ML073030291
| ML073030291 | |
| Person / Time | |
|---|---|
| Site: | Summer  |
| Issue date: | 03/02/2007 |
| From: | Cherry, Bekaert & Holland, South Carolina Electric & Gas Co |
| To: | Office of Nuclear Reactor Regulation |
| References | |
| Download: ML073030291 (9) | |
Text
INNOVATIONfinancials
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Report of Independent Auditors The Advisory Board and Board of Directors The South Carolina Public Service Authority Moncks Corner, South Carolina We have audited the accompanying combined balance sheet of the South Carolina Public Service Authority (a component unit of the state of South Carolina) as of December 31, 2006, and the related combined statement of revenues, and expenses and changes in net assets, and cash flows for the year then ended. These financial statements are the responsibility of the Authority's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of the Authority as of December 31, 2005, were audited by other auditors whose report dated March 22, 2006, expressed an unqualified opinion on those statements.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the South Carolina Public Service Authority as of December 31, 2006, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.
The Management's Discussion and Analysis section listed in the table of contents is not a required part of the financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit this information and express no opinion thereon.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The other information included in the annual report is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in our audit of the basic financial statements and, accordingly, we express no opinion on it.
Raleigh, North Carolina March 2, 2007
The accompanying notes are an integral part of these combined financial statements.
Combined Balance Sheets South Carolina Public Service Authority As of December 31, 2006 and 2005 2006 2005 (Thousands)
ASSETS Current assets Unrestricted cash and cash equivalents 106,179 90,614 Unrestricted investments 18,326 90,980 Restricted cash and cash equivalents 76,995 124,555 Restricted investments 109,666 12,352 Receivables, net of allowance for doubtful accounts of $674 and $713 at December 31, 2006 and 2005, respectively 167,798 157,722 Materials inventory 67,309 56,892 Fuel inventory Fossils fuels 142,061 67,080 Nuclear fuel - net 22,111 15,987 Interest receivable 4,437 1,807 Prepaid expenses and other current assets 27,703 60,959 Total current assets 742,585 678,948 Noncurrent assets Unrestricted cash and cash equivalents 1,674 62 Unrestricted investments 78,084 75,527 Restricted cash and cash equivalents 53,510 37,901 Restricted investments 284,664 182,905 Capital assets Utility plant 4,657,520 4,336,788 Long lived assets - asset retirement cost 33,078 93,240 Accumulated depreciation (2,103,066)
(1,960,802)
Total utility plant - net 2,587,532 2,469,226 Construction work in progress 1,286,639 1,057,193 Other physical property - net 2,120 2,209 Investment in associated companies 7,672 6,567 Regulatory asset - asset retirement obligation 164,192 153,090 Regulatory assets - derivative and hedging instruments 2,424 10 Deferred debits and other noncurrent assets Unamortized debt expenses 31,943 27,071 Costs to be recovered from future revenue 251,134 246,249 Other 46,320 46,244 Total noncurrent assets 4,797,908 4,304,254 Total assets 5,540,493 4,983,202
Combined Balance Sheets (continued)
South Carolina Public Service Authority As of December 31, 2006 and 2005 2006 2005 (Thousands)
LIABILITIES Current liabilities Current portion of long-term debt 79,136 69,674 Accrued interest on long-term debt 79,742 63,718 Commercial paper 195,072 285,449 Accounts payable 217,512 183,488 Other current liabilities 66,890 92,615 Total current liabilities 638,352 694,944 Noncurrent liabilities Construction fund liabilities 63,582 48,380 Asset retirement obligation liability 277,920 322,358 Total long-term debt (net of current portion) 3,190,690 2,657,160 Unamortized refunding and other costs (100,660)
(138,169)
Long-term debt - net 3,090,030 2,518,991 Other deferred credits and noncurrent liabilities 46,223 61,959 Total noncurrent liabilities 3,477,755 2,951,688 Total liabilities 4,116,107 3,646,632 NET ASSETS Invested in capital assets, net of related debt 787,362 814,282 Restricted for debt service 84,804 70,263 Restricted for capital projects 20,854 3,079 Restricted for other 164,677 165,427 Unrestricted 366,689 283,519 Total net assets 1,424,386 1,336,570 Total liabilities and net assets 5,540,493 4,983,202
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The accompanying notes are an integral part of these combined financial statements.
South Carolina Public Service Authority Years ended December 31, 2006 and 2005 2006 2005 (Thousands)
Operating revenues Sale of electricity 1,395,942 1,334,754 Sale of water 4,917 4,728 Other operating revenue 12,484 10,598 Total operating revenues 1,413,343 1,350,080 Operating expenses Electric operating expenses Production 70,235 65,614 Fuel 654,760 591,903 Purchased and interchanged power 104,280 117,519 Transmission 14,375 14,192 Distribution 8,938 8,041 Customer accounts 9,287 8,388 Sales 3,367 2,997 Administrative and general 60,148 62,223 Electric maintenance expense 84,609 77,789 Water operation expense 1,614 1,354 Water maintenance expense 335 372 Total operation and maintenance expenses 1,011,948 950,392 Depreciation and amortization 157,832 148,412 Sums in lieu of taxes 4,209 3,556 Total operating expenses 1,173,989 1,102,360 Operating income 239,354 247,720 Nonoperating revenues (expenses)
Interest and investment revenue 25,800 12,952 Net increase in the fair value of investments 9,666 4,126 Interest expense on long-term debt (163,208)
(143,562)
Other interest expense (22,297)
(23,034)
Costs to be recovered from future revenue 4,885 34,374 Other - net 8,567 15,237 Total nonoperating revenues (expenses)
(136,587)
(99,907)
Income before transfers 102,767 147,813 Transfers out Distribution to the State (14,951)
(12,422)
Total transfers out (14,951)
(12,422)
Change in net assets 87,816 135,391 Total net assets - beginning 1,336,570 1,201,179 Total net assets - ending 1,424,386 1,336,570 Combined Statements of Revenues, Expenses and Changes in Net Assets
The accompanying notes are an integral part of these combined financial statements.
Combined Statements of Cash Flows South Carolina Public Service Authority Years ended December 31, 2006 and 2005 2006 2005 (Thousands)
Cash flows from operating activities Receipts from customers 1,403,306 1,333,354 Payments to non-fuel suppliers (370,537)
(260,791)
Payments for fuel (645,495)
(586,692)
Purchased power (101,785)
(117,098)
Payments to employees (122,032)
(116,951)
Other receipts-net 169,466 100,278 Net cash provided by operating activities 332,923 352,100 Cash flows from non-capital related financing activities Distribution to the State of South Carolina (14,951)
(12,422)
Net cash used in non-capital related financing activities (14,951)
(12,422)
Cash flows from capital-related financing activities Proceeds from sale of bonds 724,535 496,816 Net commercial paper (repayments) issuance (90,486) 92,298 Repayment and refunding of bonds (180,106)
(612,849)
Interest paid on borrowings (150,712)
(156,665)
Construction and betterments of utility plant (559,355)
(440,739)
Debt premium 18,414 11,130 Other - net (2,036)
(2,994)
Net cash used in capital-related financing activities (239,746)
(613,003)
Cash flows from investing activities Net (increase) decrease in investments (119,310) 247,333 Interest on investments 23,144 13,173 Gain on sale of surplus property 3,166 10,952 Net cash (used by) provided by investing activities (93,000) 271,458 Net (decrease) in cash and cash equivalents (14,774)
(1,867)
Cash and cash equivalents-beginning 253,132 254,999 Cash and cash equivalents-ending 238,358 253,132
Combined Statements of Cash Flows (continued)
South Carolina Public Service Authority Years ended December 31, 2006 and 2005 2006 2005 (Thousands)
Reconciliation of operating income to net cash provided by operating activities Operating income 239,354 247,720 Adjustments to reconcile operating income to net cash provided by operating activities Depreciation and amortization 167,329 153,602 Net power gains involving associated companies (31,577)
(45,359)
Distributions from associated companies 27,420 44,164 Advances to associated companies 10 (97)
Other income 1,599 207 Changes in assets and liabilities Accounts receivable - net (10,076)
(16,608)
Inventories (85,398)
(40,024)
Prepaid expenses 30,274 (38,702)
Other deferred debits (830)
(5,337)
Accounts payable 36,518 44,058 Other current liabilities (25,795) 29,369 Other noncurrent liabilities (15,905)
(20,893)
Net cash provided by operating activities 332,923 352,100 Composition of cash and cash equivalents Current Unrestricted cash and cash equivalents 106,179 79,068 Restricted cash and cash equivalents 76,995 136,101 Noncurrent Unrestricted cash and cash equivalents 1,674 62 Restricted cash and cash equivalents 53,510 37,901 Cash and cash equivalents at the end of the year 238,358 253,132
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