EL PASO, Texas--(BUSINESS WIRE)--
El Paso Electric (NYSE: EE):
Overview
For the first quarter of 2012, EE reported net income of $3.3 million,
or $0.08 basic and diluted earnings per share. In the first quarter of
2011, EE reported net income of $6.8 million, or $0.16 basic and diluted
earnings per share.
"In the first quarter of 2012, we experienced an anticipated decline in
net income, due primarily to an increase in the level of scheduled
maintenance at our generating plants and lower allowance for funds used
during construction associated with the completion of Phase II for
Newman Unit 5 in April 2011," said Tom Shockley, Interim Chief Executive
Officer. "This decline was partially offset by increased revenues,
reflecting a steady increase in retail sales, which includes 1.5% growth
in the average number of customers served. The recent rate settlement
with the City of El Paso is designed to encourage economic growth, which
is a common goal shared by the City of El Paso and the Company."
Earnings Summary
The table and explanations below present the major factors affecting
2012 net income relative to 2011 net income.
|
|
Quarter Ended
|
|
|
Pre-Tax
Effect
|
|
|
After-Tax
Net
Income
|
|
|
Basic
EPS
|
March 31, 2011
|
|
|
|
|
$
|
6,775
|
|
|
|
$
|
0.16
|
|
Changes in:
|
|
|
|
|
|
|
|
|
Retail non-fuel base revenue
|
|
$
|
2,125
|
|
|
|
|
1,339
|
|
|
|
|
0.03
|
|
Fossil fuel plant O&M
|
|
|
(2,600
|
)
|
|
|
|
(1,638
|
)
|
|
|
|
(0.04
|
)
|
AFUDC
|
|
|
(1,791
|
)
|
|
|
|
(1,533
|
)
|
|
|
|
(0.03
|
)
|
Deregulated Palo Verde Unit 3 revenues
|
|
|
(1,347
|
)
|
|
|
|
(849
|
)
|
|
|
|
(0.02
|
)
|
Employee pensions and benefits
|
|
|
(1,176
|
)
|
|
|
|
(741
|
)
|
|
|
|
(0.02
|
)
|
Palo Verde O&M
|
|
|
(1,080
|
)
|
|
|
|
(680
|
)
|
|
|
|
(0.02
|
)
|
Other
|
|
|
|
|
|
671
|
|
|
|
|
0.02
|
|
March 31, 2012
|
|
|
|
|
$
|
3,344
|
|
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2012
Income for the quarter ended March 31, 2012, when compared to the same
period last year, was positively affected by:
-
Increased retail non-fuel base revenues in 2012 primarily due to a
3.3% increase in kWh sales to retail customers reflecting 1.5%
increase in the average number of retail customers served in the first
quarter of 2012 as compared to the same period in 2011.
Income for the quarter ended March 31, 2012, when compared to the same
period last year, was negatively affected by:
-
Increased fossil fuel plant O&M expense primarily due to the timing of
planned maintenance of our gas-fired generating units. In the first
quarter of 2012, we performed scheduled major maintenance at Rio
Grande Unit 8 and at Newman Unit 1.
-
Decreased AFUDC in 2012 due to lower balances of construction work in
progress subject to AFUDC, which was largely related to placing Newman
Unit 5 Phase II in service effective April 30, 2011.
-
Decreased revenues from retail sales of deregulated Palo Verde Unit 3
power due to lower proxy market prices associated with the decline in
natural gas prices and a 12% decrease in generation at Palo Verde Unit
3 due to the March 17 through April 17, 2012 refueling outage.
-
Increased employee pension and benefits expense reflecting lower
discount rates used to determine pension and post-retirement benefit
costs.
-
Increased Palo Verde O&M expense due to the timing of the Unit 3
spring refueling outage, which began on March 17 and was completed on
April 17, 2012. In 2011, the Unit 2 spring refueling outage began on
April 2 and was completed on May 6, 2011.
Retail Non-fuel Base Revenues
Retail non-fuel base revenues increased by $2.1 million, pre-tax, or
2.0% in the first quarter of 2012 compared to the same period in 2011.
The increase was primarily due to a 3.3% increase in kWh sales to retail
customers reflecting 1.5% growth in the average number of retail
customers served. Sales increased despite mild winter weather. Heating
degree days decreased 8% in the first quarter of 2012 when compared to
the first quarter of 2011 and were 9% below the 30-year average. Retail
non-fuel base revenues also increased due to a 7.5% increase in kWh
sales to our large commercial and industrial customers. Non-fuel base
revenues and kilowatt-hour sales are provided by customer class on page
8 of the Release.
Rate Matters
On April 17, 2012, the City Council (the "Council") of El Paso, Texas
approved the settlement of our 2012 Texas retail rate case and fuel
reconciliation in PUCT Docket No. 40094. The settlement reflects
discussions with the Public Utility Commission of Texas (the "PUCT"),
the City of El Paso and other intervenors in Docket No. 40094. The
approval by the Council (i) resolves the local, City of El Paso rate
proceeding that commenced with the October 4, 2011 show cause order of
the Council, (ii) implements new rates within the city limits of El Paso
commencing with bills rendered on and after May 1, 2012, and (iii)
rescinds and withdraws the temporary rate order that the Council issued
on November 15, 2011.
For Texas service areas outside of the city limits of El Paso, the
settlement was filed with the PUCT on April 19, 2012 and no intervenors
are opposing the settlement. On April 26, 2012, the administrative law
judges issued an order (i) implementing the settlement rates as
temporary rates effective May 1, 2012, and (ii) dismissing the case
before the State Office of Administrative Hearings sending the
settlement to the PUCT for final approval. While we can give no
assurance whether the settlement will receive the required approvals,
the PUCT is likely to address the settlement in May or June 2012.
Under the terms of the settlement, among other things, we have agreed to:
-
A reduction in our current non-fuel base rates of $15 million
annually, with the decrease being allocated primarily to Texas retail
commercial and industrial customer classes. The rate decrease will be
effective as of May 1, 2012;
-
New tariffs that will include an Economic Development Rate Rider that
provides discounts in the demand charge and is intended to spur new
business development in our Texas service area;
-
Revised depreciation rates for our gas-fired generating units and for
transmission and distribution plant that will lower depreciation
expense by $4.1 million annually;
-
Continuation of the 10.125% return on equity for the purpose of
calculating the allowance for funds used during construction;
-
A two-year amortization of rate case expenses, none of which will be
included in future regulatory proceedings; and
-
Palo Verde decommissioning funding of $3.6 million annually on a Texas
jurisdictional basis, which will be subject to review and adjustment
on a going-forward basis in future proceedings.
As part of the settlement, we have agreed to withdraw our request to
reconcile fuel costs for the period from July 1, 2009 through September
30, 2011. We will file a fuel reconciliation request covering the period
beginning July 1, 2009 and ending no later than June 30, 2013 by
December 31, 2013 or as part of our next rate case, if earlier.
On April 12, 2012, we filed with the PUCT a request to reduce our fixed
fuel factor charged to Texas retail customers. The fixed fuel factor is
based upon a formula that reflects current costs of fuel for changes in
prices for natural gas and the revision reflects recent declines in
prices for natural gas. The impact of the reduction in the fuel factor
will be a reduction in annual fuel revenues of approximately $30
million. On April 25, 2012, the administrative law judge issued an order
approving new fuel factors effective May 1, 2012.
Capital and Liquidity
We continue to maintain a strong capital structure to ensure access to
capital markets at reasonable rates. At March 31, 2012, common stock
equity represented 44.6% of our capitalization (common stock equity,
long-term debt and the current maturities of long-term debt, and
short-term borrowings under the revolving credit facility). At March 31,
2012, we had a balance of $6.1 million in cash and cash equivalents. We
believe that we will have adequate liquidity through our current cash
balances, cash from operations, and our revolving credit facility to
meet all of our anticipated cash requirements through 2012 based on
current projections.
Cash flows from operations for the three months ended March 31, 2012
were $34.9 million compared to $22.4 million in the corresponding period
in 2011. The primary factor affecting the increased cash flow was an
increase in the collection of deferred fuel revenues in 2012. The
difference between fuel revenues collected and fuel expense incurred is
deferred to be either refunded (over-recoveries) or surcharged
(under-recoveries) to customers in the future. During the three months
ended March 31, 2012, the Company had a fuel over-recovery of $11.9
million as compared to an under-recovery of $1.2 million during the
three months ended March 31, 2011. At March 31, 2012, we had a net fuel
over-recovery balance of $4.9 million, including $1.5 million in Texas
and $3.4 million in New Mexico. As noted above, on April 25, 2012, we
received approval to reduce our fixed fuel factor charged to Texas
retail customers.
During the three months ended March 31, 2012, our primary capital
requirements were for the construction and purchase of electric utility
plant, purchases of nuclear fuel, and payment of common stock dividends.
Capital requirements for new electric plant were $48.2 million for the
three months ended March 31, 2012 compared to $45.4 million for the
three months ended March 31, 2011. Capital requirements for purchases of
nuclear fuel were $32.7 million for the three months ended March 31,
2012 compared to $14.2 million for the three months ended March 31, 2011.
No shares of common stock were repurchased during the first quarter of
2012. As of March 31, 2012, 393,816 shares remain available for
repurchase under the currently authorized stock repurchase program. The
Company may repurchase shares in the open market from time to time.
We maintain a revolving credit facility ("RCF") for working capital and
general corporate purposes and financing of nuclear fuel through the Rio
Grande Resources Trust ("RGRT"). RGRT is the trust through which we
finance our portion of nuclear fuel for Palo Verde and is consolidated
in the Company's financial statements. The RCF has a term ending
September 2016. On March 29, 2012, EE increased the aggregate unsecured
borrowing available under the RCF from $200 million to $300 million. The
terms of the agreement provide that amounts we borrow under the RCF may
be used for working capital and general corporate purposes. The total
amount borrowed for nuclear fuel by RGRT was $149.6 million at March 31,
2012 of which $39.6 million had been borrowed under the RCF and $110
million was borrowed through senior notes. Borrowings by RGRT for
nuclear fuel were $123.0 million as of March 31, 2011, of which $13.0
million had been borrowed under the RCF and $110 million was borrowed
through senior notes. Interest costs on borrowings to finance nuclear
fuel are accumulated by RGRT and charged to EE as fuel is consumed and
recovered through fuel recovery charges. At March 31, 2012, $53.0
million was outstanding under the RCF for working capital or general
corporate purposes.
On March 30, 2012, the Company paid a quarterly cash dividend of $0.22
per share to shareholders of record on March 15, 2012. At the current
payout rate, we expect to pay total cash dividends of approximately
$35.2 million during 2012. The Board of Directors plans to review the
Company's dividend policy annually, in conjunction with the annual
shareholder meeting held in the second quarter of each year. Our current
expectation is that our payout ratio will trend upward from its current
level, with a payout ratio of approximately 45% being the anticipated
target for 2012.
2012 Earnings Guidance
We are providing updated earnings guidance for 2012 of a range of $2.05
to $2.40 per basic share. The decrease to the earnings guidance range
from the previously disclosed range of $2.15 to $2.55 per basic share is
primarily due to the settlement of our Texas rate case.
Conference Call
A conference call to discuss first quarter 2012 earnings is scheduled
for 10:30 a.m. Eastern Time, May 2, 2012. The dial-in number is
888-487-0361 with a conference ID of 1746561. The conference leader will
be Steven P. Busser, Vice President — Treasurer of EE. A replay will run
through May 16, 2012 with a dial-in number of 888-203-1112 and a
conference ID of 1746561. The conference call and presentation slides
will be webcast live on EE's website found at http://www.epelectric.com.
A replay of the webcast will be available shortly after the call.
Safe Harbor
This news release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. This
information may involve risks and uncertainties that could cause actual
results to differ materially from such forward-looking statements.
Factors that could cause or contribute to such differences include, but
are not limited to: (i) the financial impact of the proposed settlement
to our rate case filed February 1, 2012 which is expected to be approved
by the PUCT in May or June 2012; (ii) increased prices for fuel and
purchased power and the possibility that regulators may not permit EE to
pass through all such increased costs to customers or to recover
previously incurred fuel costs in rates; (iii) recovery of capital
investments and operating costs through rates in Texas and New Mexico;
(iv) uncertainties and instability in the general economy and the
resulting impact on EE's sales and profitability; (v) unanticipated
increased costs associated with scheduled and unscheduled outages;
(vi) the size of our construction program and our ability to complete
construction on budget and on time; (vii) costs at Palo Verde;
(viii) deregulation and competition in the electric utility industry;
(ix) possible increased costs of compliance with environmental or other
laws, regulations and policies; (x) possible income tax and interest
payments as a result of audit adjustments proposed by the IRS;
(xi) uncertainties and instability in the financial markets and the
resulting impact on EE's ability to access the capital and credit
markets; and (xii) other factors detailed by EE in its public filings
with the Securities and Exchange Commission. EE's filings are available
from the Securities and Exchange Commission or may be obtained through
EE's website, http://www.epelectric.com.
Any such forward-looking statement is qualified by reference to these
risks and factors. EE cautions that these risks and factors are not
exclusive. EE does not undertake to update any forward-looking statement
that may be made from time to time by or on behalf of EE except as
required by law.
|
|
|
El Paso Electric Company and Subsidiary
|
Consolidated Statements of Operations
|
Quarter Ended March 31, 2012 and 2011
|
(In thousands except for per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Variance
|
|
Operating revenues, net of energy expenses:
|
|
|
|
|
|
|
|
|
|
|
Base revenues
|
|
$
|
106,535
|
|
|
$
|
104,562
|
|
|
$
|
1,973
|
|
(a)
|
Deregulated Palo Verde Unit 3 proxy market pricing
|
|
|
2,593
|
|
|
|
3,940
|
|
|
|
(1,347
|
)
|
|
Other
|
|
|
7,457
|
|
|
|
6,377
|
|
|
|
1,080
|
|
|
Operating Revenues Net of Energy Expenses
|
|
|
116,585
|
|
|
|
114,879
|
|
|
|
1,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Other operations and maintenance
|
|
|
46,716
|
|
|
|
43,754
|
|
|
|
2,962
|
|
|
Palo Verde operations and maintenance
|
|
|
23,669
|
|
|
|
22,589
|
|
|
|
1,080
|
|
|
Taxes other than income taxes
|
|
|
13,640
|
|
|
|
13,127
|
|
|
|
513
|
|
|
Other income (deductions)
|
|
|
1,364
|
|
|
|
1,940
|
|
|
|
(576
|
)
|
|
Earnings Before Interest, Taxes, Depreciation and Amortization
|
|
33,924
|
|
|
37,349
|
|
|
(3,425
|
)
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
20,518
|
|
|
|
20,936
|
|
|
|
(418
|
)
|
|
Interest on long-term debt
|
|
|
13,563
|
|
|
|
13,498
|
|
|
|
65
|
|
|
AFUDC and capitalized interest
|
|
|
4,478
|
|
|
|
6,156
|
|
|
|
(1,678
|
)
|
|
Other interest expense
|
|
|
200
|
|
|
|
297
|
|
|
|
(97
|
)
|
|
Income Before Income Taxes
|
|
|
4,121
|
|
|
|
8,774
|
|
|
|
(4,653
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
777
|
|
|
|
1,999
|
|
|
|
(1,222
|
)
|
|
Net Income
|
|
$
|
3,344
|
|
|
$
|
6,775
|
|
|
$
|
(3,431
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings per Share
|
|
$
|
0.08
|
|
|
$
|
0.16
|
|
|
$
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per Share
|
|
$
|
0.08
|
|
|
$
|
0.16
|
|
|
$
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share of common stock
|
|
$
|
0.22
|
|
|
$
|
-
|
|
|
$
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding
|
|
|
39,911
|
|
|
|
42,308
|
|
|
|
(2,397
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares and dilutive potential shares
outstanding
|
|
|
40,000
|
|
|
|
42,523
|
|
|
|
(2,523
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Base revenues exclude fuel recovered through New Mexico base
rates of $17.0 million and $16.4 million, respectively.
|
(b) EBITDA is a non-GAAP financial measure and is not a substitute
for net income or other measures of financial performance in
accordance with GAAP.
|
|
|
|
|
|
El Paso Electric Company and Subsidiary
|
Cash Flow Summary
|
Quarter Ended March 31, 2012 and 2011
|
(In thousands and Unaudited)
|
|
|
|
|
|
|
|
2012
|
|
2011
|
Cash flows from operating activities:
|
|
|
|
|
Net income
|
|
$
|
3,344
|
|
|
$
|
6,775
|
|
Adjustments to reconcile net income to net cash
|
|
|
|
|
provided by operations:
|
|
|
|
|
Depreciation and amortization of electric plant in service
|
|
|
20,518
|
|
|
|
20,936
|
|
Deferred income taxes, net
|
|
|
3,974
|
|
|
|
12,291
|
|
Other
|
|
|
10,698
|
|
|
|
13,465
|
|
Change in:
|
|
|
|
|
Net recovery (deferral) of fuel revenues
|
|
|
11,937
|
|
|
|
(1,193
|
)
|
Accounts payable
|
|
|
(12,590
|
)
|
|
|
(6,569
|
)
|
Other (a)
|
|
|
(3,026
|
)
|
|
|
(23,347
|
)
|
Net cash provided by operating activities
|
|
|
34,855
|
|
|
|
22,358
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Cash additions to utility property, plant and equipment
|
|
|
(48,164
|
)
|
|
|
(45,388
|
)
|
Cash additions to nuclear fuel
|
|
|
(32,725
|
)
|
|
|
(14,228
|
)
|
Decommissioning trust funds
|
|
|
(2,407
|
)
|
|
|
(3,235
|
)
|
Other
|
|
|
(1,882
|
)
|
|
|
(3,058
|
)
|
Net cash used for investing activities
|
|
|
(85,178
|
)
|
|
|
(65,909
|
)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Repurchase of common stock
|
|
|
-
|
|
|
|
(16,675
|
)
|
Dividends paid
|
|
|
(8,809
|
)
|
|
|
-
|
|
Financing obligations
|
|
|
59,191
|
|
|
|
8,247
|
|
Other
|
|
|
(2,153
|
)
|
|
|
(300
|
)
|
Net cash provided by (used for) financing activities
|
|
|
48,229
|
|
|
|
(8,728
|
)
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
|
|
(2,094
|
)
|
|
|
(52,279
|
)
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
8,208
|
|
|
|
79,184
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
6,114
|
|
|
$
|
26,905
|
|
|
|
|
|
|
(a) 2012 includes funding of $7.1 million to EE's pension and
other post-retirement employee benefit plans compared to funding
of $14.7 million for the entire year in the first quarter of 2011.
|
|
|
|
|
|
|
|
|
|
|
El Paso Electric Company and Subsidiary
|
Quarter Ended March 31, 2012 and 2011
|
Sales and Revenues Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|
|
2012
|
|
2011
|
|
Amount
|
|
Percentage
|
MWh sales:
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
555,569
|
|
|
|
541,282
|
|
|
|
14,287
|
|
|
2.6
|
%
|
Commercial and industrial, small
|
|
|
491,237
|
|
|
|
478,521
|
|
|
|
12,716
|
|
|
2.7
|
%
|
Commercial and industrial, large
|
|
|
246,358
|
|
|
|
229,232
|
|
|
|
17,126
|
|
|
7.5
|
%
|
Public authorities
|
|
|
343,511
|
|
|
|
334,969
|
|
|
|
8,542
|
|
|
2.6
|
%
|
Total retail sales
|
|
|
1,636,675
|
|
|
|
1,584,004
|
|
|
|
52,671
|
|
|
3.3
|
%
|
Wholesale:
|
|
|
|
|
|
|
|
|
|
Sales for resale
|
|
|
11,807
|
|
|
|
11,653
|
|
|
|
154
|
|
|
1.3
|
%
|
Off-system sales
|
|
|
708,679
|
|
|
|
767,620
|
|
|
|
(58,941
|
)
|
|
(7.7
|
%)
|
Total wholesale sales
|
|
|
720,486
|
|
|
|
779,273
|
|
|
|
(58,787
|
)
|
|
(7.5
|
%)
|
Total MWh sales
|
|
|
2,357,161
|
|
|
|
2,363,277
|
|
|
|
(6,116
|
)
|
|
(0.3
|
%)
|
|
|
|
|
|
|
|
|
|
|
Operating revenues (in thousands):
|
|
|
|
|
|
|
|
|
|
Non-fuel base revenues:
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
Residential
|
|
$
|
46,025
|
|
|
$
|
44,977
|
|
|
$
|
1,048
|
|
|
2.3
|
%
|
Commercial and industrial, small
|
|
|
33,801
|
|
|
|
33,214
|
|
|
|
587
|
|
|
1.8
|
%
|
Commercial and industrial, large
|
|
|
9,371
|
|
|
|
8,801
|
|
|
|
570
|
|
|
6.5
|
%
|
Public authorities
|
|
|
16,940
|
|
|
|
17,020
|
|
|
|
(80
|
)
|
|
(0.5
|
%)
|
Total retail non-fuel base revenues
|
|
|
106,137
|
|
|
|
104,012
|
|
|
|
2,125
|
|
|
2.0
|
%
|
Wholesale:
|
|
|
|
|
|
|
|
|
|
Sales for resale
|
|
|
398
|
|
|
|
550
|
|
|
|
(152
|
)
|
|
(27.6
|
%)
|
Total non-fuel base revenues
|
|
|
106,535
|
|
|
|
104,562
|
|
|
|
1,973
|
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
|
Fuel revenues (a):
|
|
|
|
|
|
|
|
|
|
Recovered from customers during the period
|
|
|
32,534
|
|
|
|
25,863
|
|
|
|
6,671
|
|
|
25.8
|
%
|
Under (over) collection of fuel
|
|
|
(11,931
|
)
|
|
|
1,038
|
|
|
|
(12,969
|
)
|
|
-
|
|
New Mexico fuel in base rates
|
|
|
16,964
|
|
|
|
16,369
|
|
|
|
595
|
|
|
3.6
|
%
|
Total fuel revenues
|
|
|
37,567
|
|
|
|
43,270
|
|
|
|
(5,703
|
)
|
|
(13.2
|
%)
|
|
|
|
|
|
|
|
|
|
|
Off-system sales:
|
|
|
|
|
|
|
|
|
|
Fuel cost
|
|
|
15,466
|
|
|
|
20,262
|
|
|
|
(4,796
|
)
|
|
(23.7
|
%)
|
Shared margins
|
|
|
1,188
|
|
|
|
1,165
|
|
|
|
23
|
|
|
2.0
|
%
|
Retained margins
|
|
|
140
|
|
|
|
(61
|
)
|
|
|
201
|
|
|
-
|
|
Total off-system sales
|
|
|
16,794
|
|
|
|
21,366
|
|
|
|
(4,572
|
)
|
|
(21.4
|
%)
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
7,682
|
|
|
|
6,914
|
|
|
|
768
|
|
|
11.1
|
%
|
Total operating revenues
|
|
$
|
168,578
|
|
|
$
|
176,112
|
|
|
$
|
(7,534
|
)
|
|
(4.3
|
%)
|
|
|
|
|
|
|
|
|
|
|
Average number of retail customers:
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
339,469
|
|
|
|
334,832
|
|
|
|
4,637
|
|
|
1.4
|
%
|
Commercial and industrial, small
|
|
38,008
|
|
|
|
37,064
|
|
|
|
944
|
|
|
2.5
|
%
|
Commercial and industrial, large
|
|
|
49
|
|
|
|
50
|
|
|
|
(1
|
)
|
|
(2.0
|
%)
|
Public authorities
|
|
|
4,555
|
|
|
|
4,536
|
|
|
|
19
|
|
|
0.4
|
%
|
Total
|
|
|
382,081
|
|
|
|
376,482
|
|
|
|
5,599
|
|
|
1.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Number of retail customers (end of
period):
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
339,886
|
|
|
|
335,756
|
|
|
|
4,130
|
|
|
1.2
|
%
|
Commercial and industrial, small
|
|
|
38,036
|
|
|
|
37,363
|
|
|
|
673
|
|
|
1.8
|
%
|
Commercial and industrial, large
|
|
|
49
|
|
|
|
50
|
|
|
|
(1
|
)
|
|
(2.0
|
%)
|
Public authorities
|
|
|
4,581
|
|
|
|
4,897
|
|
|
|
(316
|
)
|
|
(6.5
|
%)
|
Total
|
|
|
382,552
|
|
|
|
378,066
|
|
|
|
4,486
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Weather statistics
|
|
|
|
|
|
|
30 Yr Average
|
|
|
Heating degree days
|
|
|
1,159
|
|
|
|
1,265
|
|
|
|
1,273
|
|
|
|
Cooling degree days
|
|
|
37
|
|
|
|
41
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes deregulated Palo Verde Unit 3 revenues for the New
Mexico jurisdiction of $2.6 million and $3.9 million, respectively.
|
|
|
|
|
|
|
|
|
|
El Paso Electric Company and Subsidiary
|
Quarter Ended March 31, 2012 and 2011
|
Generation and Purchased Power Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|
|
2012
|
|
2011
|
|
Amount
|
|
Percentage
|
Generation and purchased power (MWh):
|
|
|
|
|
|
|
|
|
Palo Verde
|
|
1,281,180
|
|
|
1,329,807
|
|
|
(48,627
|
)
|
|
(3.7
|
%)
|
Four Corners
|
|
193,483
|
|
|
166,971
|
|
|
26,512
|
|
|
15.9
|
%
|
Gas plants (a)
|
|
562,439
|
|
|
617,334
|
|
|
(54,895
|
)
|
|
(8.9
|
%)
|
Total generation
|
|
2,037,102
|
|
|
2,114,112
|
|
|
(77,010
|
)
|
|
(3.6
|
%)
|
Purchased power
|
|
472,752
|
|
|
561,928
|
|
|
(89,176
|
)
|
|
(15.9
|
%)
|
Total available energy
|
|
2,509,854
|
|
|
2,676,040
|
|
|
(166,186
|
)
|
|
(6.2
|
%)
|
Line losses and Company use (a)
|
|
152,693
|
|
|
312,763
|
|
|
(160,070
|
)
|
|
(51.2
|
%)
|
Total MWh sold
|
|
2,357,161
|
|
|
2,363,277
|
|
|
(6,116
|
)
|
|
(0.3
|
%)
|
|
|
|
|
|
|
|
|
|
Palo Verde capacity factor (b)
|
|
94.3
|
%
|
|
98.9
|
%
|
|
(4.6
|
%)
|
|
|
Four Corners capacity factor
|
|
85.0
|
%
|
|
84.2
|
%
|
|
0.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(a) 2011 gas plant generation includes 149,340 MWhs related to
pre-commercial testing of Newman Unit 5 Phase II. Newman Unit 5
Phase II began commercial operation on April 30, 2011.
|
|
|
|
|
|
|
|
|
|
(b) Palo Verde capacity factor decreased in 2012 as a result of
the Unit 3 spring refueling outage which began on March 17, 2012.
The 2011 Unit 2 spring refueling outage began on April 2.
|
|
|
|
|
|
|
El Paso Electric Company and Subsidiary
|
Financial Statistics
|
At March 31, 2012 and 2011
|
(In thousands, except number of shares, book value per share, and
ratios)
|
|
|
|
|
|
|
Balance Sheet
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
6,114
|
|
|
$
|
26,905
|
|
|
|
|
|
|
|
Common stock equity
|
|
|
$
|
760,157
|
|
|
$
|
802,738
|
|
Long-term debt
|
|
|
|
816,510
|
|
|
|
849,758
|
|
Total capitalization
|
|
|
$
|
1,576,667
|
|
|
$
|
1,652,496
|
|
|
|
|
|
|
|
Current maturities of long-term debt
|
|
|
$
|
33,300
|
|
|
$
|
-
|
|
|
|
|
|
|
|
Short-term borrowings under the revolving credit facility
|
|
|
$
|
92,570
|
|
|
$
|
12,951
|
|
|
|
|
|
|
|
Number of shares - end of period
|
|
|
|
40,040,603
|
|
|
|
42,106,995
|
|
|
|
|
|
|
|
Book value per common share
|
|
|
$
|
18.98
|
|
|
$
|
19.06
|
|
|
|
|
|
|
|
Common equity ratio
|
|
|
|
44.6
|
%
|
|
|
48.2
|
%
|
Debt ratio
|
|
|
|
55.4
|
%
|
|
|
51.8
|
%
|

El Paso Electric
Media:
Teresa Souza, 915-543-5823
or
Analysts:
Steve
Busser, 915-543-5983
or
Greg Shearman, 915-543-4022
Source: El Paso Electric
News Provided by Acquire Media