(Thousands of Dollars)

As of September 30, 2017

As of December 31, 2016

ASSETS

Current Assets:

Cash and Cash Equivalents

$

125,761

$

30,251

Receivables, Net

919,959

847,301

Unbilled Revenues

146,634

168,490

Fuel, Materials, Supplies and Inventory

305,035

328,721

Regulatory Assets

746,142

887,625

Prepayments and Other Current Assets

159,939

215,284

Total Current Assets

2,403,470

2,477,672

Property, Plant and Equipment, Net

22,537,304

21,350,510

Deferred Debits and Other Assets:

Regulatory Assets

3,505,901

3,638,688

Goodwill

3,519,401

3,519,401

Marketable Securities

570,255

544,642

Other Long-Term Assets

627,289

522,260

Total Deferred Debits and Other Assets

8,222,846

8,224,991

Total Assets

$

33,163,620

$

32,053,173

LIABILITIES AND CAPITALIZATION

Current Liabilities:

Notes Payable

$

18,238

$

1,148,500

Long-Term Debt – Current Portion

957,697

773,883

Accounts Payable

794,195

884,521

Obligations to Third Party Suppliers

149,789

122,806

Regulatory Liabilities

170,215

146,787

Other Current Liabilities

530,297

562,108

Total Current Liabilities

2,620,431

3,638,605

Deferred Credits and Other Liabilities:

Accumulated Deferred Income Taxes

6,001,589

5,607,207

Regulatory Liabilities

700,207

702,255

Derivative Liabilities

391,910

413,676

Accrued Pension and SERP

946,629

1,141,514

Other Long-Term Liabilities

881,056

853,260

Total Deferred Credits and Other Liabilities

8,921,391

8,717,912

Capitalization:

Long-Term Debt

10,468,193

8,829,354

Noncontrolling Interest – Preferred Stock of Subsidiaries

155,568

155,568

Equity:

Common Shareholders' Equity:

Common Shares

1,669,392

1,669,392

Capital Surplus, Paid In

6,235,846

6,250,224

Retained Earnings

3,474,185

3,175,171

Accumulated Other Comprehensive Loss

(63,615)

(65,282)

Treasury Stock

(317,771)

(317,771)

Common Shareholders' Equity

10,998,037

10,711,734

Total Capitalization

21,621,798

19,696,656

Total Liabilities and Capitalization

$

33,163,620

$

32,053,173

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(Thousands of Dollars, Except Share Information)

2017

2016

2017

2016

Operating Revenues

$

1,988,512

$

2,039,706

$

5,856,458

$

5,862,525

Operating Expenses:

Purchased Power, Fuel and Transmission

651,776

665,810

1,955,129

2,001,929

Operations and Maintenance

300,421

324,734

933,400

965,584

Depreciation

194,466

181,288

571,152

531,781

Amortization of Regulatory Assets, Net

41,848

43,942

58,058

56,223

Energy Efficiency Programs

129,205

149,121

391,761

405,962

Taxes Other Than Income Taxes

168,193

164,942

479,648

479,219

Total Operating Expenses

1,485,909

1,529,837

4,389,148

4,440,698

Operating Income

502,603

509,869

1,467,310

1,421,827

Interest Expense

108,719

99,865

319,477

298,568

Other Income, Net

21,184

13,641

56,304

23,689

Income Before Income Tax Expense

415,068

423,645

1,204,137

1,146,948

Income Tax Expense

152,818

156,446

447,921

428,186

Net Income

262,250

267,199

756,216

718,762

Net Income Attributable to Noncontrolling Interests

1,880

1,880

5,639

5,639

Net Income Attributable to Common Shareholders

$

260,370

$

265,319

$

750,577

$

713,123

Basic and Diluted Earnings Per Common Share

$

0.82

$

0.83

$

2.36

$

2.24

Dividends Declared Per Common Share

$

0.48

$

0.45

$

1.43

$

1.34

Weighted Average Common Shares Outstanding:

Basic

317,393,029

317,787,836

317,415,848

317,696,823

Diluted

317,949,396

318,577,079

318,007,042

318,511,609

For the Nine Months Ended September 30,

(Thousands of Dollars)

2017

2016

Operating Activities:

Net Income

756,216

718,762

Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:

Depreciation

571,152

531,781

Deferred Income Taxes

374,863

301,413

Pension, SERP and PBOP Expense, Net

16,891

31,627

Pension and PBOP Contributions

(197,900)

(121,854)

Regulatory Overrecoveries, Net

185,952

152,808

Amortization of Regulatory Assets, Net

58,058

56,223

Other

(148,741)

(27,671)

Changes in Current Assets and Liabilities:

Receivables and Unbilled Revenues, Net

(107,473)

(191,454)

Fuel, Materials, Supplies and Inventory

23,686

25,425

Taxes Receivable/Accrued, Net

88,856

347,898

Accounts Payable

(96,551)

(121,513)

Other Current Assets and Liabilities, Net

(32,874)

(53,077)

Net Cash Flows Provided by Operating Activities

1,492,135

1,650,368

Investing Activities:

Investments in Property, Plant and Equipment

(1,642,280)

(1,359,171)

Proceeds from Sales of Marketable Securities

520,664

444,209

Purchases of Marketable Securities

(506,302)

(437,197)

Other Investing Activities

(10,177)

(9,463)

Net Cash Flows Used in Investing Activities

(1,638,095)

(1,361,622)

Financing Activities:

Cash Dividends on Common Shares

(451,562)

(423,471)

Cash Dividends on Preferred Stock

(5,639)

(5,639)

Decrease in Notes Payable

(231,500)

(426,453)

Issuance of Long-Term Debt

1,250,000

800,000

Retirements of Long-Term Debt

(320,000)

(200,000)

Other Financing Activities

171

(17,074)

Net Cash Flows Provided by/(Used in) Financing Activities

241,470

(272,637)

Net Increase in Cash and Cash Equivalents

95,510

16,109

Cash and Cash Equivalents - Beginning of Period

30,251

23,947

Cash and Cash Equivalents - End of Period

$

125,761

40,056