1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
(X)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 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 1-11429
PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INCORPORATED
(Exact name of registrant as specified in its charter)
NORTH CAROLINA 56-0233140
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
400 COX ROAD, P. O. BOX 1398
GASTONIA, NORTH CAROLINA 28053-1398
(Address of principal executive offices) (Zip Code)
(704) 864-6731
(Registrant's telephone number, including area code)
NONE
(Former name, former address and former fiscal year,
if changed since last report.)
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 X No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Number of shares of Common Stock, $1 par value, outstanding
at January 31, 1996 . . . . . . . . . . . . . . . . 18,943,584
2
PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INCORPORATED
AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
The condensed financial statements included herein have been
prepared by the registrant without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. Although certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations, the registrant believes that the disclosures herein are
adequate to make the information presented not misleading. It is
recommended that these condensed financial statements be read in
conjunction with the financial statements and the notes thereto included
in the registrant's latest annual report on Form 10-K.
3
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31 December 31
------------------ -------------------
1995 1994 1995 1994
-------- -------- -------- --------
Operating revenues $ 74,922 $ 66,835 $255,980 $269,098
Cost of gas 38,406 33,736 121,735 147,531
-------- -------- -------- --------
Gross margin 36,516 33,099 134,245 121,567
-------- -------- -------- --------
Operating expenses and taxes:
Operating and maintenance 13,212 11,074 53,406 48,750
Provision for depreciation 4,797 4,433 18,520 15,830
General taxes 3,704 3,525 14,003 14,329
Income taxes 4,429 4,229 13,721 12,013
------- -------- -------- --------
26,142 23,261 99,650 90,922
-------- -------- ------- --------
Operating income 10,374 9,838 34,595 30,645
Other income 434 12 642 3,914
Interest deductions 3,677 3,187 13,348 12,936
-------- -------- -------- --------
Net income $ 7,131 $ 6,663 $ 21,889 $ 21,623
======== ======== ======== ========
Average common shares outstanding 18,771 18,292 18,629 17,566
Earnings per share $.38 $.36 $1.18 $1.23 *
Cash dividends declared per share $.2125 $.205 $.8425 $.8125
* Includes $.09 related to the sale of propane assets effective June 1994.
4
CONSOLIDATED BALANCE SHEETS
(In thousands)
ASSETS
Dec 31 Sep 30 Dec 31
1995 1995 1994
-------- -------- --------
Gas utility plant $584,495 $573,945 $532,994
Less - Accumulated depreciation 171,637 166,506 156,221
-------- -------- --------
412,858 407,439 376,773
-------- -------- --------
Non-utility property, net 728 801 889
-------- -------- --------
Current assets:
Cash and temporary investments 3,285 993 5,047
Restricted cash and temporary investments 5,101 4,215 1,422
Receivables, less allowance for
doubtful accounts 37,761 13,605 30,016
Materials and supplies 5,975 5,577 5,531
Stored gas inventory 10,357 12,141 12,998
Deferred gas costs, net 14,878 3,692 822
Prepayments and other 1,867 2,089 2,389
-------- -------- --------
79,224 42,312 58,225
-------- -------- --------
Deferred charges and other assets 6,680 6,443 6,225
-------- -------- --------
Total $499,490 $456,995 $442,112
======== ======== ========
CAPITALIZATION AND LIABILITIES
Capitalization:
Common equity -
Common stock, $1 par $ 18,793 $ 18,689 $ 18,301
Capital in excess of par value 108,230 106,655 101,556
Retained earnings 51,166 48,028 45,027
-------- -------- --------
178,189 173,372 164,884
Long-term debt 93,900 100,700 109,380
-------- -------- --------
272,089 274,072 274,264
-------- -------- --------
Current liabilities:
Maturities of long-term debt 9,300 10,480 9,540
Accounts payable 35,159 20,411 26,353
Accrued taxes 4,360 1,824 5,334
Customer prepayments and deposits 6,844 5,742 7,200
Cash dividends and interest 5,615 6,423 5,358
Restricted supplier refunds 5,101 4,215 1,422
Other 3,361 3,416 3,776
-------- -------- --------
69,740 52,511 58,983
Interim bank loans 77,000 51,000 31,000
-------- -------- --------
146,740 103,511 89,983
-------- -------- --------
Deferred Credits and Other Liabilities:
Income taxes, net 53,802 52,606 49,362
Investment tax credits 4,509 4,646 4,968
Accrued pension cost 12,817 12,931 15,386
Other 9,533 9,229 8,149
-------- -------- --------
80,661 79,412 77,865
-------- -------- --------
Total $499,490 $456,995 $442,112
======== ======== ========
5
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(In thousands)
Twelve Months Ended
December 31
-------------------
1995 1994
------- -------
Balance beginning of period $45,027 $37,913
Add - Net income 21,889 21,623
Deduct - Common stock dividends
and other 15,750 14,509
------- -------
Balance end of period $51,166 $45,027
======= =======
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended Twelve Months Ended
December 31 December 31
------------------ -------------------
1995 1994 1995 1994
------- ------- ------- -------
Cash Flows From Operating Activities:
Net income $ 7,131 $ 6,663 $21,889 $21,623
Adjustments to reconcile net income
to net cash provided by operating
activities -
Depreciation, depletion and other 5,779 5,215 22,177 19,335
Deferred income taxes, net 1,196 893 4,439 318
Gain on sale of propane assets - - - (3,128)
------- ------- ------- -------
14,106 12,771 48,505 38,148
Change in operating assets and
liabilities:
Receivables, net (24,572) (13,740) (9,192) 704
Inventories 1,386 1,878 2,198 1,263
Accounts payable 14,748 10,697 8,807 (345)
Accrued pension cost (114) (146) (2,569) 1,361
Other (8,183) 825 (13,768) 9,995
------- ------- ------- -------
(2,629) 12,285 33,981 51,126
------- ------- ------- -------
Cash Flows From Investing Activities:
Construction expenditures (10,765) (15,322) (56,562) (53,079)
Non-utility and other 112 (1,040) (963) (1,940)
Proceeds from sale of propane assets - - - 12,800
------- ------- ------- -------
(10,653) (16,362) (57,525) (42,219)
------- ------- ------- -------
Cash Flows From Financing Activities:
Issuance of common stock through public
offering, net of expenses - - - 23,406
Issuance of common stock through
dividend reinvestment, stock purchase
and stock option plans 1,525 1,277 7,011 6,790
Increase (decrease) in interim bank
loans, net 26,000 8,000 46,000 (13,000)
Retirement of long-term debt
and common stock (7,980) (27) (15,765) (10,940)
Cash dividends (3,971) (2,660) (15,464) (13,795)
------- ------- ------- -------
15,574 6,590 21,782 (7,539)
------- ------- ------- -------
Net increase (decrease) in cash and
temporstments 2,292 2,513 (1,762) 1,368
Cash and temporary investments
at beginning of period 993 2,534 5,047 3,679
------- ------- ------- -------
Cash and temporary investments
at end of period $ 3,285 $ 5,047 $ 3,285 $ 5,047
======= ======= ======= =======
Cash paid during the period for:
Interest (net of amount capitalized) $ 4,411 $ 3,720 $12,829 $12,551
Income taxes - 2,443 11,043 11,371
6
NOTES TO FINANCIAL STATEMENTS
1. The accompanying unaudited consolidated financial statements and notes
should be read in conjunction with the financial statements and notes
included in PSNC's 1995 Annual Report. In the opinion of management, all
adjustments necessary for a fair statement of the results of operations for
the interim periods have been recorded. Certain amounts previously reported
have been reclassified to conform with the current period's presentation.
PSNC's business is seasonal in nature; therefore, the financial results
for any interim period are not necessarily indicative of those which may be
expected for the annual period.
2. In October 1994, the Financial Accounting Standards Board (FASB) issued
SFAS No. 119, "Disclosure about Derivative Financial Instruments and Fair
Value of Financial Instruments." PSNC currently uses derivatives primarily
to reduce the level of price volatility of PSNC's gas supply. PSNC plans to
adopt this standard on October 1, 1996. Due to its limited use of
derivatives, PSNC does not expect the adoption of this statement to
materially affect PSNC's financial position or the results of operations.
3. In March 1995, the FASB issued SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of."
This statement imposes stricter criteria for regulatory assets by requiring
that such assets be probable of future recovery at each balance sheet date.
PSNC plans to adopt this standard on October 1, 1996. Based on the current
regulatory structure in which PSNC operates, PSNC does not expect the
adoption of this statement to materially affect PSNC's financial position or
the results of operations.
4. In October 1995, the FASB issued SFAS No. 123, "Accounting for Awards of
Stock-Based Compensation to Employees." This statement establishes financial
accounting and reporting standards for stock-based employee compensation
plans. PSNC will adopt this standard on October 1, 1996. The effect on
PSNC's financial position or the results of operations of adopting this
standard has not yet been determined.
7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Changes in Results of Operations
- --------------------------------
(Amounts in thousands except
degree day and customer data) Three Months Ended December 31
-----------------------------------------
Increase
1995 1994 (Decrease) %
-------- -------- --------- ---
Gross margin $ 36,516 $ 33,099 $ 3,417 10
Less - Franchise taxes 2,419 2,159 260 12
-------- -------- ---------
Net margin $ 34,097 $ 30,940 $ 3,157 10
======== ======== =========
Total volume throughput (DT):
Residential 5,702 4,167 1,535 37
Commercial/small industrial 3,721 2,902 819 28
Large commercial/industrial 7,795 7,575 220 3
-------- -------- ---------
17,218 14,644 2,574 18
======== ======== =========
Raleigh/Durham area degree days:
Actual 1,427 1,000 427 43
Normal 1,264 1,264 - -
Percent of normal 113% 79%
Weather normalization adjustment
income (refund), net of
franchise taxes $ (2,030) $ 3,521 $ (5,551)
Customers at end of period:
Residential 261,706 249,193 12,513 5
Commercial/small industrial 31,471 29,451 2,020 7
Large commercial/industrial 389 381 8 2
-------- -------- ---------
293,566 279,025 14,541 5
======== ======== =========
Net margin for the three months ended December 31, 1995 increased
$3,157,000 as compared to the same period last year. This increase in net
margin is attributable to the items shown below (in thousands):
Commercial/ Large
Small Commercial/
Residential Industrial Industrial Other Total
----------- ---------- ---------- ------ ------
Price variances*-
Cardinal rate increase
effective 1/95 $ 423 $ 239 $ 225 $ - $ 887
Volume variances, net 635 253 145 - 1,033
Refund ordered in rate case - - - 732 732
Other 50 - - 455 505
------ ------ ------ ------ ------
Total $1,108 $ 492 $ 370 $1,187 $3,157
====== ====== ====== ====== ======
*Includes changes in sales mix.
8
MANAGEMENT'S DISCUSSION (Continued)
This increase in net margin is due primarily to (i) an increase in the
number of customers served, (ii) the Cardinal Pipeline rate increase
effective January 26, 1995, and (iii) additional throughput to all three
customer classes. Other items include $200,000 related to unauthorized gas
usage by certain large commercial/industrial customers that was billed at
penalty rates and a $732,000 refund ordered by the North Carolina Utilities
Commission (NCUC) in the October 7, 1994 rate case order. The refund related
to income tax credits taken in prior periods.
(Amounts in thousands except
degree day data) Twelve Months Ended December 31
-----------------------------------------
Increase
1995 1994 (Decrease) %
-------- -------- --------- ---
Gross margin $134,245 $121,567 $ 12,678 10
Less - Franchise taxes 8,202 8,618 (416) (5)
-------- -------- ---------
Net margin $126,043 $112,949 $ 13,094 12
======== ======== =========
Total volume throughput (DT):
Residential 19,101 18,281 820 4
Commercial/small industrial 12,674 12,154 520 4
Large commercial/industrial 29,417 27,827 1,590 6
-------- -------- ---------
61,192 58,262 2,930 5
======== ======== =========
Raleigh/Durham area degree days:
Actual 3,381 3,071 310 10
Normal 3,341 3,341 - -
Percent of normal 101% 92%
Weather normalization adjustment
income (refund), net of
franchise taxes $ 248 $ 2,944 $ (2,696)
Net margin for the twelve months ended December 31, 1995 increased
$13,094,000 as compared to the same period last year. This increase in net
margin is attributable to the items shown below (in thousands):
Commercial/ Large
Small Commercial/
Residential Industrial Industrial Other Total
----------- ---------- ---------- ------ -------
Price variances*-
General rate increase
effective 10/94 $ 6,779 $1,364 $(1,887) $ - $ 6,256
Cardinal rate increase
effective 1/95 1,047 651 702 2,400
Volume variances, net 1,789 333 1,296 - 3,418
Refund ordered in rate case - - - 732 732
Other - - - 288 288
------- ------ ------- ------ -------
Total $ 9,615 $2,348 $ 111 $1,020 $13,094
======= ====== ======= ====== =======
* Includes changes in sales mix.
9
MANAGEMENT'S DISCUSSION (Continued)
This increase in net margin is due primarily to rate increases
associated with the October 7, 1994 general rate case order, the Cardinal
Pipeline rate increase effective January 26, 1995, and an increase in the
number of customers served. The increase in margin also reflects the
previously mentioned $732,000 refund ordered by the NCUC.
Operating and maintenance expenses for the three and twelve months ended
December 31, 1995 increased 19% and 10%, respectively, as compared to the
same periods last year. However, prior period expenses were reduced
$1,579,000 by accounting adjustments discussed below. On a straight
comparison basis without these adjustments, operating and maintenance
expenses for the three and twelve months ended December 31, 1995,
respectively, increased only 4.4% and 6.1% from the comparable periods the
prior year. Adjustments in the prior periods which lowered operating and
maintenance expenses were $829,000 related to health and life insurance
refunds received due to favorable experience realized, along with the
transfer of a large number of employees to a less-costly health maintenance
organization (HMO) provider. Also contributing was a $750,000 reversal of
expenses in the prior periods related to the investigation of former
manufactured gas plant (MGP) sites. A favorable ruling in PSNC's November
1994 general rate case order from the NCUC enabled PSNC to recover such
prudently incurred expenses through gas rates. Operating and maintenance
expenses increased in the current periods due to the recording of certain
expenses related to employee benefits and to increased salary expenses
related to payroll reallocations. The twelve-month period also reflects
increases related to employee severance expenses related to departmental
reorganizations, higher employee educational expenses, outside consulting
services related to information systems and employee benefits, fees related
to listing on the New York Stock Exchange, and increased advertising
expenses. These increases were partially offset by the reclassification of
certain sales compensation expenses to merchandising and jobbing and
decreased power usage at the liquefied natural gas facility.
Depreciation expense increased for the three and twelve months due to
utility plant additions. For the three-month period, general taxes increased
5% due mainly to increased franchise taxes based on operating revenues that
increased 12%. However, general taxes for the twelve-month period decreased
2% due mainly to decreased franchise taxes based on operating revenues that
decreased 5%.
Other income for the three months ended December 31, 1995 increased
$422,000 due mainly to interest income associated with deferred gas costs and
gains realized by PSNC's gas marketing subsidiary when buying and selling gas
on the spot market, along with a growth in the number of customer accounts
and related higher margins. For the twelve-month period, other income
decreased $3,272,000 due mainly to proceeds received in June 1994 from the
sale of propane assets and the absence of operating income from propane
operations, the reclassification of certain sales commissions to merchandise
and jobbing from operation and maintenance in connection with the October
1994 general rate case order, and the reclassification of income from
pipeline capacity sales from operating revenues to other income.
Interest deductions for the three and twelve months ended December 31,
1995 increased 15% and 3% as compared to the same periods last year. These
increases are primarily due to interest expense on increased short-term debt
balances. The balance in short-term debt increased from $31 million at
December 31, 1994 to $77 million at December 31, 1995. This increase is due
to financing a portion of fiscal 1995 and 1996 construction expenditures.
10
MANAGEMENT'S DISCUSSION (Continued)
The change in earnings per share for the three and twelve months periods
reflect an increase of 3% and 6% in the average number of common shares
outstanding as compared to the same periods last year. These increases are
primarily due to shares issued through PSNC's dividend reinvestment and stock
option plans.
Changes in Financial Condition
- ------------------------------
The capital expansion program, through the construction of lines,
services, systems, and facilities, and the purchase of equipment, is designed
to help PSNC meet the growing demand for its product. PSNC's fiscal 1996
construction budget is approximately $61,000,000, compared to actual
construction expenditures for fiscal 1995 of $61,119,000. The construction
program is regularly reviewed by management and is dependent upon PSNC's
continuing ability to generate adequate funds internally and to sell new
issues of debt and equity securities on acceptable terms. Construction
expenditures during the three and twelve months ended December 31, 1995 were
$10,765,000 and $56,562,000, respectively, as compared to $15,322,000 and
$53,079,000 for the same periods a year ago. During the three and twelve
months ended December 31, 1994, construction expenditures included $6,979,000
and $16,367,000, respectively, of expenditures related to the Cardinal
Pipeline project. The remaining increases are largely due to expenditures
related to expanding the transmission and distribution facilities to serve
the growing customer base.
PSNC generally finances its operations with internally generated funds,
supplemented with bank lines of credit to satisfy seasonal requirements.
PSNC also borrows under its bank lines of credit to finance portions of its
construction expenditures pending refinancing through the issuance of equity
or long-term debt at a later date depending upon prevailing market
conditions. PSNC has committed lines of credit with eight commercial banks
which vary monthly depending upon seasonal requirements. For the twelve-
month period beginning April 1, 1995, lines of credit with these banks range
from a minimum of $22,000,000 to a winter-period maximum of $79,000,000.
PSNC also has uncommitted annual lines of credit with three of these banks
totaling $21,000,000. Lines of credit are evaluated periodically by
management and renegotiated to accommodate anticipated short-term financing
needs. Management believes these lines are currently adequate to finance a
portion of construction expenditures, stored gas inventories and other
corporate needs.
PSNC sold 1,725,000 new shares of $1 par common stock through an
underwritten public offering during May 1994. The net proceeds of
$23,406,000 were used to repay all outstanding short-term indebtedness, to
redeem the outstanding $3,098,000 of First Mortgage Bonds, 9 7/8% Series H,
due 1995, and to help finance a portion of fiscal 1994's construction
expenditures. During September 1995, PSNC made an additional payment on its
10% Senior Debentures due 2003 of $2,500,000, the maximum additional annual
payment permitted pursuant to the terms of the debenture agreement.
Effective December 1, 1995, PSNC redeemed the remaining $3,680,000
balance of its 8% Series I First Mortgage Bonds, due 1998, at a redemption
price of 100.35%. PSNC financed this redemption through the use of short-
term bank debt. Since the retirement of the first mortgage bonds, PSNC is in
the process of closing the original indenture and all supplemental
indentures.
11
MANAGEMENT'S DISCUSSION (Continued)
On December 20, 1995, PSNC filed with the Securities and Exchange
Commission a registration statement covering up to an aggregate amount of
$125,000,000 of PSNC's unsecured debt securities. On January 10, 1996, PSNC
sold $50,000,000 of 6.99% senior debentures due 2026 in a public offering
under the registration statement. The net proceeds of $49,562,500 received
on January 16 were used to pay down a significant portion of the outstanding
short-term bank debt.
At December 31, 1995, restricted cash and temporary investments were
$5,101,000, an increase from $1,422,000 at December 31, 1994. This net
increase was due primarily to refunds received from PSNC's pipeline supplier
that have not been deposited into the expansion fund in the Office of the
State Treasurer. This fund was created by an order of the NCUC, dated June
3, 1993, for the purpose of constructing natural gas lines into unserved
areas of PSNC's service territory that otherwise would not be economically
feasible to serve. Since December 1994, PSNC has received supplier refunds
totaling $3,477,000 that will be held for deposit into the expansion fund at
a later date, along with interest earned.
Net deferred gas costs fluctuate in response to the operation of PSNC's
Rider D rate mechanism. This mechanism allows PSNC to recover margin losses
on negotiated sales to large commercial and industrial customers with
alternate fuel capability. It also allows PSNC to recover from customers all
prudently incurred gas costs. On a monthly basis, any difference in amounts
paid and collected for these costs is recorded for subsequent refund to or
collection from PSNC's customers. Deferred gas costs at December 31, 1995
and December 31, 1994 primarily represent undercollections from customers of
$14,878,000 and $822,000, respectively.
The increase in accounts payable at December 31, 1995 of $8,806,000 as
compared to December 31, 1994 is largely due to additional gas purchases. An
additional 3,000,000 DT were purchased in December 1995 due to colder
weather.
The decrease in accrued taxes at December 31, 1995 as compared to the
prior year is primarily due to a decrease in accrued income taxes that
includes an overpayment of approximately $2,100,000 for fiscal 1995.
The decrease in accrued pension cost at December 31, 1995 is due to
pension contribution payments of $2,601,000 made during fiscal 1995. PSNC
did not have to fund its pension plan during fiscal 1994 or fiscal 1993.
Rate Matters
- ------------
Management currently anticipates filing a general rate case on or about
March 1, 1996, using the twelve months ended December 31, 1995, as its test
year. If this rate case is filed as planned, a general rate order from the
NCUC would be expected in the October 1996 time frame.
12
EXHIBIT 11
PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INCORPORATED
COMPUTATION OF EARNINGS PER SHARE
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31 December 31
------------------- -------------------
1995 1994 1995 1994
-------- -------- -------- --------
Net income $ 7,131 $ 6,663 $ 21,889 $ 21,623
-------- -------- -------- --------
Average common shares outstanding 18,771 18,292 18,629 17,566
Additional dilutive effect of
outstanding options (as determined
by the application of the treasury
stock method) 93 50 70 64
-------- -------- -------- --------
Average common shares outstanding
as adjusted 18,864 18,342 18,699 17,630
-------- -------- -------- --------
Earnings per share, as adjusted $ .38 $ .36 $1.17 $1.23
===== ===== ===== =====
This calculation is submitted in accordance with Regulation S-K item 601(b)(11) although
not required by footnote 2 to paragraph 14 of APB Opinion No. 15 because it results in
dilution of less than 3%.
13
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
- --------------------------
As more fully disclosed in Part I under "Environmental Matters" and in Part
II in Note 8 to the financial statements in the Annual Report on Form 10-K
for the period ending September 30, 1995, PSNC owns or has owned portions of
sites at which manufactured gas plants were formerly operated and is
cooperating with the North Carolina Department of Environment, Health and
Natural Resources to investigate these sites.
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
- --------------------------
None.
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
(a) Part I Exhibits:
11 - Statement re: computation of per share earnings.
27 - Financial Data Schedule.
Part II Exhibits:
4-E-1 Indenture dated as of January 1, 1996, as supplemented by a
First Supplemental Indenture dated as of January 1, 1996,
between PSNC and First Union National Bank of North
Carolina, as trustee.
4-E-2 Specimen of the certificate representing the $50,000,000
aggregate principal amount of 6.99% Senior Debentures Due
2026 issued by PSNC on January 16, 1996.
10-E Underwriting Agreement, dated January 10, 1996, between PSNC
and Morgan Stanley & Co. Incorporated.
(b) Reports on Form 8-K:
There were no reports on Form 8-K filed during the three months
ended December 31, 1995.
14
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.
PUBLIC SERVICE COMPANY
OF NORTH CAROLINA, INCORPORATED
---------------------------------------
(Registrant)
Date 2-13-96 Charles E. Zeigler, Jr.
------- ---------------------------------------
Charles E. Zeigler, Jr.
Chairman, President and
Chief Executive Officer
Date 2-13-96 Robert D. Voigt
------- ---------------------------------------
Robert D. Voigt
Senior Vice President - Corporate
Development and Chief Financial Officer