a residt ofinuened mmuuuion openitures of $152 milhon, an inuene of diudends paid per tommon fflNIXClllAfki/C/S share to AB tents from 36 tenn and an inacase of 9 nulkon Pl S'im estmcnn at 1)acnAct 31, IWI du kned $133 mdhon mmmon Ourn ounundmq The redation of 5W million in flom (be prior )CJf due to a rediwuon in ricM buhinCD AInih Agonnb ly3ahlc and acdued habihties and 3 tof tcsp>ndmg from mmpuen lening and an inacaw in offIcase equipment $2! rmlhon redonion in Paafk Teleconn imennir) are pn. reclawfed i ro other awen pnnurih n a rnult of ain oft rep
- nurd) related to tbc Nonh Pacific Cable trarnationt souont The inuene in nonunia! firuntc auch h paniAh 1)cpreuation and amonizatino inacased 99 million pnmanly reficone of the nanonal cwoomic dalme, ont nouhh in the due to the emu th in Ni:lu X Tml and gn opeutions auation mdent Pl 5 is fouaint m utnitio on turnxnorn mmpicmcoun to PaufiGerphoic busmewet fXilS7/NGAC//l'I//LS Na ush med in unesting asitin in IW1 of $13 bdhon u n kA 7/XGY Cll IXGEX El SI 'liAllillR/l N largely atu;buuble to construoion evenaturn of 1912 nub in \pril Phl, hh i Im ntan Sen ice p%J)W da ngud- bon and awen aupured of SM milhon. Awen acquired cd the urine for wmor debt of Inner Pmifiu
N auluisition of a oubfired generating plant in shon tenn debt. In hb PN1 Sunded & Pmn Gnpousin An/ona anJ purchne of equity interem in the Wpidak coab FM P"i dow ngaded the sener debt urine of loner Pe ifiGirp, fired geneuting plant.
NERU) anJ Pl S fmm 111$ m IWlb for loneterm debt and , Imm A2 to A3 for shonacun debt MP aho dounguded PAifw {UXG.77.R1/ I)fl!T Tdeu,nn urino for lonetenn debt fn m A- to IWlb in addi-tion. hhi and MP exh placd NLRUTs debt udno ""spanici torwtenu dek cWuding finanaA Sen nes under rnica for powible lunha downgade. Nather hhi I""#d'Cd "E"" d"'i"R M ""'U"2 P'""'"h "I iwunn of menonaenn notes mmmadA paper and lion nor %P changed in unnrs for PuifiQnp roumo under ncdit greements The Compann debt rme PxidCorp bebnn that thne t hangn m utmp ha c ads ene' $1!5 milhon. Protec h wcre meJ to tetire shun term debt, to 13 affected the auitabilit3 and unt of debt for these sub- acquae Choib l rur 4 and to punhase equit) imerce m the siJieies to uning decreet While the subsidurieuuntinue to hda 4 & Compan>i share of the M odak 3 debt, hae accns to the shon and forgierm debt mrken, internt uhkh had been recorded n a capiul lene obligation, un msn are eveurd to inacne and any funher downgudine retired nith the iuuance of secured medium term notes muld ronin their access to the mrkett MROTs debt inaened $220 milhon to fund the xquisition The Companici hne ininned actiom to con #hdate opeu- of oil and gn pmpenies, panialh offset by a capiul contribu-tiom, dnnt unJaperforming awen and mnual opervir't tion of $1% milhon horn Inner PacinQnp, SM nu!! ion from cosn The recent uona (hanga necewate a compchenske the sMe of a en supph comuct and $28 mdiion from coa con. rnic% of the strategic objednn 3nd upf tM struttufe oIlnner Uxt setMHenti Pxtfle 'l clCromI dCbt int leawJ W rniik>n PsifGrp and in subsiduriet in ajJ. tion, the Companies ui!! to fund payments on the Nonh Pxific Cable and a replxe-continue tc reucu the carning uluc oithen propenies in light ment utelhte. fmanciA Senkes loneterm debt dcocned of releunt emnomk faam tindudmg the prico recened for $121 mdhon, refleuing deneased imestmenn in fnunce commoditied upiu! npendaure pbm and potemid auct racn aNeund merened shonacrm debt of b4 nuliion. l- dnptsitions If cnndinom u anant, rebred impaimwnt eveme uould be recorJed. r s c i r i < o n r 29
sm il'M ui la tu %b t4 0 Mfti P M IW1 pf#1 19W 19h5 1%7 19 % G Pl1AllLVIION Cr>mmon equin $ U12 M i i.20X WG $ 3JU7 Wi $29% 3W $ 2,901 41's $ 2,724 41'l Prefened sink 142 4 142 4 242 3 246 3 247 3 244 4 Prefencd stock subyett to nundsor3 redempoon IW 2 W I Su 1 56 1 56 1 67 1 I,onnterm dt br and upiul lease ohbeatnm 4h20 Sa 1977 4s 3,M7 46 1 441 45 3,3'/5 47 3.3W 51 l mainal herutes' _ . - . _ loneterm a bt ;74 6 U6 8 8w 11 % 12 551 8 239 3 TOI Al, 5 9.1W Iwi $ a.272 Itm i7344 1(m $7M IWT $ 7.l',2 1(Wri $ 6,713 1(KG (,0.11110%I(il llY murm a u"L At Daeneer it, Iwl, the 0,mpam haJ $W mi!imo of lint defined eqmn and secured debt. linder this prosiwn, appnni-4* -- Monmc and G &tcul 'ltust bonds rl Min reentuvd w ah matly $13 bilhon prinapal amount of addmonal umecured the Sn urion and Euhaner Commmion (the "$1 CN. of debt cou1J hac been outstanJmg at Daember 31, IW1 m __ uhah 5: 19 nul, n on with nternt fees from 6, to 8 3,l ucre luum of the Gimpanyi IM or preferred stock is limited mued durmg Janun3 and I cbruary 1992. 'I he png ced' by canme cmerate mi fundabic property panhiom of the were used to rcJute short-tenu debt. In I chruey IW2, the n,mpanyi montage indentures and Artido of incorporation.
;sno Dimpam temed $20i milhon of i MB due 2mu to M4 and l'oder thne proviem and at current interest utet appmsi-bearing mtcrnt uto hom 9 IN; to 101R in March Pn2, nutdy $2 bi! hon of addaional i MB or $23 bilhon of addaional
'"* the O>nipany tenistered $203 mdlion of I Mil u ah the SEC f"' prcierred stock could base leen inued at December 31, lW1.
iouame in wnnanon with the aquidtion of assen from llou e craenain of the Companis ceda facihties would hne N Coloud+l'tc. An addaional $3 milhon 131B u dl be moed m hmited additional burniu ings to appmimately $%5 million.
, ennn tion with tha xquaition. g
'% WilONS70CK Md"h 'I 8") P#""" "' E*"P '4"I'C' M " """ "I O' d
Companis aimmon shares or if, during any period of 14 con-o . .. . . . . . ... . Deing Phl, the ( hmpam iwoed an adJtonna19.2mfdl shs:t snutise months indniduals who were ducctors of the
% M M 89 W 91 comisting of 6.owiun shucs moed to the pubht and llM31 Company on the fint day of such perimi(and any new direc-shun iwurd throuch the DkidenJ Reimntment and K Pim nin w hose dection or nominaion un approved by suth indi.
Emplo3cc haine and Scott Punhase Phnt The nel proceeds siduah ar.d docuon) tease to constitute a majority of the of $1W milhon ucre used to repa3 a l union of the Gunpam's Boad of Dircuort l'or additiond informrion regarding bank shon. term &bt and foi other mqurac pur;nsn. The Compan) ucdit atrcemenn, linn of uedit and other short term lurou-registered SDWUlto shun in August pnt, of ubith 1.05090 ing facihties and rdated limiutiom on borrowings, see Ltc 4 shan were inued to the pubht danng lW1 and 431,300 > hen to Consolidaed l'inancial Sutements in Januan lW2. Addaional sharn me npccted to be iwurd Jcpendmg on nurket condmons and other fxtart fXIl.17/0N Due to the up:ul intemhe naure of PxifiC<ap's businenes, [3RIJ/ RRill)S70CK inDxion ma3 hne a significant impact on repbcement of prop-in Augmt lo91, the Compan) iwued $1m mdhon of its $7.70 ern, acquidrinn and dnelopment activities and final mine L Par Saial Prefened Sak, subject to m.mdaar) redemp- redunation. Ihe effects of in04 tion on the Companis utihty rion on Au ust is,301, for net paccds of $% milhon. The busincun oc not sigmficant to ongoing operationt While the Company registered $2m mdhon of prefened statk with the tre.nuking pnxcu gno no recogration to the current wst of ' NECin janaan IW2. rep!xing pbnt, lused upon past poetices, the Gimpanyi util-in busincun npect to be ahued to renner and cam on the hl'lTel/R17/ONI.111/7S incened ost of their net imestment when replacement of fadhtin actua!b acurs The majnrity of.NERCOilong term The CompanO Anido of inwrporxion hma the amount of .,
,. (195 (ontrKb prM10C ful Nte adjdstmCut OsCf tirne of cCruin unseclRed &bt ountanding to the equhalent of 36 of total _
mmpor:enn of revenue either thmugh% . , .o mrmubs or P 4 c I T i i o R P 30
dirca pawthrongh of msrt These loretenu wnnact pn* 3,gy);g.gggg .75 nom help nutipe so me of the orna of muenine tmit a prh.n b br [Iraif tlM rnetAt ud and gn nin Gwture durnantJ- Panfinirp n cominitted to prnen ing the rieural ern ironmerit h mer shon pen 4Js of tune due to the ute of in0xion and and rewuren uherner the Gimpanin opeute to awure the other facton su mb;cct to wntnd b) NERCO. Lineterm heahh and ewnomit uuhn of the aren where the3 wndast inninew Cootem for the endn,ntnent k a major forte [cCol'NUNU/ORINC01/fMVLX shapmt the Dempami untcse goah and un mtegul pan of The Company hn not gt aJopted the sutement of f iruncel "*'""P""""'""^" I Auountinz SundeJi N AN") in Atcounnng for loa,me During IWl, the Ennmnmental Procedian Agency (the Tnes' uhuh un issued in I chnun IW1 and mpenede, 1PA7 and the sota began the proccu of implementing the FAW 'lhe sutement icquires comparun to use the Ibbi!ay neuh an. coded Clea Air Act (the Wi3 Through the ongo-method to reneu the in effeu of thfferenen herucn uubic ing rulemaking pmtew, the EPA will inue regulations to inwme and preta finanualirwome and to aJpt defened us unplement the Atti atid uin panninm; appone and mente - habditin or nsca for chango in ta ren m d t pi,,d , sii a pn gram of sute.admir.iucted operating pennin; esubbsh a law is enamed Doe to the primani) seco!eed naute of the nmorol cruisdonullow ante todmg mtemand require neni-(lornpJnyh binmewch adoption of thh Valeneent h not I"r ng of p!Jul cluiwiom npeued to hne a nutenal effed on its rouin of opuations. The Compan3% geneuting plants born lowwulphur wah The Compm3i unretarJed defencd ta habilido and wne- Major conunwtion cy enditurn hne already lietn maJe at spondmg future recciuhles from tuuomer udi be rcwrded many plan to redute sulphur dmdde eminiom, but some upon adopnon of thioteement.1 he Companin ec wnsider- addmonal npenditurn nuy be naenary. The plant mmt ing cely adoption of thn sutcment whkh is requned to be aneued by the kt is the C(ntuha plant in hhmgton. The adopted no iner than 1M Compam n stad3 ing how to bring this pimt into wmpliance m a (Mt-effecthe inJ!mer by thC required JanuRy 1,2t(M 0N7RT/lRE1/D7/MNT/ US wmp!unie dedme. smte the Aa don not nundae the me [OHITR THANPENSIONS of a paniadar emiwon redunion inhnolon, the Cornpany The 1 macial Aununring hundeds ikurd ha iwurd i AS ig ud hne the Onduhn ui select from soeul posdble comph.
"Emphaen' Aununting for Po3netirement Benefas Other .uwe stateret Than Pensmm? ~1 his waternent u di require actrual of pwtre- The greenhouse tfren is bebo ed to meur when teruin tace tirement benefnuoth as health cac benetin, during the sees gnes in the atmosphere top udant hen. l.cadmg wientisa an emplo3ce proddes sen ket 1.ffeak e for emplogn retirint and dimandogisa are cunend3 debating whether the buildup after December M, Uni, the Comp.mics hae rnised their of thne gasn causn umming of the cathi dinute; houtver, retiree benefit pregums The tohions induJe hmiting the no comensm hn )ct been reathed. ReguJler of the outwmc amount of mbdd) prodded Ior medicM benelln, hndting the of the debate, the Company opects to scarth for cow effectne ,
amount of subsidized hfc imnunce benefits and thandng the ways ofofhetting future cubon diodde emhsinnt un the medwal plus integree uirh medwee for all ictiin! Ancul Supufund 4tn hne been identified where the employen. Bned upon the nur recent anoma! quJics it h Compamn hac been or may be doignned n potentially cuinuted the Companies ha e a tundrion obhgation 1;abihr3 of resp >mible pamet in suth cases, the Compmin rnitu the
$240 million. Thn sutement a! Law for either immedute recoe dwomunces and. uhere powible, negonne with other meion of this tumition obht atn,n lubihn or amonizaion of tha ptentblh rownsiblc paties to prmide funds for dean-up
!bb;hn mer a period of up to Mert The Company run seek g ;7 y.c w wrim actnitin, in adJition, insuunce regulcon appniul to defer the difference between net period-rnourtes ee redew ed and imestigacd. Cmn awnebted with ie wst and emn intuned, for future cuDedian imm utepner' the dnp ution of thne maten are not npected to be nuteriA The Compm3 hn not dedJed which options it will use for m PM@ wnsoLJared rnuhs of operaions.
rewgnition of the habihn. The Compnin are wnddering cJrl) adoption of this statement, which is required to be adopt. ed no laer thm FM 1 1' t s c I f i e O P P --- l 31 1 i
1A LEC1RIC Ol'EMll0NS Ma l F M'd in 11IM s,lfik1He ii % I 't a
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. ~ ~ . _ . _ , . _ . _ _
Iwl pm pe9 19 % Iw 19 % Nm> u'u RlXENI 13 R mlenvA i rd s i m6 5 6464 5 61.1 i M7A 56319 3'; l ', 0,mmuil 517 4 5m 0 517.3 D,.5 5214 WiO 2 - hui-nmd 674.9 Gu 670.6 G2 6KO 6n4 - 1 (hher 34 2 4; 3(2 42 6 453 413 - is) GentrJ u!a 1.m.3 1,%U 1372.5 1M4 1,G21 1.wl6 6 ! 1
$. des for tcule - f:rm 264.7 2m 9 l'+ 0 150 S 105A 137.7 26 14
% Aes for resAe - nonfam ;99 7(4 740 s74 M4 9.0 C4i (2)
Sacs to ot her ud!ko 324 6 2n3 269 ; 2M2 191.5 29 0 13 10 0:bcr W9 ;15 33 9 11 0 3U 3; 5 14 1 TOIAL 2,2;18 2,l k B 2.175.7 ll;9A 2,07H k 2.0W 3 2 1lllClRIC 13lWI % Ol'/ R 17/0XS Dcpreuminn and amorwanon 2%D 2R4 22b 231.4 230 4 212 s 9 4 orm e m m. Opcu6nns nume nam e ,md 3.p . ._ . _ , _ NCI l, ! l b~I l !l b lM 4 I N'M !M' b l -
'l O'I AL l Au s I AW5 IA247 1A14) 1.3270 1.3WA 2 I c gTer INCO\lE l RO\l ul'l.R VllON$ 70 0 ,4(O 755 0 741 x 7;l.K 6%? 5 4 x* -
Nirl ]NCOsjt m 3. ; 3%) 350y 32y7 31u 356 s 7 l'RE) 1.RRI.D DIYll)LND Ruf IRI \lLNT 2rd 21 =9 21 2 2a7 216 h6 22 i7) p - $3y; 5 2;7o y
;ggsjs m coyigini-lp) w g w,o
, $ 329 n 33m o 3 29i o 4
((!cntdiMc assets i 7/M i 7.027 i 6.724 5 6AU i 6Aso 5 6,h2 9 4 Cap >tal spen hnt i 7% i 4;9 $ 344 i 265 $ 2% $ 359 73 17 no___ _ _ _
. g 9g, 7. ,
g yg g y 3 g, f_, p OPE RNilNG ITI'ENSEs M' l'ud i 424 1 i 403.; i397A i 4111 $ MN i 34 0 5 3 l ucl 4ustment 5 - i - i - i - i bi7 - - p:::, :::::~r :3 l'ou er pon hneJ $ 17t,4 $ 14V6 $ 133 3 5 81.1 52917
$ ;E5 i 242,5 i sl3 18 16 d)
Other operanons i 24 G $ 259.5 5 271.1 $ 2531 141 L . .\linteruace $i&6 $ 151.2 iIM7 $16i0 i1353 i1514 (h d)
% %, n m % y k minhtrM sc and tenerd i 119.1 $ 1.M5 i13i7 $lh7 i 15%M i 155.5 05) (5)
O Rnmn Depreduion and anonianon i 360 52R4 i 22b 52314 $ 2144 $2118 9 4 0 Ino r e fem Upemm '[ m.s other than inwme t acs i %9 $ 10RM i %7 5 92) $1012 i 915 (41 1 0lom * ' "" ha & i has i ING DVI i144 i239 $ 1993 7 (2) _ _ _ ___ _ inye mn _4c, g m33 3 g,9) ; ty) $ (y y, , 3 g73 3 gg3 g 3 IN'll RENT Di'll AIRED Al l DC-equh) $ 73 i K4 5 las i 7.2 i 9.2 i 17A M d5) Al l IX :- dcht i 19 i 14 0 i 12 2 i E7 5 7,9 $ 15.2 (44) (12) ENERGYS\l.lM/6+ & h Resider.:ial 11,354 10.990 10,765 10A91 10.100 10.101 3 2 Commcnial GA16 9,101 RN13 W 8,330 8.024 3 3 inda:rul 19,322 19,N7 liq INUNS 16,729 15AW (1) 5 Other 692 UN 750 711 73 676 - - Ger.cui sdes 40 'M 43.2M 39.1 % 37,953 35N4 34.300 1 4 5Acs for reuIe - tirm 7,349 6,147 5341 4M1 3A;0 4.514 20 10 san for rMe - oonfirm 2,446 3323 1115 4M 4!M 3fM (11) (4)
% s tn other unimn IR295 4A70 s3 59 N397 ilB s 177 9 5 i OT \l . ;) ON 4G5x 47,7;5 4V50 44 017 42A77 3 4
.P '
. F .i 'h k I3 $ ( L Ik -
g 6i 1 I l ' - - " M ik scJd uf:he ja ha WI Jnj G c d opere b u M nn nJ kmunt (ku bp mt on ibcmM41 1+1 cJ hr p.n h.nc nf a oc ; arnt m W Ceva u m) A 1 ro a&J V I emy 4 M N e; Wei m 1 *1 N I m ro;ut. '
-- r s t i e f ( o is P
l
- - + . -
1,1C70/(% IN/ /.I / XE/XG /11RXIXUV + l'uct npcnu mutawJ UI nulhon or ;'i due to inacased Pauf>Lep tt.ncratn power at uuhfecJ and kdrocicum "d """ "d (k""O'"'"E '" pbnts and rehes on a tunsmissnn and datnbutnm nctumk to + Other epcotivtn experne deuened $10 mdhon or 41 pri. sene rcud and uhnkok cow men ihmuchout the Pm ific n,xily due to reduumns of $15 milhon in rent npense for the hafthwnt, buks Yidntain Jod dCwIt hauthwnt reReun JFe%I' lush ICJsed NyldJk plant and N nulhon in a!)owanle P,nifiCorp aho o!fers icnol cusromers a unct> of sen nn for doubtfd acwunts partull) offset b3$12 mdhon for dk. enwougmg enern effnicno. tontmuance in 1%f utdits aHowcd under the l'uh enero I arnion depend on cffntenth ard cwhonotalh bala! King power-supph rn,urto with wsnencr demand, unkt) torn. ' \bm?crunte npense decrened $; milhon or 3:1 due to the nossion puttkn; regmn4 comomk umdmont retention of tinung of tummhsion, dntnbution and substation maintenatx e. nmnkipal fumbnn; wuthu uruteon aficumn watomo + Ushm M mM m dmW D da uwe and h 3dn.c! cum pmihanon, f uct onts whoicule Enn rr - of IW, due to lower rnene requuements for insuunce and Alloillyy.flot /t twcr nmLctint suu ns,,mJ the wst of dcbt and equ"b & d Mmu W mSm be m Wm h MIM) T@in
" "'k I "' C d'd'"D' l*lllCIXG %lR111 G) tid!H% \ oi Lli04 UJIM LU
+ )cpro a on and .onorti/ation npctne irarencJ Cl rnil-IJufl(Iorp n wniqutted to inamtamipg stjhlc prRC% with hon or W pnnunty dac m the autuisioons of mterests in the any pnte mucen nude aber UN2 hnuted to the ute of M ud and Cholb l' nit 4 rencuting pbnts m0ation. I rom Jamun L 19M thmuch 1)ctember 31, phL the Conipany adated pmn paniin reud untomers by Mon f.,,ny,f3gy4g yo,,n,dH!rridlia <M mdhon,or ll'i on an an'nuh/ed lusn i hcse deuencs ucre nude Pwhic by mwcr supph wordinanon, insconte un
' I"'"*' I'"* "peranons inucascd $ 4 milhon or 51.
{.____e L ings lower internt utes and utak fonc reda<noat i uture + intere i cxpense inucacd $14 mdhon or Mi primarily due cost redutoom ne npected n be reab/cJ throu h proten to merened Jebt ounundmg due in pan to the aujuiutions of . 3 impan cment effh cnun. bui at nat npatcJ to be on the intctnts in the Cholla l' nit 4 and Wpdak plann, partiaD3 off-sole of ihme expenancd m er thh pcnod wt bs the c0cct of retirement of hit her mtctnt ute debt. I' . .
. y
+ internt opiuhted deucased $7 million or 271 due to 1971 CD11/illll1170 IWO l reduced wmtruuion in pmgreu and a lower east of upaal z
^
~ ~ ~ 10 k an vowad!M md!wa SL + Other espcine dccrened $12 million primarily due to
+ i icncui ulcue enan inucacJ 27 rudhon or l'i primei!3 dcuened lown from cogeneution pn>jects a a rnuh of j____ _ p du to inac.hn in residentui and wmmercial untornen and impios ement in opeiating resula and a 1%0 ulusion adpar- % M M m w 91 cusume: ouge. panu!h ofhet by redated industrul Libuau- ment loss, panially offset bv the effeus of a $3 milhon settle- IJshoo %-i nhti, hour uln w!ame to Northw est w ood puduus nhtomers ment in lWl of a lunt4tJndmg dnpute oscr treatment of g jmhns) nu nnuena in tenninued nudear pmjects ihmasi
+ ha!cs for reule to other utdnies merened $4 mdhon or N lbJcnM lYi (kihnutt-bout ules inuened Vi! doc to a i;l mahon + Pnsion for mwmc uses increased $13 milhon or d due muene in hmt term fmn wntuet ulet The inacaw w n off- to inuened uuble income and the net effect of fnoulde ser in put by dcuened wwndan u!o due to competioon defared tas adjmtmenn of $12 million m IW1 wmpacd to from inueneJ cnern audable from IbmnniUc Powcr $Pi milhon in Um panially offset by a $5 milhon fawabic tas Adminhtution ritP\lin erh lW1 and fmm ge-6 red rencr- wulement in IW1.
cing rnouryn e a rouh oflow natuu! cas prk o in lW1.
- Preferred dnidend requirements ircreased 55 milhon or ojesempm inaradfl0 mdin y n 221 due to issuantewf $100 milhon of prefered sta K in Iwh (ktober lWO and Augmt Phl, panian) offset by lower utn
+ Punhned powu npenw inacned 327 milhon or IW due f wi se referred stock to inuewJ punhnn of anubble Luct am h dnpow 3 a imm llPA, higher rates for tenain fum partiuse wntuus and muened BP \ utn edean e September Phl.
P s 1 F 1 ( o II P _ . _ _
- 33
a l.ECTRIC Ol'EIMTIONS s t an ut il3R mu IW to le (on pund Pct cnut( snnd tvil 19M 1989 1%s 1947 19 % www w. + LN ERG) NOl! KCL M / Coal 78 75 75 61 77 (4 -i 4'i ll 3dm 6 7 S 7 8 10 (14) 00) Other 1 1 - 1 1 1 - - Purt base and cubance wntracts 15 14 14 11 14 25 7 110) Nt'\lBER 01 Cl Klu\lLRsI& rad) Residential Im3 1.076 IJva 1947 1,037 1.029 2 1 (hmmercial 146 142 142 140 138 136 3 1 Industnal 16 15 11 12 11 12 7 6 Other 3 3 3 3 3 2 - 8 TOTAL, 1.2;s 1,236 1.21x 1,202 1,189 1.179 2 1 Esinci> soi ace ""ena e'ne '""" mge Ih4/ 10,4(4 10,2M 10.209 10,070 9,750 9M3 2 I Wh)m Residenti.il J)erage annual W.
~~ ~
l^
~l reitnan per cmtomer //Wlan/ 612 fh5 613 625 617 618 1 -
Residential tes enue per ku h 6el 5.h 5.9 6.0 6.2 6.3 6.3 (2) 12) m :. h AI ',
-4 k 4 i'
< .> Nlll EN OF !.INE j . jy] i Il j1 ,[ Transnuwion 14)KKI 14/A4 14.?(0 14,600 14.600 14.6(O - ~
j i p )' t, 3 i I i ..
!4 s e t
Distribution 44.4h0 44.200 44,2l0 44,100 44.100 43,6(o - - wq -jp' 4 l. M SWl'E%1 PEAK DE\ LAND t.lkpmarN jdM q$ dd Net system load) - summer 6,405 6,407 3,978 5,939 5,626 5,407 - 3
-winter 7,019 7,623 6,875 6,267 6,246 5M3 M) 4 4e$ 4 - Jp q Total tirm loaJ to - summer 7,63') 7,109 6.741 6,503 6,833 6,0S8 6,092 6,513 7 5 y ] h h j g -winter 7,710 8,417 7,559 6,725 (8) 3 l? @ 4" N I / b)TI L\l CAPAbilflT(.lkycatts/d
[4 3 -j # - summer 9,6'9 8.551 5,570 8,923 8.465 8.434 13 3
/i ;i a j j'g y
-uinter 9.316 9,141 hfe4K 8,811 8.419 8.4h 2 2 5 [., R .
.g / w hJudcudmem ub f n seule ita bdujewif mem fkm ub fa reule M(hined and tonuxnul gr.cunng cgaNbn anhc tac of nucm firm pcA o 4 ll.A ..h 3 a ..
% E7 M W W 91 [],E(7 FRIC ()PE R ATl()NW (;()Al . -\('TI\Ti lES O twhase & Eutunne in addition to ctul actinties by \ lining and Remurce Des clopment, Electric Operations has interests in coal mines that supply coal
(""'"' culush cl to 3 afthated electric generating facilities. Coal infornution, included it Elettric Operations,is as follows: O llu!m g(y miiow4 Dot tusiron litar u g ,, pm p, IfftCDl4(C hia M 1991 lYo 1989 19M 19s7 1956 re ,n r,m + Fuel espense /Remmpkalar! $ ?47.1 $ ?22.2 $ 211.4 - $ 219.3 $1%6 $ 206.7 11 4 4~c Depretiation and depletion 22.5 20.0 17.2 16.2 16.0 14.4 13 9 Capiubpending 34 6 80.9 26.3 18.1 23A 34.5 (57) - Iden6fiable assen 413.9+ 291.5 237.0 242.7 223 2 224.9 42 13 RI SERYLs AND PRICE INI OR\lA' LION (& wands ofw/ Prmen and probable rewnes 440A o u 27940 311,000 318#0 341A0 350A0 58 5 Amounts mined 14,568 13,200 9,2in 83 0 7,No 6,300 10 18 As erge runsfer price per ton $ 17 $ 17 $ 15 5 17 $ 20 $ 22 - (5) m huuaed m nsn of autund a mann end pmen and pr4able reseneunhe Em Bodyer nane e.d we einstwed fr.m
\brdopod Rmunc lbehenent on lben6ci 11, IW1 r s i i t ! t e t
- 19% C0111\lRIKl0IH9 f.amiymeilstiaivruwl15 mliww 17.
Rimrurie rued /9 mi!/mt & Inwmc from operations decreawd $10 million or 17. 4 General ules revenues dettened $9 milhon primarh due 6 Interest expen e huened $9 milhon or 31 primarily due to the effect of pnce reduuions gurtia'l) offset by inctened to a $7 million resersal of accrued interest on presioudy set-residential, commercial and industral lulowatt hour sales ml. tied coal royalty hsaes deucased amorotauon of refinancing ume, deucased regional uedits and new customert costs and lower interest rates, offwt in part by higher average 6 Sales for reule to other utihties inueded $19 million or 7% (kilowan hour sales increaed 110 primarily due to new firm
- Imes fmm equity and other in estments inuened $7 mil-power contracts. Generally improsed hydro lesels and hon prmutily due to wnte-dowm of irnestments in cogenew incened thermal generanon prusided a greater amount of tion projects _
energy to meet the tv4 demand.
- Other inwmc deoened $11 milhon primarily due to the Uteady aymsiwumiJl9 milkw I%. * *II'G' "I 'b' "I *U* * "I """'i"0 '""' 'MI"R * $1jj } $ jy9
. , power cubange agreement and the recognition of income for g
+ Purchased pmer expeme inuened $M milhon or IN pri- uul seulement liabihnet partially offset by a $7 million gain in h;gffg m nunly due to inuened prites for enern from cogeneratiun p/O relating to the early payrnents of refunds due customers, and other new sourtes, reduced regional uedits and a M
- Prov. . mon for inwme tnes decrened $26 milhon or 14% pri-innease in kilowatt hours purchased. Deucased neda.s rnanh due to an $18 milhon adjustrutnt to deferred tnes and allowed under the Regional Act increned purthned pmer deceded taabic income. In prior years Pacific Power comput-expeme and general sales resenue $6 milhon each, with no ed deferred taes generally in accordance with the require-effect on inwme from operations, ments ofir3 primary jurkdiction. In 19'0, Pacific Pow er adopted
- l'oel expense increawd $6 rndhon or 27 due to incened a jurkdictional allocation appnuch for compudng defened taes thermal generation resulung from increned enern ules, par- and Eleuric Operatiom rewrded the resulting adjustment. ,
tially offset by a low er unit mst of coal. M
$ Other operatiom expense deucawd $12 million or 47 pri-marily due to $6 million of nonrecurring adjustments in 1W9
- relating to the l'tah enero balancing aemunt and a $4 million N Reddential reduction in 1990 athenising and other mhtcllaneous ules 13 cmmercut expenws M indmirW .
5 Mes niother Naics
+ Maintenance expense decreased $s mdlion or M due to dettedes of $S milhon pnnutily resultingimm timmg of may>r oserhauh of thernu! plants and $? milknn rebting to distribu-tion plant, partially offset by inerened expense for mainte-nan (c of adminhtrathe facilities
- Adminhtrative and general expense inerened $4 milhon or 37 primarily due to increased employee benefit emtt 6 Depreciation and amortization expense innened $8 milhon -
-or 31 pnmari!) due to inneded investment in unhty pbnt.
+ Taxes other than income ines increded $4 million or 4^f primarily due toincrened property tnes.
l t i 'c P A c I r 1 ( o W P _35 -
- . . - - - - - . .. _. a.
1 flNING 2 RFmi'WXIJEVEIDP3IEM m t i r m oi lv 41 Un l'* im u w
. , m r.a fett, b o .A
[Vf[ lW pH pM ]%' ]% t,, , ,, R. Kl31 Nl 13 (m A.d rcJum < as i4M i 4152 i ;M7 : 3v3 i 191 - i 4243 n l'; Comi d cJ ue :n m hi; h4 A s40 M1 W7 (35 (21 ( hi; J ra, 277 214 s lil 1 99 14 1 45 31 131 hcuous tm is eJ i du 91 4 111 4 124 7 102 4 1113 Is 0 (14 3
'l()l \l. Wa 27.' 710 s u,1f M23 544 7 11 9 L\Pi\%L%
Ik;uct buon, dep'.n a nj m-m onon 114 5 1US %/ ,o 34 6 41.9 42 % ( Yeran ins. nonen m.
.mJ o+er (447 *2;2
> 477 9 4;51 4;7.1 421.1 3 5
' g' " -
_lolAL ._. _. _ _ _ _71;2 ._ _ %o?.__ -_7 6 6 _ A 5 512 6. _.__11 7 _. _M 0 4 11 10 IM .t >\ll i Rh\l UN R \'l10\% 14 4 167.; I;42 14'u 120 6 1 11.7 10 7 lilM)I:la i lil l'l /D/till XI TI N U\II CI "U l I "O 60 1 515 4 8 y , ,g,m \lmunn ectest .uJ oact 15 4 til 9.9 h7 % ;5 2 23
%tu s.de cin - - ;S - - - - -
Im . I -\lN%% COVi kiBl ~l loNV i 67 7 i 6; o i Mo i w% i ;42 5 52.0 4 5 IJconfubic awen ' !JuN i LW i 1,N i I,172 i %56 i 775 24 21 sc .. . _ C p o! spend e i ud i 411 i 211 5 373 5 156 i 82 72 53 NonJ cr of cmpu en G 12 ' 23, 2.l% 2.37a 2.231 2,144 C2) (41 a ) \l. /!H
, gf l%cn anJ prob M inen es tt/,co,m w 1.ol s un lpu im1 1.03 Cl) ist
%old1%du edilh m e!! 2\142 27376 l4?u 23,767 24 %57 23.W l 4 4o -
Whm LncJ for rn.dc elb,. /a W N12n 7,4e 7Ss 5377 6.157 (3) 5 b crrce des pot c pcr t in i 14 ;l i 14 2; i l i u9 i1424 i 16 47 iINoi - (5) (; \% I lh', d o. ' 'r
~o _
DP_sjd hm a rcenes u ! Umdoced r,Aun 10; os3 43.471 Me.39 32L31 SG3d M 6;7 %.W 8.F 19 4; 133 Iw L _ __"_ _ ,~ - Pun t.ned tar rna le 15,214 13324 13,9W 2n 73s 12.473 4.53s 1.327 50 9 ' o u_ -g -~" vs ne un 41 bcDJJs.dn pact perDRf 5 l.51 i I.53 i l b5 i 1.7; 5 l.Il h I 71 (lb) ()l (;olin/h4 a % m
,,M y u.,o Pnenudp'& unn 2.f m 11 9 L4N L741 1,402 9;o D, 22 rj i ', mu" ~, '
;L } ., m e t a .+
Amounnouned is0 Isl 177 143 lh M til is sold isn 1s4 pn 139 153 110 1 11
%ll A kkiJLw % buw l'rmen and prob.de rnen n 24,100 3,23 (4.744 4s s75 4:SC R101 (4) til)
.\ns na m ncJ ua 6.2 % 6.2sn 430 ; 003 4,117 (45) (4)
%!J 3.3o; 7p42 6.100 5 01; 9p44 5,2;o t;2i is b ruc.e u!n pnt e tsr o mte i 4 00 i 4 42 5 574 5 692 i 6 96 i 6 69 (h (10) w._ , m A wthen4nfnt& - l ou r 4 tm tm y.en h % c .cw 4 m) sWon 1 um on a q tw i a bu O t b lb u her U, IM M l ca y u n(f s [n: lla ' 1.;o j Q e s k v l rm s rf lN W on H of p i er. nJ ;w N ie tr<n c; me
'!1*hD13 D ' }.Is t 3 ( I[t 6 T4 iL \CTORS DTI.I TNCING ll tRNING\
imu IW1 nruul m anJ siher poses significantly deued hl'.N(1) is a C.ituu! rewmKC compaD\ ulth interna m (va! N LRC()\ 1(N) operating resida 'i he sharp dedme in natual rdmee oil and g.n pc,Jxth.a and espbanon and precious y potn wntinued into 140 as a rou!: NLRCO expecn tn e coh mmu and op!o<ah. hicn for thne mmmodian poc ,1 net low m the fint qwter of IW2 and esmts to rAe a are cghcal and L.tume o the Jomnne and uMJ mairit wine-dow n on cerum pnipertin See pne li ._ P s c ! ! ( R P 4 s
l991 CD1ll'.1Rl;D 1H 19WI 199f)C011/i1RI D TO 19\9 Rww iva n!!U m:!ive w I11. R w n i n a.alSiiirnilwn or IVi. 6 ( Ad rncnon muened $21 ndim or W pnmard3due to + Ou! retenues muencJ %7 mdhon or lW due to inuened
$2K nuihon m ro cnne from a uul tontua c: dement. solume wid and a brcher nerne san prae. The inoene in ECUW 'Aes pnte un due m inuened ub of hda poted 4 On and en in enon inucard $M nuthon of Fi due tn the uit of a hine-tcrm ga supph ve.ut. whx h tuntributcJ iw cod inrn (cnta! AppAxWn opconom xyuirrd m late WW millmn, anJ a 501 inacac in prodmtion from properon md tomt pnce m Aanons pnuh ofho by incened sob ume of lou er prked u cstern ual.
aupired in Pm a,J l'"1.1 hc muenn ucrc ofhet in pan b3 a Wi deuene in the ascree eficane ulo prite for cat Dunne 4 04 and gn toenues muened %4 mdhon or 427 primanh lWL gas pra n dmppeJ to dieir hmeu lo ch smt e 19M due to 1959 md 1900 xquisitions ongoing deselopment Cff""' #d d II "E"in gam hom the ule of a u orking mterest. 6 Preunin meuk rnenun dcctcacd $20 mdhon or lvi due m deucawd Wher uln solumn and Nuct ther mJ cold + Precious mcoh enenues deucased 513 million or 1107 duc Qggg pritet %ci pnt n rexbed a 17 ear 9 h>u m the fourth ipurter to deoened acrate wher ules pntes and decreced go!d ules ,, , , , of 19mnd hae icnumeJ hm_ solumn.pama!h offsu bonuened uher ules so!umet 40 Ojaann nju er ivradfi3 mdkc wIlii. Ojauncz op w immdJM rrui!ww 15';, 33 4 Opcutium ad numtenene npense mucawd $b tmlhon 6 0;ronom and mainteru!nc npeme inutased $k nulhon of 47 due to im rencd o!I alRI ga prodacnon ahd a hl $ mdholi or 101 due to growth from properties aupiired iri IM patial- yj redutuon in the urnion uhie of awen relecd to a wal ton- h offset by a 39 million redamation liabiht3 reduction at a gold trau sentement, patidh offsu M hm er uher uln whimes mme and the cimure of two noncore opeutions in 19e 25 6 Adnuniauthe and ccncol npense muened $4 nailion or + Depreuanon. deplenon and amoni/aion opense mueased l
'j# 3 9'i pnnurd3 due to a f x mdhon Unl restructonne thvee $h mdhon or 317 primanh due to inuen.d oil and gn pro- 4,. '
relmng to the unsohJanon of subuJury offan uhuh is duuien and uul minim cquipment additiont , [ ] " 33 cycued to reduce future opeutinu osts
- Tan otha than income tan increned $4 mdiion due to N !
4 Deprecution, depletion and mutianon npense inacased inuencJ uul, od and gn pnxtutnan. .
$M 3% mdhon or 42'i pnnunh due ta higher depletion inuhing f amicwin!wnwr maaad$1 mde,nw h,.
8g J 5 fmm inacased od and en pmduuion ad the higher u,st of %ggg pun hned oil ad gn resen cund itsen e des clopment. $ Income from opeutiom nne $'d milhon or 2W. Od and ga h #4 u , _. o merenes ucre the resuh of ugmkant acqmunons m 19W and
*N ***"I f.an:igwim!snn ia:mudShu!!nm n.
19% Offscuing thne pim was an opeuting hiss of % milhon B pa h dforlhle 6 inwmc from opeutiom increaseJ 517 million or 101. rewrded in Decembet Pm when NERCO sold 4.9 mil hon G W ed The w i e of a long. term gn supph wntott in 1991 and ountes of sik er at an as euge prite of 533n per ounce. s the termination of the uul wntuu efiedhe in Juh PN2 e internt npeme muened its milhon or 53'i prinurih due are npeded to loua NERCON 1992 opeutmg inwmc b) to the addition of debt io fund 1990 aujiiisitiont 4 '10 mdhon'
+ Internt cariuh/cd inucned 53 million prinurih due to 6 imucu npeme inuened $M mdhon or M prinuril3due golJ anJ siha mme npandon anJ developmenul oil and en to hMcf acage (!cht bMa%n n a rnuk of od md Rd A9ub' ddjyyp4 dtioot ofhet in put by lower intnest uto ad a 9 nullion .
% Income in npemC inutawd h, rnd. hon pnmMih duC to
/
reducnon relaint to the seulement of naome ta authiiwuct . lacrened InJhle incomC. $ in! crest capi!MtNd inuenCd bb mihion due t0 muened oil - t \hnorin mtant anJ other npense inuened $3 mdlion and gas asets quahtymg for imernt capiuhreion. - prinurih due to NL.RCO.s muened camino and the pubb. e 4 Pnnision for mooe usn un unumh unt hanced due to a ule of NERCO tommon stod in August 1989. which Phl fnouble us setdement of is mdhon. NERCO and the increned minorin ou nenhip from 119 to IWi. Compam hue fded a protot rebung to cernin pmposed 6 in Ivs, a %. nuLn after us pin un a! hated to thh seg-adjustmenn with the hute of \lanuna. See N.otc 9 to the , . Geohdsed I,mancu. l Notementt ment au resuk of a chmee m the C.ompm3 s carrymg ulue oy N.L. RCO.s unmon snxk follouing a sde to the pub!k. e i e i >>c o a e_ M
f 7 El.ECU11.11['NICMl0NS wiin w ani.us Mun u u 4hu
\ en wun. t a..n s.a
}I/ dl }YAI }'Nd l'IQ }ffM } 'l%8 g g RL\ 1.Nl W lual nensk u n u i 64 i U? iU4 i So I i 4s 0 i4e 191 Fi Nenwk aaew scruc W 1%* 170.0 IW lu 5 161 0 12 5 lar g disunte nenuck senn e 244 s 214 4 2;I x "9% 201 4 2B i 14 i f'in att hne scrute fM m1 *3 tl i f . ' .' 61 1 10 2 Mn uf uMe u;wt) H9 02 - - - -
i636
- Odct IW k WI h2 ' Wi SU 441 30 19 TUI \L ~24 4 m29 C7 smo 527.2 40 6 6 131'l.NNfW licpraiation and amomnnon llD 16Lo WS 93 6 +6 nu 15 6
_ . . _ . .__ __ ()pco!Nnt m b 1!ntc and other 4U; 426 ' iR4 T489 M6 321 3 5 7 Il/l U)1IIH WIClll0 B 'lOl \L %45 67 4449 44 U M2 410.3 7 7 4mcussau- jNCo\lli Ro\l ol'j.Ril R Ws pn 642 13; s 1 pts plo 139 0 4 3 N}Tl INCo\ll st.) H2 70 %4 44 6 412 (10p 13
\hnunn rctntAiurcJ w _ _-_ _ y - g,7,un imant d.mn and der 11 3 IN1 10 7 s2 u In3 m) 3
% _ . . . . Ji__ gjg_ ,
; ,g y g g w,
Q. ' _ _ _ . _ _ lleno6able men i l G4 31,70; iL P,2 512m 51,1 ) 51.171 0 7 a _ _ _ __ _ Opual spc6dmr i 36 i 470 i ha $ 170 5 % $ 1% (50) 9 N und.cr ol cmpha en WI 4J61 14M 4.215 3 626 U4) W - m___._..._ Tt!cphone aucss bnn(N m/J 15 7 Mo 25A 240 SH 25 5 10 1,ong knn onginnmr com cnen hy) . .- . . _ .~. IINnU!O l< !lllTl b!b 4 471 4 4\\ 4 7 et
~"""'U"""*
l$ VEL _ w te wn r.oue al ewm r,e r&m tr a ud a s bnc tren rci u.nl I tu ro wLo a b d no ch t on pmmh rep-ncJ no ene. o___ _ _ . .
@ l M rmt rch t ckum .or M m a s on H ( a pa b o% r.m.cn u mJ mA b o me tr.c % a vpsa:cenwm te
% M7 % Nr 40 9]
c w,a l'.\CTH16 IXlI.I ItNCING1: \RSINGA 1991 CH3II'.tRIIJ 10 INI O bo,ine n u npam i,m 6c M m m W es u, du dw w &i xnm b zw>m'md R' r>&z <e K G twe Dnw.un through lang lines arul hul enhance operanont PAi6t , gj g g y .. un iscas-d 91 ndim m l% ic!ctom operates noinums and sells capaat) on the knh he m & 6imn of NoahMest in August lWO, which Pad 6c Cah!c Pntmg for scnnes k both ute rt gobtcJ and aJJed 64,5m aucss hnes and 54 mi" inn in resenon, and the mJ!kCt drh Cn lairig-tCrm prObuhhQ in filrR hhed *cn ke g..gj gg , g g terNturics is in6ucInced h tf*rhnolag\, cf6denn ciopcodons
$ NetbOrk accc% sen kt rCVnun, b hkh Me (hRtn to com-anJ tost of cap:tal I,nik Ic!ccom,s roenun for twl were derh ed 517 from lag hnn. 41ri from h(al cu ban = wmps
*""" I"' "" I" '" C"*P"" " "b l'aCi,6 5 fium U!dC and bkhaul .apAity ule and rehucJ "C 3 ' b '"0"n or I . he LnWot mjuMon (Jb!C scfs kta Jrni I9 frUm t.clhdJr UpciJOitih IMy dAunlC network scrue resenues wd! be affuted m fun.re se;n as a "PC"U"X "P'"'n ud scuim mw on re. oh of the acreemcu ta tunsfer mtenutt and mterun 'nal + 1.ong dkuse nctuurk sen we restnues increased $30 mil-mosge toll and wide cea tdept ne senan to XIKl1 We hon or 10 pnnunk due to hbhcr out+f period resenue adjust-pJgC M b4 aJJithCM infafM.!hiqi D,Crin, fate be Ef;Mth and the resenue effects of inacased expensn. panb!!) ofhtt by the effects of o.mpeutmn and inn.hu e ute deact,cs in hka ofill m;llion and 56 mNn, anrma n JuN twl and \lmh 19W. resirand).
f' i t i i ! c o R P M'u
n J $ Sales of cable capacin on the Nonh Pacific Cab!c decreased tion and internal access line powth of 7% offset in part by
$52 million.- Apprmimately 41% of cable capacity had been lower re enues caused by d.e sale of a Gulf Coast satellite-sold to nonafninted entitin at December 31,1991,31% in based ccHukt telephone subsidiary.
1990and 100i in 1991- 4 Nemork access senice revenues increased $17 million o'r
- 9. Other rnenues increned $24 million or 309 due to the 10% An increase of $9 milhon resulted from the acquisition of acquisition of Nonh Wnt, revenun from tramportable earth North West and the remrinder was_ related to increased operat-stations and other senicn prmided in Saudi Arabia and main. ing expemes med in setssg intentate access rates, tenance senices on the Nonh Pacific Cable. + 1.ong datance netwn/k senice revenues decreased $17 mil-Opmrignpum inmaad536 miNon or 71 hon or M primarily dur to lower out of period te enue adjust-ments for long linn m !WO and the effects of Alaska intrastate 4 The %nh4 Vest acquisition added $26 miUion of expense: rate decrea<es in IVL and 1989, operatiom and maintenance, $10 million; administrathe and
- Sales to nonafGhutes of 31% of the tout capacity on the general, $6 million; dcpreciation and amortimion, $8 rnillion;
'and taxe other than income taes, $2 million.
N nh Pacific Cable increased revenues $U million. CC S NES-
+ Operations expeme decreased $37 million as more cab!c 4 Other revenues increased $19 million or 30% mainly due to y
the North 4Ve t quisition nd incre sed billing and collection ca; acity was sold in 1+n The decrease was offset in part by * # _- and telephone directory revenuet increased sales of bxkhaul capaity in 1991,
+ Opeutiom and maintenance expenses increased an addi- YdO"#^/mierravdf35 mi#ios or191 no tional $37 million pnmarily due to access line growth, leasing of tramponden on an interim satellite, senico and eqmpment
+ Operations expense increased $72 million or 42% primarily y ~
due to the $53 million cost of cable capacity mid and expenses -
. prmided in Saudi Arabia, maintenance of the Nonh Paci6c of Nonh4 Vest's printing and publishing operations Operatmg -
_i no_ Cable, increased cellular maintenance and customer operations expense aho rose due to increases in advertising expenses for : expense resulting from' increased cellubt operations and long lines and kul exchange access line growth. ' 200 s
! Y increased adyenising expense. The increases were offset in
+ Administrathe and general increased $3 million or 8% due pan by decreases rehted to completion of the senice life of g' m costs rebted to the development of customer support and the prior satclhte and lower telemeuy, tracking and control ser-biHing mftware and the acquisition of North 4 Vest, offset in ion vices for the new satellite.
part by the sale of a Gulf Coast subsidiary.
+ Deprecu, tion and amonimion expense increased an addi- -
So y
' tional $7 million as a result of increased depreciable propeny + Depreciation and amonization increased $3 million or 4r resulting fmm the Abska Spur and cellubrhperations. due to the acquisition of North 4 Vest and a long Enes deprecia.
tion rat increase, offset in part by the sale of a subsidiary. ' 86 - 87 < n 89 - 90 91[. Earnius mtdhuriae dmaud$3 miHion or& Eantirprmbution inawl19 miHion or i51 /n ud,est
' + Income from operatiom increased $5 million or 41 mig
. + Income from operations increased $20 million or 151 g westem
-+ Internt expeme mereased $i md . lion or 15% primarily due -
to debt incurred m fund the acquhition of Nonh-West and $ l Interest expense increased $14 million or 43% primarily due expenditurn for comtruction and cable imentory, offset in m additional debt incurred to fund the purchase of PacifiCorp pan by lo_wcr average interest rates in Iwl. snxk by Inner PacifEorp fur the acquisition of North 4 Vest. . ,
+ Other income increased $10 million due to preux gains
- Interest capiulued rose $5 million due to increased conf
- from salciof communicatiom subsidiaries and cellnbr interests struction and inventory work-in-progress rebted to the North . ; of $28 million in 1991 compared to $18 million in 1990. Pacific Cable and long lines repbcement satellite, , . O Other expense increased $29 million primarily due to $20 + Minority interest increased $7 million primarily due to ..
t ' miHion from uluation adjustmenn rebring m international inwme from the Nonh Paci6e Cable project _ operations and other noncore imestments. + Losses from equity and other investmenn decreased $5 mil-
+ .income taxes decrened $15 million or 3M due to the fasor- tion due to the sale in 1989 of substantially all noncore sub- -
l able resolution of tn audit issun and lower taxable income. sidiaries toInner PacifCorp,
+ Other income increased $8 million due to a pretax gain from ?IfMI/RIRE/VID1989 the sale of a communicatiom subsidiary, offset in pan by inter-Rntwsinaraud3I?5million or1& nationaLoperatiam los8es.
1 9 Loca! network senice re enues increased $2 million or 47 + Inwme taxes increased $8 million primarily due to the sale due to $6 mi!Iion of revenue added by the North 4 Vest acquisi- of a communicuions subsidiary in early 1990. P A c Ir i e 'O A P 39 L
.m .,.- g
ilN/.NChlLSER\' ICES w i imsor Int t .uu toit int u sii
\\w min,merayma l'ers t %e As.m,M c 1991 19x9 198X 1987 1986 u n ,% wm I WU__ _
RfXf.Nt'ES Net 6nanc ng $ 131.8 $ 1810 $23i0 $ 2004 $ 12ix i 61.7 (2 M 16 %
-, Other M3 415 184 114 4.2 .2 39 TOTAL. 1921 226.5 2516 22i 0 13n0 61.9 (15) 25 Intercq and debt eyense 91 2 111.5 15i 3 1113 58 6 M1 (18) 22 NET 1m9 lii0 95.3 109.7 71A 27.8 (12) 29 Deprecbrion and amortianon h.0 56 5.9 4.9 21 .7 43- M Other expemes ,
%2 hib 81.1 71.0 42.7 22.0 10 34 INCO\ll'.tl.ONM FRO \l OPERATIONS 318 *
( 1.3) 23 8 11.3 2nA 51 (105) NETINCO\ll: 12.4 18.2 16,H 215 21.1 7.7 02) - 10 fblXdlLSIRIMS A "I # Y '"'# "*#" charges, picferred daidends
/wnomomw and other 53 10 6 12 7 11.1 11 4 31 (4H 9 100 --- -
g .g g .m g g 3 g 43 yg gg g g 4;
!Jenofuble awets $1,685 $l.724 $ 2,M6 $ 2,242 $1,577 $ 877 (2) 14 v 0 -- Number uf emploien 656 675 570 646 395 277 0) 19
$ AMETS 3, . , _ _ ...__h Avntion finante $ 491 $ 429 $ 410 $ 429 $ 215 $ 165 14 24 Computer leasmg 5 3M i M9 $ 558 $ 4s8 $ 305 $ 134 04) 22 Other 6nancbi sen kn $ 371 $ 472 $ 537 $ 601 $ 40s $ 272 (21) 6 64 $ 73 *
.- Real esute $ 237 $ 145 $ 33 $ 12 $ - M l' nit sold or hquidated $ 622 $ 481 $ 4W $ 275 f $ $ - -
pu . _ _ . _ Manufacturing $ 24 $ 20 $ -
$ - 20
% a meoundat num!u
'g . . __
UI l b Duj fr0L't f (lltTtilklf Ef)'rt lNCTnt on [htriuqKlD) l%N M mg MjfyrtM fiD jfid IliWmc Q\C4 On 3 W}MfJT@tifJn) h.N4 N N o ognpenwed fot wrts uA trnethucprJicmhhen tk Gmparq un tside these teeths
-b F:\C'lORSINI't.UENCING ElRNINGS m, 10 s w w ut PTS' earnings are affected by bminess ndo of the avbtion, ReNatory pmceedino and the outermin Gruncial condition O Ihnnn C Iname (mm Openanns computer and real estate indmtrict These cules v.ffect cus- of the cmtomer for the output of a PFS imestment actounted C h-toans t heinbuuen romer credit quality and the ultinute amount reah/ed on lene for a5 a IncugCd ! Case could Reptisely impdCr kN CJmings
- - residuait Other sigm6 cant fatton include interest orn, tn contribution, floweser, during 1991, this cauomer reached bus and cou of capiol. PFS participates m numerous us agreemenn, subject to dc6nitne documenution, with sarious advanuged tumactions and is reimbuned by Inner Paci6 Corp crethmrt that wi!! enable it to receice teruin regubtury ute for the net us bene 6n, relief No earnings in the current period were antibuub!c to During 1991, International Ilusiness Machinn, Inc. I'lB\l") t ins cument uner, sou the abe greemn not initined litiption againu a major compentor of PFS, bemrue eRatisc and Pihusuined a toolloss by abandoning m uncument, could experience an after.ux low of up to Computer 1.camn l' nit that imoh ed allegariom by IB\l that ceruin pactie comtitute allegedly un6ir business puttitet Wm on. PFS beliesa that the agreemenn will ultimarcly PFS h ecpged in ongoing discmsions u ich IB\l reptding cer-bnome e6atise anMon not cyct uneahn a nwriaMon d"ocuted with this tomaction.
tain of thne puctices it h PFS' nunagement opinion the any prmpective change in the competitive dynamin of the com- On Fchruary 25,1992, PFS' one-third partnenhip interest in a puter lening industn resulting fmm this dispute will not hac lescoged lene financmg tunuction of a bige commertbl a nutenal effett on PFS' rnuln of opeutions offke buildmg in Demer. Coloudo un reuructured. PFS' P s f. I i t t. o it P
_ pannership imerest was sold to the other panners m the origi- 4 income tax bene 6ts increased $7 million renecting a higher nal tranuction m nehange for a cash payment of $7 million - pretaloss and increased in credits awociated with affordable and a $22 milhon second mongage prominor) note with an' housing projects internt rate of 9.5'A and scheduled principal payments to~
, g.ated Corporate interest chargo, preferred dhidends begin in 2ml. Prior to the restructuring Pl3 haJ accounted and other decrened $5 milhon due to decreased interest alh>
for thi3 imntment as a incoged lease, Pmspectively, this cared by Corponte and the rearement of all outsundmg pre-imestment wdl be actounted for as a fmance recchable. As a ferred sta k in mid-1991. result of the re tructuring, no income or loss u as recorded. Ilowner, the aswt will remain on nonattrual sutus unni an 1990 Cull /MRff)TO 1939 adequate performance period he passed' R 3d dWi//in //9 199/ C031/MREh TO1990 + Net financing rnenues decreased $52 miUion or 227'pri- '- muily due to the effect of 548 million of tnenue retorded in Anmesdanaan/$WmiNiom /5'i.
. 1989 related to 980 milhun of finance assets sold m knuary.
4 Net financing resenan decreased $51 nullion or 2X9. A 170 and a funher $11 million dechne in rnenues associated decreaw of $34 milhon resulted from a lower inel of n erage wis downsizing other lines of businen, offset in put by 6 nance auets, $12 milhon was due to increawd nonaccrual increaus of $7 million from the sale of fhe aircraft fmm the Enance assets and $7 miUion was derned from a reduction in aieion panfoho and is nUllion in computer leasing rn enues. computer leasing trading pmfas. A 1WI gain of $3 million on the
+ Other rnenues incrcased $25 million due to rnenues of ule of securities was ofhet by a $7 milhon gam in IVO on the sale of fne aircaft. %utcrual 6 nance anets at December 31, $29 milli n recorded for a small manufacturing company obuined in 19W thrnugh loan management activitio and $5 IW1 and lYo u ere $'/9 million and $43 ruillion. respecth eh.
miUion from adJed affordable housing projects, partially offset 4 in 1991, in enmr> of off lease equipment held for ule M a $9 milhon decrene resulting from the liquidadon of a increncJ from $27 milhon to $103 million primarily as a n5arketable secunties portfulio in early IM result of four aircuit repowessions. PFS is acdvely marketing
+ interest and debt opense decreawd $44 million or 3% pri-deu marily due to low er aeuge debt In els, a pmeceds of the ute - 4 Other rnenue increased $17 mil: ion or 39'i due prinutil) of fmance assets were used to repay debt, and to lower avenge to the July 1991 acquisition of a nujarity ounership interest in inun nW9.529 in 19W compared to 9.741 in 1989L certain real esure partnerships, added affordable housing pro-jects and increned revenues from a m necturing company UFfd5## ^F"* I"*dYd!#"i#I*
obuined in Nia) IM + $23 million of manufacturing expense for the business
+ Interest and debt eyeme decreased $20 mill;on or b4 pri- obtained in IWO and $3 miUion of expeme for added afforJ-marily due to lower average net assets fmanced and lower aser, able housing projects was offset by the effects of restruetming age interest utn mM in 1991 compared to 953 in Ph0L the fnancial enices 3 bminess. The prosilon for credit losses -
decreaed $4 mdlion. Exclusive of $7 miDion of the 1989 prosi-Oprasng otasn inmaxd$1/ milli <vi er th.. . wm relating to asers sold during 19% the provision increned
+ Manufacturing e pense for the company whme common $3 minion or 447. This increase re6ected the leger inel of sod wa obuined in NIa3 19W incteced $4 milhon and real problem accounts in PFS' portfolio and established the esure dnelopment and property renal opense increased $8 allowame for credir lowes at a higher loc! than in 1989 million due to increned im estments in propem. 'l hese incred-E.amim osmi%due ixmavd$4millia es were offset in part by cost saino of p.. md. hon amiated with suff reductions. 4 income from opeutions increased $13 miHion primarily due to the opeutions of the m;tn'ufacturing company obtained in famig ammhna derra>dSI millwn or VI.
140 and a gain in IWO on the sale of five aircraft from the ai-
+ Income from opeutions decreded $25 milhon. ation ponfolio. ,
4 Other expeme decreased $12 miHion due to a preus luu in + Other npense increased $11 million due to a preux Ims on 190 on the u!c of 6n.mte assetx the sale of 6 nance assett I t
- c i e i c o a r 41-
SEPORTOF31ANAGEhlENT-1 y , The management of PacifiCorp ha the responsihihty for independently assesses the effectiveness of the intemal control preparing the accompanying 6nancial sutements and for their _ structure and recommends pmsible improvements. Ddoitte & . integrity and objectivity. The suremenn were prepared in Touche aho considered the intemal contml stmaure in con-accordance with generally accepted accounting principles - neuion with ituudit. Management hn considered the internal apphed on a comistent basis giving consideration to materialb ~audtwri and Dekutte & Touche's recommendations concern-ty. The financial surements indude amounts that are based on ing the Company's intemal control struaure and ha taken management's best estimates and judgmenn. Management cost-effective actiom to respond appropriatch to the e rectim-alm prepared the other information in the annual report and is mendatium. , repomible for in accuracy and comistency with'the fmancial Th'e Companis principles of bminess conduct, p'ublicized statemenu. throughout the O)mpany, address, among other things, poten-The Company's financial statenient< hae been audited tw tial con 0icts of interests, compliance with laws, induding those Deloitte & Touthe, independent pohlic acmuntann. Man- rdating to fmancial discksure and the conGdentiality of propri. agement ha made nailabic to Ddistte & Toothe all the eury information. Company's nnancial recor6 and related dau, as well a the Th'eAudit Comminee of the Ibard of Directors, comprised - minutes of shareholden' and direcoci meetings. solely of outside directon, rncets periodically, with the-Management of the Company ha established and nuintains Chairpenons_ of dnisiom and subsidiary audit committees, an internal controhtructure that prmides renonable assurance management, Ddoitte & Touthe, intemal ' auditors and coun-a to the integrity and reliability of the fmancial sutemenn, the set to review the work of each and ensure that its respomibili-protection of assets from unauthorized use or disposition and ties are being propedy discharged. Ddoitte & Touche and the proention and deteuibn of fraudulent 6nancial reporting. , internal auditors hae free acceu to the Committee, without The internal control structure provido for appropriate dhision management prnent; to discun their audit work and their of respon3ibility and is continually monitored for comphance. na!uatium of the adequacy of the internal control structure i The Company mainuim an intenul auditing program that and the quahty of fmancial reporting. NDEPENDENTAUD110RS' REPORT 3 s To k llaaniof Dnann adMmMim ofPaapCorp:
- i. We have audited the accompanying consolidated balance significant estimates made by management, anell as evahiat.
j sheen of Paa6 Corp and subsidiaries as of December 31, IWI ing the overall Gnancial sutement presenution, We believe' that _ and 1% and the related sutemenn of comolidated income our audits provide a reaanable basis for our opininnc l and retained camings and of conwlidated cash Dou for each of L in wr opinion, such consolid:acd financial sutements present the three years in the period ended December 31, IWlflhese . faidy, in all material respeen,'the comolidated financial posii l ~ consolidated fmancial statements are the respomibility of the ' tion of PacifiCorp and subsidiaries at December 31, IW1 and' l Company's management. Our respomibility is to eyess an FM and the resuln of their opeutiam and their cash Dows for ' l opinion on these_ finandal statemenu bned on our audia. each of three yean in the period ended December 31, lW1 in !- We conducted our audits in accordance with generally actepted : conformity with generally accepted accounting principles. audaing sundards. Thme sundards require that we plan and perform the audit to obuin reasonable amurance about whether the financial surements are free of nwerial missurement An [f auda indudes eumining, on a rest basis, eviden.e wppomng DE.I.0ITFE & TOUCllE the amounts and dndmurn in the financial sutementt An Portland, Oregon L: audit aho indades asessing the accounting principles used and February 18, IW2 P A c 15 I C o R P L M ' i i'
- l. ___ - ,
D17E1IENTS OF CONS 0llDA TED INCO.11E AND RElillNED EARNINGS sm f P M Ofixil 1 G' iil % f NN IJ tif Li \lftl R Li IW1 IWO 19M9 REVENt'Es $ 4 m7.0 $ W8.3 $ 3f,33.5 ENPENSES Opeuoons I A26.3 lyA3 1.227.3 hlintenante 314 6 297.6 297.6 AJmmi.tum e arid gencol 292.9 307.0 310.9 Depreuation. dep!cnon anJ amortintn'n 57iN 479.9 410.9 Taxes. other than income uses 1M5 186.5 177.2 I mancial Senicciinterest cycnse 91.2 111.5 155.3 TOIAE 2.hol.3 2347.8 2.5W .2 INCO\lE l'RO\1 OPERATIONS 1.1253 1.160.5 10\4.3 IN'l EREST ENPENSE AND 01llER Interest espeme 405.5 376.9 351 .3 Interest capiuh/ed (30 6) 03.3) (2i7) Gin fo,m issaante of subsidiaris sn d - - (83) O/SI'OS!TIOXOF (income) loss from eqmn and other inscumenn 0.1 > 29.3 23.9 IXC0)lE /R031 ilmann imerce and other OPER4T10XS 41.5 34.0 ti6) TOTAL. 4ti3 """ 4a6.9 33i4 lntome ltforc inmme IJ\es 710.4 (A3.6 695.9 income uses 203 2 209J 233.3 , NET INCO\1E 507.2 4719 4'a5 .6 -M h-@bIM RETAINED E \RNINGS. JANt'ARY l W.9 5013 711 .5 b hl h b hj crSil DivlDENDs Dr.CI.ARED H! ,h jj -!d _,h _. 0_)i g 'l_ e pd Preferred sta k ( 2N.0) (21.1 ) (24.3) g Common vot k /pr (bre /W/$/Ai l'rd/ G /kd3/.M Gs14) q 350.2) (34a2) [ H hk @j ! CO\lN10N AND PREFERRED STOCK RETIRED RETAINED EARNINGS. DECE\lBER 31 $ 9w 6 i31 >
$ 907.9
$ NE3 (7.3 )
3 L i Q )
- tm h4 l l
EARNINGS ON CO\lilON S'I1X:K #-l - -h-4 p - u) l c t (Net income less preferred dividend requirement) $ 4stt5 :)j l'
$ 4520 $ 444.4 y
[ As ence number of common . shares ; outsundmg /thm.!u 244,4n?
'~ #
EARNINGS PER Coll \lON Sil-\RE 25%350 24 i818
] ] ]
$ 1.% $ 1.85 $ 1.bl ]
Ne wnpnune bm m b s %:ed i mn u! s:mmento g y'
^
-0 y q D Reuined Eanune E Ibidends Pad D income Tues G Interest Espense & Other
' P s ( l 5 i e O R P 43
. -. . -- = . - - - -. - .- ... -
- i-ONSollDATEDMIANCESHEETS
'MILLIOM OF Di>LI Alts / DHTMM R \l ASSETS' 1991 1990 ,
. PROPER'IT. I'LANT ANI) EQl'llt\ LENT Electric $ 8,6%4 $ 7,928.6 1%ning and Resource Desclopment . .2,268.7' 1,741.7 Telecommunicatiom - 1,651.5 1,5016
- Other 1211 34.7 Accumulated depreciation. depletion 2nd arnortization . O,$B4 2) - 0,5115)_
- Net . 830i5 7,697.1 Construction work in pr6 grew 3215 378.4 --
9.129.0 8,0753
- TOTAL. I' ROPER'IT. PLANT AND EQl'll' MENT FINANCIALSERVICES' INVESTMENTS Imestment in finance receiubles _
55i9 . 1110- l
-- (Im allwam.hr mdir lmn: 199llJI58 and 1990/2L!)
- Net investment in everaged leases. 350.8 3119 ,
l l'Rol'ERTF,fL4.\7: I Net imesonent in equipment under . 370,6 AYDLOUll'3fDT! oper.uing leases 288.8 '
- Net imestnient in other asset 3 266.0 . 186.6 .
Al, A CIALSERVICES'INVESDIENTS 1.461.5- 1.5%I twurw#mani Cl:RRENTASSETS Cah and cash equintenn 8u0 .186.0 ' Accounts receivable ilm alinawfbrdaMulaamri: 19yllDJ l and iVWlRI.5) 5th2 bl75
* ^
Materiak supplies and thel stock latatnug avl 2312. ? t 8.6 '- Inventory 1714 187.6 Other - hi9 62.9 Assets held for ule 1511.- 154.0 - TOT AL Cl'RRENT ASSETS 1.2718 1,419-Jm - - -- O'lllER ASSETS , , Im estments in and advances to afF. hated companics 2417 227.2 .
- Cost in excess of net assen of bminesses acquired - ' 254 6 1
-230.9 :
- Deferred charges and other 866.2 817.4 '
. M, . _ -- .-
TOTAL OTilER ASSETS 1,3M.5 1,27 i 5 .
$13.228.8 $12372,0 TOTALASSETS l@gs g -
yo m : - wrumianung ws mom,ithned su :mensi
. O CWIP
..Q hnk & Reume ,
~ lbch t ment'-
0 Tekconuuunistium D Dettned
\
- f.
- 74 e im .o a - [ ( . 44 (
, .. . -.. . . - . - . . .- . . . ~ . - - - .a.-.-.. ;-. .
M1Lt.lOWOf 101.1. AkU DiCfAIBER H CAPITAll7ATION AND1.1NBILITIES ' 1991 1990 , CONIN!ON EQl:1IT , Common shareholder capital (shares authorized 750,0(CJM shares outsuadin;;- 1991/262#6,369 and 1990/252M32,259; $ 2,574.1 $ 2,377.0 ' - ,- Reuined earnings i 9116 %7.9 Guarantees of Employee Stock Ow nership
' Plan bornmings (62.1) (77.1)
_'lOTAL COMNION EQl!!lY 3.511.6 3.207.8 PREFERREDSTOCK 342.4 M2.4 , PR EFERRED $TOCK Sl!BJECT TO NI ANDATORY REDEN!!'I'lON 150.0 50.0 LONG-TERN! DEHT AND CAPITAL, l. EASE OBLIGATIONS 4.620.2 3,976.5 , I INANCIAL SERVlCES' DEBT Short-term notes parable 439.7 376.1 - 1,one-term debt 574 3 6911 {M'IIII"UISY ' TOTAL FIN \NCINL SF.RVICES' DEBT 1.014.0 1.071.2 Cl'RRENT LIABil.lTIES #' Long term debt and capiullease obligations arrendy maturing 131 3 102.5 Nues payah!c and commercial paper 241.4 40&4
- ~ ~
Accounts payable 298.1 450.6-Tnes, interest and dis idends pay able ;51.2 389.3 , Customer deposim and other 2510 200.9 TOTAL Cl'RREaTI IABILITIES 1.377.0 1,551.9 DEFERREDCREDflS _ _ _ _ y Income axes 1,1512 1,147.8 Imestment uuredits 236.3 252.2 Niining accruals and other 574.5 536.5 . . . . 3-TOTAL, DEFERRED CREDITS 1,9M.0 1.936.5 NilNOVITINTEREST 249.6 2317 CONINIITNIENTS AND CONTINGENCIES /Sur hw .g g g g , 9, 9 - TOTAL CAPITALIZATION AND LIABILITIES $13.22&8 $12,372.0 E (kmnmn Equity thee wwunung Note s to 0,nelaixed I manah Sutenems) G Preferredkd ,
. E FinancialSeniccil)cht -
E Igng-Tenn Ikbt & Cyiul '
. l.cac Obhrma 9
i -l r s .e r r ic oa e
hTATDIliNTS OF CONS 0 JDATilD CASH FLOWS sm uov.Of DOUARSMAllENDEDDECEs! BERM IW1 1990 1989 CASil FLOWS FROM OPERATING ACfl\TrlES Net income $ 507.2 ~ $ 4719 $ 4656 Adiustmenn to reconcile net inutne to net cah pmvided by operating actisities Depreciation and amortiution 6%2 631.6 - St.6 Deferred income taes and investment tn credin - net' (16.8) - 6.9 116.7 Interest capitali/cd on equity funJs (11 3 ) (12.1) . (11.9) Gain from iwuarre niso!Wdiary's srwk ~ (8.7) Losses from unconsolidred entities - net 6.2 17.9 17.1 - One-time refund m Electric customen - (6R0) - Pay ment from sale of power entitlements 114.1 - Minority interest, amued reclamation and other (16.1) 3R9 3.2 Accounts receisable and prepayment 3 59.8 (17.9) - (1.6) Materiak, supplies, fuel sn(L and ins entory 41.2 ' (M2) 09.6) Accounts pa3 able and accrued liabilities (88 4) 1513 (218) NET CASil PROVIDED BY OPERATING ACfl\TrlES 1,276.1 1,1323 1.118.6 CASil FLOWS FROM INVESTING ACTI\TflES . Omstruction (911.5) 0 59.7) (6017) Operating eompanies and assen acquired 0953) (552.1) 0 10.6) Investmenn and advances to affiliated companies net (46.9) (20 3 ) 12.2 Proceeds from sales of assets 159.9 5M.6 27.1 FinancialSenices Proceeds from sales nf assets and principal paymenn 476.8 506.9 767.2 Purchne of assets (55al) 0 90.8) - 0 JM.2) Other (2.0) 03) (2&2) - N ET CASil PSED IN INVESTING ACTi\TrlES tl#Al) 0.052 7) Mx2) CASil FLOWS FROM FINANCING ACTIVITIES Changes in short term debt 0 47.0) 57.6 til Proceeds from iong-term debt 1,2th! 699.9 3M2. Purceds fmm issuance and exchange of common su<k 1993 3310 22.2 Proceeds fmm issuance of subsiduries' stock 1.1 - 2.0 511 Proceeds from issuance of preferred stak 9&4 1040. - Disidends paid 140 & 6) GM.21 (352.4) Repaymenn oflong-term debt and capital lease obligations (53&2) 0319) (267.9) ' Redemptions and reporthaes of capital stak (.5) (22i 7) (71.0) - Fin.meial Senices - Changesin short term detit 615 . 0 86.5) W8 Pmceeds from !cng-term debt 1613 23a3 M9.0 Repayments oflonererm debt 0 18.0) 0923) OW3) Proceeds fmm lev eraged lease nonrecourse debt 69.4 23il 7.4 Rept)menn ofleveraged leve nonrecourse debt and deferred equity 06.8) (219) 004). Other (65 0) G2.1) i2a7i NET CASil PROVIDED(USED) BY FINANCING ACflVrflES 237.0 (5a7) (22&9) - INCREASE tDECREASE)IN GASil AND CASil EQUlVALENTS O(WO) 2&9 (106 5) CAS!! AND CASil EQUIVALENTS AT 11EGINNING OF YEAR two 157.1 2616 CASit AND CASil EQUIVALENTS AT END OF YEAR $ 800 $1%0 $157.1 th'c Aur[WpyIOWiteCenuhdated hnanuaI%D:mennt - i
- 4 P A c 1 f I .. e U R P 46
1
~
Norss ro coxsouni1rso s1xascn1t siinrsusxrs DECLilBER31,1991,19Nawl1989
. NOTE 1. SUMMAltY 0F $lGNtflCANT ACCOUNTING POllCIES
/ ISISOf PRESENTATION expemed upon detennination that the well does not justify
.The conmlidated financial sutements'of PacifiCorp (the commercial deiel pment. Other explantury, costs, including geological and geophysical and lease maintenance costs, are -
"Cornpany") encompaw two businesses primarily of a utility nature-Electric Operatium facific Power and I tah Power) charged t expense as incurred.
and an 87% owned Telemn munkations opention (Pxific The carrying value of the Gimpany's propeny, plant and Telecom. Inc.); an 8& owned Mining and Resource equipment is evaluated periodically and if conditiom warrant, Deselopment business (NERCO. Incf. and a uholly-owned related impairment expense is recorded. Any excess carrying Financial Senices bminess (PacifCorp Financial Sen ices, Inc.). value of Mining and Resource Ibelopment's prmed oil and The Company's wholly-ow ned subsidur), inner PacifCorp, Inc. gas propenies over their' related future undiscounted cash (" Inner PxifCorp'), holds all of its dheni6ed imestments. Hows based on cunent market prices is recognized quarterly as Together these businewes are referred to herein as the impairment expense. - , Companies Significant intercompany tunsaction and balances DEPRECIATION, DEPLETION hase been climinated. ANDA310RTIMTION
- The financial aaivity of each of the atae segments is sepa. '
Depreciation, depletion and anwrtization is computed generally nte!) reponed in the ubles on pages 32, h 38 and 40 of this b) the straight-line methrd mer the estimated usefullives of report. Such mformation is an integral pan of these fmancial the related awers, except for ceruin Mining and Resource statements. Developmem properties, w here the units of pmduction method The Company's proportionate share of income or loss from is used. Prmkiens for depreciation (excluding anonization of equiry imestments and cenain majoriry-owned imestments, capiul leases) in the utility businesses were 3Mc of aserage where control is expected to be temporary;is included in lowes depreciable assets in 1991,3.8% in 1990 and 4% in 1989. , from equity and other imestments. The cmt in excess of net assets of consolidated bus nesses REGULITORTAUTl/0RITIES acquired b anonized over periods ranging fmm 10 to 40 years. Accounting for the uti!!ty businesses conforms with generally flNANCE AND LEASE INCO3/E RECOGNITION accepted accounting principles as applied to regulated pubhe utilities and as prescribed by fedeal agencies and the mmmis, intemt mme on tending transactions is recognized on an i siens of the uriom sutes in w hich the utility businesses opeute. acenal basis commencing in the month of origination.using methods that genently approximate the suted interest rate for CASH AND CASH E()Ull;1LENTS the tonsaction. Direct 6cancing lease res enue is recognized as For the purposes of these financial sutements, the Company a comunt yield on asset carrying values. Operating leise rev-considers all liquid in estments with origirul rnaturities of enue comists of periodic rentab, primarily monthly. The cost
' three monthwr leu to be cash equh a!cnts of equipment under operating leue is depreciated on a PROPERTY,PLINTAND EQUIP 3fENT
"" "' "" "' "* *~'?'**
enue h recorded m as to produce a consunt yield on the out-Propeny, plant and equipment are sured at original cmt of con- sunding imestment3 in periods k hen Financial Senices' net -
- tacted senices, dirca blmr and nuterial, interest capiuhzed investment in the lease is positive, during comtruction and indirect charger for engineering, super-
- sision and similar merhead items The cost of depreciable utili. ALLOllilNCEFOR CREDITLOSSES
^
ty propenies retired, including the mst of remora!, lew salvage, Ajlowance for credit losses o. mainuined at a level considered
. is chan:ed to actumulated depreciation.. Telecommunications adequate to provide for potential creJ2 6c3 nased on man-plant at December 31. lWI includes $47 n i!iion relating to cel' agement's assessment of various risk factors affecting the lular fonthkes w hich are bcing anortized m et 40 yeart investmentin finance receivables Mining and Remurce Deselopment fullows the successful
- effom met!yd of accounting for its od and gn opeariom. INVENTORY VALUATION Q)sts of pnductive welk and developmental dn holes are cap- In entories are genemlly u!ued at the Imser of avenge cost iulized. The costs of driMing umucceuful exploratory w elb are or market.
\
l- P 4 c I f I C U 8 P
( IN7ERESTCAPITAlllED investment us credits are defened and arnoniecd in accordance with the accounting pactices prescribed by regulatory audori-Cats of debt and equity funds appbcable to electric and des. Imestment ux credits geneuted by Electric Ope ations telecommunication utility pmpenics are capiuli/ed during and Telecommunications are deferred and anonized to income construction. Geneully, the composite capitalintion rates were mer the average enimated lis es of the propenies. 9.41 fcv 1991,ilM for 140 and 10M for 1959. , REVENUE RECOGNITION INCO.llE TAXES - The Cunpan) aames estimated unbilled revenues for electric Electric Operations prosides defened taxes for differences wnico provided aher cycle billing to month-end. due to book venus tax depreciation thes and methods and ceruin other timing differences. Tclecommunications' rego- RECOGNITION OFCARRrlNG lated opeutions have pmvided defened uxes for all timing pal.UE CllANGES OflNFEST.llENTS differences since 1987. Punaant to regulatory orders, defened ' The G>mpany recognizes thanges in the canying s alue from sales income taws are not provided for 'c criain other differences in to the public of presiously unhsued securities by subsidiaries or the utility business. It is apected that regulatory practice' equiry investen as income or loss at the time of such sale, affecting the utility businesses will permit recoven through rnenues of income taxes, not provided for currently, when RECIASSlflCATION such taes become payble. Cenain amounts fmm prior yean hae been reclassi6cd to Defened mcome uws are pmvided for all timingdifferences in conform with the IW1 method of prnentation. These reclas-the Mining and Resource Dn elopment. Telecommunications' sifications haJ no effect on previoudy reponed consolidated nonute regulated and Financial Senices' opeutions. net income. Noh 1.}MQUIsmons;A.No ossrosmoNs . , On April K IWl, Electric Opeutions purchased equity interests U.S. Gulf Gust offshore oil and gas assets for $500 million. In in the Wyndak plant. On June 8, lWl, the G:mpany retired its 19%, Mining and Resource D+-e,s.,u oil and gas share of the Wydak debt, which had been recorded as a capiul 7 y . ,, me U.S. Gulf Gest region and Mississippi for lease obligation, with issuances of mehm .. notes and cash. $249 million and central Appalachian coal producing pmper. Noncash imesting a.J noancmg activities associated with the ties and timberlands for $18 million. The 1991 and IWO W)odak purchase werc as follows acquisitions were accourned for as purchases and were financed through short term bormumg fxilities and the Net assets acquired $ (169.9) issuance of medium-term notes. Disposition of net pmpenv under capiullease 132.5 in December 1991, Mining and Resource Doelopment sold long-term debt assumed 105A Defened credits assumed 8.0
* "# "" E" "Ib '""'" * * ' * ' #""" "' "
ty t a Teus limited partnership in w hich a minority internt Retirement of ch!igaJans under capiul lease 0 32.5) is owned by a subsidiary of NERCO. Mining and Resource Development received $75 million in cash and a note fmm - On juh 15, IWI, Electric' Opeutions paid $234 million to the sale and recorded revenues of $58 million.The recorded Arizona Public Service Company FAPS") for Unit 4 of the rnenun reflected reductions for a $9 million imestment in Cholla coabfired geneuting plant and related common facili-the pannenhip and a $9 million note receivable from 'the ties and commenced prmiding pmer to APS under a related pomer supply agreement. The acquisition was accounted for pannenhip. as a purchase. Nonh-West Telecomnmnications, inc# North-West"), a com-Mining and Resource Doelopment increased its imatment pany providin: communicat:ons senices in Wisconsinc was in oil and m pmperties in Apnl 1991 with the acquisition of acquired by Telecommunications in August 1990 through the l P s C 1 F l c 0 11 P ' ' 4S
_ . m . _ delh cry of 11,180,978 shares of the Company's common stock ' in january 1990, Financial Senices completed the sale of sub-purchased for $247 million and $25 million in enh to North- stantia!!y all the finance assets of two general leasing operating
- West shareholden The purchase method of accounting ua units to a subsidiary of NT&T Credit Corporation in a transac-
. used to reand the auluisition, although for income tax purp+ . tion valued at approximately ico million. This ute resulted in e the energer was ueated as a in deferred transactiore an after. tax km of $4 million.
' ' ^
m NOTE 3. FINANCIAL SERVICES' INVES MENTS . El%1NCERECEllilBl.ES , term of the respecthe recchables so as to produce a constant rate of retum Payment terms of find. ice recciubles are generally from two to five yean Net finance icceivables include arnounts for Contractual maturities of finance receivables outstanding at unearned income which are deferred and amortized mer the December 31,1991 were as follows silLLloN%Of DOLLARS 1FOR Tlif ) EAR 1992 1993 1994 1995 1996 Thereafter Direct finanee leases - $128 $ 90 $ 47 , $ 24 $ 15 $ 142 Other finance receivables 111 - 34 29 28 4 - 40 TOTAL. FINANCE RECEIVABl.ES $239 - $ 124 $ 76 $ 52 $ 19- $182-The ntimated unguaranteed residual salue of leased equip- lease period, the lessee usually has the option to buy the equip-
- ment included in fmance leases w as $58 mi!! ion and $61 million ment. Uneamed income related to leases was $179 million and
~
at December 31,1991 and 1990, respectively. At the end of the $173 milhon at December 31,1991 anst 1990, respecth ely. IATEST3fENTINl.El'ER:1GEDIL1SES Financial Sen ices' im estment in leveraged leases was as follows; mmor mt.iaRs roccrutirn 3i 1991 1990 Minimumlease paymenn recenable (net of principal and interest on third party nonrecoune debt) ' $ 2914 $ 250.5' Estinwed unguaranteed roidua! ulue ofleased assets 203.9 185.2 ' l.eu deferred income and incatment tn credits (151.51 (121.8) NET INVESTMENT IN I. EVE RAGED I. EASES $ 350.8 $ 313.9 t Deferred income en hability related to leveraged leases was of $149 million and $174 million for accumulated depreciation s $266 million and $243 million at December 31,1991 and 19%), at December 31,1991 and 1940. respectkcly. i.heduled pay-respecthely. ments m be received as rents from operating leases are $83 mil-hon, million, $25 million, $21 million and $17 milljon in
. EQUIP.llENTUNDER OPER:1 TING ILISES 1992 through 1996, respectively. . Financial Senicci net in estment in equipment under operat.
ing leases was $.'89 million and $371 million after deductions e 4 e i ei cox ew o 49
_ . - . .- --- -- .~ .. - . - - I' 4 NOfE A. SHORT-TERM OtBT AND SORROWING ARRANGEMENTS A The Companies'shon-term debt and borrowing arrangements are as follows- . h!!LlJtNOF fx > LIARS / DErMIBFR 3L M1 Paci6 Corp Subsidiaries Revohing credit agreements and gold or siher bullion facihties $350 $1,737 Commercial paper outstanding -(122) (297) Borrouing under bank lines and bullion facihties outstanding (75) (1,121) AVAILABLE CAPACITY $153
$ 319; On enants in cenain reimburvment agreements relating to let- credit agreements and gold or siher bullion facilities on a long--
ten of uedit limit shon-term bommings to 127t of dc0ned capi- term basis. At December 31, lWl, PacifiCorp had $100 million talization (limiting such lx>rnming to approximately $555 mil! ion and its subsidiaries had $780 million of short term debt cbssiGed - at December 3!, IWl). The Companies base the mtent and abil, as king-tem). Consolidated commitment fees y cre approximately iry to support shon term horrowing through sarious revohing $2 million in lW1 and 1990 and $3 million in 1989. NOTE 5. COMMON AND 9tEARRED STOCK e Changes in shares of capital stock and common shareholder capital are listed below:
' Tuonwasor sinnsnutuossor notuns -
COilN10N - SilARES SilARES . SilARE-C0\lilOA PREFERRED ll0LDER ST(X'K STOCK CAPITAL BAIANCE, JANUARY 1,1989 - 246318- 4.037 $ 2,251,9 1989 Lles through Disidend Reinvestment and Stock Purchase Plan 1,049 . - 22,2 Redemptions and repurchases (1,200) =(195) (14.8')' Shares purchased by Inner PacifiCorp (1,774) -- (38.7) - BALANCE, DECENIBER 31,1989 244.593 3,M2 2,220.6 - 1990 Sales through Dividend Reimestment < and Stock Purchase Plan 3,465 - 713 Sales through Employees' Stock Plam 1373 -- ' 73.8 Lies to public - 1 - Shares held by Inner PacinCorp Purchased (10,245) - (225.7) ' l= ,Exchanced 11.646 - 235.0 (. BALANCE, DECEilBER 31,1990 252.832 iM3 2377.0-1 IW1 Sales through Dhidend Reinvestment l< and Stock Purchase Plan 2333 - 65.2 j Sales through Employees' Stock Plans , 224 -
. 5.2 ,
Sales to public 6,050 ' 1,000 - - 125.6 Dispusition of shares held by Inner Paci6 Corp ' - 57 - 1.1 IlAlANCE, DECEN!BER 31,1991, 262,096 - 4.M3 $ 2,574.1 Inw rwAw kW h4s eres anmoc hrent Duemhat rm ana i m mpumc4 sec Nae l - . l At December 31, lW1. there wcre 22,M5,946 authorized but -Plus Emplo>ee Stock Ownenhip and Savings Phn ("K Plus unksued shares of common stock reserved for issuance under Plan") and for sales to the public. Eligible employees under the the Dividend Rein estment and Stock Purchase Plan, the K K Plus Plan may direct their pretax electhe contributions into [ i P A ( l F i ( o A P j j . -
i 1 t 'k -
"the'purchee of the Company'uommon stock; The Company Generally, prefened stock is redeemable at stipulated priceiplus - -
nukes matching contributions equal to a percentage of employ- > accrued dividends, subject to certain restrictions. Upon involun .-
- ec contribtninnulw invested in the Qnnpany's common stock.' ury liquidation, all preferred stock is entided to stated ialue or a Emplo3ce contributions eligibic for matching contnbutions are ; : specified preference amount per share plus accrued dividends.1 Jimitedio(A ofcompensation.. ,
'l' REFERRED S10CKOITISTANDING vimmumshmmsonm.mmmm w lW1 1991 '1990- 1990 ?
. SERIES - Shares Amount : Shares Amount -
1SUBJECI"r0 MANDATORY REDEh!PTION ' No Par Serial Preferred,16,000 Shares Authorized ,
$ 7.12($100 stated value) 500 $ 50.0 500 ' $ 50.0 - INRRflD 7.70 1,000 100.0
- -- UlI7DEXUl
-TOTAL $ 150.0 - - $ 50.0 - IEW' --
9ynmxsoww
- NOT SUBJECT TO M ANDATORY REDE_\WflON .
1.16($25 stated value) 193 $ 4.8 193' $ 4.8
~1,18 420 : 10.5 420 .10.5 - g' '
93 1.28 381~ 381 - ~ 9.5 - 1.76 :3% , 9.8 394 ~ 9.8 -
? 310::
l.98 - 502-- 12.6 - 502.- 116 2.13 f/h . 16.7 666 16.7 - 313 J Auction Rate ($100,000 suted value M - 2 200.0 2 200.0 - V 30.0 .
~ . Serial Preferr'ed $100 Suted Value Per Share,3,500 Shares Authorized 27.5 432% 2 .2 2 1I 4.56- 85 ' - 8.5 85 1 8.5 bhi -
4,72 . 70 - 7.0 70 -7.01 - 100 ' 42 4.2 42 4.2 :
~~ D i 5 40 66 6.6 - . 66 . 6.6 c 4
- z 1 6,00 6 .61 6- .6
%. 81188189100 > 91 7.00 18 1.8 18 1.8
- 7.% ~ 135 . 13 3 . .135 .133 8.92 .- 69 6.9 69 6.9 9.08 165 163 - -165- -16.5 5% Prefened. $100 Sured Value,127 Shares . .
Authoriied and Outsumhny -127- -12.7 -127: ; 12.7 - TOTAL -- $ 3414
. - $ 1414 -
rwcw nto s ikwmber um on sm ihms exh or senes A. senes n.senc, c aw see,0.cre 4.5t4w, m ia an, mpettita.
- .j it Mandatory redemptisn requirements at stated salue plus_ may not pay cash dividends on common stock. The entire c -
accrued dividends on the $7.12 No Par Serial Preferred Stock . setics of $7.70 No Par Seria l Preferred Stock is subject to - *' g are 11000 shares annually beginning in 1991 If the Compdny - mandatory redemption at suced salue plus accrued dividends - , c 'is in default in its obligation to make any such redemption $. it - on August 15,200L
+
n ,
-P 4 i F .1 c, , O ' i ~ P
- 51
GD16 5. LONG-TERM DECT AND CAPITAL LEASE DELIGA TIONS The Company's long term debt and capital lease oblications w cre as follout ant iu.sor lotumotumn a n IWi- lWO PACIFICORP First nongage and collateral rer f onds Maturing 1992 thngn 19%/4%b8%4 $ 3%4 $ 318.9 Maturing IW7 through 2002/70101* 6933 346 3 Maturing 2003 through 2007/8%9 NJ 441.5 4215 Maturing 2008 thmugh 2021/83L9%1 4510 439.8 Scheduled for redemption in February 199?id) 2013 ' .201 3 E """'t "' P""'i"" '"at" '""' '""d'
'"' "'" ~"# h 20F$b' 36g0 ? iga a JI 11 HiIGE -
gggg,7 6%S %9 due 2003 through 2005 36.9 ' 36l9 5.9410]% due 2004 through 2017M 249.6 . 339.6 mm Funds held by trustec 09) . (4.5) . I" 7.5% Debentures due 1991 - 70.0 Term hun agreement due 1994 - - 55.0
*U Commercial paper and uncommitted bank linesd *d' 140.0 100.0 Leveraged ESOP hun guaranty 26.2 319 9~50 Unamortized premium and dscount i1.0 8.0 Capiullease obligations (Note 7) 20.0 1310 y
. TOTAL 1087.6 2J81.0 L og I,ew current nuturities 68.0 76.8 TOTAL 1019.6 2J04 2 10 5 m- SUBMDIARIES
*-15% Fint mortgage notes and bonds
'W i j maturing through 2024 170.8 174.1 -
it i4%124 Notes due through 2007 s 1011 89.4 El3 l'nsecured domestic credit agreements'bd 54.5 101.0 . Commercial paper and uncommitted bank lines Wi 279.1 314.4
. m n . n w on 9) - Variable rate notes due through 199We 339.8 80.6' 8.2%-10.1% Medium term notes due through 2006 6503 '46i2 I cveraged ESOP kun guaranty 319- .412-Capiallease obligations (Note 7) 2&4 30.1 TOTAL 1.6619- . Is2910 -
I en current maturities (d3 217 TOTAL 1.fm6 ~ 1.2723 TOIAL $ 4.620.2 $1976.5 FINANCIAL SERVICES 6%I15% Nonrecourse debt due through 2031 $ .1843, $ 189.8 15%10%9 Senior debt due thniugh 19% 18& 6 251.1 9.2bl037 Seniur subordmated debt due thniugh IW8 6i0 710 10%-10]% Junior mbordinated debt due through 1998 3&9 51.2 Commercial paperM* 97.1 130.0 TOTAL $ 5743 $ 6911 m hhes sw nusm m 4 m h,na imc&curre nNaions eder an equnatem to4 ear >cn Ian. A currency w ar amerted the fiwd ate ten ruNirv en Ikeng rne l! Si 6&r hdshts bed a samomh 1.lBOR phn A 9 knowt tre 6 #4 at themkr 3L IWit (b)(metest rato duttoxc inwd on urwi un panarih en cerafate of depair ntes. imertek b>rwing rates or pnme ratet M Scturof k pledged Ents.tgue h:nds geurah at the ume miereu ntes mannin data and redempr.cn I* dim a the mured p&non cmm4 :mouc brna. (dilhe Cornpames hee the dalitv tmupport short tenn b cwmo and cunent dcN bevat ref. nano:d m a ktterm hais thrad itwhing imes c(creat and term Wn accenra and therche, based upm nunaemenn mcrm. hm clasdied $970 milkn ci short term deh md $201 mibm uf kr. perm Jebc s heduled li>r pnmem m l ebruan l'N2 e kmperm dcht P s . t. 1I i e o e P , b$ 5 y g-
The Companies hne entered into interest rate swap and PacifiQirp to effeuire ratn of 6.9% and 7%, respectively, - nehange agreemenn to redate the impact of changes in inter- at December 31, IW1. The debt wa used to acquire the nt ratn on theiraariable ute long-term debt. At December Company's common stuck. Common equity has been 31,1%), the Companies had outsunding 13 internt rate con. . reduced and long-term debt hn been increased by the tact)wich commerdal baoks and Fortune 50Numpanics, hn- amount of the debt guaunteed. Remaining unallocated com-ing a thral notional principal amount of $%4 mdlion Thne mon 3harn toul 2,839/>48
- agreemenn thange the Companies interest ute npmure on Nonrecoune long-term notes are secured by assignment of '
' the undedying variable ute debt to effeuise rates of 6M t rebted Gnance receivable, asset security interests and cad 119. The<e contuets nuture at various timn up to the year Om imm opeuting leasn as collateral. The noteholden hae 2002.The Companies are exposed to aedir loss in the o ent of no additional recourse to the O>mpaniet nonperformance by the other panin to the interest rue swap Subordinated long-tenn debt is mladinated to senior short-agreements flowever, the Companin do not anticipate non-term debt and senior longterm debt. Junior suludinated debt performance by the counterparties is further suludinated to senior subordinated debt.
. Approximately $5 billion of the assen of the Companies 11aturity and sinking fund requirements on all long-term debt se(ure long-term debr and upiollease obligations First man-and capiul lease obhgatiom and redeemable prefened stock gage and wilateral trust bonds of the Company may be inued outsunding are $319 milhou, $63% million, $222 milhon, $680 in amounts limited by propeity, earni,ngs and other prmisions rn6on an@ mEon in lW2 through 19%, respectively.
of the montage indentures. The Company's Mangaga and Deeds of Trust, as supple-The Gimpany and Inner Pacinuirp guauntee certain debt of rnented, rebting to its loneterm debt, restrict the payment of the Lesenged ESOP Trmt e ublished under the K Plus Plan
h dividends and other distributions on common smek. At (the " Trust"t in addition, the Company and inner Paci603rp Dece her 31,1941, the Company's retained caming avail.
guarantee the Tnnti eformante l under ceruin interest rate able for thne purposo was $915 million. maps haing a tool notional prindpal amount of 9's million that were enteied into by the Trust and a commercial bank. The Company made interest payments net of capitalized Thne arungemenn change the interest ute expnure on the intere3t, of $554 million, $531 million and $523 milhon in
- variable ute debt guaranteed by the Company and Inner lWl,1990 and 1989, respectis ely.
NOTE 19. LEA 5E5 . 9 The Companies kase cenain pmoertin under kaso expiring in the Wyodak coal 6ted geneuting phnt. At December 31, during the next 84 years. Renuh on lease renewah are subjeu 19%, Ekuric Opeutions had recognized the following amounn to negotiation. Certain knes prmide for options to purcha3e at rebting to the Wyodzk kase $132 million in capiulized net faur trcuket salue. The Companin are also committed to pay propern, pbnt and equipment $127 million in long-term capiul all taxes; apemn of opeution (other than depreciation 6 and kase nbligations; and $17 million of 1990 rent npense. maintenance applicable m the kned propen). Pmpeny, pbnt and equipment indade the following amounts On April 8,1991, Ekuric Opennom purchned equity interem for leases that have been capiulized: inLlJUM OF llot. TARO DEt:DudR 31 2 1991 1990 Ekctric $ 39 $185 Mining and itesource Development 25 48 64 229 1.ess accumulated amoniution 24 74 TOTAL $ *) $ 155
-Lease amoniation apense is induded in depreciation expense amount equal to the annual lease pnments is induded in rent ncept for Electric Opeutiom. Consistent with sute regubmn' npeme. Imputed interest components of those lease payments tr,utment for Ekctric Operations ute-making puqen, an approxinuted $1 milhon in lWI and $11 milhon in 1990.
- P s i 1 ! I e 0 a P 53 e
311NI.\lll31 REATAI.S !!NDER NONCANCEll.4/il.E IL15ES wu hm or f ut tw tunin a n OPERATING C\PITAl.lZEI) ' IEASES- 1 EASES lV12 $ 41 - $5 1993 21 '5 174 16 5 1995 13 5 19 % 10 - 6 , Thereafter 119 100. TOTAL $220 126 1,cu imputed interest 78 Present ulue of minimum rental payments 48
- 1. css current portion 2~
1,0NG-TERM CAPITAL LEASE OBl.lGATIONS $ 46 Net rent expense, induding Electnc Operations
- rent expense her 31, lWI, lWO and 1959 was $M million, $72 million and .
atuibutable to capiulized leav:s, for the years ending Decem- $9) million, respectisely. (NOTf t. C0$tQtThtENTS AND CONTINGENCIES CONSTRUCTIONAND OTIlER The Company and-its subsidiaries are panies to urious lega! clainw, actions and complaintuenain of u hich involve materi-Comtruction prognms are estimated at $939 million for IW2. As a a! anmnts Although the Company is unable to predict wich pan of these prograna, sulwuntial commitments has e been made. certaint) whether or not it will ultimately be successful in: Electric Operations has agreed to purchase from an unaffiliated these legal pmceedings or, if not, w hat the impact might be,
~
supplier 1.28 million tons of coal per 3 ear m er the next 21 yeaa
- man.igement presently beheses that disposition of these mat-In connection with certain option prm isions conuined in limit- ten will not have a materially ads ene effect tin the Company's ed partnenhip agreements a kbsidiary of PFS may be obbgar- consolidated resula of operations.
ed to purchase the other partnen' interests .it urious times through 1992 for an aggregate of $26 million.
+
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+
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i JulXilXOlVNEI)I'IANTS At December 31, lWl, Electric Operations' panicipation in jointly owned plants uas as follow MILLloMOf DOLtARS El.ECl RIC Pl, ANT CONSTRtUI10N OPERATIONS' , IN ACCtTit'IATED %0RK IN SilARE SERVICE DEPRECI ATION PROGRESS Ce sha 47.5"t $ 160.5 $ 914 $ 7.6 Jim hndger (Imts 1,2,3 and 4 (47 7(45 252 4 7,2 Trojm 2.5 19.5 8.0 .9 Cohrrip li nia 3 and 4 10.0 1974 37,4 .9 flunter l'nir 1 918 245.9 80.1 ,2 Ilunter l' nit 2 90 17K4 50.5 1.3 Wyodak* 80 0 28i 7 fA9 1.1 m Had umkr beuxed kee contement linder the joint agreements, each participating utility is respon- centage of pmject annual costs (opeuting expemes and debt ser. sible for financing in share of construction, opeuting and leas- vke). These costs are included in opeutions expense. Electric ing costs. Electnc Operations
- ponion is recorded in ia apphca- Opeutiom is required to pay its portion of the debt service, ble opeutions, maintenance and tn accounts- whethet or not any twwer is pnduced. The arungements paw Consohdated resenues include coal sales to the Jim liridger side for nonwithdrawable power and mmt of them ahn provide Power Plant joint senture partner of $39 milhon, $41 million for additional power, withdowable by the districts upon one to and $1? milhon in 1991, IWO and tw). respeytively, fne 3 ears' notice. For IWl, such purchases appmximated 4.3%
of enern requiremenn; an additional 10,7% was obtained Subsuntial amounn of lw er are purchased fmm ses cal hydn, through other purchase and net interchange arungements. electne projects under long term aron;temenu with public utih-ty datrien. These purchnes are made on a " cost-of-servie" At Decpmber 31,1991. Electric Operations' share oflong term basis for a suced percenage of project output and for a like per- anangements with public utility districts u as as follows: GENERAIING YEAR CON'l RACT CAPACITY PERCENTAGE ANNUAL - FACll.lTY EXPlRES (KW) 0F Ol"lWF COST W Wanapum 2009 155,444 - 18.7 $ 4.1 Priest Rapids 2005 109fh2 119 2.8 Rocky Reach 2011 (A297 5.3 1.7 WcIls 2018 54.199 7.0 1.5 TOTAL 3n541 $ 10.1 W Aamahom im!ude deut wnne of M M mht The Company ha a 41 mterest in the Internwontain Power chase egacit) and enere fmm Company plants equal to the Project C' Project 1. hwated in central liuh. The Company and Grapany's 4% entitlement of the Project at a price equivalent the City of Lm Angeles hne agreed that the City will par- to 4% of the expent.s and debt servic'e of the Project. i P s c I i 1 c 0 t P . .Z 55
4
, ]MW&W$0ffNXf$l. l &{ 0 ? j.l?l.ll?l i ll l&
'Ibc Compan3i effectne mmbined fedeu! and sute income eulin ute of 34% was applied to income before income tnes us rate was TrA in 1991 and 319 in 19W and 33% in 19x9. und the recordeJ ta expene iuewnci!cd as follow t The d,fference betw een taes cakulated as if the sutimxy fed-s!!U.lONs Of lxil Ab i P OR 'llit MAR 1991 Pro 1989 CO\1Pt TED FEDER M. INCO\1E TANi~.N $ 2413 $ 2314 52374 REDlUllON IN TAN Rest'LTING FRO \1
- Exceu (dc6ciency ) of en m er twk deprecianon f Cow-through basia 2.2 9.7 G Imestment en acdin 16.3 lh4 14 6 0:her items capiulsed and mistel!aneom ddTerences 27.3 115 (t3 -
{11IH7tlf 4i8 Fedeu! cn reductions 41.6 17.4
/\T Oll IlVRl'lf mmg i EDERAl,INCO\lE TAN 1917 1945 220.2 5'l NI E INCO\lE TAN. NET OF FEDERAL INCO\tE TAN BENEFIT 7.5 1s.9 111
= TOTAL.lNCOME TAN EXPENSE $ 2M.2 $ 2tC $ 2313
- U -~ - - - - INCO\lE TAN EXPENSE CONhKI S OF Tile 1 OI. LOWING TANES Cl'RRF.NTLY PROVIDED nn . _ . _ _ Fedcol $15K4 $ 1794 $ 1013 Sute 17.7 264 .I13 DEFERRED INCO\lE T\NES d- -
Deprecution differentes 34 4 th3 M4 1nungible drillinc costs 2tt? 74 14 g _, Sale of contutt entidements (42M th) 414 Leasing income recornition differences 21.0 69 2 711 Exceu ofin gain on dkposition awets A2) (4i71 19.1) E5 -- Attrued pemion and retirement benefits (11.4 ) 16.3) .5 Other (13) (204) (2R8) INVESTMENT TAN CREDITS - NET dh3) ( th41 tla2)
's va M, m--w+m - lOTAL $2012 $ 2tC $ 2313 Dunne Ptn the intemal Resenue Senice (the ' IRS 7 tom- Financhd Senices autuires housing projects that qualif3 for the pleted it3 cxamination of the Compan9 fedeul income in low inmme housing credit esubihhed as part of the Tn retums for the 3 cars 1%3 through 19% and has proposed cer. Reform Act of 1986 to proside an incenthe for the deselop-um aJpntments inucasing uses by $lil million. Amonc . ment and preserudon of prhatch-owned affordable renul ,
other ioue3, the IRS is challenging the Compann ab.mdun- bousmg. Annual tn benefits scheduled to be recched from ment of its 10% interest in hhington Public Power Supph these projett3 are expected to appmumate $10 million each System l' nit 1 These pmpmed adjustments represent the 3 ear from 1042 through FM
~ ~ ~
IRS's irunal aadit position on speci6c issues and the IRS has Dcferred income tnes hae not been prosided on ceruin tmk not hsued a formal notice of tn dencienc3 and tn timing differences a the method of ute making is The Sute of Monuna hn proposed a txt inacase of $W mil- haed on uscs omrendy payable, . l h s npected that there hon. including imerest inrou2h December 3 E 194E rdanng to will be recmer3 of future tnes thrcugh tesenuet At Monunn position that terum subsidiaries should be culad- December 3E PhE actumulated timing differences for which ed imm the NERCO and PxifD -hined union retum. deferred tnes hae not been prmided amounted to approxi-The Company hu Eled pr. , to these propmed '"d'@ D M" ad;ustments with the IRS and , . t Monuna. In the opin- The Compan3 maJe income tn paments, net of refunds, of ion of management, bawd in part. Ji<msium with coumel, $172 mdkn. ilh6 mil! ion and $105 milhon in Phl, PNO and the ourtome will not hae a nutenal effect un the Compann 1959. respectneh conwhdated f nancia! position or rew!ts of operations. o P 4 0 I i I ( - 4 P b
6 i
'. L GOT$ 10. NEftKEMENT 9 TAN $ ' .
The Companies hne pension plans un ering su!wtantially all of more than the maimurn annunt of pension expense which can their emplo3ect llenc6ts under these plara are generally tused . be deducted for federal income tu purposes. Unfunded prior on the empimee's years of senic and aserage month!) pay in senice ants are anmnited mer the remaining senice period of the fhe cornecutise yean of highest pay out of the last ten employees expected to receive benefits. At December 31,1991,
)ean, with adjustments, execpt fur Utah Power bargaining unit plan assets were primarily invested in common stocks, bonds and U.S. government obligations.
employees to rc6ect bene 6ts estimated to be received imm Social Security. Pension costs are funded annually by no Net pension cost inummarized as follews: slllLIOMOf DOLLAR $!FORTHERAR 1991 1990 1989 Senice cost . bene 6ts earned $ 19.4 $ 20.4 $ 20.6 , Interest ont on projected benc6t obhgation - 66.8 57.7 510 Actual gain on plan anen (11K4) (24.5) - (58 1) Net amonization and deferral 79.6 153 1.7 Regulaton deferralW (311) (618) (5.5) NET PENSION C051" $ 143 $ 11 $ 11.7 m Flectur Operarmm hn retened acccontmi; urlen frem in pnmay ad (crum other regub:an authooiicuo defer ihc ddfcTence terween pene we deernuned m a.mdmse wab FAs C and mnd that detenmned foi fundum purrect The funded status, net pension liability and signi6 cant usumptions are as follow s: kHLLIONsOf DOLLARS!DECulBER11 PLANS WITil PLANS WITil A%ETS IN EXCESS OF ACCl311: LATED BENEFITS ACCl31l' LATED BENEFITS IN EXCESS 0F ASSETS 1991 1990 1991 1990 At tuarial present valu'e of ene6t obligations Vested benefit oblication $ 1317 $ 79.8 $ 53&9 $ 556.9 -
. Accumulated benefit obliga: ion 137.7 813 577.8 590.7 -
Projected bene 6t nbligation 179.8 117.S 6319 64&8 Plan a3sen at fair value 2ih6 136.2 - 446.9 eli3 _ Anets in enen of(or less than) projected bene 6t obligation 29.8 1K4 (187.0) (201$) Unrecognized prior service cost 13 13 10.8 11.9
- Unrecognized net gain (216) (1.6) (10b.8) (74 3 )
Unrecognized net (nset) obligation at January 1,
' being amonized over 7 to 22 yean (15.1 ) (10.I) 122.4 128.0 Minimum lubihty adjustment .7 -
(57.5) (62.41 .: NETPENSIONASSETtLIABILITY) $ A9) $ K0 $ 121RI) $(2003)
+
Diwount rate MG 96 89% 9% Expected long-temi rate of return on awet3 MG 83 6 8M 8-9% Rate ofincrease in compensation les els 545% 5459 6451 46.M laciuded in the table abme is the Company's nonquah6cd owned life in3crance on the lises of pbn participan:s. As a pbn for certain management employees of I' rah Pawer. Prior result of regubtory orders, the Company defen all benefits and ' to 1990, benefits were baed on final sabry upon retirement or cosa under the pbn and maintains sufficient life insurance death. After Januaiy 1, two. benc6r payments are baed upon rebted to the pbn such that the present value of the life insur. ubrics at that due. The p!an is being funded by Company ante parceds will at test equal the present ulue of all pbn P s c I F'i e'o .R P 57 .
. - - . . . . . - - . -. - ~ , - - - - -
+ l
_/ ' non and premiums on the hfe imurancec At December 31, %c financial Accounnng Sundards lWrd has inued i AS 1%, , L 1WI and IW1icum'ubted defened bcnerin and Eusts net of Employers' Accenting for Pm retirement Bene 6a Othir Than n
- accumubted imuunce proceeds amounted to $140 million ; Pen 4>nt". Thinutement will require accrual of pmtretirement =
and $121 million' respectisely, which are incladed in deferred
, bene 6ts such as heahh care bene 6ts,', ing the yean an employ-charecs in the accompanymg bahnte sheett The life insur-- -ee punides senice? Effective for employees _reti'ing t after ance policies wh'ich have total cash surrender tatues at December 31,'lWl, the Companies hae reviwd their retirre -
December 31,1991 and IVm of $67 mdhon and $58 million, tec6 pmgums, The resisions include limiting the amount of - respectively, are not comidered to be anca of the pbn for pur- subid) panided for medical benefin, limiting the annunt of subi poses of determining net periodie ant. sidid hfe inmunce' benefin and changing the way the medical During 19W, ai part of in metall cost reductiJn pmgrant pbns utegrate with medicate for all retired employect Based - _ Electric Opeuriom offered an cady retirement incentise pnr upon :ie mmt recent actuarial sthdies,it is estimated the gum. Included in the uhle alwc is the present ulue of all Comranies have a tunsition obligadon liability of $240 million. : future termination benefits pnaided of $47 milhon. Electric ten statement allows for either immedute recogmtion 'of this: Operation has re cised regubuny accounting orden to defer - tramition obligation liability or amortintion of that liability over's1 thew unn as a regubtory asset to be amonized m er thin) yeart period of up;to 20 yeart The Company rnay seek regulatory : The Compmies prmide health care and hfe imuunce benefin apprmal to defer the ddTerence trtween net periodic owe and ; - - for their retirees on a treinobstantially s.imilar to those who are . con incuned for future collection from utepay ert The Company actise employeet The emt of these benefin, which is charged has not decided w hkh options it will me fri rengnitirm of the lia-
' to expeme as incurred. was $10 miHion in 1991, $9 million in hihtClhe Companies are comidering cady adoprion of this sute-IYd)and $7 million in 1%9. nw nt, which is required to be adopted no bier than 19911 DVOTE t t. Sy8 SEQUENT EVENT (UNAUDIT D) ,
Namul gas prito hae declined shaq ly i in cady IW2. As a resuh ony arlAbrch IW2 gn prices ;ind other information turrendy of this decime, hiining and Resourte Development _ expeen to auil, ble, Alining and Resource Doelopment expects to recog-retognise a noncash impairment expeme on in oil and gn pmp- mze a i'nt q'uaner after-us awet imrirment expense on its oil; enio in the tint quarter of IW2. The amount of the write ^wn and gn propenies ranging fmm appmsinwely $150 million to L will be based upm .\ lining and Resource Doelopment's culua- $175 million. tion ofin od and gn pmpenio at current prices. Ilow c er, bned
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PolJCYGROl'P Charles C. Adams,4% William W. Ly ons. 57 A. 51.Gleawn (;l " 3enior Yur hnu er S.un* I ra hr-d a
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Paak Purer Charles E. Robinson. 5s ,f *In7 "".9 "d'H's"' O.n m e an/ {u ]' John A. Bohling,4S ui,(hramromar , s y ., f gy,g, p gy, 5tichael C. llenderwn. 45 Paa:u lM ,
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INDEPENDEN1
;\l'DITORS Delo ne & Touche ni:an1 ca r: RAr:n itah _
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hWESTORINFORMATION STOCK EXCHANGEllSTINGS DI\'IDEND REIN 1'EST31EhT AND STOCKPURCHASEPLAN Paci6 Corp,nommon stock is h.sted on the New i.ork Stock Euhange and the Paci6c Suk Euhange under the sym. PacifiCorp's disidend reimestment plan is a convenient way for shareholders to increase their investment in the company. bol PPW. Dai!) quotes on the common stock can be obtained by check. Under the plan, quarterly dividends from common and pre- , ing the New York Stock Exchange composite transactions bst. fened shares (all or a portion)inay be automatically applied toward purchase of additional shares of common stock. In addi-ed in bical new7papen.
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The company's preferred stock and 6rst mortgage bonds are
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infrequently traded in the over the counter market. sold through the plan upon termination of participation. PUhllCINf0R3/ATION A smaH commission fee is charged when applicable.
~
Financial analysts, statkhrokers, interested imestors and finan- Eusting shuchohlen can open a disidend reinvestment account cial meda desuing irformation about PacifiCorp should contact with either dividends from existing shares or with an initial cash the following indis iduah in im estor relations: contributioh. For a prospectus, enroHment card or other informa-tion can m write the shareholder services department
.llitr Ndes (5J3173/ !IS ChnsHunte (523)1312M BONDHOLDERINFOR3fATl0N SHAREHOLDER SERl' ICES AND INf0R314T10N Inquiries concerning lost bonds interest payments, changes of address and other matters relating to ownenhip should be Shareholder Services may be reached from au long distance caH directed tw kicatium at MW) 233-5451 Ponland-area caHers should use 731 2W2. The toll free telephone number is answered betw een Corporatt TrutGpemnons(kg N00 a.m. and 4:00 p.m. Pacific time escry business day. Td! mand 3/ai/ Unit Shareholder Senices will assist you with: 55Erkan;yPha BasematA Ner: York,hYIJ26MD
+ Stmitranjerandnamedagerrgw.mee pg,,
6 Addi m kan#d Bondholden needing funher assistance should contact
+ Paplasementofkihdkis PaaliCorp SkardoldeSmbs, (5J3)731 d W
+ Duplicatt IJ99lorms and BL 9 tax ampanonpnns Ts'i-F m N & r % h D %5 5
+ Naim ollostordanwdstakemikata ANNUAL 31EETING
+ Ditidad Rscustmat Pivt sta:emat hetory and The 1442 Annual Meeting af infonnanon regaregIArplas PacifiCorp Shareholders will be:
Wea'nndat Jia;13,I991
+ 0:kr quancns amming PaapCorp ski or:neship 13Jp.m. PaafxIkniight Time Shareholden' w ritten currespondence:
gg, PaaiiCorp ShardolderSmbs 777 N.E. 3/artin Ider King, Jr. Boulaani 7JJ NE.3Ix!!nomah St., Suitt 7dd Pand,0nyn Pcrt!and. Onyn 97DMI07 FOR3110.K TRANSfERAGENT A copy of-the company's 1991 10.K, fded with the Securities Paci6 Cap maintain shareholder record, and acts as Tramfer and Exchange Commission, may be obtained by contacting Anent und Registrar for the company's common and preferred im estor relation at the corporne headquarters address. stock insucs-DIVIDEND PADIENT Disidends on the company's common and preferred stock in 1992 are expected to be paid on or about - Edruary 15 Alay 15 August 15 Soumkr15 P s C ! F I c 0 t P 62
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