IIIIIIIIIIII IIHHWIIHHHII OR INAI_ ..-»~-4"-f\ BEFORE THE ARIZONA CORPORATION coMl il§§1on 1 2 3 4 5 6 DC DOUG LITTLE CHAIRMAN BOB STUMP COMMISSIONER BOB BURNS COMMISSIONER TOM FORESE COMMISSIONER ANDY TOBIN COMMISSIONER q9ION ~i ZIIII1 rec 22 A 10 50 1 7 8 9 10 11 12 IN THE MATTER OF THE APPLICATION OF ARIZONA PUBLIC SERVICE COMPANY FOR A HEARING TO DETERMINE THE FAIR VALUE OF THE UTILITY PROPERTY OF THE COMPANY FOR RATEMAKING PURPOSES, TO FIX A JUST AND REASONABLE RATE OF RETURN THEREON, TO APPROVE RATE SCHEDULES DESIGNED TO DEVELOP SUCH RETURN Docket No. E-01345A-16-0036 6. oi3~isA- ic- O I 33 13 NOTICE OF FILING 14 15 The Residential Utility Consumer Office ("RUCO") hereby provides notice of filing 16 the Direct Testimony of John Cassidy and Frank Radigan, in the above captioned 17 proceeding. 18 RESPECTFULLY SUBMITTED this 22nd day of December, 2016. 19 20 Arziona(gmpqrato inCommsiso in DQCKETED 21 DEC 22 2015 22 angel w. chief Counsel uockstw BY 23 24 -1- ky i l l l 1 2 3 4 AN ORIGINAL AND THIRTEEN COPIES of the foregoing filed this 22nd day of December, 2016 with: Docket Control Arizona Corporation Commission 1200 West Washington Phoenix, Arizona 85007 5 6 7 8 9 10 11 12 13 14 15 16 17 COPIES of the foregoing hand delivered/ Emailed/mailed this 22nd day of December, 2016 to: Teena Jibilian Hearing Division Arizona Corporation Commission 1200 West Washington Phoenix, Arizona 85007 Patricia Ferre P.O. Box 433 Payson, Arizona 85547 Richard Gayer 526 W W ilshire Drive Phoenix, Arizona 85003 r a er c ox.net Consented to Service by Email Janet Wagner Legal Division Arizona Corporation Commission 1200 West Washington Phoenix, Arizona 85007 Le aID iv a c c . a v JXHatch-Miller@azcc.qov MScott@azccc1ov Chains(32azcc.Qov \ANanCleve@azcc.qov EAbinah@azcc.oov TFord@azcc.qov EVanE s a c c . a v CFitzsimmons@azcc.qov KChristine@azcc.qov Consented to Service by Email Warren Woodward 55 Ross Circle Sedona, Arizona 86336 W6345789@yahoo.com Consented to Service by Email Anthony Wanger Alan Kiernan Brittany DeLorenzo IO Data Centers, LLC 615 n. 48th St. Phoenix, Arizona 85008 18 19 20 21 22 23 24 Thomas A. Loquvam Thomas L. Mum aw Melissa M. Krueger Pinnacle West Capital Corporation 400 n. 5th Street, MS 8695 Phoenix, AZ 85004 Thomas.Loquvam@pinnaclewest.com Thomas.Mumaw@pinnaclewest.com Melissa.Kreuqer@pinnaclewest.com Amanda.Ho@pinnaclewest.com Debra.Orr@pinnaclewest.com Consented to Service by Email -2- i I i 1 2 3 4 5 6 Meghan Grabel Osborn Maledon, P.A. 2929 N. Central Ave., Suite 100 Phoenix, Arizona 85012 Attorney for Arizona Investment Council mqrabel(é2omlaw.com a into arizonaaicor Consented to Service by Email Patrick Black C. Webb Crockett Fennemore Craig, PC 2394 E. Camelback Rd, Suite 600 Phoenix, Arizona 85016 Attorneys for Freeport Minerals Corporation and Arizonans for Electric Choice and Competition wcrockett(32fciaw.com pblack@fclaw.com khiqqins@enerqystrat.com Consented to Service by Email Craig A. Marks Craig A. Marks, PLC 10645 n. Tatum Blvd, Suite 200-676 Phoenix, AZ 85028 Attorney for Arizona Utility Ratepayer Alliance Craiq.Marks@azbar.orq Pat.Quinn47474@qmaiI.com Consented to Service by Email 7 8 9 10 Greg Eisert Steven Puck Government Affairs Sun City Homeowners Association re eisert mail.com Steven.puck@cox.net Consented to Service by Email AI Gervenack Rob Robbins Property Owners & Residents Assoc. 13815 Camino del Sol Sun City West, AZ 85372 Al.qewenack@porascw.orQ Rob.robbins@porascw.orq Consented to Service by Email 11 12 13 14 15 16 17 18 19 20 21 Timothy Hogan Arizona Center for Law in the Public Interest 202 E. McDowell Rd, Suite 153 Phoenix, Arizona 85004 Attorney for Western Resource Advocates, Southwest Energy Efficiency Project, Vote Solar and Arizona School Boards Association and Arizona Association of School Business Officials the an act i.or ken.wilson@westemresourc:es.orq schleQeli@aoI.com ezuckerman(32sweneroy.orq bbaatz@aceee.orq briana@votesolar.orG cosuala@earthiustice.orq dbender@earthjustice.orq cfitzqerrell(62earthiustice.orQ Consented to Service by Email Tom Harris Arizona Solar Energy Industries Assoc. 2122 w. Lone Cactus Dr., Suite 2 Phoenix, AZ 85027 Tom.Harris@AriSElA.orq Consented to Service by Email Cynthia Zwick Kevin Hengehold Arizona Community Action Assoc. 2700 n. 3rd St., Suite 3040 Phoenix, AZ 85004 czwick@azc:aaorq khenqehold@azcaa.orq Consented to Service by Email I I I I 22 I 23 24 -3- I ! 1 2 3 4 5 6 7 8 9 Jay Moyes Moyes Sellers & Hendricks Ltd 1850 N. Central Ave., Suite 1100 Phoenix, AZ 85012 Attorneys for Electrical District Number Eight and McMullen Valley Water Conservation 8t Drainage District JasonMoyes@law-msh.com iimoves@law-msh.com jim@harcuvar.com Consented to Service by Email Michael Patten Jason Gellman Snell & Wilmer LLP One Arizona Center 400 E. Van Buren St. Phoenix, AZ 85004 Attorneys for Tucson Electric Power Co. mpatten@swlaw.com ihoward@swlaw.com docket@swlaw.com Bcarroll@teo.com Consented to Service by Email Kurt Boehm Jody Kyler Cohn Boehm Kurtz & Lowry 36 E. Seventh St., Suite 1510 Cincinnati, OH 45202 Attorneys for The Kroger Co. Charles Wesselhoft Pima County Attorney's Office 32 N. Stone Ave., Suite 2100 Tucson, AZ 85701 Charles.Wesselhoft@pcao.pima.qov Consented to Service by Email 10 11 12 13 14 15 John William Moore, Jr. 7321 n. 16th St. Phoenix, AZ 85020 Attorney for The Kroger Co. Court Rich Rose Law Group PC 7144 E. Stetson Dr., Suite 300 Scottsdale, AZ 85251 Attorneys for Energy Freedom Coalition of America crich@roselawqroup.com hslauqhter@roselawqroup.com Consented to Service by Email Giancarlo Estrada Kamper Estrada, LLP 3030 n. 3rd St., Suite 770 Phoenix, AZ 85012 Attorneys for Solar Energy Industries Assoc. 16 17 18 19 20 Greg Patterson Munger Chadwick 916 W. Adams, Suite 3 Phoenix, AZ 85007 Attorneys for Arizona Competitive Power Alliance Lawrence Robertson, Jr. 210 Continental Road, Suite 216A Green Valley, AZ 85622 Attorney for Noble Americas Energy Solutions LLC and Constellation New Energy, Inc. and Direct Energy, Inc. tubaclawver@aol.com Consented to Service by Email 21 22 23 24 _4- 1 2 3 4 5 6 7 8 9 10 Ann-Marie Anderson Wright Walker & Pauole, PLC 10429 s. 51 st St., Suite 285 Phoenix, AZ 85044 Attorneys for AARP aanderson@wwpfirm.com sennin s Aar .or aalen(6)wwpfirm.com Consented to Service by Email Scott Wakefield Hienton Curry, PLLC 5045 n. 12th St., Suite 110 Phoenix, AZ 85014 Attorneys for Wal-Mart Stores, Inc. swakefield@hclawqroup.com mlou@,»*. I47/ Re, to: This invoice iS for the 2014 Utility Solid Waste Activities Group (USWAG) Membership Dues. If you have questions about the invoice, please contact Gayle Novak, at 202-508-5654. If you nave questions about making a payment for this invoice please contact Carol Ray in EEls Internal Accounting Department, at 202-508-5428. invoice Total $39,375.00 Taxes $0.00 Amount Paid $0.00 PLEASE PAY $39,375.00 PLEASE.OETACH AND REMIT WITH YOUR PAYMENT Invoice #2 123897 Customer #1 0004149150 Arizona Public Service Co. 400 N 5th Street Phoenix, AZ 85004-3902 Select Payment Method [ Check Enclo sed Card Provider Exp Date I Card # Card Ho lders Name Remit Payment To: Card Ho lders Signature Edison Electric Institute 539,375.00 Total Duet 701 Pennsylvania Avenue, N.W., Washington, DC 20004-2696, USA Amt Remitted APSRC00541 Pane 1 Rf 2 ! Edison Electric Institute 701 Pennsylvania Avenue, N.W. Washington, DC 20004-2696 USA 1 Customer #: 0004149150 Invoice _ Arizona Public Service Co 400 N 5th Street phoenix, AZ 85004~3902 121298 Invoice Date: 12/17/2013 FEINI 13-0659550 Q»-wmv Description 2014 UARG Membership Dues 1 Price nscornn Amount $177,024.00 $0.00 $177,024.00 700646 805 3. PT u Invoice # : I 4/ l QC, 4» »- Cl4¢:f§,¢_ *<=# 9?3/¢»5',I!'-\ This invoice is for your participation in the Utility Air Regulatory Group (UARG) for the calendar year2014. if you have questions about the program, please contact Andrea Field at202-955-1558. If you have questions regarding this invoice or to make payment arrangements, please contact Carol Ray, in EEl's Internal AccountiNg Department, on 202-508-5428. Invoice Total S177024.00 Taxes $0.00 Amount Paid $0.00 PLEASE PAY $177,024.00 PLEASE DETACH AND REMIT WITH YOUR PAYMENT Invoice #: 121298 Customer #: 0004149150 _ Arizona Public Service Co 400 N 5th Street Phoenix, AZ 85004-3902 Select payment method I] Check Enclosed Card Provider Exp Date l Card Er Card Holder's Name Remit Payment To: Card Holder's Signature Edison Electric Institute $177,024.00 Total Due: 701 Pennsylvania Avenue, N.W., Washington, DC 20004-2696. USA APSRC00541 Page 2 of 2 i I I Edison Electric Institute 701 Pennsylvania Avenue. N.W. Washington, DC 20004-2696 U SA EEl. v Customer #: 0004074490 I n v o ic e pinnacle West Capital Corp. PO Box 53999, MS8695 Phoenix, AZ 85072-3999 Invoice #: 139008 Invoice Date: 12/17/2014 FEIN: 130659550 1 i i i l Descrlpticn Quantity 2015 UARG Membership Dues 1 Price Discount Amount $185889.00 $0.00 $185889.00 .. @1 (\W\\ 'i o~i\»~~E He 'ion Up* 4 ,cl " ("\' \"iu0 Klip \030 This invoice is for your participation in the Utility Air Regulatory Group (UARG) for the calendar year 201s. If you have questions about the program please contact Andrea Field at 202-955-1558. If you have questions regarding this invoice or to make payment arrangements, please contact Carol Ray, in EEl's lnternai Accounting Department, on 202-508-5428. Invoice Total $185889.00 Taxes $0.00 $0.00 $185,889.00 Amount paid PLEASE PAY PLEASE DETACH AND REMIT WITH YOUR PAYMENT Invoice #1 139008 Customer #2 0004074490 _ Pinnacle West Capital Corp. PO Box 53999, MS8695 Phoenix, AZ 850723999 Select Payment Method U Check Enclosed Card Provider _ . Card # Exp Date / . Card Holdcr's Name Remit Payment To: Card Holder's Signature Edison Electric Institute $185,889.00 Total Due: 701 Pennsylvania Avenue N.W ., W ashington DC 200042696 USA APSRC00542 Page 1 of 4 I I Edmon Eledrtc Institute 701 Pennsytvama Avenue. NW Washington DC 200042696 USA Customer it 0004149150 In v o i c e Invoice # . 140501 Invoice Dale. 01/23/2015 FE N 130659550 _ Arizona Public Service Co 400 N 5th Street Phoenix AZ 65004 Description Quantity 201 s USWAG Membership Dues 1 Price Discount Amount s405c0.00 $0.00 s40500.00 This invoice is for the 2015 Utility son Waste Activities Group (USWAG) Membership Dues. If you have questions about the invoice please contact Gayle Novak at 2025085654 If you have questions about making a payment Ra this invoice please contact Carol Ray in EEls Internal Accounting Department at 2025085428. Invoice ToiaI 540500.00 Taxes Amount Paid PLEASE PAY $40500.00 PLEASE DETACH AND REMIT WITH YOUR PAYMENT Invoice #1 140501 Customer# 0004149150 Arizona Public Service Co 400 N 5th Street Phoenix AZ 85004 Remit Payment To Select Payment Method El ChuckEnclosed Card Provider EW Date I Card I Card Holders Name Card Holders Signature Edison Electric Institute 701 Pennsylvania Avenue, N.W. Washington. DC 200042698 USA $40,500.00 roiat Due: APSRC00542 Page 2 of 4 v VEMBLF _J LLP USWAG UTILIIY SOLl0 wAs1£ ACIIVIIIES GRGUP 13$i4i!l7"5lF'E N}\ WA 5n:N31uN DC :JJii T . 14. 4nvl r : J1; 43 ) z...w. \w al)I. c :iu January 20 2015 TO: USWAG Policy Committee Enclosed is an invoice for your companys 2015 participation in the Utility Solid Waste Activities Group (USWAG). The total 2015 USWAG Budget is $3905000 We are pleased to report that Metropolitan Water District of Southern California has joined USWAG since the 2014 billing cycle. Avista Corporation discontinued membership in 2015. Please note that the revised formula will not be applied until calculation of 2016 dues. The revised guidelines assessing dues on retired coal units is in effect for calculation of 201s dues. Please reference the b r Ii mi tee meeting minute for details The Policy Committee agreed to a 2015 dues assessment of $36000 per full share. The USWAG dues assessments are as follows: h r .125 .250 .375 .sao .625 .750 .875 1.000 1.125 1.250 1.375 1.s00 1.625 1.750 1.875 2.000 2.125 2.250 went 4500 9000 13500 18,000 21875 27000 31500 36000 40500 45000 49500 54000 58500 53000 67500 72000 76500 81000 l l l APSRC00542 Page 3 of 4 \ /EN \l3LE USWAE 4 unulv s0.l0 wAslr ACINIIIES GROIP <255E¢§'¢l" swim t ma »;As»¢N§luN c: :JJJ4 I i i ; NJ T J i l f.* J i l 1 J l ) z..:. Wualiin c m Share Assessment 2.375 2.soo 2.625 27S0 2.875 3.000 3.125 3.250 3.375 3.500 3.625 3.750 3.a7s 4.000 sss00 90000 94500 99000 103500 108000 112500 117000 121,s00 126000 130500 135000 139500 144000 Thank you for your continued membership in USWAG. If you have any questions regarding your billing please contact the Manager al Environmental and USWAG Program Services Gayle Novak at 2026085654 or I .n yak us w a .or Sincerely r I Terry E. Coss Xcel Energy USWAG Chairman Enclosure tvvvonvauoaensononxnsa¢»s\0¢¢o¢0o»n0»¢o0400000eswosanaasa0neuaao0¢m0¢c*o This electronic mail transmission may contain confidential or privileged information If you believe you have rwcivcd this message in error plctuzc notify the sider by reply lratnsntission :Md delete the message without copying or disclosing it. 48800848¢O$¥¢$$4049909880U !ll$¢#O*¢$¢¢¢¥OOO¢¢¢Ol800040090990¢¥9¢Ui¢9*¢$ APSRC00542 Page 4 of 4 \ EEl Membership Dues Membership Due FERC Account EEl Annual Membership Due 4261000 4264000 UARG Membership Dues USWAG Membership Dues 9302000 9302000 9302000 2014 30,000.00 202,683.00 680,076.00 177,024.00 39,375.00 1,129,158.00 2015 30,000.00 211,748.00 720,274.00 185,889.00 40,500.00 1,188,411.00 EEl Membership Dues by FERc Account BTL Donations 4261000 30,000.00 BTL Lobbying EEl Dues 4264000 202,683.00 Operations and Maintenance 9302000 896,475.00 30,000.00 211,748.00 946,663.00 1,129,158.00 1,188,411.00 I ! K APSRC00490 Page 1 of 1 Attachment APS Response to Discovery on Mechanics of Ocetille Deferral Mechanism i I ARIZONA CORPORATION COMMISSION STAFF'S NINTH SET OF DATA REQUESTS TO ARIZONA PUBLIC SERVICE COMPANY REGARDING THE APPLICATION TO APPROVE RATE SCHEDULES DESIGNED TO DEVELOP A JUST AND REASONABLE RATE OF RETURN DOCKET no. E-01345A-16-0036 AND DOCKET no. E-01345A-16-0123 OCTOBER 11, 2016 Staff 9.19: Refer to the direct testimony and workpapers of APS witness Snook concerning the Company's Ocotillo Deferral Request. a. Show in detail how each amount on Mr. Snook's Ocotillo Deferral Request work papers [LRS_WP01DR - Ocotillo deferral and SCR rev req.xlsx] on the "Ocotillo WPS" tab was derived. b. Why are no "overhead loads" included in the plant costs? c. What estimated "overhead loads" would be recorded by APS for: i. Units 3, 4 and 5? ii. units 6 and 7? d. Does the Company's accounting deferral request include any plant costs associated with "overhead loads"? i. If not, explain fully why not. ii. If so, how much? e. What debt rate is used to compute the Debt Return? f. Show in detail how the Debt Return amounts are calculated. g. What depreciation rate and useful life are used for the Depreciation Expense? h. Show in detail how the Depreciation Expense amounts are calculated. i. Would any carrying charges be applied during the amortization period? j. If the answer to part i is "yes" explain fully, and show in detail how the carrying charges curing the amortization period would be computed. k. How are the "Average Rate Base 2019" amounts Witness: Leland Snook Page 1 of 6 E ARIZONA CORPORATION COMMISSION STAFF'S NINTH SET OF DATA REQUESTS TO ARIZONA PUBLIC SERVICE COMPANY REGARDING THE APPLICATION TO APPROVE RATE SCHEDULES DESIGNED TO DEVELOP A JUST AND REASONABLE RATE OF RETURN DOCKET no. E-01345A-16-0036 AND DOCKET no. E-01345A-16-0123 OCTOBER 11, 2016 calculated? Show in detail. I. The Company's proposed Commission Order language at page 14 of Mr. Snook's direct testimony does not specify an amortization period for the deferral. If that language were used, would the decision concerning the amortization period be reserved for the Commission to make in a future APS rate case? m. Is the Company requesting to defer any equity return amounts for the OMP? n. If the answer to part m is "yes" identify, quantify and explain all equity return deferrals related to the OMP that APS is proposing. o. How will APS account for the revenue it receives from the generation of energy that is produced by the OMP during the accounting deferral period? Explain fully. p. For each month of the anticipated accounting deferral period, identify the amount of energy generation anticipated from the OMP. q For each month of the anticipated accounting deferral period, identify the amount of revenue that APS expects from the energy generation anticipated from the OMP. r. For each month of the OMP accounting deferral period, show and explain how the cost of power from the OMP compares with the amount of estimated payments for energy that APS would be making to obtain the energy from an alternative source. s. Is the OMP anticipated to generate any savings in fuel or purchased power cost during the accounting deferral period? i. If not, explain fully why not. ii. If so, identify, quantify and explain the anticipated fuel and purchased power savings associated with the OMP. Witness: Leland Snook Page 2 of 6 ARIZONA CORPORATION COMMISSION STAFF'S NINTH SET OF DATA REQUESTS TO ARIZONA PUBLIC SERVICE COMPANY REGARDING THE APPLICATION TO APPROVE RATE SCHEDULES DESIGNED TO DEVELOP A JUST AND REASONABLE RATE OF RETURN DOCKET no. E-01345A-16-0036 /\N[) DOCKET no. E-01345A-16-0123 OCTOBER11,2016 t. Is the OMP anticipated to be eligible for accelerated tax depreciation and bonus tax depreciation? i. If not, explain fully why not. ii. If so, identify the amounts of accelerated tax depreciation and bonus tax depreciation in each tax year that is expected for the OMP. u. Does APS agree that accelerated and bonus tax depreciation represents an important source of non-investor supplied cost-free financing? If not, explain fully why not. Response : a. Please see attachment APSRC01392 for additional details in support of LRS _WP01DR - Ocotillo deferral and SCR rev req.xlsx work paper "Ocotillo WPS" tab. Table A & B at lines 7 thru 60 relate to Ocotillo Modernization project (OMP) cost deferrals. b. Please note that Mr. Snook's testimony at page 12, line 20, states that the actual deferral will reflect the total ownership cost incurred in construction and operation of OMP project. Actual costs will include the actual direct and actual overhead loads for the project. Mr. Snook's work papers were prepared using only direct construction costs primarily for two reasons. First, the overhead loads that will apply to this project are not yet known. Overhead loads can be quite variable from year-to-year and business area to business area. Second, the amount of the Company's expected investment in OMP has previously been reported to the Commission and other external parties on the basis of direct costs only. To avoid confusion, the Company decided to use previously disclosed direct costs in its estimate. See Response to Staff 9.19(c) below for a rough estimate of the impact the inclusion of overhead loads may have on the annualized deferral. c. Overhead loads are administrative and general (A&G) and engineering and supervision (E&S) costs allocated to capital projects. The actual overhead allocation ratio can vary from year to year depending on the level of A&G and E&S costs in a given year and the volume of capital projects subject to those allocations. The estimated overhead loads related to Witness: Leland Snook Page 3 of 6 ARIZONA CORPORATION COMMISSION STAFF'S NINTH SET OF DATA REQUESTS TO ARIZONA PUBLIC SERVICE COMPANY REGARDING THE APPLICATION TO APPROVE RATE SCHEDULES DESIGNED TO DEVELOP A JUST AND REASONABLE RATE OF RETURN DOCKET no. E-01345A-16-0036 AND DOCKET no. E-01345A-16-0123 OCTOBER 11, 2016 OMP could be in the range of 6°/o, or approximately $30 million. On an annualized basis, this load rate would increase the cost deferral by approximately $2.5 million. i. Overhead loads on OMP Units 3, 4 and 5 could be in the range of 6°/o or approximately $18M. On an annualized basis, this load rate would increase the cost deferral by approximately $1.5 million. ii. Overhead loads on OMP Units 6 and 7 could be in the range of 6% or approximately $12M. On an annualized basis, this load rate would increase the cost deferral by approximately $1.0 million. d. Yes, please see Response to Staff 9.19 (b) and (c) above. e. Work paper LRS_WP01DR Page 2 of 2 used an incremental debt return of 6.75%. f. Please see attachment APSRC01392 page 1 line 12 and line 41 for the calculation of the Debt Return amounts. A debt return is applied to 100% of the OMP in-service rate base for the number of months in deferral period. The expense associated with the debt return is deferred. g A depreciation rate of 3.125% with a useful life of 32 years was used to estimate the depreciation expense for OMP. h. please see attachment APSRC01392 page 1 line 9 & 38 for the calculation of the depreciation expense amounts. i. After the costs of the OMP have been incorporated into the Company's base rates, which is likely to be at the conclusion of the Company's next rate case following the current case, cost deferrals for OMP will cease. Carrying charges for both debt and equity will be applied to the OMP rate base value at that time just as they apply to any other investment comprising the Company's rate base. Similarly, at the conclusion of the Company's next rate case, it is expected that the balance of the deferred expenses will start to be amortized and recovered in base rates. As with any other rate base item, the regulatory asset related to the accumulated deferred expenses will incur carrying charges Witness: Leland Snook Page 4 of 6 l i l l I i ARIZONA CORPORATION COMMISSION STAFF'S NINTH SET OF DATA REQUESTS TO ARIZONA PUBLIC SERVICE COMPANY REGARDING THE APPLICATION TO APPROVE RATE SCHEDULES DESIGNED TO DEVELOP A JUST AND REASONABLE RATE OF RETURN 1 DOCKET no. E-01345A-16-0036 AND DOCKET no. E-01345A-16-0123 OCTOBER 11, 2016 for both debt and equity. j Please see the Response to Staff 9.19(i) above. The carrying charges will be equal to the value of the regulatory asset in the Company's adjusted test year in (presumably) the Company's next rate case times the Company's weighted average cost of capital, including income taxes for the equity return portion, authorized by the Commission in that rate case. k. Additional details on OMP average rate base estimates can be seen in attachment APSRC01392 page 1 line 31 and line 60. I. Yes. m. No. n. Not applicable. o. Customers will get the benefit of the OMP from the first day the units are in service. These benefits may occur as reduced fuel and purchased power expenses or as higher offsystem margins. See the Response to Staff 9.19(s) below. In both cases, the changes in fuel and purchased power expenses will be reflected in lower PSA rates to customers once the units become operational. p The deferral period has not yet been determined, however, attachment APSRC01388 shows anticipated monthly generation from OMP from when it is expected to go in service through the end of 2022. q The OMP units are being developed to serve APS's native load requirements. To the extent that the units are available and market conditions are favorable, the units may be used to generate off system sales. These sales and associated revenues have not been estimated. Whatever they may be, they will be credited to APS customers. r. OMP is being developed for capacity, reliability, quick start capability, fast-ramping and flexible operation purposes. Comparable resource alternatives were evaluated in a 2015 Witness: Leland Snook Page 5 of 6 l l l l l ARIZONA CORPORATION COMMISSION STAFF'S NINTH SET OF DATA REQUESTS TO ARIZONA PUBLIC SERVICE COMPANY REGARDING THE APPLICATION TO APPROVE RATE SCHEDULES DESIGNED TO DEVELOP A JUST AND REASONABLE RATE OF RETURN DOCKET no. E-01345A-16-0036 AND DOCKET no. E-01345A-16-0123 OCTOBER 11, 2016 Peaking RFP. Results from that RFP showed that the OMP is less expensive than comparable alternative sources. Please refer to the independent monitor's letter provided in response to Staff 9.12a attachment APSRC01385. s. OMP is expected to generate savings in fuel and purchase power costs during the accounting deferral period compared to not having OMP in service. The units are more efficient than the steam units currently at Ocotillo, more efficient than the other CTs on APS system, and provide added flexibility to the system. The flexibility including quick starting and fast-ramping of the OMP units allow APS to integrate greater amounts of solar renewable generation by ramping down as solar generation is added to the system and ramping up quickly to full load as solar generation falls sharply as the sun is setting. APS does not have an estimate of savings in fuel and purchase power that fully incorporates these benefits. t. Yes, the capital investment in OMP is anticipated to be eligible for accelerated bonus tax depreciation based on current federal tax legislation. i. This question does not apply given that the response to 9.19 t. is yes. ii. Please see attachment APSRC01392 page 1 line 26 & 55 which indicate the estimated amounts of accelerated bonus tax depreciation related to OMP. u. Yes. For this reason APS reduces rate base by the deferred tax impact associated with accelerated and bonus accelerated tax depreciation. This treatment will be applied to bonus accelerated tax depreciation on OMP. I Witness: Leland Snook Page 6 of 6 \ \ 1 i I OMP and SCR cost deferral detailed work paper Staff Question 5.19 and 5.20 Supporting Details to LRS_WP01DR ILL! 1 s 9 10 l l 12 pa 11 IS 16 17 TABLE . A : OMP UP & U7 Most Values are in $Millions 16 E11 EL! o o I o. I o.s o /m MM rrp ¢ 0 4 o m Bank UwfndaUon O t h s -n l n n p u re -n v Y u n z yu l o n o : Rl l u rn Equity Rectum To on Equity lluurn Amwll Ddannh . SM; Annual Amonlntlon . SM: Cumulnhe Ddornh dunes - m m ::alz4:.:! zn zn zs 291219325 XI as 6.6 1.0 7.2 x.o Eu 11.1 Ll 190 2o.s 1.5 ms Comments & Notes Nmbly u months fo dd d No CT i nn Fi nd OEM Book dope. n hook nu with nlondar mnth Yactornd into -Hwan Othov nnfvvw Pmaety urn normally have a two v-r In bdlon \hoy an wad Ddevvals normally on allowed 160% deb! iNurn No equally r¢4um use 100% um mum lot midcrral period Ties iesuh Ann when we uh ulm an eqvllv eturn 5»1>T0nl cons and return dalernl amounts Ynes no 19 to ex 12 Manon in saver 6 f811 nm Annum. Dept OGD a o Nov z DID 1018 1 208.1 (x.1l o u r. ; II z nx 177\ :au Cgqghgghn V 0- Suu Cl9Ex yam No AFUDC No Inly Gvevhead Mel: Issued Esllmlhd Cldlllled AFUDC Tolll Estimate lo: Plan! In Sewlcn Aocdefned Bons Depledullon inn lo 1018 Book Denndnlen ll slnighllle No Ta Deprednticn ll mcdenked In Me Tax Depredllicn Dilfsenee oa hook :Ne A n n u a l kl e f e d h n mu l l L u a n CumulWve 4dened tax Ana reduction xo Me hue _ pa 11 Zs Zs 17 pa 19 30 31 Uri! 36 37 as 39 40 11 41 as u is 16 l a* 1.1 as M a a s Yu *s s. Maas is Banes zoos Bock Deavednnon Tax Denvedauon Tax mm o/(ul man Dwt Tax Dew Den; at marllnii lax me Dt f l u l l n m T a . Cu m d d l vn l d cn a i n n u ma a v w u lm" Hz » nuns) Rn B a n a n n u l o um up (1 nr Ava) 5.5 TABLE . B : OMP UP U7 & UP Na! m u 41 3 In micelln Feb Mlr 20l9 I m l Inf O/nuIA4uuu mu puma 0 D o u vl no Oeuudol l an Odhei expense Pmpony Ties 2 year lac Deb! velum Equlzy Retrn Tax on Equity Return A rm s Dd a n k . S M : A n n u m l 0 Rl l \ b . S M . cum ul nvn nun m u l l l no sos 6.6 12.1 (3541 12 2) lss.q (a1.s) 171.1 m s 1909) 1593 1911 o annum 10 7.9 1.4 7.9 15.4 l S.1 247 14.7 1.4 6.75% Average me base is Zpt . 100 % Rex m oonslaefs monlM In peW azsinzza 33-1512 Comments & Moles Nm b M m o t h f a d l l t a l i New Cr i t ri m s o l . m Soak dcg. n boot ho with l n d months haued into oitlmatl Othe upend Vmpeny bin nomally hlvl two ou Lu balori they an blues Dbfoaln nomlIIV an albwod 4 100% debt mum No °q v*¥ v m u m i n m o ss d b : u l l o A d a m : i i d Taxi maN my when wt an u\ln1 a Qquity rectum suqu costs and rntum ddanal amaunu Yuri Eu 17 l l 19 so St M u m I ri Gras: Plinl Aocm. D 191 can o a o Mar 2019 10 321.5 (79l so . ; so so 51 55 56 57 Se 59 60 Maas T o an B.M i Ul 1580nui 2019 l ¢ok Dspudni on T Dlioclallun Ru Da o 0 /(u ) so Om Y Dp Dkl i t m l q f n l l I l I l l ! o ¢ l ¢ n l 4 I o u T o . ¢ m u m w1 l l a n o hi s i n and al pol od ume Sn m~sa1 ume Base Iverqe for :Unm an oz pp A l _no on w s 7.9 101.7 99.8 (39.9) (au) Cnm uunl on Vl un SM ; Mn Foul 140 AFUDC Na Inch Ovsftwld costs assum¢4 _ n m Esllmatnd Cavl\alu¢4 Awoc l m Tow Esxlmm lov plum In service Aadeuled Bonus Uewldnlon ram lov N18 Book Depvedulon al slrlIlh!line me Yu Oeoveclatlon u aaelemeei we :ales To Oenveclntlon Dlllefenu oa book me Annual 6elene4 tax ax marginal Hz vale CumWnlve ddsnd in and reduction xo me base z 1a.1 197 6 Anga n base It Ill zoo as rncum cantidau month In plvwd Arsnooxasz page 1 ol 3 OMP and SCR cost deferral detailed work paper Staff Question 5.19 and 5.20 Supporting Details to LRS_WP01DR Most Values are In $MIllions Step lncruse Ianary 2019 HI!! as 66 67 so 69 70 71 72 73 74 75 76 TABLE c zszuzau S CRs UP u S rt h g Mo t h To # n d . . o oasu Soon Davradatlon Rqltoy Asset Amortization Poperty T i 2 year l ag Odo! Ratm Eqity Rectm stat!! he 2019 To on £q4ty Ratm An l Df l Sou An l Amortization $MI An l I - u I . S M C l th Dfe a l l o tn 1 _ min e :nm Com m ets & notes 2912 ARM! . I . 12 4.6 6.8 z.s 11.4 7.8 5.3 9.6 6.4 13.1 5:3-an 2.5 9.6 6.4 12.4 Years (Sum l l i 7 l o 1721 12.4 2.5 l m 12.4 . i m Nmber al months fo deferrals No incremental OM Book dent. at book rote at number of calendar months Regulatory Asset Amortization Property taes normaltv hae a two year lag before they on billed Deferral period et 100%debt Len 2019 on se s w a s Eqdty f be bt re t r n Ho equity retrn deferrals Eqity bis Je 2019 with step lnaeas Taes result only when we ere using e q i t y e t Sbttal csts ed etur on cpi tl for srcharge {wi th eqi ty} No amortizatin eeded d t o su ch a g rco e y Arm s L-u Rql m t SM 9.9 77 78 Mm l Xm 79 Gross Plant to BI 82 so so as 86 Sr as as 90 Aocfn. Dear o I r1 8 12 12 213.6 213.6 fun zoo oak Maas Ta Rates B. M a a s 20 B s 2018 Book Deoredadon Ta Depreciation Ta Dept oflul Book Door Ta Dept Delta at marginal tax rate Dm n d I m T Cm l a ti v l l n Rt L o u n d o f p i d [Il l l l i 111 Rate Base aveage fo lum calc 12 pt An] 42% 6.8 so . : 83.4 la a . q C 113.71 - : !n 4% 68 9.3 2.4 11.°1 134.11 173.4 u se 193.5 V l e $M Cap! T otl N *¥0l )( NO [Nd O h d t med Eti m td cpi zl m u AFUDC T o tl Eti m t fo Pl t I Svi A l eted Bo Dp e d t i o Rt e f o 2 0 1 1 B o k Dp i t i n ti ghtl i n t Ta Dep i t i o rt letd l atT a Dp e i t i o Di f f boot t Anual deferred to: at maqlal ta rate Cmulatie deterred ta and eduction to ate base 199.9 {a a 4l tuti m m 2 - m Average rate ban b gag :of as Retrn consldets months In period 169.5 Stop Incease Jaay 2019 um 95 96 97 so 99 100 101 102 105 104 105 106 TA B L E D SCRs U5 s up went: f runlt l5 n S n g M o 7 with El! d th Ua pid Ol M Book Depredation Reglatory Asset Amotiztio Property Taes 2 yar lag Debt Recr Equity Hamm starts Jan 2019 Yo on Eqity Retrn A n u l Du h l a SM : Anul Amonlaatlo SM : A n a l Rvn u l e t . $ M s Cum ul nl e Df l ll 0 zxzaz5z8zz xzzllrm 2211 nllslhru 1 228 12 0.5 6.6 08 10.8 1.3 17.4 167% 2913 65 37 13 4.9 a.9 5.9 Jan 13.6 3.7 1.3 16.5 8.9 5.9 i n years [Sm l ol l 5 no noel 15.0 1.3 T tl Inc 1) w Comments & Notes I t In n Nw u i t Fi n d D& M f o m Re so ce P l e l g Wd h e l l ! Fom Cpb modle spedflc pojects 155 Rg u l t y A e t A m t i z a t i Ppety t mlly hw tw y Ie bd they billed Dd l pei d t m oss debt J 2019 o 54/46 Eqity I Dbt etu No eqi ty et d f e a l Eqi ty bgi n L 2019 with step lceese T i e e l t d y wh w uig e q i ty t Sbtotl t n d e tn o cp i tl f h g (wi th e q i ty) No m o t i t i edd de t dnge y A n u l L e -n u R q i e m e n t $ M Cumultie S h g e R ey 107 108 M n th k se rv l 109 Gross Plat 110 Ao cm . 0e p1 111 oak o Deo17 113113 I mas.s 201.7 1°? 1 as 451 :of 52% o 96 96 ass 12 204.7 1111 193 112 113 114 115 116 11? NB 119 120 121 Maces Ta: its a. maces 20 Bo s 2017 Book Deoredatlo Yu Deprcclatlon To Oepr oftul Book Dear To Dep Delta t maginal ta ate Df e re d I n m T a x Cu m d t h B l c Othe o Rt L a a n d o f p d o d E l a 1 1 1 111119} Rt B g fo t 1 [2 pt A ) 114 138} 147 17 4 sos 7 1 7 a D W 1391 lo t 1401 140 154 160 157 C tudl V l e $ M 197.9 CpE T MI No Aruoc No Ld O head t md _ E ti m td Cd tl l ze d A ru o c 2 0 4 . 7 T t l E t i m t f pram I Seloe A e l e t e d B u D p d t i R t f 2018 B o k Dp e i t i o t ti ghtl i n t T D p iti t el eted t te T D p d t i Dl t t e e o o b k t A u a l d f e re d at marginal ta at Cumulti b ed t nd educti o t rte base Ae g e t b is R pt 100 as R etr siders months i period Avsnm nsz Pg 2 of a OMP and SCR cost deferral detailed work paper . Staff Question 5.19 and 5.20 Supporting Details to LRS_WP01DR Most Values are in $Millions HMI Macrs Tax De recition Tables . Normal 126 To Ta ble s 121 A. M l c n 3 1 . 5 121 B. M a n u 2 0 129 C . M lcu 15 130 D. . M a a s 10 2 * as 3% ms 3% 3% 7* 6 * so s was was ass 18% a ss 14% 12'/o x ix E. M a cs 1 14* 24% m s 12% 131 F . M a cs 5 20% w e 19% 12% 133 154 B. M 1 cn a 33% 44% 15/4 7% La s 3* 3% 4% 4* 6% sos :ms 4% 6% 3* 4* 6% 3% 4% 3* 3* 4% 2* 4% 3* 3% ass 4% Macrs Tax Depreciation . Bonus Accelerated (First year accelerated of 50% for 2017, 40% for 2018, 30% for 2019) 135 Ta x Tlhle l m B. M a c h 1 5 Bo n u s 2 0 1 1 Isa B. M a ch 20 . Bo nus 2011 lim la m ans can sax ams sox An n lox 3.6% 3.3% l l * z.zss z.zss z.2ss 1.2% Ls a s 2.zas i n has 2.2% z.2as :Sm n m s 7% 51* 40% 46% 37* 3 5* 3 5* 35* 35% 27* 27* 1 ass 2.7% 2 7% 21* 2 7* 2 ms lm : lm : a n sons us u s 4.1% 4.1% 1.194 4.1% 2.1% 4394 3.1% 3.1% 3 ms 3.1% 3. 11 s.xas 3.1% s o 139 n o B. M a ch 15 . Bo nus 2018 Na B. M a ch 20 . Bo nus 2018 4 3% 27% 2 7* 142 N ! 144 B. M a ce s 1 5 Bo n u s 2 0 1 9 B. M aces 20 Bo n u s 2 0 1 9 5194 3.1% T OT AL O&M Costs . $MiIIions H11!1 Na 119 150 151 mu Luc u » . Flhimy me 2 UnM LMS CTs 2018 3 umm; LMS .CTI 2019 Fixed OM a ns 1911 2919 01 01 am 09 14 23 Ap sw £ ; n : m 3 i : TOTAL MONTHLY OCOTILLO MODERNIZATION PROJECT (OMP) GENERATION (MWH) M 2018 JAN FEB MAR APR MAY MLN 484 AUG SEP QQ OC OTILLO C T 37 OC OTILLO C T 37 2019 2961 10868 14978 1422 0 1196 5 58284 1426 37691 8750 25996 M 52 A NNQ A L 20732 1.029 189908 : m 4211 4263 OC OTILLO C T 37 2020 1323 7.926 11.383 6.884 0 1.309 51 .812 35416 10.096 39748 20442 1 .221 187560 OC OTILLO C T 37 2021 4 .1 0 5 5515 25.055 13470 2530 3220 59096 38250 13354 9215 27308 6.859 207976 OC OTILLO C T 37 2022 0 2549 21557 5424 9191 291 39.217 8256 97B 3 5260 2288 155243 NOTE; Source is the 2017 Preliminary IRP. APSRCO1388 Page 1 of 1 Schedule RUCO Schedule A-l l ) ARIZONA PUBLIC SERVICE COMPANY RUCO COMPUTATION OF INCREASE IN GROSS REVENUE REQUIREMENTS ACC JURISDICTION ADJUSTED TEST YEAR ENDED 1m1n015 (Thousands of Dollars) Line No. Deeclipdon 1. Adjusted Rate Bass 2. Adjusted Opefnting Income a. Current Rate of Ratum s Required Operating Income 5 Required Rule al Return on OCRB s Adjusted Opening Income Decadency on OCRB 7. Gross Revenue Conversion Factor 8 Increase in Base Revenue Requirements Based cm OCRB 9. After Tax Recur on Fair Value lnofemem 10. Requested Increase in Base Revenue Requirements 11. Required Role of Rerun with Fair Valuer Increment Elachk: RCND OriginaICost 6.451.009 Ka) s 12859542 (0) 366.995 (b) 388.995 (b) s 9855278 Una No. 1. 368.995 (b) 2. 3. 5.69ss zasss 3.80% 4a5.1e 1 485761 485761 7.53% 3.78% 503% 5. 118766 118.786 118766 6. 1.6155 (c) s Fair Vslue 191 887 1.6155 (c) s 191887 - 16155 ( c) 7 s 191867 8. 51103 9. s 242.970 10. 4.49% 1 r. Nszlss; The Rite d RNum for OCRB. RCND and Fair Value Mu not rifled the med for I :Unum an the dlferenes between Fair Value Rill Btu and Original Con Rue Bl- b\.l u lively I mutnmllknl Mrivnlian bald upon an original can me al mum Deer not lnduda the Lu nU Inanmenn relleded on Line o. s. u n mm§ mn » m. 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Actual For The Test Year Ended 1 015 a (A) Description Electric Operating Revenues Revenues from Base Rates Revenues from Surcharges Other Electric Revenues Total s 2909648 408660 174049 3492357 10. Operating expenses: Electric fad and purchased power Operations and maintenance excluding fuel expenses Depreciation and amortization Income taxes Other taxes Total 11. Operating income 592491 16. Other lnoome (deductions): Income taxes Allowance for equity funds used during construction Other income Other expense Total 14302 35215 2834 (19019) 33,332 17. Income before interest deductions 625823 18. 19. 20. 21. 22 Interest deductions: Interest on longterm debt Interest on shortterm borrowings Debt discount, premium and expense Allowance for borrowed funds used during construction Total 179563 7376 4793 (161 Sal 175.549 23. Net income 5. 6. 7. 8. 9. 12. 13. 14. 15. rim Sc h ( a) E2 ( b) Ruc o c - 2 s I 1 Proforma Adjustments (bl (B) Test Year Results After Proforma Adiustmen(§ (c) (C) $ $ 28503 (408660) (3948) (384105) 2.938.151 Line LV2 1. 2. 170101 3,108252 3. 5. 4. 1101298 892796 474131 260,143 171499 2899866 (100561 ) (129878) 65919 (100185) 26140 (238365) 1 .000737 763,118 540.050 159958 197639 2681 ,502 10. (145740) 446750 11. 14302 35215 2.834 (19,019) 33332 12. 480082 17. 179.563 7376 4793 (16183) 175549 18. 19. 20. 21. 22. 304533 23. 450274 (145740) s 145740 $ 6. 7. 8. 9. 13. 14. 15. 16. Sch i le : ( c ) Ruc o A2 Schedule C1 Page 1 of 1 Schedule FWR-S - RUCO Schedule (3-2 3 I I n ~ W I I ; gt gt E I ; §'"- A 8 .E 3 - 8§8 I' no 3 85 g - g a"-2 325 A v. <3 .8 2 o U D K w e a N m s Q N m F m - Q (D m r o w my a m m : - r~ § . N _ N o m . Eto g 3~ 8 383 88 i s . é lg s § §3 - h 8 N of el S Q we f 3 r O o o D m 8 3 g an l - * §. § 5 Q 08 3 , so :2 us 88 § 38 B N s 4 3 v n 3 85 d - 3n Q w . . g.. 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D ¢ 8 n o - 8 2 s -3 89 § . 1 8 ~. as .... 8 P 83 , §8 8 3 §Qo 5; Q 53 on 23 A Q n m ¢ 2 : N 83 3 5 § 88 3 ,g85 m 8823 9 I co z m ¥ § 1 u 3v 3 N V 8 _8 E 2 86 m Q- 1v D in ea w vo 29 § mm oo vzvz we 8»~ §o § 8>en .w 1 II * 30 W K .=~"_8 v .p w 1 Q m q) re 3(D o 3 N 3 Y N c534 Q 1; 8 w 8» z 'Q z § o 5 m w 39 9 8 8 ¥§ i as m m W..< eo. m. 83 §S § - _ 8 s 9 N 'E D 8 8 "Z 9 ~"8 0 E 3 N m LE »§ E 94 . 1 ET 5 N __ 3 a ea 3 8 3 Q 8 w V) 8:8*=°.s am 8 o 3 m m z w ¥ z 4 z m z - 8: Ge 35 to <5 o o D m 8 . ¢ 1 m Z =¢\i'£ o o 'é' 8 9 , u1 3 1 w r~ N 9 3 I HJ Sn S § 3 A o N N- 83 o g 3 3% .s i l § s 9 83 3 3 8 § g § 8 o § 3 .8 3 3 l § 3 g E E 3§8 8 E 8 8 8 8 E E 8 3 8 8 < c < Ozg E88 \L ;§;g37m"';;L;8dS»;ngH33g3" 35.00 Ca sh Fl a n " p e r sh 2.23 16. 48 40 32 I! u m 1 I n n n m m u n m Il m m m 1 Il r l m n n l m mnuln nlnu u nlnmn u n nun n lllllllIllllllIIIIIllllllllIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIHIIIIIIIIIIII E m m a m n a z w a n u w l m m 2005 2006 VALUE LINE _ I I 4 1 .7 33.1 3.6% _ - - - - - - - - - - _- lliliiiiiiil -- - - 3 mm& - 0:10 x Dividcndssr sh dMdcd b rl cf e Rate Rdanve Ce Slrengh ions: Yes . . area morales recession Annl Mai Re cu r 7% Ni l I I 37.9 3 282 r 3 A luuluullnmtmuxlnanu nunul:m1m l :e=r-'1r.,1rnmmIIuuuu- .w P ri c e 75 55 66.04 gm 16.2(w=:x:z3) '.=&L*.1m50.86 g LEGENDS TECHNICAL1RasiedB/2816 HUA . 6 5 1 RECENT PRICE AFUDC % to Ne t Pro fi t 9.0% L o n g T e rm De b t Ra ti o 50.0% Co m m o n E u Ra t i o 50.0% 36275 3 6 9 7 5 T e a l Ca p i ta l ($ m l II) 44400 49150 5 2 1 7 5 Ne t P l a n t S m i l l 50500 1 0 . 0 % Re t u rn o n Co m E u 6.0% 9.5% E 9.5% M BUSINESS:AmericanElectricPowerCompanyInc.(App) T y ) 0 1 ; S E E B O A RD (B ri t i sh u t i l i t y ) 0 2 ; Ho u st o n P i p e l i n e 0 5 c o m t h ro u g h 1 0 o p e ra t i n g u t i l i t i e s se rve s 5 . 4 m i l l . cu st o m e rs i n A rka n m e rci a l b a rg e o p e ra t i o n i n 1 5 . G e n e ra t i n g so u rce s n o t a va i l a b l e . so s K e n t u c ky . I n d i a n a . L o u i si a n a M i c h i g a n O h i o O kl a h o m a T e n Fu e l c o st s: 3 7 % o f re v s. 1 5 re p o rt e d d e p re ss. ra t e s (u t i l i t y ): 0 . 4 % 1 1 . 8 % . H a s 1 7 4 0 0 e m p l o y e e s. C h a i r m a n P r e si d e n t & C E O : 5.7% 5.1% 4.6% 3.1% 4.2% 3.5% 3.8% 3.9% Re ta i n e d to Co m Eq 3.5% 53% 55% 56% 66% 60% 63% 61% 60% A l l Di v d s t o Ne t P ro 67% n e sse e . T e x a s. Wg i n i a & We st Wg i n i a . E l e c t ri c re v . b re a kd o wn : re si d e n ti a l 40% c o m m e rc i a l . 2 3 % ; i n d u st ri a l 19% wh o l e sa l e 1 5 % ; o t h e r 3 % . S o l d 5 0 % st a ke i n Y o rksh i re Hi d i n g s (B ri t i sh u t i l i Ni c h o l a s K . A ki n s I n c . : NY . A d d re ss: 1 Ri v e rsi d e p l a z a . Cd u m b u s. O H 4 3 2 1 5 2 3 7 3 . T e l . : 5 1 4 7 1 6 1 0 0 0 . I n t e rn e t : www. a e p . o o m . American Electric Power is seekinga Wehaveraisedour2016earningsestiITESPast PastEstd1315 regulatory restructuring in Ohio.This mateby$0.15ashare.to$3.88June A N N U A L R A 0fdwueloefshl 10Yrs. 5Yrs. 9°1921 wouldnotbeareturntofull regulation. quarterprofitswerebetterthanexpected Revenues .5% 10 .% 10 .% butawayforthecompanytoplacesome duetoan$0.11asharegainfromafedor EC§nsh iFs°'"f nonregulatedgeneratingcapacityinthe altaxauditsettlement.Weincludethis in Dv id igrgds 3:0% 4:0% 50 f% ratebaseofitsutilitiesinthestate.AEP ourearningspresentationeventhough BookValue 50 .% 50 .% 40 .% triedtomovetowardregulationbyinitiat AEPexcludesitfromits2016earnings inapurchasedpoweragreementbetween guidanceof$3.60$3.80. Full m »A1RIERIY3I8EVsEI LlIUgS0(SDM 1I.I31 Year i t s u t i l i t i e s i n O h i o a n d i t s g e n e r a t i n g a s Public Service of Oklahoma is still sets that serve the state but this w a s awaiting a rate order. The utility filed o v e r tu r n e d b y th e F e d e r a l E n e r g y R e g u l a foraratehikeof$177million.basedona 4580 3826 4431 3614 16453 ToryCom . missionearlierthisyear..Sothe 10.5%returnona48%commonequityra 4045 3893 3600 15700 c o m p a n y i s makinga n a t t e m p t w i t h t h e tio.Becauseanorderwasnotreceivedby 4200 3700 16000 s ta te l e 1 z i s l a tu r e . omcthing a l o n g t h e s e thestartof2016itimplementeda$75 lineswt1probablybeknownbyyearend. million interim tariff hike at that time. Mar.31Jun.305.30Dec.31 Full AEPisalsopreparingtoputtheplantsup Thedecisionmightwellcomebyyearend. .75 .73 1.10 .60 3.18forsaleincaselegislationisnutpassed. NotethatAEPsIndiana8¢Michigansub The company is already selling its sidiaryispreparingtofilearateapplica 1.15 .80 1.01 .38 3.34 other nonregulatedgeneratingassets. tioninIndiana. 1 . 2 7 . 8 8 1 . 0 4 . 4 0 3 . 5 9 1.02 1.07 1.25 .50 3.85 This is part of AEPs strategy to exit its We expecta dividendincrease in the 1.25 .95 1.25 45 3.90nonutilityactivitiesandbecomeentirely fourthquarter.Weestimateaboostof Cal Fun regulated.Anannouncementofthewin $0.03ashare(5.4%)inthequarterlydisYearringbidder(s)isexpectedwithinthenext bursement.AEPistargetingapayoutra 47 47 188fewweekswithaclosinginlate2016or tioinarangeof60%70%. . . early2017.Evenwithoutthisbenefitnext This timely stock has a dividendyield .50 .50 2.03yeargrowthinthecompanystransmis that is slightly above the utility mean. 2.15Zionoperationsshouldproducehigher Totalreturnpotentialto20192021islow. .56 .56 profitsnextyear. Pau]E.DcbbasCFA SeptemberIG2016 c iftb aansg In 5s:. R al.te e:.v am r1 io.o u 15 0A 0 5 % 1 0 . 9 % a i n Regul.Climate:Avg. 95 0 Tosubscribecal1800VALUELINE Fixed Gov. is 326 348 356 Cab ender 2013 2014 2015 2016 4162 2011 3900 4200 EARNINGS PER SHARE A . Cab ender Year 2013 2014 2015 2016 2017 QUART ERLY DNIDENDS PAID B l ender M a r. 3 1 Jun.30 S 2012 2013 .30 .47 .47 2014 .50 2015 2015 .53 .4g .49 . so .53 De c . 3 1 .47 .50 1 .95 .53 .5 6 .56 (A ) Di l . E p s. E x c l . n o r re c . g a i n s (l o sse s): 0 3 ( s1 . 9 2 ) . 0 4 2 4 ¢ 0 s ( 6 2 ¢ ) ; . 0 6 . ( 2 0 ¢ ) ; 0 1 1 2 0 ¢ )2 0 8 4 0 ¢ : 1 0 (7 ¢ ): 1 1 8 9 ¢ ; 8 1 2 . 1 2 8 1 1 1 3 . (1 4 ¢ ) 1 6 (4 ¢ ) d i sc o u n t . o p s. : 0 3 . 3 2 ¢ 04 15¢; 05 7¢. 06 2¢ 08 3¢: 15. 58¢; 16 (1 ¢ ). 1 4 . 1 5 E P S d o n t a d d d u e t o ro u n d i n g Ne xt 9 § s. re p o rt d u e l a t e O ct . (B 1o i v a s h i st o r n c. p a n e a rl y M a r. Ju n e . S e p t . De <:.l Dl vd r e i n v e st p l a n a v a i l . ( C ) I $ 1 4 . 8 6 I sh (D) I n m m . (E ) M i a a l Id o n co m . e q .: 9 .6 a vg . co m . e q . . 1 5 : 1 0 . 2 % . c 2 0 1 s V a l u e L i n e I n c. A l 1 3 0 reserved. Facl ud m ateri al i s ohl ai ne\1 from sources bel i eved 10 be retabl e and i s. pm vi 4ed wham warrarl i es of an ki nd. THE PUBLISHER IS NOT RESP NSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. l\\;J:ul:icahon is stncMy lot subxnher s own. nonconunacial inland use. 0 pan oilmayberepruduced.1esol11.sl0re40flransnnlle1111iany pm1e<1 de4:l1onlcaolIle1lormolu 101 genefatngamalieixngaiyprlileeoldectlonic p\lzicallonservice01p1u11ucL Co m p a n s Fi n a n ci a l S t re n g t h S t o c k s ri ce S t a b i l i t y P r i c e G r o w t h P e r si st e n c e E a m i n g s P re d i c t a b i l i t y RECENT PRICE NYSEAEE H ig h : 5 6 .8 5 5 .2 55.0 L o w: 47.5 48.0 47.1 L EG END S . 0.66 x Dm4en4sJ> sh aivudgd bnlrlele Race . Relaiive Ce Strength o z Yes a m a r e a indicates recessnzn TIMEUNESS 3 Lov1ElEd Bll9ll6 sArETte 2 namslzo/14 TECHNICAL 1 Raised 8l19II6 BET A .1 0 ( L a o m a u e n 01 Price Gain High as ( +10% Low 40 20% Insider D ecisions Annl T otal R e cu r 6% 1% 341 25.5 35.3 2 8 .4 3 7 .3 3 0 .6 481 3 5 .2 46.8 3 7 .3 D N' D Y LD Per cent shar es haded 15 10 5 24.93 28.20 26.43 33.12 33a 0 6.11 6.33 5.28 6.29 5.57 6.10 3.33 3.41 2.66 3.14 2.82 2.54 2.54 2.54 2.54 2.54 .99 4.19 24.26 26.73 ; _ 24.06 24.95 25.13 24.95 5.87 5.87 5.25 5.77 6.08 6.60 2.77 2.47 2.41 2.10 2.40 2.38 2.60 1.54 1.54 1.56 1.60 1.60 1.61 1.66 1.72 . 1 .. *u 29.87 31.77 6.02 6.76 6.44 6.06 6.33 3.13 2.66 2.98 2.88 2.78 2.54 2.54 2.54 4.1 2.54 4 .' . . 29.71 31.B6 32.41 3280 13.5 204.70 16.3 16.7 33.08 E 1 iJ l¥ 8 J liz E J l¥ E I! :Tn 19.4 YI 17.4 Ya 14. 9 20.14 36.92 9.3 40.4 u g.7 4 . :W 11.. .4 . 7. 27.27 26.97 27.67 42.63 242.63 242.63 1 .4 1 .5 1 .7 29.50 17.5 .62 .86 .77 .86 .89 1.05 .92 .85 .62 .62 .75 .85 .93 .88 .88 6.2% 6.1% 6.0% 5.5% 4.9% 4.9% 4.9% 6.2% 6.0% 5.8% 5.3% 5.0% 4.6% 4.0% 4.0% 6880.0 7546.0 7839.0 7090.0 7638.0 7531.0 6828.0 5838.0 6053.0 6098.0 6050 Q90 615.0 624.0 559.0 502.0 589.0 518.0 593.0 585.0 co s Tolal Debt $7814 m ill. Due ln 5yrs s3342 m ill. 547.0 LT 0eb1$5505 mil. LTlnterest$328 mm. 327% 33.5% 33.7% 34.7% 35.8% 37.3% 35.9% 37.5% 38.9% 38.3% . (LT interest earned: 4.0x) Leases, Uncapltallzed Annual rentals $13 m all. Pens lon As s ezs 12/ 1553553 mill. O blig $4197 m ill. sh. 4.00% to 6.525% s100 par redeem. $100 $104/Sh. C o m m o n St o ck 2 4 2 6 3 4 7 9 8 s h s . a s o f l l 2 9 I 1 6 MARKET CAP: $12 billion ( Lar ge Cap) ELECTRIC OPERATING STATISTICS 2013 2 0.1 4 % (Jung Real Sales KWH) .5 .1 1 NA NA Avg. Mud. U&e(HWH Avg.lqiusl we(¢) 5 .4 1 5 .4 6 NA NA Capaury awea( l. PeakLoad. f[ ) NA NA NA NA ; r ; g n 1 ,=»g m _1 m , N A NA Filed I cw.as 289 AN N U AL R AT ES P a s t ass 2015 1.1 NA NA NA NA NA .7% .8% 4.6% 5.8% 7.8% 5.6% 6.1% 7.1% 5.7% 5.1% 43.8% 45.0% 47.8% 49.7% 48.2% 45.3% 49.5% 45.2% 47.2% 49.3% 54.5% 53.4% 50.8% 49.1% 50.9% 53.7% 49.4% 53.7% 51.7% 49.7% 12063 12854 13712 15991 15185 14738 13384 12190 12975 13958 N A P a s ! E s td 1 3 1 5 2013 2014 2015 2016 2017 QUARTERLY REVENUES (S mill.) M a r . 3 1 J u n . 3 0 S . .30 Dec.31 2013 2014 2015 2016 2017 Cal endar 2012 2013 2014 2015 2016 6.2% 9.0% 9.2% 1.3% 88% 5.7% 8.5% 8.7% 1.0% 88% 5.3% 7.8% 7.8% 3.5% 56% 6.0% 8.5% 8.5% 3.8% 58% 5.6% 7.5% 7.5% 2.8% 83% 6.0% 8.7% 88% 3.0% 66% 5.6% 7.7% 7.8% 1.9% 76% BU SI N ESS: Ame r e n C o r p o r a tio n is a h a d in g co mp a n y fo r me d thr ough the mer ger of Union Electr ic and CIPSCO. Aoqd CILCORP 1/03; Illinois Pow er 10104. H as 1.2 mm. electr ic and 127000 gas customer s in Missour i 1.2 mm. C edr ic and 813000 gas customer s in Illinois. Discontinued nonregulated powergeneration operation in 1 3 . E l e c tri c re v . bre a k do wn: re s i de nti a l 4 5 % c o mme rc i a l 3 3 % ; in F u ll Year in Missouri. The utility is seeking an in CIQaSC of million based 0ll EL return of 9.9% on a commoncquity ratio of 51.8%. Besides asking for the recovery of capital expenditures and higher expenses. the application reflects lost volume from Amcrcns historically largest customer Noranda which has idled production at its alum inum s m oltc r. The c om pany is als o 1322 5838.0 1370 6053.0 reques ting a r e g u l a t o r y m e c h a n i s m t o 1308 6 0 9 8 . 0 t r a c k t r a n s m i s s i o n C O S IS . Ne w t a r i f f s 3 / 8 1339 6050 e xp e c t e d t o g o i n t o e f f e c t i n l a t e Ma y. 1850 1400 6250 T h e c l o s i n g o f t h e N o r a n d a s m e l t e r i s 1450 1900 h u r t i n g Am e r e n s p r o f i t s . T h e u t i l i t y e s EARNINGSPERSHAREA Full 1475 1594 1556 1434 1500 Cal ender 5.7% 8.1% 8.1% 2% 97% 3 4 3 A m e r e n h a s fi l e d a n e l e c tr i c r a te c a s e °fdiang¢(pq5 .) 10Yrs. 5Yf§ 101921 Revenues 1.5% 5.5% 2.5% EC a shnF lo w " 2.;';1_ 8g°,4,; 039985 415% 3:0% 4f0% Book Value .5% 3.0% 3.5% Cal ender 1403 141g 1401 1427 1638 1670 1833 Mar.31 Jun.30 5 .30 086.31 .22 .44 1.25 .19 . .43 .45 .61 .50 1.40 1.50 .16 .20 QUARTERLY DNIDENDS PAID B l Mar .31 Jun.30 s 60 50 40 . 3 0 D e c. 3 1 40 .4 0 .40 40 .40 .40 .40 .40 4 4? .425 4 4? .425 . .41 .425 animates the negative effect at $0.15 a 2.10 share this year. and $0.06$0.07 a share in Year th e fir s t h a lf o f 2 0 1 7 . N e ve r th e le s s e a r n inks are still likely to advance in 2016 be 2.60 cause the secondquarter comparison was 2,5 easy. In fact we raised our shareearnings Full estimate by $0.10. to $2.60 because June Ye a r q u a rte r p r o fits (aided b y favorable 1 6 0 w e a th e r c o n d itio n s ) w e r e b e tte r th a n w e . e x p e c te. d . O u. r r e vi s e d e s ti m a te i s w i th i n 1.60 1. 1 Am e r e n s ta r g e te d r a n g e o f $ 2 . 4 5 - $ 2 . 6 5 1.84 which management raised by a nickel upon releasing secondquarter results. 5.8% 8.7% 8.7% 2.9% 67% 1 yr. 3 yr. 5 yr. 1s 10 7.5 _ - 5.3% 8.3% 8.3% 2.5% 70% 28.25 a .s0 1 3.25 2.05 » 34.00 242.63 Av g AnnI PIE Ratio Relative PIE Ratio Av g AnnI Div d Yield Revenues ($mllI) 6050 Net Profit Sm all MW l l 1 l l 30 25 20 Vl llllTH. l o ck 10.9 298 84.5 25.15 Rev enues per ch 7.05 "Cash F low" por ch 2.75 Eamings per ch A 1 . 7 0 D iv d D e cI d p e r ch 8 1 .00 a p I p e n i n p e t s 30.50 Book v due per sh c ms 8g357 .h .g .g5°1°§33?8$ ."l0 .8s8188 f8 .83 14285150591555717510178531812715095152051742418799 pfd Divd Se m an. 2017 Bold Hg s a n Val U " ° : s ri .72 C AP ITAL STR UC TUR E a s O f 6I30I16 - Q - ms STUCK 27.4 65.0 103.5 81 lza slzzzzzlzzzzzl 0.90 6.9% pfd Stock $142 m ill. e0 . " - 31.04 36.23 1 w 1 1 § z x m lL z w 1 s 2 z m 15.8 Tar?e\ Price R="3° 20 g 2020 20 1 54.1 41.5 -1llllIIIQIIIHIIIIIHIIH1IFIIIIIIIIHIIIHIIIII11i1ll11HHIHIIHIIIIII1HI III1IIIIII1 1 n rllm lllIII1lllllllMllllIIIIIIIIlllIIIIIIl1lllll1l1l11IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII11llll1 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIlllllllllllllllllIllIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIlll2015 a m 2003 2004 Ea n a z n n x a 12.1 3.5%0 VGL~'éE % T ot RET URN 8/16 32.64 11.I 2 9 .9 23.1 19.0(W98l§8 1111111.01 - !$ !- ---- -I --l n l l i h l l ---------- 28.10 137.22 3 5 .3 1 9 .5 RAT IO » . . * * * * - 401015 1Q2111$ 202015 231 221 246 173 212 166 o w 000 160698 168069 162780 :so 23.30 PIE _ - - - - - - - - -u -- - " lm I. -H ....== -m wm " lll - uu ! - " 2 - - I- NDJFMAMJJ loBby 0 0 0 0 0 0 0 0 0 011411 10111200000 toSaII 0 0 0 0 0 0 0 2 0 Institutional Decisions . 5 4 .3 25.5 49.84 795 Income Tax Rate 38.0% AFUDC % to Net Profit 4.0% LongTerm Debt Ratio 49.5% Com m on E u 50.0% R a tio 14200 14600 Total Capital ($mlll) 16500 20000 21125 Net Plant Smill 24300 8 6.0% Return on Total Capl 6.0% 9.0% Return on Shr. Equity 9.0% Rel um on Com E up 9.5% E 9.5% Retuned to Com Eq All D iv ds to N et Pr o dustr ial 12% other 10% . Gener ating sour ces: coal 67% ; nuder . 23% ; hy dro 4% : purdmased & other. 6% . F uel costs: 30% of rev s. 15 r epor ted depr ess. r ates: 3% 4% . Has 0.500 employ ees. Chair man Pr esident & C EO: Wamer L. Bax ter . Inc.: MO. Addr ess: One Ame r e n Pla za . 1 9 0 1 C h â te a u Av e . . P. O. Bo x 6 6 1 4 9 St. L o u is M O 631666149. T a.: 3146213222. lntenet w w w .amefen.com. L i k e o th e r tr a n s m i s s i o n o w n e r s i n th e M i d w e s t, A m e r e n i s a w a i ti n g o r d e r s fr o m th e F e d e r a l E n e r g y R e g u l a to r y Co mmissio n (F ERC). Tra n smissio n u s e r s c o m p l a i n e d to F E R C th a t a l l o w e d re tu rn s o n e q u ity fo r tra n s m is s io n o wn e rs a r e to o h i g h . A d m i n i s tr a ti ve l a w j u d g e s h a ve re c o m m e n d e d s ig n ific a n t c u ts in th e a l l o w e d R O E . a l th o u g h F E R C g r a n te d A m e r c n a n a d d itio n a l h a lfp e rc e n ta g e p o i n t " a d d e r" fo r p a r ti c i p a ti n g i n a r e g i o n a l tr a n s m is s io n o r g a n iz a tio n . Th e c o m p a n y h a s ta k e n a r e s e r ve o f $ 5 8 m il lio n fo r p o te n tia l re fu n d s o f p re vio u s ly c o l le cte d re ve n u e s. De sp ite a ll o f th is. e le ctric tr a n s m is s io n s h o u ld b e a s o u r c e o f p r o fit g ro wth fo r Ame re n in th e c o min g ye a rs . W e th i n k th e b o a r d o f d i r e c to r s w i l l ra is e th e d i v i d e n d i n t h e f o u r t h q u a r te r . Th is h a s o c c u r r e d in e a c h o f th e p a s t tw o ye a r s . W e e s ti m a te a b o o s t o f $ 0 .0 6 a sh a re (3 .5 %) in th e a n n u a l p a yo u t. A m e r e n s to c k h a s a d i vi d e n d yi e l d th a t i s a b o u t e q u a l to th e u ti l i ty a v e r a e W ith th e r e c e n t q u o ta tio n w ith in o u r 8 . 2 1 9 2 0 2 1 T a r g e t P r i. c e R a n g e to ta l re lo rn p o te n tia l is ju s t m o d e s t. Pa u l E. De b b a s CF A September 16 2016 A (A) Diluted Eps. Ex d. nonrecur. gain (losses): report due early Nov. (B) Divds history. paid in alld on com. eq. in MO in 15: Alec. 9.53% in CompanIons F inancial Str ength 05 ( 11¢) : 10 ( $2.19) 1 11 ( 32¢) : 12 ( $642) ; late Mar .. June Sept. & D ec. l D iv d r einv est 11: gas none specified in lL in 14: D ec. $ to c k s r i c e S ta b i l i ty 95 gain disc. ops.: 1 3 ( 9 2 ¢ ) : 1 5 2 1 ¢ . p la n avail. 1°1 Ind. if tang. In 15: $7.39/sh. 8.7% in 16: g a s. 9.6% earned on @vi. com. Pr ice Gr ov nh Per sistence 30 85 14 E L a d d d u e t r o u n d in g . N e x te g s. ( D ) ln mill. E R ate base:Or lg.costdepr . R ate eq.. 15:8.5% . R egulator y C limate: Becw Av g. E a min g s P r e d icta b ility ° 2016 Value Line IDC. AI rous reserved. Faclud malerid is obtained loom sources bedewed 10 be reiNe and is. provided mom warrarlies d ml kind. THE PUBLISHER IS NOI RESP NSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. T cwmis stnctlylor subscnbersown. non4:ummerclaI Neural use. opal T o s u b s c r i b e c a l l 1 8 0 0 V A L U E L I N E dlmaybere1;roducedresald. stoledorlransmnteduiany prmled.eleclro11lcorolherform or lot generating or madellng any prnledorelecllmrc p\lticahon.sanxeorprnd\xl. R EC ENT CMS ENERGY CORP. NYSE-CMS 1 High; 1 6 .8 1 7 .0 . Low; 9 .7 1 2 .1 L EGENDS 0 1 8 6 x D W md s ; s h d u d e d b l é l u c R a te Rdalwe e Sn e n g h Io n s: Ye s . . area n a p l e s / e c e s s mn TIMEUNESS 3 L0wumsm1e SAFETY 2Rais€d3l21l14 T EC HNI C AL 1 Raise¢19I9I16 B E T A . e s ( 1 . 0 0 ma n < e f ) I .v AnnITotal Prloe Gain Recur High 45 (+5% 5% Low 30 30% 4% Insider Dec isions -Q 1 No J F MA MJ J o l Bby 1 0 0 0 1 0 0 0 0 Options 0090001001 loSdl 2 0 0 1 3 0 4 0 0 Institutional Decisions £nmu£mmam 72.16 5.24 7 .6 1 2 .5 3 1.27 146 1.46 51 .4 1 9 .4 8 14.21 132.99 9.6 20.8 .62 1.07 6.0% 5.5% 7 4 .2 4 Irma 60.28 d.09 d2.99 1.09 .1z 7.86 Percent shares traded - RELAT NE . 100 PIE RAT Io 250 21.1 38.7 31.2 3 - r m n 1 1 I 841 z - """ ~° - *o* * . * __. ». . - - 3 4 .2 1 2 8 .0 6 2 8 .5 2 3 0 .5 7 2 8 .9 5 2 .3 9 2 .8 7 3 .4 3 3 .2 2 d .2 9 .7 4 1 .1 0 .. . .64 . 1 0 .5 3 3 0 .1 3 2 7 .2 3 3 .0 8 3 .8 8 .6 4 1 .2 3 .2 0 .I 1 ah 2577 2559 3 .4 7 3 .7 0 .9 3 1 .3 3 .5 0 . 1 0 .0 3 1 0 .8 8 2 3 .9 0 2 4 .6 8 ELECTRIC OPERATING STATISTICS 2013 2 0 1 4 % Rel$as 1 .9 3.1 A»g.1i1ausiu»1uv1t1KwH) N MF NMF (¢) 8509 50.0 +.1 7498 59.7 2 6 .0 9 3 .6 5 3 .8 2 4 .0 6 4 .2 2 1 .4 5 1 .5 3 166 1 .7 4 .6 6 .8 4 .9 6 1 .0 2 1 .0 8 9 .4 7 4 .6 5 4. 8 5 .7 3 1119 1 1 .9 2 1209 1 2 .9 8 1 3 .3 4 2 7 5 .2 0 1 2 .6 2 2 .2 .6 7 1 .2 0 1 .4 2 .9 2 .9 1 .. 1 .2 % 2 .7 % 4 .0 % 4 .0 % 4 .3 % 4 .2 % 3 .8 % 3 .6 % 6 8 1 0 .0 6 5 1 9 .0 6 8 2 1 .0 6 2 0 5 .0 6 4 3 2 .0 6 5 0 3 .0 6 3 1 2 .0 6 5 6 6 .0 7 1 7 9 .0 1 5 8 .0 1 6 8 .0 3 0 0 .0 2 3 1 .0 3 5 6 .0 3 8 4 .0 4 1 3 .0 4 5 4 .0 3 7 .6 % 3 1 .6 % 3 4 .6 % 3 8 .1 % 3 6 .8 % 3 9 .4 % 39.9% MARKET CAP: $12 billion (Large Cap) 2015 8 5g22 7812 56.8 +.6 64 2 6 .8 1 0 .9 .66 1 3 .6 .9 1 1 2 .5 .80 1 3 .6 1 5 .1 .85 .96 1 6 .3 3 .6 % 1 .3 % 1 3 .0 % 2 .2 % 2 .6 % 2 .9 % 2 .0 % 7 1 .7 % 7 0 .5 % 6 9 .4 % 6 7 .9 % 7 0 .1 % 6 6 .9 % 6 7 .9 % 6 7 .5 % 2 4 .9 % 2 5 .9 % 2 7 .4 % 2 9 .0 % 2 9 .5 % 3 2 .6 % 3 1 .6 % 3 2 .2 % 8 9 6 1 .0 8 2 1 2 .0 8 9 9 3 .0 8 9 7 7 .0 9 4 7 3 .0 9 2 7 9 .0 7 9 7 6 .0 8 7 2 8 .0 9 1 9 0 .0 9 6 8 2 .0 10069 . 10633 4 .5 % 4 .5 % 5 .4 % 4 .7 % 6.2% 6.9% 10.9% 8.0% 12.5% . 12.5% 12.8% 13.0% 6 .4 % 7 .2 % 1 1 .7 % 8 .5 % 1 2 .5 % 1 2 .6 % 1 2 .9 % 1 3 .1 % 6 .4 % 5 .1 % 8 .4 % 4 .1 % 6 .9 % 5 .6 % 5 .0 % 5 .2 % 10% 35% 31% 54% 46% 55% 61% 60% 5 .8 % 6 .3 % M 5 .9 % 10730 12246 6 .0 % . . BU SI N ESS: C MS En e r g y C o r p o r a t i o n ms a h o l d i n g c o mp a n y f o r C o n s u me r s En e r g y w h i c h s u p p l i e s e l e c t r i c i t y a n d g a s t o l o w e r Mi c h i g a n ( e x c l u d i n g D e t r o i t ) . H a s 1 . 8 mi l l i o n e l e c t r i c . 1 . 7 mi l l i o n g a s customers. Has 1034 megawatts of nonregulated generating capa city. sold palisades nuclear plant in 07. Electric revenue break down: residential 43%. commercial 34% industrial 16% other pa 40 32 24 20 16 a - 6 rzmnaixnzzmaixzlmxnaninwa r 9 .8 4 " 12 H-llllllHIIIIIIIIIIIIIIIIIIIIIIITI1 II . - m l 30 _ I H I I M Q Q 20 nnm m lm lum lllllllllllllllllllllllllllllllllllllllllnlllnllllllnnlm lnllnm lm m m unm ll : n i l 10 . VALUE LINE Tar?et Price Range 20 g 2020 20 1 lllllllllllllllllllllllllllllllllIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 2003 2004 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2016 2017 .. .. 7.5% P¢ a L ia 1 1 s1 1 ifme i mi a t o a i Ami 36.9 26.0 30.0 24.6 2 .7 8 %Cl\ar\ge&i;hn»sy41\dl 1.0111.5° 3.0% _ - - - - - - - - m a¢auqarruu(l:l:; 22.4 170 16.1 10.0 wpmuul - CAPITAL STRUCTURE as of 6130116 Total Debt $9514 mill. Due in s Yrs $4793 mill. LT Debt $8596 mill. LT Interest $388 mm. Ind. $110 mill. capitalized leases. (LT interest earned: 3.0x) Leases Uncapitalized Annual rentals $20 mill. Pension Assets12/15 $2013 mill. Oblig $2403 mill. pfd Stock $37 mill. mu oivd $2 mill. Ind. 373148 she. $4.50 s100 par cum. callable at $110.00. Common Stock 279300000 she. Avg .l r MstRe vs. 17.5 8.3 19.5 15.0 :21.9 42.80 130 20.31011 :-"-41numuna-r ¢ :ummm- i Qi i i i" i i l H ' . - n n m 1 § l l l l l l !Q - ymuu- - - - - 4azo1s 102115 202018 l o Bb y 206 233 236 to 5eI 193 205 201 Hld 000 252257 250368 251054 PRICE 1 7 .3 a s T OT . R ET U R N a n s m s VI Assa m: STOCK ma x 1 yr . 3 2 .0 1 0 .9 3 yr 7 5 .0 2 9 .8 1 5 5 . 0 8 4 .5 Sy s . _ [ M 22.15 22.70 Revenues perch 4 .5 9 4.s0 5.30 Cash Flowpersh 1 .8 9 1.95 215 Eamlngspersh A 1.16 1.24 1 1.32 Divd Decld pgfghag 0 .0 0 . 6.20 apI pending perch 15.00 i 16.00 8ookValue porch c 2 7 7 . 1 6 200.00 282.00 1 8 . 3 said flghres Ana Avg AnnI PIE Ratio .93 V'/"°'""* Relative PIE Ratio """""' Avg AnnI Dlvd yieiu 3 .4 % 2 3 .2 9 _ 6200 540 I 4 7 9 .0 5 2 5 .0 MY% 34.0% 38.5% 2 .3 % 2 .7 % 3.0% 6 8 .7 % 6 8 .3 % 67.5% 32.0% 3 1 .0 % 3 1 .4 % 11846 1 2 5 3 4 13075 1M12 1 4 7 0 5 15575 5 .7 % 5 .7 % 5.5% 12.9% 13.2% 12.5% 1 3 .0 % 1 3 .3 % 13.0% 6 4 5 6 .0 l I 6400 Revenues($miII) 615 Net Profit $mill 35.5% Income Tax Rate 2.0% AFUDC°/»to Net Pro1It 67.0% LongTerm Debt Ratio 33.0% CommonE u Ratio 13725 TctalCapitaI($mlll) 16450 NetpIant Smill 6.0% RetumonTotal Capl 13.5% RetumonShr. Equity 13.5% RetumonComE up E 5 .0 % 5 .2 % R e ta i n e d to C o m Eq 62% 61% Al l D i vd s IO N e t Pr o f l l 2 4 .1 5 6 .5 0 250 1 .6 0 5 .7 5 1 9 .2 5 ANNUAL RATES Past of change (hersh) 10 Yrs. 2a2 Past 278 288 l 8 7150 740 W M * 2 0 1 6 V a l l e L i n e l o c . A l l p o w r e s e r v e d . F a c t u a l ma t e d i s o b ta i n e d l o o m s o u r c e s b e l i e v e d to b e r e l i a b l e a n d i s . p r o v i d e d v i i h o u l w a r r a r l l e s a l a r i l . kin d . T H E PU BL I SH ER I S N O T R ES N SI BL E F OR AN Y ER R OR S OR OMI SSI ON S H ER EI N .T h e u N l c a l l o n l s s l n c l t y l a s u b s c n b e f s o w n n o n c o mi n e i c l a l l r l e t l i a l u s e . 0 pa n Of I ma y b e te p fo d u ce d r e so l d sto r e d o r tr a n smi tte d i n a n y p n r l e ti e l e d tu n u co to l h e t l o o mo fu se ¢ l JIo f g cn e fa l i n g o fma l kcl i n g a n y p ml cd 0 e kcu o mc p l i ca ti o n se r vl ce o vp i mi u ct. l W 1 18600 6 .0 % i 1 3 .5 % 1 3 .5 % l I C M S E ner 9/ s utility subsidiar y has e l e c t r i c a n g a s rate cases pending. Companys Financial Strength Stocks Price Stability Price Growth Persistence Eamings Predictability 1 16100 7%. Generating sources: coal 44% gas 10% other 3%. pur chased 43%. Fuel costs: 47% of revenues. 15 reported depress. rates: 3.5% electric. 2.8% gas. 8.7% other. Has 7400 employees. Chairman: John G. Russell. President 8= CEO: Patti Poppa. ln corporated: Michigan. Address: One Energy Plaza. Jackson Michi gan 49201. Ta.: 5177880550. Internet: www.cmsenergy.com (A) Diluted EPS. Exd. nor rec. gains (losses): 10 (8¢); 11 1¢ 12 3¢. 13 EPS dont add C) Incl. if tang.In 15: $6.64/sh. (D) In mill. (E) 05 ($1.61) 06 ($1.08); 07 (s1.26) 09 (7¢) due to rounding. Next earnings report due late ate base: net orig. cost. Rate allowed on 10 3¢; 11 12¢ 12 (14¢) grains (losses) on Oct. (B) Divds historically paid late Feb. May. com. eq. in 15: 10.a%; earned on avg com. disc. ops; 05 7¢ 06 3¢; 0 (40¢); 09 8¢; Aug.8.Nov.lDivd reinvestment plan avail. eq. 15:13.7%. Regulatory Climate: vefage. \ 2 8 6 .0 0 e l u d e lm whate ve r the am o unt o f the charge turns out to be. 5 yr s . E = §d1;9g 15 O r t the elec tr ic s ide C ons um er s E ner gy is Earnings s hould be muc h improved in 2017. We assume no additional charges for Revenues 2.0% 2.5% nil s eeking a tariff inc reas e of $225 m illion "Cash Flow 4.0% 3.0% 7.0% based on an allowed return on equity of a workforce reduction. Consumers Energy gg3"r"d~gg8$ 13.0% 181282 l 0. 7% . A t the s tart o f S e p te m b e r the uti l i should benefit front rate relief assuming BookValue 40% 6.0% Ty s e l fi m p l e m e n te d a S 1 7 0 m i l l i o n h i k e 2.5% reasonable re ulatory treatment from the which it may do under Michigan regula MPSC. Our 2817 profit forecast remains at QU AR T ER L Y R EVEN U ES ( S mi l l . ) c l . . . Full m g , M ar. 31 J un. 30 s . 30 086.31 Year T o r y l a w . T h e s t a f f o f t h e M i c h i g a n P u b l i c $2.15 a share. 2013 1979 1406 1445 1736 6566.I Service Commission (MPSC) is proposion a There is potential upside to CMS $92 million increase based on a 10% R8E. earnings growth goal of 6%8% annu 2014 2523 1468 1430 1758 717g.I . 2015 2111 1350 1486 1509 6456.I T h e MP S C s o r d e r i s d u e i n l a t e F e b r u a r y . ally. Proposed legislation in Michigan if 2016 1801 1371 147s 1550 6200 O n t h e g a s s i d e C o n s u m e r s E n e r g y f i l e d enacted would likely create additional in 2017 1950 1350 1500 1000 6400 f o r a n i n c r e a s e o f $ 9 0 m i l l i o n b a s e d o n a vestment opportunities for Consumers En10.6% ROE. The utility will self ergy. This is not reflected in our estimates EARNINGS PER SHARE A Full Cal ender Mar.31 Jun.30 . 30 Dec.31 Year i m p l e m e n t a r a i s e a t t h e b e g i n n i n g o f F e b - and projections. CMS also has some non 46 37 166 r u a r y w i t h t h e M P S C s d e c i s i o n d u e i n regulated generating capacity that would 2013 .53 .29 ..34 . 1.74 l a t e J u l y . R a t e c a s e s a r e g o i n g t o b e p u t increase its contribution to corporate prof2014 .75 .30 .35 .73 .25 1.89 f o r t h r e g u l a r l y i n t h e c o m i n g y e a r s m a i n its if wholesale power prices rise. 2015 .5 3 .3 8 .5g .45 .50 1 . 9 5 L y t o p l a c e n e w c a p i t a l i n v e s t m e n t i n t h e This s toc k has a dividend yield that is 2016 .4 1 s lig htly b e lo w ave rag e b y utility s tan 2017 .75 .35 .60 .4 5 2.15 r a t e b a s e . QU AR T ER L Y D N ID EN D S PAID B I Cal Full W e h a v e t r i m m e d o u r 2 0 1 6 e a r n i n g s d ard s . L ike many utility is s ue s the re cent quotation is near the upper end of our ender M a r . 3 1 J u n . 3 0 S .30 Dec.31 Year e s t i m a t e b y $ 0 . 0 5 a s h a r e . I n t h e c u r r e n t q u a r t e r C M S e x p e c t s t o r e c o r d a n 20192021 Target Price Range. According 2012 .2 4 .2 4 .2 4 .2 4 .9 6 .255 .255 .255 .255 1.02 u n d i s c l o s e d c h a r g e f o r a n e a r l y r e t i r e m e n t ly total return potential is negligible even 2013 program. Management will exclude this though we project solid dividend growth 2014 .2 7 .27 .2 7 .2 7 1 .0 8 from its typically narrow earnings guid through the end of the decade. 2015 .2 9 .29 .2 9 .2 9 1 .1 6 .31 .31 .31 once of $1.99$2.02 a share but we will in Paul D4bbas. C144 September 16 2016 2016 FMCM c om; l B+4 100 90 80 T o subsc ribe c all 1800VALUELINE l l i E DND 75.33 190 18.5(W:::133) §Fé"Rl¥l5 1.03 YLD R EC ENT NYSE-ED msuusss 3 LuwaWlOl21lI6 1 SAFETY NenIl27m TECHNICAL 3 Luweawwn6 BETA as (1.00Marke1) PRICE High: 49.3 Low: 41.1 LEGENDS 0.65xUividcndss*> sh 49.3 34.1 eivnaed b nclvnerc Rate R d wve e Strength area iadrtales recessuhn - . . . . . . _ . . . . , l 0 AnnITotal Price Gain Recur High 80 (+5% 5% Low 65 15% 1% Insider Decisions 62] 48.6 _ - - l O bliges 46.3 32.6 64.0 54.2 68.9 52.2 72.3 56.9 l . § - 81.9 63.5 l i l l u 1n L- xwnmnlmnmlliu *g ow .~. 66.0 53.6 3.1% Percent shares traded 21 14 7 _ n m n n - m l m I - 4 4 .4 8 45.41 39.65 43.51 40.24 47.66 47.14 48.23 49.62 46.36 45.69 44.17 41.62 42.27 44.11 42.85 39.35 5.51 5.70 5.44 5.12 4.54 5.27 5.28 5.77 5.99 5.86 6.24 6.61 7.15 7.45 7.30 7.93 7.a0 2.74 3.21 3.13 2.83 2.32 2.99 2.95 3.48 3.36 3.14 3.47 3.57 3.86 3.93 3.62 4.05 3.95 2.18 2.20 2.22 2.24 2.26 2.28 230 2.34 2.36 2.42 2.46 2.52 2.60 zee 5.20 5.68 5.72 5.60 6.5 .1 . 'n 7.:u 2.38 . v 2.40 4 .5 2.32 .1 6.72 7.06 27.68 28.44 29.09 29.80 31.09 32.58 35.43 36.46 37.93 25.81 26.71 212.15 lissxlmxzlizra1lzz-31 257.46 12.I 12.0 13.3 14.3 18.2 15.1 .78 .61 .73 .82 .96 .8 0 6.6% s.7% 5.3% 5.5% 5.3% 5.0% CAPITAL STRUCTURE asof 6/30/16 Total Deb! $15201 mill. Due in 5 Yrs $2710 mill. LT Debt $13747 mm. LT Interest $625 mill. (LT interest earned: 3.7x) Leases Uncapitalized Annual refllals $18 mill. Pension Assets12/15 $11759 mill. Oblig $14377 mill. mu Stock None 272.0 73.7 aamwm l 39.05 40.53 292.89 292.87 292.87 12.3 12.5 13.3 15.1 15.4 14.7 15.9 15. .84 .7 3 .74 .8 3 .8 5 .9 5 .9 8 .8 3 .84 5.0% 4.8% 5.7% 6.0% 5.2% 4.5% 4.1% 4 .3 % 4.4% 12137 13120 13583 13032 12938 12188 12381 12919 12000 7 4 9 .0 936.0 933.0 868.0 1062.0 1141.0 1157.0 1066.0 1190 352% 32.6% 36.0% 34.2% 36.0% 36.1% 34.5% 31.8% 34.0% 33.6% 1 .6 % 1.9% 1.7% 2.6% 2.4% 1 .6 % .5% .5% .3% 1% .7 9 50.2% 4 5 .6 % 4 8 .3 % 48.5% 48.6% 46.5% 4 5 .9 % 4 6 .1 % 4 8 .0 % 47.9% 4 8 .5 % 53.1% 50.6% 50.4% 50.4% 52.5% 54.1% 53.9% 5 2 .0 % 521% 16515 16687 19160 20330 21952 21794 21933 22735 24207 25058 18445 19914 20874 22464 23863 25093 26939 28436 29827 32209 6.0% 5.7% 5.9% 6 .2 % 6.5% 6.4% s.s% a s Of 7 I2 9 1 1 6 9.2% 10.4% 9.5% 8.4% 8.9% 9.2% 9.6% 9.4% 8.5% 91% M A RK E T CA P : $ 2 3 b i l l I o n (L a rg e Ca p ) 2.6% 3.9% 3.1% 2.5% 3.2% 3.1% 3.6% 3.6% 2.6% 3.5% 73% 63% e7% 71% 65% 66% 62% 62% 69% 61% Co m m o n S t O Ck 3 0 4 . 4 1 4 9 7 4 $ h $ . a w. A 4 . m n ~» zw[ u wm A»g.lnrlusLRevs. w Canau\yatpeak(a: ) m m L m r w ( %Change Cusnms yum) 2011 NA NA NM F 14883 NM F NA NA NA NM F 13568 NM F NA 20118 NA NA NM F 13721 NM F NA BUSINESS: Consolidated Edison Inc. is a hading company for Consolidated Edison Company of New York Inc. (CECONY) which sells electricity gas. and steam in most of New York City and Westchester County. Also owns Orange and Rockland Utilities (O&R) which operates in New York OnO New Jersey. Has 3.6 mil . . . .. h o n e l e ctri c 1 .2 m 1 l l » 0 n g a s cu sto m e rs. P u rsu e s co m p e tn twe e n e rg y 40.35 Revenues per sh 8.30 Cash Flow" per sh 4.15 Eamings perch A 276 Divd DecId perch a l ap I pending per sh Bock Value per sh c MWW 8 4.1% 62% 201 % T OT . RET URN 1 0 /1 6 THE VL 1R111L sw c x Un i x 1 yr. 19.3 6.4 3 yr. 46.7 15.7 5 y1. 60.3 76.0 3 06 0 0 13.8 7.0% %o\angm¢asi a»s(xwHl - Bold fig s an Avg AnnI PIE Ratio Vale *"'° Relative PIE Ratio °"' res Avg AnnI oivu Yield 15.5 5.0% E L E CT RI C O P E RA T I NG S T A T I S T I CS - * ,A lllnlmulmllllllllllllllllulmnmmlnn1lmllmml-mllnnlnllllnlnumnlllulnnnlmll IllllllIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIlllIlIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIHIIIIIIIIIIIIIIIIIIIII 2 0 1 2 2 0 1 3 2 0 1 4 H u sain 2017 aamrimauwzannnmn 2 0 0 5 2 0 0 6 ume Target Price Range 20 9 2020 20 1 120 100 80 64 48 32 24 20 16 12 J F MA MJ J A s to8uy 10 a 810 8 810 a 8 0ll11°1\S 2110290200 \0Se l 0 0 0 0 0 0 0 0 0 Institutional Decisions mans 10N16 202016 loBby 299 368 375 !0 Se I 287 215 265 DM 0 0 0 1 5 2 7 4 9 1 6 3 5 6 3 1 6 7 5 1 6 VALUE LINE Revenues ($mill) Net Profit $mill Income TaxRate AFUDC '/» to Net Profit LongTerm Debt Ratio Common E u Ratio 27525 Total Capital ($miII) 37925 Net Plant Sum 6.0% Recur on TotaI Cap'I 8.5% Return on Shr. Equity 8.5% Recur on Com E up E 25% Retained to Com Eq 67% All Divd5 to Net Pro 8 a 43.75 9.25 4.50 3.00 309.00 16.0 1.00 4.2% W M M 30100 44500 8 opportunities through three wholly owned subsidiaries. Entered into midstream gas joint venture 6/16. Purchases most of its power. Fuel costs: 30% al revenues. 15 reported depredation rates: 3.0% 31%. Has 14.800 employees. Chairman President a CEO: John McAvoy. Inc.: New Yor1<. Address: 4 Owing Place. New York New York 10003. Tel.: 2124604600. Internet: www.oonedison.com. see 370 C on s ol i d at ed E d i s on s l arg es t u t i l i t y $ 0 . 0 4 t o s h a r e n o t s o f a r i n 2 0 1 6 . C o n E d Fxied Cov1 .%) Esfa 1315 subsidiary has wuacqed a settlement a l s o h a s a 1 2 . 5 % s t a k e i n a p r o p o s e d $ 3 . 0 A N N U A L R A T E S P a st P a st [cho sh 1 oy . BY . 1921 0 its rate Case. Fl( CF the agl€€ll1€ll[ b i l l i o n $ 3 . 5 b i l l i o n p i p e l i n e i n W e s t V i r is" 2.0% is lo .5% electric rates of Consolidated Edison Com g i n i a . C o m p l e t i o n i s e x p e c t e d i n l a t e 2 0 1 8 . '»3¢vJ88"§' ) 4.5% E<=3gF;°w pang' of New York would rise $195 million E a r n i n g s s h o u l d a d v a n c e i n 2 0 1 7 . W e 3.0% Dividengd$ 1:0% 1.5% ill million in and as s um e that the regulatory s ettlem ent is Book Value 4.0% 3.5% 3.5% million in 2019. CECONY would also bo a p p r o v e d a n d t h a t C o n E d b e n e f i t s f r o m a ncfit from amortizations to income of rcgu f u l l y e a r s w o r t h o f i t s i n v e s t m e n t i n Cal Full endar m°T31"'5""3%"'§"".3%"6"'""31 Year oratory liabilities: $84 million $83 million. S tagec oac h. I . 2013 2014 2015 2016 2017 Cab ender 2013 2014 2015 2016 2017 Cal endar 2012 2013 2014 2015 2016 385 and $69 million in 2017 2018 and 2019. The c ompany has c ompleted the s ale respectively. On the was side the utilitys o f its re tail e le c tric s up p ly b us ine s s . rates would be cut $ million in 2017 but This deal raised $200 million. In the third 1 3443 277 12 952 3417 26033 12000 554 w o u l d i n c r e a s e $ 9 2 m i l l i o n i n 2 0 1 8 a n d quarter ConEd booked an aftertax gain of 3300 2800 3450 2800 12350 $ 9 0 m i l l i o n i n 2 0 1 9 . A m o r t i z a t i o n s t o i n $47 million ($0.l5 a share) on the sale EARN N PER HA A c om e o f r e g u l a t o r y liabilities w o u l d which we excluded from our earnings pres Full Mar.31 JunGC8) $. 5.3gE0ec.31 Year a m o u n t t o $ 3 9 m i l l i o n i n 2 0 1 7 , $ 3 7 m i l l i o n entation as a nonrecurring item. in 2018 and $36 m illion in 2019. The 2l1 W e lo o k f o r a d ivid e nd hike in e arly 1.16 .49 1 .49 .79 3.93 1.23 3.62 lowed return on equity would be 9% and 2017. This has been the pattern in recent .63 1.49 .28 1.26 .74 1.45 .60 4.05 the commonequity ratio would be 48%. years. W e estimate that the board will 1.05 .78 1.48 .64 3.95 The New York State Public Service Com boos t the quarterly payout by $0.02 a 1.20 .15 1.55 55 4.15 mission must still rule on the settlement. share (3.0%) the same increase as in each QUARTERLY0IV 0£N1)$PAIDB1 Full Its order is expected by yearend. of the past two years. a midstream gas acquisi- T his hig hq uality s to c k has a d ivid e nd Mar.31 Jun.30 Se .30 Dec.31 Year ConEd made . 2.42 son earlier this year. The company has yie ld a o ut e q ual to the utility m e an. .605 .605 .605 .605 I W ith the re c e nt p ric e we ll within o ur .615 .615 .615 .615 2.46 a 50% interest ($968 million) in Stage 2.52 coach Storage and Stagecoach Pipelines 20192021 Target Price Range total re .63 .ea .63 .63 .65 2.60 which serves northern Pennsylvania and turn potential is low. .65 .65 .65 .67 s o uthe rn Ne w Yo rk. T his c o ntrib ute d Paul E. Debbas CFA November 18. 2016 .67 .67 (A) Diluted EPS. Excl. nor rec. gains (losses): inks report due midFeb. (B) Divd5 historically most. Rate allowed on com. eq. forCECONY in Companys Financial Strength A+ 02 (11¢) 03 (45¢) 13 (32¢); 14 9¢; 16 paid in midMar. June Sept. and Dec. I Divd 14: 9.2% elec. 9.3% gas&steam O&R in 15: Stocks Price Stability 100 15¢ gain on discount. operations: 08 $1.01. reinveslmentplan avail 1cl21n¢I. if tang. In1.5: 9.0% earned on avg. com. eq. 15: 9.3%. Price Growth Persistence 45 14 E Sdontadd duelorounr1 ng.Nexteam $29.74lsh.(D)ln mlll.(E ate base:netong. Regulatory Climate:Below Average. Eamings Predictability 95 9 2016 Value Line Inc. AIP19-s resewers. Faclual material is uhlained tram sources beieveii to be refable and is. provided viiham warrarlies al aril. kind. THEPUBLISHERISNO!RESNSIBLEFORANYERRORSQROMISSI0NSHEREIN..l.3Jaubtcauon l is strictly lot subscriber s own. noncomrncrclal irlernal use. n pan To subscribe call 1800-VALUELINE dhmaybereproducednesol i sl oreeorl ransrnmedIn any pri nted dedrumcorol hrnl orntor lot generaungnrmarlteung are pmledorelectromc puhicauun scrviceorprndud. 9 \ I R EC ENT DOMINI0N RESI NYSE-D nusunzss 3 lNde Ed 11118I15 2 Rai§ell9ll1B8 SAFFTY TECHNICAL 3 L°ma\ 1n1ns sen .as (1.00Marie() .v I Prim Gain H M 110 (+ 45% Lw 80 + 5% Ins ider Dec is ions AnnITotd Ratum 13% 6% J F u A u J J A s Ioluy 0 0 0 0 0 0 0 0 0 0wl141\S 2 8 1 0 4 0 0 0 1 0Sd 0 1 0 0 0 0 0 0 0 Institutional Decisions PRICE High: 43.5 Low: 33.3 LEGENDS : 22.8 75.50 sat.. 19.2(:.-sg-:.= : 18.0 49.4 39.8 42.2 3 4 .4 39.8 27.1 55.6 48.9 §7851.079'8" 68.0 51.9 80.9 63.1 79.9 64.5 4.0% Tar$et Price R="g° 20 9 2020 20 1 79.0 66.3 _ - - - - 2 1 - - I -mum - vs».m@nmnnnmln.- - _ .. -e4a "z » ¢@ - - - - - - - - - - - - - - - - - " 0.17 x Sh Gwdcd "l4'£'" Rafe Ma u ve e Suengh 241:.1 Eu 111o7 . . Vas 4 2 8 1 1 I n i n i cm s m a s s e - _ " w n n m I\ n u -n n u - a » l m *.~¢ - - 25.96 3.70 1.50 1.34 4.pk 14.96 ill_ H 1 M l l ! - l H ! - - ] _ - H mImn\nllnIIIIIInnmnnuIIunInlImn11IInn\1mlIIInunnllnulnlnlnn1'lrlnnnHlmnrrm1nnnnl_ lllllllllllIIIIIIIIIIIIIIIIIIIIIIIlllIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII1 - 2015 . 2 0 1 6 2 0 1 7 3.71 3.92 1.25 1.49 M 1.29 1.29 W . 1.07 4.1% 20.54 4.18 2.13 1.30 .1 . 16.57 16.79 ..1 $9 1 .4 1.26 5.3% 1. .66 4.4% 15. .87 4.3% 698.00 9 15.1 .80 4.0% Leases,Uncapitalizod Annual rentals $67 mil. Pension Assets12/15 $6166 mil. Obllg $6391 mill Pfd Slodl None Common Stock 625763030 she. as Cf 1115116 MARKET CAP: $47 bllllun (Large Cap) ELECTRIC OPERATING STATISTICS 2013 2014 2015 +2.7 +1 .6 +.7 14444 13847 13433 6.00 6.12 6.17 A*s .*M m g ; (¢) a pa uqa m a ( NA NA NA NA NA PsikLod.$u1l11¢f ) NA NA NA n v m wr x u I NA ll llnngatilxstzumess nd) +.9 +1 .0 +.9 WM 1 ma I . aw. Is 339 266 352 ANNUAL RATES Past P as t E s t d 1315 5 yrs. to 19'21 d ¢*'@"9° (PAY sh) 10 Yrs. Revenues .5% 4. 5% .5% "Cash FIori/ 4.0% 2.5% 9.5% Eamings 5.5% 1.5% 10.0% Dividends 6.5% 7.0% 8.0% Book Value 2.5% 1.5% 6.0% 0UARTERLYREVENUES($mill.) Full Cd endar Mar.31 Jun.30 S . .30 Dec.31 Year 2014 2015 2016 2017 3523 3630 3409 2921 3450 2980 2813 2747 2598 2850 3432 3050 2971 3132 3150 3185 2943 2556 2849 2900 2017 EARNINGS PERSHARE A Mar.31 Jun.30 .30 DeC.31 .86 .47 1.02 .74 1.03 .60 .95 .46 91 .70 1.00 .ea .88 .73 1.10 .94 1.10 .80 1.15 .95 Cab end e r QUARTERLY DNIDENDS PAID a l Mar.31 Jun.30 s .30 Dec.31 Cab ender 2013 2014 2015 2016 2012 2013 2014 2015 2015 .5275 .5625 .60 .6475 .70 .5275 .5625 .60 .6475 .70 .5275 .5625 .60 .6475 .10 .5275 .5625 .60 .6475 23.61 4.91 2.40 1.38 21.17 5.08 2.13 1.46 GM CAPITAL STRUCTURE as M 6/30/16 Total Debt $29572 mm. Due in 5 Yrs $12383 mill. LT Debt $24787 mill. LT lntafost s1046 mill. (LT interest earned: 3.8x) 2013 18. .86 3.9% 27.93 5.07 3.04 1.58 l 25.24 4.82 2.64 1.75 I 1.09 3.3% 8 1728 18.66 13. .83 3.8% 1 .7 .85 5.2% 491 :Tl 576.80 20. 26.17 5.11 2.89 1.83 14. .91 4.4% 25.24 5.04 2.76 1.97 22.73 5.24 2.15 2.11 22.56 5.47 3.09 2.25 1 '. 2125 5.71 3.05 2.40 60 50 40 - I 1 8.05 I I M M 1. 1.08 3.8% 1 yr. 3 y1. 5 yr. WIS slua 9.4 31.5 76.1 30 20 15 aL lRI1N. nncx 6.4 15.7 76.0 _ [ 19.15 Revenues perch 7.30 Cash FlOW" perch 4.00 Eamlngs perch A 3. 02 DlvdDedd pers h°1 .1 19.74 17. 1.09 4.1% 18.50 6.60 3.65 280 19.59 5.98 3.20 2.59 apI 21.50 9.75 5.50 3.80 p e n i n p e rch 26.30 Book Value perch c l 621.00 64500 22.1 s wa g : in A vgA nn'IP IE Rat io 1.11 VII Llm Relative PIE Ratio 3.7% °" "" Avg AnnlDIvdYleld lzauzl EI 12436 11683 1793.0 1899.0 65.4% 64.0% 46.2% 41.1% 39.8% 41.5% 42.8% 39.3% 38.2% 37.3% 34.6% 36.0% 27961 22898 25290 26923 28012 29097 27676 31229 33360 36280 41750 43975 Total Capltal ($m ill) 47000 29382 21352 23274 25592 26713 29670 30773 32628 36270 41554 49300 52325 Net Plant Sm all 59500 7.9% 8.0% 8.7% 7.5% 7.7% 7.0% 7.5% 7.3% 6.6% 6.5% R e tum onTota i C a p'l 9.0% 12.9% 14.6% 17.2% 13.9% 14.1% 13.7% 14.7% 15.2% 15.5% 15.0% R e tum o nShr. Equity 19.0% 13.1% 14.9% 17.5% 14.0% 14.2% 13.9% 14.9% 15.4% 15.4% 5.0% 67% 8.4% 52% 4.7% 67% 5.3% as s 4.0% 71% 3.5% 77% 4.2% 73% 3.3% 79% % 8 Com m onE u 88 8 8 15.0% 3.5% 73% Revenues ($MIII) Net Profit Sum Income Tax Rate Aruoc°/.io NetProflt LongTerm Debt Ratio . 5 29.00 16482 15674 16290 15131 15197 14379 13093 13120 1704.0 1414.0 1181.0 1585.0 1724.0 1603.0 1594.0 1806.0 35.5% 33.4% 37.1% 33.2% 38.6% 34.6% 7.9% 7.3% 4.9% 4.8% 5.9% 5.3% 52.9% 57.8% 59.1% 57.5% 56.3% 59.8% 60.9% 61.9% 13400 3580 R a tio R e tu m o n C o m E u E 10.0% Retained to Com Eq AIIDivdsto NetPrd BUSINESS: Dominion Resources. Inc. as a hading company for dental. 4696; commercial 32% inausmaI 7%. other. 15%. Genera Virginia Power & NorM Carolina Power which serve 2.6 mm. cus ting sources: nuder 30% coal 26% gas. 23%. other. 6%. porch.. tamers in Wginia & ncnheastem North Carolina. Serves 2.3 mm. 15%. Fud costs: 31% d revs. 15 reported dept. rates: 2.3%3.7%. gas customers in Ohio West Virginia. & Utah. Nonutility ops. ind. Has 14700 employees. Chaimian Pres. 81 CEO: Thomas F. Farrell independent power production. Owns 70.9% d Dominion Mid li. Inc.:VA.Address: 120 TredegarSt. P.O.Box 26532 Richmond Stream Partners. Acqd Questar 9/16. Elem. rev. breakdown: resi VA 232616532. Tel.: B04-8192000. Internet: www.dom.oom. Dom i ni on Resources acquisition of Questar completed the in September. 2017. All of this helps boost Dominions earning power. Dominion paid $4.4 billion in cash for Some nonutility projects are under Q u c s t a r w h i c h h a s a g a s u t i l i t y s e r vi n g construction. roOst notable is the Covc about a m i l l i on c us tomers (mos t ly i n Point liquefied natural gas terminal. This Utah) a gas pipeline that Dominion will is expected to be in service in late 2017 at sell to its Dominion Midstream Partners a cost of $3.4 billion$3.8 billion. Some u n i t f o r $ 1 . 7 b i l l i o n a n d a n o p e r a t i o n t h a t pipeline projects arc in various stages of produces gas for the utility. The companys development. most notably the Atlantic financing moves included the issuance of Coast Pipeline. Dominion has a 48% stake 13120 in this $4.5 billion$5.0 billion project. ex12436 $1.3 billion of longterm debt and $1.4 bil 11683 lion of mandatorily convertible debt. The pecked to be in service in late 2018. 11500 dropdown of the gas pipeline will hellp sup- North Carolina Power has reached a 12350 port Dominion Midstreams goal o 22% settlement of its rate case. The agreedistribution growth without additional as- ment calls for a tariff hike of $34.7 million Fol» Year set acquisitions or equity contributions based on a 9.9% return on equity. A ruling through mld2018. Our estimates and from the state commission is expected in 3.09 3.05 projections now include Questar. December with new rates taking effect at 3.20 Virginia Power continues to add ge" the start of 2017. 3.65 eating capacity. In April a 1 5 8 We look for a dividend increase in the 4.00 megawatt gasfired plant went on line at a first quarter of 2017. We estimate a Full cost of $1.2 billion. The utility is building a raise of $0.22 a share (7.9%) annually. Year 1.588mw wasfired facility at an expected This is in line with Dominions dividend cost of $l. billion. This is expected to en rowth goal of 8% a year. 2.11 tee commercial operation in late 2018. The hi s stock offers a good di vi dend 2.25 2.40 company also plans to add more than 200 yield and respectable 3- to 5year total 2.59 mw of solar capacity in Virginia and North return potential. Carolina in the fourth quarter a n d i n Paul E. Debbas. CFA N o v e m b e r 1 8 2 0 1 6 A; Dif. egg. Exd. nor rec. gains (losses): 01 06 2e¢ 07 1¢. 10 26¢ 12 4¢ .13 16¢. 14 avail. (c) Ind. if tang. In 15: $9.51/sh. (D) In 4 ¢) 03 (5146) 04 (22¢) 06 (18¢) 07 & 15 EPS dont add due to rounding. Next egg. mill. adj. for split. (E) Rate base:Na orig. cost. 1.67. 08 12¢ 09 (47¢) 10 $2.18 11 (7¢) due early Feb. (8) Div/ds history. paid in miry adj. Rate alld on com. eq. in 11: 10.9% am. 12 ($1.70). 14 (76¢) losses from disc. ops.: Mar. June. Sept. 8-Dec.lDhfd rdnvest. plan on avg. com. eq. 15: 15.G%. Reg. Clim.: Avg. resewed. Factual material is obtain iron sauces beiewd lo be reiaue and is pfovi4e4 www warranties al ml, aimil. e 2016 Value Line Inc. THE PUBLISHER as NOT RES NSIQLE FOR ANY ERRORS OR OMISSIONS HEREIN. Il;:rlncwul l is www tot sWscrhers own Ownconmadal iflemal use. o pay dimaybelepmducedlesnl\1slofedurlransniledhiaiypvileeldecumlcuallmrlolmu Iageneratingosmafletingarypliiledudecuonkpubindnn. saviceofpvodud. m" - * voe. RETURN 10116 16.58 4.45 2.41 1.29 18.57 3.97 1.96 1.29 120 1o0 a0 *¢° *-4- *,.* - 1 15 10 5 19.94 160 - mu lin n l 19315 1oao1s zazals Percent '°w 390 453 499 shares 10 394 369 314 traded no ooh 376903 395360 398528 18.84 VALUE LINE Company Flnanclal Strength Stock's rice Stablllty Prisca Growth Persistence Eamings Predlctablllty B++ 100 85 80 To s ubs c ri be c al l 1800-V A LUE LINE W R EC ENT PRICE DTEENERGYC0. NYSEDTE T M E UNE S S 1 SAFEW 2 Rai sefnz/21/12 High: 483 Low: 41.4 LEGENDS Raised 8ll9H6 TECHNICAL 1 Raseasnsns Price Gain Nigh 100 (+ 5% Low 75 20% Ins ider Dec is ions 2000 49.1 41.3 55.3 43.2 62.6 52.5 73.3 90.8 60.3 64.8 92.3 73.2 D ND Y LD 3.3% VALUE LINE 1004 78.0 J 0 0 0 sums 102015 zczois 237 234 249 194 200 205 118180 121527 117383 2 0 0 1 I z m z l 2003 160 - __________ - - 1 - _ - gn1inmn!na w1lnl!.=.'18»unnal _ _ - - _ § - § - § - - - 60 50 40 Q 20 % rot RETURN 8116 _ - 41.76 40.84 50.74 50.93 54.28 57.23 48.45 50.51 52.57 51.01 54.56 69.50 57.60 56.80 5 9 . 8 5 Re ve n u e s p e r sh 8.59 6.98 8.31 6.95 6.81 8.14 8.19 8.48 8.26 9.38 9.78 9.57 9.77 10.13 1 1 .8 5 9.44 1 0 .3 0 1 1 . 2 5 " Ca s h F l a n p e r s h 3.27 2.15 3.83 2.85 2.55 3.27 2.45 2.66 2.73 3.24 3.74 3.67 3.88 3.76 5.10 4.45 4.00 5 . 3 0 E a m i n g s p e r sh * 2.06 2.06 2.06 2.06 2.06 2.06 2.08 2.12 2.12 2.12 2.18 2.32 2.42 2.69 2.84 3.00 3 . 1 6 Di v d De c I d p e r sh s l 5.25 .8 0 5.99 7 .9 .4 :.7 2.59 1 . 28.15 28.48 5. .45 . 27.26 31.36 32.44 33.02 35.86 nzxalram 167.46 168.61 174.21 177.81 177.14 163.23 .4 36.77 . 37.96 19.3 11.3 13.7 16.0 13.B 17.4 1 .3 14. z 1 I .4 .6 7 .9 9 .6 2 .7 8 .8 5 .7 3 .94 .9 7 .8 9 .6 9 6.1% 5.0% 4.8% 5.3% 5011. 4.6% CA P ITA L S TRUCTURE a s o f 6 / 3 0 / 1 6 . T o ta l De b t $ 9 6 8 3 m i l l . D u e l n sy rs$ 2 2 0 4 m 1 1 1 . L T De b t $ 9 3 4 3 m i l l . L T l n t e ro st M 3 4 m 1 I L Incl. $12 mall. capitalized leases and $780 mall. Trust Preferred Securities. (LT interest earned: 3.7x) Leases Uncapitallzed Annual rentals $37 mill. Pension Assets12l15 $3832 mill. Obllg $4971 mill. Pfd Stock None Common Stock 179435004 she. M A RK E T CA P : $ 1 7 b i l l i o n (L a rg e Ca p ) E L E CT RI C O P E RA T I NG S T A T I S T I CS 2018 NA NMF NA NA 2014 1.7 NA NMF NA NA 2015 . es NA NMF NA NA % Change Cuslnmefs send) NA NA NA NA NA NA #ow Cha . Cov. Yu 271 357 279 ANNUAL RATES Past of derange (Def sh) 10 Yrs. Revenues 3.0% Cash Flow 35% Eamings 4.5% Dividends 3.0% Book Value 4.0% Past 39.67 1 9.43 10.3 Nl\1d Load FaciJf( I 15 "IS VLARITN. SYOCK max Percent 15 n m nmn m n \ n m\1 n m l- nnl mnnmnn nm 1I'!- 1 yr. 23.2 10.9 shares 10 3 yr. 54.6 29.8 traded 5 i~ mmln un un 1n m m1mn n n n n ' 5 yr. 122.2 84.5 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111112004 z z m nz z m a 2007 2008 2009 m n l t z m l a a a 2013 2014 2015 A n n 2017 40.30 n, 120 100 a0 Z 48.71 4, l Tares Price Rang* 20 9 2020 20 1 39.24 Avg.lndlisLRevs. l 30 A H Institutional Decisions lo Buy to Sell Hld 000 45.3 27.8 0.10 x DMdcnl.lblcatlon is strlclly lot subscribers ohm nonconlnercial imemal uggmg pan d l may he reproduced resold. sloletiorlransmnledln any printed eledrcmcotoMerlornt ore lot genefatlngofmarkeung any pfnled or electmmc puhicatlmseavlceolproclucl. Companys Financial Strength Stocks Price Stability Price Growdi Persistence Eamings Predictability B4+ 100 85 90 To s ubs c ri be c al l 1800~ V A LUE LINE R EC ENT EDISON IN'[ERNAT'Lny$E.Elx TIMELINESS 3 uw¢ae410nu1s H ig h . L o w: SAFEW LEGENDS 2 Raisw 5/3113 TECHNICAL 3 lovle Ed 10I28I16 BETA .as (1.00mafml 01 Annl Total Price Gain Return High a s (+ 20% 7% Low 65 10% 1% Ins ider Dec is ions 0 J F u A M J JA toBy 0 0 0 1 0 0 0 0 0 Onuws 0 s s 1 0 2 1 0 0 loSels 0 0 2 2 0 1 1 0 0 Ins t it ut ional Dec is ions mms 1QN16 102016 loBe 241 2a2 264 !Sell 233 231 246 ma 000 265404 269086 267229 2003 tzamllmmlma 4 9 .2 3 0 .4 PRICE 60.3 42.8 47.2 37.9 1.19 x Dvviuendssr sh l1ivldc4 Hg Indore Rate Relative nee Suengh 55.7 26.7 36.7 23.1 - - - - - 9 - - h a s - Percent shares traded 15 10 5 - - - 43.31 3798 d.52 4.35 4 .7 9 5.88 3.79 6.99 7.25 7.60 8.08 4584 1 .30 1.82 2.38 .6 9 3.34 3.28 3.32 .8 0 1.02 1 .10 1 .18 5. 2 5.7 7.7 - - - 18.57 20.30 23.66 7 .8 7.0 NM F 11.7 13.0 .4 3 .4 0 NM F .6 2 .7 0 3.1% 2.6% 2.6% CAPITAL STRUCTURE as of 6130/16 Total Debt $12341 mill. Due in 5 Yrs $2403 mm. LT Debt $10845 mill. LT Interest $488 mill. (LT inl8r€$l earned: 3.7x) Leases, Uncapltalized Annual rentals M42 mill. Pens. Assets12/15 $3298 mill. Oblig. $4374 mill. Pfd Stock $2191 mill. Pfd Divd $113 mill. 4.800198 sh. 4.08%4.78% $25 par Cell. $25.50 $28.75lsh. 3.250.000 sh. variable noncom. call. $100. 1.250.000 sh. 6.5%. wm. $100 liq. value; 350000 sh. 6.25%. s100015Q. value; 460.012 sh. 5.1%5.75% S2500 liq. value. Common Stock 325811 206 she. as of 7126/16 MARKET CAP: $23 billion (Large Cap) ELECTRIC OPERATING STATISTICS 2013 2014 2015 .a +2.1 1 .4 791 788 703 8.00 8.86 9.07 NA NA NA PeakLoad.5urmulu) 22534 23055 23079 Arlhdloadfathf( I 52.1 52.3 52.2 wwangeCuxsiumers md) +.6 +.6 +.6 Alu m(¢) 2013 2014 2015 2016 2017 Cal ender 2012 2013 2014 2015 2016 - - 39.16 36.41 38.61 41.17 35.37 3 5 .6 0 7.96 8.41 9.03 9.63 8.80 996 1 0 .3 5 1 0 .4 5 3.68 3.24 3.35 3.23 4.55 3.78 4.33 4.15 3.95 123 1.25 1.29 1.31 1.37 1.48 1 .7 3 1.96 1 . 1.27 1 . . 1 1 .I 5 1 1 .9 9 1 .97 1 1 .5 5 30.20 32.44 30.86 1I . .66 3.7% 325.81 11.: .7 .74 .62 3.4% 3.0% 29.21 31.4% 5.1% 51.3% 43.5% 17725 15913 8.6% 13.1% 14.0% 10.1% 31% 16.0 .85 2.2% 12.4 .75 2.7% 91 .65 4.0% 41 30.50 :Et 12.7 .71 2.8% 13113 14112 12374 12409 12760 11862 12581 1151.0 1266.0 1115.0 1153.0 1112.0 1594.0 1344.0 27.3% 30.7% 33.0% 32.1% 25.7% 14.3% 25.2% 8.2% 8.9% 10.5% 16.9% 14.8% 8.5% 7.8% 49.1% 51.2% 49.3% 51.8% 55.3% 45.2% 45.7% 46.0% 44.5% 46.5% 44.3% 40.6% 46.2% 46.2% 18375 21374 21185 23861 l 24773 20422 17403 18969 21966 24778 2 32116 30273 83% 7.4% 6.9% 6.3% 6.0% 8.9% 73% 12.3% 12.1% 10.4% 10.0% 10.0% 14.2% 11.5% 13.0% 12.8% 103% 10.4% 10.5% 15.9% 12.5% 9.2% 8.6% 6.7% 6.5% 6.3% 11.4% 8.1% 33% 35% 41% 40% 43% 32% 40% BUSINESS: Edison lntemational (formerly SCECorp) is a holding company for Souther California Edison Company (SCE) whit supplies electricity lo 4.9 mill. customers in a 50.000sq.mi. area in central coastal a southern CA (end. Los Angeles & San Diego). Edison Energy is an energy sirs. co. Disc. Edison Mission Energy (independent pwra producer) in 12 Elec. rev. breakdown: resi E d i s o n In t e r n a t i o n a l s u t i l i t y s u b s i d i ary has Hled a e n c r a l r a t e c as e. Southern Cal i fo rni a Edison r e w e s t e d i n c reas es of $222 m illion ( 2 1 4 ) i n 2 0 1 8 (plus $48 m illion on a onetim e bas is to rec over various deferred item s ); $533 m il l i o n (4.2%) i n 2 0 1 9 : a n d $ 5 7 0 m i l l i o n (5.2%) in 2020. SCE wants to replac e old Cal QUARTERLY REVENUES (I mill.) Full ender Mar.31 Jun.30 Se .30 Dec.31 Year e q u i p m e n t a c c o m m o d a t e g r o w t h i n c u s tom ers and dem and and m oderniz e the 2013 2632 3046 3960 2943 12581 elec tric grid. (The utility expec ts to s pend 2014 2926 3016 4356 3115 13413 Cal ender - 3809 1 325.81 2015 2016 2017 n - 306 247 P as t E s t d 1315 5 yrs. to 1921 .5% 2.0% 3.5% 5.0% 3.5% 3.5% 4.0% 9.5% 1.5% 5.5% 33.64 34.89 32581 325.81 13.0 .68 2.6% " 1 yr. 3 yr. 5 yr. r m STUGK 17.7 70.1 115.6 12 8 VL AMTN. l a te x 17.7 237 1081 t 37.45 Revenues perch 10.95 Cash Flow perch 4.15 Eamings perch A 210 Divd Decld per sh B l 13.80 apI pending per sh 36.65 Book Value per sh c 42.75 13.00 5.00 zs mznzaxnn-i§ai&nl 36.75 14.8 sou He s o n .75 V" Llm 2.8% "' "°' 13413 11524 1539.0 1480.0 22.4% 6.6% 5.8% 8.0% 44.1% 45.0% 47.2% 46.7% 23216 24352 32981 35085 7.7% 7.1% 11.9% 11.1% 13.0% 12.0% 8.8% 7.2% 37% 44% - 24 20 16 as rot RETURN 9116 lntllnnlrn1rl1\llll111llllllm llllllllnllulnunl lllllm nnlnnm lnnlllllu Il'llllllII1IIIIIIIIIIIIl1llllllIIIIIIIllllllllllIIIIIIIIIIII1llII1llIllHlllllflllllIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII1IIlllll - Q 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 2 0 0 4 2 0 0 5 2006 2007 2008 ' 2017 4025 295 I -Kl - - " ! i " - 38.74 ANNUAL RATES Past al range (pa sh) 10 Yrs. Revenues 1.0% "Cash Flow" 5.5% Eamings 6.5% Dividends 9.5% Book Value 6.0% 120 100 80 so 48 - a n n u m ! ! 32 3638 FixedCha . Cav. 'In Target Price R="3° 20 9 2020 20 1 4-I NI I U . Una a 1 .a o 13.62 - LINE 7 8 .7 58.0 g .". 37.25 7.43 68.7 44.7 2.9% _...mmn1nl-_;r4-nnlmllmw- - _ _ - 35.26 4. - 480 39.6 a re a sca l e s f 8C8$$40 7 35.10 4.57 41.6 32.6 39.4 30.4 - 35.96 so V A LUE 72.07 'gm 18.1 ('..'3:::138 '»3Fé'RR'¥»'€) 0.98 WD" % 8.0% 8.0% 44.0% 4 7 .5 % 25225 36750 6.5% 10.0% 11.0% Avg Annl PIE Ratio Relative PE Ratio Avg AnnIDivd Yield 12200 Revenues (smiul 1490 Net profit Small Income Tax Rate AFUDC%t0 Net Profit LongTerm Debt Ratio CommonE u Ratio 26950 Total Capital($mlll) 39050 Nat plant $mlll 6.5% RetumonTotal Capl 10.0% RetumonShr.Equity 11.0% RetumonComE up s Retained to Com Eq AIlDivdsto NetPro1 M M 13900 1775 45.0% 4 8 .0 % 30500 46900 7096 l 1 0 .5 % 1 1 .5 % denial 37%; commercial 44%; industrial 6%. Other 13%. Genera ting sources: gas. 7%; nuclear 7%: hydro. 1%; purchased 85%. Fud costs: 37% of revs. 15 reported dept. rate: 3.9%. Has 13700 employ. Chairman: William p. Sullivan. Pres. & CEO: Pedro J. paz zaro. Inc.: CA. Address: 2244 Walnut Grove Ave. P.O. Box 976 Rosemead CA 91770. Tel; S263022222. Web: www.edison.com. r e a d y p r o vi d e d c u s t o m e r s r e f u n d s a n d c redits totaling nearly $1.5 billion and the pos s ibilit y of an addit ional refund c annot be ruled out. We fo re c as t an e arning s re c o v e ry in 2017 afte r a mo d e s t d e c line this y e ar. Due to c e rtai n c re d i ts the l ax rate i s l i k e ly to b e unus ually lo w in 2016 b ut p ro b a b l y no t as l o w as i n 2015. Our e s ti m ate i s ne ar the up p e r e r\ d o f the c o mp any s tar g e te d rang e o f $3. 81$4. 01 a s hare . Ne x t y e a r e a r n i n g s s h o u l d r e b o u n d b e c aus e 2512 2908 3763 2341 11524 $ 2 . 3 b i l l i o n o n g r i d m o d e r n i z a t i o n f r o m S CE s i nc o m e ad v anc e s wi th g ro wth i n the 2440 2777 3900 2483 11600 2 0 1 6 t h r o u g h 2 0 2 0 . m o s t l y b e g i n n i n g i n uti l i ty s rate b as e . 2650 2950 4000 2600 12200 2 0 1 8 . ) N o t e t h a t t h i s c a s e d o e s n o t a d d r e s s the c o s t o f c ap i tal . S CE i s as k i ng fo r a rul We e x p e c t a d iv id e nd inc re as e in the EARNINGS PERSHARE A Full Mar.31 Jun.30 Sep.30 Dec.31 Year i n b y t h e e n d o f 2 0 1 7 . E v e n i f t h e C a l i f o r - f o u r t h q u a r t e r . T h i s h a s b e e n t h e t i m i n g P i a P u b l i c U t i l i t i e s C o m m i s s i o n ( C P U C ) o f d i v i d e nd hi k e s i n re c e nt y e ars . We e s ti .78 .78 1.41 .81 3.78 d o e s no t i s s ue an o rd e r b y the n. ne w tar mate that the q uarte rly p ay o ut will b e .01 1.07 1.51 1.15 4.33 raise d b y $0.035 a share (7.3%). a ve ry .91 1.15 1.15 .g4 4.15 o f f s w i l l b e r e t r o a c t i v e t o t h e s t a r t o f 2 0 1 8 . i s awai ti ng a d e c i s i o n fro m he al thy p ac e . The ne w d i v i d e nd wo ul d b e .82 .85 1.48 .80 3.95 T h e u t i l i t y p ai d i n the fi rs t p e ri o d o f 2017. .85 .85 1.60 .05 4.15 t h e C P U C Y c o n c e r n i n g t h e p o s s i b l e r e lhis s to c k has a d iv id e nd y ie ld that is QUARTERLY DNIDENDS PAID B l Full o p e n i n g o f a r e g u l a t o r y s e t t l e m e n t r e l ate d to i ts c l o s e d nuc l e ar p l ant. The b e l o w the uti l i ty av e rag e . Wi th the re Mar.31 Jun.30 Se .30 Dec.31 Year CP UCs Offi c e o f Rate p ay e r A d v o c ate s and c e n t p r i c e w i t h i n o u r 2 0 1 9 2 0 2 1 T a r g e t .325 .3375 .325 .3375 an intervenor group are demanding that P r i c e R a n g e t o t a l r e t u r n p o t e n t i a l i s j u s t .355 .355 14 t h e s e t t l e m e n t b e r e o p e n e d d u e t o e x p a r t e a v e r a g e f o r t h e g r o u p . d e s p i t e s t r o n g 3 - t o .4175 .4175 1627 communications between the company and 5 y e a r d i v i d e n d g r o w t h p o t e n t i a l . Paul E. Debbas CFA Oc tober 28 2 0 1 6 .48 .48 .48 former CPUC commissioners SCE has al (A) Diluted EPS. Excl. nor rec. gains (losses : 13 11¢ 14 57¢ 15 11¢. 14 EPS donl add deferred charges. In 15: $23.06/sh. (D) In mill. 02. $1.48: 03 12¢ 04 $2. 12. 09 (64 . due to rounding Next earnings report due ear (E) Rate base: net MY cost. Rate allowed on 1 0 e t 1 1 $ 3 ( 3 . ) 13 ($1.12). 15 I$1.18 ¢ Nov. (9 3 Div s p a i d l a t e J a n . A p r . J u l y co m . . e q . i n 1 5 : 10.45 . e a rn e d o n a v g . c o m . g a i n s l o ss) r a m I sc o r . o p s. : 1 2 $ 5 . 1 1 . O c t . I t a d re i n ve st m e n t p l a n a va i l . (C) I n cl . e q . 1 5 : 1 1 .9 %. Re g u l a to ry Cl n m a te z Ave ra g e . c 2 0 1 5 Va l u e L i n e In c. Al 1 3 re se rve d . Fa ctu a l m a te ri a l i s o b ta i n e d (m m so u rce s b e l o ve d 1 0 b e re l i a b l e a n d m s p ro vi d e d wi h o u l wa rra rl i e s a l m l m a . THE PUBLISHER IS NOT RESP NSIBLE FOR ANV ERRORS OR OMISSIONS HEREIN. Tlurubicauon is surctly lot subscriber s own. nonwmmerclad mternd use. o pan M I may be reproduced resold stored a llansnlled n any printed electronic or other form or us lot generating a marketing are piled or declronuc puhkaUon service or product Companys Financial Strength Stocks Price Stability Price Growth Persistence Earnings Predictability A 95 50 65 To s u b s c ri b e c a l l 1 8 0 0 V A L UE L INE 1 I ! R EC ENT PRICE EL PASOELECTRIC NYSEEE Hi g h : L o w: TIMEUNESS 2 RJlsed 4'Ill5 SAFETY 2 Rais€d 5l11I07 T E CHNI CA L 2 Raised 10I21l16 s£ r A J o ( 1 . 0 o marne) I Price Gain High 55 (+25% Low 40 10% Insider Dec isions 22.4 17.8 01 402015 87 53 39215 Annl Total Recur 9% 1% 102115 95 68 39921 202016 90 75 38927 35.7 267 35.3 29.2 391 31.8 42.2 33.4 41.3 33.8 15.40 1891 321 3.43 2.99 1.09 1.27 .5 7 - - Percent shares traded 14.95 327 .69 1 .7 1.75 1. 8.05 9.20 1 1 .2 3 10.6 .69 - 21 14 7 n - - - - I I I I I N - - - Q - - I 47.56 41.40 17.75 19.43 23.15 18.85 20.61 22.97 2 1 .2 6 . 22.11 22.74 21.01 20.05 3.44 3.86 4.16 4.07 5.15 6.05 5.66 5.65 5.87 5.75 6.00 .7 6 1.27 1 .6 3 1.73 1.50 2.07 2.48 2.26 2.20 2.27 2.03 2.25 .66 .9 7 1.05 1.11 1.17 1.23 5. 7 5.90 .7 0 7.18 8.50 7.15 19.04 1 9 .0 3 20.57 23.44 24.39 26.10 4814 2.73 4.63 1 2 .6 0 14.76 46.00 lm: 5.3 15.47 44.88 8 lzszl 42.57 leneinnnl 40.27 1 8 .3 26.7 1 1 .9 10.8 10]7 12.6 145 15.9 1.04 1 .42 .7 2 .7 2 .6 8 .7 9 .9 2 .8 9 .. .. .. 2.1% 3.0% 3.0% Pension A5$el512/15 $260.0 mill. oblige. $325.7 mill. pfd Stock None 8 1 6 .5 877.4 1038.9 828.0 877.3 918.0 B52.9 890.4 61.4 74.8 77.6 66.9 90.3 1 0 3 .5 90.8 88.6 29.8% 31.6% 32.8% 33.1% 34.2% 3 4 .1 % 33.0% 8.0% 1 5 .9 % 20.4% 2 4 .3 % 1 7 .6 % 22.4% 24.1% 51.5% 4 9 .6 % 53.8% 52.7% 51.8% 54.8% 51.4% W 51.2% 4 8 .5 % 50.4% 4 6 .2 % 47.3% 48.8% 4 8 .2 % 4 5 .2 % 48.6% 1195.8 1321.6 1503.9 1527.7 1660.1 1576.7 1824.5 1943.5 1332.2 1450.6 1595.6 1756.0 1865.8 1947.1 2102.3 2257.5 Common Stock 40520871 she. as 7/31/16 6.6% 7.1% 6 .7 % 6.0% 7.0% 8.3% 6.5% 6.1% 1 0 .6 % 1 1 .2 % 1 1 .2 % 9.3% 11.1% 1 3 .6 % 1 1 .0 % 9.4% 1 1 .2 % 1 1 .2 % 9.3% 11.1% M A RK E T CA P : $ 1 . 8 b i l l i o n (M i d Ca p ) 1 0 .6 % 1 0 .6 % 1 3 .6 % 1 0 .0 % 1 1 .0 % 6.3% 9.4% 4.9% 26% 43% 47% E L E CT RI C O P E RA T I NG S T A T I S T I CS re l Cov.% 2014 2 0 1 5 1.6 +23 21908 21505 21687 NA NA NA 1852 2055 1750 1879 1766 1794 2018 NA +1.3 NA +1.3 NA +1.4 WWWW BUSINESS:ELPasoElectricCompany(EPE)provideselectric 251 218 T h e T e x a s r e g u l a t o r s a p p r o v e d E l Es ru1315 P a s o E l e c t r i c C o m p a n y s s e t t l e m e n t . sys. 101921 The agreem ent c alls for a bas e rate in past 1.0% 5.0% 4.0% 7.5% 1.5% 4.0% . 185.5 163.8 157.8 170 251.8 219.5 217.9 230 283.6 60 so 40 30 25 20 196.6 1 289] 176.9 179.3 845 290 305 195 900 Inna 16.4 .86 3.0% 10 75 " - % T OT . RET URN 9 /1 6 runs V L l Hw. sro c x l uck 1 yr. 30.7 17.7 3 yv. 53.4 23.7 5 yv. 694 108.1 2017 22.15 Revenues perch 6.25 "Cash Flora perch 2.35 Eamlngs perch A 1.29 Dlvd Decld perch B 515 apI pending per sh 27.15 BaokValue perch c 23.75 7.25 275 1.65 8.50 30.50 1w_:llgg]_1lgg] 40.44 18.3 Bold Hg as an Avg Ann'lPlE Ratio .92 value U* Relative PIE Ratio 3.1% es t! "" Avg Annl oivunelu 917.5 849.9 91.4 81.9 31.0% 29.9% 30.8% 27.s% 53.5% 52.7% 46.5% 47.3% 2118.4 2150.8 2488.4 2695.5 5.7% 5.3% 9.3% 8.1% 9.3% 8.1% 4.8% 3.4% 49% 57% 900 Revenues ($milI) 95.0 Net Profit Small Income Tax Rate 36.0% AFUDC%t0 Net Pr0f1t 1 6 .0 % 54.0% LongTerm Debt Ratio 46.0% CommonE u Ratio 2385 Total Capital ($mIII) 2885 NetPIant Sum 5.5% Return on To¢aICap'l 9.0% Return on Shr.Equity 9.0% Return on ComE u E 4.0% Retained to Com Eq 54% AIIDiv'dsto Net Prof 17.0 1.05 3.5% 845 W M 8 975 115 90.0 M 2875 3250 55% 9.0% 9.0% able. Mnerating sources: nuclear 47% gas 34%. coal 6%. pur revenues) and southern New Mexico (19% of revenues) inducing A. Yamarone. President & CEO: Mary Kipp. Incorporated; Texas. EI Paso Texas and Las Cruces New Mexico. Wholesale is 13% of Address: Stanton Tower 100 North Stanton EI Paso Texas 79901. revenues. Elernricrevenue breakdown by customer class notavail Tel.: 9155435711. Intemetz www.epelectric.com. crease of $37 million (plus $3.7 million as sociated with the sale of EPEs stake in a coalfired plant) and an $8.5 million rcduc4.0% lion in annual depreciation both retroactive to January 12th. The retroactive por Cal QUARTERLY REVENUES (S mill.) Full .30 Dec.31 Year son of the decision will be reflected in ender Mar.31 Jun.30 S 282.7 190.3 8904 EPEs results in the second half of 2016. 2013 177.3 240.1 2014 2015 2016 2017 i a0 service to 405000 customers in an area of approximately 10.000 chased 13%. Fuel costs: 28% of revenues. 15 reported depreci square miles in the Rio Grande valley in western Texas (68% of ation rate: 2.6%. Has about 1000 employees. Chairman: Charles 2a0 Past ANNUAL RATES d change (par sh) 10 Yrs. Revenues 3.5% Cash Fl0>. 6.5% o Eamings 12.0.A Dividends 8.0% Book Value _ i i - 3.05 CAPITAL STRUCTURE as of 6/30/16 Total Deb! $13799 mill. Due in 5 Yrs $229.9 mill. LT Debt $1278.3 mill. LT Interest $75.2 mm. (LT interest earned: 2.3x) m' ZML.) I _ i i " 15 16.70 W W W °/. newSalesKWH 8% Use(mwH 1 Avg.mmRevs.8ef (0 - »¢. 13.97 3.00 .04 lirzalixnlnm - - H IIIIMIIHIIIIIIIIIIIIIIITIHIIIMIIIII 1HlI I " l l IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIHIIIIIIIIIIIIIIIIIIIIIIIIIIIIIlIIlllllIIll1llllIllllllllllMflllllllllIIIIIIII rmurxmnrina 2003 L 2004 : M i a m i 2007 2008 2009 a iinlzxnina a r zla uia a mn 2015 2 0 1 6 13.70 Tar?et Price R="g° 20 9 2020 20 1 48.8 37.2 m u m n l $ Q " K " llilll" - .lunmlslmnnnnummwlmu lm ¢ n u mumumlm mw i i _ - D J F M AM J J Am !0 Buy 000000000 0Vli0l\$ 11200510040 t0$eH 0 0 0 0 0 1 0 0 0 Institutional Decisions to Buy to Sen Ho f t o t 28.7 187 28.2 20.8 25.0 18.2 L E G E NDS 5.0 x Cash Flour" p sh Rdauvc Pncc Slrengh Og cn s: Ye s oded area ndlcaves /ecessuuw 3 2.960 VGL~'éE 4374 'gm 17.9(m:::§3a '»3Fé'RR¥E) 0.979"LG3° The utility also received a rate hike in as s evere as w e had es tim ated. O ur pre vi o u s e a r n i n g s f o r e c a s t o f $ 1 . 9 0 a s h a r e f o r this year w as too pes s im is tic given that E P E i s s ued g u i d a n c e o f $ 2 . 2 0 $ 2 . 5 0 a s hare when it announc ed s ec ondquarter r e s u l t s i n e a r l y Au g u s t . Ac c o r d i n g l y w e have boos ted our 2016 es tim ate by $0.35 a s hare to $2.25. W e have rais ed our 2017 es tim ate by $0.20 a s hare to $2.35. The s ervic e orc as ec onom y is in good s hape. EPE has been adding c us tom ers at a c lip of m ore than 1% annually whic h is above average for the indus try. Fort Blis s a U . S . Ar m y b a s e h a s e x p a n d e d i n r e c e n t year s . The E l P as o ar ea als o benefits fr om t r a d e w i t h Me x i c o . A m o n g p r o j e c t s i n d e velopm ent are a dental s c hool and a large s hopping c enter. New Mexico this year. Effective at the start of July. tariffs were raised by $1.1 million based ort a 9.48% return on equity. M o r e r a te a p p lica tio n s a r e co m in g . Cal EARNINGS PER SHARE A Full ender Mar.31 Jun.30 Sep.30 Doc.31 Year T h e a f o r e m e n t i o n e d c a s e s w e r e p u t f o r t h i n p a r t to p l a c e th e fi r s t two u n i ts o f a 2013 19 .72 1.26 .03 2.20 2014 f11 .75 1.30 .10 227 f o u r u n i t g a s f i r e d s t a t i o n i n t h e r a t e b a s e . 2015 .09 .52 1.40 .02 2.03 The last two units are now in service. In T h i s t i m e s s t o c k h a s a d i v i d e n d y i e l d 0.14 2016 .55 1.70 14 2.25 the first quarter of 2017 E PE w i l l f i l e t h a t i s b e l l o w a v e r a g e b y u t i l i t y s t a n 2017 .05 65 1.50 .15 235 petitions in Texas and New Mexico. New d a r d s . T h i s r e f l e c t s t h e c o m p a n y s g o o d QUARTERLYDNIDENDSPAIDB Full t a r i f f s a r e e x p e c t e d t o t a k e e f f e c t i n T e x a s d i v i d e n d g r o wth p r o s p e c ts o v e r th e 3 to 5 Cal ender M31.31 Jun.30 5 .30 Dec.31 Year i n t h e t h i r d q u a r t e r o f 2 0 1 7 a n d i n N e w y e a r h o r i z o n . A l th o u g h we h a v e r a i s e d o u r .22 .25 .25 .25 Me x i c o i n t h e f i r s t q u a r t e r o f 2 0 1 8 . s i g h ts fo r th e 2 0 1 9 2 0 2 1 p e r i o d th e r e c e n t 2012 .97 2013 25 265 .265 .265 1.05 R e g u l a t o r y l a g a f f e c t e d e a r n i n g s i n q u o t a t i o n i s s t i l l w i t h i n o u r T a r g e t P r i c e .28 1.11 2015 and early 2016. There will still be R a n g e a n d t o t a l r e t u r n p o t e n t i a l i s n t 2014 .265 .28 .28 .295 1.17 some regulatory lag in the second half of m u c h b e t t e r t h a n t h e i n d u s t r y n o r m . 2015 .28 .295 295 2016 .295 .81 31 2016 and in 2017 but it probably wont be P a u l E . D 1 b b a s . C F A October 28 2016 . A) Diluted earnings. End. nonrecurring gains report due early Nov. (B) Initial dividend millions.(E)Rate allowed on common equ8in I losses): 01 (4¢). 03 81¢ 04 4¢; 05 (2¢) declared 4/11 payment dates in late March TX in 12: none Specifled in NM in 15: 9. %. 06 13¢ 10 24¢. 14 earnings dont add to June Sept. and Dec. (C) Ind. deferred earned on avg.com. eq.. 15: 8.2%. Regulatory fullyear total due to rounding. Next earnings charges. In 15: $115.1 mill $2.85lsh. (D) In Climate: Tx verge; NM Below Average. e 2016 Value Lune he. Al l g o re se rve d . Fa ctu a l m a te ri a l i s obtained l oom sources bel i eved to be rei abk and i s provi ded wi dow warranti es 01 m kind. THE PUBLISHER IS NOT RESP NSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. Ih3..1\ubHcation is strictly lot subsclihefs own. noncomnemal 1lemal use. o pan d l may be reproduced resol mstotedol uansnl l ednanypnrl l ed ei ecuonncosothel l orm ore for genevallngolmarlelmgarrypmledctdedronuc pubicauonsen\ceofpfoduc1. Companys Financial Strength Stocks Price Stability Price Growth Persistence Eamings Predictability B++ 90 70 80 T o subsc ribe c all 1800VALUELINE I I Price Gain High 105 (*30°/o L 0w 70 10% Ins ider Dec is ions AnnITotal Return 11% 2% u 401:15 1az01s 201015 loBby 230 270 264 loseoi 240 210 219 no o o h 151676 156504 153958 _ 86.6 59.9 74.5 57.6 84.3 687 _ 74.5 61.6 72.6 60.2 92.0 60.4 90.3 61.3 Tar?et Price R="3° 20 g 2020 20 1 82.1 65.4 I K - - -r 2 - - ! ! - i N _ _ J u n -nullr . : a1m-l u l n munnmmnlnnmnuulimmnuu--nzznzn --- 1!-mlu1:m - - » - - - na - -- - - - -- - -- - 200 160 100 a0 A m 4 N 0 J F MA MJ J loBby 0 0 0 0 0 0 0 0 0 om-is 010161410 1 310 0 !0SeH 0 0 1 5 0 0 4 0 0 Institutional Decisions _ 127.5 61.9 duded b rle te Rate Rdauve ceSlrenglll ons:ves . amau\¢calesn.cess4on BHA .as (1.0oManubicauon is suiclly lot subscriber s own noncommercial irlemal use. 0 part dimayherepfnducednesoldsluvedorhansmouedIn any pllnledelearcn\c010lhellufm0lus 101 genetalmg or maMeung any pnilcdof clearoruc pubkalmn save or product. =A) l share from a favorable resolution of url year. certain income tax positions. This is the L o w p o w e r p r i c e s c o n t i n u e t o a f f e c t . . . in which . second straight year Energy has E n t e r s y ' s n o n r e g u l a t e d o p e r a t i o n s . benefited from positive tax items. as is evi Th i s c a n b e s e e n i n t h e c o m p a r l y s r e d u c e d Cal EARNINGS PERSHARE A Full ender Mar.31 Jun.30 Se .30 Dec.31 Year 2013 90 92 2.31 go 4.96 Dian Point nuclear plant next (year which o 2.2% 6.25 C191 Septemb er 16. 2016 Companys Financial Strength Stocks Price Stability Price Growth Persistence Earnings Predictability B+* 95 15 70 To s u b s c r i b e c a l l 1 8 0 0 V A L UE UNE 1 1 l l l l l i l I! I I I RECENT PRICE GREAT PLAINS EN'GY NYSE-GXP TllEUNESS 3 Luwueuaxzn6 SAFEW 3 L0\aul112]2illl0 TECHNICAL 1 Rasedsmns BETA .75 (1.00Mriei) High: 32.8 32.8 i Low: 21.1 27.1 LEGENDS 0.58 xOnidendssr91 vivldedb rzicre Rate Mauve eSuenglll P rl o e 35 Gal n AnnIT aal Rot um 9% 2% 831 E;i1au£nznl 19.9 16.6 24.9 20.4 - - * - - g - o - - j - - j - - 4 '-. Percent shares haded 24 - l l I nn n I I n 16 8 - l u n g I § i i . »- i " nnznzns i - - - Q " . l 1 - n 2007 2008 2009 33.13 34.85 33.30 37.89 14.00 14.51 4.63 4.70 4.40 4.69 4.75 4.54 3.86 4.24 3.09 2.05 1 .5 9 2.04 2.27 2.46 2.1a 1.62 1.86 1 .6 6 1 .6 6 1.66 1.66 1.66 1.66 1.66 1.66 . .I .1 16.37 16.70 18.18 74.74 1 .0 .75 5.5% H 1 . .99 5.6% s. Y. 1 4 .8 8 74.37 12.6 .67 5.4% m l m I lnlllllllllllllllllunuznnmnlmumlnnunnlurnlnmlmnlnllllllunnmnn1 HIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIHIIIIIIIllllllllllllllllllllIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII1 31.04 1 2 .70 6.0% - et 48 40 32 24 20 16 12 a s % Tot RETURN s/1s r 3 ml l f ml l - xma a mz a 11.1 .61 7.3% i ' _ i n 26.91 15.9 .81 6.6% - m-mnEuml wnw£a- al " 2361 1 .4 .81 6.5% Tar?et Price R="3° 20 9 2020 20 1 32.7 25.9 - > 18.02 1ixnlisnlizmlezxa V A LUE LI N E _-----------" aa1=1aun 2015 17.03 1 5 .0 5 15% 16.66 16.21 1 7 .4 0 327 4.12 3.51 0.45 4.01 4.01 3.98 4.20 1 .1 6 1 .0 3 1.53 1 .2 5 1.35 1.62 1.57 1.37 1.35 1 .6 6 .83 .8 3 .84 .86 .8 0 .94 1.00 1 .0 6 : :Y. . . . s 20.62 21.74 v 1 . .87 5.5% 'a.5 1.23 7.0% 1. . 1.07 5.0% M 1 .1 .77 4.5% 4. I . 21.75 22.50 153.87 15.5 14.2 .go .80 4.1% 3.8% 16.5 .87 3.6% 2309.9 2446.3 199.9 250.2 2568.2 242.8 2675.3 3267.1 1670.1 1965.0 127.6 159.2 119.5 135.6 2255.5 2318.0 211.7 174.4 2 7 .0 % 31.7% Leases, Uncapltalked Annual rmtals $12.3 mm. Pension ASSetS12/15 $723.9 mill. 30.6% 67.5% 40.7% 49.7% 57.9% 49.6% 53.2% 46.2% 50.2% 49.2% 47.8% 51.6% 44.9% 54.4% 50.0% 49.4% 49.0% 50.4% 1988.4 2709.a 0044.5 5867.6 5741.2 6135.8 7029.1 7113.1 7440.6 8279.6 8662.4 4.7% 42% 6.7% 5.8% 6.7% 5.8% 2.7% 1 6% l interesleamed 2 x) obl i ge $11548 m an. Pfd SoodK $39.0 m i l l . P fd Dl vd $ 1 .6 m i l l . 390.000 shs.3.80%to 4.50%(all$100 par& :.<:ze'.~:'r***;~) 2 5 .0 % 32.1% 514s.2 NMF 218 1450 6.96 go NA +.9 34.0% a.4% 10.5% 46.8% 57.0% 25.7% 0.9% 3066.2 3444.5 6081.3 6651.1 6892.3 7053.5 7.9% 7.5% 3.5% 3.9% 5.3% 5.0% 4.6% 7.2% 5.8% 9.2% 9.9% 4.8% 9.4% 10.1% 4.6% 4.0% 7.3% 5.8% NM; 2.0% cum.) callable from $101 to s103.70. Common s1°¢k 1547e21sa she. lse/17/31/16 MARKET CAP: $4.3 bllllon (Mid Cap) £LEcTRlc OPeRAnNG STATISTICS 2014 2018. +.4 1424 1455 6.80 6.79 & % 8 '3 8 < 8 ¥ (¢) NA NA PdLoid.SIlm1uliII) MIIHLMFOCUI NA NA %0ws= n) +.7 +.9 3 4 .5 % 32.3% 66% BUSINESS: Great Plains Energy lncoiporated is a holding compa ny for Kansas City Power a Light and two other subsidiaries which supply deciridty to 851.000 wslnmers in western Missouri (71% of revenues) and eastern Kansas (29%1. Acquired Aquila woe. sou Strategic Energy (energyrnarketing subsidiary) in 08. Electric reve hue breakdown: residential 40%; commercial 39%: industrial 9%: 60% - 2017 m s swa m 13.0 38.4 68.4 aL IHITIL Ilex 10.9 29.8 84.5 _"El 16.05 Revenues per sh 4.85 "Cash FIo4v" per sh 1.75 Eamings perch A 1.12 Dlvd Dedd perch 81 op pen In per Book Value per sh c 19.75 6.00 zoo 1.30 kg Ann'IP Ratio Relative PIE Ratio AvgAnn'IDIvd yum 2800 Revenues($miII) 2 7 0 Ne t P ro f l t S m a l l 36.7°/» 10.4% 12.0% 4.5% 7402.1 7746.4 5.0% 5.0% 5.9% 7.1% 5.9% 72% 1 yr. 3 yr. 5 yr. _ 1 .4 Bcldllg s .91 V " 'J " ° 3.8% "' '°' CAPITAL STRUCTURE esdBl30l18 Total Debt$4334.2 mill.Due ln 5Yrs $1724.6 mill. LT om $a495.0 mill. LT Interest 5174.4 mill. LT : .4 30.7% 2016 16.62 I . PlERATI01¢11'"vL'é° 3.9% RELAT NE - - _ _ Unaiii - - - - ..- - - - - - l- - - - - - - - - - - " HI +25% LB 25 ( 10% Insider Decisions N D J F u A MJ J We 0 0 0 0 0 0 0 0 0 aw 0 2 0 013 0 0 2 0 ws 0 0 0 0 7 0 0 0 0 Institutional Decisions mms 1oao1s su m 113 156 189 117 114 119 M kf 0 0 0 1 2 3 5 8 0 1 2 5 2 9 2 1 2 5 7 4 2 :1&0 33.4 26.9 Aresndcalss /MM .v I ai l i ng:20.8 27.90 2%21.0(g_d.m 50.3% 49.1% 73% 3 7 .0 % In co m e T a x Ra te 37.0% 2.0% AFUDc%tonetproflt 47.5% 47.0% LongTerm MM Ratio 52.0% 525% CommonE u Ratio 7110 7260 TotaICapnaI($mlll) 8910 9015 Net plant Smit! RotumonTotal Capl Rot um on Shi. Equity RetumonComE u E zs RatainodtoCom Eq 64% AIIDivdsto NetPrcl 20% 88 7575 9075 w s 7.5% 7.5% other 12%. Generating sources: was 63% nuder 13% wind. 1%: gas & dl 1%. purchased 22%. Fud costs: 24% of revenues. 15 reported degree rate (utility): 3.0%. Has 2900 employees. Chairman President & CEO: Terry Bassham. Inc.: Missouri. Aa dress: 1200 Main SL Kansas City Missouri 64105. Ta.: 816556 2200. Intemec .grea1plainsenergy.oom. is also incurring mergerrelated costs. We include these in our presentation but will exclude Westar while the deal is pending. The takeover would likely be neutral to profits in 2017 and accretive in 2018. T wo rat e c as e s are p e nd i ng i n Mi s s o u r s . G r e a t Plains Greater Missouri Op erations filed for a tariff hike of $59.3 million (8.2%). based on a return of 9.9% on a common-equity ratio of 54.8%. An order is expected in late 2016. Kansas City Power 2015 549.1 609.0 781.4 562.7 2502.2 oratory Commission. The companies believe & Light is seeking an increase of $90.1 2016 572.1 670.8 857.1 600 2700 t h e t r a n s a c t i o n d o e s n o t n e e d t h e a p p r o v a l million (l0.8%). based on a return of 9.9% 2017 525 575 875 525 2a00 i n Ml s s o u r l b u t t h e c o m m i s s i o n s s t a f f on a common-equity ratio of 49.9%. A rul EAR ¢G5 pER5 {AREA Full a n d t h e s t a t e s O f f i c e o f P u b l i c C o u n s e l in is expected at the end of May. Cal . endar u .31 J .30 s .30 D ec .31 Year a r c s u g g c s t i n that approval is nc c ded-- W e expec t a dividend inc reas e at the ar. 1 7 un .1 1 and that the c ereal is not in the public inter b o ard m e e ting in the f o urth q uarte r. 2013 .41 .93 1 .6 2 1.57 est..W hether this would delay or .derail the W e estimate a raise of $0.05 a share 2014 .15 .34 .95 .12 . . 2015 .12 .oz .15 1.37 acquisition is unknown. The companies ex (4.8%) in the annual payout. The compa .28 2015 .17 .88 .10 1.35 pact it to close in the spring of 2017. nys goal is growth of 5%7% annually. .20 2017 .15 .40 1.05 .15 1.75 The pending takeover has made earn T hi s s t o c k has no t r i s e n m uc h t hi s cu QuAR[ERLy } y D5nD$pA Dn1 pull inks more unpredictable. Great Plains year. This is in contrast to the stellar per ender Mar.31 Jun.30 is booking marktomarket accounting formance of most utilities possibly due to .30 Dec.31 Year 2125 .2125 .2125 2175 gains or charges associated with intcrest investor concern about whether Great 2012 .86 ..2175 .2175 .2175 ..23 rate swaps the company entered into in Plains is paying too much for Westar. The 2013 .88 .245 connection with financing for the Westar yield is above t e utility mean but 3 to 5 2014 .23 .23 .23 .9 4 2015 .245 .245 .245 .2625 1.00 deal. These led to a $77 million Eretax year total return potential is just modest. 2016 .2625 .2625 .2625 charge in the second quarter. Great loins Pau] E. Debbas CFA September 16 2016 Fm Um cw.as 267 261 254 ANNUAL RATES Pas! Past ESfd'13'15 °fd1ange(pe¢5h) 10 Yrs. 5 yrs. 101w21 Revenues 7.0% 1.5% 3.5% Cash . Flow 1.5% 2.5% 7.0% gg,T;e"g8s 4.0% 4.0% 83% 5.5% 3.0% Book value 4.5% 2.0% 2.5% Cal QUARTERLyREv£nu§$(;m .l Fun ender Mar.31 Jun.30 5 .30 Dec.31 Year 2013 7650 24463 542.2 600.3 538.8 2014 585.1 648.4 782.5 552.2 2568.2 There is c ontrovers y regarding the proposed acquisition of es ter ner g t b y G r e a t P l a i n s E n e r g y. Gr eat aim s has agreed to pay $8.6 billion (85% in c as h 15% in s toc k) for W es tar w hic h owns elec tric utilities in Kans as and would be a good fit. The c om pany would financ e i t w i t h a n e ve n s p l i t o f c ut and equity. The c om bination requires the approval of eac h c om panys s hareholders the Kans as c om m is s ion. and the Federal Energy Regu A)Dilu1ed eamings.Exd.nonrec.gains donladd duels rounding.Nexteamingsreport (D)ln mm.(E)Ra1e base:Fairvalue.Rate al B+ Companys Flnanoial Strength losses): 01 (s2.01) 02 15¢2: 03 29¢. 04 due early Nov. (B) Divds hislolically paid in lowed on com. 8 . in MO in 15: 9.5% in KS in Stocks Price Stability 95 1 I .09 128. gain (losses) on disc. ops.: 03 midMar. June Sept. & Dec. I Divd reinvest ham on avg. 15: 93%. com. eq. 15: 5.8%. Price Growth Persistence 20 1 ) 041 ¢ 05 (3¢) 08 35¢. 14 earnings plan avail. (C) Ind. inland. In 15: $7.44lsh. Regulatory Climate: MO.BelcwAvg. KS. Avg. Eamlngs Predictability 75 c 2015 V Lhe. he. Al 9§ resumed. FadW M is Qhlziled lam sauces believed lo be feiahk W is pmvlded we wanamies al 1H14. THE PUBLISHER IS not RESp NSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. is www for slhwhds WI". numamucW Moral . pM To s ubs 0nbe c al l 1-800V A LUE LINE dlm W 1ep1udm M . reW wW m uam M ednqpned. eM m uum erl0m . u lmgenu amNai1gwwMue admcpuhkaliunsewtempvndun. . i I I I R EC ENT IDACORP INCI NYSEIDA High: 32.1 40.2 Low: 26.2 290 LEGENDS 0.83 l Dtyidgfglg; Sh nmEunEss 3 u»¢le¢aI5:16 SArETY 2 Rased 8I2l13 TECHNICAL 3 Lunaeawws BETA .75 (1.00Matk8¢) 01 Price Gain Hlgh 80 (+5% Low 55 25% Insider Dec isions PRICE Annl Total Recur 5% 4% 35.1 21.9 divided b n zl cl c Rate Relalwe e Strength et .. : v 3139¢3. indatales iecessibn u. 328 20.9 37.8 300 42] 33.9 457 38.2 -- § § § ! j l §- l - - - - -§¢aM WW.. _ §nm i 2 mlu M 2 § __ _ : 20.4 RELAT NE : 14.0 PIE RATIO 75.19 gum 18.9(II3II22 547 43.1 70.5 55.4 701 50.2 83.4 65.0 Q l' - M - ¢ Tar et Price Ran e 2089 2020 2031 - _ ! H ! llnmllu H - - - - ml - " l Q - § § - m1m1 mnlu\mlllllllllll111lllllllllllll!llnl1nl 8:35911 IQN15 97 101 39221 i wi s 142 83 38326 zazwns 131 93 38314 Percent shares traded 15 10 5 27.10 150.10 24.43 20.41 20.00 20.15 21.23 19.51 20.47 21.92 20.97 20.55 21.55 24.81 25.51 2523 24.80 5.63 5.63 4.08 3.50 4.12 3.07 4.56 411 4.27 5.07 5.35 5.84 5.93 6.29 6.58 6.70 6.05 3.50 3.35 1.63 .96 1.90 1.75 2.35 1.86 2.18 2.64 2.95 3.36 3.37 3.54 3.85 3.87 3.90 186 1.86 1.06 1.10 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.37 1.57 1.76 1.92 200 . z5 .7 . :*: 5.45 5. lll§ I § I $ l u l I H - JIllllllllllllllllllllllllllI IlllllllIIIIIIM l ll' lllH II llllllll1Il' lI IIIIIITTIIHWIIIIIIIIIIIIII I I l II I I I I l znnzilmmmna 2003 2004 2005 2006 2007 2008 aimazxiinaninanzlannain 2015 Ami 1 2017 .1 23.15 21.82 . 23.01 22.54 4. .1 25.77 23.88 37. 1 4 . 3 11. .71 4.9% 11.4 .58 4.9% 1 1.03 6.0% .5 1.51 6.7% 15.5 .82 4.1% 1 .7 ELECTRIC OPERATING STATISTICS 2013 Cab ender 2013 2014 2015 2016 2017 Cal ender 2013 2014 2015 2016 2017 264.9 292.7 279.4 281.0 290 303.9 317.8 336.3 315.4 320 .55 .go .47 .51 .61 1.31 1.12 .97 57 2012 2013 2014 2015 2016 .33 .38 .43 .41 .51 .33 .38 .43 .47 .51 .33 .38 .43 .47 .51 .38 .43 .47 .51 .55 11.8 11.5 12.4 13.4 14.7 16.2 50.75 Bold ng s an Avg Annl PIE Ratio Val U"' Relative PIE Ratio e s t "" Avg Annl niwu weld .7 5 .1 7 .8 2 3.2% 3.1% 3.1% 906.3 879.4 960.4 1049.0 1036.0 1026.8 1080.7 1246.2 1270.3 100.1 82.3 98.4 124.4 142.5 166.9 1683 182.4 194.7 1 3 .3 % 1 4 .3 % 1 6 .3 % 1 5 .2 % 1 3 .4 % 28.3% 8.0% 1 9 .0 % 4.0% 9.7% 1 0 .2 % 1 0 .5 % 20.3% 1 2 .3 % 1 3 .8 % 16.3% 4 5 .2 % 48.9% 4 7 .6 % 50.2% 49.3% 45.6% 4 5 .5 % 4 6 .6 % 4 5 .3 % 45.6% 5 4 .8 % 51.1% 52.4% 4 9 .8 % 50.7% 54.4% 54.5% 5 3 .4 % 5 4 .7 % 54.4% 2052.8 2364.2 2485.9 2807.1 3020.4 3045.2 3465.9 3567.6 3783.3 41a5 T otal Capl tal ($m l II) 2419.1 2616.6 2758.2 2917.0 3161.4 3406.6 3665.0 3833.5 3992.4 4 2 8 0 Ne t P l a n t S m i l l 4675 6.2% 4.7% 5.3% 5.7% 6.0% 6.8% 6.5% 6.4% 6.6% 6.2% 6.0% 6 . 0 % Re t u rn o n T o t a l Ca p l 6.0% 8.9% 6.8% 7.6% 89% 9.3% 1 0 .1 % 9.6% 9.9% 9.9% 9.5% 9.0% 9 .0 % Re tu rn o n S h r. E q u i ty 8.9% 6.8% 7.6% 8.9% 9.3% 1 0 .1 % 9.6% 9.9% 9.9% 9.5% 9.0% 9 . 0 % Ro t u m o n Co m E u 4.3% 2.4% 3.4% 4.8% 5.5% 5.7% 5.6% 5.4% 4.8% 51% 64% 55% 46% 41% 41% 43% 46% 50% Full Year . 285.4 1270.3 285 1250 290 1275 Cal QUARTERLY DNIDENDS PAID a 'T .30 Dec.31 ender Mar.31 Jun.30 40.88 .7 9 296.2 1246.2 .60 38.85 3.3% . 369.2 1.90 36.84 .7 2 381.1 1.67 10. 35.07 3.1% 329 287 307 Past Est a 1315 5yrs. !01e21 3.5% 1.0% 6.0% 80% 3.5% 30% 810% 7.5% 6.0% 40% . 13. 33.19 2.70 .7 5 NA 3402 NA +1.8 1.48 1 . 31.01 4 .41 4.50 3.4% NA 3184 NA +1.4 1.7 29.17 8.00 .6 8 NA 3407 NA +1.5 EARNINGS PER SHARE A 27.76 26.50 4 .5 % NA 5.70 Mar.31 Jun.30 5. .30 Dec.31 .70 .g3 1.46 .55 26.7g v. lmilzzzllrza . .. 4. iml 25.20 Revenues per sh 7.10 Cash Flow per sh 4.05 Eamings perch A 124 Divd Decld per sh B I T ap pen in per s Book Value per sh c .84 NA 5.68 368.6 375 . a 4.0% NA 5.21 QUARTERLY REVENUES($ mill.) Mar.31 Jun.30 S . .30 De€.31 .1 12 .g 7 2015 +1.2 +3.8 15.1 . %T OT . RE T URN 9 /1 6 YNIS VLARITH. sm c x wa x 1 yr 24.4 17.1 77.1 23.7 3 y" 5 yr. 141.5 108.1 24 20 16 3.5% MARKET CAP: $3.8 bllllon (Mid Cap) FwdCha Cay.%) 2 .8 2 Common Stock 50402.872 she. as of 7122/16 ANNUAL RATES Past 01change (persh) 10 Yrs. 2.0% Revenues "Cash Flow/ 5.5% Eamings 9.5% Dividends 2.5% Book Value 5.0% - 3.4% Pfd Stock None mum;hmmm we) - .89 Pension ASSetS12/15$559.6 mill. Oblig. $835.5 mill. RelaisalesKWH) - 32 - 4.1% CAPITAL STRUCTURE as of 6/30/16 Total Debt $1770.1 mill. Due in 5 Yrs $356.0 mill. LT Debl $1745.2 mill. LT Interest $81 .2 mill. (LT interest earned: 3.5x) * Avg. Mud ..we A s. u u u sm M 3 3 WHO) capasvw Peak( Peak LoadSlmnef ) Am udLoadFam ( I - 120 100 a0 64 48 ========-'==="nn l-n---!-- DJFMAMJJA loBe 0 0 0 0 0 0 0 0 0 Odors 0010900000 K05011 1 1 3 2 1 2 2 1 3 Institutional Decisions . VALUE LINE 1.038I8D 2.9% M M We estim ate that I DA CORPs earning s will rise only slightly this year. As we had expected profits declined in the June quarter. Thc yeartoycar comparison was difficult because the company recorded a $7.4 million tax benefit in the same period of 2015. Our earning s estimate of $3.90 a share is within IDA8ORPs targeted range of $3.80$3.95. Note that the company was scheduled to report thirdquartcr results shortly after this I€PO[I went [O PI0ss. We fo r e c a s t s tr o n g e r b ot t om l i n e g r o w t h i n 2 0 1 7 . Id a h o P o w e r ID A O R P s u ti l i ty s u b s i d i a r y i s b e n e fi ti n g t hat ended on June 30t h t h e c u s t o me r count advanced 1.8%. This is roughly twice 3.90 the industry average. Kilowatthour sales 4.05 arent rising as fast as customer additions d u e to th e e ffe c ts o f e n e r g y e ffic ie n c y b u t a r e l i k e l y to e x c e e d 1 %. S u c h a fi g u r e 137 might not seem impressive but many util . ities wish they were experiencing volume 1.75 growth at this level. Putting it all togeth 1.92 Er we look for earnings to climb 4% next year to $4.05 a share. 1.51 M M M Incom e T ax Rate AFUDC % to Ne t Pro fi t L o n g T e rm De b t Ra ti o 47.0% Co m m o n E u p 53.0% Ra t i o Retained to Com Eq All Divds to Net Prof 4750 9.0% E 9.0% 3.5% 60% ligation 13% other 9%. Generating sources: hydro 36%; coal Co m p a n y a re g u l a t e d e l e ct ri c u t i l i t y t h a t se rve s 5 3 0 0 0 0 cu st o m e rs 28% gas 13% purchased 23%. Fuelcosts: 34% of revenues. 15 t h ro u g h o u t a 2 4 . 0 0 0 sq u a re m i l e a re a i n so u l h e m I d a h o a n d e a st reporteddepreciationrate: 27%.Has 2000 employees.Chairman: am Oregon(population: 1 million). Most of the company/srevalua Robert A. Tinstrnan. President a CEO: Darren T. Anderson. In are derived from the Idaho portion of its service area. Revenue corporated: Idaho. Address: 1221 w. Idaho St.. Boise. Idaho breakdown: residential 40%; commercial 24% industrial 14% ir 83702.Telephone:2083882200.Internet:www.idacorpinc.com. Fun from the service areas healthy economy. This is reflected in the utilitys strong cus 3.64 tamer growth For t h e l 2m on t h p eri od Full Year 2 0 5 Ne t P ro st S m i l l B US I NE S S : I DA CO RP I n c . i s a h o l d i n g c o m p a n y f a I d a h o P o we r Year . 1 2 7 5 Re ve n u e s ($ m i l l ) Id a h o P o w e r b e n e f it s f r o m a r e g u la t o r y m e c h a n is m t o s t a b iliz e it s e a r n ing s . T hro ug h 2 0 1 9 t h e u t ilit y m a y u s e up t o $ 2 5 m illio n a y e a r o f a c c um ula t e d deferred inco me tax credits to bo o st pro fits if it s e a rne d re t urn o n e q uit y f a lls b e lo w 9.5%. The co mpany expects to bo o k $1 mil lio n o f t h is in c o m e in 2 0 1 G . T h is m ig h t c hange. but is no t lik ely to ex c eed $ 5 m il lio n this year. A s w e h a d e x p e c te d th e b o a r d o f d i r e c to r s r a i s e d th e d i v i d e n d . T h e i n c re a s e wa s $ 0 .0 4 a s h a re (7 .8 %) q u a rte rly p a ya b l e i n N o ve m b e r . ID A C O R P p l a n s to r a i s e th e d i s b u r s e m e n t a t l e a s t 5 % a n n u a l l y u n ti l th e p a yo u t r a ti o r e a c h e s th e u p p e r e n d o f th e c o rn p a n ys ta rg e te d ra n g e o f 5 0 %6 0 %. W e p r o j e c t th i s w i l l h a p p e n by the end of the decade. T h e d i v i d e n d y i e l d o f th i s e q u i ty i s b e l o w th e m e a n fo r th e e l e c tr i c u ti l i ty i n d u s tr y. T h i s va l u a ti o n i s a r e fl e c ti o n o f I T C O R P s s u p e rio r d ivid e n d g r o w th p ro s p e c ts . Ho we ve r with th e re c e n t q u o ta tio n n e a r th e u p p e r e n d o f o u r 2 0 1 9 2 0 2 1 Ta r g e t P r i c e R a n g e to ta l r e tu r n p o te n ti a l is n e g lig ib le . Pa u l E. De b b a s CF A Oc to b e r 2 8 2 0 1 6 (A) Diluted Eds. Excl. nonrecurring gains Cally paid in late Feb.. May. Aug. and Nov. l orilnaI cost. Rate allowed on com. eq. in 11: (loss): 00 22¢; 03 26¢ 05 (24¢); 06 17¢. Dwd rernvestmentplan avail. t Shareholderln 10 (imputed) earned on avg. com eq. 15: 14 earnings dont add due to rounding. Next vestment plan avail. C) Incl. intern isles. In 15: 9.7%. Regulatory Climate: Above Average. earnings report due midFeb. (B) Divds histori $26.16lsh. (D) In mlions. (E) Ragte base:Net : 2 0 1 6 V a l u e Um e h e . A l l g r" re se we d . Fa ct u a l m a t e f i d i s obtained tram sources bei eveui l o be rel abh and i s puwi ded wi thout warranti es d a kind. YHE PUBLISHER IS NOT RESP NSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. T hgrublicaion is strictly for subscriber . s cm nancumercial ntemal I/$€.NXI0 pan a I may be repm4uce4 resort storedcrl ransnl l edi Ii azy pi l ed. dedrunccorol herl orm oru lurgenerarngormarkclng any pnniedordedranrc pubicabon. service or product. Companys Financial Strength Stocks Price Stability Price Growth Persistence Earnings Predlctabllity A 95 90 90 T o subsc ribe c all 1800VALUELINE R EC ENT NDCLMGEE Hig h : L o w: TIMEUNESS 1 Ra!sEd 8I19l16 sArETte 1 New!/3/03 TECHNICAL 2 Rai$edl!29l16 24.7 1 9 .5 L EG END S . . 1.30 x DvvudcndsSr sh divudcd b vlrlcm Rate Relalwe uceSuengh 84012 ' 9 2114 : es BETA .70 l1.00.m an\e q I 2 5 .8 2 0 .3 PRICE 1 1 T 55.63 PIE I 9 :2 &5 RATIO W I---1- 24.8 19.6 - 24.3 18.6 29.1 21.4 - 31.9 24.7 - --IN: - _.la $ - il 37.4 28.7 48.0 35.7 40.5 33.4 - 48.0 36.5 Y LD 57.5 44.8 - - 4-m - - I 14.59 13.89 16.73 16.13 16.33 17.35 15.40 15.36 15.76 15.61 17.04 17.88 16.27 16.55 2.59 2.52 2.22 1.96 1.92 2.00 2.34 2.46 2.68 2.66 2.76 2.94 2.98 3.28 3.49 3.33 3.55 1.11 1.08 113 1.14 1.18 1.05 1.37 1.51 1.59 1.47 1.67 1.16 1.B6 2.16 2.32 2.06 2.30 .a s .89 .89 .90 .91 .92 .93 .94 .96 .97 .99 1.01 1.04 1.07 1.11 1.16 1.20 3.43 2.67 2.08 12.99 8.04 14.8 .76 5.5% W.: 7.5 17.5 1.00 4.5% 16.0 .87 5.0% 1: .0 .95 4.3% 2.4 Cov. (Is Damlngs deeds 80 kV3Iu€ Cab en d e r 2013 2014 2015 2016 2017 Can ender 2013 2014 2015 2016 2017 Cab en d e r 2012 2013 2014 2015 2016 676 Past 10 Yrs. 2 .0 % 7 . ° 2.5% 5.5% 167.2 210.3 170.1 147.5 160 128.3 128.8 122.1 121.6 130 165 EARNINGSPER Mar.31 Jun.30 s .65 .00 .53 .49 .52 .40 .41 .39 .47 .50 160 .30Dec.31 ..67 70 ..44 41 .82 .84 .88 .32 .50 .55 0UARTERLYDNIDENDS PAID B I Mar.31 Jun.30 s . .30 Dec.31 .2551 .2634 .2717 .2025 .2950 .2551 .2634 .2717 .2a25 .2950 15.1 15.0 15.8 19.92 34.67 34.67 17.2 17.0 17.2 20.3 Q 2017 - 32 24 20 16 - .95 .99 1.09 .96 .91 1.03 4.0% 3.6% 3.2% 2.9% 2.8% 2.8% 507.5 537.6 596.0 533.8 532.6 546.4 541.3 5909 619.9 564.0 580 42.4 48.8 52.8 51.0 57.7 60.9 64.4 74.9 80.3 71.3 80.0 37.9% 36.3% 36.9% 37.1% 37.7% 37.5% 37.5% 36.7% 22% 2.0% 38.7% 35.2% 36.3% 39.0% 38.9% 39.6% 38.2% 39.3% 37.5% 36.0% 61.3% 64.8% 63.7% 61.0% 61.1% 60.4% 61.8% 60.7% 62.5% 64.0% 612.6 660.1 750.6 822.7 859.4 911.9 937.9 1016.9 1054.7 1081.5 _ - 728.4 844.0 901.2 939.8 968.0 995.6 1073.5 11602 1208.1 1243.4 1200 7.8% 8.1% 71% 6.9% 7.6% 7.8% 7.9% 8.3% 8.5% 7.5% 0.0% 11.3% 11.4% 11.0% 10.2% 11.0% 11.1% 11.1% 12.1% 12.2% 10.3% 11.3% 11.4% 11.0% 10.2% 11.0% 11.1% 11.1% 12.1% 12.2% 10.3% 3.7% 4.3% 4.4% 3.4% 4.4% 4.7% 4.9% 6.1% 6.4% 4.5% 67% 62% 60% 66% 60% 57% 56% 50% 48% 56% Relative PIE Ratio Avg AnnI Divd Yield E 20.85 5.15 3.25 1.40 8 Revenues ($mlIl) Net Prost Smill Income Tax Rate AFUDC % to Net Profit LongTerm Debt Ratio Common E up Ratio 1200 Total Capital ($miII) 1325 Net Plant (small) 8.0% Recur on Total Ca I Recur on Shr. Equity Recur on Com E u D 5.5% Retained to Com Eq 51% All Divds to Net Pro WW 8% 1115 a % T O T R ET U R N a n s HI S vi An il s m cx U n ix 1 yr 46.3 10.9 3 yr. 71.4 29.8 5 yr. 125g 84.5 17.55 Revenues per sh 4.00 "Cash Flow" per sh 145 Eamings per sh A 1.25 Divd Decld par sh e I apl pending per s Book Value per sh E VII Lim as! m 1.01 4.4% MM 750 115 35.0% 20% 38.0% 62.0% 1450 1650 9.0% M 7.0% 44% BUSINESS: MGE Energy Inc. is a holding company for Madison 9%. Generating sources 15: goal. 48% purchased power 40% Gas Ana Electric which provides electric service to approximately natural gas and other. 12%. Fuel casts: 24% 01 revenues. 15 146000 customers in a 316squaremile area of Dane County and reported depreciation rate: 3.6% Has 708 employees. Chairman gas service to 152.000 customers in 1.682 square miles in seven President & CEO: Gary J. Wolter. Incorporated: Wisconsin. Ad counties in Wisconsin Electric revenue breakdown 15: residential dress: 133 South Blair St. Madison Wt 53788. Telephone: 608 33% commercial 53% industrial 5% public authorities and other 2527000. Internet: .mgeenergy.oom. Sh a r e s o f M G E En e r g y h a v e tr a d e d in a fairly narrow range in recent m o n t h s , f o l l o wi n g a n i c e a d v a n c e i n th e fi r s t h a l f o f 3 . . . y e a r . T h e c o m p a n y r e p o r t e. d m i x. e d .results for the second . quarter. A s light inc reas e in gas revenues was m o r e t h a n o f f s e t b y a m o d e s t d e c l i n e in electric revenue. and the top line figure came in just shy of the prioryear result. 590.9 Warmer weather resulted i n greater 619.9 5640 residential and commercial use. providing . some support. Moreover operating costs 580 were somewhat lower. and share earnings 615 were up over 20% to $0.47. Looking for Full ward we expect favorable comparisons in Year the coming quarters. We have pared our 2 .16 . 2.32 r e v e n u e e s t i m a t e f o r f u l l y e a r 2 0 1 6 m o d elly but have increased our bottomline 2.06 2.30 call b a dime. to $2.30. Full Year 2.45 T h e h a r d o f d ir e c to r s h a s in c r e a s e d th e d i v i d e n d b y a b o u t 4 % . S ta r l i n g wi th Full the September payout the quarterly divi Year .2634.2634 1.04 end is now $03075 per share. Dividend growth will likely continue going forward. .2717 .2717 1.07 MGE is seeking higher rates. The com .2825.2825 1.11 party has filed with the Public Service .2950 .2950 1.16 . . . . . .3075 48 lzmlzw Bold fig s i n Avg Annl PIE Ratio .85 . o 4.0% 5.0% SHARE A 14. 19.02 34.67 4.2% 616 1 40.1 155.3 135.1 145.7 1408 1310 . 150.9 . 160 15.I 17.81 .80 0.3 2484 8.17 NA 783 NA NA REVENUE$($ min) QUARTERLY R Mar.31 Jun.30 s . .30 Dec.31 15. 16.71 34.67 4.1% P a s t Es ra . 1 2 ' 1 4 5 Yrs. to 1 9 2 1 .5% 3.5% . 2.011 6.0% M67 .86 2015 702 34.67 4.3% Common Stock 34668370 she. as of 1/31/16 MARKET CAP: $1.9 billion (Mid Cap) A NNU A L R A T ES change(persh) R e ve n u e s 34.67 1447 31.46 2. 1.19 Leases Uncapitalized Annual rentals $1.6 mill. Pension ASSetS12/15 $290.7 mill. Obligation $332.6 mill. pfd Stock None i :Ts . 3.9% CAPITAL STRUCTURE as of 613011 s Total Debt $389.1 mill. Due in 5 Yrs $117.3 mill. LT Debt $354.8 mill. LT Interest $20.0 mill (LT interest earned: 6.7x) ELECTRIC OPERATING STATISTICS 2013 2014 %ChangeneoSamKwng 0.8 0.5 Avg.hduslU$€(\IWH 2502 2463 must Revs. 7.94 7.78 Avg.. a: (¢l 1p¢a NA NA peak Su rf ¢ rM ) 783 783 Arial Loan Facbfl I NA NA 'l»Change Qaslnmas avg) NA NA . - 12 13.17 .1 120 100 a0 so n..Ir»z iil= 13.03 :ll - - - 13.00 rued Target Price Range 2019 2020 20 1 -n n 1n n n nmm mll nnmx n m n nIIIIIHHIIlllllllllllllllllllIIIIIIIIIIIIIIIIIIIIIIIII1lll1IlllllllllllIIIIIIIlllImlHlllIIIIIlmHIIIIIIHIIIIIIIIIIII Illllllll1lllIIIIIIIIII!lllllllllllllll1lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllHlllllllllllllllI - 238 11.7 .76 6.7% 0 2.24 VGIIéE D N' D zrrsInn- r § 8% area invkales fuussion Annl mal Price Gain Recur High 55 %Nil 2% 2% Low 45 2 % an- uamm1uun1uumuuu1u mIns ider Dec is ions N D J F M A u J J lnBuy 1 0 0 0 0 0 0 0 0 opuam 0 0 0 0 0 0 0 0 0 (05011 0 0 0 0 0 0 0 0 0 Ins t it ut ional Dec is ions 402915 mms 2azo1s Percent 6 B 61 77 19 shares 4 49 51 51 traded 2 Hut 000 12113 12557 12637 1.26 RELAT NE 180) PIE R ATIO Com m is s ion of W is c ons in reques ting a 1.7% inc reas e to elec tric rates and a 3.7% increase to gas rates for 2017. This would cover costs associated with the statcs cloc tric transmission and MGEs natural gas infrastructure improvements. Longterm prospects l ook fai rl y at tractive here. The companys utility opcr ations should continue m benefit from fa vorable demographics in its service terri tories. Limited exposure to economically sensitive industrial customers means greater stability. Efforts to control operat ing costs ought to support earnings. This stock is times . Also. MGE Energy earns good marks ft Safety Financial Strength. Price Stability. and Earnings Predictability. Volatility is below average here. too. We expect solid bottomline growth for the company out to 20192021. However. the shares presently trade at a pricetoearnings multiple that is well above their historical average and long term total return potential appears fair y limited at this time. The dividend yield is below average for a utility too. This equity may interest momentumseeking accounts. but investors with a long time horizon can probably find better choices elsewhere. M i nlac] / Napoli. CFA SepteInbric§.3lyDpaid In 15: $6.36lsh. (D) In mm. adj. for stock split. 00. . 02 (60¢). 03. 5¢ 11 (24¢) 13. lnm r . m unem e t . . m e c . l (E) Rate allowed on com. eq. in 13: 9.5% 1908116. 55¢(9ain on disc. ops.: 13 44¢. 15 Divd reinvestment plan avail. t Shareholder in 11.5%; earned on av . com. eq. 15: 12.9%. P dontadd uetorounding.Nexteamings vestment plan avaiI.(C)IncI.deferred charges. Regulatory Climate:/gverage. e 2016 Value Ute Inc. AI 19" resent. Faclud matenid is obtaineti from sources believed to be reliable and is provided without wwanies 01 kind. THE PUBLISHER IS NOTRESP NSIBLF. FOR ANV ERRORS OR OMISSIONS HEREIN. Th;1x1bicah0n is stnclty lot subsc1il1e¢s own nortH:ummcrdall irlernal useaMo pan nil may berepruduccdresdmslocedorlransmiledin any p1imeddectronkacdre¢101m.o1us 101 gecreIaiigolmarketirg any prinlMadeclronic publicaliansewiceorprodua Companys Financial Strength Stocks Price Stability Price Growth Persistence Eamings Predictability A 100 75 65 To s u b s c ri b e c a l l 1 8 0 0 V A L UE L INE I. I TIMEUNESS Hi g h : L o w: 2 R8i$&d 8l12!I6 S A FE T Y 2 Iuwaed I2l 18I15 T E CHNI CA L 2 L 1 v» u e a ww1 e s£ rA . 9 0 l 1 . 0 o I mama) 1 0 Annl TOQBI Recur Price Gain High i s + 40% 12% Low 35 + 10% 6% ins ider Dec is ions 15.3 12.2 PRICE 18.1 9.8 20.3 13.2 L E G E NDS . - 0 : 8 2 x D n v l d c n d ss sh dmdcd w e Rate .. Relative Ce Strength 2 4 m 1 so 7113 ons: Vas we i ui i cal es recessi on 401:15 102015 202816 6 78 78 1 2 9 7 12 75 8 167 1 2 71 150 142 155 Hl d 000 125371 I B 18.9 9.9 23.1 16.9 28.6 20.3 30.1 25.1 40.0 27.1 39.3 32.8 3.8% DN'D YLD Target Price R="g° 20 9 2020 20 1 36.5 24.2 _ - - - - l r - - l u ! n a H "» v n ----* traded 18 12 6 P e rce n t sh a re s _ " ! 1 l l t l l ] l l * 80 60 50 - : : : : : : : : : : : 40 30 25 H " § 20 15 - 1 - l -l - " . , v *». - I - I - M I N I " - 21 .17 20.40 19.26 21 .62 27.37 32.83 21.96 20.68 2.07 1.81 1.87 1.82 1.87 1.94 2.23 2.39 .g5 .6 5 .7 2 .8 7 .8 9 .9 2 1.23 .6 7 .6 7 .6 7 .6 7 .6 7 .6 7 .6 7 .4 . 175 1.4 6.83 6.67 6.27 a l a xa l r a i a 10.6 .69 6.6% 157.00 17.4 14.1 .89 .77 5.9% 6.6% 687 1. 1. 7.14 7.59 14.79 19.04 19.96 1858 14.45 2.40 2.69 3.01 3.31 3.69 3.46 1.32 1.25 1 .3 3 1.50 1 .7 3 1.79 1.94 .6 8 .7 0 .71 .7 3 .7 6 .8 0 .8 5 4 .I 1 4. 7 6.48 5.85 10.14 10.52 . 8.79 w 21.77 1 4. 11.73 1 3 .0 6 :I Il l . I luml1a1unm1lzzxmnznlnmllnnzmlEzr3ml2:af1m 11. .67 6.5% 14.1 .74 5.3% 10 7.5 % T01 RETURN 8/16 1 yr. 3 yr lmmnlulnnnl1111I1llmmlmlmnmm1mnlnnmllII1nllm11IIlnnm1I1HHHI TIIIIIIIIIIIIIIIIIIIIIIIIHIIIHII fl l IIIIIIIIHII IIIIIIIIIIIIIIIIIIII- 5 yr. imuu »rmlf1uu»J£1uu=]rmzlaoa-irzmra a i n l w n l a n l a u u a u n z m n 2016 2017 _ 1.1 VALUE LINE l- -- Q - - -- - £ . L L- I _ H- X- - § § - -- -- - - n u1man 1m n11n - -- N D J F M A M J J ll low 0 0 0 0 0 0 0 0 0 On i o n s 0 0 0 0 0 0 0 0 0 toSs 0 0 0 0 0 0 1 0 0 Institutional Decisions 13581 31.90 m 17.5('..2';::::%13)21% 0.93 R EC ENT AGE ENERGY CORP. NYSE0GE 14.00 12.30 11.00 1 0 .5 0 m s STUCK 154 2 .9 43.7 VLIIIITIL IDEX 109 29.8 84.5 - 1 1 . 0 0 Re v e n u e s p e rc h 1 3 .0 0 3.35 3.55 Cash Flwl" perch 1.69 198 1.75 1.90 Eamlngspersh A .95 1.05 1.16 1.20 Divd DecId perch Bl .74 2.m 3.45 4.70 apISpending perch 16.27 16.66 17.25 17.90 Book Value perch c 199.40 199.70 199.70 200.00 18.3 17.7 so1dng. s o n Avg AnnI PIE Ratio .96 .89 V""°\ U" Relative PIE Ratio °"'"1"" 2.6% 3.5% Avg Annl Divd Yield 3.40 3.23 l 197.60 198.50 17.7 4.75 2.25 1.65 2.50 19.15 online: 14.9 13] 12.4 10.8 13.3 14.4 15.2 .7 9 .74 .7 3 .7 5 .7 2 .8 5 .9 0 .9 7 .9 9 49% 4.0% 3.8% 4 .5 % 5.0% 3.7% 3.1% 29% 2 .5 % CAPITAL STRUCTURE as Of 6/30/16 Total Debt $2914.1 mill. Due in 5 Yrs $1009.9 mill. LT Debt $2629.7 mill. LT Interest $138.0 mm. (LT interest earned: 3.0x) 4005.6 3797.6 4070.7 2869.7 3716.9 3915.9 3671.2 2867.7 2453.1 2196.9 226.1 244.2 231.4 258.3 295.3 342.9 355.0 387.6 395.8 337.6 3 4 .8 % 3 2 .3 % 30.4% 31.7% 34.9% 30.7% 2 6 .0 % 2 4 .9 % 30.4% 29.2% 3.8% 1.6% 1 .7 % 9.1% 5.7% 9.0% 2 .7 % 2.6% 1 .7 % 3.7% Leases Uncapitalized Annual rentals $7.4 mill. 4 5 .6 % 4 4 .4 % 53.3% 50.6% 50.8% 51.6% 50.7% 4 3 .1 % 4 5 .9 % 44.3% L o n g T e rm De b t Ra ti o 54.4% 55.6% 4 6 .7 % 49.4% 49.2% 4 8 .4 % 4 9 .3 % 56.9% 54.1% 55.7% Co m m o n E u 2950.1 3025.5 4058.6 4129.7 4652.5 5300.4 5615.8 5337.2 5999.7 5971.6 6090 6675 T otal Capi taI ($m i l I) 8100 3867.5 4246.3 5249.8 5911.6 6464.4 1414.0 8344.8 6672.8 6979.9 7322.4 7690 5 2 9 5 Ne t p l a n t $ m i l I 8800 9.1% 9.5% 7.0% 7.9% 7.8% 7.8% 7.7% 8.6% 7.8% 6.9% 1 4 .1 % 14.5% 1 2 .2 % 1 2 .7 % 1 2 .9 % 1 3 .4 % 1 2 .8 % 1 2 .8 % 1 2 .2 % 1 0 .2 % 1 4 .1 % 14.5% 1 2 .2 % 1 2 .7 % 12.9% 1 3 .4 % 1 2 .8 % 1 2 .8 % 1 2 .2 % 1 0 .2 % 7.0% 10.0% 10.0% 6.6% 7.1% 5.4% 6.0% 6.7% 7.7% 7.2% 7.3% 6.5% 4.0% 53% 51% 55% 53% 48% 43% 44% 43% 47% 61% Penslon ASSetS12/15 $581 .7 mill. Oblig $680.0 mill. P f d $ t o ck No n e Co m m o n S t o ck 1 9 9 7 0 2 0 2 5 S h S . MARKET CAP: $8.4 bllllon (Large Cap) ELECTRIC OPERATING STATISTICS 2013 2014 'Lu Relalsale KWH +.7 .7 »1§'T8?°»1 u»1~»f' 1 779 770 5.44 5.13 ALI (¢) NA NA p"kLM1.5uTI11¢¢q*) 6341 6339 Amstnauramr( NA NA %cll;ng¢04lnm¢¢; ¥4fl41 + 11 +1.0 FlxedCha Cov."/» 367 ANNUAL RATES Past 0lchange(pesh) Rgggggq8w. . 533388 BookValue 356 2015 2.9 754 5.05 NA 6537 NA +1.2 314 P as t E $\ d1315 10 Yrs. Yrs. . l01921 NMF 3.0% 3.0% 9.5% . 8.5% 29.0% 6.0% 2200 Revenues($mill) 385 Net Profit Smill 29.0% Income Tax Rate 9.0% Aruocesto Netproflt Ra t i o 7.0% Return on TotaICapl 10.5% Retumon Shr.Equity 10.5% Retumon ComE u E 3.5% Retained to ComEq 67% All Dlvdsto NetProt 2600 450 M 3.0% 74% BUSINESS: OGE Energy Corp. is a holding company for Oklaho coal 34% gas. 30%. wind. 5%: purchased 31%. Fud Costs: 39% ma Gas and Electric Company (OG&E) which supplies eleclridty to 01 revenues. 15 reported depreciation rate (utility): 2.9%. Has 830000 customers in Oklahoma (84% of electric revenues) and 2.500 employees. Chairman. President and Chief Executive Officer: western Arkansas (8%) wholesale is (8%). Owns 26.3% of Enable Sean Trauschke. incorporated: Oklahoma. Address; 321 north Har Midslream Partners. revenue breakdown: residential 41%: vey. P.O. Box 321. Oklahoma city Oklahoma 731010321. Tele . Eleclnc . . commercial 24%; induslnaI16% other19%. Generating sources: phone: 4055533000. Internet: www.oge.com. OGE En e r g y s u t i l i t y s u b s i d i a i s million based on a return of 10.25% on a s t i l l w a i t i n g f o r a r a t e o r d e r i n gk l a commonequity ratio of 53% with new lar homo. Oklahoma Gas and. Electric filed iffs expected in July. It also requested the . . . f o r a t a r i l hokze5 f $ 9 2 . 5 m i l l i o n b a s e d o n a return o . 0 on a c om m one ult r a t i e o f 5 3 . 3 l % . O G8 ¢ E w a n t s t o p l a c c a yd d i to n a l c a p i ta l sp e n d i n g i n th e r a te b a se r ec over higher oper ating and maintenanc e Mar.31 Jun.30 8. .30 Dec.31 Year expenses. and plac e a plant bac k i n the 8.5% 3.5% 13. implementation of a f ormula rate plan (i.e. a mechanism that allows recovery of certain costs without the need for a gener al rate case). W e e s tim ate hig he r p ro f its i n 2 0 1 6 and 2017. Rate relief should be the key r a t e b a s e t h a t h a d b e e n u s e d t o s e r v e a f a c t o r e a c h year. Our 2016 estimate is 2013 901.4 734.2 723.2 508.9 2867.7 560.4 611.8 754.7 526.2 2458.1 n o w e x p i r e d w h o l e s a l e c o n t r a c t . H o w e v e r within managements targeted range of 2014 4801 549.9 719.8 447.1 2196.9 t h e s t a f f o f t h e O k l a h o m a c o m m i s s i o n a n d $1.72$1.83 a share. 2015 433.1 551.4 700 415.5 2100 the s tates attorney general are rec om W e expec t a dividend inc reas e at the 2016 575 750 425 2200 m e n d i n g m u c h l o s s avorablc outc om es board meeting in late September. This 2017 450 Cal. EARNINGSPERSHAREA Fu" b a s e d 0 l l 3 1 l a l l o w e d of jus t has been the pattern in recent years. OGE ender Mar.31 Jun.30 Sep.30 Dec.31 Year T h e u t i l i t y i s n o w c o l l e c t i n g ( b u t n o t b o o k has stated its expectation of 10% annual 2013 .12 .46 108 194 i n p e n d i n g r e c e i p t o f t h e f i n a l o r d e r ) a n dividend growth through 2019. Our esti .29 .25 ..94 98 i nter i m r ate i nc r ease of $69. 5 mi lli on that mate of a $0.03a-share hike in the quar 2014 .50 .29 .22 .44 .88 .15 1.0g took ef f ec t at the star t of J uly . The f i nal terly payout would provide a growth rate 2015 Cab end e r 2016 2015 2017 Cal endar 2012 2013 2014 2016 QUARTERLY REVENUES($ mill.) .13 .20 1. 75 dec i si on wi ll be r etr oac ti ve to J uly so the of l 0.9%. 1. 90 c ompany wi ll r ec or d addi ti onal i nc ome i n OGE stock is timely, and has some ap the quar ter in whic h the or der is r ec eived. p e al f o r i nc o m e o r i e nt e d i nve s t o r s . QUARTERLY DNIDENOS PAID 8 I Full The dividend yield is about a half percent Maf.31 Jun.30 S . .30 096.31 Year Ou r e s t i ma t e s a s s u me a f o u r t h q u a r t e r r uli ng. OC&E also plans r ate c ases i n No age point above the utility average and to .19625 .19625 .197 .197 .79 .209 .209 .209 .209 . 84 member of 2017 and November of 2018 i n Lal return potential to 20192021 is re .225 .225 .225 .25 order to recover major capital projects. spectable and much better than that of .93 .25 .25 most utility equities. .25 .275 1.03 Th e Ut i li t E ' f i le d a r a t e c a s e i n A r k a n .275 .35 .50 .275 95 1.00 Fu l l .275 .32 .20 sos. OG& is s eek ing an inc reas e of $16. 5 (A) Diluted EPS. Excl. nonrecurring k>sses: 02. inks report clue early Nov. (B) Divds historical 20¢ 03 7¢ 04 3¢. 15 33¢ gains on discon ly paid in late Jan. Apr. July & Oct. l Divd tinged operations: 02 6¢; 05 25¢ 06. 20¢. reinvestment plan available. (C) Incl. deferred la EPS dont add due to rounding. Next eam charges. in 15: $2.01/sh. (D) In millions adj. Paul E. Debbas. CFA for split. (E) Rate base: Net original cost. Rate allowed on com. eq. in OK in 12: 10.2% in AR in 11: 9.95%. earned on avg. com. et. 15: 10.2%. Regulatory Climate: Average. Q 2016 Val ue Li l l e Inc. A1 l il g11s resefvei i . Facl ual m ateri al i s ohtai wd l i m sauces bel i eved ro be retabl e and i s. provi ded vrl huul warranti es al al l y. kind. THE PUBLISHER IS NOT RES NSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. Th;.11ubicatl0n is suIclly lot suhscribef s own nonconmerclal rlemal use. o pan d I may be reproduced resokl stored at uansnileti ii my panted. electron»caratherlo1maus lctgeneratmgormarketnganypmledorelecumn:puhicalronservlceorpruduct Septemb er 16 2016 Companls Financial Strength Stock's rocs stability Price Growth Persistence Eamings Predictability A 90 65 85 To s u b s c ri b e c a l l 1 8 0 0 V A L UE L INE I R EC ENT OTTER TAIL CORP. NDQ0T[R TECHNICAL 2 Raise(IN19l16 BHA .as (1.00MalleI) Annl Total Recur 10% N11 402015 102916 202016 KG 51 12314 68 35 13048 68 44 13887 25.3 20.7 32.7 26.5 I 31.9 25.2 33.4 243 9;-- 1 Q 35.4 25.8 Tar?et Price Range 20 g 2020 20 1 - - - VALUE LINE Q Q 80 - § giimlun--- -~ . l . Percept shares traded " . limy 9 1 IIIIIIIH IIIIIIIIl l l l N W IH H ln l 6 H 3 nn1nmmllllllnllllllllllllllll11lllllllllllllllllllmnllllllll1lmmlmnlllln11ln1mlnm1ll1llm 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 2 0 0 8 i m l r z m r z i x n z z i i a 2 0 1 3 12014 E m m a 2017 1 yr. 3 yr. 5 yr ms smcx 38.4 41.a 108.4 .88 .84 .87 101 .91 .82 .93 1.01 1.81 2.08 3.51 2.98 1.38 1.19 .99 3.8% 3.7% 4.0% 4.2% 4.1% 3.9% 3.5% 3.6% 5.4% 5.7% 5.6% 5.2% 4.1% 4.1% CAPITAL STRUCTURE as of 6130116 Total Debt $595.6 mm. Due In s Yrs $167.0 mill. LT Debt $493.8 mm. LT Interest $30.0 mm. (LT interest earned: 4.3x) 1105.0 1238.9 1311.2 1039.5 1077.9 859.2 893.3 799.3 779.8 010 50.8 54.0 35.1 26.0 16.4 39.0 50.2 56.9 58.6 60.0 34.8% 34.1% 30.0% 14.5% 5.2% 22.5% 27.0% 1.9% 4.2% 6.1% 4.0% 3.8% 1.7% Leases Uncapltalized Annual rentals av mill. Pension Assets12/15 $233.6 mill. Oblig. $302.7 mill Pfd Stock None 33.5% 38.9% 32.9% 38.8% 40.2% 44.8% 44.0% 64.5% 59.4% 65.8% 59.8% 58.4% 54.0% 763.0 882.1 1032.5 11244 1083.3 718.6 854.0 1037.5 1098.6 7.7% 7.2% 4.3% 10.0% 10.0% 10.2% 10.2% 3.3% 68% 29.28 30.45 3559 37.43 41.50 37.06 29.03 31.08 29.86 23.76 24.63 21.48 3.21 3.40 3.44 3.30 2.88 3.35 3.39 3.55 2.81 2.76 2.60 286 2.71 3.02 3.09 1.60 1.68 1.79 1.51 1.50 1.18 1.69 1.78 1.09 .71 .38 .45 1.05 1.37 1.55 1.02 1.04 1.06 1.08 1.10 1.15 1.17 1.19 1.19 1.19 1.19 1.19 1.19 1.21 1. 217 1. 7 1.7 1.12 1. . 5 .4 .04 . 0 4.53 4.40 15.80 16.67 15.83 1443 14.75 1539 .17 36.27 3722 21.1 188 13.5 164 25.59 16.0 12.98 14.81 25.72 28.98 17.8 17.3 Fm Ore Qlv % 15.4 Cab 2013 2014 2015 2016 2017 Cal endar 2013 2014 2015 2016 2017 Cab ender 20 1 2 2013 2014 2015 2016 336 2015 2.2 NA NA NA NA NA NA 350 17.3 19.0 30.1 18.78 35.: 1 31 . 17.57 Emlzinl 55.1 47.5 21.7 W 20.75 E islam 835 Revenues ($mill) 65.0 Net Profit Smlll Income Tax Rate AFUDC % lo Net Profit 46.0% LongTerm Debt Ratio 54.0% Common E u Ratio 26.00 4.20 2.10 1.33 :Sm 1100 90.0 M 1.7% 3.6% 42.1% 46.5% 42.4% 54.4% 57.9% 53.5% 57.6% 1058.9 959.2 924.4 1071.3 1051.0 1210 Total Capital ($mlll) 1108.7 1077.5 1049.5 1167.0 1268.5 1387.8 1475 Net Plant Sm all 3.4% 2.7% 3.2% 5.7% 67% 6.7% 6.7% 6.0% 6.0% Return on Total Capl 5.1% 3.8% 2.1% 2.8% 7.3% 9.4% 9.9% 9.7% 9.0% 9.0% Return on Shr. Equity E 10.0% 5.1% 3.8% 2.0% 2.7% 7.3% 9.3% 9.9% 9.7% 9.0% 9.0% Return on Com E up 10.0% 3.5% NM F NM F NM F NM F NM F 1.2% 2.2% 2.0% 2.0% Retalned to Com Eq 66% 108% NM F NM F NM F 113% 87% 78% 79% 79% All Div'd s (0 Ne t P M BUSINESS: Otter Tail Corporation is the parent of Ono Tail Power Company which supplies electricity Io over 130000 customers in Minnesota (50% of retail elec. revs.) North Dakota (41%) and South Dakota (9%). Electric rev. breakdown 15: residential 32%. commercial & farms 35% industrial 30%; other 3%. Fud costs: 15.5% of revenues. Also has operations in manufacturing and 47.0% 53.0% 1700 1900 6.5% plastics. 2015 dept. rate; 2.9%. Has 2.005 employees. Off. and Dir. own 1.6% of common stock; Cascade Investment. LLC 9.1%; The Vanguard Group 7.1% BlackRock Inc. 5.4% (3116 Proxy). CEO: Charles MacFarlane. Inc.: MN. Address: 215 SouM Cascade st.. P.O. Box 496. Fergus Falls. Minnesota 565380496. Telephone: 8664108780. Internet: www.ottenail.com. crease rates by approximately $19.3 mil lion (9.8%). The MPUC granted a 9.56% increase on an interim basis starting in midApril A . final determination is expected next year. with the prioryear figures. The Electric Prospects for the long haul appear fasegment benefited from strong sales to Cora )Le. The utility should continue to QUARTERLY REVENUES (S mill.) Full pipeline customers and greater revenue report healthy performance going forward. Mar.31 Jun.30 $ep.30 Dec.31 Year from interim rates (discussed below). while Meanwhile custom metal fabricator BTD 210.0 212.4 229.8 233.1 893.3 margins improved nicely at the Manufac should further benefit from productivity 215.0 1944 196.5 193.4 799.3 . turing line. improvements. Market conditions remain 202.8 188.2 200.0 188.8 7798 Otter Tail Power Company is execut soft here though we expect BTD to be in a 206.2 2035 205 195.3 810 ing its capital investment Jan under good position when its business climate 212 208 210 205 835 a constructive regulatory framework. improves. Elsewhere we remain optimistic EARNINGS PERSHARE A Fun Its $858 million utility capital spending about prospects for the lowcost businesses Mar.31 Jun.30 s .30 Dec.31 Year 41 21 41 1 37 plan for 2016 through 2020 includes two that comprise Otter Tails plastics seg ..59 ..27 ..43 .35 . large regional transmission projects and mont. But margins may well remain com .28 1.55 37 36 42 41 1 56 several generation investments. The com pressed hero in the near term ..38 .41 ..44 ..37 1.60 . party expects these will d rive annual These shares are timely. We look for .37 .40 .46 .42 1.65 g rowth of 8% in the utility rate b ase solid improvement in revenues and earri through the end of the decade (with 2014 ings for the company out to 20192021. QUARTERLY DNIDENDS PAID B I Full 3 0 as the starting point). The two 345kilovolt But this appears lo be largely reflected in . Year Mar.31 Jun.30 S Dec.31 transmission projects are expected to be the recent quotation and appreciation .298 .298 .298 .298 1.19 potential is limited at this juncture. A 298 2g8 298 2g8 119 completed in 2017 and 2019. .303 .303 .303 .303 1.21 T h e u t i l i t y i s b e n e f i t i n g f r o m i n t e r i m healthy dividend yield ought to support to r a t e s . O t t e r T a i l P o w e r f i l e d w i t h t h e tal returns here. Still this equity appears ..313 308 ..313 308 ..318 308 .308 1.23 Minnesota Public Utilities Commission most suitableas a earahead selection. (MPUC) early iii the year seeking to iri Michael Napoli cPYA . S e p t e m b e r I 6 . 2 0 ] 6 ANNUAL RATES Past of change (vet sh) 10 Yrs. Revenues 3.5% Cash Flow .5% Eamings .5% Dividends 1.0% Book Value .5% ondar 359 El! ! § x n l l 2 1 E ; *Il w= 1 l = m a Common Stock 38772031 she. as of 7/31/16 MARKET CAP: $1.4 billion (mid Cap) ELECTRIC OPERATING STATISTICS 2013 2014 as Clunge Rena Sales KWH) *5.8 +4.6 Avg. MM Use ( MWHJ w NA NA Av g. mm R ea ah! (¢) NA NA C a m ; a l P e a rl w ) NA NA Peak L< »a4 w nmm NA NA Annual Load Face (% NA NA NA NA al Change Custumefs ywx! ) 17.55 Y: 20.60 ' : ml ©VALUE LINE PUB. LLC 4.7% 27.75 11.33 l 7.5 Vl Amm: :mix 10.9 29.8 84.5 20.90 Revenues per sh 3.14 3.60 "Cash Flan" per sh 3.40 1.56 1.60 1.65 Eamings per sh A 1.23 , 1.25 1.27 Divd DecId per sh B I 4.23 4.50 apl pending per sh 15.98 16.90 Book Value per sh c 37.86 Common Shs 0utmg 18.2 Boldlig us an Avg Annl PIE Ratio Val u m Relative PIE Ratio .92 est Ares 4.3% Avg Annl Divd Yield 26.53 Et] l 10 as TOT. RETURN B116 23.45 10.87 30 25 20 15 -- l_ l _- I -4 - u-I -Q "! !- ! "- - - - - - - - sz-- £ § m n r § 1 5 n r 1 1 i r J r . m 1 r § n z 1 £ n 1 u ~ i r z m 1 a 2007 23.85 60 50 40 _ $amn ' z lllmliunnnn-Lionl \ n nlalamllnmm11n----" _ _ " mniauuzsmms_ u 3 mH ° " ' w ~ ° m"_ N D J F M A ll J J 0 lOptions 8uy 000000000 000609000 toSeII 000000000 InstitutionalDecisions lo 8 to $81 Hld D00 23.5 17.5 l--- 2 R a w s lu m s Price Gain High 45 (+ 25% Low 30 15% Ins ider Dec is ions 1 .15 D80 3.6% 35.31 I1T§TI0 21 .8(L?I322§13) IELIIIII% High: 320 31 .9 39.4 46.2 ' 25.4 Low: 24.0 25.8 29.0 15.0 15.5 LEGENDS 1:00 x DMMM5$? Sh dlvldc0 blrluc Rate 6 Rlauve :Ce Strength 1 es Q §8333¢a/ea umkales recesswn TIMEUNESS 2 Ra sed 8I19I16 SAFEW PRICE P as ! E s t d1315 5 yrs. t 01921 .7.0% 2.5% 2.5% 5.5% 15.5% 6.0% 5% 1.5% 35% 5.5% S h a r e s o f O t t e r Ta i l h a ve c o n t i n u e d t o a d va n c e i n p r i c e o ve r t h e p a s t t h r e e m o n t h s . The c ompany reported s t rong p e r f o r m a n c e f o r t h e s e c o n d q u a r t e r . R e vo n u e a n d s h a r e n e t c o m p a r e d f a vo r a b l y (A) Diluted earnings. Excl. nonrecurring gains 14 2¢ 15. 2¢. Earnings may not sum due Io went plan avail. (C) Incl. intangibles. in 15: (losses): 10 (44¢) 11 26¢ 13 2¢ gains rounding. Next earnings report due early No $55.4 mill.. $1.46lsh. (D) In mill. (E) Regulatory g1,;3,g"°m Los s disco fl. operations: . 04 8¢. 0s. member. (B)Divds historically paid in early Climate: MN ND Average. SD Above Aver . .1¢ 11($1.11) 12. (5122); 13 2¢: March. June. Sept.. and Dec. I Divd reinvest age. Q 2016 Value Lyle. Inc. Al to" reserved. Faduat m aterial is obtained from sources believed to be reiNe aid is provided without warranties 01 W, kind. THE . PUBLISHER IS NOT RESP NSIBLE FOR. ANV. ERRORS OR OMISSIONS HEREIN. Tli;1aubicationi.s suiWylov subscribers . . awn. nortH:ommerciaI . iiiernal. use. 0 pan ollmaybclep1uducedleloli1sto1ed arlraismillcdmaly pllnlcd.elcctronlcoluthe1loim.o1us lot generating oimarkelng any pnfiledoidewonIc publicatiun. servlceoiptcducl. Companys Financial Strength Stocks Price Stability Price Growth Persistence Eamings Predictability B4+ 85 20 50 To s ubs c ri be c al l 1800-V A LUE LINE R EC ENT PG&E CORP. NYSEPCG High: 40.1 48.2 Low: 31.8 36 LEGENDS 0.BI x Duidcnwissla sh TIMEUNESS 2 Raw 7129116 sAt£Tv 3 Lowemzmz TECHNICAL 3 L0waua 10l2an6 BETA .65 (1.00M81le() .l . AnnITotaI Pnco Gain Recur High 80 (+ 30% 10% Low 50 20°/o 1% Ins ider Dec ls lons 10N1€ 202016 loBby 273 303 302 !o$¢4I 207 194 200 Hid 000 399882 409084 404165 mm 2001 2002 n 45.7 26.7 divudcO bklele Rate 5 . . R g wwe Ice Suenglh : es E'$.8'.§3¢area iuukales recession __. cl - DJFuAuJJA l Bby 0 0 0 0 0 0 0 0 0 o Options 00 110 011 0 0 1 lodI 0 0 0 2 0 0 0 0 0 Institutional Declslons a rm s PRICE w r z w : 38.6 45.8 34.5 48.6 34.9 l- - .° ~w * -- -- -l - - Percent shares traded 60.93 'féEn0 17.3W::.e, m) 'gg-*R}8',§, 0.94 - 48.0 36.8 47.0 39.4 48.5 39.9 9 60.2 47.3 D N' D Y LD Tarot Price Range 20 9 2020 2021 - r ; - - 5 l - - - a : : l - a I n n i n - 24 1 1 " - - _ 1 1 1s 8 l 1n-l l nnl l nm l l l n1m l lrlnmmlllnrlnlllnll!nmmm1nnl1mmmllnll' 25.05 26.47 31.78 36.02 37.42 40.51 36.15 35.02 36.28 34.92 34.16 35.91 34.21 33.45 1.14 4.80 5.71 7.12 7.76 8.02 8.44 8.37 8.22 8.08 7.32 6.33 8.13 7.29 8.60 d9.21 3.02 d2.36 2.05 2.12 2.35 2.76 2.78 3.22 3.03 2.82 218 2.07 1.83 3.06 2.00 2.90 1.23 1.32 1.44 1.56 1.68 1.82 1.82 182 1.82 1.82 1.82 1.93 4 ."1 . 7.8 IE! 8.19 9.47 387.19 . Ya 381.67 we.: .. 20.62 41 . s 1 4 1: . . 919 1 . .73 4.a% 19.60 15.4 .82 34% CAPITAL STRUCTURE as of 6/30/16 Total Debt $18214 mill. Due in 5 Yrs $5102 mill. LT Debt $16525 mill. LT Interest $766 mill. (LT interest earned: 1.8x) Pension ASSetS12/15 $13745 mill. Oblig. $16299 mill. Pfd Stock $252 mill. Pfd Divd $14 mill. 45M958 she 4.36% to 5% cumulative and $25 par redeemable from $25.75 to $27.25. 5784825 she. 5.00% lo 6.00% cumulative nonredeemable and $25 par. Common Stock 498.506.353 she. as of 7/19/16 MAR KET C AP . .$30 b illio n (La rg e C a p ) ELEC T R I C O P ER AT I NG ST AT I ST I C S %Char¢ Retag Sales(KWH) Avghsiusl Use(mw+ Avg. kpdust M WH(¢) CapaclIy8Ipeak( PeakLoad.su1mef I dua l Lo a d ra w I ll Grange Customers trend) I* 2013 +.5 NA 9.28 NMF NMF NMF +.3 2014 . .2 NA 9.98 NMF NMF NMF +.e 24.18 :Q 348.14 [LH] 2015 .5 NA 9.73 NMF NMF NMF +.7 14. .80 35 .72 10.05 1I . U 9.62 . 1I . 4 25.97 27.88 28.55 29.35 30.35 Emu 370.60 5222419113 430.72 16.8 12.1 13.0 15.8 .89 .73 .87 1.01 32% 3.1% 4.0% 4.3% 4.1% 15.5 20.7 3309 456.67 475.91 23.7 15.0 2017 THE s ro cx 19.6 66.5 73.7 33.69 lzzmlrzxulIrm 264 Bold fig Sara a VL ARIUU max 17.7 23.7 1081 34.90 Revenues perch 9.90 "Cash Flwv perch 3.90 Eamings perch A 208 Divd Decld per sh 81 t 1 . 5 ap pen ingpers 37.30 Bock Value perch c 1I. 1 1.1 1 yr 3 yr. 5 yr l lllllllMMllllllllllllIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 2005 2006 2010 2011 1 - 12 32.74 .7 - 32 24 20 16 % TOI RETURN 9l1G 5.66 IY! - 48 63.18 v. 120 100 as 64 - ; 2 - - mmm ---- -l -- l- -- -- - - z- -l -l l l - - l - ! - - -znxazan -1881 .80 4. VALUE LINE e5.4 50.7 67.75 1.20 3. 3% 39.25 11.00 4.50 2.70 M alizxzl Avg AnnI PI E Ratio .97 1.32 1.33 .79 1.33 Value Lim Relative PIE Ratio 4.2% 4.2% 4.2% 4.0% 3.4% cs!!ms Avg Ann'IDlv'd Yie ld 15040 15598 17090 16833 16900 17800 Revenues($m iII) 1470 2005 Ne t P ro fit Sm ill 12539 13237 14628 13399 13841 14956 1005.0 1020.0 1198.0 1168.0 1113.0 1132.0 893.0 828.0 1450.0 988.0 355% 34.6% 26.2% 31.1% 33.0% 30.3% 23.9% 24.5% 19.2% 19.2% 6.7% 9.4% 9.5% 11.9% 14.4% 11.2% 17.5% 17.9% 10.0% 15.7% 51.7% 52.6% 52.2% 51.4% 49.6% 48.8% 48.7% 46.6% 48.5% 48.8% 4s.a% 46.1% 46.5% 47.4% 49.3% 50.2% 50.4% 52.5% 50.7% 50.4% 49.5% 16696 18558 20163 21793 22863 25956 27311 31050 32858 35925 21785 23656 26261 28892 31449 37523 41252 43941 46723 49450 7.6% 7.4% 7.8% 6.7% 6.2% 5.9% 4.7% 4.2% 5.8% 4.1% 5.0% 6.5% R e tum o nT o ta l C a p l 6.5% 12.5% 11.6% 12.4% 11.0% 9.6% 9.2% 6.7% 5.7% 9.1% 5.9% 8.0% 10.5% R e tum o nShr. EquR y 11.0% 121% 11.8% 12.5% 11.2% 9.7% 9.2% 6.7% 5.7% 9.1% 5.9% 8.0 % 1 0 .5 % R e tu m o n C o m E u 6.8% 6.0% 6.8% 5.5% 3.9% 3.4% 1.0% .2% 3.9% .7% Retained to Com Eq 47% 50% 47% 52% 61% 63% 85% 96% 58% 88% AllDivdsto NetProt MW 40.5% Income Tax Rate 27.0% AFUDC %to Ne t Profit 7.0% 49.0% LongTe rm De bi R a tio 5 0 .5 % C o m m o n E u r R a tio 37800 Tcta lC a pita l($m ill) 43900 52200 Net Plant Sm all 60300 E 11.0% BUSINESS! PG&E Corporation is a hading company for PadNc 9%. hydro. 5% purchased. 63%. Fuel costs: 34% al revenues. 15 Gas and Electric Company and nonutility subsidiaries. Supplies reported depreciation rate (utility): 3.8%. Has 23.000 employees. electricity and gas to most d nalhem and central Califcmia. Has Chairman President 81 Chief Exemlive Offroer: Anthony F. Earley 5.3 million electric and 4.4 million gas customers. Electric revenue Jr. Incorporated: Caliiomia. Address: 77 Beale Street. P.O. Box breakdown: residaitial 38% commercial 40% industrial 12%: ag 770000. San Francisco. California 94177. Telephone: 415973 ricultural 9% other 1%. Generating sources: nuclear 23%: gas 1000. Internet: www.pgecorp.com. We include all of these expenses and in surance recoveries in our earnings presen tation. Because we figure these costs will be much lower in 2017 we forecast a signi ficant.profit recovery next year. We do ex clude Ines that have been imposed on the company including one of $24 million ($0.05 a share) that PG&E booked in the QUARTERLY REVENUES (S mill.) Cal June quarter of 2016 for poor recordkeep endar Ma r.31 J u n . 3 0 s .30 De<;31 ing in the gas division. Our 2016 earnings 2013 3672 3776 4175 3975 estimate is within the companys guidance 2014 3891 3952 4939 4308 3899 4217 4550 4167 of $2.83$3.15 a share on a GAAP basis. 2015 3974 416g 4557 4200 The share count has risen significant 2016 ly in recent years. PC&E has been rais 2017 4200 4400 4800 4400 Cal Full The Earni ngs Predi ctabi l i ty rati o in common equity to pay its fines and EARNINGS PERSHARE A the predictability 0 support its capital spending. The company . ender Mar.31 Jun.30 Se .30 Dec.31 Year overstates .74 .36 .lg 1.83 PG&Es quarterly gmrofits. Since a gas expects $800 million in equity needs for 2013 .55 1.71 2014 .49 .57 .27 3.06 pipeline exploded in an Br uno Cali f or ni a the year. Beginning in 2017 l;G&Es an .83 .27 2. 00 i n September of 2010 the c ompany has nual equity requirements will probably be 2015 .27 .63 rm oi a (by % 223 304 189 PG&Es utility subsidiary has reached a s e t t l e me n t o f i t s g e n e r a l r a t e c a s e . Pac i f i c Caz and Elec tr i c had f i led f or r ate i n "cases 02f01$83l9 dm$l3l68 ir11 2017 36691 mi i o n i n . an mi i o n i n 1 . The c ompany r eac hed a contested settle went c alli ng f or tar i f f hi kes of $88 mi lli on i n 2 0 1 7 $ 4 4 4 mi lli o n i n 2 0 1 8 a n d $ 3 6 1 Full 2019. The settlement also Year mi lli on i n r ec ommends another S3G1 million r aise in 15598 2020 but thi s i s one of the c ontested i s 17090 16833 sues. A final decision is expected in Fcbru 16900 ar e wi th the r uli ng bei ng r etr oac ti ve to 17800 the start of 2017. ANNUAL RATES Past P as t E s t d 1315 old\ange(persh) 10 v/3. 5 yrs. to1921 Bgavggug8. 3.833 83.88;1' 78 . . .. . .5% 12 7333 Book Value 7.0% 3.5% 4.5% 2016 2017 .22 .85 .46 .75 1.60 1.55 .52 .75 QUARTERLY DNIDENDS PAID B l t ender Mar.31 Jun.30 S .30 Dec.31 Cab .455 .455 .455 .455 .455 .455 .455 2015 .455 .455 .455 .455 .455 .455 .455 .455 2016 .455 .455 .49 .49 2012 2013 2014 .455 290 been i nc ur r i ng c osts assoc i ated wi th the 3. 90 ac c i dent i nc ludi ng unr ec over ed expenses lower. Thi s ti m e l y s to c k has a d i v i d e nd he l d and capital costs associated with upgrad t h a t i s. s l i g h t l y b e l o w a v e r a g e 8 4 5 a in its gas system. T h i s i s w h y e a r n i n g s u t i l i t y . T o t a l r e t u r n o t c n t i a l t o 2 0 1 9 h a ve g e n e r a L y b e e n we a k s i n c e th e n . 2021 is unspectacular. bike most utility is 1.82 182 Mor eover PG&E i s also r ec or di ng c osts- sues the recent quotation of PG&E stock . and booking insurance recoveries-related is within our 3 to 5year Target Price 1.82 to a large fire that occurred in 2015 when Range. 1.82 a t r e e c a m e i n c o n t a c t wi t h a p o we r l i n e . P a u E. D ebbas C F A October 28 2016 Full Year (A) Dilute d Eds. End. no r re c. ga ins (lo sse s): change in she . Ne x t e arnings re port due e arly inland. In 15: $14.29/sh. (D) In m m . (E) Rate 04 $6.95 09 18¢.; 11 (68¢); 12 (15¢); 15 No v. 1 8 ) Divd s h is to rica lly p a id in m id Ja n . base: net °';1 cost. Rate allowed noncom . eq. 121¢.g 16 (5¢)dga ln fro m disc. o ps.. 08 41¢. Ap r. ° ' l a nd O ct. l Dlvd re lnve sL.pla n a va il. in 1 5 : 1 0 .4 ; e a rne d o n a vg. co m . e q. 15: 1 3 P S de nt a d due to ro unding 14 due to t Sha re gilda inve stm e nt pla n a va il. (C ) Ind. 6.0%. Regulatory Clim ate: Average. c 2016 Value Line Inc. Al P1915 reserved. Factual material is obtained tram sources believed lo be reliable and is. provided vuihaul warrarlies d al.kind. THE PUBLISHER IS NOT RES NSIBLE FOR ANV ERRORS OR OMISSIONS HEREIN. ll8.1:uNI4:atxon is strictly for subscriber s own. noncomnefual blend use. o pan d1mayberq>rod1cedresdldsloredof transnlled ll:l\yprlrledek¢llonlcolalherlormoru lorgerleratlngarnwketng any pnnledcrdectrmnz p\nhicabonsemceo1producL Companys Financial Strength Stocks Price Stability Price Grovnh Persistence Earnings Predictability B+ 95 35 55 To s ubs c ri be c al l 1800-V A LUE LINE Ra15ed5/IH] TECHNICAL 3 Lolleled9l3(n16 s£rA .70 I1ooman(eo 11 I Annl Total Price Gain Rel um Hlgh 80 (+ 5% 5% Low B5 15% 1% Ins ider Dec is ions D J F M A u J JA loBby 0 0 0 0 0 0 0 0 0 Onions 0 1 1 4 0 0 4 0 0 0 wseu 1 o 0 4 0 0 0 0 0 Institutiona l Da clslons 402415 196 167 88855 1Q2D16 221 182 92857 PRICE High: 4 6 .7 Low: 3 9 .8 L EGENDS .. 0 :6 7 x Dmctcn d ssla sh d l vl d cd b me ce R a te Re la tive Ce Str e n g th OEUDRS: Yes . haded area umbcaves r ecessum Lowefed 10I14I16 sArETte 75.12 R EC ENT PINNACLE WEST NYSEPNW 429 26.3 I 380 22.3 18.s(m:.e. 42.7 32.3 48.9 37.3 RELAT NE 15.0 PIE RATIO 547 45.9 71.1 51.2 - 0.99 73.3 560 - . _ ......; m$wu l D N' D YLD 82.8 62.5 Q --- ----- I - -- l- l- --I- -- _- -- :- l-l - - " I l l s - - l - l l ! u - - - ! ue Percent 30 - a l - l 5 3 .6 6 2 8 .9 0 3 0 .8 7 3 1 .5 9 3 0 .1 6 3 4 .0 3 3 5 .0 7 3 3 .3 7 3 2 .5 0 3 0 .0 1 2 9 .6 7 7 .9 9 8 .7 2 7 .0 1 7 .3 3 6 .9 3 5 .7 6 9 .7 0 9 .2 9 8 .1 3 8 .0 8 6 .8 5 3 .3 5 3 .6 8 2 .5 3 2 .5 2 2 .5 8 2 .2 4 3 .1 7 2 .9 6 2 .1 2 2 .2 6 1 .4 3 1 .5 3 1 .6 3 1 .7 3 1 .8 3 1 .9 3 2 .0 3 2 .1 0 2 .1 0 2 .1 0 1 2 .2 7 2 8 .0 9 2 9 .4 6 3 1 .0 0 8 4 .8 3 8 4 .8 3 l i n a l a m 1 1 .3 1 2 .0 1 4 .4 .7 3 .6 1 .7 9 3 .8 % 3 .5 % 7. 4 .5 % 1 6 .3 .5 9 .4 EM 3 1 .3 5 l 3 1 .5 8 7 .5 2 7 % 8 .1 5 8 .0 9 3 .0 8 2 .9 9 3 .5 0 3 .6 6 3 .5 8 2 .1 0 2 .1 0 2 .6 7 2 .2 3 2 .3 3 7 .I . . 4 3 4 .5 7 3 4 .4 8 9 9 .9 6 1 0 0 .4 9 1 0 0 .8 9 1 4 .0 1 5 .8 1 9 .2 131 1 4 .9 1 6 .1 1 3 .7 .8 0 .8 3 1 .0 2 1 .7 4 .7 9 .9 7 .9 1 .8 0 4 .9 % 4 .5 % 4 .5 % 1 4 .7 % 4 .8 % 6 .2 % 6 .8 % 5 .4 % 4 .8 % 5 .3 % 4 .0 % 3 4 0 1 .7 3 1 7 .1 3 5 2 3 .6 2 9 8 .8 3 3 6 7 .1 2 1 3 .6 3 2 9 7 .1 2 2 9 .2 3 2 6 3 .6 3 3 0 .4 3 2 4 1 .4 3282 3 3 0 1 .8 3 8 7 .4 3 4 5 4 .6 4 0 6 .1 340% 3 6 .2 % L T l n t a r o s t 5 1 8 5 . 8 mi l l . (LTinleresleamed:4.8x) Leases,UncapltallzedAnnualrenlals $18.0 mill. PensionAssels12I15$2542.8mill. . 330% 11.1% 3 3 .6 % 14.8% 214% 17.5% 1 0 1 .4 3 3 6 .9 % 112% 3 3 .8 6 3 4 .9 8 3 6 .2 0 1 0 8 .7 7 ma 1 0 9 .7 4 1 4 .6 1 4 .3 .9 2 .9 1 .1 . 9 9 .0 8 1r3l.$13.4 mlll.paloverdesaleleasebacklessor 3 4 .1 6 ll 3 0 .0 9 9 1 .7 9 cAp lTAL sTRu cTu REa so f6 /9 0 1 1 6 T o t a l D e b t $ 4 2 5 5 . 6 mi l l . D u e i n 5 y r s $ 1 4 7 8 . 7 mi l l . L T D e b l $ 3 8 9 7 . 8 mi l l . 12. a199°A 11.7% 12.8% 3 8 .0 7 mm 1 5 .3 .8 6 3 4 .4 % 9.7% 10.0% 51.6% 53.0% 53.2% 49.6% 54.7% 55.9% 55.4% 60.0% 6 6 7 8 .7 6 6 5 8 .7 6 4 7 7 .6 6 6 8 6 .6 6 7 2 9 .1 6 6 4 0 .9 7 1 7 1 .9 6 9 9 0 .9 7 8 8 1 .g 8 4 3 6 .4 8916] 9 2 5 7 .8 9 5 7 8 .8 99623 10396 10889 C o mmo n S! 0 C k 1 1 1 1 7 4 7 7 2 s h e . 9 .2 % 8 .5 % 6 .2 % 6 .9 % 9 .0 % 8 .6 % 9 .8 % 9 .7 % a s of 7122116 MA R K E T C A P : $ 8 .4 billion (Large Cap) 9 .2 % 8 .5 % 6 .2 % 6 .9 % 9 .0 % 8 .6 % 9 .8 % 9 .7 % 3 .4 % 2 .6 % .3 % .7 % 3 .1 % 2 .8 % 4 .1 % 4 .1 % 63% 70% 96% 89% 66% 68% 58% 58% O b l l g . $ 3 0 3 3 8 mi l l . paStockNone 62 .% s.9% 47 .% 48 .% 6.5%6.4% 68 .% 71 .% EL ECTRIC OPERATING STATISTICS 2013 1 %Change Relay Sales KWH) A» g . Mi a u se ( i v/H WH(¢) Avg.hduslRevs. C H U M! I P€ &I 8 e { Pealrloag " l m »ima11J%'1& %Char¢Cuslnmasyrend) 6.21 8398 6927 50.0 +1.4 2014 1.8 659 8.26 9259 7007 48.6 +1.2 2015 +1.3 658 8.17 9250 7031 48.3 +1.3 Coy . Is 419 404 4 3 8 ANNUAL RATES Past Past EStd1315 0lchange(pash) 10Yrs. 5Yrs. 101w21 Revenues .. .5% 3.0% Cash Flow 2.5% 2.0% 5.5% Eamings 4.5% 8.5% 4.0% Dividends 2.5% 2.0% 5. 0% Book Value 2.0% 3.5% 3.5% Cal. Full r ed a Rx ender 2013 2014 2015 2016 2017 i d e n ti c a l. c u s to m e r s b i l l s c o n s i s t o f fi .x e d a n d va r i a b l e c o m p o n e n ts b u t t h e f i x e d p o r t i o n d o e s n t c o m e c l o s e t o a l l o w i n g AP S t o r e c o ve r i t s a c t u a l f i x e d c o s t s . T o a d d r e s s EAR N I N G S PER SH AR E A 11 10¢ 13. (5¢). 1 5 EPS :ml 3 7 .5 0 1 1 .5 0 4 .7 5 3 .1 0 . 1 0 .2 5 4 9 .0 0 - mm 3491.6 3495.4 3550 3700 Revenues($miII) 397.6 437.3 MO 485 NetProflt $miII 34.2% 34.3% Income Ta Rate 11.6% 11.8% AFUDC'/l10 NetProfrt 41.0% 43.0% 46.0% LongTerm Debt Ratio 59.0% 57.0% 54.0% CommonE up Ratio 7398.7 8046.3 8795 1 9245 T daIcapi1aI($mill) 11194 u m e 12475 13200 Net Plant $m111 6.4% 6.4% 6.0% 6.5% RetumonT otal Capl 9.1% 9.5% 9.5% 10.0% Retumon 5hr. Equity 9.1% 9.5% 9.5% 10.0% RetumonComE up E 3.5% 3.9% Retained lo Com Eq 62% 59% AllDiv'dsto NelProf 8 WM 10150 14575 6 .5 % 1 0 .0 % 1 0 .0 % Full Year c r e a s e i n 2 0 1 6 f ollowed b y s t r o n g e r gr owt h in 2017. The cost of m ajor plant o v e r h a u l s a ffe c te d p r o fi ts i n th e fi r s t h a l f o f 2 0 1 6 s o th e c o m p a r i s o n w i l l b e e a s y n e x t y e a r . O u r 2 0 1 6 e s ti m a te i s w i th i n th e co m p a n ys g u i d a n ce o f $ 3 . 9 0 $ 4 . 1 0 a sh a r e . A s th i s report w e n t to p r e s s w e w e r e e xp e c t i n g P i n n a c l e t o a n n o u n c e a d i vi d e n d h i E d . We l o o k fo r a r a i s e o f $ 0 . 0 3 a s h a r e ( 4 . 8 %) i n th e q u a r te r l y p a y o u t. T h i s s t o c k h a s a n a ve r a g e d i vi d e n d y i e l d f o r a u t i l i t y . L i k e m o s t u ti l i ty i s s u e s th e r e c e n t q u o ta ti o n i s w i th i n o u r 20192021 Target Price R ange. According l y 3 to 5 y o a r to ta l r e tu r n p o te n t i a l i s u n spectacular . P aul E . Debbas C FA Oc t o b e r 2 8 2 0 1 6 (A) Diluted Eps. End. nor rec. losses: 02 77¢; dont add due Io rounding. Next earnings report (C) Incl. deferred chge. In 15: $13.77lsh. (D) In 09 $1.45; excl. gains (losses) from disc. ops.: due early Nov. (B) Divds historically paid in mill. (E)Rate base: Fair value. Rate allowed on 00 22¢ 05 (36¢)1 06 10 ; 0 8 2 8 ¢ 0 9 e a r l M a r . June. Sept. & Dec. There were 5 oom.eq. in12: 10%eamed on avg. com.eq. (13¢); 10 18¢ 3 1 .8 5 T wo si zab l e co n stru cti o n p ro j ects a r e u n d e r w a y. AP S i s b u i l d i n g f i ve g a s l i r c d units to replac e older fac ilities and in c rease _ Ig e n c ra ti n g c a p a c i ty b y 2 2 0 m e g a w a l l s. his is expec ted lo c ost $500 m illion and be c om pleted by the spring of 2019. T h e u ti l i ty i s a d d i n g p o l l u t i o n c ontrol equipm ent to two c oal-fired units. T his is expec ted to c ost $400 m illion and be c om pleted by the spring of 2018. W e l o o k for just a slight earnings in 686.2 671.2 677.2 700 Mar.31 Jun.30 Se .30 Dec.31 @ ' VAL U E U N E PU B. L L C 33.05 Revenuespersh 9.09 1 9.30 9.90 "Cash Flow" porch 3.92 3.95 4.30 Eamings perch A 2.44 2.56 2.68 Div'd DecId perch B 9. apI pending perch 41.30 Book Value persh° 110.98 111.50 112.00 Common ShsOuts1g 16.I 1 sou WE son Avg Ann'IPlE Ratio .81 1 V°i"* Llne Relative PIE Ratio te a 3.9% 1 c s Avg AnnI Divd Yield 3 1 .5 0 1 8 VL Aa m max 1 7 .7 2 3 .7 1 0 8 .1 Pinnacle Wests Utility' subsidiary has a rate case mending. Arizona Public Scr vice (APS) ft ed for an increase of $165.9 million (5.7%) based on a return of 10.5% on a commonequity ratio of 55.8%. More significant than the revenue Icquilc[Tlotlt is APS proposal for changing rate design. Just of the utilitys residential custom e r e h a ve s o l a r p a n e l s o n t h e i r h o m e s b u t t h e y a r c s u b s i d i ze d b y t h e o t h e r 9 6 % . R e s 726.4 3491.6 734.4 3495.4 732.4 3550 775 3700 . 39.50 110.57 15. .84 4.1% 2 0 1 7 1 yr . 3 yr . 5 yr . THIS STOCK 2 2 .B 55] 1 1 5 .3 commercial 39% industrial 5%. other 7%. Generating sources: coal 31% nuclear 27% gas a other 20%; purchased 22%. Fuel costs: 32% d revenues. 15 reported depress. role: 2.7%. Has 6400 employees. Chairman Praidenl a CEO: Donald E. BrandL Inc.: Az. Address: 400 North Fifth St.. P.O. Box 53999 Phoenix AZ 850723999. T el.: 6022501000. lnlemet: www.pinnaclewest.com. this problem. the utility proposes to raise the fixed component lower the variable component. and add a third component: a 2013 .22 1.18 2.04 .22 3.66 .14 1.19 2.20 .05 3.58 demand charge that is calculated based on 2014 .14 1.10 2.30 .37 3.92 the highest demand averaged over a one 2015 1.08 2.43 .40 3.95 hour period during the onpeak time each .0 4 2016 .20 1.20 2.50 40 4.30 month. Other parts of the rate case in 2017 Cal QUARTERLYDNIDENDSpA10B1 Full elude 3 request to increase recovery of lost ender Mar.31 Jun.30 Se .30 1386.31 Year revenues resulting from energy efficiency 2012 .525 .525 .525 545 212 programs and a deferral of costs associated . with two major construction projects (see 2013 .545 .545 .545 .567 2.20 .568 .568 .568 .595 2.30 below) until this spending can he recov 2014 .595 .5g5 .595 .625 2.41 red in a future rate case. New rates will 2015 .625 .625 .625 likely take effect in mid2017. 2016 CaL ender 12 BUSINESS: Pin fade West Capital Corporation is a holding compa ny for Arizona Public Service Company (APS). which supplies elec tricky 101.1 million customers in most of Arizona except about half of the Phoenix metro area. the Tucson metro area and Mohave County in nonhweslem Arizona. Discontinued SunCor real estate subsidiary in 10. Electric revenue breakdown: residartial 49%. M a r.3 1 Ju n .3 0 5 .3 0 De c .3 1 Year 686.5 915.8 1152.4 699.8 3454.6 906.3 1172.7 89077 1199.1 915.4 1 2 2 5 1275 950 32 24 20 16 - as T OI RETURN 9/16 4 3 .5 0 7 .7 6 VALUE LINE Tar?et Pric e Ra nge 20 9 2 0 2 0 2 0 1 120 100 an 64 48 u shares 20 -llm11mnllllllIIIlnnlllllll\lnnmIn-lnlmmumml'rmmnulll :Sm traded 10 llIII1llTMIIIIIIIIIIIIIIIIIIIIIIIIIIIllllllIIIllllllllllIII1111III11I1llllllIIIIIIlllllllllllllllllllllll11IIIIIIIIIIIIIIIIIII1 2012 2013 2014 m a m a Hmmm 2002 2003 am! 2005 2006 2007 2008 2009 Hi d 0 0 0 3.5% i1IlIIl u1"'°"£ 202016 206 189 91259 2 19.8 d e c o r a t i o n s i n 1 2 . I D i v a r e in v e s t . p l a n a v a i l 1 5 : 9 . 8 % . R e g u l a t o r y C l i ma t e : A v e r a g e . a 2 0 l G V a l e L i n e I n c . Al % " " r e s e r v e d . F a c t u a l ma t e r i a l i s o b t a i n e d from s o u r c e s b e l i e v e d l o b e r e l i a b l e a n d i s p r o vi d e d w n h r n n w a r r a n ti e s 0 1 kin d . T H E PU BL I SH ER I S N OT R ESP N SI BL E F OR AN Y ER R OR S OR OMI SSI ON S H ER EI N . Th e ;t> u b l i ca ti o n i s str i ctl y l o t su b scr i b e r s o wn n o n co mme r ci a l I r l e ma l u $ : I KI 0 p a l d I ma y b e re p ro d u ce d . re so ld sto re d o r u a lsmin e d in a n y p rin te d e le cu o n rc o r o th e r lor d. o r e lo t g e n e fa u n g o fma r ke lin g a n y p mte d o r d e clr o n Ic p u h ka llu n se r vice o r p r o d u ct Companys Financial Strength Stocks Price Stability Price Growth Persistence Eamings Predictability A+ 95 70 80 T o su b scri b e ca l l 1800V AL UEL I NE R EC ENT PORTLAND GENERAL NYSEPOR High; 350 Low; 24.2 LEGENDS 0.13 x DividcrIdss*J sh TIMELINESS 3 lov4Efed8I19H6 SAFEW 2 Raised5I4Il2 TECHNICAL 3 L0wue¢9n(v1s . o BETA .70 (1.00Maf1\el) o 10 Buy lo Sell H i d 000 m ans 139 116 87246 I Per cent shares traded 33.3 27.4 23.14 24.32 _ - - _ - - - - - - - " - - ELECTRIC OPERATING STATISTICS 2013 _ _ 24.06 23.89 23.18 24.29 2138 21.35 4.75 4.64 5.21 4.71 4.07 4.82 4.96 5.15 4.93 6.08 5.37 575 1.02 1.14 2.33 1.39 1.31 1.66 1.95 1.87 1.77 2.18 2.04 215 .. .68 .93 .97 1.01 1.04 1.06 1.08 1.10 1.12 1.18 1.26 5.94 . 8 9.25 .97 3.98 4.01 8.40 12. 7 6.73 7.45 19.58 21.05 20.50 21.14 i 22.07 22.01 23.30 24.43 25.43 26.30 62.58 75.21 75.32 75.36 75.56 78.09 78.23 16.3 12.0 12.4 14.0 16.9 15.3 62.50 lain 1.26 .63 .98 14.4 .96 2.5% 3.3% 4.3% 5.4% 1520.0 1743.0 1745.0 1804.0 11.9 .76 .89 .95 .81 .a s 3.7% 3.3% 3.3% 1783.0 1813.0 1805.0 1810.0 1900.0 1898.0 1900 r 2013 2014 2015 2016 2017 Cab ender 2012 2013 2014 2015 2016 .65 .73 .62 .68 75 2.75 1.60 .50 30.25 125.0 195 1 ostimahs r Av g AnnIPE R atio Relative PlE Ratio Avg AnnI Divd Yie ld 2000 R e ve nue s($m ill) 87.0 95.0 147.0 141.0 175.0 172.0 28.8% 30.5% I 28.3% 31.4% 232% 28.0% 20.7% 33.8% 17.9% 17.2% 31.6% 17.6% I 5.4% 7.1% 14.6% 33.7% 19.8% 43.4% 49.9% 46.2% 50.3% 53.0% 49.6% 47.1% 51.3% 52.7% 47.8% 45.0% 48.0% LongTe rm De bt R a tio 47.5% 56.6% 50.1% 53.8% 49.7% 47.0% 50.4% 52.9% 48.7% 47.3% 52.2% 52.0% 520% Com m onE u 52.0% 2161.0 2629.0 2518.0 3100.0 3390.0 998.0 324.0 3735.0 4037.0 4320.0 4490 4655 TotaICapital($mill) 5200 2718.0 3066.0 3301.0 3858.0 4133.0 42850 4392.0 4880.0 5679.0 8012.0 6355 6425 Ne t P la nt $m ill 6200 4.7% 6.9% 5.0% 4.5% 5.4% 6.2% 5.9% 5.1% 5.8% 5.4% 5.5% 5.8% 11.0% 6.4% 6.2% 7.9% 8.8% 8.2% 7.5% 9.2% 7.6% 8.0% 5.8% 11.0% 6.4% 6.2% 7.9% 8.8% 8.2% 7.5% 9.2% 7.6% 8.0% 3.5% 6.6% 2.0% 1.5% 3.0% 4.1% 3.5% 2.9% 4.6% 3.3% 39% 40% 69% 76% 62% 54% 57% 61% 50% 56% 16577 17827 e le ctricity to 860000 cus to m e rs in 52 citie s in a 4000s qua re m ile 4 .8 4 4380 3 AS +. 9 5.13 4910 3 8N6A6 +. 7 5.01 4609 3 2N5A5 +122 ar ea 01 Or egon including Por iiand and Salem. T he company is in the pr ocess of decommissioning the T r ojan nuclear plant w hich it closed in 1993.Electr icr ev enue br eakdow n:r esidentiaI47% ;c0m mer cia 35% ; industr ial 12% ; other . 6% . Gener ating sour ces: gas 239 248 243 210 Ne t P ro fit Sm ill Income Tax Rate M AFUDC % to Net Profit 8 R a tio Rel um on Total Capl 6.0% Return on Shr. Equity Rot um on Com E u 9.0% E 9.0% 3.5% Retained to Com Eq 5 7 % A ll D iv d sto N e t P r o 23% coal 19% wind. 8% : hy dr o 7% : pur chased. 43% . F ud costs: 35% of r ev enues. 15 r epor ted depr eciation r ate: 3.6% . Has 2600 employ ees. Chair man: Jack E. Dav is. Pr esident and Chief Ex ecu tiv e Officer : James J. Pir o. Incor por ated: Or egon Addr ess: 121 S.W. Salmon Str eet. Por tland Or egon 97204. T elephone: 503464 8000. Internet: www.portlandgeneraI.com. Po r tla n d G e n e r a l Ele c tr ic C o m p a n y D e s p ite th e p r o b le m s with th e C a r ty c o m p l e te d a g a sfir e d g e n e r a tin g co n str u ctio n e a r n in g s a r e like ly to Past Yrs. £$:°d1;18115 p l a n t o n J u l y 2 9 t h T h e d a t e i s s i g n i f y a d v a n c e t h i s y e a r . T h e r a t e i n c r e a s e wi l l 2.0% 1.0% c a n t b e c a u s e t h e u t i l i t y h a d t o c o m p l e t e h e l p . A l s o th e s e r v i c e a r e a s e c o n o m y i s i n 4.0% 5.0% th e 4 4 0 m e g a w a tt C a r ty fa c i l i ty b y J u l y g o o d s h a p e w i th m o d e s t l o a d g r o w th e x 3.5% 3.0% 505 .13 .43 .40 .44 .42 45 .40 .45 50 .275 .28 .30 1.25 28.7% +.G BUSINESS: Portland General Electric Company (PGEl provides .47 525 .28 .30 .32 $ 6 6 0 m i l l i o n ; th e fi n a l a m o u n t s ti l l h a s n t b e e n d e te r m i n e d . P G E w a n ts to c o l l e c t a p e r fo r m a n c e b o n d o f $ 1 4 5 . 6 m i l l i o n p l u s a d d i ti o n a l d a m a g e s b u t th e i n s u r e r s h a v e 1.77 2 . 1 8 d e n i e d l i a b i l i ty a n d th i s m a tte r i s n o w i n 2000 .59 .55 .57 .60 .65 QUARTERLY DNIDENDS PAID B l 1 M a r . 3 1 Ju n . 3 0 s. .30 D ec.31 .265 .265 .27 .27 .27 .27 .275 .275 .275 .28 .30 - 24.50 I .28 .30 .32 ( A) D iluted EPS. Ex cl. nonr ew r r ing loss: 13 42¢. 15 ear.nings dont add due to r ounding Ne x t e a rnings report d u e e arly No v. (8) Divid e n d s p a id m id Ja n . Ap r. J u l y a n d F u ll Year 2.04 the courts. When and how this will be re 2.15 solved is unknown but this is likely to be 2.35 a matter of years not months. Meanwhile the company is swallowing excess costs F u ll Year that are not being recovered in rates. This 1 07 will cause an estimated $0.05a-sharc drag . on annual profits. If PGE is unsuccessful 1.09 1.11 in litigation the utility will presumably 1.16 sock rccovory of the additional costs via a filing with the Oregon commission. pecked. u r e a r n i n g s e s t i m a t e i s w i t h i n m a n a g e m e n ts ta r g e te d r a n g e o f $ 2 . 0 5 $2.20 a shar e. We for ecast fur ther bottom line im p r o ve m e n t in 2 0 1 7 . T h e fir stq u a r te r com parison w ill be easy because a m ilder th a n n o r m a l w i n te r a n d s u b p a r c o n d i ti o n s fo r P G E s w i n d p r o j e c ts h u r t th e u ti l i ty i n th e fi r s t p e r i o d o f 2 0 1 6 . H o w e v e r w e h a v e r e d u c e d o u r e s ti m a te b y a n i c k e l a s h a r e d u e to th e a fo r e m e n ti o n e d d r a g o r t e a r n i n g s b e c a u s e a p o r ti o n o f C a r ty i s n o t r e l l e c te d i n r a te s . T h is sto ck h a s a h ig h va lu a tio n . T h e d i v i d e n d y i e l d i s b e l o w th e u ti l i ty m e a n a n d th e r e c e n t p r i c e i s a b o v e th e m i d p o i n t of our 20192021 Target Price R ange. Per h a p s th e v a l u a ti o n r e fl e c ts s o m e ta k e o v e r s p e c u l a ti o n e s p e c i a l l y i n v i e w o f a l l o f th e m e r g e r a n d a c q u i s i ti o n a c ti v i ty i n th i s i n d u s tr y . In a n y c a s e w e a d v i s e a g a i n s t p u r c h a s i n g th i s s to c k i n th e h o p e o f a b u y o u t. Pau] E. Debbas CHI OLlol)< v 28 2 0 1 6 O c t. I D i v i d e n d r e i n v e s tme n t p l a n a v a i l . t c o m. e q . i n 1 6 : 9 . 6 % . e a me d o n a v g . c o m. e q . Shar eholder inv estment plan av ail. SC ) I n d . 15:8.3%.R e gula to fy C lim a le :Ave ra ge .(F)05 deferred charges. In 15: $5.90Ish. (D I n m ill. p e rs ha re d a ta a re p ro fo rm a .b a s e d o ns ha re s (E) R ate base : Ne t orig. cost. R a le a llowe d on outstanding whe n stock be gan trading in06. o 2016 Vallie Line Inc. All go" reserved. Factual maenad is obtained lim sources believed to be reliable and is. piuvided without waranlies al mil hid. THE PUBLISHER IS NOT RESP NSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. Tharublcauon is suicliy lo: subscriber s own. nonconmerclaL internal use. o pan ollmaybereproducatresoki.staedtxuansnvllednariypiIrned leclroriirorudw:rIorm.o1us lot generaungoimarteung any pmledoreledronnc publicaixn service oiprorhot C o mp a n y s F in a n cia l Str e n g th S to cks P r ice S ta b ility Pr ice Gr ov nh Per sistence E a min g s P r e d icta b ility i i 145.0 EARNINGS PER SHARE A M a r .3 1 Ju n .3 0 Se .3 0 D e c.3 1 endar l 33.8% 525 445 s 6 71.0 Cal 2014 l l 33.6% 2017 2013 8old I7guns in VJ IWLIM 4.1% 137.0 12 89.80 17.7 .78 2015 2016 Cab % Too. R ETUR N 9l1G mas Vl Alum : slocum 1wcx 1 yr. 18.8 17.7 3 yr. 65.3 23.7 5 yr. 112.6 10811 22.40 Rev enues per sh 6.10 Cash F low" perch 2.35 Earnings per sh A 1.34 D iv d D ecld per sh s l t 4.55 apI pending per sh 27.20 Book Vduo per ch c 4.4% 5.2% I 31st in order to place an $85 million rate increase in effect. But. construction didnt go smoothly. In December of 2015 PCE QUARTERLY REvEnuEs($ mill.) F u ll M a r . 3 1 J u n . 3 0 S e . 3 0 D e c . 3 1 Year declared the original contractor in default of the construction agreement and took 473.0 403.0 435.0 499.0 1810.0 493.0 4230 484.0 500.0 1900.0 over management of the project. The prob 473.0 4500 476.0 499.0 1898.0 less raised the capital cost from $514 mil 487.0 428.0 4 8 0 lion originally expected to $640 million 505 1900 ender ¢* 23.67 1625a 7.0% 2.5% - -- 2010 2011 2015 +1.2 20148 8338185 Book value - - 23.99 MARKET CAP: $3.7 billion ( Mid Cap) . 1.5% 64 48 40 32 24 20 16 - m 1 27.89 C ommon Stock 88921 050 she. as of 7/15/16 Revenues "Cash Flow Target Price Range 2019 2020 20 1 27.87 Oblig. $75a m in. C4Jv.'L 410 33.0 I IIInMMIIII1111111II1IIIII111III1IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII11IIIIIIIIII P e n s io n As s e ts 12l15$550m il1. AN N U AL R AT ES Past 10 Yrs. 01 change to sh) 40.3 29.0 21 III - l IIIIIIII1IlIIIIHTIIIHIIIIII-'l 1 l l I l l H 1 f l 1 I l 14 l I g 7 1 I1 - u n 1111f1H I II III I IIIIIIIIIIII 1III I II T \IM1H111H I1lI 1 1lI I T11 l_ C API T AL STRUCTURE as of 6/3011G T otal D ebt $2324 mill. D ue In s Yr s $698 mm. LT Debt $2324 mill. LT Inter est $112 mm. (LT interest earned: 2.6x) Leases Uncapltalized Annual r entals $10 mm. . 28.1 24.3 Y LD lll" 1»11111 23.4 FuedGha 26.0 21.3 3.20/0 V8h'éE D N' D I- -n -- -I -l -! -- -I - - - -- -! - " 62.50 An Irdustl 8u) re) it e a w PeakLoa4Wnu(llw Amduzad f;gu(§ 'L Uiange Cusnmars yard) 22.7 17.5 * 2003 2004 % Relalsabs(wm) Avi. usU$e(llWHllvm 21.4 13.5 18.8(w=::e2s) 41.02 l mQ mw 292016 119 133 86154 Pfd Stock N one 41.11 27.7 15.4 divudcd b tfmcm Role Relative Ce Suengh 1 Yes x haded ales lndlcales n:cess40n An n I T u ta I Pr ice Gain R e cu r ( +10% Hlgh 45 5% LOW 30 30% 4% Insider D ecisions D J F M A M J J A loBby 0 0 0 0 0 0 0 0 0 Oglicns 0 0 7 0 0 1 0 0 0 0 loser 0 0 0 0 0 1 0 0 0 I n s ti tu ti o n a l D e c i s i o n s WN15 125 106 86623 PRICE B u 95 70 70 T o subscr ibe call 1- 800VALU ELIN E meuusss 2 Raiset18l¢2]l6 sAt£Tv 1 Raiseanrzsnz TECHNICAL3L0\1e1ed1n2Bl1G BETA .10 (1.00 Maf1\et) I AnnIToAal § Price Gain Recur High 55 (+30% 10% Low 45 +5% 6% insider Declslons rzirmanxlznna 2003 ° " ~ " ' " " ' Percent shares traded 30 20 10 23.54 23.09 24.74 211 3.14 3.01 2.92 3.02 3.42 1.78 1.85 1.88 1.88 1.52 1.79 1.08 1.08 1.08 1.0a 1.10 1.12 10. .67 5.9% :Y 502. 3 35.5 28.0 34.1 28.9 37.0 29.7 43.8 31.3 -_ h - - - - - - -n nmmm- xummnlzmnm - 47.4 37.8 44.4 136.8 v I m - Target Price R='8=° 20 9 2020 20 1 - - - 1 Q 9 a0 60 so 40 30 25 20 15 - m - -m l- _--n u _- - nmi i " " mllllllnnlllllmnnmmllllllllllllllllullllllllllnlllnlllllnlnnmnlmlmlnlllllllllmlllnlllllllllllllnll - 2407 3.91 185 114 1 1335 E429 - 25.28 27.94 24.51 23.31 22.42 19.71 21.52 20.61 16.30 18.60 R e ve nue s p e rs h 20.75 4.68 4.98 5.27 5.36 4.87 5.17 5.82 6.15 5.65 6.15 Cash Flow" perch 2.59 2.90 3.08 3.07 3.11 244 2.45 2.99 3.30 275: 2.85 Eamingspersh A 1.17 129 1.33 1.37 1.37 142 1.44 1.48 1.56 1.64 1.72 Divd DecId perch 8'1 5 3.55 4. 412 5.5 5.58 7.65 7.30 6.90 aplSpending perch 14.35 17.37 19.04 20.30 22.95 24.09 25.86 26.00, 26.05 Book Value perch c 508.52 506.02 M n 5.97 . 505.95 505.89 505.86 505.84 E914 506.001 506.00 _ I 10.4 10.4 1 .8 13.5 12.6 12.4 .88 .82 .67 .66 .65 .81 .76 .66 .63 3.8% 3.5% 2.7% 3.3% 4.3% 4.3% 4.2% 4.6% 4.4% 3.9% 3.8% 12164 12853 14139 12431 11793 11343 9781.0 9968.0 10886 10415 92503 9400 Revenues($m ilI) 934.0 1323.0 1477.0 1567.0 1557.0 1517.0 1239.0 1243.0 1518.0 1679.0 1400. 1465 Ne t P ro fit $m lll 36.6% 44.5% 45.9% 42.3% 40.5% 40.4% 36.2% 39.5% 38.2% 37.4% NA 9595 NA NA l 7.25 4.36 1 .5 NA NA l i l 1933 .96 2593 1i 2010 2011 17.: Common Stock 505896218 she. as of 10/18/16 MARKET CAP: $21 bron (Large Cap) \0 7.5 % TOT. RETURN 10/16 ms aL um s ro cx I UEX 1 yr 5.9 6.4 (Aye. 41 .3 15.1 Sys . 53.6 76.0 .88 Pension Assets12/15 $5039 mill. Oblig $5522 Ml". Pfd Stock None ELECTRIC OPERATING STATISTICS 2013 2014 %qt lll,l5al¢5 Kwm .9 1.3 Avg u»(uw1:lw NA NA Avg. ¢) NA NA Canaulyatpeat( 1. NA NA 10414 9474 NA NA %W msmmu54) NA NA *.° *'~.l 16.5 Leases Uncapitalized Annual rentals $29 mm. ) ¢ I 8Q18 8.85 11.71 45I .53 472.27 47 .20 10.I 10.6 1 14.3 .55 .60 .76 5.7% 5.4% 5.1% CAPITAL STRUCTURE asof 9/30/16 Total Deb! $10952 mill. Due in 5 Yrs $3755 mill. LT Debt $10697 mill. LT Interest $428 mill. (LT interest earned: 7.6x) M l 2004 2005 2006 18.62 5: 12.0 .61 43% 34.9 29.0 . 23.84 of. 34.1 23]7 VALUE LINE _ - - - - H - m_n - - -i -- - ! - - !- - - - -I -l - - - - " t 22.83 1 52.3 22.1 areanoicales recession JFuAuJJAs loBby 000000000 OM UMZ71111111 tosell 2 3 1 1 4 2 1 2 1 Institutional Decisions IQN15 1q2ll16 z0za1s lOBby 315 333 314 l0$¢1I 292 284 294 Hld o00 340915 341192 333293 PRICE Hig h : 3 4 .2 36.3 L o w: 2 4 .7 29.5 L EG END S . 0..16 x DNWMWS; Sh ctvvdqd bnnere Rate Relalwe e Sue ngh 2l oI 1 s o 2108 14.0('»'?l8$1§3)'$&"Rl'¥l%0.18 bLvD 4.1% 42.05 R EC ENT P.S. ENTERPRISE GP. NYSEPEG 1 . 1 l .l Bold ligures an Value Llm esflmaros Relative PIE RatIo Avg An n I Divd Y ie ld 5.00 506.00 l 10450 1660 37.0% 4.7% 2.7% 3.2% 3.8% 5.5% 2.7% 4.8% 4.6% 4.5% 5.5% 54.0% 50.5% 46.3% 44.8% 42.1% 38.3% 40.4% 40.4% 40.3% 5.0% AFUDC %t0 Ne tP ro f1t 4.0% 39.2% 45.5% 49.0% 53.2% 55.2% 57.9% 61.7% 59.6% 59.6% 59.7% 17197 16041 15856 16513 17452 17731 17467 19470 20446 21900 225751 23325 Total Capital ($m ilI) 27900 13002 13275 14433 15440 16390 17849 19736 21645 23589 26539 20400 . 29750 Ne t Plant Sm all 32300 7.7% 10.4% 11.2% 11.0% 10.4% 10.2% 8.1% 7.5% 8.4% 8.6% 7.0% 7.0% R e tum o nT o ta l C a pl 7.0% 13.7% 17.9% 18.8% 17.7% 16.2% 15.4% 11.5% 10.7% 12.5% 12.9% 10.5% 11.0% Return on Shr. Equity 11.0% 13.8% 18.1% 19.0% 17.8% 16.2% 15.4% 11.5% 10.7% 12.5% 12.9% 10.5% 1 11.0% R e tu m o n C o m E u 5.3% 9.9% 10.5% 10.1% 9.0% 8.6% 4.8% 4.4% 6.3% 6.8% R e ta lne dto C o m Eq 62% 45% 45% 43% 45% 44% 58% 59% 49% 47% LongTerm Debt Ratio M R a tio E 11.0% All Div'ds to Net Pro( BU SI NESS: P u b lic Se rvice En te rp ris e Gro u p I n co rp o ra te d is a The com pany no longer breaks out data on electric and gas operat h a d in g co m p a n y fo r P u b lic Se rvice Ele ctric a n d Ga s C o m p a n y in (PSE&G) which serves 2.2 million electric and 1.8 million gas cus tamers in New Jersey and PSEG Power LLC a nonregulated power generator with nuclear. gas and c0alnred plants in the northeast. PSEG Energy Holdings is involved in renewable energy. ton rate (utility): 2.5%. Has 12100 employees. Chairman Presi dent & Chief Executive Officer: Dr. Ralph Izzy. Inc.: New Jersey. Address: 80 Park plaza. P.O. Box 1171 Newark New Jersey 071011171. Telephone: 9734307000. Internet: www.pseg.com. sta tistics. Fud o usts: 31% o f re ve nue s. 15 re po rte d de pre cia W e h a v e r e v i s e d o u r 2 0 1 6 a n d 2 0 1 7 s ta r t o f 2 0 1 7 b a s e d o n F E R C s fo r m u l a e a r n i n g s e s ti m a te s fo r P u b l i c S e r v i c e r a te p la n . By ye a r e n d 2 0 1 6 tr a n s m is s io n E n te r p r i s e G r o u p . W e r a i s e d o u r 2 0 1 8 w i l l m a k e u p 4 5 % o f P S E & G s r a te b a s e . e s ti m a te b y $ 0 . 1 5 a s h a r e r e fl e c ti n g a T h i s i s n o te w o r th y b e c a u s e th e a l l o w e d r e b e tte r th a n e x p e c te d th i r d q u a rte r. A tu r n o n e q u ity fo r tr a n s m is s io n is h ig h e r h o tte r th a n n o r m a l s u m m e r w a s a p l u s th a n fo r d is tr ib u tio n . a n d P S E G r e c o r d e d m a r k to m a r k e t a c P S E G to o k tw o n o n r e c u r r i n g c h a r g e s i n th e th i r d q u a r te r a n d a d d i ti o n a l Cal QUARTERLYREVENUES(Smil.) Full c o u n tin g g a in s in th e p e r io d w h ic h w e in ender Mar.31 Jun.30 s 1.30 Dec.31 Year el ude in o u r p r e s e n ta tio n b e c a u s e th e s e c h a r g e s a r e u p c o m i n g i n t h e f o u r t h a r e o n g o i n g . O n th e o th e r h a n d w e h a ve p e r i o d a n d i n 2 0 1 7 . Th e c o m p a n y to o k a 2013 2786 2310 2554 2318 99680 2014 3223 2249 2641 2773 10886 c u t o u r 2 0 1 7 fo r e c a s t b y S O . 1 5 a s h a r e . $ 0 . 1 7 a s h a r e i m p a i r m e n t c h a r g e r e l a te d to s o m e l e ve r a g e d l e a s e s a n d a $ 0 . l 3 a 2015 3135 2314 2688 2278 10415 L o w g a s p r ic e s a r e h u r tin g PSEG Po w e r 9 2 5 0 th e c o m p a n ys m a in n o n u tility s u b s id ia ry. s h a r e w r i te d o w n fo r th e e a r l y r e ti r e m e n t 2016 2616 1905 2450 2279 9 4 0 0 T h i s r e s u l ts i n l o w e r m a r g i n s a n d l o w e r o f tw o c o a l fi r e d u n i ts i n 2 0 1 7 . In c r e m e n 2017 2700 1950 2500 2250 o u tp u t fr o m P S E G P o w e r s c o a lfir e d g e n la ] d e p r e c ia tio n a n d a m o r tiz a tio n w ill r e Cal EARNINGSPERSHAREA Full s u it in p re ta x lo s s e s o f $ 5 6 8 m illio n in th e ender Mar.31 Jun.30 s . .30 Dec.31 Ye a r e a tin g u n its . P u b l i c S e r v i c e E l e c tr i c a n d G a s i s e x fo u rth q u a rte r o f 2 0 1 6 a n d $ 9 4 6 m illio n in 2013 .63 .66 .77 .39 2.45 2 0 1 7 . T h e s e a r c n o n c a s h i te m s b u t w i l l 2014 .76 .42 .87 .94 2.99 p o n d i n g i ts r a te b a s e . P S E & G i s u n d e r 3 3 0 ta k i n g some s to r m h a r d e n in g c a p ita l re d u c e PSEGs e q u ity b a s e . Ne ve rth e le s s 2015 1.15 68 .87 .so 2 .7 5 s p e n d in g th a t wa s p ro mp te d b y Hu rric a n e th e c o m m o n e q u i ty r a ti o w i l l s ti l l b e w e l l 2016 .93 .37 .94 .51 2 . 8 5 S a n d y i n th e fa l l o f 2 0 1 2 . M o s t o f th i s a b o ve th e u ti l i ty n o r m a n d w e c o n ti n u e to 2017 .95 .60 .ea .50 g ive th e c o m p a n y o u r to p ra tin g o f A++ fo r Cal 0UARTERLYDNIDENDSPAIDBI1 Full s p e n d i n g i s r e c o v e r a b l e i n r a te s c o n ender Mar.31 Jun.30 S .30 Dec.31 Year c u r r e n tly. ( Th e u tility w ill s till h a ve to file F in a n c ia l Stre n g th . a g e n e r a l r a te c a s e in N o ve m b e r o f 2 0 1 7 .) Th is highqua it a n d ti m e l y s to c k h a s 2012 355 .355 .355 .355 1.42 tra n s mis s io n is a n o th e r k e y a dividend yieldYthat is above average 2013 .36 .36 .36 .36 1.44 Ele c tric 1 .4 8 g ro wth a re a fo r PSE&G. It a s k e d th e F e d f o r a u t i l i t y . T o t a l r e t u r n p o t e n t i a l t o 2014 .37 .37 .37 .37 1 .5 6 Ara l En e rg y Re g u la to ry Co m m is s io n fo r a 2 0 1 9 2 0 2 1 is we ll a b o ve th e u tility n o rm . 2015 .39 .39 .39 .39 $ 1 2 1 m i l l i o n r a te h i k e e ffe c ti v e a t th e Pa u l l. D e b b a s CF A November 18 2016 2016 .41 .41 .41 re w as 529 635 705 ANNUAL RATES Past Past Esra 1315 01dlarvge(vetsh) 10 Yrs. 5 yrs. to 1921 nil Revenues 1 .5% 4.0% "Cash Flow/ 6.0% 3.0% 4.0% Eamings 55% .5% 2. 0% Dividends 3.0% 2.5% 5. 0% Book Value 7.5% 7.0% 3. 5% (A) Diluted EPS. Excl. nonrecur. gain (losses): 3¢; 08 40¢; 11 13¢. Next egg. report due (C) Incl. if tang. In 15: $6.56lsh. (D) In mill. 02 is1.30); 05 (3¢); 06 (35¢); 08 (96¢). early Feb. (B) Divds history. paid in late Mar. adj.forspli1. (E)Rate base: Net orig. cost. Rate 09 6¢; 11 (34¢): 12 7¢; 16 (30¢); gains June Sept.. and Dec. I Divd reinvestment allowed on com. et. in 10: 10.3%. eame0 on (loss) from disc. ops.: 05 (33¢) 06 12¢ 07 plan avail. t Shareholder investment plan avail. avg. com. eq. 15: 13.2%. Reg. Climate: Avg. =. 201s value Lune Inc. AI Q,¢\= received. Faclud malenal is ohiained from sources believed to be refable and is pruvideii wM10ut warrauies d w( kind THEPUBLISHERISNOTRESP NSIBLEFORANYERRORSOROMISSIONSHEREIN.Ii iet>ublicalion s is strictly lot subscribers own noncurmlercial. imemal use. 0 pall MImayhereprcriucedresold slofedotuansnlledinany pated. dedmnscololhef lomtofu lorgenefainqofmautelhg any pfimednfeledmnuc publication.service01prudent. 1 29.75 60.3% C om m 0nE U 9 200 8 Avg Annl P IE R a tio 36.5% I 37.0% Incom e Tax Rate 5.0% 3.25 Companys Financial Strength Stocks Price Stability Price Growth Persistence Eamings Predictability A44 95 20 70 To subscribe call 1800VALUELINE l TIMEUNESS 2 nwefen 10/14:16 SAFETY 2Lovle Bd9l 0l99 TECHNICAL 3 Luwae411n1/1s B E T A . 7 0 (1 . 0 0 M a ke () 1 1 401115 205 181 83873 2000 I 2001 32.78 32.95 45.5 32.9 area nMral es recessmn AnnITo1aI Price Gain Recur High 80 (+10% 6% Low 60 20% 1% Insider Decislons JFMAMJ J A s \0Buy 0 0 0 0 0 0 0 0 0 01 l¢°i1\% 2 0 0 2 0 1 2 2 0 t0Se I 0 1 0 0 0 0 0 0 0 Institutional Decisions loBby loll Hid 000 PRICE Hi g h : 43.7 42.4 L o w: 36.6 36.9 L E G E NDS 0:11 x Dmdcndssr sh d i Ne d b rlcmerc Rate Relalwe eSuengl h 01 441 27.8 38.6 26.0 42.0 34.2 45.5 34.6 50.3 43.3 54.4 44.7 63.4 45.6 65.6 49.9 76.4 59.5 Qsscslnlluh-I hllmmmn m i OW H " - § - - - Target Price Range 2019 2020 20 1 - " - 2 lllllll-I--I 202015 241 203 93877 Percent shares traded 26.65 30.85 34.53 41.66 39.11 21 I - - l 14 _ : 1 1lnlnmm}MHnmlmunllmlmnlnlrmrIln-lnlnnvmm1lmlmnumf l 7 WHTTITTMITTIIIIIIIIIIIIIIIIIIIIIIIIIIlllllll1IIIIIIIIIIIIIIIIIIIIIIIIIIII1llIIIIIIIIIIIIIIIIIIIIIIIIIIIHIIIHIHIIIIIIIIIIIIIIQ 2005 2006 - 39.61 3 45.16 34.35 36.10 33.95 31.63 31.88 34.70 30.65 28.65 4.56 4.95 5.28 7.43 568 5.73 5.85 5.63 5.91 6.01 6.30 6.53 6.91 6.70 6.80 2.12 2.15 2.38 2.50 2.67 2.78 2.59 2.74 2.95 2.85 2.98 2.97 3.15 3.39 3.79 3.81 4.00 1.15 1.20 1.30 1.38 1.46 1.56 1.68 1.76 1.84 1.a8 1.90 1.94 1.98 2.03 2.10 2.18 2.30 . 1 .1 7. 7.65 8 .I 7 1 1 .9 0 34.95 38.09 39.75 Y: 4.99 6.41 . 4. : . 20.95 19.64 20.82 21.78 104.73 110.83 110.74 Ilium 114.67 12.6 12.2 13.0 13.6 14.4 .as .67 .74 .72 .77 4.4%i 4.5% 4.2% 4.0% 3.9% 4. 1 .4 1 24.39 25.37 27.63 116.67 116.67 117.78 123.34 15.4 15.0 12.7 11.6 4 . 29.05 1 1 7.45 l 1 12. 29.94 31.47 .8 8 132.01 13.7 142.70 14.4 13.7 14.7 Bol dl l g son A vg A n n I P l E Ra t i o .76 .77 .82 .94 .81 .72 .75 5.7% 4 .9 % 4 .8 % 4.2% 4.2% 4 .1 % 3.9% CAPITAL STRUCTUREasof6/30/16 TotalDebt $7253 mil. Due in 5 Yrs $1900 mil. LTDebtse46amm. LT Interest $355 mil. (LTinterest earned: 3.4x) 4563.0 4621.0 5319.0 4237.0 4601.0 4409.0 4176.0 4495.0 4951.0 4380.0 306.0 327.0 353.0 357.0 376.0 387.0 420.0 471.0 538.0 544.0 2 6 .5 % 29.2% 35.4% 32.0% 29.8% 30.3% 30.2% 32.1% 31.6% 31.8% 32.0% 2.6% 4 .6 % 0.5% 1 4 .3 % 8.0% 5.4% 7.6% 8.7% 9.1% 7.7% 9.0% Leases, Uncapltalized Annualrentals$10 mil. 50.9% 48.4% 58.0% 55.8% 52.9% 54.5% 9.4% 53.5% 52.5% 51.9% LongTerm DebtRatio P e n si o n A S S GIS 1 2 /1 5 $781.7 m m . 4 7 .2 % Co m m o n E u p 4 0 .5 % 43.2% 4 7 .1 % 4 5 .7 % 4 5 .6 % 46.4% oblig$855.4mill. 5027.0 5952.0 7519.0 7891.0 7854.0 8511.0 9103.0 10059 Pfd Stock None 7007.0 7538.0 8305.0 9009.0 9662.0 10047 10896 11643 6.8% 73% 5.2% 6.1% 5.5% 5.2% 6.3% 6.2% Common$tock 142916917shs. 10.3% 10.6% 11.2% 10.5% 10.2% 10.0% 10.1% 10.1% as of 7l31l16 105% 108% 11.4% 10.2% 10.2% 10.0% 10.1% 10.1% MARKETCAP: $10 b1l1i0n (Large Cap) 3.8% 4.0% 4.4% 3.5% 3.8% 8.5% 3.0% 4.1% 55% 54% 52% 66% 63% 54% 61% 50% ELECTRIC OPERATING STATISTICS 2013 2014 2015 BUSINESS: SCANA Corporation is a hading company for South scwngem usaws Kwwm +.3 +4.7 .9 Avglndu$LU9e(MWHl1w" 81B0 NA NA Carolina Electric & Gas Company which supplies electricity to Avg.lnduslRsvs.per (¢l 7.27 NA NA 707000 customers in centralsouthern and southwestern South . Yeaiend M 5237 5237 5234 Caroina. Supplies gas service to 1.3 milion customers in North Pe a k wt' 4574 4853 4970 Carolina. South Carolina. and Georgia. Electric revenue break NA Nndloadfitbf( 2 58.8 NA %Oa lngeOmu +1.2 +1.4 +1.5 down: residential. 44%. commercial33%. industrial18%; Other l mesl trend] FlxedCha»Oov(% 293 307 323 ANNUAL RATES Past Pas( Es\'d '13'15 01change(hersh) 10 Yrs. yrs. to 1921 Revenues 1.0% 3.5% ni/ "Cash Flow 1.5% 3.0% 3.5% Eamings 3.5% 4.5% 4.5% Dividends 3.5% 2.5% 5.0% Book Value 5.0% 5.0% 5.0% 2012 2 013 2014 2015 2016 QUARTERLYREVENUES(Smil.) Full Mar.31 Jun.30 Se0.30 Dec.31 Year 1311 1016 1051 1117 4495.0 1590 1026 1121 1214 4951.0 1389 967 1068 956 4380.0 1172 905 1093 930 4100 1200 950 1000 1000 4150 EARNINGSPERSHAREA Full Mar.31 Jun.30 S: .30 Dec.31 Year 1.11 .60 .94 .73 3.39 1.37 .68 1.01 .73 3.79 1.39 .69 1.04 3.81 .71 4.00 1.23 .74 1.32 1.35 .80 1.25 .so 4.20 QUARTERLYDNIDENDSPAIDeI FUll Mar.31 Jun.30 s. .30 06€.31 Year .485 .495 .495 .495 1.97 4g5 . .508 .525 .545 507 . .525 .545 .575 507 . .525 .545 .575 507 . .525 .545 .575 S C A N A s e le c t r ic urili8f subsidiary r e c e iv e d a r e g u la t o r y decision f r o m t h e P u b l i c S e r v ic e C o m m is s io n o f S o u t h C a r o lin a . S o u t h C a r o lin a E le c t r ic 8 : G as is building tw o nuc lear units at the s it e o f it s nuc le a r pla nt . The fa c ilit ie s a re s c h e d u le d t o c o m e o n lin e in A u g u s t o f 2019 and 2020 w hic h is a de la y fro m t he o rigina l s c he dule . T he re ha v e a ls o b e e n cost o verruns. Ac c o rdingly SCE8¢G ex e r a s e d it s o p t io n t o f ix t he p r ic e o f t he pro ject at $ 7 .6 billio n w ith the co ntracto r 4 7 .4 % Value Llano ms ask/ Rel ati ve PIE Rati o A vg A n n I Di v d y i e l d Re ve n u e s($ m i l l ) 12175 14725 5.0% 10.0% 10.0% 4.5% 57% 12 8.25 4.75 280 .75 47.15 148.00 8 4750 720 Net Profr1 Sm i l l 3 2 .0 % In co m e T a x Ra te 1 0 . 0 % A F U D C % t 0 N e t P ro f rt 48.1% 10518 12232 5.5% 5.2% 10.8% 10.0% 10.8% 10.0% 4.9% 4.3% 55% 57% LG 32.00 lrzrnlnzznmm-1-a 4.9% .es 24 _ I E 29.00 Revenues persh 1.15 "Cash Flow" perch 4.20 Eamings per sh A 2.42 Divd Decld per sh a I apI pending per sh Book Value per sh c .00 4 9 .7 % .86 14. 33.08 - 4 .3 % 2015 32 % ro T . RE T URN 1 0 I 1 G mis VL IR1Tll sm c x n u cx 1 yr. 28.1 6.4 767 1 5 .1 3 yr. 1122 760 5 yr .83 2016 2011 Cal ender 48 40 " - 4 .2 % Cal endar 2013 2014 96 to 64 °~ 4.55 I Cal ender 2013 2014 2015 2016 2017 128 - - h- l-l -n -l m - -i -m- m - _i i l l l I 4.43 104.73 12.5 .81 48% l 1 - - $ 1 -- j -l -§ --Q- "- j- _ Q n:nn: - lnsnlllllnnHU-I!- 1 W1 6 255 172 95492 - _ 73.26 10 17.5(M:2:123) '§&L'R%E0.91180 3.360 VGL~'éE R EC ENT SCANACORP.NYSESCG Ra t i o 12725 TotalCapitaI(sum) 16450 Net Plant Smil 5.0% RetumonTotaICapI 10.0% RetumonShr.Equity 10.0% RetumonComE4up E 4.5% RetainedtoCom Et 57% AIIDivdstoNetProf 15600 19325 6.0% 1 0 .0 % 1 0 .0 % 5%. Generating sources: coal48% oil& gas 28%: nuclear 19% hydro. 3%: purchased. 2%. Fuel costs: 46% of revenues. 15 reported depreciationrate: 2.5% Has 5.800 anployees.Chairman CEO & President: Kevin B. Marsh. Incorporated: South Carolina. Address: 100 SCANA Parkway Carce South Carolina 29033. rei phone:8032179000.Internet:www.scana.com. ra t e r e lie f i n S o ut h C a r o lin a a n d N o r t h C a r o lin a , r e s p e c ti v e l y . Ea c h ut il tty needs rate relief. o r th e 1 2 m o nt h pe r i d t ha t e nde d o n . lu n e 3 0 t h S C E & G e a rne d a re t urn o n e quit y t ha t w a s m o re t ha n o ne pe rc e nt a ge po int be lo w t he a l lo w e d le v e l. F o r P SNC the gap w as m o re t ha n t w o pe rc e nt a ge po int s . SC E& G w a s gra nt e d a S4 .1 m illio n bo o s t a n d P S N C received a $19.1 millio n increase. based o n a 9 .7 % re t urn o n e q uit y . Ea c h inc re a s e to o k effect in No vember. re s p o n s ib le fo r a n y e x c e s s c o s ts . Th is o p R a t e r e l i e f s h o u l d p r o d u c e h i g h e r s o n w i l l r a i s e th e c o s t b y $ 8 3 1 m i l l i o n b u t p r o fi ts i n 2 0 1 7 . S C A N A s u ti l i ti e s a r e th e u ti l i ty r e a c h e d a s e ttl e m e n t w i th th e a l s o b e n e fi ti n g fr o m s tr o n g c u s to m e r c o m m i s s i o n s s ta ff a n d s o m e i n te r v e r \ o r s g r o w th . W e fo r e c a s t a p r o fi t i n c r e a s e a g r e e i n g to th i s a n d to a c u t i n th e a l w i th i n th e c o m p a n y s ta r g e te d r a n g e o f l o w e d r e tu r n o n e q u i ty i n B a s e L o a d R a te 4 %6 % a ye a r . N o te : W e r a i s e d o u r 2 0 1 6 Ac t ( BL R A s .e e. b e lo w .) c a s.. e s fr o m 1 0 . 5 % . to e s tim a te b y a n ic k e l a s h a r e th a n k s to a 10.25% beginning with filings made in h o tte r th a n n o r m a l s u m m e r a n d b o o s te d o u r 2 0 1 7 fo re c a s t b y th e s a me a mo u n t. re 2017. SCE82G was granted a rate hike under F leeting lower financing costs. the BLRA. This law provides annual rate T h i s s t o c k i s t i m e l y , b u t h a s a y i e l d relief to enable the utility to recover its th a t i s s l i g h tl y b e l o w th e u ti l i ty m e a n . 202 construction work in progress for the new W ith th e r e c e n t q u o ta tio n a b o ve th e m id . nuclear units. The $64.4 million increase p o in t o f o u r 2 0 1 9 2 0 2 1 Ta rg e t Pric e Ra n g e 2.08 2.16 will take effect in late November. to ta l re tu rn p o te n tia l is lo w. S CE &G an d PS N C E n erg y recei ved (A) Diluted egg. Excl. nor rec.gains (losses): due midFeb. (B) Divds historically paid in ear 00 28¢: 01.$3.00: 02.(53.7 ). 03. 31¢..04. Ly Jan. Apr.. July a Oct. u Divd reinvestment (23¢) 05 3¢ 06 9¢ 15. $1.41.13 EPS plan avail. (c Incl.if tang.In15: $13.55lSh. dontadd duets rounding. Next eamings repon (D)ln mil. tel Rate base: Netorig.oost. Rate Paul E. Debbas CFA allowedoncom.eq.inSC: 10.25% elec.in13. 10.25% gas in05; inNC: 10.6% in08 earned onavg.com.et..15: 10.6%.Regulatory Climate: Above Average. reserved. Factual matcfial is obl al ne¢410r2w1s SAFETY 2 RaisedIl29l15 TECHNICAL 2 Luleled 9f30t16 BOA .to u.o0ma¢u¢o High: 47.9 57.3 Low: 35.5 42.9 LEGENDS 0.97 x Dmden4sSr sh 63.0 34.3 57.2 36.4 57.2 43.9 56.0 44.8 72.9 54.7 93.0 70.6 l lQ 116.3 9 116.2 867 89.4 _ - - -=. -I-ii--ll!! v ' . * --' 0J FHAuJ J A tnBuy 0 0 0 0 0 0 0 0 0 09004 0 5 0 1 0 4 1 1 1 IOSQ1I 0 2 0 2 0 1 1 0 2 Institutional Declslons 24 16 8 Percent shares traded - - I H z ! ! 1 1 j l l T - - _ _ - - - -1 r nrm 1 ml'n1 n n1lnnln -ll l - r i u r l l i l 1HHHTHIHTIIIIIIIIIHIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIllHIIIIIIIIIIITIIHIW IIIIIIIIIIIIIIIIIIIIITIIIIIIIIIIIIIIIIIII1 2016 2 0 0 5l 2 0 0 8 2010 2 0 1 1 - l 3 Tar;et Prlce Ran e 20 9 2020 2021 114.7 86.7 - 1 j ( - - " Q - " -- n- n -- -Q -c AA2l m-IliumQ m - - -j mallulluunuullllm-lzanmnnm- -l l wmaaml- ..» l l : m m ;-»!_l _ ¢ - °.,,l.~ ..- I v 914491311 66.4 50.9 annum ">n\g~e Ra l f Rdanve e Suengh ans: Yes . . area sca l e s Ie ce ssn a n . AnnITotal Price Gam Return High 155 + 50% 13% LW 115 + 10% 6% Ins ider Dec is ions 402015 102415 20zu1s 10Buy 265 270 266 1050! 244 254 249 nor 000 185015 203184 199665 0 &1A`@¥ ggggr 105.06 2 25.8(M::2%§3)'é,E"RR%%1.40 DyVD SEMPRAENERGY NYSE-SRE -HEI!I 2017 200 160 100 80 60 50 40 30 20 % T OT . RE T URN 9 /1 6 nm aL ARlTN. sv c c x max 1 yr. 14.0 17.7 3 yr. 35.9 23.7 5 yr. 140.1 108.1 - - " -j "j - - l l l _ H E l 35.38 39.27 29.38 34.81 40.18 45.64 M89 43.79 44.21 32.88 37.44 41.83 3980 4318 44.80 41.20 39.05 4.91 5.39 5.71 5.56 6.58 5 % 5.74 6.93 7.40 7.94 7.76 8.58 8.92 8.87 9.41 10.32 9.20 2.06 2 M 2.79 3.01 3.93 3.52 4.23 4.26 4.43 4.78 4.02 4.47 4.35 4.22 4.63 5.23 3.80 ; 5 . 1 5 E a m l n g s p e r sh A 7.50 1.00 LW 1.00 1.00 1.00 1 .1 6 1.20 1.24 1.37 1.56 1.56 1.92 2.40 2.52 2.64 2.80 3.02 3 . 2 8 Di v ' d De c l d p e r sh B I 4.0o .s 11. 5 1 . :*: 12. 1 1 4 .1 5 10.30 45.98 47.56 4 1 .9 5 4 9 . 7 0 B o o k V a l u e p e r sh c 246.33 248.30 .7 . 12.35 13.17 . 201.90 204.48 9.4 .7 .6 1 .5 0 5.2% 3 4. 5. 4.62 EQEIEMIEM 13.79 17.17 20.78 23.95 .8 257.1 4.1% 8.2 9 .0 8 .6 .4 5 .5 1 .4 5 .6 3 3.7% 2 .9 % 2.8% 4.4% t 7. 28.66 T o t a I De b t $ 1 5 8 6 2 m i l l . Du e i n 5 y rs $ 6 7 6 9 m i l l g.°§?;3§178..1;.....11l;,1;8515566m1II. .4 32.75 zxau1zzam 243.3 11. CA P ITA L S TRUCTURE a s ¢ > f 6 1 3 0 I1 6 7.7 I 31.87 14.0 .74 11. .71 183 37.54 41.00 12.6 11.8 14.9 19.7 1 .9 1 .7 .6 7 .8 0 .74 .9 5 1.11 1.15 1.00 2 .1 % 2.6% 3.2% 3.1% 3.6% 3.7% 3.0% 2.6% 2.7% 10758 8106.0 9003.0 10036 9647.0 10557 11035 10231 9800 1118.0 1135.0 1123.0 1190.0 1008.0 1088.0 1079.0 1060.0 1162.0 1314.0 1010 1 1 3 .2 % 10.6% 1 1 .3 % 34.8% 63.7% 13071 14884 44.5% 54.2% 14692 16885 44.8% 54.1% 16646 18281 49.4% 50.4% 49.6% 49.2% 18186 20015 19878 23572 1 0 .3 % 9.6% 8.5% 8.3% 6.8% 6.7% 1 4 .5 % 1 3 .3 % 1 3 .8 % 1 3 .0 % 10.9% as of 7129116 1 4 .8 % 1 3 .5 % 1 4 .0 % 1 3 .1 % M A R K E T C A P : s2 6 b i l l i o n (M m e c a n ) 1 1 .0 % 9.7% 9.7% 9.3% 28% 29% 31% 29% Leases Uncapitallzed Annual renlals $71 mill. Pension AS$¢tS12l15 s2484 mlll. . . mu Stock$20mill. pfd nw'd08g. $ 9 mill. 8 1 1 0 7 3 sh e . 6 % cu m . $ 2 5 p a r. C o m m o n S t o c k 2 4 9 8 0 1 4 3 2 sh e . E L E CT RI C O P E RA T I NG S T A T I S T I CS peaumsxnw Le - ~ " *°°~*l %G\ar1geO:slnmas Wu) +.s 2014 2015 16.55 NMF NMF NMF 4688 17.58 NMF NMF NMF +6 +.7 ma n . cw. %1 307 288 295 lx ANNUAL RATES Past Past EStd1315 ofchan9e(pash) 10Yrs. 5 yrs. 101w21 Revenues .5% 25% 2.0% Cash Flsov\r 4.5% 1831; e7.0% Eamon 30% 0% Divider?ds 9:5% 12:0% 7.0% Book Value 8.5% 5.5% 3.0% 15.2% 29.5% 1 7 .2 % 11.2% 1 4 .4 % 15.3% 528% 46.7% 50.5% 49.4% 22281 25480 51.7% 48.2% 23513 25902 52.6% 47.3% 24963 2w39 6.1% 6.0% 6.1% 6.4% 5.0% 10.9% 1 0 .4 % 9.6% 1 0 .2 % 11.1% 0.0% 11.1% 11.0% 1 0 .4 % 9.6% 1 0 .3 % 11.1% 8.0% 7.0% 6.5% 5.1% 4.1% 5.0% 5.8% 1 .5 % 37% 41% 52% 58% 52% 48% 79% E81 BUSINESS: Sempra Energy is a holding co. fa San Diego Gas & Electric Company whip\ sells demdciw & gas mainly in San Diego County & Soul fan California Gas Company. which distributer gas to most d Souther California. Customers: 1.4 mill. electric 6.6 mill. gas. Elem. rev. breakdown: residenljal 41% commercial 42%. . . . . . n n d u st n a l 1 0 % o t h e r 7 % . P u rc h a se s m o st o f i t s p o we r t h e re a l a s S e mp r a E n e r g y i s i n ve s ti n g i n Me xi c o . The c ompany s Mexi c o subsi di ar y I Enova pai d $1. 1 bi lli on f or i ts par tner s 50% s ta k e i n a mi d s tr e a m g a s jo i n t ve n tu r e . I E n o va r a i se d th e f u n d s th r o u g h a $ 1 . 6 bi lli on sale of c ommon stoc k. Separ ately IEnova is spending $1 billion on r enewableener gy pr ojec ts and has bi ds 14.50 Ca sh Fl o w" p e r sh a p I S p e n d i n g p e r sh 1 1 .2 5 54.75 -I-IIZZEI sou figures an Avg AnnI PIE Ratio VIIu09 Lim Relative PIE Ratio ostl Les Avg Annl Divd Yield 11438 1 1 .5 % 4 8 .2 5 1 0 .9 5 251.00 2 253.00 11761 7.2% WH(¢l 24446 10.1 37.0% 61.4% 12229 13175 Avg. 242.37 31.3%33.6%29.2%30.5%26.5%25.3%18.2%26.5%19.7%19.2% (LT interest earned: 3.4x) 2013 4273 13.10 NMF NMF NMF l898~ 3 9 . 9 0 Re ve n u e s p a r sh 21.0% 10100 Revenues ($mill) 1410 Net Profit Smlll 29.0% Income Tax Rate 11.0% AFUDC %to Net Profit Eauaa 11650 1950 28.0% 8.0% L o n g T e rm De b t Ra t i o 58.0% Co m m o n E u p 42.0% Ra t i o 25975 27375 T otal Capi tal ($m l l I) 31600 30250 3 1 3 7 5 Ne t Pl a n t Sm a l l 34600 Return on Total CapI Return on Shr. Equity Recur on Com E up Retained to Com Eq All Divds to Net Prof 7.5% 1 4 .0 % E 14.0% gas. Has subs. in gas pipeline a storage power generation. a li quefied natural gas. Sold commodities business in 10. Power costs: 37% d revs. 15 reported depress. rates: 2.7%5.7%. Has 17400 employees. Chairman and CEO: Debra L. Reed. President: Mark A. Snell. Inc.: CA. Address: 488 8th Avenue San Diego. CA 92101. Tel.: 6196962000. lnlemet: www.sempra.com. per i od. I n the thi r d quar ter Sempr a sold its gas utilities in the Southeast for $323 million. ll expects to record an aftertax gain of about $70 million. Also in the third period. the company paid $22 million for a wind farm that is under development in Mi c hi gan. Despite a probable bottomline down Mar.31Jun.30Se.30Dec.31 Year pending for an electric transmission turn in 20 lG Sempras ion?term prospr ojec t ( esti mated i nvestment of $1. 2 bi l sects for earnings growth \ arc good. 2013 2650 2651 2551 2705 10557 27g5 2678 2815 2141 11035 li on) and a gas pi peli ne ( esti mated i nvest The aforementioned $123 million loss is a 2014 2682 2367 2481 2701 10231 went of million) . 1Enova is also sell negative factor in this years results. How 2015 2622 2156 2422 2600 9800 i n a g a s li r e d p o we r p la n t b u t wi ll h a ve ever Sempras nonutility investments will 2016 2017 2700 2200 2550 2700 10100 to take a nonrecurring charge estimated at boost the companys earning power and Cal $0.16$0.29 a share against thirdquarter th e i n c o me o f i ts u ti li ti e s r i s e s a s th e i r EARNINGS PERSHARE A Full Cab QUARTERLY REVENUES (S mill.) Fu l l ender ender Mar.31 Jun.30 Se .30 Dec.31 2013 2014 2015 2016 2017 Cal ender 2012 2013 2014 2015 2016 .54 .99 1.74 1.47 1.75 1.46 1.08 1.03 .06 1.05 1.09 1.39 .99 .97 1.00 1.13 1.18 1.47 1.30 1.35 QUARTERLY DNIDENDS PAID B I Mar.31 Jun.30 Sel .30 Dec.31 48 ..60 .63 .66 .70 .60 .63 .66 .70 .755 .60 .63 .66 .70 .755 .60 .63 .66 .70 .755 Year r esults bec ause the f ac i li ty s mar ket value 4.22 is below its book value. r ate base expands. Most notably however a project to turn a liquefied natural gas 4.63 The company has had some transac- import terminal to an export facility is on 5.23 sons in the United States too. In the budget and on schedule for completion in 3.80 sec ond quarter Sempra completed the sale 2018. Net profit from this is projected at 5. 15 of i ts 25% stake i n the Roc ki es Expr ess $300 million$350 million in 2019. the first Full pi peli ne r ai si ng $443 mi lli on i n c ash. Re full year of operation. Year lated to the sale. the company booked a Sempra stock offers strong dividend 228 $123 mi lli on af ter tax loss (inc luded i n our growth potential over the 3 to 5-year ear ni ngs presentation) i n the quar ter period. This should produce a longterm 2.49 2.61 stemmi ng f r om the per manent r elease of total return that compares favorably with 2. 76 pi peli ne c apac i ty . I t had alr eady taken a other utilities. $27 mi lli on af ter tax wr i tedown i n the f i r st Paul E. Debbas CFA October 28.20]6 (A) Dif EPS. Excl. nor rec. gains (10SS8S)2 05 17¢; 06 16¢); 09 (26¢) 10 (s1.05): 11 05 (4¢) 06 $1.21 07 (10¢) 14 EPS dont $18.11lsh. (U) In mm. (E) Rate base: net orig. sum duetorounding.Nexlegs.due early Nov. cosLRate allowed on com.eq.:SDG&Ein13: $ 1 . 1 5 . 1 2 (9 8 ¢ ) 1 3 ( 3 0 ¢ ) 1 5 1 4 ¢ 1 6 (2 0 ¢ ) g a i n (l o sse s) f ro m d i sc . o p s. : 0 4 (1 0 ¢ ); 9 ) Di vd s p a i d m i d Ja n . A p r. Ju l y & O rt l 1 vd re l n v. p l a n a va i l . (C) In cl . t a n g . I n 1 5 : 1 0 . 3 % . S o Ca I G a s i n 1 3 : 1 0 . 1 % h a m . o n a vg . co m . e q . 1 5 : 1 1 .2 %. Re g u l . Ch o ra l e : A ve ra g e 5 2016 Val ue Li ne he. AI 99" reserved. Facl ud m ateri al i s obtai ned l oom sources bel i eved l o be refabl e and i s. provk1e4 wi hcul wanal ti es 01 m l , kind. T HE PUBLISHERIS NOT RESP NSIBLE FORANY ERRORS OR OMISSIONS HEREln.ll8J>ub1Icau0n1s stncllylor subscrlbersavrnnon4nmmerclallr\emal use. o p e n oinmaybereprosiuced. resold stored or uansmtteOn aty pruned e ecuon c 0rctherl0 m cru 101 generating or manuelngawpfmledofelearonlc wbhcalwn serve 01 product Compings Financial Strength Stocks rice Stability Price Growth Persistence Eamings Predictability A 100 85 90 To s u b s c ri b e c a l l 1 8 0 0 V A L UE L INE R EC ENT VECTREN CORP. NYSEWC High; 29.5 29.3 Low: 25.0 . 25.2 LEGENDS 1.00 x DnmiendsSr sh TIMEIJNESS 3 1uwefe¢17122116 s A t£rv 2 Lwe¢e4v5101 TECHNICAL 1 Rai§ed 8I19lI6 BETA 1 E 0v J 30.5 24.8 A n n I T o ta l Price Gain Return High so ( +20% 8% Low 45 10% 1% Insider D ecisions N D J F H A M J J RAn0 20.0 49.79 PIE 322 19.5 26.9 18.1 27.8 21.7 30.7 23.1 30.8 21.5 22.2 RELAT NE 16.0 PIE RATIO 37.9 29.5 48.3 34.6 1.06 49.5 37.3 D N' D Y LD 3.3% 53.3 39.4 VALUE LINE Target Price Range 2019 2020 2021 _mn: - - -m- - - - - - - - " 128 - -- -- - _ l l !_ -- iiiiiiiiil n1-4 § - 2 " * W U l E-H- -- _- - -- -l " - dmdea h llrlere Rol e . R da we Ce Suenglh °3y*°'=: Yes . Q dad area mdacales recessmn .75 (1.00 M a rkd ) I PRICE 2 - § 96 80 64 - j j llm m - - pa 40 32 - 24 [0BIly 010000000 09ll01\S 0011000000 to Se ll 000000000 Institutio nal De cisio ns ,¢ 16 u *»* * 12 % TOT. RETURN ans HI S VL Amy sw c x IIJEX 401015 i w i s zozois Per cent 12 _ - l l 1 ] l 1 l l l l l l 1 I 25.8 10.9 I1llm l M j n n l 1 I I 1 " l 9 Q 1 yr. B 110 153 15 671 3 yr. 29.8 lmlunllnnlmnllllllllllllnlllnnlunllmlllmlmnlllllllnllllnnllllmlllnllmlnlnllllllllllllllmll §3551 131 111 113 haded shares 8 4 5 yr. 1 1 8 1 84.5 H ld 000 50862 53480 52315 1111111111111111111111111111111111111111111111111111111111111111111111111\111111111111111111111111111111111111111111111111111111 2007 2008 2009 2010 2017 @VALUE UNE PUB. LLC V e c tr e n w a s fo r me d o n M a r c h 3 1 2000 th r o u g h th e me r g e r o f I n d i a n a E n e r g y a n d 30.67 25.76 2606 2 8 8 9 2 7 1 6 30.23 31 .62 2 9 4 0 28.50 30.95 Rev enues per sh 2 6 .8 3 29.88 S I G C O R P . T h e m e r g e r w a s c o n s u m m a te d 4.29 3.97 4.40 4.44 4.71 5.03 5.03 5.33 548 5.55 6.15 "Cash F lan" per sh 3.69 w i th a ta x fr e e e x c h a n g e o f s h a r e s a n d h a s 1.44 1 .8 3 1.63 1.79 1.65 1.73 1.94 1.66 2.02 2.39 245 2.65 Eamlngs per ch A 1.70 D iv 'd D ecl'd per ch 9"1 b e e n a cco u n te d fo r a s a p o o lin g o f in te r e sts. 1.23 1.27 1.31 1.35 1.37 1.39 1.41 1.43 1.48 1.54 1.62 4.Hi 5. . 4.4 4. 6.00 6.45 C apl pending per sh In d ia n a En e r g y o 0 mmo n s to c k h o l d e r s 3.70 5.7 21.55 22.90 Book Value per ch c r e c e i v e d o n e V e c tr e n c o mmo n s h a r e fo r 1 5 .4 3 16.68 17.23 17.61 17.89 18.57 18.86 2034 84.00 C ommon Shs 0uts1g e a c h s h a r e h e l d . S I G C O R P s to c k h o l d e r s 76.10 76.36 81.70 81.90 82.40 82.60 8 2 8 0 I .7 0. I 17. Sou ng s an Av g AnnI PIE R atio e x c h a n g e d e a c h c o m m o n s h a r e fo r 1 . 3 3 3 18.9 15.3 16.8 1 .g 15.0 15.8 15.I Val ' J" ° Relative PIE Ratio c o mmo n s h a r e s c f V e c tr e n . 1.02 .81 1.01 .86 .95 .9 9 .95 1.16 1.05 .9 1 4.5% 4.8% 5.9% 55% 5.1% 4.8% 4.2% 3.6% 3.6% °"' "" Av g AnnI Div d Yield 4.5% CAPITAL STRUCTURE as of 6/30/16 r3uinwzlrml@mE§IaEma lamlanl l m: IW M Total Debt $1758.7 mill. Due in 5 Yrs $350.0 mm. LT Debt $17115 mill. LT Interest $84.0 mm. (LT interest earned: 4.4x ) : ml . 38.95 8.00 3.35 1.95 86.00 15.0 .95 3.9% 2600 Rev enues ($miII) 2041.6 2281.9 2484.7 2088.9 2129.5 22323 2491.2 2611.7 2434.7 225 Net Pr ofit Smile 108.8 143.1 129.0 145.0 133.7 159.0 136.6 1 6 6 .9 197.3 32.7% 33.6% 35.0% income Tax Rate 21.8% 34.7% 37.1% 26.5% 35.8% 37.9% 34.2% 4 .1 % 4.0% 4.0% iAF uoc v . lo Net Profit 3.8% 2.8% 2.9% 4.1% .. .. .. Pension Assets12/15 $296.9 mill. 49.096 Oblig. $348.3 mill. 50.7% 50.2% 48.0% 52.4% 49.9% 51.6% 50.4% 53.3% 4 6 .7 % 50.6% 50.0% 49.5% LongT er m Debt Ratio Pfd Stock N one 51.0% 49.3% 49.8% 52.0% 47.6% 50.1% 48.4% 49.6% 461% 53.3% 4 9 .4 % 50.0% 50.5% C ommon E u R atio 4400 2382.2 2479.1 2599.5 2937.7 2874.1 3079.5 3331.4 3013.9 3406.6 3600 3825 Tcx al Capital ($mill) 4450 2385.5 2539.7 2720.3 2878.8 2955.4 3119.6 3224.3 3439.0 4089.5 3850 4000 N et Plant Smill C ommon Stock 82.835.860 she. 7.5% 6.0% 7.2% 6.5% 6.3% 6.1% 6.2% 6.4% 5.4% 6.8% 7.0% 7.0% 7.0% ;Return on Total Cap'I a s of 7129116 1 3 .0 % 9.3% 11.6% 9.5% 10.4% 9.3% 9.7% 10.4% 8.8% 1 0 .4 % 1 1 .7 % 1 1 .5 % 11.5% .Return on Shr. Equity MARKET CAP: $4.1 billion ( Mid Cap) 9.3% 11.6% 9.5% 10.4% 9.3% 9.7% 10.4% 8.8% 1 0 .4 % 1 1 .7 % 1 1 .5 % 11.5% 3 Retum on Com E up E 13.0% 4.5% Retained to Com Eq 1.3% 3.8% 2.0% 2.6% 1.6% 1.9% 2.9% 1.2% 2.9% 4.2% ELECTRIC OPERATING STATISTICS 2013 2014 2015 63% All Div 'dsto Net Pr of 86% 67% 80% 75% 83% 80% 73% 66% 72% 65% +. 3 +2 .0 2.4 ) BUSINESS: Vectren is a holding company formed through Me commer cial 23% ; other 10% . N onutility oper ations include Infr a NA NA NA NA N A merger of Indiana Energy and SIGCORP. Supplies electricity and str uctur e Ser v ices and Ener gy Ser v ices. Estd plant age: electr ic. 9 AS in NA 1407 1384 1 3 5 7 go to an area nearly twothirds of the stale al Indiana. Owns gas y ear s. 15 depr eciation r ole: 4.2% . H as about 5.600 employ ees. Pe&l.oadSurlfrlef£M) 1102 1095 1088 distribution assets in Ohio. Has a customer base exceeding 1.1 mil C hair man Pr esident a C EO: C ar l C hapman. Incor por ated: Indi Arl\1dLoa4 Fxbl( 2 NA NA NA +. 6 +. 6 +. 7 lion. 2015 Electricity revenues: residential 36% commercial 27% ana. Address: One Vectrat Square. Ev ansv ille. Indiana 47708. Tel '/»Grange Cuslumas yrendl industrial 34% other 3%. 2015 Gas revenues: residential 67% ephone: 8124914000. Inter net: www.v eclr en.com. FlxedCha Cov.(%) 380 363 428 Sh a r e s o f Ve c tr e n h a v e p u l l e d b a c k i n ward e s p e c i al l y at the g as uti l i ty o p e ra AN N U AL R AT ES P a s t P a s t E s fd 1 3 1 5 p r i c e s i n c e r e a c h i n g a n a l l t i m e h i g h ti o n . Th e E n e r g y S e r v i c e s l i n e a n d th e In d change (per sh) 10 Yrs. 5 Yrs. to 1 9 2 1 Rev enues 2 .5 % 2 .0 % 4 .0 % e a r l y i n t h e s u m m e r . T h e c o m p a n y fras truc ture S e rv i c e s d i s tri b uti o n b us i ne s s " C a sh F lo w 4 .5 % 4 .5 % 7.0% r e p o r te d u n i m p r e s s i v e o v e r a l l r e s u l ts fo r s h o u l d a l s o p e r f o r m w e l l . T h a t s a i d t h e E a mi n g s 2 .5 % 3 .5 % 9 .0 % th e s e c o n d q u a r te r . R e v e n u e s a n d s h a r e I n f r a s t r u c t u r e S e r v i c e s t r a n s m i s s i o n l i n e D iv idends 2 .5 % 2 .0 % 5 .0 % o p e rati o ns wi l l p ro b ab l y c o nti nue to e x p e Bo o k Va lu e 3 .0 % 2.5% 5 .0 % e a r n i n g s b o th d e c l i n e d o n a y e a r o v e r y e a r b a s i s . T h i s wa s d u e to we a k n e s s o n ri e nc e c hal l e ng e s re l ate d to i nc re as e d c o i n QUARTERLY REVENUES (s mill.) F u ll Cab th e n o n u tility s id e . T h e In fr a s tr u c tu r e p e ti ti o n i n th e n e a r te r m . E v e n s o th e ender M a r . 3 1 Ju n . 3 0 s . . 3 0 D e c. 3 1 Year lo ng te rm o utlo o k is s o me what b rig hte r S e r v i c e s tr a n s m i s s i o n o p e r a ti o n h a s e x p e 2013 700.6 531.0 579.6 6 8 0 . 0 2 4 9 1 . 4 r i e n c e d g r e a te r c o m p e ti ti o n i n i ts p r i m a r y h e r e a s u p c o m i n g p i p e l i n e p r o j e c t s s h o u l d 2014 796.8 542.5 595.6 6 7 6 . 8 2 6 1 1 . 2015 706.2 551.0 573.5 6 0 4 . 0 2 4 3 4 . a r e a o f p i p e l i n e m a i n t e n a n c e w o r k . T h i s s e r v e t o r e d u c e c o m p e t i t i v e p r e s s u r e s . Th e h a s r e s u l te d i n l o we r m a r g i n s a n d fe we r c o m p a n y h a s a f f i r m e d i t s c o n s o l i d a t e d 2016 584.8 533.7 610 651.5 2380 € 3 ITl i I1 F s u i d a n ( e o f $ 2 . 4 5 t o $ 2 . 5 5 p e r 2017 650 600 650 700 2600 j o b s b e i n g wo n . I n t h e p l u s c o l u m n t h e I n fr a s tr u c tu r e S e r v i c e s d i s tr i b u ti o n b u s i n e s s s h a r e o r a l l y c a r 2 0 1 6 . O u r e s t i m a t e l i e s EARNINGS PER SHARE A F u ll Cal at the l o w e nd o f thi s rang e . endar M a r . 3 1 Ju n . 3 0 S . . 3 0 D e c. 3 1 Year a n d t h e E n e r g y S e r v i c e s l i n e r e p o r t e d s o l i d p e r fo r m a n c e s . M o r e o v e r s tr o n g r e - W e e x p e c t s o l i d g r o w t h i n r e v e n u e s 2013 .61 d.07 .52 .60 1.66 a n d e a r n in g s h e r e o ve r th e p u ll to 2014 .62 .14 .57 .59 2.02 s u l t s f r o m t h e u t i l i t y s e g m e n t a l s o p r o 2 0 1 9 2 0 2 1 . M o r e o v e r V e c tr e n e a r n s g o o d 2015 .69 .43 .48 .79 2.39 v i d e d s u p p o r t t h a n k s t o c o n t i n u e d i n v e s t .58 .39 .63 .as 2.45 m e n t i n t h e g a s i n f r a s t r u c t u r e p r o g r a m i n m a r k s f o r S a f e t y F i n a n c i a l S t r e n g t h a n d 2016 E a r n i n g s P r e d i c ta b i l i ty . V o l a ti l i ty i s b e l o w 2017 .62 .45 .68 .90 2.65 I n d i a n a a n d O h i o a n d e f f o r t s t o c o n t r o l a ve r a g e to o ( B e ta : . 7 5 ) . H o we v e r th e QUARTERLY DNIDENDS PAID 1 F u n c o s ts . Cab s to c k s p r i c e to e a r n i n g s m u l ti p l e i s s o m e ender M a r . 3 1 J u n . 3 0 S . 3 0 D e c . 3 1 Year W e e n v i s i o n m o r e f a v o r a b l e e a r n i n g s c o m p a r i s o n s f o r t h e b a c k h a l f o f t h e wh a t g r e a te r th a n th e h i s to r i c a l a v e r a g e . 2012 .350 .350 .350 .355 1.41 y e a r a n d f u r t h e r i m p r o v e m e n t f r o m a n d l o n g te r m to ta l r e tu r n p o te n ti a l i s n o t 2013 .355 .355 .355 .360 1.43 2 0 1 7 o n wa r d . V e c t r c n s u t i l i t y b u s i n e s s e s c o m p e l l i n g a t th i s j u n c tu r e . P a ti e n t i n v e s 2014 .360 .360 .360 .380 1.46 r e m a i n we l l p o s i ti o n e d i n th e i r In d i a n a to r s m a y wa n t to wa i t fo r a m o r e a ttr a c 2015 .380 .380 .380 .400 1.54 a n d O h i o t e r r i t o r i e s a n d w e e x p e c t g o o d fi v e e n tr y p o i n t. 201s .400 .400 .400 p e r f o r m a n c e wi l l c o n t i n u e h e r e g o i n g f o r M ichael Na/Juli CPA .September IN. 2016 (A) Diluted Eps. Excl. nonrecur. gain (loss): vest. plan avail. 1 Shareholder invest. plan equity range from 10.15% to 10.4%. Regu C o mp a n y 's F in a n cia l Str e n g th A 09 15¢. Next egg report due early November. avail. (C) Incl. inland. In 15 $6.66/sh. (D) In oratory Climate: Above Average. S to cks P r ice S ta b ility 95 (B) Dwds historically paid in early March millions. (E) Electric rate base determination: Pr ice Gr ov nh Per sistence 70 June September and December. lDivd rein fair value. Rates allowed on elect. common Ea r n in g s Pr e d icta b ility 80 o 2016 Vahze Line Inc. Q g w Factual malenal is s our c e s be lo v e d w a rra rlie s d " kind. W W % . Al l 1 e se ¢ v e 4 . o b ta i n e d fr o m to be reliable Ana is provided w i th o u t rH P UB US HE R i s n o r RE S P N sisL£ FOR ANY ERRORS OR OMISSIONS HEREIN. r i r m x a i i m s s m n n tor subscribers own noncorrunefcial. irtemal use. o pan T o s u b s c r i b e c a l l 1 8 0 0 V A L U E L I N E di l n1aybereol oduced1esdsl .sl oi edol l 1ari sm l l edi nany pi eddecuom cof cl hal o¢m .ofu lot geiieralngolmarkeunq any pnmedoldeclronn: puliicaliun. ser lire a product ggfggf 55.28 £114 21.9(W::x WESTAR ENERGY NYSE-WR High: 25.0 27.2 Low: 21.1 20.1 LEGENDS 080 x DmdeWsSr sh TIMEUNESS - Suspe1ded 6l10l16 SAFEW 2Raised4lIA)6 TECHNICAL -Sll§pe1ded 6I10I15 as .70 [1.00Marke1) divi6ed b nln!e1e R a e R W Ce SllengM o ng: es E¢"»3.»¢ area indicates recession uazow 10816 10Buy 171 168 10$el 117 167 nor 000 100287 100238 292016 218 174 99811 2000 I 2001 2003 mm -- 22.3 14.9 25.9 29.0 20.6 1 22.6 - "f 1 -- 33.0 26.8 -- *s5#.n1s1.16 43.2 31.7 35.0 28.6 44.0 33.9 2.7% 57.2 40.0 3 u mn m nnusu-ma a Percent shares traded l 2004 umn wmw l z - - ."* * an 4. 9 12 24 16 _ - I I n m I I n 1 1 - - 1 i n § j _ j i l l 8 j \ 1 -lllllmllnlnllllullllllllllllnlmnnlnmmlnlnlllnlln nrlun lnm n m mn1 _ IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMIIIIIIIIIIIHIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII- anaanima 17.02 18.23 18.37 18.09 16.98 17.04 18.34 17.27 17.88 18.48 19.76 17.40 18.20 6.96 5.32 4.77 3.77 3.12 3.28 3.94 3.77 3.14 3.59 4.24 3.97 4.30 4.41 4.55 4.26 4.70 .8 9 d .5 8 1.00 1.48 1.17 1 .5 5 1.88 1.84 1.31 1.28 1.00 1.79 2.15 2.27 235 2.09 2.45 1.44 1.20 1.20 .8 7 .8 0 .9 2 .9 8 1.08 1.16 1.20 1.24 1.28 1.32 1.36 1.40 1.44 1.52 4.4 I .3 7 1 .8 9 .1. .1 . 5 7. ::¥. 6.47 4.96 7.45 70.0 70.08 20.6 l m! .. 14.0 14.23 1 6 .1o3 17.62 19.14 86.03 8 86.84 72.84 1 10.8 87.39 95.46 108.31 17.4 14.8 12.2 .66 4.3% 14.1 .75 4.2% 17.I 1.02 5.2% 1.34 .. Je .6 2 .9 2 .7 9 7.9% 5.8% 8.6% 5.5% 3.9% 4.0% CA P I T A L S T RUCT URE a s of 6130116 T o ta l De b t $ 3 7 1 6 5 m i l l . Du e In 5 Y rs $ 8 0 0 m i l l . L T De b t $ 3 3 8 7 1 m i l l . L T In te re st $ 1 4 5 .0 m i l l . (L T i n te re st e a rn e d : 4 .2 x) Pension Assets 12/15 $654 mill Oblig. $864 mill. Pfd Stock None Common Stock 141 .353426 she. MARKET CAP: s1.a billion (Large Cap) ELECTRIC OPERATING STATISTICS 2013 2014 + 35 +1 .5 I 5407 5747 Avg lr\iu3 8 : WH(¢) 6.47 6.72 6671 6698 Peak Load. S. nrlrns 4vr) 5489 5226 55.9 56.2 Ame Load Face( I % Orange Cuslumefs ywxl) +.2 +.2 ? W" FxedChar Coy. %l ANNUAL RATES Past of change (vet sh) 10 Yrs. Revenues 2.5% "Cash Flow 5.0% Eamings Dividends 5.0% Book Value 5.0% Cal endar 2013 2014 2015 2016 2017 Can ender 2013 2014 2015 2016 2017 Cab ender 2012 2013 2014 2015 2016 323 332 330 Past E s t d '1315 5 yrs. to '1921 1.0% 2.5% 4.0% 4. 5% 9.0% 6. 0% 3.0% 3. 0% 4.0% 5.0% QUARTERLY REVENUES (S mill.) Mar.31 Jun.30 5 . .30 Dec.31 546.2 628.6 590.8 569.5 590 2370.7 2601.7 2459.2 2595 2680 EARNINGS PERSHARE A Mar.31 Jun.30 Se .30 Dec.31 Full Year 2.27 2.35 2.09 2.45 2.55 .52 .40 .46 .51 .48 695.0 764.0 732.8 765 785 Full Year 559.9 596.4 546.0 639.1 665 .40 .52 .38 .46 .53 569.6 612.7 589.6 621 .4 640 2015 2.5 5654 6.68 6772 5167 56.1 +.2 104 1.10 .97 1.03 1.10 .31 .33 .28 .45 .44 QUARTERLY DNIDENDS PAID 5-1 Mar.31 Jun.30 Se .30 Dec.31 .32 .33 .34 .35 .33 .34 .35 .36 .33 .34 .35 .36 .33 .34 .35 .36 Full Year 1.31 1.35 1.39 1.43 1605.7 165.3 25.4% .. 50.0% 49.3% 3124.2 4071.6 6.7% 10.6% 10.7% 5.5% 49% . 109. 7 14.9 .99 6.3% 1726.8 1839.0 1858.2 168.4 136.8 141.3 27.5% 24.8% 29.4% 10.4% .. .. 50.6% 49.8% 53.4% 48.9% 49.7% 46.1% 3738.3 4400.1 4866.8 4803.7 5533.5 5771.7 5.8% 4.2% 4.4% 9.1% 6.2% 6.2% 9.2% 6.2% 6.3% 4.3% 1.2% 8% 53% 80% 87% 22.03 112.13 13.0 .83 5.3% 125.7 14.8 .93 4.8% 2056.2 2171.0 203.9 214.0 29.0% .. 53.6% 49.5% 46.0% 50.1% 5180.9 5531.0 6309.5 6745.4 5.5% 5.3% 8.5% 7.7% 8.5% 7.7% 3.1% 2.7% 63% I 65% W _ - 24115134132017 2010 2011 20.06 . 24 20 16 - 24.77 13.68 120 100 a0 64 48 i- -I U" 32 mmm 31.20 25.97 Target Price Range 2019 2020 20 1 _ - "- I2 N- 33.80 27.20 VALUE LINE - -nre__ - -m _m if unl i 1:l :::::::l g_ l_ !. .!. -. .ll-n-n n u W - - - - -- m "-- I- - -I - I l h h l i l- l-l _ _ - .w AnnITotaI Price Gain Recur High 55 Ni l 3% Low 40 3 % 4% Ins ider Dec is ions N D J F u A M J J t4>Buy 0 0 0 0 0 0 0 0 0 Ondans 1 016 8 0 0 0 0 0 108011 2 0 0 0 2 0 0 0 0 Ins t it ut ional Dec is ions 28.6 22.8 24.9 14.0 .4 I 22.89 . .» : 23.88 25.02 25.87 la w 128.25 131.69 141.35 13.4 .es 4.6% 14.0 .79 4.3% 15.4 .81 3.9% 2261.5 275.1 30.9% .. 51.2% 48.8% 5938.2 7335.7 6.0% 9.5% 9.4% 4.0% 57% 2370.7 292.5 33.1% .. 50.0% 50.0% 6131.1 7848.5 6.1% 9.6% 9.6% 4.2% 56% BusinEss: Westar Energy Inc. formerly Western Resources is the parent of Kansas Gas a Electric Company Westar supplies electricity to 700.000 customers mostly in Kansas. Electric revenue sources: residential and rural. 39%; oommerdal and business 33%: industrial 28%. The company sold its investment in ONE OK in 2003 and 85% ownership in Protection One in 2004. 2015 % T OT . RET URN BIIG THB VL ARI T H . sro c x 1 m c x 1 yr. 55.6 10.9 3 yr. 98.0 29.8 5 yr. 153.4 a 4 .5 9 _[gg- 16.35 Revenues per sh 4.85 Cash Flow" perch 2.55 Eamings perch A 1.60 Divd Decld perch 81t apI pending per Book Value per sh c .0H lam 60 26.15 l s 1 9 .1 5 5.45 3.05 1.84 . o l 30.75 14 18.5 Boldflg Sm AvgAnnIPlERa1io .94 Val Llm Relative PIE Ratio 3.7% es t / " " AvgAnnIDivdY1e1d 2601.7 24592 313.3 291.9 31.9% 33.5% 10.4% 10.0% 50.0% 47.5% 50.0% 52.5% 6596.2 6958.8 8441.5 8793.1 6.0% 4.2% 9.5% 8.0% 9.5% 8.0% 4.3% 2.9% 55% 69% 30.0% 10.0% M 6900 0600 8 2680 Revenues (small) 375 NelProfrt $MiII 30.0% Income Tax Rate 10.0% AFUDC%toNetProf1l 50.0% LongTerm Debt Ratio 50.0% CommonE» u Ratio 7000 Total Capital (sum) 0700 Net Plant $mill 5.0% Return onTotalCapl 9.0% Retumon Shr.Equity 9.0% Return on ComE u D RetainedtoCom Eq AllDiv'dstoNetProl 2965 475 30.0% 1 0 .0 % 50.0% 50.0% 7500 9000 6.0% 10.0% 1 0 .0 % depreciation rate: 4.0% Estimated plant age: 17 years. Fuels: coal 44%: nuder 8%: gas. 33%. renewable 15%. Has 2330 employ hes. CEO and President: Mark A. Ruelle. Chainman: Charles Q. Chandler. Incorporated: Kansas. Address: 818 South Kansas Ave hue. Topeka. Kansas 66612. Telephone: 7855756300. Internet: www.westarenergy.oom. T h e $ 8 . G b i l l i o n ta k e o v e r o f W e s ta r U ti l i ti e s th a t h a v e fa c e d s i m i l a r i n q u i r i e s E n e r g y b y G r e a t P l a i n s E n e r g y h a s i n r c c c r i t y e a r s h a v e h a d to o ffe r u p c o n c o m e u n d e r i n te n s e r e atory ce o ie nsssesso urcshweaestend se tindgealfcoerrctu aisn ny.Theagreementcalslg oul rW cslarscrut sharei b usssin iniv geth holderstoreceiveS60(85%incash15%intamers.togettheiragreementsratified. stock)foreachoftheirshares.TheMis Ratherthanthecompaniesgoingthrough so be licS en rvsicaecC issldiob ne(M otw rao ctu eld db lee ga lbiln ag ttletow thin nn d b eu liervsePsuth tra tioonm shm ou suPbS jeC c)t a Gp XrP w ce om pk roW mR iseao toh thileeG arpepartoPvlaain losfE Mnisesrogu ire lasto certw ain su ithsh thoeucldop m ioa nt.teEnith w yrh ag su as errs te.d ayisin ve es stw ors aym cloissse tioenr thatitonlyneedspermissionfromthetotheactionsthattheMPSCundertakes K aend se as C ohrp oM raPtio nCChoam m issie on totcslo soengn ilyth e seucbosm eqp ua en tyw e e ks.edits20lGearntahg a l . T e S s c o m o u t r T h n a f f i r m ainst themerger describingit as inksguidance.Itcontinuestoanticipate "cd e trim misesniotn alh toatshaelso pu b lic intth ea re sbta ."sT h e fu2ly.5 ea r.W sha rh eanveetroafisbeedtw eree ns$ 2.a 3t8 an d o m s t a t e d t . e d o n $ 3 e o u t i m e b y a cteucrh rennictaM i s s o u r i l a w W e s t a r E n e r g y i s n i c k e l t o $ 2 . 4 5 a s h a r e t o r e f l e c t l o w e lya"publicutiltywhichmeans fuelcostsandgreaterthancxpcctodsavr thecommissioncanclaimjurisdictionand inksfromongoingcostcontrolinitiatives. b kte thdethsisaa len .G laoinusldEanpe eeisnsdueedsdTuim elitn ad nin kgre m dlisopcu dsre aa idtitPw pregaylahnayssT uh sp eto heespsern m ea rginesr. suchdecisionthroughthecourtsystem. Atlhoughrecentchae l ngeshavemadeob G re a t Pl a i n s m a y ha v e t o of f e r up f a i n i n g re g ul a t ory a p aldaeb ha someconcessionstogetitstakeoverwecontinuetoexpepcrov tthe ailtto brd eaepr. a pepm rov e de .Irfitth eoM PS C au tte m p tsntsoab ltoiocnkptroorv esd in dld ue to im e .n Cto nth se q ue ntalyr.einsvu en s-til tth e r g w u l d h o l d p a t r a c s h o u h l d o o e s e s h hatWesterandGreatPlainshavebeen themergeriscompletedinourview. expectingtoclosebythefirsthalfof2017. DanielHenigsan Sepa iInbvr162016 $5.31lsh. (D) Rate base determined: fair value. (A) EPS diluted from 2010 onward. Exd. non report due late November. recur. gains (losses): 00 $1.07; 01 27¢ 02 (B) Divds paid in early Jan. April July and Rate allowed on common equity in 15: 10.0% ($12.0 ): 03 77¢. 08 39¢ 11 14¢. Eamings Oct. I Divd reinvest plan avail. T Shareholder earned on avg. com. eq. 15: 95%. Regul. may not sum due to rounding. Next earnings invest plan avail. (C) Incl. reg. assets. In 2015: Clim.: Avg. (E) In mm. =201sva1 Li hc.All efve4. F ral l.d 0blil1et1lt b e i e d t b e e l b l e a . p m ~ i a a vl n l w m l k d. T HE pU8L1$';.l eER l '§nor Resp'8v"§l e'fr8 FOR Anc[uRRom Ra$e8R gm l ssi ous H3'8El i »'"l L'§J»u»3Zl m .2 M ;131 su»8&i »8s own ?l .m m aZl §l .T ~£§a°..2"l 0 ,Et d I may be reprollucenl. resold. sloie4 or uansrriled in any priraeP. electronic 01 other lord or us for generating or markcliig Ely primed or electronic publication. service or pruducl. Companys Financial Strength Stocks rice Stability Price Groff Persistence Earnings Predictability A 95 75 85 To s u b s c r i b e c a l l 1 s 0 o - vA L u E u n E RECENT PRICE XCEL ENERGY NYSE-XEL H ig h : 23.6 Low: 1 7 .8 L EGEN D S 011 x Dmdcndg; sh davudcd £8 Inlet Rain Rdauve nee Strength L0wue49110l1s SAF EW 1 Rai§Ed 5l1I15 TECHNICAL 3 luvlaed 1l¥2BI16 BET A .60 ( 1.00Mafkd] A n n I T o ta l Price Ga in Return ( +10% High 45 6% Low 40 N il 3% Insider D ecisions 0 J F M A M J J A lo8uy 0 0 0 0 0 0 0 0 0 Options 0 0 1 2 0 0 0 0 0 0 t05elI 0 0 0 0 0 0 0 0 Institutional Decisions 27.8 21.2 29.9 25.8 _ l - 19.2 15.0 RELATNE PIE RATIO 31.8 26.8 37.6 27.3 - VALUE LINE Tar?et Price R="3° 20 9 2020 20 1 38.3 31.8 - - l l - -- - !l_ m m n u n l .u_.- . nun - 0.97DyD3.5% - u m 1.nnm1mn- l - - 64 48 40 32 z4 20 16 - -- -- -- -l i- l- l -l -u-w- - -- _ l- -- -- -l a_ 1 mmfzmzlznnzl 23.89 19.90 3.14 3.35 .42 1.23 1.13 .75 .04 11.70 398.71 398.96 NMF 118 NMF .66 6.6% I 5.2% 24.4 19.8 l----- - u u l l aan§ 1nu1znll ..:¢i al w . . - » .: m a umm aozms 1az016 102016 Par cenl 15 1o8uy 261 292 306 shares 10 to l d 228 231 218 traded 5 no 000 363202 370041 364911 2000 s 2001 2005 34.11 43.56 4.12 5.09 1.60 2.27 1.48 1.50 3. 7.40 16.37 17.95 339.79 345.02 14.3 12.4 .93 .64 6.4% 5.3% 21.9 16.0 area s c a l e s l8C8$S40f1 01 40.54 90 17.9(M::: 20.84 3.27 1.27 .81 400.46 13.6 .72 4.7% 23.86 3.28 1.20 .85 3. 5 13.37 403.39 15.4 .82 4.6% CAPIT AL ST RUCT URE as Of 6130116 Total Debt $14252 mill. Due in 5 Yrs $5011 .0 mill. LT Debt $13105 mill. LT Interest $602.8 mill. Ind. $164.0 mill. capitalized leases. (LT interest earned: 3.8x ) Leases Uncapitalized Annual r entals $241.6 mill. P e n sio n As$ e t $ 1 2 I 1 5 $2883.8 mill. Obllg. $35678 mill. p fd Sto ck N o n e C o mmo n Sto ck 5 0 7 9 5 2 7 9 5 sh e . as of 8/1/16 MARKET CAP: $21 billion ( Lar ge Cap) ELECTRIC OPERATING STATISTICS 2013 2014 2015 'ACt\a neusam # .3 +. 2 .6 Um WN WM 23875 24475 23521 6 .2 3 6 .4 7 U me & I M n m (¢) 6N.1A0 NA NA CapaclIyalpeak( I.. P¢auLua¢sur-me ) 2 1 2 5 8 2 1 4 2 9 19583 A4I\1JdLoadF3cDf NA NA NA Xonngeomnmesyr¢f4l +. 8 +.9 +. 9 - 3 - - . . 12 ~° a 6 % T OI R ET U R N 9/16 has VI num STOCK lIJ( x 1 yr. 202 17.7 3 yr. 66.3 23.7 5 yr. 97.2 108.1 n l l n l m s l m l l l n l l l l l n l n n l l l ! IIIl l n 1 u l n n m r l l ¢ n l l n m m l l l l n m I -nlmlnllnulllnlllllllnllllllllllmumlllllnmllnlllllllnmllnllllllllnlllm\lllllnllllllllllnllll - lllllllllllllllllllllll:lllllllllllllmllllllllllllllllllllllllmlllulllllllllllllllllllllllllllllllllllllllllllllmnnllll1 2 0 1 5 2006 2007 2 0 0 8 r z m l a n n a i i n a m m i n m n : m a 2017 _ 21.90 3.79 1.72 1.03 4.5 17.44 48 .49 14.1 14.2 .90 .89 4.5% 4.2% 24.16 23.40 24.69 3.81 3.45 3.50 1.35 1.35 1.46 .88 .91 .94 4. l l . . 14.28 14.70 15.35 407.30 428.7 453.7 14.8 1. 13.7 .80 .89 .so 4.4% 4.0% 4.7% 21.08 3.48 1.49 .g7 21.38 3.51 1.56 1.00 . fl 16.76 457.51 1 .1 .85 5.1% : we 9840.3 568.7 24.2% 9.8% 52.1% 47.0% 12371 15549 6.2% 9.6% 9.7% 3.6% 63% 9644.3 685.5 35.1% 16.8% 51.6% 47.7% 15277 18508 6.2% 9.3% 9.4% 3.7% 61% 10311 121.0 37.5% 11.7% 53.1% 46.3% 17452 20663 5.7% 8.9% 8.9% 3.6% 59% 10034 575.9 33.8% 12.5% 49.7% 49.4% 12748 16676 6.3% 9.0% 9.1% 3.1% 66% 11203 645.7 34.4% 15.9% 52.2% 47.1% 14800 17689 6.0% 9.1% 9.2% 3.8% 59% 10655 841.4 35.8% 9.4% 51.1% 48.9% 17331 22353 6.5% 9.9% 9.9% 4.3% 56% 20.76 4.00 1.85 1.07 5. 7 18.19 487.96 14.8 .94 3.9% 21.92 4.10 1.91 1.11 23.11 4.28 2.03 1.20 49797 15.0 .84 3.9% 505.73 15.4 .81 3.8% 10128 905.2 33.2% 10.8% 53.3% 46.7% 19018 23809 6.1% 10.2% 10.2% 4.7% 54% 10915 948.2 33.8% 13.4% 53.3% 46.7% 20477 26122 6.0% 9.9% 9.9% 4.5% 54% 11686 1021.3 33.9% 12.5% 53.0% 47.0% 21714 28757 6.0% 10.0% 10.0% 4.5% 55% K B U S I N E S S : X ce l E n e r g y I n c. is th e p r a tt o f N o r th e r n S ta te s Po w e r w h ich su p p lie s e le ctr icity to M in n e so ta Wisco n sin . n o r th 21.72 4.56 2.10 12s 7.26 20.89 507.54 16.5 .84 3.7% 21.25 21.55 5.05 5.30 2.20 2.30 1.36 1.44 6.00 5.05 21.10 22.60 508.00 508.00 s014 Na s a n ValWE Llm est HIS 11024 1063.6 35.8% 7.7% 10800 1115 23092 31206 5.8% 10.0% 10.0% 4.3% 57% W M 24475 32825 6.0% 10.0% 10.0% - Revenues per sh Cash Flow" per sh Eamlngs per ch A Div 'd DecI'd per sh a l 1 apl pending per sh Book Value per sh c - l l Av g Ann'l PIE Ratio Relatlve PIE Ratio Av g An n I0 1 v a 1 n ¢ la 11000 Rev enues( $mlll) 1175 N et Pr ofit Smlll Income Tax Rate AFUDC % to Net Prot1t LongTerm Debt Ratlo C o mmo n E u R atio 24875 T otal Capital ( sum) 34275 Net P1ant Small 6.0% R elumonT o1alC ap'l 10.5% R etumon Shr .Equity 1 0 . 5 % R e tu mo n C o mE u E 4.0% Retained to ComEq 62% AIID lv 'dSto N elPr ol W M 23.25 6.25 2.75 1.70 5.75 25.50 508.00 11750 1400 M 52.5% 47.5% 27500 38400 M mill. electr ic 1.9 mm. gas. Elec. r ev . br eakdown: r esidential. 31% . Sm. comml & indI 36% ; lg. commI & indl. 18% other . 15% . Gen DakotaSouthDakotaaMichigan&gastoMinnesota.Wisconsineatingsourcesnotavailable.Fuelcosts:43%ofrevs.15reported NorthDakota&Michigan;PublicServiceofColorado.whichsup depr.rate:2.8%.Has11700employees.ChairmanPres.&CEO: pliesdectridty&gastoColorado;&SouthwesterPublicServioe.BenFowke.Inc.:MN.Address:414NicolletMall.Minneapolis.MN whichsupplieselectricitytoTexas&NewMexico.Customers:3.555401.Tel.:6123305500.Internetwww.xcelenergy.com. s uti l i ty subsi di ary i n Some other rate cases are pending or Fixed n Coy. 'A 321 344 3 5 8 Xcel Ener Minnesota as reached a settlement concluded. In Texas Southwestern ubAN N U AL R AT ES P a s t P a s t E s td 1 3 1 5 of i ts mul ti year el ectri c rate case. lie Service is seeking an electric increase of of change (pa sh) 10 Yy$ 5 Yrs. to '1921 Northern States Power had requested tar $61.5 million based on a 10.25% return on Rev enues .5% .. .5% " C a sh F lo w 2 .5 % 4.5% 6.5% off hikes of $194.6 million in 2016 $52.1 a 54% commonequity ratio. An order is E a mi n g s 5.0% 6 .0 % 5.5% million in 2017 and $50.4 million in 2018. expected in the first quarter with the in D iv id e n d s 4 .0 % 4 .5 % 6.0% based on a return of 10% on a common crease retroactive to July 20th. In New B o o k V a lu e 4 .5 % 4 .5 % 4 .0 % QUARTERLY REVENUES (S mill.) F u ll equity ratio of 52.5%. (The utility is now Mexico the utility settled for an electric Cab collecting an interim rate increase of boost of $23.5 million which took effect in ender M a r . 3 1 J u n . 3 0 S e o. 3 0 D e c . 3 1 Year $163.7 million.) The settlement calls for August. In Wisconsin NSP is asking for 2013 2783 2579 2822 2731 10915 2014 3203 2685 2870 2928 11686 raises of S75.0 million in 2016 (plus $37.4 electric and gas hikes of $26.9 million and 2515 2902 2645 11024 million to make up for a shortfall Ir\ $4.8 million respectively based on a 10% 2015 2962 return on a 52.5% commonequity ratio. A 2016 2772 2500 2928 2600 10800 kilowatthour sales) $59.9 million in 2017 ruling is expected in late 2016 with new 2011 2 8 0 0 2550 3000 2650 11000 nothing in 2018 and $50.1 million in 2019 based on a return of 9.2% on a common rates effective at the start of 2017. EARNINGS PER SHARE A F u n Cab ender M a r . 3 1 J u n . 3 0 S . n . 3 0 D e c . 3 1 Year equity ratio of 52.5%. The agreement is Rate relief is the main driver of the subject ro approval by the Minnesota com profit growth we estimate in 2016 and 2013 .48 .40 .73 .30 1.91 2014 .52 .39 .73 .39 2.03 mission. Not every intervenor signed on 2017. gm 2016 estimate is within Xcc1s 2015 .46 .39 .84 .41 2.10 so the final decision isnt expected until guidance of $2.12$2.27 a share. We fore 2.20 June. cast an increase next ear in line with the 2016 .47 .39 .89 .45 2.30 The settlement, if approved will help companys goal of 4%8/> annual growth. 2017 .54 .40 .90 .46 Xcel attain its goal of narrowing the This timely and highquality stock has QUARTERLY DNIDENDS PAID B I 1 Cab F u ll ender M a r . 3 1 J u n . 3 0 S . 3 0 D e c . 3 1 Year map. between its allowed and earned a dividend yield that is about equal to 106 OEs. This gap is now roughly one per the utility average. Iiko most utility is 2012 .26 .26 .27 .27 . centage point and the company wants to sues the recent quotation is within our 2013 .27 .27 .28 .28 1.10 .30 .30 1.18 reduce this to a half percentage point by 20192021 Target Price Range. According 2014 .28 .30 .32 .32 1.26 2018. To achieve this the company will ly total return potential is unexciting. 2015 .30 .32 .32 .34 .34 .34 need rate relief in other states. Paul E. Debbas CFA October 28 2016 2016 A) Diluted Eps. Ex cl. nonrecurring gain earnings report due early Nov . (B) Div ds his tangibles. In 15: $5.53I5h. (D) In mill. (E) Rate C o mp a n y s F in a n cia l Str e n g th A+ lo s s e s;= 0 2 (. 5 6 2 7. ) 1 0 5 ¢ 1 5 ( 1 6 ¢ ) ; g a in s to r ica lg y p a id mid Ja n ..Ap r .Ju ly .a n d Oct base:Var ies.R ate allow ed on com.eq. S to cks P r ice S ta b ility 100 glosses on discontinued ops.: 03 27¢; 04 'D iv . r e mv e stme n tp la n a v a ila b le . t Sh a r e blended): 9.8% earned on av g. com. e q . 1 5 : Pr ice Gr ow th Per sistence 55 30¢) 05.3¢ 06. 1¢. 09. ( 1¢) . 10 1¢. Nex t holder lnv estment plan av ailable. (C)Incl. ln .5% . Regulatory Climate:Av erage. E a min g s P r e d icta b ility 100 ¢ 2016 Value Lne. Inc. Al r?ls reserved. Factual material is obtained loom sources believed lo be reliable and is. provided vaihoil warranties al an. kind. THE PUBLISHER IS NOT RESP NSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. lh;;1Jubllcatmn is strictly lot subscriber s cm f10f\COUlD¢ICI8l ntemal use. o pan T o s u b s c r i b e c a l l 1 8 0 0 - V A L U E U N E oflmayberepm¢iucedresoldstofedor transrnmedIn any printed dedrcncoroMer lorduru iorgernerarngormarkelngaiypnmedordedrcnc pubicauonselvuceorprorluct ATTACHMENT 3 ALE 60.74 0.23 0.38 % : Allete, Inc. - Yahoo Finance Home Fl(ckr M EN Tumbler News S&P 500 Dow 30 2139.12 4.04 (0.00 v.) 18120.17 3.63 (0.02 'H . Sports F ra nc e Page l of 3 Celebrity Answer! 'rér, Yahoo Firwanc e on Flfefox Mobile Nasdaq \ ~\ > 5,235.03 9.54(41av.) A. - , _CRY A TRAUYH g TISKF UH T HE Ki l l ANNGUHCUJENT. E»...¢¢.* ALLETE, Inc. (ALE) Groups Scoff/nada Qualify for 4000 8: 50 Fr- Trados . umm-_ ow TRADE FOR $7.95 ALE A n4=r44»ar:1 TY Add so watchlist 1 NYSF NYSE Real Time Price Currency in USD f J 60.74 +0.23 (+0.38 % ) Conversations Statistics cl People also watch L NT A V A BKH I DA W R AI dose 4:02 PM EDT Summary ALE gains 0.38% Financ ials Profile Options Holders Historical Data Analysts Currency m USD Eamlngs Est imat e Cu rre n t Oa r Next QU Current year Next Year 4 2 5 5 Avg. Estimate 0.97 0.73 3.12 3.52 Low Estimate 0.92 0.72 3.08 3.48 0.74 3.15 3.65 0.41 3.06 3.12 No. of Analysts High Estimate Y ear Ago EPS Revenue Est imat e 1 1.25 ClIlGI\\ Qtr Next Dir C\!1!r* Yo8f NGXI Year 1 1 3 3 No of Analysts Avg. Estimate 442M 330.5M 1.34B 1.39B Low Estimate 442M 330.5M 1.25B 1.31B High Estimate 442M 330.5M 1.46B 1.498 Year Ago Sales 462.5M 380.6M 1.49B 1 .34B Sales Growth (year/est) .4.40% 13 20% 960% 3.60% 9/29f2015 12130/2015 3/30/2016 emr2016 EPS Est. 1 .02 0.78 0.9 0.51 EPS Ac tual 1.25 0.41 0.93 0.5 DiRerenc e 0.23 0.37 0.03 0.01 22.50% 47.40% 3.30% 2.00% Earnings Hist ory Surprise % http://finance.yahoo.com/quote/ALE/analysts?p=ALE 9/19/2016 Page 2 of 3 ALE 60.74 0.23 0.38 % : Allete, Inc. - Yahoo Finance Culvert Otr EPS Trend Next Qtr Curred year Next Year Current Estimate 0.97 0.73 3.12 3.52 7 Days Ago 0.97 0.73 3.12 3.52 30 Days Ago 097 0.75 3.14 3.53 60 Days Ago 1 0.77 3.2 3.52 90 Days Ago 0.99 0.78 3.19 3.51 EPS Revisions C urran! O D Up Last 7 Days Next Qtr Current Year men Y€8 Y N/A N/A N/A N/A 1 l 1 Up Last 30 Days N/A NIA NIA N/A Down Last 30 Days N/A N/A N/A N/A Down Last 90 Days N/A N/A N/A N/A ALE mdusrry Current QU. 22.40% 3.23 Next Qtr. 78.00% 0.00 2.00% 1. 70 12.80% 0.15 Growth Estimates Current Year Next Year Sector sap =cr I * BIG GIVES BACK* ft* Fr 4 I 'if . ... .. J °`» BIGCDG &HEROES -i 19- \ ==<_ - ` Next s Years (per annum) 5.00% 0.07 Past 5 Years (per annum) 6.57% N/A r 1- . 7 I Hz o ' ml Roc rive 10% off current promotional prices for any 8i9D09° mower.' ol:I .wmlablo at panlclrnr ng rloalnli If*_ an Recommendation Trends > Strong Buy Buy Had E 4 SM 0 1 Jun unaofveflofm Sen Ge? ¢ » Ju l MY So Recommendation Rating > 2.2 v 1 Strom; Buy 2 Be 3 Hol d 4 Underperform 5 SSII Analyst Price Targets (4) > Average 63.13 http://finance.yahoo.com/quote/ALE/analysts?p=ALE 9/19/2016 LNT 38.77 0.34 0.88 % : Alliant Energy Corporation Comm - Yahoo Finance Page l of 3 I Home Mail Flickr Tumblr News S&P 500 Dow 30 2139.12 1s,120.11 .163 1£0.02 v.) 0.04 (0.00 %> Sports Fmanee Answers Celebrity Groups l ~I A l l i a n t E n e r g y C o r p o r a ti o n ( L N T ) LNT iS breaking out fr Add IO w8td1li8t 38.77 0.00 (0.00%) Al close 4 05 PM EDT After hours: 4:23 PM EDT Financials Pro6le EA_»nu»a» TrarXefmé 1or 90days { 1 FVXI » 15 L1; . 38.77 +0.34 <+0.88 %) Statistics > > 5,235.03 9.54 1.0.18 v.) NYSE NYSE Real Time Price Currency In USD Conversations 4 rEt, yahoo Finance on Firefox Nasdaq OPEN AN Amouur 1 Summary Mobile Options S¢08f3dg up To 120oo + 50 FREE TRADES it-hkiiow App(y O People also watch: W E C W R O G E S C G G XP Holders Historical Data Analysts Currency in USD Eamlngs Estimate Current Of! man Qtr Curling Year Next Year 2 2 7 a Avg. Estimate 0.93 0.18 1 89 2 Low Estimate 0.87 0.12 1.88 1. 97 High Estimate 0.98 0. 21 1. 9 2.03 Year Ago EPS 0.8 0.16 1. 73 1 as No. of Analysts Revenue Estimate Cunsnt Qtr Next Qtr Curers Year Next Year 1 1 5 5 No. of Analysts Avg. Estimate 1.45B 286.61 M 3.36B 3.52B Low Estimate 1 .45B 286.61 M 3.25B 3.41 B High Estimate 1 .45B 2B6.61 M 3.47B 3.59B Year Ago Sales 898.9M 740.1 M 3.25B 3.36B Sales Growth (year/est) 61.30% -61 .30% 3.20% 4.70% Earnlngs Hlstory EPS Est. EPS Actual Difference Surprise % 91294015 12/30r2015 3/30/2016 6/2912016 0.78 0. 21 0.42 0.38 0.8 0.16 0.43 0.37 0.02 005 0.01 0. 01 2.60% 23.80% 2.40% 2.60% http://finance.yahoo.com/quote/LNT/analysts'?p=LNT 9/19/2016 LNT 38.77 0.34 0.88 % : Alliant Energy Corporation Comm - Yahoo Finance EPS Trend Current Oar N€XI O lr C urre nt Ye a r N&x t Ye a r Current Estimate 0.93 0.16 1 .89 2 7 Days Ago 0.93 0.16 1.89 2 30 Days Ago 0.93 0.16 1.9 2 80 Days Ago 0.92 0.21 1.9 2 .0 1 90 Days Ago 0.92 0.21 1.9 2 .0 1 Page 2 of 3 l EPS Revlslons C u rre n t O f Ne x t O f! C urre nt Y88l Ne x t ye a r Up Last 7 Days N/ A N/ A N/A N/ A Up Last 30 Days N/ A N/ A N/ A N/ A Down Last 30 Days N/ A N/ A N/ A N/ A Down Last 90 Days N/ A N/A N/ A N/ A Growth Estimates L NT industry 16.20% 3.23 N/A .0.0 Current Year 9.20% 1.70 Next Year 5 .B0 % 0.15 Next 5 Years (per annum) 6.80% 0.07 Past 5 years (per annum) 3.07% NIA Current Qtr. Ne x t Q t r. Se cto r S&P 5 0 0 Recommendation Trends > Strong Buy Bu y Ho le Jun Una e rpa ffunn ull Ju1 Au g Se ll Se p Recommendation Rating > 2.1 v S t ro n g Buy 2 3 Buy HO ld 4 Under perform 5 Se ll Analyst Price Targets (5) > Average 39.70 http://finance.yahoo.com/quote/LNT/analysts'?p=LNT 9/19/2016 AEP 65.42 0.61 0.94 % : American Electric Power Company - Yahoo Finance Home Mall Flickr Tumblr News sa.p 500 Dow 30 2,139.12 18120.17 .3.63 (0.02 v.) 0.04 10.00 1/0, Sports Fuwance Celebrity Groups Answers \ w TRADE FOR $7.95 AE P A Quota Lookup 65.42 +0.61 (+0.94 %) 65.42 0.00 (0.00%) At c;Il)se 4 L)Z PM EDT After hours; 4:23 PM EDT Profile Financials E n- nuuv T rade . .; msuuanv NYSE NYSE Real Time Pnce Currency in USD Statistics Q rér, Yahoo France on Firefox > > 5,235.03 .9.54 1.0.18 v.l ii' Add to watchlist A m e r i c a n E l e c tr i c P o w e r C o . , In c . ( A E P ) Conversations Mobile Nasdaq S c oarade so FREE TRADES w/ #my DEPOSIT °!I1Qh A 9991 Summary Page 1 of 3 Options Ra90days. !r>v» n AE P IS 0.94% UD E People also watch S O F E D D UK E D Holders Historical Data Analysts CufiBf\cy in USD Eamlngs Estimate Curred Ole Nan Orr Current Year Next Year 12 11 22 22 Avg. Estimate 1. 12 0.83 3.69 3.83 Low Estimate 0.98 0.53 3.54 3.65 High Estimate 1. 2 0. 81 3.8 4 year Ago EPS 1.06 0.48 3.69 3.69 No. of Analysts Revenue Estimate NQXI Qtr CUY B UI Y e a r Nell YOU 8 7 15 15 Avg. Estimate 4.59B 3.978 16.54B 18.79B Low Estimate 4.3B 2.74B 15.26B 14.97B High Estimate 4.8BB 5.13B 18.62B 19.76B 4.4B 3.61 B 16.45B 16.54B 4.40% 910% 0.50% 1 .50% Current Oar No. of Analysts Year Ago Sales Sales Growth (year/est) Earnings History 912912015 1213012015 3130/2016 6/294201 e EPS Est. 1. 01 0.5 1. 04 0.9 EPS Actual 1. 06 0.48 1. 02 0.95 Difference 0.05 002 0.02 0.05 5.00% 4.00% 1 .90% 5.60% Surprise % http://finance.yahoo.com/quote/AEP/analysts'?p=AEP 9/19/2016 Page 2 of 3 AEP 65.42 0.61 0.94 % : American Electric Power Company - Yahoo Finance EPS Trend Current on N914 Qtr Current Year Next year 3.69 3.83 l Current Estimate 0.63 1. 12 i l l 7 Days Ago 1. 12 o.sa 3.69 3.83 30 Days Ago 1. 12 0.83 ahs 3.83 80 Days Ago 1.1 0.86 3.67 3.84 90 Days Ago 1. 1 0.88 3.87 3.84 EPS Revlslons Current Oar Up Last 7 Days Next au Current Year Next Year N/A 2 1 N/A 1 N/A Up Last 30 Days N/A Down Last 30 Days N/A N/A 1 Down Last 90 Days N/A N/A N/A 3 l 2 l l 2 l l N/A i Growth Estimates Current Qtr. AEP mduslry 5.70% 3.23 31.30% 0.00 N/A 1 .70 Next Year 3.80% 0.15 Next 5 Years (per annum) 2.31% 0.07 Past 5 Years (per annum) 3.99% Next Qtr. Current Year Sector S&P 500 - EA-l. -_ -. -9- " r . 4. uh>, .. _ .. _ ._ . .".. -\»..¢.... _ .. , 5H€. 5 To ybua.1:>;sl5_ v1»_ . I I 1; 1 N/A l I » > RecommendationTrends> 2C El 0 ll Svwng Buy Be 9 Hod unuefwvom Sell I'll Jun Jul Aug Sen f RecommendationRating> l 2. 1 v 1 Strong B uy 2 Be l l 3 Hol d 4 UrvcMr parforrn 5 Sell AnalystPriceTargets(17)> Average 72.03 http://finance.yahoo.com/quote/AEP/analysts?p=AEP 9/19/2016 I l AEE 50.04 0.66 1.34 % : Ameren Corporation Common Stock - Yahoo Finance Home Mail Flic kr T umblr F ra nc e Answers Celebrity Groups Mobile Dow 30 2139.12 0.04 (0.00 %) 18120.17 4.63 I002 °A) 5235.03 9.54 1.0.18 v.l I > G- \ . . * TRADE FOR $7.95 AEE A Raman' AEE 41 34% Ameren Corporation (AEE) Q Ada to watchlist 50.04 +0.66 (+1.34 %) 50.04 0.00 At dose 4;01 PM EDT After hours; 423 PM EDT Conversations Statistics Profile Sc ottrade '200 + From Trades w/ 'SOK Deposit I- xnMn Aviv Quote Lookup NYSE NYSE Real Time Price Currency nn USD Summary Ivr§r, Yahoo Franc e on Firefox Nasdaq S&P 500 4 Sports News Page I of 3 (0.00%) Financ ials Options A E E is breaking Out E] People also watch: DT E A BC A E B A F A A J G H0 ders Historical Data Analysts Currency in USD Current Qtr Next Q tr Current Year non Year 5 5 10 10 Avg. Estimate 1.36 0.18 2.54 2.76 Low Estimate 1.34 0.15 2.5 2.69 High Estimate 1.37 0.24 2.61 2.85 Y ear Ago EPS 1.41 0.12 2.56 2.54 Eamlngs Est imat e No. of Analysts Current Oar N€X! Q tr Current Year Next Year 2 2 7 8 Avg. Estimate 1 .BBB 1.55B 6.24B e.4aa Low Estimate 1 .ala 1.37B e.osa 8.21 B High Estimate 1 .93B 1.74B 6.53B 6.61 B Year Ago Sales 1.aaB 1.31B e.1a B.24B Sales Growlh (year/est) 2.40% 18.80% 2. 30% 3.50% Revenue Estlmate No. of Analysts 9/29/2015 12130r2015 3/30/2016 er29r2o 1e 1.3 0.16 0.38 0.52 EPS A¢(IJal 1.41 0.12 0.43 0.81 Difference 0.11 0.04 0.05 0.09 8.50% 25.00% 13.20% 17.30% Earnlngs Hlst ory EPS Est. Surprise % http://finance.yahoo.com/quote/AEE/analysts?p==AEE 9/19/2016 AEE 50.04 0.66 1.34 % : Ameren Corporation Common Stock - Yahoo Finance EPS Trend Cuw8r11 Qtr nm Qtr Current Year Next Year Current Estimate 1. 36 0.18 2.54 2.78 7 Days Ago 1. 36 0.18 2.54 2.76 30 Days Ago 1. 36 0.18 2.54 2.78 e0 Days Ago 1. 37 0.2 2.51 2.78 90 Days Ago 1. 36 0.2 2. 51 2.78 Current Qtr Next Qtr Cuuvent Year Next year Up Last 7 Days N/A NlA N/A N/A Up Last 30 Days N/A N/A 1 N/A EPS Revisions Page 2 of 3 W l r i l Down Last 30 Days N/A N/A N/A N/A Down Las!90 Days N/A N/A N/A N/A l l Growth Estimates AEE Industry Sector l sap 500 l l Current Qtr. 3.50% 3.23 l 50.00% 0. 00 Current Year 0.80% 1. 70 Next Year 8.70% 0.15 Next 5 Years (per annum) 5.20% 0.07 Past 5 Years (per annum) 0.25% N/A Next Qtr. 3 ( Recommendation Trends > Strong Buy Buy Hold a uruawpennnn 7 Sell 0 . Jun Jul Aug Sep Recommendation Rating > 2.4 v l Strong Be 2 B uy 3 H old 4 Undef perform 5 Sell Analyst Price Targets (7) > Average 53. 21 http://finance.yahoo.com/quote/AEE/analysts'?p=AEE 9/19/2016 l I I r CMS 42.81 0.48 1.13% : CMS Energy Corporation Common S - Yahoo Finance Home Mall Flicks Tumblr News Sports S&P 500 Dow 30 Nasdaq 2,139.12 0.04(0.00%) 18,120.17 3.s3 (.0.02 v.) 5,235.03 I is \ I Answers Celebmy FUVISHCQ Mobile .r§r, Yahoo France on Firefox > \ 9.54 (0.18 v-) Groups Page 1 of 3 4 JY A =:..1 : \ nu J. i v r e ANNUUNCIMENT. E - u v e - u g E TRADE OPEN AN ACCOUNT I ® S¢a?tna¢e INTRODUCING $0.70 orion CONTRACTS Exclusive: Warren Buffett George Soros and more CMS Energy Corp. (CMS) Q Add to watc hlls t Quote Lookup NYSE NYSE Real Time price Currency in USD 42.81 +0.48 (+1.13%) 42.81 0.00 (0.00%) AI close 4 O2 PM EDT After hours. 4;23 PM EDT Summary Conversatuons Statistics Profile Financials People also watch D TE C N P E IX E TR A E S Options Holders Historical Data Analysts Currency in USD Eamings Estimate Current Of No. of Analysts Next O rr Current year Next Year 4 4 14 16 Avg. Estimate 0.55 0.43 2.02 2.18 Low Estimate 0.53 0. 41 2. 01 2.15 High Estimate 0.56 0.45 2.02 2.2 Year Ago EPS 0.53 0.38 1. 89 2.02 Revenue Estimate Cufrenl Qtr N9X! car Curred Year Next Year 3 3 9 11 Avg. Estimate 1 .Asa 1.97B 6.9B 7.1B Low Estimate 1 .55B 1.72B e.59B 6.69B High Estimate 1 .72B 241B 7.69B 7.818 Year Ago Sales 1 .49B 1.51B 6.46B 6.9B 11.30% 30.20% 880% 2.90% No. of Analysts Sales Growth (year/est) Earnings History 9/29/2015 12/30/2015 3/30/2016 6/29/201 e EPS Est. 0.49 0.38 0.59 0.36 EPS Actual 0.53 0.38 0.59 0.45 Difference 0.04 NlA N/A 0.09 http://finance.yahoo.com/quote/CMS/analysts?p=CMS 9/19/2016 I Page 2 of 3 CMS 42.81 0.48 1.13% : CMS Energy Corporation Common S - Yahoo Finance Earnings History Q/ 2 9 1 2 0 1 5 EPS Trend C u rre n t O 1 1 3/30/2018 6/29/2016 N/A 25.00% Current Year Next Year 1 2 1 3 0 r2 0 1 5 N/A 8.20% Surprise % N e w [ Ot r Current Estimate 0.55 0.43 2.02 2.18 7 Days Ago 0.55 0.43 2.02 2.18 30 Days Ago 0.55 0.43 2.02 2.18 60 Days Ago 0.58 0.55 2.02 2.18 90 Days Ago 0.sa 0.55 2.02 2.18 Current Year Next year Current Orr EPS Revisions Ne x t Qtr Up Last 7 Days N/A N/A 1 N/A Up Last 30 Days N/A N/A 1 N/A Down Last 30 Days N/A N/A N/A N/A Down Last 90 Days N/A N/A N/A N/A CMS industry 3.80% 3.23 13.20% -0.00 Current Year 6.90% 1.70 Next Ynr 7.90% 0.15 Next 5 Years (per annum) 7.27% 0.07 Past 5 Years (per annum) 8.22% N/A Growth Estimates Current Qtr Next Qtr. Sector 1 S8 . P 5 0 0 Recommendation Trends > 14 8 14 14 Hi S* f °" 9 Bu y Buy Hold U n d e rp e rt o v v n 1 1 Se w Recommendation Rating > 2. 1 v 1 Strong Be http://finance.yahoo.com/quote/CMS/analysts?p=CMS 2 Be 3 Hol d 4 Under perform 5 Sell 9/19/2016 ED 76.40 1.09 1.45 % : Consolidated Edison, Inc. Commo - Yahoo Finance Home Flicker Mall Tumblr S&P 500 Dow 30 2139.12 4.04 (000 v.) 18120.17 \ News .1.63 10.02 °A) France Sports Answer! Celebrity Page 1 of 3 Groups Mobile 'r6f, Yahoo France on F»refox Nasdaq > 5,235.03 .9.54 I01a %) \ ~\ CD seaiWle OPTION TRADES S7 + so.1o PER CONTRACT E* T R AD E u>Arnvl voatrauo EA-lu»a Tr4d9 FFEEb Wdlyts » lHluDto$l0O0 1 OPEN AN ncco um I Exclusive: Warren Buffett George Soros and more C o n s o l i d a te d E d i s o n , In c . ( E D ) Q Add to watchlist J i . !€ L O O k l J i NYSE NYSE Real Time Pnce Currenqi in USD 76.40 +1 .09 (+1 .45 %) 76.40 0.00 (0.00 0/)) At close 4 02 PM EDT After hours 4143 PM EDT Conversations Summary Statistics Financials Profile Options Q Peoplealsowatch SO AEP DUK D F E Holders Historical Data Analysts curvsncy IN USD Eamlngs Estimate Currenl Ole Next Qtr Curred Year New! year 8 8 16 19 Avg. Estimate 1.53 0.6 3.97 4.13 Low Estimate 1.39 0.5 3.83 3.93 High Estimate 1 .es 0.87 4.05 425 Year Ago EPS 1 .44 0.81 4.0a 397 No. of Analysts l E l l l l l Revenue Estimate Current Qtr No of Analysts Next Q tr Current Year Next Year 3 3 12 13 Ava. Estimate 336B 2.63B 12.36B 12.59B Low Estimate 3.12B 2.53B 11.6B 11.38B High Estimate 3.5B 2.7B 13.05B 13.88B 3.44B 2.71 B 12.55B 12.36B 2 40% 2 90% 1 60% 1 .90% year Ago Sales Sales Growth (year/est) Earnings History 912912015 12/30/2015 EPS Est 1 .48 0.54 1.21 0.89 EPS Actual 1.44 0.61 1.18 0.59 Difference 0 04 0.07 0.03 0 1 http://finance.yahoo.com/quote/ED/analysts'?p=ED 3/30/2016 l l t 6r2912016 9/19/2016 Page 2 of 3 ED 76.40 1.09 1.45 % : Consolidated Edison, Inc. Commo - Yahoo Finance Earnings History Surprise % 9r29r2015 12130/2015 3/30/2016 612942016 2.70% 13.00% 2.50% 14.50% Curium Year Next Year Current Qtr EPS Trend next Qtr Current Estimate 1. 53 0.6 3.97 4.13 7 Days Ago 1. 54 0.59 3.96 4.13 30 Days Ago 1. 55 0.59 3.98 4.13 e0 Days Ago 1. 51 0.8 3.99 4.14 90 Days Ago 1. 51 0.6 4 4.14 EPS Revisions Cuvvsm Qh Nexl OU Cunem Year Nsxl Year Up Last 7 Days N/A 1 N/A N/A Up Last 30 Days NIA 1 N/A N/A \ F l Down Last 30 Days 1 N/A 2 1 Down Last 90 Days N/A N/A N/A N/A Growth Estimates ED lmiustry Current Qtr. 6.30% 3.23 Next Qtr. 1 .60% -0.00 Current Year 2.70% 1. 70 Next Year 4.00% 0.15 Next s Years (per annum) 1 .98% 0.07 Past 5 Years (per annum) 0.85% N/A Sea of SGP 500 VIEW ALL INVENTORY Recommendation Trends > 16 Strong Buy i Buy Hold Undafperform S91l l l 9 Jun Jul Aug \ Sep Recommendation Rating > 9 3.3 v 1 Strong B e 2 B uy 3 Hol d l 4 Under perform Sen l l 1 \ l l http://finance.yahoo.com/quote/ED/analysts?p=ED 9/19/2016 i Page 1 of 3 D 75.90 0.84 1.12 % : Dominion Resources, Inc. Common - Yahoo Finance Home Ma ul Flickr Tumblr N e ws S p o rt s S&P 500 Dow 30 Nasdaq 2139.12 0.04 (0.o0 °/.I 18,120.17 5,235.03 .9.64 (0.1a %) 4 mea 10.02 %» \ Vu Answers Celebrity Fll\8I1C 8 Groups Qréry Yahoo France on Firefox Mobile > EA ~»l ¢ »- » D IS b re a k i n g m. 4 "ado F k>f 90tMy2. D O U( OPEN AN Aooounn I Scof lrade s o FR EE T R ADES */ *1 O K DEPO SIT lll,1¢¢1{q¢ Ap¢l Exclusive: Warren Buffett George Soros and more Dominion Resources, Inc. (D) NY S E Q A d d t o wa t c h l i s t Quote Lookup NY S E R e a l T i m e P ri ce C u rre n cy i n U S D 75.90 +0.84 (+1.12 %) 75.90 0.00 (0.00 %) A s d o s e . 4 0 2 P M ED T Conversations S u m m a ry Peode also watch AEP SO D UK EXC ED Af te r h o u rs 4 : 4 3 P M EDT Szausncs Options Financials mme Q Holders H l s ro ri ca l D a ta Analysts C u n u n cy in u s e Eamlngs Estimate C urre nt Q tr Next Ole C urra n! Ye a r No n Y e a r 9 8 20 21 Avg Estimate 1.11 1 .0 1 3.78 3.88 Low Estimate 1 .03 0.84 3.69 3.63 High Estimate 1 .24 1.13 3.86 4.02 Year Ago EPS 1.03 0.7 3.44 3.78 C urre nt Q tr Ne x t O U C urre nt Ye a r Ne x t Ye a r 6 5 12 12 Avg. Estimate 3.25B 3 .B3 B 12.39B 12.92B Low Estimate 3.06B 2.78B 11.39B 11.94B High Estimate 3.48B 4.6B 13.65B 14.12B Year Ago Sales 2.97B 2.58B 11.73B 12.39B 9.50% 40.60% 5.60% 4.30% No. of Analysts Revenue Estimate No. of Analysts Sales Grovnh (year/est) Earnings History 9129r2015 128012015 3/30/2016 92912018 EP S Es t. 1.06 0.89 0.94 0.71 EPS Actual 1.03 0.1 0.96 0.71 Difference 0.03 019 0.02 N/ A http://finance.yahoo.com/quote/D/analysts?p=D 9/19/2016 Page 2 of 3 D 75.90 0.84 1.12 % : Dominion Resources, Inc. Common - Yahoo Finance i 9 Earnings History 912912015 Surprise % 12/aor2o 15 3/30/2016 21 .30% 2.10% N/A C unem Year N ex t YOU 2.80% EPS Trend Cur r ent Qtr N e Xt O t Y 612912016 Current Estimate 1.11 1.01 3.78 3.86 7 Days Ago 1.11 1.01 3.78 3.86 30 Days Ago 1.12 1 3.79 3.87 60 Days Ago 1.12 1.01 3.79 3.87 90 Days Ago 1.12 1 3.79 3.9 EPS Revlslons Current Qtr N ex t Otr Current y ear Nex t Year Up Last 7 Days N/A N/A N/A N/A U p Last 30 D ay s NIA N/A N/A NIA Down Last 30 Days N/A N/A N/A N/A Down Last 90 Days N/A N/A N/A N/A Growth Estimates D Industry 7.80% 3.23 44.30% -0.00 Current Year 9.90% 170 Next Year 2.10% 0.15 Next 5 Years (per annum) 5.98% 0.07 Past 5 Years (per annum) 4.03% N/A Current Qtr. N e x t Q tr . Sector S&P 500 Recommendation Trends > 70 20 I I I Strong Buy Bu y Hole der psnbr m L5 i1 Se n 0 Ju n Recommendation Rating > 2.4 Y 1 S tr o n g Buy http://finance.yahoo.com/quote/D/analysts?p=D 2 Buy 3 H old 4 Under perform 5 Sell 9/19/2016 DTE 94.40 0.84 0.90 % : DTE Energy Company Common Stock - Yahoo Finance Mall Home FIC KV Tumble Spots News Finance Celebmy S&P 500 Dow 30 Nasdaq 2139.12 .0.04 (0.00 v) 18120.17 .363 Io.oz %) 5,235.03 9.54(0.18°/) I Answers Groups Page 1 of 3 Mobile °r§f, Yahoo France on Firefox » > W OPEN AN nnusest AooouwT I i? A T».:[ a J ANNOUNCEMENT. E a u - l n * a ® soafbmla srornonuunss worsnmannact Exclusive: Warren Buffett George Soros and more DTE Energy Company (DTE) Q Ada to watchlust NYSE NYSE Real Time Price Currency in USD Quote Lookup 94.40 +0.84 (+0.90 %> 94.40 0.00 (0.00 %) Al close. 4.02 PM EDT After hours; 4;43 PM EDT Summary Conversations Statistics profile Financials Options O Peodealsowatch: CMS ETR F E AEE EIX Holders Historical Data Analysts Currency in USD Curran! QV. Next Orr Currerll year MM Year e 5 13 14 Ava Estimate 1.39 1.2 5.07 5.28 Low Estimate 1.3 1.12 5.04 5.2 High Estimate 1.45 1 .26 5.12 5.38 Year Ago EPS 1.4 1.01 4.82 5.07 Eamlngs Estimate No. of Analysts Revenue Estimate Current Qtr No. of Analysts Next O rr Current Year next Year 3 3 6 7 Avg. Estimate 2.6B 2.82B 10.72B 11.088 Low Estimate 2.52B 2.55B 9.91 B 10.15B High Estimate 2.738 3.04B 11.53B 11.78B 2.6B 2.49B 10.34B 10.72B 0.30% 13.30% 3.70% 3.40% Year Ago Sales Sales Grovnh (year/est) 9/29/2m5 12/30/2015 3/30/2016 6/29/2016 1.25 0.99 1.5 0.89 EPS Actual 1.4 1.01 1.52 0.98 Difference 0.15 0.02 0.02 0.09 Earnings History EPS Est. http://finance.yahoo.com/quote/DTE/analysts?p=DTE 9/19/2016 Page 2 of 3 DTE 94.40 0.84 0.90 % : DTE Energy Company Common Stock - Yahoo Finance Earnings History Surprise % 9129/2015 12/30/2015 3/20/2016 812942016 12.00% 2.00% 130% 10.10% Current Qtr Next Orr Current Year Next Year Current Estimate 1. 39 1. 2 5.07 5.28 7 Days Ago 1. 39 1. 2 5.07 5.28 30 Days Ago 1. 39 1. 2 5.07 5.27 ea Days Ago 1.36 1. 17 4.95 5.26 90 Days Ago 1.36 1. 17 4.95 5.26 EPS Trend Current Orr N€X1 Qtr Current Year Next Year Up Last 7 Days N/A N/A N/A N/A Up Last 30 Days N/A N/A 1 1 Down Last 30 Days N/A N/A N/A N/A Down Last 90 Days N/A N/A N/A N/A EPS Revisions DT E industry Current Qtr. _0.70% 3.23 Next Qtr. 18.80% 0.00 Current Year 5.20% 1. 70 Next Year 4.10% 0.15 Next 5 Years (per annum) 5.35% 0.07 Past 5 years (per annum) 6.98% N/A Growth Estimates Sector S&P 500 Recommendation Trends > $UOl\Q Buy e Buy 7 7 Jun Jul r Aug Hold UnderueNorm 7 S911 Sep Recommendation Rating > 2.4 v 1 Strong B uy http://finance.yahoo.com/quote/DTE/analysts?p=DTE 2 B uy 3 Hol d 4 Under perform 5 Sell 9/19/2016 I i EIX 73.52 0.44 0.60 % : Edison International Common Sto - Yahoo Finance Mall Home Flic kr News T umblr Soorts F ra nc e Celebmy S8\P 500 Dow 30 Nasdaq 2,139.12 18120.17 5,235.03 .954(.0.18 '/~) 0.04 ( 0.00 % ) \ .3.63 (0.02 /) Answers Page l of 3 Groups .fury Yahoo Fuwarxce on Firefox Mobile » > \ TRADE FOR $7.95 Mr A . 5. T»1*[ UI. Lil mL; ANNOUNCEMENT m - - - m Swthaae UP TO 12000 + 50 FREE TRADES - nano- urn EIX A E IX gains 050% Exclusive: Warren Buffett George Soros and more Edison Intematlonal (EIX) Q Ada to warchhsm \ NYSE NYSE Real Time Pric e Currenq in USD 73.52 +0.44 (+0.60 %) 73.52 0.00 (0.00%) AI dose 4 01 pM EDT After hours. 4.23 PM EDT Summary C OI1V€lS8U Of \ $ Statistics Profile Financ ials Optlons Fe Lo I O People also watch P C G E T R F E DT E S RE Holders Historical Data Analysts Currency in use Curran! Orr Mn M Current Yea NQXI eu 10 10 18 20 Avg. Estimate 1 .22 0.93 3.89 4.14 Low Estimate 1 .08 0.83 3.6 4.05 High Estimate 1.31 1.12 4 4.28 year Ago EPS 1.16 0.88 4.1 3.89 Current Qtr Next Orr Current year Next year e e 12 14 Avg. Estimate 3.98B 3.168 12.37B 12.75B Low Estimate 3.48B 2.51B 11.81B 11.39B High Estimate 4.43B 3.92B 13.93B 14.37B Year Ago Sales 3.768 2.34B 11.52B 12.37B 5.70% 34.90% 7.40% 3.00% Eamlngs Est imat e No. of Analysts Revenue Est imat e No of Analysts Sales Grove»Ah (year/est) 9 v 2 9 I2 0 1 5 12/30/2015 3/30/2016 EPS Est. 1.17 0.6 Q58 0.97 EPS Ac tual 1.16 0.88 0.B2 0.as . 001 0.28 g as 0.12 Earnings Hlst ory Difference http://finance.yahoo.com/quote/EIX/analysts?p=EIX 6/ 291201 e 9/19/2016 Page 2 of 3 EIX 73.52 0.44 0.60 % : Edison International Common Sto - Yahoo Finance Eamlngs Hlstory Surprise % EPS Trend 9/2912015 1213012015 31304016 er29n>o1e 0.90% 46.70% 8.80% . 12.40% C une nr O rr Next Oar C urte r* Ye a r New\ Year Current Estimate 1 .22 0.93 3.89 4.14 7 Days Ago 1 .22 0.93 3.89 4.14 30 Days Ago 1.23 0.93 3.9 4.14 60 Days Ago 1.19 0.87 3.89 4.14 90 Days Ago 1 .2 1 0.84 3.89 414 Current Q tr Next O le EPS Revlslons C urre nt ve e r m a n Y B8 Up Last 7 Days N/ A N/A N/A N/ A Up Last 30 Days N/ A N/A N/A 1 Down Last 30 Days 1 1 2 2 Down Last 90 Days N/ A N/A NIA N/ A Growth Estlmates EI X m uusuy Current Qtr. 5.20% 3.23 Ne x t Q tr. 5.70% 0.00 Current Year 5.10% 1 .70 Next Year 6.40% 0.15 Next 5 years (per annum) 2.26% 0.07 Past 5 Years (per annum) 10.42% N/ A Se cto r S&P 5 0 0 I Vanguard°vour clients' portfolios today. Mwgwu' Recommendation Trends > Strong Buy Bu y 0 Ill Ju n Ju l Au g Had U r¢ e m e n o rm Se n 9 Se p Recommendation Rating > 2.2 v 1 2 3 4 5 S t ro n g Buy Ho ld Under Se ll Buy http://finance.yahoo.com/quote/EIX/analysts?p=EIX p e rfo v m 9/19/2016 Page l of 3 EE 46.58 0.69 1.50% : El Paso Electric Company Common - Yahoo Finance Home Mall Flickr News Tuly w blr S&P 500 Dow 30 2,139.12 o.o4 (000 v.) 18120.17 3.63 (.002 %) *I Sports France Celebrity Groups Answers Mobile Qréry Yahoo France on Firefox > Nasdaq 'I 5235.03 9.54 (0.18 °/,) > ~, ScoaH3dlg Qualify for '300 Br 50 Fro Tradn4nlau lowly EE TRADE FOR $7.95 E E A nanny E ( TR AD E L ; . . 4 A Exclusive: Warren Buffett George Soros and more O Q Add to watchllst El Pas o Elec tric Co. (EE) NYSE . NYSE Real Time Price Current' in USD 46.58 +0.69 (+1.50%) People also watch E D E P NM ID A B K H AVA Al close 401 PM EDT Summary Conversations Statistics Financials Profile Options Hddefs Historical Data Analyst: Currency an us D Eamlngs Estimate C u rre rN O a r Next Ott Current Year 1 1 4 4 No. of Analysts Next year Avg. Estimate 1.9 N/A 2.4 2.56 Low Estimate 1.9 N/A 2.3 2.4 High Estimate 1.9 N/A 2.48 2.88 Year Ago EPS 1.4 0.02 2.03 2.4 Current Qtr Next Qtr Current year Next Yea No. of Analysts N/A N/A 2 2 Avg. Estimate N/A N/A 930.9M 950.75M Low Estimate N/A NIA 921.99M 944.19M High Estimate N/A N/A 939.8M 957.3M Year Ago Sales N/A N/A 607.92M 9309M Sales Growth (yearlest) N/A N/A 53.10% 2.10% Revenue Estimate Eamlngs History 9/29/2015 12/30/2015 arae/201 e 61294016 EPS E$[ 1.2 N/A 0.07 0.44 EPS Actual 1.4 0.02 0.14 0.55 Difference 0.2 0.02 0 07 0.11 http://finance.yahoo.com/quote/EE/analysts?p=EE 9/19/2016 EE 46.58 0.69 1.50% : El Paso Electric Company Common - Yahoo Finance Eamlngs History Surprise % 9/29/2015 12/30/2015 3m0r2016 6/29/2016 16.70% N/A .100.00% 25.00% Curref\l Year Non Yea Current Oar EPS Trend Next Qtr Current Estimate 1. 9 N/A 2.4 2.56 7 Days Ago 1. 9 N/A 2.4 2.56 30 Days Ago 1. 9 N/A 237 2.56 so Days Ago 2 0.2 2.52 2.64 90 Days Ago 1. 65 0.2 2.52 2.64 Current Qtr Nan Oar Current Year Next year Up Last 7 Days N/A N/A N/A N/A Up Last 30 Days N/A N/A N/A N/A Down Last 30 Days N/A N/A N/A N/A Down Last 90 Days N/A N/A N/A N/A EPS Revlslons Growth Estimates EE Industry S8do1 Page 2 of 3 u Current Qtr. 35.70% 3.23 100.00% 0.00 18.20% 1 .70 Next Year 6.70% 0.15 Next 5 Years (per annum) 7.00% 0.07 Past 5 Years (per annum) 13.63% N/A Next Qtr. Current Year : ._;.J I pa 8 '4 (» S8.P 500 1: r v I 0g 4*- Ar' i \ x .r "Q + Your support brings hope. 9 Donate today. Amman-naman I /K " Recommendation Trends > Sl10fig Buy Buy ?C I Hold Undeiperiorvw Jun I Sell Aus Sen Recommendation Rating > 2 v 1 Strong Be http://finance.yahoo.com/quote/EE/analysts?p=EE 2 Be 3 Hol d 4 Under perform 5 Sell 9/19/2016 ETR 79.14 0.67 0.85 % : Energy Corporation Common Stoc - Yahoo Finance Home Mail Flickr Tumblr Spots News sap 500 Dew 30 2139.12 0.04 loo0 an 18,120.17 France Celebmy Page 1 of 3 Groups Answers .réf) Yahoo France on Firefox Mobile » Nasdaq \ 3.63 1.0.02 °A) I 5,235.03 9.54(4118°A) > " \4 [FT i m o m : T »K[ UH T 919 n »Wl€0UHlTH.lENT. (D s n a f u ETR is 0 85% up VI):man TRADES S : PER oomnnr r M n - 0 » * Q OPEN AN Ao c o um I Exclusive: Warren Buffett George Soros and more Energy Corporation (ETR) Q Add to watchlist uC NYSE NYSE Real Time Pnce Currency in USD 79.14 +0.67 (+0.85 %> 79.14 0.00 (0.00 %) AI close 4 02 PM EDT After hours. 4:43 PM EDT Summary Conversations Statistics Financials Profile Options .17okup People also watch: F E EXC EIX AEP DTE Holders Historical Data Analysts currency nn use Current Qtr Next Qtr Current Y 83f Next Year 10 9 19 20 Avg. Estimate 1.99 0.51 6.61 5.16 Low Estimate 1.44 0.17 4.91 4.8 High Estimate 2.39 1.1 7.29 5.56 Year Ago EPS 1.9 1 .58 6 6.61 Earnings Estimate No. of Analysts Current Qtr Next Qtr Current Year next Year 6 5 13 14 Avg. Estimate 3.52B 3.02B 11.79B 11.94B Low Estimate 3.39B 2.62B 11.06B 11.24B High Estimate 3.88B 3.48B 13.45B 13.58B Year Ago Sales 3.37B 2.518 11.51B 11.79B Sales Growth (year/est) 4.50% 20.30% 2.40% 1.30% Revenue Estimate No. of Analysts Eamlngs History 9/29/2015 12130/2015 3/30/2016 6r2 20 Fl; Strong Buy Buy hW UndemerWrw Sen 1 Q 4 Aug 4 1 Se: Recommendation Rating > 2.9 v l 1 Strong Be http://finance.yahoo.com/quote/ETR/analysts?p=ETR 2 B uy 3 Hold 4 Under perform 5 Sen 9/19/2016 I I I I GXP 26.98 0.18 0.67 % : Great Plains Energy Incorporate - Yahoo Finance Home Mail Fllckr Tumbler Spots News C€l8brvty Finance S&P sao Dow 30 Nasdaq 2139.12 .0.04 (0.00 v.) 18,120.17 3.63 (0.02 50 5235.03 .9.54 (01a v.) 4 Page l of 3 Groups ADSWEWS MODII6 'rér, Yahoo France on Firefox » > \ GD G XP IS 0 67% up 1 sa 68115018 $7 TRAD ES * Mn GPTION C ONTRIC 1 . ANr.r;»lr4.r IJENT. E - » - n v * m. OPEN AN ACCOLNT \ 1 Exclusive: Warren Buffett George Soros and more Q Add to watchllst Great Plains Energy Incorporated (GXP) Quote Lookup NYSE NYSE Real Time price Currency in USD 26.98 +0.18 (+0.67 %) 26.98 0.00 (0.00 %) Al close. 4 OF PM EDT After hours; 4 43 PM EDT Summary Conversations Statistics Profile Financials Options O People also watch EDE WR HE O G E PNW Holders Historical Data Analysts Currency in USD Eamlngs Estimate CUVYQY* QU No. of Analysts Next Qtr Current Year Next Year 5 4 9 11 iI Avg. Estimate 0.94 0.12 1.75 1.81 b Low Estimate 0.87 0.09 1.72 1.76 High Estimate 1.04 0.16 1.78 1.88 Year Ago EPS 0.82 0.15 1.37 1.75 Revenue Estimate Cunem QU No. of Analysts New! Qtr Current Year Next Year 4 3 6 8 Avg. Estimate 808.95M 584.13M 2.6B 2.71 B Low Estimate 776M 5734M 2.548 2.598 High Estimate 832M 599M 2.65B 2.86B 781 .4M 562.7M 2.5B 2.6B 3.50% 3.80% 4.10% 3.90% Year Ago Sales Sales Growth (year/est) Earnings History 9129/2015 1213cr2015 3/30/2016 6r29/2m6 EPS Est. 0.88 0.17 0.14 0.42 EPS A¢tual 0.a2 0.15 0.17 0.55 Difference 0 06 0.02 0.03 0.13 http://finance.yahoo.com/quote/GXP/analysts'?p=GXP l 9/19/2016 GXP 26.98 0.18 0.67 % : Great Plains Energy Incorporate - Yahoo Finance Page 2 of 3 I Earnings Hist ory 9r29r2015 12/a0r2015 3/30/2016 8/29/2018 6.80% 11.80% 21 .40% 31.00% Cunard Year Next Year 1 Surprise % Cutrthl Qtr EPS T rend N€X1 Qtr Current Estimate 0.94 0.12 1 .75 1.81 7 Days Ago 0.94 0.12 1 .75 1.81 30 Days Ago 0.94 0.12 1 .75 1.81 60 Days Ago 1.02 0.14 1 .72 1.01 90 Days Ago 1.02 0.14 1 .72 1.82 Current Qtr Next Qtr CUIT GUI Year Next Year Up Last 7 Days NIA N/A N/A N/A Up Last 30 Days N/A N/A N/A N/A Down Last 30 Days N/A NlA N/A N/A Down Last 90 Days N/A N/A N/A N/A EPS Revlslons GXP industry Current Qtr. 14.80% 3.23 Next Qtr. 20.00% 0.00 Current Year 27.70% 1 .70 Next Year 3.40% 0.15 Next 5 Years (per annum) 5.00% 0.07 Past 5 Years (per annum) 9.73% N/A Growt h Est imat es Sector S&P 500 Recommendation Trends > S t ro n g B u y BUV H o kl Un d O rp t r1 o rw Sel l l _ _ AUG 599 Recommendation Rating > 2.7 v 1 Strong Buy http://finance.yahoo.com/quote/GXP/analysts'?p=GXP 2 Buy 3 Hold 4 Under oarform 5 Sen 9/19/2016 I IDA 78.39 0.81 1.04 % : IDACORP, Inc. Common Stock - Yahoo Finance Home Mall Tumblr Flicks S&P 500 Dow 30 2139.12 18,120.17 .. 0.04 10.00 v.) News Sports France Celebrity Answes Page 1 of 3 Groups Mobile °ré 5235.03 l 3.63 (0.02 /.) ~u 9.54 (0.18 %) E TQA D E Sc aanade 50 FREE TRADES w/ *10K DEPOSIT p-zinmm A,.. O P E N AN m .c o o u r 4 T I GET I YHADUVS 1A»(£ era THE s o ; nrlraovn<;F1.1Hly. E l - a s - * W Exclusive: Warren Buffett George Soros and more ItCorp, Inc. (IDA) Q Add to watchlist ... NYSE . NYSE Real Ume Pnioe Currenqf in USD 1\k a l 78.39 +0.81 (+1.04 %> People also watc h AVA B K H G X P P N M E E Al dose 4 02 PM EDT Summary Conversations Statistic s Profile Financ ials O ptions Holders Historic al Data An a l ysts Currency in USD Ea m l n g s Esti m a te Current OU Next Qtr 1 1 No. of Anal ysts Current Year Next year 3 3 Avg. Esti m ate 1 .75 0.47 3.89 4.03 Low Estim ate 1 .75 0.47 3.85 3.95 High Estim ate 1 .75 0.47 3.92 4.09 Ye a r Ag o EPS 1 .46 0.63 3.87 3.89 R e ve n u e Esti m a te Curfgm Qtr Next Oar Curran! year Next yea( No. of Anal ysts N /A N /A 2 2 Avg. Esti m ate N /A N/A 1 .27B 1 .29B Low Estim ate N /A NIA 1 .26B 1.28B High Estimate N IA N/A 1 .28B 1 .3 8 Year Ago Sales N /A N/A 1 .27B 1.27B Sales Growth (year/est) N IA N/A 0 10% 150% 9r2912015 12/30/2015 3/30/2016 8/29/2016 EPS Est. 1.54 0.64 0.53 0.99 EPS Ac tual 1.46 0.63 0.51 1.12 Differenc e 0.08 0 01 0.02 0.13 Ea rn i n g s H i sto ry http://finance.yahoo.com/quote/IDA/analysts'?p=IDA 9/19/2016 Page 2 of 3 IDA 78.39 0.81 1.04 % : IDACCRP, Inc. Common Stock - Yahoo Finance l Earnings History Surprise % EPS Trend 9/29r2015 12/30r2015 343042016 e r2sr201e 5.20% 1 .60% 3.80% 13.10% CUYBHI Y 83I Ne x l Y e a r C unnnt Q tr Next Oar Current Estimate 1.75 0.47 3.89 4.03 7 Days Ago 1.75 0.47 3.89 4.03 30 Days Ago 1.75 0.47 3.89 4.03 60 Days Ago 1.82 0.59 3.89 4.03 90 Days Ago 1.55 0.64 3.89 4.03 Cu n e m Q t r nm Qtr CL l f7 !l 1 l ye a r Ne xt Y e a Up Last 7 Days N/A N/A N/A N/A Up Last 30 Days N/A N/A N/A N/A Down Last 30 Days N/A N/A N/A N/A Down Last 90 Days N/A N/A N/A N/A EPS Revlslons Growth Estimates I DA I n d u st ry S sd n f S&P 500 r' .3 ... . . s Current Qtr. 19.90% 3.23 z= *,= .A r--" . Next Qtr. 25.40% -0.00 \> I Current Year 0.50% 1 70 Next Year 3.80% 0.15 Next 5 Years (per annum) 4.00% 0.07 v4 L F 9 J ' ,ul- 5 \ + Your support brings hope. 0 Donate today. A n n n a n n u a a a Past s Years (per annum) I /A 12.59% N/A Recommendation Trends > ..0 Svong Buy 2.0 Be Ho i I'll Un d e f p wV o rr 1.0 Sen D Ju n Jo Aug Sep Recommendation Rating > 3 v 1 2 3 S t ro n g Buy Ho l d Buy http://finance.yahoo.com/quote/IDA/analysts?p=IDA 4 Unda pedbrm 5 Set! 9/19/2016 MGEE 56.78 0.57 1.01 % : MGE Energy Inc. - Yahoo Finance Hom e Ma ll F l i ck s Tumblr S p o rt s N e ws Finance Page 1 of 3 Answers C e ne ore ry Groups Mobile Qrlry Yahoo Finance on Firefox > 1 I S&P 500 18120.17 Dow 30 2139.12 0.04 (0.00 %) Nasdaq .3.6: (0.02 Al \ u 5,235.03 .9.54 10.18 v-\ > I ® OPEN AN A c m e S cé f f n s a l e o rn o u T R A D ES S7 4 $0.70 PER rn n n n Arl 1 l AL THAN 1»14 l:h I I I 1... g rH lP.jl Mi NT. E n » - e u * " M G E E g a in s 1 .01 % Exc lus ive: W arren Buffett George Soros and m ore MGE Energy Inc. (MGEE) Na s d a q G S Q A d d t o wa t c h h s t C Na s d a q GS R e a l T im e P rice . C u n re n q in U SD 56.78 +0.57 (+1.01 %) 56.78 0.00 (0.00 %) Al d o s e . 4 . 0 0 P M ED T Af te r h o u rs 4 : 0 0 P M EDT Conversations S u m m a ry Statistics profile Financials [I People also watch: MSEX BKH W GL W C NW N Options Hddefs Historical Data Analysts Wnsmy in use Eamlngs Estimate Curran! Oar Ne x t O n C une m ye a r Ne x t Ye a r No. of Analysts N/ A N/A 1 1 Avg. Estimate N/ A N/A 2.3 2.45 Low Estimate N/ A N/ A 2.3 2.45 High Estimate N/ A N/A 2.3 2.45 year Ago EPS N/ A N/ A 2.06 2.3 Current O rr Next Oar C urre nt Ye a r m a n ye a 1 1 1 1 Avg Estimate N/A N/A 598.2M 612.8M Low Estimate 17eM 131.3M 598.2M 812.8M H i g h Es t i m a t e 176M 131.3M 598.2M 612.8M Year Ago Sales NIA N/A 564.03M 5g8.2M Sales Growth (year/est) N/A N/A 6.10% 2.40% Revenue Estimate No. of Analysts lnvau4 Dale Invalid Dale Invblld D818 12/30/2015 EP S Es t. N/ A N/ A N/A 0.47 EP S A ctu a l N/A N/ A N/A 0.32 Difference N/A N/ A N/ A o.ts Ea m l n g s H i s to ry http://finance.yahoo.com/quoteMGEE/analysts?p=MGEE 9/19/2016 Page 2 of 3 MGEE 56.78 0.57 1.01 % : MGE Energy Inc. - Yahoo Finance i Eamlngs History lnvalrd Date invalid Dale lnvahd Date 12:10/2215 N/A N/A N/A 31.90% Surprise % Current Qtr \laX( Off Current Year N€X! Ye a r N/A NIA 2.3 2.45 7 Days Ago 0.55 0. 41 2.3 2.45 30 Days Ago 0.55 0. 41 2.3 2.45 60 Days Ago 0.55 0. 41 2.3 2.45 90 Days Ago 0.55 0. 41 2.3 2.45 EPS Trend Current Estimate Cunem Qtr next Qtr Current Year nm Year Up Last 7 Days N/A N/A N/A NIA Up Last 30 Days N/A N/A N/A N/A Down Last 30 Days NIA N/A N/A N/A Down Last 90 Days N/A N/A N/A N/A EPS Revisions MGEE industry Current Qtr. N/A 3.23 Next Qtr. N/A 0.00 11.70% 1. 70 Next Year 6.50% 0.15 Next 5 Years (per annum) 4.00% 0.07 Past 5 Years (per annum) 5.99% N/A Growth Estlmiies Current year Seder s8.p 500 Recommendation Trends > Strong Buy Be Haiti Uneerpennnvr See 0 Jun Jul Aug Sep Recommendation Rating > 3 V __ 1 Strong B e http://finance.yahoo.com/quote/MGEE/analysts'?p=MGEE 2 Be 3 Hol d 4 Under perform 5 Sell 9/19/2016 NEE 124.74 1.42 1.15 % : NextEra Energy, Inc. Common Sto - Yahoo Finance Mari Home Flickr News T umble Sports France Answers Cd8bf1ty Groups Page l of 3 Mobile .rér, Yahoo Finance on F»refox 1 i S&P 500 DOW 30 2139.12 .0.04 (0.00 v.) 18120.17 4 Nasdaq 3.63 10.02 %) 5,235.03 .9.54(0.1a°A) I I > 1 Scaflrade orly re '1oo0 lm so Fr- Tradn nun Apply TRADE FOR 5795 NEE A omnm NEE NEE is breaking out Exclusive: Warren Buffett. George Soros and more NextEra Energy, Inc. (NEE) Add to watchlrst I NYSF NYSE Real Time Price Currency In USD Quote Lookup 124.74 +1.42 (+1.15 %) 124.69 -0.05 (-0.04%) At close 4 03 PM EDT Summary Conversations People also watch; D PPL SO AEP PEG After hours. 4.44 PM EDT Statistics Profile Financials Options E Hoidefs Historical Data Analysts - - Currency in USD Current Qtr Next Qtr Current Year Next Yea No. of Analysts N/A N/A N/A N/A Avg. Estimate N/A N/A N/A N/A Low Estimate N/A N/A N/A NIA High Esnimaae N/A N/A N/A N/A Year Ago EPS N/A N/A N/A N/A Current Orr Next Qtr Current Year Next Yea No. of Analysts N/A N/A N/A N/A Avg. Estimate N/A NIA N/A N/A Low Estimate N/A N/A N/A N/A High Estimate N/A N/A N/A N/A Year Ago Sales N/A N/A N/A NIA Sales Growth (year/est) N/A N/A N/A N/A Eamlngs Estlmate Revenue Estimate lnvald Date lrtvalld Date lnvahC Date :va0/2014 EPS Est. N/A N/A N/A N/A EPS Actual N/A N/A N/A 0.02 Difference N/A N/A N/A 0.02 Eamings History http://finance.yahoo.com/quote/NEE/analysts?p=NEE 9/19/2016 Page 2 of 3 NEE 124.74 1.42 1.15 % : NextEra Energy, Inc. Common Sto - Yahoo Finance Earnings Hlstory Surprise % uuval fd Dal e Invalid Eh~e lnvahd Dale 3/:sor2m4 N/A N/A N/A N/A Curran! Oh EPS Trend N014 Qtr Cunsnt Year Nexl Year Current Estimate N/A N/A N/A N/A 7 Days Ago N/A N/A 0 02 0.06 30 Days Ago N/A N/A .092 0.06 80 Days Ago N/A N/A .0.02 0.06 90 Days Ago N/A N/A 0.02 0.06 Current Orr Next Qu C urgent Year My! Year Up Last 7 Days N/A N/A N/A N/A Up Last 30 Days N/A N/A N/A N/A Down Last 30 Days N/A N/A N/A N/A Down Last 90 Days N/A N/A NIA NIA EPS Revlslons Growth Estimates NE E Current Qtr. N/A N/A Next Qtr. N/A N/A Current Year N/A N/A Inauwv Sector S8 \P 5 0 0 l 9 9 l Next Year N/A 1 .42 l l I i Next 5 Years (per annum) NIA 0.50 Past 5 Years (per annum) N/A N/A 1 i 1 Recommendation Trends > l l Svfvn9 Be . 12 1 l BW Hold 8 13 13 13 13 Urdamsrforrn Se!» i l 3 l \ i l l.: . Recommendation Rating > 9 1 9 v 1 Strong Buy http://finance.yahoo.com/quote/NEE/analysts'?p=NEE 2 B uy 3 Hol d 4 Under pedorm 5 Sell 9/19/2016 Page 1 of 3 OGE 31.85 0.41 1.30 % : OGE Energy Corporation Common S - Yahoo Finance Home Mail Flickr Tumblr Sports News France Groups Answers Celebrity rér) Yahoo France on Firefox Mobile I S8»P 500 Dow 30 2,139.12 .0.04 (0.00 'Al 18120.17 .163 (0.02 al 4 Nasdaq \ 4 > 5235.03 .9.54 1.0.1s m OPEN AN ACCOUNT E.Y.TRADE As-nv: UOIYIGLIO 1 .£T A rna nrw T AU DN T H E in Arlr.; 1. I V.E NT. E A - s w u n g Sc oflrade Quality for °1.000 & 50 F-Q Trldu hnrnrn A ppl Exclusive: Warren Buffett George Soros and more OGE Energy Corp. (OGE) *Q Add to watchlist '}L;< l 3i NYSE NYSE Real Time Price Currency in USD 31.85 +0.41 (+1 .30 %> 31.85 0.00 (0.00%) Al close 4 00 PM EDT After hours: 4.28 PM EDT Conversations Summary Statistics Profile Financials Options L in People also watch GXP LNT PNW W R PNM Hiders Historical Data Analysts Currency in USD Current Qtr Next Qtr Current year Next year 3 a 8 B Avg. Estimate 0.94 0.29 1. 77 1. 88 Low Estimate 0.92 0.23 1. 75 1 .77 High Estimate 0.95 0.34 1. 8 1 .98 Year Ago EPS 0.55 0.15 1. 36 1 .77 Eamlngs Estimate No of Analysts Revenue Estimate Current Qtr Next Qtr Current year Next Year No. of Analysts N/A N/A 4 4 Avg. Estimate N/A N/A 2.39B 2.48B Low Estimate N/A N/A 2.29B 2.32B High Estimate N/A N/A 2.54B 2.65B Year Ago Sales NIA N/A 2.2B 2.39B Sales Growth (year/est) N/A N/A 9.00% 3.40% Earnings History 9/29/2015 12/30/2015 3/20/20\6 6/29/2016 EPS Est. 0.92 0.23 0.13 0. 41 EPS Actual 0.55 0.15 0.13 0.35 Difference 087 008 N/A 0. 05 I I * http://finance.yahoo.com/quote/OGE/analysts?p=OGE 9/19/2016 » I I Page 2 of 3 OGE 31.85 0.41 1.30 % : OGE Energy Corporation Common S - Yahoo Finance Earnings History Surprise % EPS Trend 9494015 12/3012015 3/30/2016 6129/2016 40.20% 34.80% N/A 14.60°/o Current year NextY ea Current Orr Next Oar Current Estimate 0.94 0.29 1. 77 1. 88 7 Days Ago 0.94 0.29 1. 77 1 .ea 30 Days Ago 0.94 0.28 1. 77 1.89 60 Days Ago 0.95 0.25 1. 77 1. 89 90 Days Ago 0.95 0.25 1 .77 1. 89 EPS Revlslons Current Orr Next Qtr Current Year man yea N/A NIA Up Last 7 Days N/A N/A Up Last 30 Days N/A N/A Down Last 30 Days N/A N/A N/A N/A Down Last 90 Days N/A N/A N/A N/A Grovnh Estimates OGE industry 1 Sector N/A S8P 500 [ * BIG Current Qtr. 70.90% 3.23 Next QU. 93.30% 0.00 Current Year 30.10% 1. 70 Next Year 6.20% 0.15 Next 5 Years (per annum) 4.30% 0.07 Past 5 Years (per annum) GIVES BACK* ~: BIGCCG 4 \ HEROES Cr - n m - _ __. " ` ... 01 . \ _ ` . 4r ; 1 '~a. Receive 10% off current promotional prices for any 8igDo9° mower." offer avdlahe at panlclputlng amlnn 7.53% ? > .. " I - _3§ RN N/A Recommendation Trends > Srrmg aw Buy Ham Underpeviovvn 2 Sell 0 Jun Jul Aug Sep Recommendation Rating > 2.4 v Stromg Buy http://finance.yahoo.com/quote/OGE/analysts'?p=OGE 2 B uy 3 Had 4 Under perform 5 S81l 9/19/2016 Page 1 of 3 OTTR 35.32 0.43 1.23% : Otter Tail Corporation - Yahoo Finance l l Home Mall Fhckr Tumblr S&P 500 Dow 30 2139.12 18,120.17 0. 04 lo o o A) News France Spans Groups Answers Celebrity . r § r , Yahoo France on Firefox Mobile ) Nasdaq 5235.03 9.54 (.0.18°/.\ w J .G3 ( 0.02 / ~ ) l > /\, Sc oflrade '200 + Fr- Tradas w/ '50K Deposit "!((t\l01 Apply mfr A 1H OT T R A IS Irendmg Io ;1 < F AME TRADE FOR $7.95 UL Wt p U AH H U U H D LM E N T . 3 l - . - n * g I QTTR A annum Exclusive: Warren Buffett George Soros and more Otter Tall Corporation (OTTR) Ty Add to watchlist Dome Lookup NasdaqGS NasdaqGS Real T¢me Pnce Currency in USD 35.32 +0.43 (+1.23%) People also watch; BKH EDE ALE PNM BW EN At close 4 00 PM EDT Summary Conversations Statistics O Financials Profile Options Hodefs Hmofical Data Analysts - _ - Currency in USD Eamlngs Estimate Current Ole No. of Analysts Curve fr Year Ne x t Qtr N/A 1 1 Next Year 1 Avg. Estimate 042 N/A 1.e 1.6 Low Estimate 0.42 N/A 1.6 1.6 High Estimate 0.42 N/A 1.6 1.6 year Ago EPS 0.42 0.41 1.56 1.8 Revenue Estimate Curvnnl Qtr Next Q!! 1 1 No. of Analysts Current Year 1 Next Year 1 Avg. Estimate 204M 193.2M 798.9M 816.5M Low Estimate 204M 193.2M 798.9M 816.5M High Estimate 204M 193.2M 798.9M 818.5M 200.02M 1 B8.79M 779.8M 798.9M 2.00% 2.30% 2.40% 2.20% Year Ago Sales Sales Growlh (year/est) 9r29/2015 12/30/2015 3/30/2016 6/29/2016 EPS Est. 0.44 0.44 0.31 0.38 EPS Actual 0.42 0.41 0.38 0.41 Difrerenoe 0 02 003 0.07 0.03 Earnings Hlstory http://finance.yahoo.com/quote/OTTR/analysts?p=OTTR 9/19/2016 Page 2 of 3 OTTR 35.32 0.43 1.23% : Otter Tail Corporation - Yahoo Finance Earnings History s/29r2015 12/30/2015 3/30/2016 8r29/201s 4.500/0 6.80% 22.50% 7.90% Next Orr Current Y88( NoniYear I Surpnse % Cllwnl Oh EPS Trend Current Estimate 0.42 N/A 1.6 1.6 7 Days Ago 0.42 0.42 1.6 1.6 30 Days Ago 0.42 0.42 1.8 16 60 Days Ago 0.4 0.42 1.55 1.8 90 Days Ago 04 0.42 1.55 1.8 Curred Qtr NexlQtr Current Year Next Year Up Last 7 Days N/A N/A N/A N/A Up Last 30 Days N/A N/A N/A NIA Down Last 30 Days NIA N/A N/A N/A Down Last 90 Days N/A N/A N/A N/A EPS Revlslons l l 3 l OTTR Industry Current Qtr. N/A 3.23 Next Qtr. N/A 0.00 2.60% 1.70 N/A 0.15 Growth Estimates Sector l S&P500 l l l l Current Year l 1 l Next Year Next 5 Years (per annum) 8.00% 1 0.07 l l E i Past 5 Years (per annum) 13.66% l N/A l l Recommendation Trends > i W StrongBuy Buy Hole 0.4 Url d8fpertQrv III' Sen 0 un Jul Recommendation Rating > 3 v 1 Strong Be http://finance.yahoo.com/quote/OTTR/analysts'?p=OTTR 2 Be 3 Hold 4 Under perform s Sell 9/19/2016 Page 1 of 3 PCG 62.67 0.25 0.40 % : Pacific Gas & Electric Co. Comm - Yahoo Finance Mall Home Flic kr T umblr News Sports Fmarxoe Answers Celebrity Groups Mobile Q réry Yahoo France on Firefox Rx 1 S&P 500 Dow 30 2139.12 18120.17 0.04 (0.00 °/) nasdaq 5,235.03 .9.s4 (4018 n) ~l .3.53 1.0.02 A) > zx¢ Sc aftrade Qualify for '300 & 50 Fr- Trades ° N¢\ ln Ar * OPEN AN M Z C Q UNT E*TRAD E uaunvl vonvrouo PCG 6.40% I Exclusive: Warren Buffett. George Soros and more PG&E Corporation (PCG) Q A<1d ro watchlist .H." NVSE NYSE Real Time Price Current in USD 62.67 +0.25 (+0.40 %) 62.67 0.00 (0.00%) At close. 4.00 PM EDT After hours. 4223 PM EDT Summary Conversations Statistics Profile Financ ials Options J5~ 1 Q People also watchz E I X P E G S RE P P L A E P Holders Historical Data Analysts Currency in use C anent O tr Next QT Current year Next Yea 10 9 17 19 Avg. Estimate 1.13 1 .03 3.72 3.66 Low Estimate 0.86 0.72 3.65 3.56 High Estimate 1.5 1 .49 3.76 3.75 Y ear Ago EPS 0.84 0.5 3.12 3.72 Eamlngs Est imat e No. of Analysts Cuyygn( Oar Next Orr Current Year NQX1 Year e 5 13 14 Avg. Estimate 5.05B 4.55B 17.84B 18.41B Low Estimate 471 B 3.82B 17.52B 17.95B High Estimate 5.89B 5.48B 18.55B 19.65B Year Ago Sales 4.55B 4.17B 16.83B 17.84B 11 .00% 9.30% 6.00% 3.20% Revenue Est imat e No. of Analysts Sales Growth (year/est) 9r2912015 12/30/2015 3/30/2016 6f29/2016 EPS Est. 0.96 0.44 0.73 0.92 EPS Ac tual 0.84 0.5 0.82 0.66 Difference 0 12 0.06 0.09 0.26 Earnings Hist ory http://finance.yahoo.com/quote/PCG/analysts'?p=PCG 9 l 9/19/2016 Page 2 of 3 PCG 62.67 0.25 0.40 % : Pacific Gas & Electric Co. Comm - Yahoo Finance Eamlngs History m9r2015 Surprise % 12/ 3012015 13.60% 12.50% 3/30/2016 er2ar2o1e 12.30% 28.30% New ! Year I K EPS Trend Current Qtr Next Orr Cunnm Year Current Estimate 1. 13 1. 03 3.72 3.86 7 Days Ago 1. 13 1 .03 3.72 3.65 30 Days Ago 1. 12 1 .07 3.72 3.66 60 Days Ago 1. 1 0.88 3.72 3.68 90 Days Ago 1. 11 0. 81 3. 71 3.68 EPS Revlslons Current Orr N e x t Oa r Up Las! 7 Days N/A 1 1 1 Up Last 30 Days N/A 1 1 1 1 N/A Down Last 30 Days 1 N/A Down Last 90 Days N/A N/A Growth Estimates Current Qtr. PCG Industry 34.50% 3.23 106.00% 0.00 19.20% 1. 70 Next Year 1 .B0% 0. 15 Next 5 Years (per annum) 5.70% 0.07 Past 5 Years (per annum) 4.89% NIA Next Qtr. Current Year Current Year N/A Sector Nexl Yea N/A S&P 500 Recommendation Trends > Sting Buy guy 8 $1 Hoi a Undemerlorry Set 4 0 Jun Jul Aug s ep Recommendation Rating > 2. 1 v 1 Strong B e 2 B uy 1 3 Hold 4 Under perform 5 Sell l l l http://finance.yahoo.com/quote/PCG/ana1ysts?p=PCG 9/19/2016 PNW 76.88 0.59 0.77 % : Pinnacle West Capital Corporati - Yahoo Finance Marl Home Flickr Tumblr News Sports Finance Celebrity S&P 500 Dow 30 Nasdaq 2,139.12 0.04 (0.00 '/) 18120.17 5,235.03 9.54 (0.18 v-) 3 .6 3 (0 .0 2 °/~) Answers Groups Page 1 of 3 Mobile U rér, Yahoo Finance on Firefox » > * /~¢ Sco9rade Qualify for 'a00 &50 Fr- Trades Nmmlu Apply :Er A rnnnmrs TAM UNYH&FED AHH)llll7 lh1[NT TRADE FOR S795 PNW A minn E*TRAD E m-nv: vouvvouo un Watch Live: Yahoo Finance editormchief Andy Serwer hosts panel on global volatility P i nnac le W est C api tal C or por ati on ( P NW ) NYSE NYSE Real Time Price Currency in USD O 0 Add to watchlist 76.88 +0.59 (+0.77%) 76.88 0.00 (0.00%) Al dose 403 PM EDT After hours 4123 PM EDT Summary Conversations Statistics Profile Financials People also watch Na SCG PEG DTE TE Options Holders Historical Data Analysts Currency uh USD Earnings Estimate Current Orr next Qtr Current Yea Non year 7 7 14 17 2.45 0.37 3.99 4.2 No. of Analysts Avg. Estimate l l I i Low Estimate 2.29 0.28 3.92 4.18 High Estimate 2.55 0.52 4.03 4.25 Year Ago EPS 2.3 0.37 3.92 3.99 Revenue Estimate Cunem Orr Next Oh 5 5 10 13 Avg. Estimate 1.22B 758.33M 3.55B 3.67B Low Estimate 1.2B 734.09M 3.5B 3.56B High Estimate 1.245 794.88M 3.6B 3.88B 1.2B 734.43M 3.5B 3.55B 1.60% 3.30% 1 .60% 3.40% No. of Analysts Current Year Next yea l l 1 l l Year Ago Sales i Sales Growth (year/est) l l I 1 Earnings History EPS Est. EPS Actual 9n9/2015 12808015 3 1 3 0 f2 0 1 6 sr29r2o1e 2.32 0.26 0.12 1.14 2.3 0.37 0.04 1.08 Q OZ 0.11 0.08 0 06 l Difference l http://finance.yahoo.com/quote/PNW/analysts?p=PNW 9/19/2016 l l PNW 76.88 0.59 0.77 % : Pinnacle West Capital Corporati - Yahoo Finance Earnings History Surprise % 9890015 1znnr2015 3/30/2016 6/29/2016 .0.90% 42.30% -66.70% 5.30% Page 2 of 3 Curran! Qtr nix\ QT Cunonl Year Current Estimate 2.45 0.37 3.99 4.2 E 7 Days Ago 2.45 0.37 3.99 4.2 l 30 Days Ago 2.45 0.37 3.99 4.2 so Days Ago 2.38 0.33 3.99 4.2 90 Days Ago 2.38 0.33 3.99 4.2 EPS Trend EPS Revisions N6x1 Year Curran Qtr next Qtr Current Year man Year Up Last 7 Days N/A N/A N/A N/A Up Last 30 Days N/A N/A N/A N/A Down Last 30 Days N/A N/A N/A N/A Down Last 90 Days N/A NIA N/A N/A PNW industry 6.50% 3.23 N/A -0.00 Current Year 1 .80% 1.70 Need Year 5.30% 0.15 Growth Estimates Current Qtr. Next Qtr. Next 5 Years (per annum) 3.80% 0.07 Secwr S&P 500 KBB.com's O-all Best Buy for 2016 I \ . I Q,,v' . I) 4 - -11 l .14.74% /8 .4 yr. HONDA Past 5 Years (per annum) $3 The New Civic Seda sncrnow N/A Reeommendation Trends > 12 8. 4 Jun Jul llI Aug $WHQ Buy Be He Undemenorm Sen sq Recommendation Rating > 3.1 v Strong Buy http://finance.yahoo.com/quote/PNW/analysts'?p=PNW 2 B uy 3 Had 4 Under perform Sell 9/19/2016 Page l of 3 POR 43.62 0.58 1.35 % : Portland General Electric Co Co - Yahoo Finance Mall Home Flick! Tumble Spoils News France S&P 500 Dow 30 Nasdaq 2,139.12 .0.04 (000 %» 18120.17 .3.63 10.02 Al 6235.03 I ~l Answers Celebrity Mobile Oriff Yahoo Finance on Firefox » > / , 9.54 (0.18 AI Groups TRADE FOR s 7.95 POR A nnnusr @ OFUONTRADES S7 4 so.7o PER c f~ ~ 4" w" r TAKF Au . u H . 1 rH NT. E l » ~ 9 » * M POR is 135% up Exclusive: Warren Buffett George Soros and more P o rt la n d G e n e ra l E le c t ric C o m p a n y (P O R ) Q Add to watch list l L. re Lookup NYSE NYSE Real T1 M€ Pnce Currency an USD 43.62 +0.58 (+1.35 0/0) Peode aim watch: N M I D A PNM PNW BKH A! dose 4 02 PM EDT Summary Conversations Statistics Profile Financials Options Hddees Historical Data Analysts Currency an use Cur18fl Qu Next Qtr Current Year Next year e 8 11 12 Avg. Estimate 0.43 0.57 2.12 2.37 Low Estimate 0.4 0.48 2. 1 2.25 High Estimate 0.46 0.63 2.17 2.43 Year Ago EPS 0.4 0.57 2.04 2.12 Eamlngs Estimate No. of Analysts Revenue Estimate Curflrl Ole Ne x t O U Current Year Next Year 4 4 9 10 Avg. Estimate 471.44M 536.47M 1 .97B 2.05B Low Estimate 413.7M 479.64M 1.9B 1.97B High Estimate 501.33M 637.91M 2.15B 2.22B 478M 499M 1.9B 1.97B 1 .00°/> 7.50% 3.60% 4.10% No. of Analysts Year Ago Sales Sales Growth (year/est) Earnings History EPS Est. EPS Actual Difference 9129f201 s 12/30/2015 3/30/2016 erzwzme 0.48 0.62 0. 81 0.43 0.4 0.57 0.88 0.42 0.08 -0.05 0.07 001 http://finance.yahoo.com/quote/POR/analysts'?p=POR 9/19/2016 Page 2 of 3 POR 43.62 0.58 1.35 % : Portland General Electric Co Co - Yahoo Finance Earnings History Surprise % EPS Trend 9898015 12/a0r2015 3/30/2016 er29r2o1e 18.70% 8.10% 11.50% 2.30% Cubism Y€8f Next year Current Qtr Next Qtr Current Estimate 0.43 0.57 2.12 2.37 7 Days Ago 0.43 0.57 2.12 2.37 30 Days Ago 0.43 0.57 2.12 2.37 60 Days Ago 0. 41 0.56 2. 11 2.35 90 Days Ago 0. 41 0.56 2. 11 2.35 Curred Our non Qtr Cunsnt Year Next Year Up Last 7 Days N/A N/A N/A N/A Up Last 30 Days N/A N/A N/A N/A Down Last 30 Days NIA N/A N/A N/A Down Last 90 Days NIA N/A N/A N/A EPS Revisions FOR lf\dlJ 5( y 7.50% 3.23 N/A 0.00 3.90% 1. 70 11.80% 0.15 Next 5 Years (per annum) 6.30% 0.07 Past 5 Years (per annum) 7.84% Growth Estimates Current Qtr. Next Qtr. Current Year Next Year Sector S&P 500 [4 V3f]QLI3fd®Y0UI' clients' portfolios today. . 8 o I* DL. . N/A Recommendation Trends > "I'll $9mn9 Be BW Had 8 unae-¢>e»1<=m 4 Self ln Jul Aug Sep Recommendation Rating > 3 v 1 Strong B e http://finance.yahoo.com/quote/POR/analysts'?p=POR 2 B uy 3 Hol d 4 Under perlbrm 5 Sen 9/19/2016 i Page 1 of 3 PEG 42.66 0.36 0.85 % : Public Service Enterprise Group - Yahoo Finance Home MaM Fllckr Tumblr S&P 500 Dow 30 2139.12 .o.o4 (too H 18120.17 .3.63 (.0.02 /4 ~» Sports News France Answers Celebrity Mobll€ Groups °rér,. yahoo France on Firefox > Nasdaq > 5235.03 \ I 9.54 (0.18 '/.1 a n A T rwu F S UH 1% w t ArAH~1l HAEIIT I E n - c u u u g OPEN AN Accouter 1 E*TRADE IDIITW IP GITYO LIO ScoWlade m a n y fo r * ZW A 5 0 F ro T ra d e s 1 \k 1 1 e Apgxl Exclusive: Warren Buffett George Soros and more P u b l i c S e r vi c e E n te r p r i s e G r o u p In c . ( P E G ) 8 Add to watchlist . NYSE NYSE Real Time Price Currency an USD 42.66 +0.36 (+0.85 Q/)) 42.66 0.00 (0.00%) Al dose 4 03 PM EDT After hours; 4:23 PM EDT Summary Conversations Statistics Profile Financials Options D».. CI Peode also watch PCG PPL FE PNW AEP Holders Historical Data Analysts Currency III USD Current Qtr Next Qtr Current Year Next year 8 8 15 18 Avg Estimate 0.88 0.5 2.87 2.88 Low Estimate 0.77 0.4 2.82 2.73 High Estimate 1 0.58 2.9 3 Year Ago EPS 0.8 0.5 2.91 2.87 Current Qtr Next Qtr Current Year Next V 837 5 5 11 13 Avg. Estimate 2.82B 2.59B 10.2B 10.46B Low Estimate 2.65B 2.33B 9.47B 9.278 High Estimate CB 3.11B 11.49B 11.998 Year Ago Sales 2.69B 2.28B 10.41B 10.28 Sales Growth (year/est) 4.90% 13.90% 2 00% 2.50% Earnings Estimate No. of Analysts Revenue Estimate No. of Analysts 9*f2912015 12/:40r2015 3/304016 612912018 0.81 0.5 0.88 0.58 EPS Actual 0.8 0.5 0.93 0.57 Difference 0.01 N/A 0.05 0 01 Earnings Hlstory EPS Est. http://finance.yahoo.com/quote/PEG/analysts'?p=PEG 9/19/2016 Earnings History 9f2912015 1213012015 3/30/2016 5/2912018 1.20% N/A 5.70% 1 .70°/0 Current Year NGXI Year r i Page 2 of 3 PEG 42.66 0.36 0.85 % : Public Service Enterprise Group - Yahoo Finance Surprise % Current Orr EPS Trend Next Qtr 0.88 0.5 2.87 2.88 7 Days Ago 0.9 0.49 2.88 2.88 30 Days Ago 0.9 0.49 2.88 2.88 so Days Ago 0.88 0.52 2.88 2.88 90 Days Ago 0.87 0. 51 2.87 2.89 Current Estimate EPS Revlslons Current QU Next Qtr Current YG8I nm Year Up Last 7 Days 1 2 1 N/A Up Last 30 Days 1 2 1 N/A Down Last 30 Days N/A N/A 1 N/A Down Last 90 Days N/A N/A N/A N/A GrovNh Estimates PEG lnausuy 10.00% 3.23 N/A 0.00 Current Year 1.40% 1 .70 Next Year 0.30% 0. 15 Next 5 Years (per annum) 1.42% 0.07 Past 5 Years (per annum) 2.53% N/A Current Qtr. Next Qtr. Senor se.p 500 Recommendation Trends > l I Strung Buy Be Hold Unaemen0vvn Sell Aus Recommendation Rating > 2.8 v 1 Strong B uy http://finance.yahoo.com/quote/PEG/analysts'?p=PEG 2 B uy 3 Hol d a Under perform 5 Sell 9/19/2016 SCG 72.85 0.93 1.29 % : SCANA Corporation Common Stock - Yahoo Finance Mill Hom e F l i ck s SHIP 500 2139.12 Tumblr Spots N e ws Dow 30 18,120.17 0.04 (000 /») I 4 France Cdebm y Nasdaq 5,235.03 .9.54 10.18 %) 3.63 (0.02 °/-1 Groups A ns we r s Page l of 3 Mobile 'Fury yahoo Finance on Firefox » > 5 OPEN AN AccounT I E TRADE S ci ? ? ra d e s o FR EE T R AD ES w/ '1 9 K l:>e p o s lr R-ukileau Apnl GET n TRAZDHFS r\)<£ U N M r FH ) AJNI]bN(.FMiNT. Ea u a r u u u 40. Exclusive: War r en Buffett Geor ge Sor os and m or e SCANA Corp. (SCG) NY S E Q A d d t o wa t c h l r s t Q u o te L o o k u l NY SE R e a l T i m e P ri ce C u rre n cy i n U SD 72.85 +0.93 (+1.29 %) 12.85 0.00 (0.00%) A t d o s e 4 0 3 P M ED T Conversations S u m m a ry People alscwatch; PN W W EC T E PEG W R Af te r h o u rs 4 : 2 3 P M EDT Statistics Profile Financials Options O Hod8rs Historical Data Analysts cu rre n cy m u s e Earnings Estim ate C urre nt Q tr Next Ole C urre nt Ye a r Ne x t Ye a r 7 7 10 10 Avg. Estimate 1 .07 0.91 3.97 4.18 Low Estim ate 0.94 0.85 3.84 4.03 High Estimate 1.18 0.97 4.06 4.32 Year Ago EPS 1.04 0.69 3.81 3.97 Current Q tr Ne x t Q tr C gfre nl Ye a r Next yes 3 3 9 9 Avg. Estimate 1.14B 1 .358 4.54B 47B Low Estim ate 959.33M 1.01B 4.05B 4.17B High Estimate 1.23B 1 .82B 5.128 5.29B Year Ago Sales 1.07B 956M 4.38B 4.54B 6.60% 40.90% 3.70% 3.50% No. of Analysts Revenue Estim ate No. of Analysts Sales Growth (year/est) Earnlngs History 9/29/2015 12/30/2015 3/30/2016 EP S Es t. 0.96 0.75 1 .34 074 EPS AdU8l 1.04 0.69 1.23 0.74 Difference 0.08 o OF O 11 N/ A http://finance.yahoo.com/quote/SCG/analysts?p=SCG 612912016 9/19/2016 Page 2 of 3 SCG 72.85 0.93 1.29 % : SCANA Corporation Common Stock - Yahoo Finance Earnings History SUfplis8 % 9r29r2015 12/30/2015 3/30/2016 M94016 8.30% 800% 8 20% N/A l Current Orr Next Orr Current Year man Yea Current Estimate 1. 07 0. 91 3.97 4.18 7 Days Ago 1. 05 0. 91 3.97 4.18 30 Days Ago 1. 05 0. 91 3.96 4.16 60 Days Ago 1. 05 0.94 3.95 4.15 90 Days Ago 1. 05 0.94 3.94 4.16 Current Ole Next Ort Curran! Year Up Last 7 Days N/A N/A N/A 1 Up Last 30 Days N/A N/A N/A 1 Down Last 30 Days N/A N/A Down Last 90 Days N/A N/A EPS Trend l EPS Revisions Next Year l 1 l 1 l l Growth Estimates SCG lf1dU 5lfy 2.90% 3.23 31 .90% 0. 00 Current year 4.20% 1. 70 Next Year 5.30% 0.15 Next 5 years (per annum) 540% 0.07 Past 5 Years (per annum) 6.93% N/A Current Qtr. Next Qtr. 1 N/A Sector l i 1 1 N/A S&P 500 Recommendation Trends > Strong Be I II I BUY Hoi Unaemer'vrr I SelI I Jun Jul Aug Sep Recommendation Rating > 2.7 Jr 1 Strong B e http://finance.yahoo.com/quote/SCG/analysts?p=SCG 2 B uy 3 Hold 4 Undef perform 5 Sell 9/19/2016 Page 1 of 3 SRE 107.94 1.32 1.24 % : Sempra Energy Common Stock - Yahoo Finance I Home Flickr Mad Tumblr S&P 500 Dow 30 2139.12 004 (0.00 M 18,120.17 l 4 Sports News France Answers Celebrity Mobile Groups 'rér, Yahoo France on Firefox > Nasdaq 3.63 (0.02 °/,1 > 5235.03 .9.54 (0.18 %) I GU A M Ao [ n s TAM GH Ink FEW AHn<;llr4c£1.1£NT [ 3 A » ¢ u » * § ® Sailhmnls $ 7 T u n e s 4 s .. 5 LJP TIO N C O NTP m "1 OPEN AN ACCOUNT l SRE is 1.24% up l l 1 l Exclusive: Warren Buffett George Soros and more Sempra Energy (SRE) Q Ala to watc hhst lute Lookup NYSE NYSE Real Time Price Cunrenqf in USD 107.94 +1.32 (+1.24%) 107.94 0.00 (0.00%) AI close 4503 PM EDT After hours 4:23 PM EDT Summary Conversations Statistics Financials Profile Options O People also watch: EIX PC G XEL PEG TE Homers Historical Data Analysts Currency in USD CurreM Qtr Next Qtr Current yea Next Year 7 7 15 18 Avg. Estimate 0.92 1.57 4.79 5.13 Low Estimate 0.82 1 .43 4.6 4.92 High Estimate 1.01 1 .88 4.92 5.38 1 .47 5.21 4.79 Earnings Estimate No. of Analysts Year Ago EPS 1 Current Qtr Next Qtr Current Year non Y 83f 3 3 9 g Avg. Estimate 2.73B 3.09B 10.49B NB Low Estimate 2.58B 2.98 10.22B 10378 High Estimate 2.93B 3.45B 109B 11.53B year Ago Sales 2.48B 2.7B 10.23B 10.49B 10.10% 14.40% 2.50% 4.90% Revenue Estimate No. of Analysts Sales Growth (year/est) Earnings History EPS Est. EPS AC1U8l Difference 9t29r2015 12/30/2015 3/30/2016 6129/2016 0.88 1.32 1.66 0.97 1 .47 1.47 0.79 0.15 0.19 0 18 1 0.12 http://finance.yahoo.com/quote/SRE/analysts?p=SRE 9/19/2016 SRE 107.94 1.32 1.24 % : Sempra Energy Common Stock - Yahoo Finance Earnings History Surprise as 912942015 12130/2015 313012016 er2sv2o16 13.60% 11.40% 11.40% 18.60% Cubism Year Next Year Current Orr EPS Trend NGHGQU Current Estimate 0.92 1.57 4.79 5.13 7 Days Ago 0.92 1.57 4.79 5.13 30 Days Ago 0.92 1.55 4.79 5.17 60 Days Ago 0.97 1.43 4.82 5.25 90 Days Ago 0.97 1.42 4.86 5.34 CunemQ¥:. Mn QU EPS Revlslons Ghent Y88I Next Year N/A N/A N/A NIA N/A Up Last 7 Days N/A Up Last 30 Days N/A Down Last 30 Days N/A N/A N/A N/A Down Last 90 Days N/A NIA N/A N/A Growth Estimates S RE 1 mausuy Seder Page 2 of 3 S8 P 5 0 0 1¢ Current Qtr. 8.00% 3.23 Next Qtr. 6.80% 0.00 Current Year 8. 10% 1.70 Next Year 7.10% 0.15 . s ;. r* » 2 Q4 ,r 8 g. . Lp 1 t'-'7 1 ' \> ¢ *s+ Next s Years (per annum) 8.78% 0.07 Past 5 Years (per annum) 3.30% NIA 1a Your support brings hope. 0 Donate today. g. Recommendation Trends > 4 14 Strong Buy Buy M0112 7 Ul1d81Ptv\ovv" Sell . $99 Recommendation Rating > 2.1 ! 1 Strong Buy http://finance.yahoo.com/quote/SRE/analysts?p=SRE 2 Buy 3 Ho i 4 Underperform 5 Sell 9/19/2016 I I : I ; VVC 50.36 0.30 0.60 % : Vectren Corporation Common Stoc - Yahoo Finance Home Mall Flnckr S&P 500 2,144.06 494 (0.23 /-I Tumblr Spots News Dow 30 18,164.58 44.41 (0.25 v.) Finance Answers CQISDTIIY Nasdaq 5,248.25 13.22 (0.25%) Groups Page l of 3 'r§r,. Yahoo Finance on Firefox Mobile > TRADE FOR $7.95 WC iS 0.80% up a c a c A roman S c ot frade Lin Ly for LIN l 50 Fr- Trades Ronlkiiom A0941 Watch Live: How to respond to growing security threats around the globe Vectren Corporation (WC) E Q Add ro watc hlis t NYSE NY§E Real Time Prioe Currency in USD 50.36 +0.30 (+0.60% ) People also watch. WGL N WN BKH PN Y U G I As of 2;18 PM EDT Market open. Summary Conversations Statistics Profile Options Financials Holders Historical Data Analysts Currency in USD Eam lngs Estim ate Curred Qtr man Qtr Current year Next Year 5 5 6 Avg. Estimate 0.64 084 2.47 2.66 Low Estim ate 0.52 0. 81 2. 41 2.6 High Estimate 0.67 0.86 2.5 2.7 Year Ago EPS 0.48 0.79 2.39 2.47 1 No. of Analysts Revenue Estim ate e Cufrgn( OU Next Q!! Current year man Year 2 2 4 4 Avg. Estimate 611.78M 647.96M 2.4aB 2.62B Low Estim ate 587.66M 619.01M 2.33B 2.35B High Estimate 535.gM 676.9M 2.6B 2.8B Year Ago Sales 573.5M e04m 2.43B 2.4aB 6.70% 7.30% 2.00% 5.40% No of Analysts Sales Groff (year/est) Earnings History 9491201 s 12/300015 3/30/20w 6/zg/zm 6 EPS Est. 0.62 0.7 0.69 0.43 EPS Actual 0.48 0.79 0.58 0.39 Difference 014 0.09 . 011 O 04 http://finance.yahoo.com/quote/VVC/analysts'?p=VVC l l l ll 9/20/2016 VVC 50.36 0.30 0.60 % : Vectren Corporation Common Stoc - Yahoo Finance Earnlngs Hlstory 9 V2 9 I2 0 i 5 Surprise % 12/30/2015 3/30/2016 6/290016 12.90% .. 15.90% 9.30% CurreNt year Next Year 22.60% EPS Trend Current Orr N ew Q tr Current Estimate 0.64 0.84 2.47 2.66 7 Days Ago 0.64 0.84 2.47 2.66 30 Days Ago 0.63 0.85 2.47 2.67 80 Days Ago 0. 61 0.82 2.47 2.67 90 Days Ago 0. 61 0.82 2.47 2.67 Current Qtr Next Qtr C urrenl Year next Year N/A N/A N/A N/A 1 N/A N/A N/A Down Last 30 Days N/A N/A N/A N/A Down Last 90 Days N/A N/A N/A N/A EPS Revisions Up Last 7 Days Up Last to Days WC Industry 33.30% 0.46 Next Qtr. 6.30% 0.00 Current Year 3.30% 0.03 Next Year 7.70% 0.07 Next 5 years (per annum) 5.00% 0.04 Past 5 Years (per annum) 8.B7% N/A Growth Estimates CulTent Qtr. S 8C 10f Page 2 of 3 \ S 8 .P 5 0 0 Recommendation Trends > $U U HQ Be B e Hold U r\del]Jer1 onv . i 1 i i S et! Ava $¢ Recommendation Rating > 3.2 v t S trong Buy http://finance.yahoo.com/quote/VVC/analysts'?p=VVC Emmy 3 Hol d 4 Under perfom i b Sell 9/20/2016 Page l of 3 WR 56.08 -0.01 -0.02 % : Westar Energy, Inc. Common Stoc - Yahoo Finance Home Mail Flackr Tumblr Sports News France Answers Celebivy S&P 500 Dow 30 Nasdaq 2,143.89 4.77 (0.22 v~) 1 8 1 6 3 .5 5 4s.sa (0.24 °A) 5,241.87 12.a4 (o.2s %) Groups Mobile wr§r, Yahoo Fmanee on Firefox > E * T R A D E u>AI1nv¢»on1roLlo E Apulanan Mobile Trading App S c o fh a d e Q ualify for 'we & :U Fr- Inca nnneuauWHY TRADE FOR $7.95 WR A nmany watch Live: How to respond to growing security threats around the globe Westar Energy, Inc. (WR) Q Add ro watchlist w. NYSE NYSE Real Time Price Currency in USD 56.08 -0.01 (-0.02 %) People also watc h G XP LNT SCG WC wsc As of 2 19 PM EDT. Market open. Summary Conversations Statistic s Q Financ ials Profile O ptions Holders Historical Data An a l ysts - 1 Currency in USD Current Qtr Next Qtr Current Yea next Year 3 2 8 9 Avg. Esti m ate 1.04 0.48 2.45 2.52 Low Estim ate 0.91 0.39 2.43 2.44 High Estim ate 1.11 0.57 2.48 2.6 Ye a r Ag o EPS 097 0.28 2.09 2.45 Ea m i n g s Esti m a te N o o f An a l ysts R e ve n u e Esti m a te Current OU Next Ole Cwvum Year Next Year 2 1 7 7 Avg . Estim ate 788.71 M 637.33M 2.57B 2.65B Low Estim ate 762.42M 637.33M 2.53B 2.59B High Estim ate 775M 837.33M 2.61 B 2.74B 732.83M 545.97M 246B 2.57B 4 .9 0 % 18.70% 4.40% 3.30% No. of Anal ysts Year Ago Sales Sales G rowth (year/est) 9/29/2015 12/308015 3/30/2016 612942016 EPS ESL 1 .03 0.38 0.46 0.53 EPS Ac tual 0.97 0.28 0.46 0.51 Differenc e 0 06 0.08 N /A 0.02 Ea r n i n g s H i sto r y http://finance.yahoo.com/quote/WR/analysts?p=WR • 9/20/2016 WR 56.08 -0.01 -0.02 % : Wester Energy, Inc. Common Stoc - Yahoo Finance Earnings History Surprise % 9/29/2015 12/30r2015 3/30/2018 er29r2o1s 5.80% 22.20% n/A' 1 3.80% Page 2 of 3 l I l 1 EPS Trend Curred QD N6X! Q h Culler year Nexl Year Current Estimate 1.04 0.48 245 2.52 7 Days Ago 1.04 0.48 2.45 2.52 to Days Ago 1.04 0.43 2.45 2.52 60 Days Ago 102 0.43 2.45 2.53 90 Days Ago 1 .02 0.43 2.44 2.53 Cuvenl Orr EPS Revlslons Ne x t Q U Current Year man year Up Last 7 Days NIA N/A N/A N/A Up Last 30 Days NIA NIA N/A N/A Down Last 30 Days N/A NIA NIA N/A Down Last 90 Days N/A N/A N/A NIA Growth Estimates Current Qtr. vv I industry 7.20% 3.23 Next Qtr. 71.40% 0.00 Current Year 17.20% 1. 70 Next Year 2.90% 0.15 Next 5 Years (per annum) 4.45% 0.07 S8c!or S&P 500 W gr r. I . . y al Jim W i .. 3 f, ! 8~ 4 QuI w»z» » m n rws ll. 81 ll Past s Years (per annum) 3. 76% N/A Recommendation Trends > Strung Buy Bev Hoi Undeqaerfom Sell Recommendation Rating > 3 v 1 Strong Buy http://finance.yahoo.com/quote/WR/ana1ysts?p=WR 2 B uy 3 Hol d 4 Uhdgf. perfoml l. S en 9/20/2016 l Page 1 of 3 XEL 41 .56 -0.12 -0.29 % : Xcel Energy Inc. Common Stock - Yahoo Finance Home Melli Flicks Tumble News sap 500 Dow 30 z144.22 5.10 (0.24 %) 18,164.70 44.51 (o.2s sol Spoils Financ e Celebrity Answers Groups Mobile wr§r, Yahoo Finance on Firefox ) Nasdaq > 5,248.59 1s.se (0.26 %) I A E 1-TRADE . /. ; ¢oAvs c »4Anoes9 Sc offrade X ") + Free r.€ls w/ *50K Dqaosit Nsmkimn Aw'! OPEN AN A C C O U NT 1 GH A nnnuzns ion ON THE FED Announcement. . EA- du* Watch Live: How to respond to growing security threats around the globe O Q Add to watchlist Xc e l Ene rgy Inc . (XEL) NYSE NYSE Real Time price Currency in USD 41.56 -0.12 (-0.29 0/0) People also watchz T E W E C P NW C NP P E G As UV 2 22 pM EDT Market open Summary Conversations Statistics Profile Financ ials Options Holders Hlstoncal Data Analysts Currency in USD Curlunt Orr Next Qtr Curvsni veal Next Yea 5 5 15 16 Avg. Estimate 088 0.47 2.2 2.32 Low Estimate 0.83 0.43 2.17 2.27 High Estimate 0.9 0.52 2.22 2.35 Y ear Ago EPS 0.84 041 2.09 2.2 Eamlngs Est imat e No. of Analysts Next O le Current Year Next Year 3 3 10 11 Avg. Estimate 3.44B 2.95B 11.66B 11.94B Low Estimate 2.95B 2.83B 11.22B 11.38B High Estimate 4.28B 3.03B 12.57B 12.998 2.9B 2.65B 11.02B 11.66B 18.60% 11.50% 5.80% 2.40% Revenue Est imat e Cull Qu No. of Analysts Year Ago Sales Sales Grovnh (year/est) 9/29/2015 12/30/2015 a/sor2o1e 6/29/2016 0.8 0.4 0.47 0.4 EPS AC1U8l 0.a4 0.41 0.47 0.39 Difference 0.04 0.01 N/A 0.01 Earnings HIstory EPS Est. http://Bnance.yahoo.com/quote/XEL/analysts?p=XEL 9/20/2016 XEL 41.56 -0.12 -0.29 % : Xcel Energy Inc. Common Stock - Yahoo Finance Earnings Hlstory Surprise % 912942015 12/3orzo 15 3:30/"IW3 et2sr2o 1e 5.00% 2.50% N/A .250% Cunem yea Next Year \ EPS Trend N€XY Orr Current Of Current Estimate 0.88 0.47 2.2 2.32 7 Days Ago 0.88 0.47 2.2 2.32 30 Days Ago 0.89 0.48 2.2 2.31 60 Days Ago 0.88 0.46 2.2 2.32 90 Days Ago 0.86 0.46 2.2 2.32 Cunem Orr Next Orr Current Year N/A N/A N/A 1 1 1 2 Down Last 30 Days N/A N/A NIA N/A Down Last 90 Days N/A N/A NIA N/A EPS Revlslons Up Last 7 Days Up Last 30 Days Grovnh Estimates Current Qtr. XEL !f\dus\ly 3.23 14.60% 0.00 Current Year 5.30% 1.70 Next Year 5.50% 0. 1 s Next 5 Years (per annum) Past 5 Years (per annum) Next Year 1 S&P 500 THE WALL STREET JOURNAL 4.80% Next Qtr. Seetof Page 2 of 3 542% 0.07 N/A 90", g UI INSIGHTS.NOTSOUNDBITES SIZ F O RIZ WEEKS 9\ . 9 L s v 4 I 3.19% (> 1 \ 4,. Job NOW v l lllCl!ll1 Recommendation Trends > I'll S'f°"\9 Be BUY Haag Undefperlnrm Se" 0 L Aug Q 94 Recommendation Rating > 2.7 v 1 Strong Buy http://finance.yahoo.com/quote/XEL/analysts'?p=XEL 2 B uy a Hold 4 Under perform 5 Sell 9/20/2016 SCHEDULES II . .I : i SCHEDULE JAC . 1 Page 1 of 2 Arizona Public Service Company Test Year Ending December 31, 2015 Docket No. E-01345A160036 WEIGHTED AVERAGE COST OF CAPITAL (Dollars in Thousands) Capitalization PerCompany Llne M Description 1 Long Term Debt $ 2 Preferred Stock $ 3 Common Equity $ 4 TOTALCAPITALIZATION 3728555 4.706,351 RUCO Adlustments RUCOAdjusted Capitalization $ $ $ $ $ $ $8.434906 $ 3728555 Capital Ratio Cost Rate Weighted Cost 44.20% 5.13% 2.27% 0.00% 0.00% 0.00% 4706351 55.80% 9.42% 5.26% $8434906 100.00% 7.53% 1 i i Arizona Public Service Company Test Year Ending December 31 2o1s Docket No. E01345A160036 Schedule JAC1 Page 2 of 2 Con of Capital Calculation Fair Value Rate Base (FvRa) and Fair Value Rate of Return (WROTE) i . RUCO Recommended [Dollars in Thousands) Calculation of RUCO Fair Value Rate Base (FVRB) Line No. 1 2 3 Rate Base Estimate 1 Original Cost Rate Base (OCRB) . RUCO Recommended 2 Reconstruction Cost New (RCND) Rate Base . RUCO Recommended Fair Value Rate Base (FVRB) Amount s s Weighted Amount Weighting 6451009 12859542 50% 50% s s 3225505 6429771 9655276 s 3.204.267 4 s 6 Appreciation above OCRB FV/OCRB Multiple 150 Calculation of RUCO Falr Value Rate of Rstum (FVROR) Capital 7 8 9 10 11 12 13 LongTerm Debt Common Equity Capital Financing OCRB 9 Fair Value Increment Fair Value Rate of Recur Amount s Percent Cos t Rate Weighted Cos t 29.53% 37.28% 5.13% 9.42% 1.52% 351% s 2851 .596 3599413 6451009 s 3204267 33.19% 100% 0.33% s 9.655.276 100.00% Sources: 1 Radigan Direct Schedule FWR1 2 Radigan Direct Schedule FWR1 J RUCO adopts the Company proposed 1.0 % cost rate to be assigned to the fair value increment. 5.36% Arizona Public Service Company Test Year Ending December 31, 2015 Docket No. E-01345A16-0036 SCHEDULE JAC . 2 Page 1 of 1 Cost of Common Equity As Obtained from RUCOs Proxy Group of Companies Line M 1 Discounted Cash Flow Model (DCF") Estimated Cost Weight Factor Weighted Cost Schedule JAC 3 8.45% 40% 3.40% 2 Capital Asset Pricing Model ("CAPM") Schedule JAC 4 7.40% 20% 1.50% 3 Comparable Earnings Model (CE") Schedule JAC 5 10.31% 40% 4.10% 4 Indicated Cost of Common Equity 5 Indicated Cost of Equity after Weighting Adjustment 8.72% 9.00% Cost of Common Equity As Obtained from Dr. ViIIadsen's Nuclear Subsample Line M 1 Discounted Cash Flow Model ("DCF") Estimated Cost Weight Factor Weighted Cost Schedule JAC . 3 8.85% 40% 3.54% 2 Capital Asset Pricing Model ("CAPM) Schedule JAC 4 7.28% 20% 1.46% 3 Comparable Earnings Model (CE") Schedule JAC 5 11.06% 40% 4.42% 4 Indicated Cost of Common Equity 5 Indicated Cost of Equity after Weighting Adjustment 9.42% RUCO Recommended Cost of Equi 9.42% 9.06% I I I Schedule JAC . a Page 1 of 4 Arizona Public Service Company Test Vur Ending Daclmbcr 31. 2015 Docket No. E01345Al641085 C O NSTANT GR O W TH DC F AnALvsls Ba u d o n R UC O l Ehcm c Sqynple C qqpa nlq u rn vvox GNU c Ag ¢A» C lnM lllld n d V1444 l J L l Eu (B) (C) lm (E) (Fl (G) Gunn: R h l n vlslnue R n lu o n nm Van Nl l i f k vv=l1¢n¢ EPS Aua go An n a a lm a Qm nunn pvuom-4 F sh-¢ f Bi!l§ In) Ex psud nnfama Vlad al < Q u a IP or Mn 1 ALLET E 3 5* 2796 3.0% 4 .5 * 3.8* 50098 3.8% 3.5% 7.3* 2 Alliant Energy 32% 4.0% 4 7% 5 6% 4 was 6.60% 5 2% 3 2% a 4% 3 American Elednc Power 3.8% 3.a% 3 ass 4.2% 4 3% 231% 3 7% 3.6% 7 3% A Ameuvn Corp 15% 2 6* 3.2% NM F 4.5% 5.20% 3 9% 15% 1 4% 5 CMS Energy Corp lo s s 5 2% s o% 9.7'/» 6 2% 7.27% u s 11% 9.8% s Con$olid8\e¢ Edison :Less 3.3% 2 8% 2.7% 3.0% 1.98* zoos 3 7* 6.4% 7 Dominion Resauroes 3 8% 3.6% 4.3% 3.398 8098 5.M% 5094 3 ass wa s a DTE Enemy 3 3% 3.6% 19% 5.2% 53% 5.35* 4714 3 4* l.0* 9 Edlsonlvuemational 2 7% e 4% 55% 3.0% e 2% 2n% s1* 2 8* 7.5% 10 Elpa sn Ele a nc 2 7* 5.971 40% 5.8% 5.0* 1 00% s 5* 2 ass s 3% 11 Emefgy c91p. 45% 5.2% 4 5% 2.5% 2.1* NM F 3 7% 4 7* 1.4% 12 Greal plams Enel9y 3.8% 2.3% 2.3* 3.0% 4.2% 5.00* 14% 3 9* 7 :ms 13 IDAC O R PInc 2 9% 5.G* 40* 7.3% 4.8% A Cox s 2% 2.g * 5. * 14 MGE Ene rgy 2.1% 5.3% 5895 5.0% 5.3% 4.00% s. was 2 2% 7.3* 15 Nex\Era Ef\°i\lv 2.9* 6.1% 10% 7.0% 7.2% NM F s ass 2 9* wa s 16 O GE Energy 15* 8.5% 3 3* 7.0% 5.3% 4.304 5.3* 3.8* 0.9% 17 Ouef Tanlcorp 3.5% 1 .B* 2.3* 8.0% 4.3% e 00% 4 5* u s o 1* 1 9 P Ga E cu p . 3.2°/» 1 I* 42% 2.5% 7.6% 5 vs 4 ahs 3.3% 7.7* 1 9 P m n ld e we s C lp i\I I 3.3* 3.7* 3.5% 4.7% 4.2% 3.80% 4 ass 3 as 7.4% 20 Portland Geneva! 3.0% 3.7* 35% 4.0% 5.0* e 30% 4598 3.1% 7.6% 21 Public>senlooEmolplisB 3.9* 6 2* 4.5% 4.9% a.sss 112* 4 1* 4 w 5.1% 22 ScAnA C o 4p. 3.2% 4.2% 45% 4.0% 4.ass 5.40% 45% 3.3% 7.9% 23 sempra Energy 2.9* 5.3% 4 o% 6.3% 6.0% e 75% 5796 ams a.1ss 24 Vearen Culp. 3.3* 2.6% 4.7* 2.7% 6.3% 5.00% 4398 3.398 1 698 5.3* 4.7% 4.45* 45* 2798 7 3% 5 42* 4.8% 3496 8.2% 4.62% 3. 35* 7.95% 3. :sos 1.91% (l) DCF B582 25 WestarEnergy 2.7* 3 6* 4.1% 26 XeeIEnergy Inc. 3.4* 4 5* 4.9% 5.0* 5.2% 29 Me a n 30 31 3.28% 4.2a* ness 4934 5 1 (l* 32 Me dia n 33 34 3.2B* 38g* 4001s ANS* 4.92% s.1oss 4.5494 35 CornposloMean 36 37 m ass 7.31* B.28* a.45ss 1.28% ness ea CompositeMedian 72456 7.145% 8.1098 8.27% 27 20 79298 CONSTANT GROWTH DCF ANALYSIS Based on RUCOl Nuclear Suhsam pk Com panlss 4.0% (9) (C) (D) (E) Mhlftc a 1-1un Unum vvquaa lunnuan mum Y N! 'ill wm a : Q nsunnm vvupauu Ru sn9D*\I\ UMM # ww4 Sn Qmm Anuge 44:49 pp Expoeh¢ Dlvidind plan uz.£r.. 2.9% 12% 3.3% 3.9% 32* 2.8% 3.6% 16* 5.2* 6.1* wa s 3.7% e 2% 42* 4.7% 3 2* 4396 3.8% 4 5* 3 Q* 4.2% 3.5% 4 5* 4.5* 5.8% NM F 3 3* 5.2% 25% T D* 25% 4 7* 4 8% 4.8% 4.5% 5.0% 5.3% 2.7* 72* wa s 4.2% 3.5% 4 ass ams 5.2% s 0* 5.4% NM F NMF 5794 3.8% 1 .ms 5494 5.2% 3.9* 5.0% 4 7* use 5 8% 41% 4.0% 4 1% 4 ass 3 2* 3 5* 19% 14% 4.7% 2.9* 3 3* :u s e 4.0% 3.3% 8.4% 7.4% 89% ams 8.4% 8.7% 1 res 7.4% a 1% 7 9% Men : o w 4.0996 4.02% 442* 5.28% 4.93% 4.53% 157* m oss Mexiim 3.31* 382* 42591 4.87* 4 83% 5.:\a% 4.49% 3.39% l.07* Cam¢ow@Me1n 1 my 7 .9 % 7 .n % B.W% o w Composite Median 7.21% 764* a.osss l.16* m ass LMI M 1 2 3 4 s 6 1 a 9 10 11 12 13 14 15 16 11 la 19 20 21 n m.IJ¢ 2sgm Adam Energy Ameron Com Dominion Resauueas DTE Enuuv Energy Corp. Nex1Enl E"°'\lY PG&E Corp. Pmnade West Capon Public Savvico Enteipties SCANA Corp. 1 (A) Cuvnna umaana Veld L BL P ; 3.2% 15% ll* 3.3% 4.5* Note: Negative values not used in calculations. mum. column lA) . SchoaullJAC . a page a all Cdulw\(B) Sc.h ¢u\oJAC 3 plgcl old Column(C) Sd\¢duI JAC3. pugol MY Colmn (D) and Column (E) Sdnuuls JAC 3. nag:2 ol 4 Column (F) So yahoo Ftnancl Analyst EPS Growth Eshmaiu NaaM 5 V-ls mnenmavn 7 Cduvvvu (G) . Avenge Cutumns (B) through [F] Column (H) . Cahlmn (A) ll » Column (G)] Cclumnil) ceouvnn (G) Column (n) 8.22% (F) (G) I I I Arizona Public Service Company Test Year Ending December 31, 2015 Docket No. E-01345A-16-0036 Schedule JAC 3 Page 2 of 4 PROXY GROUP __ DIVIDEND YIELD (A) Line _*Q Proxy Group Companies DPS $2.08 $1.18 $2.24 $1.70 1 2 3 4 5 6 7 8 9 10 11 ALLETE Alliant Energy American Electric Power Ameren Corp. CMS Energy Corp. Consolidated Edison Dominion Resources DTE Energy Edison International EI Paso Electric Energy Corp. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Great Plains Energy IDACORP Inc. MGE Energy NextEra Energy OGE Energy Otter Tail Corp. PG&E Corp. Pinnacle West Capital Portland General Public Service Enterprise SCANA Corp. Sempra Energy Vectren Corp. Westar Energy Xcel Energy Inc. $1.24 $2.68 $2.80 $3.08 $1.92 $1.24 $3.40 $1.05 $2.20 $1.23 $3.48 $1.10 $1.25 $1.95 $2.50 $1.28 $1.64 $2.30 $3.02 $1.60 $1.52 $1.36 (B) (C) (D) SeptemberNovember, 2016 Hiqh Low Averaqe $64.57 $40.60 $66.96 $51 .91 $44.44 $79.54 $77.32 $97.60 $76.30 $48.75 $81 .83 $28.70 $81 .55 $63.55 $128.87 $33.10 $39.75 $64.40 $80.19 $44.32 $44.01 $75.92 $111.40 $52.04 $57.49 $43.49 $56.48 $34.88 $58.16 $46.84 $38.78 $68.76 $69.51 $89.66 $67.44 $42.49 $66.71 $26.33 $72.93 $53.48 $110.49 $29.57 $33.08 $57.63 $70.86 $40.28 $39.28 $67.31 $92.95 $46.52 $54.57 $38.00 $60.02 $37.43 $62.84 $49.12 $41 .38 $73.60 $73.68 $93.30 $71 .47 $45.35 $74.10 $27.34 $76.62 $57.35 $121 .77 $31 .12 $35.41 $60.71 $75.10 $42.29 $41 .57 $71 .11 $103.71 $49.05 $56.54 $40.56 Average Sources: Column (A) - Value Line Investment Survey - Current Quarterly Dividend Annualized Columns (B) (C) and (D) - Yahoo Finance (E) Yield 3.47% 3.15% 3.56% 3.46% 3.00% 3.64% 3.80% 3.30% 2.69% 2.73% 4.59% 3.84% 2.87% 2.14% 2.86% 3.53% 3.54% 3.23% 3.33% 3.03% 3.94% 3.23% 2.91 % 3.26% 2.69% 3.35% 3.28% i I x Schedule JAC 3 Page 3 of 4 Arizona Public Service Company Test Year Ending December 31 2015 Docket No . E01345A-16-0036 PROXY GROUP - Line M Proxy GroupCompanies 1 A LLET E 2 Alliant Energy 3 4 American Electric Power Ameren Corp. 5 CMS Energy Corp. 6 7 Consolidated Edison Dominion Resources 8 9 DTE Energy Edison International 10 11 20 21 22 Portland General Public Service Enterprise 23 24 SCANA Co rp. Sempra Energy Vectren Corp. 25 Westar Energy 26 Xo el Energy Inc. 27 28 6.0% 4.5% 4.0% 3.5% 3.5% 4.0% 5.0% 5.8% 4.2% 6.0% 4.0% 4.5% 5.0% NMF NMF NM F 6.0% 4.0% 4.0% 3.5% 8.5% 3.0% 165% 1.5% 2.7% 6.0% 2.5% 6.5% 3.0% 6.0% 3.5% 1.5% 6.5% 7.0% 5.0% 4.0% 4.0% 3.5% 1.5% NM F 9.7% 4.0% 3.3% 5.2% 10.0% 6.0% 8.0% 5.5% 6.0% 4.5% 1.5% 7.5% 3.0% 5.8% 3.5% 9.5% 7.0% 5.5% 5.3% 6.2% 3.5% 2.5% 3.0% 4.0% 3.0% 5.0% 2.7% 2.0% 5.0% 3.0% 7.3% 5.5% 7.5% 2.5% 4.0% 4.2% 8.0% 5.5% 7.5% 5.0% 7.0% 4.0% 11.0% 5.0% 4.8% 5.3% 5.0% 2.5% 8.5% 6.5% 15.5% NM F 6.0% 0.5% 1.5% 8.5% NM F 7.0% 8.0% 6.0% 3.5% 7.2% 5.3% 2.0% 2.5% 2.5% 4.7% 4.0% 7.0% 5.0% 5.5% 4.5% 3.5% 4.3% 7.8% 8.5% 6.5% 3.5% 3.5% 3.0% NM F 4.5% 2.5% 2.5% 7.0% 5.0% 4.0% 4.8% 4.0% 5.5% 2.0% 6.0% 5.0% 3.5% 3.5% 1.5% 3.5% 12.0% 2.0% 5.5% 2.5% 6.3% 2.7% 4.5% 8.0% 5.0% 7.0% 5.0% 3.0% 9.0% 6.0% 3.0% 4.5% 4.0% 4.5% 5.3% 5.0% 9.0% 6.0% 5.0% 3.0% 5.0% 5.0% 6.0% 6.3% 4.7% 5.5% 6.0% 4.0% 5.2% 4.0% 8.0% 7.0% 16 OGE Energy 1 7 Otter Tail Corp. PG&E Co rp. Pinnacle West Capital 2.5% NMF MGE Energy NextEra Energy Estd 1214 to 1820 Growth Rates EPS DPS BVPS Averaqe 65% 4.0% 3.5% 4.0% EI Paso Electric Energy Co rp. 18 19 5year Historic Growth Rates DPS BVPS Averaqe 5.0% 7.0% 12 Great Plains Energy 13 IDACORP Inc. 14 15 EPS PER SHARE GROWTH RA T ES NM F 1.5% NM F Average So urces: Value Line Investment Survey - September 16 2016 (See Attachment 1) Value Line Investment Survey October 28 2016 (See Attachment 1) Value Line Investment Survey November 18, 2016 (See Attachment 1) 4.9% 4.0% 2.0% 4.5% 3.0% 7.0% 45% 3.0% 6.0% 12.0% 9.5% 1.5% 4.0% 4.0% 3.8% 4.8% 4.3% 4.5% 6.2% 3.0% 8.0% 4.2% 5.0% 3.5% 4.8% 5.1% Schedule JAC 3 Arizona Public Sewlce Company Test Year Ending December 31 2015 Docket No. E01345A16003$ Page 4 of 4 PROXY GROUP -- GROWTH RATES - RETAINED TO COMMON EQUITY Line M 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Proxy Group Companies ALLETE Alliant Energy American Electric Power Ameren Corp. CMS Energy Corp. Consolidated Edison Dominion Resources DTE Energy Edison International EI Paso Electric Energy Corp. Great Plains Energy IDACORP Inc. MGE Energy Ne>dEra Energy OGE Energy Otter Tail Corp. PG&E Corp. Pinnacle West Capital Portland General Public Service Enterprise SCANA Corp. Sempra Energy Vectren Corp. Westar Energy Xcel Energy Inc. (A) 2011 (B) 2012 2.9% 3.3% 4.2% 2.8% 5.6% 3.1% 4.0% 3.4% 6.3% 10.0% 8.4% 2.0% 6.5% 4.7% 7.4% 7.7% NMF 3.4% 2.8% 4.1% 8.6% 3.6% 6.5% 1.9% 2.7% 4.3% 2.3% 2.2% 3.9% 4.9% 3.5% 3.7% 3.0% 1.9% 5.0% 5.2% 3.6% 3.6% 3.5% 4.2% 3.5% 2.7% 11.4°/o 8.1% 6.3% 4.9% 5.2% 3.0% 2.2% 3.2% 5.7% 5.6% 4.9% 5.1% 5.6% 5.2% 7.2% 7.3% NMF 1.2% 1.0% 0.2% 4.1% 4.1% 3.5% 2.9% 4.8% 4.4% 3.9% 4.1% 5.1% 4.1% 2.9% 1.2% 4.0% 4.2% 4.7% 4.5% (C) 2013 (D) 2014 (E) 2015 2.5% 3.6% 4.3% 3.4% 3.8% 3.9% 2.9% 2.5% 5.0% 5.2% 2.6% 3.5% 3.3% 2.9% 5.2% 3.4% 8.8% 7.2% 4.8% 3.4% 4.4% 4.8% 2.7% 1.6% 5.4% 4.8% 5.4% 4.5% 6.0% 6.1% 6.5% 4.0% 2.2% 2.0% 3.9% 0.7% 3.5% 3.9% 4.6% 3.3% 6.3% 6.8% 4.9% 4.3% 5.0% 5.8% 2.9% 4.2% 4.3% 2.9% 4.5% 4.3% Avera e Source: Value Line Investment Survey September 16 2016 (See Attachment 1) Value Line Investment Survey . October 28 2016 (See Attachment 1) Value Line Investment Survey November 18. 2016 (See Attachment 1) Averaqe 2.7% 4.0% 3.8% 2.6% 5.2% 3.3% 3.6% 3.6% 8.4% 5.9% 5.2% 2.3% 5.6% 5.3% 6.1% 6.5% 1.8% 1.8% 3.7% 3.7% 6.2% 4.2% 5.3% 2.6% 3.6% 4.5% 4.28% 201 G 30% 4.0% 4.0% 3.0% 4.5% 2.5% 3.5% 3.5% 5.5% 4.0% 6.5% 1.5% 4.5% 5.0% 2.0% 3.5% 1.5% 3.0% 3.5% 3.5% 4.5% 4.5% 1.5% 4.0% 4.5% 4.0% 2017 3.0% 4.5°/o 4.0% 3.0% 5.5% 3.0% 3.5% 4.0% 5.5% 4.0% 3.5% 2.5% 4.0% 5.5% 4.0% 3.5% 2.0% 5.0% 3.5% 3.5% 4.5% 4.5% 4.0% 4.5% 4.5% 4.0% 201921 3.0% 5.5% 3.5% 3.5% 5.0% 30% 60% 4.0°/o 5.5% 4.0°/o 3.5% 3.0% 3.5% 7.0% 3.0% 3.0% 3.5% 4.5% 3.5% 3.5% 4.5% 4.5% 6.5% 5.5% 5.0% 4.0% Averaqe 3.0% 4.7% 3.8% 3.2% 5.0% 2.8% 4.3% 3.8% 5.5% 4.0% 4.5°/o 2.3% 4.0% 5.8% 3.0% 3.3% 2.3% 4.2% 3.5% 3.5% 4.5% 4.5% 4.0% 4.7% 4.7% 4.0% 3.96% Schedule JAC . 4 Page 1 of 2 Arizona Public Sewlce Company Test Year Ending December 31 2015 Docket No. E01345A180035 CAPIT ALASSEI PRICING MOD§L 3 Hl$]QRlCAL_MARl$EI Rl Based on RUCOs Electric Sample Companles Una M [A] Risk Free Proxy Group Companies R ats IB] [C] Martel Rlsk Premlum TA 1 ALLET E 2.57% 0.75 2 Alliant Energy 2.57% 0.15 3 American Electric Power 2.57% 0.65 4 Ameren Corp. 2.57% 0.70 5 CMS Energy Corp. 2.57% 0.65 6 Consolidated Edison 2.57% 0.55 7 Dominion Resources 2.57% 0.65 8 DTE Energy 2.57% 0.70 9 Edison lntemationai 2.57% 0.65 10 2.57% 0.70 11 EI Paso Electric Energy Corp. 257% 0.65 12 Great Plains Energy 2.57% 0.75 13 IDACORP one. 2.57% 0.15 14 MGE Energy 2.57% 0.70 15 NexlEra Energy 2.57% 0.65 16 OGE Energy 2.57% 0.90 17 Otter Tail Corp 2.57% 0.85 18 PG&E Corp. 2.57% 0.65 19 Pin fade West Capital 2.57% 0.70 20 Poniand General 2.57% 0.10 21 Public Service Enterprise 2.57% 0.10 22 SCANA Corp. 2.57% 0.10 23 Sempra Energy 2.57% 0.80 24 Vectren Corp. 2.57% 0.75 25 Westar Energy 2.57% 0.70 26 Xoel Energy Inc. 2.57% 0.50 [DI Ana x Marks Rlsk Pnmlum [E] Enlmaud Cost olE u 5.15% 7.72% 5.15% 7.72% G.87% 4.46% 7.03% 6.87% 4.81 as 7.38% 4.46% 7.03% 3.78% 6.35% 4.46% 7.03% 4.81% 7.38% 4.46% 7.03% 4.81% 7.38% 4.46% 7.03% 6.87% 5.15% 7.72% 6.87% 51s% 7.72% 4.81% 7.38% 6.B7% 4.46% 7.03% 6.87% 6.18% 8.75% 6.87% 5.84% 8.41 % 4.46% 7.03% 6.87% 4.81% 7.38% 8.87% 4.81% 7.38% 6.87% 4.81% 7.38% 887% 4.81% 7.38% 8.87% 5.49% 8.06% 5.15% 7.72% 4.81% 7.38% 4.12% 6.69% 6.87% 6.87% 6.87% CAPITAL ASSET PRICING MODEL 6.87% 6.87% 6.87% 6.87% 6.87% 8.87% 1 Alliant Energy 2.57% 0.75 2 Ameren Corp. 2.57% 0.70 3 Dominion Resources 2.57% 0.65 4 DTE Energy 2.57% 0.10 5 Energy Corp. 2.57% 0.65 e NexlEra Energy 2.57% 0.65 7 PG&E Corp 2.57% 0.65 e Pinnacle West Capital 2.57% 0.70 g Public Service Enterprise 257% 0.10 SCANA Corp. 2.57% 0.70 RUCO RiskFree Rate 1 = = z 6.87% 8.87% x 7.40% HISTORICAL MARKET RISK PREMIUM RUCOs Nuclear Subsample Companies 20 year Treasury Bonds September 2016 October 2016 November 2016 Average 6.87% M Subsample Average s 5.87% Based on 11 8.87% Una 10 z 0.704 Sample Average 27 X x X x x x x X X x x x X X x x x x X x x X x x x x MI _M x x x x x x x x x x 6.87% 515% 7.72% 6.87% 4.81 as 738% 8.87% 448% 7.03% 6.87% 4.81 as 738% 6.87% 4.46% 7.03% 6.87% 4.46% 7.03% 6.87% 448% 7.03% 6.87% 4.81% 7.38% 6.87% 4.81% 738% 4.81% 7.38% 6.87% 7.28% 0.685 so year Treasury Bonds 2.02% 2.17% 2.54% 224% 2.57% REF ERENCES Column [A]: Federal Reserve Selected Interest Rates H.15 Attachment 2 Column [B]: Value Line Investment Survey January 15. 2016 Attachment 1 Column [C]: JAC . 4 Page 2 of 2 Column [D]: [B] [C] Column [E]: [Al 4 [D] = 2.35% 2.50% 2.85% 2.57%. iI . ! I I i I i . I Schedule JAC 4 Arizona Public Service Company Test Year Ending December 31, 2015 Docket No. E01345A160036 Page 2 of 2 RISK PREMIUMS BASED ON STANDARD & POORS 500 COMPOSITE RETURNS and 20YEAR U.S. TREASURY BOND YIELDS [A] [B] [C] EPS BVPS $79.07 $85.35 $94.27 $102.48 $109.43 $112.46 $116.93 $122.47 $125.20 $126.82 $134.07 $141 .32 $147.26 $153.01 $158.85 $149.74 $180.88 $193.06 $216.51 $237.08 $249.52 $266.40 $290.68 $325.80 $338.37 $321.72 $367.17 $414.75 $453.06 $504.39 $529.59 $451 .37 $513.58 $579.14 $513.14 $666.97 $715.84 $726.96 $737.54 R OE Line u 1 2 3 4 5 6 7 8 g 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 [A]; [B]: [CII [DI; Year 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Average $12.33 $14.86 $14.82 $15.36 $12.64 $14.03 $16.64 $14.61 $14.48 $1750 $23.75 $22.87 $21 .73 $16.29 $18.86 $21 .89 $30.60 $33.96 $38.73 $39.72 $37.71 $48.17 $50.00 $24.70 $27.59 $48.73 $58.55 $69.93 $81 .51 $66.18 $14.88 $50.97 $77.35 $86.95 $86.51 $100.20 $102.31 $86.53 15.00% 16.55% 15.06% 14.50% 11.39% 12.23% 13.90% 11.80% 11.49% 13.42% 17.25% 15.85% 14.47% 10.45% 1222% 13.24% 16.37% 16.58% 17.08% 16.33% 14.62% 17.29% 16.22% 7.44% 8.36% 14.15% 14.98% 16.12% 17.03% 12.80% 3.03% 10.56% 14.16% 14.59% 13.52% 14.49% 14.18% 11.82% 13.10% Diluted earnings per share on the S&P 500 Composite Index. Book value per share on the S&P 500 Composite Index. Average of current- and prior year [B] / current year [A]. Annual income returns on 20year U.S. Treasury bonds. [E]: [Cl - [D] Sources for [A] and [B]: Standard & Pools 2015 Analysts' Handbook and httos://vcharts.com/indicators/reports/so 500 earninrls Source for [D]: Morningstar 2015 Classic Yearbook (Table A-7) and U.S Department of the Treasury https://www.treasury.gov/Pages/default.aspx [D] 20YEAR T-BOND 7.90% 8.86% 9.97% 11.55% 13.50% 10.38% 11.74% 11.25% 8.98% 7.92% 8.97% 8.81 % 8. 19% 8.22% 7.29% 7. 17% 6.59% 7.60% 6.83% 6.69% 5.72% 6.20% 6.23% 5.63% 5.43% 4.96% 5.04% 4.64% 5.00% 4.91% 4.36% 4.11% 4.03% 3.62% 2.54% 3. 12% 3.07% 2.55% 6.83% [E] RISK PREMIUM 7.10% 7.69% 5.09% 2.95% -2.11% 1.85% 2.16% 0.55% 2.51% 5.50% 8.28% 704°/> 6.28% 2.23% 4.93% 6.07% 9.78% 8.98% 10.25% 9.64% 8.90% 11.09% 9.99% 1.81% 2.93% 919% 9.94% 11.48% 12.03% 7.89% 1 .33% 6.45% 10.13% 10.97% 10.98% 11.37% 11.11 % 9.27% 6.87% i I I I S c hc dult J A C . s P age 1 c l 1 A rizona P ublic Sorvkn C ompany T ag! Y ear E nding Dec ember JO . 2 0 1 5 D oc ket N g E 0 1 u5 A .1 C 0 0 3 6 COMPARABLE EARNINGS ANALYSIS RETURN ON COMMON EQUITY FOR RUCOS ELECTRIC SAMPLE COMPANIES Q s mxanx A LLE T E A lhanl Energy A merican Electric P ovuur A meren C orp. C M S E nergy C orp. C vns ohdulod E 8 un D ominion Res oulc u zo o s 2001 IM! 11 6* 118* 11 3% 11498 go* 72* yous 14 9% 7.7* o w 11.2% 14 4% we * 9.3% 11.3% a 7% 9 1% 120% 5.1% 11 7% 95* n 5% 74% 128% 11 2* IS 3* 1292 s as s s as s 104% 7.8% 8.5% 5.4% 140% o 5% 108% 9.3% 14 3% 4 ass EI P aso Electric E nzorqy C orp. Great P lains E nergy IDA C O RP Inc. M GE E nergy N emira E nemy O GE E nergy 0 1 1 9 ! T a C up pos e C up. P innac le Wed C ipial P ortland General P ublic Sewic o E mc fpds e SCANA C 049. Sempfa E nergy V ec tren C om Wes lal E nergy Xcel End¢gy Inc. 64% 92% 13 1* 7 5% 14.0% 10.6% 138% 94% 19% \1 .3 * 12.9% 14 1* 10.2% 12.7% 9.2% 5 8* nes s 10 sos 14 8* BJ* \0 .7 * 9 .7 * 10.1% s .as s 11 .4% 12.2% 14.5% 10.2% 11 8% 8.5% 11 .O% 18.1% 10.8% 13.5% 11.6% 92% 9.191 7.8% 11 .0% 14.11% 12.2% 5 1% 12.6% 8.2% 6.4% 19.0% 11.4% 14.0% 9.5% s .2 v. 9.2% wa s 102% 12.5% 12.7% 3.8% 11.2% Mun M n 11.2% 10.5% M edian 10.5% 11.3% 10.5ss DT E E nergy E M s on IM amationll 48% how 2011 2211 :S m 2913 191.5 2010 2017 7]* D9% 91% a 7* 9 5% 10358 7 5% 9.494 10.4% 11.1% 14.7% 7.3% 9.3% 11.0% 13.5% 12.9% 2.0% 9.7% ams 7.9% 182% 102% 11.1% go* 7 8% 109% 9.7% 8.7% 13.0% 8.5% 15.4% 10.9% 110% 9 0% 10.0% 9.9% 8.3% 13.3% 9.1% 15.0% 9 .1 * 120% 8.1% 112* 5 .8 * 100% 906 130% 8.5% 1 s.0ss 9 .5 * 1 1 .0 * 8.5% 12.5% 5 5% 85* 1 1 me 10.0% 9 ass 12.8% 9.2% 13.9% 7 6% 1 1 3 /u 96% 7596 1 3 .1 /l 9.4% 154% 83% 8098 11 0% 12.5% 8.9% 14.2% s 1% wa v . 9 5* a 8% 128% go* 149% was Hg* s 5* toms g.0* was 9 5* a ass 10598 moss a 0* ITS * 9 5* 100% aw 15 H 0* 11 5 9.W 11.1% NM 12.8% 7.3% 6.7% 98* G 11S% 101* 104% 10.4% 0.9% 10.5% 13.6% 15.0% 58* 10.1% 11.1% 115% 13.4% 2.7% 9.2% 8.8% 8.8% 15.4% 10.0% 11.0% 9.7% 7.7% 9.9% 9.8% 10.1% 10.3% 10.3% 9.9% 10.5% moss 9.4% 9.6% 10.0% 10.2/as has 102% A DD* 8.9% s 2% 178% 10.2% 111* 10.4% 8.3% 9.4% 9.3% 8.5% 125* 9.4% 9.2% 7 2% 9 3% 104% 8 7% 99% 122% 124% 9.4% 102% 9.9% 12 1% H 4% 128% 9.3% 5.7% 9.7% 7.5% 107% 10 1% 9.6% 8.8% 9.8% 9.9% 122% 9 sos 9 1% 9.1% 92% 12 5% lo 8 % 10.3% 104% 9 5% 10011 9 5* 10.3% 12.2% 102% 9 7% s as s 95% 7 .6 A 129% 100% 11 .ms 11.7% 8.0% 10.0% 9.5% 13.5% as % 15.0% \0 0 * 11 ass 9.0% 9 .5 * 1.0% 9.0% 1 I ass 11 .ass 10 5* 9.0% 1 0 .5 * 10011 8.5% 110% 10.0% 1 0 .5 * 115% 9.0% 2019. 2 1 5.5% 12 5% 9 5% 9.5% 13.5% e 5% 190% 105* 10.0% 1\ 5% 9.0% 10.0% 7.5% 9.0% 13.0% 115% 11.5% 1 oo% 11.m% 10.0% 9.0% 11 A us 10.0% 14.0% 13.0% 10.0% 11.0% 10.2* 10.9% 10.0% 1 o.ms Annie al Mun and Median Sourc e: 1019 . 2M l s c s n s 8 I » 200s :nm am 2211 2912 2911 14 2015 2011 2911 2921 10.2% 147% 13.5* 9.7% 9.0% 16.2* 10.2* 13.9% wa s 15 ass 115% 92% wa s 15.4% 10036 \0.3* 8.5% 14.9* 9.0* 11.ass 11 .991 s 7* 9.5% 11 sos 10.1* 11.3% has 1 S4 * us e 92% 11 .414 s7ss 9.7% 10.7% 10.1% 109% a.71s 1 5 .4 * 10.9% 1 0 .4 * 12.4% 9.1% 9.1% 12.5% 108% 10.oss 8.3% 15094 9.1% 1 I 2% 122ss ams 9.5% 129% 10.0% 11 .ass ams 1 s .os s 9.5% 12.5% 0.5% 8.0% 9.5% 10.5% 19.0% 11 .0% 9.0% 15.0% 10.0% 9.5% 11 0% 10.5% 10.0% 11 .0% 10.0% 12.5% 9.5% 190% 10.0% 10.0% 11.5% 11.0% 10.0% 11.0% 10.0% 12158 11.0% 11.5% 112* 10.5% 10011 11.0% WA* 10.4% 10.7% 11.5% 12 10.7% 10.1% 9.9* 10.4 10.m 9896 10.3% 10.sss 12.9% 12.7% 92% 135% 105% 9.5% ans 11.5% 7.4% 15.3% 1 4 .0 * 12.5% 62% 19096 11.4% 6 .B * 78* 14.9% 8.5% 14.3% 125% 112% 6.9% 178% M ean 111% 11.9% M edian 11.4 l 1.6* A vavage al M ean aM M edian 9114 9114 13.1% 75% 118% MM 1113* 92% 14.9% 7 .7 * 14496 12.2% 11.8% 8.5% 18.1% 10.a% A lliant Energy A re ra n Ww D o mi nk m R no urc u DT E E nergy E nergy C orp. M &n E no s PGA E C 019 P m n a d l WW C 8 1 P ub l i c & a t e E nt e l nl i u SC A N A C N P 89% 95% 103% Sus 11 1* 921/148% ay* a 3% 104* 9 8% 82% 13.0% 9 2% 149% 9.2% 5.3% 11 sos 9 .8 * 92* 13 3* 11.5% 16 ass 9.8% 125* 105% 130% s 8% 9.1% 11.2% 12.7% 12.8% 70% 9.5% 8.7% 79% 14.8% 10.4% 11.9% 10.1% 8.5% 9.5% 128* 10 ass 11 5% 6.3% 98* H J * 12.3% 12.3% 7.8% 7.3% 9.3% 5.3% 1 2 .8 * 10 10 5* 102* a as s 11 2* a as s 10.7% 6.7% 9.0% 11.7% 10.3% 10.7% 9.3% 9.8% 9.8% 5.5% 108% 100% 1081s 1o.oss 105* 10.1s% 10.27% s um. 1 o.1o% 9.92% 1 o.151s 10.14% 1o.1 m% :Mn 12.0% 9.5% V alue Lino I mns nmm Savoy Senembar 1 6 2 o1 e (Sao A nnc hmam 1 ) V alue Lino lrwns tmant Swvvv O c taN e: pa. 2 0 1 8 (Sea A uac hmc m 1 ) V alue Lim lrmas tmant Survey N ovember 1 s 2 o1 e (Sea A nac hmem 1 ) Companbk Eamings Analysis . u m Le Com no: Qgmnm xavn $V Syn »4a»1w<»1 o m n i ~=4»<1»¢ A -up A -up A -un 10051015 2°lk2°l5 mum 9.9% 11.6% 14.2% 9.4% 9.5% 7 .5 * D W 141SV-1 §Vou ntnuku waunul h q a u A nna l am p Avant : mms aux z us E li. E w 9.0% a.4% 14 a% 0.1% 13.0% 12.7% 9.5% 8.7% 14.8% 104% mnza 104% 52% 14.9% 9.2% 11.5% 1 2 .3 * 7.3% 9.3% 12.6% 102% 1 I 5% 9.2% 16.3% 9 .8 * 10.7% 10.3% 9.8% 98* 108* 100% 1050* 1083* 1 0 .1 3 * 10.3011 10.17% 10.10% 10.45% 10.50% I I Schedule JAC . 6 Arizona Public Service Company Test Year Ending December 31, 2015 Docket No. E-01345A-16-0036 Page 1 of 7 ECONOMIC INDICATORS Li n e 89 1 2 3 4 5 6 7 8 g 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 1221 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Real GDP Growth -1.1% 5.4% 5.5% 5.0% 2.8% -0.2% 1.8% -2.1% 4.0% 6.8% 3.7% 3.1% 2.9% 3.8% 3.5% 1.8% -0.5% 3.0% 2.7% 4.0% 3.7% 4.5% 4.5% 4.2% 3.7% 4.1% 1.1% 1.8% 2.8% 3.8% 3.3% 2.7% 1.8% -0.3% -2.8% 2.5% 1.6% 2.2% 1.7% 2.4% 2.6% Industrial Production Growth -8.9% 10.8% 5.9% 5.7% 4.4% -1.9% 1.9% -4.4% 3.7% 9.3% 1.7% 0.9% 4.9% 4.5% 1.8% -0.2% -2.0% 3.1% 3.4% 5.5% 4.8% 4.3% 7.3% 5.8% 4.5% 4.0% -3.4% 0.2% 1.2% 2.3% 3.2% 2.2% 2.5% -3.6% 11.5% 5.5% 2.9% 2.8% 1.9% 2.9% 0.3% Unemploy ment Rate 8.5% 7.7% 7.0% 6.0% 5.8% 7.0% 7.5% 9.5% 9.5% 7.5% 7.2% 7.0% 6.2% 5.5% 5.3% 5.6% 6.8% 7.5% 6.9% 6.1% 5.6% 5.4% 4.9% 4.5% 4.2% 4.0% 4.7% 5.8% 6.0% 5.5% 5.1% 4.6% 4.6% 5.8% 9.3% 9.6% 8.9% 8.1% 7.4% 6.2% 5.3% Source: Council of Economic Advisors Economic Indicators, various issues. Consumer Price Index 7.0% 4.8% 6.8% 9.0% 13.3% 12.4% 8.9% 3.8% 3.8% 3.9% 3.8% 1.1% 4.4% 4.4% 4.6% 6.1% 3.1% 2.9% 2.7% 2.7% 2.5% 3.3% 1.7% 1.6% 2.7% 3.4% 1.6% 2.4% 1.9% 3.3% 3.4% 2.5% 4.1% 0.1% 2.7% 1.5% 3.0% 1.7% 1.5% 0.8% 0.7% Producer Price Index 6.6% 3.7% 6.9% 9.2% 12.8% 11.8% 7.1% 3.6% 0.6% 1.7% 1.8% -2.3% 2.2% 4.0% 4.9% 5.7% -0.1% 1.6% 0.2% 1.7% 2.3% 2.8% -1.2% 0.0% 2.9% 3.6% -1.6% 1.2% 4.0% 4.2% 5.4% 1.1% 5.2% -0.9% 4.3% 4.7% 4.7% 1.4% 0.8% -1.2% -3.8% Schedule JAC . 6 Page 2 of 7 Arizona Publlc Service Company Test Year Ending December 31 2015 Docket No. E01345A160036 ECONOMIC INDICATORS Line M 1 2 3 4 5 e 7 8 g 10 11 12 13 14 15 18 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 M 2003 1st Qtr. 2nd Qtr. 3rd Qtr. 4th QU. 2004 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 2005 1$t Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 2006 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 2007 1st Qtr 2nd Qtr. 3rd Qtr. 4th Qtr. 2008 1st Qtr. 2nd QU 3rd Qtr. 4th Qtr. 2009 1st Qtr. 2nd Qtr. 3rd Qtr am QU. 2010 1st Qtr. 2nd Qtr. 3rd Qtr 4th Qtr. 2011 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 2012 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 2013 1st Qtr 2nd Qtr. 3rd Qtr. 4th Qtr. 2014 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr 2015 1st Qtr. 2nd Qtr. 3rd Qtr 4th Qtr. 2018 1st Qtr. 2nd Qtr 3rd Qtr. 4th Qtr. Real GDP' Growth Industrial Production Growth Unemploy ment Rate Consumer price Index Producer Price Index 1.2% 3.5% 7.5% 2.7% 1.1% 0.9% 0.9% 1.5% 5.8% 6.2% 6.1% 5.9% 4.8% 0.0% 3.2% 08% 56% 0.5% 32% 2.8% 3.0% 3.5% 3.6% 2.5% 2.8% 4.9% 4.6% 4.3% 5.6% 5.6% 5.4% 5.4% 5.2% 4.4% 0.8% 3.6% 5.2% 4.4% 0.8% 7.2% 4.1% 1.7% 3.1% 2.1% 3.8% 3.0% 2.7% 2.9% 5.3% 5.1% 5.0% 4.9% 4.4% 1.6% B.8% 2.0% 5.6% 0.4% 14.0% 4.0% 5.4% 1.4% 0.1% 3.0% 3.4% 4.5% 5.2% 3.5% 4.7% 4.6% 4.7% 4.5% 4.8% 45% 0.4% 0.0% 0.2% 5.6% 4.4% 35% 0.9% 3.2% 2.3% 2.9% 2.5% 1.6% 1.8% 1.7% 4.5% 4.5% 4.6% 4.8% 4.8% 5.2% 12% 0.6% 6.4% 6.8% 1 .2% 6.5% 1.8% 1.3% 3.7°/a 8.9% 1.9% 0.2% 3.0% 6.0% 4.9% 5.3% 6.0% 6.9% 2.8% 7.6% 2.8% 13.2% 9.6% 14.0% 0.4% 28.4% 5.3% 0.3% 1.4% 4.0% 11.6% -12.9% 9.3% 4.5% 8.1% 9.3% 95% 10.0% 2.4% 3.2% 2.0% 2.5% 0.4% 9.2% 0.a% 8.8% 1.6% 3.9% 2.8% 2.8% 2.7% 6.5% 6.9% 6.2% 9.7% 97% 9.6% 9.6% 0.9% 1.2% 2.8% 2.8% 6.5% 2.4% 4.0% 9.2% 1.5% 2.9% 0.8% 4.6% 5.4% 3.6% 3.3% 4.0% 9.0% 9.0% 9.1% 8.7% 4.8% 3.2% 2.4% 0.4% 9.6% 3.6% 6.4% 1.2% 2.3% 1.6% 2.5% 0.1% 4.5% 4.7% 3.4% 2.8% 8.3% 8.2% 8.1% 7.8% 3.2% 0.0% 4.0% 0.0% 2.0% 2.8% 9.6% 3.6% 1.9% 1.1% 3.0% 3.8% 2.5% 2.0% 2.6% 3.3% 7.7% 7.6% 7.3% 7.0% 2.0% 1.2% 1.6% 1.2% 12% 2.4% 0.0% 0.3% 0.9% 4.6% 4.3% 2.1% 3.2% 4.2% 4.7% 4.5% 6.6% 6.2% 6.1% 5.7% 1.6% 3.6% 0.0% 2.B% 0.3% 0.2% 0.0% 0.8% 0.6% 3.9% 2.0% 1 .0% 3.5% 1.5% 1.1% 0.8% 5.6% 5.4% 5.2% 5.0% 0.2% 0.6% 0.0% 0.2% 2.3% 1.2% 18% 0.9% 0.80% 1.40% 2.90% 1.6% 1.1% 1.0% 4.9% 4.9% 4.9% 1.10% 1.03% 1.13% 0.4% 0.6% 0.0% 1 i l P l \ 'GDp=Gross Domestic Product P: Preliminary Source; Council at Economic Advisors. Economic Indicators various issues. i i ! Schedule JAC 6 Page 3 of 7 Arizona Public Service Company Test Year Ending December 31, 2015 Docket No. E-01345A.16-0036 INTEREST RATES Line NO 1 2 3 4 5 6 7 8 g 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 Year 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Prime Rate 7.86% 6.84% 6.83% 9.06% 12.67% 15.27% 18.89% 14.86% 10.79% 12.04% 9.93% 8.33% 8.21% 9.32% 10.87% 10.01% 8.46% 6.25% 6.00% 7.15% 8.83% 8.27% 8.44% 8.35% 8.00% 9.23% 6.91 % 4.67% 4.12% 4.34% 6.19% 7.96% 8.05% 5.09% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.27% 3.50% US Treasury T Bills 3 Month 5.84% 4.99% 5.27% 7.22% 10.04% 11.51% 14.03% 10.69% 8.63% 9.58% 7.48% 5.98% 5.82% 6.69% 8.12% 7.51% 5.42% 3.45% 3.02% 4.29% 5.51 % 5.02% 5.07% 4.81% 4.66% 5.85% 3.44% 1.62% 1.01 % 1.38% 3.16% 4.73% 4.41% 1.48% 0.16% 0.14% 0.06% 0.09% 0.06% 0.03% 0.05% 0.29% us Treasury T Bonds 10 Year 7.99% 7.61% 7.42% 8.41 % 9.43% 11.43% 13.92% 13.01 % 11.10% 12.46% 10.62% 7.67% 8.39% 8.85% 8.49% 8.55% 7.86% 7.01% 5.87% 7.09% 6.57% 6.44% 6.35% 5.26% 5.65% 6.03% 5.02% 4.61% 4.01% 4.27% 4.29% 4.80% 4.63% 3.66% 3.26% 3.22% 2.78% 1.80% 2.35% 2.54% 2.14% 1.75% Utility Bonds Aaa 9.03% 8.63% 8.19% 8.87% 9.86% 12.30% 14.64% 14.22% 12.52% 12.72% 11.68% 8.92% 9.52% 10.05% 9.32% 9.45% 8.85% 8.19% 7.29% 8.07% 7.68% 7.48% 7.43% 6.77% 7.21% 7.88% 7.47% Utility Bonds Aa 9.44% 8.92% 8.43% 9.10% 10.22% 13.00% 15.30% 14.79% 12.83% 13.66% 12.06% 9.30% 9.77% 10.26% 9.56% 9.65% 9.09% 8.55% 7.44% 8.21 % 7.77% 7.57% 7.54% 6.91% 7.51% 8.06% 7.59% [1] 7.19% 6.40% 6.04% 5.44% 5.84% 5.94% 6.18% 5.75% 5.24% 4.78% 3.83% 4.24% 4.19% 4.00% [1] Note: Moody's has not published Aaa utility bond yields since 2001 . Sources: Council of Economic Advisors, Economic Indicators Moodys Bond Record; Federal Reserve Bulletin various issues. Note: Figures for 2016 are yearto-date averages (January .. October 2016) Utility Bonds A 10.09% 9.29% 8.61% 9.29% 10.49% 13.34% 15.95% 15.86% 13.66% 14.03% 12.47% 9.58% 10.10% 10.49% 9.77% 9.86% 9.36% 8.69% 7.59% 8.31% 7.89% 7.75% 7.60% 7.04% 7.62% 8.24% 7.78% 7.37% 6.58% 6.16% 5.65% 6.07% 6.07% 6.53% 6.04% 5.46% 5.04% 4.13% 4.47% 4.28% 4.12% Utility Bonds Baa 10.96% 9.82% 9.06% 9.62% 10.96% 13.95% 16.60% 16.45% 14.20% 14.53% 12.96% 10.00% 10.53% 11.00% 9.97% 10.06% 9.55% 8.86% 7.91 % 8.63% 8.29% 8.16% 7.95% 7.26% 7.88% 8.36% 8.02% 8.02% 6.84% 6.40% 5.93% 6.32% 6.33% 7.25% 7.06% 5.96% 5.57% 4.86% 4.98% 4.80% 5.03% 99 3% g £32 §833¥§§§§§§§ 83° §§3§§§§§5§§§ §3= §§§§§§§§§§§§ I =l §§§§§§§EEE§3 --n-unnnn¢4nc4 "§!544§§§£§ p h ww www 3 s 8 i P §§§§§§88§§88 8382883888 Es 888888888883 88888808888 §§§§!§8i3§8!8§§33&§i353883§£38938233883 s : -~»~»»~»oe:eazaeueesaunxwxhsa3592323933 $#$$$#$$$!## 858=82888828 v= Ar $ 8 8 x x v v v v v mm mm m m m m mm v v v v v v w v v 88= 880080888888 088888888888 8:s=ssa=s-an * 8 * * ** *##*#§*$#*§$ £3' §§§§§§§§§§§§ 8§§§§§§§§38§ 282§:88888§; v v v v v v vv v v v v 93338 v ¢ v v v v v2288 Q v v Q n8 83° nss§§§§§s§£§§ ssssssssssss §§§§3§§§§§§§ §§§§§8§§§§§§ w n nrn m wn m v v v n v 9 Q Q 1 n n n n n n n n n n n n n v v v v w w w v v v v v v v v v n v n i w W »- 8 - w m no 3 s W E 53 8 3 » §§§§§§§§§§3§ pNt¥ p r w §§§§§§§§£§§§ -n n cv m n n n §§§E§§§$§§§£ NNNNNNNNNNNN QMHMHMWNWNN' 888858588888 #xx * 3 §§§§§;28§§5§ ##§#$##$$##$ s x x f r xs s * 888333888 sssaz3sa§§§a 690990880660 o o o o o o o o oo o o §§§§§§8§§§§§ o o o o o o oo oo oo as o o o o o o o oo ea a ###x:#### srsrxxsrxssazrs n QNNNNNNNNN nm mumnnn nsrarsswssssxss mnnnuanmmmm §§§§§§§§§§£§ 888888888~~~ N n n n n n nn n n n nm einnn i n n n n n n n n nnnnnnnnnnn n n n n n n o nn nn n NNNNNNNNNNNN 88389833333833§3§2§3i338§§§3§§3§§8338588838558853858 . _ n n . §§»~»vw°~~°°. "212222°3~93§88R888n823£88889-94¥~9832Sm% 3 b ' # x x x # # # # x Ar s s s s s s s i58 8§§§a$§s28z; n§s§§2a=:ss: §§§§§§§§€§§§ §§£§§§§§§§§8 Q u n u ua o m w ws a ua o : o n o o o o o u o o oo o o o u o o o o r~ n ¢¢ ~ ~ o o ~ ~ o o o o o o §3< §§§§§§§§§§§§ §##£##$#§*§$ as 9399.3 8 §#§a§#x####§ 03 v8<22{383 #$$#§####§## adz: ¥883-R3 o o o o o o o o o r~ :~ o o u o o o o u m u m u m n mn mn u mn #sri # i xs xxs * x xx El *x fzfs**: ¢§;§£§§¢=s§§ OO0§DDhN!h -munvvvvuan SE" E:§§§;;;;§§2 888588888885 moumvo o o n o o o m s::§s:ssens§ ,3 ii be? £28 53 §E§3§§§é§§§§ 88£5§§§§§E8§ : »- 19449 n v v v v v n n n n n w vn n n n u z » :n ea §§##$§##$!§# D v nssm.zxa..s v v v v v v v n nn §8§§§§§§§§§§ 3 88 §§§§é££§§§§£ ¢ ¢ o o c u a n ~~v~~ §§£§§§§§§§§§ uommmmmnmvvn §é§§§E§§§§§§ n n m n n n n nn nn n 8§E§$§3§§§§§ n n n n o n n u n nu n §§§88§§§§§§$ d o o u o oo oo oo o §§§§§§§8§§§8 o eo eo o o o o o o o *s =§ .m*%m*z.§ o n n o n nn nn nn n 8 8 8 n8 8 8n 8 8n 8n 8u 8 m n n n 8 n N N N N N N N N N N N N n n n n n n n n n n n n 255 ,so 3838355538888§33§9§§8338§8§§£§§§§3338333538533833883 83: 333 gg-wnvwv~¢02:""'"2"°°8&§8&88R888333838S339S993999$935$ :"3 3 8 8 a 8 9s. 5 2 §§ g g 4 go E 88 8 3 $8 2 3% bE 8 83 s 5 l \ I. Schedule JAC - 6 Arizona Public Service Company Test Year Ending December 31, 2015 Docket No. E-01345A-16-0036 Page 5of7 STOCK PRICE INDICATORS Une M 1 2 3 4 5 6 7 8 g 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Year 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 S&P NASDAQ Composhe Composure 322.84 334.59 376.18 415.74 451.21 460.42 541.72 670.50 873.43 1085.50 1,327.33 1,427.22 1194.18 993.94 965.23 1,130.65 1207.06 1,310.67 1,476.66 1,220.89 946.73 1,139.31 1,268.89 1,379.56 1,462.51 1,930.67 2,061.20 491.69 $599.26 715.16 751.65 925.19 1,164.96 1469.49 1,794.91 2,728.15 2783.67 2,035.00 1,539.73 1,647.17 1,986.53 2,099.03 2,265.17 2,577.12 2162.46 1,841.03 2,347.70 2,680.42 2,965.77 3,537.69 4,374.31 4,940.49 DJIA 802.49 974.92 894.63 820.23 844.40 891 .41 932.92 884.36 1,190.34 1,178.48 1,328.23 1792.76 2,275.99 2060.82 2,508.91 2,678.94 2929.33 3,284.29 3,522.06 3793.77 4493.76 5,742.89 7,441.15 8,625.52 10,464.88 10,734.90 10189.13 9,226.43 8,993.59 10317.39 10,547.67 11408.67 13,169.98 11252.61 8876.15 10,662.80 11,966.36 12967.08 14,999.67 16773.99 17,59061 S&P Dividend/Price Ramo 4.31 % 3.77% 4.62% 5.28% 5.47% 5.26% 5.20% 5.81 % 4.40% 4.64% 4.25% 3.49% 3.08% 3.64% 3.45% 3.61 % 3.24% 2.99% 2.78% 2.82% 2.56% 2.19% 1.77% 1.49% 1.25% 1.15% 1.32% 1.61 % 1.77% 1.72% 1.83% 1.87% 1.86% 2.37% 2.40% 1.98% 2.05% 2.24% 2.14% 2.04% 2.10% Source: Council of Economic Advisors, Economic Indicators, various issues. S&P Earnings/Price Ratio 9. 15% 8.90% 10.79% 12.03% 13.46% 12.66% 11.96% 11.60% 8.03% 10.02% 8.12% 6.09% 5.48% 8.01 % 7.41 % 6.47% 4.79% 4.22% 4.46% 5.83% 6.09% 5.24% 4.57% 3.46% 3.17% 3.63% 2.95% 2.92% 3.84% 4.89% 5.36% 5.78% 5.29% 3.54% 1.86% 6.04% 6.77% 6.20% 557% 5.25% 4.59% Schedule JAC . 8 Page 6 of 7 Arizona Public Sewlco Company Test Year Ending December 31 2015 Docket No. E01345A16003$ STOCK PRICE INDICATORS Line M 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 86 87 68 89 70 71 72 73 74 75 76 77 DJIA S&P Dividends/Price Ratio S&P Eamlngslprice Ratio 2041 .95 1984113 1872.90 2050.22 10488.43 1028904 10129.85 10362.25 164% 1.71% 1.79% 1.75% 452% 4.92% 5.18% 483% 1191.98 1181.65 1225.91 1262.07 2056.01 2012.24 2144.61 2246.09 10848.48 10382.35 10532.24 10.B27.79 1.77% 1.85% 1.83% 1.86% 5.11% 5.32% 5.42% 5.60% 2006 1st Orr. 2nd Qtr. 3rd Qtr. am Qtr. 1 283.04 1281.77 1288.40 1 .38948 2287.97 2240.48 2.141 .97 2.390.26 10996.04 11188.84 11274.49 12175.30 1.85% 1.90% 1.91% 1.81% 5.61 % 5.86% 5.88% 5.75% 2007 1 sl Qtr. 2nd Qtr. 3rd Orr. 4th Qtr. 1 42530 1 496.43 1 490.81 1 494009 2444.85 2.55237 2609.68 2.701 .59 12470.97 13.21426 1348843 13.50295 1 .84% 1.91 as 5.85% 5.55% 5.15% 4.51 % 200s 1st Qtr 2nd Qtr. 3rd Qtr. am Qtr. 1350.19 1371 65 1.251 .94 909.80 2332.91 2426.26 2290.87 159964 12383.86 12508.59 11322.40 8795.61 2.11% 2.10% 2.29% 2.98% 4.55% 4.05% 3.94% 1 .65% 2009 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 809.31 892.23 996.68 1 .088.70 1 485.14 1 .731 .41 1 985.25 2182.33 7774.06 8327.83 9229.93 10172.78 3.00% 2.45% 2.16% 1 .99% 0.88% 0.82% 1 .19% 4.57% 2010 1 sl Qtr. 2nd au. 3rd QU. am Qtr. 1121.60 1.13525 1096.39 1204.00 2274.88 2343.40 2237.97 2534.82 10454.42 10570.54 10390.24 11236.02 1 .94% 1 .97% 2 .0 9 % 1 .95% 5.21% 8.51% 6.30% 6.15% 2011 1 sl Qu. 2nd Qtr. 3rd Qtr. am Ort. 1302.74 1.31904 1 .237.12 1 225.B5 2.741 .01 2768.64 2613.11 2600.91 12024.82 12370.73 11 .671.47 11798.65 1.85% 1.97% 2.15% 2.25% 6.13% 8.35% 7.69% 6.91% 2012 1st Qtr. 2nd Qtr. 3rd Qtr. am Qtr. 1 7.4 1350.39 1402.21 1.41821 2902.90 2928.62 3029.86 3001 .69 1283980 12765.58 13118.72 11142.91 2.12% 2.30% 2.27% 2.28% 6.29% 6.45% G.00% 6.07% 2013 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1514.41 1609.77 1675.31 1770.45 3177.10 3369.49 3643.63 3960.54 14000.30 14.961 .28 15255.25 15751.96 2.21 % 2.15% 2.14% 2.06% 5.59% 5.88% 5.65% 5.42% 2014 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Ort. 1 .834.30 1 .900.37 1975.95 2012.04 4210.05 4195.81 44B351 4607.88 18170.26 16603.50 16953.85 17388.36 2.04% 206% 2.02% 2.03% 5.39% 5.26% 5.38% 4.97% 2015 1st Ort. 2nd Qtr. 3rd QU. 4th Qtr. 2063.46 2102.03 2.026.14 2053.17 4821.99 5017.47 4921.81 5000.70 17806.47 18007.48 17.06552 17482.97 2.02% 2.05% 2.16% 2.16% 4.80% 4.60% 412% 4.23% 1948.32 2074.99 2161 .36 4609.47 4845.55 5185 M 16635.76 17783.85 18367.92 2.31% 2.19% 2.13% 420% 4.14% 4.13% s ap Composite NASDAQ Composite 2004 1 sl Oar. 2nd On. 3rd Qtr. am Qtr. 1.13329 1.122.87 1.104.15 1162.07 2005 1st Qtr. 2nd Qtr. 3rd Qtr 4th Qtr. 2016 1st Orr. 2nd Qtr 3rd Qtr. am Qtr. Source: Council of Economic Advisors Economic Indicators various issues. 1 .82% 1 .86% i Schedule JAC 6 Page 7 of 7 Arizona Public Service Company Test Year Ending December 31, 2015 Docket No. E-01345A-16-0036 PROXY GROUP COMMON EQUITY RATIOS Company 2010 2011 2012 2013 2014 2015 1 ALLETE 55.8°/o 55.7% 56.3% 55.4% 55.8% 53.7% 2 Alliant Energy 49.5% 50.9% 48.4% 50.8% 47.5% 51 .4% 3 American Electric Power 46.7% 49.3% 49.4% 48.9% 51 .0% 50.2% 4 Ameren Corp. 50.9% 53.7% 49.4% 53.7% 51 .7% 49.7% 31 .0% 31 .4% 5 CMS Energy Corp. 29.5% 32.6% 31 .e% 32.2% 6 Consolidated Edison 50.4% 52.5% 54. 1 % 53.9% 52.0% 52. 1 % 7 Dominion Resources 42.8% 393% 38.2% 37.3% 34.6% 34.9% 8 DTE Energy 48.7% 49.4% 51 .2% 52.3% 50.0% 49.8% 46.7% Edison International 44.3% 40.6% 46.2% 46.2% 47.2% 10 EI Paso Electric 48.8% 48.2% 45.2% 48.6% 46.5% 47.3% 11 Energy Corp. 42.1 % 46.4% 42.9% 43.6% 43.8% 40.8% 12 Great Plains Energy 49.2% 51 .6% 54.40/, 49.4% 50.4% 49. 1 % 54.4% 9 13 IDACORP Inc. 50.7% 54.4% 54.5% 53.4% 54.7% 14 MGE Energy 61 .1% 60.4% 61 .8% 60.7% 62.5% 64.0% 15 NextEra Energy 44.5% 41 .8°/> 40.9% 42.9% 45.0% 45.8% 16 OGE Energy 49.2% 48.4°/o 49.3% 56.9% 54. 1 % 55.7% 57.9% 53.5% 57.6% 17 Otter Tail Corp. 58.4% 54.0% 54.4% 18 PG&E Corp. 49.3% 50.2% 50.4% 52.5% 50.7% 50.4% 19 Pinnacle West Capital 54.7% 55.9% 55.4°/o 60.0% 59.0% 57.0% 20 Portland General 47.0% 50.4% 52.9% 48.7% 47.3°/o 52.2% 59.6% 59.6% 59.7% 21 Public Service Enterprise 55.2% 57.9% 61 .7% 22 SCANA Corp. 47.1 % 45.7% 45.6% 46.4% 47.4% 48. 1 % 23 Sempra Energy 49.6% 49.2% 45.7% 49.4% 48.2% 47.3% 24 Vectren Corp. 50. 1 % 48.4% 49.6% 46.7% 53.3% 49.4% 25 Westar Energy 46.0% 50.1 % 48.8% 50.0% 50.0% 52.5% Xcel Energy Inc. 46.3% 48.9% 46.7% 46.7% 47.0% 45.9% Electric Sample Average 48.8% 49.5% 49.5°/o 50.2% 49.8% 49.9% Nuclear Subsample Average 48.5% 49.1% 48.4% 49.9% 48.9% 48.8% Electric Sample w/o PWC 48.5% 49.2% 49.2% 49.8% 49.4% 49.6% Nuclear Subsample w/o PWC 47.8% 48.4% 47.6% 48.8% 47.8% 47.8% 26 27 28 29 30 31 32 33 34 Sources: Value Line Investment Survey - September 16 2016 (See Attachment 1) Value Line Investment Survey - October 28 2016 (See Attachment 1) Value Line Investment Survey - November 18, 2016 (See Attachment 1) 1 1 1 EXHIBIT JAC-A Inflation Expectations: Latest News Release Page l of 3 so J s.. .8 j 1 *. 1.5. Y ¢ 5 -an\¢ y ,.¢="' ; / r. . ' I x I .4 w . , p "Z 1/ ; -.. / 4: As 4. ar 3 1 . " Q l~ `.* : - a . I Z " » ding, ,sf: l u 4 ." " / I , i 2 ¢j * v w I . ;l r / ~#. a I 6 3 ,r a.. 4 4 4 l ,-x / IC 1 .u . J » - 1 . ._88 Q go 1 ¢ na:- vs . --" 49 \ r 8 ~. .Ly w Q /`I 24. .. » . .. : 4 I 1 .4 Inflation Expectations 12.15.16 I Latest Release FAQS Archives Contact Us The Federal Reserve Bank of Cleveland's inflation expectations model uses Treasury yields, inflation data, inflation swaps, and survey-based measures of inflation expectations to calculate the expected inflation rate (CPI) over the next 30 years. The Cleveland Fed model is run every month on the date of the CPl release. Latest Inflation Expectations Model Release (December 15, 2016) The Federal Reserve Bank of Cleveland reports that its latest estimate of 10-year expected inflation is 1 .93 percent. In other words, the public currently expects the inflation rate to be less than 2 percent on average over the next decade. Historical Data 1 Excel ® : This spreadsheet contains the inflation expectations model's output from 1982 to the present. Output includes expected inflation for horizons from 1 year to 30 years, the real risk premium, the inflation risk premium, and the real interest rate. Archives: View previous releases of inflation expectations going back to January 2015. How to Interpret the Data We report 10-year expected inflation, which is the rate that inflation is expected to average over the next 10 years. We also provide the model's estimates of the inflation risk premium, the real risk premium, and the real interest rate (see the charts below and the Excel file above). The inflation risk premium is a measure of the premium investors require for the possibility that inflation may rise or fall more than they expect over the period in which they hold a bond. Similarly, the real risk premium is a measure of the compensation investors require for holding real (inflationprotected) bonds over some period, given the fact that future short-term rates might be different from what they https:// .clevelandfed.org/our-research/indicators-and-data/inf1ation-expectations.aspx 12/19/2016 i Page 2 of 3 Inflation Expectations: Latest News Release expect. Both the real risk premium and the inflation risk premium can be interpreted as investors' assessment of risk. In the case of the real risk premium, it is an assessment of the risk of unexpected changes in the real interest rate, and in the case of the inflation risk premium, it is an assessment of the risk of unexpected changes in inflation. In figure 2 below we compare the model's estimate of 10-year real interest rates against TIPS yields. The figure can be interpreted as illustrating the importance of factors not in the model (taxes, liquidity, the embedded option) for the TIPS market. As TIPS are not used in the model, it also serves as a simple out-of-sample test for the model. Figure 3, yield curve, shows the model's estimates for expected inflation at horizons of 1 to 30 years at three points in time: the current month, the previous month, and the previous year. The Excel file also provides estimates of the 1-month and 1-year real interest rate. These estimates can be interpreted as the actual interest rate, minus inflation, over the next month or the next year. Resources Inflation Expectations, Real Rates, and Risk Premia @ : This working paper provides the technical details of the model. Inflation: Noise, Risk and Expectations o : This Commentaryexplains to a more general audience how the model's estimates are better than alternative approaches. A New Approach to Gauging Inflation Expectations o : This Commentary explains how the model is constructed and what it provides to a more general audience. Charts TanY-rExpndsdlnillilonMd R-I andldhdon nunFNMII TunY-rTlF8YloldMnu RIIIvldd\ ~an Emzuald lhflahon Tim Slmclure nm 7l l u -1 .... pa \ 8 '3i "`*~'*/m ~ tri !""\*vv ~/,.f. . v. ml I - l _ » - - I U I n a n a n l , 1*$--uhaau-A-4259ll1 l 9 I ; .1 gnu' 1 . 4 sluaualalusnw nvnurusavn m.u@ n m ~uu I ¢uu §n\n nu . l WI ".z au.unu i n a.n una-u I an u-uns-nu--¢»¢»»u lanes-hunthm -Ur--na illn ume Questions? For additional information, contact us. To receive an email when new inflation expectations are posted, subscribe to our alert. Headlines 12.13.16 Community Stabilization Index > Brett Barkley https://www.clevelandfed.org/our-research/indicators-and-data/inflation-expectations.aspx 12/19/2016 Inflation Expectations: Latest News Release Page 3 of 3 Updated annually, the 2016 release of the Community Stabilization Index (CSI) shows improving housing market conditions in metro areas across the Federal Reserve Fourth District. Our analysis this year also features ongoing neighborhood development efforts in Canton, Cleveland, and Warren. Read More > 12.08.16 Broadband and Hiqh-speed Internet Access in the Fourth District > Kyle Fee1Shruthi Arvin This report documents the availability of highspeed internet access in the Fourth Federal Reserve District. While our analysis clearly shows there is limited broadband access in rural parts of the Fourth District, it shows that urban low- and moderate-income (LMI) areas also have limited access. Read More > 11.29.16 The Fed's Yield-Curve-Control Policy > Owen F. Humpaqe Because many central banks still face policy rates that are uncomfortably close to zero, they may consider adding a long~term interest-rate target to their short-term target to give themselves "yield-curve control." The Federal Reserve's foray into similar territory around the Second World War suggests doing so could create constraints on monetary policy that are not easily removed. Read More > Upcom ing Events SEE ALL 12.01 .16 Financial Stability Conference The conference will bring together academics, policymakers, and market participants to discuss financial and technological innovations and their impact on financial stability. 12.07.16 The Communitv Reinvestment Act (CRA) for Communitv Based Orqanizations This session is designed for those with limited knowledge of CRA but are eager to learn about the exam process. Basic concepts and principals of the CRA will be covered. © 2016 FEDERAL RESERVE BANK OF CLEVELAND https://www.clevelandfed.org/our-research/indicators-and-data/inflation-expectations.aspx 12/19/2016 EXHIBIT JAC-B I have tended to be inaccurate. Between 1984 and 2012, CBO, private-sector forecasters, and the Administration all systematically overestimated the path of nominal interest rates just two years into the future (coo 2015a). Figure 5 10-Year Treasury Rates and Historical Economist Forecasts Percent 8 7 6 . v 2000 2010 5 4 2015 9 3 l \ 2 \ W 1 l 0 1995 2000 2005 2010 2015 2020 2025 Note: Forecasts are those reported by Blue Chip Economic Indicators released in March of the given calendar year, the median of over 50 privatesector economists. Source: Blue Chip Economic Indicators, Aspen Publishers. A central question in forming a long-run forecast is whether interest rates are statistically stationary-i.e., whether they have a tendency to return to a definite long-run mean value or average. To the extent interest rates are mean-reverting, the historical average may contain the most useful information for projecting the longrun long-term interest rate. On the other hand, if changes in interest rates are permanent (or at least, highly persistent), recent data may contain more useful information about long-run interest rates than historical data. In general, econometric tests suggest that real and nominal interest rates revert to their mean very slowly, with close to unit root (non-stationary)9 properties." Tests for non-stationarity tend to be weak, however, in that distinguishing between a true unit root and mean reversion with very high persistence is difficult in a finite sample of data (Neely and Rapach 2008). Economic theory strongly suggests that real interest rates are bounded, if not fully mean reverting (as discussed in more detail in section II1).11 A high return on investment should trigger a reallocation of resources from consumption toward capital accumulation, driving down the marginal product of capital and the real interest rate over time. Similarly, a low return on 9 A time series is said to contain a unit root if its random changes contain a permanent component. In this case it is statistically nonstationary. lo Hamilton et. al. (2015) reject the hypothesis that the real interest rate converges to a fixed constant. The difficulty in predicting the longrun real interest rate leads them to be skeptical of models, like the Ramsey model considered below, that place a strong emphasis on the link between output growth and the real interest rate. 11 Even when interest rates are meanreverting, and therefore stationary in the statistical sense, they can be "trend stationary," reverting to means that evolve deterministically over time rather than being constants. Thus, stationarity of interest rates does not rule out the possibility that they trend upward or downward over long periods as a result of somewhat predictable, secular economic forces. 11 EXHIBIT JAC-C I u m Q * < 3 :B an 0 -x cu .: n. 9 u :E z S 3 N 8 2 w UB o 9 g 3 u m vo m m H To C m v c m E 8 in 5 m u cu E iv ea c GJ E E o uv m _xo fu u. > s °: _E Ur 8 9u gr - 35 8 in o 38a § N N Fl 0 .n D u *8 0 5 m83 E u 5 a m vs 32 =_9u s°s : g _ U . h : n " c D g D : Ag..nu $3~ : "' owe z .=l < m ; Z§g§=8E §~"28~ s > > -»: E . . ll 6 O $ 8 . _ 3 U C o .Q k ¢ c m so m n rt H 3 L. 8 u 3 x fu co < o H o E 9 \ . 3 .: G c é E. a m 88 2 338 88 .i~ 98 3 8 5 m um 88 E u m E g .4 6. 9 \ D= 4 H -I o 8.3 N \ E \ as N \r\- 1 .oo9 \n-1. .E. u 8 v l a v ° > m3 6 o : o >s 2~+a 6 9 : 5 i1 4s' N = Z " Q S a : : g m FI v n ET c o go: 41 o ca 84 z' E *= 8 U g 9 8 D u 2 M > u ¢ m o a V) U \-l t m U -q o q; .E 8 3 o ca to ng u o Vu ro H w w ' ~: 3 am m -as Fo c fu cow 4-0 r1 4 5 : 3 :> 3 o no 8 PI O N °H ° O? 4 g < cu - -1 W n m m 8 H N o Q \. 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Fl z c < Ru * g oN = 3 u ii > zru25 . : zf .5: N n .i Exhibit JACC Page 2 of 3 RANMOND JAMES Fixed Income Chzrtbook Corporate Sector Spreads to Treasuries (hp) 250 1 200 l "A" Industrials l "A Financials" a"A Banks" l "A Utilities" l "BBB Industrials" i"BBB Financials" l"BBB Banks" D"BBB Utilities" 150 Ill II Rh 14 .v. . 4 50 0 l l 1 100 I ':. :8 I 88 Ia 3: :1:1: fs 12:55 i: 6-mo 3- mo I : 1-yr 1: 12:5 .5 r' :5 75:5 I i 2 yr . 114 ff: j.j4 ti: 1111 £: .;ZN 95:1 4 *ZZ T:l'f4 §:1: 1128 g:: :Z8 our 7:8 .. :1:: : ii :F:" " 8 . :ii 1 0 yr 5 vf 3 0 yr (Source: Bloomberg LP Raymond James) The amount of extra yield in basis points. that inv res requve Q own iurpovehe A and B 8B creditqualirv bonds over U.S Treasury securities. Investment Company Institute (III) Flows of Long-term Funds 15,000 2,850 10,000 000 go o , •0° 111111 5,000 0 • 'Q IH T IV 2,800 2,750 • 2,700 2,650 ~lll 2,600 I -5,000 10,000 2,550 2,500 i _ Q -15,000 to <9 / *J *s X JeZ <9 O *% i Total Equity (mil) Total Bond (mil) QS Z Je Taxable Bond (mil) • • » • » Money Market (Bil: right) Q, "6 <4 *s / O <% QS / "a* QZ OfZ as Z *s "6 "6 (Source: III, Raymond James) QS <'6~ QS <'o~ *@ "6 2,400 2,350 J 86 Total esnmated inflows to long term mutual funds How esumales y dm WA "my data collected from Over 95% gr industry assets Total Issuance of U.S. Corporate Debt --»_2010 Issuance ($BiIlions} . , Jan Feb " 4 - . 2 0 1 1 " ¢ .I - o¢o»2013 2012 oooo 2014 2015 1,750 1,500 1,250 1,000 750 500 250 0 7 " " ' Mar Apr Jun Jul Au g Se p (Source: Bloomberg Raymond James) » l.S.dOII8l: vs 1.: 14 ; w. .~ May 1 basis point (be) = 1/100th of 1% or 0.01% Data as of: 12/12/2016 -20i6000 Oct . Nov De c EXHIBIT JAC-D I l Exhibit IACD Arizona Public Service Company Page 1 of 1 Test Year Ending December 31, 2015 Docket No. E01345A-16-0036 i VIX INDEX Analysis of Stock Market Volatility i as Measured by the VIX Index over the 12month period December 2015 November 2016 Monthly Activity Monthly Monthly Average High Low Close Line No. Time Period Number Trading Days in Month Number Days Traded Days Traded above 20.0 Percent (%) Dec15 Jan16 26.81 32.09 14.45 18.03 22 7 2 19.25 3 4 Feb16 Mar16 30.9 20.17 18.38 13.06 23.72 22.52 19 20 19 20 15.85 Apr16 May16 17.09 17.65 12.5 13.04 14.30 14.85 22 21 1 5 6 26.72 17.04 12.72 11.4 1 21 0 0 17.77 13.16 22 20 9 0 23 21 0 1 21 25 0 4 7 Jun16 8 9 Jul16 Aug16 14.93 11.02 12.40 10 11 12 Sep16 Oct16 20.51 1795 11.65 12.21 Nov16 23.01 12.16 14.22 14.59 15.24 13 14 above 20.0 i i l Quarterly Activity 15 16 Average High Average Low Average Close 17 18 12Months (Dec. 2015 . Nov. 2016) 22.07 13.49 16.39 257 61 23.74% 19 20 9Months (March Nov 2016) 19.45 12.20 14.71 196 15 7.65% 21 22 23 6Months (June Nov. 2016) 20.03 11.86 14.56 132 14 10.61% 3Months (Sept. Nov. 2016) 20.49 12.01 14.68 67 5 7.46% i Source: Chicago Board Options Exchange (CBOE) VIX Historical Data for the 12month period December 2015 November 2016. http://www.cboe.com/micro/vix/historical.aspx Downloaded: December 7, 2016.