PUGET SOUND ENERGY COMPANY Exhibit 99
PRO FORMA CONDENSED STATEMENT OF INCOME (UNAUDITED)
FOR SIX MONTHS ENDED JUNE 30, 1996
Pro Forma
Puget WECo Combined
(in thousands)
OPERATING REVENUES $588,326 $239,800 $828,126
OPERATING EXPENSES:
Purchased and interchanged power and gas purchases 205,231 102,860 308,091
Other operating expenses and maintenance 119,299 43,972 163,271
Depreciation and amortization 54,921 18,116 73,037
Taxes other than federal income taxes 58,717 21,713 80,430
Federal income taxes 45,571 11,339 56,910
---------------------------------------
Total operating expenses 483,739 198,000 681,739
---------------------------------------
OPERATING INCOME 104,587 41,800 146,387
---------------------------------------
OTHER INCOME (EXPENSE):
Preferred dividend requirement - WNG - (3,510) -
Other - net of taxes 1,979 289 2,268
---------------------------------------
Total other income (expense) 1,979 (3,221) 2,268
---------------------------------------
INCOME BEFORE INTEREST CHARGES 106,566 38,579 148,655
INTEREST CHARGES 38,515 20,472 58,987
---------------------------------------
INCOME FROM CONTINUING OPERATIONS BEFORE
PREFERRED DIVIDENDS 68,051 18,107 89,668
LESS PREFERRED STOCK DIVIDEND ACCRUALS 7,505 - 11,015
=======================================
INCOME FOR COMMON STOCK $60,546 $18,107 $78,653
=======================================
COMMON SHARES OUTSTANDING WEIGHTED AVERAGE 63,641 24,161 84,419
EARNINGS PER SHARE $0.95 $0.75 $0.93
See accompanying Notes to Unaudited Pro Forma Condensed Financial Statements
PUGET SOUND ENERGY COMPANY Exhibit 99
PRO FORMA CONDENSED STATEMENT OF INCOME (UNAUDITED)
FOR TWELVE MONTHS ENDED JUNE 30, 1996
Pro Forma
Puget WECo Combined
(in thousands)
OPERATING REVENUES $1,167,719 $418,276 1,585,995
OPERATING EXPENSES:
Purchased and interchanged power and gas purchases 415,510 177,720 593,230
Other operating expenses and maintenance 244,259 93,520 337,779
Depreciation, depletion and amortization 108,497 34,659 143,156
Taxes other than federal income taxes 111,464 39,174 150,638
Federal income taxes 82,111 11,335 93,446
---------------------------------------
Total operating expenses 961,841 356,408 1,318,249
---------------------------------------
OPERATING INCOME 205,878 61,868 267,746
---------------------------------------
OTHER INCOME (EXPENSE):
Preferred dividend requirement - WNG - (7,020) -
Other - net of taxes 5,386 (44,579) (39,193)
---------------------------------------
Total other income (expense) 5,386 (51,599) (39,193)
---------------------------------------
INCOME BEFORE INTEREST CHARGES 211,264 10,269 228,553
INTEREST CHARGES 79,103 41,948 121,051
---------------------------------------
INCOME FROM CONTINUING OPERATIONS BEFORE
PREFERRED DIVIDENDS 132,161 (31,679) 107,502
LESS PREFERRED STOCK DIVIDEND ACCRUALS 15,162 22,182
=======================================
INCOME FOR COMMON STOCK $116,999 ($31,679) $85,320
=======================================
COMMON SHARES OUTSTANDING WEIGHTED AVERAGE 63,641 24,107 84,373
EARNINGS PER SHARE $1.84 ($1.31) $1.01
See accompanying Notes to Unaudited Pro Forma Condensed Financial Statements
PUGET SOUND ENERGY COMPANY Exhibit 99
PRO FORMA CONDENSED BALANCE SHEET (UNAUDITED)
AT JUNE 30, 1996
Pro Forma
Puget WECo Combined
(in thousands)
ASSETS
Property, Plant and Equipment:
Utility plant $3,442,786 $1,114,357 $4,557,143
Coal and other - 15,675 15,675
Accumulated provisions for depreciation
and amortization 1,149,763 297,157 1,446,920
---------------------------------
Net property, plant and equipment 2,293,023 832,875 3,125,898
---------------------------------
Other Property and Investments:
Investment in Bonneville Exchange Power Contract 90,558 - 90,558
Investment in and advances to subsidiaries 96,937 - 96,937
Investment in unconsolidated affiliates - 69,291 69,291
Other 13,149 - 13,149
---------------------------------
Total other property and investments 200,644 69,291 269,935
---------------------------------
Current Assets:
Cash 2,036 8,306 10,342
Accounts receivable 117,014 9,314 126,328
Estimated unbilled revenue 48,235 5,759 53,994
PRAM accrued revenues 34,567 - 34,567
Materials and supplies, at average cost 40,209 20,981 61,190
Prepayments and other 3,769 10,529 14,298
---------------------------------
Total current assets 245,830 54,889 300,719
---------------------------------
Long-Term Assets:
Regulatory asset for deferred income taxes 242,472 17,605 260,077
PRAM accrued revenues (net of current portion) 43,664 - 43,664
Unamortized energy conservation charges 39,803 - 39,803
Other 125,895 40,344 166,239
---------------------------------
Total long-term assets 451,834 57,949 509,783
---------------------------------
TOTAL ASSETS $3,191,331 $1,015,004 $4,206,335
=================================
See accompanying Notes to Unaudited Pro Forma Condensed Financial Statements
PUGET SOUND ENERGY COMPANY Exhibit 99
PRO FORMA CONDENSED BALANCE SHEET (UNAUDITED)
AT JUNE 30, 1996
Pro Forma
Puget WECo Combined
(in thousands)
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock and additional paid-in capital $965,372 $325,851 $1,291,223
Earnings reinvested (accumulated deficit) 212,521 (116,130) 96,391
Preferred stock not subject to
mandatory redemption 125,000 90,000 215,000
Preferred stock subject to mandatory redemption 87,840 - 87,840
Long-term debt 920,512 344,920 1,265,432
---------------------------------
Total capitalization 2,311,245 644,641 2,955,886
---------------------------------
Current Liabilities:
Accounts payable 43,786 24,032 67,818
Short-term debt 144,851 132,325 277,176
Current maturities of long-term debt 8,000 140 8,140
Accrued taxes 44,132 11,825 55,957
Other 62,780 84,030 146,810
---------------------------------
Total current liabilities 303,549 252,352 555,901
---------------------------------
Deferred Taxes:
Deferred income taxes 517,055 72,626 589,681
Deferred investment credits 103 8,779 8,882
---------------------------------
Total deferred taxes 517,158 81,405 598,563
---------------------------------
Other Deferred Credits:
Customer advances for construction 20,319 15,701 36,020
Other 39,060 20,905 59,965
---------------------------------
Total other deferred credits 59,379 36,606 95,985
---------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $3,191,331 $1,015,004 $4,206,335
=================================
See accompanying Notes to Unaudited Pro Forma Condensed Financial Statements
Exhibit 99
NOTES TO THE UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS
(1) Puget's fiscal year ends on December 31. Washington Energy Company's
("WECo") fiscal year ends on September 30. The pro forma financial data
for the six months and twelve months ended June 30, 1996 are the
results of six months and twelve months ended June 30, 1996 for Puget
and WECo.
(2) Income (loss) for common stock and earnings per share are based on
income from continuing operations after preferred dividend requirements.
(3) The pro forma condensed financial statements reflect the conversion of
each share of WECo common stock outstanding into .860 share of Puget
Sound Energy ("PSE") common stock and the issuance of PSE preferred
stock for WNG preferred stock. The pro forma condensed financial
statements are presented as if the merger had been consummated prior to
the periods presented.
(4) The number of shares of common stock outstanding, by company, were as
follows:
Puget WECo Pro Forma
----------- ----------- -----------
at December 31, 1995 63,641,000 24,128,000 84,391,000
at June 30, 1996 63,641,000 24,226,000 84,475,000
(5) The pro forma financial statements do not reflect the $370 million net
cost savings estimated to be achieved in the ten-year period following
consummation of the merger. The terms and conditions under which the
Washington Utilities and Transportation Commission may approve the
merger are unknown.
(6) Assumes WNG preferred stock has been exchanged for PSE preferred
stock. In the pro forma condensed statements of income, these
dividend requirements are included in the "preferred stock dividend
accruals."