"Pacificorp Annual Rept 1993."
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_ - -_ __ - _ - , . , 1 1 * y r. er ya ' L \ . p - 1, g . f ,^ \ 3 '' ' ,a- y + ' }, - 1 . 1 , ' # -2 i . ;$ 4 f 3 ' n c ~ v. Pic d rC=oair.. ! r u.~ -c. ,. , y , ,. ^ ~' ,' ' 't [ $. , { ' JI . '# d y,.9_ , ~ . , , . , . ~ ff ; . g% . 1 s ~ 4 . e . s- A. _ o t) ''' , - ' . * ~ ., . ps v-' V '# Y.,y. ' * . , . , ej - - , , v- ;. - m% . g - . ~ . m_ . $~ ANNUAL d a s ~ REPORI ' 1988 9506050325 950531 PDR ADOCK 05000344 I PDR , M __ _ - _ _ _ _ _ _ _ _ _ - _ _ _ _ _ - _ _ _ _ _ _ CORPORATE PROFILE f2fCmC: PACinC Powm/Umi Pows Paci6 Corps electric utility business serves 1.3 million base i highly diversified, which reduces adverse effects retail customers and is the third largest utility in the from a downturn in any particular industry. ' West. It operates the nation's largest open access, high- 1993PtmauAsct voltage transmission system which, combined with its Revenues were up 6 percent, to $2.5 billion,73 per- 8 low electncity production costs, allows a to sell whole- cent of Paci6 Corps total. Earnings contribution was - sale energy to over 30 other $322 million,84 percent of PacifiCorps earnings from w - entities throughout the West. ,. continuing operations. -|( Fhe company is also the 12th largest U.S. coal producer based 1984Omon y [' g , , on tons mined, supplying coal As one of the natmn s lowest cost producers, '. , f < */ g i 7 exclusively to PacifiCorp plants. Paci6 Corp continues to prove it can prosper in a com- . petitive utility market. Its on-going objective is to MAMUS <I ' hk improve and build on that posinon m light ofincreas- Pacific Power and Utah ing competition from other suppliers. The company Power serve retail elms ms- will also continue to seek more ef6cient wavs to do tomers in Utah, Oregon, Wyoming, Washington, ' business, while emphasizing quality customer service Idaho, hiontana and northern California. Retail power and environmental stewardship. sales come from a nearly equal mix of residential, com- mercial and industrial customers. Even the industrial IMCOMMUMCATIONs: PACIRC TMCOM PacifiCorps telecommunications business is operat- Wyoming. It also pmvides long distance services in cd by Pacific Telecom, an 87 percent-owned subsidiary. Alaska through an extensive system of satellite carth sta- It is one of the nation's largest nonBell telephone tions, a state-of-the-art communications satellite and a companies and its strength lies in the successful opera- high capacity undersea 6ber optic cable connecting tion of local telephone exchanges in largely rural Alaska to the lower 48 states. communities throughout 11 1993 PIMMMANCE West ern and hiidwestern Revenues were up 1 percent, to $709 million, 21 states. PTl is also one of the percent of Paci6 Corps total. Earnings contribution was - founding companies in the 9 M $51 million,13 percent of PacifiCorps earnings from North Paci6c Cable, the first [ continuing operations. h direct trans-Paci6c 6ber optic [ *' h%a.',e cable system between the U.S. 1994 Ounou and Japan. PTI plans to expand its local exchange business in rural and suburban areas through proposed acquisitions, MAMUS and to consider future expansion opportunities as thev Pacific Telecom serves 398,700 access lines in arise. Also, the Alaska market restructuring issue will Alaska, Colorado, Idaho, Iowa, hiinnesota, hiontana, continue to require attention in 1994, as a viable, long- Nevada, Oregon, Washington, Wisconsin and term solution is sought. Co m is - Financial Highlights 1 Electric 6 Of6cers 54 Financial Review 2 Telecommunications 14 Board of Directors 55 To Our Shareholders 3 linancial Section 19 Investor Information 56 Com Pitoin hiaintenance work on the 230 kilovolt circuit breaker transmission system reaches throughout the West and bushings helps keep the Sigurd substation in central pmvides the company with the flexibilirv to efficiently Utah running smoothly. PacifiCorp's extensive and economically meet customers' energy needs. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ _ CON 80L2ATED REVENUES dI|||IOM UI i101LARU 3soo MilIis re01 Ih it1 ARN IN I P1 Pl R %HTRi WOLN h. It )R 11!! MAR |mw l+> i. om; .[r) 3 00 l'c.cn:ap bu 1995 1992 ( omp nen 6 anwih Dernarms Resuti 2soo Revenues s 3,4:2 s 3,242 5% 3% ' - Income from Operations 916 633 45 ; 20m * income from Continuing Operations 423 iso 2 , j * * ! Discontinued Operations 52 (4 91) ' "" Cumulative Effect on Prior Years of Change in ! i ' - * * Accounting for income Taxes , 4 ; * * "o Net income (loss) 479 (341) i ! * ' Earnings (loss) on Common Stock 44o (378 ) 1 ; I Data na COMMON SHanE i I ! soo ' Earnings (loss) > ; ; * ' ' Continuing Operations s ' t.4o 5 42 (1) g * * Discontinued Operations .19 (i.8)4 88 89 90 91 92 94 Cumulative Effect on Prior Years of Change in 13 (>me, * * .on - Accounting for income Taxes %, Telecommunications * Total .6o (i.42) (2) % lleuric ()perations Dividends Paida) s. 95 142 (ii) (2) Book Wlue si.6 io.75 8 (1) EARNINGS AND > % Stock Price Range zoVs - 16Vs 25 - 18% (3)N 2'M DIVIDENDS PAID Fansciat PosmoN av DictMsta 31 PER COMMON SHARE V " " Id #" Assets s 11,959 $ it,257 6 3 2'" CapitalizationM 7 773 7,725 1 2 Capital Structure , long-Term Debt and Capital lease Obligations 5o% 54% Preferred Stock 8 8 'd Common Equity 42 38 Ornta Stari: Tics Return on Average Common Equir3M x25% 74% Market to Book Wlue (YearEnd) i66 % 184 % ! '" Cash Flow from Continuing Operations s i,o37 s 942 < Common Shares (Awrace. Tbsands) 274,55: 266,s27 ..mo. .eng ,m.,a,a a IWJ ip.u awro s the IturJ o' Dor.r.a. e m I cbwn Ho 1 ma osy if a mJueca a im,4.imard un .a rN ( omp.ir s s i ok po An ib bwdonna md ;nu do i t dda ihon iam Ahi anJ i nuh rn.1:ang ior . to n JcSt .m! .apa .| ' .awh obhpeu.m ( ul ( L ubrrd u mL anone t*ntt ru m.ay opr a i cw L.,h n,:4pn i ' s har gn m ' F ' buludq gm d shn ha rcmen tov ! I'if e a 4 a peru ng b o 88 N9 90 91 02 (J ) % l.arntnp "R! lbidends l' aid * ( A ulaicJ uung carnmp inom onnnump ogn r suon culueng su per dwt of qv.ul t h.irges m 1+)2 * \(( beettfii44 < a} al IcIl | I ' Pncli Ceap 1 i _ _ _ _ _ _ . - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ I ; r ;, , 9j. j '' 1 : >f , [: s1 - ,i. , # TOTAL INVE8TMENT RETURN FIVE-YEAR teEXED EANENG8 COMPOUND RATE THERMAL PLANT PER COMMON SHARE 1988-1993 PERFORMANCE ACCE88 LINES il><>LL4ky (I'l klDT1 TQI It AITNT A t AIL 4 Bill 1T IIHOUL4NIW t.25 20 88 % 400 , 350 Loo g i i 4 is 3oo 82 25o 75 80 * lo 200 , ' '_ 78 g 15o ! a e . 76 ' 5 too .25 72 50 1 - o o , . 7o o 88 89 90 91 92 43 .84 85- 86- 87- 88 89- 88 89 90 91 92 93 88 89 90 9t 92 93 % PacifiCorp* %, PacifiCorp i:ive Year Moving Averages % Standard & Poor's 500* % Standard & Poor's 500 g pgg % Standard & Poori1:lectrics* % Top 50 Utilitics' fB NERC Equivalent' , !%ithrjn roults weic uliulmed ueng 1Raoked in non vrunun of t Nonh Amenon 1 Iccuh Relubiluy s f rom tonunmnp oivraouns. %Iomon Brothers' I letinu. Count d; infonnanon for 19'O i not ntin i , carnapo,ms nev fnp 5hy, mlwr m n,.n share or 5 i6 mden ni amu *- *l yurcs mdntd to a tw of Swo m niNM Sum knavneT Sam n Acas La Gem Carnut: Tamuit Ptm Poromimet * PadfiCor;61993 net intome was * PadtiCorp's five-year total investmeni Through enhanted maintenance Pacific Telecom experienced a 5 per- 5&9 million. return stands ai 8.5 percent. methods. new materials and other im- cent increase in local telephone pmvements. PacifiCorp's thernul plants exchange access lines in 1993, for a * Net income from PadtiCorp's * The MP Ws sn(L price appreda- have experienced steady increases in total of more than 398 "00 access continuing operations was $423 non anJ dividends mmbined to return plant equivalent availabihty - the imes. Access line growth in its senice milhon. 14.5 percent. amount of time a plant is available to areas has exca&J the national average produce at full-load. in recent years. O laminp per mmmon share were 51.60 * The top 50 of the Salomon Brothers' compared to 1992 loss per share of 1.lectrics. ranked by IW2 revenues, in rnent years. PadfCorp's plant Most of the growth in 1993 was due 51.42. retumed 16.2 pcttent over the five-year equivalent availability has grow n at a to population increases in many of the period, rate that is about three nmes faster than areas it serves. Pacific Telewm also e tw3 caminp per mmmon share from the national average for wmparable continues to look for appropriate continumg operations was 51 40 thermal plants. opportunities to expand the laal tele- wmparcJ to s 42 in t w2. phone exchange business through acquisitions. ! PACIiiCIIP L_________ - .. _ -.