ML13326A864
| ML13326A864 | |
| Person / Time | |
|---|---|
| Site: | San Onofre  |
| Issue date: | 05/27/1992 |
| From: | Rosenblum R Southern California Edison Co |
| To: | NRC/IRM |
| Shared Package | |
| ML13326A865 | List: |
| References | |
| NUDOCS 9206010247 | |
| Download: ML13326A864 (13) | |
Text
Southern California Edison Company 23 PARKER STREET IRVINE, CALIFORNIA 92718 R. M. ROSENBLUM TELEPHONE MANAGER OF (714) 454-4505 NUCLEAR REGULATORY AFFAIRS May 27, 1992 U.S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, D. C. 20555 Gentlemen:
Subject:
Docket Nos. 50-206, 50-361, and 50-362 San Onofre Nuclear Generating Station Units 1, 2 and 3 In accordance with the requirements of 10 CFR part 50, Section 50.71(b), enclosed are copies of the Annual Reports for: the Southern California Edison Company (for calendar year 1991); the San Diego Gas and Electric Company (for calendar year 1991); the City of Anaheim (for fiscal year ending June 30, 1991); and the City of Riverside (for fiscal year ending June 30, 1991).
Each report includes the appropriate certified financial statement required by Section 50.71(b).
If you have any questions, please contact me.
Very truly yours, Enclosures cc: J. B. Martin, Regional Administrator, NRC Region V C. W. Caldwell, NRC Senior Resident Inspector, San Onofre Units 1, 2 & 3 George Kalman, NRC Senior Project Manager, San Onofre Unit 1 J. 0. Bradfute, NRC Project Manager, San Onofre Unit 1 M. B. Fields, NRC Project Manager, San Onofre Units 2 & 3 9206010247 920527 PDR ADOCK 05000206 I
City of Anaheim Public Utilities Department Years Erded June 30, 1991 and 1990 Electric Utility Fund Audited Financial Statements foy d6ree
City of Anaheim Electric Utility Fund Balance Sheets June 30 1991 1990 (In thousards)
Assets Utility plant:
Production S209,797
$175,529 Transmission 15,357 12,370 Distribution 106,286 103,685 General 12,198 11,581 343,638 303,165 Less -
accumulated depreciation (84,136)
(74,441) 259,502 228,724 Construction work in progress 21,239 27,919 Nuclear fuel, at amortized cost 7,519 8,543 288,260 265,186 Restricted assets:
Cash and investments 112,286 81,840 Other 1,168 446 113,454 82,286 Current assets:
Cash and investments 35,138 29,289 Customer and other accounts receivable, net 21,364 32,695 Prepaid purchased power 2,719 2,107 Accrued interest receivable 1,867 1,684 Materials and supplies, at average cost 3,243 3,492 64,331 69,267 Other assets:
Unamortized bond refunding costs 20,839 23,026 Unamortized project costs 6,344 5,760 Unamortized debt issuance costs 2,387 1,961 2
7 30,747 Total assets
$495,615
$447,486 fony four
June 30 1991 1990 Equity, liabilities and other credits (In ousands)
Equity:
Beginning fund balance contributed by the City S 14,629
$ 14,629 Retained earnings 1..L21 Total equity 126,550 106,890 Long-term debt, less current portion
- 2752, Total capitalization 4635 359,8 Current liabilities (payable from restricted assets):
Current portion of long-term debt 5,465 5,586 Accrued interest 3,514 3,681 Accounts payable 4,033 159 Tax-exempt commercial paper 2
50 Current liabilities (payable from current assets):
Current portion of long-term debt 1,792 1,837 Accounts payable and accrued expenses 5,686 9,100 Customer deposits 978 1,070 Power cost adjustment balancing account Rate stabilization account 1,034 Test energy billings 3,635 Surplus energy billing reserve Intermountain Power Agency refund account Total current liabilities Other liabilities and deferred credits:
Contributions in aid of construction 22,734 21,087 Decommissioning reserve 6,011 4,841 Commitments and contingencies_
Total equity, liabilities and other credits 495,61 5
$447486 See accompanying Notes to Fmiancial Statements.
fony fw~e
City of Anaheim Electric Utility Fund Statements of Income lune 30 1991 1990 Operating revenues:
Sale of electricity S206,144 S195,869 Provision for power cost adjustment (9,090)
Provision for rate stabilization 5,115 4,952 Other operating revenues 871 798 Total operating revenues 212,130 192,529 Operating expenses:
Cost of purchased power 127,730 124,439 Fuel used for generation 3,941 3,549 Other operations 22,094 20,673 Maintenance 12,175 11,534 Depreciation 10,028 9,113 Amortization of cancelled project costs Total operating expenses Operating income Other income (expense):
Interest income 7,41 7,565 Interest expense 06,4W (17,072)
(8,753)
(9,507)
Net income
$212,10 S 192J See accompanying Notes wc Financial Statements.
Statements of Changes in Retained Earnings June 30 1991 1990 (in thsousands)
Balance at beginning of year
$ 92,261
$ 86,692 Net income for the year 27,409 13,506 Transfer to the General Fund of the City (7,749)
(7,937)
Balance at end of year
$ 111,921
$ 92,261 See accompanying Notes to Financial Statements.
forty six
City of Anaheim Electric Utility Fund Statements of Cash Flows June 30 1991 19 (in udiwsads)
Operating activities:
Operating income S 36,162 S 23,013 Adjustments to reconcile operating income to net cash provided by operations:
Depreciation 10,028 9,113 Amortization of nuclear fuel 3,459 3,115 Amortization of cancelled project costs 208 Amortization of debt costs 3,336 3265 Increase in decommissioning reserve 1,170 1,044 Changes in current assets and liabilities:
Customer and other accounts receivable, net 10,691 (12,956)
Prepaid purchased power (612)
(639)
Materials and supplies 249 (675)
Accounts payable and accrued expenses 460 1,179 Customer deposits (92)
(70)
Power cost adjustment balancing account 8,869 Rate stabilization account 1,034 (4.869)
Intermountain Power Agency refund account (8,855)
(8,460)
Test energy billings (3,635) 320 Surplus energy billing reserve (2,159)
Total adjustments 17,233 (2,715)
Net cash provided by operations Capital and related financing activities:
New debt 45,039 42,557 Reduction of long-term debt (7,422)
(7,280)
Interest paid (16,661)
(17,147)
Payments to the General Fund of the City (7,749)
(7,937)
Contributions in aid of construction 476 1,031 Debt issuance and discount costs (2,285)
(596)
Net cash provided by (used in). financing activities 11,398 10,628 Investing activities:
Capital expenditures (32,955)
(31.385)
Interest received 7,476 7,914 Nuclear fuel expenditures (2,435)
(2,445)
Project costs (584)
Net cash used in investing activities (28.49 (25,946)
Increase in cash and investments 36,295 4,980 Cash and investments at beginning of year 111,9 10614 Cash and investments at end of year
$147,424
$111,129 Schedule of honcash financing and investing activities:
Contributions in aid of construction 1,620 995 See accompaniyinsg Note to Financial Statemnts.
forty s~e
City of Anaheim Electric Utility Fund Notes to Financial Statements Note 1 Sanrry of Sigrtificm Cash and investments On January 28, 1986, awholesak rate Accounting Policies The City pools idle cash from all funds e
d policy (Policy) which included Basis of accounting for the purpose of increasing income establishing a Rate Stabilization Account Thethrough investment activities. Invest-(RSA) was adopted as part of the Electric TheEletri Utlit Fud (he lecric ments are carried at cost, which approxi-Utilitys Rates, Rules and Regulations.
Utility) of the City of Anaheim (the City) mates market value. Interest income on The Policy provides for establishment of a was established June 30, 1971, at which investments is allocated to the various rate, in cents per kilowatt-hour of sales, by time the portion of the City's General funds of the City on the basis of average which funds are transferred from the RSA Fund equity relating to electric system daily cash and investment balances.
to the Electric Utility Revenue Fund. This operations was transferred to Electric For purposes of the Statements of Cash transfer is madeon a monthly basis.
Utility equity. The financial statements of Flows, the'Electric Utility considers cash Nuclear fuel the Electric Utility are presented in con-and investments, including restricted The Electric Utility amortizes the cost formity with generally accepted account-amounts, to be cash equivalents. Cash of nuclear fuel to expense using the "as ing principles and accounting principles equivalents are cash and highly liquid burned" method. In accordance with the and methods prescribed by the Federal investments which are included in the Nuclear Waste Disposal Act of 1982, the Energy Regulatory Commission (FERC).
Electric Utility's share of the Citys pool Electric Utility is charged a fee for the The Electric Utility is not subject to the and in accounts held by the fiscal agents.
regulations of the FERC.
Utility plant and depreciation Revenue recognition mill per kwh on the Electric Utility's share To provide a better matching of costs of electricity generated by the San Onofre The cost of additions to utility plant and revenues, effective with the fiscal year Nuclear Generating Station, Units 2 and and of replacement of retired units is capi-ended June 30,1987, the Electric Utility 3 (SONGS). The Electric Utility pays the talized. Utility plant is recorded at cost, or changed its accounting policy of recogniz-fee quarterly to the Southern California in the case of contributed plant, at fair mar-ing revenue to a method which provides Edison Company (Edison) which is acting ket value at the date of the contribution, for the accrual of estimated unbilled as the agent for SONGS participants.
except that assets acquired prior to July 1, revenues for energy sold but not billed Federal regulations also require the Electric 1977 are recorded at appraised historical cost. Cost icldes ltapr aeiriaal at the end of a fiscal period; previously, Utility to provide for the future costs of cost.revenues were recognized when billed to decommissioning SONGS. Decommis cared indirect charges such as engineering, customers. Residential and smaller cor-sioning costs are charged to other operar supervision, construction and transporta-mercial accounts are billed bimonthly and ing expenses and are provided for over the non equipment, retirement plan contribu-all others are billed monthly.
remaining life of the plant.
tions and other fringe benefits; and certain The Electric Utility's Rates, Rules and administrative and general expenses. The Regulations provide for the use of a Power cost of relatively minor replacements is Cost Adjustment (PCA) billing formula included in maintenance expense. The net which, when in use, would be included in book value of assets retired or disposed of, customer billings to reflect variations in net of proceeds, is recorded in accumu-the cost of power to the Electric Utility.
laced depreciation.
The PCA provides for adjustments to Depreciation of utility plant is provided revenues from the sale of electricity for by the straight-line method based on the following estimated service lives of the overeco ltin o derecn properties:
between the Electric Utility's actual Prodctio 30 eam cost of power and the amount billed to Production 30 yeas customers through the billing formula.
Transmission and These over or under collections would be distribution plant 20 to 75 years recorded in the PCA balancing account Other plant and until they are refunded to, or recovered equipment 5 to 50 years from, utility customers.
Effective Ocrobet 1, 1989, the Electric Depreciation on contributed assets is Utility elected to recover all power costs charged directly to Contributions in aid of in base rates and set the PCA at a zero construction, balance. Should substantial changes in power costs occur, the Electric Utio y may seek City Council approval to activate the PCA.
Note 1 Summary of Significmt Note 2 Operwmg Exnes Note 4 Short-Trm Debt Accounting Policies (continued)
Operating expenses shared with the The Electric Utility has outstanding Debt issuance costs Water Utility amounted to S 18,013,000 Revenue Anticipation Notes in the form Debt issuance costs are deferred and and $16,520,000 for the years ended June of short-term tax-exempt commercial 30, 1991 and 1990, respectively, of which paper for the purpose of financing nuclear amortized over the lives of the related
$14,410,000 and $13,217,000 were allo-fuel purchases related to the ownership bond issues on a basis which approximates cated to the Electric Utility interest in SONGS. The balance out the effective interest method.
The shared expenses are allocated to standing at June 30, 1991 and 1990 otaled Bond refunding costs each Utility based upon estimates of the
$20,450,000. The interest rates on this Bond refunding costs are deferred and benefirs each Utility derives from those debt at June 30,1991 ranged between amortized over the lives of the related common expenses.
3.75% and 4.15% with maturities ranging bond issues on a basis which approximates Note 3 Unm ized Pr-*ect Coss from 29 to 54 days. The Electric Utility the effective interest method.
The City plans to participate in various h
bed a $21 mln reolvin Pension plan power generation projects with other All full-time City employees are mem-agencies. Unamortized project costs repre-eenc a t m
ae bers of the State of California Public sent advance payments to participating Employees' Retirement System (PERS).
agencies for preliminary engineering and Note 5 Joindy-Owned Utity Projea The City's policy is to fund all pension environmental impact studies for the The Electric Utility owns a 3.16%
costs accrued; such costs to be funded are related projects.
interest as a tenant in common in SONGS.
determined annually as ofJuly I by the The other participants in Units 2 an 3 PERS' actuary.
are Edison, 75.05%; San Diego Gas &
VacationElecc Company, 20%; and the City of Vacaionand ickpayRiverside, 1.79%. Units 2 and 3 became Vacation and sick pay for all City operational on October 9,1983 and April employees is paid by the General Benefits 1, 1984, respectively. The Electric Utility's and Insurance Fund of the City. The cumulative share of construction costs, General Benefits and Insurance Fund is which amounted to $178,421,000 at June reimbursed through payroll charges to the 30, 1991, was included in Utility plant Electric Utility based on estimates of bene.
at June 30, 1991. The Electric Utility fits to be earned during the year. Vested recorded depreciation related to SONGS vacation and sick pay benefits are accrued of $6,563,000 and $5,822,000 for the in the General Benefits and Insurance Fund years ended June 30, 1991 and 1990, and amounted to $978,000 and $860,000 respectively. The Electric Utility made for the Electric Utility at June 30, 1991 provisions during fiscal year 1991 for and 1990, respectively.
disposal costs of spent nuclear fuel and for Transfers to the General Fund future decommissioning costs (see Note 1) of the City o$482,000 and $1,169,000, respectively.
Article XII of the City Charter provides These costs along with the Electric Utility's that transfers to the General Fund of the share of SONGS operating and mainte City shall not exceed 4% of the gross nance costs have been included in Oer revenue of the prior year. Such transfers ating expenses for fiscal year 1991.
are not in lieu of taxes and are recorded as distributions of retained earnings.
Reclassifications Certain reclassifications have been made to the 1990 financial statements to conform to the 1991 presentation.
foaoyn 5fn
Note 6 Long-Term Debt The Electric Utility is indebted as follows:
June 30 1991 1990 Electric Revenue Bonds, Issue of 1972, TIC 4.9263%, dated April 1, 1972, sold March 28, 1972 in the amount of $8,000,000 at races ranging from 2.0% to 7.0%, maturing serially to July 1, 1992 in annual principal installments ranging from $625,000 to $675,000; total debt service of
$1,337,000 to maturity 1,300,000 1.900,000 Electric Revenue Bonds, Issue of 1976, TIC 6.07%, dated May 1, 1976, sold April 27, 1976 in the amount of $6,000,000 at rates ranging from 5.0% to 8.0%, maturing serially to May 1, 2006 in annual principal installments ranging from $150,000 to $400,000; total debt service of
$6,794,000 to maturity 4,325,000 4,475,000 Electric Revenue Bonds, Issue of 1980, TIC 9.173%, dated October 1, 1980, sold October.10, 1980 in the amount of $84,000,000 at rates of 8.0%, of which (1) $19,250,000 maturing serially from October 1, 1991 through October 1, 1997, (2) $16,650,000 of term bonds maturing October 1, 2001, and (3) $36,875,000 of term bonds maturing October 1, 2007, were advance refunded on November 25, 1986; the remaining bonds matured October 1, 1990.
2,000,000 Electric Revenue Bonds, Issue A of 1983, TIC 9.3051%, dated April 1, 1983, sold April 27, 1983 in the amount of $10,000,000 at rates ranging from 8.0% to 9.0%, of which $900,000 maturing serially October 1, 1995 through 1998 and $8,460,000 of term bonds maturing October 1, 2007 were advance refunded on March 31, 1986; the remaining bonds.mature on October 1, 1993 and October 1, 1994 in annual principal installments of $300,000 and
$340,000, respectively; total debt service of $797,000 to maturity 640,000 640,000 Electric Revenue Bonds, Issue B of 1983, TIC 9.3051%, dated April 1, 1983, sold April 27, 1983 in the amount of $40,000,000 at rates ranging from 8.0% to 9.0%, of which $3,600,000 maturing serially October 1, 1995 through 1998 and $33,840,000 of term bonds maturing October 1, 2007 were advance refunded on March 31, 1986; the remaining bonds mature on October 1, 1993 and October 1, 1994 in annual principal installments of $1,200,000 and
$1,360,000, respectively; total debt service of $3,188,000 to maturity 2,560,000 2,560,000 Electric Revenue Bonds, Issue C of 1983, TIC 9.1023%, dated April 1, 1983, sold April 27, 1983 in the amount of $80,400,000 at rates ranging from 5.25% to 9.0%, of which $5,650,000 maturing serially October 1, 1995 through 1998 and $52,500,000 of term bonds maturing October 1, 2007 were advance refunded on March 31, 1986; the remaining bonds mature serially through October 1, 1994 in annual principal installments ranging from $2,600,000 to
$2,850,000; total debt service of $11,539,000 to maturity 10,000,000 12,400,000 Electric Revenue Bonds, Issue of 1986, TIC 7.006%, dated March 1, 1986, sold March 4, 1986 in the amount of $129,275,000, of which (1) $59,740,000 at rates of 5.25% to 6.9% mature serially through October 1, 2001 in annual principal installments ranging from $1,145,000 to
$8,955,000, (2) $30,665,000 at rates of 5.75% are term bonds maturing October 1, 2004, subject to mandatory redemption from October 1, 2002 to October 1, 2004 in annual principal installments ranging from $9,590,000 to $10,875,000, and (3) $37,885,000 at rates of 5.75% are term bonds maturing October 1, 2007, subject to mandatory redemption from October 1, 2005 to October 1, 2007 in annual principal installments ranging from
$11,550,000 to $13,600,000; total debt service of $208,536,000 to maturity 125,030,000 126,175,000 Electric Revenue Bonds, Second Issue of 1986, TIC 6.7737% dated October 15, 1986, sold November 25, 1986 in the amount of $77,780,000, of which (1) $46,700,000 at rates of 4.3%
to 6.5% mature serially through October 1, 2002 in annual principal installments ranging from
$2,610,000 to $4,960,000, and (2) $30,150,000 at rates of 6.75% are term bonds maturing October 1, 2007, subject to mandatory redemption from October 1, 2003 to October 1, 2007 in annual principal installments ranging from $5,275,000 to $6,815,000; total debt service of
$122,145,000 to maturity 73,790,000 74,860,000
Note 6 Long-Term Debt (continued)
June 30 1991 1990 Electric Revenue Bonds, Issue of 1991, dated and sold May 29, 1991 in the amount of $3,434,000, at rates of 6.50% maturing serially from October 1, 1999 to October 1, 2004 in annual principal installments ranging from $140,500 to $735,000; total debt service of
$5,753,000 to maturity 3,434,000 Total revenue bond debt
$221,079,000
$225,010,000 Note Payable to Internal Service Fund of the City, 8.95%, issued October 13, 1984. in the amount of $1,342,000, semi-annual principal and interest payments ranging from $55,000 to $106,000 through October 31, 2003; total debt service of $1,753,000 to maturity 1,110,000 Electric System Certificates of Participation (Combustion Turbine Peaking Plant), TIC 7.313%,
dated September 15, 1989, sold October 12, 1989 in the amount of $44,336,145. 10 at rates ranging from 6.20% to 7.20% of which (1) $18,730,000 mature serially from October 1, 1992 through October 1, 2000, (2) $5,356,145.10 Capital Appreciation Certificates mature serially from October 1, 2001 through October 1, 2005, (3) $6,000,000'at rates of 7.20% are term certificates maturing October 1, 2009, subject to mandatory redemption from October 1, 2006 to October 1, 2009, in annual principal installments ranging from $1,350,000 to $1,660,000, and (4) $14,250,000 at rates of 6.50% are term certificates maturing October 1, 2011, subject to mandatory redemption from October 1, 2006 to October 1, 2111 in annual principal installments ranging from $1,495,000 to $3,950,000; total debt service of
$85,352,000 to maturity 44,336,000 44,336,000 Electric System Certificates of Participation (Public Utilities Building), TIC 7.15%,
dated November 1, 1990, sold November 12, 1990 in the amount of $41,605,000 at rates ranging from 5.85% to 6.75% of which (1) $4,600,000 mature serially from October 1, 1994 through October 1, 2005, (2) $5,870,000 at rates of 6.75% are term certificates maturing October 1, 2010, subject to mandatory prepayment from October 1, 2006 to October 1, 2010 in annual principal installments ranging from $940,000 to $1,425,000 and(3) $31,135,000 at rates of 6.75% are term certificates maturing October 1, 2022, subject to mandatory prepayment from October 1, 2011 to October 1, 2022 in annual principal installments ranging from
$30,000 to $3,860,000; total debt service of $108,717,000 to maturity 41,605,000 Total other long-term debt 87,051,000 45,505,000 Total long-term debt 308,130,000 270,515,000 Less: current portion 7,257,000 7,423,000 bond discounts 11,108,000 10,400,000
$289,765,000
$252,692,000 Annual debt service requirements at June 30, 1991 to maturity are as follows:
Total All Revenue Bond Debt Other Long-Term Debt Long-Term Fiscal Year Principal, Interest Total Principal Interest Total Debt 1992
$ 7,195,000 $ 13,735,000 $ 20,930,000 $
62,000 $ 5,492,000 $ 5,554,000 $ 26,484,000 1993 7,705,000 13,315,000 21,020,000 1,670,000 5,437,000 7,107,000 28,127,000 1994 7,145,000 12,806,000 20,951,000 1,789,000 5,328,000 7,117,000 28,068,000 1995 8,765,000 12,226,000 20,991,000 1,899,000 5,209,000 7,108,000 28,099,000 1996 9,385,000 11,629,000 21,014,000 2,056,000 5,081,000 7,137,000 28,151,000 Thereafter 179,884,000 75,299,000 255,183,000 79,573,000 82,226,000 161,799,000 416,982,000
$221,079,000 $139,010,000 $360,089,000 $87,049,000 $ 108,773,000$195,822,000 $555,911,000 fifty one 1993
,705,00 13315,00 21,20,00 1,67,000
,437,00 7,
0700 8,200
Note 6 Long-Term Debt (continued)
Current interest costs of $996,000 and $749,000 have been included in Construction work in progress for fiscal years ended June 30, 1991 and 1990, respectively.
In accordance with the bond resolutions, a reserve for maximum annual debt service has been established and a reserve for renewal and replacement is being accumulated equal to a maximum of 2% of the depreciated book value of the utility plant in service.
The bond issues outstanding at June 30, 1991 require the establishment of a Bond Service Account by accumulating monthly one sixth of the interest which will become due and payable on the outstanding bonds within the next six months and one-twelfth of the principal amount which will mature and be payable on the outstanding bonds within the next twelve months.
On June 1, 1983, the Electric Utility defeased Electric Revenue Bonds, Issue A of 1982, in the aggregate principal amount of
$18,000,000 at rates of 8.0%, and Issue B of 1982, in the principal amount of $52,000,000 at rates ranging from 7.5% to 11.5%, with a portion of the proceeds from the sale of $80,400,000 Electric Revenue Bonds, Issue C of 1983 at rates ranging from 5.25% to 9.0%.
The excess of the amount required to advance refund the 1982 Bonds over the carrying value of those bonds at the refunding date amounted to $7,567,000. In accordance with industry practices, this amount is being deferred and amortized over the life of the Issue C of 1983 Bonds using the effective interest method. At June 30, 1991, outstanding principal of the refunded 1982 Bonds totaled
$52,150,000. Over the life of the Issue C of 1983 Bonds, the Electric Utility expects to save approximately $12,297,000 in debt service as compared to the refunded 1982 Bonds.
On March 31, 1986, the Electric Utility defeased a portion of the Electric Revenue Bonds, Issues A, B and C of 1983, in the principal amounts of $9,360,000, $37,440,000 and $58,150,000, respectively, at rates ranging from 8.3% to 9.0%, with a portion of the proceeds from the sale of 5129,275,000 of Electric Revenue Bonds, Issue of 1986 at rates ranging from 5.0% to 6.9%. The excess of the amount required to advance refund the 1983 Bonds over the carrying value of those bonds at the refunding date amounted to
$21,476,000. This amount is being deferred and amortized over the life of the 1986 Bonds using the effective interest method. At June 30, 1991, outstanding principal of the refunded 1983 bonds totaled $104,950,000. Over the life of the 1986 Bonds, the Electric Utility expects to save approximately $10,849,000 in debt service as compared to the refunded 1983 Bonds.
On November 25, 1986, the Electric Utility defeased a portion of the Electric Revenue Bonds, Issue of 1980, in the principal amount of $72,775,000, at rates of 8.0%, with a portion of the proceeds from the sale of $77,780,000 of Electric Revenue Bonds, Second Issue of 1986 at races ranging from 3.8% to 6.75%. The excess of the amount required to advance refund the 1980 Bonds over the carrying value of those bonds at the refunding date amounted to $9,693.000. This amount is being deferred and amortized over the life of the Second Issue of 1986 Bonds using the effective interest method. At June 30, 1991, outstanding principal of the refunded 1980 bonds totaled $72,775,000. Over the life of the Second Issue of 1986 Bonds, the Electric Utility expects to save approximately.
$10,818,000 in debt service as compared to the refunded 1980 Bonds.
Included in Restricted assets are Restricted cash and investments which include reserved amounts, as well as undisbursed bond proceeds, as follows:
June 30 1991 1990 Held by Fiscal Agent:
Bond Reserve Fund
$22,344,000
$22,117,000 Bond Service Fund 662,000 653,000 Certificates of Participation Proceeds 48,119,000 26,123,000 Held by City Treasurer:
Bond Service Account 8,274,000 8,509,000 Renewal and Replacement Account 8,987,000 8,371,000 Decommissioning and fuel reserves 19,867,000 15,127,000 Restricted bond proceeds 3,596,000 941,000 Restricted rebate 437,000 Other restricted assets 1,168,000 446,000
$113,454,000
$82,287,000 The Electric Utility cash expenditures for interest expense for the years ended June 30, 1991 and 1990 were $15,196,000 and
$15,723,000, respectively.
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S Note 7 Pension Plan Note 10 Cash and Invesments Note 11 Commtmew and Contingencies The City has a contributory pension At June 30, 1991, the carrying amount Take or pay contracts plan for full-time employees under the of the Electric Utility's share of the City's Stare of California Public Employees' pooled deposits was-15,664,000. Of The City has entered into agreements Retirement System. Information is not this amount, 513,108,000 is insured or with the Intermountain Power Agency available separately for the Electric Utility collateralized with securities held by the (IPA), a political subdivision of the State as to the cost of benefits funded, the City or its agent in the City's name. The of Utah, Utah Power & Light (UP&L) actuarially computed present value of remaining $2,556,000 is collateralized and the Southern California Public Power vested and non-vested accumulated plan with securities held by the pledging finan.
Authority (SCPPA), a public entity benefits, the related assumed rates of cial institution's trusc department in the organized under the laws of the Scate of return used and the actuarially computed City's name.
California. The City has agreed with [PA valued of vested benefits over the related At June 30,1991, all of the City's and UP&L, pursuant to power sales pension fund assets.
pooled investments were insured or r contracts, to purchase 13.225% of the Note 8 Sel-Insuance Progam tered with the exception of amounts Ci-invested by fiscal agents. A summary of two unit coal-fueled generating station The Electric Utility is part of the City's the Electric Utility's participation in the Station) in central Utah. Unit I of self-insured workers' compensation and City's pooled investments is allocated the Station became available for coi general liability program. The liability forpbseeotteevealt mercial operation June 10,1986. Unit 2 such claims is transferred to the City in tion as follows:
was commercially available May 1, 1987.
consideration of self-insurance premiums Cost of construction of the Station and paid by the Electric Utility. Effective July U.S. government securities $ 22,891,000 related transmission lines, including the 1, 1986, the City became self-insured.
Southern Transmission System (STS)
Costs relating to the litigation of claims Reverse repurchase from Utah to Southern Califomiawas are charged to expense as incurred.
agreements (1,567,000) financed principally through sales of [PAS Note 9 Refiaids Commercial paper 27,31,000 power supply revenue bonds and payments in aid of construction by SCPPA. The Since fiscal year 1986 the Electric Orange County Pool 6,353,000 City has agreed with SCPPA to purchase Utility has received refunds from Edison Local agency investment rights to 17.6% of the transmission totaling $41,766,000. These refunds have fund (state pool) 5,640,000 capacity in the STS.
been placed in the RSA. The City Controlled by The contracts constitute an obligation received refunds from Edison during the 1991 fiscal year of $6,061,000. At June 30, 1991 and 1990, total principal and interest Amounts invested by the revenues of the Electric Utility. These amounted to $1,034,000 and zero, fiscal agents 7
payments, which are based upon the City's respectively. The City intends to refundrequirements respectively hef C itnds to refti Uiit ud Total investments
$131,59,00 and production costs and SCPPAs debt any future refunds to Electric Utility cus-seicrquemnbgainJl19, comers in the form of reductions to future rate increases through the Rate Stabiliza-Fiscal agents on behalf of d City the month in which Unit I of the Station tion Policy (see Note 1).
and invest funds from long-term debt and the STS began commercial operation.
These refunds have been reflected in issuances. Fiscal agents are mandated by Thes payment will be considered a Cost the Electric Utility's Financial Statements bond indenture as to the types of invest-of purchased power. As of June 30, 1991, as part of the RSA.
ments in which proceeds can be invested.
PA has issued $53 billion in revenue Investments by fiscal agents predomninantly bonds and revenue bond anticipation consist of U.S. Government securityes notes to finance constution of the held in book entry form.
Station and SCPPA has issued $1.1 billion Amounts invested by fiscal agents in revenue bonds and revenue bond anti include investments that are insured cipation notes to finance payments in aid or registered or which the securities The byltctihe are held by the Citys agents in the City's name.
mum payments for purchased power due under these cake or pay contracts for the next five years are as follows:
Fiscal Year 1992
$65,540,000 1993 67,194,0 1994 67,359,000 1995 67,440,000 1996 66,356,000 fifamy g
m 5e
Note 11 Comirutments and Contingencies Rate challenges and other actions Independen Audiwi-s' Repoi' (contnued)
The City has filed several complaints To the Honorable City Council The City does not expect these payments against Edison challenging various rate City of Anaheim, California to have an adverse impact on the Electric increases and a suit alleging that Edison Utility's rate structure in that such pay-has violated certain anti-trust t The We have audited the accompanying ments are in lieu of payments which would actions could potentially result in refunds balance sheers of the Electric Utility Fund have been made to purchase power from or payment of damages to the Electric of the City of Anaheim, California as of Edison. The City projects that there will Utility; however, no o be June 30, 199 1. and 1990, and the related be substantial long-term power supply cost rendered at this time as to the probable statements of income, changes in retained savings from the take or pay contracts outcome of these actions.
earnings and cash flows for the years then compared to purchase from Edison.
expenditures ended. These financial statements are the On July 1, 1988, the Certificate of The Electric Utility's budget for the responsibility i
to Completion of the initial facilities of the Intermountain Power Project was exe-fiscal year 1991-92 provides for capital express an opinion on these financial cuted and as a result the surplus in IPA's expenditures of approximately $
statements based on our audits.
of which $8,918,000 is expected to be We conducted ou wisinacrac Construction Fund was transferred to IPA's nly acope auditin andards General Reserve Fund and will be allocated fie of paricpatin pod thsena reqre atiwe plandand to the various participants based upon the Plan for the Disposition of Surplus Funds.
perform the audit to obtain reasonable The Electric Utility's share of these surplus assurance about whether the financial funds was approximately $35.8 million statements are free of material misstate which the Electric Utility is using to ment. An audit includes examining on a reduce future IPP purchased power cses.
test basis, evidence supporting the amounts At June 30, 1991, the Electric Utility's and disclosures in the financial statements.
remaining share of these surplus funds was approximately $7.6 million, which the accounting principles used and significant Electric Utility will use to reduce IPP estimates made by management, as well as purchased power costs over the next evaluating the overall financial statement 2 to 3 years.
presentation. We believe that our audits Litigationprovide a reasonable basis for our opinion.
LitigtionIn our opinion, the financial statements A number of claims and suits are referred to above present fairly, in all pending against the City for alleged material respects, the financial position of damages to'persons and property and for the Electric Utility Fund of the City of other alleged liabilities arising out of Anaheim, California as of June 30,1991 matters usually incidental to the operation and 1990, and the results of its operations of a utility such as the electric system of and its cash flows for the years then ended the City. In the opinion of management, in conformity with generally accepted the exposure under these claims and suits accounting principles.
would not materially affect the financial position of the Electric Utility as of June 30, 1991.
KPMG Peat Marwick October 11, 1991 Orange County, California f4~cy fois