UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 1995 or
Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from ______________ to
____________.
Commission file number: 1-3368
THE EMPIRE DISTRICT ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
Kansas 44-0236370
(State of Incorporation) (I.R.S. Employer
Identification No.)
602 Joplin Street, Joplin, Missouri 64801
(Address of principal executive offices) (zip code)
Registrant's telephone number: (417) 623-4700
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days. Yes No ___
Common stock outstanding as of August 1, 1995: 15,073,762 shares.
THE EMPIRE DISTRICT ELECTRIC COMPANY
INDEX
Page Number
Part I - Financial Information:
Item 1. Financial Statements:
a.Statements of Income 3
b.Balance Sheets 6
c.Statements of Cash Flows 7
d.Notes to Financial Statements 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
Part II - Other Information:
Item 1. Legal Proceedings - (none)
Item 2. Changes in Securities - (none)
Item 3. Defaults Upon Senior Securities - (none)
Item 4. Submission of Matters to a Vote of Security
Holders - (none)
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 14
Signatures 15
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended
June 30,
1995 1994
Operating revenues:
Electric $42,226,197 $41,354,841
Water 238,752 240,384
42,464,949 41,595,225
Operating revenue deductions:
Operating expenses:
Fuel 6,814,283 7,080,266
Purchased power 8,339,702 9,015,726
Other 7,827,310 7,557,958
Total operating expenses 22,981,295 23,653,950
Maintenance and repairs 3,374,389 2,581,982
Depreciation and amortization 4,826,221 4,588,054
Provision for income taxes 1,803,790 1,823,770
(Gain) Loss on Disposition of (31,328) -
Allowances
Other taxes 2,475,626 2,514,404
35,429,993 35,162,160
Operating income 7,034,956 6,433,065
Other income and deductions:
Allowance for equity funds used 336,502 201,386
during construction
Interest income 140,047 5,046
Other - net (122,453) 26,692
354,096 233,124
Income before interest charges 7,389,052 6,666,189
Interest charges:
Long-term debt 3,873,631 3,174,683
Commercial paper 99,988 196,709
Allowance for borrowed funds used (400,971) (187,478)
during construction
Other 84,633 76,495
3,657,281 3,260,409
Net income 3,731,771 3,405,780
Preferred stock dividend requirements 604,085 258,586
Net income applicable to common stock $3,127,686 $3,147,194
Weighted average number of common 14,697,172 13,678,851
shares outstanding
Earnings per weighted average share of $ 0.21 $ 0.23
common stock
Dividends per share of common stock $ 0.32 $ 0.32
<FN>
See accompanying Notes to Financial Statements.
STATEMENTS OF INCOME (UNAUDITED)
Six Months Ended
June 30,
1995 1994
Operating revenues:
Electric $84,860,719 $82,818,875
Water 472,861 449,116
84,860,580 83,267,991
Operating revenue deductions:
Operating expenses:
Fuel 14,205,348 14,347,005
Purchased power 16,238,250 17,602,092
Other 15,449,432 14,881,452
Total operating expenses 45,893,030 46,830,549
Maintenance and repairs 6,192,899 4,793,470
Depreciation and amortization 9,498,930 9,123,767
Provision for income taxes 3,820,545 4,021,470
(Gain) Loss on Disposition of (31,328) -
Allowances
Other taxes 5,004,243 5,072,818
70,378,319 69,842,074
Operating income 14,482,261 13,425,917
Other income and deductions:
Allowance for equity funds used 739,947 323,874
during construction
Interest income 169,192 15,901
Other - net (71,993) (74,844)
837,146 264,931
Income before interest charges 15,319,407 13,690,848
Interest charges:
Long-term debt 7,466,347 6,350,066
Commercial paper 372,044 351,869
Allowance for borrowed funds used (959,498) (287,321)
during construction
Other 142,754 127,675
7,021,647 6,542,289
Net income 8,297,760 7,148,559
Preferred stock dividend requirements 1,208,170 354,858
Net income applicable to common stock $7,089,590 $6,793,701
Weighted average number of common 14,333,650 13,635,701
shares outstanding
Earnings per weighted average share of $ 0.49 $ 0.50
common stock
Dividends per share of common stock $ 0.64 $ 0.64
<FN>
See accompanying Notes to Financial Statements.
STATEMENTS OF INCOME (UNAUDITED)
Twelve Months Ended
June 30,
1995 1994
Operating revenues:
Electric $178,380,726 $174,133,099
Water 968,822 867,816
179,349,548 175,000,915
Operating revenue deductions:
Operating expenses:
Fuel 30,259,513 30,643,769
Purchased power 33,246,801 37,966,028
Other 31,270,066 30,727,357
Total operating expenses 94,776,380 99,337,154
Maintenance and repairs 12,183,558 10,156,574
Depreciation and amortization 18,714,344 17,959,857
Provision for income taxes 10,478,075 8,167,840
(Gain) Loss on Disposition of (35,527) -
Allowances
Other taxes 10,167,619 10,076,055
146,284,449 145,697,480
Operating income 33,065,099 29,303,435
Other income and deductions:
Allowance for equity funds used 1,146,432 323,874
during construction
Interest income 244,977 72,712
Other - net (221,926) (179,675)
137,694 216,911
Income before interest charges 34,234,582 29,520,346
Interest charges:
Long-term debt 14,072,923 12,975,892
Commercial paper 725,086 458,502
Allowance for borrowed funds used (1,656,722) (424,682)
during construction
Other 260,995 229,714
13,402,282 13,239,426
Net income 20,832,300 16,280,920
Preferred stock dividend requirements 2,409,382 547,403
Net income applicable to common stock $18,422,918 $15,733,517
Weighted average number of common 14,080,338 13,563,030
shares outstanding
Earnings per weighted average share of $ 1.31 $ 1.16
common stock
Dividends per share of common stock $ 1.28 $ 1.28
<FN>
See accompanying Notes to Financial Statements.
BALANCE SHEETS
June 30,
1995 December 31,
(Unaudited) 1994
ASSETS
Utility plant, at original cost:
Electric $659,409,631 $606,519,616
Water 4,979,986 4,863,228
Construction work in progress 16,264,887 45,317,772
680,654,504 656,700,616
Accumulated depreciation 216,567,348 210,858,722
464,087,156 445,841,894
Current assets:
Cash and cash equivalents 3,339,291 3,362,653
Accounts receivable - trade, net 11,083,998 10,653,580
Accrued unbilled revenues 5,321,722 5,041,575
Accounts receivable - other 1,885,431 2,878,122
Fuel, materials and supplies 14,652,033 12,970,376
Prepaid expenses 745,671 708,253
37,028,146 35,614,559
Deferred charges:
Regulatory asset 26,381,515 23,657,498
Unamortized debt expenses 14,822,324 13,166,603
Other 2,306,284 1,932,798
43,510,123 38,756,899
Total Assets $544,625,425 $520,213,352
CAPITALIZATION AND LIABILITIES:
Common stock, $1 par value,
13,766,399 and
13,571,186 shares issued and
outstanding,
respectively $15,062,574 $13,941,531
Capital in excess of par value 122,841,368 106,055,389
Retained earnings (Note 3) 51,610,281 53,783,342
Total common stockholders' equity 189,514,223 173,780,262
Preferred stock (Note 4) 32,901,800 32,901,800
Long-term debt 194,859,882 184,976,950
417,275,905 391,659,012
Current liabilities:
Accounts payable and accrued 12,060,584 11,459,243
liabilities
Commercial paper 8,000,000 16,000,000
Customer deposits 2,458,386 2,385,182
Interest accrued 3,331,944 3,413,850
Taxes accrued, including income 4,389,810 1,557,744
taxes
30,240,724 34,816,019
Noncurrent liabilities and deferred
credits:
Regulatory liability 19,358,341 20,683,409
Deferred income taxes 61,222,985 56,229,391
Unamortized investment tax credits 10,544,280 10,741,000
Postretirement benefits other than 4,124,729 4,083,626
pensions
Other 1,858,461 2,000,895
97,108,796 93,738,321
Total Capitalization and $544,625,425 $520,213,352
Liabilities
<FN>
See accompanying Notes to Financial Statements.
STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended
June 30,
1995 1994
Operating activities:
Net income $8,297,760 $7,148,559
Adjustments to reconcile net income
to cash flows:
Depreciation and amortization 10,056,015 9,569,630
Deferred income taxes - net 925,577 1,825,714
Investment tax credit - net (196,720) (240,320)
Allowance for equity funds used (739,947) 323,874
during construction
Issuance of common stock for 401(k) 332,584 324,475
plans
Other (22,024) 851,603
Cash flows impacted by changes in:
Receivables and accrued unbilled 282,126 (1,050,054)
revenues
Fuel, materials and supplies (1,681,657) (821,569)
Prepaid expenses and deferred (3,402,448) (1,465,947)
charges
Accounts payable and accrued 601,341 687,143
liabilities
Other liabilities and deferred 4,106,744 4,074,866
credits
Net cash provided by operating 18,559,351 21,227,974
activities
Investing activities:
Construction expenditures (28,301,277) (34,694,183)
Allowance for equity funds used 739,947 (323,874)
during construction
Net cash used in investing activities (27,561,330) (35,018,057)
Financing activities:
Proceeds from issuance of first 10,000,000 -
mortgage bonds
Proceeds from issuance of common 17,574,438 1,730,566
stock
Proceeds from issuance of preferred - 25,000,000
stock
Dividends (10,470,821) (8,920,887)
Repayment of first mortgage bonds (125,000) -
Net repayments (issuances) from (8,000,000) (4,000,000)
short-term borrowings
Net cash provided (used in) financing 8,978,617 13,809,679
activities
Net increase (decrease) in cash and (23,362) 19,596
cash equivalents
Cash and cash equivalents at beginning 3,362,653 2,802,957
of period
Cash and cash equivalents at end of $3,339,291 $2,822,553
period
<FN>
See accompanying Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Note 1 - Summary of Significant Accounting Policies
The accompanying interim financial statements do not
include all disclosures included in the annual financial
statements and therefore should be read in conjunction with
the financial statements and notes thereto included in the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 1994.
The information furnished reflects all adjustments,
consisting only of normal recurring adjustments, which are, in
the opinion of the Company, necessary to present fairly the
results for the interim periods presented.
Note 2 - Accounting Matters
Effective January 1, 1996 the Company will be required to
adopt Statement of Financial Accounting Standards (SFAS) No.
121 "Accounting for the Impairment of Long-Lived Assets and
for Long-Lived Assets to be Disposed of." Adoption of this
statement is not expected to have a material effect on the
financial position, results of operations or cash flows of the
Company.
Note 3 - Retained Earnings
Second
Quarter
1995
Balance at January 1, 1995 $ 53,783,342
Changes January 1 through March 31:
Net Income 4,565,989
Quarterly cash dividends on common stock:
$0.32 per share (4,465,481)
Quarterly cash dividends on preferred stock:
8-1/8% cumulative - $0.203125 per share (507,812)
5% cumulative - $0.125 per share (48,773)
4-3/4% cumulative - $0.11875 per share (47,500)
Total changes January 1 through March 31 (503,577)
Balance April 1, 1994 53,279,765
Changes April 1 through June 30:
Net Income 3,731,771
Quarterly cash dividends on common stock:
$0.32 per share (4,797,170)
Quarterly cash dividends on preferred stock:
8-1/8% cumulative - $0.203125 (507,812)
5% cumulative - $0.125 per share (48,773)
4-3/4% cumulative - $0.11875 per share (47,500)
Total changes April 1 through June 30 (1,669,484)
Balance June 30, 1994 $ 51,610,281
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
RESULTS OF OPERATIONS
The following discussion analyzes significant changes in
the results of operations for the three-month, six-month and
twelve-month periods ended June 30, 1995, compared to the same
periods ended June 30, 1994.
Operating Revenues and Kilowatt-Hour Sales
Of the Company's total electric operating revenues during
the second quarter of 1995, approximately 38% were from
residential customers, 32% from commercial, 19% from
industrial, 5% from wholesale on-system customers and 2% from
wholesale off-system customers. The remainder of such
revenues were derived from miscellaneous sources such as
public street and highway lighting and other municipal
establishments. The percentage changes from the prior year in
kilowatt-hour ("Kwh") sales and revenue by major customer
class were as follows:
Operating
Kwh Sales Revenues
Six Twelve Six Twelve
Second Months Months Second Months Months
Quarter Ended Ended Quarter Ended Ended
Residential (5.5) (2.3) (3.5) 4.4 5.5 4.0
Commercial (1.3) 1.4 2.1 (0.4) (0.3) 2.2
Industrial 2.7 3.7 5.1 2.5 0.1 3.6
Wholesale On- (0.1) 2.0 0.6 (2.3) (4.0) (3.6)
System
Total System (1.4) 0.7 0.6 2.2 2.1 2.9
Wholesale Off- (11.2) (17.0) (14.5) (16.6) (21.7) (17.0)
System
Total Sales (2.2) (0.6) (0.7) 1.6 1.5 2.3
Residential Kwh sales decreased 5.5% during the second
quarter of 1995 compared to the second quarter of 1994. This
decrease was due primarily to the effect of decreased cooling
degree days and air conditioning load as a result of weather
conditions which were cooler (principally during June) than
the same period last year and approximately 30% cooler than
long-term averages. The effect of the cooler weather was
offset in part by an increase of 3.4% in the average number of
residential customers served over the same period a year ago.
Residential revenues were up 4.4% due mainly to the effect of
electric rate increases and changes in the Company's rate
design during 1994 in connection with the last Missouri
electric rate case. This rate restructuring resulted, in
part, in a greater rate increase for the Company's residential
customers than for its commercial and industrial customers.
Commercial Kwh sales and revenue declined during the
second quarter of 1995 compared to the year ago period
primarily due to cooler than normal weather during the second
quarter of 1995. The weather impact more than offset an
increase of 4.9% in the average number of commercial customers
served over the same period last year. Industrial Kwh sales
and related revenues were up during the second quarter of 1995
when compared to the year ago period as the Company's existing
industrial customers continued to experience increased
economic activity and business expansion. On-system wholesale
Kwh sales decreased slightly during the period reflecting the
weather conditions discussed above. On-system wholesale
revenue decreased during the second quarter of 1995 due to the
mild weather conditions experienced during the period and the
operation of the fuel adjustment clause applicable to such
FERC regulated sales.
Revenues from Kwh sales to other electric systems (off-
system) were down significantly during the second quarter of
1995 as compared to the same quarter a year ago, primarily as
a result of a reduction in low-margin, pass-through sales of
hydro energy to other electric systems.
For the six and twelve months ended June 30, 1995,
residential Kwh sales decreased slightly, reflecting the mild
weather experienced during the first half of 1995 as compared
with the first half of 1994. Residential revenues for the
corresponding periods increased primarily as a result of the
electric rate increases and electric rate restructuring
discussed above. Total Kwh sales to the Company's commercial
and industrial customers during the six and twelve months
ended June 30, 1995 increased as strong customer growth in the
Company's service territory continued. Revenues related to
commercial and industrial sales remained relatively unchanged
for the six-month period but were up slightly over the twelve-
month period when compared to the same periods ending June 30,
1994, reflecting the restructuring of the Company's rates as
discussed above. Revenues from on-system wholesale Kwh sales
declined due to operation of the fuel adjustment clause
applicable to such FERC regulated sales. Revenues from Kwh
sales to other electric systems were down during the periods
due to decreased low-margin, pass-through sales of hydro
energy to other electric systems.
On March 17, 1995, the Company filed a request with the
Missouri Public Service Commission for an increase in rates
for its Missouri electric customers in the amount of
$8,543,910, or 5.3%. Any increase which might be granted as a
result of this filing is not expected to be effective until
late 1995 or early 1996. The Company anticipates filing for
rate relief in its other jurisdictions later in 1995 or early
in 1996.
Operating Revenue Deductions
During the second quarter of 1995, total operating and
maintenance expenses increased approximately $0.1 million
(0.5%) compared to the same period last year. Purchased power
costs decreased approximately $0.7 million (7.5%) during the
second quarter of 1995, primarily due to lower customer demand
as a result of mild weather experienced during the quarter
(particularly during June) and improved availability of the
Company's jointly-owned Iatan Plant.
Total fuel costs were down approximately $0.3 million
(3.8%) during the second quarter of 1995, due primarily to a
5.0% decrease in fuel-generated kilowatt-hours reflecting a
decrease in the demand for energy due to the mild weather
experienced during the quarter. During the quarter, the
Company substantially increased its generation from higher-
cost, gas-fired combustion turbine units while experiencing
lower coal prices at the Iatan Plant and lower natural gas
prices when compared to the same period last year.
Other operating expenses increased approximately $0.3
million (3.6%) during the second quarter, due primarily to
increased work performed on the Company's distribution system
and higher general and administrative costs. During the
second quarter, the Company incurred costs associated with its
involvement in the previously disclosed proceedings relating
to the purchase of energy from Ahlstrom Development
Corporation ("Ahlstrom") and with steps undertaken by the
Company to improve its competitiveness in what it perceives to
be an increasingly competitive environment ("Competitive
Positioning Process").
As part of the Competitive Positioning Process, the
Company is currently in the process of re-evaluating its
existing structure with the goal of improving its efficiency.
Any change in the structure from the re-evaluation is expected
to be implemented in the fourth quarter of 1995. At this time
the Company is not able to estimate the costs which may result
from such a restructuring. In addition, the Company has
offered an enhanced voluntary early retirement program to 53
of its 654 employees which could result in a pre-tax charge of
approximately $5.4 million if all eligible employees accept
the program. Costs associated with the program are
anticipated to be recorded during the third quarter of 1995.
The one-time costs are expected to be recovered over a period
of approximately two years by reduced employee costs
commencing in November 1995.
Maintenance and repair expense increased approximately
$0.8 million (30.7%) during the period, primarily due to
increased distribution maintenance as well as increased
maintenance at the Asbury and Riverton Plants. The Company
placed Riverton Unit No. 7 (38 megawatts ["Mw"] of capacity)
back in service on June 5, 1995 after an extended outage to
remove cracks in the turbine rotor shaft which were discovered
during the unit's scheduled five-year turbine inspection.
Riverton Unit No. 7 was taken out of service on February 27,
1995. The total cost of the rotor shaft repair and turbine
inspection of Riverton Unit No. 7 is expected to be
approximately $0.4 million. In addition, more maintenance was
performed during the scheduled spring maintenance outage at
the Company's Asbury Plant during the second quarter of 1995
than was performed during the year ago period.
Depreciation and amortization expense increased
approximately $0.2 million (5.2%) during the second quarter of
1995 due to the additional plant and equipment placed in
service, primarily at the Company's State Line Power Plant
(see "Liquidity and Capital Resources" below). Total income
taxes declined slightly during the period due primarily to
lower taxable income.
For the six months ended June 30, 1995, total operating
expenses were down $0.9 million (2.0%) compared to the same
period last year. Total purchased power costs decreased $1.4
million (7.8%) during the period, due primarily to decreased
customer demand as a result of mild weather conditions during
the period, greater availability of the Company's Iatan Unit
and generation of energy at the Company's new State Line Unit
No. 1 (98 Mw combustion turbine) which became commercially
available on May 30, 1995. The effect of the decreased Kwh
purchases was offset in part by increases in capacity charges
compared to the prior year. Total fuel costs decreased
approximately $0.1 million (1.0%), due primarily to
significantly lower fuel costs at the Company's jointly-owned
Iatan Plant and lower natural gas prices which were offset in
part by significantly increased generation at the Company's
higher-cost, gas-fired combustion turbine units.
Other operating expenses during the six months ended June
30, 1995 increased approximately $0.6 million (3.8%), compared
to the same period in 1994. This was due primarily to costs
associated with Ahlstrom, increased work on the Company's
distribution system and cost associated with the Competitive
Positioning Process. Maintenance and repair expenses
increased $1.4 million (29.2%), due primarily to increased
maintenance performed at the Company's Asbury and Riverton
Plants as previously discussed, as well as increased
maintenance to the Company's distribution system.
Depreciation and amortization expense increased approximately
$0.4 million (4.1%) during the six months ended June 30, 1995,
due to the additional plant and equipment placed in service.
Total provision for income taxes decreased due to lower
taxable income.
During the twelve months ended June 30, 1995, total
operating expenses decreased approximately $4.5 million (4.6%)
compared to the same period ended June 30, 1994. Total
purchased power costs were down approximately $4.7 million
(12.4%). Purchased power costs were substantially higher
during the year earlier period in large part because flooding
reduced generation at a number of low-cost, coal-fired
generating stations in the Midwest and because of planned
outages of low-cost generating units at neighboring utilities.
In addition, the Company experienced increased availability of
its lower-cost generation units. Fuel costs decreased
approximately $0.4 million (1.3%) during the twelve-month
ending period, due primarily to the factors discussed for the
second quarter and six months ended June 30, 1995.
Other operating expenses during the twelve months ended
June 30, 1995, increased slightly compared to the same period
last year. Maintenance and repair expenses increased
approximately $2.0 million (20.0%) during the period, due
primarily to increased maintenance performed at the Company's
Asbury and Riverton Plants as discussed above, as well as
maintenance to the Company's Energy Center, and increased
maintenance to the Company's transmission and distribution
systems. Depreciation and amortization expense increased due
to the additional plant and equipment placed in service.
Total provision for income taxes increased during the period
due to higher taxable income.
Nonoperating Items
Total allowance for funds used during construction
(AFUDC) increased significantly during each of the periods
presented compared to prior year levels, reflecting a higher
level of construction work in progress, particularly due to
construction of the Company's new State Line Power Plant,
along with higher rates for AFUDC determined in accordance
with formulas prescribed by the FERC.
Interest income increased during each of the periods
ended June 30, 1995, reflecting higher interest rates earned
on investments and the temporary investment of the proceeds
from the Company's issuance of a new series of First Mortgage
Bonds prior to the redemption of another series of First
Mortgage Bonds. Interest charges on first mortgage bonds
increased compared to the same periods in the prior year due
to additional issuances of the Company's First Mortgage Bonds.
Earnings
Earnings per common share for the second quarter and six
months ended June 30, 1995, were $0.21 and $0.49,
respectively, compared to $0.23 and $0.50 for the
corresponding periods a year ago. Earnings for the current
year were negatively impacted by the effects of mild weather
during the first six months of 1995, increased dividend
requirements resulting from the Company's issuance of
preferred stock in June 1994, and the issuance of 900,000
shares of the Company's Common Stock on April 27, 1995.
Earnings for the twelve months ending June 30, 1995, were
$1.31 compared to $1.16 earned during the twelve months ending
June 30, 1994. Increased earnings resulted from the rate
increases received in Missouri, Kansas and Oklahoma and the
substantial increase in AFUDC.
LIQUIDITY AND CAPITAL RESOURCES
The Company's construction-related expenditures totaled
$14.2 million during the second quarter of 1995, compared to
$19.9 million for the same period of 1994. Approximately
$11.0 million of expenditures during the current period were
related to the construction of Unit #1 at the State Line Power
Plant, which was placed in service on May 30, 1995, and
initial expenditures for a second 98 Mw combustion turbine
unit scheduled for completion at that site in mid-1997. For
the six months ended June 30, 1995, construction-related
expenditures totaled $28.3 million compared to $27.5 million
for the same period of 1994. Approximately one-half of
construction expenditures for the first six months of 1995
were provided internally from operations; the remainder was
provided from the sale to the public of the Company's Common
Stock and First Mortgage Bonds, the issuance of commercial
paper, and from the sale of common stock through the Company's
Dividend Reinvestment Plan and Employee Stock Purchase Plan.
The Company's construction expenditures are expected to
total approximately $54.7 million in 1995, including
approximately $13.5 million for new generation additions and
approximately $25.9 million for additions to the Company's
distribution system.
The Company estimates that internally generated funds
will provide approximately one-half of the remaining funds
required for its 1995 construction expenditures. The Company
expects to utilize the proceeds of issuances of short-term
commercial paper, along with the sale of the Company's common
stock pursuant to its Dividend Reinvestment Plan and Employee
Stock Purchase Plan, to finance the remainder of its 1995
construction expenditures. The Company plans to continue to
utilize short-term debt as needed to support normal operations
and for other temporary requirements.
On June 7, 1995, the Company sold to the public in an
underwritten offering $30,000,000 aggregate principal amount
of its First Mortgage Bonds, 7-3/4% Series due 2025, the
proceeds of which were added to the Company's general funds
and used to redeem on July 3, 1995, its First Mortgage Bonds,
9% Series due 2019 ($30,000,000 aggregate principal amount) at
a redemption price of 105.00% of the principal amount thereof
plus accrued interest to July 3, 1995. The bonds were
defeased by the Company on June 30, 1995.
PART II. OTHER INFORMATION
Item 5. Other Information.
At June 30, 1995, the ratio of earnings to fixed charges,
and the ratio of earnings to fixed charges and preferred stock
dividend requirements, were 3.08x and 2.49x, respectively.
See Exhibit (12) hereto.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
(4)Twenty-Seventh Supplemental Indenture dated as of
June 1, 1995, to Indenture of Mortgage and Deed of
Trust.
(12) Computation of Ratio of Earnings to Fixed
Charges and Earnings to Combined Fixed Charges and
Preferred Stock Dividend Requirements.
(27) Financial Data Schedule for June 30, 1995.
(b) In a Current Report on Form 8-K, dated July 17, 1995, the
Company filed, under Item 5. "Other Events," information
concerning the Company's announcement of an enhanced
voluntary early retirement program.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly
authorized.
THE EMPIRE DISTRICT ELECTRIC COMPANY
Registrant
By V. E. Brill
------------------------
V. E. Brill
Vice President - Finance
By G. A. Knapp
------------------------
G. A. Knapp
Controller and Assistant Treasurer
August 14, 1995