44 45 P N M R E S O U R C E S • 2 0 0 3 A n n u a l R e p o r t t o S h a r e h o l d e r s CONSOLIDATED STATEMENTS OF RETAINED EARNINGS CONSOLIDATED BALANCE SHEETS Consolidated Statements of Retained Earnings  (In thousands) (In thousands) CONSOLIDATED BALANCE SHEETS CAPITALIZATION AND LIABILITIES  Consolidated Balance Sheets  ASSETS  The accompanying notes are an integral part of these financial statements. YEAR ENDED DECEMBER 31, 2003 2002 2001 BALANCE AT BEGINNING OF YEAR $ 444,651)% $ $^{415,388}$)% $ $^{296,843}$)% Net earnings 95,173)% $^{63,686}$)% $^{149,847}$)% Dividends (note 4): Common stock (36,755)% $^{(34,423)}$% $^{(31,302)}$% BALANCE AT END OF YEAR $ 503,069)% $ $^{444,651}$)% $ $^{415,388)}$% The accompanying notes are an integral part of these financial statements. The accompanying notes are an integral part of these financial statements. AS OF DECEMBER 31, 2003 2002 Capitalization: Common stockholders’ equity: Common stock outstanding 40,259 and 39,118 shares, no par value (note 4) $ 647,722)% $ $^{624,119}$)% Accumulated other comprehensive loss, net of tax (note 1) (73,487)% $^{(94,721)}$% Retained earnings 503,069)% $^{444,651}$)% TOTAL COMMON STOCKHOLDERS’ EQUITY 1,077,304)% $^{974,049}$)% Minority interest (notes 1 and 5) –)% $^{11,760}$)% Cumulative preferred stock without mandatory redemption requirements (note 4) 12,800)% $^{12,800}$)% Long-term debt (note 4) 987,210)% $^{980,092}$)% TOTAL CAPITALIZATION 2,077,314)% $^{1,978,701}$)% Current Liabilities: Short-term debt 125,918)% $^{150,000}$)% Accounts payable 86,155)% $^{90,355}$)% Accrued interest and taxes (notes 1 and 8) 23,477)% $^{46,189}$)% Other current liabilities 110,031)% $^{99,019}$)% TOTAL CURRENT LIABILITIES 345,581)% $^{385,563}$)% Deferred Credits: Accumulated deferred income taxes (notes 1 and 8) 250,098)% $^{139,732}$)% Accumulated deferred investment tax credits (notes 1 and 8) 38,462)% $^{41,583}$)% Regulatory liabilities (note 3) 316,384)% $^{279,952}$)% Asset retirement obligations (note 12) 46,416)% $^{–}$)% Minimum pension liability 128,825)% $^{141,175}$)% Accrued post-retirement benefit cost (note 9) 20,638)% $^{17,335}$)% Other deferred credits (note 14) 154,911)% $^{263,186}$)% TOTAL DEFERRED CREDITS 955,734)% $^{882,963}$)% Commitments and Contingencies (note 13) –)% $^{–}$)% $ 3,378,629)% $^{$ 3,247,227}$)% YEAR ENDED DECEMBER 31, 2003 2002 Utility Plant: (notes 1, 11 and 13) Electric plant in service $ 2,419,162)% $^{$ 2,301,673}$)% Gas plant in service 630,949)% $^{615,907}$)% Common plant in service and plant held for future use 48,735)% $^{79,987}$)% 3,098,846)% $^{2,997,567}$)% Less accumulated depreciation and amortization 1,063,645)% $^{1,102,443}$)% 2,035,201)% $^{1,895,124}$)% Construction work in progress 133,317)% $^{173,248}$)% Nuclear fuel, net of accumulated amortization of $15,995 and $16,568 25,917)% $^{26,832}$)% Net utility plant 2,194,435)% $^{2,095,204}$)% Other Property and Investments: Investment in lessor notes (notes 5 and 6) 330,339)% $^{350,479}$)% Other investments (notes 1 and 6) 114,273)% $^{92,225}$)% Non-utility property, net of accumulated depreciation of $1,755 and $1,750 1,455)% $^{1,528}$)% TOTAL OTHER PROPERTY AND INVESTMENTS 446,067)% $^{444,232}$)% Current Assets: Cash and cash equivalents 12,694)% $^{3,702}$)% Accounts receivables, net of allowance for uncollectible accounts of $9,284 and $15,575 68,258)% $^{46,914}$)% Unbilled revenues (note 1) 82,899)% $^{88,438}$)% Other receivables 47,042)% $^{53,052}$)% Inventories (note 1) 40,799)% $^{37,230}$)% Regulatory assets (note 3) 15,436)% $^{1,061}$)% Short-term investments (notes 1 and 6) –)% $^{79,630}$)% Other current assets 38,835)% $^{32,753}$)% TOTAL CURRENT ASSETS 305,963)% $^{342,780}$)% Deferred charges: Regulatory assets (note 3) 215,416)% $^{196,283}$)% Prepaid retirement cost (note 9) 85,782)% $^{39,665}$)% Other deferred charges 130,966)% $^{129,063}$)% TOTAL DEFERRED CHARGES 432,164)% $^{365,011}$)% $ 3,378,629)% $^{$ 3,247,227}$)%