El Paso Electric Announces Third Quarter Financial Results
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EL PASO, Texas--(BUSINESS WIRE)-- El Paso Electric (NYSE: EE):
Overview
-- For the third quarter 2009, EE reported net income of $33.9 million, or
$0.76 basic and diluted earnings per share. In the third quarter of
2008, EE reported net income of $33.1 million, or $0.74 basic and
diluted earnings per share.
-- For the nine months ended September 30, 2009, EE reported net income of
$59.0 million, or $1.31 basic and diluted earnings per share. Net income
for the nine months ended September 30, 2008 was $66.8 million, or $1.49
and $1.48 basic and diluted earnings per share, respectively.
"We were very pleased with the increase in earnings this quarter as growth in non-fuel retail revenues offset declines in off-system sales margins and deregulated Palo Verde Unit 3 revenues reflecting lower market power prices," said David W. Stevens, Chief Executive Officer. "The increase in retail non-fuel revenues reflected not only hotter summer weather in 2009, but also growth in the number of customers served showing the strength of our local economy. In addition, due to our strong quarter, stable outlook, and improving capital markets, we purchased approximately 751,000 shares of our common stock in the third quarter of 2009."
Earnings Summary
The table and explanations below present the major factors affecting 2009 net income relative to 2008 net income.
Quarter Ended Nine Months Ended
After-Tax After-Tax
Pre-Tax Basic Pre-Tax Basic
Net Net
Effect EPS Effect EPS
Income Income
September 30, $ 33,074 $ 0.74 $ 66,796 $ 1.49
2008
Changes in:
Retail
non-fuel base $ 10,887 6,859 0.15 $ 9,842 6,200 0.14
revenue
Interest and
investment 1,551 1,407 0.03 (2,120 ) (1,687 ) (0.04 )
income
Interest on 387 244 - (5,051 ) (3,182 ) (0.07 )
long-term debt
Retained
margins on (3,077 ) (1,939 ) (0.04 ) (10,084 ) (6,353 ) (0.14 )
off-system
sales
Deregulated
Palo Verde (2,803 ) (1,766 ) (0.04 ) (6,626 ) (4,175 ) (0.10 )
Unit 3
revenues
Administrative (2,379 ) (1,499 ) (0.03 ) (1,494 ) (941 ) (0.02 )
and general
Palo Verde O&M (1,175 ) (740 ) (0.02 ) (47 ) (30 ) -
Fossil Fuel (551 ) (347 ) (0.01 ) 1,977 1,245 0.03
Plant O&M
AFUDC and
capitalized (376 ) (279 ) - 1,169 1,270 0.03
interest
Other (1,082 ) (0.02 ) (171 ) (0.01 )
September 30, $ 33,932 $ 0.76 $ 58,972 $ 1.31
2009
Third Quarter 2009
Earnings for the quarter ended September 30, 2009 when compared to the same period last year were positively affected by:
-- Higher retail non-fuel base revenues in 2009 primarily due to a 13.6%
increase in kWh sales to residential customers and a 6.1% increase in
kWh sales to public authorities.
-- Increased interest and investment income primarily due to a decrease of
$2.5 million in impairments and losses on equity securities in our Palo
Verde decommissioning trust funds in the third quarter of 2009 when
compared to the third quarter of 2008.
Earnings for the quarter ended September 30, 2009 when compared to the same period last year were negatively affected by:
-- Lower retained margins on off-system sales as lower market prices
resulted in reduced margins per MWh and a 20% decline in MWh sold in the
third quarter of 2009 compared to the third quarter of 2008.
-- Decreased revenues from retail sales of deregulated Palo Verde Unit 3
power due to lower proxy market prices in the third quarter of 2009
compared to the same period in 2008.
-- Increased administrative and general expense due to increased accruals
for employee incentive compensation and increased pension and benefits
costs related to increased costs of postretirement benefits and medical
insurance.
-- Increased Palo Verde administrative and general expense partially offset
by a decrease in operating costs at all three units in the third quarter
of 2009 when compared to the same period last year.
Year to Date
Earnings for the nine months ended September 30, 2009 when compared to the same period last year were positively affected by:
-- Higher retail non-fuel base revenues in 2009 primarily due to a 5.8%
increase in kWh sales to residential customers and a 2.5% increase in
kWh sales to public authorities partially offset by a 13.5% decrease in
kWh sales to large commercial and industrial customers.
-- Lower O&M costs at our fossil-fueled generating plants as more planned
major maintenance was performed in the first nine months of 2008 than
was performed in the first nine months of 2009.
-- Increased AFUDC and capitalized interest in 2009 due to higher balances
of construction work in progress subject to AFUDC partially offset by
lower capitalized interest on nuclear fuel due to lower interest rates.
Earnings for the nine months ended September 30, 2009 when compared to the same period last year were negatively affected by:
-- Lower retained margins on off-system sales primarily as a result of
reduced margins per MWh due to lower market power prices.
-- Decreased revenues from retail sales of deregulated Palo Verde Unit 3
power due to lower proxy market prices and lower sales due mostly to a
planned refueling outage in April and May 2009.
-- Increased interest expense on long-term debt as a result of the June
2008 issuance of $150 million of 7.5% Senior Notes and higher interest
rates on pollution control bonds partially offset by lower interest
rates on the revolving credit facility used to finance nuclear fuel.
-- An increase in impairments and losses on equity securities in our Palo
Verde decommissioning trust funds in 2009 compared to 2008.
Retail Non-fuel Base Revenues
Retail non-fuel base revenues increased by $10.9 million, pre-tax, or 8.1% in the third quarter of 2009 compared to the same period in 2008 reflecting a 13.6% increase in kWh sales to residential customers and a 6.1% increase in kWh sales to other public authorities. Increased kWh sales to residential customers in the third quarter of 2009 are the result of hotter summer weather and 1.8% growth in the average number of customers served. During the third quarter of 2009, cooling degree days were 40% above the same period in 2008 and 11% above the 10-year average. Kilowatt-hour sales to public authorities reflected higher sales to Ft. Bliss and White Sands Missile Range. Sales to small commercial and industrial customers were also positively affected by the hotter summer weather. The increase in revenues was partially offset by recession-related declines in revenues from large commercial and industrial customers of 3.0%. The third quarter non-fuel base revenues and kilowatt-hour sales are provided by customer class on page 10 of the release.
For the nine months ended September 30, 2009, retail non-fuel base revenues increased by $9.8 million, pre-tax, or 2.7% primarily reflecting an increase of 5.8% in kWh sales to residential customers and a 2.5% increase in kWh sales to public authorities. These increases reflected the hotter summer weather in 2009 as well as increased sales to Ft. Bliss and White Sands Missile Range. Cooling degree days in 2009 were 23% higher than in 2008 and 8% above the 10-year average. The increase in kWh sales to residential customers also reflects growth of 1.7% in the average number of customers served. These increases were partially offset by a recession-related decline in sales to large commercial and industrial customers. Revenues from large commercial and industrial customers decreased 7.4% in the nine months ended September 30, 2009 compared to the same period in 2008. Nine months ended non-fuel base revenues and kilowatt-hour sales are provided by customer class on page 12 of the release.
Palo Verde Operations
We own approximately 633 MW (undivided interest) of generating capacity in the three generating units at the Palo Verde Nuclear Generating Station, operated by Arizona Public Service Company. The operation of Palo Verde not only affects our ability to make off-system sales but also impacts fuel costs to native load customers and represents a significant portion of our non-fuel operation and maintenance expenses. Palo Verde generation accounted for 62% of total Company generation in the nine months ended September 30, 2009. Megawatt-hours (MWh) generated by Palo Verde increased 6.3% in the nine months ended September 30, 2009 compared to the same period in 2008. In addition, Palo Verde operation and maintenance expenses were virtually the same in the nine months ended September 30, 2009 as the same period in 2008.
Off-system Sales
We make off-system sales in the wholesale power markets when competitively priced excess power is available from our generating plants and purchased power contracts. The table below shows off-system sales in MWh and the pre-tax margins realized and retained by us from sales for the quarter and nine months ended September 30, 2009 and 2008:
Quarter Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
MWh sales 715,641 891,632 2,408,122 2,568,437
Total margins (in thousands) $ 3,035 $ 7,139 $ 10,900 $ 24,314
Retained margins (in thousands) $ 2,278 $ 5,355 $ 8,178 $ 18,262
For the quarter ended September 30, 2009, retained margins from off-system sales decreased approximately $3.1 million, pre-tax, over the corresponding period in 2008. For the nine months ended September 30, 2009, our retained margins decreased $10.1 million, pre-tax, over the corresponding period in 2008. These decreases were primarily due to reduced margins per MWh as a result of lower average market prices for power. The table below shows on a per MWh basis, pre-tax revenues, costs and margins from off-system sales for 2009 and 2008.
Average Average Pre-Sharing
Quarter Ended Revenue Cost of Energy Average Margin
Per MWh Per MWh Per MWh
March 31, 2008 $ 66.07 $ 52.60 $ 13.47
June 30, 2008 $ 88.78 $ 84.89 $ 3.89
September 30, 2008 $ 71.07 $ 63.07 $ 8.00
March 31, 2009 $ 36.49 $ 30.13 $ 6.36
June 30, 2009 $ 35.43 $ 33.63 $ 1.80
September 30, 2009 $ 39.61 $ 35.37 $ 4.24
Capital and Liquidity
We maintain a strong capital structure and cash position to support required investments in electric utility plant. Our capital structure at September 30, 2009 included 47% common stock equity and 53% debt including long-term debt, financing obligations, and the current portion of long-term debt and financing obligations. At September 30, 2009, our liquidity included $121.5 million in cash and cash equivalents, most of which was invested in federally insured accounts.
Cash flows from operations for the nine months ended September 30, 2009 were $213.5 million compared to $114.3 million in the corresponding period in 2008. The primary factor affecting the increased cash flow was the collection of retail fuel revenues in 2009 in excess of fuel expenses. The difference between fuel revenues and fuel expense is deferred for refund (over-recoveries) or surcharge (under-recoveries) to customers in the future. Cash flow from operations in the nine months ended September 30, 2009, included $59.7 million of fuel over-recoveries of which $31.9 million offset previous under-collections of fuel costs. In addition prior to their termination in May 2009, we collected $16.3 million of deferred fuel under-recoveries, including $1.3 million in interest, through two fuel surcharges implemented in 2008. At September 30, 2009, we had a net fuel over-recovery balance of $27.8 million, including a $23.1 million over-recovery in Texas, a $4.5 million over-recovery in New Mexico, and a $0.2 million over-recovery from our FERC customer. On October 22, 2009, we received approval from the Public Utility Commission of Texas to refund fuel over-recoveries through August 2009 of $16.8 million with interest to customers in November and December 2009. Over-recoveries in New Mexico and from our FERC customer will be refunded through fuel adjustment clauses during 2009.
During the nine months ended September 30, 2009, our primary capital requirements were for the construction and purchase of electric utility plant and purchases of nuclear fuel. Capital requirements for new electric plant were $145.5 million for the nine months ended September 30, 2009 compared to $141.9 million for the nine months ended September 30, 2008. Cash flows from operations funded all of our capital requirements through the first nine months of 2009.
We finance our nuclear fuel inventory through a trust that borrows under our $200 million credit facility to acquire and process nuclear fuel. Borrowings under the credit facility for nuclear fuel were $113.0 million as of September 30, 2009 and $92.2 million as of September 30, 2008. Up to $120 million of the credit facility may be used to finance nuclear fuel. Amounts not drawn for nuclear fuel are available for general corporate purposes. No borrowings were outstanding at September 30, 2009 for general corporate purposes.
We believe that we will have adequate liquidity through our current cash balances, cash from operations, and our credit facility to meet all of our anticipated cash requirements through 2009 based on current projections. We anticipate the need for additional external funds to finance capital requirements in the second half of 2010. We could seek to issue additional long-term debt or obtain funds through our existing or an additional credit facility to finance capital requirements. In September 2009, we received approval from the FERC to enter into an additional credit facility within the next two years to supply additional liquidity.
During the third quarter of 2009, EE repurchased 751,235 shares of common stock in the open market at an aggregate cost of $12.9 million. No shares of common stock were repurchased during the first or second quarters of 2009. As of September 30, 2009, approximately 770,131 shares remain available for repurchase under the currently authorized program.
2009 Earnings Guidance
We are revising our 2009 earnings guidance to a range of $1.35 to $1.55 per basic share from a range of $1.00 to $1.50 per basic share.
Conference Call
A conference call to discuss third quarter 2009 earnings is scheduled for 10:30 a.m. Eastern Time, October 29, 2009. The dial-in number is 866-793-1307 with a conference ID of 1404122. The conference leader will be Steven P. Busser, Vice President -Treasurer and Chief Risk Officer of EE. A replay will run through November 12, 2009 with a dial-in number of 866-837-8032 and a conference ID of 949181. 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) 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; (ii) fluctuations in off-system sales margins due to uncertainty in the economy power market and the availability of generating units; (iii) our rates in Texas following the five-year moratorium on rate increases which ends June 30, 2010; (iv) uncertainties and instability in the general economy and the resulting impact of 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 of 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 September 30, 2009 and 2008
(In thousands except for per share data)
(Unaudited)
2009 2008 Variance
Operating revenues, net of energy
expenses:
Base revenues $ 146,828 $ 135,599 $ 11,229 (a)
Off-system sales margins, net of sharing 2,278 5,355 (3,077 )
Deregulated Palo Verde Unit 3 proxy 3,156 5,959 (2,803 )
market pricing
Other 6,807 6,395 412
Operating Revenues Net of Energy 159,069 153,308 5,761
Expenses
Other Operating Expenses:
Other operations and maintenance 45,474 40,969 4,505
Palo Verde operations and maintenance 21,710 20,535 1,175
Taxes other than income taxes 13,595 13,219 376
Other income (deductions) 876 (669 ) 1,545
Earnings Before Interest, Taxes, 79,166 77,916 1,250 (b)
Depreciation and Amortization
Depreciation and amortization 19,196 18,832 364
Interest on long-term debt 12,194 12,581 (387 )
AFUDC and capitalized interest 3,791 4,167 (376 )
Other interest expense 67 (592 ) 659
Income Before Income Taxes 51,500 51,262 238
Income tax expense 17,568 18,188 (620 )
Net Income $ 33,932 $ 33,074 $ 858
Basic Earnings per Share $ 0.76 $ 0.74 $ 0.02
Diluted Earnings per Share $ 0.76 $ 0.74 $ 0.02
Weighted average number of shares 44,588 44,726 (138 )
outstanding
Weighted average number of shares and 44,637 44,869 (232 )
dilutive potential shares outstanding
(a) Base revenues exclude fuel recovered through New Mexico base rates of $21.2
million and $20.3 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
Consolidated Statements of Operations
Nine Months Ended September 30, 2009 and 2008
(In thousands except for per share data)
(Unaudited)
2009 2008 Variance
Operating revenues, net of energy
expenses:
Base revenues $ 373,212 $ 363,041 $ 10,171 (a)
Off-system sales margins, net of 8,178 18,262 (10,084 )
sharing
Deregulated Palo Verde Unit 3 proxy 10,149 16,775 (6,626 )
market pricing
Other 17,746 15,564 2,182
Operating Revenues Net of Energy 409,285 413,642 (4,357 )
Expenses
Other Operating Expenses:
Other operations and maintenance 126,256 125,719 537
Palo Verde operations and 70,641 70,594 47
maintenance
Taxes other than income taxes 38,623 37,318 1,305
Other income (deductions) (2,040 ) (509 ) (1,531 )
Earnings Before Interest, Taxes, 171,725 179,502 (7,777 ) (b)
Depreciation and Amortization
Depreciation and amortization 55,581 56,223 (642 )
Interest on long-term debt 38,314 33,263 5,051
AFUDC and capitalized interest 12,872 11,703 1,169
Other interest expense 319 (35 ) 354
Income Before Income Taxes 90,383 101,754 (11,371 )
Income tax expense 31,411 34,958 (3,547 )
Net Income $ 58,972 $ 66,796 $ (7,824 )
Basic Earnings per Share $ 1.31 $ 1.49 $ (0.18 )
Diluted Earnings per Share $ 1.31 $ 1.48 $ (0.17 )
Weighted average number of shares 44,709 44,791 (82 )
outstanding
Weighted average number of shares
and dilutive potential shares 44,739 44,965 (226 )
outstanding
(a) Base revenues exclude fuel recovered through New Mexico base rates of $53.0
million and $53.0 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
Nine Months Ended September 30, 2009 and 2008
(In thousands and Unaudited)
2009 2008
Cash flows from operating activities:
Net income $ 58,972 $ 66,796
Adjustments to reconcile net income to net cash
provided by operations:
Depreciation and amortization of electric plant in 55,581 56,223
service
Deferred income taxes, net (2,257 ) 12,792
Other 22,348 24,330
Change in working capital items:
Net recovery (deferral) of fuel revenues 74,656 (46,704 )
Other 4,212 901
Net cash provided by operating activities 213,512 114,338
Cash flows from investing activities:
Cash additions to utility property, plant and (145,465 ) (141,880 )
equipment
Cash additions to nuclear fuel (34,613 ) (19,473 )
Proceeds from sale of investment in debt securities - 16,000
Decommissioning trust funds (4,600 ) (7,967 )
Other (3,906 ) (8,396 )
Net cash used for investing activities (188,584 ) (161,716 )
Cash flows from financing activities:
Proceeds from exercise of stock options 236 1,004
Repurchase of common stock (12,854 ) (9,892 )
Financing obligations 19,365 9,233
Proceeds from issuance of long-term notes payable - 148,719
Other (1,782 ) (2,217 )
Net cash provided by financing activities 4,965 146,847
Net increase in cash and cash equivalents 29,893 99,469
Cash and cash equivalents at beginning of period 91,642 4,976
Cash and cash equivalents at end of period $ 121,535 $ 104,445
Cash interest payments $ 33,941 $ 25,424
El Paso Electric Company and Subsidiary
Quarter Ended September 30, 2009 and 2008
Sales and Revenues Statistics
Increase (Decrease)
2009 2008 Amount Percentage
MWh sales:
Retail:
Residential 779,282 686,247 93,035 13.6 %
Commercial and 667,321 655,669 11,652 1.8 %
industrial, small
Commercial and 278,158 295,298 (17,140 ) (5.8 %)
industrial, large
Sales to public 419,487 395,313 24,174 6.1 %
authorities
Total retail sales 2,144,248 2,032,527 111,721 5.5 %
Wholesale:
Sales for resale 18,215 14,981 3,234 21.6 %
Off-system sales 715,641 891,632 (175,991 ) (19.7 %)
Total wholesale sales 733,856 906,613 (172,757 ) (19.1 %)
Total MWh sales 2,878,104 2,939,140 (61,036 ) (2.1 %)
Operating revenues (in
thousands):
Non-fuel base revenues:
Retail:
Residential $ 64,833 $ 57,485 $ 7,348 12.8 %
Commercial and 50,017 48,714 1,303 2.7 %
industrial, small
Commercial and 9,358 9,648 (290 ) (3.0 %)
industrial, large
Sales to public 21,867 19,341 2,526 13.1 %
authorities
Total retail non-fuel 146,075 135,188 10,887 8.1 %
base revenues
Wholesale:
Sales for resale 753 411 342 83.2 %
Total non-fuel base 146,828 135,599 11,229 8.3 %
revenues
Fuel revenues:
Recovered from customers 59,373 58,791 582 1.0 %
during the period (a)
Under (over) collection (23,038 ) 15,784 (38,822 ) -
of fuel
New Mexico fuel in base 21,171 20,317 854 4.2 %
rates
Total fuel revenues 57,506 94,892 (37,386 ) (39.4 %)
Off-system sales 28,349 63,371 (35,022 ) (55.3 %)
Other 8,215 7,937 278 3.5 %
Total operating revenues $ 240,898 $ 301,799 $ (60,901 ) (20.2 %)
Off-system sales (in
thousands):
Gross margins $ 3,035 $ 7,139 $ (4,104 ) (57.5 %)
Retained margins 2,278 5,355 (3,077 ) (57.5 %)
Average number of retail
customers:
Residential 326,816 321,004 5,812 1.8 %
Commercial and 36,158 35,977 181 0.5 %
industrial, small
Commercial and 50 51 (1 ) (2.0 %)
industrial, large
Sales to public 4,938 4,902 36 0.7 %
authorities
Total 367,962 361,934 6,028 1.7 %
Number of retail
customers (end of
period):
Residential 327,178 321,519 5,659 1.8 %
Commercial and 36,319 35,961 358 1.0 %
industrial, small
Commercial and 48 51 (3 ) (5.9 %)
industrial, large
Sales to public 4,942 4,929 13 0.3 %
authorities
Total 368,487 362,460 6,027 1.7 %
Weather statistics: 10 Yr Average
Heating degree days 2 1 1
Cooling degree days 1,601 1,147 1,441
(a) Excludes $8.4 million in 2008 of prior periods deferred fuel revenues
recovered through Texas fuel surcharges.
El Paso Electric Company
Quarter Ended September 30, 2009 and 2008
Generation and Purchased Power Statistics
Increase (Decrease)
2009 2008 Amount Percentage
Generation and purchased power
(MWh):
Palo Verde 1,379,943 1,332,861 47,082 3.5 %
Four Corners 168,755 210,587 (41,832 ) (19.9 %)
Gas plants 782,861 835,924 (53,063 ) (6.3 %)
Total generation 2,331,559 2,379,372 (47,813 ) (2.0 %)
Purchased power 726,433 730,239 (3,806 ) (0.5 %)
Total available energy 3,057,992 3,109,611 (51,619 ) (1.7 %)
Line losses and Company use 179,888 170,471 9,417 5.5 %
Total 2,878,104 2,939,140 (61,036 ) (2.1 %)
Palo Verde capacity factor 100.6 % 96.8 % 3.8 %
Four Corners capacity factor 83.3 % 91.6 % (8.3 %)
El Paso Electric Company and Subsidiary
Nine Months Ended September 30, 2009 and 2008
Sales and Revenues Statistics
Increase (Decrease)
2009 2008 Amount Percentage
MWh sales:
Retail:
Residential 1,837,915 1,736,637 101,278 5.8 %
Commercial and 1,726,286 1,731,243 (4,957 ) (0.3 %)
industrial, small
Commercial and 756,333 874,392 (118,059 ) (13.5 %)
industrial, large
Sales to public 1,126,864 1,099,000 27,864 2.5 %
authorities
Total retail sales 5,447,398 5,441,272 6,126 0.1 %
Wholesale:
Sales for resale 47,173 40,734 6,439 15.8 %
Off-system sales 2,408,122 2,568,437 (160,315 ) (6.2 %)
Total wholesale sales 2,455,295 2,609,171 (153,876 ) (5.9 %)
Total MWh sales 7,902,693 8,050,443 (147,750 ) (1.8 %)
Operating revenues (in
thousands):
Base revenues:
Retail:
Residential $ 153,097 $ 144,457 $ 8,640 6.0 %
Commercial and 133,569 132,887 682 0.5 %
industrial, small
Commercial and 25,926 27,995 (2,069 ) (7.4 %)
industrial, large
Sales to public 58,985 56,396 2,589 4.6 %
authorities
Total retail base 371,577 361,735 9,842 2.7 %
revenues
Wholesale:
Sales for resale 1,635 1,306 329 25.2 %
Total base revenues 373,212 363,041 10,171 2.8 %
Fuel revenues:
Recovered from customers 157,281 144,420 12,861 8.9 %
during the period (a)
Under (over) collection (59,679 ) 58,556 (118,235 ) -
of fuel
New Mexico fuel in base 52,975 53,042 (67 ) (0.1 %)
revenues
Total fuel revenues 150,577 256,018 (105,441 ) (41.2 %)
Off-system sales 89,430 186,970 (97,540 ) (52.2 %)
Other 21,764 20,415 1,349 6.6 %
Total operating revenues $ 634,983 $ 826,444 $ (191,461 ) (23.2 %)
Off-system sales (in
thousands):
Gross margins $ 10,900 $ 24,314 $ (13,414 ) (55.2 %)
Retained margins 8,178 18,262 (10,084 ) (55.2 %)
Average number of retail
customers:
Residential 325,300 319,709 5,591 1.7 %
Commercial and 35,946 35,737 209 0.6 %
industrial, small
Commercial and 49 53 (4 ) (7.5 %)
industrial, large
Sales to public 4,935 4,876 59 1.2 %
authorities
Total 366,230 360,375 5,855 1.6 %
Number of retail
customers (end of
period):
Residential 327,178 321,519 5,659 1.8 %
Commercial and 36,319 35,961 358 1.0 %
industrial, small
Commercial and 48 51 (3 ) (5.9 %)
industrial, large
Sales to public 4,942 4,929 13 0.3 %
authorities
Total 368,487 362,460 6,027 1.7 %
Weather statistics 10 Yr Average
Heating degree days 1,114 1,275 1,266
Cooling degree days 2,651 2,160 2,453
(a) Excludes $16.3 million and $13.3 million, respectively, of prior periods
deferred fuel revenues recovered through Texas fuel surcharges.
El Paso Electric Company and Subsidiary
Nine Months Ended September 30, 2009 and 2008
Generation and Purchased Power Statistics
Increase (Decrease)
2009 2008 Amount Percentage
Generation and purchased power
(MWh):
Palo Verde 3,826,096 3,598,148 227,948 6.3 %
Four Corners 554,711 495,099 59,612 12.0 %
Gas plants 1,796,812 2,126,202 (329,390 ) (15.5 %)
Total generation 6,177,619 6,219,449 (41,830 ) (0.7 %)
Purchased power 2,168,446 2,300,865 (132,419 ) (5.8 %)
Total available energy 8,346,065 8,520,314 (174,249 ) (2.0 %)
Line losses and Company use 443,372 469,871 (26,499 ) (5.6 %)
Total 7,902,693 8,050,443 (147,750 ) (1.8 %)
Palo Verde capacity factor 94.0 % 87.8 % 6.2 %
Four Corners capacity factor 85.7 % 71.9 % 13.8 %
El Paso Electric Company and Subsidiary Financial Statistics At September 30, 2009 and 2008 (In thousands, except number of shares, book value per share, and ratios) Balance Sheet 2009 2008 Cash and temporary investments $ 121,535 $ 104,445 Common stock equity $ 754,921 $ 712,086 Long-term debt, net of current portion 739,686 739,641 Financing obligations, net of current portion 75,175 70,918 Total capitalization $ 1,569,782 $ 1,522,645 Current portion of long-term debt and financing $ 37,842 $ 21,330 obligations Number of shares - end of period 44,236,250 44,826,941 Book value per common share $ 17.07 $ 15.89 Common equity ratio 47.0 % 46.1 % Debt ratio 53.0 % 53.9 %
Source: El Paso Electric
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