EX-99.2 3 c88678exv99w2.htm EXHIBIT 99.2 Exhibit 99.2
Exhibit 99.2
UniSource Energy Corporation
Supplemental Earnings & Outlook Information
August 3, 2009
SAFE HARBOR AND NON-GAAP MEASURES
This document contains forward-looking information that involves risks and uncertainties, that include, but are not limited to: state and federal regulatory and legislative decisions and actions; regional economic and market conditions which could affect customer growth and energy usage; weather variations affecting energy usage; the cost of debt and equity capital and access to capital markets; the performance of the stock market and changing interest rate environment, which affect the value of the company’s pension and other postretirement benefit plan assets and the related contribution requirements and expense; unexpected increases in O&M expense; resolution of pending litigation matters; changes in accounting standards; changes in critical accounting estimates; the ongoing restructuring of the electric industry; changes to long-term contracts; the cost of fuel and power supplies; performance of TEP’s generating plants; and other factors listed in UniSource Energy’s Form 10-K and 10-Q filings with the Securities and Exchange Commission. The preceding factors may cause future results to differ materially from historical results or from outcomes currently expected by UniSource Energy.
The Company’s press releases and other communications may include certain non-Generally Accepted Accounting Principles (GAAP) financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s financial statements.
Non-GAAP financial measures utilized by the Company include presentations of revenues, operating expenses, operating income and earnings (loss) per share. The Company uses these non-GAAP measures to evaluate the operations of the Company. Certain non-GAAP financial measures utilized by the Company exclude: the impact of non-recurring items: the effect of accounting changes or adjustments; expenses that are reimbursed by third parties; and other items. The Company’s management believes that these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of fundamental changes in the earnings or cash flow capacity of the Company’s operations. Management also believes that the presentation of the non-GAAP financial measures is largely consistent with its past practice, as well as industry practice in general, and will enable investors and analysts to compare current non-GAAP measures with non-GAAP measures with respect to prior periods.

 

 

 

YEAR OVER YEAR VARIANCE EXPLANATION
                                 
    2nd Quarter     Year-to-Date June 30  
$ in millions   Pre-Tax     After Tax     Pre-Tax     After Tax  
2008 UniSource Energy Net Income
           $ 4.7             $ 2.1  
 
                                
TEP 2009 vs. 2008
                                
Change in Revenues
                                
Higher retail revenues (excluding REST and DSM revenues) due to higher base rates and the PPFAC.
     11.8       7.1       6.7       4.0  
 
                                
Lower long-term wholesale electric and transmission revenues due to lower sales volumes.
     (3.8 )     (2.3 )     (4.6 )     (2.8 )
 
                                
Change in PPFAC-Related Expenses
                                
Lower fuel and purchased power expense (net of short-term wholesale revenues) resulting from lower retail sales volumes and a decline in commodity prices.
     8.4       5.0       23.5       14.1  
 
                        
 
Change in TEP Utility Gross Margin
   $ 16.4     $ 9.8     $ 25.6     $ 15.4  
 
                                
Change in Other Operating Expenses
                                
Higher Base O&M due primarily to an increase in plant outage and maintenance costs, as well as an increase in pension expense.
     (7.8 )     (4.7 )     (19.6 )     (11.8 )
 
                                
Higher depreciation and amortization due to: additions to plant in service; new depreciation rates for generation assets and amortization of regulatory assets resulting from the 2008 TEP Rate Order; and an adjustment related to an investment in lease equity made in 2006.
     (11.1 )     (6.7 )     (14.8 )     (8.9 )
 
                                
Other Income
     6.9       4.1       5.1       3.1  
 
                                
Lower interest expense due to: lower rates on variable rate debt; lower balances of capital lease obligations; and an adjustment related to an investment in lease equity made in 2006.
     4.4       2.6       7.4       4.4  
 
                                
Other Changes
     4.1       2.5       5.9       3.5  
 
                        
Change in TEP’s Other Operating Expenses
   $ (3.5 )   $ (2.1 )   $ (16.0 )   $ (9.6 )
 
                                
Change in Regulatory Refunds and Amortization of TRA
                                
Deferral of Revenues after TRA amortized in May 2008
     14.9       8.9       14.9       8.9  
TRA amortization expense in 2008
     6.7       4.0       23.9       14.3  
 
                        
 
Total TEP Change 2009 vs. 2008
   $ 34.5     $ 20.7     $ 48.4     $ 29.0  
 
                        
 
                                
Other Changes 2009 vs. 2008
                                
 
                                
UNS Gas Change in Net Income
             (0.3 )             (1.7 )
Mild weather resulted in lower retail therm sales.
                                
 
                                
UNS Electric Change in Net Income
             0.8               1.1  
Rate increase in June 2008 and a new mining customer
                                
 
                                
Other
             5.4               5.7  
After-tax gain at Millennium from the sale of Sabinas ($3.6 million). Also includes results of UED and consolidating adjustments.
                                
 
                        
Total Change in UNS Net Income
             26.6               34.1  
 
                        
 
                                
2009 UniSource Energy Net Income
           $ 31.3             $ 36.2  
 
                        

 

 

 

TEP UTILITY GROSS MARGIN RECONCILIATION
                                 
    YTD Jun 30     YTD Jun 30     Q2     Q2  
(millions)   2009     2008     2009     2008  
Retail Electric Revenues* (Excluding DSM & REST)
   $ 372.7     $ 366.0     $ 217.2     $ 205.4  
Long-Term Wholesale Electric Sales
     24.3       28.7       10.1       13.2  
Wholesale Transmission Revenues
     8.3       8.5       4.4       5.1  
 
                        
Total
   $ 405.3     $ 403.2     $ 231.7     $ 223.7  
 
                                
Less Fuel, Purchased Power and Transmission Expense
                                
Fuel
     116.5       143.2       65.0       74.0  
Reimbursed Fuel
     (2.2 )     (2.9 )     (1.2 )     (1.9 )
Purchased Power
     59.4       110.8       36.4       78.5  
Increase (Decrease) to Reflect PPFAC Recovery
     (4.0 )     0.0       (3.6 )     0.0  
Transmission
     1.8       4.5       1.3       2.4  
Short-Term Wholesale Electric Sales
     (37.1 )     (97.7 )     (17.5 )     (64.2 )
 
                        
Net Fuel, Purchased Power and Transmission Expense
     134.4       157.9       80.4       88.8  
 
                                
 
                        
Utility Gross Margin (non-GAAP)
   $ 270.9     $ 245.3     $ 151.3     $ 134.9  
 
                        
 
                                
Reconciling Line Items to Operating Income
                                
CTC Revenue Subject to Refund
     0.0       (14.9 )     0.0       (14.9 )
Other Revenue
     37.3       35.3       19.6       21.0  
REST & DSM Revenues
     5.1       1.4       2.8       0.1  
FAS 71 Reinstatement Included in Fuel Expense
     N/A       N/A       N/A       N/A  
 
                                
Other Operating Expenses (Income):
                                
Reimbursed Fuel
     2.2       2.9       1.2       1.9  
Other Operations & Maintenance
     143.8       120.1       69.1       61.5  
Depreciation & Amortization
     76.8       62.0       41.8       30.7  
Amortization of Transition Recovery Asset
     0.0       23.9       0.0       6.7  
Taxes Other Than Income Taxes
     20.3       21.0       10.0       10.5  
 
                        
 
                                
Operating Income (GAAP)
   $ 70.2     $ 37.2     $ 51.6     $ 29.8  
 
                        

 

 

 

TEP UTILITY GROSS MARGIN RECONCILIATION (CONT’D)
                                 
    Q1     Q1     Q4     Q3  
(millions)   2009     2008     2008     2008  
Retail Electric Revenues* (Excluding DSM & REST)
   $ 155.4     $ 160.6     $ 172.4     $ 258.7  
Long-Term Wholesale Electric Sales
     14.1       15.4       14.9       14.5  
Wholesale Transmission Revenues
     3.9       2.7       4.9       4.3  
 
                        
Total
   $ 173.4     $ 178.7     $ 192.2     $ 277.5  
 
                                
Less Fuel, Purchased Power and Transmission Expense
                                
Fuel
     51.4       69.2       37.3       107.2  
Reimbursed Fuel
     (1.0 )     (1.0 )     (0.8 )     (1.3 )
FAS 71 Reinstatement Included in Fuel Expense
     N/A       N/A       24.0       N/A  
Purchased Power
     23.0       32.2       26.8       100.4  
Increase (Decrease) to Reflect PPFAC Recovery
     (0.4 )     0.0       0.0       0.0  
Transmission
     0.5       2.0       1.1       5.0  
Short-Term Wholesale Electric Sales
     (19.6 )     (34.2 )     (32.2 )     (54.1 )
 
                        
Net Fuel, Purchased Power and Transmission Expense
     53.9       68.2       56.2       157.2  
 
                        
 
                                
Utility Gross Margin (non-GAAP)
   $ 119.5     $ 110.5     $ 136.0     $ 120.3  
 
                        
 
                                
Reconciling Line Items to Operating Income
                                
CTC Revenue Subject to Refund
     0.0       0.0       (13.7 )     (29.5 )
Other Revenue
     17.8       14.4       19.6       20.0  
REST & DSM Revenues
     2.4       1.3       2.8       1.2  
FAS 71 Reinstatement Included in Fuel Expense
     N/A       N/A       24.0       N/A  
 
                                
Other Operating Expenses (Income):
                                
Reimbursed Fuel
     1.0       1.0       0.8       1.3  
FAS 71 Reinstatement Included in Fuel Expense
                                
Other Operations & Maintenance**
     74.7       58.6       72.5       63.9  
Depreciation & Amortization
     35.1       31.3       32.8       31.2  
Amortization of Transition Recovery Asset
     0.0       17.3       0.0       0.0  
Taxes Other Than Income Taxes
     10.3       10.5       2.5       8.1  
 
                        
Operating Income (GAAP)
   $ 18.6     $ 7.5     $ 60.1     $ 7.5  
 
                        
     
**   O&M Expense in Q3 and Q4 2008 excludes transmission expense since it is recorded as part of fuel and purchased power expense in the calculation of gross margin.

 

 

 

 
TEP — RETAIL AND LONG-TERM WHOLESALE REVENUES
                         
    YTD Jun 30     Q2     Q1  
    2009     2009     2009  
RETAIL NON-FUEL REVENUES* (MILLIONS)
                        
Residential
   $ 107.2     $ 61.9     $ 45.3  
Commercial
     73.0       42.6       30.3  
Industrial
     47.4       25.7       21.8  
Mining
     16.0       7.8       8.2  
Other
     6.0       3.7       2.3  
 
                  
Total
   $ 249.5     $ 141.6     $ 107.9  
Base Fuel and PPFAC Revenues
     123.1       75.7       47.4  
REST & DSM Revenues
     5.1       2.8       2.4  
 
                  
Total Electric Retail Revenues
   $ 377.7     $ 220.0     $ 157.8  
 
                  
     
*   Retail non-fuel revenues exclude fuel, PPFAC, REST/DSM charges
                         
    YTD Jun 30     Q2     Q1  
    2009     2009     2009  
RETAIL REVENUES (CENTS / KWH)
                        
Avg. Non-Fuel Rates
                        
Residential
     6.39       6.52       6.23  
Commercial
     7.88       8.17       7.51  
Industrial
     4.57       4.67       4.45  
Mining
     3.05       2.93       3.17  
Other
     4.91       5.11       4.64  
 
                  
Total Average Non-Fuel Rate
     5.82       6.01       5.60  
Avg. Base Fuel and PPFAC Rate
     2.87       3.15       2.46  
Avg. REST & DSM Rate
     0.12       0.12       0.12  
 
                  
Avg. Total Retail Rate
     8.81       9.16       8.18  
 
                  
                         
    YTD Jun 30     Q2     Q1  
    2009     2009     2009  
LONG-TERM WHOLESALE GROSS MARGIN* (MILLIONS)
                        
Long-term Wholesae Revenues
   $ 24.3     $ 10.1     $ 14.1  
Fuel and Purchased Power Expense
     13.5       5.8       7.7  
 
                  
Net
   $ 10.8     $ 4.3     $ 6.4  
 
                  

 

 

 

UNISOURCE ENERGY AND TEP BASE O&M RECONCILIATION
                                                 
UniSource Energy   YTD Jun 30     YTD Jun 30     Q2     Q2     Q1     Q1  
O&M Components   2009     2008     2009     2008     2009     2008  
    -millions-     -millions-     -millions-  
TEP Base O&M (Non-GAAP)
   $ 120.9     $ 101.3     $ 57.7     $ 49.9     $ 63.1     $ 51.2  
UNS Gas O&M
     12.4       12.7       6.0       6.3       6.3       6.4  
UNS Electric O&M
     11.1       10.5       5.7       5.9       5.4       4.6  
Consolidating Adjustments & Other
     (5.4 )     (5.5 )     (3.0 )     (3.2 )     (1.4 )     (2.1 )
 
                                    
UniSource Energy Base O&M (Non-GAAP)
   $ 139.0     $ 119.0     $ 66.4     $ 58.9     $ 73.4     $ 60.1  
Reimbursed O&M Related to Springerville Units 3 and 4
     17.8       16.5       8.6       10.4       9.2       6.1  
Expenses Related to Customer-funded Renewable Energy and DSM Programs
     7.1       2.7       3.9       1.4       2.4       1.3  
 
                                    
UniSource Energy O&M (GAAP)
   $ 163.9     $ 138.2     $ 78.9     $ 70.7     $ 85.0     $ 67.5  
 
                                    
                                                 
TEP   YTD Jun 30     YTD Jun 30     Q2     Q2     Q1     Q1  
O&M Components   2009     2008     2009     2008     2009     2008  
    -millions-     -millions-     -millions-  
Wages, A&G, Other
   $ 71.9     $ 70.0     $ 36.6     $ 34.7     $ 35.2     $ 35.1  
Generating Plant Maintenance Expense
     38.1       26.1       15.6       12.6       22.5       13.5  
Pension and Postretirement Benefits Expense
     10.9       5.2       5.5       2.6       5.4       2.6  
 
                                    
TEP Base O&M (Non-GAAP)
   $ 120.9     $ 101.3     $ 57.7     $ 49.9     $ 63.1     $ 51.2  
Reimbursed O&M Related to Springerville Units 3 and 4
     17.8       16.5       8.6       10.4       9.2       6.1  
Expenses Related to Customer-funded Renewable Energy and DSM Programs
     5.1       2.3       2.8       1.2       2.4       1.3  
 
                                    
TEP O&M (GAAP)
   $ 143.8     $ 120.1     $ 69.1     $ 61.5     $ 74.7     $ 58.6  
 
                                    
                 
UniSource Energy   Q3     Q4  
O&M Components   2008     2008  
    -millions-  
TEP Base O&M (Non-GAAP)
   $ 52.4     $ 60.6  
UNS Gas O&M
     5.7       6.7  
UNS Electric O&M
     8.4       7.9  
Consolidating Adjustments & Other
     1.8       (2.2 )
 
            
UniSource Energy Base O&M (Non-GAAP)
   $ 68.3     $ 73.0  
Reimbursed O&M Related to Springerville Units 3 and 4
     9.7       9.0  
Expenses Related to Customer-funded Renewable Energy and DSM Programs
     2.4       3.9  
Transmission Expense
     5.0       1.1  
 
            
UniSource Energy O&M (GAAP)
   $ 80.4     $ 85.9  
 
            
                 
TEP   Q3     Q4  
O&M Components   2008     2008  
    -millions-  
Wages, A&G, Other
   $ 37.5     $ 39.1  
Generating Plant Maintenance Expense
     12.3       18.9  
Pension and Postretirement Benefits Expense
     2.6       2.6  
 
            
TEP Base O&M (Non-GAAP)
   $ 52.4     $ 60.6  
Reimbursed O&M Related to Springerville Units 3 and 4
     9.7       9.0  
Expenses Related to Customer-funded Renewable Energy and DSM Programs
     1.8       2.9  
Transmission Expense
     5.0       1.1  
 
            
TEP O&M (GAAP)
   $ 68.9     $ 73.6  
 
            

 

 

 

TUCSON ELECTRIC POWER — OPERATING STATISTICS
                                                                 
    3 Months Ended June 30     Year-to-Date June 30  
    2009     2008     Incr (Decr)     % Change     2009     2008     Incr (Decr)     % Change  
AVG. ELECTRIC CUSTOMERS
                                                                
Residential
     364,885       362,561       2,324       0.6 %     364,855       362,436       2,419       0.7 %
Commercial
     35,643       35,048       595       1.7 %     35,573       34,968       605       1.7 %
Industrial
     628       639       (11 )     -1.8 %     632       639       (7 )     -1.1 %
Mining
     2       2       —       0.0 %     2       2       —       0.0 %
Other
     61       61       —       0.0 %     61       61       —       0.0 %
 
                                                
Total
     401,219       398,311       2,908       0.7 %     401,123       398,106       3,017       0.8 %
 
                                                
RETAIL SALES — MWH
                                                                
Residential
     948,839       944,174       4,665       0.5 %     1,676,017       1,717,013       (40,996 )     -2.4 %
Commercial
     521,696       541,676       (19,980 )     -3.7 %     925,559       957,134       (31,575 )     -3.3 %
Industrial
     549,331       566,782       (17,451 )     -3.1 %     1,038,839       1,084,262       (45,423 )     -4.2 %
Mining
     264,925       277,426       (12,501 )     -4.5 %     523,619       543,880       (20,261 )     -3.7 %
Other
     71,599       72,974       (1,375 )     -1.9 %     121,615       127,826       (6,211 )     -4.9 %
 
                                                
Total
     2,356,390       2,403,032       (46,642 )     -1.9 %     4,285,649       4,430,115       (144,466 )     -3.3 %
 
                                                
RETAIL USAGE — KWH/CUSTOMER
                                                                
Residential
     2,600       2,604       (4 )     -0.1 %     4,594       4,737       (144 )     -3.0 %
Commercial
     14,637       15,455       (819 )     -5.3 %     26,019       27,372       (1,353 )     -4.9 %
Industrial
     875,195       886,983       (11,787 )     -1.3 %     1,643,733       1,696,811       (53,078 )     -3.1 %
Mining
     132,462,500       138,713,000       (6,250,500 )     -4.5 %     261,809,500       271,940,000       (10,130,500 )     -3.7 %
Other
     1,173,754       1,196,295       (22,541 )     -1.9 %     1,993,689       2,095,508       (101,820 )     -4.9 %
 
                                                
Total
     5,873       6,033       (160 )     -2.7 %     10,684       11,128       (444 )     -4.0 %
 
                                                
RETAIL REVENUES — MILLIONS
                                                                
Residential
   $ 93.5     $ 88.1     $ 5.4       6.2 %   $ 157.9     $ 153.1     $ 4.8       3.1 %
Commercial
     59.1       56.6       2.5       4.4 %     99.6       98.9       0.7       0.7 %
Industrial
     42.9       41.9       1.0       2.4 %     76.7       78.2       (1.5 )     -1.9 %
Mining
     16.0       14.1       1.9       13.4 %     29.0       27.5       1.5       5.5 %
Other
     5.8       5.4       0.4       7.9 %     9.4       9.5       (0.1 )     -1.1 %
 
                                                
Total
   $ 217.2     $ 206.0     $ 11.3       5.5 %   $ 372.6     $ 367.2     $ 5.4       1.5 %
 
                                                
DSM / REST
     2.8       (0.5 )     3.3       N/M       5.2       0.2       5.0       N/M  
 
                                                
Total Retail Revenues
   $ 220.0     $ 205.5     $ 14.6       7.1 %   $ 377.8     $ 367.4     $ 10.4       2.8 %
 
                                                
 
                                                                
WEATHER — COOLING DEGREE DAYS
                                                                
Actual
     417       420       (3 )     -0.7 %     417       420       (3 )     -0.7 %
10-Year Average
     440       457                       441       457                  
% Change Actual vs. 10-Year Avg.
     -5.2 %     -8.1 %                     -5.4 %     -8.1 %                
 
                                                                
ENERGY MARKET INDICATORS
                                                                
Avg. Wholesale Power Prices
                                                                
Palo Verde Index — $/MWh
                                                                
On Peak
   $ 30.46     $ 91.94     $ (61.48 )     -66.9 %   $ 32.11     $ 81.02     $ (48.91 )     -60.4 %
Off Peak
   $ 19.16     $ 63.55     $ (44.39 )     -69.9 %   $ 22.48     $ 61.89     $ (39.41 )     -63.7 %
 
                                                                
Avg. Natural Gas Prices
                                                                
Permian Index — $/MMBtu
   $ 2.76     $ 9.44     $ (6.68 )     -70.8 %   $ 3.17     $ 8.37     $ (5.20 )     -62.1 %

 

 

 

UNS GAS — OPERATING STATISTICS
                                                                 
    3 Months Ended June 30     6 Months Ended June 30  
    2009     2008     Incr (Decr)     % Change     2009     2008     Incr (Decr)     % Change  
AVG. GAS CUSTOMERS
                                                                
Residential
     132,414       132,316       98       0.1 %     132,813       132,862       (49 )     0.0 %
Commercial
     11,371       11,448       (77 )     -0.7 %     11,449       11,532       (83 )     -0.7 %
All Other
     1,109       1,104       5       0.5 %     1,108       1,105       3       0.3 %
 
                                                
Total
     144,894       144,868       26       0.0 %     145,370       145,499       (129 )     -0.1 %
 
                                                
 
RETAIL SALES — THOUSANDS OF THERMS
                                                                
Residential
     9,797       9,933       (136 )     -1.4 %     39,366       44,727       (5,361 )     -12.0 %
Commercial
     5,343       5,429       (86 )     -1.6 %     15,717       17,588       (1,871 )     -10.6 %
All Other
     1,279       1,203       76       6.3 %     4,803       5,423       (620 )     -11.4 %
 
                                                
Total
     16,419       16,565       (146 )     -0.9 %     59,886       67,738       (7,852 )     -11.6 %
 
                                                
 
RETAIL USAGE — THERMS/CUSTOMER
                                                                
Residential
     74.0       75.1       (1 )     -1.4 %     296       337       (40 )     -12.0 %
Commercial
     469.8       474.2       (4 )     -0.9 %     1,373       1,525       (152 )     -10.0 %
 
RETAIL REVENUES — MILLIONS
                                                                
Non-Fuel Revenues:
                                                                
Residential
   $ 6.6     $ 6.7       (0.1 )     -1.3 %   $ 19.5     $ 21.4       (1.9 )     -8.8 %
Commercial
     1.9       1.9       (0.0 )     -1.5 %     5.0       5.6       (0.5 )     -9.6 %
All Other
     0.3       0.3       0.0       4.5 %     1.1       1.3       (0.1 )     -11.4 %
 
                                                
Total
   $ 8.8     $ 8.9     $ (0.1 )     -1.2 %   $ 25.6     $ 28.2     $ (2.6 )     -9.1 %
 
                                                
DSM Revenues
     0.1       0.1       0.0       3.1 %     0.2       0.1       0.1       106.2 %
Transport/NSP Revenues
     3.4       8.9       (5.4 )     -61.2 %     8.7       14.7       (5.4 )     -36.8 %
Fuel Revenues:
                                                                
Recovered from Customers
     13.5       14.1       (0.6 )     -4.1 %     50.7       54.3       (3.7 )     -6.8 %
 
                                                
Total Gas Revenues
   $ 25.8     $ 31.9     $ (6.1 )     -19.1 %   $ 85.2     $ 97.3     $ (12.1 )     -12.4 %
 
                                                
 
                                                                
WEATHER — HEATING DEGREE DAYS
                                                                
Actual
     2,752       3,406       (654 )     -19.2 %     13,880       16,033       (2,153 )     -13.4 %
10-Year Average
     3,034       2,633                       14,994       13,095                  
% Change Actual vs. 10-Year Avg.
     -9.3 %     29.4 %                     -7.4 %     22.4 %                
UNS ELECTRIC — OPERATING STATISTICS
                                                                 
    3 Months Ended June 30     6 Months Ended June 30  
    2009     2008     Incr (Decr)     % Change     2009     2008     Incr (Decr)     % Change  
AVG. ELECTRIC CUSTOMERS
                                                                
Residential
     79,496       79,459       37       0.0 %     79,452       79,468       (16 )     0.0 %
Commercial
     10,342       10,331       11       0.1 %     10,343       10,320       23       0.2 %
All Other
     285       273       12       4.4 %     283       272       11       4.0 %
 
                                                
Total
     90,123       90,063       60       0.1 %     90,078       90,060       18       0.0 %
 
                                                
 
                                                                
RETAIL SALES — MWH
                                                                
Residential
     184,126       183,678       448       0.2 %     350,696       366,998       (16,302 )     -4.4 %
Commercial
     159,585       167,487       (7,902 )     -4.7 %     293,235       302,029       (8,794 )     -2.9 %
Industrial
     49,478       47,788       1,690       3.5 %     87,834       92,575       (4,741 )     -5.1 %
Mining
     39,680       6,247       33,433     NM       73,607       11,751       61,856     NM  
Other
     476       571       (95 )     -16.6 %     1,087       1,179       (92 )     -7.8 %
 
                                                
Total
     433,345       405,771       27,574       6.8 %     806,459       774,532       31,927       4.1 %
 
                                                
 
                                                                
RETAIL USAGE — KWH/CUSTOMER
                                                                
Residential
     2,316       2,312       5       0.2 %     4,414       4,618       (204 )     -4.4 %
Commercial
     15,431       16,212       (781 )     -4.8 %     28,351       29,266       (915 )     -3.1 %
 
                                                                
RETAIL REVENUES — MILLIONS
                                                                
Non-Fuel Revenues:
                                                                
Residential
   $ 4.7     $ 5.4       (0.6 )     -11.8 %   $ 9.0     $ 11.1       (2.1 )     -18.7 %
Commercial
     5.8       5.8       0.0       0.8 %     10.8       10.1       0.7       7.3 %
Industrial
     1.6       0.3       1.2     NM       3.5       0.8       2.7     NM  
Mining
     0.8       0.5       0.4       80.3 %     1.1       0.5       0.6     NM  
Other
     0.1       0.1       (0.0 )     -14.5 %     0.1       0.1       (0.0 )     -4.4 %
 
                                                
Total
   $ 13.0     $ 12.0     $ 1.0       8.4 %   $ 24.6     $ 22.6     $ 2.0       8.8 %
 
                                                
DSM / REST
     1.0       0.1       0.9     NM       1.7       0.1       1.5     NM  
Fuel Revenues:
                                                                
Recovered from Customers
     33.2       31.1       2.1       6.6 %     64.5       57.0       7.5       13.2 %
 
                                                
Total Retail Revenues
   $ 47.2     $ 43.3     $ 3.9       9.1 %   $ 90.8     $ 79.7     $ 11.0       13.8 %
 
                                                
 
                                                                
WEATHER — COOLING DEGREE DAYS
                                                                
Actual
     2,967       2,717       250       9.2 %     3,044       2,805       239       8.5 %
10-Year Average
     2,891       2,682                       3,002       2,971                  
% Change Actual vs. 10-Year Avg.
     2.6 %     1.3 %                     1.4 %     -5.6 %                

 

 

 

BASIC AND DILUTED SHARES OUTSTANDING
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2009     2008     2009     2008  
    -Thousands of Dollars-     -Thousands of Dollars-  
 
Numerator:
                                
Net Income
   $ 31,275     $ 4,747     $ 36,194     $ 2,132  
Income from Assumed Conversion of Convertible Senior Notes
     1,097       —       2,195       —  
 
                        
Adjusted Numerator
   $ 32,372     $ 4,747     $ 38,389     $ 2,132  
 
                        
 
                                
Denominator:
                                
Weighted-average Shares of Common Stock Outstanding:
                                
Common Shares Issued
     35,589       35,401       35,573       35,367  
Fully Vested Deferred Stock Units
     98       211       103       218  
 
                        
Total Weighted-average Shares of Common Stock Outstanding-Basic
     35,687       35,612       35,676       35,585  
 
                                
Effect of Dilutive Securities:
                                
Convertible Senior Notes
     4,536       —       4,573       —  
Options and Stock Issuable under Employee Benefit Plans and the Directors’ Plan
     449       563       494       540  
 
                        
Total Shares — Diluted
     40,223       36,175       40,249       36,125  
 
                        
For the three and six months ended June 30, 2008, 4 million potentially dilutive shares from the conversion of convertible senior notes, and after-tax interest expense of $1 million and $2 million, respectively, were not included in the computation of diluted EPS because to do so would be anti-dilutive.
The following table shows the number of stock options to purchase shares of Common Stock excluded from the computation of diluted EPS because the stock option’s exercise price was greater than the average market price of the Common Stock:
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2009     2008     2009     2008  
    -In Thousands-     -In Thousands-  
 
                                
Stock Options Excluded from the Diluted EPS Computation
     395       234       395       314