Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
N/A | N/A | N/A |
Large accelerated filer | Accelerated filer | Non-accelerated filer | Smaller reporting company | Emerging growth company | ||||||||||
☐ | ☑ | ☐ | ☐ |
Item No. | Page No. | |||||||
DEFINED TERMS | ||||||||
FORWARD-LOOKING STATEMENTS | ||||||||
PART I - FINANCIAL INFORMATION | ||||||||
1. | Financial Statements | |||||||
Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended | ||||||||
June 30, 2020 and 2019 | ||||||||
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six | ||||||||
Months Ended June 30, 2020 and 2019 | ||||||||
Unaudited Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 | ||||||||
Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended | ||||||||
June 30, 2020 and 2019 | ||||||||
Unaudited Condensed Consolidated Statements of Common Shareholders' Equity (Deficit) and | ||||||||
Noncontrolling Interest for the Three and Six Months Ended June 30, 2020 and 2019 | ||||||||
Notes to Unaudited Condensed Consolidated Financial Statements | ||||||||
Note 1 - Overview and Summary of Significant Accounting Policies | ||||||||
Note 2 - Regulatory Matters | ||||||||
Note 3 - Fair Value | ||||||||
Note 4 - Derivative Instruments and Hedging Activities | ||||||||
Note 5 - Debt | ||||||||
Note 6 - Income Taxes | ||||||||
Note 7 - Benefit Plans | ||||||||
Note 8 - Commitments and Contingencies | ||||||||
Note 9 - Business Segment Information | ||||||||
Note 10 - Revenue | ||||||||
Note 11 - Leases | ||||||||
Note 12 - Risks and Uncertainties | ||||||||
2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||
3. | Quantitative and Qualitative Disclosure About Market Risk | |||||||
4. | Controls and Procedures | |||||||
PART II - OTHER INFORMATION | ||||||||
1. | Legal Proceedings | |||||||
1A. | Risk Factors | |||||||
2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||
3. | Defaults Upon Senior Securities | |||||||
4. | Mine Safety Disclosures | |||||||
5. | Other Information | |||||||
6. | Exhibits | |||||||
SIGNATURES |
Item No. | Page No. | |
DEFINED TERMS | ||
FORWARD-LOOKING STATEMENTS | ||
PART I - FINANCIAL INFORMATION | ||
1. | Financial Statements | |
Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months Ended | ||
September 30, 2019 and 2018 | ||
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine | ||
Months Ended September 30, 2019 and 2018 | ||
Unaudited Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 | ||
Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended | ||
September 30, 2019 and 2018 | ||
Unaudited Condensed Consolidated Statements of Common Shareholders' Equity (Deficit) and | ||
Noncontrolling Interest for the Nine Months Ended September 30, 2019 and 2018 | ||
Notes to Unaudited Condensed Consolidated Financial Statements | ||
Note 1 - Overview and Summary of Significant Accounting Policies | ||
Note 2 - Fair Value | ||
Note 3 - Derivative Instruments and Hedging Activities | ||
Note 4 - Debt | ||
Note 5 - Income Taxes | ||
Note 6 - Benefit Plans | ||
Note 7 - Commitments and Contingencies | ||
Note 8 - Business Segment Information | ||
Note 9 - Revenue | ||
Note 10 - Leases | ||
2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
3. | Quantitative and Qualitative Disclosure About Market Risk | |
4. | Controls and Procedures | |
PART II - OTHER INFORMATION | ||
1. | Legal Proceedings | |
1A. | Risk Factors | |
2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
3. | Defaults Upon Senior Securities | |
4. | Mine Safety Disclosures | |
5. | Other Information | |
6. | Exhibits | |
SIGNATURES |
DEFINED TERMS | ||||||||
The following is a list of frequently used abbreviations or acronyms that are found in this Form 10-Q: | ||||||||
2018 Base Rate Order | The order issued in October 2018 by the IURC authorizing IPL to, among other things, increase its basic rates and charges by $43.9 million annually | |||||||
IPALCO’s Annual Report on Form 10-K for the year ended December 31, | ||||||||
2020 IPALCO Notes | $405 million of 3.45% Senior Secured Notes due July 15, 2020 | |||||||
2024 IPALCO Notes | $405 million of 3.70% Senior Secured Notes due September 1, 2024 | |||||||
$475 million of 4.25% Senior Secured Notes due May 1, 2030 | ||||||||
AES | The AES Corporation | |||||||
AES U.S. Investments | AES U.S. Investments, Inc. | |||||||
AOCI | Accumulated Other Comprehensive Income | |||||||
ASC | Accounting Standards Codification | |||||||
ASU | Accounting Standards Update | |||||||
CAA | U.S. Clean Air Act | |||||||
CCGT | Combined Cycle Gas Turbine | |||||||
CCR | Coal Combustion Residuals | |||||||
CDPQ | CDP | |||||||
CO2 | Carbon Dioxide | |||||||
COVID-19 | The disease caused by the novel coronavirus that caused a global pandemic in the first quarter of 2020. | |||||||
CPP | Clean Power Plan | |||||||
Credit Agreement | $250 million IPL Revolving Credit Facilities Amended and Restated Credit Agreement, dated as of June 19, 2019 | |||||||
Cross-State Air Pollution Rule | ||||||||
Cumulative Deficiencies | Cumulative Net Operating Income Deficiencies. The Cumulative Deficiencies calculation provides that only five years' worth of historical earnings deficiencies or surpluses are included, unless it has been greater than five years since the most recent rate case. | |||||||
CWA | U.S. Clean Water Act | |||||||
EPA | U.S. Environmental Protection Agency | |||||||
FAC | Fuel Adjustment Clause | |||||||
FERC | Federal Energy Regulatory Commission | |||||||
Financial Statements | Unaudited Condensed Consolidated Financial Statements of IPALCO in “Item 1. Financial Statements” included in Part I – Financial Information of this Form 10-Q | |||||||
FTRs | Financial Transmission Rights | |||||||
GAAP | Generally Accepted Accounting Principles in the United States | |||||||
GHG | Greenhouse Gas | |||||||
IPALCO | IPALCO Enterprises, Inc. | |||||||
IPL | Indianapolis Power & Light Company | |||||||
Integrated Resource Plan | ||||||||
IURC | Indiana Utility Regulatory Commission | |||||||
kWh | Kilowatt hours | |||||||
LIBOR | London Interbank Offered Rate | |||||||
MISO | Midcontinent Independent System Operator, Inc. | |||||||
MW | Megawatts | |||||||
MWh | Megawatt hours | |||||||
NAAQS | National Ambient Air Quality Standards | |||||||
NOV | Notice of Violation | |||||||
NOx | Nitrogen Oxide | |||||||
Pension Plans | Employees’ Retirement Plan of Indianapolis Power & Light Company and Supplemental Retirement Plan of Indianapolis Power & Light Company |
PSD | Prevention of Significant Deterioration | ||||
SEC | United States Securities and Exchange Commission | ||||
SIP | State Implementation Plan | ||||
SO2 | Sulfur Dioxide | ||||
T&D | Transmission & Distribution | ||||
Term Loan | $65 million IPALCO Term Loan Facility Credit Agreement, dated as of October 31, 2018 |
TDSIC | ||||||||
Transmission, Distribution, and Storage System Improvement Charge | ||||||||
U.S. | United States of America | |||||||
USD | United States Dollars | |||||||
VEBA | Voluntary Employees' Beneficiary Association | |||||||
IPALCO ENTERPRISES, INC. and SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
REVENUES | $ | 311,503 | $ | 340,869 | $ | 668,885 | $ | 723,178 | ||||||||||||||||||||||||
OPERATING COSTS AND EXPENSES: | ||||||||||||||||||||||||||||||||
Fuel | 43,351 | 72,217 | 112,139 | 161,016 | ||||||||||||||||||||||||||||
Power purchased | 43,082 | 36,719 | 78,549 | 69,643 | ||||||||||||||||||||||||||||
Operation and maintenance | 94,659 | 113,661 | 200,248 | 215,807 | ||||||||||||||||||||||||||||
Depreciation and amortization | 61,099 | 59,897 | 121,807 | 119,566 | ||||||||||||||||||||||||||||
Taxes other than income taxes | 11,606 | 6,983 | 23,664 | 20,966 | ||||||||||||||||||||||||||||
Total operating costs and expenses | 253,797 | 289,477 | 536,407 | 586,998 | ||||||||||||||||||||||||||||
OPERATING INCOME | 57,706 | 51,392 | 132,478 | 136,180 | ||||||||||||||||||||||||||||
OTHER INCOME / (EXPENSE), NET: | ||||||||||||||||||||||||||||||||
Allowance for equity funds used during construction | 1,160 | 817 | 2,017 | 1,728 | ||||||||||||||||||||||||||||
Interest expense | (33,935) | (30,291) | (64,016) | (60,773) | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | (2,415) | — | (2,415) | — | ||||||||||||||||||||||||||||
Other income / (expense), net | 1,772 | (2,045) | 1,979 | (5,273) | ||||||||||||||||||||||||||||
Total other income / (expense), net | (33,418) | (31,519) | (62,435) | (64,318) | ||||||||||||||||||||||||||||
EARNINGS FROM OPERATIONS BEFORE INCOME TAX | 24,288 | 19,873 | 70,043 | 71,862 | ||||||||||||||||||||||||||||
Less: Income tax expense | 5,165 | 4,960 | 14,937 | 15,164 | ||||||||||||||||||||||||||||
NET INCOME | 19,123 | 14,913 | 55,106 | 56,698 | ||||||||||||||||||||||||||||
Less: Dividends on preferred stock | 804 | 804 | 1,607 | 1,607 | ||||||||||||||||||||||||||||
NET INCOME APPLICABLE TO COMMON STOCK | $ | 18,319 | $ | 14,109 | $ | 53,499 | $ | 55,091 | ||||||||||||||||||||||||
See notes to unaudited condensed consolidated financial statements. |
IPALCO ENTERPRISES, INC. and SUBSIDIARIES | |||||||||||||
Unaudited Condensed Consolidated Statements of Operations | |||||||||||||
(In Thousands) | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
REVENUES | $ | 398,456 | $ | 385,149 | $ | 1,121,634 | $ | 1,099,331 | |||||
OPERATING COSTS AND EXPENSES: | |||||||||||||
Fuel | 93,217 | 90,599 | 254,233 | 252,435 | |||||||||
Power purchased | 31,840 | 39,267 | 101,483 | 131,580 | |||||||||
Operation and maintenance | 105,975 | 109,644 | 321,782 | 315,225 | |||||||||
Depreciation and amortization | 60,373 | 57,880 | 179,939 | 172,492 | |||||||||
Taxes other than income taxes | 12,943 | 12,781 | 33,909 | 42,036 | |||||||||
Total operating costs and expenses | 304,348 | 310,171 | 891,346 | 913,768 | |||||||||
OPERATING INCOME | 94,108 | 74,978 | 230,288 | 185,563 | |||||||||
OTHER INCOME / (EXPENSE), NET: | |||||||||||||
Allowance for equity funds used during construction | 810 | 459 | 2,538 | 7,839 | |||||||||
Interest expense | (30,620 | ) | (22,917 | ) | (91,393 | ) | (70,465 | ) | |||||
Other income / (expense), net | (2,704 | ) | 124 | (7,977 | ) | (1,768 | ) | ||||||
Total other income / (expense), net | (32,514 | ) | (22,334 | ) | (96,832 | ) | (64,394 | ) | |||||
EARNINGS FROM OPERATIONS BEFORE INCOME TAX | 61,594 | 52,644 | 133,456 | 121,169 | |||||||||
Less: Income tax expense - net | 13,088 | 10,572 | 28,252 | 23,548 | |||||||||
NET INCOME | 48,506 | 42,072 | 105,204 | 97,621 | |||||||||
Less: Dividends on preferred stock | 803 | 803 | 2,410 | 2,410 | |||||||||
NET INCOME APPLICABLE TO COMMON STOCK | $ | 47,703 | $ | 41,269 | $ | 102,794 | $ | 95,211 | |||||
See notes to unaudited condensed consolidated financial statements. |
IPALCO ENTERPRISES, INC. and SUBSIDIARIES | IPALCO ENTERPRISES, INC. and SUBSIDIARIES | IPALCO ENTERPRISES, INC. and SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||
Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss) | Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss) | Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss) | |||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | (In Thousands) | (In Thousands) | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | June 30, | June 30, | ||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||
Net income applicable to common stock | $ | 47,703 | $ | 41,269 | $ | 102,794 | $ | 95,211 | Net income applicable to common stock | $ | 18,319 | $ | 14,109 | $ | 53,499 | $ | 55,091 | ||||||||||||||||||||||||||||
Derivative activity: | Derivative activity: | ||||||||||||||||||||||||||||||||||||||||||||
Change in derivative fair value, net of income tax benefit of $4,322, $0, $10,188 and $0, for each respective period | (12,534 | ) | — | (29,722 | ) | — | |||||||||||||||||||||||||||||||||||||||
Change in derivative fair value, net of income tax benefit of $1,388, $3,976, $13,910 and $5,866, for each respective period | Change in derivative fair value, net of income tax benefit of $1,388, $3,976, $13,910 and $5,866, for each respective period | (4,026) | (11,649) | (40,339) | (17,188) | ||||||||||||||||||||||||||||||||||||||||
Reclassification to earnings, net of income tax benefit of $463, $0, $463 and $0, for each respective period | Reclassification to earnings, net of income tax benefit of $463, $0, $463 and $0, for each respective period | 1,344 | — | 1,344 | — | ||||||||||||||||||||||||||||||||||||||||
Net change in fair value of derivatives | (12,534 | ) | — | (29,722 | ) | — | Net change in fair value of derivatives | (2,682) | (11,649) | (38,995) | (17,188) | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | (12,534 | ) | — | (29,722 | ) | — | Other comprehensive loss | (2,682) | (11,649) | (38,995) | (17,188) | ||||||||||||||||||||||||||||||||||
Net comprehensive income | $ | 35,169 | $ | 41,269 | $ | 73,072 | $ | 95,211 | Net comprehensive income | $ | 15,637 | $ | 2,460 | $ | 14,504 | $ | 37,903 | ||||||||||||||||||||||||||||
IPALCO ENTERPRISES, INC. and SUBSIDIARIES | ||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||
(In Thousands) | ||||||
September 30, | December 31, | |||||
2019 | 2018 | |||||
ASSETS | ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | $ | 48,413 | $ | 33,199 | ||
Restricted cash | 400 | 400 | ||||
Accounts receivable, net | 172,676 | 167,559 | ||||
Inventories | 91,980 | 99,668 | ||||
Regulatory assets, current | 32,027 | 28,399 | ||||
Taxes receivable | 24,480 | 13,773 | ||||
Prepayments and other current assets | 18,721 | 15,573 | ||||
Total current assets | 388,697 | 358,571 | ||||
NON-CURRENT ASSETS: | ||||||
Property, plant and equipment | 6,387,269 | 6,201,078 | ||||
Less: Accumulated depreciation | 2,369,515 | 2,256,215 | ||||
4,017,754 | 3,944,863 | |||||
Construction work in progress | 102,823 | 111,723 | ||||
Total net property, plant and equipment | 4,120,577 | 4,056,586 | ||||
OTHER NON-CURRENT ASSETS: | ||||||
Intangible assets - net | 71,325 | 40,848 | ||||
Regulatory assets, non-current | 372,433 | 395,077 | ||||
Other non-current assets | 15,276 | 10,971 | ||||
Total other non-current assets | 459,034 | 446,896 | ||||
TOTAL ASSETS | $ | 4,968,308 | $ | 4,862,053 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
CURRENT LIABILITIES: | ||||||
Short-term debt and current portion of long-term debt (Note 4) | $ | 469,017 | $ | — | ||
Accounts payable | 121,559 | 134,931 | ||||
Accrued taxes | 28,848 | 21,325 | ||||
Accrued interest | 37,755 | 34,790 | ||||
Customer deposits | 33,727 | 32,700 | ||||
Regulatory liabilities, current | 54,827 | 51,024 | ||||
Accrued and other current liabilities | 63,378 | 27,787 | ||||
Total current liabilities | 809,111 | 302,557 | ||||
NON-CURRENT LIABILITIES: | ||||||
Long-term debt (Note 4) | 2,181,948 | 2,649,064 | ||||
Deferred income tax liabilities | 265,017 | 253,085 | ||||
Taxes payable | 4,658 | 4,658 | ||||
Regulatory liabilities, non-current | 864,442 | 870,255 | ||||
Accrued pension and other postretirement benefits | 23,411 | 19,329 | ||||
Asset retirement obligations | 207,912 | 129,451 | ||||
Other non-current liabilities | 239 | 604 | ||||
Total non-current liabilities | 3,547,627 | 3,926,446 | ||||
Total liabilities | 4,356,738 | 4,229,003 | ||||
COMMITMENTS AND CONTINGENCIES (Note 7) | ||||||
SHAREHOLDERS' EQUITY: | ||||||
Paid in capital | 597,971 | 597,824 | ||||
Accumulated other comprehensive loss | (29,722 | ) | — | |||
Accumulated deficit | (16,463 | ) | (24,558 | ) | ||
Total common shareholders' equity | 551,786 | 573,266 | ||||
Preferred stock of subsidiary | 59,784 | 59,784 | ||||
Total shareholders' equity | 611,570 | 633,050 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 4,968,308 | $ | 4,862,053 | ||
See notes to unaudited condensed consolidated financial statements. |
IPALCO ENTERPRISES, INC. and SUBSIDIARIES | ||||||||||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||||||||||
(In Thousands) | ||||||||||||||
June 30, | December 31, | |||||||||||||
2020 | 2019 | |||||||||||||
ASSETS | ||||||||||||||
CURRENT ASSETS: | ||||||||||||||
Cash and cash equivalents | $ | 33,491 | $ | 48,152 | ||||||||||
Restricted cash | 19,760 | 400 | ||||||||||||
Accounts receivable, net of allowance for credit losses of $4,053 and $921, respectively | 163,679 | 161,090 | ||||||||||||
Inventories | 102,041 | 83,569 | ||||||||||||
Regulatory assets, current | 48,842 | 37,398 | ||||||||||||
Taxes receivable | 21,046 | 23,670 | ||||||||||||
Prepayments and other current assets | 20,433 | 17,264 | ||||||||||||
Total current assets | 409,292 | 371,543 | ||||||||||||
NON-CURRENT ASSETS: | ||||||||||||||
Property, plant and equipment | 6,460,208 | 6,398,612 | ||||||||||||
Less: Accumulated depreciation | 2,490,642 | 2,414,652 | ||||||||||||
3,969,566 | 3,983,960 | |||||||||||||
Construction work in progress | 146,248 | 130,609 | ||||||||||||
Total net property, plant and equipment | 4,115,814 | 4,114,569 | ||||||||||||
OTHER NON-CURRENT ASSETS: | ||||||||||||||
Intangible assets - net | 60,756 | 64,861 | ||||||||||||
Regulatory assets, non-current | 347,599 | 355,614 | ||||||||||||
Other non-current assets | 19,896 | 22,082 | ||||||||||||
Total other non-current assets | 428,251 | 442,557 | ||||||||||||
TOTAL ASSETS | $ | 4,953,357 | $ | 4,928,669 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||
Short-term debt and current portion of long-term debt (Note 5) | $ | 119,943 | $ | 559,199 | ||||||||||
Accounts payable | 112,272 | 128,521 | ||||||||||||
Accrued taxes | 38,960 | 22,012 | ||||||||||||
Accrued interest | 33,383 | 35,334 | ||||||||||||
Customer deposits | 33,976 | 34,635 | ||||||||||||
Regulatory liabilities, current | 59,001 | 52,654 | ||||||||||||
Derivative liabilities, current | — | 26,560 | ||||||||||||
Accrued and other current liabilities | 18,904 | 23,300 | ||||||||||||
Total current liabilities | 416,439 | 882,215 | ||||||||||||
NON-CURRENT LIABILITIES: | ||||||||||||||
Long-term debt (Note 5) | 2,561,497 | 2,092,430 | ||||||||||||
Deferred income tax liabilities | 264,989 | 272,861 | ||||||||||||
Taxes payable | 6,229 | 4,658 | ||||||||||||
Regulatory liabilities, non-current | 838,187 | 846,430 | ||||||||||||
Accrued pension and other postretirement benefits | 15,892 | 19,344 | ||||||||||||
Asset retirement obligations | 201,494 | 204,219 | ||||||||||||
Derivative liabilities, non-current | 80,809 | — | ||||||||||||
Other non-current liabilities | 198 | 252 | ||||||||||||
Total non-current liabilities | 3,969,295 | 3,440,194 | ||||||||||||
Total liabilities | 4,385,734 | 4,322,409 | ||||||||||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||||||||||
SHAREHOLDERS' EQUITY: | ||||||||||||||
Paid in capital | 590,870 | 590,784 | ||||||||||||
Accumulated other comprehensive loss | (58,745) | (19,750) | ||||||||||||
Accumulated deficit | (24,286) | (24,558) | ||||||||||||
Total common shareholders' equity | 507,839 | 546,476 | ||||||||||||
Preferred stock of subsidiary | 59,784 | 59,784 | ||||||||||||
Total shareholders' equity | 567,623 | 606,260 | ||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 4,953,357 | $ | 4,928,669 | ||||||||||
See notes to unaudited condensed consolidated financial statements. |
IPALCO ENTERPRISES, INC. and SUBSIDIARIES | ||||||
Unaudited Condensed Consolidated Statements of Cash Flows | ||||||
(In Thousands) | ||||||
Nine Months Ended | ||||||
September 30, | ||||||
2019 | 2018 | |||||
CASH FLOWS FROM OPERATIONS: | ||||||
Net income | $ | 105,204 | $ | 97,621 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 179,939 | 172,492 | ||||
Amortization of deferred financing costs and debt premium | 3,081 | 2,948 | ||||
Deferred income taxes and investment tax credit adjustments - net | 15,109 | (16,852 | ) | |||
Allowance for equity funds used during construction | (2,538 | ) | (7,839 | ) | ||
Change in certain assets and liabilities: | ||||||
Accounts receivable | (5,117 | ) | (7,361 | ) | ||
Inventories | 7,688 | 2,088 | ||||
Accounts payable | (46,063 | ) | (1,620 | ) | ||
Accrued and other current liabilities | 3,560 | (5,812 | ) | |||
Accrued taxes payable/receivable | (9,670 | ) | 32,787 | |||
Accrued interest | 2,965 | 1,037 | ||||
Pension and other postretirement benefit expenses | 4,082 | (34,469 | ) | |||
Short-term and long-term regulatory assets and liabilities | 2,213 | 82,306 | ||||
Prepayments and other current assets | (3,576 | ) | (10,679 | ) | ||
Other - net | 2,895 | 1,059 | ||||
Net cash provided by operating activities | 259,772 | 307,706 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Capital expenditures | (126,066 | ) | (161,830 | ) | ||
Project development costs | (1,268 | ) | (761 | ) | ||
Cost of removal and regulatory recoverable ARO payments | (14,067 | ) | (20,845 | ) | ||
Other | 278 | 1,053 | ||||
Net cash used in investing activities | (141,123 | ) | (182,383 | ) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Short-term debt borrowings | 10,000 | 100,000 | ||||
Short-term debt repayments | (10,000 | ) | (144,000 | ) | ||
Dividends on common stock | (94,699 | ) | (85,189 | ) | ||
Preferred dividends of subsidiary | (2,410 | ) | (2,410 | ) | ||
Payments for financed capital expenditures | (5,616 | ) | (8,469 | ) | ||
Other | (710 | ) | (191 | ) | ||
Net cash used in financing activities | (103,435 | ) | (140,259 | ) | ||
Net change in cash, cash equivalents and restricted cash | 15,214 | (14,936 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 33,599 | 30,681 | ||||
Cash, cash equivalents and restricted cash at end of period | $ | 48,813 | $ | 15,745 | ||
Supplemental disclosures of cash flow information: | ||||||
Cash paid during the period for: | ||||||
Interest (net of amount capitalized) | $ | 85,602 | $ | 66,177 | ||
Income taxes | 23,600 | 15,800 | ||||
Non-cash investing activities: | ||||||
Change in accruals for capital expenditures | $ | 13,115 | $ | 41,109 | ||
See notes to unaudited condensed consolidated financial statements. |
IPALCO ENTERPRISES, INC. and SUBSIDIARIES | ||||||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||||||||
(In Thousands) | ||||||||||||||
Six Months Ended | ||||||||||||||
June 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||
Net income | $ | 55,106 | $ | 56,698 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 121,807 | 119,566 | ||||||||||||
Amortization of deferred financing costs and debt premium | 2,087 | 2,053 | ||||||||||||
Deferred income taxes and investment tax credit adjustments - net | 860 | 16,350 | ||||||||||||
Allowance for equity funds used during construction | (2,017) | (1,728) | ||||||||||||
Loss on early extinguishment of debt | 2,415 | — | ||||||||||||
Change in certain assets and liabilities: | ||||||||||||||
Accounts receivable | (2,589) | 3,638 | ||||||||||||
Inventories | (23,346) | 3,416 | ||||||||||||
Accounts payable | (16,396) | (23,261) | ||||||||||||
Accrued and other current liabilities | (3,996) | 778 | ||||||||||||
Accrued taxes payable/receivable | 21,144 | (24,751) | ||||||||||||
Accrued interest | (1,951) | 347 | ||||||||||||
Pension and other postretirement benefit expenses | (3,452) | 2,721 | ||||||||||||
Short-term and long-term regulatory assets and liabilities | (799) | 5,707 | ||||||||||||
Prepayments and other current assets | (3,169) | (6,758) | ||||||||||||
Other - net | 619 | (3,898) | ||||||||||||
Net cash provided by operating activities | 146,323 | 150,878 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||
Capital expenditures | (92,848) | (107,610) | ||||||||||||
Project development costs | (1,206) | (955) | ||||||||||||
Cost of removal and regulatory recoverable ARO payments | (19,488) | (6,625) | ||||||||||||
Other | 101 | 278 | ||||||||||||
Net cash used in investing activities | (113,441) | (114,912) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||
Short-term debt borrowings | 30,000 | 10,000 | ||||||||||||
Long-term borrowings, net of discount | 474,568 | — | ||||||||||||
Retirement of long-term debt, including early payment premium | (472,135) | — | ||||||||||||
Distributions to shareholders | (53,227) | (59,935) | ||||||||||||
Preferred dividends of subsidiary | (1,607) | (1,607) | ||||||||||||
Deferred financing costs paid | (5,664) | — | ||||||||||||
Payments for financed capital expenditures | — | (5,508) | ||||||||||||
Other | (118) | (710) | ||||||||||||
Net cash used in financing activities | (28,183) | (57,760) | ||||||||||||
Net change in cash, cash equivalents and restricted cash | 4,699 | (21,794) | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 48,552 | 33,599 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 53,251 | $ | 11,805 | ||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||
Cash paid during the period for: | ||||||||||||||
Interest (net of amount capitalized) | $ | 62,167 | $ | 58,542 | ||||||||||
Income taxes | 12,000 | 21,700 | ||||||||||||
Non-cash investing activities: | ||||||||||||||
Accruals for capital expenditures | $ | 35,617 | $ | 60,618 | ||||||||||
See notes to unaudited condensed consolidated financial statements. |
IPALCO ENTERPRISES, INC. and SUBSIDIARIES | IPALCO ENTERPRISES, INC. and SUBSIDIARIES | IPALCO ENTERPRISES, INC. and SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited Condensed Consolidated Statements of Common Shareholders' Equity (Deficit) | Unaudited Condensed Consolidated Statements of Common Shareholders' Equity (Deficit) | Unaudited Condensed Consolidated Statements of Common Shareholders' Equity (Deficit) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
and Noncontrolling Interest | and Noncontrolling Interest | and Noncontrolling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2019 and 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three and Six Months Ended June 30, 2020 and 2019 | For the Three and Six Months Ended June 30, 2020 and 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | (In Thousands) | (In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paid in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Common Shareholders' Equity | Cumulative Preferred Stock of Subsidiary | Paid in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Common Shareholders' Equity | Cumulative Preferred Stock of Subsidiary | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance | $ | 597,467 | $ | — | $ | (25,191 | ) | $ | 572,276 | $ | 59,784 | Beginning Balance | $ | 590,784 | $ | (19,750) | $ | (24,558) | $ | 546,476 | $ | 59,784 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | 31,500 | 31,500 | 803 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net comprehensive loss | Net comprehensive loss | — | (36,313) | 35,180 | (1,133) | 803 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | (803 | ) | Preferred stock dividends | — | — | — | — | (803) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to shareholders | — | — | (25,328 | ) | (25,328 | ) | — | Distributions to shareholders | — | — | (26,631) | (26,631) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 125 | — | — | 125 | — | Other | 49 | — | — | 49 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2018 | 597,592 | — | (19,019 | ) | 578,573 | 59,784 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | 22,442 | 22,442 | 804 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | Balance at March 31, 2020 | 590,833 | (56,063) | (16,009) | 518,761 | 59,784 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net comprehensive income | Net comprehensive income | — | (2,682) | 18,319 | 15,637 | 804 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | (804 | ) | Preferred stock dividends | — | — | — | — | (804) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to shareholders | — | — | (25,939 | ) | (25,939 | ) | — | Distributions to shareholders | — | — | (26,596) | (26,596) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 79 | — | — | 79 | — | Other | 37 | — | — | 37 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | 597,671 | — | (22,516 | ) | 575,155 | 59,784 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | 41,269 | 41,269 | 803 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | (803 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to shareholders | — | — | (33,922 | ) | (33,922 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 65 | — | — | 65 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2018 | $ | 597,736 | $ | — | $ | (15,169 | ) | $ | 582,567 | $ | 59,784 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | Balance at June 30, 2020 | $ | 590,870 | $ | (58,745) | $ | (24,286) | $ | 507,839 | $ | 59,784 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance | $ | 597,824 | $ | — | $ | (24,558 | ) | $ | 573,266 | $ | 59,784 | Beginning Balance | $ | 597,824 | $ | — | $ | (24,558) | $ | 573,266 | $ | 59,784 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net comprehensive income | — | (5,539 | ) | 40,982 | 35,443 | 803 | Net comprehensive income | — | (5,539) | 40,982 | 35,443 | 803 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | (803 | ) | Preferred stock dividends | — | — | — | — | (803) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to shareholders | — | — | (31,590 | ) | (31,590 | ) | — | Distributions to shareholders | — | — | (31,590) | (31,590) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 34 | — | 34 | — | Other | 34 | — | — | 34 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | 597,858 | (5,539 | ) | (15,166 | ) | 577,153 | 59,784 | Balance at March 31, 2019 | 597,858 | (5,539) | (15,166) | 577,153 | 59,784 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net comprehensive income | — | (11,649 | ) | 14,109 | 2,460 | 804 | Net comprehensive income | — | (11,649) | 14,109 | 2,460 | 804 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | (804 | ) | Preferred stock dividends | — | — | — | — | (804) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to shareholders | — | — | (28,345 | ) | (28,345 | ) | — | Distributions to shareholders | — | — | (28,345) | (28,345) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 59 | — | — | 59 | — | Other | 59 | — | — | 59 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 597,917 | (17,188 | ) | (29,402 | ) | 551,327 | 59,784 | Balance at June 30, 2019 | $ | 597,917 | $ | (17,188) | $ | (29,402) | $ | 551,327 | $ | 59,784 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net comprehensive income | — | (12,534 | ) | 47,703 | 35,169 | 803 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | (803 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to shareholders | — | — | (34,764 | ) | (34,764 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 54 | — | — | 54 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 597,971 | $ | (29,722 | ) | $ | (16,463 | ) | $ | 551,786 | $ | 59,784 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Cash, cash equivalents and restricted cash | ||||||||||||||||||||
Cash and cash equivalents | $ | 33,491 | $ | 48,152 | ||||||||||||||||
Restricted cash | 19,760 | 400 | ||||||||||||||||||
Total cash, cash equivalents and restricted cash | $ | 53,251 | $ | 48,552 | ||||||||||||||||
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
(In Thousands) | ||||||||
Cash, cash equivalents and restricted cash | ||||||||
Cash and cash equivalents | $ | 48,413 | $ | 33,199 | ||||
Restricted cash | 400 | 400 | ||||||
Total cash, cash equivalents and restricted cash | $ | 48,813 | $ | 33,599 | ||||
June 30, | December 31, | |||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Accounts receivable, net | ||||||||||||||||||||
Customer receivables | $ | 89,257 | $ | 90,747 | ||||||||||||||||
Unbilled revenue | 65,190 | 65,822 | ||||||||||||||||||
Amounts due from related parties | 5,657 | 2,717 | ||||||||||||||||||
Other | 7,628 | 2,725 | ||||||||||||||||||
Allowance for credit losses | (4,053) | (921) | ||||||||||||||||||
Total accounts receivable, net | $ | 163,679 | $ | 161,090 | ||||||||||||||||
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
(In Thousands) | ||||||||
Accounts receivable, net | ||||||||
Customer receivables | $ | 96,919 | $ | 91,426 | ||||
Unbilled revenue | 66,670 | 68,893 | ||||||
Amounts due from related parties | 4,949 | 5,720 | ||||||
Other | 7,165 | 4,341 | ||||||
Provision for uncollectible accounts | (3,027 | ) | (2,821 | ) | ||||
Total accounts receivable, net | $ | 172,676 | $ | 167,559 | ||||
Beginning Allowance Balance at January 1, 2020 | Current Period Provision | Write-offs Charged Against Allowances | Recoveries Collected | Ending Allowance Balance at June 30, 2020 | ||||||||||||||||||||||||||||
Allowance for credit losses | $ | 921 | $ | 4,312 | $ | (3,697) | $ | 2,517 | $ | 4,053 | ||||||||||||||||||||||
September 30, | December 31, | June 30, | December 31, | |||||||||||||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||||||
(In Thousands) | (In Thousands) | |||||||||||||||||||||||||||
Inventories | Inventories | |||||||||||||||||||||||||||
Fuel | $ | 29,981 | $ | 32,457 | Fuel | $ | 43,462 | $ | 26,907 | |||||||||||||||||||
Materials and supplies | 61,999 | 67,211 | Materials and supplies | 58,579 | 56,662 | |||||||||||||||||||||||
Total inventories | $ | 91,980 | $ | 99,668 | Total inventories | $ | 102,041 | $ | 83,569 | |||||||||||||||||||
Balance as of January 1, 2019 | $ | 129,451 | ||
Revisions to cash flow and timing estimates | 80,406 | |||
Liabilities settled | (8,373 | ) | ||
Accretion expense | 6,428 | |||
Balance as of September 30, 2019 | $ | 207,912 |
Details about Accumulated Other Comprehensive Loss components | Affected line item in the Condensed Consolidated Statements of Operations | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Gains and losses on cash flow hedges (Note 4): | Interest expense | $ | (1,807) | $ | — | $ | (1,807) | $ | — | |||||||||||||||||
Income tax expense | $ | 463 | $ | — | $ | 463 | $ | — | ||||||||||||||||||
Total reclassifications for the period, net of income taxes | $ | (1,344) | $ | — | $ | (1,344) | $ | — | ||||||||||||||||||
Gains and losses on cash flow hedges (Note 4): | Six Months Ended June 30, 2020 | |||||||
Balance at January 1 | $ | (19,750) | ||||||
Other comprehensive loss before reclassifications | $ | (40,339) | ||||||
Amounts reclassified from AOCI to earnings | $ | 1,344 | ||||||
Balance at June 30 | $ | (58,745) | ||||||
Gains and losses on cash flow hedges | ||||
(In Thousands) | ||||
Balance at January 1, 2019 | $ | — | ||
Other comprehensive loss | (29,722 | ) | ||
Balance at September 30, 2019 | $ | (29,722 | ) | |
New Accounting Standards Adopted | ||||||||||||||||||||
ASU Number and Name | Description | Date of Adoption | Effect on the Financial Statements upon adoption | |||||||||||||||||
See discussion of the | January 1, | See impact upon adoption of the standard below. |
New Accounting Standards Issued But Not Yet Effective | ||||||||||||||||||||
ASU Number and Name | Description | Date of Adoption | Effect on the Financial Statements upon adoption | |||||||||||||||||
time (March 12, 2020 - December 21, 2022). | The Company | |||||||||||||||||||
2019-12, Income Taxes (Topic 740): Simplifying the Accounting For Income Taxes | The standard removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. Transition Method: various | January 1, 2021. Early adoption is permitted. | The Company is currently evaluating the impact of adopting the standard on the Financial Statements. |
Assets and Liabilities at Fair Value | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Fair value at June 30, 2020 | Based on quoted market prices in active markets | Other observable inputs | Unobservable inputs | |||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
VEBA investments: | ||||||||||||||||||||||||||
Money market funds | $ | 16 | $ | 16 | $ | — | $ | — | ||||||||||||||||||
Mutual funds | 2,801 | — | 2,801 | — | ||||||||||||||||||||||
Total VEBA investments | 2,817 | 16 | 2,801 | — | ||||||||||||||||||||||
Financial transmission rights | 1,707 | — | — | 1,707 | ||||||||||||||||||||||
Total financial assets measured at fair value | $ | 4,524 | $ | 16 | $ | 2,801 | $ | 1,707 | ||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
Interest rate hedges | $ | 80,809 | $ | — | $ | 80,809 | $ | — | ||||||||||||||||||
Total financial liabilities measured at fair value | $ | 80,809 | $ | — | $ | 80,809 | $ | — |
Assets and Liabilities at Fair Value | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
Fair value at September 30, 2019 | Based on quoted market prices in active markets | Other observable inputs | Unobservable inputs | |||||||||
(In Thousands) | ||||||||||||
Financial assets: | ||||||||||||
VEBA investments: | ||||||||||||
Money market funds | $ | 20 | $ | 20 | $ | — | $ | — | ||||
Mutual funds | 2,752 | — | 2,752 | — | ||||||||
Total VEBA investments | 2,772 | 20 | 2,752 | — | ||||||||
Financial transmission rights | 1,668 | — | — | 1,668 | ||||||||
Total financial assets measured at fair value | $ | 4,440 | $ | 20 | $ | 2,752 | $ | 1,668 | ||||
Financial liabilities: | ||||||||||||
Interest rate hedges | $ | 39,909 | $ | — | $ | 39,909 | $ | — | ||||
Total financial liabilities measured at fair value | $ | 39,909 | $ | — | $ | 39,909 | $ | — |
Assets and Liabilities at Fair Value | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
Fair value at December 31, 2018 | Based on quoted market prices in active markets | Other observable inputs | Unobservable inputs | |||||||||
(In Thousands) | ||||||||||||
Financial assets: | ||||||||||||
VEBA investments: | ||||||||||||
Money market funds | $ | 21 | $ | 21 | $ | — | $ | — | ||||
Mutual funds | 2,565 | — | 2,565 | — | ||||||||
Total VEBA investments | 2,586 | 21 | 2,565 | — | ||||||||
Financial transmission rights | 3,099 | — | — | 3,099 | ||||||||
Total financial assets measured at fair value | $ | 5,685 | $ | 21 | $ | 2,565 | $ | 3,099 | ||||
Financial liabilities: | ||||||||||||
Other derivative liabilities | $ | 53 | $ | — | $ | — | $ | 53 | ||||
Total financial liabilities measured at fair value | $ | 53 | $ | — | $ | — | $ | 53 |
Assets and Liabilities at Fair Value | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Fair value at December 31, 2019 | Based on quoted market prices in active markets | Other observable inputs | Unobservable inputs | |||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
VEBA investments: | ||||||||||||||||||||||||||
Money market funds | $ | 25 | $ | 25 | $ | — | $ | — | ||||||||||||||||||
Mutual funds | 2,854 | — | 2,854 | — | ||||||||||||||||||||||
Total VEBA investments | 2,879 | 25 | 2,854 | — | ||||||||||||||||||||||
Financial transmission rights | 864 | — | — | 864 | ||||||||||||||||||||||
Total financial assets measured at fair value | $ | 3,743 | $ | 25 | $ | 2,854 | $ | 864 | ||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
Interest rate hedges | $ | 26,560 | $ | — | $ | 26,560 | $ | — | ||||||||||||||||||
Total financial liabilities measured at fair value | $ | 26,560 | $ | — | $ | 26,560 | $ | — |
September 30, 2019 | December 31, 2018 | |||||||||||
Face Value | Fair Value | Face Value | Fair Value | |||||||||
(In Thousands) | ||||||||||||
Fixed-rate | $ | 2,523,800 | $ | 2,891,692 | $ | 2,523,800 | $ | 2,649,265 | ||||
Variable-rate | 155,000 | 155,000 | 155,000 | 155,000 | ||||||||
Total indebtedness | $ | 2,678,800 | $ | 3,046,692 | $ | 2,678,800 | $ | 2,804,265 |
June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Face Value | Fair Value | Face Value | Fair Value | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Fixed-rate | $ | 2,593,800 | $ | 3,159,770 | $ | 2,523,800 | $ | 2,876,140 | |||||||||||||||
Variable-rate | 120,000 | 120,000 | 155,000 | 155,000 | |||||||||||||||||||
Total indebtedness | $ | 2,713,800 | $ | 3,279,770 | $ | 2,678,800 | $ | 3,031,140 |
Commodity | Accounting Treatment (a) | Unit | Purchases (in thousands) | Sales (in thousands) | Net Purchases/(Sales) (in thousands) | |||||||||||||||||||||||||||
Interest rate hedges | Designated | USD | $ | 400,000 | $ | — | $ | 400,000 | ||||||||||||||||||||||||
FTRs | Not Designated | MWh | 7,528 | — | 7,528 |
Commodity | Accounting Treatment (a) | Unit | Purchases (in thousands) | Sales (in thousands) | Net Purchases/(Sales) (in thousands) | |||||||||||
Interest rate hedges | Designated | USD | $ | 400,000 | $ | — | $ | 400,000 | ||||||||
FTRs | Not Designated | MWh | 9,131 | — | 9,131 |
Interest Rate Hedges for the Nine Months Ended September 30, 2019 | ||||
$ in thousands (net of tax) | ||||
Beginning accumulated derivative gain / (loss) in AOCI | $ | — | ||
Net losses associated with current period hedging transactions | (29,722 | ) | ||
Ending accumulated derivative loss in AOCI | $ | (29,722 | ) | |
Portion expected to be reclassified to earnings in the next twelve months | $ | — | ||
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) | 10 |
Interest Rate Hedges for the Three Months Ended June 30, | ||||||||||||||
$ in thousands (net of tax) | 2020 | 2019 | ||||||||||||
Beginning accumulated derivative loss in AOCL | $ | (56,063) | $ | (5,539) | ||||||||||
Net losses associated with current period hedging transactions | (4,026) | (11,649) | ||||||||||||
Net losses reclassified to interest expense, net of tax | 1,344 | — | ||||||||||||
Ending accumulated derivative loss in AOCL | $ | (58,745) | $ | (17,188) | ||||||||||
Interest Rate Hedges for the Six Months Ended June 30, | ||||||||||||||
$ in thousands (net of tax) | 2020 | 2019 | ||||||||||||
Beginning accumulated derivative loss in AOCL | $ | (19,750) | $ | — | ||||||||||
Net losses associated with current period hedging transactions | (40,339) | (17,188) | ||||||||||||
Net losses reclassified to interest expense, net of tax | 1,344 | — | ||||||||||||
Ending accumulated derivative loss in AOCL | $ | (58,745) | $ | (17,188) | ||||||||||
Loss expected to be reclassified to earnings in the next twelve months | $ | (7.228) | $ | — | ||||||||||
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) | 51 | 13 |
Commodity | Hedging Designation | Balance sheet classification | June 30, 2020 | December 31, 2019 | |||||||||||||||||||
Financial transmission rights | Not a Cash Flow Hedge | Prepayments and other current assets | $ | 1,707 | $ | 864 | |||||||||||||||||
Interest rate hedges | Cash Flow Hedge | Derivative liabilities, current | $ | — | $ | 26,560 | |||||||||||||||||
Interest rate hedges | Cash Flow Hedge | Derivative liabilities, non-current | $ | 80,809 | $ | — |
June 30, | December 31, | |||||||||||||
Series | Due | 2020 | 2019 | |||||||||||
(In Thousands) | ||||||||||||||
IPL first mortgage bonds: | ||||||||||||||
3.875% (1) | August 2021 | $ | 55,000 | $ | 55,000 | |||||||||
3.875% (1) | August 2021 | 40,000 | 40,000 | |||||||||||
3.125% (1) | December 2024 | 40,000 | 40,000 | |||||||||||
6.60% | January 2034 | 100,000 | 100,000 | |||||||||||
6.05% | October 2036 | 158,800 | 158,800 | |||||||||||
6.60% | June 2037 | 165,000 | 165,000 | |||||||||||
4.875% | November 2041 | 140,000 | 140,000 | |||||||||||
4.65% | June 2043 | 170,000 | 170,000 | |||||||||||
4.50% | June 2044 | 130,000 | 130,000 | |||||||||||
4.70% | September 2045 | 260,000 | 260,000 | |||||||||||
4.05% | May 2046 | 350,000 | 350,000 | |||||||||||
4.875% | November 2048 | 105,000 | 105,000 | |||||||||||
Unamortized discount – net | (6,078) | (6,156) | ||||||||||||
Deferred financing costs | (16,333) | (16,629) | ||||||||||||
Total IPL first mortgage bonds | 1,691,389 | 1,691,015 | ||||||||||||
IPL unsecured debt: | ||||||||||||||
Variable - 1.063% (2) | December 2020 | 30,000 | 30,000 | |||||||||||
Variable - 1.063% (2) | December 2020 | 60,000 | 60,000 | |||||||||||
Deferred financing costs | (57) | (114) | ||||||||||||
Total IPL unsecured debt | 89,943 | 89,886 | ||||||||||||
Total Long-term Debt – IPL | 1,781,332 | 1,780,901 | ||||||||||||
Long-term Debt – IPALCO: | ||||||||||||||
Term Loan | July 2020 | — | 65,000 | |||||||||||
3.45% Senior Secured Notes | July 2020 | — | 405,000 | |||||||||||
3.70% Senior Secured Notes | September 2024 | 405,000 | 405,000 | |||||||||||
4.25% Senior Secured Notes | May 2030 | 475,000 | — | |||||||||||
Unamortized discount – net | (672) | (313) | ||||||||||||
Deferred financing costs | (9,220) | (3,959) | ||||||||||||
Total Long-term Debt – IPALCO | 870,108 | 870,728 | ||||||||||||
Total Consolidated IPALCO Long-term Debt | 2,651,440 | 2,651,629 | ||||||||||||
Less: Current Portion of Long-term Debt | 89,943 | 559,199 | ||||||||||||
Net Consolidated IPALCO Long-term Debt | $ | 2,561,497 | $ | 2,092,430 | ||||||||||
September 30, | December 31, | ||||||
Series | Due | 2019 | 2018 | ||||
(In Thousands) | |||||||
IPL first mortgage bonds: | |||||||
3.875% (1) | August 2021 | $ | 55,000 | $ | 55,000 | ||
3.875% (1) | August 2021 | 40,000 | 40,000 | ||||
3.125% (1) | December 2024 | 40,000 | 40,000 | ||||
6.60% | January 2034 | 100,000 | 100,000 | ||||
6.05% | October 2036 | 158,800 | 158,800 | ||||
6.60% | June 2037 | 165,000 | 165,000 | ||||
4.875% | November 2041 | 140,000 | 140,000 | ||||
4.65% | June 2043 | 170,000 | 170,000 | ||||
4.50% | June 2044 | 130,000 | 130,000 | ||||
4.70% | September 2045 | 260,000 | 260,000 | ||||
4.05% | May 2046 | 350,000 | 350,000 | ||||
4.875% | November 2048 | 105,000 | 105,000 | ||||
Unamortized discount – net | (6,189 | ) | (6,272 | ) | |||
Deferred financing costs | (16,769 | ) | (17,115 | ) | |||
Total IPL first mortgage bonds | 1,690,842 | 1,690,413 | |||||
IPL unsecured debt: | |||||||
Variable (2) | December 2020 | 30,000 | 30,000 | ||||
Variable (2) | December 2020 | 60,000 | 60,000 | ||||
Deferred financing costs | (143 | ) | (229 | ) | |||
Total IPL unsecured debt | 89,857 | 89,771 | |||||
Total Long-term Debt – IPL | 1,780,699 | 1,780,184 | |||||
Long-term Debt – IPALCO: | |||||||
Term Loan | July 2020 | 65,000 | 65,000 | ||||
3.45% Senior Secured Notes | July 2020 | 405,000 | 405,000 | ||||
3.70% Senior Secured Notes | September 2024 | 405,000 | 405,000 | ||||
Unamortized discount – net | (341 | ) | (424 | ) | |||
Deferred financing costs | (4,393 | ) | (5,696 | ) | |||
Total Long-term Debt – IPALCO | 870,266 | 868,880 | |||||
Total Consolidated IPALCO Long-term Debt | 2,650,965 | 2,649,064 | |||||
Less: Current Portion of Long-term Debt | 469,017 | — | |||||
Net Consolidated IPALCO Long-term Debt | $ | 2,181,948 | $ | 2,649,064 | |||
Net unfunded status of plans: | |||
Net unfunded status at December 31, 2018 | $ | (12,743 | ) |
Net benefit cost components reflected in net unfunded status during first quarter: | |||
Service cost | (1,853 | ) | |
Interest cost | (6,836 | ) | |
Expected return on assets | 7,477 | ||
Net unfunded status at March 31, 2019 | $ | (13,955 | ) |
Net benefit cost components reflected in net unfunded status during second quarter: | |||
Service cost | (1,852 | ) | |
Interest cost | (6,836 | ) | |
Expected return on assets | 7,477 | ||
Net unfunded status at June 30, 2019 | $ | (15,166 | ) |
Net benefit cost components reflected in net unfunded status during third quarter: | |||
Service cost | (1,853 | ) | |
Interest cost | (6,836 | ) | |
Expected return on assets | 7,477 | ||
Net unfunded status at September 30, 2019 | $ | (16,378 | ) |
Regulatory assets related to pensions(1): | |||
Regulatory assets at December 31, 2018 | $ | 201,452 | |
Amount reclassified through net benefit cost: | |||
Amortization of prior service cost | (956 | ) | |
Amortization of net actuarial loss | (2,771 | ) | |
Regulatory assets at March 31, 2019 | $ | 197,725 | |
Amount reclassified through net benefit cost: | |||
Amortization of prior service cost | (957 | ) | |
Amortization of net actuarial loss | (2,770 | ) | |
Regulatory assets at June 30, 2019 | $ | 193,998 | |
Amount reclassified through net benefit cost: | |||
Amortization of prior service cost | (956 | ) | |
Amortization of net actuarial loss | (2,770 | ) | |
Regulatory assets at September 30, 2019 | $ | 190,272 | |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||
(In Thousands) | (In Thousands) | |||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||
Service cost | $ | 2,068 | $ | 1,852 | $ | 4,136 | $ | 3,705 | ||||||||||||
Interest cost | 5,538 | 6,836 | 11,076 | 13,672 | ||||||||||||||||
Expected return on plan assets | (9,445) | (7,477) | (18,890) | (14,954) | ||||||||||||||||
Amortization of prior service cost | 919 | 957 | 1,838 | 1,913 | ||||||||||||||||
Amortization of actuarial loss | 2,028 | 2,770 | 4,057 | 5,541 | ||||||||||||||||
Net periodic benefit cost | $ | 1,108 | $ | 4,938 | $ | 2,217 | $ | 9,877 | ||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
(In Thousands) | (In Thousands) | |||||||||||
Components of net periodic benefit cost: | ||||||||||||
Service cost | $ | 1,853 | $ | 2,112 | $ | 5,558 | $ | 6,338 | ||||
Interest cost | 6,836 | 6,305 | 20,508 | 18,915 | ||||||||
Expected return on plan assets | (7,477 | ) | (10,200 | ) | (22,431 | ) | (30,600 | ) | ||||
Amortization of prior service cost | 956 | 959 | 2,869 | 2,878 | ||||||||
Amortization of actuarial loss | 2,770 | 2,851 | 8,311 | 8,552 | ||||||||
Curtailments(1) | — | — | — | 1,230 | ||||||||
Net periodic benefit cost | $ | 4,938 | $ | 2,027 | $ | 14,815 | $ | 7,313 | ||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
September 30, 2019 | September 30, 2018 | |||||||||||||||||||||||
Utility | All Other | Total | Utility | All Other | Total | |||||||||||||||||||
Revenues | $ | 398,456 | $ | — | $ | 398,456 | $ | 385,149 | $ | — | $ | 385,149 | ||||||||||||
Depreciation and amortization | $ | 60,373 | $ | — | $ | 60,373 | $ | 57,880 | $ | — | $ | 57,880 | ||||||||||||
Interest expense | $ | 22,244 | $ | 8,376 | $ | 30,620 | $ | 15,255 | $ | 7,662 | $ | 22,917 | ||||||||||||
Earnings/(loss) from operations before income tax | $ | 69,881 | $ | (8,287 | ) | $ | 61,594 | $ | 60,347 | $ | (7,703 | ) | $ | 52,644 | ||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, 2019 | September 30, 2018 | |||||||||||||||||||||||
Utility | All Other | Total | Utility | All Other | Total | |||||||||||||||||||
Revenues | $ | 1,121,634 | $ | — | $ | 1,121,634 | $ | 1,099,331 | $ | — | $ | 1,099,331 | ||||||||||||
Depreciation and amortization | $ | 179,939 | $ | — | $ | 179,939 | $ | 172,492 | $ | — | $ | 172,492 | ||||||||||||
Interest expense | $ | 66,757 | $ | 24,636 | $ | 91,393 | $ | 47,461 | $ | 23,004 | $ | 70,465 | ||||||||||||
Earnings/(loss) from operations before income tax | $ | 158,153 | $ | (24,697 | ) | $ | 133,456 | $ | 144,416 | $ | (23,247 | ) | $ | 121,169 | ||||||||||
Capital expenditures(1) | $ | 131,682 | $ | — | $ | 131,682 | $ | 170,299 | $ | — | $ | 170,299 | ||||||||||||
As of September 30, 2019 | As of December 31, 2018 | |||||||||||||||||||||||
Utility | All Other | Total | Utility | All Other | Total | |||||||||||||||||||
Total assets | $ | 4,952,080 | $ | 16,228 | $ | 4,968,308 | $ | 4,851,712 | $ | 10,341 | $ | 4,862,053 | ||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Utility | All Other | Total | Utility | All Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 311,503 | $ | — | $ | 311,503 | $ | 340,869 | $ | — | $ | 340,869 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 61,099 | $ | — | $ | 61,099 | $ | 59,897 | $ | — | $ | 59,897 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | $ | 21,882 | $ | 12,053 | $ | 33,935 | $ | 22,252 | $ | 8,039 | $ | 30,291 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings/(loss) from operations before income tax | $ | 38,770 | $ | (14,482) | $ | 24,288 | $ | 28,044 | $ | (8,171) | $ | 19,873 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Utility | All Other | Total | Utility | All Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 668,885 | $ | — | $ | 668,885 | $ | 723,178 | $ | — | $ | 723,178 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 121,807 | $ | — | $ | 121,807 | $ | 119,566 | $ | — | $ | 119,566 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | $ | 43,802 | $ | 20,214 | $ | 64,016 | $ | 44,513 | $ | 16,260 | $ | 60,773 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings/(loss) from operations before income tax | $ | 93,737 | $ | (23,694) | $ | 70,043 | $ | 88,272 | $ | (16,410) | $ | 71,862 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures(1) | $ | 92,848 | $ | — | $ | 92,848 | $ | 113,118 | $ | — | $ | 113,118 | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Utility | All Other | Total | Utility | All Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 4,940,338 | $ | 13,019 | $ | 4,953,357 | $ | 4,918,408 | $ | 10,261 | $ | 4,928,669 | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Three Months Ended | |||||||
June 30, 2020 | June 30, 2019 | |||||||
Retail Revenues | ||||||||
Retail revenue from contracts with customers: | ||||||||
Residential | $ | 127,752 | $ | 124,654 | ||||
Small commercial and industrial | 43,402 | 48,864 | ||||||
Large commercial and industrial | 119,302 | 140,258 | ||||||
Public lighting | 2,309 | 2,490 | ||||||
Other (1) | 2,805 | 3,725 | ||||||
Total retail revenue from contracts with customers | 295,570 | 319,991 | ||||||
Alternative revenue programs | 8,789 | 7,697 | ||||||
Wholesale Revenues | ||||||||
Wholesale revenue from contracts with customers: | 4,501 | 10,006 | ||||||
Miscellaneous Revenues | ||||||||
Transmission and other revenue from contracts with customers | 2,329 | 2,898 | ||||||
Other miscellaneous revenues (2) | 314 | 277 | ||||||
Total Revenues | $ | 311,503 | $ | 340,869 | ||||
For the Three Months Ended | For the Three Months Ended | |||||
September 30, 2019 | September 30, 2018 | |||||
Retail Revenues | ||||||
Retail revenue from contracts with customers | $ | 369,945 | $ | 366,030 | ||
Other retail revenues (1) | 6,478 | 4,293 | ||||
Wholesale Revenues | 18,426 | 10,844 | ||||
Miscellaneous Revenues | ||||||
Transmission and other revenue from contracts with customers | 3,091 | 2,631 | ||||
Other miscellaneous revenues (2) | 516 | 1,351 | ||||
Total Revenues | $ | 398,456 | $ | 385,149 | ||
For the Nine Months Ended | For the Six Months Ended | |||||||||||||
September 30, 2019 | September 30, 2018 | June 30, 2020 | June 30, 2019 | |||||||||||
Retail Revenues | Retail Revenues | |||||||||||||
Retail revenue from contracts with customers | $ | 1,056,438 | $ | 1,045,286 | ||||||||||
Other retail revenues (1) | 19,069 | 12,157 | ||||||||||||
Retail revenue from contracts with customers: | Retail revenue from contracts with customers: | |||||||||||||
Residential | Residential | $ | 283,161 | $ | 295,194 | |||||||||
Small commercial and industrial | Small commercial and industrial | 97,655 | 109,770 | |||||||||||
Large commercial and industrial | Large commercial and industrial | 241,340 | 272,532 | |||||||||||
Public lighting | Public lighting | 4,614 | 2,490 | |||||||||||
Other (1) | Other (1) | 6,693 | 6,508 | |||||||||||
Total retail revenue from contracts with customers | Total retail revenue from contracts with customers | 633,463 | 686,494 | |||||||||||
Alternative revenue programs | Alternative revenue programs | 13,684 | 12,590 | |||||||||||
Wholesale Revenues | 35,533 | 30,007 | Wholesale Revenues | |||||||||||
Wholesale revenue from contracts with customers: | Wholesale revenue from contracts with customers: | 15,809 | 17,107 | |||||||||||
Miscellaneous Revenues | Miscellaneous Revenues | |||||||||||||
Transmission and other revenue from contracts with customers | 8,474 | 7,906 | Transmission and other revenue from contracts with customers | 5,061 | 5,383 | |||||||||
Other miscellaneous revenues (2) | 2,120 | 3,975 | Other miscellaneous revenues (2) | 868 | 1,604 | |||||||||
Total Revenues | $ | 1,121,634 | $ | 1,099,331 | Total Revenues | $ | 668,885 | $ | 723,178 | |||||
Operating Leases | |||
2019 | $ | 254 | |
2020 | 941 | ||
2021 | 994 | ||
2022 | 906 | ||
2023 | 906 | ||
Thereafter | 3,414 | ||
Total | $ | 7,415 |
Operating Leases | |||||
2020 | $ | 443 | |||
2021 | 886 | ||||
2022 | 906 | ||||
2023 | 906 | ||||
2024 | 786 | ||||
Thereafter | 2,628 | ||||
Total | $ | 6,555 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
REVENUES | $ | 311,503 | $ | 340,869 | $ | 668,885 | $ | 723,178 | |||||||||||||||
OPERATING COSTS AND EXPENSES: | |||||||||||||||||||||||
Fuel | 43,351 | 72,217 | 112,139 | 161,016 | |||||||||||||||||||
Power purchased | 43,082 | 36,719 | 78,549 | 69,643 | |||||||||||||||||||
Operation and maintenance | 94,659 | 113,661 | 200,248 | 215,807 | |||||||||||||||||||
Depreciation and amortization | 61,099 | 59,897 | 121,807 | 119,566 | |||||||||||||||||||
Taxes other than income taxes | 11,606 | 6,983 | 23,664 | 20,966 | |||||||||||||||||||
Total operating costs and expenses | 253,797 | 289,477 | 536,407 | 586,998 | |||||||||||||||||||
OPERATING INCOME | 57,706 | 51,392 | 132,478 | 136,180 | |||||||||||||||||||
OTHER INCOME / (EXPENSE), NET: | |||||||||||||||||||||||
Allowance for equity funds used during construction | 1,160 | 817 | 2,017 | 1,728 | |||||||||||||||||||
Interest expense | (33,935) | (30,291) | (64,016) | (60,773) | |||||||||||||||||||
Loss on early extinguishment of debt | (2,415) | — | (2,415) | — | |||||||||||||||||||
Other income / (expense), net | 1,772 | (2,045) | 1,979 | (5,273) | |||||||||||||||||||
Total other income / (expense), net | (33,418) | (31,519) | (62,435) | (64,318) | |||||||||||||||||||
EARNINGS FROM OPERATIONS BEFORE INCOME TAX | 24,288 | 19,873 | 70,043 | 71,862 | |||||||||||||||||||
Less: Income tax expense | 5,165 | 4,960 | 14,937 | 15,164 | |||||||||||||||||||
NET INCOME | 19,123 | 14,913 | 55,106 | 56,698 | |||||||||||||||||||
Less: Dividends on preferred stock | 804 | 804 | 1,607 | 1,607 | |||||||||||||||||||
NET INCOME APPLICABLE TO COMMON STOCK | $ | 18,319 | $ | 14,109 | $ | 53,499 | $ | 55,091 | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
REVENUES | $ | 398,456 | $ | 385,149 | $ | 1,121,634 | $ | 1,099,331 | |||||
OPERATING COSTS AND EXPENSES: | |||||||||||||
Fuel | 93,217 | 90,599 | 254,233 | 252,435 | |||||||||
Power purchased | 31,840 | 39,267 | 101,483 | 131,580 | |||||||||
Operation and maintenance | 105,975 | 109,644 | 321,782 | 315,225 | |||||||||
Depreciation and amortization | 60,373 | 57,880 | 179,939 | 172,492 | |||||||||
Taxes other than income taxes | 12,943 | 12,781 | 33,909 | 42,036 | |||||||||
Total operating costs and expenses | 304,348 | 310,171 | 891,346 | 913,768 | |||||||||
OPERATING INCOME | 94,108 | 74,978 | 230,288 | 185,563 | |||||||||
OTHER INCOME / (EXPENSE), NET: | |||||||||||||
Allowance for equity funds used during construction | 810 | 459 | 2,538 | 7,839 | |||||||||
Interest expense | (30,620 | ) | (22,917 | ) | (91,393 | ) | (70,465 | ) | |||||
Other income / (expense), net | (2,704 | ) | 124 | (7,977 | ) | (1,768 | ) | ||||||
Total other income / (expense), net | (32,514 | ) | (22,334 | ) | (96,832 | ) | (64,394 | ) | |||||
EARNINGS FROM OPERATIONS BEFORE INCOME TAX | 61,594 | 52,644 | 133,456 | 121,169 | |||||||||
Less: Income tax expense - net | 13,088 | 10,572 | 28,252 | 23,548 | |||||||||
NET INCOME | 48,506 | 42,072 | 105,204 | 97,621 | |||||||||
Less: Dividends on preferred stock | 803 | 803 | 2,410 | 2,410 | |||||||||
NET INCOME APPLICABLE TO COMMON STOCK | $ | 47,703 | $ | 41,269 | $ | 102,794 | $ | 95,211 | |||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
September 30, | Percentage | June 30, | Percentage | ||||||||||||||||||||||||||||
2019 | 2018 | Change | Change | 2020 | 2019 | Change | |||||||||||||||||||||||||
Revenues: | Revenues: | ||||||||||||||||||||||||||||||
Retail revenues | $ | 376,423 | $ | 370,323 | $ | 6,100 | 1.6% | Retail revenues | 304,359 | 327,688 | $ | (23,329) | (7.1)% | ||||||||||||||||||
Wholesale revenues | 18,426 | 10,844 | 7,582 | 69.9% | Wholesale revenues | 4,501 | 10,006 | (5,505) | (55.0)% | ||||||||||||||||||||||
Miscellaneous revenues | 3,607 | 3,982 | (375 | ) | (9.4)% | Miscellaneous revenues | 2,643 | 3,175 | (532) | (16.8)% | |||||||||||||||||||||
Total revenues | $ | 398,456 | $ | 385,149 | $ | 13,307 | 3.5% | Total revenues | $ | 311,503 | $ | 340,869 | $ | (29,366) | (8.6)% | ||||||||||||||||
Heating degree days: | Heating degree days: | ||||||||||||||||||||||||||||||
Actual | — | 33 | (33 | ) | (100.0)% | Actual | 640 | 457 | 183 | 40.0% | |||||||||||||||||||||
30-year average | 68 | 70 | 30-year average | 531 | 527 | ||||||||||||||||||||||||||
Cooling degree days: | Cooling degree days: | ||||||||||||||||||||||||||||||
Actual | 969 | 959 | 10 | 1.0% | Actual | 342 | 312 | 30 | 9.6% | ||||||||||||||||||||||
30-year average | 752 | 744 | 30-year average | 310 | 309 |
Volume: | |||
Net increase in the volume of kWh sold | $ | 1.3 | |
Price: | |||
Net increase in the weighted average price of retail kWh sold, primarily due to new basic rates and charges that were effective on December 5, 2018 as a result of implementing the 2018 Base Rate Order, partially offset by a decrease in DSM program rate adjustment mechanism revenues(1), unfavorable block rate(2) and other retail rate variances. | 2.6 | ||
Increase in other retail revenues primarily due to updated estimates of 2018 DSM lost revenues and other recoverable items recorded in the third quarter of 2019. | 2.2 | ||
Net increase in price | $ | 4.8 | |
Net increase in retail revenues | $ | 6.1 |
Volume: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in the volume of kWh sold primarily due to lower demand resulting from impacts of COVID-19, partially offset by favorable weather in our service territory versus the comparable period | $ | (7.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net decrease in the weighted average price of retail kWh sold primarily due to lower fuel revenues, including a $5.4 million reduction due to excess earnings under FAC provisions (see Note 2, "Regulatory Matters - FAC and Authorized Annual Jurisdictional Net Operating Income" to the Financial Statements for more information)
Wholesale Revenues The 29 Operating Costs and Expenses The following table illustrates our changes in Operating costs and expenses during the three months ended
Fuel The Power Purchased The Operation and Maintenance The decrease in Operation and maintenance of The increase in 30 Other Income / (Expense), Net The following table illustrates our changes in Other income / (expense), net during the three months ended
Interest Expense The increase in Interest expense of Loss on Early Extinguishment of Debt The increase in Loss on Early Extinguishment of Debt of $2.4 million was primarily due to a Other The
31 Comparison of Revenues Revenues during the
Retail Revenues The
|