ML20030D440

Testimony of Rj Lurito Before Public Svc Commission of La Re Fair Rate of Return.Exhibit Encl

ML20030D440
Person / Time
Site:	Waterford
Issue date:	04/30/1981
From:	Lurito R KOSH, LOUISELLE, LURITO & ASSOCIATES, INC.
To:
Shared Package
ML20030D434	List: ML20030D440 ML20030D442 ML20030D446 ML20030D451 ML20030D454 ML20030D456 ML20030D458 ML20030D460 ML20030D467 W3P81-1954, Forwards Financial Info & Testimony Re Organizational Structure,Financial Qualifications & Need for Power of Proposed Consolidation of La Power & Light Co & New Orleans Public Svc,Inc.Also Forwards Annual Financial Repts 1980
References
NUDOCS 8109010393
Download: ML20030D440 (200)

Text

!

)

Before the PUBLIC SEEVICE C019ESSION of the STATE OF IAUISIAEA lI'4 Ex Parte LCUISIAEA POWER & LIGHT COMPANY

[ Docket No, U-14690]

{

-NIT l

l of 1

RItstaan J. IEEITO re FAIR RATE OF EETURN l

l 1

1 6

l April 1981 l

5085 LOUIDELLE LURITO A ASSOCIATES.INC.

1 Aangton. VirENne 8109010393 810031 PDR ADOCK 05000382 T

PD9

Page MIDDLE SOUDI UTILITIES SYSTEM

• COST OF OUTSTANDING DEBT DECEMBER 31, 1981 AM00NT NET ANNUAL COMPOSITE OUTSTANDING COST RATE OIARGES COST RATE COMPANY

($000)

($000)

(A)

(B)

(C)

(D)

(E)

Arkansas Power & Light J/

915,420 8.69 79,537 Arkaness-Missouri Power 1/

28,382 8.42 2,390 Mississippi Power & Light JJ 262,223 7 61 19,951 New Orleans Public Service Jf 126,250 6.95 8,770 Louisiana Power & Light J/

880,883 8.78 77,301 Promissory Notes of SFI and MSU 128,247 14.74 18,901 TOTAL LONG-TERM DEBT: 12/31/80 2,341,405 206,850 8.83 PROFORMA:

Lease Repayment (356) 8.00 (28)

Promissory Notes (174) 14.00 (24)

Maturing Debt (120,262) 8.93 (10,738)

Sinking Fund Requirements (681) 8.09 (55)

Additional Promissory Notes 41,401 14.00 _2/

5,796 Additional Pollution Control Notes 18,620 9.55 1,778 Additional First Mortgage Debt 312,000 14.50.3./

45,240 Short-term Debt 242,176 13.501/

32.694 TOTAL DEBT: 12/31/81 2.834,129 281,513

,9.93 l

1/See Appendix Page 1.

2/Pased on 13.5% entirated Prime Rate plus.5% per terms.

3fErtimated ar 14.50% net cost rate.

4/ Based on estimated cost of commercial :sper and bank borrowings at Prime Rate.

1

• Excludes }EiE.

MSSCOD 1

l l

l

I I

4 9,

p*

i MIDDLE SOUTH UTILITIES, INC.

COST OF PREFERRED STOCK i,

DECEMBER 31, 1981 l

l i

1 AMOUNT NET DIVIDEND COMPOSITE OUTSTANDING PROCEEDS REQUIREMENTS COST RATE COMPANY

($000)

($000)

($000) ___

-t-(A)

(B)

(C)

(D)

(E) i Arkansas Power & Light 1/

272 563 272,731 25,783 9.45 3

Mississippi Power & Light 1/

37,881 38,054 2,364 6.27 New Orleans Public Servica l/

34,780 34,585 3,281 9.49 Louisiana Power & Light 1/

275,500 266,178 28,366 10.66 TOTAL 1,2/31/80 620,724 611,598 59,814 9.78 PR0e0RMA:

2/

Preferred Issued in 1981,

30,000 30,000 4,200 -

1981 Sinking Funds (3,000)

(2,995)

(327)

TOTAL PREFERRED:

12/31/81 647,724 638,603 63,687 9.97 1/See Appendix Page 2.

2/ Based on 14.00% cost rate.

j S

MSICOP g

I i

Page 3 I

i MIDDLE SOUTH UTILITIES AVERAGE BOOK VALUE PER SHARE AND DIVIDENr0 PER SHARE 1965-1921

$40 Pm "L"L _ : _

i Growth In 30 Book Value

e-Period Pe.r Share

1 4:~:

1965-79 5.79%

i 1

20

=

o' i

o o

1. -

1975-79 2.6"'%

g

.q..fi n

nm, o.'

.n.

,i o

.R

.RF N..i ilt

,1 i

I i

iii i

.6

,_. P l. j lL,, T, [

h u

/

l [ l, O

1977-79 2.86%

l l

it is i i' i

i pq y

l ie.i

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l i.o i %

av

..to,'!i iii i ii si it il e

i in 6:

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=-

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=_

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=

1 i

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i Growth In i

i o ',

L

..'l Divideuds l

2.00 l

1

.J 9 il

U l

, ;'1 Period Per Share 1

i o

i

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~

lij

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~',,, -

,6+

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a 1965-79 6.39%

o wm -

u ii

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...,,'o

! it u

i,n on n%

on ni, ph o, un l

n iH iH! N6' hij !Hi iDi hi, !u! ino, a

i !H1 i

i E

1975-79 4.73%

'h hh hh hh^i" "4jhW"#M 'h hI hh I

I 1

E

$1.00 E

5 1977-79 4.95%

.90 n-

--==

m

=

E

.80

.70

=

.60

=

i:

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n=

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=

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a==

.50 gammagemmissammissimum

. _ _imminsimiram mutieschiiimis masi -

inu mm5 1965

'67

'69

' 71

'73

'75

'77

'79

I I

Pega 4 DETROIT EDISON AVERAGE BOOK VALUE PER SHARE

_A_ND DIVIDENDS PER SHARE

_1965-1970 1

$40 Mq.'"""""mulina'miuLumillmumm.umsmemuja m

m u s umig

.2 Growth In 30 Book Value j

Period Per Share t

1

.igi; i

1 1965-79

.95%

~ L

.J ll l

.i

i.

'=r-i

+.

... a -

e n c.

..1 20

'l2 :n _!?'" K,.

,i j

1975-79

.53%

g

.nuc'. m.

oa

n no o.,

.ii

.i i

i i

ai.

,;i u..

,i,.

.p.

,i, u,

1977-79

-,14%

i

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r. i nn.i,;

Fi no o i 46

.e t io ini nei nu ou a i n

i n

i 1

.. no

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o nei.i 'i n

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• H'

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$10

=

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~

7

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==*=*=&~==~-=~J~ -

.-:=.,_----

_... w maammmemems_

$3.00

^

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o 1i l-

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n

!U Gr-wth In i

i

,2.00 l

U_

' ll Dividends

,i

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l l l'. nl l

', l l

lll Period Per Share i.

o

... n

,in

.ui

.i i

i i

um u

.i.

dw' 4F i

'lE i si

.i i

si

,s.

9 t,t.

+

im 1965-79 86%

i.i. niug..

g,.m g".,.:; n :,n o n.

n.

I ci uA_ g

-u no im r.

r.n i;it

.it' i h i sil H

.o n'P i

!g 1975-79 2.21%

i EH H~

H'l to ih il ill i

6

?" %

'u H

UU U UI U U h

I I

I-1

$1.00~

~

1977 -4.39% -

• 90

-=. -

.80

.1

=_

!E

'.70 -

A

.,-m Im

.60

m:

e istiEI L+=

+

_labintam

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umimie'imi

~_

~ ~

z..

- w 1965

'67

'69

'71

'73

'75

'77

'79

Pass 5 i

i 1

FLORIDA POWER CORPORATION AVERAGE BOOK VALUE PER S'dARE l

AND l

DIVIDENDS PER SHARE 1965-1979

$40

~

e

~

Growth In 30

. _ _ 9 '

Book Value

_-~

Period Per Share 1965-79 6.69%

A e

gn 1

J.

l 1

1975-79 5.60%

i a

n'

,e

- a.

j

.gp 1977-79 6.01%

.in a

o.

i

.o o

.o i.i 4.

.a o

.y

,,n

,,,i ni

.o

,,n ii n.

,o, no un on

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o.

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un

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o.,

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---!6l4 uti iill illi.:.1 till

'in i :i uti voi 1 u

10 lillul (I N 11!!

lli !ill till

.:!i Ill

$10 9

~~

8 7

mm l

l

- ~ ~~ $3. 00

'~

1 Growth In 7

0 Dividends-

~

2;oo m

A L

Period Per Share

?

..... a4 1

o

..o

,,, :. ns

~~

lll!l';,,,:. !, *.'~, '..:

n.l

,,,'n,i.'

n,i 1965-79 5.61%

n...

.o

.o i

, no i.n un ni no op

.n no iin nu..

in, no

.n n.

..o o

i, oi:

- t __

ail n a n'!"i si i

i nii i!I tio in! n! !ni in!

I i

li" ni (I

i "i

1975-79 9.12%

iij ll

' ti i ll l ll l

6 till 1:44

!!li list ll lill n't I

i lill !!i ll ll.1 l61 m

i ii !!

I l

till i

i lii':lli lli lill Illt si I il i

int lili it. illi Ill

in p il 1977 10,01% ~

- -- -$1.00

.90

.80 l

-.70

+

.60

.50 musassanummetsiaNiii ~7

~ ~ ibitIKRiikGMB meu

' ~ ~

~

l 1965

'67

'69

'71

'73

'75

'77

'79

Page 6 t

1

(

i l

FLORIDA POWEk AND LIGHT AVERAGE BOOK VALUE PER SHARE l

\\

l AND DIVIDENDS PER SHARE 1965-1979 1

h40 t _.__ _.

.u_.-

m _;.27- _ _

- y __ _ ;. _,,

Growth in u

i

(

30 Period Per Share Book Value l

l

. idr l

C -

O f"'

1965-79 8.45%

l' i

l i tl i

f ifi

'T 20 I

d

.id.,1,.'

1975-79 6.12%

o u.

l i

w a-i i,

o

,o

.iu n-i u o

nii n.

o i.

o.i o,. on..n i

u,

,in in no 7.53%

1977,79 i

,it;

..i iii.

ii !

,ifi H:

iii

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i

.ii

.ii fin 6in ti e

h' l

i.i,.

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-- C.

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.. : _:2. _..... :- :.--4._ _._......

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1 1

l I ________,._.____,___,._-... ; q._

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- _._n _

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_:=

i Growth In i

-~,

F i

, _.- r -

4 Dividends

- 2.00

~

1

,0 hi! hl l'!_.lll Period Per Share

.i.

- w...o n.,

.ni un in

,.n 3-q qr ii,

.i iii

.i 1965-7,9 7.95%

.i.,

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i i

is n,. on

.i i.

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I i

o i

i ni n,i 11:1 ill ti,i e

it i!!!

.ilf. l i iki' li:1 sti; ti.

till lii i

il t

i uis ut. ni i ii nu un lih no n.L Ue.ii nil 1975-79 12.85%

n iiii ii i

i it i n

'" "U "'

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"'bJ'"

i'h i I

I U

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$1*00

.90 1977-79--~18.22%

.=,

.80

- ~

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1

.60

r:s

ju= ;]_. gigs:

-s= --. m u_-.w. m

\\

= + r-is hi =x mt n= h= =+=:.

=

.-.emo migiimgijjigiiiiiig--

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'67 69

'71

'73

'75

'77

'79

-+w.r-%.n

,,-_e

-,,-w.p.g.

w----. - - -, -,.. -, _ _. -.., -

P ge 7 S

HAWAIIAN ELECTRIC AVERAGE BOOK VALUE PER SHARE AND DIVIDENDS PER SHARE 1965 1979 S40 m

Growth In 30 Book Value T

Period Per SF re 3

IL F"

O '"

1965-79 4.97%

i r

20

=

O i

1975-79 4.50%

i 1

i er,

i dk 9r j

i i.

v

-+

i 1

i 1977-79 4.55%

__v

~.

i l' j

,e e..

i :

is:

r-l

.itt

.i i<

.it i.

i 6

.in o

o,i

.n :n

,o

.i

.i

'.o

$10

'_1 1.

9

_.2 7

$3.00 l

l 1

i e

-l Growth In

+

2.00 Dividends 4

Period Per Share

~

i

?

1965-79 5.77%

z, s k

i sg

.g

.i::

,ie, it 1973-79 7.80%

n

.x.*

o.

s

.:6 o

. 1,i

.i i:.

n..n

.1

~~

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.o.

n;

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ini

,oi on o.i Hn iiH iin nli

.$1.00 in #

" "U '" "U

!"8 nu liii j 1977-79 9.21%

' ' ' ' " ' '"'"" " ~ 'd

.90

.80

~

=

~ '

.70 l

• 60-

__ _ __ _ _ ___. __5

.50

_

---J

~-~

=

._-1965 67

'69

'71

'73

'75

'77

~

79 0

Pags 8 LONG ISLAND LIGHTING j

AVERAGE BOOK VALUE PER SHARE AND DIVIDENDS PER SHARE 1965-1979 l

l

$40 i

Growth In 30 Book Value Period Per Share

.+-

1 1965-79 2.77%

1, 20

..I

.w.

..e is.

f 3

,.. -,J L

1

.j o

1975-79 2.39%

i

-4

.we

.n

=

o

....it

,y i.o

... m.e

!4..

.6

..i.

n n.i 4

.n..op nv..

1977 79 1.75%

.p.

nn

..o

.ii

... nn

.,n n.

i,..

...., ilk ii.

in ini in ini

!i.i io.

pe esit on sin

.it iiii ivi iqi i.i iqi it

". p i o i l

in ill illt tal 4,i itti 4:s us un i.si

!tl Itj 11 foi it in lilf li Illi 16ll till ill Illi i ll l $!

lill llll 814l l8ll iill lil lil l

l iti li i

l l

I IU

'" "" '"UI U"

"' 'd UI U

i I

I

$10 9

8 7

ummimummmme l

i 1

I

$3.00 Growth In 2.00 Dividends 1

llll O i%

'.o J.Il

,l./.6 '.

n; l J:'."

Period Per Share o

. on i.o

.i.

.n1 n in m.

-n

..o

.c

%..v+

n.

n i

n,

.o alii 4

.;i

_,._iqF

.it il i

ili in, nu oi nu

..n in no o n._op e.*r y, n o "Ti 1965-79 3 71%

n n

i iI o!

n n

! nn on in...owiein

.n

!i ou ni n

i o e

in i

no i

- i i

i inwu vi n ci.

ini un in n

i i

in ni t

i n

i un i

i i nn ~~eo nit u i

oil uti ut i

6 I II!

11 i

i i

i i

1975-79 3.92%'

l

$1.00 hn i

i ni in _ lH Uh ni uh HH in

_U ni ni H

l i

O l.

I l

.90

~

1977-79 3.96%

.80

.70

.60 i

.50

~unassians amensta alemmesiisihm sem Bam its disi

- ~

iimm umaiim umim diu 1965

'67

'69

'71

'73

'75

'77

'79

Page 9 NEW YORK STATE ELECTRIC & GAS AVERAGE BOOK VALUE PER SHARE AND DIVIDENDS PER SHARE l

1 1965-1979

$40

"'"'"""'"""M"""""E

~

Growth In 30 Book value 1

Period Per Share

. i-l 1965-79 2.58%

i-t i

^

20-

.o i

I

'l

.g.

db

.dk

'4F 5

t

.t!

t

'l l

o. '.

1975-79 1.62%

.i n >

-, o

.o.

o

. o.., u,...,

.. i

.o o.

ui 1.,

im

.o,,

.':i 1977-79 2.27%

, o

,,, on

..o

,e n

i,'

... ion ini in u.i

.n.

.i n.. no

.y on un o.,

on o.i ti

.!i;

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i rial site stit ill litt til till l';l sait 11 1

.ili.'!

liii i;il lit!

.Ill l'il sili itti illi sitt litt til (ti! tll Ill 1811 tili Ill ill

!ltl llll llll lll1 llll llll flll 6lII llli 1861 llal llll lil' llll lll lll lll1 llIl lIl ittl t

9 8

7 mm,,,,,,,,,,mm

=

$3.00 E

=

Growth In o

e Dividends

~2.00 4

=

Period Per Share

.o

,1 i

1 i

o.,

o,

.n.

o u

i.

o

.o a n.

.w:.uc v

.o xo o

eon aw,e

.iiii r...

i..

. E

'v

.1965-79 2.78%

.'l lll

. ', [m io.

ini i

n m

m ie on on o

n.

on ini in ini un..i o n.m o".om um i ne

! n o'l 'i i!,

int si ni in E

i i tu! 6no ne it i

in nii un n i ilt i

i un n I

i l

int i

Ili IU E

1975-79 3.74%

uH i Lluco! In! i!

I ill in!

liii I!

l ill I

H HI I

i I!

I ill li E

..n H Pon lui nu ini un HI liti oi Ili i

i n HH I

H I

6 i'

id H

ni E 1977-79 3.68%

$1.00

.90 E

~

~

=

.80

-E=

.70

=

.60 m a

=

s

.50 iiiiiana mummma mmu amm mammets tuleshe adB dire heemmR bem ummi

~

imuiiimuumiu 1965

'67

'69

' 71

'73

'75

'77 79

-.__,,w-

---

,,.,,,,,n-----,,-,---,,,,,.__a-,,.,,,.--,.e.,_-,-e, n,

,,--e,.

Page 10 l

l 1

1 NIAGARA MOHAWK AVERAGE BOOK VALUE PER SHARE AND DIVIDENDS PER SHARE 1965-1979 1

$40 Growth In 30 Book Value Period Per Share 1965-79 1.62%

20

'l

_.... u

.i 1975-79 1.07%

T

... n'.,,,.

",l S 11F

.R Ek Nk

+

.i 1977-79 1.45 a

gt

,,o

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,n.

....,.nr

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o

.o oi oi n

i, ni

,:n

.i in.

il

ll ill3 llll Illll fill fl;l 13ll iif I'll lili iIll llel 1811 111l llll Ilin 1,6l i4ll llll ll "U

$10 9

8

_1 7

mum

$3.00 I

Growth In 2.00 Dividends 1

,l Period Per Share i

o

.o it, i.u

..o o

,o

,o,

.n, o,,

,o in,

no o

,.i 1965-79

1. 84 %.

no

.o

,o

.n, o

i:o o,

"o i.,

,i.

oi iiii nii no n,s.a,....

o,,

,ni un i p,'

l

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ni un l

n

n o!3;un. o"o. ini it i

ni in, in!

in; au ni siti iin un

.n

',i Id! n 61.jn J o t,aiikung,; nto;gie inFar i!n nii nel llh n iiii no ni, 1975-79 4.50%

'" 'UF'CdI "' " I"'I"#""'"'"' "" "U "" ""

'"' "" dI "d 'HI HU I"!

$1.00

~~

1977-79 4.84%

.90

.80

.70

.60

-= _. _..

. = _..u--

1965

'67

'69

'71

'73

'75

'77

'79

1 Page 1 POTOMAC ELFCTRIC POUER COMPANY AVERAGE BOOK VALUE PER SHARE AND DIVIDENDS PER SHARE 1965-1979 I

S40 n-Growth In l

30 Book Value Period Per Share 1965-79 2.08%

20 1975-79 2.25%

l a

E*70 'T". "..

1 1977-79 2.17%

1' 2

.o

,.'6.

P.

il l

.tg-

.qe.MF.

si f

l i

.n

,e +

, i.n u.

u.. nn no

.. i f

i'F".

l;li.'i

,l i.

iti-il i

.iit

'f'

.I li,!

till t.

l'!!

i "d"" "" "O """'" '"I'" '"

$10 9

l 8

7

$3.00 1

I s

Growth In 2.00 Dividends

.l.

l Period Per Share 3

1965-79 3.97%

.o!

.o. on i.

4..

o.,

..o

..nn

.; on on

.o1

,,i

.o ini n o..

as +

to!

.o.

"' on

~

l

,o ini o..

in uit un n in no ui. no un ini nien! nh iin In. ho on n'i 1975-79 4.73%

uii nii yh ni nii_ un i.h in in, u h. i i* !n on.. ni! hn nu li lin till h i

" "E'I "" "" "U "" UU d' "" "" "i I"' '""'d I"' ""E"'*"'

l

$1.00 1977-79 3.08%

.90

~

~~

.80 b

.70

E

.60

.50 hsagemmiimamammiii maisimiimummisse imm mmis sigg 1965

'67 69

'71

'73

'75

'77

' 79 l

l l

l p-

.---w,-,w,.

7,--,-~--.-,--w-----w,-w-.w-w, o-.

~, -

1 1

Pegs 12 i

_ UTAH POWER & LIGHT AVERAGE BOOK VALUE PER SHARE AND DIVIDENDS PER SHARE 1965-1979

$40 Growth In 30 Book Value Period Per Share 1965-79 3.60%

I 3

1 20 l

l L

i 1975-79 2.95%

n

~-~

at -

i i

l...

.uk

• e

.de.nF

.i

.i

i. i.

o_

1977-79 2.10%

.i

.io

_ a.

c

.n,

.c r.

,q.

.- we i..

.i.,

,o,

..o io.we w

,u,-,o i.o ni u,

no

.n.

.o oie i n i. ini

,,o ei it!!

lt IT

'iiit it, 1::t 111

.i.

..ri s!'l t;il

.!!i i;;' :!!l I"'

'" "I""

UU "U '"

"I' IU'

I "I UU

$10 9

l l

8 l

7 l

l

$3.00 1

l Growth In 2.00 Dividends Period Per Share

.ut 6

'"l 1965-79 6.36%

,o y

,,o

, n a

yn

,o o..

ll 1,tl

'l I il

ill,

!If8 ilfl

,lil

,16 j

i i

un ini ~it all

'e 1381 till illl 4 in ni n un qu ni on ini ol i,il nibiin

863

.ill fii I ? ! Lam

,n ul

'i, in 1975-79 10.46%

oi! ii!

t!

i i!

un iiii n!

ni!

ni! q

!,,ne,7.to I i!!

i!h ini i

!h

!i!

it!

l

$1.00 i'f.11!

"I

'U' "U I'U '"t ' " ' _#""

'i" I'!'

i"

"" UU I

U!

"il li" 1977-79 6.22%

.90

_= --

=

g

.80

==

=

=

.70

=

.60

.50

,,,,,,,m-

-- - - - - -maimm---

sugg---

mgm 1965 67

'69

'71

'73

'75

'77

'79

Page 13 i

I l

VIRGINIA ELECTRIC POWER COMPANY AVERAGE BOOK VALUE PER SHARE AND l

DIVIDENDS PER JBARE 1965-1979

$40 Growth In 30 Book Value Period Per Share 1965--79 4.36%

20 1

x,-

O G 1975-79 1.40%

..u i

1..

.. 4

...T

.o 1.,

i 1977-79

.75%

..,ac

.i,

..t, Illi

,tl f:el

.t[L,'.P".

j..el felt i.4 e,

tit'

li-

?

e

.It

1. ,Ij 9

t

,it it!i 11l; i t i !,,

ilPC::

Il si.6 i61

'ile

'to sini

,i,e

sil vill sitt viel

..si 6iil iirl lIll illl

il h '

P.il Itti 6,

.;- f illit:li

ll

'ill Illi{ :1

'til 1:!'

ilt, 1114 i::t life ll!!

$10

".'. I "O"' "' ""

"'I

" ' I " ' " ' "

'"' "U U'U"" U'

'"! ' " ' ' ' ' "U UU UU 9

8 7

$3.00 Growth In 2.00 Dividends Period Per Share ii

. ii i

...i i

T.n....o...n

,,n.n o.n 1965-79 2.50%

.,,, on

.o

,,o

.o.

in.

on ni un ni. n in on no o.

.n,

.o on.o. on.n minn.

n:t ini t n in un ji iii n i o li.

illi

>:!i lio.iiiungsin'

". i i tin u

! in!

l 4 1975-79 3.84%

.li Il lli II I

ill 11 a' i t LJ 3LJllLJ# 'IP.iiM ! l lttl8 11 ll I thi Il I IIll I.i!

I i

till li-l lti 'i LJiie;

' l l'l ll"i i l l:lli ilil Illi Illi ' lit il ti i Illi lii lill lii!

j i

$1.00 1977-79 5.49%

=

i

.90

=

.80

.70

.60

.50 eassement umamimiiisiise m annesum manu ssub

- ~ - ~~

iniH

~-

iFuitiiihihit,**

1 1965

'67

'69

'71

'73

'75

'77

'79

HIDDLE SOUTil UTILITIES YEAR T0_ YEAR GROWTH YEAR _END BOOK VALUE AND FROM RETAINED EARNINGS 1965-1979 i

4..

BC'.R VALUE GROWTII W

14%

l-I 12%

f"l jl i

l l l

l

/I 10%

P l

J I

i I

8%

-J l.

3 k

I l

f P

l l

-. Y g

. l I

l.

K

.ii i"

6%

l p

i j

/--

. m q

}

.,m; h

l I

m k

,j 4%

l l, l

\\.

. y V

!'r

L r

1 4

l s

n p

l

, f u,

.1j e

jf I

i 2%

l l

-l I...

-.p I

i l

l O

GROWTil FROM RETAINED EARNINGS p

l l..h I

k h

c-

-2%

idinin 2

1965

'66

'67

'68

'69

'70

'71

'72

'73

'74

'75

'76

'77

'78

'79 E

MIDDLE SOUT!! UTILITIES, INC.

AND SELECTED COMPARABLE ELECTRICS CROWTH RATES FROM RETAINED EARNINCS 1978 - 1980 CROWTH FROM RETAINED EARNINGS COMPANY 1978 1979 1980 AVERAGE (A)

(B)

(C)

(D)

( E)

A.

MIDDLE SOUTA UTILITIES 5.70 3.21 2.14 3.68 B.

SELECTED CUMPARABLE ELECTRICS:

1.

Detroit Edison 1.14 1 47 0.64 1.08 2.

Florida Power Corporation 6.31 3.61 0.48 3 47 3.

Florida Power and Light 8.12 5.68 3.68 5.83 4.

Hawaiian Electric 4.67 4.77 4.26 4.57 5.

Long Island Lighting 3.62 3.16 3.63 3.47 6.

New York State Electric and Gas 3.84 5.23 4.621/

4.56 7.

Niagara Howhawk Power 3.07 3.21 2.12 2.80 8.

Potomac Electric Power 2.24 2.29 3.82 2.78 9.

Utah Power and Light 1.70 1.62 0.34 1.22 10.

Virgihia Electric Power 3.00 1 23 2.86 2.36 1/ Based on Financial Statements for year ended September 30, 1980.

E MSUCRE e

Pags 1 LOUISIANA POWER & LIGHT COMPANY CAPITALIZATION RATE OF EQUITY A.

BASED ON MIDDLE SOUTH UTILITIES 1.

Dividend Yield 11.03%

2.

Growth Es timate --

3.00%

3.

Capitalization Rate of ' a y

--- -14. 03%

l B.

BASED ON SELECTED 20MPARABLE COMPANIES l

O 1.

Dividend Yield 10.31%

2.

Giowth Estimate:

a. Detroit Edison 1.50

b. Florida Power Corp.

4.25

c. Florida Power & Light 5.50

d. Hawaiian Electric 4.50

e. Long Island Lighting 3.25

f. New York State Elec. & Gas 3.75

3. Niagara Mohawk Power 2.50

h. Potomac Electric Power Co.

3.25

1. Utah Power & Light 3.50

j. Virginia Elec. Power Co.

2.75

k. Average Growth Estimate-3.48%

3.

Capitalization Rate of Equity

- 13.79%

i NOTE:

1/ ihe average monthly dividend yield for the 36-month period ending February 28, 1981.

t

a Page 17 D7.MONSTia* ION THAT WITH A 14.70* RATE OF EARNINGS ON BOOK EQUITY. GIVEN A BASE EQUITY CAPITALIZATION RATE OF 13.75: _ THE MARKET PRICE CAN BE EXPECTED TO BE A/ PROXIMATELY 16% ABOVE BOOK i

1.

Given:

Rate of E4rnings on Book Equity

.1470 r

=

=

k Sere Equity Capitalization Rate

.1375

=

=

C Estimated Long Run Crowth in Equity Capital =.11

=

Retention Rate

.35 o

=

=

f Cost of Financing and Pressure

.0 75

=

=

Mo/Bo Expected Market to Book Ratio

= 1.16

=

87,V Annual growth rate in book value per share

=

D1 Dividends per share SRE Annual growth rate from retained earnings

=

• S Annual growth rate from sales cf stock at

=

net proceeds above book value II.

DCF Formula D3 No k - SBV Dividing both sides by Bo. produces Mo/Fe

=

kSBv y

r(1-b)Bo where D

=

i k

.1375. as given

=

SBV a'

(1 + S E) (1 + SS) - I R

where ERE rb

=

1 + (C - rb)

,y (G - rb)

R$

y (Mo/bo) (1 - f) i III. Solution

.14 70 (. 65) B,o.

y

.09555 D /Bo l

Bo l

RRE rb =

.1470 (.35) =.05145

=

l I

1 + (.11

.05145) 1.05855

=.00377

~

ES

(.11

. 05145) 1.05457

=

y (1.16)(1 -.075) 8 (1 +.05145)(1 +.00377) - 1 = 1.0554 - 1 By

=

8

.0554 Bv

=

.09555 N/Bo 1.16

=

=

l

.1375

.0554 1

I l

.~

Pa::e 18 DEMONSTRATION THAT WITH A 14.95% RATE OF EARNINCS ON BOO 4 EQUITY, C1VEN A BARE EQUITY CAPITALIZATION

. RATE CF 14.00%. THE MARKE! PRICE CAN BE EXPECTED TO BE APPROXIMATi Y 16% ABOVE BOOK 1.

Given:

Rate of Earnings on Book Equity r

=

.1495

=

k Bare Equity Capitalization Rate

=

.1400

=

C Estimated Long Run Crowth in Equity Capital

=.11

=

b

=

Retention Rate

.35

=

f Cost of Financing and Pressure

=

.0 75

=

Mo/Bo Expected Markt.t to Book Ratio

= 1.16 a

EBV Annual growth rate in book value per share

=

D1 Dividends per share

=

SRE Annual growth rate from retained earnings

=

SS Anual growth rate from sales of stock at

=

net p roceeds above book value 11.

DCT Formula D1 Ho k - SBV Dividing both sides by Bo. produces D /Bo 1

Mo/Bo

=

kIBV whets D3 r(1-b)Bo

.1400. as given k

=

l Sv (1 + SRE) (1 + SS) - 1 B

=

, where ERE 1

=

rb 1 + (C - rb)

,y (C - rb)

RS

, (Mo/Bo) (1 - ()

111. Solution

.1495(.65) 3

.097175 p fgo Bo rt =.1495(.35) *.052325 ERE

=

1 + (.11

.052325) 1.057675 1.05375 - 1 =.00372 85

=

3, r_11 -.mmu (1.16)(1

.075) 8 (1 +.052325)(1 +.00372) - 1 = 1.0562 "- 1 8V

=

E

.0562 sV

=

l m/ Bo

,y 1.16

=

=

l

~

LOUIS 1ANA POWER & LIGHT FAIR RATE OF RETURN BASED ON DESIRABLE CAPITAL STRUCTURE DECEMBER 31, 1981 Capital Cost Weighted Cost of Tyt e of Capital Structure Rates Cost Rates

_ Capital (A)

(B)

(C)

(D)

(E)

A.

Debt 50.0%

9.,9 3%

4.97%

B.

Preferred Stock 13.0%

9.97%

1.30%

C.

Comon Equity 37.0%

14.75-15.00%

5.46-5.55%

D.

To tal ----

11,73-11.82%

e e

e a

l e

l I

APPENDIX i

O e

w t

+

% ma i s l' a s

eseCOLF SOL'tes V'et tv it $, e=C.

E Lt Cte e C tPgest e er. cre**mt S Ctv 08 Crtsta@ esc LCor ties' Oryt OL > elet e S t.

1990 AseSW ET ANed>AL AseQ#

E7 ApeabAs Otff S7A@ teG CI57 8lA?t DeARE 5 SFS7A@sei, CDt7 81 RTE O Aagg aparaar, a@ etsty

.S.

4

.l.

Ctspearr R@ Ilka

-l.

.f.

.l.

eai tot,

(t,

em ga t ggi ga i e,

Angas 5AS 80eEs A@ 6 NT MPPAW5 Loulliasen Poite A@ Liest CD* ANT Is* enerepege 3 S/tB 1998 8.000,000 LSS 258.000 ist soortgeg, 9 Ing 19ei 50,000,000 s.S$

4,773,00*

ist enortgege 9 t/45 1981 60,000,00J

% 29 5,364,000 1st enortgege 9 3/98 19 0 90,000,000 9.37 4.64%00t Is* enortgege 3 t/28 1942 15,000,000 3.S2

$26.000 Is* enortpop 3 1/95 19es 14,000,000 3.14 Se S,20C 1st esortgage 3 t/43 9934 7.900.000 L23 242,250 tot enortgage 4 3/45 1947 20,000,000 4.77 954,00t 1st enortgege 3 3nt 1995 18,000,000 1 35 605,000 Is' see-teege 95 19 2 20,000.000

% 01 1,002.000 le* startgage a 1/95 t991 12,000,000 4.01 577,200 1s+ enortgege 4 Sag sten 25,00c,,000 4.M 1,160,00C is* enortgee.

4 3/85 1993 13,000.000 4.39 650,S00 Is* eno=+gege S 3/45 1996 35.000,000 te?

t,90s.50C let ets-+deve a S/85 1999 25,000,000

4. Se 1,543.000 ist startgege

$ Sn3 1997 le,000,000 S,50 000.00C t s' seertgage S 3/45 t996 25,000.000 A72 1,430,000 Is, stortgese 4 1/21 1997 10,000.000 het 1,16A,40C let enor,pege S 7/05 1997 30,000,000 5.ed 1,752,000 Is* ewtgese 7 t/95 1990 35,000,000 7.13 2.a95,90t Is, enortgege

? 3/05 1996 15,000,000 7.39 1,102.900 tot stortpege 9 3/95 1990 25,000,000 9.39 2.347,vJC -

let stortgage 9 t/sl 1999 25,000,000 9.21 2,302,500 tot stortgage 9 3/95 2000 20,000.000 9.33 1.eH.000 1s* enortgeye 9 Snf 2000 25.000,000

9. M 2.410.000 ist enortgage 1 7/95 2001 25,000,000

7. 08 t,960,00C is' startgepe

? S/B5 2001 30,000,000 7.40 2,200,000 ts' tourtgage 7 t/28 2002 25,000,000 hee 1.870.000 1ee soortgege el 2001 30,000,000 h93 2,379,000 to, simetgege 1 t/25 2002 25,000.000 7.44 1,460,000 tav enortgage 7 3/a g 2002 35,000,000

7. 72 2,702,000 is' enorttage SE 2003 43,000,000 het 3,Se2.00t te* nortgage

? t/28 20C2 15,000.000 hoe 1.122,000 tot enertpage 3 3/a g 200s e$,000,000 4.?e 3,933,00t it+ enortgese Of 2103 40.000.000 7.92 3.16e,000 ist stortgage B 1/e5 2006 40,000,000 S.7e 3,496.00t ist stor9pege 8 t/ti 2003 40,000,000 A to 3,240,000 ts* steetgeen 95 1986 75,000,000 9.04 6,790,00t Is+ emortgage 10 1/25 200s 40,000,000 10,S3 4,212,000 tot stortpop VC1 2006 60,000,000 WOO 6,094,00t ist stortgage to 1/95 2005 40.000,000

% 11 4.044,000 ts' ster *9ege to 7/95 1989 45,000.000 11.22 S,049,00t Is+ enortgege 9 ins 2007 75.000,000 9,09 4,417,500 ist eter wie 13 1/28 2009 35,000.000 13.73 7,391, Soc st thrtgege 9 745 2000

?S,000,000 9.8S 7.387,500 ts+ etertgege IS 3/45 1988 30,000,000

• tt e.033,000 e

tot stortgege 10 1/48 2005 60,000,000

10. 29 4,174,000 stunts. new. Semes 43.50,000

4. 72 2,097,190 1s+ enortgage le l/91 1986 70,000,000 Ele 11,326,000 Polld tem & temast, tones 19.300,000 h66 1.177.6F Poll # lea Centrol 9.425 2000 99s,000 9.91 M,99S Pos tdien Centrol 9.62f 2000 9.226,000 9.91 914,297 7etet est, es3,000 B. 79 77.901.a0s lastell. P erch. Cent.

7 3/95 2006 18,600,000 7.71 1,279,0e0 i

Pelle6es Cea9Fes 6 t/95 2D07 44,000,000 h 30 2,990,000 uts$1SitPPt PotER AeC Lies? CEePatre Pet id 6en Centret 7 1/45 200g 0,300,000 het 620,880 Pet le ten Centret 7 t/W f 2000 1,900,000 het 142.120 tot enortgage 3 Sns 1983 12,000,000 A63 430.00t 6 aeus'r l ei 6 1/95 2007 1,000,000 L Sd 63,400 1st stortyp 4 Ing 19e8 19.000,000 4.09 607,50t i ndus tr i al

? ??45 200s 1.n00,000 het se.900 tot stor9 ego e S/tf 1995 20,000,000 4.M 928,00t 3

Iet startgeye 9 1/95 1986 23,002.000 S,05 1.262.90t Tc.i at S.a 20,000 1 69 n.m. 62 is, marty, 6 3/t tm 10.000,000 6.33 633,00t is+ martyp 9 Sns im 20,000,000 9.Se i,m.00r AoRA*SAS.seil5GJRI POER CDPAsp ts' Betgeys 9 t/88 2000 17,500,000 9.14 1,606.90C let startpge 7 3/85 2002 15,000,000 7.78 1,167,00C let enor+gege 4 t/25 1983 t,202,000 4.94 54 S 71 tot eartgage

? 3/45 2003 30,000,000 L72 2,3te,00t 1st stortgage 3 t/23 toes Set,313 S.57 33,326 tot thertsspo a 1/e5 2003 20,000,000 6.19 1,Ue,00C

(

te, e.or,pye 5 Sn 99.o i,400,000 5 67 n n0 is, seertes,e 9ru nW 23,m,000 9.01 2,42.9.

o Iet seertgep 6 t/ef 19se 3,960,000 A 38 225,704 let startgage 10 7/95 2003 25.000,000 10,90 2.725,00t let mortgage 9 3/45 2000 4.600,000 9.87 454,020 Petleles Centret 7 t/25 200s 9,400,000 7.75 729,50C Iet stortpop 9 3/95 9942 572,000 S.43 31,060 Poe se een teatre 8 t/28 200s 0.375,000 4.et 735,4S7 1s' seertgege 9 3/91 1993 6.450,000 9.62 639,730 Pet id sea Centrei 8 1/25 1995 950,E00 4.05 es,0+*

tot enortype g 3/a f 1990 3 0,000 A90

_t72,200 Po. le sen Com' ret 6 3/48 19ED 673.000 7.e4 47,32C Pet ad een Cea* ret 6 1/45 1900 475,000 7.13 33,9t

• 7e'et 3 10 S.42 g,991 Coelten Leese SE 1993 7.6s e.000 4.00 ot t. eat 7et st

_262 _,22 _5.000 7.41 19 999.39P

-e rs

• Ee Ottrasil PUBLIC SERviM. sec.

Ist stortgage 4 1/98 19E3 4,000,000 4.07 244,20C '

l Ist startgepe 3 1/ei 19ee 4;000,000 3.19 191,40t te' ster'gege 4 1/25 1997 6,000,000 4.95 273,00r tot startpage SS 1991 19.000,000 S.03 754,900 tot stortgey 4 t/25 1992 8,000,000 4.53 362,40t 1st startgeye 3 $/95 1996 23.250,000 S.61 1,30s,32' let etsetpge S 7/95 1997 12,000,000 S.50 700,00t 1st seertpage 10$ 200s 3h000,000 9.es 3,479.00r tat.turtgeye 9 t/28 20W 19,000.000 9.69 1.493.90f 4,,,

e,m,35 7,.i in 25e,000 y

i 1

essutze

Ayamlin Vare '

MIDDLI SOUTM UT4LITIES, INC.

ELECTRIC OPERATING CC7 PAN 77K CORT OF OUTSTAND 1NC PREFERRED $70CR Dr.CEMBEa 31. 1980 AMOUNT Nt?

DIFIDEND NET CUT 5TANDING PROU CDS REQUIREMENT O - RAIT.

4" ISSUE -$-

• S-

. (E)

(A)

(3)

(C)

(D)

ARKANSAS POWER AND LIGHT 4.322

$100 Par 7,000,000 6,963,583 302,400

4. 72 :

$100 Pa.

9.350,000 9,291,115 441,320

[

4,56%

$100 Par 7,500.000 7.473.620 342.000 l

4.56%

$100 Par 7,500,0C0 7.482,556 342,000 6.08

$100 Par 16,000,000 9,965,495 608,000

7. 32 2

$100 Par 10,000,000 9.994,147 732,000

). 80

$100 Par a5,000,000 14,99. 177 1.!70,000 7.40%

$100 Par 20,000,000 19.997,084

..e80,000 7.88:

$100 Par 15,000,000 14.996,445 1,182,000 10 60:

3100 Par 18,213,400 18,186,073 1,930,620 l'.041

$100 Par 38,000,000 37,930,259 4.195,200 e.842

$25 Par 10,000,000 9,927,485 884,000 10.40:

325 Par 15,000.000 15,126,800 1,560,000 9.921 825 Par 40,000,000 40,284,400 3,968,000 3 3. 32

$25 Par 50,000,000 50,868,000 6,640,000 emorttaation of laauance Cost of 10.60 and 11.041 Series 5.171 TOTAL 272,563,400_

272.781.241 2g82,711

• 4j LOUISIANA POWER AND LIGtT 4.16

$100 Par 7,000,000 6.981,784 291,200

4. 442

$100 Par 7,000,000 6,976,497 310,000 4,962

$100 Par 6.000.000 5,978,846 297.600 5 16:

$100 Par 7,500,000 7.482,014 387,000 5.40%

$100 Par 8,000,000 7.988,944 432,000 6.441 8100 Par 8,000,000 8,003,655 515.200 9.52%

3100 Par 7,000,000 6.991,622 666,400 7.842

$100 Par 10,000,000 10,004.547 784,000 7.362

$100 Par 10.000,000 30.000,525 736,000 8 56:

$100 Par 10,000,000 9,976,509 856,000 9,442

$100 Par 30,000,0".

29,918,900 2.832,000 11.48%

$100 Par 35,000,000 34,928,500 4,018,000 10.721

$25 Par 60,000,000 56,909.600 6,432.000 13.122

$25 Par 40,000,000 35,815,000 5,248,000 15.20:

$25 Par 30,000,000 28.220,800 4,560,000 TOTAL 275,500 g 266,177.743 28,366,200 g

MISSISSIPPI POWER AND LIGIT I

l

4. 362

$500 Par 5,792.000 5,959.890 261,251 4.562 3100 Par 4,388,800 4,557,176 200,12) i 4.921

$100 Par 10,000.000 10,064,676 492,000 l

9.162

$100 Par

',500,000 7,491,439 687,000 I

7.44%

$100 Par 10,000,000 9,980.416 744,000 TOTAL 37,880,800

[ gig g

6.27 WEW ORLEANS PUBLIC SERVICE 4.751

$100 Par 7.779,800 8,023.049 369,540

4. 362

$100 Par 6,000,000 5.991,091 261,600 5.562

$100 Par 6,000,000 5.991,434 333,600 15.441 5100 Par 15,000.000 14,579,650 2.316,000 TOTAL 34,779,800 g

g g

I M5UCOP i

l I

1 l

L 2

MOODY'S BOND YlELD AVERACES l

l PUBLIC UTILITY BONDS l

RATING AAA (PERCENT)

YEAR JAM FEB MAR APR MAY JUN

JUI, AUC SEP OCT NOV DEC AV17A. '.

1950 2.56 2.56 2.57 2.59 2.61 2.62 2.64 2.61 2.65 2.66 2.66 2.67 2.6; 1951 2.65 2.67 2.80 2.89 2.91 2.99 2.97 7.90 2.87 2.92 1.00 1.03 2.88 1952 3.01 2.96 2.99 2.96 2.96 2.97 3.00 3.00 3.00 3.04 3.00 2.99 2.79 1953 3.05 3.13 3.18 3.30 3.40 3.41 3.32 3.30 3.35 3.20 3.12 3.15 3.24 l

1954 3.07 2.96 2.87 2.87 2.90 2.92 2.92 2.90 2.94 2.92 2.92 2.93 2.93 1955 2.95 3.01 3.05 3.03 3.07 3.08 3.09 3.15 3.19 3.14 3.13 3.17 3.09 1956 3.14 3.10 3.11 3.23 c.10 3.29 3.30 3.44 3.58 3.63 3.72 3.79 3.39 1957 3.81 3.74 3.11 3.71 3.77 3.8*

4,05 4.21 4.26 4.25 4.22 3.93 3.96 1958 3.68 3.62 3.67 3.66 3.63 3.6A 3.74 3.94 4.17 4.25 4.22 4.19 3.87 1959 4.23 4.25 4.24 4.11 4.48 4.56 4.60 4.54 4.62 4.74 4.66 4.65 4.49 1960 4.68 4.63 4.54 4.50 4.54 4.54 4.48 4.31 4.29 4.37 4.36 4.38 4.47 1961 4.35 4.29 4.23 4.28 4.29 4.3I 4.41 4.48 4.41 4.46 4.44 4.44 4.37 1962 4.44 4.45 4.42 4.38 4.34 4.32 4.35 4.36 4.35 4.30 4.25 4.22 4.35 1963 4.19 4.19 4.20 4.21 4.23 4.25 4.29 4.31 4.33 4.33 4.34 4.37 4.27 1964 4.40 4.38 4.39 4.41 4.42 4.44 4.43 4.4*

4.43 4.42 4.43 4.44 4.42 1967 4.41 4,42 4.43 4.42 4.45 4.47 4.48 4.50 4.54 4.57 4.61 4.72 4.50 1966 4.76 4.82 4.98 5.08 5.10 5.17 5.22 5.34 5.56 5.50 5.40 5.39 5.19 1967 5.17 5.01 5.16 5.14 5.34 5.55 5.10 5.76 5.82 5.89 6.16 6.30 5.58 1968 6.24 6.14 6.13 6.26 6.31 6.32 6.28 6.07 6.03 6.14 6.25 6.52 6.22 1969 6.70 6.78 6.97 6.96 6.88 7.08 7.11 6.99 1.24 7.44 7.48 7.86 7.82 1970 8.07 d.12 8.07 8.08 8.45 8.79 8.68 8.42 8.39 8.30 8.34 7.97 8.31 1971 7.70 7.49 7.62 7.59 7.86 8.01 7.96 7.89 7.74 7.69 7.55 7.54 7.72 1972 7.48 7.53 7.54 7.59 7.61 7.53 7.43 7.41 7.41 7.40 7.30 7.26 7.46 1973 7.33 7.\\1 7.45 7.44 7.44 7.51 7.62 7.68 7.78 7.77 7.83 7.86 7.60 1974 8.00 8.01 8.14 8.16 8.47 8.58 8.83 9.09 9.16 9.50 9.10 3.02 8.70 1973 8.99 8.79 8.82 9.13 9.05 8.93 9.04 9.20 9.21 9.14 9.03 9.07 9.03 1976 8.86 8.80 8.! 4 8.59 8.73 8.84 8.78 8.64 8.57 8.50 8.39 8.15 8.63 1977 8.14 8.21 8.27 8.21 8.22 8.12 8.10 8.13 8.07 8.18 8.23 8.34 8.19 1978 8.52 8.57 8.57 8.69 8.83 8.92 9.02 8.86 8.84 9.04 9.19 9.34 8.87 1979 9.48 9.51 9.61 9.61 9.71 9.49 9.42 9.46 9.69

.O.38 10.99 10.96 9.86 1980 11.33 12.75 13.33 12.27 11.23 10.88 11.48 12.10 12.46 12.79 13.39 13.62 12.30 1985 13.31 13.95 13.85 El

• il 97 PUBAAA

1 1

MOODY'S BOND YlELD AVERAG }

PUBLIC UTILITY BONDS RATING AA (PERCENT)

YEAK JAN_

FEB MAR APR MAY JUN JUL_

AUC SEP OCT NOV DEC AVERACE 1950 2.64 2.64 2.64 2.65 2.69 2.69 2.71 2.66 2.71 2.72 2.72 2.72 2.68 1951 2.71 2.73 2.87 2.98 2.97 3.06 3.04 2.96

- 2.92 2.98 3.09 3.11 2.95 1952 3.06 3.01 3.95 3.02 3.02 3.04 3.05 3.06 3.06 3.08 3.05 3.05 3.05 1953 3.11 1.18 3.22 3.35 3.50 3.57 3.41 3.38 3.42 3.27 1.20 3.21 3.32 1954 3.14 3.03 2.92 2.94 2.97 3.00 2.99 2.98 3.00 1.99 2.99 2.99 3,00 1955 3,01 3.06 3.09 3.08 3.11 3.12 3.13 3.17 3.21 3.18 3.17 3.23 3.13 1956 3.17 3.13 3.16 3.30 3.34 3.34 3.37 3.48 3.61 3.69 3.76 3.84 3.43 1957 3.87 3.81 3.80 3.80 3.85 3.94 4.10 4.25 4.31 4.32 4.30 4.05 4.03 1758 3.73 3.68 3.73 3.72 3.69 3.70 3.79 3.98 4.24 4.29 4.25 4.22 3.92 1959 4.27 4.31 4.30 4.40 4.57 4.37 4.64 4.60 4.72 4.79 4.68 4.71 4.56 1960 4.76 4.68 4.58 4-54 4.57 4.58 4.54 4.36 a.36 4.42 4.45 4.49 4.53 1961 4.48 4.39 4.29 4.34 4.38 4.42 4.50 4.57 4.58 4.+ 1 4.49 4.50 4.46 1962 4.50 4.52 4.50 4.47 4.41 4.38 4.40 4.40 4.37 4.35 4.33 4.31 4.41 196s 4.25 4.28 4.27 4.29 4.29 4.29 4.32 4.33 4.35

• 37 4.37 4.39 4.32 1964 4.42 4.40 4.42 4.45 4.45 4.46 4.45 4.45 4.44 44 4.45 4.46 4.44 1965 4.44 4.43 4.44 4.44 4.46 4.49 4.50 4.53 4.57 4.60 4.64 4.75 4.52 1966 4.73 4.84 5.02 5.12 5.12 5.19 S.28 5.44 5.69 5.55 5.48 5.46 5.25 1967 5.23 5.06 5.20 5.18 5.42 5.67 5.76 5.82 5.90 5.99 6.29 6.40 5.66 1968 6.33 6.24 6.26 6.38 6.46 6.46 6.38 6.13 6.12 6.26 6.47 6.75 6.35 1969 6.90 6.89 7.08 7.11 6.99 7.25 7.38 7.34 7.50 7.71 f.75 8.23 7.34 1970 8.40 8.30 8.17 9.16 8.54 8.90 8.81 8.67 8.66 8.62 8.63 8.33 8.52 1971 8.08 7.85 8.00

?.96 8.05 8.28 8.16 8.12 7.98 7.87 7.84 7.82 8.00 1972 7.76 7.71 7.69 7.75 7.76 7.71 7.58 7.49 7.48 7.50 7.42 7.38 7.60 1973 7.42 7.52 7.50 7.51 7.51 7.59 7.70 7.92 7.94 7.94 8.01 8.07 7.72 1974 8.15 8.20 8.35 8.56 8.71 8.93 9.17 9.53 10.05 9.93 9.54 9.37 9.04 1975 9.45 8.23 9.17 9.48 9.50 9.34 9.38 9.52 9.64-9.55 9.45 9.51 f.44 l

1976 9.39 f.16 9.12 9.00 9.06 9.07 9.02 8.83 8.69 8.60 8.61 8.45 8.",2 1977 8.41 8.46 8.49 8.51 8.49 8.27 8.32 8.36 8.32 8.44 8.48 8.55 8.43 197T 8.76 8.79 8.79 8.86 9.02 9.19 9.26 9.11

,9.09 9.28 9.46 9.56 9.10 1979 9.70 9.74 9.89 9.92 10.19 9.95 9.72 9.75 9.94 19.85 11.57 11.44 10.22 8980 13.95 13.19 14.09 13.49 11.99 11.73 11.96 12.73 13.18 13.33 13.96 14.37 13.00

,{j 1981 14.03 14.65 14.61

• L

• it PUBAA

MOODY'S 80ND YIELD AVERACES PUBLIC UTILITY 80NDS RATING A (PERCENf)

YEAR JAN FE 8 MAR APR MAY JUN JUL AUC SEP OCT NOV DEC AVERAGE 1950 2.76 2.76 2.76 2.77 2.79 2.79 2.79 2.76 2.80 2.83 2.86 2.86 2.79 1951 2.83 2.84 2.95 3.09 3.13 3.21 3.26 3.19 3.:4 3.17 3.74 3.29 3.11 1952 3.29 3.23 3.25 3.23 3.22 3.22 3.22 1.24 3.24-3.26 3.24 3.22 3.24 1953 3.25 3.30 3.36 3.47 3.63 3.71 3.66 1.61 3.6 3.49 3.40 3.38 3.49 1954 3.32 3.23 3.16 3.16 3.14 3.16 3.14 3.13 3.12 3.t2 3.11 3.11 3.16 1955 3.13 3.14 3.15 3.15 3.19 3.21 3.21 3.24 3.27 3.30 3.32 3.35 3.22 1956 3.31 3.29 3.29 3.40 3.48 3.49 3.55 3.63 3.72 1.79 3.82' 3.91 3.56 1957 3.96 4.05 4.05 4.01 4.01 4.09 4.20 4.37 4.55 4.61 4.62 4.36 4.24 1958 3.93 3.96 4.13 3.95 4.01 3.99 4.04 4.29 4.55 4.56 4.47 4.49 4.20 1959 4.52 4.50 4.47 4.56 4.77 4.86 4.88 4.89 5.03 4.96 4.90 4.96 4.78 1960 3.02 5.00 4.91 4.79 4.36 4.84 4.79 4 64 4.57 4.61 4.62 4.65 4.78 1961 4.64 A.59 4.48 4.48 4.52 4.57 4.65 4.!3 4.73 4.71 4.68 4.65 4.62 1962 4.65 4.66 4.6%

4.59 4.51 4.47 4.50 4.53 4.51 4.49 4.45 4.44 4.54 1963 4.39 4.37 4.37 4.37 4.37 4.37 4.39 4.38 4.40 4.41 4.42

• 46 4.39 1964 4.49 4.50 4.51 4.52 4.53 4.55 4.54 4.54 4.53 4.51 4.53 4.54 4.52 IC65 4.53 4.51 4.50 4.49 4.50

%.52 4.54 4.58 4.63 4.66 4.71 4.83 4.S8 1966 4.86 6.92 5.14 5.25 5.25 5.40 5.45 5.58 5.81 5.74 5.63 5.67 5.39 1967 5.46 5.28 5.44 5.42 5.66 5.84 5.94 5.96 6.05 6.18 6.48 6.67 5.86 1968 6.54 6.37 6.41 6.58 6.62 6.62 6.53 6.27 6.27 6.40 6.59 6.87 6.51 1969 7.04 7.13 7.27 7.30 7.16 7.41 7.32 7.44 7.63 8.02 8.00 8.59 7.54 5

1970 8.69 8.51 9.31 8.31 8.67 9.04 9.06 8.88 8.82 6.76 8.79 8.48 8.69 1971 8.15 7.89 8.05 8.07 8.34 8.45 8.45 8.40" 8.18 8.10 7.96

'. 90 8.16 1972 7.79 7.78 7.77 7.82 7.84 7.77 7.82 7.64 7.61 7.66 7.60 7.48 7.72 1973

• 7.52 7.62 7.66 7.63 7.63 7.71 7.82 8.04 8.04 8.02 8.15 8.24 7.84 1974 8.36 8.42 8.46 6.77 8.99

'.32 9.65 10.03 10.45 10.78 10.46 10.27 9.50 1975 10.37 9.99 9.72 10.06 10.23 10.10 10.01 10.12 10.19 10.16 10.04 10.11 10.09 1976 9.90 9.71 9.67 9.51 S.55 9.?4 9.37 9.13 8.90 8.79 8.76 8.62 1.29 1977 8.61 8.65 8.79 8.71 8.71 8.58 8.51 8.49 8.46 8.61 8.64 8.64 8.61 1978 8.92 8.97 A.18 9.0" 9.22 9.40 9.51 9.32 9.28 9.46 9.68 9.70 9.29 1979 9.90 9.8%

10.04 10.70 10.30 10.14 9.98 10.14 10.36 11.40 11.89 11.79 10.49 198'O 12.27 13.55 14.65 13.87 12.5' 12.21 12.26 12.96 13.43 13.58 14.12 Is.63 13.34

,g 1981 14.26 14.91 15.14 g;

• a

v. g PUBA

POODY'S BOND YlELD AVERACrj PUBLIC ITTILITY BONDS RATING BAA l

(PERCENT)

YEAR JAN FEB MAR APR_

MAY JUN JUL AlfC SEP OCT NOV DEC AVERACE 1950 3.18 3.17 3.16 3.15 3.15 3.15 3.18 3.18 3.19 3.20 3.21 3.21 3.18 1951 3.21 3.21 3.23 3.3.

3.38 3.45 3.49 3.48 3.44 3.49 3.49 3.53 3.39 1952 3.57 3.55 3.55 3.54 3.54 3.55 3.53 3.50 3.50 3.50 3.47 3.50 3.52 1951 3.51 3.33 3.f6 3.62 3.76 3.80 3.83 3.88 3.93 3.86 3.78 3.72 3.73 1954 3.72 3.69 3.58 3.53 3.51 3.50 3.48 3.47 3.44 3.41 3.39 3.38 3.51 1955 3.17 3.38 3.38 3.40 3.40 3.41 3.43

'. 4 6 3.48 3.47 3.48 3.50 3.43 1956 3.50 3.50 3.51 3.59 3.62 3.65 3.70

. 84 4.02 4.15 4.15 4.18 3.70 1957 4.26 4.26 4.25 4.24 4.28 4.33 4.41 4.49 4.66 4.73 4.82 4.81 4.46 1958 4.60 4.23 4.25 4.25 4.23 4.20 4.19 4.44 i.69 4.74 4.67 4.65 4.43 1959 4.71 4.77 4.69 4.68 4.87 4.97 5.03 5.04 5.17 5.29 5.20 5.13 4.96 i

1960 5.20 5.23 5.11 4.96 5.08 5.05 5.03 4.81 4.71 4.82 4.80 4.78 4.96 196*

4.79 4.76 4.72 4.74 4.77 4.78 4.84 4.90 4.91 4.92 4.89 4.88 4.82 1962 4.86 4.86 4.85 4.81 A.74 4.68 4.68 4.72 4.74 4.71 4.65 4.66 4.75 1963 4.65 4.65 4.66 4.67 4.67 4.67 4.67 4.66 4.69 4.66 4.68 4.73 4.67 1964 4.74 4.74 4.73 4.75 4.73 4.74 4.75 4.75 4.73 4.72 4.72 4.72 4.74 1965 4.71 4.69 4.68 4.69 4.71 4.77 4.78 4.79 4.82 4.85 4.89 4.97 4.78 1966 4.99 5.02 5.19 5.39 5.44 5.52 5.61 5.79 6.06 6.07 6.06 6.09 5.60 1967 5.83 5.63 5.69 5.74 5.93 6.14 6.23 6.29 6.32 6.42 6.63 6.91 6.15 1968 6.67 6.68 6.75 6.94 6.99 7.01 6.92 6.72 6.67 6.74 7.01 7.23 6.86 1969 7.42 7.39 7.61 7.68 7.56 7.77 7.92 7.82 8.11 8.47 8.53 3.89 7.93 1970 9.00 8.96 8.U2 8.94 9.20 9.52 9.48 9.34 9.32 9.27 9.29 9.04 9.18 1971 8.76 8.55 8.61*

8.58 8.68 8.79 8.78 8.80 8.59 8.48 8.47 8.44 8.63 1972 8.37 8.32 8.26-8.30 8.30 8.31 8.36 8.22 8.01 7.94 7.86 T.78 8.17 1973 7.77 7.88 7.95 7.96 7.91 7.94 8.10 8.47 8.61 8.44 8.44 8.51 8.16 1974 8.58 S.68 8.81 9.04 9.23 9.48 9.72 10.14 IQ.59 11.01 11.38 11.40 9.84 o

1975 11.57 11.32 10.94 10.86 10.95 10.35 10.80 10.87 20.89 10.85 10.78 10.79_

10.96 1976 10.55 10.31 10.17 9.95 9.91 10.01 9.88 9.67 9.47 9.41 9.34 9.21 9.82 1977 9.17 9.l*

9.20 9.17 9.13 9.02 8.97 8.91 8.85 9.01 9.00 9.08 9.06 1978 9.27 9.2 :

9.37 9.54 9.70 9.78 9.73 9.53 9.47 9.69 9.*9 10.08 9.62 1979 10.29 10.27 10.53 10.56 10.70 10.56 10.48 10.50 10.78 11.89 12.48 12.51 10.96 1980 12.92 14.42 15.26 14.35 12.93 12.63 12.75 13.50 14.07 14.43 14.79 15.29 13.95 1981 15.30 15.86 15.83 gj[

%3

• b PURBAA

4ppondo Pane 7 PUBLif BMT I?FIMS EL'CTt!! t""1LtTY OPERATI4C Ctw?ANIte O

INTERF.$T PRINCIPAL TIELP TO NET 00r!

1 ATE MATURITT MOODY'3

PER29C AMOUNT PUBLIC TO COMPANT C0"?ANY T9 fry PATE LATisc DAT'

=$9p- (A)

(l' (C)

(D)

~~Ill"~

(F)

(0)

(9)

(I)

Pla. Power & Light 1st Mortgage 9.125 2068 A

JAN to 75 9.03 9.14

)

leva Southern Utilities lat Mortgage 8.7 50 2008 Aa JAN 11 15 8.85 8.96 Alabeam Power ist Mortgage 9.500 2008 Esa JAN 25 100

9. 50 9.63 Jersey Central Power & Light ist Mortgage 9.000 2008 taa J AK 24 50 9.05 9 15 South Carolina Electric & Cas 1st & Ref. Mort.

8.900 2006 A

FEB 1 30 8.90 9.02 Kansas Power & Light ist Mortgage 8.7 50 2008 Aa rtl 9 35 8.80 8.9.

Indissa & Mie%1gan Electric Ist Mortgage 9.500 2008 bas rEE 28 800 9.45

9. 56 Southwestern Public service let Mortsase 8.7 50 2008 Aa MAP S 45 8.75 8.46 Philadelphia E.actrie 1st & Ref. Mort.

9.;25 2008 A

MAR 7 1 00 9.05 9.13 Chao Power 1st Mortgage 9.2 50 2008

&as MAR 14 58 9.20 9.30 Alabana Power 1st Mortgage 9.625 2004 Eaa MAR 15 100 9.65 9.80 Kansas cas & Electric let Mortgage 8.875 2004 A

MAR 21 50 8.85

8. 98 Connecticut L18ht & Power let & Ref. Mort.

9.250 2008 A

MAR 22 40 9.18 9. 50 Intetstate Power let Mortgage 9.000 200C A

MAR 28 35 9.10 9.21 Long Island Lighting Cen. & tef. heads 9.2 00 2 004 A

APR 4 75 9.32 9.51 Mignesota Power & Light let Mortgage 9.250 200e A

APR 5 50 9.25 9.38 Pennsylvania Power 1st Mortgage 9.500 2008 Baa APR 19 25 9.42 9.59 Cincinnati Cas & Electric let Mortgage 9.125 2008 Aa APR 20 75 9.00 9.06 Bartford Electric Light let Tartgage 9.375 2008 A

APR 20 40 9.35 9.45 Public service of New Mealco ist Mortgage 9.000 2008 Aa APR 25 65 9.10 9.17 Wisconsin Elaetric Power

st Mortsaae 8.875 2008 Aa MAY 11 80 8.90 8.98 San Diego Ces & Electric ist Mortgage 9.75C 2008 Esa MAY 11 50 9.75 9.88 Ohio Edison 1st Mortgage 9.500 2000 A

MAY 16 120 9.45

9. 54 Georgia Power 1st Mort gage 9.625 2008 tea MAY 17 100 9.73 9.82 Utah Power & Light 1st Mortgage 9.125 2006 A

MAY 18 50 9.13 9.20 Emmans City Power & Light ist Mortgage 9.2 50 2008 Am MAY 23 25 9.25 9.37 visconsin Power & Light ist Mortgage 9.125 2 008 Aa MAY 24 35 9.05 9.15 Detroit Edison Cen. & Laf. Nort.

9.875 2008 Ba*

JUN 6 70 10.B0 10.13 Paeffic Cas & Electric lat & Ref. Mort.

9.375 2011 As JUN 7 2 00 9.42 9.52 Pennsylvansa Electric Ist Mortgese 9.500 2006 A

JUN 13 45 9.55 9.66 Cara*1ma Power & Lisbt ist Mortsase 9.2 50 2008 A

JUN 14 100 9.27 9.33 Delstica Power & Light ist & Coll. Trust 9.625 2 008 A

JCR 22 50

9. 60 9.70 Saltimore es & Electrie 1st & Ref. Mort.

9.375 2 006 Aa Jun 27 75 9.38 9.47 Puget sound Power & Lasht let Mortgage 9.875 2 008 baa JUL 11 65 9.95 10.07 Louisiana Power & Light ist Mortgage 10.000 2008 boa JUL 12 60 9.97 10.08 f t tinia Electric & Power Company let & Ref. Mort.

9.625 2008 A

jut 20 150 9.63 9.73 Arkansas Power & Light let Mortgage 9.875 2008 baa JUL 20 75 9.75 9.6A l

Asw England Power Cen. & Ref. Mort.

9.500 2008 A

JUL 25 50 9.58

9. 68 Duke Power lat & Ref. Mort.

9.375 200t A

JUL 24 125 9.45 9.51 Southwestern Electric Power ist Mortgage 3.750 2008 Aa ADC 4 50 8.75

8. 66 Idaho Power let Mortsa8e 9.000 2008 A

ADc 9 60 8.90

8. 99 Empire District Electrie 1st Mortgage 9.125 2 008 A

ADC 10 15 9.13 9.30 tows Public nervice ist Mortgage 8.750 2008 Aa AUC 22 25 8.90 9.06 1111 acts Power 1st Mortgage 8.875 2008 Aa ADC 23 100 8.88 8.99 Houston Lighting & Power let Mortgage 8.875 2008 Aa ADC 29 125

8. 88 8.93 Central Power & Light let Mortgage 8.875 2008 Am REP 7 75 3 45 8.93 Iowe-1111aota Cas & Electric let Mortgage 8.750 2006 As SEP 13 20 6.75 8.93 Consumers Power let Mortgage 9.000 2008 A

REP le 75 9.00 9.08 Calf Power ist Mortgese 9.000 2008 A

$17 19 25 9.00 9.14 Mettore11 tan Edison lat Mortgage 9.000 2008 A

FEP 20 50 9.05 9.15 Public Service of Indiana let Mortgage 8.875 2008 As str 25 300 8.95 9.05 Public Service of Colorado 17 Nortgage 9.250 2006 As SEP 26 50 9.18 9.26 Central Illinois Publie Servlee las Mortgage 9.125 2008 Am 3c? 3 25 9.28 9.41 Detroit Edison Cen. 4 kef. Mort.

9.800 2008 baa of? 11 70 9.80 9.9)

Toledo Edison 1st Mortgage 9.625 2008 maa oc! 12 65 9.63 9.70 Commonwealth Edison let Mortgage 9.125 2008 Aaa DCT 17 250 9.20 9.29 New Orleens Public Service 1st Nortga6 s 9.500 2008 A

DCT 17 15 9.50 9.67 Georgia Power ist Mortgage 9.750 2008 naa OCT 18 100 9.80 9.90 Southern Calif ornia Edison let & Ref. Mort.

9.615 2003 Aa DCT 31 200 9.70 9.79 otter Tail Power let Mortgage

9. 6 *. 5 2008 A

NOT 14 20 9.63 9.76 Public Service Electric & Ces let & net. Mort.

9.375 2008 Aa MOT 15 100 9.30 9.38 Union Light, Heat & Power let Mortgage 9.500 2008 Aa DEC 5 10 9.40 9.58 Rouston Light & Power ist Mortfase 9.250 2008 Aa DEC 4 100 9.30

9. 56 Missiastypt Power ist Mortgage 9.625 2008 A

DEC 12 10 9.33 9.94 PgIE78 c-

~

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APosedia Fase 8 e

PUlitC Sfo@ 195085 fitC* TIC t"rILY?T OPr' AT1eC CCptPANg E

l INTEttf7 PRIECIPAL TItLP TO Ntf C0ff r

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CFFE11NC AMO,L.1r!

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PUBLIC 70 CtstPANT i

Co.-4N-ism un EmeC un 9

i&T W

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ni lous Pouer & Lagt; let mortgage 9.7SO 2004 Aa JAN I?

30 9.05 9.9$

heetana Power let nortgage 9.879 2009 a

JAN 18 SC 9.95 10.0' Arkasees Power & Light let nortgage 10.250 2004 Bee JAN 34 60 10.13 10.26 Tesas Power & Light let Nortgase 9.375 2009 Asa FEB 6 800 9.42 9.90 Teses fleettle service 1st hertgese 9.500 2009 Asa 75F "

75 9.57 9.69 Georgia Power let nortgage 10.S00 2009 nea Pts 21 100 10.50 10.59 Dee= esse Light les norte ge 3 C.125 2009 A

Pts 22 100 10.15 10.2S a

Cimetamatt Gee & Electrie 1st hertgage 10.000 2009 am MAR Il 100 9.87 9.96 heeeegahele Power 1st Mortgage IC. 300 2000 haa MAR 12

&S 10.47 10.57 91rgiais Electric & Pe=er ist & Sof. nors.

10.250 2009 A

apt 3 100 10.30 10.44 Golf States Otilattee 1st mortgage 10.125 2009 4

Art &

?S 40.13 10.12 Pacific Power & Light let hertgage d.22 20C9 tes APR 10 100 10.32 10.42 Georgio Pouer let Mortgage 11.000 2009 tes APR 18 125 11.00 II.12 5eett Caro 11ea tie.trie & Gas let & not. Mart.

10.125 2009 A

APR 18 35 10.13 10.28 Otah Power & Light 1st Isertgage 10.12$

29A A

APs 19 35 10.03 10.38 Ceesseers Power let nortgese 10.375 2009 APR 23,

100 10.4S 10.37 Golf Pouer let hertgage 10.2'4 2009 4

APR 24 30 30.30 10.47 Lestelana Pouer & Light let nortgage 10.875 1939 los APR 26 43 10.90 11.22 best Tease Ot111ttes 1st mortgage 9.875 2009 As MAT le 25 9.82 9.93 Carelsea Power & Light let mortgage 10.S00 2009 A

MAY 22 123 10.50 10.58 Pacifie Gas & Electric let & Ref. hort.

'O.125 2012 As JUN &

200 10.1S 10.16 Deke Power let & tel. Nort.

1.125 2009 JUN 7 ISO 10.13 30.29 Pen 11e servlee of Oklahees ist Mortgage

.62 5 2009 As JUw Il 75 9.63 9.72 Seett Corelies Electric & Gas let & tef. nort.

9.873 2009 A

JUN 13 SC 9.94 10.06 Penite Service Electrie & Gas let & net. hert.

9.750 2009 As JUL 17 800 9.72 9.83 I

testeeky Otilities let Ibetgage 9.62S 2009 As ADC 8 SO 9.30 9.60 I

loue Pahlic Servlee let Mor*gege 9.750 2009 As ADC 28 SO 9.43 9.93

(

Detroit Ediees Gee. & as.'. nort.

IC.875 2009 Sea SEP 12 100 10.97 11.09 l

Utah Power & Light ist mort.

10.250 2009 SEP 12 SS 10.12 10.30 Potenac Edisse 1st nors.

18.000 2009 Baa SEP 18 30 10.93 11.11 Public Servie, of low Emeeshire Ges. & Ref. Mert.

12.000 1999 Se SEP 20 60 12.00 12.33 Central madeon Ces & 11eettle let Mortgage 10.7S0 2009 A

StP 20 20 10.80 II.10 Telade Edieses 1st Mortgese 11.000 2009 bas SEP 25 75 11.03 II.la l

Lestev111e Gee & tieetrie 1st Mortgage 10.125 2009 Ana SEP 26 75 10.00 30.10 l

Dame Pouer le 2 & tet. nort.

10.875 2009 A

OCT 2 150 10.95 31.02 i

Palladelphia Electric ist & te f. Mort.

12.500 2005 A

OCT to 100 12.S0 a d.M 5eethere Califeresa Edison let & Bef. Nort.

11.750 2006 As CCT 10 200 11.85 11.01 Arisene Poh11e Service 1st unrtsage 11.125 2009 A

CCT 18 75 12.20 12.33 Caro 11aa Power & Light let Nortgarn 12.250 2009 A

OCT 30 100 12.23 12.39 Plegide Power & Light let Mortgage 11.11$

2009 A

ET S 75 12.30 11.37 Imetalane Power & Light let unrtgage 15.900 2009 See nov 8 SS 13.50

13. 73 Poh11e servlee Electrie & Ces let & Ref. nort.

12.00n 2009 As NOV 19 12S 12.00 11.09 Golf States Utilstles let nortgage i3.300 2009 A

E0r 27 73 12.30 42.43 DePtee Peaer & Light let Mortgage 12.125 2009 A

NOT 28 ES 13.23 12.37 Puget Sound Power & Light let Mortgage 12.625 1999 noe uov 19 SO 31.63 12.80 Esaeas CtrP Power & Light tot Mortgage 12.000 2009 A

gEC - 4 50 12.00 12.08 Petite Servlee of Oklahsee 1st Mortgage 11.375 2009 As DEC 10 SS II.40 31.50 Roostes Lighetes & Power les Mortgage 11.250 2009 As DEC 11 12S li.32

11. A6 1een Electria Light & Power let Mortgage 12.C00 2009 A

DEC 12 23 11.23 11.41 PSIt?9 1

i 1

amend t-Pete

• PUsL10 #0C fetUES ELECTA!C t**f tfTT OPtt ATf 40 COMPAv1tt E

INTEREST PRINCIPAL TIELE TO NET COST RATE MAft'RITT M000T*$

O'PERING AMOLNT PUBLIC 70 COMPANT C0=PAvv T MtT

-t-DATI RAT 14C CAT'

-tw'*-

-T. (Ai (si (c*

(D1 (E.

(F)

(;i (Hi (I)

Southwestern Electric Power let Mortssee 11.88.

2010 As JAK 7 60 11.88 11.98 Cons mers Power ist Mortgese 12.50 2010 A

JAN 9 100

12.,0 12.74 Duouesne Lisht let Mortsaae 12.25 2010 A

.'AK 10 60 P. 35 12.47 Central Power & Light ist Mortasse 12.38 2010 Aa JAN 21 75 42.38 12.48 Public Service of hew Manos %1re Gen. & Ref. Mort.

14.50 2000 ha JAN 22 30 14.50 14.94 Pacific Cas & Electric let & Ref. Mort.

12.75 2013 Am JAN 23 250 12.75 12.89 Atlantic City Electr16 ist Mortasse 12.43 2010 Aa JAM 23 75 12.63 12.73 Central 1111mois Public Service 1st Mortsame 13.63 2010 As PER 13 25 13.63 13.85 Lona Island Lightina Gen. & Re f. Nort.

14.25 2010 A

FEB 14 50 14.25 14.55 Culf Power let Mortasse 15.0C 2010 A

FE8 to 50 15.00 15.24 Plorida Power & Lisht let Mortasse 15.25 2010 A

FER 28 125 15.25 15.45 Public Service of Indiana let Nortante 14.00 2010 As MAR 4 100 14.00 14.13

$an Dieso Gas & Electric Ist Mortasse 16.00 2010 saa MAR 7 50 16.00 16.22 Temas Electric Service let Mortsare 14.13 2010 Ama MAR 11 75 14.20 14.38 Duke Power ist 6 Ref. Mort.

14.88 2010 A

MAR 12 100 14.95 15.11 consenwealth Ediswn Debentures 15.38 2000 naa MAR 19 125 15.38 15.55 Utah Power & Light ist 't.rtease 14.75 2010 A

MAR 19 60 14.75 14.91 Pennsylvania Powet. Light ist Mortasse 15.63 2010 AA MAR 25 100 15.70 15.92 Southern California Edison let 6 het. Mort.

15.13 2005 As MAR 31 200 15.25 15.38 Chis Edison let Mortsaee 15.50 2010 A

APR 9 50 15.50 N/A Mississipoi Power let Norteage 13.75 2010 A

APR 21 25 13.80 14.06 Philadelphia Electric Debentures 14.75 2005 Ras APR 23 100 14.67 14.88 Philadelphia Electric Debent6tes 14.13 1990

&aa APR 23 50 14.10 14.28 Plorida Power & Lisht ist Mortasse 11.30 2010 A

MAY 8 100 11.35 11.51 Texas Power & Light 1st Mortaase 11.38 2010 Asa MAY 15 50 11.45 11.60 Central Mudson cas & Electric ist Mortease 12.38 2010 A

MAY 13 25 12.38 N/A South Carolina Electric & Cas let Norttage 12.15 2010 A

MAY 29 50 12.15 12.29 Cincinnati cas & Electric ist Mortaase 12.00 2010 Aa MAY 29 100 12.00 12.13 Public fervice Electric & Ces 1st 4 Ref. Mort.

12.13 2010 Aa JLN 2 100 12.13 12.25 Mouston Lightins & Power lat Mortgate 12.00 2010 As JUN 3 100 12.10 12.12 Southweste's Public Service let Mortante 10.90 1990 Aa JUN 4 60 10.90 11.06 Culf states Ut111tles 1st Mortasse 11.75 2010 A

JUN 10 75 11.84 11.97 Comessners Power Ist Mortsare 12.38 2010 A

JUN 11 75 12.50 12.64 Alabama Power let Mortaase 12.43 2010 las JLN 12 100 12.63 12.81 Consonwealth Edison let Mortaage

!!.13 2010 A

JUN 17 60 11.17 11.32 ladiana 4 Michinen Electric let Mortsame 11.38 1990 Esa JUN 18 80 11.38 11.53 Ohio Edison 1st Mortsaae 11.84 2010 A

JUN 20 100 11.91 12.05 West Penn Power let Mortasse 11.13 2010 As Jun 24 30 11.13 11.26 Delmarva Power & Light 1st Mor. & Col. Tr.

11.75 2010 A

JUN 25 30 31 75 11.92 United 111minatinn Debentures 13.25 1990 Baa JUL 10 40 13.25 13.50 San Dieso Cas & Electric let Mortgage 13.63 2010 Baa JCL 30 75 13.63 13.78 Portland General Electric let Mortaste 13.88 2010 taa AUC 1 75 13.88 14.03 Marrasansett Electrie 1st Mortgese 13.00 2010 A

AUC 7 20 13.15 N/A

! linois Power ist Mortsene 12.43 2010 As AUC 13 50 12.70 12.85 I.ific Ces & Electric let & Ref. Mort.

12.88 2013 As AUC 13 250 12.90 N/A Duke Power 1st 4 Ref. Mort.

12.00 1990 A

AUC 19 75 12.11 12.77 Duke Power 1st 6 Ref. Mort.

13.13 2010 A

AUC 19 50 13.16 13.30 Public Servlee of Indiana let Mortsage 12.13 1990 Aa AUC 21 125 12.13 12.27 Baltimore Ces & F.lectric let 4 Raf. Mort.

12.13 1990 As SEP 10 75 12.13 12.30 Connecticut L1the & Power let & Ref. Mort.

14.38 2010 tea SEP 16 65 14.50 14.69 Western Massachusetts Elaetric let Mortaase 14.63 2010 naa SEP 16 25 la.65 14.90 Alabama Power let Mortsage 15.2" 2010 Sea SEP 17 150 15.30 15.59 Ducuesne Light ist Mortasee 14.1 2010 A

SEP 23 50 34-35 14.53 colunbus and Southern Ohio Ist Mortasse 13.63 1990 A

OCT I 80 13 63 13.79 Sierra Pacifie Power let Mortgese 14 63 2010 A

OCT 2 30 14.68 14.84 Philadelphia Electric let & Ref. Mort.

13.75 1992 A

OCT 6 125 13.75 13.90 Pacific Power & Light let Mortasse 14.75 2010 las CCT 8 50 14.87 15.05 Toledo Edison let Mortsaae 14.0c 1990 Baa CCT 8 65 14.00 14.20 Georgia Power let Mortsaae

1. 50 2010 tea OCT 15 75 14.57 14.73 Eastern Edison let *%r. & Col. Tr.

14.25 1990 naa OCT 16 15 14.00 14.38 Appalachian Power let Morttaae 14.63 1992 Baa CCT 29 00 14.63 14.78 Florida Power ist Mortgage 13.30 1990 A

NOV 13 100 13.30 13.50 Southern California P.dison let & Ref. Mort.

13.30 2010 As NOV 19 150 14.00 14.13 Pennsylvanta Power & Light let Mortasse 14.00 1990 Aa NOV 24 125 14.00 14.16 Central Hudson cas & Electric let Mortasse 14.50 199n las NOV 25 25 14.50 14.90 Public Service of New Rearshire Gen. & Re.f. Mort.

17.00 1990 la DEC 4 23 17.00 17.49 BONDIS

s 9

PUBLIC BOND ISSUES ELECTRIC UTILITY OPERATING COMPANIES 1

1981 INTEREST PRINCIPAL YIELD TO NET COST RATE MATURITY MOODY'S OFFERING AMOUNT PUBLIC TO 00H6'ANY COMPANY ISSUE

-I-

~ DATE RATING DATE

~~~LitM-

-Z-(A)

(B)

(C)

(D)

(R)

~~TF)

(GJ~~~

(H[~~~

(t)

Alsbana Power let Mortgage 14.75 1991 Baa JAN 6 100 14.75 14.96 New York State Electric & Cas let Nortgage '

14.50 1991 Ba a JAN 14 60 14.55 I4.87 wit.htngton Water Power let Mortgage 14.13 1991 JAN 15 40 14.13 14.36 Castrel Power & Light ist Mortgage 14.63 2011 JAN 19 75 I4.65 14.77 Commonwealth Edison ist Mortgage 14.00 1991 A

JAN 21 150 14.05 14.24 Wiresnsin Power & Light ist Mortgage 13.38 1991 Am JAN 22 45

13. 38 13.55 P4blic Seretce of Indiana let Mortgage 14.75 2011 As JAN 30 125 14.98 15.14 Hiu;tsa Lighting & Power let Mortgage 13.88 1991 A

FEB 3 125 14.04 14.21 Uxtan Electric let Mortgage 15.38 1991 Baa FEB 11 150 15.45 15.65 Long Irland Lighting Cen, & Ref. Mort.

15.75 1991 Baa PES 25 IDO 15.90 16.12 P c tf tc Power & Light lot Mortgage 15.63

,1991 maa MAR 3 75 15.70 15.92 Ptsrtdn Power & Light tot Mortgage 15.88 2011 A

MAR 4 125 15.88 16.08 Uttairs Mohawk Power Ist Nortgage 15.00 1991 A

MAR 10 50 15.00 15.39 Casrgta Power let Mortgage 16.13 1991 Baa MAR 11 50 16.20 16.42 i PSIE81

1. X

• ?.

E; E '

~

r Appendix Page 11 l

l PREFERRED STOCK YIELDS MOODY'S YEAR HIGH GRADE (aa)

MEDIUM GRADE (a-)

(A)

(B)

(C) 1950 3.75 4.18 1951 4.02 4.43 1952 4.03 4.44 1953 4.22 4.62 1954 3.94 4.27 1

1955 3.94 4.25 1956 4.18 4.49 1937 4.72 5.01 1958 4.51 4.83 1959 4.79 5.01 1960 4.85 5.06 1961 4.71 4,90 1962 4.52 4.74 l

1963 4.38 4.58 1964 4.49 4.68 1965 4.53 4.72

)

1966 5.19 5.41 1967 5.54 5.77 1968 6.07 6.28 1969 6.76 6.91 1970 7.55 7.77 1971 7.10 7.36 1972 7.23 7.43 1973 7.56 7.78 i

1974 9.26 9.79 l

1975 9.44 10.63

\\

1976 8.71 9.26 1977 8.12 8.50 1978 8.54 9.10 1979 9.53 10.16 1980 11.83 12.74 1981 - JAN 13.13

.3.P5 FEB 13.42 14.2t MAR 13.35 13.72 PRFSTY DK:PRFSTY.LST

]

Appendix Pcgi 12

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PREFERRED STOCK OFFERS DIRECT TO Pb8LIC ELECTRIC UTILITY OPERATING COMPANIES 1979 YlELD AT NET COST NUMBER OF PAR PRICE TO OFFERING ACCRECATE TO OFFERING SRARES VALUE DIVI DEND PUBLIC PRICE PROCEEDS COMPANY COMPANY DATE

_11,000)

- L-RATE (11 D00) _ g (A)

(B)

(C) 7D) 7f

'TFI (G)

(H)

(1)

Culf States Utilities JAN 16 350 100

$ 9.96 101.63 9.80 35,000 9.97 Act.nsas Power & Light JAN 24 600 25 10.402 26.00 10.00 15,000 10.31 Public Service of New Pkutco JAN 25 400 100 P '5%

100.00 8.75 40,000 8.87 Houston Lighting & Power JAN 30 300 No

$ 9.04 100.00 9.04 30,000 9.17 Texas Power & Light FER 6 300 NO

$ 8.84 99.33 8.90 29,798 9.00 Puget Sound Power & Light FER 6 2,000 25 9.362 25.0?

9.36 50,000 9.69 Artrona Public Service FER 14 600 100

$ 8.80 100.00 8.80 60,000 8.91 Ceorgia Power FE8 21 2,000 No

$ 2.56 25.10 10.20 50,200 10.59 Lout stana Power & Light FE8 22 3 50 100 11.482 102.50 1.20 35,000 11.80 Public Service of Indiana APR 3 350 100 8.962 100.0 8.96 35,000 9.08 Utah Power & Light APR 19 800 25

$ 2.36 25.54 9.24 20,000 9.89 Culf Power APR 24 100 100 9.522 lei.00 9.52 10,000 9.70 Interstate Power MAY 10 202 50 92 50.00 9.00 10,l00 N/A Arralschlan Power HAY 15 1,600 F0

$ 2.65 25.00 10.60 40,000 10.88 Public Service of New Hampshire NAY 15 I,200 25 11.24%

25.00 fl.24 10,000 11.75 Duke Power JUN 7 500 100 8.842 100.07 8.84 50,000 8.96 Arkansas Power & Light JUN 21 1,600 25 9.922 25.70 9.65 40,000 9.85 Lout stana Power & Light JUL 12 2,4 00 25 10.722 25.00 10.72 60,000 11.30 Rochester Cas & Electric JUL 12 250 100 8.60%

100.00 8.60 25.000 8.74 Central Power & Light JUL 23 500 100 8.722 100.00 8.72 50,000 8.80 Potomac Electric Pswer JUL 31 700 50

$ 4.23 50.00 8.46 35,000 8.54 Culf States Utilities AUC 2 350 100 8.642 100.00 8.64 35,000 8.75 Long Island Lighting AUC 28 750 100 9.802 100.00 9.80 75,000 9.97 Southern California Edison SEP 6 750 100 8.542 100.00 8.54 75,000 8.65 Louisville ces & Electric SEP 26 2 50 No

$ 9.54..

100.00 9.54 25,000 9.65 Indiana Michigan Electric OCT 2 1,600 25

$ 2.75 25.00 11.00 40.000

't.37 Loutstana Power & Light OCT to 1,600 25 13.122 25.00 13.12 40.000 14.67 Ohic Edinon OCT 10 2,000 NO

$ l.80 15.11 11.90 30,250 12.53 Commonwealth Edison NOV 7 750 NO

$11.70 100.00 11.70 75,000 II.97 Florida *ower NOV 20 500 100 10.501 100.00 10.50 50,000 10.63 Utah Power & Light DEC 12 2,000 25

$ 2.90 25.90 11.20 51,800 11.63 e4 41 PRF79

• E CE

Aspendi:

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PREFERRED STOCK OFFERS DIRECT TO PUBLIC ELECTRIC UTILITY OPERATING COMANIES 1988 YTELD AT NET COST nub 5ER OF PAR PRICE TO OFFERING ACCRECATE TO OFFERING SitARES VALUE DIVIDEND PUBLIC PRICE PROCEEDS COMPANY COMPANY DATE (1,000)

RATE

($1,000) (A)

(B)

(C)

(D) _

(E)

(F)

~~TCJ-~~

(la)

(1)

Incinesti Cas & Electric JAN 8 300 100 12.52%

100.00 12.52 30,000 12.7I icific Power & Light JAN 13 2,000 25

$ 3.75 25.00 15.00 50,000 15.61 slado Edis:n JAN 22 300 100 14.80%

100.00 14.80 30,000 15.05 li bana Power FER 20 1.600 1

15.69%

25.00 15.68 40,000 16.48 insac Csa & Electric FEB 25 300 NO

$15.50 100.00 15.50 10,000 15.77 ablic S2rvice Electric & Cas MAR 3 500 100 11.44%

100.00 13.44 50,000 13.59 5081 4%

• E..

Appendi Pare 1 COMPARABLE DATA MIDDLE SOUTH UTILITIES. INC.

AND SrJCTD CtNPARABLE ELECTRIC COMPANIES 9EVENUES TOTAL TM CE OF KttraLLS CLA55IFICATI N JF asvam;sa (IT79) 1975 - 1979 AVERAGE 1979 AVERAGE EQUIT)

PATOUT OPERATING COMPANY

($000) 1979 1975-1979 RESIDENTIAL COMMERCIAL INDUSTRIAL RATIO RATIO RATIO (A)

(B)

(C)

(L)

(E)

(F)

(G)

(H)

W (J)

MIDDLE SOUTH UTILITIES Total operations 1.823.059 Electric 1,669,451 91.6 92.3 33.4 21.5 31.9 29.2 35.5 85.0 LOC 131ANA POWER AND LIGHT Total operations

$57,476 Electrie 356,846 99.9 99.8 32.4 15.4 38.2 31.8 36.7 82.9 DETROIT EDISON Total Operations 1,698,511 Electric 1,667,679 98.2 t*.2 31.5 20.7 38.8 32.2 41.8 84.4 TLORIDA POWEA CORPORATION Y

Total Operations 835,493 Electric 835,493 100.0 100.0 42.7 23.2 14.5 34.4 48.9 82.9 FLORIDA POWER AND LICHT Total Operations 1,933,937 Electric 1,933,937 100.0 100.0 50.0 35.0 6.0 35.4 45.3 82.0 HAWAIIAN ELECTRIC Total Operations 332.832 Elect ric 332,832 100.0 100.0 33.3 26.7 38.7 33.9 59.0 85.3 1hlC ISLAND LIGHTING Total Operatoins 1,045.498 Electric 860,798 87.3 82.4 46.6 5.4 40.9 33.8 37.6 82.3 NEW YORK STATE ELECTRIC AND CAS Total operations 588,211 Elettrie 477,643 81.2 81.3 45.1 23.3 19.7 33.5

36. 3 80.9 NIACARA MOWRAWK POWER Total Operations 1,516,503 Electric 1,211,068 79.9 80.3 29.6 32.5 25.8 34.8 44.4 85.0 POTDMAC ELECTRIC POWER Tots; operations 749.333 Electric 749,333 100.0 100.0 24.6 50.01/

1/

34.3 36.7 77.7 UTAR POWER AND LIGRT Total Operations 521,789 Electric 520,836 99.8 99.8 28.3 19.3 27.0 37.1 27.7 73.3 VIRGINIA ELECTRIC POWER Total Operations 1,703,309 Electric 1,647,928 96.8 96.5 38.7 26.2 13.4 33.7 31.4 79.4 J/ Industrial combined with commercial.

MSUCMP

+

Append.

Page.

CO"MCN STOCK OFFERS DIRECT TO PUBLIC ELECTRIC t*f1LTTY OPERATIE COMPAN!!g S

NUMBER OF PRICE TO AGCREGATE OFFER 1NC SHARES PUBLIC PROCIEDS UNDERWRITING CORPORATE TCTAL 2 SELLING COMPA'tY DATE (1,030)

($t,000)

-s=

COSTS (AT (5)

(C)

(El (t)

(F)

(G)

(H)

(Il leva Public Service JAN 11 1.000 22.00 22,000 0.51 0.89 0.60 2.7 Misecort Public Service JAN 12 7 '.

• 15.88 3,175 0.47 c.36 0.83 5.2 Commonwealth Edison JAN 24 6,0 )0 28.00 168,000 0.84 0.05 0.89 3.2 El Paso Electric JAN 25 1,500 12.00 18,000 0.53 0.12 0.65 5.4 Duquesne Light TER I 2,750 18.15 49,913 0.55 0.08 0.63 3.5 South Carolina Electric & Cas FEB 1 1,30 18.25 27,375 0.54 0.06 0.60 3.3 Central Hudson Gas & Electric FEB 9 500 21.30 10,650 0.62 0.20 0.82

'.8 Bouston Industries FEB 22 2,000 29.30 58,600 0.82 0.07 0.89 a.8 Duke Power MAR 2 5,500 20.00 11C.000 0.58 0.03 0.61 3.1 Kansas City Power & Light MAR 15 1,200 28.25 22.900 0.80 0.06 0.86 3.0 Black Hills Power & Light MAR 16 300 22.75 6,825 0.75 0.25 1.00 4.4 Central Maine Power MAR 16 1.600 16.13 25,800 0.52 0.10 0.62 3.9 New York State Electrie & Gas MAR 21 2.000 18.63 37,250 0.53 0.06 0.59 3.2 Pennsy?vania Pawer & Light MAR 19 3,000 22.13 66,375 0.63 0.05 0.68 3.1 Minnesota Power & Light APR 5 1,500 21.00 31,500 0.61 0.06 0.67 3.2 ladianapolis Power & Light APR 17 1,000 23.25 23,250 0.65 0.10 0.75 3.2 Otter Tail Power MAT 3 450 21.75 9,788 0.64 0.17 0.81 3.7 Portland General Electric MAT 4 3.500 18.75 65,625 0.58 0.03 0.61

3. 3 Tucson Gas & Electric MAY 4 2,500 16.13 40,313 0.48 0.05 0.53

3. 3 1111 acts Power MAY 9 2,500 24.25 60,625 0.70 0.08 0.78 3.2 Public Service of New Respshire MAY 9 1.300 19.00 24.700 0.63 0.08 0.71 3.7 San Diego Gas & Electric MAY 11 2.500 15.00 37,500 0.47 0.05 0.!1 3.5 Toledo Edison ET 16 2,000 22.50 45,000 0.67 0.06 0.73 3.2 Kansas Power & Light MAY 17 1,700 20.63 35.063 0.61 0.06 0.67 3.2 Community Public Service HAT 23 200 20.38 4,075 0.68 0.45 1.13

5. 5 Utah Power & Light MAY 23 2,200 17.90 39.380 0.52 0.05 0.57 3.2 Cleveland nectrie 111minating MAY 24 3,000 19.38 58.125 0.58 0.05 0.63 3.3 Public Service of New Mexico JUN 1 1,600 19.63 31,400

0. 54 0.07 0.61 3.1 Niagara Mohawk Power JUr 6 3,500 14.25 49,675 0.46 0.06 0.52 3.6 Artsona Public Service JUN 7 2,500 19.75 49,375 0.55 0.05 0.60 3.0 tangor Nvdro-Electrie JUN le 300 15.25 4.575 0.64 0.32 0.96 6.3 Central Illinois Public Service JUN I4 1,700 13.63 23,163 0.44 0.09 0.55 3.9 Public Service Electric & Cas JUN 21 3,000 22.75 68,250 0.68 0.06 0.74 3.3 Northwestern Public Service JUN 22 400 17.75 7,100 0.48 0.19 0.67 3.8 Onited uluminating ML 24 1,000 26.25 26,250 0.87 0.13 1.00 3.8 Neve.a Power AUC 3 750 23.37 17.531 0.70 0.13 0.83 3.6 Ida'e Power ADG 8 1,200 27.00 32.400 0.65 0.08 0.73 2.7 Em tre District Electric AUG 10 660 15.13 9.983 0.50 0.14 0.64 4.2 El Paso Electric AUC 15 1,000 11.75 11,750 0.42 0.18 0.60 5.2 Dr.troit Edtoon AUG 16 5,000 16.38 81,875 0.48 0.04

0. 52 3.2 lows-1111 acts Cas & Electric SEP 12 750 21.63 16.219 0.64 0.13 0.77 3.6 Oklahoea Gas & Electric SEP 12 3,000 18.13 54,375 0.54 0.03 0.57 3.1 Consmers Power SEP 13 4,000 23.88 95,500 0.68

0. 04 0.72 3.0 Union Electric TEP 19 4,000 15.00 60,000 0.48 0.05 0.53 3.5 Rochester Gas & Electric

&EP 20 1,250 18.75 23,438 0.56 0.12 0.68 3.6 Dayton Power & Light SEP 21 2.500 17.00 42,500 0.53 0.15 0.68 4.0 Washington Water Power SEP 21 900 23.50 21,150 0.63 0.15 0.78 3.3 Public Service of Indiana SEP 27 2,000 26.50 53,000 0.77 0.05 0.82 2.1 Public Service of New Mexico DCT 4 2,000 20.50 41,000 0.57.

0.06 0.63 3.1 Sierra Pacific Power CCT 4 1,000 14.00 14,000 0.47 0.12 0.59 4.2 Caro 11aa Power & Light CCT 11 3,500 22.88 80,063 0.63 0.04 0.67 2.9 southern California Edison OCT 17 6,000 25.38 152,250 0.71 0.06 0.75 3.0 Paeffic Power & Light CCT 18 2,500 21.00 52.500 0.49 0.04 0.53 2.5 Culf States Utilities CCT 19 5,000 13.00 65,000 0.36 0.02 0.38 2.9 New York State Electric & Cas OCT 31 2,000 16.88 33,750 0.60 0.05 0.65 3.8 Public Service of Colorado NOV 1 3,000 16.13 48,375 0.58 0.05 0.63 3.9 Kansas Gas & Electric Nov 8 1.600 18.00 28,800 0.61 0.05 0.66 3.7 Puget Sound Power & Light Nov 14 2,000 15.75 31,500 0.56 0.05 0.61

3. 9 Cincinnati Cas & Electric Nov 20 2,800 19.75 55,300 0.66 0.05 0.71 3.6 Arizona Public Service Nov 21 3,500 19.63 68,688 0.60 0.04 0.64 3.3 San Diego Gas & Electric NOV 28 2,000 15.00 30.000 0.52 0.08 0.60 4.0 St. Joseph Light & Power Nov 30 4 00 13.00 5,200 0.50 0.19 0.69

?.?

Central 1111 acts Public Service DEC 6 1,700 13.00 22.100 0.47 0.06 0.53 6

Targinia Electric Power Company DEC 12 5,000 14.13 70,625 0.47 0.03 0.50 3.5 Utah Power & Light DEC 13 1,800 19.25 34,650 0.58 0.06 0.64 3.3 Northwestern Public Service DEC 21 40(

17.00 6,000 0.56 0.13 0.69 4.1 CS078 e

e Aprwr

'a s -

CoseK* SMcK OFFYR5 DIRECT TO PUBLIC ELECTRIC L'TILITT ONR.ATINC CDMPANIES M

NUMBER OF PRICE To waMATE OFFERING SHARES PUBLIC PROCEEDS UNDERWEITING CORPORATE TOTAL 2 $ELLING COMPANY DATY (1,000) ($1,000)

-$- CofTS (A)

(si

(;a U

(E)

(r)

(G)

" TIT

• Or Louisville Gas & Electric JAN 10 1,000 21.00 21.000 0.65 0.10 0.75 3.6 Public Service of New MaapsMn JAN 16 2,000

' 20.50 41,000 0.68 0.07 C.75 3.7 leva Power & Light JA5.8 375 25.38 9,516 0.65 0.09 0.74 2.9 El Paso 11petric JAN M 1,500 11.00 16,500 0.39 0.13 0.52 4.7 Atlantic City Electric Jt, 24 1,000 19.88 19,875 0.58 0.11 0.69 3.5 l

houston Industries FEB 7 2,000 29.13 58.250

' 14 0.05 0.79 2.7 Co m onwealth Edison FEB 8 7,000 26.75 187,250 a..* 6 0.05 0.91 3.4 Chio '.dison FEB 14 6,000 16.50 99,000 c...

0.03 0.56 3.4 Portland General Electric FEB 27 5,000 17.88 89.375 0.56 0.02 0.58 3.2 Minnessta Power & Light MAR 13 1,000 20.15 20.150 0.63 0.10 0.73 3.6 Duke Power MAR le 5,500 19.50 107,250 0.57 0.03 0.60 3.0 Eentucky Utilities MAR 28 1,000 20.00 20,000 0.61 0.10 C.71 3.6 Philadelphia Electric APR 3 4.000 16.38 65,500 0.51 0.04 0.55 3.4 lava Public Sernees APR 3 1.000 21.50 21,500 0.42 0.10 C.52 2.4 Otter T.11 Power APR 11 500 21.75 10.875 0.61 0.16 0.77 3.5 South Carolina Electric & Gas APR 18 1,000 16.88 16,875 0.5*

0.08 0.60 3.6 Illinois Pruer APR 19 3,000 22.25 66,750 0.70 0.00 0.78 3.5 Public Servict of Colorado APR 24 2,500 16.13 40,313 0.52 0.05 0.57 3.5 Black Rills Power & Light MAY 2 350 25.50 8.925 0.84 0.24 1.08 4.2 Eansas City Power & Light MAY 8 1,600 25.50 40,800 C.78 0.04 0.83 3.3 Public Service of New Mexico MAY 15 2,500 19.25 48,125 0.60 0.04 0.61 3.3 Delmarva Power & Light MAT 23 2,000 12.63 25,250 0.48 0.04 0.52 4.1 Miasouri Public Service JUN 6 300 11.75 3,525 0.47 0.25 0.72 6.1 Toledo Edison JUN 19 2,000 21.13 42,250 0.66 0.07 0.73 3.5 Utah Power & Light JUN 21 2,200 19.00 41,000 0.61 0.05 0.66 3.5 Artsona Public Service JUN 27 2,500 19.63 49,063 0.60 0.06 0.66 3.4 Public Service of New Maapshire JCL 11 2,000 19.50 39,000 0.63 0.06 0.69 3.5 San Diego Gea & Electric JUL 17 3,000 15.00 45,000 0.50 0.05 0.15 3.7 Detroit Edison JCL 17 6,000 16.88 89,250 0.47 0.03 0-D 3.4 Bostos Edison JUL 31 2,000 22.58 44,750 0.67 0.06 0.73 3.3 Cleveland Electric Illuminating AUG 1 4,500 18.00 81,000 0.58 0.04 0.62 3.4 El Paso Electric AUG 7 1,500 11.00 16,500 0.37 0.15 0.52 4.7 oklahoes Gas & Electric AUG 14 2,500 16.75 41,875 0.54 0.05 0.59 3.5 Idaho Power AUG 15 1,500 25.63 38,4 38 0.61 0.80 0.71 2.8 Nevada Power AUG 21 750 26.63 19,969 0.79 0.13 0.92 3.5 Public Service of Indiana AUC 28 2,000 25.25 50,500 0.68 0.06 0.74 2.9 Niagare Mohawk Power SEP 25 3,500 13.25 46,375 0.47 0.06 0.53 4.0 Eansas Power & Light OCT 3 1,800 18.50 33,100 0.64 0.05 0.69 3.7 Public

• rvice Elec. & Gas OCT 10 3,000 19.75 59,250 0.63 0.06 0.69 3.5 Paetfic Gas & Electric OCT 23 9,000 21.88 196,875 0.73 0.03 0.76

.3.3 Eansae 4.as & Electric OCT 31 t,000 15.50 31,0C9 0.56 0.06 0.62 4.t Gulf States Utilities NOV 1 3,500 11.38 39,8.i 0.36 0.03 0.39

3..

Duqueene Lisht NOV 8 3,800 14.00 53,20v 0.65 0.05 0.70

'.0 Northwestern Public Service Nov 13 300 15.00 4,500 0.60 0.18 0.78 5.2 Eentucky Utilities NOV 19 1,000 18.38 18.375 0.61 0.08 0.69 3.8 Virginia Elemic Powu NOV 19 6,000 11.25 66,750 0.45 0.02 0.47 4.2 Arisona Public Service NOV 20 2,500 17.25 43.125 0.56-0.05

0. M 3.5 Pennsylvania Power & Light NOV 27 2,500 18.50 46,250 0.60 0.07 0.C '

3.6 Central 1111 acts Public Service N' T 28 2,200 12.00 26,400 0.44 0.05 0.49 4.1 Pu8et Sound Power & Light NOV 29 3,000 14.38 43,125 0.53 0.04 0.57 4.0 Consumers Power DEC 4 4,000 20.25 81,000 0.64 0.03 0.67 3.3 love Electric Light & Power DEC 4 1,WO 14.63 14,625 0.44 0.10 0.54 3.7 Union Electric DEC 11 5,5L

11.63 63,938 0.44 0.03 0.47 4.0 l

CS079 D

Appendik Pf si 15 CO WOK f!OCK OFFERS DittCT TO PCBLIC ELECTRIC t*71117Y OPERATING Com?ANIES S

NUMBER OF PEICE TO AGGREGATE OFFERING SRAREs PUBLIC PROCEEDS UNDERWRITINC CORPORATE

. TAL 2 $1LLING C0utPANY DATE (1,000) ($1,000)

.*N -s-COSTS (A6 (Bn (Ce

(! ) ]

(E)

~ Yi)

(G'_

'YIf (1)

Portland General Electric JAN 10 4,000 14.38 57,500 0.54 0.03 0.57 3.96 Pacific Power & Light JAN If 3,000 14.75 56.250 0.48 0.05 0.53 2.83 Cincinnatt Gas & Electric JAN 29 3,400 16.13 54,825 0.55 0.04 0.**

3.66 Ohio Edison FEB 4 6.500 13.50 87,750 C.53 0.03 0.56 4.15 Southern California Edison FES 5 7,000 23.13 161,875 0.70 0.03 0.73 3.!6 El Paan Electric FE8 13 1.500 9.43 13.518 0.61 0.16 0.77 8.00 Carolina Power & Light FEB 13 4,500 16.88 75.938 0.52 T

C.55 3.26 Public Servlee of New maspshire FE3 20 1,500 14.75 22.125 0.95 w.08 1.03 6.98 central Hudson Gas & Electric FEB 21 500 16.50 8,250 0.77 0.17 0.94 5.70 Public Service of Colorado FE8 26 2,750 11.50 31,625 0.62 0.05 0.67 5.83 United Illuminating FIs 26 500 20.50 10,250 1.18 0.27 1.45 7.07 Co monwealth Edison FEB 28 8.000 18.?8 147,0uo 1.05 0.04 1.09 5.93 Texas Et111ttes MAR 4 5,000 15.50 77,500 0.65 0.04 0.69 4.45 Montana Power MAR 5 1,500 21.00 31,500 0.77 0.09 0.46 4.11 Arizona Public Service MAR 5 4,000 14.75 59.000 0.81 0.04 0.85 5.76 Illinoia Power MAR 6 3,000 15.88 47,625 0.85 0.06 0.91 5.73 Kansas City Power & L18.t MAR 19 1,500 18.50 27.750 0.94 0.05 1.03 5.57 San Diego Gas & Electric MAR 20 2,500 11.50 28,750 0.66 0.08 0.74 6.43 Upper Peninsula Power APR 2 200 12.00 2,400 0.72 0.55 1.27 10.58 Otter Trail Power APR 9 500 18.00 9,000 0.92 0.19 1.11 6.17 Kentucky Utilities APR 28 1,500 17.63 26,438 0.sd 0.05 0.83 4.71 Sierra Pacifie Power MAY 6 1,500 13.40 20,100 0.46 0.08 0.54 4.03 Public Service Electric & Gas MAY 8 5.000 20.38 101.875 0.65 0.03 0.68 3.34 Duquesne Light MAY 12 4,000 14.75 19,000 0.52 0.05 0.57 3.46 Kansas Gas & Electric MAY 13 1,500 16.38 24.563 0.53 0.06 0.59 3.60 Central Loeistana Enersy MAY 15 2.000 23.25 46,500 1.04 0.07 1.11 4.77 Detroit Edison MAY 15 4,000 13.13 52,500 0.50 0.03 0.53 4.04 Toledo Edison MAY 20 2.000 19.25 28.500 0.62 0.06 0.68 3.53 Titchburt Gas & Electric MAT 28 100 23.00 2,300 0.93 1.55 2.48 10.78 baskin8 ton heter Power JUN 11 1,600 18.75 30.000 0.67 0.10 0.77 4.11 Gulf States Otilities AN 18 3,000 12.50 37,500 0.45 0.03 0.48 3.84 Nevada Power JUN 19 1,000 24.13 24,125 0.74 0.10 0.84 3.48 United Illuminating JUN 19 1,000 22.13 22.125 C.97 0.14 1.11 5.02 Niagara Mohawk Power JUN 24 4,000 14.13 56,500 0.51 0.04 0.55 3.09 Dayton Power & Light KL 8 3,000 14.75 44,250 0.54 0.04 0.58 3.93 Louisville Gas & Electric RL 9 1,500 19.13 28,688 C.66 0.06 0.72 3.76 Publie service of New Manpshir-KL 9 2.500 17.13 42,813 0.67 0.05 0.72 4.20 Philadelphia Electric EL 10 7,000 15.00 105,000 0.52 0.02 0.54 3.60 Cleveland Electric Illuminating ADG S 4,000 16.50 66,000 9.56 0.05 0.6!

3.70 El Paso Electric ADE 2,000 10.30 20,750 0.41 0.11 0.52 5.01 Puget Sound Power & Light AUG 7 3.100 13.63 47,688 0.50 0.04 0.54 3.96 New Tork State Electric 4 Gas AUG 12 2,500 16.50 41,250 0.57 0.05 0.62 3.76 South Caro 11aa Electric & Gas ADC 12 1,000 15.75 15,750 0.53 0.01 0.54 3.43 towa-Illinois Gas & Electrie AUC 14 1,000 17.75 17,750 0.64 0.01 0,65 3.66 Duke Power AUG 19 4,000 17.38 69.500 0.58 0.03 0.61 3.51 Publie Servlee of Indiana AUG 21 2,700 20.88 56,363 0.49 N/A N/A N/A Idaho Powe-.

AUG 26 1,500 21.50 32.250 M3 0.11 0.74 3.44 Central Illinois Public service SEP 4 2,300 12.00 27,600 0.44 0.06 0.50 4.17 c

Saa Diego Cas & Electric SEP 5 2,000 14.00 28.000 0.49 0.07 0.56 4.00 Public service of Colorado SEP 9 4,000 13.13 52,500 0.47 0.04 0.51 3.89 Censumer's Power SIP 10 4,000 18.25 73,000 0.57 0.03 0.60 3.29 virginia Electrie & Power SEP 16 5,000 11.25 56,250 0.46 0.03 0.49 4.36 Florida Power SEP 17 3,000 14.88 44,625 0.50 0.03 0.53 3.56 Arasona Publie Service SIP 23 5,000 17.75 88.750 0.58 0.03 0.61 3.44 Boueton Industries CCT I 3,000 26.50 79,500 0.01 0.07 0.86 3.25 Utah tower & Light CCT 7 4,000 16.75 67,000 0.59 0.04 0.63 3.76 Carolina Power & Light DCT 28 4,000 18.25 73,000 0.56 0.03 0.59 3.23 El Paso Electric OCT 29 2,000 9.38 18,750 0.38 0.07 0.45 4.80 Hawaiian Electric 407 18 420 22.50 9.4 50 0.44 0.2C 1.04 4.62 Aceho ter Gas & Electric Nov 18 1,500 13.25 19,875 0.51 0.07 0.58 4.38 Central Maina Power Nov 19 1.600 12.25 19,600 0.a8 0.06 0.54 4.41 Kansas Cas & Olectric NOV 20 1,750 14.50 25.375 0.52 0.06 0.58 4.00 Pennsylvania Power & Light NOV 25 3,500 16.38 57,313 0.65 0.05 0.70 4.27 Central h oss* Gas & Electric Nov 25 650 17.36 11,294 0.59 0.13 0.72 4.14 Pierida Power & Light DEC 2 1,750 25.13 43,969 0.95 0.14 1.09 4.34 Detroit Edison DEC 4 2,250 11,13 25.031 0.52 0.06 0.58 5.21 Union Electrie DEC 9 5,500 10.63 58.438 0.49 0.04 0.53 4.99 Pacific Gas & Electric OEC 9 6,000 20.00 120,00C 0.74 0.04 0.78 3.90 Sangor Hydro-Electric DEC 10 250 10.13 2.531 0.63 0.36 0.99 9.78 r - nwealth Edison DEC I?

9,000 16.50 148,500 0.82 0.04 0.86 5.21 Gulf states Utilities DEC.7 2,000 10.63 21,250 0.39 0.05 0.44 4.14 COMMON

i i

i 4

COMEDN STOCK OFFERS DIRECT TO idBLIC j

ELECTRIC UTILITY OPERATING COMPANIES 1981 i

j NUMBER OF PRICE TO ACCR EGATE OFFERING SRARES PUBLIC PROCEEDS UNDERWRITI NG CORPor. ATE TOTAL 1 SELLING COMPANY DATE (1,000)

{11,000)

CDSTS 3

(A)

(B)

(C)

(D)

(E)

(F)

(C)

(H)

(t)

Southern California Edison JAN 22 8,000 24.38 195,000 0.83 0.04 0.87 3.57 3

Iowa Electric Light & Power J AN 2C 1,000 12.50 12,500 0.43 0.10 0.53 4.24 1

Cincinnati Cao & Electric JAN 29 2,000 15.25 30,500 0.65 0.07 0.72 4.72 Pubite Service of Indiana J AN 30 3,250 19.63 63,781 0.77 N/A N/A N/A l

P alic Service >f New Hampshire FEB 4 2,200 15.00 33,000 0.68 N/A N/A N/A Partland General Electric FEB 24 3,000

- 12.13 36,375 0.56 0.04 0.60 4.95 z

Public Service of New Mexico FEB 26 3,500 20.25 70,875 0.72 7,GJ 0.75 3.70 Houston Industrica MAR 6 3,000 25.25 75,75C 0.86 0.05 0.91 3.60 1

CS081 i

4

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2. nee,ee' Ik29 l+23 89,926.973

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Asi 2e ble2.eet t& ?5 kio 24,612.383

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lbg3 Sete te7m,Fe 99 00 E 3' t.9

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25. 581 ht8 13,490.955

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%ette to-,*ee Eemse, os ese ese6ee 44 og 395.199 E 2' kt9 6.M? 390 16 48 E IS b6

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3, tee.ees te.9e hte 4,291.000

.50

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9e,289,900 36

.H E3e 1.8 emetes teteen h 8 1.887,000 32.2e w?

34,410.95e

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APPHCIX Schedule.

MAT'EMATICAL PROOFS FOR DISCRETE AND CONTINUOUS 4

DISCOUNTED CASH FLOW MODELS DISCRETE MODEL IA.

ne(1 + g)

Deci + g>2....

c o (1 + g) t c1) p, (1 + k)

(1 + k):

(1 + k)*

As is well known, a geometric series of the form 1+r+r2 + r' + *** rt+

equals fr f# !#!*1*

i 1

In equation (1) above' 1 k can be viewed as r, since k > g, 1

T because 1 + k > l + c, hence y k<

1.

Therefore, equation (1) becomes:

r D e (1 + g) 1+g (1 + g): +

(2)

Pc (1 + k) y,1+k,

=

F (1 + k)2 6e d

De(1 + g) 1

=

d (1 + k) y,1+g 6

1+ke Do(1 + g) as De (1 + g), we have 1 + k - 1 g ; defining Da D'

(3)

Pc

solving for k produces

=

hp+g (4) k

=

A'c7a.OI Sched; ale THEORITICAL TLIrSTRATION OF A DISCRETE " DISCOUNTED CASE ROW" MDDEL Civen:

a) Purchase Price

$100 per share at and of year 0

=

b) Dividends

$4.80 per share at and of year 1

=

c) Dividends and Market Price expected to increase at constant rate of 3.22 per year and, therefore.

Market Price at and of year 5 will be equal to

$117.06.

To Find:

The Capitalisation Rate, k which will equate the value at date of purchase of expected future cash receipts to the purchase price.

VALUE AT DATE OF PURCEASF 0F EI?ECTED FUTURE CASH RECEIPTS Discounted at a 61 Discounted at a 101 Discounted at an 81 Capitalisation Rate Casitalisettoe Rate Capite11:stion Rate Cash Dividende End of Purchase Expected to Expected Year Price be neeeived Sale Price Factor 1/ h Factor 1/ Value Fact or 11 h (A)

(B)

(C5 (D)

(E)

(F)

(G)

X (1)

_ _ {J_1_

0

$100.00 1

54.80

.943

$4.53

.909 84.36

.926 54.45 2

4.96

.890 4.41

.826 4.10

.857 4.25 3

5.11

.840 4.29

.751 3.84

. 79 '.

4.06 4

5.27

.792 4.17

.683 3.60

.7J5 3.87 5

5.44

~~

.74 7 4.07

.621 3.38

.681 3.70 5

$117.96

.747

$8 7.48

.621

$JJ,d1

.681

$ 79. 67 TQZAL VALUE AT DATE OT PUROBASE OF EXPECTED TL*TURE CASH SECEIPTS

~~

a) Discounted at 63 Capitalisation Rate M

=

,, m.co.t.d at m C.,itu i.. tion. ate m,a

=

t>

m.co t., at.s C.,itui.. tion Rata

=

............................ n00.00 EQUA1.ITY PRODUCED AT SZ CAPITALIZATION RATE k=

+ g1k=

+ 3.22 = 81 3

p factors taken f rom "Present Value of 1" table. This factor indicates the present value of 1 to be received in the future in the 118ht of a 81ven discount or capitalisation rate. For example. $1 to be received onc year in the future, discounted by 6% rate, has a present value of 94.34 as shown in Column (E).

APPE,OIX Schedule *J DISCRETE MODEL IB.

/2 De (14 g)'/6

, Do(1 + g)l/*

De(1 + g)

(1 + '/4)

(1 v k/ 2) 4 (1 + 3K/4)

, De (1 + g), (De (1 + g)f 4) (1 +

6 (y) p (1 + k) 1 +k For ese of exposition, let 1 + B = (1 + g)

hence (1 + B)" = (1 + g);

2 (1 + B)g (1 + g) etc.

The expression for Po in equation (1) sbove, can be

=

written with four terms per line as follows.:

1 + b) 1 + g)s (2)

P = 1 +3

. ((1 + k)y + g)*

g

+ ((1 + K/2 ) h

+ ((1 + %4 ) p*

h 1 + K/4

~

D'))

• g6 ((1+k)

[(1 +g)=

1 + B) 2 (1 + p )*

(1 + B):

(1 + g ) 6 (1+B) (1 +B)"

,1 + k)Do +((1 + R/2)

.(1 + k) 0

• (1 + 1K/4),(1 + k)

(1+k/4)

(

(1 + k)

'(1 + B)' De

+ (1 + B )

+ ***

(1+k/4) (1 + k) 2 It will be noted that the successive terms in each column are a geom-tric series of the form:

1+r+r2+r8+ *** + rt + ***, which equals

1. l#l<1*

r Hence we can write (2) as follows by summing down each of the four columns:

1 1 + g) 2

,(1 + k)'

1+B 1+g (3)

Po p'

=

1 + K/4 1+k

(

1. ((1 + B )

• D 1 + g)*

+ ((1 + k) ',,,,

l+E

+

1 +k/)

14k 2

l r

s

+ ((1 + B ) ' D'

+ ((1 + k) 2 +

+E

+E l

1+

1 + 3k/4) 1+K

,(1 +B)"'Do g) 1+

+

,,o (1 + k) 1+k (1 + k)

Equation (3) can be rewritten as follows:

r E

E (4)

P' = D' (1 + k/4) + (1 + K/2)

(1 + 3k/4) + (1 + k) k-g

+

4

~

s s

As can be seen there is no closed form expression sclution for k in this equation as there was for Discrete Model IA.

However, :fnee Po, Do and g are knowns, k can be solved for through iterative techniques.

APPE CIX Schedule 4 DISCRETE MODEL IC.

(1)

Pc =

gy,af4) Do + (1 k/2) Do + (1 + 3k/4) Do + (1 + k)

• + (1 + K 4 (14 g) b C (1 + k 2 (1 + k)

The expression for Po in equation (1) above, can be written with four terms per line l

as follows:

(2) Po =

(1,gj4) Do

+(1 + k/2)

+

+ (1 k)

(1 + 3k/4) 1 MM 1

(1 +g) 1 (1 + R) 1 (1+:

+

(1 + '/ 4 )

(1 + k) g (1 + K/2)

(1 +k) p (1 + J'/4)

(1 + k)

, (1+k)

(1+1

+

4 1

(1 + EI

+ (1 + k/ )

(1 + k)2Do +...

4 It will be noted that the auccessive terms in each column are a geometric series of the form:

1+r+r2+r2+

+rt +..., which equals for lr l < 1.

Hence we can write (2) as follows by summing down each of the four columns:

De 1+g (1 + g)2 (3) y,.

(1 + '/4) 1 + k (1 + k)*

De 1+g (1 4 g):

(1 + '/ 2)

,,1 + k, (1 + k)2.,,,

f De 1+r (1 + g)2 4 (1 + 3k/4) y,1+k (1 + k)'

Equation (3) can be written as follows:

P (4)

Po = De

+

g + k/Q g

k/2) +g J'/g + 2 + k) k g

4 s

s As can be seen, there is no closed form expression for k in this equation as there i

1 was-for Discrete -tiodel 1A.

Hov 2ver, Since Po, Do and g are knowns, k can be solved _

for through iterative techniques.

l 1

APPECIX Sc:hedule 5 CtJIINUOUS MODEL II.

The present value of any expected dividend per share, D, to be paid in t g

years from now is:

D.

51)

(1 + k)L The current market price, Pc, is the sum of all future expected dividends per shara, D ; hence, t

Dt (2)

Pi =

(1 + k)t t=1 i

If it is assumed that the dividend is paid and discounted continuously, we have:

(3)

Po =

D e dt g

l Since the dividend is assumed to grow continuously, the expected dividend, D, can be written as follows:

g 8

(4)

D = De e

, where Do is the current dividend and g is the growth rate.

g Substituting equation (4) into equation (3), we have:

8

~

(5)

Pc =

De e e

dt o

~*(

8)dt; hence, 1-(6)

Po = Do e

o Do (7)

Po =

p, Solving for k, we have:

_(8-)._ k

+g

~

=

That equation (6) leads to (7) can be seen by supposing P, were being evaluated from time O to time x; we would then have:

APPLCIX Schedule 6 p

,-t (k-g) d t 1

-t(k-g) 1

-t(k-3)

De (g.,) e De (k-3)

• i

=

, t= x

. t=0 1

-x(k-3) 1 De (k-g) e Do

=

(k g)

~

y,,-x (k-g)"

De j

p,,

,x-g

~*

~E Since Po is being evaluated from time O to a, as x + =,e goes to zero.

Hence the term 1 - e *( "I

~

goes to 1, and Po is simply equai k-I

(

{

F 4

e a

-