ML20009B620
| ML20009B620 | |
| Person / Time | |
|---|---|
| Site: | Grand Gulf  |
| Issue date: | 02/12/1976 |
| From: | MISSISSIPPI POWER & LIGHT CO. |
| To: | |
| Shared Package | |
| ML20009B613 | List: |
| References | |
| NUDOCS 8107160449 | |
| Download: ML20009B620 (16) | |
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MISSISSIPPI POWE LIGHT COMPANY m
1975 AnnualR 8107160449 810709 PDR ADOCK 03000416 Z
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.m Officers and executtre department heads of 31/WI, are, from left, scated: Frank S. York, Cumeroilcr and Chief Financial Officer; Alex 31cKeigney, Vice President, Informational Services,1)onald Colmcr, Vice President Public Affairs and Environmental 31atters, ll. Haxter Wilson, Chairman of the Hoard; f)onald C. I.utken, President and Chief Executive Officer, Joe 11. Hat. Senior Vice President, Iroduction, Engineering and Construction;.lohn 11. llolland, Vice President, Arca Affairs; Norris I.. Stampley, Vice President, Productum; back rme, fremt left, James L 31artin, Assistant Trecsurer, i
George f.cdloic, Director, Internal Auditmg, W. R. Casper, Treasurer, Allan D. Stapp, Assistant Secretary; IV. T. Woods, Jr., 31anager. General Property and Services; C.1.amar Stephenson, Director, Persormel; George Wynne, Director, 31arketing and Decciopment; Donald E. Meiners, 31anager, Division Operations: Thomas A. Dallas,31anager, Enginecr-ing, System Operations and Construction;and 31arion Twcnsend, Chief Engineer.
Highlights of 1975
--On November 10,1975, Company filed with Niississippi 5,051 over 1974; and residential customers used an average of Public Sersice Commission for the second major rate increase 10,198 kilowatt-hours, up 181 KWil oser 1974.
in history. The new rates, place-i in effect under bond, are
-Total energy sales amounted to 8.6 hillion kilowatt-estimated to increase res enue from retail customers by hours, up 21'7 over 1971.
$29,905,000, or 15'7, during the year 1976.
-The Com pany's 1975 construction expenditures were
--Operating reven ue-for the year amounted to
$4 8,263,000, of which approximately $19-million was for
$210,057,000, compared with S178,141,000 the year before; work to convert generating plants from natural gas to fuel but increased resenues were largely offset by increases in
- oil, ex penses, $202,502.000 for 1975 as com pared with
-The Mississippi Supreme Court rendered a final decision
$150,236,000 in 1974. Net income was $20,803,000, up 2'7.
upholding the board of directors and membership of Capital
-Cost of fuel and purchased power represented the biggest Electric Power Association in the 1973 sale of the CEPA part of total expenses, $128,720.283 for 1975 compared with system to MP& L.
892,973,170 for 1971, an increase of 39'7 for the year. This
--Indust rial des elopment in the MP&L operating area cost was oser 637 of total expenses.
continued strong, indicating progress in economic recovery.
-.MP&L generating plants used a total of 7,087,840 barrels with 71 new and expanded industries being recorded for the of fuel oil dering the year, an increase of 41.7'i over 1971.
year.
-In order to carry out the construction program under-
-The Marketing and Development Department researched way, the Company sold $25-million in first mortgage bonds and deseloped the new E3 tenergy efficient electric) llome; in September,1975,at an interest rate of 10 7/8';, the highest total elect ric cust omers at yea r's end numbered 38.568.
in its history.
--Th e Gerald Andrus Steam Electric Station, 5th in the
~lloth the number of customers and kilowatt-hour usage MP&L srstem, was dedicated at Greetaille in October; and at by customers increased mer the presious year. At year's year's end, construction work on the Grand Gulf Nuclear end, there were 280,733 customers on Company lines, up Station, Unit 1, was 16'; complete.
General Of fices About Ou r Cover Electric fluilding, Jackson, Mississippi 3935 The emblem on the door show n on our emer signifies the llegistrar (for preferred stock) latest brea kt h rougl. in efficiency of energy utilization by Deposit Guaranty National llan1. Jackson, Mississippi homeowners-the n ? E3 (Energy Efficient Electric) llome.
Transfer Agent Following E3 requirements for construction the homeowner First National llank of Jackson, Jackson. Mississippi can save up to 60'; on cooling and heating costs as compred This report is prepared for the informatien of security with consentional methods. The E3 co:icept is the product holders, employees and other interested persons. It is not of extensi',e research in the residential construction field, transmitted in connection with the sale of any security or and is another step by MP&L to help the consumer through offer to sell or offer to buy any securit3 efficient use of electricity -the foreser energy!
To Our Stockholders and Members of Our Organization Despite the pressing and perplexing problems common to tives, is also expected during the year. This increase, also, is most electric utilities, AIP&L was able to make progress in all being collected subject to refund in case of an adverse ruling.
areos of operations during 1975, our 52nd year of service to The lag between filing and final approval, or rejection, of customers in 45 counties in western 51ississippi.
rate cases is clearly shown in the above cases. Even before the Various factors over which the Company has little, if any, first increase filing was settled, it became necessary, due to control kept the year from being the best on record, but the continued deterioration of the Company's financial neither was it the worst. It is gratifying to report that the first position, to return to the Commission for another increase.
objective in our long+stablished printed policy "to render If we had not been able to put the increases in effect under dependable service" was met in every instance. Reaching this bond, our financial situation could have become chaotic.
goal becomes increasingly difficu:t in times of economic hardship and political changes. But meeting the goal is essen-New Capital tial, since the Company can only exist as long as those we serve continue to want and ase our service.
In order to carry out h!P&L's construction program and Unfortunately, the three growing deterrents to 51P&L's to provide essential new facilites for Company operations, future well-being continued unabated in 1975. ney are: it was necessary to sell $25,000,000 in first mortgage bonds inflation, the high cost of new capiial, and the uncertainty in September,1975. The bonds carried an interest rate of and instability of fuel supplies and costs. The solution of these 10 7/8'1, the highest in the history of the Company.
problems which have a direct influence on the future of 31P&L A large part of the construction underway during the year and all other investor-owned utilities was made more difficult was for conversion of our generating plants to burn heavy by the misunderstanding and attitude by some segments of the fuel oil as the primary fuel, instead of natural gas. Due to public about utility operations, and about whether or not governmental actions which resulted in the abrogation of a there is an " energy crisis." This misunderstanding and ques-long term contract which AIP&L held v.ith its principal natural tioning attitude is reflected in some degree in the general gas supplier, the Company can no longer rely upon natural indecision and failure of the multiple government agencies gas as its primary fuel. During the past year,51P&L generating and regulatory bodies to set up a clearly defined and establish-plants consumed 7,087,840 barrels of fuel oil, up 41.7% over ed national energy policy.
the previous year.
If 51P&L and others in the industry are to meet future At the beginning of 1975, the Company had outstanding chdlenges and remain a viable force in helping solve the $3,700,000 in short term debt in the form of commercial energy crunch, there must be an overall improvement in the notes. This entire amount was repaid during the year, with no regulatory climate in which we operate. Unless essential rate short term debt being outstanding at year's end.
relief is granted, and grante in time to fill pressing needs, 51P&L, at some time in the not too distant future, might be Revenues & Expenses Up unable to meet the first objective in our policy mentioned earlier, even though we have a franchise obligation to our A new record high in operating revenues, $240,057,000, service area.
was set in 1975, but as in the past several years, the gains were largely offset by higher operating expenses, S202,502,000 New Rate Increase Filed for 1975. The biggest increase 5 operating expenses was in fuel and purchased power, S128,720,283 for the year as The Company, on November 10, 1975 filed with the compared with $92,973,170 the previous year, or an increase h!ississippi Public Service Commission for its second major of 39% over 1974. The inroads of inflation, higher expenses rate increase in history. The increase was placed in effect in every area of operations, and slowdown in the rate of on December 11, 1975. It provides for an increase averaging growth of sales are c'early reflected in the fact that despite nearly 15% on all classes of retail customers. and will bring in the record revenues collected, the net income to the Company an estimated.S29,905,000 in added revenue during 1976.The was $20,803,000, up only 2% in 1975 over 1974. It should PSC was conducting hearings on the filings in early 1976, be pointed out that for the same period the Company's with a ruling expected to be handed down in h!ay.
capital investment also increased, ne first increase, placed in effect on February 17,1974, was rejected by the Commission, but upheld later by the !!inds Customers & Sales County Chancery Court. The Commission then appealed the case to the State Supreme Court, where it remained in early There was some growth in both customers and kilowatt-1976. A ruling is expected later in the year. The increase hour sales du.ing the year, as compared with the previous provides for annual additional revenues o' approximattly year. The number of customers at year's end was 280,733,
$10,990,000. Added revenues coliected from both filings up 5,0F1 over the year before. Residential customers used are in effect under bond.
an average of 10,19e kilowatt hours during 1975, up 481 The December 7,1974, increase in wholesale rate increases kilowatt-hours over 1974. The growth was duc in part to to four municipalities and seven rural electric power associa-the more normal weather conditions in 1975 and to sale of the tions also continued in effect during the year, subject to final energy saving heat pump for heating and cooling in new approval by the Federal Power Commission. A final ruling on homes, remodeling and replacements. Total electric residential these increases, 27'1 for municipalities and 23'i for coopera. customers numbered 38,568, up 3,654 over the year before.
3
Total energy sales for the year were 8.6 billion kilowatt. enlarged, three had capacity banks installed,and 500,000 volt hours, an increase of 219 over 1974. Sales to ultimate cus. transformers were replaced at the Baxter Wilson EllV sub-tomers in 1975 was 6 billion kilowatt-hours, an increase of station. Major transmission construction included 89 miles of 4.6% over 1974. The peak demand for the year occurred at 230,000 volt lines from the new Gerald Andrus Steam Electric 4 p.m. on September 3, at 1,642,000 kilowatts, only 2,000 Station to the Itay Braswell EllV substation, and a new kilowatts higher than the peak for the year before.
115,000 volt line to the South Brookhaven Substation, and from Port Gibson to Grand Gulf.
lireakdown o' Expenses While completed and placed in service last year, the new 750,000 kilowatt Gerald Andrus Steam Electric Station at
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Total operating expenses, S202,502,000, were up 357 Greenville was formally dedicated on October 15,1975, with compared with the year before, due to continued inflation, prominent local, area and state leaders participating. It is increased fuel costs, high cost of materials, and higher new MP&L's 5th generating station, capital costs. IIere is a breakdown of how the expense dollar Looking to long range development, the Company exercis-was spent:
ed its option to purchase 2,500 acres of land in DeSoto Fuel for power generation, 46"c; taxes,117; payroll and County as the site for a new generating station in the Middle employee benefits, 97; material and s spplies, rents, etc.,
South System at some time in the future.
87; power purchased from other utilities,177; and deprecia-tion of plant and facilities,97.
Future Challenge Construction MP&L, while beset with the mounting problems in all areas of operations, continues to face the future optimistically. One The Company's total construction expenditures for 1975 reason for this is the approximately 1,400 Company employ-amounted to $48,263,000. Of this amount, approximately ees who are rising up to meet the challenges facing the Com-
$19,000,000 was spent during the year for work to continue pany and industry. The Company is, and will continue, to conversion of the sysMm's generating stations from natural " tighten its belt" in every way possible to operate at the gas to fuel oil as a primary fuel. 'Ihe stations, at Jackson, lowest possible cost-but continuing strong enough to provide Natchez, Cleveland and Vicksburg, were built originally to reliable service. The industry, if given the opportunity by an burn natural gas as the primary fuel, but due to the increased understanding government and the proper regulatory climate, unavailability and dwindling supply of this fuel, it became is fully capable of accomplishing whatever is necessary to solve necessary to convert them to burn No. 6 fuel oil as the basic the energy crisis in which MP&L, the state, nation and world fuel. The biggest plant, Baxter Wilson at Vicksburg,is to be now find themselves entangled. The crisis must be solve 6 if completely converted by mid-1976, with all other plants to we are to survive as a free nation, while enjoying a reasonable be completed in 1977.
semblance of the standard of living people need, desire and While owned and financed by Middle South Energy, Inc.,
ex pect.
I the Grand Gulf Nuclear Station near Port Gibson is being Our Company will continue to follow the principles implied constructed and will be maintained and operated by MP&L in our motto of "llelping Build Mississippi." On behalf of the l
for the Middle South Utilities subsidiary At year's end, work board of directers, staff md employees, we pledge our best on the first unit was approximately 167 complete. Work on efforts to con,inue to merit the confidence of both our the second unit was 27 complete. Completion of the first customers and our investors, tne two basic ingredients for unit is scheduled for late 1979, while the second unit comple-successful operation of this enterprise.
tion date has beca extended to late 1983 due to financial reasons. The work force on the project at the end of the year Sincerely, was approximately 2,200, and will reach over 3,000 at peak.
Installation of new transmission and distribution facilities n
M" in 1975 served to strengthen reliability of service to customers l
and to add power bases for future growth. New substations,
/bddot/-,,
a$h 115,000 volt unless otherwise noted, were completed at:
South Brookhaven, Enid, Forest Ilill, Grand Gulf, Kl. an Steel II. Baxter Wilson Donald C. Luiken l
in Flowood, Terry, and Clinton Industrial Park, a 230,000 Chairman President and l
volt facility. Seven substations had transformer capacities Chief Executive s
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l 1975 Financial Review Summary of Significant Accounting Policies A.
SYSTEM OF ACCOUNTS Company is to fund pension costs accrued.
The accounts of the Company are maintained in Following a study of the Employee Retirement accordance with the system of accounts prescribhd by Income Security Act of 1974, the Company's pension the Federal Power Commission.
plan has been amended, effective on and after January e mply with the Act. It is anticipated that B.
REVENUES the required revisions m the plan will not have any The Company records resenues as billed to its cus-significant effect on pension cost.
tomers on a cycle billing basis. Revenua is not accrued E.
INCOME TAXES for energy delivered bu' not billed at the end of the fiscal period. The rates of the Company include fuel The Company joins its parent in filing a consolidated adjustment clauses under which fuel costs above or Federal income tax return. Income taxes are allocated to below the levels allowed in the various rate schedules all subsidiaries in proportion to their contribution to the are permitted to be billed or required to be credited ccasolidated tax liability.
to customers.
Deferred income taxes are provided for differences between book and taxable ince ta the extent per-C.
UTILITY PLANT AND DEPRECIATION mitted by the regulatory booses for rate-making purposes.
Utility plant is stated at original cost. The costs of additions to utility plant include contracted work, direct ! abor and materials, allocable overheads, and an allowance for the composite cost of funds used during F.
ALLOWANCE FOR FUNDS USED DURING construction. The costs of units of property retired, CONSTRUCTION rep' aced or renewed are removed from utility plant, and such costs plus removal costs, les salvage, are charged in accordance with the regulatory system of accounts, to accumulated depreciation. Maintenance and repairs the Company capitalizes an allowance for funds used of property and replacement and renewal ofitems deter-during construction representing the net cost of funds mined to be less than units of property are charged to (interest on borrowed funds and a reasonable rate on operating expenses. Principally all of the utility plant other funds) used to finance construction, with a is subject to the lien of the Company's first mortgage corresponding credit to non-operating income. This bond indenture.
practice recognizes these amounts as an appropriate Depreciation is computed on the straight-line basis cost of utility plant which, in accordance with estab.
at rates based on the estimated service lives of the lished regulate y practices, will be recovered through various classes of property. Depreciation provided in future billings to customers. A composite accrual rate 1975 and 1974 amounted to approximately 3.1"c of 7W"e per annum was used in 1975 and 1974 in and 3.0'i, respectively, on average depreciable pro-accruing the allowance for funds used during con-
- perty, struction.
D.
PENSION PLAN G.
RESERVES The Company has a pension plan covering substan.
It is the policy of the Company to provide reserves tially all of its employees. Pension costs in 1975 and for uninsured property risks and for claims for injuries 1974 amounted to $1,533,000 and $1,209,000, and damages through charges to operating expense on respectively, includin:; amortization of unfunded prior an accrual basis. These reserves have been allowed for service costs over a period of 10 years. The policy of the rate making purposes.
MISSISSIPPI POWER & LIGIIT COMPANY We have examined the balance sheet of Mississippi Power & Light Company as of December 31,1975 and 1974 and the related statements of income, retained earnings, and source of funds for utility plant additions for the years then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the abJve-mentioned financial statements present fairly the financial position of the Company at December 31,1975 and 1974 and the results of its operations and the source of funds for utility olant additions for the years then ended, in conformity with generally accepted accounting prin-ciples consistently applied.
New Orleans, Louisiana yhh February 12,1976 5
Mississippi Power & Light Company Balance Sheet December 31,1975 and 1974 I
1975 1974 ASSETS In Thousands UTILITY PLANT:
.y Electric plant
. $ 604,059]
$ 576,68D 35,7721 16,688 Cor.stniction work in progress....
Electric plant acquisition adjustments..
3,113!
3,293I 642,944j 5%.67@
Total 140,0335 123.631 Less accumulated depreciation Utility plant-net 502,911 l 473,030 OTHER PROPERTY AND INVESThlENTS-At cost:
8,999.
9,764 Investment in associated company 213l 213 Other.
Total 9,2122 9.977 CURRENT ASSETS:
Cash (Note 2)
-4,304!
2.419 Special deposits 764!
771 Temporary investments, at cost which approximates market 8,000 l Accounts receivable:
Customer and other-less allowance 3
for doubtful accounts of $154,000.
11,438 l 11,41$
Associated companies L104?
151 hiaterials and supplies--at average cost:
3,694.-
4,667 Fuel Other.......
6,440,
6,363 297!
25@
Prepayments
' i.%3 ;
2,208 Other..
Total...
37,004 l 28.238
~
DEFERRED DEBITS:
Advances for fuel oil purchases
-5,897 t 1,523
'1,579:
1,346 Advances for gas purchases.
.1,321i 1,177 Unamortized debt expense.......
1,085 l 1,130 Other.
9,882:
5,18}
Total.....
TOTAL
' $ 559,009 /
$ 516.437 e
See Notes to Financial Statements.
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, LI ABILITIES 1975 1974 In Thousands CAPITAllZATION:
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Preferred stock (Page 9)
.... I '.. $.l 38,077. !
$ 38,077 Common stock, no par value (stated value j
.$23 per share) authorized 5,000,000 y
I shares; outstanding 4,540.000 shares in 1975 and 1974...
..F 104,420 104,420
,. Sa 5
Paid-in surplus..
s
... iu : 41,911 j 36.477 l
Retained earnings (Note 4)...............
Total
.......i;..184,4131 178,979 Long-term debt (Page 9)
.................i
-~286,060 -
'58.082 I
437,061 470,473 j Total CURRENT LI ABILITIES:
f 3,700 Commercial paper (Note 2)
Accounts payable:
.4,980; 3,363 Associated companies Other 6,263 l 5,009
, 5,205 j 4,555 Customer deposits Taxes accrued
-11,307!
8,G49 Interest accrued 17,687j 6,363
^
- 59%
5%
Dividends declared Other...
2,8616 5,908 J 38,899 5 37.543 Total DEFERRED CREDITS:
Accumulated deferred income taxes.......
133,748 !
27,689 Accumulated deferred investment tax credits 13,366l 11,4 %
- 447j 606 Oth er......
-47,561:(
39,701 Total 2.0761 2.132 RESERVES TOTAL.......
- $ 559.009?
$ 516,437 g
w 9 -.
r, 4%.-
See Notes to Financial Statements.
)
7
i Mississippi Power & Light Company Statement of Income For the years ended December 31,1975 and 1974 1975 1974 in Thousands OPERATING REVENUES (Note 5)
...'~$ ' 240,U57 -
$ 178,441 4
OPERATING EXPENSES:
Operation:
Fuel........
93,398 65,859 Power purchased
-35,322 27,114 Other......
23,941,
21,919 Maintenance 9,123 7,800 Depreciation 17.532 -
12,W6 Taxes other than income taxes
'11,626:
9,924 Income taxes (Note 1).
11,560 i 4.624 Total 202,502 -
_ 150,236 OPERATING INCOME 37,555,
28.205 OTHER INCOME AND DEDUC7 IONS:
Allowance for funds used during construction..
1,8533 8,883 Miscellaneous-net 1,766,
774 Income taxes (Note 1)
-(919),
(468)
Total 2,700,
9.189 INTEREST CHARGES:
Interest on long-term debt 18,154 15,504 Other interest-net of debt premium 1,298 -
1,436 Total 19,452 16,940 NET INCOME 20,803
$ 20.454 l
c l
Statement of Retained Earnings i
l For the years ended December 31,1975 and 1974 RETAINED EARNINGS, JANUARY I
-$ 36,477
$ 30,815 AD D-Net income 20.803-20.454 l
Total
-57,280 51,269 DEDUCT:
Dividends-cash:
l Preferred stock 2,384 2,384 j
Common stock
~ 12,984' ~
12,408 Total 15.368 14.792 RETAINED EARNINGS, DECEM13ER 31 (Note 4)
$ 41,912
$ 36.477 1
5 See Notes to Financial Statements.
8
l Mississippi Power & Light Company Schedule of Preferred Stock and Long-Term Debt December 31,1975 and 1974 Current Shares Authorized Shares Outstanding Call Price 1975 1974 1975 1974 Per Share PREFERRED STOCK Cumulative, $100 Par Value 4.367c Series.
.. 60,000 60,000 l
-59,920; 59,920
$ 103.86 4.567c Series
.. 44,476' 44,476 43,888) 43,888 107.00 4.927c Series
..... 100,000; 100,000:
100,000 100,000 104.38
........... 75,000 75,000 i
- 75,00s) 75,000 108.64 9.167c Series 7.44% Series
. 100,000, 100,000 l ;.100,000; 100,000 108.39 Other Senes
. 325,000 75,000 l Total
.. 704,476'.
454.476 ! -378,808i 378.808
~
- b..
In Thousands 7
$ 37,851l $ 37,881 Stated at $100 a Share Premium on Preferred Stock..
- 1% '
1%
! $ ' 38,077 ! $ 38,077 Total l
LONG-TERM DEBT First Mortgage Bonds:
8,4981 8,498 t
2%7e Series due 1977 3%W Series due 1979 7,500; 7,500 7,500:
7,500 2%W Series due 1980 12,000 12,000 3%7c Series due 1983 4%7c Series due 1988 15,000; 15,000 4%7c Series due 1995....
- 20,000, 20,000 5%% Series due 1996 25,000, 25,000 6%7c Series due 19%
10,000 10,000 20,000' 20,000 9%7c Series due 1999
,17,500:
17,500 9%7c Series due 2000 15,000l 15,000 7M7c Series due 2002 7M7c Series due 2003 30,000, 30,000 8%7c Series due 2003 20,000-20,000 9%7c Series due 2004.
25,000 25,000 10%7c Series due 2005 25,000 257,998!
232,998 Principal Amount of Capitalized Lease-87c, due serially through 1993 9,068:
9,292 Pollution Control Bonds:
7h7c due 20N 9,400; 9,287 8%7c due 20N (net of $593,000 cash held by Trustee) 7,982 ~
5,071 67c to 8%% due 1978 to 1995 (net of $2,221,000 cash held by Trustee)
Unamortized Premium on Debt
_ 179 1,433 1,434 Total ( Annual sinking fund requirements, which may be met by certification of property additions at the rate of 1677c of such requirements, amount to
- $ 286,060. $ 258.082
$2,505,000 for 19i6.)
9
Mississippi Power & Light Company Statement of Source of Funds For Utility Plant Additions For the years ended December 31,1975 and 1974 1975 1974 SOURCE OF FUNDS:
In Thousands From operations:
,m Net income
. ~ $ 20,803 )
$ 20,454 Depreciation 17,532' 12,996 Deferred income taxes and investment tax credit adjustments-net
. 8,019 L 7.060 Allowance for funds used during construction (1,853)i (8.883)
- 44,501 31.627 Total...
~
Less--dividends declared:
Preferred stock 2,384 1 2,384 Common stock 12,984 12.408 Total
- 15.368 14.792 Funds retained in business 29,133 16.835 Less funds used for:
From (increase) decrease in working capital t
f' (excluding short. term securities) 4,298 (2,924)
Advances for fuel oil purchases
- (4,374),
(1,523)
Investments in associated company
' 765 '
(4.725)
Aliscellaneous-net 267->
(1,130)
Total
.956.
(10.302)
From issuance (retirement) of securities:
i Common stock 10,005 First mortgage bonds:
Issues 25,000 25.000 Retirements.
-l (12,000)
~
Pollution control bonds i
Principal amount of capitalized financing lease 3,203 14,358
'(224)!
(208)
Short-term securities (net)
(11,700)!
(11.400) i Total
..i-16,279 25.755 l
TOTAL l
$ - 46,368 -
S 32,288 i
UTILITY PLANT ADDITIONS:
t Construction expenditures (excludes allowance for funds used during construction)
- $ - 46,368
$ 70,855 Less sale of fuel handling and storage facilities to System Fuels, Inc.
(9,000)
Less transfer of Grand Gulf Nuclear Station facilities to Niiddle South Energy, Inc.
(29,988)
Acquisition of Capital Electric Power Association properties 421 l
TOTAL 5 46,368
$ 32.288 l
See Notes to Financial Statements i
l t
10
Notes to Financial Statements
- 1. INCOME TAXES in effect from time to time of the lending banks. During the twelve months ended December 31, 1975, the maximum Income tax expmse consists of the following:
aggregate amount of short-tm borrowings outstanding at the end of any month was $32,25d,000. The average amount of 197s 1974 current:
short-term borrowings outstanding during the twelve months l'ederal..
. $ 2,812,000 $(2.681400) 729.000 24s.000 ended December 31,1975 (based on the average of the sum of i
state.
3.s4t hoo (2.436900) daily outstanding principal balances) approximated Total..
$13,781,000 of commercial paper. The approximate average Deferred-net :
Federal.
s,s86.ooo 2,230000 interest rate (determined by dividing the actual interest i
state....
473.000 is3soo expense on short-term borrowings during the year by the Total.
6.059.000 2.4 3.000 average short-term borrowings) was 6.4%
Investment tax credit adjustments-net 1.960.000 4.647 D00
- 3. COMMITMENTS AND CONTINGENCIES Total.
i i.s 60.e,a 4.624 aoo The Company's construction progran: contemplates expen-Chnged to other income and deductions.
9I9.000 46BDoo ditures of approximately $46,000,000 in 1976.
Totai.
, si2.479non s <.002 non
- Company has a 197o interest in System Fuels, Inc. (SFI),
The total income tax expense reflects reductions resulting a j mtly owned subsidiary of four of the pnncipal operating primarily from, subsidiaries of Middle South L Lilities, Inc. (SFI stockholders).
(a) the exclusion from taxable income of the allowance SFI operates on a non-profit basis in planning and implement-for funds used during construction, ng programs for the procurement of fuel supplies for the (b) the effects of currently deducting certain overhead generating units of these operating companies; its costs are costs, which for book purposes are capitalized as part of recovered through charges for fuel delivered.
the cost of utility plant, and The Company has made loans to SFI to further.ts fuel supply i
(c) the deduction, currently, of the cost of removal of business under certam loan agreements which provide for SFI utility plant retired which for book purposes is charged to t borrow from its stockholders up to $156,500,000 through accumulated depreciation.
December 31,1976. As of December 31,1975 the Company The provision for deferred income tax expense represents hart loaned $8,995,250 to SFI pursuant to the loan agree-the net amount resulting from:
monts, and the Company's share of the unused loan commit-(a) the excess of liberalized tax depreciation and amorti-ment is approximately S23,400,000. Loans mature in 10 and zation over straight-line tax depreciation and amortization, 25 years from the date of borrowing.
(b) beginning in 1975, the net costs of test energy which In connection with certain bank borrowings by SFI tota!ing for book purposes are capitalized as part of the cost of $42,435,000 at December 31, 1975, the Company and the other SFI stockholders have covenanted and agreed severally utility plant, and (c) less the taxes on unbilled revenue related to meters in accordance with their respective shares of ownership of read before the end of the year but billed in the subsequent SFI's common stock, that they will take any and ait action necessary to keep SFI in a sound financial condition and to year-place SFI in a position to discharge, and to cause SFl to dis-The effective income tax rates for 1975 and 1974 were 38?o charge its obligations to the lending banks.
and 204,respectively.
During 1974 SFI entered into a contract with ECOL Ltd.
' Die Federal income tax returns for the years 1967 through (ECOL), a non-affiliated company, to purchase over a twenty-1970 have been examined and assessments have been proposed year period up to 50.000 barrels per day of No. 6 fuel oil by the Internal Revenue Service which are or will be protested; to be produced in a refinery to be constructed by ECOL in also, the years 1971-1975 remain open. Management is of the Louisiana. Deliveries of the refined oil to SFI are scheduled to opinion that adequate provisions have been made for any commence in late 1976. The construction of the refm' ery is taxes thst may ultimately be assessed.
to be f'manced in part by advance payments for oil by SFI
- 2. LINES OF CREDIT AND SilORT-TERM BORROWINGS aggregating $67,500,000. These funds will be supplied to The Company has obtained regulatory authorization to make SFI by the Company and the other SFI stockholders as short-term borrowings of $40,000,000 through bank loans prepayments for future deliveries of oil. The Company's (not to exceed $12,000,000) and the sale of commercial share of the prepayments is $12,825,000 of which SS,352,300 paper. Accounts are maintained with the lending banks, and had been advanced through December 31, 1975. The pre-although immaterial balances in some of these accounts may payments plus interest thereon are to be repaid in fuel oil be deemed to be compensating balances, most of these deliveries through the tenth contract year.
accounts are working accounts and fluctuations in their balances do not reflect or depend upon fluctuations in the
- 4. RETAINED EAl" INGS amounts of bank loans outstanding. The amount of the un-The indenture provisions reldmg to the Company's long-used lines of credit as of December 31,1975 was $12,000,000, term debt provide for restrictions on the payment of cash The bank loans and commercial paper nates are unsecured dividends on common stock. As of December 31, 1975 short-term loans with various maturity dates not in excess of SN,296,000 of retained earnings are free from 3uch restrie-nine months. Interest rates on bank loans are the prime rates tions.
11
e
- 5. RATE MATTERS
- 6. ACCOUNTING POLICIES Reference should be made to Page 3 lor information con- 'Ihe summary of significant accounting policies on Page 5 cerning rate matters, is an integral part of these notes to financial statements.
9 l nergy Sales (Billions of KWil Per itesidential Customer Constru(tion Expenditures Kilowatt-hours)
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- 4:1.A s MP&L generating stations originally designed to burn naturalgas as primary fuel are being converted to burn No. 6 fueloilas primary fuel, due to the unatuitability of a reliable supply of naturalgas. This photo shous the tank form being added to the Baxter Wilson Sicam Electric Station at Vicksburg.
12
Directors R. Baxter Wilson Jackson, Chairman of the Board Donald C. Lutken Jackson, President and Chief Executive Officer of the Company G. Lawrence Adams Natchez, Attorneyst-Law Robert P. Cooke Hernando, Chairman of the Board and President, The Hernando Bank Norman B. Gillis, Jr. ArcComb, Atrorney-at-Law Robert M. llearin Jackson, Chairman of the Board and Chief Exeuctive Officer, First National Bank ) J.11erman 11ines Jackson, Chairman of the Board and Chief Executive Officer, Deposit Guaranty NationalBank 1 Russ M. Johnson
- Jackson, Retired Chairman, Deposit Guaranty National Bank l
. J. II. Johnston, Jr., M.D. Jackson \\ Robert E. Kennington, ll Grenada, Chahman and Chief Executive, Grenada Banking System Floyd W, Lewis New Orleans, lYesident, niiddle South Utilities, Inc. LeRoy P. Percy Greenville, Planter
- Member of the Advisory Board
/ i ) 1-J s i i i i l l l i
- 1 h e McCOMB j
%w%%. 5
- j '
e. h Pnncipal D Power Sources ([ New Unet V' Urkier Consta,ction 13
Mississippi Power & Light Company Record of Progress 1965-1975 (? 78 '1975 1974 1973 j y i El.ECTRIC OPERA ~ LNG REVENUES (000s 03flTTED) Residential Commercial, l $. 74,296 - $ 67,960 $ 47,473 [ 47,484 43,559 31,294 Industrial....... . 7,022 6,163 3,975 Government & hiunici; 1... [ 42,863 41,743 26,852 Cooperatives & N1unicipa. Ns 21.399 13,362 9,915 Total From Energy Sales (hfiu. Area) [ 193,064 172,517 119,509 Sales to Other Public Utilities 43,084 10,484 6,684 Total From Energy Sales .'236,148 183,001 126,193 5,972. 574 449 hfiscellaneous Revenues.. .. (2,063) ( (5,134) Deferred Fuel Adjustment Revenues
- F Total Electric Operating Revenues i $ 240,057.-
$ 178,441 $ 126.642 El.ECTRIC ENERGY SAI.ES (31KMII) , 2,440,460 ' 2,268,954 2,356,073 Residential.. Commercial 1,457,505 - 1,356,173 1,380,035 Industrial...... I,751,042 1,793,055 1,787,741 Government ',, hiunicipal... 302,319 271,233 262,645 Cooperatives & Afunicipalities. _ 990,309 ; 938,205 988,351 Total Energy Sales (Nfiw. Area) 6,941,635 6,627,620 6,774,845 'iales to Other Public Utilities I,638,144,,, 4_87,097 312,454 Total Electric Energy Sales
- 8,579,779
^ 114,717 7,og7,299 EI.ECT RIC CUSTO3lERS (END OF PERIOD) s Residential. 241,739 - 237,085 229,761 Commercial 33,801 > 33,474 33,109 z Industrial....... Government & hlunicipal... .3.247 3,267 3,213 1,879 1,789 1,731 Cooperatives & Nfunicipalities 66 63 61 Total Customers (51iw. Area) 280,732 275,678 267,875 Other Public Utilities 1' I I Total Electric Customers 280,733' 275,679 267,876 SYSTE31 INPUT (31EMill hfiwiwippi Area . 7,583,971 7,249,896 7,378,216 Other . _5,369,242 - 4,353,673 4,160,152 Total System Input ,_12,953,213, 11,603,569 11,538,368 PEAK I.OAD (%11SS, ARE AHKW . l..N. 5 1,565,000 I,6 1,640,000 l 1.OAD FACTOR (411SS, AREAHPER CENT - 52, 51 54 NET Pl. ANT CAPAltil.ITY-KW Ow ned 2,752,000 l 2,752,000 2,00,000 I. cased Total 2,752,000 l 2,752,000 2,002,000 l CIRCUlf 31I1 ES OF EI.ECTRIC I.INES 17,713, 17,461 17,146 TOTAI El ECTH:C UTILITY Pl. ANT (000s 0%11TTED) Production ! $ 299,583 $ 292,491 $ 176,217 Transmission ~ 118,450 109,960 91,535 Distribution... 166,590 158,256 148,492 General & Other - 15,366 14,763 14.355 i Total Utility Plant Completed 599,989' 575,470 430,599 l Plant field for Future Use 4,070 1 1,219 1,144 Construction Work in Progress _. . 35,772 16,688 121,908 Electric Plant Acquisition Adjustments 3.113 3.293 3,067 Total Utility Plant 7 $ 642,944, 5 596,670 $ $56,718
- Sce Item 11 to Summary of Significant Accounting Policies.
1 14
I i 1972 1971 1970 1969 1968 1967 1966_ 1965 $ 30,096 ~$ 32,499 $ 30,097 5 27,353 $ 24,528 $ 21,573 $ 20,389 $ 19,006 25,70I. 22,126 20,290 18,507 16,797 15,t 26 13,939 I3.348 22,399 19,439 17,535 17,076 15,979 15,037 14,228 83,661 .3,193 2,842 2,707 2,437 2,194 2,003 1,876 1,476 9,C 4 7.914 7,027 6,299 5,592 4,796 4.446 4,114 99,273 84,820 77,656 71,672 65,090 58,535 54,878 51,605 15.223 9,423 4,911 5,090 4,452 4,929 42*.i 229 114,496 94,243 82,567 76,762 69,542 63,464 55,304 51,834 374 393 364 342 309 279 276 266 $_ 114,870 $ 94,636 $ 82,931 $ 77,104 5 69,851 $ 63,743 $ 55,580 $ 52,100 2,032,670 1,802,675 1,674,415 1,470,430 ' 1,274,923 1,069,029 991,362 890.865 1,213,432 1,091,553 1,007,557 907,912 823,035 738,521 677,002 659,009 1,677,137 1,624,499 1,464,602 1,410,912 1,351,195 1,345,938 1,267,425 1,148,664 238,624 219,463 210,951 179,178 157,279 142,904 136,781 98,118 1,009,349 __ 966,015 959,649_ 860,842 765,837 659,025 601,110 547,959 4 6,251,212 5,704,205 5,317,i/4 4,829.274 4,372,269 3,955,417 3,673,680 3,384,615 1,269,927 1,282.153 984,933 1.143,398 870,335 832,157 108,742 58,217 7,521,139 6,986.358 6,302,107 5,972,672 5,142,604 4,787,574 3,782,422 3,442,832 206,222 198.435 191.529 187,670 183,538 180.415 176,783 173,570 1 30,629 29,453 28,419 28,109 27,532 26,941 26,149 25,568 3,168 3,209 3,140 3,022 2,990 2,892 2,816 2.757 I,610 1.558 1,514 I,447 I,393 I,347 1,318 1,228 74 75 71 70 67 64 63 57 241.711 232,730 224.673 220,318 215,520 211,659 207,129 203,180 2 3 4 4 4-2 2 2 241,713 232.733 224,677 220,322 215,524 211,661 207,131 203,182 6,906,300 6,24t. ')40 5.875,777 5,326,174 4,783,640 4,337,494 4,062,033 3,730,378 5,081,123 4,700,857 4,429.887 4,957,040 3,677,783 2,318,574 334,842 58,217 11,937,423 10,946,897 - 10,305,664 - 10,283,214 - - 8,461,423-6,656,068 4,396,875 _ 3,788,595, 1,476,000 1,343,000 1,238,000 1,I76.000 1,005,000 924,000 887,000 788,000 1 ^~ 53' ~ ' 53 54 - 51 53 54 52 54 2,002,C30 2,002,000 1,231,000 1,231,000 1,231,000 1,220,000 1,220,000 683,000 3,000 2,002,0C3 2,002,000 1.231,000 1,231,000 1.231,000 1,220,000 1,220,000 686,000 ~ 14,279 14,061 13,892 13,783 13,588 13,418 13,103 12,828 i I i $ 166,537 $ 166,364 $ 106,419 $ 106,434 $ 106,582 $ 106,030 $ 105,379 $ 61,444 91,068 85,074 79,225 79,218 76,988 71,350 56,415 33,684 130,191-124,523 119,198 II3,428 108,049 102,827 97,968 91,664 13,598 13,372 13,283 12,401 II,765 8,429 7,689 _ 7,33I ] 401,394 389,333 318,125 311,481 303,384 288,636 267,451 194,123 l I,146 594 564 564 511 396 394 152 l 30,070 12,396 53,257 16,445 3,524 6,844 13,612 34,765 $ 452,610 $ 402,323 $ 371,946 $ 328,490 $ 307,419 $ 295,876 $ 281,457 $ 229,040 l l 15 t J
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