U-3A-2 1 du3a2.htm FORM U-3A-2 FORM U-3A-2

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C.

 

 

FORM U-3A-2

 

STATEMENT BY HOLDING COMPANY

CLAIMING EXEMPTION

UNDER RULE U-3A-2 FROM THE

PROVISIONS OF THE

 

PUBLIC UTILITY HOLDING COMPANY

ACT OF 1935

 

* * * * *

 

File No. 69-291

 

 

TNP ENTERPRISES, INC.

(Name of Company)

 

hereby files with the Securities and Exchange Commission, pursuant to Rule 2, its statement claiming exemption as a holding company from the provisions of the Public Utility Holding Company Act of 1935, and submits the following information:

 

1. The name, state of organization, location and nature of business of claimant and every subsidiary thereof, other than any exempt wholesale generator (EWG) or foreign utility company in which claimant directly or indirectly holds an interest:

 

Name

   

State of Organization

   

Location and Nature of Business

TNP Enterprises, Inc.

   

Texas

   

2 Robbins Lane, Suite 201

Jericho, NY 11753

Holding Company

Texas-New Mexico Power Company

   

Texas

   

P.O. Box 2943

Fort Worth, TX 76113

Electric Utility/Holding Company

First Choice Power, Inc.

   

Texas

   

P. O. Box 2943

Fort Worth, TX 76113

General purpose corporation

TNP Operating Company

   

Texas

   

P.O. Box 2943

Fort Worth, TX 76113

General purpose corporation (presently inactive)

 

Texas Generating Company, LP*

   

Texas

   

P.O. Box 2943

Fort Worth, TX 76113

Single purpose limited Partnership

Texas Generating Company II, LLC**

   

Texas

   

P.O. Box 2943

Fort Worth, TX 76113

Single purpose limited liability company

Facility Works, Inc.

   

Texas

   

P.O. Box 2943

Fort Worth, TX 76113

General purpose corporation

 

*   TNMP owns a 99% limited partnership interest. Texas Generating Company II, LLC, the general partner, owns the remaining one percent interest.
**   A wholly owned subsidiary of Texas-New Mexico Power Company

 

2. The following is a brief description of the properties of claimant and of its subsidiary public utility company, Texas-New Mexico Power Company (TNMP), used for the generation, transmission, and distribution of electric energy for sale, indicating the location of principal generating plants, transmission lines and distribution facilities including all such properties which are outside the State in which claimant and its subsidiaries are organized, and all transmission lines which deliver or receive electric energy at the borders of such States:

 

The claimant owns all of the issued and outstanding common stock of its principal operating subsidiaries: Texas-New Mexico Power Company, an electric public utility corporation, and First Choice Power (FCP), a retail electric provider.

 

Texas-New Mexico Power Company (TNMP) provides transmission and distribution services in 76 municipalities and adjacent rural areas in Texas and serves approximately 47,000 customers in nine municipalities and adjacent rural areas in New Mexico. TNMP is a subsidiary of TNP Enterprises, Inc., a public utility holding company exempt under Section 3(a)(1) of the Act.

 

Within Texas, TNMP is a regulated public utility that during 2002 was engaged in the transmission and distribution of electric energy. TNMP provides transmission and distribution services to 76 municipalities in Texas, primarily smaller-to-medium sized communities. Only three of the Texas municipalities that TNMP serves have populations exceeding 50,000. The largest municipalities within Texas served by TNMP are Texas City, Lewisville, and League City. TNMP’s Texas service territory is found in three areas of the state:

 

  •   56 communities in North and Central Texas extending from Lewisville, near Dallas-Fort Worth International Airport, along the Red River, and south and west of Fort Worth.

 

2

 

  •   14 communities in southeastern Texas, between Houston and Galveston and to the south of Houston. The largest municipality in this area is Texas City.

 

  •   Six communities in far west Texas between Midland and El Paso.

 

Prior to 2002, TNMP was also engaged in the generation and sale of electric energy in Texas. Effective January 1, 2002, TNMP separated its Texas utility operations in accordance with the provisions of the Texas electric utility restructuring legislation enacted in 1999. Since that date, FCP, TNMP’s affiliated retail electric provider, has assumed the activities related to the sale of electricity to retail customers in Texas, both within TNMP’s service territories and elsewhere. FCP or other retail electric providers operating in TNMP’s service territories now serve customers formerly served directly by TNMP. Texas Generating Company, LP (TGC) became the unregulated entity performing the generation activities of TNMP. TNMP continues to operate its regulated transmission and distribution business in Texas.

 

TGC exited the power generation business during 2002 when it sold all its generating facilities in October 2002. TGC owns no other generation facilities and has no plans to conduct any other generating activities.

 

Within New Mexico, TNMP is a regulated public utility engaged in the supply, transmission, distribution and sale of electric energy. It owns transmission and distribution lines within New Mexico and serves nine communities in southern New Mexico. The largest of these are Silver City, Alamogordo and Ruidoso. The New Mexico region is based at Silver City.

 

Neither the claimant nor any of its subsidiaries own transmission lines that deliver or receive electricity at the border of Texas.

 

3. Certain information, for the calendar year 2002 with respect to claimant and its public utility subsidiary, TNMP, is provided in the following chart:

 

(a)Total MWH sold and related revenues are as follows:

    

MWH

   

Revenues From Sales

Retail

   

6,788,156

   

$

245,252,000

Wholesale

   

1,978,194

   

 

53,806,000

    
  

Totals

   

8,766,350

   

$

299,058,000

    
  

 

TNP, TNMP, FCP, TGC and TGCII are incorporated or organized in the State of Texas

 

3

 

(b)MWH sold and related revenues at retail in (a) above, are as follows:

 

    

MWH

   

Retail Revenues

Texas

   

5,769,821

   

$

152,945,000

New Mexico

   

1,018,335

   

 

92,307,000

    
  

Totals

   

6,788,156

   

$

245,252,000

    
  

 

(c) MWH sold and related revenues at wholesale in (a) above, are as follows:

 

    

MWH

   

Wholesale Revenues

Texas

   

1,978,194

   

$

53,806,000

New Mexico

   

—  

   

 

—  

    
  

Totals

   

1,978,194

   

$

53,806,000

    
  

 

(d) MWH purchased and related expenses are as follows:

    

MWH

   

Purchased Power Expenses

Texas

   

24,906

   

$

1,826,000

New Mexico

   

1,082,018

   

 

62,902,000

    
  

Totals

   

1,106,924

   

$

64,728,000

    
  

 

4. Neither the claimant nor any of its subsidiaries are directly or indirectly involved with, or have an interest in either an Exempt Wholesale Generator or a foreign utility company.

 

Exhibit A. Presented are:

 

  •   consolidating statement of income of the claimant and its subsidiaries for the last calendar year 2002,

 

  •   a consolidating balance sheet of the claimant as of the close of the 2002 calendar year, and

 

  •   consolidating statements of retained earnings of claimant and its subsidiaries as of the close of the 2002 calendar year.

 

Exhibit B. A Financial Data Schedule for the period ended December 31, 2002, including Item Nos. 1, 2, and 3.

 

4

 

The above named claimant has caused this statement to be duly executed on its behalf by its authorized officer on this 27th day of February, 2003.

 

       

TNP Enterprises, Inc.

           

By:

  

/s/    Theodore A. Babcock

   

Corporate Seal

Attest:

          

Theodore A. Babcock

Chief Financial Officer

 

/s/    Kathleen A. Marion

Kathleen A. Marion, Secretary

 

The name, title and address of the officer to whom notices and correspondence concerning this statement should be addressed is:

 

Kathleen A. Marion, Secretary

TNP Enterprises, Inc.

2 Robbins Lane, Suite 201

Jericho, NY 11753

 

With a copy to

Paul W. Talbot, Senior Counsel

Texas-New Mexico Power Company

4100 International Plaza

Fort Worth, TX 76109

 

5

 

Exhibit A

 

TNP ENTERPRISES, INC. AND SUBSIDIARIES

CONSOLIDATING STATEMENTS OF INCOME

For the Year Ended December 31, 2002

(Amounts in Thousands)

 

      

Texas-New Mexico

Power Company

Consolidated

       

First Choice

Power Company

     

TNP Operating

Company

       

TNP Enterprises, Inc.

     

Consolidating Entries

       

TNP Enterprises, Inc. Consolidated

  

OPERATING REVENUES

     

$

303,907

 

     

$

505,256

     

$

—

 

     

$

—

 

   

$

(121,792

)

     

$

687,371

 

      
    
    
    
  
    

OPERATING EXPENSES:

                                                              

Purchased power and fuel

     

 

100,679

 

     

 

247,963

     

 

—  

 

     

 

—  

 

   

 

(14,134

)

     

 

334,508

 

Other operating and maintenance

     

 

75,240

 

     

 

194,508

     

 

—  

 

     

 

6,321

 

   

 

(107,658

)

     

 

168,411

 

Accrual for payment to TNMP

     

 

—  

 

     

 

752

     

 

—  

 

     

 

—  

 

   

 

—  

 

     

 

752

 

Depreciation of utility plant

     

 

27,567

 

     

 

238

     

 

—  

 

     

 

6

 

   

 

—  

 

     

 

27,811

 

Charge for recovery of stranded plant

     

 

(733

)

     

 

—  

     

 

—  

 

     

 

—  

 

   

 

—  

 

     

 

(733

)

Taxes other than income taxes

     

 

24,507

 

     

 

6,725

     

 

29

 

     

 

267

 

   

 

—  

 

     

 

31,528

 

      
    
    
    
  
    

Total operating expenses

     

 

227,260

 

     

 

450,186

     

 

29

 

     

 

6,594

 

   

 

(121,792

)

     

 

562,277

 

      
    
    
    
  
    

OPERATING INCOME

     

 

76,647

 

     

 

55,070

     

 

(29

)

     

 

(6,594

)

   

 

—  

 

     

 

125,094

 

Other income and deductions, net

     

 

464

 

     

 

322

     

 

77

 

     

 

67,124

 

   

 

(70,044

)

     

 

(2,057

)

      
    
    
    
  
    

INCOME BEFORE INTEREST CHARGES AND INCOME TAXES

     

 

77,111

 

     

 

55,392

     

 

48

 

     

 

60,530

 

   

 

(70,044

)

     

 

123,037

 

      
    
    
    
  
    

INTEREST CHARGES:

                                                              

Interest on long-term debt

     

 

18,300

 

     

 

469

     

 

—  

 

     

 

35,140

 

   

 

—  

 

     

 

53,909

 

Other interest and amortization of debt-related costs

     

 

3,514

 

     

 

559

     

 

—  

 

     

 

2,225

 

   

 

(483

)

     

 

5,815

 

      
    
    
    
  
    

Total interest charges

     

 

21,814

 

     

 

1,028

     

 

—  

 

     

 

37,365

 

   

 

(483

)

     

 

59,724

 

      
    
    
    
  
    

INCOME BEFORE INCOME TAXES

     

 

55,297

 

     

 

54,364

     

 

48

 

     

 

23,165

 

   

 

(69,561

)

     

 

63,313

 

Income taxes

     

 

19,166

 

     

 

20,965

     

 

17

 

     

 

(16,428

)

   

 

—  

 

     

 

23,720

 

      
    
    
    
  
    

NET INCOME

     

 

36,131

 

     

 

33,399

     

 

31

 

     

 

39,593

 

   

 

(69,561

)

     

 

39,593

 

Dividends on preferred stock and other

     

 

—  

 

     

 

—  

     

 

—  

 

     

 

19,260

 

   

 

—  

 

     

 

19,260

 

      
    
    
    
  
    

INCOME APPLICABLE TO COMMON STOCK

     

$

36,131

 

     

$

33,399

     

$

31

 

     

$

20,333

 

   

$

(69,561

)

     

$

20,333

 

      
    
    
    
  
    

 

 

Exhibit A

 

TNP ENTERPRISES, INC. AND SUBSIDIARIES

CONSOLIDATING STATEMENTS OF RETAINED EARNINGS

For the Year Ended December 31, 2002

(Amounts in Thousands)

 

      

Texas-New Mexico

Power Company

Consolidated

     

First Choice

Power

Company

     

TNP

Operating

Company

   

TNP

Enterprises,

Inc.

     

Facility Works, Inc.

     

Consolidating Entries

       

TNP

Enterprises, Inc. Consolidated

  

BALANCE AT DECEMBER 31, 2001

     

$

115,685

 

   

$

(2,106

)

   

$

1,178

   

$

(21,189

)

   

$

(29,989

)

   

$

(84,768

)

     

$

(21,189

)

Net income

     

 

36,131

 

   

 

33,399

 

   

 

31

   

 

39,593

 

   

 

—  

 

   

 

(69,561

)

     

 

39,593

 

Dividends on preferred stock

     

 

—  

 

   

 

—  

 

   

 

—  

   

 

(18,822

)

   

 

.

 

   

 

—  

 

     

 

(18,822

)

Dividends on common stock

     

 

(97,300

)

   

 

(15,000

)

   

 

—  

   

 

—  

 

   

 

—  

 

   

 

112,300

 

     

 

—  

 

Preferred stock discount and warrant accretion

     

 

—  

 

   

 

—  

 

   

 

—  

   

 

(438

)

   

 

—  

 

   

 

—  

 

     

 

(438

)

      
  
  
  
  
  
    

BALANCE AT DECEMBER 31, 2002

     

$

54,516

 

   

$

16,293

 

   

$

1,209

   

$

(856

)

   

$

(29,989

)

   

$

(42,029

)

     

$

(856

)

      
  
  
  
  
  
    

 

 

Exhibit A

 

TNP ENTERPRISES, INC. AND SUBSIDIARIES

CONSOLIDATING BALANCE SHEET

December 31, 2002

(Amounts in Thousands)

 

      

Texas-New Mexico

Power Company

Consolidated

     

First Choice Power Company

       

TNP Operating Company

       

TNP Enterprises, Inc.

       

Facility Works, Inc.

     

Consolidating Entries

       

TNP Enterprises, Inc. Consolidated

  

ASSETS

                                                                         

CURRENT ASSETS:

                                                                         

Cash and cash equivalents

     

$

284

 

   

$

5,213

 

     

$

771

 

     

$

10,356

 

     

$

66

 

   

$

—

 

     

$

16,690

 

Notes receivable

     

 

—  

 

   

 

14,557

 

     

 

—  

 

     

 

—  

 

     

 

—  

 

   

 

(14,557

)

     

 

—  

 

Accounts receivable

     

 

33,678

 

   

 

77,560

 

     

 

(30

)

     

 

(7,018

)

     

 

271

 

   

 

(10,077

)

     

 

94,384

 

Deferred purchased power and fuel costs

     

 

1,320

 

   

 

—  

 

     

 

—  

 

     

 

—  

 

     

 

—  

 

   

 

—  

 

     

 

1,320

 

Other current assets

     

 

1,674

 

   

 

516

 

     

 

—  

 

     

 

74

 

     

 

52

 

   

 

—  

 

     

 

2,316

 

      
  
    
    
    
  
    

Total current assets

     

 

36,956

 

   

 

97,846

 

     

 

741

 

     

 

3,412

 

     

 

389

 

   

 

(24,634

)

     

 

114,710

 

      
  
    
    
    
  
    

UTILITY PLANT

     

 

782,667

 

   

 

3,664

 

     

 

—  

 

     

 

38

 

     

 

—  

 

   

 

(205,047

)

     

 

581,322

 

Less: accumulated depreciation

     

 

278,757

 

   

 

907

 

     

 

—  

 

     

 

15

 

     

 

—  

 

   

 

(205,047

)

     

 

74,632

 

      
  
    
    
    
  
    

Net utility plant

     

 

503,910

 

   

 

2,757

 

     

 

—  

 

     

 

23

 

     

 

—  

 

   

 

—  

 

     

 

506,690

 

      
  
    
    
    
  
    

LONG-TERM AND OTHER ASSETS:

                                                                         

Investments in subsidiary companies

     

 

—  

 

   

 

—  

 

     

 

—  

 

     

 

296,618

 

     

 

—  

 

   

 

(296,618

)

     

 

—  

 

Other property and investments, at cost

     

 

343

 

   

 

—  

 

     

 

930

 

     

 

—  

 

     

 

—  

 

   

 

—  

 

     

 

1,273

 

Goodwill

     

 

—  

 

   

 

—  

 

     

 

—  

 

     

 

270,256

 

     

 

—  

 

   

 

—  

 

     

 

270,256

 

Recoverable stranded costs

     

 

298,748

 

   

 

—  

 

     

 

—  

 

     

 

—  

 

     

 

—  

 

   

 

—  

 

     

 

298,748

 

Regulatory tax assets

     

 

913

 

   

 

1

 

     

 

—  

 

     

 

—  

 

     

 

—  

 

   

 

—  

 

     

 

914

 

Deferred charges

     

 

9,962

 

   

 

507

 

     

 

98

 

     

 

9,286

 

     

 

—  

 

   

 

26,481

 

     

 

46,334

 

      
  
    
    
    
  
    

Total long-term and other assets

     

 

309,966

 

   

 

508

 

     

 

1,028

 

     

 

576,160

 

     

 

—  

 

   

 

(270,137

)

     

 

617,525

 

      
  
    
    
    
  
    
      

$

850,832

 

   

$

101,111

 

     

$

1,769

 

     

$

579,595

 

     

$

389

 

   

$

(294,771

)

     

$

1,238,925

 

      
  
    
    
    
  
    

CAPITALIZATION AND LIABILITIES

                                                                         

CURRENT LIABILITIES:

                                                                         

Current maturities of long-term debt

     

$

171,000

 

   

$

—  

 

     

$

—  

 

     

$

1,600

 

     

$

—

 

   

$

—

 

     

$

172,600

 

Notes payable

     

 

14,557

 

   

 

—  

 

     

 

—  

 

     

 

—  

 

     

 

—  

 

   

 

(14,557

)

     

 

—  

 

Accounts payable

     

 

9,543

 

   

 

48,341

 

     

 

—  

 

     

 

6

 

     

 

70

 

   

 

(15,973

)

     

 

41,987

 

Other current liabilities

     

 

25,532

 

   

 

11,341

 

     

 

60

 

     

 

4,500

 

     

 

(2,687

)

   

 

5,897

 

     

 

44,643

 

      
  
    
    
    
  
    

Total current liabilities

     

 

220,632

 

   

 

59,682

 

     

 

60

 

     

 

6,106

 

     

 

(2,617

)

   

 

(24,633

)

     

 

259,230

 

      
  
    
    
    
  
    

LONG-TERM AND OTHER LIABILITIES:

                                                                         

Deferred purchased power and fuel costs

     

 

23,656

 

   

 

—  

 

     

 

—  

 

     

 

—  

 

     

 

—  

 

   

 

—  

 

     

 

23,656

 

Accumulated deferred income taxes

     

 

148,971

 

   

 

(16

)

     

 

—  

 

     

 

(9,975

)

     

 

—  

 

   

 

132

 

     

 

139,112

 

Accumulated deferred investment tax credits

     

 

19,333

 

   

 

—  

 

     

 

—  

 

     

 

—  

 

     

 

—  

 

   

 

—  

 

     

 

19,333

 

Deferred credits

     

 

12,751

 

   

 

752

 

     

 

—  

 

     

 

871

 

     

 

—  

 

   

 

26,132

 

     

 

40,506

 

      
  
    
    
    
  
    

Total long-term and other liabilities

     

 

204,711

 

   

 

736

 

     

 

—  

 

     

 

(9,104

)

     

 

—  

 

   

 

26,264

 

     

 

222,607

 

      
  
    
    
    
  
    

LONG-TERM DEBT, LESS CURRENT MATURITIES

     

 

174,495

 

   

 

—  

 

     

 

—  

 

     

 

344,700

 

     

 

—  

 

   

 

—  

 

     

 

519,195

 

      
  
    
    
    
  
    

REDEEMABLE CUMULATIVE PREFERRED STOCK

     

 

—  

 

   

 

—  

 

     

 

—  

 

     

 

140,452

 

     

 

—  

 

   

 

—  

 

     

 

140,452

 

      
  
    
    
    
  
    

COMMON SHAREHOLDER'S EQUITY:

                                                                         

Common stock

     

 

107

 

   

 

1

 

     

 

100

 

     

 

100,000

 

     

 

1

 

   

 

(209

)

     

 

100,000

 

Other paid-in-capital

     

 

197,751

 

   

 

24,399

 

     

 

400

 

     

 

—  

 

     

 

32,994

 

   

 

(255,544

)

     

 

—  

 

Retained earnings (deficit)

     

 

54,516

 

   

 

16,293

 

     

 

1,209

 

     

 

(856

)

     

 

(29,989

)

   

 

(42,029

)

     

 

(856

)

Accumulated other comprehensive loss

     

 

(1,380

)

   

 

—  

 

     

 

—  

 

     

 

(1,703

)

     

 

—  

 

   

 

1,380

 

     

 

(1,703

)

      
  
    
    
    
  
    

Total common shareholder's equity

     

 

250,994

 

   

 

40,693

 

     

 

1,709

 

     

 

97,441

 

     

 

3,006

 

   

 

(296,402

)

     

 

97,441

 

      
  
    
    
    
  
    
      

$

850,832

 

   

$

101,111

 

     

$

1,769

 

     

$

579,595

 

     

$

389

 

   

$

(294,771

)

     

$

1,238,925

 

      
  
    
    
    
  
    

 

 

EXHIBIT B

 

TNP ENTERPRISES, INC. AND SUBSIDIARIES

Financial Data Schedule

For the Period Ending December 31, 2002

(Amounts in Thousands)

 

Item No.

     

Caption Heading

     

Amount

1

     

Total Assets

     

$

1,238,925

2

     

Total Operating Revenues

     

 

687,371

3

     

Net Income

     

 

39,593