Attached files
| file | filename |
|---|---|
| 8-K - 8-K - HAWAIIAN ELECTRIC CO INC | a12-4406_18k.htm |
| EX-99.1 - EX-99.1 - HAWAIIAN ELECTRIC CO INC | a12-4406_1ex99d1.htm |
HECO Exhibit 99.2
Consolidating financial information (unaudited)
HECO is not required to provide separate financial statements or other disclosures concerning Hawaii Electric Light Company, Inc. (HELCO) and Maui Electric Company, Limited (MECO) to holders of the 2004 Debentures issued by HELCO and MECO to HECO Capital Trust III (Trust III) since all of their voting capital stock is owned, and their obligations with respect to these securities have been fully and unconditionally guaranteed, on a subordinated basis, by HECO. Consolidating information is provided below for these and other HECO subsidiaries for the periods ended and as of the dates indicated.
HECO also unconditionally guarantees HELCO’s and MECO’s obligations (a) to the State of Hawaii for the repayment of principal and interest on Special Purpose Revenue Bonds issued for the benefit of HELCO and MECO and (b) relating to the trust preferred securities of Trust III. HECO is also obligated, after the satisfaction of its obligations on its own preferred stock, to make dividend, redemption and liquidation payments on HELCO’s and MECO’s preferred stock if the respective subsidiary is unable to make such payments.
Consolidating balance sheet
|
|
|
December 31, 2011 |
| ||||||||||||||
|
(in thousands) |
|
HECO |
|
HELCO |
|
MECO |
|
RHI |
|
UBC |
|
Reclassifications |
|
HECO |
| ||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Utility plant, at cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Land |
|
$ |
43,316 |
|
5,182 |
|
3,016 |
|
— |
|
— |
|
— |
|
$ |
51,514 |
|
|
Plant and equipment |
|
3,091,908 |
|
1,048,599 |
|
911,520 |
|
— |
|
— |
|
— |
|
5,052,027 |
| ||
|
Less accumulated depreciation |
|
(1,141,839 |
) |
(414,769 |
) |
(410,286 |
) |
— |
|
— |
|
— |
|
(1,966,894 |
) | ||
|
Construction in progress |
|
117,625 |
|
8,144 |
|
13,069 |
|
— |
|
— |
|
— |
|
138,838 |
| ||
|
Net utility plant |
|
2,111,010 |
|
647,156 |
|
517,319 |
|
— |
|
— |
|
— |
|
3,275,485 |
| ||
|
Investment in wholly owned subsidiaries, at equity |
|
517,216 |
|
— |
|
— |
|
— |
|
— |
|
(517,216 |
)[2] |
— |
| ||
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Cash and equivalents |
|
44,819 |
|
3,383 |
|
496 |
|
82 |
|
26 |
|
— |
|
48,806 |
| ||
|
Advances to affiliates |
|
— |
|
46,150 |
|
18,500 |
|
— |
|
— |
|
(64,650 |
)[1] |
— |
| ||
|
Customer accounts receivable, net |
|
130,190 |
|
28,602 |
|
24,536 |
|
— |
|
— |
|
— |
|
183,328 |
| ||
|
Accrued unbilled revenues, net |
|
103,328 |
|
18,499 |
|
15,999 |
|
— |
|
— |
|
— |
|
137,826 |
| ||
|
Other accounts receivable, net |
|
8,987 |
|
1,186 |
|
3,008 |
|
— |
|
— |
|
(4,558 |
)[1] |
8,623 |
| ||
|
Fuel oil stock, at average cost |
|
128,037 |
|
19,217 |
|
24,294 |
|
— |
|
— |
|
— |
|
171,548 |
| ||
|
Materials & supplies, at average cost |
|
25,096 |
|
4,700 |
|
13,392 |
|
— |
|
— |
|
— |
|
43,188 |
| ||
|
Prepayments and other |
|
21,135 |
|
6,575 |
|
7,033 |
|
— |
|
— |
|
(141 |
)[3] |
34,602 |
| ||
|
Regulatory assets |
|
5,916 |
|
1,115 |
|
1,130 |
|
— |
|
— |
|
— |
|
8,161 |
| ||
|
Total current assets |
|
467,508 |
|
129,427 |
|
108,388 |
|
82 |
|
26 |
|
(69,349 |
) |
636,082 |
| ||
|
Other long-term assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Regulatory assets |
|
490,973 |
|
86,394 |
|
83,861 |
|
— |
|
— |
|
— |
|
661,228 |
| ||
|
Unamortized debt expense |
|
8,446 |
|
2,464 |
|
1,876 |
|
— |
|
— |
|
— |
|
12,786 |
| ||
|
Other |
|
58,672 |
|
11,843 |
|
15,846 |
|
— |
|
— |
|
— |
|
86,361 |
| ||
|
Total other long-term assets |
|
558,091 |
|
100,701 |
|
101,583 |
|
— |
|
— |
|
— |
|
760,375 |
| ||
|
|
|
$ |
3,653,825 |
|
877,284 |
|
727,290 |
|
82 |
|
26 |
|
(586,565 |
) |
$ |
4,671,942 |
|
|
Capitalization and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Capitalization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Common stock equity |
|
$ |
1,406,084 |
|
281,055 |
|
236,054 |
|
81 |
|
26 |
|
(517,216 |
)[2] |
$ |
1,406,084 |
|
|
Cumulative preferred stock—not subject to mandatory redemption |
|
22,293 |
|
7,000 |
|
5,000 |
|
— |
|
— |
|
— |
|
34,293 |
| ||
|
Long-term debt, net |
|
629,757 |
|
204,110 |
|
166,703 |
|
— |
|
— |
|
— |
|
1,000,570 |
| ||
|
Total capitalization |
|
2,058,134 |
|
492,165 |
|
407,757 |
|
81 |
|
26 |
|
(517,216 |
) |
2,440,947 |
| ||
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Current portion of long-term debt |
|
42,580 |
|
7,200 |
|
7,720 |
|
— |
|
— |
|
— |
|
57,500 |
| ||
|
Short-term borrowings-affiliate |
|
64,650 |
|
— |
|
— |
|
— |
|
— |
|
(64,650 |
)[1] |
— |
| ||
|
Accounts payable |
|
140,044 |
|
29,616 |
|
18,920 |
|
— |
|
— |
|
— |
|
188,580 |
| ||
|
Interest and preferred dividends payable |
|
12,648 |
|
4,074 |
|
2,762 |
|
— |
|
— |
|
(1 |
)[1] |
19,483 |
| ||
|
Taxes accrued |
|
152,315 |
|
37,638 |
|
34,956 |
|
— |
|
— |
|
(141 |
)[3] |
224,768 |
| ||
|
Other |
|
50,828 |
|
9,478 |
|
13,603 |
|
1 |
|
— |
|
(4,557 |
)[1] |
69,353 |
| ||
|
Total current liabilities |
|
463,065 |
|
88,006 |
|
77,961 |
|
1 |
|
— |
|
(69,349 |
) |
559,684 |
| ||
|
Deferred credits and other liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Deferred income taxes |
|
236,890 |
|
61,044 |
|
39,929 |
|
— |
|
— |
|
— |
|
337,863 |
| ||
|
Regulatory liabilities |
|
215,401 |
|
62,049 |
|
38,016 |
|
— |
|
— |
|
— |
|
315,466 |
| ||
|
Unamortized tax credits |
|
34,877 |
|
12,951 |
|
12,786 |
|
— |
|
— |
|
— |
|
60,614 |
| ||
|
Retirement benefits liability |
|
368,245 |
|
62,036 |
|
64,840 |
|
— |
|
— |
|
— |
|
495,121 |
| ||
|
Other |
|
72,418 |
|
22,391 |
|
11,235 |
|
— |
|
— |
|
— |
|
106,044 |
| ||
|
Total deferred credits and other liabilities |
|
927,831 |
|
220,471 |
|
166,806 |
|
— |
|
— |
|
— |
|
1,315,108 |
| ||
|
Contributions in aid of construction |
|
204,795 |
|
76,642 |
|
74,766 |
|
— |
|
— |
|
— |
|
356,203 |
| ||
|
|
|
$ |
3,653,825 |
|
877,284 |
|
727,290 |
|
82 |
|
26 |
|
(586,565 |
) |
$ |
4,671,942 |
|
Consolidating statement of income
|
|
|
Year ended December 31, 2011 |
| ||||||||||||||
|
(in thousands) |
|
HECO |
|
HELCO |
|
MECO |
|
RHI |
|
UBC |
|
Reclassifications |
|
HECO |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Operating revenues |
|
$ |
2,110,249 |
|
444,266 |
|
419,249 |
|
— |
|
— |
|
— |
|
$ |
2,973,764 |
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Fuel oil |
|
909,172 |
|
121,839 |
|
234,115 |
|
— |
|
— |
|
— |
|
1,265,126 |
| ||
|
Purchased power |
|
522,503 |
|
137,453 |
|
29,696 |
|
— |
|
— |
|
— |
|
689,652 |
| ||
|
Other operation |
|
183,633 |
|
36,318 |
|
37,114 |
|
— |
|
— |
|
— |
|
257,065 |
| ||
|
Maintenance |
|
81,583 |
|
19,668 |
|
19,968 |
|
— |
|
— |
|
— |
|
121,219 |
| ||
|
Depreciation |
|
89,324 |
|
32,767 |
|
20,884 |
|
— |
|
— |
|
— |
|
142,975 |
| ||
|
Taxes, other than income taxes |
|
196,170 |
|
41,028 |
|
39,306 |
|
— |
|
— |
|
— |
|
276,504 |
| ||
|
Income taxes |
|
37,652 |
|
16,863 |
|
11,473 |
|
— |
|
— |
|
— |
|
65,988 |
| ||
|
|
|
2,020,037 |
|
405,936 |
|
392,556 |
|
— |
|
— |
|
— |
|
2,818,529 |
| ||
|
Operating income |
|
90,212 |
|
38,330 |
|
26,693 |
|
— |
|
— |
|
— |
|
155,235 |
| ||
|
Other income (deductions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Allowance for equity funds used during construction |
|
4,572 |
|
592 |
|
800 |
|
— |
|
— |
|
— |
|
5,964 |
| ||
|
Equity in earnings of subsidiaries |
|
44,616 |
|
— |
|
— |
|
— |
|
— |
|
(44,616 |
)[2] |
— |
| ||
|
Impairment of utility plant |
|
(5,496 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
(5,496 |
) | ||
|
Other, net |
|
2,845 |
|
569 |
|
433 |
|
(5 |
) |
(4 |
) |
(27 |
)[1] |
3,811 |
| ||
|
|
|
46,537 |
|
1,161 |
|
1,233 |
|
(5 |
) |
(4 |
) |
(44,643 |
) |
4,279 |
| ||
|
Interest and other charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Interest on long-term debt |
|
36,522 |
|
11,938 |
|
9,072 |
|
— |
|
— |
|
— |
|
57,532 |
| ||
|
Amortization of net bond premium and expense |
|
2,023 |
|
554 |
|
504 |
|
— |
|
— |
|
— |
|
3,081 |
| ||
|
Other interest charges |
|
(921 |
) |
62 |
|
304 |
|
— |
|
— |
|
(27 |
)[1] |
(582 |
) | ||
|
Allowance for borrowed funds used during construction |
|
(1,941 |
) |
(248 |
) |
(309 |
) |
— |
|
— |
|
— |
|
(2,498 |
) | ||
|
|
|
35,683 |
|
12,306 |
|
9,571 |
|
— |
|
— |
|
(27 |
) |
57,533 |
| ||
|
Net income (loss) |
|
101,066 |
|
27,185 |
|
18,355 |
|
(5 |
) |
(4 |
) |
(44,616 |
) |
101,981 |
| ||
|
Preferred stock of subsidiaries |
|
— |
|
534 |
|
381 |
|
— |
|
— |
|
— |
|
915 |
| ||
|
Net income (loss) attributable to HECO |
|
101,066 |
|
26,651 |
|
17,974 |
|
(5 |
) |
(4 |
) |
(44,616 |
) |
101,066 |
| ||
|
Preferred stock dividends of HECO |
|
1,080 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,080 |
| ||
|
Net income (loss) for common stock |
|
$ |
99,986 |
|
26,651 |
|
17,974 |
|
(5 |
) |
(4 |
) |
(44,616 |
) |
$ |
99,986 |
|
Consolidating statement of cash flows
|
|
|
Year ended December 31, 2011 |
| ||||||||||||||
|
(in thousands) |
|
HECO |
|
HELCO |
|
MECO |
|
RHI |
|
UBC |
|
Elimination |
|
HECO |
| ||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Net income (loss) |
|
$ |
101,066 |
|
27,185 |
|
18,355 |
|
(5 |
) |
(4 |
) |
(44,616 |
)[2] |
$ |
101,981 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Equity in earnings |
|
(44,716 |
) |
— |
|
— |
|
— |
|
— |
|
44,616 |
[2] |
(100 |
) | ||
|
Common stock dividends received from subsidiaries |
|
28,228 |
|
— |
|
— |
|
— |
|
— |
|
(28,128 |
)[2] |
100 |
| ||
|
Depreciation of property, plant and equipment |
|
89,324 |
|
32,767 |
|
20,884 |
|
— |
|
— |
|
— |
|
142,975 |
| ||
|
Other amortization |
|
9,890 |
|
2,528 |
|
4,960 |
|
— |
|
— |
|
— |
|
17,378 |
| ||
|
Impairment of utility plant |
|
9,215 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
9,215 |
| ||
|
Changes in deferred income taxes |
|
38,548 |
|
16,101 |
|
14,442 |
|
— |
|
— |
|
— |
|
69,091 |
| ||
|
Changes in tax credits, net |
|
1,464 |
|
117 |
|
506 |
|
— |
|
— |
|
— |
|
2,087 |
| ||
|
Allowance for equity funds used during construction |
|
(4,572 |
) |
(592 |
) |
(800 |
) |
— |
|
— |
|
— |
|
(5,964 |
) | ||
|
Decrease in cash overdraft |
|
— |
|
(2,527 |
) |
(161 |
) |
— |
|
— |
|
— |
|
(2,688 |
) | ||
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Increase in accounts receivable |
|
(34,167 |
) |
(2,985 |
) |
(5,663 |
) |
— |
|
— |
|
(1,589 |
)[1] |
(44,404 |
) | ||
|
Decrease (Increase) in accrued unbilled revenues |
|
(31,616 |
) |
(2,481 |
) |
655 |
|
— |
|
— |
|
— |
|
(33,442 |
) | ||
|
Increase in fuel oil stock |
|
(6,757 |
) |
(3,466 |
) |
(8,620 |
) |
— |
|
— |
|
— |
|
(18,843 |
) | ||
|
Increase in materials and supplies |
|
(6,206 |
) |
(202 |
) |
(63 |
) |
— |
|
— |
|
— |
|
(6,471 |
) | ||
|
Increase in regulatory assets |
|
(31,774 |
) |
(2,025 |
) |
(6,333 |
) |
— |
|
— |
|
— |
|
(40,132 |
) | ||
|
Increase (decrease) in accounts payable |
|
(34,515 |
) |
4,391 |
|
(5,691 |
) |
— |
|
— |
|
— |
|
(35,815 |
) | ||
|
Changes in prepaid and accrued income taxes and revenue taxes |
|
51,593 |
|
9,641 |
|
8,502 |
|
— |
|
— |
|
— |
|
69,736 |
| ||
|
Contributions to defined benefit pension and other postretirement benefit plans |
|
(54,183 |
) |
(9,191 |
) |
(9,802 |
) |
|
|
|
|
— |
|
(73,176 |
) | ||
|
Changes in other assets and liabilities |
|
16,312 |
|
(7,174 |
) |
(859 |
) |
(2 |
) |
— |
|
1,589 |
[2] |
9,866 |
| ||
|
Net cash provided by (used in) operating activities |
|
97,134 |
|
62,087 |
|
30,312 |
|
(7 |
) |
(4 |
) |
(28,128 |
) |
161,394 |
| ||
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Capital expenditures |
|
(160,528 |
) |
(34,230 |
) |
(31,264 |
) |
— |
|
— |
|
— |
|
(226,022 |
) | ||
|
Contributions in aid of construction |
|
15,003 |
|
6,271 |
|
2,260 |
|
— |
|
— |
|
— |
|
23,534 |
| ||
|
Advances from (to) affiliates |
|
— |
|
(15,200 |
) |
11,000 |
|
— |
|
— |
|
4,200 |
[1] |
— |
| ||
|
Other |
|
77 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
77 |
| ||
|
Investment in consolidated subsidiary |
|
(25 |
) |
— |
|
— |
|
— |
|
— |
|
25 |
[2] |
— |
| ||
|
Net cash used in investing activities |
|
(145,473 |
) |
(43,159 |
) |
(18,004 |
) |
— |
|
— |
|
4,225 |
|
(202,411 |
) | ||
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Common stock dividends |
|
(70,558 |
) |
(16,124 |
) |
(12,004 |
) |
— |
|
— |
|
28,128 |
[2] |
(70,558 |
) | ||
|
Preferred stock dividends of HECO and subsidiaries |
|
(1,080 |
) |
(534 |
) |
(381 |
) |
— |
|
— |
|
— |
|
(1,995 |
) | ||
|
Proceeds from issuance of common stock |
|
40,000 |
|
— |
|
— |
|
— |
|
25 |
|
(25 |
)[2] |
40,000 |
| ||
|
Net increase in short-term borrowings from nonaffiliates and affiliate with original maturities of three months or less |
|
4,200 |
|
— |
|
— |
|
— |
|
— |
|
(4,200 |
)[1] |
— |
| ||
|
Other |
|
(423 |
) |
(116 |
) |
(21 |
) |
— |
|
— |
|
— |
|
(560 |
) | ||
|
Net cash provided by (used in) financing activities |
|
(27,861 |
) |
(16,774 |
) |
(12,406 |
) |
— |
|
25 |
|
23,903 |
|
(33,113 |
) | ||
|
Net increase (decrease) in cash and cash equivalents |
|
(76,200 |
) |
2,154 |
|
(98 |
) |
(7 |
) |
21 |
|
— |
|
(74,130 |
) | ||
|
Cash and cash equivalents, beginning of year |
|
121,019 |
|
1,229 |
|
594 |
|
89 |
|
5 |
|
— |
|
122,936 |
| ||
|
Cash and cash equivalents, end of year |
|
$ |
44,819 |
|
3,383 |
|
496 |
|
82 |
|
26 |
|
— |
|
$ |
48,806 |
|
Explanation of reclassifications and eliminations on consolidating schedules:
[1] Eliminations of intercompany receivables and payables and other intercompany transactions.
[2] Elimination of investment in subsidiaries, carried at equity.
[3] Reclassification of accrued income taxes for financial statement presentation.