ML18040B017
| ML18040B017 | |
| Person / Time | |
|---|---|
| Site: | Susquehanna  |
| Issue date: | 10/31/1982 |
| From: | ALLEGHENY ELECTRIC COOPERATIVE, INC. |
| To: | |
| Shared Package | |
| ML17139B691 | List: |
| References | |
| NUDOCS 8308220064 | |
| Download: ML18040B017 (41) | |
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ELECTRIC COOPERATIVE, I NC.
FINANCIAL REPORT FOR YEAR ENDING OCTOBER 51, 1982 8308220064 830817 PDR ADQCK 05000387 PDR 212 Locust Street P. 0.
13ox 1266 Harrisburg, PA 17108-1266 717/233-5704
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FINANCIM REVIEW An Overview of 1982 During Fiscal Year 1982 a number of significant happenings occurred which will impact the future of Allegheny.
The first will have to be kept in.mind when reviewing this Annual Report and financial summary which follows.
During 1982 the Allegheny Board of Directors elected to change its accountipg year from a calendar year to a fiscal year.
That fiscal year will run from November 1 to October-31. It is readily apparent, when examining the financial. summary of Allegheny, that the 1982 fiscal figures actually represent 10 months of operations.
Also during 1982, Allegheny went from a tax-exempt entity to a non-exempt entity.
These events should be kept in mind during the review of this Annual Report.
OPERATING RE%~JE The operating revenue of Allegheny Electric Cooperative increased
$ 5.4 million (10.48 increase) for the year ended December 31, 1982 and is comprised solely of the sales of electricity to members.
The revenue figure for the 10-month year of 1982 was
$48,618,134.
The revenue generated-from sales during 1982 increased
$ 5.4 million even though the kilowatt hour sales increased 24.1 million kWh (1.428).
The revenue increase from sales is due mainly to the rate increases which were necessitated by the increases received by the wholesale suppliers of power to Allegheny.
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OPERATING EXPENSES General operating expenses increased in.1982 by
$ 5.5 million.
This was due to the increased cost of purchased power (9-7t).
General and administrative expenses increased
$ 430g301 or 38.4 percent.
This increase was due to Allegheny's continued involvement with EPRI and the engineering and legal work necessary in wholesale rate case negotiations instituted during 1981.
OTHER REVENUE Once again in 1982, Allegheny, through its Cash Money Management
- Program, continued to take advantage of the highest interest-bearing CD's available through National Rural Utilities Cooperative Finance Corporation (CFC),. and Commonwealth National Bank.
In doing so, Allegheny's interest.income for.1982 was
$1,173,853.
This is compared to
$ 1,100,818 in 1981 for an increase of 6.6 percent.
In 1982 Allegheny increased its emp'hasis on the money management program in order that all available funds would be invested at all times.
INTEREST CHARGES The interest on Allegheny's long-term debt increased during 1982 by $14.4 million or 51.1 percent from the previous year-This dollar amount is the interest charged by the Federal Financing Bank on 'the monies which have been advanced to Allegheny for its involvement in the Susquehanna
.Steam Electric
E
Station in Berwick, Pennsylvania.
This figure will continue to grow during 1983 because of Allegheny's continued involvement with the Susquehanna plant although the interest rates have tapered off significantly from 1980-1981.
During the '1982 year, Allegheny was forced to.use its approved line-of-credit with CFC, however, this short-term borrowing was repaid in early December 1982.
NET MARGINS Allegheny's net margin for 1982 was
$ 2.3 million compared to
$ 2.2 million in 1981.
This is an increase of about 2.3 percent.
This" increase was due largely to Allegheny's interest income being much greater than was anticipated in the budget.
FINANCING Allegheny's continued involvement in the Susquehanna.
plant.
will require additional funds during 1983 to be advanced by the Federal Financing Bank (FFB).
We feel that the current loan.
bal'ances which have been guaranteed by REA, will be sufficient to complete the Susquehanna.*project with Unit 2 of the Susquehanna Station going on line in the first calendar quarter of 1985
'here are a number of projects Allegheny is anticipating or considering at this time, and the front-end monies for these projects vill come from either CFC or REA.
During the calendar year 1982, Allegheny was issued an additional
$ 90,260,767 in long-term debt from the FFB.
The current combined rate of interest for these monies is 12.046%.
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It will be extremely essential in the coming years that Allegheny be able to maintain a stong financial base and that its equity level continue to strengthen.
Ne'are currently striving to maintain these positions by using a sound money. management.
program, negotiating the. best possible power purchase contracts and by our continued effort in-monitoring Allegheny's expenses in order to keep our overhead at a minimum.
In mid-Novembea 1982, Allegheny entered into a safe harbor
- lease, better known as a "tax benefit transfer" with an investor.
This tax benefit transfer involved approximately
$ 50 million of..
the power plant eligible for the tax benefits; The net proceeds of the lease will be applied to long-term debt.
FIVE YEAR FittAt<CIAL ST*TEtlEHT ASSETS 1982 F ISCAL% YEAR 1981 CALENDAR(1)
FISCAL'EAR 1981 CALENDAR(i) 1980 CALENDAR(i) CALENDAR(1 )
1979
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1978 Genel a l P lant Constr uction Wor k in Pr ogr ess Total Pl.ant Accumulated Provision for Deprec iat ion 26,471,895 365 '12r220 392 r284 r 1 15 (131,193) 20,577,S10 297,283,087 317,860,597 (99,516) 363,443 241 r 424,845 241,788,288 (66,654) 333 ~ 336 223 r 402 180,806,793 1 8,442,220 181,140r129 128,665,622 (41 '52)
(23r376)
Net Plant Hon"Utility Property - Het Capital Credits - HRUCFC Investments in Assoc l.ated Organizations Cash Genei al Funds Cash - Construction/Working Funds Temporary Investments Special Deposits Accounts Receivable Other Current 8 Accrued Assets Deferred Debits 392
~ 1 52 ~ 922 6,383,681 491,888 2,249,166 8,579,'916 2,477 8,S80,000 4 r 607 r 098 276,146 4,259,108 622,606 1,925,223 Cr303
~ 398 2,473 6r273rooo 5,807,292 143,562 4,340,935 612,0S6 1,634',964 27,795 3,725,852 3r305rooo 9,344,654 143,240 ir144r435 607,240 4,381,064 25,656 3,587,410 1,037,000 8,685,866 42,921 1,618 '97 317
~ 761 r081 241
~ 721 r634 181 r098r777 brSOSrS64 brb58t496 128,642,246 507,240 4,138,269 275,372 2,400,28'9 1, 141,000 1,115,000 3,445,465 1,025,S57 Total. Assets 427,582,402 348 r 135
~ 134 268 r 318
~ 126 201
~ 084
~ 331 142 r790
~ 439 LIABILITIES tlembersh ips Patronage Capital Donated Capital Long Term Debt - REA Long Term Debt Other Accounts Payable Accr ued Interest Other Cui r ent 8 Accrued Liabilities Deferred Cr edits Total Liabilities MEtiBER REVENUES
'2,800 15;681,19S 29,665 392,224,000 3,279,357 8,S43,825 4,098,993 568,018 3,154,549 427,582;.402 REVENUE CONPARISOH 2,800 13r571r011 29,665 316r528 F 000 3,274,640 10r059 ~ '724 92,966 1,417,19S 3r 159r 133 348,135,134 2,800 11,329,301 29,665 239r956rooo 3,243,529 9 r 429 ~ 191 84,038 1r085
~ 989 3,157,613 268,318,126 2,800 8,509,7S2 29,665 183,037rooo 8 r 386 ~ 064 35,162 1r075r734 8,154 2,800 hr388r731 29r665 123 16rooo 10 ~ 918r041 1,S35,202 Adams Bedford Centr al Claver ack Hew Enterpr ise Northwestern Somer set Southwest Central Sullivan Sussex Tr l-County United Valley Warr en 5,904,890 2r 152r946 4,951,695 3r687
~ 985 898,520 4,857;966 4,855,100 6r081
~ 529 998,2'9l 2r3S7r605 3,086,704 3,381,769 4, 137,935 1,265,199 5,322,387 1 r 955 r 182 4,309,346 3r364r422 822,112 4, 472,318 4,244,914 5,504,358 911,475 2r 124 r646 2,829r163 3,082r119 3,736,929 1 r 127 r 382 55 730 2r391r780 5'75 '95 4 ~ 105 r 543 1,00S,435 Sr464r256 5,201,376 bg735rioo 1r127r505 2,559,274 3r528,347 3,776,038 4,607,799 1,391,7'78 6,225r062 2r316
~ 683 4,975,921 3r906r778 941,901 5r242r740 4,919,087 6,430,997 1,092,508 2,453r578 3,364,007 3rh03r828 4r376,196 1,273,774 5,213,560 1 r965 r 523 4,080,578 3r31 1 ~ 386 796,629 4r468
~ 200 4,063,346 S,317,067 895,240 ir962 ~ OS9 2,821,159 2,970,617 3,711,442 ir020r639 4,299,793 1,630,044 3,412,779 2r900r848 679,8SO 3 ~ 845 r 06 1 3,O28,28O 4r321r955 820,758 1 '08r605 2,412,768 2,494,753 3,145,238 859,084 Total 48 r 618 r 134 43 r 806 r 753 S3
~ 72S r 856 Si
~ 123 r 060 42 r 597 r 445 35 r 4S9 r 816
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ALLEGHENY ELECTRIC COOPERATIVE, INC.
STATEMENTS OF CHANGES IN FINANCIAL POSITION TEN MONTHS ENDED OCTOBER 31, 198Z AND YEAR ENDED DECEMBER 31, 1981 Funds were provided by:
Net margins before provision for depreciation of $172, 634 - 1982;
$201, 149 - 1981 October 31, December 31, 1982 1981 2,282,816 2, 442,858 REA mortgage notes U. S. Department of Ener gy note Increase in deferred ere/its Decrease in deferred debits Decrease in utility plant 75, 696,000 16,050 81,827
$ 78 076 693 76,572,000 45,062 1,520 7,213 79 068
&53 Funds were used for:
Extension of utility plant
'onutility property Investments in associated organizations National Rural Utilities Cooperative Finance Corporation - loan payments Decrease in deferred credits Increase in other special fund Increase in deferred debits Increase in working capital
$ 74, 426, 306 16,287 193,225 11,333
'4, 584 345 3, 424, 613
$ 76,082,327 12,550 300,809 t
13,950 46,500 2, 612,517
$ 78 076 693
$ 79 068 653
ALLEGHENY ELECTRIC COOPERATIVE, INC.
NOTES TO FINANCIALSTATEMENTS OCTOBER 31, 1982 AND DECEMBER 31, 1981 NOTE 1:
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES:
Utilit Plant and De reciation - Utility plant is recorded at cost, De-preciation is provided on a straight-line basis over the estimated, useful lives of the assets.
Substantially all utility plant is subject to the liens of the Coopera-tive's mortgages.
Accountin Methods - The Cooperative's accounting methods're pre-scribed by.the U.S. Department of Agriculture Rural Electrification Administration.
Accounts are kept in accordance with REA Bulletin 181-1, Uniform System of Ac-counts Prescribed for Electric Borrowers of the Rural Electrification Administration.
Chan e in Fiscal Year - In 1982, the Cooperative changed its fiscal year from a calendar year ending to a-fiscal, year ending October 31, due to the scheduled start-up of the Susquehanna Nuclear Steam-Generating Station.
NOTE 2:
ASSETS PLEDGED:
All assets are pledged as security for long-term debt to Rural Electrifica-tion Administration.
NOTE 3:
UTILITYPLANT:
Provision has been made for computing depreciation using the straight-line method with depreciation rates prescribed by the U.S. Department of Agriculture Rural Electrification Administration as follows:
Net Utilit Plant Depreciation October..31, December 31, Rate 1982 1981 Transmission station equipment Structures and improvements Office furniture and equipment Transportation equipment Laboratory equipment Communication and load management equipment 3 wp 3%
6-10%
20't 6%
5g, 20,206 7, 253 203, 654.
62,025 9, 079 161,727 20, 903 5, 591 150, 318 53; 600 9, 617 123,689 463 944 363 718 months ended October 31, Depreciation amounted to $34, 465 for the ten 1982 and
$35, 667 for the year ended December 31, 1981.
ALLEGHENY ELECTRIC COOPERATIVE, INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1982 AND DECEMBER 31, 1981 NOTE 4:
JOINT OWNERSHIP AGREEMENT:
In January 1978, pursuant to agreements entered into in March 1977, the Cooperative purchased from Pennsylvania Power E Light Company '(PPfkL) a 10% un-divided ownership in the Susquehanna Nuclear Steam Generating Station now under construction by PPEL in Salem Township, Luzerne County, Pennsylvania.
The cost of construction work in progress at October 31, 1982 is
$365,812,220 and
$297,283,087 at December 31, 1981., The following assets shown on the balance sheet represent the Cooperative's 10% ownership of assets other than con-struction work in progress.
Both the Cooperative and PP@L provide their own financing.
I October 31, 1982 December 31, 1981 Nuclear fuel in process Working funds Miscellaneous current and accrued assets Deferred debits - nuclear production plant
$'5,876,758
'20,114;276 8,712,388 4,283,300 118,077 63,541 262, 042 235, 825 NOTE 5; NONUTILITYPROPERTY:
Nonutility property consists of the following:
Parking lot Building and land Locust Court Restaurant furniture and equipment October 31, December 31, 1982 1981 360,264 360,264 6,203,000 6,186,713 289,123 289,123 Less - accumulated provision for depreciation 6, 852,387 468,705 6,836,100 330,536 6 383 682 6 505 564 Nonutility plant is recorded at cost.
Depreciation is provided on a straight-,
line basis over the estimated useful lives of the assets.
The estimated useful lives are within guidelines prescribed by the U.S. Department of Agriculture Rural Electri fication Administration.
ALLEGHENY ELECTRIC COOPERATIVE, INC.
NOTES TO FINANCIALSTATEMENTS OCTOBER 31, 1982 AND DECEMBER 31, 1981 NOTE 6:
INVESTMENTS IN ASSOCIATED ORGANIZATIONS:
Investments in associ'ated organizations is composed of:
October 31, 1982 December 31, 1981 National Rural Utilities Cooperative Finance Corporation Patronage capital Membership Capital Term Certificates Association Building Corp.
Capital stock 491, 888 1,000 2,248,146 20 622, 606 1,000 1, 924, 203 20 2 741'054 2 547 829 The Capital Term Certificates subscribed for were based on the following:...
Year 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 Series 2025 2025 2025 2025 2025 2025 2025 2030 2030 2025 2030 Revenue 9, 248," 453 10, 468, 486 16, 476, 197 19,585,453 26,228,474 32,383,249 35, 459, 816 42,589,089 50,164,659 Long-term loan of $3,200,000, 53,725,856 Percentage Factor 1.086480%
1.012000 0.900780 0.805150 0.762189 0.723443 0.684704 0.667857 0.637200 0.602955 Subscription Amount 100, 483 105,941 148, 414 157, 692 199, 911 234,274 242,795 284, 434 290,259
+
160,000 323,943 2 248 146 Adjusted
$29,390 for 1976,
- 1977, 1978 and 1979 power cost refunds.
The certificates are fifty-year 3%, unsecured subordinated Capital Term Certificates.
Those certificates purchased prior to October 1, 1980 and October 1, 1985 will mature on October 1, 2025 and October 1, 2030, respectively.
Interest ac-crues from the most recent April 1 or October 1, the interest payment dates.
ALLEGHENY ELECTRIC COOPERATIVE. INC.
NOTES TO FINANCIALSTATEMENTS OCTOBER 31, 1982 AND DECEMBER 31, 1981 NOTE 7:
TEMPORARY CASH INVESTMENTS:
December 31, 1981 Temporary cash investments consists of the following short-term investments:
October 31, 1982 NRUCFC - Commercial paper (Interest:
12.25%
to 12.625% - 1981)
Commonwealth National Bank-Repurchase agreement (Interest:
8-1/Z~o 1982;
- 11. 375% - 1981)
I Certificates of Deposit ((Interest:
9.75% - 1982; ll-l/2% to 14-1/2% - 1981) 930,000 7,650,000 4,655,000 208,000 1,860,000 8 580 000 6 723 000 NOTE 8:
DETAIL OF PATRONAGE CAPITAL:
Assignable Assigned October 31, 1982 2, 110, 182 13, 571,010
$ 15,681-192 December 31, 1981 2, 241, 709 11, 329, 301 13 571 010 NOTE 9:
DETAIL OF DONATED CAPITAL - MEMBERS:
Total Contributed Retired Balance Adams Electric Cooperative, Inc.
Bedford Rural Electric Cooperative, Inc.
Central Electric Cooperative, Inc.
Claverack Rural Electric Coopex'ative, Inc.
New Enterprise Rural Electric Cooperative, Inc.
Northwestern Rural Electric Cooperative, Inc.
Somexset Rural Electric Cooperative, Inc.
Southwest Central Rural Electric Cooperative, Inc.
Sullivan County Rural Electric Cooperative, Inc.
Sussex Rural Electric Cooperative, Inc.
Tri-County Rural Electric Cooperative, Inc.
United Electric Cooperative, Inc.
,Valley Ruxal Electric Coopex'ative, Inc.
Warren Electric Cooperative, Inc.
$ 19, 455 7, 238 18, 619 Zl,b62 159 20,768
- 5, 667 6, 490 6, 500 13, 762 16,390 5, 474 8,083
$ 17, 622 6, 341 15,634 20,143 18,700 4,338 5,717 11,7Z3 14, 124 283 6, 526 1,,833 897 2, 985 1, 719 159 2, 068,.
1, 329 773 6, 500 2, 039
.2,266 5,191 1,557
$ 150 467
$ 121 151
$ 29 316 ALLEGHENY ELECTRIC COOPERATIVE, INC.
NOTES TO FINANCIALSTATEMENTS OCTOBER 31, 1982 AND DECEMBER 31, 1981 NOTE 10:
LONG-TERM DEBT:
The Cooperative obtained a Rural Electrification Administration guaranteed loan of $406,408,000 in order to participate with Pennsylvania Power
& Light Company (PPLL) in the joint ownership of the Susquehanna Nuclear Steam Generating Station.
Subsequent to October 31, 1982 the Cooperative executed a note payable to the Federal Financing Bank in the amount of $200,000,000 pursuant to a commitment of an additional Rural Electrification Administration guaranteed loan to finance the additional cost.'of the Susquehanna Nuclear Steam Generating Station.
The balance payable at October 31, 1982 amounted to $391,789,000; and at December 31, 1981 the, balance payable amounted to
$316, 093, 000.
i The loan is comprised of 81 separate notes which vary in interest rate and maturity date.
The amounts by maturity dates are as, follows:
Terms of the loans per-mit refinancing at maturity dates.
1982 1983 1984 1985 2012 Z013 5, 752, 000 48,410,000 159,078,000 47,121,000 123, 916, 000 7,512,000
$391 789 000 The Cooperative obtained a loan of $3,Z00,000 in 1980 from National Rural Utilities Cooperative Finance Corporation'.to puichase its headquarters building at 212 Locust Street, Harrisburg, Pennsylvania.
The balance payable at October 31, 1982 amounted to $3,168,206; and at December 31-,
1981 the balance payable amounted to
$3,179,539.
The terms include interest payable at 9-1/4~a with a maturity date of Jan-uary 31, 2015.
The loan is being amortized monthly with paym'ents of $77,218.
Interest paid for the ten months ended October 31, 1982 amounted to $244,569.
The Cooperative executed two notes amounting to $722,000 guaranteed by'the Rural Electrification Administration, to finance feasibility study costs associated with pro-posed hydroelectric projects.
Advances of $435,000 had been made on the notes as of, October 31, 1982 and December 31, 1981.
The Cooperative and the United States Department of Energy entered into a feasibility study loan agreement in the amount of $100,000 on November 17, 1980.
~ The balance payable at October 31, 1982 amounted to $100,000; and at December 31, 1981 the balance payable amounted to $90,000.
Interest in the amount of $11,152 has accrued to October 31, 1982.
The interest rate on the loan is 7-3/8't per annum.
The loan including.
interest is to be repaid over a maximum period of ten years.
The line of credit in the amount of $ 12 million, from National Rural Utilities Cooperative Financing Corporation(CFC) as of October 31, 1982, had been increased on January 31, 1983 to $43,500,000, which is the maximum combined principal amount that can be outstanding at any one time on the CFC and other bank lines of credit.
Any un-paid principal amount of all advances is payable by January 30, 1984.
The balance payable to CFC as of October 31, 1982 amounted -to $571,000.
No balance was outstanding't December 31.
1981.
ALLEGHENY ELECTRIC COOPERATIVE, INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1982 AND DECEMBER 31, 1981 NOTE 10:
LONG-TERM DEBT (CONTINUED):
The Cooperative secured on December 16, 1982 a line of credit in the amount of $12 million from the Baltimore Bank for Cooperatives, Baltimore, Maryland.
Any advances made must be repaid by January 1,
1984.
The Cooperative's maximum authorized indebtedness was established by board resolution in August 1977 at
$2 billion.
NOTE ll: INCOME DEDUCTIONS:
Income deductions include:
Interest on long-term debt Interest charged to construction Preliminary survey and investigation expenses related to abandoned projects Totals October 31, 1982
'3.4,499,700 (34,499,700) 106,156 106 156 December 31, 1981
$ 28,111,200 (28,111,200) 14, 955 14 955 As provided in the Uniform System of Accounts, the cost of funds used to finance construction is capitalized as part of construction cost.
NOTE 12:
INTEREST INCOME:
Interest income is composed of the following:
October 31, 1982 December 31, 1981 Temporary cash investments NRUCFC Capital Term Certificates Total interest income 958, 762 48, 904 1 007 666 1,049, 605 51, 213 1 100 818 A
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~ 1 JOHN B[SBANO & CO.
CERT(F(ED PUSLtC ACCOUNTANTS LOCUST'OURT 2T2 LOCUST STRCCl HARR!ssURo, PcKNCTT YAN(ATVl01 711 S$ 4iCSS7 March 14, 1983 ACCOUNTANTS'EPORT The Board of Directors Allegheny Electric Cooperative, Inc.
212 Locust Street Harrisburg, Pennsylvania 17101 Ne have examined the balance sheets of.AL'L'EGHENY ELECTRIC COOPERATIVE, INC. as of October'1, 1982 and December'1,
- 1981, and the
'elated statements of revenue and patronage capital, schedules of administ'ra-tive and general expenses, schedules'f nonoperating 'rental income, and statements of changes in financial position for the ten'onths en'ded'ctober'1, 1982 and year ended December'1, 1981.
Our examination was made in'ac-cordance with generally accepted'uditing standards and, accordingly, included'.
such tests of the'ccouriting records and such other auditing 'procedures hs we considered necessary in the circumstances; In our opinion, the financial statements referred to above present fairly the financial position of ALL'EGHENY ELECTRIC'OOPERATIVE 'NC.
as'f October 31, 1982 and December 31,
- 1981, and the results'.of.its operations'nd changes in its financial position for the ten months. en'ded'ctober'1',
1982 and year ended December'31, 1981., in conformity wit7i ge'n'erally'accepted ac-counting principles applied'n a consist'ent basis."
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PENNSYLVANIA 27 DAUPHIN ALLEGHENY ELECTRIC COOPERATIVE, INC.
HARRISBURG, PENNSYLVANIA FINANCIA'L'TATEMENTS AS OF OCTOBER 31, 1982 AND ACCOUNTANTS'EPORT
. ALLEGH ELECTRIC COOPERATIVE~ I HARRISBURG PENNSYLVANIA
'ONTENTS PAGE Accountants'eport Financial statements:
Balance sheets Statements of revenue and patronage capital Schedules of administrative and general expenses Schedules of nonoperating 'rental income
'tatements of changes in'nancial'osition Notes to Qnancial statements 5'
0 JOHANN BISBANO 8: CO.
CERTIFIED PUBLIC ACCOUNTANTS LOCUST COURT 212 LocUsT STREET HARRIsBURG, PENNsYLYANIAI7IOI 7I7 2S4 2557 March.14, 1983 ACCOUNTANTS'EPORT The Board of Directors Allegheny Electric Cooperative, Inc.
212 Locust Street Harrisburg, Pennsylvania 17101 Ne have examined the balance sheets of AL'L'EQHENY EL'ECTRIC COOPERATIVE, INC. as of October'1, 1982 'and December'1,
- 1981, and the related statements of revenue'nd patronage'apital, schedules'f administr'a-tive and general expenses; schedules of nonoperating 'rental income.,
and statements of changes in financial position for the ten'onths ended October 31, 1982 and year ended'ecember 31,
- 1981, Our'xamination was made in ac-cordance with generally accepted auditing standards and, accordingly, included'uch tests of the accouriting records and such other auditing 'procedur'es as we considered necessary in the circumstances'.
In our opinion, the financial statements referred to above present fairly the financial position of ALL'EGHENY ELECTRIC'OOPERATIVE 'NC.
as of October 31, 1982 and December 31,
- 1981, and the results'.of its operations' and changes in its financial position for the ten months ended October'1, 1982 and year ended December'31, 1981; in conformity witli ge'n'erally "accepted ac-counting principles applied'n a consistent basis."
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ALLEGH.
ELECTRIC COOPERATIVE, I BALANCE SHEETS OCTOBER 31, 1982 AND DECEMBER 31, 1981 ASSETS LIABIlITIES October 31, 1982 December 31, 1981 October 31, 1982 December 31, 1981 Utilityplant Notes 1,
3 and 4:
Transmission station equipment Structures and improvements Of6ce furniture and equipment Transportation equipment Laboratory equipment Communication and load management equipment Construction work in progress electric Nuclear fuel in process Less:
Accumulated provision for depreciation Net utility plant Other property and investments (at cost):
Nonutility property (net of accumulated provision for depreciation and amortization - 1982
$468,705; 1981
$330,536 - Note 5
Investment in associated organizations Note 6
Special fund Current assets:
Cash general Cash construction fund, trustee Working funds Temporary cash investments Note 7
Accounts receivable from members - (power bills)
Other accounts receivable Prepayments Interest receivable Miscellaneous current and accrued assets 27, 896 7,769 267, 399 97,248 10,757 184,068 365,812,220
- 25,876,758 392, 284, 115 131,193 392,152,922 6, 383, 682 2, 741, 054 345 9, 125,081 (132,472) 2,477 8, 712, 388 8,580,000 4,577,699 129,054 85,364 72,705 118,077 27,896 5, 922 200, 840 79,080 10,757 138,739 297,283,087 20,114,276 317, 860, 597 99, 516 317,761,081 6,505, 564 2,547, 829 9, 053, 393 20, 098 2, 473 4,283,300 6,723,000 5,620,169 287,123 49, 963 30,058 63, 541 Equities and margins:
Memberships Patronage capital Note 8
Donated capital members - Note 9
Donated capital non-members Long-term debt Note 10:
REA mortgage notes NRUCFC mortgage note U. S. Department of Energy note Current liabilities:
Note payable - NRUCFC Accounts payable Accounts payable to Pennsylvania Rural I
Electric Association Interest accrued Miscellaneous current and accrued liabilities Deferred credits 15 713 657 13, 603, 475 392,224,000 3,168,206 111,152 395,503,358 316,528,000 3, 179, 539 95,102 319,802,641 571,000 7,841,024 131, 804 4,098, 993 568,018 13,210,839 3,154,549 10,050,782 8,942 92,966 1,417,195 11,569,885 3,159,133 Also Available On Aperture Card 2,800 2,800 15, 681, 192 13, 571, 010 29,316 29,316 349 349 Deferred debits 22, 145, 292 4, 159, 108 17,079,725 4,240, 935
$ 427 582 403
$348 135 134 PRC APERTURE CARI3 IN The accompanying notes are an integral part of this statement.
8308220064-a(
. ALLEG Y ELECTRIC COOPERATIVE, STATEMENTS OF REVENUE AND'ATRONAGE CAPITAL TEN MONTHS'NDED OCTOBER 31',
1982
'ND YEAR ENDED DECEMBER 31, 1981 October 31, 1982 December 31, 1981 Operating revenues and patronage capital
$ 48, 618, 134
$ 53, 725, 856 Operating expenses:
Cost of power Wheeling Customer accounts expenses (billing 'and computer charges)
Administrative and general expenses Depreciation, unallocated Income deductions Note. 11:
Miscellaneous income deductions Total operating expenses and income deductions Net operating margins 42, 814, 417 2, 936, 838 1, 850 "1 381 332 28, 865 47,.1 63,'302 106.156 47 269 458 1 348 676 47, 661, 913 3,346,072 2, 362 1,151,404 30,763 52, 192, 514 14, 955 52,207,469 1,518,387 Nonoperating margins:
Nonoperating rental income (e'xpense)"
Interest income Note 12 Gain on disposition of property (246, 220)
(388, 046) 1,007,666
=1,100,818 60 Patronage capital allocations NRUCFC Total nonoperating margins and patronage capital allocations 761,506 761, 506 712,772 10,550 723,322 Net margins for period Patronage capital beginning of year Patronage capital - end of year 2,110,182 13,571,010 2,241,709 11,329,301
$.15:, 681, 192
$ 13 571 010 The accompanying notes are an integral part of this statement.
, ALLEGH Y ELECTRIC',COOPERATIVE, I
'CHEDULES 'OF ADMINISTRATIVE"AND GENERAL EXPENSES TEN MONTHS'NDED 'OCTOBER 31, 1982
'ND YEAR ENDED DECEMBER 31, 1981 October 31, 1982 December 31, 1981 Youth tour Office supplies Telephone Travel, conventions and meetings Payroll and employee benefits Legal, auditing and engineering Miscellaneous Association membership dues Experimental and general research Board meetings, directors'ees and travel Annual report Penn Lines and information programs Rent Payroll taxes Insurance Customer assistance energy conservation Automobile service and maintenance Printing 2,100 26,059 5, 640 54, 978 525, 657 289, 877 322 22,756 116,658 44, 013 2, 451 98,606 74,387 30,554 16,768 3,589 242 66,675
',100 21, 857 4, 044 43, 294 473, 591 196, 005 925 18, 606 123, 707 56, 575 703 92,041 63,251.
29, 832 18, 755 4, 463 2, 655 Total administrative and general expenses 1'381'332'1'151'404'he accompanying notes're an integral part of this'statement.
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. ALLEGH Y ELECTRIC COOPERATIVE I
'CHEDULES OF. NONOPERATING RENTAL INCOME TEN MONTHSENDED OCTOBER 31, 1982
'ND YEAR ENDED DECEMBER 31, 1981 October'1, 1982 December 31, 1981 Income:
Rental building Rental - parking Total income 445, 102 411, 005 33,830 37, 240 478, 932 448, 245 Expenses:
Utilities Payroll and employee benefits Management and leasing fees OfQce and administrative expenses'ravel Maintenance'nd repairs Advertising
. Real estate taxes Insurance Interest Depreciation Directors'ees and expenses, Legal and audit fees Protection service 95, 171 44,190 13,947 2, 508
,1, 440 58, 284 766 104, 932 20,221 244, 569 138,169 955 92,502 51,766 19, 818 1,548 1,728 68,547 155 114, 747 18, 805 294,708 165, 482 375 6, 110 Total expenses Net nonoperating rental income'e'xpense) 725,152 836, 291
" 246'20)
$ '88'46)
The accompanying-notes are an integr'al part of this'statement. '
, ALLEGH i Y ELECTRIC COOPERATIVE, I STATEMENTS O.
CHANGES IN FINANCIAL POSITION TEN MONTHS'NDED OCTOBER 31, 1982 AND YEAR ENDED DECEMBER 31, 1981 October 31, 1982 December 31, 1981 Funds were provided by:
Net mar gins before provision for depreciation of $172, 634 - 1982;
$201, 149 1981 2, 282, 816 2, 442, 858 REA mortgage notes U. S. Department of Energy note Increase in deferred credits Decrease in deferred debits Decrease in utility plant 75, 696, 000 16,050 81,827
$ 78 076'93',
76,572,000 45,062 1,520 7,213 79'068 653 Funds were used for:
Extension of utility plant Nonutility property Investments in associated or ganizations National Rural Utilities Cooperative Finance Corporation loan payments Decrease in deferred credits Increase in other special fund Increase in deferred debits Increase in working capital
$ 74,426,306 16, 287 193,225 11,333 4, 584 345 3, 424, 613
$ 76, 082,327 12,550 300,809 13,950 46,500 2,612,517
$ 78'076 693
$ 79'068'653 The accompanying
'notes are an integral part of this statement.
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. ALLEG Y ELECTRIC COOPERATIVE, NOTES.TO, FINA,NCIAL'TATEMENTS.
OCTOBER 31; 1982 AND DECEMBER 31, 1981 NOTE 1:
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES:
Utilit Plant and De reciation - Utility plant is recorded at cost.
De-preciation is provided on a straight-line basis over the estimated useful lives of the assets.
Substantially all utility plant is subject to the liens of the Coopera-tive's mortgages.
Accountin Methods - The Cooperative's accounting methods are pre-scribed by the U.S. Department of Agriculture Rural Electrification Administration.
Accounts are kept in accordance with REA Bulletin 181-1, Uniform System of Ac-counts Prescribed for. Electric Borrowers of the Rur'al Electrification Administration.
Chan e in Fiscal Year In 1982, the Cooperative changed its fiscal year from a calendar year ending to a fiscal year ending October'31, due'o the scheduled
'tart-up of the Susquehanna Nuclear Steam Generating Station.
NOTE 2:
ASSETS PLEDGED:
All assets are pledged as security for long-,term debt to Rural Electrifica-tion Administration.
NOTE 3:
UTILITYPLANT:
Provision has been made for computing depreciation us'ing the straight-line method with depreciation rates prescribed by the U.S. Department of Agricultur'e Rural Electrification Administration as follows:
Net Utilit Plant Depreciation October..31, December 31, Rate 1982 1981 Transmission station equipment Structures and improvements Office furniture and equipment Transportation equipment Laboratory equipment Communication and load management equipment 3g.
39.
6-10%
20%
6%
20, 206 7, 253 203, 654 62, 025 9,079 20, 903 5, 591 150,'318 53, 600 9, 617 161, 727 123, 689 463'44 363 718 Depreciation amounted to $34,465 for the ten months ended October 31, 1982 and
$35,667 for the year end'ed December 31, 1981.
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. ALLEGH ELECTRIC COOPERATIVE~ I NOTES TO FINANCIAL'TATEMENTS OCTOBER 31, 1-982 AND DECEMBER 31, 1981 NOTE 4:
JOINT OWNERSHIP AGREEMENT:
In January 1978, pursua'nt to agreements entered into in March 1977, the Cooperative purchased from Pennsylvania Power' Light Company '(PP&L) a 10% un-divided ownership in thous'quehanna Nuclear'team Generating Station now under construction by PP&L in Salem Township, Luz'erne County,'. Pennsylvania.
The cost of construction work in progress at October 31, 1982 is
$365,812,220 and
$297,283,087 at December'31, 1981.
The following assets shown on the balance sheet represent the Cooperative's 10~a ownership of assets other than con-struction work in progress.
Both the Cooperative and PP&L'rovide their own financing.
Nuclear fuel in process Working funds Miscellaneous" current and accrued assets Deferred debits nuclear produc'tion plant October.
31, 1982
$ 25, 876,758 8,712,388 118,077 262,042 December 31, 1981
$ 20,114,276 4,283,300 63,541 235,825 NOTE 5:
NONUTILITYPROPERTY:
Nonutility property consists of the following:
Parking lot Building and land Locust Court Restaurant - furniture and equipment r
October 31, December 31, 1982 1981 360, 264 360, 264 6,203,000 6,186,713 289,123 289,123 Less accumulated provision for depreciation
.6,.852,387 468,705 6,836,100 330,536 6'383'682 6'505 564 Nonutility plant is recorded at. cost.
Depreciation is provided on a straight-line basis over the estimated us'eful'lives'of the assets.'The estimated useful lives are within guidelines'prescribed by the U.S. Department of Agricultur'e Rural Electrification Administration..
ALL'EG~YELECTRIC COOPERATJVE, I~.
NO~ TO FINANCIAL"STATEMENTS~
OCTOBER 31, 1982 AND DECEMBER 31, 1981 NOTE 6:
INVESTMENTS IN ASSOCIATED ORGANIZATIONS:
Investments in associated organizations is composed of:
October 31, 1982 December 31, 1981 National Rural Utilities Cooperative Finance Corporation-Patronage capital Membership Capital Term Certificates Association Building Corp.
Capital stock
$ '91,888 1,000 2,248,146 20 622, 606 1,000 1, 924, 203 20 2 741'054'2'47'29 The Capital Term Certificates subscribed for were based on the following:
Year 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 Series 2025 2025 2025 2025 2025 2025 2025 2030 2030 2025 2030
\\
Revenue 9, 248, 453 10, 468, 486 16, 476, 197 19,585, 453 26, 228, 474 32, 383, 249 35, 459, 816 42, 589, 089 50, 1'64, 659 Long-term loan of $3,200,000 53, 725; 856 Percentage Factor
- 1. 086480%
- 1. 012000 0.900780 0.805150 0.762189 0.723443 0.684704
- 0. 667857 0.'637200 602955 Subscription Amount 100, 483 105,941 148, 414 157,692 199, 911 234, 274 242, 795 284, 434 290,259
+
160,000 323, 943
$ 2'48'46 Adjusted
$29,390 'for 1976,
- 1977, 1978 and 1979 power cost refurids.
The certificates are fifty-year 3%, unsecur'ed subordinated Capital Term Certificates.
Those certificates pur'chased prior'o October 1, 1980 and October 1, 1985 willmature on October 1, 2025 and October'1, 2030, r'esp'ectively.
Interest ac-crues from the most recent April 1 or October',
the interest "payment dates.
. ALLEGH Y ELECTRIC COOPERATIVE, I NOTES TO. FINANCIALSTATEMENTS OCTOBER 31, 1982 AND DECEMBER 31, 1981 NOTE 7:
TEMPORARY CASH INVESTMENTS:
Temporary cash investments consists of the following short-term investments:
October 31, December 31, 1982 1981 NRUCFC - Commercial paper (Interest:
12,25%
to 12. 625% 1981)
~ Commonwealth National Bank Repurchase agreement" (Interest:
8-1/2% 1982; ll,375 o 1981) 930,'000 4,655,000 208,000 Certificates of Deposit ((Interest:
9.75% - 1982; ll-l/2% to 14-1/2% - 1981) 7, 650, 000 1, 860,000 8"580 '000 6 723 000 NOTE 8:
DETAIL OF PATRONAGE CAPITAL:
Assignable Assigned October 31, 1982 2, 110, 182 13,571,010
$ 15 681 192 December 31, 1981 2, 241, 709 11,329,301 13 571 010 NOTE 9:
DETAIL OF DONATED CAPITAL - MEMBERS:
Total Contributed Retired Balance Adams Electric Cooperative, Inc.
Bedford Rural Electric Cooperative, Inc.
Central Electric Cooperative, Inc.
Claverack Rural Electric Cooperative, Inc.
New Enterprise Rural Electric Cooperative, Inc.
Northwestern Rural Electric Cooperative, Inc..
Somerset Rural Electric Cooperative, Inc.
Southwest Central Rural Electric Cooperative, Inc.
Sullivan County Rural Electric Cooperative, Inc.
Sussex Rural Electric Cooperative, Inc.
Tri-County Rural Electric Cooperative, Inc.
United Electric Cooperative, Inc.,
. Valley Rural Electric Cooperative, Inc.
Narren Electric Cooperative, Inc.
$ 19, 455 7,238 18, 619 21, 862 159 20,768 5, 667 6, 490 6, 500 13,762 16,390 5, 474 8,083
$ 17, 622 6, 341 15,634 20,'143 18, 700 4,338 5,717
. 11,723 14, 124 283 6,526 1, 833 897 2,985 1,719 159 2,068 1, 329 773 6,500 2,039 2,266 5, 191 1,557
$150 467
$121"151
$ 29 316
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. ALLEGH '
ELECTRIC COOPERATIVE, I NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1982 AND DECEMBER 31, 1981 NOTE 10:
LONG-TERM DEBT:
The Cooperative obtained a Rural ElectriQcation Administration guaranteed loan of $406,408,000 in order to participate with Pennsylvania Power
& Light Company (PP&L') in the joint ownership of the Sus'quehanna Nuclear Steam Generating Station.
Subseque'nt to October 31, 1982 the Cooperative executed a note payable to the Federal Financing Bank in the amount of $200,000,000 pursuant to a commitment of an additional Rural Electrification Administration guaranteed loan to finance the additional cost of the Susquehanna Nuclear Steam Generating Station.
The balance payable at October 31, 1982 amounted to $391,789,000; and at December 31, 1981'he balance payable amounted to
$316, 093, 000, The loan is comprised of 81 separate notes which vary in interest rate and maturity date.
The amounts by maturity dates are as follows:
Terms of the loans per-mit reQnancing at maturity dates.
1982 1983 1984 1985 2012 2013 5, 752, 000 48,410,000 159,078,000, 47,121,000 123, 916, 000 7,512,000
$391'789 000 The Cooper ative obtained a loan of $3,200,000 in 1980 'from National Rur'al
. Utilities Cooperative Finance Corporation to pur'chase its.headquarters building at 212 Locust Street, Harrisbur'g, Pennsylvania.
The balance payable at October'1, 1982 amounted to $3,168,20&; and at December 31, 1981 the balance payable amounted to
$3,179,539.
The terms include interest payable at 9-1/4~a with a maturity date of Jan-uary 31, 201'5.
The loan is being amortized monthly with payments of $77,218.
Interest paid for the ten months ended October 31, 1982 amounted to $244,569.
The Cooperative executed two notes amounting to $722,000 guaranteed by the Rural Electrification Administration, to finance feasibility study costs associated with pro-posed hydroelectric projects.
Advances of $435,000 had been made on the notes as of October 31, 1982 and December 31, 1981.
The Cooperative and the United States Department of Energy entered into a feasibility study loan agreement in the amount of $100,000 on November 17, 1980.
The balance payable at October 31, 1982 amounted to $100,000;. and at December 31, 1981 the balance payable amounted to $90,000.
Interest in the amount of $11,152 has accrued to October 31, 1982.
The interest rate on the loan is 7-3/8% per annum.
The loan including interest is to be repaid over a maximum period of ten years.
The line of credit in the amount of $12 million, from National Rur'al Utilities Cooperative Financing Corporation (CFC) as of October 31, 1982, had been increased on
. Janua'ry 31, 1983 to $43,500,000, which is the maximum combined principal amount that can be outstanding at any one time on the CFC and other bank lines of credit.
Any un-paid principal amount of all advances is payable by January 30, 1984.
The balance payable to CFC as of October 31, 1982 amounted to $571,000.
No balance was outstanding at December 31, 1981.
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ALLEGH ELECTRIC COOPERATIVE, I NOTES TOFINANCIALSTATEMENTS OCTOBER 31, 1982 AND DECEMBER 31, 1981 NOTE 10:
LONG-TERM DEBT (CONTINUED):
The Cooperative secur'ed on December 16, 1982 a line of credit in the amount of $12 million from the Baltimore Bank for Cooperatives; Baltimore, Maryland.
Any advances'ade must be repaid by January 1,
1984.
The Cooperative's,maximum authorized indebtedness was established by board resolution in August 1977 at $2 billion.
NOTE 11:
INCOME.DEDUCTIONS:
Income deductions include:
Interest on long-term debt Interest charged to construction Preliminary survey and investigation expenses related to abandoned projects Totals October 31, 1982
$ 34,499,700 (34, 499, 700) 106,156 106 156 December 31, 1981
$ 28, 111, 200 (28,111,'200) 14, 955
'4955 As provided in the Uniform"System of Accounts, the cost of funds used to finance construction is capitalized as part of construction cost.
NOTE 12:
INTEREST INCOME:
Interest income is composed of the following:
Temporary cash investments NRUCFC Capital Term Certificates Total interest income October 31, 1982 958, 762 48, 904
$ 1'07'66
'ecember 31, 1981 1,049, 605 51,213 1 100'818