ML13311A236
| ML13311A236 | |
| Person / Time | |
|---|---|
| Site: | San Onofre  |
| Issue date: | 03/03/1980 |
| From: | Southern California Edison Co |
| To: | |
| Shared Package | |
| ML13308B705 | List: |
| References | |
| NUDOCS 8005280650 | |
| Download: ML13311A236 (20) | |
Text
Contents Table Page Number Number 1
Highlights 1
2 Statements of Income 2
3 Operating Ratios 3
4 Per Share Data -
Common Stock 3
5 Operating Revenues 4
6 Kilowatt-Hour Consumption 4
7 Customers and Population 5
8 Energy 5
9 Taxes on Income 6
10 Balance Sheets 7
11 Statements of Changes in Financial Position 9
12 Statements of Earnings Reinvested in the Business and Additional Paid-in Capital 10 13 System Rate Base 10 14 Statements of Long-Term Debt 11 15 Detail of Utility Plant 11 16 Statements of Capital Stock 12 17 Capitalization and Plant Ratios 12 18 Operating Statistics 13 19 Existing Generation Capacity Resources 14 20 Projected Generating Resource Additions 14 21 Regulation 15 22 Projections -
Consumption, Demand, Capital Requirements and Generation Mix 17 Directors and Officers DOCli't #
so-aa 18 Contro # 800 azscsWV Date J s of Document:
8005 2 8 0 REGULATORY DOCKET FILE
Foreword March 3, 1980 Southern California Edison Company provides electric service in a 50,000 square-mile area of Central and Southern Cali fornia. This area includes some 800 cities and communities with a population of more than eight million people.
Edison's gross investment in utility plant totals nearly $7.6 billion. The installed Company-owned generating capacity at the end of 1979 was 13,263 megawatts of which 79% is com prised of oil and gas-fired generating units. SCE's interest in coal-fired generating units accounts for another 12%, and 6%
is in hydroelectric plants. The Company's interest in a nuclear plant accounts for the remaining 3%. In addition, Edison had 1,670 megawatts of capacity under contract from other utility sources at year end.
Service Terriory RECENT RATE MATTERS Extra.High Voltage (EHV) Transmission Line GENERAL RATE INCREASE FILED ENERGY COST ADJUSTMENT CLAUSE The Company filed with the California Public Utilities Com-PROCEDURE CHANGES mission (CPUC) on December 26, 1979, a general rate appli-On January 29, 1980, the CPUC authorized the accelerated cation designed to increase annual revenues by approximately recovery of the Company's undercollected Energy Cost Adjust
$340 million, based on a 1981 test year. The application ment Clause (ECAC) revenues in the amount of $81 million requests rate relief as a result of a general increase in operating during the period between February 3 and April 30, 1980. At expenses and financing costs. In addition, the application the same time, the CPUC approved, on an interim basis, requests an average annual rate of return on common equity the use of a floating interest rate on the ECAC balancing of 15% and 10.78% on rate base for the period 1981-82.
account which more nearly matches current short-term borrow Because of the two-year cycle adopted by the CPUC in granting ing or investment rates. Also revised are the ECAC filing general rate increases, the Company has also requested an procedures which should permit the Company's billing rates to attrition allowance of 0.40% return on rate base to reflect more accurately reflect the cost of fuel incurred during the increasing costs in the year following the test year.
ECAC adjustment period.
1 Highlights S-Year 1O-Year 1979 1974 Compound 1969 Compound Annual Annual Growth Rate Growth Rate Earnings Per Share
.betn.
4.56 2.80 10.2%
2.35 6.9%
Common Dividends Paid Per Share(a)..........
2.54 1.65 9.0 1.40 6.1 Operating Revenues (000)...................
$ 2,563,974
$ 1,360,959 13.5 642,124 14.8 Operating Expenses (000)
$ 2,178,978
$ 1,108,249 14.5 482,663 16.3 Energy Costs-net (000)(b)
$ 1,344,023 541,890 19.9 126,216 26.7 Taxes on Income (000) (b) r$
100,292 70,618 7.3 36,480 10.6 Net Income (000)..............
346,219 160,344 16.6 107,869 12.4 Earnings Available for Common and Original Preferred Stock (000)...................
292,481 124,656 18.6 95,152 11.9 Payroll (000)............................
325,815 208,892 9.3 133,146 9.4 Employees................
12,917 12,970 (0.1) 11,693 1.0 Population of Service Area.................
t 8,310,000 7,580,000 1.9 7,137,000 1.5 Total Customers............................
3,082,382 2,691,691 2.7 2,383,251 2.6 Kilowatt-Hour Consumption (000)............
59,517,861 51,089,981 3.1 42,601,606 3.4 Net Utility Plant (000).....................
$ 3,826,836
$ 3,269,553 3.2
$ 2,400,982 4.8 Main System Peak (kw) (c).............12,464,000 9,997,000 4.5 7,804,000 4.8 Operating Capacity (kw).
14,932,223 13,494,849 2.0 10,238,627 3.8 (a) On September 20, 1979, the Company's Board of Directors authorized an increase in the Common Stock quarterly dividend to $0.68 from $0.62 per share, ejffective with the October 31, 1979 payment, which is equivalent to $2.72 per share on an annual basis.
(b) Included in Operating Expenses.
(c) High S-year growth rate because of depressed 1974 peak demand resulting from mild climate conditions and customer conservation in response to the 1973 oil embargo.
Prfre1tc 00
$ 2241 1466
- 1.
512 1.
2 Statements of Income 10-Year (Thousands of Dollars)
Compound Annual Year Ended December 31, Growth Rate 1979 1978 1977 1976 1975 1974 1969 OPERATING REVENUES:
Sales...............
.$2,553,126
$2,294,543
$2,050,578
$1,833,012
$1,635,634
$1,349,479
$ 635,942 14.9%
Other..............
10,848 34,255 14,336 13,528 11,500 11,480 6,182 5.8 Total operating revenues......
2,563,974 2,328,798 2,064,914 1,846,540 1,647,134 1,360,959 642,124 14.8 OPERATING EXPENSES:
Fuel..............
1,433,658 1,086,051 1,113,028 818,932 768,843 505,209 111,357 29.1 Purchased power.....
99,245 118,698 76,569 84,515 55,983 36,681 14,859 20.9 Provision for energy cost adjustments....
(188,880) 35,280 (149,506) 12,684 Subtotal -
energy costs..........1,344,023 1,240,029 1,040,091 916,131 824,826 541,890 126,216 26.7 Other operation expenses...........
322,191 283,622 241,963 223,647 201,385 200,728 113,754 11.0 Maintenance........
177,407 164,111 133,166 113,188 93,716 91,905 51,068 13.3 Provision for depreciation.........
178,637 157,203 140,520 124,802 120,410 116,189 79,856 8.4 Taxes on income current and deferred 100,292 72,803 68,792 59,506 46,623 70,618 36,480 10.6 Property and other taxes...............
56,428 86,429 109,660 102,126 93,568 86,919 75,289 (2.8)
Total operating expenses......
2,178,978 2,004,197 1,734,192 1,539,400 1,380,528 1,108,249 482,663 16.3 OPERATING INCOME.......
384,996 324,601 330,722 307,140 266,606 252,710 159,461 9.2 OTHER INCOME AND INCOME DEDUCTIONS:
Allowance for equity funds used during construction.........
92,019 58,471 46,233 36,541 20,548 12,405 13,409 21.2 Other -
net...........
47,739 31,319 22,097 16,416 9,587 4,430 (817)
Total other income and income deductions....
139,758 89,790 68,330 52,957 30,135 16,835 12,592 27.2 TOTAL INCOME BEFORE INTEREST CHARGES....
524,754 414,391 399,052 360,097 296,741 269,545 172,053 11.8 INTEREST CHARGES:
Interest on long-term debt...............
179,626 154,301 143,152 134,423 124,674 104,145 64,401 10.8 Other interest and amortization..........
25,456 28,357 17,926 9,945 1,511 8,814 3,845 20.8 Total interest charges.........
205,082 182,658 161,078 144,368 126,185 112,959 68,246 11.6 Allowance for debt funds used during construction.......
(26,547)
(19,950)
(14,005)
(11,069)
(6,225)
(3,758)1 (4,062) 20.7 Net interest charges.....
178,535 162,708 147,073 133,299 119,960 109,201 64,184 10.8 NET INCOME...........
346,219 251,683 251,979 226,798 176,781 160,344 107,869 12.4 DIVIDENDS ON CUMULATIVE PREFERRED AND PREFERENCE STOCK...
53,738 49,457 45,649 41,751 39,604 35,688 12,717 15.5 EARNINGS AVAILABLE FOR COMMON AND ORIGINAL PREFERRED STOCK....
$ 292,481
$ 202,226
$ 206,330
$ 185,047
$ 137,177
$ 124,656 $
95,152 11.9%
Note: For operating ratios and per share data see page 3 of this report.
2
3 Operating Ratios 1979 1978 1977 1976 1975 1974 1969 PERCENT OF OPERATING REVENUES:
Fuel................................
55.9 %
46.6 %
53.9 %
44.4 %
46.7 %
37.1 %
17.4 %
Purchased power...................
3.9 5.1 3.7 4.6 3.4 2.7 2.3 Energy cost adjustments...............
(7.4) 1.5 (7.2) 0.7 Subtotal -
energy costs 52.4 53.2 50.4 49.7 50.1 39.8 19.7 Other operation expenses 12.6 12.2 11.7 12.1 12.2 14.7 17.7 Maintenance 6.9 7.1 6.5 6.1 5.7 6.8 8.0 Provision for depreciation.............
7.0 6.8 6.8 6.8 7.3 8.5 12.4 Property and other taxes..............
2.2 3.7 5.3 5.5 5.7 6.4 11.7 Operating expenses (before taxes on income) 81.1 83.0 80.7 80.2 81.0 76.2 69.5 Taxes on income -
current and deferred..
3.9 3.1 3.3 3.2 2.8 5.2 5.7 Operating income.....................
15.0 13.9 16.0 16.6 16.2 18.6 24.8 Total 100.0 %
100.0 %
100.0 %
100.0 %
100.0 %
100.0 %
100.0 %
PERCENT RETURN ON MID-YEAR.
Net utility plant......
10.1 %
8.8 %
9.4 %
9.1 %
8.1 %
7.9 %
5.9 %
Invested capital......................
9.9 8.6 8.9 8.7 7.6 7.4 6.9 Common equity (a)...............
13.6 10.5 12.1 12.1 9.8 9.5 10.4 RETURN ON RATE BASE (b)........
9.2 %
7.9 %
8.5 %
8.2 %
7.0 %
6.9 %
6.7 %
TIMES EARNED (BEFORE INCOME TAXES):
Mortgage bond interest 3.39 3.01 3.21 3.13 2.82 3.25 3.30 Total interest....
3.05 2.66 2.91 2.94 2.75 3.01 3.12 Fixed charges (c).............
2.93 2.54 2.79 2.83 2.63 2.87 3.02 TIMES EARNED (AFTER INCOME TAXES):
Mortgage bond interest............
2.95 2.67 2.80 2.72 2.46 2.57 2.73 Total interest...................
2.67 2.37 2.56 2.56 2.40 2.41 2.58 Fixed charges (c).....................
2.58 2.28 2.46 2.48 2.31 2.31 2.46 EMBEDDED COST OF CAPITAL (AT YEAR END):
Long-term debt.......................
7.41%
6.84%
6.55%
6.42%
6.12%
5.90%
4.93%
Preferred and preference stock..........
7.53 7.25 7.21 7.02 7.02 6.81 5.13 (a) Includes Original Preferred Stock.
(b) Calculations are based on a thirteen-month weighted average depreciated rate base.
(c) Fixed charges include interest on long and short-term debt and include amortization of debt discount and expense and premium on all indebtedness. Fixed charges for the years subsequent to 1974 include the interest factor relating to certain significant rentals plus one-third of all remaining annual rentals. Fixed charges for 1974 include one-third of total annual rentals. The year 1969 has not been restated to reflect this change as it is not considered material.
4 Per Share Data -
Common Stock 1979 1978 1977 1976 1975 1974 1969 Earnings per share(a):
Primary....
$ 4.56
$ 3.52
$ 3.80
$ 3.80
$ 2.86
$ 2.80
$ 2.35 Fully diluted.
$ 4.39
$ 3.38
$ 3.63
$ 3.61
$ 2.75
$ 2.68
$ 2.27 Dividends per share(b):
Paid......
$ 2.54
$ 2.24
$ 1.92
$ 1.68
$ 1.68
$ 1.65
$ 1.40 Declared.........
$ 2.60
$ 2.30
$ 2.06
$ 1.68
$ 1.68
$ 1.68
$ 1.40 Year-end data(b):
Dividend rate....................
$ 2.72
$ 2.48
$ 2.24
$ 1.68
$ 1.68
$ 1.68
$ 1.40 Dividend yield (rate) 11.1 %
9.6 %
8.5 %
7.3 %
8.6 %
9.6 %
4.6 %
Dividend payout ratio (paid) 55.7 %
63.6 %
50.5 %
44.2 %
58.7 %
58.9 %
59.6 %
Book value(a).........
$34.22
$32.57
$32.30
$30.67
$29.64
$28.50
$23.53 Market/book ratio...
71.6 %
79.1 %
81.7 %
74.6 %
66.2 %
61.4 % 128.0 %
Price/earnings ratio..................
5.4 7.3 6.9 6.0 6.9 6.3 12.8 Prices-High.........................
$27 3%
$27
$274
$23/8
$212
$193/8
$39 Low
$231
$227/s
$21/8
$18%
$16%
$14/8
$29
-Year-end
$24/
$25%
$26
$22y%
$19/8
$172
$308 Common shares outstanding at year end (000) 64,895 62,537 54,646 53,129 47,485 47,485 40,483 Weighted average shares of Common and Original Preferred Stock Outstanding and Common Stock Equivalents (000)....................
64,202 57,477 54,347 48,678 47,965 44,580 40,501 (a) Includes Original Preferred Stock.
(b) On September 20, 1979, the Company's Board of Directors authorized an increase in the Common Stock quarterly dividend to $0.68 from
$0.62 per share, eflective with the October 31, 1979 payment, which is equivalent to $2.72 per share on an annual basis.
3
5 Operating Revenues 1979 1978 1977 1976 1975 1974 1969 CLASS OF SERVICE -
DOLLARS (000):
Residential.$
764,595
$ 704,658
$ 616,520
$ 589,397
$ 564,389
$ 506,154
$ 237,859 Agricultural.47,146 40,449 50,781 45,338 37,521 33,788 15,460 Commercial.663,678 610,735 505,469 464,254 413,458 364,994 158,735 Industrial..
683,013 593,580 481,587 430,427 389,829 354,334 138,800 Public Authorities
.225,351 206,838 188,054 166,038 153,850 141,376 58,746 Interdepartmental
.39 30 22 27 29 28 22 Resale(a) 169,304 138,253 208,145 120,459 97,439 71,278 26,320 Customer refunds............
17,072 (20,881)
(122,473)
Sales of electric energy....
2,553,126 2,294,543 2,050,578 1,833,012 1,635,634 1,349,479 635,942 Other..................
10,848 34,255 14,336 13,528 11,500 11,480 6,182 Total operating revenues.
$2,563,974
$2,328,798
$2,064,914
$1,846,540
$1,647,134
$1,360,959 642,124 CLASS OF SERVICE -
PERCENT:
Residential.29.8 30.2%
29.8%
31.9%
34.3%
37.2%
37.0%
Agricultural...
1.8 1.7 2.5 2.5 2.3 2.5 2.4 Commercial.25.9 26.2 24.5 25.2 25.1 26.8 24.7 Industrial.267 25.5 23.3 23.3 23.7 26.0 21.6 Public Authorities 8.8 8.9 9.1 9.0 9.3 10.4 9.2 Resale(a)......
6.6 6.0 10.1 6.5 5.9 5.2 4.1 Customer refunds.
0.9 (1.3)
(9.0)
Sales of electric energy...
99.6 98.5 99.3 99.3 99.3 99.1 99.0 Other.....
0.4 1.5 0.7 0.7 0.7 0.9 1.0 Total.100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
RESIDENTIAL CONSUMPTION DATA:
Average consumption per residential customer (kwh) 6,010 5,883 5,630 5,650 5,596 5,541 5,031 Average annual revenue per residential customer.$283.81
$269.73
$242.98
$238.77
$234.07
$214.76
$114.44 Average revenue per kwh 4.72 4.580 4.320 4.23 4.18 3.880 2.270 (a) Includes revenues attributable to sales of electricity to other electric utilities and to cities or other public authorities for distribution to ultimate consumers.
6 Kilowatt-Hour Consumption 1979 1978 1977 1976 1975 1974 1969 CLASS OF SERVICE -
kwh (000):
Residential
.216,191,091 15,369,184 14,285,971 13,946,809 13,493,387 13,059,518 10,456,778 Agricultural 975,311 851,017 1,377,939 1,275,643 1,074,606 1,049,878 917,818 Commercial...
14,454,319 13,937,000 13,388,075 12,951,697 12,036,129 11,514,671 9,207,679 Industrial 17,351,728 16,652,243 16,393,105 15,622,603 15,055,646 15,553,144 14,124,903 Public Authorities -
Other...
4,701,251 4,656,895 4,646,504 4,612,795 4,424,102 4,193,853 3,691,362 Interdepartmental...............1,134 1,015 731 914 962 927 720 Resale -
Other (a).............4,426,206 4,170,027 4,061,526 3,839,119 4,023,608 4,230,649 3,432,348 SUB-TOTAL
.58,501,040 55,637,381 54,153,851 52,249,580 50,108,440 49,602,640 41,831,608 Special Contracts(b)...........1,416,821 1,389,654 3,572,422 1,435,798 1,219,068 1,487,341 769,998 Total kilowatt-hour consumption(b).....
59,517,861 57,027,035 57,726,273 53,685,378 51,327,508 51,089,981 42,601,606 CLASS OF SERVICE -
PERCENT:
Residential
.27.2%
27.0%
24.8%
26.0%
26.3%
25.6%
24.5%
Agricultural
.1.6 1.5 2.4 2.4 2.1 2.1 2.1 Commercial
.24.3 24.4 23.2 24.1 23.5 22.5 21.6 Industrial 29.2 29.2 28.4 29.1 29.3 30.4 33.2 Public Authorities -
Other 7.9 8.2 8.0 8.6 8.6 8.2 8.7 Resale -Other (a)......
7.4 7.3 7.0 7.1 7.8 8.3 8.1 SUB-TOTAL...............
.97.6 97.6 93.8 97.3 97.6 97.1 98.2 Special Contracts(b) 2.4 2.4 6.2 2.7 2.4 2.9 1.8 Total.100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
(a) Includes kilowatt-hour sales to other electric utilities and to cities or other public authorities for distribution to ultimate consumers.
(b) The year 1977 includes 2u53 million kilowatt-hours of drought-related sales to other utility systems in the state.
4
7 Customers and Population 1979 1978 1977 1976 1975 1974 1969 CUSTOMERS:
Residential..............
2,733,435 2,648,841 2,572,826 2,497,076 2,438,903 2,385,705 2,101,876 Agricultural 25,768 25,802 25,888 25,465 24,997 24,816 24,983 Commercial..............252,594 242,264 234,276 227,143 222,694 219,499 200,266 Industrial 35,792 35,126 33,791 31,405 30,410 30,169 30,300 Public Authorities..........34,769 34,491 34,053 33,294 32,658 31,482 25,801 Interdepartmental.........
2 2
2 2
2 2
2 Resale.................
22 19
- 20.
18 16 18 23 Total customers......
3,082,382 2,986,545 2,900,856 2,814,403 2,749,680 2,691,691 2,383,251 APPROXIMATE POPULATION OF SERVICE AREA.............8,310,000 8,142,000 7,974,000 7,818,000 7,684,000 7,580,000 7,137,000 8
Energy 1979 1978 1977 1976 1975 1974 1969 AVERAGE ANNUAL ENERGY COST UNIT OF PURCHASE(a):
Oil ($/bbl) 20.65 17.69 15.42 15.40 16.32 12.08 2.38 Gas (0/mcf)............. 251.57 216.67 193.85 131.39 91.63 61.28 32.69 Coal ($/ton).............. 13.90 10.28 8.09 7.09 5.68 5.34 2.88 AVERAGE COST (O/m 2btu):
Oil..................... 339.6 291.4 253.8 251.6 266.7 198.3 38.9 Gas.................... 239.4 204.9 185.0 125.2 86.9 57.5 30.6 Coal....................
70.9 52.6 41.0 35.9 28.4 27.2 16.2 Nuclear................
43.0 36.0 34.0 28.9 17.2 11.3 17.9 Average cost all sources...
258.4 224.4 200.1 179.6 176.3 119.2 31.0 AVERAGE COST (O/KWH):
Oil...................
.3.330 2.920 2.499 2.506 2.638 1.982 0.370 Gas.....................
2.516 2.138 1.890 1.298 0.886 0.589 0.300 Coal....................
0.823 0.605 0.462 0.404 0.332 0.304 0.154 Nuclear...........
0.464 0.391 0.363 0.312 0.183 0.121 0.188 Purchased Power..........
1.631 1.127 1.274 0.708 0.657 0.602 0.378 Average cost all sources.............
2.315 1.886 1.878 1.520 1.466 0.983 0.272 ENERGY CONSUMPTION:
Oil (bbls) (000)...........
47,665 45,121 57,691 44,827 41,220 34,815 9,706 Gas (mcf) (000).......... 152,257 109,964 90,093 64,631 70,639 89,429 253,647 Coal (tons) (000).........
3,887 3,487 4,491 4,546 3,987 4,440 237 OIL INVENTORY -
YEAR END (bbis) (000)................
10,302 9,075 17,400 13,494 19,176 19,666 9,249 (a) There is no uniform unit of purchase for nuclear fuel.
5
9 Taxes on Income (Thousands of Dollars)
Year Ended December 31, 1979 1978 1977 1976 1975 1974 1969 Current:
Federal........
$ 6,717
$(49,219) $(48,360) $ 25,165
$ 37,897
$111,359
$ 34,430 State.............
4,019 3,567 1,233 14,344 12,481 24,241 4,416 10,736 (45,652)
(47,127) 39,509 50,378 135,600 38,846 Deferred -
Federal and State:
Investment tax credit -
net..............
45,533 32,568 26,886 16,366 6,624 (781)
(83)
Deferred energy costs...............
34,148 (15,904) 81,101 (11,269)
Customer refunds.......................
78,801 (5,315) 5,651 (11,000)
(64,519)
Other...............
(13,644) 2,208 1,345 3,432 (2,144)
(2,129)
(2,283) 66,037 97,673 104,017 14,180 (6,520)
(67,429)
(2,366)
Total taxes on income......................
$ 76,773
$ 52,021
$ 56,890
$ 53,689
$ 43,858
$ 68,171
$ 36,480 Taxes on income included in operating expenses
$100,292
$ 72,803
$ 68,792
$ 59,506 $ 46,623
$ 70,618
$ 36,480 Taxes on income included in other income.....
(23,519)
(20,782)
(11,902)
(5,817)
(2,765)
(2,447)
Total taxes on income.......
$ 76,773
$ 52,021
$ 56,890
$ 53,689
$ 43,858
$ 68,171
$ 36,480 Differences between the federal statutory tax rate and the Company's effective tax rate are reconciled as follows:
Computed "expected" current federal income tax................................
$194,557
$145,765
$148,244
$134,621
$105,894
$109,681
$ 76,216 Adjustments:
Excess of tax over book depreciation.....
(16)
(10,483)
(18,408)
(25,388)
(25,585)
(27,631)
(19,579)
Allowance for debt and equity funds used during construction..................
(54,540)
(37,642)
(28,914)
(22,853)
(12,851)
(7,758)
(9,224)
Repair allowance......................
(13,800)
(14,400)
(8,880)
(5,760)
Administrative and general expenses capitalized.........................
(9,292)
(8,162)
(7,082)
(6,786)
(6,708)
(5,208)
(2,307)
Investment tax credit -net
..............(34,043)
(25,459)
(20,355)
(13,821)
(6,834)
(8,732)
(4,920)
Ad valorem lien date adjustment..........
(1,019) 12,776 (1,720)
(1,977)
(1,380)
(1,191)
(1,240)
Federal deduction for state taxes on income (9,084)
(8,114)
(8,972)
(5,386)
(10,193) 1,839 All other differences................... (15,737)
(16,825)
(11,386)
(12,889)
(8,721)
(5,710)
(4,550)
State tax provision......................19,747 14,565 14,363 13,928 10,236 12,881 2,084 Total taxes on income...................... $ 76,773
$ 52,021
$ 56,890
$ 53,689
$ 43,858
$ 68,171
$ 36,480 Pretax income...........................
$422,992
$303,704
$308,869
$280,487
$220,639
$228,515
$144,349 Effective tax rate (Total taxes on income +
pretax income) 18.1%
17.1%
18.4%
19.1%
19.9%
29.8%
25.3%
Property and other taxes included in operating expenses:
Property..............................
$ 48,300
$ 74,665
$ 98,370
$ 91,601
$ 84,965
$ 80,448
$ 71,676 Payroll and other........................
8,128 11,764 11,290 10,525 8,603 6,471 3,613
$ 56,428
$ 86,429
$109,660
$102,126
$ 93,568
$ 86,919
$ 75,289 6
10 Balance Sheets (Thousands of Dollars)
December 31, 1979 1978 1977 1976 1975 1974 1969 ASSETS UTILITY PLANT:
Utility plant, at original cost(a)
$5,502,984
$5,303,746
$4,964,888
$4,698,533
$4,490,075 $4,320,577
$3,050,684 Less -
Accumulated provision for depreciation...........
1,676,148 1,519,174 1,383,009 1,258,327 1,149,311 1,051,024 649,702 Net utility plant... _
3,826,836 3,784,572 3,581,879 3,440,206 3,340,764 3,269,553 2,400,982 Construction work in progress..
2,058,958 1,493,573 1,209,502 938,294 632,508 422,834 411,152 Nuclear fuel, at amortized cost..
15,728 13,572 17,343 21,606 24,750 22,764 Total utility plant...
5,901,522 5,291,717 4,808,724 4,400,106 3,998,022 3,715,151 2,812,134 OTHER PROPERTY AND INVESTMENTS:
Real estate and other, at cost less accumulated provision for depreciation..............
11,110 7,658 6,024 11,061 13,555 15,605 8,512 Subsidiary companies.......
93,725 85,818 82,579 84,027 78,127 72,961 8,501 Total other property and investments.............
104,835 93,476 88,603 95,088 91,682 88,566 17,013 CURRENT ASSETS:
Cash......................
4,705 7,458 9,245 8,412 15,033 8,003 10,822 Temporary cash investments 80,532 66,673 2,118 Receivables, less reserves for uncollectible accounts......
212,728 211,625 213,002 126,448 122,759 122,487 48,007 Fuel stock, at cost (first-in, first-out).................
284,827 163,021 277,586 196,371 316,653 276,268 36,597 Materials and supplies, at average cost..............
39,388 28,463 28,016 24.559 28,891 26,547 23,679 Deferred energy costs(b).....
303,622 102,369 132,559 Prepayments and other (taxes, insurance, etc.)...........
80,266 42,022 63,476 65,502 47,815 82,848 38,765 Total current assets........
925,536 635,490 723,884 421,292 531,151 582,826 159,988 DEFERRED CHARGES:
Unamortized debt expense(c)..
16,589 14,709 14,110 13,473 13,309 12,834 4,264 Accumulated deferred income taxes -
customer refunds 78,801 73,486 79,137 68,137 Other deferred charges........
28,755 22,305 11,144 17,398 16,143 13,974 8,791 Total deferred charges......
45,344 37,014 104,055 104,357 108,589 94,945 13,055
$6,977,237
$6,057,697
$5,725,266
$5,020,843
$4,729,444
$4,481,488
$3,002,190 (a) In the years 1974 and subsequent, Contributions in Aid of Construction were credited directly to Utility Plant. The year 1969 has not been adjusted.
(b) Deferred Energy Costs result from the Company's Energy Cost Adjustment Clause.
(c) Pursuant to a FERC Order, unamortized debt expense was segregated fron debt premium and discount and reclassified as a deferred charge. The balance sheet for the year 1969 has not been restated.
7
(Thousands of Dollars)
December 31, 1979 1978 1977 1976 1975 1974 1969 CAPITALIZATION AND LIABILITIES CAPITALIZATION:
Preferred stock -
subject to mandatory redemption requirements:
Cumulative preferred....
$ 262,500
$ 135,000
$ 135,000 75,000 75,000 75,000 Preference stock.
62,000 62,000 62,000 Preferred stock -
other Original preferred.......
4,000 4,000 4,000 4,000 4,000 4,000 4,000 Cumulative preferred.....
458,755 458,755 458,755 458,755 458,755 408,755 183,755 Preference stock........
27,067 40,895 55,417 74,998 74,998 74,998 74,998 Common stock, including additional stated capital....
577,259 547,166 470,374 442,741 395,709 395,709 337,360 Total capital stock -
stated value..................
1,391,581 1,247,816 1,185,546 1,055,494 1,008,462 958,462 600,113 Additional paid-in capital.....
601,578 569,673 443,109 427,422 350,503 350,503 243,437 Capital stock expense(d)...
(2,008)
Earnings reinvested in the business....
1,054,296 931,217 862,956 769,425 671,548 616,562 381,040 Total 3,047,455 2,748,706 2,491,611 2,252,341 2,030,513 1,925,527 1,222,582 LONG-TERM DEBT: (C)
Bonds....
2,685,632 2,388,212 2,219,716 2,055,966 1,931,757 1,863,951 1,384,840 Debentures................
75,046 75,135 75,224 75,313 75,401 74,987 Other.....................
60,575 14,216 20,023 20,671 25,968 14,327 Total long-term debt........
2,746,207 2,477,474 2,314,874 2,151,861 2,033,038 1,953,679 1,459,827 TOTAL CAPITALIZATION..
5,793,662 5,226,180 4,806,485 4,404,202 4,063,551 3,879,206 2,682,409 CURRENT LIABILITIES:
Accounts payable 288,897 154,495 169,128 125,130 107,902 114,748 37,209 Commercial paper payable....
134,340 135,365 36,050 50,000 Notes payable to banks.........
19,840 19,986 46,000 Current maturities of long-term debt....................
84,544 33,737 35,500 80,840 Customer refunds -
current..
58,139 52,724 Taxes accrued.............
73,312 92,550 95,753 85,487 84,835 160,639 44,208 Interest accrued.............
55,619 51,069 47,802 38,150 36,695 31,134 21,308 Customer deposits...........
14,583 15,601 14,267 13,109 11,943 10,958 5,932 Dividends declared..........
48,381 43,205 35,223 27,190 24,820 24,820 15,144 Deferred energy costs(b) 21,391 Accumulated deferred income taxes -
net..
88,076 53.928 69,832 Other 19,947 23,612 15,127 12,801 12,541 45.345 4,544 Total current liabilities...
885,678 540,907 617,997 359,308 409,576 387,644 174,345 CONTRIBUTIONS IN AID OF CONSTRUCTION(a) 60,163 RESERVES AND DEFERRED CREDITS:
Customer advances and other deferred credits...........
51,598 46,115 40,804 32,087 35,973 25,601 26,953 Customer refunds....
58,454 107,774 149,657 139,568 150,295 129,414 Accumulated deferred income taxes and investment tax credits....
155,297 110,096 80,870 53,957 34,158 29,678 40,271 Reserves for pensions, insurance, etc.
32,548 26.625 29,453 31,721 35,891 29,945 18,049 Total reserves and deferred credits 297,897 290,610 300,784 257,333 256,317 214,638 85,273
$6,977,237
$6,057.697
$5,725,266
$5,020,843
$4,729,444
$4,481,488
$3,002,190 (d) In 1974, the unanortized balance of capital stock expense was transferred to Earnings Reinvested in the Business. Prior to 1974, capital stock expense was amortized to income over a five-year period from the dates incurred.
8
11 Statements of Changes in Financial Position (Thousands of Dollars)
Year Ended December 31, 1979 1978 1977 1976 1975 1974 1969 FUNDS PROVIDED BY:
Operations Net income.......................
$ 346,219
$251,683
$251,979
$ 226,798
$176,781
$160,344
$107,869 Non-fund items:
Depreciation......
178,637 157,203 140,520 124,802 120,410 116,189 79,856 Equity in earnings of unconsolidated subsidiaries..............
(3,133)
(608)
(551)
(968)
(290)
(1,040)
Allowance for debt and equity funds used during construction....... (118,566)
(78,421)
(60,238)
(47,610)
(26,773)
(16,163)
(17,471)
Investment tax credit deferred -
net 45,533 32,568 26,886 16,366 6,624 (781)
(83)
Other -net 9,269 4,788 8,152 15,417 5,746 6,603 3,526 Earnings distributed from unconsolidated subsidiaries 1,000 1,000 1,000 1,000 3,500 Total from operations........
458,959 368,213 367,748 335,805 285,998 265,152 173,697 Long-term financing Preferred stock.
127,500 60,000 50,000 50,000 Preference stock (a).............
(13,828)
(14,522) 42,419 Common stock (a)...
62,002 203,364 43,323 123,951 67,200 53,340 Long-term debt.....
355,000 200,000 200,000 126,263 161,641 222,486 175,000 Total from long-term financing..........
530,674 388,842 345,742 250,214 211,641 339,686 228,340 Other sources Construction advances and other.........
11,628 9,258 9,102 5,529 9,404 169 2,960 Sale of non-current assets............
10,883 Decrease in working capital...........
3,918 13,067 140,431 Total from other sources............
15,546 22,325 19,985 145,960 9,404 169 2,960 Total funds provided.............
$1,005,179
$779,380
$733,475
$ 731,979
$507,043
$605,007
$404,997 FUNDS APPLIED TO:
Construction expenditures -
net..........$
792,713
$646,252
$560,507
$ 547,936
$407,903
$336,837
$294,689 Less -
allowance for debt and equity funds used during construction..............
118,566 78,421 60,238 47,610 26,773 16,163 17,471 Funds used for construction expenditures 674,147 567,831 500,269 500,326 381,130 320,674 277,218 Advances to unconsolidated subsidiaries...
5,769 3,630 (999) 5,900 8,375 13,870 Dividends...........................
221,400 182,738 157,561 125,101 120,186 111,584 69,541 Repayment of long-term debt.........
33,736 35,500 80,840 160 Customer refunds..................
49,321 (36,918)
(4,774) 5,076 (9,881)
(57,954)
Other -
net 20,806 26,599 2,015 14,736 3,157 1,844 Increase in working capital...............
79,403 7,233 213,676 56,234 Total funds applied..............
$1,005,179
$779,380
$733,475
$ 731,979
$507,043
$605,007
$404,997 WORKING CAPITAL CHANGES (Other than current maturities of long-term debt):
Receivables and temporary cash investments
$ (79,429) $ 79,155
$ 86,554 3,689
$(66,401) $ 98,352
$ 5,854 Fuel stock, materials and supplies.........
132,731 (114,118) 84,672 (124,614) 42,729 139,951 12,446 Deferred energy costs -
net.............
167,105 (14,286) 72,849 (10,122)
Prepayments and other.............
38,244 (21,454) 9,243 6,418 (35,033) 40,931 2,687 Notes and accounts payable..............(270,346) 68,803 (145,639)
(2,418)
(10,350) 42,338 45,223 Taxes and interest accrued........
14,688 (64)
(19,918)
(2,107) 70,243 (100,706)
(11,596)
Other -
net...............
(6,911)
(11,103)
(8,358)
(11,277) 6,045 (7,190) 1,620 Increase (Decrease) in working capital......................
(3,918) $(13,067) $ 79,403
$(140,431)
$ 7,233
$213,676
$ 56,234 (a) These amounts reflect conversions of Preference Stock, 5.20% Convertible Series, to Common Stock in the amounts of $13,828,000 for 1979 and $14,522,000 for 1978. The amount for 1977 also includes the issuance of Preference Stock, 7375% Series.
9
12 Statements of Earnings Reinvested in the Business and Additional Paid-in Capital (Thousands of Dollars)
Year Ended December 31, 1979 1978 1977 1976 1975 1974 1969 REINVESTED EARNINGS:
Balance at January 1... _...........
$ 931,217
$ 862,956
$ 769,425
$671,548
$616,562
$569,938
$342,712 ADD:
Net income for the year..............
346,219 251,683 251,979 226,798 176,781 160,344 107,869 Adjustments (net) (a) (b).............
3,801 (2,136) 1,277,436 1,118,440 1,021,404 898,346 793,343 728,146 450,581 DEDUCT:
Dividends declared on capital stock:
Original preferred................
1,219 1,075 922 806 806 792 672 Cumulative preferred.............
47,575 42,532 38,423 37,851 35,705 32,157 8,817 Preference....................
6,164 6,926 6,844 3,900 3,900 3,900 3,900 Common........................
166,443 132,205 111,372 82,544 79,775 74,735 56,152 Capital stock expense(b)...............
1,739 4,485 887 3,820 1,609 223,140 187,223 158,448 128,921 121,795 111,584 69,541 Balance at December 31(c)
$1,054,296
$ 931,217
$ 862,956
$769,425
$671,548
$616,562
$381,040 ADDITIONAL PAID-IN CAPITAL:
Balance at January 1..................
$ 569,673
$ 443,109
$ 427,422
$350,503
$350,503
$316,636
$202,599 Premium received on sale of common stock.............
31,908 126,572 15,690 76,919 33,867 40,840 Other paid-in capital..............
(3)
(8)
(3)
(2)
Balance at December 31
$ 601,578
$ 569,673
$ 443,109
$427,422
$350,503
$350,503
$243,437 (a) In 1978, pursuant to a FERC order, an operating reserve relating to certain federally-licensed hydroelectric projects was transferred to Earnings Reinvested in the Business and became an appropriation thereof.
(b) On December 31, 1974, the unamortized balance of Capital Stock Expense, $2,136,000, was transferred to Earnings Reinvested in the Business since it was the Company's intention to charge Earnings Reinvested in the Business directly for Capital Stock Expense incurred in future periods. In 1974 and prior years, Capital Stock Expense was amortized to income over a five-year period from dates incurred.
(c) Includes undistributed earnings of unconsolidated subsidiaries of $10,753,000 at December 31, 1979.
13 System Rate Base (a)
(Thousands of Dollars) 1979 1978 1977 1976 1975 1974 1969 FIXED CAPITAL:
Plant in service(b)............$5,355,301
$5,080,680
$4,796,029
$4,502,240
$4,364,828
$4,161,500
$2,889,819 Construction work in progress(c) 176,732 139,537 152,309 161,089 178,143 201,967 171,770 Total fixed capital............
5,532,033 5,220,217 4,948,338 4,663,329 4,542,971 4,363,467 3,061,589 ADJUSTMENTS(b) (d)............
(32,723)
(29,691)
(24,664)
(17,855)
(16,192)
(15,559)
(59,877)
WORKING CAPITAL...............
313,424 388,255 311,331 352,682 416,387 344,552 84,661 RESERVES:
Depreciation(b)
..............(1,597,469)
(1,446,570)
(1,317,901)
(1,200,839)
(1,100,958)
(1,006,392)
(619,993)
Accumulated deferred income taxes.....................
(27,621)
(27,320)
(27,461)
(27,510)
(28,606)
(30,743)
(41,412)
Other.......................
(12,737)
(12,661)
(13,571)
(18,913)
(15,083)
(16,744)
(13,700)
Total reserves................(1,637,827)
(1,486,551)
(1,358,933)
(1,247,262)
(1,144,647)
(1,053,879)
(675,105)
SYSTEM RATE BASE...
$4,174,907
$4,092,230
$3,876,072
$3,750,894
$3,798,519
$3,638,581
$2,411,268 (a) Weighted average depreciated book costs. Calculations are in accordance with CPUC rate procedures.
(b) 1974 reflects the disposition of Contributions in Aid of Construction to Plant in Service and Depreciation Reserve in compliance with FERC orders.
(c) That portion not included in allowance for funds used during construction base.
(d) Primarily Contributions in Aid of Construction prior to 1974.
10
14 Statements of December 31, (Thousands of Dollars)
December 31, Long-term Debt 1979 1978 1979 1978 FIRST AND REFUNDING MORTGAGE BONDS:
FIRST MORTGAGE BONDS (CALECTRIC):
Series F, Due 1979 (3%)....
30,000 2
% Series, Due 1980.......$
6,000 6,000 Series G, Due 1981 (35/%)
40,000 40,000 31/% Series, Due 1984 8,000 8,000 Series H, Due 1982 (4
%)..
37,500 37,500 35/s% Series, Due 1985 6,000 6,000 Series I, Due 1982 (4% % )..
40,000 40,000 Series J, Due 1982 (4/ %)
40,000 40,000 4 /% Series, Due 1986 8,000 8,000 Series K, Due 1983 (45/ %)..
50,000 50,000 Series L, Due 1985 (5%)
30,000 30,000 4 /%
Series, Due 1988 12,000 12,000 Series M, Due 1985 (43/s %).
60,000 60,000 51/8%
Series, Due 1990 12,000 12,000 Series N, Due 1986 (4
%)
30,000 30,000 5%
Series, Due 1991 8,000 8,000 Series 0, Due 1987 (4
% )
40,000 40,000 Series P, Due 1987 (4 / %)
50,000 50,000 Series Q, Due 1988 (43/8 %)
60,000 60,000 Series R, Due 1989 (43/ %)
60,000 60,000 C
re Debentures, Series S, Due 1990 (42 %)
60,000 60,000 Series T, Due 1991 (5
%)
75,000 75,000 Promissory Notes (5 Series U, Due 1991 (6s%)
80,000 80,000 Due 1979................
5,301 Series V, Due 1992 (58 % )
80,000 80,000 Series W, Due 1993 (63/%)
100,000 100,000 Series X, Due 1994 (7V%)
75,000 75,000 Due 1981 4,932 4,932 Series Y, Due 1994 (81/8%)
100,000 100,000 Due 1982 4,635 4,635 Series Z, Due 1995 (7V %)
100,000 100,000 Due 1983 4,220 4,220 Series AA, Due 1996 (8%)....
100,000 100,000 Series BB, Due 1997 (73/%)
125,000 125,000 Series CC, Due 1999 (8%).
100,000 100,000 14,217 17,953 Series DDP, Due 1999 (7%)
15,030 15,030 Series EE, Due 1981 (9%)....
100,000 100,000 rt-tedebtcexpec ob Series FF, Due 2000 (8/
%)
150,000 150,000 refinanced
.commercial Series GG, Due 2001 (878 %)
125,000 125,000 Series HH, Due 2002 (8 /%)
125,000 125,000 Principal amounts outstanding 2,832,649 2,511,385 Series II, Due 1984 (7
%)
75,000 75,000 Current maturities of long-term Series JJ, Due 2003 (95/ %)
200,000 200,000 debt..........
(84,544)
(33,737)
Series KK, Due 2004 (9.95%)
105,000 Series LL, Due 1987 (95/s %).
Series MM, Due 2004 (11%%)
200,000
-(discount)
-net (1,898)
(174)
$2,627,530 2,352,530 Total long-term debt.....
$2,746,207
$2,477,474 15 Detail of Utility Plant
(
h uad fD las 1979 1978 1977 1976 1975 1974 1969 Production:
Steam............ $1,340,840
$1,323,603
$1,302,084
$1,288,890
$1,279,292
$1,248,299
$ 835,749 Nuclear..
156,027 145,565 133,516 78,532 71,375 69,051 67,568 Hydro...
216,809 215,647 215,523 214,744 213,897 213,873 213,554 Other
.354,680 350,002 201,088 146,236 60,721 62,650 42,704 Total production...............
2,068,356 2,034,817 1,852,211 1,728,402 1,62_,285
-1,5-93,873 1,1j5-9, 57 5 Transmission....
V.
1,186,035 1,164,523 1,127,702 1,079,476 1,059,302 1,018,838 651,323 Distribution
- 5.
2,069,431 1,930,266 1,820,103 1,727,394 1,648,550 1,560,731 1,167,092 General...............
146,706 139,258 130,863 125,515 120,608 119,219 62,871 Plant held for future use and miscellaneous..........D...u26,184 28,489 29,341 28,486 27,628 21,087 6,430 Experimental electric plant unclassified..D................ue107 217 699 5,474 5,490 3,398 Gas and water (Catalina)..........D6,165 6,176 3,969 3,786 3,212 3,431 3,393 Utility plant at original cost less contributions...............D5,502,984 5,303,746 4,964,888 4,698,533 4,490,075 4,320,577 3,050,684 Less -
accumulated provision for depreciation..................p1,676,148 1,519,174 1,383,009 1,258,327 1,149,311 1,051,024 649,702 Net utility plant..$3,826,836
$3,784,572 3,581,879
$3,440,206
$3,340,764
$3,269,553
$2,400,982 11
16 Statements of Capital Stock December 31, 1979 (Thousands of Dollars)
Shares Redemption December 31, Outstanding Price Per Share 1979 1978 PREFERRED STOCK -
Subject to Mandatory Redemption Requirements:
$100 Cumulative Preferred(a):
7.325% Series............
750,000
$110.00
$ 75,000
$ 75,000 7.80% Series..
600,000 110.00 60,000 60,000 8.54% Series...
750,000 108.54 75,000 8.70% Series A..........................
525,000 110.00 52,500
$262,500
$135,000 Preference(b) -
7.375% Series.................
2,480,000
$ 26.25
$ 62,000
$ 62,000 PREFERRED STOCK -
Other:
Original Preferred -
5%, prior, cumulative, partici pating, not redeemable, authorized 480,000 shares, par value $8/ per share...................
480,000
$ 4,000
$ 4,000 Cumulative Preferred -
authorized 24,000,000 shares, par value $25 per share:
4.08% Series.............................
1,000,000
$ 25.50
$ 25,000
$ 25,000 4.24% Series 1,200,000 25.80 30,000 30,000 4.32% Series 1,653,429 28.75 41,336 41,336 4.78% Series 1,296,769 25.80 32,419 32,419 5.80% Series 2,200,000 25.65 55,000 55,000 8.85% Series 2,000,000 26.50 50,000 50,000 9.20% Series 2,000,000 27.25 50,000 50,000
$100 Cumulative Preferred(a):
7.58% Series 750,000 105.00 75,000 75,000 8.70% Series 500,000 111.00 50,000 50,000 8.96% Series.......
500,000 111.00 50,000 50,000
$458,755
$458,755 Preference -
5.20% Convertible Series(b)........
1,082,680
$ 25.00
$ 27,067
$ 40,895
$100 Preference(c)
COMMON STOCK -Authorized 90,000,000 shares, par value $81 per share, including additional stated capital 64,894,936
$577,259
$547,166 (a) Authorized 6,000,000 shares, par value $100 per share.
(b) Authorized 10,000,000 shares, par value $25 per share.
(c) Authorized 2,000,000 shares, par value $100 per share.
17 Capitalization and Plant Ratios 1979 1978 1977 1976 1975 1974 1969 CAPITALIZATION RATIOS:
Long-term debt:
Bonds 45.8%
46.0%
46.6%
46.7%
48.6%
48.1%
51.6%
Debentures...............
1.3 1.4 1.6 1.7 1.8 1.9 2.8 Other 1.1 0.4 0.4 0.5 0.6 0.4 48.2 47.8 48.6 48.9 51.0 50.4 54.4 Preferred stock 12.3 11.3 12.3 12.2 13.0 12.6 7.0 Preference stock...........
1.5 2.0 2.4 1.7 1.8 1.9 2.8 Common equity.............
38.0 38.9 36.7 37.2 34.2 35.1 35.8 Total...................
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
PLANT RATIOS:
Gross utility plant to(a):
Operating revenues........
3.0 2.9 3.0 3.1 3.1 3.5 5.4 Kilowatts of system peak....
$608.0
$567.7
$550.5
$510.6
$505.0
$476.8
$443.6 Net utility plant to:
Operating revenues........
1.5 1.6 1.7 1.9 2.0 2.4 3.7 Kilowatts of system peak....
$307.0
$315.5
$318.5
$310.5
$327.8
$327.1
$307.7 Accumulated depreciation as a percent of gross utility plant(a).................
22.1%
22.3%
22.3%
22.2%
22.3%
22.1%
18.8%
(a) Gross Utility Plant consists of Utility Plant at Original Cost plus Construction Work in Progress and Nuclear Fuel at Amortized Cost.
12
18 Operating Statistics (Summer Effective Rating)
Year Ended December 31, 1979 1978 1977 1976 1975 1974 1969 PLANT CAPACITY (KW):
Thermal--Oil and gas.......
10,418,800 10,310,800 9,929,200 9,663,200 9,381,975 9,382,175 7,838,925 Coal.............
1,652,800 1,652,800 1,652,800 1,652,800 1,652,800 1,652,800 362,000 Nuclear.........
348,800 348,800 348,800 344,000 344,000 344,000 344,000 12,420,400 12,312,400 11,930,800 11,660,000 11,378,775 11,378,975 8,544,925 Hydro -
Company plants _....
842,320 842,320 842,320 842,320 842,320 842,320 842,320 Firm purchases..............
1,669,503 1,650,503 1,667,003 1,667,003 1,539,618 1,273,554 851,382 Total..................
14,932,223 14,805,223 14,440,123 14,169,323 13,760,713 13,494,849 10,238,627 PLANT CAPACITY -
PERCENT:
Thermal-Oil and gas...
70%
70%
69%
68%
68%
70%
76%
Coal............
11 11 11 12 12 12 4
-Nuclear 2
2 2
2 3
3 3
83 83 82 82 83 85 83 Hydro -
Company plants...
6 6
6 6
6 6
8 Firm purchases 11 11 12 12 11 9
9 Total.................
100%
100%
100%
100%
100%
100%
100%
GENERATION (000) (KWI.):
Thermal -
Oil..............
29,552,810 27,368,686 35,701,855 27,706,928 25,625,070 21,311,764 6,196,747
-- Gas.............
15,035,094 11,186,731 9,218,434 6,471,437 7,132,123 9,157,867 27,896,064
-- Coal............
7,136,144 6,500,969 8,642,291 8,533,165 7,548,223 8,504,685 459,649 Nuclear.........
2,665,312 2,127,008 1,855,304 1,959,489 2,574,296 2,495,519 2,083,601 54,389,360 47,183,394 55,417,884 44,671,019 42,879,712 41,469,835 36,636,061 Hydro -
Company plants.....
5,009,320 5,887,687 1,509,058 2,550,415 4,732,200 5,514,446 5,905,893 Purchased(a)...............
6,818,230 10,806,035 6,417,764 12,206,539 8,667,319 8,121,707 3,802,891 Total............
66,216,910 63,877,116 63,344,706 59,427,973 56,279,231 55,105,988 46,344,845 GENERATION -
PERCENT:
Thermal-Oil..............
44%
43%
56%
47%
45%
39%
13%
--G as.............
23 18 15 11 13 17 60
-- Coal............
11 10 14 14 13 15 1
-Nuclear 4
3 3
3 5
4 4
82 74 88 75 76 75 78 Hydro -
Company plants.....
8 9
2 4
8 10 13 Purchased(a)...
1.....
10 17 10 21 16 15 9
Total...............
100%
100%
100%
100%
100%
100%
100%
MAIN SYSTEM PEAK (Kw) 12,464,000 11,997,000 11,247,000 11,081,000 10,193,000 9,997,000 7,804,000 ANNUAL MAIN SYSTEM LOAD FACTOR 57.1%
57.1%
58.8%
57.8%
60.3%
61.0%
66.4%
AVERAGE HEAT RATE (BTU per net KWH)...........
10,200 10,241 10,016 10,177 10,132 10,232 9,787 (a) Including Hoover and net interchange.
13
19 Existing Generation Capacity Resources As of December 31, 1979 (Summer Effective Rating)
Capacity Number Capacity Utilization Capacity Station of Units (Megawatts)
Factor Station (Megawatts)
THERMAL GENERATION HYDRO GENERATION Oil and Gas Alamitos.........
6 1,950.0 66%
Northern Division 690.0 Cool Water........4 628.0 31 Southern Division........
100.1 El Segundo........
4 1,020.0 55 Bishop Division..................
52.2 Etiwanda 4
904.0 64Total Hydro Generation 842.3 Highgrove.....
4 154.0 9
T y
n n
Huntington Beach 4
870.0 56 Total Company Generation 13,262.7 Long Beach........4 686.0 13 Mandalay........
2 430.0 70 FIRM PURCHASES Ormond Beach...
2 1,500.0 48 Hoover............
350.0 Redondo......
8 1,602.0 47 San Bernardino...
2 126.0 75 BPA Exchange...................
550.0 Combustion Turbine 7
517.6 3
Navajo Project...................
327.5 Axis............
1 25.0 45Oroville-Thermalito 340.0 Pebbly Beach.....
5 6.2 27 Subtotal 10,418.8 49 Parker-Davis Project USBR Exchange 18.5 Coal PGE Assignment.................
100.0 Four Corners.....
2 768.0(a) 53 Sale to Arizona Power Pooling Assoc.
(16.5)
Mohave...........2 884.8(b) 46 Total Purchases.
1,669.5 Subtotal 1,652.8 Total Generation Capacity Resources 14,932.2 Nuclear San Onofre..........1 348.8(c) 87 (a) Represents the Company's 48% share of 1,600 mw.
Total Thermal (b) Represents the Company's 56% share of 1,580 mw.
Generation 12,420.4 50 (c) Represents the Company's 80% share of 436 mw.
20 Projected Generating Resource Additions Total Capacity Scheduled Number Percent (Megawatts-SCE Operating of Units Complete Fuel Type Share Only)
Date Under Construction Big Creek 3 #5...................
1 87%
Hydro..............
31 1980 Geothermal -
Brawley............
1 60 Geothermal........
Demonstration Project 1980 Wind...........................
2 8
Wind.....
Demonstration Projects 1980 Solar One......................
1 3
Solar...............
Demonstration Project 1981 San Onofre 2 & 3................
2 76 Nuclear.............
1,760 1981,83 Palo Verde 1, 2 & 3...............
3 30 Nuclear.............
579 1983,84, 86 Cholla 4(a).......................
I 65 Coal Purchase.......
347 1984 Planned Cogeneration...................
................Customer Generation.
60 1981-1989 California Geothermal.............
2 Geothermal 54 1982 California Department of Water Resources(a).........
Hydro Exchange......
510(b) 1983 Mexico Geothermal(a).........
Geothermal Purchase..
330 1984-1986 Coal Gasification.................
1...............
Coal...............
Demonstration Project 1984 Combustion Turbine...............
20...............
Oil.................
Up to 1,290 1985-1987 Allen-Warner Valley Energy System..
6 Coal................
1,045 1985-1989 Balsam M eadow..................
1 Hydro.....
200 1986 Dinkey Creek(a).................
Hydro Purchase 120 1986 California Coal 1, 2, 3.............
3 Coal................
750 1988,89,90 (a) Purchased or exchange power. No capital required by Southern California Edison Company.
(b) Replaces existing contract for 340 mw which terminates in 1983.
14
21 Regulation CALIFORNIA PUBLIC UTILITIES COMMISSION The Company is subject to regulation by the California Public decision allowing a 14.1% return on equity for both gas and Utilities Commission (CPUC) which has the authority, among electric service. However, the return on equity for electric other things, to establish retail rates and to regulate security service was discounted by 0.2% because the Commission felt issues, accounting practices and depreciation. The California that PG&E lacked aggressiveness in pursuing cogeneration Constitution provides for a commission comprised of five activities.
members who are appointed for six-year terms by the Governor, subject to Senate confirmation.OnJnay2,18,teCU grtdthCopy'pti subjct t Seate onfrmaton.tion to modify the October 23, 1979 Energy Cost Adjustment In setting rates, the CPUC utilizes a forward test year for Clause (ECAC) decision, thus accelerating the collection of establishing operating revenues and expenses, and average approximately $81 million in ECAC revenues during the period rate base. Original plant cost, less depreciation, is used to February 3 through April 30, 1980. The CPUC also issued an determine the test year average rate base. Year-end embedded interim order which provides for adjustments in rates three senior securities capital cost is utilized in establishing the times a year rather than twice yearly. Each adjustment will be allowable rate of return. In addition, the CPUC utilizes a based on estimates of fuel prices and balancing account amounts procedure to reduce regulatory lag in order to process decisions at the adjustment date as well as forecasted energy mix and within one year from the filing of the application.
sales estimates, in contrast to using historical data. In addition, the period over which amounts in the balancing account are to Recent rate case decisions have reflected higher rates of return.
be amortized will be determined at the time of each adjustment, In December 1978, both Edison and Southern California Gas rather than using a standard 12-month period. Also, the Coi Company received increases based on equity returns of 13.49%.
mission modified the rate for accruing interest on undercollec Mid-year 1979, San Diego Gas & Electric Company received tions or overcollections in the balancing account from a fixed a decision which allowed a return on equity of 14.5%. In rate of 7% to a variable rate equal to the Federal Reserve Bank December 1979, Pacific Gas & Electric Company received a three-month Prime Commercial Paper rate.
Term Year First Expires The present CPUC commissioners are:
Age Appointed January 1 John Bryson, President Democrat, Lawyer, recent Chairman of the California State Water Resources Board, former Vice Chair man of the Oregon Energy Siting Council 36 1979 1985 Claire Dedrick Democrat, former Secretary of the State Resources Agency
$81 million in 50 1977 1981 Richard Gravelle Independent, Lawyer, former CPUC General Counsel 53 1977 1983 Leonard Grimes Democrat, recent Secretary of the State and Con sumer Services Agency, former Vice President of Golden State Mutual Life Insurance Company tme56 1979 1985 Vernon Sturgeon Republican, former State Senator and Legislative Secretary to Governor Ronald Reagan............
63 1969 1981 CPUC address: State Building, San Francisco, California 94102
SUMMARY
OF RECENT CPUC GENERAL RATE INCREASES Decision Additional Rate o Return Authorized Application Test Effective Revenue ctionsinhebalancigaccountromafixe Date Year Date (Millions)
Rate Base Common Equity 07/01/68 1969 09/10/69
$ 46.7 7.35%
11.79%
12/01/70 1972 07/15/71 105.5 7.90 11.90 08/01/72 1973 10/10/73 89.1 8.19 12.25 06/07/74 Partial 1976 12/31/75 79.6 8.70 12.25 Final 01/13/77 122.5 (a) 8.80 12.63 10/07/77 Partial 1979 07/26/78 102.1 8.98 12.63 Final 01/01/79 124.0(a) 9.60 13.49 (a) Includes revenues rom the partial decision, but does not reflect concurrent CPUC decisions related to energy costs.
15
SUMMARY
OF ECAC INCREASES Decision Additional Application Effective Revenue Date Date (Millions) 10/19/76 01/13/77
$ (44.5) (a) 04/01/77 06/08/77 82.8 06/22/77 09/13/77 136.8 09/21/77 01/17/78 146.7 04/01/78 07/26/78 (102.0) (a) 10/02/78 07/03/79 69.6 03/23/79 11/01/79 431.6 08/17/79 12/21/79 02/03/80 81.0 (b)
(a) The reduction in ECAC revenue was offset by an increase in base rates of the same amount, producing no net change in rates.
(b) Represents accelerated collection during the period February 3 through April 30, 1980 of revenues authorized in the November 1, 1979 decision.
CALIFORNIA ENERGY COMMISSION The California Energy Commission (CEC) is the sole state In addition to these three main functions, the CEC also agency with the authority to license power plants in California.
coordinates a variety of energy research and development One of the primary responsibilities of the CEC is to develop projects, sets appliance and building efficiency standards, and statewide and utility service area electricity demand forecasts maintains a statewide plan of action in case of any energy covering five, twelve, and twenty-year time horizons. Based on shortage.
the forecasts, the CEC determines the need for additional power plants. If additional plants are needed, the CEC also determines The cosin-consits ffie membeate byrthe the locations of the plants from among the alternatives proposed by the applicants.
Term Year First Expires The present CEC commissions are:
Age Appointed January Russell L. Schweickart, Scientist member, assistant to Governor Brown for Chairman Science and Technology, Astronaut on Apollo 9 44 1979 1985 Ronald D. Doctor Economist member, Rand Energy Analyst.........
40 1975 1982 C. Suzanne Reed Environmentalist member, Project Director on LNG and offshore oil projects.........
31 1977 1984 Emilio E. Varanini, III Attorney member, legislative consultant to Assembly Resources, Land Use and Energy Committee.....
39 1976 1983 James A. Walker Public member, former Executive Director of CEC.
34 1979 1981 CEC address: 1111 Howe Avenue, Sacramento, California 95825 OTHER REGULATION Approximately 7% of the Company's revenues, and other in interstate commerce.
Edison also is subject to various matters including accounting, depreciation and the acquisition governmental licensing requirements, to Securities and Ex and disposition of certain property, are subject to regulation change Commission filing and financial disclosure requirements, by the Federal Energy Regulatory Commission. This includes and to certain other federal, state and local laws and regulations, licensing of hydroelectric projects as well as company involve-including those related to nuclear energy and nuclear plant con ment in the transmission and sale for resale of electric energy struction, environmental protection, fuel supplies and land use.
16
22 Projections -
Consumption, Demand, Capital Requirements and Generation Mix The data shown below include projections which are used for internal planning purposes and about which we have received numerous inquiries. They are subject to frequent changes and, as the underlying assumptions and even the methods of forecasting are changed, such changes may produce material variations in the information shown.
Compound Annual Recorded Estimated (as of February 22, 1980)
Growth Rate 1979 1980 1981 1982 1983 1984 1979-84 CONSUMPTION AND DEMAND DATA Population at year end (including areas served resale and military) (000)...............................
8,310 8,469 8,622 8,771 8,915 9,054 1.7%
Customers at year end (000).......
3,082 3,167 3,247 3,321 3,390 3,459 2.3 Consumption (million kwh)..
59,518 60,000 61,300 62,700 64,200 65,900 2.1 Percent change from prior year................
4.4%
0.8%
2.2%
2.3%
2.4%
2.6%
Net main system summer peak demand (mw).........
12,464 12,680 13,000 13,340 13,710 14,130 2.5 Percent change from prior year...................
3.9%
1.7%
2.5%
2.6%
2.8%
3.1%
Area system summer peak (includes MWD) (mw).....
12,662 12,915 13,274 13,670 14,055 14,475 2.7 Percent change from prior year............
4.1%
2.0%
2.8%
3.0%
2.8%
3.0%
System generation capacity at peak (mw)............
13,127 13,119 13,249 14,138 15,214 15,421 3.3 Net purchased power at peak (mw) (a)...............
1,944 1,884 2,114 1,884 2,027 2,004 0.6 Total Area capacity at peak (mw) (b)..............
15,071 15,003 15,363 16,022 17,241 17,425 2.9 Installed reserve margin at peak....................
19%
16%
16%
17%
23%
20%
CAPITAL REQUIREMENTS (millions)
Total Construction expenditures(c) (d) 1980-84 Production........
$ 540
$ 621
$ 731
$ 545
$ 384
$ 519
$2,800 Transmission.......
43 67 95 56 111 157 486 Distribution...............................
179 180 169 178 188 187 902 O ther...................
31 27 15 10 12 20 84 Subtotal............................
793 895 1,010 789 695 883 4,272 Less:
Allowance for debt funds used during construction...
27 42 49 34 17 14 156 Allowance for equity funds used during construction..
92 125 163 114 56 46 504 Funds used/required for construction expenditures......
674 728 798 641 622 823 3,612 Maturing securities issues.......................
34 85 144 121 58 88 496 Total capital requirements........................
$ 708
$ 813 $ 942
$ 762
$ 680
$ 911
$4,108 OTHER SIGNIFICANT FORECAST ITEMS (millions)
Effective annual ADC rate (net of tax method)........
7.76%
7.82%
8.50%
8.75%
9.00%
9.25%
Tax reductions from liberalized depreciation (flowed through).....................................
7 6
21 40 35 $
35 Investment tax credit (flowed-through)...............
32 21 18 21 21 27 Deferred investment tax credit -
net................
46 28 20 25 25 33 Depreciation expense (book) (e)...................
179 192 224 272 306 327 GENERATION MIX Oil...
44%
39%
46%
50%
45%
45%
Gas........
23 28 16 7
4 4
C oal...........................................
11 11 12 13 13 12 N uclear................
4 3
5 10 18 20 Other (includes geothermal, cogeneration, wind, and solar) 1 1
Hydro -
Company plants.........................
8 9
7 7
6 6
Purchased (including Hoover and net interchange).....
10 10 14 13 13 12 Total energy requirement -
percent...........
100%
100%
100%
100%
100%
100%
Total energy requirement -
kwh (millions)..........
66,217 66,300 67,400 69,400 71,700 74,200 (a) Includes Metropolitan Water District (MWD) hydro capacity which is integrated into Edison's planning area.
(b) Rated capacity for 1980-84 reduced for "dry year hydro" conditions.
(c) Nuclear fuel reload requirements were provided through leasing arrangements in 1979 and are expected to continue through at least 1984.
(d) Construction expenditure projections are escalated at 9% for 1980-81 and 8% thereafter.
(e) The 1979 composite rate was 3.5%, which is the composite rate approved by the CPUC for 1979, based on a 1979 test-year.
17
Board of Directors Jack K. Horton Chairman of the Board and Chief Executive Officer Roy A. Anderson Chairman of the Board and Chief Executive Officer, Lockheed Corporation, Burbank, California Norman Barker, Jr.
Chairman of the Board and Chief Executive Officer, United California Bank, Los Angeles, California Edward W. Carter Chairman of the Board, Carter Hawley Hale Stores, Inc., Los Angeles, California William B. Coberly, Jr.
President, California Cotton Oil Corporation (Investments and Real Estate Holdings),
Los Angeles, California Terrell C. Drinkwater Retired Airline Executive, Los Angeles, California Walter B. Gerken Chairman of the Board and Chief Executive Officer, Pacific Mutual Life Insurance Company, Newport Beach, California William R. Gould President Joan C. Hanley General Partner and Manager, Miramonte Vineyards, Rancho California, California Frederick G. Larkin, Jr.
Chairman of the Executive Committee, Security Pacific National Bank, Los Angeles, Cailfornia T. M. McDaniel, Jr.
Corporate Director and Consultant (Retired President, Southern California Edison Company),
San Marino, California John V. Newman President, CBS-Sony California, Inc. (Citrus Production), Oxnard, California Gerald H. Phipps President, Gerald H. Phipps, Inc., General Contractors (Building Construction),
Denver, Colorado Henry T. Segerstrom Managing General Partner, C. J. Segerstrom & Sons (Real Estate Development), Costa Mesa, California E. L. Shannon, Jr.
Chairman of the Board and Chief Executive Officer, Santa Fe International Corporation (Oil Service, Petroleum Exploration and Production), Orange, California H. Russell Smith Chairman of the Board, A very International (Manufacturer of Self-Adhesive Products), San Marino, California Richard R. Von Hagen President, Lloyd Corporation, Ltd.
(Real Estate Development and Production of Oil and Gas), Beverly Hills, California Executive Officers Jack K. Horton Chairman of the Board and Chief Executive Officer William R. Gould President Howard P. Allen Executive Vice President H. Fred Christie Senior Vice President and Chief Financial Officer David J. Fogarty Senior Vice President A. Arenal Vice President (Engineering and Construction)
G. J. Bjorklund Vice President (System Development)
Robert Dietch Vice President (Nuclear Engineering and Operations)
C. E. Hathaway Vice President (Personnel)
Joe T. Head, Jr.
Vice President (Power Supply)
P. L. Martin Vice President (Customer Service)
A. L. Maxwell Vice President and Comptroller Edward A. Myers, Jr.
Vice President (Conservation, Communications and Revenue Services)
L. T. Papay Vice President (Advanced Engineering)
William H. Seaman Vice President (Fuel Supply)
Robert E. Umbaugh Vice President (Administration)
John R. Bury General Counsel Michael L. Noel Treasurer Honor Muller Secretary This Financial and Statistical Report is designed to supplement the Annual Report to Shareholders. It is intended primarily to meet the needs of institutional investors and security analysts in making a more thorough analysis of the Company than would otherwise be possible from the usual reference sources. The Notes to Financial Statements in the Annual Report to Shareholders are applicable to the financial statements presented in this report for the years 1979 and 1978.
This Financial and Statistical Report and the statements and statistics contained herein have been assembled for general informative purposes and are not intended to induce, or for use in connection with, any sale or purchase of securities. Under no circumstances is this report or any part of its contents to be considered a prospectus, or as an offer to sell, or the solicitation of an offer to buy, any securities.
18