UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
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For the Quarterly Period Ended March 31, 2003 | ||
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
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For the Transition Period From ____________ to ____________ | ||
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| Commission File Number | |||
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| 1-10290 | |||
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| Duquesne Light Company | |||
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| (Exact name of registrant as specified in its charter) | |||
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| Pennsylvania |
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25-0451600 | |
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| (State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) | |
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| 411 Seventh Avenue Pittsburgh, Pennsylvania |
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15219 | |
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| (Address of principal executive offices) |
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(Zip Code) | |
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| Registrant’s telephone number, including area code: (412) 393-6000 | |||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days.
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No o |
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
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No o |
Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date:
All 10 shares of Duquesne Light Company Common Stock outstanding as of April 30, 2003 are owned by DQE, Inc.
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements.
Duquesne Light Condensed Consolidated Statements of Income (Unaudited)
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(Millions of Dollars) |
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Three Months Ended March 31, |
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2003 |
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2002 |
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| Operating Revenues: |
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| Retail sales of electricity |
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$ |
193.4 |
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$ |
244.2 |
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| Other |
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5.9 |
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5.2 |
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| Total Operating Revenues |
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199.3 |
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249.4 |
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| Operating Expenses: |
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| Purchased power |
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96.4 |
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98.9 |
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| Other operating and maintenance |
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29.4 |
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25.5 |
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| Depreciation and amortization |
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21.5 |
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74.3 |
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| Taxes other than income taxes |
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13.5 |
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15.9 |
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| Income taxes |
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9.5 |
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6.6 |
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| Total Operating Expenses |
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170.3 |
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221.2 |
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| Operating Income |
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29.0 |
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28.2 |
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| Other Income - Net |
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3.4 |
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7.6 |
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| Income Before Interest and Other Charges |
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32.4 |
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35.8 |
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| Interest Charges |
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12.6 |
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14.9 |
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| Company Obligated Mandatorily Redeemable Preferred Securities Dividend Requirements |
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3.1 |
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3.1 |
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| Net Income |
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16.7 |
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17.8 |
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| Dividends on Preferred and Preference Stock |
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0.8 |
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0.8 |
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| Earnings Available for Common Stock |
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$ |
15.9 |
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$ |
17.0 |
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See notes to condensed consolidated financial statements.
2
Duquesne Light Condensed Consolidated Balance Sheets (Unaudited)
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(Millions of Dollars) |
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March 31, |
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December 31, |
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| ASSETS |
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| Property, Plant and Equipment: |
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| Gross property, plant and equipment |
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$ |
2,027.7 |
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$ |
2,018.9 |
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| Less: Accumulated depreciation and amortization |
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(663.4 |
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(654.0 |
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| Total Property, Plant and Equipment – Net |
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1,364.3 |
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1,364.9 |
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| Long-Term Investments |
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19.3 |
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23.7 |
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| Current Assets: |
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| Investment in DQE Capital cash pool |
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310.4 |
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345.9 |
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| Receivables |
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356.6 |
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377.7 |
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| Other |
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62.6 |
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40.5 |
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| Total Current Assets |
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729.6 |
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764.1 |
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| Other Non-Current Assets: |
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| Regulatory assets |
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280.1 |
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280.3 |
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| Transition costs |
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17.6 |
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24.1 |
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| Other |
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30.5 |
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31.1 |
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| Total Other Non-Current Assets |
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328.2 |
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335.5 |
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| Total Assets |
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$ |
2,441.4 |
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$ |
2,488.2 |
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| LIABILITIES AND CAPITALIZATION |
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| Capitalization: |
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| Common stock (authorized - 90,000,000 shares, issued and outstanding - 10 shares) |
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$ |
— |
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$ |
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| Capital surplus |
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483.3 |
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483.3 |
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| Retained earnings |
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48.3 |
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41.4 |
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| Accumulated other comprehensive loss |
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(5.9 |
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(3.7 |
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| Total Common Stockholder’s Equity |
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525.7 |
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521.0 |
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| Company obligated mandatorily redeemable preferred securities |
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150.0 |
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150.0 |
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| Preferred and preference stock |
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69.8 |
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69.8 |
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| Long-term debt |
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959.5 |
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959.5 |
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| Total Capitalization |
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1,705.0 |
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1,700.3 |
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| Current Liabilities: |
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| Accounts payable |
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84.0 |
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88.6 |
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| Payable to affiliates |
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64.3 |
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107.4 |
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| Other |
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63.3 |
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65.4 |
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| Total Current Liabilities |
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211.6 |
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261.4 |
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| Non-Current Liabilities: |
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| Deferred income taxes – net |
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390.5 |
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389.9 |
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| Warwick mine liability |
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29.6 |
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30.0 |
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| Other |
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104.7 |
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106.6 |
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| Total Non-Current Liabilities |
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524.8 |
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526.5 |
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| Commitments and contingencies (Note F) |
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| Total Capitalization and Liabilities |
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$ |
2,441.4 |
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$ |
2,488.2 |
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See notes to condensed consolidated financial statements.
3
Duquesne Light Condensed Consolidated Statements of Cash Flows (Unaudited)
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(Millions of Dollars) |
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Three Months Ended March 31, |
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2003 |
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2002 |
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| Cash Flows From Operating Activities: |
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| Operations |
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$ |
37.8 |
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$ |
85.0 |
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| Investment in DQE capital cash pool |
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35.5 |
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(53.9 |
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| Changes in working capital other than cash |
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(34.0 |
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(0.5 |
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| Other |
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(0.6 |
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(4.2 |
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| Net Cash Provided By Operating Activities |
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38.7 |
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26.4 |
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| Cash Flows From Investing Activities: |
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| Capital expenditures |
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(14.0 |
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(13.9 |
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| Proceeds from sale of investments |
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— |
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1.3 |
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| Other |
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0.3 |
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(1.7 |
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| Net Cash Used In Investing Activities |
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(13.7 |
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(14.3 |
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| Cash Flows From Financing Activities: |
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| Loan to DQE |
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— |
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(98.0 |
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| Commercial paper borrowings |
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— |
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98.0 |
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| Dividends on capital stock |
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(25.0 |
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(12.8 |
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| Other |
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— |
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0.7 |
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| Net Cash Used In Financing Activities |
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(25.0 |
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(12.1 |
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| Net increase in cash and temporary cash investments |
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— |
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— |
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| Cash and temporary cash investments at beginning of period |
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— |
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— |
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| Cash and Temporary Cash Investments at End of Period |
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$ |
— |
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$ |
— |
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See notes to condensed consolidated financial statements.
Duquesne Light Condensed Consolidated Statements of Comprehensive Income (Unaudited)
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(Millions of Dollars) |
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Three Months Ended March 31, |
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2003 |
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| Net income |
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$ |
16.7 |
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$ |
17.8 |
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| Other comprehensive income: |
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| Unrealized holding (losses) gains arising during the period, net of tax of $(1.5) and $1.2 |
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(2.2 |
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1.8 |
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| Comprehensive Income |
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$ |
14.5 |
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$ |
19.6 |
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