ITC Holdings Corp.
ITC Holdings Corp. (Form: 8-K, Received: 08/01/2012 08:30:39)

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): July 31, 2012

 

ITC HOLDINGS CORP.

(Exact Name of Registrant as Specified in its Charter)

 

Commission File Number: 001-32576

 

Michigan
(State of Incorporation)

 

32-0058047
(IRS Employer Identification No.)

 

27175 Energy Way, Novi, Michigan 48377
(Address of principal executive offices) (zip code)

 

(248) 946-3000

(Registrant’s telephone number, including area code)

 

Not Applicable
(Former name or former address, if changed since last report)

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o             Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.02  Results of Operations and Financial Condition.

 

On July 31, 2012, following the closing of trading on the New York Stock Exchange, ITC Holdings Corp. (the “Company”) issued a press release disclosing its financial results as of and for the quarter and six months ended June 30, 2012.  The Company also updated guidance with respect to the Company’s operating earnings per diluted common share and capital expenditures for its operating subsidiaries for 2012.  The release is attached hereto as Exhibit 99.1.

 

Item 9.01  Financial Statements and Exhibits.

 

(d)          Exhibits.

 

99.1                         ITC Holdings Corp. Press Release dated July 31, 2012

 

2



 

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 hereunto duly authorized.

 

August 1, 2012

 

 

ITC HOLDINGS CORP.

 

 

 

By:

/s/ Daniel J. Oginsky

 

 

Daniel J. Oginsky

 

Its:

Senior Vice President and General Counsel

 

3


 

Exhibit 99.1

 

 

For Immediate Release

 

ITC HOLDINGS REPORTS SECOND QUARTER AND YEAR-TO-DATE 2012 RESULTS

 

Highlights

 

·              Operating earnings for the second quarter of $1.05 per diluted common share; reported earnings for the second quarter of $0.81 per diluted common share

·              Operating earnings for the six months ended June 30, 2012 of $1.98 per diluted common share; reported earnings for the six months ended June 30, 2012 of $1.70 per diluted common share

·              Capital investments of $429.2 million for the six months ended June 30, 2012

·              2012 operating earnings guidance updated to $3.95 to $4.05 per diluted common share and capital expenditure guidance updated to $750 to $820 million

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

(in thousands, except per share data)

 

2012

 

2011

 

2012

 

2011

 

OPERATING REVENUES

 

$

197,375

 

$

185,098

 

$

394,088

 

$

364,484

 

 

 

 

 

 

 

 

 

 

 

REPORTED NET INCOME

 

$

42,386

 

$

42,996

 

$

88,437

 

$

84,998

 

 

 

 

 

 

 

 

 

 

 

OPERATING EARNINGS

 

$

54,795

 

$

42,996

 

$

103,375

 

$

84,998

 

 

 

 

 

 

 

 

 

 

 

REPORTED DILUTED EPS

 

$

0.81

 

$

0.83

 

$

1.70

 

$

1.64

 

 

 

 

 

 

 

 

 

 

 

OPERATING DILUTED EPS

 

$

1.05

 

$

0.83

 

$

1.98

 

$

1.64

 

 

NOVI, Mich., July 31 2012,  ITC Holdings Corp. (NYSE: ITC) today announced its results for the second quarter and six month period ended June 30, 2012. Reported net income for the quarter, measured in accordance with Generally Accepted Accounting Principles (GAAP), was $42.4 million, or $0.81 per diluted common share, compared to $43.0 million or $0.83 per diluted common share for the second quarter of 2011.  For the six months ended June 30, 2012, reported net income was $88.4 million, or $1.70 per diluted common share, compared to $85.0 million, or $1.64 per diluted common share for the same period last year.

 

Operating earnings for the second quarter were $54.8 million, or $1.05 per diluted common share, compared to operating earnings of $43.0 million, or $0.83 per diluted common share for the second quarter of 2011. For the six months ended June 30, 2012, operating earnings were $103.4 million, or $1.98 per diluted common share, compared to operating earnings of $85.0 million, or $1.64 per diluted common share for the same period last year.  Operating earnings are a non-GAAP measure that exclude the impact of after-tax expenses of approximately 1) $4.0 million or $0.08 per diluted common share for the second quarter and $6.6 million or $0.12 per diluted common diluted share for the six months ended June 30, 2012 associated with the Entergy Corporation (Entergy) transaction and 2) $8.4 million or $0.16 per diluted common share for both the second quarter and the six months ended June 30, 2012 associated with the estimated refund liability recorded for certain acquisition accounting adjustments for ITC Midwest, ITC Transmission and METC resulting from the FERC audit order on ITC Midwest issued in May 2012.

 

1



 

Operating earnings increased by $11.8 million, or $0.22 per diluted common share, for the second quarter compared to the same period in 2011. For the six months ended June 30, 2012, operating earnings increased $18.4 million, or $0.34 per diluted common share, compared to the same period last year.  The increases in both periods were largely attributable to higher income associated with increased rate base and AFUDC at our operating companies and slightly lower effective tax rates, partially offset by lower revenues associated with the amortization of the ITC Transmission rate freeze revenue deferral which expired in May 2011.

 

For the six months ended June 30, 2012, ITC invested $429.2 million in capital projects at its operating companies, including $104.9 million, $84.6 million, $182.2 million and $57.5 million at ITC Transmission , METC, ITC Midwest and ITC Great Plains, respectively.

 

“Our business performed very well during the second quarter of 2012 and we continue to make solid progress on our key near-term strategic objectives, including our stand-alone capital investment plans and advancing the Entergy transaction towards closing,” said Joseph L. Welch, chairman, president and CEO of ITC.  “I remain pleased with our execution against our stand-alone plans, which are benefiting our customers by providing a more reliable and robust transmission system, particularly during the warm summer weather periods we have experienced.  In addition, final preparations are underway to initiate our retail jurisdictional regulatory applications associated with the Entergy transaction.  Based on our current anticipated timeline for the approval process, we remain confident in our ability to close the transaction in 2013.”

 

EPS and Capital Expenditure Guidance

 

For 2012, ITC is updating its full year operating earnings guidance to a range of $3.95 to $4.05 per share from the prior range of $3.90 to $4.05 per share. In addition, aggregate capital investment guidance for 2012 is also being updated to a range of $750 to $820 million from the prior range of $730 to $830 million. The updated guidance range includes $195 to $215 million, $145 to $160 million, $315 to $335 million and $95 to $110 million for ITC Transmission , METC, ITC Midwest and ITC Great Plains, respectively.

 

Second Quarter 2012 Operating Earnings Financial Results Detail

 

ITC’s operating revenues for the second quarter increased to $208.4 million, which excludes an $11.0 million reduction in revenues associated with the ITC Midwest FERC audit related refunds recorded for ITC Transmission , METC and ITC Midwest, compared to $185.1 million for the second quarter of 2011. This increase was primarily due to higher revenue requirements attributable to a higher rate base at our regulated operating subsidiaries and higher recoverable operating expenses. In addition, regional cost sharing revenues increased due to additional capital projects being placed in-service that have been identified by MISO as eligible for regional cost sharing. Partially offsetting these increases was the impact of the elimination of the amortization of the ITC Transmission rate freeze revenue deferral in May 2011.

 

Operation and maintenance (O&M) expenses of $30.1 million increased by $1.3 million compared to the same period in 2011.  This increase was due to higher vegetation management activities, partially offset by a decrease in relay work and reduced substation maintenance expenses.

 

General and administrative (G&A) expenses of $21.9 million, which excludes $6.0 million of pre-tax expenses related to the Entergy transaction, were $2.6 million higher compared to the same period in 2011 due to higher compensation-related expenses and higher general business expenses primarily related to increased information technology support.

 

2



 

Depreciation and amortization expenses of $26.0 million increased by $2.6 million compared to the same period in 2011 due to a higher depreciable base resulting from property, plant and equipment additions.

 

Taxes other than income taxes of $15.2 million were $1.6 million higher than the same period in 2011. This increase was due to 2011 capital additions at our regulated operating subsidiaries, which are included in the tax base for 2012 personal property taxes.

 

Interest expense of $39.0 million, which excludes the impact of $1.1 million of pre-tax expenses associated with interest on the ITC Midwest FERC audit related refund recorded at ITC Transmission, METC and ITC Midwest, increased by $2.5 million compared to the same period in 2011 due primarily to higher borrowing levels to finance capital expenditures.

 

The effective income tax rate for the second quarter of 2012 was 33.9 percent, excluding a reduction to income taxes of approximately $6.7 million associated with the Entergy transaction expenses and the ITC Midwest FERC audit related refund recorded at ITC Transmission, METC and ITC Midwest, compared to 35.6 percent for the same period last year.

 

Year-To-Date 2012 Financial Results Detail

 

ITC’s operating revenues for the six months ended June 30, 2012 increased to $405.1, which excludes an $11.0 million reduction in revenues associated with the ITC Midwest FERC audit related refunds recorded for ITC Transmission , METC and ITC Midwest, compared to $364.5 million from the same period last year.  This increase was primarily due to higher network revenues attributable to higher rate base at all of our regulated operating subsidiaries and higher recoverable operating expenses. In addition, the increase resulted from higher regional cost sharing revenues primarily due to additional capital projects being placed into service that have been identified by MISO as eligible for regional cost sharing.  Partially offsetting these increases was the impact of the final monthly recognition of the ITC Transmission rate freeze revenue deferral in May 2011.

 

O&M expenses of $58.8 million were $3.7 million higher for the six months ended June 30, 2012 compared to the same period in 2011. This increase was a result of higher vegetation management activities and higher NERC compliance activities associated with surveying overhead transmission lines.  These increases were partially offset by a decrease in relay work and reduced substation maintenance expenses.

 

G&A expenses of $41.1 million, which excludes $9.8 million of pre-tax expenses related to the Entergy transaction, were $5.2 million higher compared to the same period in 2011.  This increase was primarily due to higher general business expenses primarily related to increased information technology support, higher compensation-related expenses and the recognition of the Kansas V-Plan Project regulatory asset which reduced expenses in 2011 and did not reoccur in 2012.

 

Depreciation and amortization expenses of $51.0 million increased by $4.6 million for the six months ended June 30, 2012 compared to the same period in 2011.  This increase was primarily due to a higher depreciable base resulting from property, plant and equipment additions.

 

Taxes other than income taxes of $29.5 million were $2.3 million higher compared to the same period in 2011.  This increase was due to 2011 capital additions at our regulated operating subsidiaries, which are included in the tax base for 2012 personal property taxes.

 

Interest expense of $76.9 million, which excludes the impact of $1.1 million of interest on the ITC Midwest FERC audit related refund recorded at ITC Transmission, METC and ITC Midwest, increased $4.1 million compared to the same period in 2011 due primarily to higher borrowing levels to finance capital expenditures.

 

3



 

The effective income tax rate for the six months ended June 30, 2012 was 35.3 percent, excluding a reduction to income taxes of $8.1 million associated with the Entergy transaction and the ITC Midwest FERC audit related refund recorded at ITC Transmission, METC and ITC Midwest, compared to 36.3 percent in 2011.

 

Second Quarter Conference Call

 

ITC will also conduct a webcast and conference call at 11 a.m. Eastern on Wednesday, August 1, 2012.  Joseph L. Welch, chairman, president and CEO, will provide a business overview, and Cameron M. Bready, executive vice president and CFO, will discuss the financial results. Individuals wishing to participate in the conference call may dial toll-free (877) 644-1296 (domestic) or (914) 495-8555 (international); there is no passcode.  A listen-only live webcast of the conference call, including accompanying slides and the earnings release, will be available on the company’s investor information page.  The conference call replay, available through Monday, August 6, 2012, can be accessed by dialing 855-859-2056 (toll free) or 404-537-3406, passcode 96932924. The webcast will also be archived on the ITC website.

 

Other Available Information

 

More detail about the second quarter results may be found in ITC’s Form 10-Q filing. Once filed with the Securities and Exchange Commission, an electronic copy of our 10-Q can be found at our website, http://investor.itc-holdings.com. Written copies can also be made available by contacting us through our website.

 

About ITC Holdings Corp.

 

ITC Holdings Corp. (NYSE: ITC) is the nation’s largest independent electric transmission company. Based in Novi, Michigan, ITC invests in the electric transmission grid to improve reliability, expand access to markets, lower the overall cost of delivered energy and allow new generating resources to interconnect to its transmission systems. ITC’s regulated operating subsidiaries include ITC Transmission , Michigan Electric Transmission Company, ITC Midwest and ITC Great Plains. Through these subsidiaries, ITC owns and operates high-voltage transmission facilities in Michigan, Iowa, Minnesota, Illinois, Missouri, Kansas and Oklahoma, serving a combined peak load exceeding 26,000 megawatts along 15,000 circuit miles of transmission line. Through ITC Grid Development and its subsidiaries, the company also focuses on expansion in areas where significant transmission system improvements are needed. For more information, please visit ITC’s website at www.itc-holdings.com. (itc-ITC)

 

GAAP v. Non-GAAP Measures

 

ITC’s reported earnings are prepared in accordance with GAAP and represent earnings as reported to the Securities and Exchange Commission.  ITC’s management believes the company’s operating earnings, or GAAP earnings adjusted for specific items as described in the release, provide a more meaningful representation of the company’s fundamental earnings power.  However, such measures should not be considered in isolation or as substitutes for results prepared in accordance with GAAP.

 

Safe Harbor Statement

 

This press release contains certain statements that describe our management’s beliefs concerning future business conditions, plans and prospects, growth opportunities and the outlook for our business and the electricity transmission industry based upon information currently available. Such statements are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Wherever possible, we have identified these forward-looking statements by words such as “will,” “may,” “anticipates,” “believes,” “intends,” “estimates,” “expects,” “projects” and similar phrases. These forward-looking statements are based upon assumptions our management believes are reasonable.  Such forward looking statements are subject to risks and uncertainties which could cause our actual results, performance and achievements to differ materially from those expressed in, or implied by, these statements, including, among others, the

 

4



 

risks and uncertainties disclosed in our Form 10-Q filed with the Securities and Exchange Commission.

 

Because our forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control or are subject to change, actual results could be materially different and any or all of our forward-looking statements may turn out to be wrong.  Forward-looking statements speak only as of the date made and can be affected by assumptions we might make or by known or unknown risks and uncertainties. Many factors mentioned in our discussion in this release and in our annual and quarterly reports will be important in determining future results. Consequently, we cannot assure you that our expectations or forecasts expressed in such forward-looking statements will be achieved. Actual future results may vary materially. Except as required by law, we undertake no obligation to publicly update any of our forward-looking or other statements, whether as a result of new information, future events, or otherwise.

 

Investor/Analyst contact: Gretchen Holloway, 248-946-3595; gholloway@itctransco.com

Media contact: Robert Doetsch, 248-946-3493; rdoetsch@itctransco.com

 

5



 

ITC HOLDINGS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

(in thousands, except per share data)

 

2012

 

2011

 

2012

 

2011

 

OPERATING REVENUES

 

$

197,375

 

$

185,098

 

$

394,088

 

$

364,484

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

Operation and maintenance

 

30,058

 

28,837

 

58,770

 

55,121

 

General and administrative

 

27,876

 

19,289

 

50,885

 

35,869

 

Depreciation and amortization

 

25,976

 

23,352

 

50,987

 

46,440

 

Taxes other than income taxes

 

15,185

 

13,556

 

29,465

 

27,164

 

Other operating income and expense — net

 

(203

)

(167

)

(396

)

(316

)

Total operating expenses

 

98,892

 

84,867

 

189,711

 

164,278

 

OPERATING INCOME

 

98,483

 

100,231

 

204,377

 

200,206

 

OTHER EXPENSES (INCOME)

 

 

 

 

 

 

 

 

 

Interest expense

 

40,084

 

36,484

 

77,994

 

72,754

 

Allowance for equity funds used during construction

 

(4,554

)

(4,099

)

(10,178

)

(7,609

)

Other income

 

(1,226

)

(497

)

(1,287

)

(718

)

Other expense

 

472

 

1,594

 

1,058

 

2,269

 

Total other expenses (income)

 

34,776

 

33,482

 

67,587

 

66,696

 

INCOME BEFORE INCOME TAXES

 

63,707

 

66,749

 

136,790

 

133,510

 

INCOME TAX PROVISION

 

21,321

 

23,753

 

48,353

 

48,512

 

NET INCOME

 

$

42,386

 

$

42,996

 

$

88,437

 

$

84,998

 

Basic earnings per common share

 

$

0.82

 

$

0.84

 

$

1.72

 

$

1.67

 

Reported diluted earnings per common share

 

$

0.81

 

$

0.83

 

$

1.70

 

$

1.64

 

Operating diluted earnings per common share

 

$

1.05

 

$

0.83

 

$

1.98

 

$

1.64

 

Dividends declared per common share

 

$

0.353

 

$

0.335

 

$

0.705

 

$

0.670

 

 

RECONCILIATION OF REPORTED NET INCOME (GAAP) TO OPERATING EARNINGS (NON-GAAP MEASURE) - UNAUDITED

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

Reported net income

 

$

42,386

 

$

42,996

 

$

88,437

 

$

84,998

 

Pre-tax Entergy transaction related expenses

 

6,139

 

N/A

 

10,001

 

N/A

 

Pre-tax liability for audit related refund

 

12,993

 

N/A

 

12,993

 

N/A

 

Income taxes on adjustments

 

(6,723

)

N/A

 

(8,056

)

N/A

 

Operating earnings

 

$

54,795

 

$

42,996

 

$

103,375

 

$

84,998

 

 

RECONCILIATION OF REPORTED DILUTED EPS (GAAP) TO OPERATING DILUTED EPS (NON-GAAP MEASURE) - UNAUDITED

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

Reported diluted EPS

 

$

0.81

 

$

0.83

 

$

1.70

 

$

1.64

 

Pre-tax Entergy transaction related expenses

 

0.12

 

N/A

 

0.19

 

N/A

 

Pre-tax liability for audit related refund

 

0.25

 

N/A

 

0.25

 

N/A

 

Income taxes on adjustments

 

(0.13

)

N/A

 

(0.16

)

N/A

 

Operating diluted EPS

 

$

1.05

 

$

0.83

 

$

1.98

 

$

1.64

 

 

6



 

ITC HOLDINGS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION  (UNAUDITED)

 

 

 

June 30,

 

December 31,

 

(in thousands, except share data)

 

2012

 

2011

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

$

38,518

 

$

58,344

 

Accounts receivable

 

110,458

 

76,895

 

Inventory

 

35,045

 

34,855

 

Deferred income taxes

 

21,503

 

20,636

 

Regulatory assets — revenue accruals, including accrued interest

 

6,163

 

6,639

 

Prepaid assets

 

19,327

 

4,128

 

Other

 

37

 

31

 

Total current assets

 

231,051

 

201,528

 

Property, plant and equipment (net of accumulated depreciation and amortization of $1,230,248 and $1,193,164, respectively)

 

3,798,197

 

3,415,823

 

Other assets

 

 

 

 

 

Goodwill

 

950,163

 

950,163

 

Intangible assets (net of accumulated amortization of $16,828 and $15,276, respectively)

 

46,113

 

46,885

 

Regulatory assets — revenue accruals, including accrued interest

 

10,940

 

5,637

 

Other regulatory assets

 

170,320

 

161,987

 

Deferred financing fees (net of accumulated amortization of $16,062 and $14,594, respectively)

 

20,477

 

20,989

 

Other

 

26,963

 

20,354

 

Total other assets

 

1,224,976

 

1,206,015

 

TOTAL ASSETS

 

$

5,254,224

 

$

4,823,366

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

128,239

 

136,934

 

Accrued payroll

 

14,300

 

18,013

 

Accrued interest

 

59,844

 

43,642

 

Accrued taxes

 

30,460

 

25,627

 

Regulatory liabilities — revenue deferrals, including accrued interest

 

49,206

 

46,579

 

Refundable deposits from generators for transmission network upgrades

 

59,363

 

38,805

 

Other

 

14,689

 

5,867

 

Total current liabilities

 

356,101

 

315,467

 

Accrued pension and postretirement liabilities

 

41,689

 

44,923

 

Deferred income taxes

 

416,521

 

373,268

 

Regulatory liabilities — revenue deferrals , including accrued interest

 

36,299

 

50,917

 

Regulatory liabilities — accrued asset removal costs

 

80,607

 

83,934

 

Refundable deposits from generators for transmission network upgrades

 

2,296

 

14,570

 

Other

 

43,501

 

36,373

 

Long-term debt

 

2,963,304

 

2,645,022

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock, with par value, 100,000,000 shares authorized, 51,489,481 and 51,323,368 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively

 

950,383

 

943,444

 

Retained earnings

 

383,015

 

330,816

 

Accumulated other comprehensive loss

 

(19,492

)

(15,368

)

Total stockholders’ equity

 

1,313,906

 

1,258,892

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

5,254,224

 

$

4,823,366

 

 

7



 

ITC HOLDINGS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  (UNAUDITED)

 

 

 

Six months ended

 

 

 

June 30,

 

(in thousands)

 

2012

 

2011

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Net income

 

$

88,437

 

$

84,998

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization expense

 

50,987

 

46,440

 

Recognition, refund and collection of revenue accruals and deferrals — including accrued interest

 

(16,818

)

18,116

 

Deferred income tax expense

 

30,728

 

31,421

 

Allowance for equity funds used during construction

 

(10,178

)

(7,609

)

Other

 

6,171

 

7,554

 

Changes in assets and liabilities, exclusive of changes shown separately:

 

 

 

 

 

Accounts receivable

 

(24,551

)

(16,036

)

Inventory

 

(190

)

2,537

 

Prepaid assets

 

(15,198

)

(4,034

)

Other current assets

 

(6

)

2,432

 

Accounts payable

 

(2,437

)

969

 

Accrued payroll

 

(2,187

)

(5,143

)

Accrued interest

 

16,202

 

304

 

Accrued taxes

 

5,914

 

10,292

 

Other current liabilities

 

8,822

 

(2,012

)

Other non-current assets and liabilities, net

 

(1,995

)

(2,444

)

Net cash provided by operating activities

 

133,701

 

167,785

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

Expenditures for property, plant and equipment

 

(435,745

)

(228,028

)

Proceeds from sale of securities

 

5,453

 

3,809

 

Purchases of securities

 

(10,105

)

(7,160

)

Other

 

(881

)

578

 

Net cash used in investing activities

 

(441,278

)

(230,801

)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

Issuance of long-term debt

 

100,000

 

 

Borrowings under revolving credit agreements

 

723,350

 

377,415

 

Repayments of revolving credit agreements

 

(505,300

)

(308,775

)

Issuance of common stock

 

2,831

 

15,025

 

Dividends on common stock

 

(36,238

)

(34,189

)

Refundable deposits from generators for transmission network upgrades

 

22,114

 

9,054

 

Repayment of refundable deposits from generators for transmission network upgrades

 

(13,830

)

(4,876

)

Other

 

(5,176

)

(4,512

)

Net cash provided by financing activities

 

287,751

 

49,142

 

NET DECREASE IN CASH AND CASH EQUIVALENTS

 

(19,826

)

(13,874

)

CASH AND CASH EQUIVALENTS — Beginning of period

 

58,344

 

95,109

 

CASH AND CASH EQUIVALENTS — End of period

 

$

38,518

 

$

81,235

 

 

8