ML18230A844

Submitting Interim Financial Statement as Exhibit D

ML18230A844
Person / Time
Site:	Harris
Issue date:	03/31/1975
From:	Carolina Power & Light Co
To:	Office of Nuclear Reactor Regulation
References
Download: ML18230A844 (4)

Text

EXHIBIT D HELPINO IO INlLD >>

THE'ATTACHED FILES ARE O~FI g pi~i', '

OF THE OFFICE OF REGULATIO BEEN CHARGED TO YOU CIAL RECORDS N. THEY HAVE FOR A LIMITEDTIME t PERIOD ANS MUST BE RETURNED ED TO THE CENTRAL RECORDS STATION 008. ANY PAGE S REMOVED FOR'REPRODUCTIO TO ITS/THEIR ORIGINAL ORDER.

Se-'II QO-'dlI~

>>>>I Q

eI<"'g~I

~lo MARY JINKS, CHIEF CENTRA L RECORDS STATION

~

FINANCIAL STATEMENTS sS'NTERIM

( NOT EXAMINED BY INDEPENDENT CERTIFIED PuBLIC ACCOUNTANTS)

MARCH 31 1975 THESE STATEMENTS HAVE BEEN PREPARED FOR THE PURPOSE OF PROVIDING INFORMATION CONCERNING THE COMPANY AND NOT IN CONNECTION WITH ANY SALE>> OFFER FOR SALE OR SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.

Carolina Power & Light Company BALANCE SHEET (Thousands of Dollars)

Assets: March 31 ELECTRIC UTILITYPLANT:

1975 1974 Electric utility plant other than nuclear fuel (including construction work in progress: 1975, $ 898,426,981; 1974, $ 668,659,290) $ 2,282,213 $ 1,953,245 Less accumulated depreciation 267 107 237,649 Electric utility plant other than nuclear fuel- 2 015 106 1715 596 Nuclear fuel (net of accumulated amortization) 41 015 64,404 Electric utility plant, nct 2 056.121 1 780,000 OTHER. PROPERTY AND INVESTMENTS 5 565 6,124 CURRENT ASSETS:

Cash 7,912 4,663 Accounts receivable, net (includes $ 14,942,000 and $ 10,316,000 respectively of refundable income taxes-Note 4) 48,677 31,596 Materials and supplies 80,029 48,032 Deferred fossil fuel cost (Note 5) 22,181 5,534 Prepayments, etc. 1,736 1,968 Total current assets 160,535 91,793 DEFERRED DEBITS 9 709 8,289 TOTAL $2 231 930 $ 1,886,206 Liabilities:

CAPITAL STOCK AND RETAINED EARNINGS (Notes 1 and 2):

Preferred stock (outstanding shares: 1975 2 887>259 1974 2 887 259) $ 288,118 $ 288,118 Preference stock (outstanding shares: 1975,2,000,000) - - - - - - - - - - - --- 47,900 Common stock (outstanding shares: 1975, 27,516,361; 1974, 23,268,556) 476,571 417,072 Retained earnings (Note 4) 134,598 116,615 Total capital stock and retained earnings 947 187 821 805 LONG-TERM DEBT, net (Notes 1 and 3) 1 056,434 882,756 CURRENT LIABILITIES:

Notes payable:

B anks 32,200 34,256 Other 24,764 20,447 Accounts payable 24,121 20,163 Customers'eposits 2,980 2,305 Taxes accrued 16,168 7,293 Current portion of deferred income taxes- 7,411 2,656

• Interest accrued 29,739 22,482 Dividends declared 22,364 18,261 Other 2 620 2 209 Total current liabilities 162 367 130 072 DEFERRED CREDITS (Includes accumulated deferred investment tax credits: 1975, $ 10,110,756; 1974, $ 10,526,645) 10,708 10 846 RESERVE FOR INJURIES AND DAMAGES 742 686 ACCUMULATEDDEFERRED TAXES ON INCOME 54,492 40,041

• TOTAL $ 2 231,930 $ 1,886,206

• Reclassified to conform to current presentation.

STATEMENT OF RETAINED EARNINGS For the Twelve Months Ended March 31, 1975 1974 BALANCE AT BEGINNING OF PERIOD:

As previously reported $ 112,455 $ 99,487 Adjustment (Note 4) 5,246 4,160 As restated 117,701 103,647 ADD-Net income 79 193 63 259 Total 196,894 166 906 DEDUC1':

Preferred and preference stock cash dividends d eclared 23,077 15,801 Common stock cash dividends declared 39,074 34,343 Capital stock expense 145 147 Total deductions 62 296 50 291 BALANCE AT END OF PERIOD $ 134,598 $ 116,615'.

'ee Notes to Financial Statements.

Three Months Ended Twelve Months Ended STATEMENT OF INCOME (000's Omitted) March 31 March 31 1975 1974 1975 1974 OPERATING REVENUES (Note 5) $ 156,797 $ 89 140 $ 528 634 $ 344,078 OPERATING EXPENSES:

Fuel 61,926 33,125 264,643 114,925 Defcrrcd fossil fuel expense, net (Note 5 ) 12,847 (5,534) (16,647) (5,534)

Purchased power- 3,159 2,788 14,865 8,105 Other operation expense 12,815

• 10,930 48,434

• 43,841 Maintenance 7,365 7,346 28,610 ~ 30,844 Depreciation

• '1,083 9,375 37,252 33,231 Taxes other than on income 12;023 8,080 44,627 29,875 Income tax expense 9 323 4 263 22 007 16,782 Total operating expenses 130 541 70 373 443 791 272 069 OPERATING INCOME 26 256 18 767 84,843 72 009 OTHER INCOME:

Allowance for funds used during construction 14,787 11,387 58,009 40,959 Income taxes-credit 5,033 3,315 17,786 11,79,6 Other income (deductions)-net- ~15) ~63) 824 71 Total other income 19 805 14 639 76 619 52 826 GROSS INCOME 46061 33406 161 462 124,835 INTEREST CHARGES:

Interest on long-term debt- 19,663 1'5,422 74,119 54,605 Other interest charges 2 662 1 170 8 150 6 971 Total interest charges 22 325 16 592 82 269 61 576 NET INCOME 23,736 16,814 79,193 63,259 PREFERRED DIVIDENDREQUIREMENTS 5 557 4 491 21 739 14 423 EARNINGS FOR COMMON STOCK 8 18 179 $ 12 323 8 57,454 8 48836 AVERAGE COMMON SHARES OUTSTANDING 26,507 23,247 24,128 21,322 EARNINGS PER SHARE $ .69 $ .53 $ 2.38 $ 2.29 Revised 4/24/75 to correct transposition error of 6306 between Other Operation and Maintenance expense categories.

See Notes to Financial Statements.

SUPPLEMENTAL DATA Operating Revenues ($ 000):

Sales of electricity-Within scr vice area-Retail $ 128,383 $ 73,929 $ 450,353 $ 282,708 For resale 25,194 10,916 60,293 44,328 Nonterritorial 2,000 3,184 12,315 12,323 Miscellancous- 1 220 1 111 5 673 4 719 Total $ 156 797 $ 89 140 S528.634 $ 344 078 Electric Energy Sales (millions of KWH):

Within service area-Retail 4,561 4,607 18,569 18,391 For resale 1,338 1,176 5,154 4,828 Nonterritorial- 22 131 360 721 Total 5 921 5 914 24 083 23 940 Electric Energy Generated and Purchased (millions of KWH):

Stcam-Nuclear 1,435 1,426 4,821 4,494 Steam-Fossil 4,063 4,090 18,576 19,055

' ydro 350 335 937 913 Internal combustion turbines 4 16 203 90 Purchased and interchanged-net -- .203 268 1,015 898 Total 6 055 6 135 25 552 25 450

NOTES TO FINANCIALSTATEMENTS

1. These interim financial 'statements are prepared in conformity with the accounting principles reflected in the financial statements included in the Company's 1974 Annual Report. Reference is also made to that Annual Report for details concerning Preferred Stock, Long. Term Debt, and Common Stock then and presently issued and outstanding. These are interim financial statements and because of temperature variations between seasons of the year and the practice of scheduling down. time and maintenance of electric generating units during other than peak demand seasons, the amounts reported in the Statement of Income for periods of less than twelve months are not necessarily indicative of amounts expected for the year.

2. During the two years covered by the Statement of Income 3,000,000 shares of Common Stock in November 1973 and 4,000,000 shares in January 1975 were issued and sold in public offerings and 371,127 shares in sales under the Company's Stock Purchase-Savings Program for Employees; the Company sold 500,000 shares of Preferred Stock A, $ 7.45 Series, through a private placement in October 1973, and 650,000 shares of Serial Preferred Stock, $ 8.48 Series, in a public offering in February 1974, and 2,000,000 shares of $ 2.675 Preference Stock, Series A, in a public offering in March 1975.

As of March 31, 1975, 887,943 shares of Common Stock were reserved for issuance under the Program.

3. In January 1975, the Company sold and issued through private placement $ 22,350,000 principal amount of First Mortgage Bonds, 11 1/8/e Series due December 1, 1994. The Company has filed a Registration Statement with the Securities and Exchange Commission covering the proposed sale on or about April 30, 1975 of $ 100,000,000 principal amount of additional First Mortgage Bonds, Series due 2005.

4. During 1974, the Company received a $ 4,159,988 refund of federal income taxes paid with respect to the years 1961 through 1968. The balances of retained earnings at March 31, 1973 and 1974 have been restated by such amount.

Received also in connection with the tax refund was $ 2,089,461 of refunded Interest and interest earned applicable to years prior to 1974. Accordingly, such interest (net of income tax of $ 1,002,941) has also been added to the March 31, 1974 balance but has not been allocated to 1973 and prior years since the effect on any one year is not material. Accounts receiv-able, net, for March 31, 1974 was restated to include the refunded tax amount only.

Refundable income taxes of $ 14,942,000 at March 31, 1975 represents primarily carryback of the 1974 net operating loss and estimated tax recoveries related thereto.

5. Some rate increases in effect during the periods covered by these financial statements were not in effect for the entire periods. The following tabulation sets forth the approximate effects on revenues of such rate increases (in thousands of dollars):

D EAU Actual Revenue Increase Realized Annuslized Revenue 3 Months 12 Months Effective Based On Dt Type 1974 Level of Sales 1975 1974 1975 1974 1-6.75 NC Retail ~

$ 51,900 $ 13,1 63 $ 1+12 $ 42,782 $ 1,312 1-15-75 1-2.75 SC Retail stale

~'ho!

9,600 20400 2,415 3887 '" 307 7 JI31 3887 307 S81800 1,619

"'4+00 19,465 1,619 Fossil fuel adjustment clauses:

2.6.74 NC Retail 32,947 1,250 92+08 1,250 241 74 1275 SC Retail Wholesale 7343 9,086 '" 274 20,050 9,086 274

$ 68941 $ 3.143 $ 176,144 $ 3,143 Interim increases terminated January 6, 1975.

Interim increases terminated January 15, 1975.

Being billed subject to refund pending final determinations by Federal Power Commission.

At March 31, 1975, the Company had recorded $ 22,181,000 of deferred fossil fuel cost of which approximately

$ 19,030,000 is subject to further regulatory review and approval which may necessitate adjustments if such reviews so require.

6. In December 1974, the Company's construction program was reduced, including the elimination from its autho-rized construction budget of five proposed new generating units. The Company expects to retain for future use as much value as possible from the approximately $ 15 million (including $ 7 million land costs) it had paid or accrued in connection with such units at March 31, 1975. (Of the total amount, approximately $ 7 million is included in plant held for future use and approximately $ 8 million is included in construction work in progress.) Additionally, the Company will incur costs of an undetermined amount arising out of related contracts for generating equipment. The Company will seek regulatory approval to allocate any charge.offs related to the units over a period of years and to recover them through rates. No provisionhas been recorded in the statement of income for any losses which may result because the significance and amounts are not pre-sently known, although they could be substantial, and the final accounting disposition is not presently determinable.

JAMES S. CURRIE Treasurer Raleigh, N. C. 27602 April 16, 1975