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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1993
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from _____________ to ____________
Commission File Number 0-1125
MADISON GAS AND ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
WISCONSIN 39-0444025
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
133 South Blair Street
Post Office Box 1231
Madison, Wisconsin 53701-1231
(Address of principal executive offices, including zip code)
(608) 252-7923
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Securities registered pursuant to Section 12(g) of the Act:
Common, Par Value $8 Per Share
(Title of Class)
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 if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of registrant's knowledge,
in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this
Form 10-K. Yes X No
State the aggregate market value of the voting stock held by
nonaffiliates of the Registrant: $340,354,031 based on a closing
bid price of $31 3/4 on March 1, 1994 (the record date for the
Annual Meeting of Shareholders).
The number of shares outstanding of each of the issuer's classes
of common stock, as of the close of the period covered by this
report, was 10,719,812 of Common, Par Value $8 Per Share.
List hereunder the following documents if incorporated by
reference and the part of the Form 10-K (e.g., Part I, Part II,
etc.) into which the document is incorporated: (1) Any annual
report to security holders; (2) Any proxy or information
statement; and (3) Any prospectus filed pursuant to Rule 424(b)
or (c) under the Securities Act of 1933.
1993 Annual Report to Shareholders (Parts I, II, and IV)
Definitive Proxy Statement filed on March 24, 1994
(Parts I and III)
Current report on Form 8-K dated February 11, 1994 (Part II)
PART I
Item 1. Business.
General Description of Business
The registrant, Madison Gas and Electric Company (the Company), a Wisconsin
corporation organized as such in 1896, is a public utility engaged in the
generation and transmission of electric energy and in its distribution in
Madison and its environs (250 square miles) and in the purchase,
transportation, and distribution of natural gas in Columbia, Dane, Iowa,
Juneau, Monroe, and Vernon counties, Wisconsin (975 square miles). See
Exhibit No. 21 herein for a description of the Company's wholly owned
subsidiaries.
The Company is subject to regulation by the Public Service Commission of
Wisconsin (PSCW) as to rates, accounts, issuance of securities, plant and
transmission line siting, and in other respects. The Federal Energy
Regulatory Commission (FERC) has jurisdiction, under the Federal Power Act,
over certain of the accounting practices of the Company and in certain other
respects. The Nuclear Regulatory Commission (NRC) has jurisdiction over the
operation of the Kewaunee Nuclear Power Plant (Kewaunee). The Company has a
17.8 percent ownership interest in Kewaunee. The other owners are Wisconsin
Public Service Corporation (WPSC), which operates Kewaunee, and Wisconsin
Power and Light Company (WPL).
The Company is also subject to regulation with regard to air quality, water
quality, and solid waste (see I-6 and I-7) and may be subject to regulation
with regard to other environmental matters by various federal, state, and
local authorities, including the Wisconsin Department of Natural Resources
(DNR), which has jurisdiction over air and water quality, and solid and
hazardous waste standards, and regulates the electric generating operations of
the Company with respect to pollution and environmental control matters. The
Company has met the requirements of current environmental regulations.
Unknown additional expenditures may be required for pollution control
equipment and for the modification of existing plants to comply with future
unknown environmental regulations. For example, the emerging issue of global
warming could result in significant compliance cost for carbon dioxide
emission controls. Except as set forth below, the amounts of such
expenditures and the period of time over which they may be required to be made
are not known. The Company is unable to predict whether compliance with
future pollution control regulations would involve curtailments of operations
or reductions in generating capacity or efficiency of present generating
facilities or delays in the construction and operation of future generating
facilities. Under both the National Environmental Policy Act and the
Wisconsin Environmental Policy Act, the Company must obtain the necessary
authorizations or permits from regulatory agencies for any new projects or
other major actions significantly affecting the quality of the human
environment after all aspects of the proposed project or action are subjected
to a complete environmental review and a detailed environmental impact
statement is issued.
Electric Operations
At December 31, 1993, the Company supplied electric service to 117,043
customers, of whom 104,637 were located in the cities of Fitchburg, Madison,
Middleton, and Monona, and 12,406 in adjacent areas. Of the total number of
customers, 101,722 were residential and 15,187 were commercial. For 1993,
residential and commercial electric service revenues comprised 35 percent and
53 percent, respectively, of total electric revenues. The remaining electric
revenues during 1993 were from industrial sales (5 percent), sales to public
authorities including the University of Wisconsin (6 percent), and sales to
other utilities (less than 1 percent). The electric operations accounted for
60 percent of the total revenues of the Company.
See Item 2 for a description of the Company's electric utility plant.
The Company is a member of Wisconsin-Upper Michigan Systems (WUMS), a planning
group, which is comprised of five electric companies in Wisconsin and upper
Michigan and The Wisconsin Public Power Inc. SYSTEM. WUMS, in turn, is a part
of Mid-America Interconnected Network, Inc. (MAIN), a regional reliability
group. Membership in these groups permits better utilization of reserve
generating capacity and coordination of long-range system planning and day-to-
day operations. WUMS and MAIN seek to maintain adequate planning reserve
margins as a group in the range of 15 to 22 percent.
Fuel Supply and Generation--
The Company estimates that its net kilowatt-hour requirements for 1994 will be
provided approximately from the following sources: 55 percent from fossil-
fueled steam plants, 27 percent from a nuclear-fueled steam plant, 17 percent
from low-cost power purchases, and 1 percent from a combination of natural
gas- and oil-fired combustion turbines.
The Company has a 22 percent ownership interest in the Columbia Energy Center
(Columbia). The other owners are WPL, which operates Columbia, and WPSC. The
first (Columbia I) and second (Columbia II) units at Columbia were placed in
commercial operation in 1975 and 1978, respectively. The Columbia co-owners'
coal inventory supply for Columbia I and Columbia II was 38 days on
December 31, 1993. The co-owners' goal is to maintain a 40-day inventory.
The Columbia Energy Center, with two 527-megawatts units, uses coal from the
Wyoming-Montana coal fields. Seventy (70) percent of the low-sulfur coal for
Unit 1 is supplied under terms of a contract which does not expire until 2004.
The balance of the requirements for Unit 1, as well as the entire low-sulfur
coal supply for Unit 2, are from the Southern Powder River Basin.
About 200 megawatts of the Company's electric-generating capacity is provided
by the Blount Plant (Blount) (see I-9). The Company is able to burn a variety
of coals and natural gas at Blount. This permits the Company to comply with
its emissions requirements while avoiding expensive capital additions to the
plant which would be necessary if coal were the only fuel source. When
natural gas is not economically available, the Company may use oil in four of
its small boilers at Blount and in its combustion turbines (see page I-9).
Under present conditions, adequate supplies of oil are available to permit the
anticipated operation of all of the Company's units which use oil.
The Company has a 17.8 percent ownership interest in Kewaunee. The other
owners are WPSC, which operates Kewaunee, and WPL. The availability factor
for Kewaunee since going commercial in 1974 is 84.7 percent.
The most recent NRC inspection of Kewaunee found plant operations and plant
support to be "superior." Maintenance and engineering received "good"
ratings. The inspection is part of the NRC's Systematic Assessment of
Licensee Performance Review.
The Kewaunee co-owners have procured an extra expense insurance policy through
Nuclear Electric Insurance Limited to cover, in part, the costs for
replacement power of an extended outage related to an accident at Kewaunee.
The operating company for Kewaunee is a member of the Institute of Nuclear
Power Operations (INPO), an organization of nuclear utilities. INPO manages
the accreditation process for industry training programs, which includes
periodic accreditation of those training programs by an independent
organization, the National Nuclear Accrediting Board (NNAB). All ten
accredited training programs at Kewaunee are currently in good standing with
the NNAB.
The steam generator tubes at Kewaunee are susceptible to corrosion
characteristics seen throughout the nuclear industry. Annual inspections are
performed to identify degraded tubes. Degraded tubes are either repaired by
sleeving or are removed from service by plugging. The steam generators were
designed with a heat transfer margin of approximately 15 percent, meaning that
full power should be sustainable with the equivalent of 15 percent of the
steam generator tubes plugged. Tube plugging and the buildup of deposits on
the tubes affect the heat-transfer capability of the steam generators to the
point where eventually full power operation is affected. The result is a
gradual decrease in the capacity of the plant. Currently, the equivalent of
10 percent of the tubes in the steam generators are plugged. The co-owners
continue to evaluate appropriate repair strategies including replacement as
well as continued operation of the steam generators without replacement.
The co-owners are engaged in ongoing discussions regarding steam generator
replacement. A number of studies have been undertaken by the co-owners
concerning steam generator replacement, but no final decision has been
reached. The co-owners intend to operate Kewaunee until at least 2013, the
expiration of the present operating license. The co-owners are also
evaluating initiatives to improve the performance of Kewaunee. These
initiatives include funding of the development of welded repair technology for
steam generator tubes and numerous cost reduction measures such as the
conversion from a 12-month to an 18-month fuel cycle. If the steam generators
are not replaced, and excluding the possible effect of the aforementioned
repair strategies, a gradual power reduction of approximately 1 percent per
year may begin as soon as 1995.
Physical decommissioning of Kewaunee is expected to occur during the period
2014 through 2021 with additional expenditures being incurred during the
period 2022 through 2050 related to the storage of spent nuclear fuel at the
site. The Company's share of the decommissioning costs of this plant is
estimated to be $61 million (1992 dollars) based on a site-specific study
performed in 1992 using immediate dismantlement as the method of
decommissioning. Wisconsin utilities operating nuclear generating plants are
required by the PSCW to establish external trust funds to provide for the
decommissioning of such plants. The estimated fair value of the investments
in the funds established by the Company at December 31, 1993, totaled
$27 million.
The supply of nuclear fuel for Kewaunee involves the mining and milling of
uranium ore to uranium concentrates, the conversion of uranium concentrates to
uranium hexafluoride, enrichment of the uranium hexafluoride, and fabrication
of the enriched uranium into usable fuel assemblies. After a region
(approximately one-third of the nuclear fuel assemblies in the reactor) of
spent fuel is removed from the reactor, it is placed in temporary storage for
cooling in a spent fuel pool at the nuclear plant site. Permanent storage is
addressed below. There are presently no operating facilities in the United
States reprocessing commercial nuclear fuel. A discussion of the nuclear fuel
supply for Kewaunee, which requires approximately 250,000 pounds of uranium
concentrates per year, as follows:
a. The Company and the other Kewaunee co-owners formed a limited partnership
of subsidiaries in the mid-1970s to secure uranium reserves and maintain
a long-term uranium concentrates supply capability. In 1993, the Company
completed divestiture of uranium reserves in Colorado and Utah and
returned properties potentially containing uranium concentrates to the
previous leaseholders. Requirements for uranium are now met through spot
or contract purchases. An inventory policy to take advantage of
economical spot market purchases of uranium is maintained. In general,
the co-owners maintain a four-year supply of uranium.
b. Uranium hexafluoride, from inventory and from spot market purchases, was
used to satisfy converted material requirements in 1993. The co-owners
intend to purchase future conversion services on the spot market.
c. In 1993, enriched uranium was procured from COGEMA, Inc., pursuant to a
contract executed in 1983 and last amended in 1991. The co-owners are
obligated to take delivery of additional enriched uranium contracted from
COGEMA in 1994. The equivalent of 52,000 pounds of uranium concentrates
as enriched uranium was purchased on the spot market in 1993. Enrichment
services were purchased from the Department of Energy (DOE) under the
terms of the utility services contract which is in effect for the life of
Kewaunee. The co-owners are committed to take 70 percent of its annual
enrichment requirements in 1994 and 1995 and in alternate years
thereafter from the DOE.
d. Fuel fabrication requirements through February 15, 1995, are covered by
contract. The contract contains an option to allow the co-owners to
extend the contract through 1998.
e. Beyond the stated periods set forth above, additional contracts for
uranium concentrates, conversion to uranium hexafluoride, fabrication and
reprocessing or spent fuel storage will have to be procured. The prices
for the foregoing are expected to increase.
f. Pursuant to the Nuclear Waste Policy Act of 1982, the DOE has entered
into a contract with the Kewaunee co-owners to accept, transport, and
dispose of spent nuclear fuel beginning no later than January 31, 1998.
It is expected that the DOE will delay the acceptance of spent nuclear
fuel beyond 1998. A fee to offset the costs of the DOE's disposal for
all spent fuel used since April 7, 1983, has been assessed by DOE at one
mill per net kilowatt-hour of electricity generated by Kewaunee. An
additional one-time fee was paid for the disposal of spent nuclear fuel
used to generate electricity prior to April 7, 1983.
In response to a U.S. Court of Appeals ruling, the DOE published a final rule
in the December 31, 1991, Federal Register changing the quantity of nuclear-
generated electricity subject to the millage fee by incorporating line losses
into the calculation. A reduction in fees of approximately 5 percent will be
applied to all future payments for storage of spent nuclear fuel. The
overcollections since 1983 for future storage of spent nuclear fuel resulted
in refunds of $33,166, $176,370, and $194,837 for the DOE fiscal years 1992,
1993, and 1994, respectively. The refund for the DOE fiscal year 1995 is
expected to be approximately $53,000. This amount is being refunded to
customers over a two-year period beginning in 1993.
The National Energy Policy Act of 1992 provides that both the federal
government and the nuclear utilities fund the decontamination and
decommissioning of the three gaseous diffusion plants in the United States.
Utility contributions will be collected through a special assessment based on
a utility's percentage of uranium enrichment services purchased through the
date of enactment compared to total enrichment sales by the DOE. This will
require the co-owners of Kewaunee to pay approximately $15 million, in current
dollars, of which the Company's share would be $2.7 million over a period of
15 years. The Company made its first payment of $170,613 in September 1993.
The payments are subject to adjustment for inflation.
Spent fuel is currently stored at Kewaunee. The existing capacity of the
spent fuel storage facility will enable storage of the projected quantities of
spent fuel through April 2001. The co-owners are currently evaluating options
for the storage of additional quantities beyond 2001. Several technologies
are available. An investment of $2.5 million in the early 2000s could provide
additional storage sufficient to meet spent fuel storage needs until the
expiration of the current operating license.
The Low-Level Radioactive Waste Policy Act of 1980 specifies that states may
enter into compacts to provide for regional low-level waste disposal
facilities. The Act set January 1, 1986, as a deadline when compact members
may restrict the use of regional disposal facilities to waste generated within
the region.
Additional legislation enacted by Congress since the Low-Level Waste Policy
Act of 1980 has allowed generators of low-level waste continued access to
disposal facilities provided certain milestones are met by states
participating in regional compacts. Presently, the state of Ohio has been
selected as the host state for the Midwest Compact and is proceeding with the
preliminary phases of site selection. In the meantime, the co-owners have
access to an existing low-level waste storage site through June 1994. The
co-owners expect to have sufficient storage space to temporarily store low-
level waste generated between 1994 and the time that the Ohio facility is
opened.
Air Quality--
Phase 1 of the Federal Clean Air Act Amendments of 1990 beginning on
January 1, 1995, does not affect the Company. Phase 2, beginning on
January 1, 2000, sets a stringent SO2 emission cap and sets more stringent
than present nitrogen oxide emission limitations. Phase 2 will entail
additional emission control strategies which may result in increased capital
and operating and maintenance expenditures. Phase 2 emission compliance
strategies could include the following: fuel switching, emission trading,
purchased power agreements, new emission control devices, or installation of
new fuel-burning technologies and clean-coal technologies. Phase 2 emission
compliance strategies and their costs are currently being evaluated. The
Company has filed legal proceedings in the United States Court of Appeals for
the 7th Circuit against the EPA to require the EPA to award the Company bonus
credits for SO2 emissions under the Clean Air Act. The Company and EPA
disagree on the statutory interpretation of the bonus provisions of the Clean
Air Act. If the Company prevails, it could save $3 million to $6 million in
total capital expenditures between 2000 to 2009, depending on the then current
market price for SO2 credits.
The state of Wisconsin also enacted an acid rain law in 1986 which imposes
limitations of SO2 emissions on the major utilities. This emission rate is
coupled with a goal of 250,000 tons of SO2 per year (beginning in 1993)
applied to the major utilities. Blount and Columbia are required to meet a
combined SO2 emission rate of 1.20 pounds of SO2 per million Btu. No capital
costs were required to meet this standard.
The acid rain law also includes a nonenforceable goal of 135,000 tons of
nitrogen oxide emissions per year applicable to the major utilities.
The area surrounding Blount has been declared a nonattainment area for
secondary ambient particulate standards by the DNR. The DNR's plan for
particulate emissions in secondary nonattainment areas may someday require
installation of fugitive dust-control facilities for coal- and ash-unloading
operations at Blount.
Hazardous air emission legislation affecting the electric utilities was passed
by Congress in 1990. The federal legislation requires certain studies be
performed prior to any regulation of electric utilities. The DNR has enacted
hazardous air emission regulations but has so far exempted fossil fuel
generating stations.
The Company has installed electrostatic precipitators on its three largest
coal/gas-fired boilers at Blount. The Company believes all of its plants to
be in full compliance with present rules with respect to particulate
emissions.
Water Quality--
Pursuant to the Federal Water Pollution Control Act of 1972 (FWPCA), as
amended, and its implementation by Wisconsin statutes, the Company is subject
to regulation by the DNR and Environmental Protection Agency (EPA) with
respect to water quality. These regulations include both categorical-effluent
discharge standards and general water quality standards. The regulations
limit thermal and other discharges from the Company's plants into Lake
Michigan and other Wisconsin waters.
The categorical-effluent discharge standards require each discharger to use
effluent treatment processes equivalent to categorical "best practicable" or
"best available" technologies under compliance schedules established pursuant
to the FWPCA. The EPA and the DNR have published categorical regulations for
thermal and chemical discharges from steam electric generating plants.
Under the general water quality standards, thermal discharges must comply with
mixing zone standards. Such standards have been promulgated by the DNR and
limit permitted temperature changes in the receiving body of water at the edge
of a defined thermal mixing zone.
The DNR's water toxics regulations issued in 1989 could impose additional
discharge limitations on a number of previously unregulated substances. The
Company is in compliance with applicable standards.
Solid Waste--
From 1980 to 1984, the Company disposed of a fly-ash sludge at the Refuse
Hideaway Landfill in Middleton, Wisconsin. The fly-ash sludge consisted of
storm water runoff from the Blount coal pile area and an ash and water
effluent from the ash collection system. This material was composed of water,
coal particles, dirt, and fly ash. These wastes are nonhazardous under EPA
and DNR regulations.
In October 1992, the EPA placed the Refuse Hideaway Landfill on the national
priorities Superfund list of sites requiring clean up under the Comprehensive
Environmental Response, Compensation and Liability Act (CERCLA). The scope of
liability under CERCLA is very broad.
The wastes identified as causing groundwater contamination are known as
volatile organic compounds typically found in paint, solvents, and gasoline.
The Company's fly-ash sludge contained none of these chemicals or products.
Even though the wastes disposed of at Refuse Hideaway Landfill by the Company
are nonhazardous and do not contain volatile organics, the broad liability of
CERCLA may require the Company to pay for some fraction of the landfill clean-
up cost.
Although the Company is listed as a potentially responsible party on DNR's
roster of generators for Refuse Hideaway Landfill and received a general
notice of potential liability from the EPA in February 1993, in the opinion of
management, the Company does not have any material financial exposure for the
site.
The City of Madison has identified the Company as one of many possible
potential responsible parties for the remediation of the Demetral landfill.
Waste materials disposed of at the site by the Company consisted of fly ash
and bottom ash from the combustion of coal to generate electricity. The
Company and many others used the landfill in the early 1950s. The Company has
the potential to incur liability costs associated with its use of this
landfill. In the opinion of the Company, the resolution of this matter will
not result in any materially adverse effect on the operations or financial
position of the Company.
Gas Operations
On December 31, 1993, the Company supplied gas service to 97,080 customers in
the cities of Elroy, Madison, Middleton, Monona, Fitchburg, Lodi, Verona, and
Viroqua; 14 villages; and all or parts of 33 townships. Revenues received
from residential and commercial customers accounted for 54 and 37 percent,
respectively, of the total gas revenues for 1993. The gas operations
accounted for 40 percent of the total revenues of the Company.
Revenues from transportation service accounted for 0.2 percent of the total
gas revenues for 1993. Sales and revenues from best-efforts rate schedules
accounted for 9 and 6 percent of total retail sales and revenues,
respectively.
The Company has the ability to peak shave through use of a propane-air gas
manufacturing plant for which it had on hand adequate fuel supplies for its
peak-shaving requirements during the 1993 to 1994 heating season. In
addition, the Company can curtail gas deliveries to its interruptible
customers. Approximately 21 percent of gas sold in 1993 was sold to
interruptible customers.
Gas Supply--
The Company has physical interconnections with both ANR Pipeline Company (ANR)
and Northern Natural Gas Company (NNG). Deliveries are received at four
locations from ANR and at one location from NNG. Interconnections with two
major pipelines provide for competition in interstate pipeline service,
provides the Company with better access to economical supplies from Canada and
Oklahoma, and provides increased reliability of gas supply receipts.
On April 8, 1992, the FERC issued Order 636. Order 636 requires natural gas
pipelines to separate natural gas sales service from transmission service. It
also requires these pipelines to offer flexibility to parties contracting for
service. Following the issuance of Order 636, ANR and NNG made filings at
FERC to comply with Order 636.
In the first part of 1993, the Company purchased sales service from ANR under
an Interim Sales Program. Effective November 1, 1993, ANR and NNG's services
that comply with Order 636 went into effect. The heating season, which began
November 1, 1993, has been the most severe on record in nine years. The
services that the Company has contracted for have met the needs of its
customers reliably and economically.
The Company can currently inject a total of 5,576,600 dekatherms into ANR's
storage fields from April 1 through October 31 of each year. These gas
supplies are then available for withdrawal from November 1 through March 31.
ANR's storage fields are located in Michigan. Use of storage provides the
Company with the ability to purchase gas supplies during the summer season
when prices are the lowest and withdraw these same supplies during the winter
season when gas prices are typically the highest.
ANR and NNG have both entered into settlements with their gas suppliers
concerning take-or-pay and transition cost provisions of gas supply contracts
that are being canceled and other costs associated with implementation of
Order 636. Known charges currently applicable to the Company for take-or-pay
or transition costs on ANR are $0.3 million including interest. This is being
paid to ANR as a fixed charge through December 1994. Also, a volumetric
surcharge is being paid to both ANR and NNG. ANR's surcharge is applied
through April 1998; NNG's is effective through May 1996. These amounts will
change over time. The PSCW has approved procedures whereby the Company is
allowed to recover both the fixed and volumetric take-or-pay charges in rates.
The Company currently has firm transportation contracts with NNG for a maximum
daily quantity of 51,108 dekatherms, of which 47,830 dekatherms can be
delivered on a firm basis into ANR's system at Janesville or directly to
Madison's Town Border Station. Of the remaining 3,278 dekatherms,
889 dekatherms can be delivered on a firm basis into Elroy's Town Border
Station and 2,389 dekatherms can be delivered on a firm basis into Viroqua's
Town Border Station.
On November 1, 1993, the Company entered into firm natural gas supply
contracts with suppliers on both ANR and NNG pipelines. These supply
contracts will provide the Company with firm gas from November 1, 1993,
through October 31, 1994, to meet the requirements of its firm customers.
General
The Company's business is seasonal to the same extent as other upper Midwest
electric and natural gas utilities.
The Company had 721 permanent employees at December 31, 1993.
Information regarding Company executive officers is included under Item 10 of
this report, page III-1, which information is incorporated herein by
reference.
Item 2. Properties.
The following table presents the generating capability in service at
December 31, 1993:
Commercial Net Capability No. of
Plants Operation Date Fuel (Megawatts) Units
Steam Plants
Columbia 1975 & 1978 Low-Sulfur Coal 225(1)(2) 2
Kewaunee 1974 Nuclear 93(1)(3) 1
Blount 1957 & 1961 Coal/Gas 103 2
(Madison) 1938 & 1942 Gas/Coal 40 2
1949 Coal/Gas 23 1
1964 - 1968 Gas/Oil 34 4
Combustion
Turbines 1964 - 1973 Gas/Oil 90 5
Total 608
(1) Base load generation.
(2) Company's 22% share of two 525-mw units located near Portage, Wis.
(3) Company's 17.8% share of 525-mw unit located near Kewaunee, Wis.
Major electric transmission and distribution lines and substations in service
at December 31, 1993, are as follows:
Miles
Lines Overhead Lines Underground Lines
Transmission:
345 kV 124 -
138 kV 112 3
69 kV 91 21
Distribution:
13.8 kV and under 1,850 875
Substations Installed Capacity (KVA)
Transmission (22) 4,073,400
Distribution (33) 324,100
Gas facilities include 1,659 miles of distribution mains and one propane air
plant capable of producing a maximum daily capacity of 9,000 dekatherms of
natural gas equivalent. One propane air plant was retired in 1992.
Item 3. Legal Proceedings.
Regarding Note 5 entitled "Commitments and Contingencies" in the Notes to
Consolidated Financial Statements of the 1992 Annual Report to Shareholders,
which was filed with the 1992 Form 10-K, which is incorporated herein by
reference, the Wisconsin Supreme Court ruled in favor of Wisconsin Power and
Light Company and the issue was thus resolved.
Item 4. Results of Votes of Security Holders.
No matters were submitted to a vote of security holders during the fourth
quarter of the fiscal year.
PART II
Item 5. Market for the Registrant's Common Stock and Related Stockholder
Matters
The principal market in which the common stock of the Company is traded is The
Nasdaq Stock Market under the symbol MDSN. The approximate number of
stockholders of record on February 1, 1994, was 16,170. The Company's
transfer agent and registrar is Harris Trust and Savings Bank, Chicago,
Illinois. The high and low sales prices for the common stock on The Nasdaq
Stock Market and the dividends paid per common share for each quarter for the
past two fiscal years are shown below:
Common Stock Price Range Dividends Per Share
1993 1993
High Low
First quarter ........ $35 1/2 $30 1/4 $0.455
Second quarter ....... $35 1/4 $32 3/4 $0.455
Third quarter ........ $36 3/4 $32 3/4 $0.465
Fourth quarter ....... $36 1/2 $32 3/4 $0.465
Common Stock Price Range Dividends Per Share
1992 1992
High Low
First quarter ........ $31 1/4 $29 $0.44
Second quarter ....... $31 3/4 $28 1/2 $0.44
Third quarter ........ $33 1/4 $28 3/4 $0.455
Fourth quarter ....... $34 1/2 $30 $0.455
Item 6. Selected Financial Data
For the years ended December 31, 1993 1992 1991 1990 1989
(In thousands of dollars, except
per-share amounts)
Summary of Operations
Operating Revenues:
Electric .......................... $147,201 $142,646 $146,378 $140,493 $131,961
Gas ............................... 96,932 85,356 85,822 80,075 85,627
Total ............................ 244,133 228,002 232,200 220,568 217,588
Operating Expenses .................. 187,717 172,049 173,419 165,988 168,207
Other General Taxes ................. 8,222 8,107 7,872 7,574 7,307
Income Tax Items .................... 13,964 12,784 14,535 12,208 8,468
Net Operating Income ............. 34,230 35,062 36,374 34,798 33,606
Other Income (including allowance for
funds used during construction) ... 2,118 2,210 1,242 1,512 2,027
Income Before Interest Expense ... 36,348 37,272 37,616 36,310 35,633
Interest Expense .................... 11,673 13,465 12,736 14,281 15,037
Net Income ....................... 24,675 23,807 24,880 22,029 20,596
Preferred Dividends ................. 489 506 524 541 558
Earnings on Common Stock ......... $ 24,186 $ 23,301 $ 24,356 $ 21,488 $ 20,038
Average Shares Outstanding* ......... 10,704 10,697 10,696 10,530 10,290
Earnings Per Share* ............... $2.26 $2.18 $2.28 $2.04 $1.95
Dividends Paid Per Share* ......... $1.84 $1.79 $1.75 $1.72 $1.68
Ratio of Earnings to Fixed
Charges** ....................... 4.15 3.60 3.88 3.24 2.84
At December 31,
Assets
Electric ............................ $328,048 $325,510 $330,136 $331,609 $316,014
Gas ................................. 114,626 106,837 104,381 104,270 119,402
Assets not allocated ................ 22,690 20,390 20,548 14,455 32,592
Total ............................. $465,364 $452,737 $455,065 $450,334 $468,008
Capitalization
Common Shareholders' Equity ......... $184,995 $180,367 $176,213 $170,168 $160,953
Redeemable Preferred Stock .......... 5,400 5,600 5,800 6,000 6,200
Long-term Debt ...................... 120,396 122,363 124,859 135,813 140,842
Short-term Debt ..................... 23,500 17,000 5,600 2,100 28,000
Total Capitalization .............. $334,291 $325,330 $312,472 $314,081 $335,995
*Average shares outstanding and per share amounts have been restated to reflect a three-for-two stock split effective January 2,
1992.
**For the purpose of computing the ratio of earnings to fixed charges, earnings have been calculated by adding to income before
interest expense, current and deferred federal and state income taxes, investment tax credits deferred and restored charged
(credited) to operations, and the estimated interest component of rentals. Fixed charges represent interest expense, amortization
of debt discount, premium and expense, and the estimated interest component of rentals.
[TEXT]
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations
See Item 8 below.
Item 8. Financial Statements and Supplementary Data
The required information for Items 7 and 8 is included in the Company's
Current Report on Form 8-K under Item 5, Exhibit 99, dated February 11, 1994,
Commission File No. 0-1125, except as listed below:
Quarterly Financial Information (Unaudited)
Quarters Ended (1)
March 31 June 30 Sept. 30 Dec. 31
(Thousands of Dollars)
1993
Operating Revenues:
Electric ..................... $34,771 $35,106 $43,066 $34,258
Gas .......................... 38,180 15,199 10,446 33,107
Total ...................... 72,951 50,305 53,512 67,365
Operating Expenses .............. 62,230 43,967 44,866 58,840
Net Operating Income ......... 10,721 6,338 8,646 8,525
Interest, Preferred Dividends,
and Other ...................... 2,677 2,479 2,451 2,437
Earnings on Common Stock .... $ 8,044 $ 3,859 $ 6,195 $ 6,088
Earnings per Common Share (2) ... $0.75 $0.36 $0.58 $0.57
1992
Operating Revenues:
Electric ..................... $33,626 $34,432 $40,754 $33,834
Gas .......................... 32,296 12,486 7,783 32,791
Total ...................... 65,922 46,918 48,537 66,625
Operating Expenses .............. 56,633 40,452 39,537 56,318
Net Operating Income ......... 9,289 6,466 9,000 10,307
Interest, Preferred Dividends,
and Other ...................... 2,829 3,106 2,923 2,903
Earnings on Common Stock .... $ 6,460 $ 3,360 $ 6,077 $ 7,404
Earnings per Common Share (2) ... $0.60 $0.31 $0.57 $0.69
Notes:
(1) The quarterly results of operations within a year are not comparable
because of seasonal and other factors.
(2) The sum of earnings per share of common stock for any four quarterly
periods may vary slightly from the earnings per share of common stock for
the equivalent 12-month period due to the effect of rounding each
quarterly period separately.
Responsibility for Financial Statements
The management of Madison Gas and Electric Company is responsible for the
preparation and presentation of the financial information in this Annual
Report. The following financial statements have been prepared in accordance
with generally accepted accounting principles consistently applied and reflect
management's best estimates and informed judgments as required.
To fulfill these responsibilities, management has developed and maintains a
comprehensive system of internal operating, accounting, and financial
controls. These controls provide reasonable assurance that the Company's
assets are safeguarded, transactions are properly recorded, and the resulting
financial statements are reliable. An internal audit function assists
management in monitoring the effectiveness of the controls.
The Report of Independent Accountants on the financial statements by Coopers &
Lybrand appears below. The responsibility of the independent accountants is
limited to the audit of the financial statements presented and the expression
of an opinion as to their fairness.
The Board of Directors maintains oversight of the Company's financial
situation through its monthly review of operations and financial condition and
its selection of the independent accountants. The Audit Committee, comprised
of all Board members who are not employees or officers of the Company, also
meets periodically with the independent accountants and the Company's internal
audit staff who have complete access to and meet with the Audit Committee,
without management representatives present, to review accounting, auditing,
and financial matters. Pertinent items discussed at the meetings are reviewed
with the full Board of Directors.
/s/ David C. Mebane
David C. Mebane
President, Chief Executive Officer
and Chief Operating Officer
/s/ Joseph T. Krzos
Joseph T. Krzos
Vice President - Finance
Report of Independent Public Accountants
To the Shareholders and Board of Directors,
Madison Gas and Electric Company:
We have audited the accompanying consolidated balance sheet and statement of
capitalization of MADISON GAS AND ELECTRIC COMPANY (a Wisconsin corporation)
and subsidiaries as of December 31, 1992, and the related consolidated
statements of income, retained income, and cash flows for each of the two
years in the period ended December 31, 1992. These financial statements are
the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Madison Gas and Electric
Company and subsidiaries as of December 31, 1992, and the results of their
operations and their cash flows for each of the two years ended December 31,
1992, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN & CO.
Chicago, Illinois
February 12, 1993
Item 9. Disagreements on Accounting and Financial Disclosure
None.
PART III
Item 10. Directors and Executive Officers of the Registrant
Information concerning the Directors of the Company is contained in the
definitive proxy statement under the section "Election of Directors" filed on
March 24, 1994, with the Securities and Exchange Commission, which is
incorporated herein by reference.
Executive Officers of the Registrant (elected annually by Directors)
Service
Eff. Years as
Executive Title Date Officer
Frank C. Vondrasek Chairman 01/01/94 19
Age: 65 Chairman and CEO 10/01/91
President and COO 01/01/88
Executive VP 06/01/80
David C. Mebane President, CEO and COO 01/01/94 13
Age: 60 President and COO 10/01/91
Senior VP and General Counsel 01/01/88
Vice President and General Counsel 04/17/85
Robert E. Domek Senior VP - Human Resources 05/03/93 5
Age: 63 Vice President - Human Resources 12/01/91
Asst. VP - Human Resources 10/01/89
Director - Personnel 01/01/69
Joseph T. Krzos Vice President - Finance 12/01/92 8
Age: 50 Asst. VP - Accounting and Control 12/01/91
Treasurer 05/01/88
Assistant Treasurer 06/01/86
Richard H. Thies VP - Gas Systems Operation 07/01/86 8
Age: 52
Mark C. Williamson Vice President - Energy Services 05/03/93 2
Age: 40 Asst. VP - Energy Services 06/01/92
Exec. Director - Electric Supply 12/01/91
Corporate Attorney 12/01/89
Senior Staff Attorney 12/01/87
Gary J. Wolter VP - Administration and Secretary 12/01/91 3
Age: 39 Secretary and Corporate Attorney 12/01/89
Corporate Attorney 02/13/84
Terry A. Hanson Treasurer 12/01/91 3
Age: 42 Manager - Internal Audit 09/01/84
Burnett F. Adams Asst. VP - Procurement & Div. Oper. 05/03/93 1
Age: 41 Exec. Dir. - Materials and Fuel 12/01/91
Director - Gas Rates and Supply 07/01/88
James C. Boll Asst. VP - Law and Corp. Comm. 05/03/93 1
Age: 58 Exec. Dir. - Law and Corp. Comm. 01/13/92
Dir. - Public Affairs and Risk Mgmt. 06/01/91
Director - Risk Management 03/05/90
Thomas R. Krull Asst. VP - Elec. Trans. & Dist. 05/03/93 1
Age: 44 Exec. Dir. - Elec. Trans. & Dist. 12/01/91
Director - Elec. Trans. & Dist. 09/01/89
Asst. Dir. - Elec. Trans. & Dist. 04/01/89
Manager - Elec. Trans. & Dist. 07/01/85
Item 11. Executive Compensation
See Item 12 below.
Item 12. Security Ownership of Certain Beneficial Owners and Management
The required information for Items 11 and 12 is included in the Company's
definitive proxy statement under the section "Executive Compensation," not
including "Report on Executive Compensation" and "Company Performance," and
under the section "Beneficial Ownership of Common Stock by Directors and
Executive Officers" filed with the Securities and Exchange Commission on
March 24, 1994, which is incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions
None.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
MADISON GAS AND ELECTRIC COMPANY
(Registrant)
Date March 24, 1994 By /s/ David C. Mebane
David C. Mebane
President, Chief Executive Officer
and Chief Operating Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities indicated on March 24, 1994.
SIGNATURE TITLE
/s/ David C. Mebane President, Chief Executive
David C. Mebane Officer and Chief Operating
Officer and Director (Principal
Executive Officer)
/s/ Joseph T. Krzos Vice President - Finance
Joseph T. Krzos (Principal Financial Officer
and Principal Accounting
Officer)
/s/ Frank C. Vondrasek Chairman and Director
Frank C. Vondrasek
/s/ Jean Manchester Biddick Director
Jean Manchester Biddick
/s/ Richard E. Blaney Director
Richard E. Blaney
Director
Robert M. Bolz
/s/ Donald J. Helfrecht Director
Donald J. Helfrecht
/s/ Frederic E. Mohs Director
Frederic E. Mohs
/s/ Robert B. Rennebohm Director
Robert B. Rennebohm
/s/ Phillip C. Stark Director
Phillip C. Stark
/s/ H. Lee Swanson Director
H. Lee Swanson
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
a)1. Financial Statements (consolidated, as of December 31, 1993 and 1992, and
for each of the three years in the period ended December 31, 1993).
Statements of Income*
Balance Sheets*
Statements of Capitalization*
Statements of Retained Income*
Statements of Cash Flows*
Notes to Consolidated Financial Statements*
Management's Responsibility for Financial Statements (included under
Item 8 herein, page II-4)
Report of Independent Accountants (for fiscal 1993)*
*Incorporated by reference in Item 8 herein.
2. Financial Statement Schedules.
The following financial statement schedules of the Company, and the
accountants' report thereon, and other report appear on the indicated
pages in this Form 10-K Annual Report:
Description Page
Report of Independent Accountants on Financial Statement
Schedules (for fiscal 1993) IV-2
Schedule V - Utility Plant -- for the years ended
December 31, 1993, 1992, and 1991 F-1 - F-3
Schedule VI - Accumulated Provision for Depreciation --
for the years ended December 31, 1993, 1992, and 1991 F-4
Schedule X - Supplementary Income Statement Information --
for the years ended December 31, 1993, 1992, and 1991 F-5
Report of former Independent Public Accountants on fiscal
years 1992 and 1991 Financial Statements II-5
Report of former Independent Public Accountants on fiscal
years 1992 and 1991 Financial Statement Schedules IV-3
Report of Independent Accountants
Our report on the consolidated financial statements of Madison Gas and
Electric Company has been incorporated by reference in this Form 10-K from
Exhibit 99 of the Form 8-K, dated February 11, 1994, of Madison Gas and
Electric Company. In connection with our audit of such financial statements,
we have also audited the related financial statement schedules for the year
ended December 31, 1993, listed in the index in Item 14(a)2. of this
Form 10-K.
In our opinion, the financial statement schedules referred to above, when
considered in relation to the basic financial statements taken as a whole,
present fairly, in all material respects, the information required to be
included therein.
COOPERS & LYBRAND
Milwaukee, Wisconsin
February 11, 1994
Report of Independent Public Accountants
We have audited, in accordance with generally accepted auditing standards, the
consolidated balance sheet and statement of capitalization of Madison Gas and
Electric Company and subsidiaries as of December 31, 1992, and the related
consolidated statements of income, retained income, and cash flows for each of
the two years in the period ended December 31, 1992, included in the Company's
Annual Report to Shareholders incorporated by reference in this Annual Report
on Form 10-K, and have issued our report thereon dated February 12, 1993.
Our audits were made for the purpose of forming an opinion on those statements
taken as a whole. The financial statement schedules listed in Item 14(a)2 as
of December 31, 1992, and the two years then ended are the responsibility of
the Company's management and are presented for purposes of complying with the
Securities and Exchange Commission's rules and are not part of the basic
financial statements. These financial statement schedules have been subjected
to the auditing procedures applied in the audits of the basic financial
statements and, in our opinion, fairly state in all material respects the
financial data required to be set forth therein in relation to the basic
financial statements taken as a whole.
ARTHUR ANDERSEN & CO.
Chicago, Illinois
February 12, 1993
3. All exhibits, including those incorporated by reference.
Exhibits:
No. Description of Document
3A Articles of Incorporation as in effect at January 5, 1994.
3B By-Laws as in effect at January 1, 1991. (Incorporated by
reference to Exhibit 3B with 1991 10-K in File No. 0-1125.)
4A Indenture of Mortgage and Deed of Trust between the Company and
Firstar Trust Company, as Trustee, dated as of January 1, 1946, and
filed as Exhibit 7-D to SEC File No. 0-1125 and the following
indentures supplemental thereto are incorporated herein by
reference:
Supplemental SEC
Indenture Dated as of Exhibit No. File No.
Fourth 4/01/61 2-B-5 2-17774
Fifth 6/01/66 4-B-6 2-25244
Sixth 7/01/69 2-B-7 2-33250
Seventh 1/15/71 2.08 2-38980
Eighth 5/01/74 2.03 2-50507
Ninth 11/15/75 2.04 2-54821
Tenth1 11/01/76 2.03 2-60227
Eleventh1&2 12/01/82 2 0-1125
Twelfth 11/15/86 4.2 33-9054
Thirteenth1 10/14/88 4B 0-1125 (1988 10-K)
Fourteenth 04/01/92 4C 0-1125 (1992 10-K)
Fifteenth 04/01/92 4D 0-1125 (1992 10-K)
Sixteenth 10/01/92 4E 0-1125 (1992 10-K)
Seventeenth 02/01/93 4F 0-1125 (1992 10-K)
1Exempted transaction under Section 4(2) of the Securities Act.
2Filed in connection with Form 8-K.
10A Copy of Joint Power Supply Agreement with Wisconsin Power and
Light Company and Wisconsin Public Service Corporation dated
February 2, 1967. (Incorporated by reference to Exhibit 4.09
in File No. 2-27308.)
10B Copy of Joint Power Supply Agreement (Exclusive of Exhibits)
with Wisconsin Power and Light Company and Wisconsin Public
Service Corporation dated July 26, 1973, amending Exhibit 5.04.
(Incorporated by reference to Exhibit 5.04A in File
No. 2-48781.)
10D Copy of revised Agreement for Construction and Operation of
Columbia Generating Plant with Wisconsin Power and Light
Company and Wisconsin Public Service Corporation dated July 26,
1973. (Incorporated by reference to Exhibit 5.07 in File
No. 2-48781.)
10F Copy of severance agreement with certain key employees dated
June 16, 1989. (Incorporated by reference to Exhibit 10F with
1989 10-K in File No. 0-1125.)
12 Statement regarding computation of ratios (page II-2).
21 Subsidiaries of the Registrant.
23.1 Consent of Independent Accountants.
23.2 Consent of Independent Public Accountants.
(b) Reports on Form 8-K.
No Current Report on Form 8-K was filed for the quarter ended
December 31, 1993.
On March 4, 1994, the Company filed a Current Report on Form 8-K dated
February 11, 1994, under Item 5, "Other Events," which contains, under
Exhibit 99, the audited consolidated financial statements of the Company
for the year ended December 31, 1993; Notes to Consolidated Financial
Statements; and Management's Discussion and Analysis of Financial
Condition and Operations.
Schedule V - 1993
Madison Gas and Electric Company and Consolidated Subsidiaries
Schedule V - Utility Plant
December 31, 1993
(Thousands of Dollars)
Column A Column B Column C Column D Column E Column F
Other
Balance at Retirements Changes Balance
Beginning Additions or Sales Debit at End
Classification of Period at Cost at Cost (Credit) of Period
Utility Plant
In Service -
Electric Plant -
Steam Production .................. $120,938 $ 424 $ 189 $ - $121,173
Nuclear Production ................ 54,582 912 91 - 55,403
Other Production .................. 3,867 - - - 3,867
Transmission ...................... 99,205 743 475 - 99,473
Distribution ...................... 133,981 7,453 726 - 140,708
General ........................... 25,586 82 14 (18) 25,636
Total Electric Plant ............ 438,159 9,614 1,495 (18) 446,260 (e)
Gas Plant -
Production ........................ 933 63 430 - 566
Distribution ...................... 139,178 4,061 192 - 143,047
General ........................... 1,822 204 13 - 2,013
Total Gas Plant ................. 141,933 4,328 635 - 145,626
Common Utility Plant ............... 33,602 2,947 3,008 15 33,556
Total Utility Plant In Service ... $613,694 $16,889 (b) $5,138 (3) $625,442
Construction Work in Progress -
Electric .......................... $ 5,215 $ 2,653 (a) $ - $ - $ 7,868
Gas ............................... 996 958 (a) - - 1,954
Common ............................ 513 1,916 (a) - - 2,429
Total Construction Work
in Progress ..................... $ 6,724 $ 5,527 $ - $ - $ 12,251
Nuclear Fuel ....................... $ 61,915 $ 2,911 (a) $ - $ - $ 64,826
Investment in Future Nuclear Fuel .. 542 1 (a) - - 543
Total Nuclear Fuel ............... $ 62,457 $ 2,912 $ - $ - $ 65,369
Decommissioning Fund ................. $ 23,100 $ - $ - $2,399 (d) $ 25,499
Other Property
Plant Held for Future Use ........... $ 884 $ 35 $ - $ - $ 919
Nonutility Property and Other ....... 8,026 1,529 - (652)(c) 8,903
Total Other Property .............. $ 8,910 $ 1,564 $ - $ (652) $ 9,822
(a) Represents net change during year other than transfers and reclassifications.
(b) Includes $130 for allowance for funds used during construction.
(c) Represents primarily reclassification of various properties on books of subsidiary and transfer of property from subsidiary
to parent.
(d) Funds received through depreciation rates (in 1993 and prior years) and interest on funds to be used for the future
decommissioning of the Kewaunee Nuclear Plant.
(e) Includes $84,620 for the Company's portion of the Columbia Energy Center and $56,872 for the Company's portion of the
Kewaunee Nuclear Plant.
/TABLE
Schedule V - 1992
Madison Gas and Electric Company and Consolidated Subsidiaries
Schedule V - Utility Plant
December 31, 1992
(Thousands of Dollars)
Column A Column B Column C Column D Column E Column F
Other
Balance at Retirements Changes Balance
Beginning Additions or Sales Debit at End
Classification of Period at Cost at Cost (Credit) of Period
Utility Plant
In Service -
Electric Plant -
Steam Production .................. $121,332 $ 284 $ 678 $ - $120,938
Nuclear Production ................ 54,176 419 13 - 54,582
Other Production .................. 3,869 - 2 - 3,867
Transmission ...................... 98,447 965 207 - 99,205
Distribution ...................... 127,506 7,312 837 - 133,981
General ........................... 25,345 240 24 25 25,586
Total Electric Plant ............ 430,675 9,220 1,761 25 438,159 (e)
Gas Plant -
Production ........................ 933 - - - 933
Distribution ...................... 136,284 3,043 149 - 139,178
General ........................... 1,794 39 11 - 1,822
Total Gas Plant ................. 139,011 3,082 160 - 141,933
Common Utility Plant ............... 33,741 1,170 1,283 (26) 33,602
Total Utility Plant In Service ... $603,427 $13,472 (b) $3,204 $ (1) $613,694
Construction Work in Progress -
Electric .......................... $ 4,207 $ 1,008 (a) $ - $ - $ 5,215
Gas ............................... 838 158 (a) - - 996
Common ............................ 356 156 (a) - 1 513
Total Construction Work
in Progress ..................... $ 5,401 $ 1,322 - 1 $ 6,724
Nuclear Fuel ....................... $ 59,841 $ 2,074 (a) $ - $ - $ 61,915
Investment in Future Nuclear Fuel .. 541 1 (a) - - 542
Total Nuclear Fuel ............... $ 60,382 $ 2,075 $ - $ - $ 62,457
Decommissioning Fund ................. $ 20,827 $ - $ - $2,273 (d) $ 23,100
Other Property
Plant Held for Future Use ........... $ 884 $ - $ - $ - $ 884
Nonutility Property and Other ....... 3,494 1,067 - 3,465 (c) 8,026
Total Other Property .............. $ 4,378 $ 1,067 $ - $3,465 $ 8,910
(a) Represents net change during year other than transfers and reclassifications.
(b) Includes $71 for allowance for funds used during construction.
(c) Represents primarily reclassification of various properties on books of subsidiary and transfer of property from subsidiary
to parent.
(d) Funds received through depreciation rates (in 1992 and prior years) and interest on funds to be used for the future
decommissioning of the Kewaunee Nuclear Plant.
(e) Includes $84,550 for the Company's portion of the Columbia Energy Center and $56,017 for the Company's portion of the
Kewaunee Nuclear Plant.
Schedule V - 1991
Madison Gas and Electric Company and Consolidated Subsidiaries
Schedule V - Utility Plant
December 31, 1991
(Thousands of Dollars)
Column A Column B Column C Column D Column E Column F
Other
Balance at Retirements Changes Balance
Beginning Additions or Sales Debit at End
Classification of Period at Cost at Cost (Credit) of Period
Utility Plant
In Service -
Electric Plant -
Steam Production .................. $121,082 $ 303 $ 53 $ - $121,332
Nuclear Production ................ 52,387 1,961 172 - 54,176
Other Production .................. 3,869 - - - 3,869
Transmission ...................... 97,168 3,049 1,810 40 98,447
Distribution ...................... 123,620 4,500 614 - 127,506
General ........................... 25,030 367 52 - 25,345
Total Electric Plant ............ 423,156 10,180 2,701 40 430,675 (e)
Gas Plant -
Production ........................ 933 - - - 933
Distribution ...................... 133,912 2,502 130 - 136,284
General ........................... 1,746 54 6 - 1,794
Total Gas Plant ................. 136,591 2,556 136 - 139,011
Common Utility Plant ............... 33,531 695 486 1 33,741
Total Utility Plant In Service ... $593,278 $13,431 (b) $3,323 $ 41 $603,427
Construction Work in Progress -
Electric .......................... $ 1,851 $ 2,354 (a) $ - $ 2 $ 4,207
Gas ............................... 122 716 (a) - - 838
Common ............................ 17 793 (a) - (454) 356
Total Construction Work
in Progress ..................... $ 1,990 $ 3,863 $ - $ (452) $ 5,401
Nuclear Fuel ....................... $ 57,164 $ 2,669 (a) $ - $ 8 $ 59,841
Investment in Future Nuclear Fuel .. 540 1 (a) - - 541
Total Nuclear Fuel ............... $ 57,704 $ 2,670 $ - $ 8 $ 60,382
Decommissioning Fund ................. $ 18,541 $ - $ - $2,286 (d) $ 20,827
Other Property
Plant Held for Future Use ........... $ 656 $ 228 $ - $ - $ 884
Nonutility Property and Other ....... 4,634 (282) - (858)(c) 3,494
Total Other Property .............. $ 5,290 $ (54) $ - $ (858) $ 4,378
(a) Represents net change during year other than transfers and reclassifications.
(b) Includes $128 for allowance for funds used during construction.
(c) Represents primarily reclassification of various properties on books of subsidiary and transfer of property from subsidiary
to parent.
(d) Funds received through depreciation rates (in 1991 and prior years) and interest on funds to be used for the future
decommissioning of the Kewaunee Nuclear Plant.
(e) Includes $85,148 for the Company's portion of the Columbia Energy Center and $55,533 for the Company's portion of the
Kewaunee Nuclear Plant.
/TABLE
Schedule VI - 1993-1991
Madison Gas and Electric Company and Consolidated Subsidiaries
Schedule VI - Accumulated Provision for Depreciation of Utility Plant
and Amortization of Nuclear Fuel
Years Ended December 31, 1993, 1992, and 1991
(Thousands of Dollars)
Column A Column B Column C Column D Column E Column F
Additions Charged To Deductions
Balance at Clearing Balance
Beginning and Other Net Other at End
Description of Period Income Accounts Retirements Salvage Changes of Period
1993
Electric ............... $205,178 $16,255 $ - $1,128 $237 $(166) $220,376
Gas .................... 64,142 4,388 - 635 48 664 68,607
Common ................. 14,928 1,137 450 3,008 (16) 430 13,921
Subtotal ............ 284,248 21,780 (a) 450 4,771 269 928 302,904
Nuclear Fuel ........... 54,578 2,486 - - - - 57,064
Total ............... $338,826 $24,266 $ 450 $4,771 $269 $ 928 $359,968 (b)
1992
Electric ............... $190,879 $ 15,961 $ - $1,761 $ 120 $ (21) $205,178
Gas .................... 60,023 4,285 - 160 (33) 27 64,142
Common ................. 14,376 1,421 382 1,283 - 32 14,928
Subtotal ............ 265,278 21,667 (a) 382 3,204 87 38 284,248
Nuclear Fuel ........... 51,581 2,997 - - - - 54,578
Total ............... $316,859 $ 24,664 $ 382 $3,204 $ 87 $ 38 $338,826 (b)
1991
Electric ............... $176,944 $ 15,741 $ - $ 935 $ (6) $(865) $190,879
Gas .................... 55,858 4,393 - 136 (71) (21) 60,023
Common ................. 12,625 1,861 371 485 - 4 14,376
Subtotal ............ 245,427 21,995 (a) 371 1,556 (77) (882) 265,278
Nuclear Fuel ........... 48,353 3,228 - - - - 51,581
Total ............... $293,780 $ 25,223 $ 371 $1,556 $ (77) $(882) $316,859 (b)
(a) These amounts exclude the amortization of property losses and the amortization of utility plant acquisition adjustments. The
amount(s) excluded are $11 for 1993, ($240) for 1992, and ($970) for 1991. Such amounts are included in "Straight-line
depreciation and amortization" in the Consolidated Statement of Income.
(b) The Accumulated Provision for Depreciation has been adjusted to reflect reclassifications to conform with the Federal Energy
Regulatory Commission Chart of Accounts adopted by the Public Service Commission of Wisconsin on January 1, 1990. Such
reclassifications relate primarily to income taxes and contributions in aid of construction.
[TEXT]
Schedule X
MADISON GAS AND ELECTRIC COMPANY AND CONSOLIDATED SUBSIDIARIES
SCHEDULE X--SUPPLEMENTARY INCOME STATEMENT INFORMATION
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992, AND 1991
The amounts of maintenance and repairs, amortization of intangible assets, and
taxes that have been charged to other accounts are not significant. Rents and
advertising costs charged to income and clearing accounts are not significant.
No royalties were paid. Provisions for gross receipts tax charged to tax
expense is as follows:
Year Ended December 31,
1993 1992 1991
(Thousands of Dollars)
Gross Receipts .......... $5,371 $5,495 $5,223