ML19318A329
| ML19318A329 | |
| Person / Time | |
|---|---|
| Site: | San Onofre  |
| Issue date: | 11/16/1979 |
| From: | Hoyt G ANAHEIM, CA |
| To: | |
| Shared Package | |
| ML13302A220 | List: |
| References | |
| NUDOCS 8006190532 | |
| Download: ML19318A329 (27) | |
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Officials of the City ofAnaheim City Council John F. Seymour, Jr., Mayor E. Llewellyn Overholt, Jr., Mayor Pro tem Ben W. Bay, Councilman Miriam Kaywood, Councilwoman Don R. Roth, Councilman Public Utilities Board Kenneth M. Kecsee, Chairman James H. Town send, Vice Chairman Wynn W. Andernn, Member Richard L. Haynie, Mu ser Carl J. Kiefer, Memb *r S. Dale Stanton, Membei Joseph R. White, Member City Staff William O. Talley, City Manager William T. Hopkins, Assistant City Manager George P. Ferrone, Finance Director William P. Hopkins, City Attorney
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Public Utilities Department 1979 and1978 Fiscal Year Highlights WATER ELECTRIC Year Ended June 30, Year Ended June 30, 1979 1378 1979 1978 OPERATIONS Sales 16.1 billion 14.1 billion 1.7 billion 1.6 billion gallons gallons kilowatt hours kilowatt hours System peak requirements 79.9 million 77.3 million 395,690 347,600 gallons gallons kilowatts kilowatts Customers (Average for the year) 48,451 47,857 80,038 77,439 FINANCIAL Revenue from water and electric sales $ 7,389,000 $ 5,979,000 $70,842,000 $64,038,000 Water production and purchased power costs $ 3,294,000 $ 2,572,000 $59,198,000 $51,747,000 Net income transferred to retained earnings $ 1,197,000 $ 446,000 $ 4,799,000 $ 6,656,000 Transferred to City of Anaheim general fund $ 384,000 $ 530,000 $ 3,624,000 $ 2,568,000 Total assets, less accumulated depreciation $49,948,000 $46,445,000 $60,142,000 $59,202,000 Table of Contents Highlights 1 Report of the General Manager 2 The 1978-79 Water Year 4 Water Statistics 6 Water Sales Comparison 7 The 1978-79 Electric Year . 8 Electric Statistics 10 Electric Sales Comparison 11 Water and Electric System Map 12 Public Utilities Department Finances 14 Water Utility Audited Financial Statements 15 Electric Utility Audited Financial Statements 20 1
Report o the GeneralManager 70 the The Department is proud of the At the close of the fiscal year, Cali-fact that the July 1,1978 water rate fornia regulatory agencies warned of C//f ManagC/; action represented the first water possibic late summer electric capacity base rate increase since 1971 and the shortages, particularly in the northern City Counci[, June i.1979 eiectric rate increase portion of Caiirornia which might was the first in 18 months. result in statewide requests for load
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Rev.ised electric rates were adopted by curtailment and even rolling blackouts.
the City Council following the f rst New clectric generating resources must
""gj pgop je gf gj,e formai rate proceeding conducied by be developed to meet projecrea road the Public Utilities Board in accord- growth, maintain adequate reserve f OhnahC[In ance with provisions of the federal margins and reduce dependence on It is my pleasure to submit the Public Utilities Regulatory Policies Act oil-fueled generating capacity.
f 8 WRN.
1978-79 Annual Report of the City of Over the past few years the following Anaheim Public Utilities Department, In November, Anaheim voters author- electric generating projects under which includes a review of operations ized a $14,000.000 Water Revenue study by California electric utilities, and financial results for the fiscal year Bond issue in crder to help finance including Anaheim, were abandoned, ended June 30,1979. water system capitalimprovements mostly because of regulatory problems:
pl nned for the 1980's. Kaiparowits 3,000,000 kw 1976 Among the more significant . .ents of the 1978-79 fiscal year were increases Construction was started on the $110 San Joaquin 2,600,000 kw 1978 in water and electric rates, voter million Diemer Intertie, a major new Sundesert 1,900'000 kw 1978 approval of a $14,000,000 Water source of supply for the Water System.
Revenue Bond authorization, higher Palo Verde 4&5 1,270,000 kw 1979 The project, be.ing constructed under a purchased power costs and accelerated .,
Anaheim s first major electric
.. . Jomt powers agreement between efforts to participate m. regional generation resource is expected to electric generating projects. Anaheim and nine other Orance '
County water agencies, will provide be a 36,520 kilowatt share of In order to counter the effects of Anaheim with its eighth source of San Onofre Nuclear Generating increasing operating and capital costs, Metropolitan Water District water Station. At June 30,1979 the City it became necessary to take appro- in 1981. Anaheim's share of this was waiting for the Nuclear priate rate action to assure adequate project is estimated to cost $3.3 Regulatory Commission (NRC) to water and electric revenues. Water million. approve the transfer of our owner-rates were increased 12.5% and elec- . ship interest from Southern California Electncal system plannen are fore-tric rates increased 4.7%. Both rate Edison to Anaheim before issuing <
c sting that during the 1980's electric actions were based upon extasive , electric revenue bonds to finance energy use in Anaheim will rise 3.4%
cost of service studies. Anaheim's share of project costs.
and electric demand 3.3% annually, f
i 2
A decision is expected in 1979-80 EfTorts also continued on the legal withstanding the continued growth of regarding execution of a long-term front to help secure the lowest the water and electric systems.
contract to purchase a 10.2% share of cost reliable electric power supply for The accomplishments of the Depart-the output of the 3,000,000 kilowatt our customers. The City is mvolved Intermountain Power Project, a Utah as plaintifTs or intervenors in litigations
- * "I "* E ** .
coal-fueled generating station. Other before the Federal Energy Regulatory ; h ity h ana er ho projects which are bemg studied by Comm,ission (FERC), the Nuclear provides the leadership for Anaheim's Anaheim and others melude: White Regulatory Commission (NRC), the executive management team.
Pine, a coal-fueled project near Ely, United States Circuit Court of Appeals Nevada; California Coal, a proposed in San Francisco and Washington, I am taking this opportunity to express coal. fueled project in California and D.C., and the United States District my appreciation to the City Council the Balsam Afcadow Hydroelectric Courts in Los Angeles and Phoenix. for their encouragement and Project near Fresno, California. The actions range from a suit against support and to thank the members it should be noted that, with the excep- the Secretary of the Interior to obtain of the Public Utilities Board for Federal power to a treble damage anti- their contributions to the accomplish-tion of San Onofre Nuclear Generating Station Units 2 and 3, which are under trust suit against the Edison Co. ments of the past year.
construction, all of these proposed The FERC ordered the maximum Also, I am particularly proud of the projects are the subject of feasibility allowable suspension of a wholesale outstanding service rendered to studies and no decision has been made rate increase Edison filed to the people of Anaheim by the man-to go ahead with any of them. become efTective March 16,1979, agement team and personnel of We are continuing to purchase thereby saving our electric the Public Utilities Department, economy energy from Nevada Power customers approximately $600,000.
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Company at costs which are less The Department continues aggressive than the costs of equivalent amounts programs to keep operating costs down of energy purchased from Edison. in order to hold utility rate increases Our savings as a result of these purchases were $3.4 million through to minimum levels without impairing W.
our ability to maintain reliable "
June 30,1979. We expect t service. Stalling has been maintained save an additional $1.1 million by """ " 8" at a relatively constant level not-June 30,1980.
Public Utilities Department Management Gordon W. Hoyt, General Manager Edward G. Alario, Assistant General Manager Darrell L. Ament, Management Services Manager Edward E. Dumon, Utilities Operations Manager Richard E. Armand, Utilities Field Superintendent George H. Edwards, Electrical Engineering Manager Ray A. Auerbach, Water Engineering Manager Beatrice A. Staley, Conservation Manager James E. Willis, Customer Service Manager 3
The 1.978-79 Water Year A century of serving the water needs gradual increases in the water com- per minute or enough water in one of Anaheim was achieved by the modity adjustment - representing the minute to supply the water needs of a Water System during the 1978-79 pass through of certain portions of typical family of three for one fiscal year. The original water system, water production costs which are entire month.
established by a vote of the people in generally beyond the control of water 1879, consisted of a 20,000 gallon system management.
Th M Wim PM is .
redwood storage tank and one well expected to be at des.ign capacity run by the villare pumpman, less than in rder to pay the m.ercased cost of under peak day demand conditions electricity to pump water, the water by the summer of 1980. The present a' mile of wooden water main and a horse drawn water wagon. Several emnm dity adjustment billing factor outlook is that the water system years later, another 20,000 gallon red- was incre sed about 3.5% January 1, can expect to receive water through 1979. the Diemer Intertie by early 1981.
womi storage tank was constructed and in 1890 the first 16 water meters were installed. Water Consumption. After two Water Conser ation. The Department
" is c ntinuing to stress long-range Anaheim's pioneer colonists would be f 11 wed by a year of near remd ra.m- water conservation programs designed amazed by the more than 16.1 billion fall, water use m 1978-79 returned g to eliminate waste and increase the n rly to the 1975-76 pre-draght efficient use of water. To promote water during 1978-79 and the 993 million gallons storage capacity of today's FN conserv tion, printed materials have modern, eflicient water system. 16.1 bilhm gaHm, an increase of 14.2 been mailed with utility billings to all i percent in total water use from the residential, commercial and industrial On November 7,1978, voters gave 1977-78 year. Average per capita customers reminding them of the their approval to a $14,000,000 Water water use was 204 gallons daily based important need to conserve our water Revenue Bond authorization to help on a population of 216,100. resources. Utility billinserts also fund water system capitalimprove- emphasize that saving water saves ments required over the next six to energy - energy required to run Water Supply. Ground water pumping seven years. The major area of expen- water system well and booster pumps from Anaheim's wells accounted for ditures is planned for construction of and the huge pumps of the Colorado 53% of Anaheim's water supply.
reservoirs and pumping capacity t River and State Water Project aque-imported water, purchased from the provide adequate presures and meet Metropolitan Water District of Southern ducts which supply Southern Cali-emergency storage and fire flow re- fornia with imported water.
California, accounted for the quirements throughout the City. Most remaining 47% of water supplied of these capitalimprovements are customus .m 1978-79.
necessitated by increasing demands Major Construction. Construction (
caused by growth, but some facilities E#" " '#"
Anaheim executed agreements with are needed to improve the existing the Municipal Water District of an um ng aum " 9""P" just We system- the close of the fiscal year.
Orange County, the City of Orange The facility is part of the high
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Mates. In order to assure adequate . elevation pumping and reservoir revenues for operation of the water ",," "E[g"nstructio
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2 neh system and to provide increased funds **" " #"" Y " "'" "
water supply pipe line began in March for needed capital improvements, an overall 9% rate increase was adopted, 1979. Anaheim is contracting for
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30 cfs capacity in the Diemer Intertic effective July 1,1978, by the City at a cost of $3.3 million to serve Land developers pay for the high Council as recommended by the Pubh,c present and projected population in the elevation facilities as they are Utilities lloard and Department staff.
Santa Ana Canyon service area and required. Developers are reimbursed Even with the July I rate increase, to provide a backup supply for the through a surcharge on water bills of Anaheim's water rates remained Lenain Filtration Plant below Walnut customers served by the high elevation among the lowest in Orange County. Canyon Reservoir. The 30 cfs facilities. Once installed, facilities Increases in water charges from 1971 of capacityin the DiemerIntertie become the property of the to July 1,1978 have been limited to translates into about 13,500 gallons water system.
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The Ilidden Canyon project Water Quality. Constant surveillance The Future. In the next five years, consists of a two million gallon is provided to protect Anaheim water the water system plans to invest buried concrete reservoir and pumps sources against contamination. More approximately $11 million in new facil-designcd to lift water 220 feet to than 3,500 physical, biological and ities. Included are capital improvements the one million gallon Eastridge radiological examinations and analyses to the water supply and distribution Reservoir and another 200 feet above of the Anaheim water supply were systems. Preliminary engineering and Eastridge Reservoir into a closed completed during the year. In addition site selection studies were completed system sening homes along to samplings and tests, w hich are and design work was initiated on a the ri:lgeline. conducted by the Department's own two million gallon reservoir at Lenain Water Quality Section, MWD, the Filtration Plant.
Continuation of the water main Orange County Water District and the replacement / relining program under Orange County ifealth Department The Department, through its ongoing ilousing and Urban Development maintain rigorous sampling and testing c nservation program, will continue to Commumty Illock Grant Funding programs of imported and ground seek additional ways to climinate resulted m replacement / relining of water sources. wasteful uses of water. Future in-more than 10,000 feet of main during- creases in water demand will be met the year for a total of 5.1 miles since by purchasing additional MWD sup- I the start of the program in 1977. plies and constructing new wells. l l
l l
The1978-79 TVater1]ollar i
Soure2 of Revenue:
62( Residential water sales 29( Commercial and Industrial water sales 2( Municipal water sales I Ip Irrigation water sales ~
4(
2(
2( Other water sales if 4( Other 29(
43p
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~
Distribution of Revenue: ~
43( Watersupply 37( Operation and maintenance y 5( Transfer to city generalfund 2( Debt service
' 13(
13/ Available for additions and replacements to the system 37p <
2p 5p 5
Water Statistics 1978-79 1977-78 1976 77 1975 76 1974-75 1973-74 USE OF WATER Anaheim Population Served 208,500 204,800 200,100 196,400 191,800 187,400 Population Served Outside City 7,600 7,000 6,000 5,600 5,700 6,800 Total Population Served 216,100 211,800 206,100 202,000 197,500 194,200 Services at Year End . 49,253 48,493 47,495 45,709 43,403 42,397 Total Water Sales, billion gallons 16.1 14.1 15.8 17.0 14.5 13.8 Average Daily Sales Per Capita, gallons . .... 204 182 210 230 201 195 GROWTH OF SYSTEM Utility Plant (less accumulated provision for depreciation)* $45,590,000 $43,145,000 $41,123,000 $39,424,000 $20,293,000 $ 19,267,000 Active Wells 35 35 35 36 35 35 Reservoirs . . . .. 7 7 6 6 6 6 Untreated Water Storage, million gallons . . 920 920 920 920 920 920 Treated Water Storage, million gallons . 73 73 72 72 72 72 Distribution Lines, miles 620 607 605 580 559 547 Fire Hydrants 5,600 5,354 5,306 5,288 5,147 4,983 WATER SUPPLY Capacity-From hietropolitan Water District of Southern California Connections, GPhi . . 43,875 43,875 43,875 43,875 43,875 43,875 From Water System Wells, GPhi (annual average) 38,406 34,621 35,839 37,533 38,269 37,720 <
Filtration Plant Capacity, GPhi .. 10,417 10,417 10.417 10,417 10.417 10,417 Total Supply Capacity, GPhi . .. 92,698 88,913 90,131 91,825 92,561 92,012 hfaximum Daily Distribution, million gal!ons 79.9 77.3 77.0 77.0 75.2 72.0 Average Daily Distribution, million gallons .. 49.1 44.0 47.6 48.9 43.6 37.5
- During the year ended June 30,1977, the City obtained an . Mor,ul cost appraisal of its property, plant and equip-ment from a professional appraisal rm, Marshall and Stevens, Inc., which included a physical inventory of assets and a determination of their estimated remaining useful lives. Accordingly, Utility Plant (less accumulated provision for depreciation) reflects adjustments at June 30,1977 and 1976 and in subsequent years resulting from that appraisal.
6
Water Sales Comparison i
Commercial All and Classes Residential Industrial Irrigation .\lunicipal Other Combined Racnue from sales of water:
Year ending June 30 -
1979 $ 4,737,000 $2,207,000 $105,000 $ 168,000 $172,000 $ 7,339,000 1978 3,777,000 1,863,000 71,000 102,000 166,000 5,979,000 Increase $ 960,000 $ 344,000 S 34,000 $66,000 $ 6,000 $ 1,410,000 Percent increase 25.4 18.5 47.9 64.7 3.6 23.6 U;its of 100 cubic feet sold:
Year ending June 30 -
1979 12,931,949 7,310,694 428,816 593,219 288,226 21,552,904 1978 11,320.290 6,338,224 362.076 543,007 297,436 18,861.033 !
972,470 66,740 50,212 (9,210) 2,691,871 l Increase (decrease) 1,611,659 Percent increase (decrease) 14.2 15.3 18.4 9.2 (3.1 ) 14.3 As crage hilling price per 100 cubic feet:
Year ending June 30 -
1979 $ .3663 $ .3019 $ .2449 $ .2832 5 .5968 $ .3428
]
1978 .3336 .2939 .1961 .1878 .5581 .3170 1 increase $ .0327 $ .0080 $ .0488 $ .0954 5 .0387 5 .0258 Percent increase 9.8 2.7 24.9 50.8 6.9 8.1 Ascrage number of customers:
Year ending June 30 - ;
1979 42.469 4,454 83 407 1,038 48,451 l
1978 41,500_ 4,277 _
93 392 1,595 47,857 )
Increase (decrease) 969 177 (10) 15 (557) 594 Percent increase (decrease) 2.3 4.1 ( 10.8) 3.8 (34.9) 1.2
, As crage annual use per customer in units of 100 cubic feet:
Year ending June 30 -
1979 305 1,641 5,166 1978 273 1,482 3,893 Increase 32 159 1,273 l
Percent increase 11.7 10.7 32.7 l l
l 7
The1978-79 Electric Year The fiscal year 1978-79 marked the primarily was the result of higher to shift operation of their pool motors 84th year that the municipally-owned purchased power costs. to off peak hours. As of June 30, and operated electric system has 1979, more than 1400 customers rep-served the light and power needs of Energy Conser ation. During the resenting a load of niore than 2,500 Anaheim. The system has grown six-years that have clapsed since the kilowatts were participating in the from 498 lights in 1895 to the third OPEC Oil Embargo, industry and voluntary program.
largest publicly-owned electric system large commercial customers - Power Supply. The system purchased in California which in 1978-79 sold 1.7 those with the largest bills - generally a total of 1,834,202,304 kilowatt billion kilowatt hours to over 80,000 have made the greatest strides in hours of electricity for delivery to customers. The system has been reducing electric energy consumption. customers throughout Anaheim in fundamentally a subtransmission and 1978 a 6.5 percent increase Through printed materials mailed with distribution system, although the over the prior fiscal year. About 82 utility billings, the Department con-Department generated all of its own percent,or 1,501,098,304 kilowatt tinued to promote consumer aware-power from 1895 to 1916 and part of hours were purchased from Southern ness of the need for conservation its own power from 1927 to 1930. California Edison Company. The measures and effective steps which In 1916 the City entered into an remaining 18 percent,333,104,000 can be taken by individual customers agreement to purchase electricity at kilowatt hours, was purchased from to reduce their electric use.
wholesale rates from the Southern Nevada Power Company under a California Edison Company rather than Tlie department emphasized its com- four-year economy energy agreement.
generate its own power and has mitment to effective conservation On June 12,1974, comb.med customer continued to purchase the bulk of its programs with the establishment of the ver from Edison through fiscal year Conservation Services Division.
d of 00 During the year, the electric system kilowatts, up 48,000 kilowatts from The cost of electricity purchased by the converted 537 City incandescent street the 1977-78 peak, an increase of Department for delivery to Anaheim light units to more eflicient energy 13.8 percent.
electric consumers increased 14.4 saving units for an estimated savings . . .
atne system is percent in 1978-79. The soaring price of 50,000 kilowatt hours annually. A "".""
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of fuel oil continued as the primary new policy was developed and adopted "" .'".* "E ""
cause of higher wholesale power bills. to require more efficient high pressure E 'P "
co and d i In order to case the impact of contin- syium street lights for all new instal- generating plants with other utilities.
I tions and on conversions wherever ually rising power costs, the Depart-pr ctical Mnt majm resoura which is ment continued its efforts to obtain ,
expected to become ava,lable i will be k electricity from alternate sources I,oad Management. California's a 36,500 kilowatt share of San Onofre meludmg Jomt participation m coal potential statewide capacity Nuclear Generating Station and nuclear electne generating . deficiencies of the past summer (SONGS), Units 2 and 3. SONGS projects. The Department anticipates focused attention on the need for Units 2 and 3, consists of two acquiring an ownership m San Onofre additional generating capacity as well 1,100,000 kilowatt generating units Nuclear Generating Station Units 2 as the need to reduce peak electric now under construction on an 84-acre and 3 in 1979-80. Other projects , demand. site approximately three miles south bemg looked at which should provide 3
, of San Clemente, California and cost-savings compared to continued The Department is setting an example within the U.S. Marine Corps Base purchase from the Edison Company, through its ongoing peak shavmg
, at Camp Pendleton. Full commercial include the Intermountam Power program involvmg removal of water operation of Units 2 arid 3 is sched-Project, the White Pine Project, and pumps from service during afternoon uled for October,1981 imd January' the California Coal Project. peaks and electric system voltage 1983, respectively. R. W. Beck and control. More than 37,000 kilowatts The Department also for the first t.ime were climinated from monthly peaks
^** * " M n ng enginun,in a took part in formal evidentiary hearmgs man stu@ estunateg dat Anaheim's during 1978-79 representing power following application to the Public Power supply costs will be $22 milhon supply cost savings of more than Utilities Board for a general retail $166,000. less v r the 10-year period from rate increase. The hearings complied 1981 to 1990 with an ownership with provisions of the federal Public The Department implemented an interest in San Onofre compared to Utility Regulatory Policies Act of 1978 incentive program to encourage cus- purchasing Anaheim's entire power (PURPA). The retail rate increase tomers with swimming pools and spas supply from Edison.
8
The feasibility study was completed The ciectric system studied other Yorba Substation, the electric sys-for the proposed Intermountain Power projects during the year including tem's castern most 69,000/12,000 volt Project (IPP), a 3,000,000 kilowatt the Palo Verde Nuclear Generation distribution substation serving com-Utah coal-fueled electric generating Station, Units 4 and 5; the White mercial, industrial and residential plant. The United States llureau Pine (Coal) Project, near Ely, loads in the rapidly developing Santa of Land hianagement was close to Nevada; the California Coal Ana Canyon, was expanded to design issuing the Draf t Environmental Impact Project; Cholla Power Plant, Unit 3, capacity with the addition of a Statement (EIS) at the end of the of Arizona Pt.blic Service Company; 30,000/40,000 ksa transformer and fiscal year. The Final EIS was expected San Juan Power Plant, Unit 4, of equipment for 5 new circuits, to be issued in November with a Public Service Company of New An Environmental Impact Report was hiexico; and the Ifalsam hieadow decision by the Secretary of the certified by the City Council and land Interior of the United States expected Ilydroelectric Project. purchased for construction of a new sometime around the end of 1979. 69,000/12,000 volt distribution sub-Distribution. The electric system .
It is contemplated that the Inter- added 25 circuit miles of 12,000 volt 19mnt serv Present and future ,
mountain Power Agency (IPA), a # " '" " # E '"
distribution lines during the fiscal "
political subdivision of the State of "" # "I "
year of which 24 miles were installed "'" "* """ l Utah created for the express purpose underground. Over 40,000 kilovolt of constructing and financing the amperes (kva) of distribution EE "" #
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project, will issue tax exempt transformer capacity was added and l
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revenue bonds to finance construction I
258 new street lights were installed. the new substation which is expected of the project. The bonds will be I to be placed in service by summer secured by long-term contracts with f 1982.
cach participant in the project, Anaheim currently has a 10.2 percent share in the hiembership and Study Agreement.
The 1978-79 Electric Dollar 25(
f 27(
Source of Revenue: l 27( Residential kwh sales .
25( Commercial kwh sales -
44( Industrial kwh sales 2(
1(
1( Street lighting kwh sales jjp ,
1(
1( Other kwh sales 2( Other 44f Distribution of Revenue:
82( Purchased power supply 3 St Operation and maintenance 82( -
St Transfertocitygeneralfund 3t f
e 2(
2( Debt service ^
, 5p 3r Available for additions and ~
4 replacements to the system ~ '
^
8(
9
Electric Statistics 1978 79 1977 78 1976-77 1975 76 1974-75 1973 74 PURCHASED POWER SUPPLY Southern California l'dison Company 1,501,098,304 1,472,686,902 1,305,991,471 1,541,609,451 1,513,209,643 1,430,925,598 Nevada Power Company 333,104.000 250.049,000 355,347,000 41,651,000 - -
System Total 1,834,202,304 1,722,735,902 1,661,338,471 1,583,260,451 1,513,209,643 1,430,925,598 System peak demand, Kilowatts . 395,600 347,600 328,000 330,400 304,500 285,900 ELECTRIC USE Average number of customers Residential , 70,386 68,380 66,957 63,772 61,707 56,016 Commercial . ,, 9,029 8,457 8,002 7,347 7,008 6,351 Industrial , ,, , 438 407 383 365 370 353 Other 185 195 19? 200 185 143 Total-all classes 80,038 77,439 75,539 71,684 69,270 62,863 Residential KWII sales . 422,803,010 388,637,804 376,795,404 355,796,136 343,913,281 308,253,228 Commercial KWil sales 378,858,412 357,013,516 337,510,168 306,531,296 283,046,178 253,495,326 Industrial KWil sales 893,693,660 846,012,531 827,016,260 813,658,320 793,242,236 727,136,954 All other KWil sales 31,399.789 29,268.877 32,847,677 33,592,052 32,196.694 30,567,700 Total Kilowatt flour sales 1,726,754,871 1,620,932,728 1,574,169,509 1,509,577,804 1,452,298,389 1,319,453,208 Avtrage Annual Kilowatt flours per Residential Customer 6,007 5,684 5,627 5,579 5,573 5,503 GROWTH OF SYSTEM Utility Plant (less accumulated provision for depreciation)* $ 37,102,000 $ 32,711,000 $ 33,428,000 $ 29,557,000 $ 34,397,000 $ 28,276,000 Transmission - 69 KV Circuit hfiles 44 44 44 44 40 37 Distribution -
Overhead Circuit h!iles 871 870 869 863 861 855 Underground Circuit h!iles 272 248 210 182 157 131 Transformer Capacity 220 Ky to 69 Kv 840,000 840,000 840,000 840,000 840,000 -
69 Ky to 12 Ky 492,000 457,000 417,000 417,000 417,000 417,000 12 KV to Customer . 687,000 647,000 607,000 565,000 546,000 514,000
- During the year ended June 30, 1977, the City obtained an historical cost appraisal of its property, plant and equip-ment from a professional appraisal firm, Marshall and Stevens, Inc., which included a physical inventory of assets and a determination of their estimated remaining useful lives. Accordingly, Utility Plant (less accumulated provision for depreciation) reflects adjustments at June 30,1977 and 1976 and in subsequent years resulting from that appraisal.
During the year ended June 30,1979, the City elected to record its unamortized project costs as another asset rather than utility plant. Accordingly, Utility Plant reflects this adjustment at June 30,1978 and in subsequent years.
10
Electric & des Comparison Public street arid All highway classes Residential Commercial Industrial lighting Other combined Ra enues from sales of electricit3:
Year ending June 30 -
1979 $ 19,407,000 $ 18,110,000 $ 32,091,000 $ 694,000 $ 540,000 $ 70,842,000 1978 17,289,000 16,471,000 29,178,000 642,000 458,000 64.038,000 Increase $ 2,118,000 $ 1,G39,000 $ 2,913,000 $ 52,000 $ 82,000 $ 6,804,000 Per cent increase 12.3 10.0 10.0 8.1 17.9 10.6 Ellow:st hours sold: ,
Year ending June 30-1979 422,803,010 378,858,412 893,693,660 17,088,408 14,311,381 1,726,754,871 1978 388,637,804 357,013,516 846,012,531 16,312,022 12,956,855 1,620,932,728 Increase 34,165,206 21,844,896 47,681,129 776,386 1,354,526 105,822.143 Per cent increase 8.8 6.1 5.6 4.8 10.5 6.5 Ascrage billing price per kilowcit hour:
Year ending June 30 -
1979 $ .0459 $ .0478 $ .0359 $ .0406 $ .0377 $ .0410 1978 .0445 .0461 .0345 .0394 .0353 .0395 increase $ .0014 $ .0017 $ .0014 $ .0012 $ .0024 $ .0015 Per cent increase 3.1 3.7 4.1 3.0 6.8 3.8 Av; rage number of customers:
Year ending June 30-1979 70,386 9,029 438 98 87 80,038 1978 68,380 8,457 407 101 94 77,439 Increase (decrease) 2,006 572 31 (3) (7) 2,599 Per cent increase (decrease) 2.9 6.8 7.6 (3.0) (7.4) 3.4 Average annual use per customer in kilowatt hours 2 Year ending June 30 -
1979 6,007 41,960 2,040,396 1978 5,684 42,215 2,078,655 Increase (decrease) 323 (255) (38,259)
Per cent increase (decrease) 5.7 (0.6) (1.8) 11
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W Legend Existing 69,000 volt Transmission Lines Proposed 69,000 volt Transmission Lines O Existing Distribution Substation C Proposed Distribution Sub3tation Southern California Edison 220,000 volt Transmission Lines O southern caiirornia Eaison raciiiiies
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Public Utilities Department Finances As of July 1,1978, the City elected above the prior fiscal year. Sales of Investments in construction of to report its Water aad Electric 16.1 billion gallons in 1978-79 wcre new electric system facilities totaled Utility funds under California Pub!ic 2 billion gallons over 1977-78 sales. $5,655,000 for fiscal 1978-79.
Utilities Commission (PUC) and Net income of the Water Ut:lity Fund Bonds outstanding at the year end Federal Energy Regulatory Comm.is-increased to $1,197,000 from the totaled $1,285,000 in the Water Utility sio,i (FERC) industry accountmg 1977-78 loss of $156,000. This was Fund and $18,100,000 in the Electric guidelines, respectisely. In accordance due primarily to the increase in Utility Fund. N!aturing principal with the guidelines, depreciation on operating revenue, resulting from higher payments on bonds of $120,000 and assets acquired from contributions in i water rates adopted July 1,1978 and $3,800,000 respectively, were paid aid of construction is not reflected a change in the method in accounting from the water and electric funds.
m net income but rather is transferred for depreciation on contributions.
directly to the related contributions Total assets of the Public Utilities account. For the year ended June 30, During the year, a total of $3,323,000 Department at June 30,1979 were 1979, certain other account classi- was invested in water system capital approximately $110 million -
fications have been changed to reflect construction. $49,948,000 assigned to the water recommendations set forth in PUC fund and $60,142,000 to the e!cetric Electric Utility Fund operating and FERC guidelines. For comparat.ive fund.
mvenues totaled $71,173,000, $6.3 purposes, the prior year on the following financial statements has been
" ..*"" ve the prior fiscalyear. Sales The Public Dilities Department pays f 1.7 bilh.on KWii in 1978-79 wem all costs of o eration and debt service reclassified to conform to the 1978-79 106 million KWil over 1977-78 sales, presentation. and part of the cost of capital Net income of the Electric Utility improvements from current res enues.
Conformance with PUC and FERC Fund decreased to $4,799,000 from the The remainder of the cost of water and accountmg gmdelines provides the 1977-78 figure of $6,656,000. This electric system capital improvements water and electric systems, respectively' is met through the sale of revenue was due primarily to increased power with a good basis for industry supply costs. bonds and from contributions in aid of comparability. Such comparability construction.
more vividly demonstrates the Purchased power costs increased advantages of the City owning and $ 7,451,000 to $59,198,000 in 1978-79 In addition to meeting all costs of operating the water and electric systems for 1.8 billion kilowatt hours. While operation from current revenues, and perhaps will enhance water and the cost of purchased power was up including payment to the City for electric revenue bond ratings. 14.4%, th- 111.5 million additional services rendered by the various muni-Operating revenues for the water and kilowatt hours purchased represented cipal departments, the Public Utilities electric utility funds totaled $78.7 nly a 6 % inemase ver 1977-78. Department paid $4,008,000 into million, an increase of $7.9 million 11 gher fuel oil costs incurred by the the General Fund of the City m support over the prior fiscal year, clutne system's primary electric of general City government -
supplier and passed on to the electric $3,624,000 from Electric Utility Water Utility Fund operating revenues system was the principal cause of Fund and $384,000 from the Water totaled $7,493,000, $1.5 million the increased purchased power bills. Utility Fund.
i i
/
14
- 1
City ofAnaheim Water Utility Fund Balance Sheet June 30, 1979 1978 (In thousands)
ASSETS Utility plant:
Land $ 1,423 $ 1,423 Source of water supply 3,950 3,808 Pumping 1,479 1,474 Transmission and distribution 48,167 46,509 General 488 488 Construction work in progress 1,667 184 57,174 53,886 ,
Less-accumulated depreciation 11,584 10,741 l 45,590 43,145 l Restricted cash and investments (Note 3) 981 770 l l
Current assets:
Cash and investments 1,762 1,221 Customer and other accounts receivable, less allowance for doubtful accounts of $21,000 in 1979 and $26,000 in 1978 1,155 792 Materials and supplies, at average cost 236 247 Purchased water la storage. 221 195 Prepayments 3 75 3,377 2,530 Total aucts $49,948 $46,445 l l
EQUITY, LIAHII,ITIES AND OTIIER CREDITS Equity:
Fund balance transferred $ 19,280 $19,280 Retained deficit (4,661) (5,474)
Total equity 14,619 13,806 Revenue bonds,less current ; artion (Note 3) 1,155 1,285 Total capitalization 15.774 15,091 l
l Current liabilities (payable from restricted assets):
i Current portion of revenue bonds 130 120 Accrued interest on bonds 31 34 161 154 l
Current liabilities (payable from current assets):
Accounts payable and accrued expenses 1,669 670 Customer deposits 577 902 2,246 1,572 Total current liabilities 2,407 1,726 Advances for construction 90 Contributions in aid of construction (Note 2) 31,677 29,628 Total equity, liabilities and other credits $49,948 $46,445 See accompanying Notes to Financial Statements 15
City ofAnaheim Water UtilityFund Statement ofIncome ,c,, c ,,,,, , ,,, e ,,,
1979 1978 (In thousands)
Operating revenues:
Sales of water (Note 4) $ 7,389 $ 5,979 Other operating revenues 104 5 Total operating revenues _ 7,493 5,984 Operating expenses:
Co t of water 3,294 2,572 Other operations (Note 5) 1,683 1,661 Maintenance 1,185 1,049 Depreciation (Note 2)
Assss acquired by own funds 292 317 Assets acquired from contributions 602 Total operating expenses . 6,454 6,201 Operating income (loss) 1,039 (217)
Olleer income (expense):
Interest income 221 129 Interest expense (63) (68) 158 61 Net income (loss) (Note 2) 1,197 (156)
Adc': Depreciation on contributions (included in depreciation above) 602 Net income transferred to retained deficit 5 1,197 $ 446 Pro forma net income assuming new method of accounting for depreciation on contributions is applied retroactively (Note 2) $ 1,197 5 446 Statement of Changes in Retained Deficit Balance at beginning of year (S 5,474) ($ 5,390)
Nei iwome transferred to retained deficit 1,197 446 (4,277) (4,944)
Transfer to the general fund of the City (384) (530)
Balance at end of year ( $ 4,661 ) (S 5,474)
See accompanying Notes to Financial Statements l
16
City of Anaheim Water UtilityFund Statement oIChanaes J b in FinancialPosition Year ended June 30, 1979 1978 (In thousands)
Financial resources were prosided by:
Operations -
Net income (loss) $1,197 ($ 156)
Charges to income not involving working capital-Provision for depreciation on assets acquired from contributions 602 1,197 446 Provision for depreciation on assets acquired by own funds 292 317 Resources provided by operations 1,489 763 Contributions in aid of construction 2,643 3,099 Advances for construction 90 Disposal of plant and equipment 187 Decrease in restricted cash and investments 5 4,222 4,054 Financial resources were used for: l Expenditures for plant and equipment 3,323 3,129 l Revenue bonds becoming current . 130 120 Transfer to the general fund of the City 384 530 Increase in restricted cash and investments 211 Other 8 3 4,056 3,782 Increase in working capital $ 166 $ 272 Increase (decrease) in components of working capital:
Cash and investments S 541 ($ 711)
Customer and other accounts receivable 363 364 Materials and supplies (11) 23 Purchased water in storage 26 Prepayments (72) 4 Net change in current assets 847 (320)
Current portion of revenue bonds (10) (5)
Accrued interest on bonds 3 3 Accounts payable and accrued expenses (999) 162 Customer deposits 325 432 N t change in current liabilities (681) 592 Increase in working capital $ 166 $ 272 See accompanying Notes to Financial Statements 17
Cityo Anaheim Water Utility Fund Notes to Financial Statements NOTE 1-Summary of Significant Accounting Policies: functions with the Electric Utility. Generally, the cost of Basis of accounting these functions is allocated on the basis of benefits The Water Utility Fund was established June 30, provided to the Water and Electric Utilities.
1971, at which time the portion of the City of Anaheim's Debt expenses General Fund equity relating to water utility Debt premisms, discount and issue expenses are operations was transferred to Water Utility equity. The deferred and amortized to income over the lives of the financial statements of the Water Utility are presented in related bond issues.
conformity with generally accepted accounting principles Pen 5mn Pl an and accounting principles and methods prescribed by the All full-time City employees are members of the State California Public Utilities Commission (PUC). The of California Public Employee's Retirement System.
Water Utility is not subject to the regulations of such The City's policy is to fund all pension cost accrued; such commission. costs to be funded are determined annually as of Utility plant and depreciation July I by the System's actuary. Unfunded prior service The cost of additions to utility plant and of mt is bemg funded over 25 years ending June 30,2000.
. . Vacation and s,ick lease replacements of retirement units of property is capitalized.
Utility plant is recorded at cost, or in the case of . The City does not accrue accumulated vacation ,
contributed plant, at fair value at the date of the .ar sick leave, but rather expenses these costs as paid. It contribution, except that assets acquired prior to July 1, is the pohey of the City to pay all accrued vacation 1977, are recorded at appraised historical cost. Cost p y when an employee retires or is terminated and includes labor; materials; allocated indirect charges such as onehurth of the accrued sick leave when an employee retires. At June 30,1979, accumulated unused vacation engineering, supervision, construction and transportation equipment, retirement plan contributions and other and sick leave did not exceed a normal year's "CC"*""' "'
fringe benefits; and certain administrative and general expenses. The cost of relatively minor replacements Transfers to the general fund of the City is included in maintenance expense. When assets are Article Xll of the City Charter wn amended by a v te of the electorate etTective December 27,1976 to actired the remaining net book value or any excess (or deficiency) of sales proceeds over (or under) net provide that transfers to the General Fund of the City m book value at the date of sale is recorded in fiscal year 1977-78 sha'l be equal to, or less than 8% of accumulated depreciation. the gross revenue carned in the fiscal year 1976-77, this percentage was reduced to 6% m fiscal year 1978-79 for Depreciation of utility plant is provided by the gross revenue of 1977-78, and to 4% in fiscal year straight line method based on the estimated service lives [979 80 and succeeding years. Such transfers are not in of the properties: lieu of taxes and are recorded as distributions of retained Transmission and distribution earnings.
plant 20 to 75 years NOTE 2- Accounting and Classification Changes:
Other plant and equipment 3 to 50 years As of July 1,1978, the City elected to report its Water Depreciation on contributed assets is charged directly Utility under PUC industry accounting guidelines. In to contributions in aid of construction. accordance with the guidelines, depreciation on assets Cr.sh and insestments acquired from contributions in aid of construction is not The City pools idle cash from all funds for the r flected in net income but rather is charged directly to purpose of increasing income through m. vestment actis.ities.
contributions m aid of construction. The ellect of this change in the method of accounting for depreciation Investments are carried at cost, which approximates market value. Interest income on investments is allocated was to increase Water Utility net income for the year ended June 30,1979 by $656.000. For the year ended June to the various funds of the City on the basis of average daily cash and mvestment balances. 30,1978, the net loss of the Water Utility was $l56,000, Had this met;.cd of accounting been followed for Resenue recognihon the year ended June 30,1978, net income of the Water Revenues are recognized as billed to customers. Utility would have 3cen $446,000. As a result of this Billings are on a cyclical basis and the Water Utility does change there was no cumulative efTect on the retained not accrue revenues for water sold but not billed at the deficit of the Water Utility as of July 1,1978.
end of a fiscal period. Residential and the smaller For the year ended June 30,1979, certain other commcecial accounts are billed on a bimenthly basis; all account classifications have been changed to reflect nthers are billed monthly.
recommendations set forth in the PUC guidelines. For Gared operating expenses comparative purposes, prior year balances have been The Water Utility shares certain administrative icelassified to conform to the 1978-79 presentation.
I8
Water Utility Fund Notes to Financia! Statements (Cont.)
NOTE 3-Revenue Bonds June 30, The Water Utility is indebted under one revenue bond issue as follows: g,79 3,73 Water Revenue Scrica 1971 Bonds, 4.9861%, Esued July 1,1971 in the amount of $2.000,000 maturing serially to 1987 in annual principal installments of $115,000 to $195,000, total debt service of $1,559,542 to maturity $1,285,000 $ 1,405,000 Less current portion 130.000 t 20.000
$1,155,000 $1,285,000 In accordance with the 1971 revenue bond resolution, a reserve for maximum annual debt service has been established and a reserve for renewal and replacement equal to a maximum of I"o of the net book value of the utility plant is to be accumelated and maintained. Restricted cash and investments includes reserved amounts, as well as undisbursed bond proceeds, as follows:
lleid by fiscal agent:
Maximum annual debt service reserve $ 200,000 $ 200,000 Bond service account 146,00; 154,000 Other:
Renewal and replacement reserve 562,000 337,000 Restricted bond proceeds 73.000 79.000
$ 981,000 $ 770.000 NOTE 4-Sales of Water the Water Utility for alleged damages to persons and The Water Utility's Rates, Rules and Regulations property and for other alleged liabilities arising out cf include a water commodity adjustment formula by which matters usually incident to the operations of a utility billings to customers are subject to adjustment, up business such as that of the Water Utility. In the or down, to reflect variations in the cost of wholesale opinion of management. the uninsured liability under water to the Water Utility, these claims and suits would not materially afTect the financial position of the Water Utility as of June 30,1979.
NOTE 5-Operating Expenses Operating expenses shared with the Electric Report of Independent Accountants Utility amounted to $3,823,000 and $2,662,000 for the To The Honorable City Council years ended June 30,1979 and June 30,1978, City of Anaheim, California respectively, of which $1,270,000 and $1,038,000 was We have examined the balance sheet of the Water allocated to the Water Utility. Utility Fund of the City of Anaheim as of June 30,1979 and 1978, and the related statements of income, changes NOTE 6- Pension Plan in retained deficit and of changes in financial position The Water Utility has a contributory pension plan for the years then ended. Our examinations were made for the full-time employees under the State of California in accordance with generally accepted auditing standards Public Employce's Retirement System. The Water and accordingly included such tests of the accounting Utility's cost of benetits funded for 1979 and 1978 were records and such other auditing procedures as we approximately $154,000 and $98,000, respectively. considered necerary in the circumstances.
Information as to the actuarially computed value of As more fully cescribed in Note 2 to the financial vested benefits o"er the related pension fund assets is statements, effective July 1,1978 the method of not available.
accounting for depreciation on contributions was changed.
NOTE 7-Self-Insurance Programs:
EtTective September 1,1974, the Water Utility In ur pini n, the financial statements examined became part of a City of Anaheim-adopted self-insured by us present fairly the financial position of the Water workers' compensation program which is administered Utility Fund of t*2 City of Anaheim at June 30,1979 and by a service agent. EfTective July 1,19~7, the City .1978, and the results of its operations and the changes (including the Water Utility) became self-insured for in its financial position for the years then ended,in the first $500,000 on each generalliability claim. e nf rmity with generally accepted accounting principles Costs relating to the litigation of claims are charged to e nsistently applied during the period except for the expenditures as incurred. change, with which we concur, referred to in the precedmg paragraph.
NOTE 8-Commitments and Contingencies:
The Water Utility's budget for the fiscal year 1979-80 provides for capital expenditures of approximately g [Jgg i *
$6,360,000 and substantial commitments have been November 16, 1979 made in connection therewith. Newport Beach, California A number of claims and suits are pending against 19
City of Anaheim Electric Utility Fund Balance Sheet June 30, 1979 1978 (In thousands)
ASSETS Utility plant:
Transmission $11,058 $ 11,039 Distribution 37,231 32,183 General 1,708 1,670 Construction work in progress 1,890 1,452 51,887 46,344 Less-accumulated depreciation 14,785 13,633 37,102 32.7 I I Restricted cash and investments (Note 3) 4,724 4.521 Current assets:
Cash and investments 7,894 4,121 Customer and other accounts receivable, less allowance for doubtful accounts of
$180,000 in 1979 and $160,000 in 1978. 4,425 4,728 Accrued interest receivable 186 Alaterials and supplies, at average cost 870 1,479 Prepayments (Note 6) 2,457 3,885 15.832 14.213 Other assets:
Prepaid electric power (Note 6) 4,838 Unamortized project costs (Note 5) 2,427 2,851 Unamortized debt expenses 57 68 2,484 7,757 Total assets $60,142 $59,202 EQUITY, LIABILITIES AND 011IER CREDITS Equity:
Fund balance transferred $14,629 $ 14.629 Retained earnings 14,845 13,670 Total equity 29,474 28,299 Revenue bonds, less current portion (Note 3) 14,100 18,100 Total capitalization 43,574 46,399 Current liabilities (payable from restricted assets):
Current portion of revenue bonds 300 579 Accrued interest on bonds 248 273 548 852 Current liabilities (payable from current assets):
Current portion of revenue bonds 3,700 3,221 l Accounts payabic and accrued expenses 10,330 8,290 Customer deposits 392 386 14,422 11,897 Total current liabilities 14,970 12,749 Contributions in aid of construction 1,598 54 Total equity, liabilities and other credits $60.142 S59.202 See accompanying Notes to Financial Statements 20
City ofAnaheim Electric Utility Fund Statement afIncome f Year ended June 30, 1979 1978 (In thousands)
Operating res enues:
Sales of electric energy (Note 7) 570,842 564,038 l Other operating revenues 331 815 Total operating revenues 71,173 64,853 Operating expenses:
Cost of purchased power 59,198 51,747 Other operations 3,657 2,981 Maintenance 2,036 1,677 Depreciation 1,358 1,395 Amortization of project costs (Note 5) 302 118 Tot operating expenses 66,551 57,918 Operating income 4,622 6,935 I
Other income (expense):
Interest income 869 446 Interest expense, including amortization of debt expenses (692) (725) 177 (279)
Net income $ 4,799 $ 6,656 Statement of Changes in RetainedEarnings llalance at beginning of year $13,670 $ 9,582 Net income for the year 4,799 6,656 18,469 16,238 Transfer to the general fund of the City (3,624) (2,568)
Italance at end of year $ 14,845 513,67s' See accompanying Notes to Financial Statements 21
City ofAnaheim Electric UtilityFund Statement of Changes in FinancialPosition ,,,, e,,ded u,e ,,0, .
1979 1978 (In thousands)
Financial resources were prosided by:
Operations -
Net income S 4,799 $ 6,656 Charges to income not involving working capital-Prevision for depreciation 1,358 1,395 Amortization of project costs 302 118 Amortization of debt expenses 1I II Resources provided by operations 6,470 8,180 Decrease in prepaid electric power 4,838 4,412 Contributions in aid of construction 1,544 Decrease in unamortized project costs 122 Disposal of plant and equipment 496 Decrease in restricted cash and investments 41 12,974 13,129 Financial resources were used for:
Expenditures for plant and equipment 5,665 4,143 Revenue bonds becoming current 4,000 3,800 Transfer to the general fund of the City 3,624 2,568 Increase in restricted cash and investments 203 Other 84 13,576 10,511 Increase (decrease) in working capital ($ 602) S 2,618 Increase (decrease) in components of working capital:
Cash and investments S 3,773 5 (l16)
Customer and other accounts receivable (303) 1,538 Accrued interest receivable 186 Materials and supplies (609) 299 Prepayments (I,428) 619 Net change in current assets 1,619 2,340 Current portion of revenue bonds (200) (200)
Accrued interest on bonds 25 21 Accounts payable and accrued expenses (2,040) 529 Customer deposits (6) (72)
Net change in current liabilities (2,221) 278 Increase (decrease) in working capital (S 602) $ 2,618 See accompanying Notes to Financial Statements 22
City o Anaheim
^
Electric Utility Fund Notes to FinancialStatements Note 1 - Summary of Significant Accounting Policies: Shared operating expenses Basis of accounting The Electric Utility shares certain administrative The Electric Utility Fund was established June 30, functions with the Water Utility. Generally, the cost of these functions is allocated on the basis of benefits provided 1971, at which time the portion of the City of Anaheim's General Fund equity relating to electric utility to the Electric and Water Utilities.
operation was transferred to Electric Utility equity. Debt expenses The financial statements of the Electric Utility are Debt premiums, discount and issue expenses are presented m conformity with generally accepted deferred and amortized to income over the lives of accounting principles and accountmg prmciples and the related bond issues.
methods prescribed by the Federal Energy Regulatory Commission (FERC). The Electric Utility is not Pension plan subject to the regulations of such commission. All full-time City employees are members of the Utility plant and depreciation State of California Public Employce's Retirement System.
The cost of additions to utility plant and of The City's policy is to fund all pension cost accrued; replacements of retirement units of property is capitalized. such costs to be funded are determined annually as of July Utility plant is recorded at cost, or in the case of I by the System's actuary. Unfunded prior service cost contributed plant, at fair value at the date of the is being funded over 25 years ending June 30,2000.
contribution, except that assets acquired prior to July 1, Vacation and sick leave 1977, are recorded at appraised histoncal cost. Cost includes labor; materials; allocated indirect charges such as The City does not accrue accumulated vacation or engineering, supervision, construction and transportation sick leave, but rather expenses these costs as paid. It is the equipment, retirement plan contributions and other fringe Pohey of the City to pay all accrued vacation pay benefits, and; certain administrative and general expenses. when an employee retires or is terminated, and one-fourth The cost of relatively minor replacements is included in f the accrued sick leave when an employee retires. At maintenance expense. When assets are retired the June 30,1979, accumulated unused vacation and remaining net book value or any excess (or deficiency) of sick leave did not exceed a normal year's accumulation.
sales proceeds over (or under) net book value at the Transfers to the general fund of the City date of sale is recorded in accumulated depreciation.
Article XII of the City Charter was amended by a Depreciation of utility plant is provided by the vote of the electorate efIcctive December 27,1976 to straight line method based on the estimated service lives provide that transfers to the General Fund of the l of the properties: City in fiscal year 1977-78 shall be equal to, or less than Transmission and distribution E****"" "'"# " ' I* '
1976-77. This percentage was reduced to 69o .m fiscal plant 20 to '75 years year 1978-79 for gross revenue of 1977-78, and to Other plant and equipment 3 to 50 years 49 n fiscal year 1979-80 and succeeding years. Such Depreciation on contributed assets is charged transfers are not in lieu of taxes and are recorded directly to contributions in aid of construction. as distributions of retained earnings.
Cash and investments NOTE 2- Accounting and Classification Changes:
The City pools idle cash from all funds for the As of July 1,1978, the City elected to report its purpose of increasing income through investment Electric Utility Fund under FERC industry accounting activities. Investments are carried at cost, which guidelines. In accordance with the guidelines, depreciation approximates market value. Interest income on on assets acquired from contributions in aid of investments is allocated to the various funds of the City construction is not reflected in net income but rather is on the basis of average daily cash and investment charged directly to contributions in aid of construction.
bahnees. This change had no cumulative effect on retained earnings Rnue recognition nd an insignificant effect on net income for the current Revenues are recognized as billed to customers. l# '-
Billings are on a cyclical basis and the Electric Utility does For the year ended June 30,1979, certain other not accrue revenues for electricity sold but not billed account classifications have been changed to refl:ct at the end of a fiscal period. Residential and the smaller recommendations set forth in the FERC guidelines. For commercial accoats are billed on a bimonthly basis; comparative purposes, prior year balances have been all others are billed monthly. reclassified to conform to the 1978-79 presentation.
23
Electric Utility Fund Notes to Financial Statements Cont.
NOTE 3-Revenue Bonds The Electric Utility Fund is indebted under three revenue bond issues as follows:
June 30, 1979 1978 Electric Revenue Bonds, Issue of 1972, 4.9263 % , issued Afarch 28, 1972 in the amount of
$8,000,000, maturing serially to July 1,1992, in annual principal installments of $300,000 to $675,000, total debt service of $8,914,000 to maturity $ 6,525,000 $ 6,800,000 Electric Revenue Bonds issue of 1976, 6.07 % , issued April 27, 1976 in the amount of
$6,000,000, maturing serially to Ntay 1,2006, in annual principal installments of $100,000 to $400,000, total debt service of $11,939,975 to maturity . 5,750,000 5,850,000 Electric Revenue Bonds, Second Issue (Subordinated) of 1976, 4.8259 % , issued June 8,1976 in the amount of $12,500,000, maturing serially to December I,1980 with remaining principal installments of $2,225,000 and $3,600,000 in fiscal years 1980 and 1981, total debt service of $6,119,038 to maturity 5.825.000 9,250,000 18,100,000 21,900,000 Less current portion 4,000,000 3.800.000
$14,100,000 $18,100.000 in accordance with the 1972 bond resolution, a reserve for maximum annual debt service has been established and a reserve for renewal and replacement is being accumulated to a maximum of 2% of the book value of the utility plant.
The three bond issues require the establishment of a bond payment reserve by accumulating monthly, one-sixth of the interest which will become due and payabic on the outstanding bonds within the next ensuing six months and one-twelfth of the principal amount u hich will mature and be payable on the outstanding bonds within the next Iwelve months (six months for the $l2,500,000 issue).
Restricted cash and investments includes reserved amounts as well as undisbursed bond proceeds as follows:
lleld by fiscal agent:
Ntaximum annual debt service reserve 682,000 $ 682,000 Bond service account 418,000 449,000 Other:
Afaximum annual debt service 404,000 404,000 Hond service account 682,000 402,000 Renewal and replacement reserve 742,000 712,000 Restricted bond proceeds 1,796.000 1,872,000
$ 4,724.000 $ 4,521,000 NOTE 4-Operating Expenses NOTE 6- Prepaid Electric Power Operating expenses shared with the Water Utility The City entered into an agreement with Nevada amounted to $3,823,000 and $2,662,000 for the Power Company on May 25,1976 to purchase electric years ended June 30,1979 and June 30,1978, respective- power over the next four years. On July 1,1976 ly, of which $2,553,000 and $1,624,000 was allocated to the City used $12,500,000 of rev(nue bond proceeds to the Electric Utility. make a partial prepayment to Nevada Power Company for energy to be supplied. In accordance with the terms NOTE 5-Unamortized Project Costs of the agreement, beginning July I,1977, the prepayment The City plans to participate in various power has been offset against billings from Nevada Power ;
generation projects with other agencies. Unamortized Company for electric power purchases.
project costs includes $1,213,000 w hich represents advance payments to participating agencies for preliminary engineering and environmental impact studies for the NOTE 7-Sales of Electric Energy related projects. Effective June 1,1979, rates for all classes of service During 1978, two projects to w hich the City had were increased approximately 4.7 percent. The rate advanced $1,382,000 were teiminated without benefits resolution established for the first time an energy cost accruing to the City. The $1,382,000 is being amortized to adjustment formula by which billings to customers expense over the ensuing five years, of which $1,214,000 are subject to adjustment, up or down, to reflect variations remained unamortized at June 30,1979. in the cost of wholesale power to the Eledric Utility.
24
Electric Utility Fund Notes to Financial Statements (Cont.)
NOTE 8-Pension Plan property and for other alleged liabilities arising out of The Electric Utility has a contributory pension plan m tters usually incident to the operations of a utility for its full-time employees under the State of California business such as that of the Electric Utility. In the op,mion f man gement, the uninsured liabih,ty under these claims Public Employee's Retirement System. The Electric l and suits would not materially affect the financial Utility's cost of benefits funded for 1979 and 1978 were approximately $282,000 and $293,000, respectively.
Position of the Electic Utility as of June 30,1979.
Information as to the actuarially computed value of vested benefits over the related pension fund assets is not available.
Report of Independent Accountants To The Honorable City Council NOTE 9-Self Insurance Programs City of Anaheim, Califo. tia Effective September 1,1974, the Electric Utility became part of a City of Anaheim-adopted self-insured In ur P nion, i the accompanying balance sheet workers' compensation program which is administered by and the related statements of income, changes in retained a service agent. Effective July 1,1977, the City earnings and of changes in financial position present (including the Electric Utility) became self-insured for fairly the financial position of the Electric Utility Fund the first $500,000 on each general liability claim. Costs f the City of Anaheim at June 30,1979 and 1978, and relating to the litigation of claims are charged to the results of its operations and the changes in its financial expenditures as incurred. Position for the years then ended,in conformity with generally accepted accounting principles consistently applied. Our examinations of these statements were made NOTE 10-Commitments and Contingencies in accordance with generally accepted auditing standards The Electric Utility's oudget for the fiscal year and accordingly included such tests of the accounting records and such other auditmg procedures as we 1979-80 provides for capital expenditures of approximately
$6,468,000 and substantial commitments have been c nsidered necessary m the circumstances.
made in connection therewith. The Electric Utility plans to sell bonds of approximately $55,000,000 to finance its '
participation in the San Onofre Nuclear Generating N fg-November 16,1979 Station.
Newport Beach, California A number of claims and suits are pending against the Electric Utility for alleged damages to persons and l
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F CITY OF ANAHEIM Public Utilities Department
- $18 S. Anaheim Boulevard, Anaheim, California 92805