(Thousands of Dollars)

September 30, 2016

December 31, 2015

ASSETS

Current Assets:

   Cash and Cash Equivalents

$

40,056

$

23,947

   Receivables, Net

963,279

775,480

   Unbilled Revenues

187,749

202,647

   Taxes Receivable

4,527

305,359

   Fuel, Materials, Supplies and Inventory

311,051

336,476

   Regulatory Assets

752,378

845,843

   Prepayments and Other Current Assets

155,612

129,034

Total Current Assets

2,414,652

2,618,786

Property, Plant and Equipment, Net

20,807,943

19,892,441

Deferred Debits and Other Assets:

   Regulatory Assets

3,469,879

3,737,960

   Goodwill

3,519,401

3,519,401

   Marketable Securities

525,809

516,478

   Other Long-Term Assets

344,653

295,243

Total Deferred Debits and Other Assets

7,859,742

8,069,082

Total Assets

$

31,082,337

$

30,580,309

LIABILITIES AND CAPITALIZATION

Current Liabilities:

   Notes Payable

$

734,500

$

1,160,953

   Long-Term Debt - Current Portion

373,883

228,883

   Accounts Payable

679,505

813,646

   Obligations to Third Party Suppliers

166,845

128,564

   Regulatory Liabilities

160,442

107,759

   Other Current Liabilities

526,853

549,985

Total Current Liabilities

2,642,028

2,989,790

Deferred Credits and Other Liabilities:

   Accumulated Deferred Income Taxes

5,442,856

5,147,678

   Regulatory Liabilities

550,162

513,595

   Derivative Liabilities

427,382

337,102

   Accrued Pension, SERP and PBOP

1,116,240

1,407,288

   Other Long-Term Liabilities

875,589

871,499

Total Deferred Credits and Other Liabilities

8,412,229

8,277,162

Capitalization:

   Long-Term Debt

9,235,128

8,805,574

   Noncontrolling Interest - Preferred Stock of Subsidiaries

155,568

155,568

   Equity:

       Common Shareholders' Equity:

       Common Shares

1,669,392

1,669,313

       Capital Surplus, Paid In

6,256,580

6,262,368

       Retained Earnings

3,087,006

2,797,355

       Accumulated Other Comprehensive Loss

(65,617

)

(66,844

)

       Treasury Stock

(309,977

)

(309,977

)

    Common Shareholders' Equity

10,637,384

10,352,215

Total Capitalization

20,028,080

19,313,357

Total Liabilities and Capitalization

$

31,082,337

$

30,580,309

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(Thousands of Dollars, Except Share Information)

2016

2015

2016

2015

Operating Revenues

$

2,039,706

$

1,933,105

$

5,862,525

$

6,263,597

Operating Expenses:

     Purchased Power, Fuel and Transmission

665,810

702,640

2,001,929

2,549,807

     Operations and Maintenance

324,734

327,283

965,584

977,306

     Depreciation

181,288

167,884

531,781

495,389

     Amortization of Regulatory Assets/(Liabilities), Net

43,942

(16,851

)

56,223

42,587

     Energy Efficiency Programs

149,121

132,107

405,962

380,559

     Taxes Other Than Income Taxes

164,942

150,804

479,219

439,221

         Total Operating Expenses

1,529,837

1,463,867

4,440,698

4,884,869

Operating Income

509,869

469,238

1,421,827

1,378,728

Interest Expense

99,865

92,534

298,568

279,635

Other Income, Net

13,641

5,241

23,689

23,866

Income Before Income Tax Expense

423,645

381,945

1,146,948

1,122,959

Income Tax Expense

156,446

144,146

428,186

420,640

Net Income

267,199

237,799

718,762

702,319

Net Income Attributable to Noncontrolling Interests

1,880

1,879

5,639

5,639

Net Income Attributable to Common Shareholders

$

265,319

$

235,920

$

713,123

$

696,680

Basic Earnings Per Common Share

$

0.83

$

0.74

$

2.24

$

2.20

Diluted Earnings Per Common Share

$

0.83

$

0.74

$

2.24

$

2.19

Dividends Declared Per Common Share

$

0.45

$

0.42

$

1.34

$

1.25

Weighted Average Common Shares Outstanding:

   Basic

317,787,836

317,452,212

317,696,823

317,296,107

   Diluted

318,577,079

318,405,269

318,511,609

318,396,042

For the Nine Months Ended September 30,

(Thousands of Dollars)

2016

2015

Operating Activities:

    Net Income

$

718,762

$

702,319

    Adjustments to Reconcile Net Income to Net Cash Flows Provided by Operating Activities:

       Depreciation

531,781

495,389

       Deferred Income Taxes

301,413

153,353

       Pension, SERP and PBOP Expense

31,627

71,802

       Pension and PBOP Contributions

(121,854

)

(162,880

)

       Regulatory Overrecoveries, Net

152,808

31,874

       Amortization of Regulatory Assets, Net

56,223

42,587

       Other

(27,671

)

(39,822

)

    Changes in Current Assets and Liabilities:

       Receivables and Unbilled Revenues, Net

(191,454

)

(148,442

)

       Fuel, Materials, Supplies and Inventory

25,425

47,380

       Taxes Receivable/Accrued, Net

347,898

383,047

       Accounts Payable

(121,513

)

(233,660

)

       Other Current Assets and Liabilities, Net

(53,077

)

8,370

Net Cash Flows Provided by Operating Activities

1,650,368

1,351,317

Investing Activities:

    Investments in Property, Plant and Equipment

(1,359,171

)

(1,177,285

)

    Proceeds from Sales of Marketable Securities

444,209

556,582

    Purchases of Marketable Securities

(437,197

)

(535,044

)

    Other Investing Activities

(9,463

)

(2,769

)

Net Cash Flows Used in Investing Activities

(1,361,622

)

(1,158,516

)

Financing Activities:

    Cash Dividends on Common Shares

(423,471

)

(397,363

)

    Cash Dividends on Preferred Stock

(5,639

)

(5,639

)

    Decrease in Notes Payable

(426,453

)

(387,575

)

    Issuance of Long-Term Debt

800,000

825,000

    Retirements of Long-Term Debt

(200,000

)

(216,700

)

    Other Financing Activities

(17,074

)

(13,446

)

Net Cash Flows Used in Financing Activities

(272,637

)

(195,723

)

Net Increase/(Decrease) in Cash and Cash Equivalents

16,109

(2,922

)

Cash and Cash Equivalents - Beginning of Period

23,947

38,703

Cash and Cash Equivalents - End of Period

$

40,056

$

35,781