tpz83109.htm

 
 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


 
FORM N-Q
 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 




Investment Company Act file number 811-22106



Tortoise Power and Energy Infrastructure Fund, Inc.
(Exact name of registrant as specified in charter)



11550 Ash Street, Suite 300, Leawood, KS 66211
(Address of principal executive offices) (Zip code)



David J. Schulte
11550 Ash Street, Suite 300, Leawood, KS 66211
(Name and address of agent for service)



913-981-1020
Registrant's telephone number, including area code



Date of fiscal year end: November 30


Date of reporting period:  August 31, 2009


 
 
 
 
 
Item 1. Schedule of Investments.
 
Tortoise Power and Energy Infrastructure Fund, Inc.
            
SCHEDULE OF INVESTMENTS (Unaudited)
            
             
   
August 31, 2009
  
   
 
  
Corporate Bonds - 41.9% (1)
    Principal Amount    
Fair Value
  
Crude/Refined Products Pipelines - 2.1% (1)
            
United States - 2.1% (1)
            
Kinder Morgan Finance Co., 5.700%, 01/05/2016
   $ 3,000,000     $ 2,745,000  
                 
Electric/Natural Gas Utility - 16.1% (1)
                
United States - 16.1% (1)
                
Ameren Corp., 8.875%, 05/15/2014
     2,000,000       2,177,616  
CMS Energy Corp., 8.750%, 06/15/2019
     500,000       530,548  
DTE Energy Co., 6.375%, 04/15/2033
     2,340,000       2,054,160  
NiSource Finance Corp., 10.750%, 03/15/2016
     5,000,000       5,855,900  
NRG Energy, Inc., 8.500%, 06/15/2019
     5,000,000       4,862,500  
NV Energy, Inc., 6.750%, 08/15/2017
     5,000,000       4,750,000  
Wisconsin Energy Corp., 6.250%, 05/15/2067
     875,000       691,250  
              20,921,974  
Natural Gas/Natural Gas Liquids Pipelines - 17.3% (1)
                
United States - 17.3% (1)
                
CenterPoint Energy, Inc., 6.500%, 05/01/2018
     5,000,000       4,918,110  
El Paso Corp., 12.000%, 12/12/2013
     4,000,000       4,540,000  
Southern Star Central Corp., 6.750%, 03/01/2016
     675,000       631,125  
Southern Star Central Gas Pipeline, 6.000%, 06/01/2016 (2)
     2,000,000       1,850,000  
TransCanada Pipelines Limited, 6.350%, 05/15/2067
     6,000,000       5,040,000  
Williams Companies, Inc., 8.750%, 03/15/2032
     2,000,000       2,249,926  
Williams Companies, Inc., 7.625%, 07/15/2019
     3,000,000       3,253,800  
              22,482,961  
                 
Natural Gas Gathering/Processing - 6.4% (1)
                
United States - 6.4% (1)
                
DCP Midstream LLC, 9.750%, 03/15/2019 (2)
     4,000,000       4,755,396  
Targa Resources, Inc., 8.500%, 11/01/2013
     4,000,000       3,620,000  
              8,375,396  
                 
Total Corporate Bonds (Cost $54,826,683)
             54,525,331  
                 
Master Limited Partnerships and Related Companies - 26.4% (1)
  
Shares
          
                 
Crude/Refined Products Pipelines - 14.6% (1)
                
United States - 14.6% (1)
                
Buckeye Partners, L.P.
     25,300       1,188,594  
Enbridge Energy Management, L.L.C.
     117,600       4,952,142  
Holly Energy Partners, L.P.
     20,539       752,344  
Kinder Morgan Management, LLC (3)
     156,900       7,426,077  
Magellan Midstream Partners, L.P.
     19,600       710,304  
NuStar Energy L.P.
     32,600       1,745,730  
Plains All American Pipeline, L.P.
     16,500       782,760  
Sunoco Logistics Partners L.P.
     26,481       1,503,591  
              19,061,542  
                 
Natural Gas/Natural Gas Liquids Pipelines - 6.1% (1)
                
United States - 6.1% (1)
                
Boardwalk Pipeline Partners, LP
     54,200       1,268,822  
El Paso Pipeline Partners, L.P.
     35,600       691,352  
Energy Transfer Equity, L.P.
     37,600       1,011,064  
Energy Transfer Partners, L.P.
     44,400       1,799,976  
Enterprise Products Partners L.P.
     33,600       907,200  
ONEOK Partners, L.P.
     24,157       1,209,299  
Spectra Energy Partners, LP
     26,960       624,663  
Williams Pipeline Partners L.P.
     23,645       436,960  
              7,949,336  
                 
Natural Gas Gathering/Processing - 4.0% (1)
                
United States - 4.0% (1)
                
Copano Energy, L.L.C.
     24,600       382,038  
DCP Midstream Partners, LP
     35,900       803,801  
Duncan Energy Partners L.P.
     96,400       1,749,660  
MarkWest Energy Partners, L.P.
     36,850       761,321  
Targa Resources Partners LP
     76,800       1,297,920  
Western Gas Partners LP
     15,300       257,805  
              5,252,545  
                 
Propane Distribution - 1.7% (1)
                
United States - 1.7% (1)
                
Inergy, L.P.
     78,500       2,188,580  
                 
                 
Total Master Limited Partnerships and Related Companies (Cost $34,613,982)
       34,452,003  
                 
Short-Term Investments - 34.7% (1)
                
United States Investment Companies - 34.7% (1)
          
Wells Fargo Advantage Heritage Money Market Fund, 0.34% (4)
     44,516,319       44,516,319  
Fidelity Institutional Government Portfolio - Class I, 0.19% (4)
     683,222       683,222  
Total Short-Term Investments (Cost $45,199,541)
             45,199,541  
                 
Total Investments - 103.0% (1) (Cost $134,640,206)
             134,176,875  
                 
Other Assets and Liabilities - (3.0%) (1)
             (3,898,874 )
                 
Total Net Assets Applicable to Common Stockholders - 100.0% (1)
     $ 130,278,001  
 
 
(1) Calculated as a percentage of net assets applicable to common stockholders.
(2) Restricted securities have been fair valued in accordance with procedures approved by the Board of Directors and have a total fair value of $6,605,396, which represents 5.1% of net assets.
(3) Security distributions are paid-in-kind.
(4) Rate indicated is the current yield as of August 31, 2009.

 
 
 

Various inputs are used in determining the value of the Company’s investments. These inputs are summarized in the three broad levels listed below:

Level 1 – quoted prices in active markets for identical investments
Level 2 – other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.)
Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments)
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

On April 9, 2009, the FASB issued FASB Staff Position (FSP) No. FAS 107-1 and APB 28-1, Interim Disclosures About Fair Value of Financial Instruments, which amends FASB Statement No. 107, Disclosures About Fair Value of Financial Instruments (“FSP 107-1”), to require disclosures about fair value of financial instruments for interim financial statements of publicly traded companies as well as in annual financial statements.  FSP 107-1 also amends APB Opinion No. 28, Interim Financial Reporting, to require those disclosures in summarized financial information at interim reporting periods.  FSP 107-1 is effective for interim reporting periods ending after June 15, 2009.

The following table provides the fair value measurements of applicable Company assets and liabilities by level within the fair value hierarchy as of August 31, 2009. These assets are measured on a recurring basis.

 
     
Fair Value Measurements at Reporting Date Using
     
Quoted Prices in
  
Significant
     
Active Markets for
Significant Other
Unobservable
 
Fair Value at
  
Identical Assets
Observable Inputs
Inputs
Description
August 31, 2009
  
(Level 1)
(Level 2)
(Level 3)
Debt Securities
          
Corporate Bonds(a)
 $    54,525,331
  
     $                    -
$    54,525,331
$                    -
Total Debt Securities
     54,525,331
  
                         -
    54,525,331
                    -
Equity Securities
          
Master Limited Partnerships and Related Companies(a)
     34,452,003
  
    34,452,003
                    -
                    -
Total Equity Securities
     34,452,003
  
    34,452,003
                    -
                    -
 Other
          
Short-Term Investments(b)
     45,199,541
  
         45,199,541
                    -
                    -
Total Other
     45,199,541
  
         45,199,541
                    -
                    -
Total
 $  134,176,875
  
$    79,651,544
$    54,525,331
$                    -
           
 
(a)  
All other industry classifications are identified in the Schedule of Investments.
(b)  
Short-term investments are sweep investments for cash balances in the Company at August 31, 2009.

Certain of the Company’s investments are restricted and are valued as determined in accordance with procedures established by the Board of Directors.  The table below shows the number of units held, acquisition date, acquisition cost, fair value per unit and percent of net assets which the securities comprise at August 31, 2009.
 
 
 
 
Company
Principal Amount
 
 
Acquisition
Date(s)
 
 
Acquisition
Cost
 
 
Fair Value
Fair Value Per Share
Fair Value as Percent of
Net Assets
DCP Midstream LLC, 9.750%, 03/15/2019
$4,000,000
08/07/09-08/27/09
$ 4,769,350
$ 4,755,396
N/A
   3.7%
Southern Star Central Gas Pipeline, 6.000%, 06/01/2016
$2,000,000
08/24/09
1,970,000
1,850,000
N/A
   1.4
 
    
$ 6,739,350
$ 6,605,396
  
   5.1%

At August 31, 2009, the cost basis of investments for federal income tax purposes was $134,615,919. At August 31, 2009, gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:


Gross unrealized appreciation
$        296,561
Gross unrealized depreciation
        (735,605)
Net unrealized depreciation
$      (439,044)

 
 
 


Item 2. Controls and Procedures.
 
(a)  
The registrant’s President and Chief Executive Officer and its Chief Financial Officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b)  
There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
 
Item 3. Exhibits.
 
Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) are filed herewith.
 

 
 
 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


  Tortoise Power and Energy Infrastructure Fund, Inc.  
       
Date:  October 27, 2009
By:
 /s/ David J. Schulte  
    David J. Schulte  
    President and Chief Executive Officer  
       


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

  Tortoise Power and Energy Infrastructure Fund, Inc.  
       
Date:  October 27, 2009
By:
 /s/ David J. Schulte  
    David J. Schulte   
    President and Chief Executive Officer  
       
  Tortoise Power and Energy Infrastructure Fund, Inc.  
       
Date:  October 27, 2009
By:
 /s/ Terry Matlack  
    Terry Matlack  
    Chief Financial Officer