Cash Flow Statement Q FINANCIAL UPDATE QUARTERLY REPORT OF THE U.S. SHAREHOLDER-OWNED ELECTRIC UTILITY INDUSTRY

Transcription

1 Cash Flow Statement Q FINANCIAL UPDATE QUARTERLY REPORT OF THE U.S. SHAREHOLDER-OWNED ELECTRIC UTILITY INDUSTRY

2 About EEI The Edison Electric Institute is the association of U.S. shareholderowned electric companies. Our members serve 95% of the ultimate customers in the shareholder-owned segment of the industry, and represent approximately 70% of the U.S. electric power industry. We also have 79 international electric companies as Affiliate members and more than 190 industry suppliers and related organizations as Associate members. About EEI s Quarterly Financial Updates EEI s quarterly financial updates present industry trend analyses and financial data covering 70 U.S. shareholder-owned electric utility companies. These 70 companies include 61 electric utility holding companies whose stocks are traded on major U.S. stock exchanges and nine electric utilities who are subsidiaries of nonutility or foreign companies. Financial updates are published for the following topics: Dividends Stock Performance Credit Ratings Construction Rate Case Summary Fuel Income Statement Balance Sheet Cash Flow Statement Business Segmentation For EEI Member Companies The EEI Finance and Accounting Division is developing current year and historical data sets that cover a wide range of industry financial and operating metrics. We look forward to serving as a resource for member companies who wish to produce customized industry financial data and trend analyses for use in: Investor relations studies and presentations Internal company presentations Performance benchmarking Peer group analyses Annual and quarterly reports to shareholders We Welcome Your Feedback EEI is interested in ensuring that our financial publications and industry data sets best address the needs of member companies and the financial community. We welcome your comments, suggestions and inquiries. Contact: Mark Agnew Manager, Financial Analysis (202) , magnew@eei.org Amanda Morey Financial Analyst (202) , amorey@eei.org Future EEI Finance Meetings EEI Annual Finance Committee Meeting May 21, 2008 Waldorf-Astoria New York, New York 43rd EEI Financial Conference November 9-12, 2008 Marriott Desert Ridge Phoenix, Arizona EEI International Financial Conference March 8-11, 2009 London Hilton on Park Lane London, United Kingdom For more information about EEI Finance Meetings, please contact Debra Henry, (202) , dhenry@eei.org Edison Electric Institute 701 Pennsylvania Avenue, N.W. Washington, D.C

3 The 70 U.S. Shareholder-Owned Electric Utilities Allegheny Energy, Inc. (AYE) ALLETE, Inc. (ALE) Alliant Energy Corporation (LNT) Ameren Corporation (AEE) American Electric Power Company, Inc. (AEP) Aquila, Inc. (ILA) Avista Corporation (AVA) Black Hills Corporation (BKH) CenterPoint Energy, Inc. (CNP) Central Vermont Public Service Corporation (CV) CH Energy Group, Inc. (CHG) Cleco Corporation (CNL) CMS Energy Corporation (CMS) Consolidated Edison, Inc. (ED) Constellation Energy Group, Inc. (CEG) Dominion Resources, Inc. (D) DPL, Inc. (DPL) DTE Energy Company (DTE) Duke Energy Corporation (DUK) Duquesne Light Holdings, Inc. Edison International (EIX) El Paso Electric Company (EE) Empire District Electric Company (EDE) Energy East Corporation (EAS) Energy Future Holdings Corp. (formerly TXU Corp.)^ Entergy Corporation (ETR) Exelon Corporation (EXC) FirstEnergy Corp. (FE) FPL Group, Inc. (FPL) Great Plains Energy Incorporated (GXP) Green Mountain Power Corporation Hawaiian Electric Industries, Inc. (HE) IDACORP, Inc. (IDA) Ipalco Enterprises, Inc. Integrys Energy Group, Inc. (TEG) Kentucky Utilities ** KeySpan Corporation (KSE) Louisville Gas and Electric ** Maine & Maritimes Corporation (MAM) MDU Resources Group, Inc. (MDU) MGE Energy, Inc. (MGEE) MidAmerican Energy Company Niagra Mohawk Power Corporation NiSource Inc. (NI) Northeast Utilities (NU) NorthWestern Corporation (NWEC) NSTAR (NST) OGE Energy Corp. (OGE) Otter Tail Corporation (OTTR) Pepco Holdings, Inc. (POM) PG&E Corporation (PCG) Pinnacle West Capital Corporation (PNW) PNM Resources, Inc. (PNM) Portland General Electric Company (POR)* PPL Corporation (PPL) Progress Energy (PGN) Public Service Enterprise Group Inc. (PEG) Puget Energy, Inc. (PSD) SCANA Corporation (SCG) Sempra Energy (SRE) Sierra Pacific Resources (SRP) Southern Company (SO) TECO Energy, Inc. (TE) UIL Holdings Corporation (UIL) UniSource Energy Corporation (UNS) Unitil Corporation (UTL) Vectren Corporation (VVC) Westar Energy, Inc. (WR) Wisconsin Energy Corporation (WEC) Xcel Energy, Inc. (XEL) Note: Includes the 61 shareholder-owned electric utility holding companies plus an additional 9 electric utilities (shown in italics) that are not listed on U.S. stock exchanges for one of the following reasons i. they are a subsidiary of an independent power producer, ii. they are a subsidiary of a foreign-owned company, or iii. they were acquired by an investment firm. Stock symbols are shown in parentheses. *Portland General transitioned from private ownership to become a publicly traded company on April 3, The EEI Index includes Portland General beginning on January 1, **Kentucky Utilities and Louisville Gas and Electric, both subsidiaries of E.ON AG, were added to the EEI coverage universe effective January 1, EEI s historical industry financial data now includes their results. ^TXU (now Energy Future Holdings Corp.) was acquired by the Texas Energy Future Holdings Limited Partnership (TEF) on 10/10/2007. TEF was formed by a group of investors led by Kohlberg Kravis Roberts and Texas Pacific Group to facilitate the merger.

4 Companies Listed by Category (as of 12/31/06) iven the diversity of utility holding company corporate G strategies, no single company categorization approach will be useful for all EEI members and utility industry analysts. Never-theless, we believe the following classification provides an informative framework for tracking financial trends and the capital markets response to business strategies as companies depart from the traditional regulated utility model. Regulated Mostly Regulated Diversified 80%+ of total assets are regulated 50% to 80% of total assets are regulated Less than 50% of total assets are regulated Categorization of the 65 publicly traded utility holding companies is based on year-end business segmentation data presented in 10Ks, supplemented by discussions with company IR departments. Categorization of the 5 non-publicly traded companies (shown in italics) is based on estimates derived from FERC Form 1 data and information provided by parent company IR departments. The EEI Finance and Accounting Division continues to evaluate our approach to company categorization and business segmentation. In addition, we can produce customized categorization and peer group analyses in response to member company requests. We welcome comments, suggestions and feedback from EEI member companies and the financial community. Regulated (42 of 70) Alliant Energy Corporation Ameren Corporation American Electric Power Company, Inc. Aquila, Inc. Central Vermont Public Service Corporation CH Energy Group, Inc. Cleco Corporation CMS Energy Corporation Consolidated Edison, Inc. DPL, Inc. Duquesne Light Holdings, Inc. El Paso Electric Company Empire District Electric Company Energy East Corporation Entergy Corporation Great Plains Energy Incorporated Green Mountain Power Corporation IDACORP, Inc. IPALCO Enterprises, Inc. Kentucky Utilities KeySpan Corporation Louisville Gas and Electric Maine & Maritimes Corporation MGE Energy, Inc. Niagara Mohawk Power Corporation Northeast Utilities NorthWestern Corporation NSTAR PG&E Corporation Pinnacle West Capital Corporation Portland General Electric Company Progress Energy Puget Energy, Inc. Sierra Pacific Resources Southern Company UIL Holdings Corporation UniSource Energy Corporation Unitil Corporation Vectren Corporation Westar Energy, Inc. Wisconsin Energy Corporation Xcel Energy, Inc. Mostly Regulated (19 of 70) ALLETE, Inc. Avista Corporation CenterPoint Energy, Inc. DTE Energy Company Edison International Exelon Corporation First Energy Corp. FPL Group, Inc. MidAmerican Energy Holdings NiSource Inc. OGE Energy Corp. Otter Tail Corporation Pepco Holdings, Inc. PNM Resources, Inc. PPL Corporation Public Service Enterprise Group, Inc. SCANA Corporation TECO Energy, Inc. WPS Resources Corporation * Diversified (9 of 70) Allegheny Energy, Inc. Black Hills Corporation Constellation Energy Group, Inc. Dominion Resources, Inc. Duke Energy Corporation Hawaiian Electric Industries, Inc. MDU Resources Group, Inc. Sempra Energy TXU Corp.^ Note: Based on assets at 12/31/06 *Changed name to Integrys Energy Group, Inc. effective February 21, 2007 ^TXU (now Energy Future Holdings Corp.) was acquired by the Texas Energy Future Holdings Limited Partnership (TEF) on 10/10/2007. TEF was formed by a group of investors led by Kohlberg Kravis Roberts and Texas Pacific Group to facilitate the merger.

5 Q Cash Flow Statement HIGHLIGHTS mdue primarily to sharply rising capital spending, the industry s free cash flow remained negative in 2007 for the third straight year after reaching positive levels in 2003 and mcapex totaled $69.1 billion for the 12-month period ending December 31, 2007, $28.9 billion, or 71.9%, above the $40.2 billion spent during the 12-month period that ended on September 30, 2004, the cyclical low following the competitive generation build-out. mrising infrastructure investment and global construction cost inflation are driving capex higher. EEI s spring 2007 study based on 10K data and discussions with companies indicates that the industry-wide capex should reach at least $75 billion in 2008 and $75.5 billion in We are currently revising these figures based on the latest company data, and expect to release updated projections for this spring. COMMENTARY Net Cash Provided by Operating Activities Net Cash Provided by Operating Activities decreased by $7.8 billion, or 11.2%, to $61.7 billion in 2007 from $69.4 billion in This measure declined for 55% of the shareholder-owned electric utilities, with 26 companies, or 39% of the industry, posting double-digit percentage decreases. The industry s total decreased, on a year-to-year basis, for each of the last three quarters of 2007 after increasing in Q and every quarter of If Dominion Resources $4.3 billion year-to-year decline is removed, the industry s decrease was 5.4% in $ Billions (5.0) (10.0) (15.0) (20.0) (25.0) U.S. Shareholder-Owned Electric Utilities Source: SNL Financial and EEI Finance Department / r = revised $ Billions 2000 (19.9) 2001 (14.8) 2002 I. Free Cash Flow (6.0) $ Billions r 2007 Net Cash Provided by Operating Activities Capital Expenditures (47.4) (57.2) (49.0) (43.0) (41.1) (48.4) (59.9) (69.1) Dividends Paid to Common Shares (14.6) (13.1) (13.4) (12.3) (13.2) (15.1) (16.1) (16.6) Free Cash Flow (19.9) (14.8) (6.0) (13.2) (6.6) (24.1) II. Capital Spending Trailing 12 months U.S. Shareholder-Owned Electric Utilities 2003 Q Q Q Q Q4 Source: SNL Financial and EEI Finance Department (13.2) 2006r (6.6) (24.1) EEI Q Financial Update

6 2 CASH FLOW STATEMENT $ Billions III. Net Change in Long-Term Debt U.S. Shareholder-Owned Electric Utilities Q Q Q Q Q1 Source: SNL Financial and EEI Finance Department Note: Figures taken from Consolidated Balance Sheet As shown in Table IV, the key components of the change were a $6.6 billion drop in the cash contribution from Change in Working Capital and a $3.6 billion decline in the contribution from Other Operating Changes in Cash. These were partially offset by a $2.8 billion increase in net income. The swing in Change in Working Capital was led by Entergy s $1.4 billion move from a positive $990 million contribution last year to a negative $424 million in This was mostly due to a $582 million decline in deferred fuel and a $471 million net change in receivables from a positive $408 million in 2006 to a negative $63 million in Overall, the Change in Working Capital contribution was less for 54% of companies in 2007 versus a year ago. The contribution from Other Operating Changes in Cash declined from -$1.0 billion in 2006 to -$4.6 billion in The difference can be traced to Dominion s decrease from -$109 million in 2006 to -$3.1 billion in This reconciling adjustment to net income mostly relates to Dominion s sale of its Mid-Continental natural gas and oil exploration and production properties in August, the final of several planned E&P property sales conducted as part of the company s strategic refocusing on its power generation and energy distribution, transmission, storage and retail businesses. Cash Flows from Investing Activities Net Cash Used in Investing Activities decreased by 15.0%, falling from $59.2 billion in 2006 to $50.4 billion in The decline was due to a $22.2 billion, or 27.5%, decrease in cash used for asset purchases, which was somewhat offset by a $9.3 billion, or 15.5%, increase in capital expenditures. Duke Energy had the biggest impact on asset purchases, as this amount fell by $10.1 billion in 2007, from $33.9 billion in 2006 to $23.8 billion in The change was the result of a decline in Duke s purchase of available-for-sale securities, IV. Consolidated Cash Flow Statement U.S. Shareholder-Owned Electric Utilities ($Millions) r % Change Cash Flows from Operating Activities: Net Income 33,933 31, Depreciation and Amortization 35,577 35, Deferred Taxes and Investment Credits 2,848 3, Operating Changes in AFUDC (325) (191) 70.2 Change in Working Capital (5,767) 844 NM Other Operating Changes in Cash (4,600) (1,008) Net Cash Provided by Operating Activities 61,666 69, Cash Flows from Investing Activities: Capital Expenditures (69,146) (59,859) 15.5 Asset Sales 80,352 82, Asset Purchases (58,433) (80,608) Net Non-Operating Asset Sales and Purchases 21,919 1,796 NM Change in Nuclear Decommissioning Trust (288) (1,039) Investing Changes in AFUDC Other Investing Changes in Cash (3,007) (222) NM Net Cash Used in Investing Activities (50,378) (59,234) Cash Flows from Financing Activities: Net Change in Short-term Debt 3,318 3, Net Change in Long-term Debt 7, NM Proceeds from Issuance of Preferred Equity Preferred Share Repurchases (314) (556) Net Change in Preferred Issues Proceeds from Issuance of Common Equity 4,813 10, Common Share Repurchases (11,902) (6,261) 90.1 Net Change in Common Issues (7,090) 3,746 NM Dividends Paid to Common Shareholders (16,603) (16,126) 3.0 Dividends Paid to Preferred Shareholders (78) (84) -6.8 Other Dividends (299) (187) 59.7 Dividends Paid to Shareholders (16,981) (16,397) 3.6 Other Financing Changes in Cash Net Cash (Used in) Provided by Financing Activities (12,648) (8,773) 44.2 Other Changes in Cash Cash and cash equivalents at beginning of period 12,600 11, Cash and cash equivalents at end of period 11,289 12, Net increase (decrease) in cash and cash equivalents (1,311) 1,540 NM Source: SNL Financial and EEI Finance Department / r= revised with all of the change occurring in Q4 of the year-to-year comparison. Overall, 85% of the shareholder-owned electrics increased their capital expenditures over last year while UIL Holdings, Otter Tail Power and Westar Energy had the largest percentage gains. UIL increased capex by 223%, from EEI Q Financial Update

7 CASH FLOW STATEMENT 3 $77 million in 2006 to $248 million in 2007, largely for distribution and transmission infrastructure. Otter Tail s capex rose by 133%, from $69 million in 2006 to $162 million in 2007 three-fourths of the increase was used for the expansion, replacement and improvement of the electric operations at this diversified utility. Westar recorded a 117% jump in capex, from $345 million in 2006 to $748 million in Westar directed 70% of its 2007 capex to generation, with 40% of that amount going to environmental capex. The remainder was used for distribution (13%), transmission (9%), nuclear fuel (5%) and other (3%). Industry-wide capex began to rise in 2005, which saw the first significant full-year increase since the industry s competitive generation build-out peaked in 2001 ($56.8 billion was spent on capex in 2001). The recent steady increase in capex is depicted in Table II. The $69.1 billion spent during the 12 months ending December 31, 2007 is $28.9 billion, or 71.9%, above the $40.2 billion spent during the 12- month period that ended on September 30, 2004, the cyclical low following the competitive generation build-out. Companies are now boosting spending on environmental compliance and transmission and distribution upgrades, and are beginning to announce new generation projects in many power markets to ensure adequate reserve margins over the long term. But the overall rise in capex is affected by other key factors, including an ongoing rapid rise in construction material costs and the recent trend of generation plant cancellations, most notably of coal-fired plants. Construction material costs have been on a steady rise in recent years. According to the latest Handy-Whitman Index of Public Utility Construction Costs, construction costs have increased by an average rate of 4.8% per year since 2000 (a total of 32%) for transmission and 5.4% per year (37% since 2000) for distribution. Plant cancellations have somewhat offset this trend. In 2007, almost 61% more generation capacity was cancelled than in the prior year, with the majority of the 2007 cancellations (84%) being coal-powered. While rising construction costs and strategy changes were cited in a few cases, the primary reason behind the wave of cancellations was uncertainty over the cost of compliance with future greenhouse gas regulations. It should be noted that although capacity cancellations rose significantly in 2007, the 16,577 MW of 2007 cancellations is below the 2003 (27,110 MW) and 2005 (20,209 MW) levels, which mostly consisted of natural gas-fired generation cancellations. The weighted impact from each of these three primary forces an increase in overall capex, rising construction costs, and cancellations or delays that reduced original projections is difficult to assess. The bottom line is that overall capex has been on a steady rise since 2004 and is forecast to continue to rise well into the future. A 2006 study by Cambridge Energy Research Associates (CERA) projects that the industry s total capex over the next 15 years will total $900 billion, and that s without incorporating the effects of likely climate legislation. According to EEI s spring 2007 study of industry capital spending based on K data, company presentations and discussions with companies: Industry capex is projected to reach approximately $75 billion in 2008 and $75.5 billion in s total capital spending was expected to be allocated as follows: Generation, 31%; Distribution, 30%; Environmental, 14%; Transmission, 12%; Natural Gas-related, 6%, Other, 7%. All components of capex are growing, with environmental spending growing at the fastest rate. Total dollars spent on environmental capex nearly doubled from 2005 to EEI s Finance Department is currently revising these figures based on the latest company data, and expects to release updated projections for this spring. Cash Flows from Financing Activities Net Cash Used in Financing Activities surged by 44.2%, increasing from $8.8 billion in 2006 to $12.6 billion in The majority of the increase came from a $5.6 billion, or 90.1%, rise in common share repurchases and a 5.2 billion, or 51.9%, drop in common equity issuances. These factors were offset by a $7.2 billion rise in the net cash provided by issuance of long-term debt. Common share repurchases surged from $6.3 billion in 2006 to $11.9 billion in 2007, the vast majority by Dominion and Exelon. The third quarter of 2007 was the dominant period for share repurchase, as Dominion bought back $5.6 billion and Exelon $1.2 billion. Dominion had an overall year-to-year increase in share repurchases of $5.2 billion, with Exelon adding a year-to-year net increase of $1.0 billion. Dominion used proceeds from the sale of its US non- Appalachian E&P business to repurchase shares as well as to reduce debt. Exelon uses share repurchases from time to time to return cash to its shareholders after funding system maintenance and other commitments, and in the absence of higher value-added growth opportunities. The industry saw a significant rise in the net change in long-term debt, rising to $7.5 billion in 2007 from $383 million in 2006, and extending the trend from last year when the net change in long-term debt swung into positive territory from a negative $2.7 billion in Given the industry s rising capital spending, it is not surprising that long-term debt is also on the rise after sizeable debt pay-downs in recent years. Total long-term debt fell from $333.0 billion at EEI Q Financial Update

8 CASH FLOW STATEMENT the end of 2003 to $301.1 billion at June 30, 2006, and has since risen to $324.0 billion at December 31, Even though the back-to-basics story of selling non-core assets and using the proceeds to pay down debt is still in play for a handful of companies, most that needed to repair their balance sheet through debt reduction have done so, and have usually been rewarded by the credit ratings agencies. As 2007 progressed, more downgrades and credit watch situations (outlooks and watches) revolved around or at least mentioned the subject company s ability to handle their projected rise in capital expenditures in the coming years. Proceeds from the Issuance of Common Equity declined from $10.0 billion in 2006 to $4.8 billion This line item shot up over the previous five years, from $5.0 billion and $5.6 billion in 2000 and 2001, respectively, to $13.1 billion in 2002, averaging $10.3 billion between 2002 and The industry s strong stock performance over this period, in addition to a widespread desire to strengthen debtto-capitalization ratios, drove the higher stock issuance. Dividends Increase By 3.0% Electric utilities increased dividend payments by 3.0% in 2007 compared to the prior year, paying a total of $16.6 billion in common dividends. Forty-three companies either increased or reinstated their dividend payment in 2007, two more than the 41 that did so in The 70.5% of the industry (40 of 61 companies) that raised dividends in 2007 was the highest percentage since the 70.8% in Renewed enthusiasm for dividends began in 2004 as companies enjoyed improving cash flows while exiting non-core businesses and emphasizing traditional regulated utility and core competitive electric operations. Rising dividends were also encouraged by The Jobs and Growth Tax Relief Reconciliation Act of 2003, which reduced dividend tax rates. In May of 2006, Congress extended this tax break an additional two years, through 2010.The first quarter is typically the industry s most active for dividend increases. In 2007, the industry s 43 total increase actions (increases plus reinstatements) break down as follows: Q1=20, Q2=8, Q3=5 and Q4=10. EEI Q Financial Update

9 APPENDIX-1 Companies Listed by Category (as of 12/31/05) iven the diversity of utility holding company corporate G strategies, no single company categorization approach will be useful for all EEI members and utility industry analysts. Never-theless, we believe the following classification provides an informative framework for tracking financial trends and the capital markets response to business strategies as companies depart from the traditional regulated utility model. Regulated Mostly Regulated Diversified 80%+ of total assets are regulated 50% to 80% of total assets are regulated Less than 50% of total assets are regulated Categorization of the 65 publicly traded utility holding companies is based on year-end business segmentation data presented in 10Ks. Categorization of the 5 non-publicly traded companies (shown in italics) is based on estimates derived from FERC Form 1 data and information provided by parent company IR departments. The EEI Finance and Accounting Division continues to evaluate our approach to company categorization and business segmentation. In addition, we can produce customized categorization and peer group analyses in response to member company requests. We welcome comments, suggestions and feedback from EEI member companies and the financial community. Regulated (36 of 70) Alliant Energy Corporation Ameren Corporation Central Vermont Public Service Corporation CH Energy Group, Inc. Cleco Corporation Consolidated Edison, Inc. DPL, Inc. Duquesne Light Holdings, Inc. El Paso Electric Company Empire District Electric Company Energy East Corporation Great Plains Energy Incorporated Green Mountain Power Corporation IDACORP, Inc. IPALCO Enterprises, Inc. Kentucky Utilities KeySpan Corporation Louisville Gas and Electric Maine & Maritimes Corporation Niagara Mohawk Power Corporation NorthWestern Corporation NSTAR PG&E Corporation Pinnacle West Capital Corporation Portland General Electric Company Progress Energy Puget Energy, Inc. SCANA Corporation Sierra Pacific Resources Southern Company UIL Holdings Corporation UniSource Energy Corporation Unitil Corporation Westar Energy, Inc. Wisconsin Energy Corporation Xcel Energy, Inc. Mostly Regulated (23 of 70) ALLETE, Inc. American Electric Power Company, Inc. Aquila, Inc. Avista Corporation CenterPoint Energy, Inc. CMS Energy Corporation DTE Energy Company Edison International Entergy Corporation Exelon Corporation First Energy Corp. FPL Group, Inc. MGE Energy, Inc. MidAmerican Energy Holdings NiSource Inc. Northeast Utilities Otter Tail Corporation Pepco Holdings, Inc. PNM Resources, Inc. PPL Corporation Public Service Enterprise Group, Inc. TECO Energy, Inc. Vectren Corporation Diversified (11 of 70) Allegheny Energy, Inc. Black Hills Corporation Constellation Energy Group, Inc. Duke Energy Corporation Dominion Resources, Inc. Hawaiian Electric Industries, Inc. MDU Resources Group, Inc. OGE Energy Corp. Sempra Energy TXU Corp. WPS Resources Corporation Note: Based on assets at 12/31/05

10 APPENDIX-2 Companies Listed by Category (as of 12/31/04) iven the diversity of utility holding company corporate G strategies, no single company categorization approach will be useful for all EEI members and utility industry analysts. Never-theless, we believe the following classification provides an informative framework for tracking financial trends and the capital markets response to business strategies as companies depart from the traditional regulated utility model. Regulated Mostly Regulated Diversified 80%+ of total assets are regulated 50% to 80% of total assets are regulated Less than 50% of total assets are regulated Categorization of the 65 publicly traded utility holding companies is based on year-end business segmentation data presented in 10Ks. Categorization of the 8 non-publicly-traded companies (shown in italics) is based on estimates derived from FERC Form 1 data and information provided by parent company IR departments. The EEI Finance and Accounting Division continues to evaluate our approach to company categorization and business segmentation. In addition, we can produce customized categorization and peer group analyses in response to member company requests. We welcome comments, suggestions and feedback from EEI member companies and the financial community. Regulated (37 of 73) Ameren Corporation Central Vermont Public Service Corporation Consolidated Edison, Inc. DPL, Inc. Duquesne Light Holdings, Inc. El Paso Electric Company Empire District Electric Company Energy East Corporation FirstEnergy Corp. Great Plains Energy Incorporated Green Mountain Power Corporation IDACORP, Inc. IPALCO Enterprises, Inc. Kentucky Utilities KeySpan Corporation Louisville Gas and Electric Maine & Maritimes Corporation New England Power Company Niagara Mohawk Power Corporation NorthWestern Corporation NSTAR PacifiCorp PG&E Corporation Pinnacle West Capital Corporation Portland General Electric Company Progress Energy Puget Energy, Inc. SCANA Corporation Sierra Pacific Resources Southern Company UIL Holdings Corporation UniSource Energy Corporation Unitil Corporation Vectren Corporation Westar Energy, Inc. Wisconsin Energy Corporation Xcel Energy, Inc. Mostly Regulated (26 of 73) Alliant Energy Corporation ALLETE, Inc. American Electric Power Company, Inc. Aquila, Inc. Avista Corporation CenterPoint Energy, Inc. CH Energy Group, Inc. Cinergy Corp. Cleco Corporation CMS Energy Corporation DTE Energy Company Edison International Entergy Corporation Exelon Corporation FPL Group, Inc. MGE Energy, Inc. MidAmerican Energy Holdings NiSource Inc. Northeast Utilities Otter Tail Corporation Pepco Holdings, Inc. PNM Resources, Inc. PPL Corporation Public Service Enterprise Group, Inc. TECO Energy, Inc. WPS Resources Corporation Diversified (10 of 73) Allegheny Energy, Inc. Black Hills Corporation Constellation Energy Group, Inc. Dominion Resources, Inc. Duke Energy Corporation Hawaiian Electric Industries, Inc. MDU Resources Group, Inc. OGE Energy Corp. Sempra Energy TXU Corp. Note: Based on assets at 12/31/04