X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2003
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 1-7978
Incorporated in South Dakota IRS Identification Number 46-0111677
625 Ninth Street
Rapid City, South Dakota 57701
Registrants telephone number(605) 721-1700
Former name, former address, and
former fiscal year if changed since last report
NONE
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 by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).
YES ____ NO X
As of July 31, 2003 there were issued and outstanding 23,416,396 shares of the Registrant's common stock, $1.00 par value, all of which were held beneficially and of record by Black Hills Corporation.
Reduced Disclosure
The Registrant meets the conditions set forth in General Instruction H (1) (a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced disclosure format.
TABLE OF CONTENTS
Page | ||||||||
---|---|---|---|---|---|---|---|---|
PART 1 | FINANCIAL INFORMATION | |||||||
Item 1 | Financial Statements | |||||||
Condensed Statements of Income - | ||||||||
Three and six months ended | ||||||||
June 30, 2003 and 2002 | 3 | |||||||
Condensed Balance Sheets - | ||||||||
June 30, 2003 and December 31, 2002 | 4 | |||||||
Condensed Statements of Cash Flows - | ||||||||
Six months ended June 30, 2003 and 2002 | 5 | |||||||
Notes to Condensed Financial Statements | 6-10 | |||||||
Item 2 | Results of Operations | 10-13 | ||||||
Item 4 | Controls and Procedures | 13 | ||||||
PART II | OTHER INFORMATION | |||||||
Item 1 | Legal Proceedings | 14 | ||||||
Item 6 | Exhibits and Reports on Form 8-K | 14 | ||||||
Signatures | 15 | |||||||
Exhibit Index | 16 |
2
Three months ended | Six months ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
June 30 | June 30 | |||||||||||||
2003 |
2002 |
2003 |
2002 | |||||||||||
(in thousands) | ||||||||||||||
Operating revenue | $ | 39,207 | $ | 38,303 | $ | 82,970 | $ | 75,494 | ||||||
Operating expenses: | ||||||||||||||
Fuel and purchased power | 11,445 | 9,354 | 25,881 | 18,442 | ||||||||||
Operations and maintenance | 6,679 | 6,176 | 12,103 | 11,801 | ||||||||||
Administrative and general | 3,665 | 3,050 | 7,103 | 4,879 | ||||||||||
Depreciation and amortization | 4,809 | 4,431 | 9,537 | 8,678 | ||||||||||
Taxes, other than income taxes | 2,012 | 1,939 | 4,097 | 4,014 | ||||||||||
28,610 | 24,950 | 58,721 | 47,814 | |||||||||||
Operating income | 10,597 | 13,353 | 24,249 | 27,680 | ||||||||||
Other income (expense): | ||||||||||||||
Interest expense | (4,301 | ) | (3,267 | ) | (8,604 | ) | (6,491 | ) | ||||||
Other income | 741 | 146 | 1,424 | 752 | ||||||||||
(3,560 | ) | (3,121 | ) | (7,180 | ) | (5,739 | ) | |||||||
Income before income taxes and | ||||||||||||||
discontinued operations | 7,037 | 10,232 | 17,069 | 21,941 | ||||||||||
Income taxes | (2,315 | ) | (3,440 | ) | (5,648 | ) | (7,327 | ) | ||||||
Income from continuing operations | 4,722 | 6,792 | 11,421 | 14,614 | ||||||||||
Discontinued operations, net of | ||||||||||||||
income taxes (Note 2) | -- | 2,339 | 1,906 | 6,501 | ||||||||||
Net income | $ | 4,722 | $ | 9,131 | $ | 13,327 | $ | 21,115 | ||||||
The accompanying notes to condensed financial statements are an integral part of these condensed financial statements.
3
June 30 2003 |
December 31 2002 | |||||||
---|---|---|---|---|---|---|---|---|
(in thousands) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,976 | $ | 518 | ||||
Receivables (net of allowance for doubtful accounts of $889 and $871, respectively) | 14,356 | 16,391 | ||||||
Receivables - related party | 50,403 | 54,253 | ||||||
Materials, supplies and fuel | 10,187 | 9,743 | ||||||
Deferred income taxes | 1,540 | 5,397 | ||||||
Assets from discontinued operations | -- | 1,008,901 | ||||||
78,462 | 1,095,203 | |||||||
Investments | 2,860 | 2,681 | ||||||
Property and equipment | 624,308 | 613,926 | ||||||
Less accumulated depreciation | (219,992 | ) | (211,992 | ) | ||||
404,316 | 401,934 | |||||||
Other assets: | ||||||||
Regulatory asset | 4,350 | 4,350 | ||||||
Other | 6,591 | 7,159 | ||||||
10,941 | 11,509 | |||||||
Total | $ | 496,579 | $ | 1,511,327 | ||||
LIABILITIES AND STOCKHOLDER'S EQUITY | ||||||||
Current liabilities: | ||||||||
Current maturities of long-term debt | $ | 2,547 | $ | 3,095 | ||||
Accounts payable | 19,413 | 14,653 | ||||||
Accounts payable - related party | 563 | 2,585 | ||||||
Accrued liabilities | 17,816 | 15,575 | ||||||
Liabilities from discontinued operations | -- | 964,759 | ||||||
40,339 | 1,000,667 | |||||||
Long-term debt, net of current maturities | 210,072 | 212,042 | ||||||
Deferred credits: | ||||||||
Deferred income taxes | 55,257 | 58,539 | ||||||
Regulatory liability | 3,564 | 5,395 | ||||||
Other | 19,547 | 16,456 | ||||||
78,368 | 80,390 | |||||||
Stockholder's equity: | ||||||||
Common stock $1 par value; 50,000,000 shares authorized; 23,416,396 shares issued | 23,416 | 23,416 | ||||||
Additional paid-in capital | 39,549 | 80,961 | ||||||
Retained earnings | 113,430 | 131,906 | ||||||
Accumulated other comprehensive loss | (8,595 | ) | (18,055 | ) | ||||
167,800 | 218,228 | |||||||
Total | $ | 496,579 | $ | 1,511,327 | ||||
The accompanying notes to condensed financial statements are an integral part of these condensed financial statements.
4
Six months ended June 30 |
||||||||
---|---|---|---|---|---|---|---|---|
2003 |
2002 | |||||||
(in thousands) | ||||||||
Cash flows from operations | $ | 30,760 | $ | 21,606 | ||||
Investing activities: | ||||||||
Property additions | (11,724 | ) | (15,301 | ) | ||||
Change in notes receivable from associated companies, net | 2,846 | 9,817 | ||||||
(Increase) decrease in investments | (179 | ) | 1,317 | |||||
(9,057 | ) | (4,167 | ) | |||||
Financing activities | ||||||||
Dividends paid | (17,727 | ) | (15,536 | ) | ||||
Long-term debt - repayments | (2,518 | ) | (2,492 | ) | ||||
(20,245 | ) | (18,028 | ) | |||||
Increase (decrease) in cash and cash equivalents | 1,458 | (589 | ) | |||||
Cash and cash equivalents: | ||||||||
Beginning of period | 518 | 1,079 | ||||||
End of period | $ | 1,976 | $ | 490 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 8,529 | $ | 6,618 | ||||
Income taxes paid (refunded), net | $ | (3,886 | ) | $ | 10,100 | |||
Stock dividend distribution to Black Hills Corporation, the | ||||||||
parent company of Black Hills Power, Inc. (Note 2) | $ | 45,687 | $ | -- |
The accompanying notes to condensed financial statements are an integral part of these condensed financial statements.
5
BLACK HILLS POWER, INC.
Notes to Condensed
Financial Statements
(unaudited)
(Reference
is made to Notes to Financial Statements
included in the Companys Annual Report on
Form 10-K)
(1) MANAGEMENTS STATEMENT
The financial statements included herein have been prepared by Black Hills Power, Inc. (the Company) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations; however, the Company believes that the footnotes adequately disclose the information presented. These financial statements should be read in conjunction with the financial statements and the notes thereto, included in the Companys 2002 Annual Report on Form 10-K filed with the Securities and Exchange Commission. |
Accounting methods historically employed require certain estimates as of interim dates. The information furnished in the accompanying financial statements reflects all adjustments which are, in the opinion of management, necessary for a fair presentation of the June 30, 2003, December 31, 2002 and June 30, 2002, financial information and are of a normal recurring nature. The results of operations for the six months ended June 30, 2003, are not necessarily indicative of the results to be expected for the full year. |
(2) NON-CASH DIVIDEND AND DISCONTINUED OPERATIONS
During the quarter ended March 31, 2003, the Company distributed a non-cash dividend to its parent company, Black Hills Corporation (Parent). The dividend consisted of 10,000 common shares of Black Hills Generation, Inc., formerly known as Black Hills Energy Capital, Inc., (Generation), which represents 100 percent ownership of Generation. The Company therefore no longer operates in the independent power production business. As a result, the Company no longer has any subsidiaries and operates only in the electric utility business. The Companys investment in Generation at the time of the distribution was $45.7 million. |
The disposition was accounted for under the provisions of Statement of Financial Accounting Standards (SFAS) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets (SFAS 144). Accordingly, results of operations have been classified as Discontinued operations, net of income taxes in the accompanying Condensed Statements of Income, and prior periods have been restated. For business segment reporting purposes, Generations business results were previously included in the segment Independent Power Production. The assets and liabilities of Generation are shown in the accompanying Condensed Balance Sheets under the captions Assets from discontinued operations and Liabilities from discontinued operations. |
6
Revenues and net income from the discontinued operations are as follows:
Three months ended June 30 |
Six months ended June 30 |
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 |
2002 |
2003 |
2002 | |||||||||||
(in thousands) | ||||||||||||||
Revenue |
$ | -- | $ | 37,206 | $ | 41,485 | $ | 67,600 | ||||||
Income before income taxes and | ||||||||||||||
change in accounting principle | $ | -- | $ | 4,153 | $ | 2,833 | $ | 9,362 | ||||||
Income taxes | -- | (1,814 | ) | (927 | ) | (3,757 | ) | |||||||
Change in accounting principle, | ||||||||||||||
net of tax | -- | -- | -- | 896 | ||||||||||
Net income from discontinued | ||||||||||||||
operations | $ | -- | $ | 2,339 | $ | 1,906 | $ | 6,501 | ||||||
June 30 2003 |
December 31 2002 | |||||||
---|---|---|---|---|---|---|---|---|
(in thousands) | ||||||||
Current assets | $ | -- | $ | 77,213 | ||||
Non-current assets | -- | 931,688 | ||||||
Current liabilities | -- | (555,100 | ) | |||||
Non-current liabilities | -- | (409,659 | ) | |||||
Net assets of discontinued | ||||||||
operations (including | ||||||||
accumulated other | ||||||||
comprehensive loss of | ||||||||
$0 and $9,440) | $ | -- | $ | 44,142 | ||||
(3) RECLASSIFICATIONS
Certain 2002 amounts in the financial statements have been reclassified to conform to the 2003 presentation. These reclassifications did not have an effect on the Companys total stockholders equity or net income as previously reported. |
(4) RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
In June 2001, the Financial Accounting Standards Board (FASB) issued SFAS No. 143, Accounting for Asset Retirement Obligations (SFAS 143). SFAS 143 requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred with associated asset retirement costs being capitalized as part of the carrying amount of the long-lived asset. Over time, the liability is accreted to its present value each period and the capitalized cost is depreciated over the useful life of the related asset. Management adopted SFAS 143 effective January 1, 2003 and it had no impact on the Companys financial statements. |
7
(5) COMPREHENSIVE INCOME
The following table presents the components of the Companys comprehensive income:
Three months ended June 30 |
Six months ended June 30 |
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 |
2002 |
2003 |
2002 | |||||||||||
(in thousands) | ||||||||||||||
Net income | $ | 4,722 | $ | 9,131 | $ | 13,327 | $ | 21,115 | ||||||
Other comprehensive income (loss): | ||||||||||||||
Reclassification adjustment on | ||||||||||||||
interest rate swap included in | ||||||||||||||
net income | 10 | -- | 20 | -- | ||||||||||
Fair value adjustment on | ||||||||||||||
derivatives designated as cash | ||||||||||||||
flow hedges, included in | ||||||||||||||
discontinued operations | -- | (3,080 | ) | (360 | ) | (1,242 | ) | |||||||
Comprehensive income | $ | 4,732 | $ | 6,051 | $ | 12,987 | $ | 19,873 | ||||||
(6) RELATED-PARTY TRANSACTIONS
Receivables
The Company has accounts receivable balances related to transactions with other Black Hills Corporation subsidiaries. The balances were $0.6 million and $1.7 million as of June 30, 2003 and December 31, 2002, respectively. |
The Company also has extended a line of credit to its Parent, Black Hills Corporation (the Parent), which is due on demand. However, the Company has formally agreed that such amounts will not be demanded until January 1, 2004 or until such time that the Parent has amounts available to repay the obligation and continue its normal operations through January 1, 2004. Outstanding advances were $49.8 million at June 30, 2003 and $52.5 million at December 31, 2002. Interest income received on the note was $0.9 million and $0 for the six month periods ended June 30, 2003 and June 30, 2002, respectively. Advances under these notes bear interest at a variable rate that does not exceed prime (4.0 percent at June 30, 2003) and is receivable monthly. |
Other Balances and Transactions
In addition to the above transactions, in order to fuel its combustion turbine, the Company purchased natural gas from Enserco Energy, an indirect subsidiary of the Parent. The amount purchased during the three month periods ended June 30, 2003 and June 30, 2002 was approximately $1.0 million and $1.3 million, respectively. The amount purchased during the six month periods ended June 30, 2003 and June 30, 2002 was approximately $2.7 million and $2.5 million, respectively. These amounts are included in Fuel and purchased power on the Condensed Statements of Income. |
8
The Company also received revenues of approximately $0.1 million for each of the three month periods ended June 30, 2003 and June 30, 2002, and $1.7 million and $0.1 million for the six month periods ended June 30, 2003 and June 30, 2002, respectively, from Black Hills Wyoming, Inc., an indirect subsidiary of Black Hills Corporation, for the transmission of electricity. |
(7) LEGAL PROCEEDINGS
Fires
In September 2001, a fire, which is known as the Hell Canyon Fire, occurred in the southwestern portion of the Black Hills region of South Dakota. The State of South Dakota has alleged that the fire occurred when a high voltage electrical span maintained by the Company broke and electrical arcing from the severed line ignited dry grass. The fire burned approximately 10,000 acres of land owned by the Black Hills National Forest, the Oglala Sioux Tribe and other private landowners. The State of South Dakota initiated litigation against the Company in the Seventh Judicial Circuit Court, Fall River County, South Dakota, on January 31, 2003. The complaint seeks recovery of damages for alleged injury to timber, fire suppression and rehabilitation costs. A claim for treble damages is asserted with respect to the claim for injury to timber. The United States Forest Service has asserted substantially similar claims against the Company. The Companys investigation into the cause and origin of the fire is still pending. The total amount of damages claimed by the State of South Dakota and the United States are not specified in their complaints. The Company has denied all claims and will vigorously defend this matter, the timing or outcome of which is uncertain. |
In June 2002, a forest fire, sometimes referred to as the Grizzly Gulch Fire, damaged approximately 11,000 acres of private and governmental land located near Deadwood and Lead, South Dakota. The fire destroyed approximately 20 structures and caused the evacuation of the cities of Lead and Deadwood for approximately 48 hours. |
The cause of the Grizzly Gulch Fire was investigated by the State of South Dakota. Contact between power lines owned by the Company and undergrowth was alleged to be the cause. The Company has initiated its own investigation into the cause of the fire, including the hiring of expert fire investigators and that investigation is continuing. |
The State of South Dakota initiated a civil action in the Seventh Judicial Circuit Court, Pennington County, South Dakota seeking recovery of damages for fire suppression, reclamation and remediation costs, and treble damages for injury to trees. The United States government initiated a civil action in U.S. District Court, District of South Dakota, asserting similar claims. Neither the State of South Dakota nor the United States specified the amount of their alleged damages. In addition, the Company has been notified of potential private civil claims for property damage and business loss. The Company has denied all claims and will vigorously defend this matter. The State of South Dakota has subsequently joined its claim in the federal action. |
If it is determined that power line contact was the cause of either fire and that the Company was negligent in the maintenance of those power lines, the Company could be liable for some or all of the damages related to these claims. Although the Company cannot predict the outcome or the viability of potential claims with respect to either fire, based on information currently available, management believes that any such claims, if determined adversely to the Company, will not have a material adverse effect on the Companys financial condition or results of operations. |
9
Ongoing Proceedings
The Company is subject to various other legal proceedings, claims and litigation which arise in the ordinary course of operations. In the opinion of management, the amount of liability, if any, with respect to these actions would not materially affect the financial position or results of operations of the Company. |
Three Months ended June 30 |
Six months ended June 30 |
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 |
2002 |
2003 |
2002 | |||||||||||
(in thousands) | ||||||||||||||
Revenue |
$ | 39,207 | $ | 38,303 | $ | 82,970 | $ | 75,494 | ||||||
Operating expense | 28,610 | 24,950 | 58,721 | 47,814 | ||||||||||
Operating income | $ | 10,597 | $ | 13,353 | $ | 24,249 | $ | 27,680 | ||||||
Income from continuing operations | $ | 4,722 | $ | 6,792 | $ | 11,421 | $ | 14,614 | ||||||
The following table provides certain operating statistics: |
Three months ended June 30 |
Six months ended June 30 |
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2003 |
2002 |
2003 |
2002 | |||||||||||
(in MWh's) | ||||||||||||||
Firm (system) sales |
447,400 | 462,000 | 952,900 | 968,000 | ||||||||||
Off-system sales | 234,100 | 210,000 | 479,800 | 371,000 |
Three Months Ended June 30, 2003 Compared to Three Months Ended June 30, 2002. Electric utility revenues increased 2 percent for the three-month period ended June 30, 2003, compared to the same period in the prior year. The increase in revenue was primarily due to an 11 percent increase in off-system electric megawatt-hour sales, at a 10 percent increase in average prices received. Firm residential, commercial, and industrial electricity revenues decreased 3 percent, 1 percent, and 7 percent, respectively. The decrease in industrial revenues was primarily due to the closing of Homestake Gold Mine and decreased electricity usage at the South Dakota Cement Plant. |
Electric operating expenses increased 15 percent for the three month period ended June 30, 2003, compared to the same period in the prior year. The increase in operating expenses was primarily due to an increase in purchased power costs, additional costs incurred during a scheduled maintenance outage at our Osage plant, and an increase in depreciation, administrative and general costs. Purchased power and fuel costs increased $2.1 million due to the increase in electric sales and higher gas prices. Depreciation expense increased $0.4 million primarily due to the depreciation associated with the combustion turbines. Administrative and general expenses increased primarily due to a $0.5 million increase in pension expense. |
10
Interest expense increased $1.0 million for the three month period, primarily due to interest associated with the $75 million first mortgage bonds issued in August 2002. |
Net income decreased $2.1 million primarily due to the increase in purchased power expense, interest expense, depreciation expense and pension expense, partially offset by an increase in off-system electric sales and transmission revenues. |
Six Months Ended June 30, 2003 Compared to Six Months Ended June 30, 2002. Electric utility revenues increased 10 percent for the six-month period ended June 30, 2003, compared to the same period in the prior year. The increase in revenue was primarily due to a 29 percent increase in off-system electric megawatt-hour sales at a 23 percent increase in average prices received. Industrial revenues decreased 8 percent, primarily due to the closing of Homestake Gold Mine and Federal Beef Processors and decreased electricity usage at the South Dakota Cement Plant. |
Electric operating expenses increased 23 percent for the six-month period ended June 30, 2003 compared to the same period in the prior year. The increase in operating expense was primarily due to a $6.2 million increase in purchased power costs, a $1.3 million increase in fuel expense, and increased depreciation and general and administrative expenses. Purchased power and fuel costs increased due to the increase in electric sales and higher gas prices. The average cost of fuel and purchased power increased 17 percent in 2003 compared to the same period in 2002. Depreciation expense increased due to additional expense related to combustion turbines. A $1.0 million increase in pension expense contributed to the increase in general and administrative expense. |
Interest expense increased $2.1 million for the six-month period, primarily due to interest associated with the $75 million first mortgage bonds issued in August 2002. |
Net income decreased $3.2 million, primarily due to the increase in fuel and purchased power expense, depreciation expense and pension expense, partially offset by an increase in off-system electric and transmission revenues. |
Some of the statements in this Form 10-Q include forward-looking statements as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this Form 10-Q that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. These forward-looking statements are based on assumptions, which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including: |
11
| the effects on our business resulting from the financial difficulties of other energy companies, including the effects on liquidity in the energy marketing and power generation businesses and markets and perceptions of the energy and energy marketing business; |
| the effects on our business resulting from a lowering of our credit rating (or actions we may take in response to changing credit ratings criteria), including demands for increased collateral by our current or new counterparties, refusal by our current or potential counterparties or customers to enter into transactions with us and our inability to obtain credit or capital in amounts or on terms favorable to us; |
| capital market conditions; |
| unanticipated developments in the western power markets, including unanticipated governmental intervention, deterioration in the financial condition of counterparties, default on amounts due from counterparties, adverse changes in current or future litigation, market disruption and adverse changes in energy and commodity supply, volume and pricing and interest rates; |
| pricing and transportation of commodities; |
| population changes and demographic patterns; |
| prevailing governmental policies and regulatory actions with respect to allowed rates of return, industry and rate structure, acquisition and disposal of assets and facilities, operation and construction of plant facilities, recovery of purchased power and other capital investments, and present or prospective wholesale and retail competition; |
| the continuing efforts by or on behalf of the State of California to restructure its long-term power purchase contracts and efforts by regulators and private parties in several western states to recover refunds for alleged price manipulation; |
| changes in and compliance with environmental and safety laws and policies; |
| weather conditions; |
| competition for retail and wholesale customers; |
| market demand, including structural market changes; |
| changes in tax rates or policies or in rates of inflation; |
| changes in project costs; |
| unanticipated changes in operating expenses or capital expenditures; |
12
| technological advances by competitors; |
| competition for new energy development opportunities; |
| the cost and other effects of legal and administrative proceedings that influence our business; |
| the effects on our business, including the availability of insurance, resulting from terrorist actions or responses to such actions; and |
| other factors discussed from time to time in our filings with the SEC. |
New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time to time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events, or otherwise. |
Evaluation of Disclosure Controls and Procedures
Our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (Exchange Act)) as of June 30, 2003. Based on their evaluation, they have concluded that our disclosure controls and procedures are adequate and effective to ensure that material information relating to us that is included in our reports filed under the Exchange Act is recorded, processed, summarized and reported within the required time periods. |
Changes in Internal Control Over Financial Reporting
During the period covered by this Quarterly Report on Form 10-Q, there have been no changes in our internal control over financial reporting that have materially affected or are reasonably likely to materially affect our internal control over financial reporting. |
13
BLACK HILLS POWER, INC.
Part II Other Information
Item 1. Legal Proceedings
For information regarding legal proceedings, see Note 11 in Item 8 of the Companys 2002 Annual Report on Form 10-K and Note 7 of our Notes to Condensed Financial Statements in this Quarterly Report on Form 10-Q, which information from Note 7 is incorporated by reference into this item. |
Item 6. Exhibits and Reports on Form 8-K
(a) | Exhibits |
Exhibit 31.1 Certification pursuant to Rule 13a 14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes Oxley Act of 2002. |
Exhibit 31.2 Certification pursuant to Rule 13a 14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes Oxley Act of 2002. |
Exhibit 32.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
Exhibit 32.2 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
(b) | Reports on Form 8-K |
We have filed the following Report on Form 8-K during the quarter ended June 30, 2003: |
Form 8-K dated April 11, 2003. |
Reported under Items 2 and 7, that the Company distributed a non-cash dividend to its parent company, Black Hills Corporation, relinquishing its ownership of Black Hills Generation, and provided certain unaudited pro forma combined condensed financial information giving effect to such dividend. |
14
BLACK HILLS POWER, INC.
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.
BLACK HILLS POWER, INC. |
/s/Daniel P. Landguth Daniel P. Landguth, Chairman and Chief Executive Officer |
/s/Mark T. Thies Mark T. Thies, Executive Vice President and Chief Financial Officer |
Dated: August 13, 2003
15
EXHIBIT INDEX
Exhibit Number |
Description | ||||
---|---|---|---|---|---|
Exhibit 31.1 | Certification pursuant to Rule 13a - 14(a) of the Securities Exchange Act of 1934, as | ||||
adopted pursuant to Section 302 of the Sarbanes - Oxley Act of 2002. | |||||
Exhibit 31.2 | Certification pursuant to Rule 13a - 14(a) of the Securities Exchange Act of 1934, as | ||||
adopted pursuant to Section 302 of the Sarbanes - Oxley Act of 2002. | |||||
Exhibit 32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 | ||||
of the Sarbanes-Oxley Act of 2002. | |||||
Exhibit 32.2 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 | ||||
of the Sarbanes-Oxley Act of 2002. |
16