ML20009D155
| ML20009D155 | |
| Person / Time | |
|---|---|
| Site: | Grand Gulf  |
| Issue date: | 07/17/1981 |
| From: | SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION |
| To: | |
| Shared Package | |
| ML20009D152 | List: |
| References | |
| NUDOCS 8107230233 | |
| Download: ML20009D155 (29) | |
Text
,
reli SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION f
Annual Report 1980 DR DO O
04 6 I
PDR.y
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Mr. Hubert M. Little, a member of the
' board of directors of South Misussippi Electric Power Association representing Southwest Mississippi Electric Power Association, died on January 17,1981.
The board of directors at its January board meeting adapted a resolution commemorating the life of Mr. Little.
Mr. Little had served in the interest of rural electrification since the inception of the program. He was a long time member of the board ofdirectors of Southwest Mississippi Electric Power Association at Lorman, Mississippi and was for many years active in the Electric Power Association's of Mississippiin addition to his role as director for South Mississippi Electric Power Association.
The dedication, consistency, skill and friendship of Mr. Li de will be missed by the board of directors and the employees of the
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3 A WORD OF APPRECIATION During 1980, R. D. Morrow, Sr., resigned from the board of directors of South Mississippi Elect-ic Power Association after more than a quarter of a century of service. His resignation culminates a long and distinguished career in the rural electrification program.
Mr. Morrow was elected to the board of directors of South Mississippi Electric Po-cer Association in July of 1956, and was elected president of the board of directors soon alter. His leadership has enabled South Mississippi Electric Power Association to compile an enviable record of growth.
Mr. Morrow received a bachelor's degree in General Agriculture from Mississippi State University in 1922. He received a master's degree from that University in 1925. Whi'e at Mississippi State University, Mr. Morrow was presiden: of his senior class, vice-president of the "M" Club and a consistent track star running for more than a dozen championships. He served as captain of the track team in 1921 and was later named to the Mississippi State University Sports Hall of Fame.
Mr. Morrow got his first taste of politics on a large scale by serving as SenatorJohn Stennis' first campaign man.ger. Eight years later, in 1956, Mr. Morrow was dected State Treasurer. The state treasury had a $100 million surplus under Mr. Morrow's leadership. When his term ended he continued to serve the state as B,ank Comptroller.
Mr. Morrow has served as the president of the State Wildlife Federation and Forest Owners, Inc. He served as chairman of the Mississippi Citizens Council on Education for five years. He was an officer for the Mississippi and Industrial Development Corporation, Pearl Rive-Basin Development District, and the Andrew Jackson Boy Scout Council. He has served as president of the Board of Trustees of the Institutions of Higi.er Learning, president of Mississippi State Alumni Association, chairman of the Rankin County School Board, state commander of the American Legion and the American Legion's National Executive Committee.
Mr. Morrow was also a found. and director of the Misi -dypi Chemical Corporation and of the First Mississipp Corporation, i
among a dozer state companies he has serwd as director.
Mr. Morrow has been honored in many ways fr,r his distinguished service to his fellow man. He got the First Federal Award, given annually to four Mississippi doers; the Distinguished American Award given by the Central Mississippi Chapter of the National Football Foundation and Hall of Fame; the Distinguished Service Award of the Mississippi Farm Bureau; the Distinguished Service and Life Membership Award of the American Legion; and, the Governor's Mineral Conservation Award.
In recognition of the many accomplishments of Mr. Morrow, the board of directors of South Mississippi Electric Power Association named the coal fired generating plant near Purvis, Mississippi the R. D. Morrow, Sr.
Generating Plant.
His leadership will be missed. His accomplishments, which are many, are most appreciated.
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l BOARD OF DIRECTORS pm*mq%ij
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l llo a(e il Twtford, Jr. - Coahoma
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Robert St. John Southw est c
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Singing River Electnc Power Asan.
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.l. Eaton - Southern Ptne Electric Power Assn., James A. Rester - Coast Joe Stevens a
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b PRESIDENT'S MESSAGE It is with a great deal of emotion that I write this first President's Report since being elected president of the Association. It is a privilege to serve in this capacity, but it is an humbling experience to try to fill the shoes of R. D. Morrow, Sr. who has served as president of this Association for the last quarter of a century. Mr. Morrow's accomplishments have been many, and he has given much direction to the development of the Association. I commend Mr. Morrow for the splendid leadership he has provided and will make every effort to continue the fine tradition that he has estab-lished for the presidency of this Association.
As I look back over the year 1980, I recognize immediately that it has been a year of grave change. In fact,it has been a year of transition.
This Assosiation made the transition into the nuclear field with the purchase of a 10% undivided interest in the Grand Gulf Nuclear Plant being constructed near Port Gibson, Mississippi. This represents a new sotece of power for the As.ociation and a new direction. As a result of that purchase, the Associative ac-cgted four new members and the additionalload requirements for those members. This exjands the power supply responsibility and creates a tremendous challenge for us.
With the addition of the new member cooperatives came the expansion of the board of directors. Tl., stal number of directors increased from 14 to 22 during the year. This expansion of our bo rd of directors gives a broader base from which policy decisions can be made.
The board of directors lost several valuable members during the year. Mr. R. D. Morrow, Sr., who has served so willingly for so long, retired during the year. Mr.J. T. Dudley, Manager of Singing River Electric Power Associ-ation, retired during the year. Mr. Dudley led the fight for the very existence of this Association for many years and served as its first manager from 1958 to 1967. The year
'o took from us Mr. H. M. Little, Director from Southwes: Mississippi Electric Power Anociation, who served for many years as a conscientious member of the board of directors.
His death will not erase the many contributions that he has made to the board of directors and to South Mississippi Electric Power Association. All three of these men will be sorely missed.
The year 1980 also saw a drastic change in
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the mood of the American public. The election of Ronald Reagan as President of the
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United States strongly points out the desire cf the American public for a more conservative
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approach to federal government. Although tr.ere are many favorable things that will come y.,
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of this more conservative approach, one n.ajor obstacle has been placed before vs. As I
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write these very words, there is danger oflosing some
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us under the Rural Electrification Act.
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So that brings me to where we always seem
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[f to be. In reviewing the annual reports from 1970 through the present, there is one thing
'I 2:I that is apparent. Each year brings its share of major preMems and concerns. However, each year also seems to bring with it solutions and challenge. As we approach the new year, we do so with excitement and enthusiasm. We know that our many friends in the national congress will work with us to insure that cur consumers receive the best av ilable service at
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the least cost possible in today's situation. We acknowledge their contribution and the con-tributions of the many employees of REA, NRECA and CFC and of our friends in the state
/3 and local governments with whom we are privileged to work.
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The year 1980 brought with it its share of c.<
problems.1981 will do likewise, I am sure. However, with the fine board of directors,
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management, staff and employees working together, success will be ours. We will continue
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to provide reliable service to our members at the least possible cost.
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GENERAL MANAGER'S REPORT Changes brought about by the acquisition of a ten per cent interest in the Grand Gulf Nuclear Plant during 1980 affect most all facets of the Association's organization and activities. Loan commitments more than doubled; the number of member cooperatives increased from seven to eleven;th 5 number of consumers ser ed by member cooperatives increased from 175,951 to 218,671; the electricalload con-tracted to be served directly from the Association's generati-- plants increased from 317 MW to 607 MW (1980 loads); the Association's responsibility for direct power supply went into 31 counties not previously supplied; delivery points to be meued by the Association increased from 69 to 133;and the board of directors increased from 14 niembers to 22 members.
South Mississippi Electric Power Association, with these additions, has become a major source of electric power for the citi-zms of Mississippi. All the generating capacity owned by the Anociation is now being I
fully utilized and attention is now being given to the developrwnt of additional gener-ating resources.
Load Growth Load growth, as measured by kilowatt hour (KWH) sales to members, has been very sporadic over the last decade. Extremely hot weather during the summer mcnths of 1980 overcame the effect of high costs and conservation efforts to result in a net load growth of 8.28 per cent for the year. This brings the compound rate ofload growth from 1972 through 1980 to 6.95 per cent.
Actual percentage load growth as a function of KWH sales for those years is shown below:
p (These figures represent growth of the member cc: >eratives over the load of the same coop-k eratives for the previous year and do not includ. che effect of adding new cooperative members.)
% increase Over Year Previous Year 1973 9.92 1974 4.N 1975 9.55 1976 7.85 1977 9.24 1978 6.59 1979 (0.19) 1980 8.28 l
. _ _. ~ _ _ _ ~
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i Cost of Power The actual cost to the Association of producing power increased by 6.32% over 1979, but the revenue derived from the rate in effect decreased by 0.5% (this accounts for the deficit position of the Association for 1980).
The tabulation of revenue actually derived, as shown below, reflects the increases in cost of power to the member systems for the last several years.
Resenue in \\1 ills
' Int rease ( h er h
per KW H Previous Year 14'T 11.61 2H 3 l'P 4 16.83 4; 0 1975 20 4' 21 n 1976 23.97 17.1 1c' 2 29 15o 19 1
'1.40 15 4 19,
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,so 148i1 3' 26 t) ;
The costs to the Association are broken down on page 22cf this report. A study of the chart on that page wol reveal the areas of cost increases during the last several years.
Construction Construction activities took a secondary position in the work of the Association during 1980. Only three such activities are listed here as being noteworthy.
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1.
Modifications to the scrubbers at Plant Morrow included the installation of a chlorobutyl rubber lining in the scrubber modules and the installa-tion of Hastelloy G steel plate in the inlet and outlet ducts of the scrubber.
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2.
Finishing touches were put on the coal preparation plant in Kentucky, and it was placed in operation during January,1980.
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3.
Transmission line construction was very lean during the year. The only line constructed 'vas a 4.9 mile rap to serve the Oak Grove substation of Pearl River Valley Electric Pos er Association.
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8 Grand Gulf Nuclear Plant Mississippi Power & Light Company announced the construction of the Grand Gulf Nuclear Plant by press release on January 22, 1972. Immediately thereafter, this Association expressed an interest in purchasing a portion of that plant. Although conversations were carried on with representatives of MP&L through the years, serious negotiations actually began on September 22,1975 These negotiations culminated in the writing and signing of six separate contracts as follows:
1.
Interconnection Agreement between Mississippi Power & Light Company and South Mississippi Electric Power Association, dated July 18,.979.
2.
Coordination Agreement between Mississippi Power & Light Company and South Mississippi Electric Power Association, dated July 18,1979.
3.
Grand Gulf Nuclear Station Joint Construction, Acquisition and Ownership Agreement between Middle South Energy, Inc. and South Mississippi Electric Power Association, dated May 1,1980.
4.
Income Tax Indemnification Agreement between Middle South Energy, Inc. and South Mississippi Electric ower Association, dated May 1,1980.
5.
Grand Gulf Nuclear Station Operating Agreement between Middle South Energy, Inc. and South Missi,sippi Electric Power Association, dated May 1,1980.
6.
Grand Gulf Nuclear Station Substitute Power Agreement between Mississippi Power & Light Company, Middle South Energy, Inc. and South Mississippi Electric Power Association, dated May 1,1980.
The purchase and operating agreements, the tax indemnification agreement and the substitute power agreement were approved by the Association's board of directors on April 16; a loan guarantee commitment was made by Rural Electrification Administration on October 2; and the contracts were closed and the first funds advnced toward the purchase on October 31.
These agreements provide, among other things, for:
An interconnection to be established between SMEPA and MP&L Co.,
and provisions for buying and selling power between those organizations.
A coordination committee to be established for the purpose of coor-
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dinating the planning activities of SMEPA and MP&L Co.
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C.h The acquisition by SMEPA of a 10% undivided ownership interest in the Grand Gulf Nuclear Station. This acquisition is made through l
q a tax partnership agreement under which SMEPA actually pays the total i
cost for the construction of the plant untilits share of ownership equals i
i 10% and 10% of all construction costs and chses of operation there-after. The Association is entitled to 10% of all power and energy pro-
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{.. dd'Z:5 ?::::ttlCC The purchase by SMEPA from MP&L Co. qf power in the event the
[%DlU Grand Gulf units are not finished within certaih time frames.
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g An additional consideration of the purchase involved the transfer of all the Electric Power Association load served by MP&L Co. to this
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Association. The agreement calls for the trar sfer to take place on the following schedule:
June 1,1980 140 MW June 1,1981 100 MW June 1.1982 Balance (approximately 50 MW)
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This load assumption by the Association will have absorbed all the Association's surplus generating capacity with theJune 1,1981 transfer,
- 4 and the Association will be in slight deficit position until Unit 1 of Grand Gulf comes on line, now estimated te occur in late 1982. (This deficit will be covered by short-term M
purchases of power from other utilities.)
[..b Fuel and Power Purchases
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The Association received the first t.
oad of washed coal from the new
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coal preparation plant on March 11,1980.
-e The cost of coal at the mine increased from $24.97 per ton to $30.49 per ton during the year.
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4 The unit train freight rate increased from $11.51 per ton to $13.28 per
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Raw coal mined on the property owned by the Association in Kentucky
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ton.
gy came to 1,327,414 tons during the year.
[4 Banks & Associates, transportation consult.nts of Washington, D. C.,
e were retained to make an in-depth study of the propriety and fairness of the unit train freight rate.
A report, dated July 16,1980, from Banks & Associates indicated that
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the treight rate being charged the Association was higher than it I
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should be under current regidauons of the Interstate Commerce
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The Staggers Rail Act of 1980, which deregulates the nation's railroads,
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was passed and went into effect on October 1.
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The Association carried on extended negotiations with Sandy Fork Mining I
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the placing in operation of the coal preparation plant. These negotiations
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resulted in approval by the board of directors on November 19 of $30.00 r
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per ton for clean coal, effective / oril 1,1980. A method of escalating the
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'j 7.: -j allowance for the rejection futor has not been agreed upon as yet.
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The gas contract wir' United Gas Pipeline was amended April 15 to pro-br '
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The first purchase of emergency energy fiom Big Rivers Electric Corpora-i.,-
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.;j vide for a new (and higher) rate based upon the price of No. 6 oil M
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s tion ir' Kentucky was consummated on May 17. This resulted from m o r"'
gotiations with TV A on the part of Big Rivers and MP&L Company on the par of this Association to deliver pcwer from Big 3,
Rivers through the systems of TVA and MP&L Company to serve this s (,
Association's load.
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1 10 Finances Advances received from the Federal Financing liank (FFli) during the j
year totaled $92,605,000 at an average rate of 13 645%
FFP. notes maturing and " rolled over" totaled $85,104,000. The average interest rate on these notes increased from 8.476% before extensions to 11.241% after the extensions.
Total FFli advances through 1980 amount to $225,259,000 at an h
average interest rate of 11,744% At the year's end, all these advances vere either two or thre ; year notes.
'he Association received a loan guarantee from REA in the amount I
of $400,000,000 for use toward the purchase of a 10% undivided interest in the Grand Gulf uclear Plant. As of the end of the year,
$89,210,000 had been advanced under this loan guarantee.
The Association continued to maintain an open line of credit with CFC and increased the amount from $12,000,000 to $25,000,000.
The Association allocated capital credits for 1979 to its members in the total amount of $3,413,822.
Refund of these capital credi 6 was not made because of the Association's failure to meet requirem, nts of REA as prerequisites for such rcfunds.
The Association applied for a loan from the New Orleans liar.k for Cooperatives in the amount of $60,000,000, but, at year's end, this loan had not been approved.
g Planning Dames & Moore continued work on the site selection study and the fuel study. At year's end, these studies were drawing to a close, but reports had not been received on either of them.
A report was received from 15utord Goff & Associates reconunending changes in the radio communications system of the Association.
Planning and environmental work continued durig the year on the proposed i..terconnection with Alabama Electric Cooperative. Public hearings were held both in Alabama and Mississippi on the proposed routing of the Gne, and the Associat on submitted an environmental i
repor to RE A.
f Oreaniiation A staff attorney was employed for the fint time during 1980.
4 A second double wide trailer, known as Annex 11, was purchased and placed into position at the rear of the headquarters buihling.
Wage adjustments of 3.38% and 4.0", were made in M_y and Nmember respectively. tThe 4.0% increase was not received by employces in the bargaining unit npresented by the llRwa A new Harris general purpose computer was purchased and delisered during the year. This computer will be plac ed in service during 1981 and will be used for accountn % engineering, materials management, other general purpmc and rn Lou al uses and as a supplement to the control computer in t he < on n o; tenter.
The number of the emplosecs of the Associaton increased f rom 203 to 215 durmg the year.
. __ _ _ _ =
11 Safety 18 reportable accidents were experienced by the Association during the year, a reduction of 57.1% from 1979.
The number oflost time accidents was reduced by 80% and the number oflost t me days was reduced by 78.6%, both figures from i
1979.
As of December 31,98% of employees had completed both first aid and CPR co" ses taught by the Association.
A safety committee, representing all departments of the Association, I
meets on a regular basis, and makes many recomm:ndations for im-proving the safety program. Awareness of safety problems and procedures is high among both management and non-management employces, and the entire organization seems to be working toward improvingits safety program.
Miscellaneom The Association received certification by the Mississippi Bureau of Pollution Control as to the lawful operation of the air pollution control equipment at Plant Morrow, and permit-tere issued accordingly.
All environmental permits to operate the coal preparation plant
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in Kentucky were obtained, and the responsibility for operating under those permits was transferred to Sandy Fork Mining l
Company.
A lease was signed with Cabot Oil Corporation for the oil and gas rights on the property owned by the A sociation in Kentucky. As of year's end, this lease had not been approved by REA, but 1
approval was being sought.
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Approximately 124 miles of transmission line (10% of the system) was groundline inspected and treated during the year.
256 miles of transmission he was inspected by walking patrol during the year.
386 miles of transmission right of way were recleared during the year.
An appeal by the Association to the Fifth Circuit Court of Appeals
~
on the certification of the IBEW to represent certain employees of the
- v Association was lost during the year. As a result, a negotiating com-l
.. D mittee was established and negotiations were undertaken with Local 903 of the IBEW. Those negotiations were continuing at year's end.
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l In conclusion, I would like to personally thank the board of directors for its outstanding leadership during the year and to thank each employee for his or her faithfularss and dedication to thejob which we share together. The dedication and loyalty of the men and women employed by the Association mak possible its successful operation and the providing of dependable service to all our members at the lowest possible cost.
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12 BALANCE SHEET Assets (Note 2)
December 31,1979 and 1980 1979 1980 Utility Plant (Notes 1 and 3)
Electric Plant in Service - at cost
$261,320,835
$283,748,343 Construction Work in Progress 16,928,498 91,237,467 Total Utility Plant
$278,249,333
$374,985,810 Less: Accumulated Provision for Depreciation 21,305,619 29,447,020 Net Utility Plant
$256,943,714
$ 34 5,5 38,790 Other Property and Investments Investmentsin Associated Organizations (Note 11)
$ 4,374,040
$ 4,992,701 Other Investments, including Temporary Investments 1,212,500 862,600 Special Deposits (Note 4) 391,189 417,800 1 5.977.721
$ 6.273 101 Current Assets Cash - General Funds 388,269 103,890 Cash - REA/FFB Loan Funds 141,442 9,942 Deposits - Pollution Control Bond Proceeds (Note 5) 2,106,412 2,257,763 Accounts Receivable - Member Consumers 8,136,953 11,792,364 Accounts Receivable - Other (Note 15) 707,423 122,849 Fuel Stock, A' terials and Supplies (Note 1) 12,276,079 16,431,247 Other Current and Accrued Assets 470,442 527,523
$ 24,227,020 5 31.245.578 Deferred Charges (Notes 8 and 10)
$ 3,571.470
$ 5.016.192
$290,719,933
$ 388.073.661
13 Liabilities and Other Credits (Notes 8,9 and 11) 1979 1980 Equities and Marginis (Notes 6 and 7)
Memberships 35 55 Patronage Capital 3,413,822 51,543 Other Equities 535,436 535,436
$ 3,949,293 587,034 Long-Terrn Debt (Notes 1 and 8)
RE A Mortgage Notes
$ 63.824,394
$ 63,902,382 Other Long Term Debt 209,706.132 303.756.927
$273,530,526
$367,659.309 Current and Accrued Liabilities (Note 1)
Notes Payable - Lines of Credit (Note 9) 59,2 t;
$ 2,900,000 Accounts Payable - General 6,754,492 10,267,783 Accounts Payable - Retainage 5,379,923 4,781,886 Accrued Taxes 63,965 85,406
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Accrued Interest 630,125 1,377,963 Other Current and Accrued Liabilities 170,293 237,336
$ 13.058.037
$ 19.650A24 Deferred Credits (Note 10) 182,077 176,894
$290,719,933 5388.073.661 N
The accompanying notes are an integral part of this statement.
14 REVENUE & PATRONAGE CAPITAL For the har Ended Decernber 31 1979 1980 Operating Revenue and Patronage Capital Electric Energy Revenues (Note 14)
$95,938,935
$108,389,316 Income from Leased Property - Net 1,111,895 1,010,451
$97,050.830
$ 109.399.767 Operating Deduct'ons Operating Expense (Notes 1 a id 15)
Production - Steam
$28,232,809
$ 41,660.211 Other Power Generation 327,956 123,062 Cost of Purchased Power 37,582,696 37,511,186 Transmission 451,314 1,438,895 Consumer Accounts 13,160 19,932 Administrative and General 1,611.816 1.846.457 Operation Expense Total
$ 68.219,7 51_
$ 82.599.743 ;
Maintenance Expense Production
$ 1,138,781 5 1,571,563 Transmis: 'on 616,613 922,129 Generall ant 59.705 100.987 Maintenance Expense Total
$ 1,81$,099
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' (94 67.2 j Depreciation Expense (Note 3)
$ 7,225.336 S 7 36'E Tax Expense
$ 219,556 S
233.915 Total Operating Deductions
$77,479,742 5 92,791,206 Interest Expense 17,617,744 22,335,810 Interest Charged to Construction - Credit (1,122.650)
' 1.677 n85)
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$ 93.974,836 5113.449.931 Net Operating Margins (Loss)
$ 3,075,994 s ( 4,050,164)
Non Operating Margins 337.828 687.88s Net Patronage Capital or Margins (Notes 1 and 6)
$ 3.413.822 5 t 3. 362.279) s The accompanying notes are an integral part of this statement.
_m
15 CHANGES IN FINANCIAL POSITION l
For the Year Ended December 31 1979 1980 Funds Were Provided By Net Margins (Loss)
$ 3,413,822
$ ( 3.362.279)
Add: Expenses not Requiring an Outlay Of Working Capitalin Current Period:
Depreciation, Depletion and Amortization 7,545,871 8,103,414 Additions To insurance Loss Deductible Reserve, $60,000,less Losses Charged Thereto (Net) 59,489
( 5.1831 NRUCFC and Other Capital Credits (Non Cash)
(6,584)
( 1,449)
Increase in Long Term Debt - REA Advances 431,000 1,762.000 Increase in Long Term Debt - REA - Other
' Note 8) 167,866 increase in Long Term Debt - Other Advances -
t FFB 16,716,000 92,605,000 Gross Proceeds from Pollution Control Revenue Bond Issues 2,455.000 Increase in Long Term Debt - Other - Sandy Fork Train Loading Facility, Kentucky 267,000 Salvage Credits, Less Retirement Costs 7,621 139,295 Increase in Membership Fees 5
20 Decrease in Deferred Credits (1,083) Decrease in Special Deposits - Kentucky Utilities (Note 4) 38,855 74,449
$ 28.372.862 5102 037.267 Funds Were Used For Extension and Replacement of Plant
$10,214,595
$ 96,837,785 Transmission Fnilities Acquired from Distribut on Cc, operative (Note 8) 167,866 41-i Payments on Long Term Debt - REA 1,534,728 1,666,719 Fayments on Long Tecm Debe - REA - Other 14,144 17,293 Payments on Long Term Debt - Other 577,567 1,276,205 Payment of Capital Credits 2,439,937 Increau n Investmentt - Associated Organizations 474,525 617,212 increase in Other Investments (Decrease) 912,167
( 349,900)
Increase in Special Deposits - Other 4,513 101,060 Increase in Defstred Charges 60,354 1,444,722 Increase in Working Capitsi 11,872,466 426,171
$28.372.862
$102 n37.267 The accompanying notes are an integral part of this statement
16 Net Changes in Working Capital 1979 1980 Increase (Decrease)in Current Assets Cash -Geneul Fuads and Loan Funds
$ 313,653
$ ( 415,879)
Unadvanced Funds - Pollution Control Revenue Bond Proceeds
( 1,839,936) 151,351 Accounts Receivable - Consumers 2,524,056 3,655,411 Accounts Receivable - Other 375,402
( 584,574)
Material, Supplies and Fuel Oil 7,524,040 4,155,168 Prepayments and Other Currents Assets
(
88,912) 57,081
$ 8.80R.303
$ 7.018.558 Increase (Decteue) in Current Liabilities Notes Payable - CFC
$( 2,805,761)
$ 2,840,761 Accounts Payable - General and Retainage
( 266,767) 2,915,254 Accren' Taxes
( 6,130) 21,441 Accrued Interest (52,370) 747,838 Other Current and accrued Liabilities 66,865 67,093 E 3.06>.163)
$ 6.592.387 Net increase in Working Capital 111 RM.166 426.171 The accompanying notes are an integral part of this statement.
s
17 NOTES TO FINANCIAL STATEMENTS
- 1) Surnmary of More Significant
( 2) Assets Nedged Depreciation is computed monthly on Accountmg Policies straight line composite rates for GT Plant Substantially su assets are pledged as accounts as foUows:
(:) The accounting records of South security for long term debt.
Miami-typt Electric Pet Association (SMEPA, South Misa...
( 3) Electric Plant, Depreciation and
^--d Depleti n Procedures alppi or Aasociation) conform t$ tie o
A Uniform System of Aecounts pro-scribed by the Federal Er ergy Following are the major classes of utility t==
1"*
Legulatory CommI= ton for Class A plant as of December 31,19 7 9 and 19 8 0
[**'",",,",,'""""
[
a.ad B electrie utthties macfied for
<..v ao electrie borrowers of sne Rural
- =4+=*
Electrification Administration.
U N
(b) Pe petual inventory records are main-tained for materials and supplies. The e..-6
.a e
. r.
s emes a m as m'" 'a' No depreciation has been taken in the
', 'n" various inventory items, including N"" N' ' d-d 7 -
5" 7
- "".N.'.'."'d"*""
fuel supplie are priced at average No*'
[
$*Q current or prior years on Land and Land tost. Transfo.s of materials and sup-ir plies to construction and operating v.- s, n a2s m is m isi Rights.
costs are recorded monthly.
,,M ;I,lh General Plant assets are also depreciated (1) The portion of long term debt due in monthly, on yearly straight une composite one year is not reflected as a current
' * ' + * * " - - " - ~ *=
0.='.d rates as fonown liabihty in the balance sheet.
s w.o. m.. w sm man ::s sa.e m Of total long term debt of
( =* e d = %
- m "!
"1"*
8867,459,309 shown as outstanding MM
- M (i December 31,1980, following are principal amounts budgeted to be sa - n.ra==
8m 7"..,*[,,.,.,"..".,"""e t,-.
'"'""*"d paid as principal reductions dudng
,m
,m the calendar year ending Decomber r
mm asm g
i.h a.,- e. v.A so, a 31,t931t expense allocried to this account in
.a ny, se
- == 4-9= $=
"p %,
,[
1972.
(*u) Includes 8431.238 at December 81,
,.,,,,g,,,
1979 associated with construction of e
m-4 u,..,
ine
- u. m em
% u, R. D. Morrow, Sr. Generating Plant ussw %
,, p,,yg,-
u.
s % 1.,
c#,
r m
(c) SMEPA and Middle South Energy, Inc.
(MSE),
a subsidiary of
."", "j, Mid, South Utilities entered into a Depletion of cost of Kentucky coal
- d "
joint construction, acquisition and reserves is computed on a " tonnage sold"
%m
.. w m
.a. w i A n* M ownership agreement or er about basis calculated to fully amortiae su th "l*f 7 "'"'
May 1,198 8, where*uy SMEPA and costs when estimated coal reserves have mm MSE agreed to construct the Grand been recovered. This property is presently M
sm--
Gulf Nuclear Station (GGNS) in leased to an independent coal producing Claiborne County, Mississippi. When company for a royalty based on selling complete, SMEPA will own an undi-price per ton, vided 105 interest in GGNS. MSE's undivided interest upon completion
( 4) Special Deposit (f) A portion of interest on borrowed wiube90%.
funds for construction, less income SMEPA advanced to Kentucky Utilities from invested construction funds, is GGNS includes all land and rights, Company $ 373.2 4 3 in 1919 to cover the rapita11:ed as a component of the units numbers 1 and 2 and au reac-estimated cost to Kentucky Utilities of cost of construction of utility plant tors, generators including buildings constructing fa.:111 ties necessary to supply until such construction is placed in housing said equipment, inventories electric service to SMEPA's coal prepara-service and is reflected as a reduction of materials, supplies, fuel, nuclear tion facility in Kentucky.
Kentucky 4 f interest expense. Rates used for capitalization are equivalent to actual fuel and any and all ot ? property Utilities is applying this deposit toward for use in connection therewith in-electrical services furnished SMEP/. at the rates 1,ald. If SMEPA had not cap,.
cluding additional land, facilities rate of t e n of its electrical bli'. per year talized such interest, net patronage and other p.operties as may be effsetive January 1.198 0. Elwtric energy (apital or margins would h.M been reduced by 31.122,480
,g acquired, constructed, replaced and furnished SMEPA la beQs billed at 81,871,085 for the years 1979 and installed provided such facilities are Kentucky Utilities' regular rate for like for the common use of MSE and consumers except that total charges per 19 8 0, respectiv.ly, SM EP A, At December S t. Its e calendar year may not be less than C) Revenue from energy sold to SMEPA's accumulated costs la such 8163,500.
The maximum period for Mississippi Power Company and property shown I ere as "Construc-which SMEPA receives credits against this Miss!ssippi Power and Light Com, tion Work in Progress" totalled deposit for energy used is five (5) years, par.y is offset in the accounts against cost of energy purchased from out.
849,193,467. Anticipated Lotal con.
after which time any remaining unuse:1 struction costs by SMEPA are esti-deposit will be forfeited.
Kentucky side suppliers.
mated to be approximately Utilities applied 835,820 toward electrical 4400,000,000 upon completion.
service billed while SMEPA expensed 814,4 4 9 (2 0 % of deposit) in 19 8 0.
I
.t
l 18
( 5) Deposits. Pollution Control Bond Rural Electrification Administr: tion United S tates of America actina Proceeds Other Electric Plant Purchased through the Administrator of REA.
During years prior to 198 0, SMEPA These mortgages will also secure This account include the unadvanced agreed to purchase, subject to REA other debt of SMEPA to REA, and, portion of proceeds and accrued interest approval, certain transmlnsion facu-in certain cases, to CFC. Interesi from Pouution Control Revenue Bond itles of Singing River (SREPA) and is due semi-annuaUy sencept as noted issues guaranteed by National Rural Southern Pine (SPEPA) electrie above regarding Serio 19 80 C fundsi Utilities Cooperative Finance Corporation power associations.
Entries were on each of the bond issues. Interest (CFC) in 1977,1918 and 198 0, These mede in the accounts of SMEPA and principal will be tendered te CFC funds are on deposit in various trust setting up these assets at SREPA's for transmittal to the trustees for the accounts of Morgan Guaranty Trust and S" EPA's net book values at the bondholders, Morgan Gwanty Trust Company of New York and Deposi' acquisition dates. Balances owed on Company and Deposit Guarant)
Guaranty National Bank (Mississippi),
these notes at December 31, 1980 National liank.
Invested in short term CD's bearing in-totaDed $508,211 and is included terest at rates ranging up to 18J85 at in the balance r%eet as Long Term The serial bonds associated with these December S t,19 8 0.
Advances are req.
Debt-REA Mortgage Notes. Neither issues began maturing semi-annually ulaitioned from these funds as required, transsetion had been finalized with in 19 8 8.
Principal psyments in 19 8 0 approval by REA at the audit report were 8650.000 (1917 Series).
( 8) Detail of Net Patronsge Capital Or date.
$ 4 0,0 0 0 (1918 A Series) and Margins
$ 10.0 0 0 (1978 A1 Series). Term Federal Financing Bank (FFB) bonds of all issues mature in the Not reflected in other long term years 3 9 01 ($ 31,7 2 0.0 0 0 ) and 2 0 0 8 debt is unadvanced portion (81,000,000).
Mandatory semi-(8854,654,000) of notes executed annual sinking fund payments since 19 7 4 to FFB. The proceeds required in connection with term from FFB were or are being used for bond matu ities begin in 1998. Nonc
. r.w
,a-,, - w i: -
o.o u v
u.v.. n em w completion of R. D. Morrow, Sr.
of the boa is of any series represent tw P9, e.. h =+
i?"'
Generating Plant at
- Purvis, a ger.eral oblisation of the issuer, e
o omu Mississippi and payment of retalr. ages Lamar County, Mississippi, nor of the u =m r -
%. w, inie.
sc associated therewith, purchase of rail-State of Mississippi, anor are they a u em i.e a -
Ln
_s M road cars used to transport coal from oharge against the credit or taning its Kentucky properties to its Purvis power of such County or S4Me.
Plant, tu finance the cost of coal pre-(See also 1917 and 1978 auut paration facilities constructed on its reports for additional specific infor-land in Kentucky and to finance the mation).
Margins assigned to members for all construction of an undivided 105 years through December 31, 1918 were interest in Grand Gulf Nuclear Counsel for the cooperative advises retired l'y cash payment in 1979. Margins Statio n in Claiborne County.
that all financing documents.in addi for year 1919 were assigned to members Ml==Imalppi (See Note 8(c)). These tion to those named above, relative-f uring 19 8 0.
notes are for periods r* appromi*
to all bond issues including certaio mately 35 years each and principal guaranty, assignment and agenc>
( 7) Other Equities payments are deferred for seven (1) agreements between CFC and the years t a the date funds are trustees have been properly executed The balance in this account at the dates advanced under the notes executed.
Indicated represents contributions made by present and former patrons during CFC PoUution Control Bond Issue Kentucky Cos; Property (1914 Purchase pre-operating years and is carried in the This account represents principal Other long term debt also include!
seneralledger as Donated Capital.
balance due t.n bond issues of CFC 15 notes totalling 8643,426 a Guaranteed Pollution Control December 1t,198 0 payable in cori
( 8) Long Term Debt Revenue Bonds, Series t 917 t 918 A, nection with Kentucky coal propertle-1918 A-1 and 1980 C lasued by purchased in 1914. These notes ar<
Rural Electrification Administration Lamar County, M i==I= =ippi total, payable over a tea (10) year perio<
CEA) ling $ 4 8,2 8 0,0 0 0.
Series 19 8 0 C is
' rom 1914 and are secured by mort Unadvanced funds on notes ezecuted referred to as " Interim Series 198 0 gases on real property purch. sed to REA not reflected in long term C", a short term issue of 8 2,4 5 5,0 0 0 Other debt totalled
$5,410,000 at maturing in two (2) years, payable December $1, 1980.
Long term to CFC. Funds are being used for Also reflected as long term debt a December 81, 1980 are notes witt debt to REA is represented by 25 lining poUution control equipment and 55 mortgage notes payable to (serubber) with hasteUor metal and balances due totalling 8803,436 t<
the United States v! America. The rubber, Interese is equal to 455 of member cooperatives under pro notes are for periods of 3 5 years each.
prima, is adjus'ed monthly and billed daions of power equ.dization o Quarterly.
Accrued interest at supply agreements for constructio of transmission facilities leased t.
Under the provisions of the losn December 31, 1980 was computed at December 31,1980 was computed Misalssippi Power and Ligh agreements, principal payments '.m deferred for three (8) or five t )
at 11.5 4 5 (65 5 of prime of 11.16 H.
Company, an amount SMEPA agree <
years from the date of execution of SMEPA is required to pay all princl.
to pay Breeder Reactor Corporattor (BREEDEtt) for its pro-rata portior the notes.
pal and interest installments on of estimated cost of research t.
these obligations as they become due Principal repaid during the year and CFC has unconditionally guaran-develop a liquid metal fast breede reactor to produce electrie eners, totaued 81,684,012 and interest on teed these payments both as to prin-these obligations amounted to capal and interest. SMEPA's obli-(8 I4 8 261) and a contractual agree
$ 1,8 8 4,141.
It is estimated that sation to make such payments is ment (an amendraent to Coal Suppli payments of principal of 81,14 0J 66 evidenced by Pollution Control Notes Agreement between SMEPA and it e al producer) to pay a fee for loadin wul be made to REA in 1981 issued to CFC and secured by Supple-together with interest totauing mentrJ Mortgage and Security agree-its G,alEPA's) coal for shipment t-
,,M EP A, of $ 2 6,6 0 2 per month fo approximately $ 1,9 5 3,9 7 6.
ments among SMEPA, CFC and the seven (1) years (totalling 81,803,610
19 at December 31,1980, the contract erstion plant coverages. This reserve was (15 ) Refund Receivable Mississippi balance or which is in leferred established in accordance with generally Power Company Charges).
During December 1980 accepted industry accounting practices.
SMEPA determined that approxi-Charger. to income (and credits to the In February 1981, the Miani==ippi Public mately 8287,000 additional cost had reserve) of 4 6 0,f 0 0 were made while Service Commission approved a settle.
been incurred over the original esti-865.13s, representing
- losses, were ment of litigation involving damages mate and have accordingly added charged to the reserve in 19 8 0.
awarded Minstasippi Power Company such r. mount to the debt to be (MPCO) from Peabody Coal Company amortized beginning sometime in (11) Contingent Liabilities (Peabody) by the U. S. District Court
-1981.
and the American Arbitration Association The Association entered into a binding related to coal purchases by MPCO from Regarding BREEDER referred to r,reement to subscribe to CFC unsecured Peabody during the years 1975 through above, in 19 7 7 BREEDER suspended subordinated CTC's commencing in 1980. W 'CO proposes to pass on such requirements that yearly payments 19 7 3 through 198 3.
Sirchos are made damages, less litigation expenses plus
$ f participants in this progr&m be annually in amounts approximating 0.7 %
accrued interest, to its customers which made when the (Jnited States of of operating revenues. The balance of include SMEPA and certain of it's America curtailed its financial parti-the subscription obligation at December (SMEPA's) member cooperatives who are cipation in this program. Charges 31, 1980 is established at $ 3,9 0 0,00 0, parties to SM EP A's " Agreement for against ineome of 8 2 3,3 7 5 in each of Equalization of Power Costs."
the years 1978 through 1980 ( and After reviewing correspondence regarding concurrent credits to Deferred asserted claims and pending litigation in SMEPA expects to receive, directly and Charges) were recorded although no which the cooperative is a defendant and indirectly through its members, approxi-payments were made to BREEDER.
discussing all such claims and litigation mately 84.5 million as a result of this Future payments to BREEDER wiu with General Counsel and management of settlement,.rhich amount was recorded be dependent upon the government's the Association, we concur in the opinions in the general books of accouats in March essential involvement in the program.
of counsel and management that the out.
1981 (after we completed our audit if and when the project goes forward come of such actions currently pending field work) as a receivable from MPCO (the GAO issued a report in 19 8 0 will not have a material adverse effect on with an offsetting credit to deferred supporting cos.tinuation of the the operation of the Association.
credits.
This credit will be properly Clinch River Project) the currently disposed of as a credit to prior' years deferred installments will be called (12 ) Sstatement of1979 Financial margins or amortized and credited against for as well as other installments as Statements future years operating expense as soon as they become due.
additsonal and more precise information In son's cases the 19 7 9 financial statements can be obtained and discussed with
[ 9) N:tes Payable Lines of Credit as shown in the 19 7 9 audit report may management and REA.
have been restated in the enclosed report
[MEPA had an established short term due to reclassification of certain accounts Other Notes line of credit of $ 2 5,0 0 0,0 0 0 with on the general books of account in 1979 CFC. which matures November to, and/or for compaastive pury m of 19 79 Income Tax Status - More than 8 5 % of the its1. Interest rate is prime which at with 19 8 0.
Association's income is collected from its members.
December 31, 1980 was 17 3/45.
Exemption from federal income tax has been SMEPA had drawn $ 2,9 0 0,0 0 0 (14 ) Sales to Major Custorr.ers (Member obtained and Internal Revenue Forms 990 have against this line of credit at Consumers) been timely filed.
December 31,19 8 0. SMEPA also has c commitment for credit with Deposit SMEPA is an electric energy generation Guaranty National Bank (DGNB) up and transmission (GT) association and as to 8 3,0 0 0,0 0 0 to cover temporary such, normally sells its energy to relatively working capital needs, each advance few member consumers. Sales comprising payable within four (4) days from more than 10% of total revenue to single date of advance, at DGNB's prime consumers were made during 1979 and rate. This commitment is supported 1980 to five (5 ) member consumers E*; -,
,'t --~.%.D*Q by a conditional stop order of ranging in amounts from $23.6 million N a-
- % c ed
~. %
83,000,000 agains* the above refer-down to 810.4 million in 19 79 and from red to credit line with CFC and 825.3 million to $11.4 million in 19 8 s.
.,eyf*oQ y
. ?.$*. * **%
%g, matures August it. 1981.
No g_, *M.%
advantes against this line were payable (t December 31st.
QO) Deferred Credits
,sO.*f %,.
s n".'(QF ED, tw,,,,,,,,,,**=s u 3he balance in this account represents
"'8 p,,
royalties on deposit (842,977) in in escrow bank account received fros
- sale
&f coal on certain land, title to which is 4.,, 46.
in dispute (the bank account balance is
.", d p=,.,, " *at a=. N,6,aw. %
nom,l,,,*' =.Ej4ad u.l,/ft Es=,3,,
included in deferred charges) and an e'"" *=nes."'**.ae ni
$ ****aw M* aa 7,,"j*'r= r
% IeO.'., D.'.*[*l** %.
insurance reserve totalling 8131.806 at
- rapore.,"*=,.g;4.",QrUr'*
$*l*g December 31 1980.
This insurance
=.
=, L';,=a..*.Qv, reserve is being increased at the rate of
.D,,% a=
- 8wm.",.'.g*'%
,QaEc(*D *% r-%r E 'Q -
I,,*'*ge.,.,,,,,
840,000 per year untilsuch reserve reaches approximately C 5 0 0,0 0 0.
It was estab-lished primarily to compensate for the
%e J7',*,='"p,U*QN ",*g. r wgg.er,gg',,,,,,,
large insynnce loss deducitibles on gen-
- E's r,.*8 8% pQ%=
4"* *t r,
a F.
'~ e:.,.,,,,
@@<==..
e- ~.e
20
- o OPanarina Exessses ca,,,,,
Aaog ' " * *
- Wam -
4.43 g
'i'
/
Transm "s*:6~
mWs/gwyg _
6.6 7 g 2l":: pro ~d. Empeg
(.33 yMWs/gwyg _ i 2.08) g
/
16,y 3 IK%gg_ II33 5 Fuey S t.g g "D/EWIg
- 3.12 x 4 2.j 4 **Ws/Kwgg _,0 8.0 0 g coars g.,
f
- Intenance
.f s g O her
- Ws/K g 38 S
- 21. 7
/ emf ~ 27,4g,
y,3,3 manfgggg n II a 4.2 n o.e, 5 Payro
"* fits & T**es nWs/gw,g _
8.4 4 g c.,,, 'mWs/gwyg, i 3.08) g ;
Purch sed Pow,,
Fuel 2 2 g ' *Ws/Kwsg _
- t.s s g t s 'g 4 *Wsinwig _,88.co g
/
These two pie charts show the actual 1980 expenses of the generation and transmission system operated by SMEPA (without the " Borderline" Transactions). Chart A shows these i
expenses broken down by major accounting categories. Chart B shows ;he same expenses broken down differently in order to clearly show the types of expenses.
l=
l l
t
'L -
21 b
..............,.:,,..~....v Chart "C" A & G Expense 1.13 mi't SCWil-2.91 %
l-Transmission Expense 1.7 0 mP s. iCWH -
4.36 %
Other Power Supply 12.39 mu vaCWH - 33.13.%
1.
Other Prod. Expense 9.51 mh/KWH - 2 4.4 3 %
'i Fuel 13.69 mGis/KWH - 3 5.17 5 38.92 mills /KWH - 10 0.0 0 %
r-Chart "D" Contract Maintenance
.24 mills /KWil -
.61 %
Other 1.10 mills /KWil-2.82 %
Interest 7.00 mills /KWII-17.99 %
Depreciation 2.5 6 mills /KWH -
6.59 %
Payroll, Benefits & Taxes 1.44 mills /KWH -
3.59 %
Purchased Power 12.39 mills /KWII-3 3.13 %
Fuel 13.69 mills /KWH - 35.17 %
33.92 mills /KWit - 10 0.0 0 %
I.
These two pie charts show the actual 1980 expenses of the generation and transmission system operated by SMEPA (including the " Borderline" Transactions). Chart C s! ows these expenses broken down by major accounting categories. Chart D shows the same expenses broken down differently in order to clearly show the types of expenses.
b v
22 ELEMENTS OF COST I.. SMEPA's Own Generation & Transmission System 1975 1976 1977 1978 1979 1980 Cost of Fuel Burned in SMEPA's Plants - /MMBTU 131.15 160.32 177.0. 17530 181.87 196~
Production Costs and Purchased Power / Interchanged Power-mills /KWH 16.60 20.29 22.4?
22.15 21.54
~ 3.78 Transmission O&M-mills /KWH U
.5)
.'/4
.89
.87 L34 A & G Expenses-mills /KWH
.59
.61
.75 1.00 1.37 1.11 Depreciation & Amort.-mills /KWH 1.37 1.40 1.41 3.40 5.86 4.18 Interest - mills /KWH 1.12 1.25 1.08 5.57 13.10 11.57 Taxes and Others - mills /KWH
.11
.09
.35
.27
.25
.16 20.27 24.13 26.75 33.28 42.99 42.14 II.
Borderline System 1975 1976 1977 1978 1979 1980 Purchased Power /!nterchanged Power - mills /KWH 20.55 23.39 27.39 28.09 30.61 33.94 Transmission O & M - mills /KWH
.01
.01
.02
.03 Depreciation & Amort. - mills /KWH
.04
.04
.05
.05
.04
.02 Interest - mills /KWH
.03
.03
.06
.06
.05
.03 TOTAL - mills /KWH 20.63 23.47 27.52 28.23 30.70 33.99 111. Total System 1975 1976 1977 1978 1979 1980 t
Production Costs and Purchased Power / Interchanged Powe r-mil'.IKWH 18.35 21.67 24.68 24.82 26.26 27.80 Transmission O & M - mills /KWH
.27
.27
.41
.50
.42
.81 A & G Expenses - r. ills /KWH
.33
.34
.41
.55
.66
.68 Depreciation and Amortization-mills /KWH
.78
.80
.79 1.89 2.83 2.53 Interest - mills /KWri
.64
.71
.62 3.10 6.30 7.00 Tax es and Other - mills /KWH
.06
.05
.19
.15
.12
.10 TOTAI-mills /KWH 20.43 23.84 27.10 31.01 36.59 38.92
+,. a
'. y '.\\.?a i.'.~ jg.i
.t -u '
'zi,y
&ng _ r '
9' n s
, !g.
-4
.y
., ;.z -i e g
. s
%,r -
.x
' q '
,?.
- ~.u..
1 %.." e >. '
w
,e
-w
- +
23 COMPARATIVE
SUMMARY
ENERGY SOURPF.S. MWH 1975 1976 1977 1978 1979 1980 Generated:
Steen 514,545 479,771 779,572 1,228,110 1,282,352 1,837,173 Other Generation 6,501 5,846 20,117 23,930 7,975 1,794 521,046 485,617 799,689 1,252,040 1,290,327 1,838,967 Purchased:
Firm, Protective & Unintentional 508,090 619,932 395,125 74,270A 78,150 83,801 Borderline 793,124 860,756 960,978 43,927A 75,416 86,642 1,301,214 1,480,688 1,356,103 118,197 153,566 170,443 Interchanged Power 924,939A 1,156,683 964,703 Total 1,822,260 1,966,305 2,155,792 2,295,176 2,600,576 2,974,113 SALES - MWH Southwest Mississippi EPA 165,478 185,646 241,433 254,388 254,046 266,854 Dixie EPA 236,925 254,539 283,556 325,892 316,449 335,904 Peart River Valley EPA 216,602 229,617 244,581 266,292 280,'/59 308,089 Singing River EPA 466,085 501,061 545,442 562,480 543,743 594.207 Southern Pine EPA 536,285 587,605 611,838 642,224 634,255 678,457 Magnolia EPA 165,431 177,535 178,268 192,592 197,845 219,749 Coast EPA 334,848 406,035 Yazoo Valley EPA 68,553 Coahoma EPA 5,258 Delta EPA 18,255 Twin County EPA 7,781 Mississippi Power Company 235 175 8,372 Total 1,787,041 1,927,178 2,113,490 2,243,868 2,561,945 2,909,142 TOTAL SYSTEM DEMAND-!O/
417,139 445,817 473,251 520,432 619,162 742,680 (A) Accounting Method changed in 1978,
24 COMPARATIVE OPERATING REPORT REVENUE 1975 1976 1977 1978 1979 1980 Sales ef Energy
$36,581,399 $46,195,188 $57,399,015 $70,655,998 $95,938,935
$108,389,31' Other 140,631 172,778 272,888 289.147 1,111,895 1.010.45 Total Revenue 36,722,030 46,367,966 57,671,903 - 70,945,145 97,050,830 109,399,76 EXPENSE
^ Operation Expense:
Production-Fuel Cost 8,370,788 9,571,057 16,770,261 26,160,937 26,973,759 39,810,41' Oth'r Production Expenses 411,795 452,645 458,811 1,201,621 1,587,006 1,972,854 Purchased Power 23,806,259 31,492,395 34,429,746 27,721,339 37,582,696 37,511,18(
Transmission 172,436 207,643 382,677 487,997 451,314 1,438,895 Consumer Accounts 10,243 9,504 12,342 10,679 13,160 19,93j Administrative & General 557,429 611,472 818,011 1,175,735 1,611,816 1.846.4 SY Trtal Operation Expense 33,328,950 42,344,716 52,871,848 56,758,308 68,219,751 82,599,743
. Maint; nance Expense:
Production 208,428 192,450 494,113 604,850 1,138,781 1,571,562
"'ransmission 335,783 342,217 488,335 637,655 616,613 922,129 un ral P! ant 13,901 26,619 37,110 43,792 59,705 100,987 Tot 21 Maintenance Expense 558,112 561,286 1,019,558 1,286,297 1,815,099 2,594.670 Depreciation 1,371,296 1,504,568 1,648,309 4,224,653 7,225,336 7.362,86T Taxes 64,433 71,493 96,883 161,134 219,556 233,91q Inter;.st Expense (Net) 1,495,090 1,676,134 1,895,200 7,362,657 16,495,094 20.658,725 Tot:J Expense 36,817,881 46,158,197 57,531,798 69,793,049 93,974,836 113,449,931 NET OPERATING MARGINS (95,851) 209,769 140,105 1,152,096 3,075,994 (4,050,164 NON-OPERATING MARGINS 53,961 52,795 82,130 138,309 337,828 6R7,8 F NET MARGINS (Loss)
$ (41,890) $ 262,564 $ 222.235 $ 1,290,404 $ 3,413,822 $ (3.3G27
25 LOAN COMMITMENT SOURCES Loan Commitments
)'
$ 5 8 8,5 2 3,0 0 0 E
9 E
?.
E F
Actual Advances Against Loans 500 l
RuralElectrification Act Amended May 11.19 7 3 400 l
Outstanding Loan Commitments by F.F.B.
Loans guaranteed by R.E.A.
300
?l, l
b
- 3 ;>?
F.F.B. Loans (12 41-8 0 )
150 Guaranteed by R.E.A.
Aserage interest as of 12-814 0 l 10.74%
100 Pollution Control Bonds l
Average Interest Rate - 6.2 %
$ 3 6,7 4 9,0 0 0 Loans from Others - 5.7 5 R.E.A. Insured Loans - 5 %
50 NN'.
N R.E.A. Direct Loans - 2 5 0
O E
". O5 U U U U 5 E i
t l
i i
i l
I l
l I
l
(
MANAGER MANAGER OF MANAGER OF MANAGER OF PRODUCrlON TRANSMISSION FINANCE & ACCTNG.
SUPPORT SERVICES i
PRODUCTION TRANSMISSION FINANCE & ACCTNG.
SUPPORT SERVICES i
DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT l
122 employees 48 employees 9 employees 18 employees l
1 Manager 1 Manager 1 Manager i Manager I
1 Dir. of Fue!3 6 Control Center 1 Chief Accountant 2 Personnel f
35 Plant Moselle _
1 R/W Maintenance 7 AccountingClerks 3 Purchasing 85 Plant Morrow 3 Vehicle Main.
2 Computer Analysts 2 Iluildings & Grounds 2 Material Clerks 15 Line Section 1 Job Training & Sifety 20 Electronics &
1 Office llelper Substations 6 Secretaries I
27 ORGANIZATION s
MEMBER SYSTEMS BOARD OF DIRECTORS ASST. TO THE GENERAL MANAGFR GENERAL MANAGER l
M MANAGER OF MANAGER OF MANAGER OF STAFF LAND ENGINEERING ENVIRONMENTAL ATTORNEY AFFAIRS LAND DEPARTMENT ENGINEERING ENVIROMENTAL AFF.
STAFF ATTORNEY DEPARTMENT DEPARTMENT 2 employees 12 employees 1 employee 1 employee 1 Manager 1 Manager 1 Manager 1 Attorney 1 R/W Agent 4 Engineers 3 Draftsmen 1 Construction Supervisor 1 Work Order & Billing Clerk 2 Co-op Students 215 Employees (December 31,1980) o
I i-I l
l 28 l
SERVICE AREA l
l l
- 1. Coahoma Electric Power Asan.
2.
Delta Electric Power Assn.
l 3.
Twin County Electric Power Assn.
4.
Yazoo Valley Electric Power Assn.
- 5. Southwest Miss. Electric Power Assn.
l 6.
Southern Pir.a Electric Power Asan.
l 7.
Magnolia Electric Power Assn.
l 8.
Pearl River Valley Electric Power Assn.
9.
Dixie Electric Power Assn.
- 10. Singing River Electric Power Assn.
- 11. Coast Electric Power Assn.
l Transmission System Load Responsibility Off System Load
)
1 l
1 l
l l
t I
- ~..,.,
.,-....m,.-._.~....
F~
l 1
l t
,1 NRIC NM ASSOCIATION
% Leht c the Fonist-
\\
crarana,tyau*.
iga,op i..
,1,.r...w tWH % to-MM6 Sou-h Mississippi Electric Power Assoc.
OPER ATING REPORT - FIN ANCI AL s o a a "" c ' 5 * " " Mississipp:
U.s ar c a it ? vc N r O r a G al v e r u a t.a r a a a s C NG
- oN.o.O.202 s 2
" > " E ** C M M3V 31
'I 81
'H s T RU C TIch s - W,r encml e d [cv -m r 4 d, s tm,.
f e le*ml-d a rt s cw v. <-e U t AII."i IN:
l A E A l'#S E C NI' Y Um,hl,,eev, e vi n <,. M M F A I m f i t. 1:% I:c. IM. I:r. I:!. e 4 lis. I'n e** ' '*~' i s m ml +l* ' V f I l ~ f.' h I
sECTION A.
B AL ANC E 5H E E T Assets AND OTHER DEB 6Ts LI A BILITits AN D Q TH E R CR EDITS
- v. foTat vriutv plast r= stavrCs..
235,258,525 a ususta m os-55
- 2. c oN s r a u C ?ic N acat m *accatss.
2la,929,291 2r.
a aouace cani a..
. tor au u riur
=t aur is a..
500,137,006
- s. assicws: Ano ass swasts 5,G53,75F
- 4. accuu.paovisiew ros espacciaw s wrr.
32,914,471 8 = t ris t o s v t.
2,439,9lC
- s. =c t u riu r v at a w r t ' - 4i.
467,272,535
- c. a t ia t a== = v t a n s..
- s. ~oy.u n u e v a =o a t a r v - ~ e..
4
- t r m a + = e s a c t c a.. r i...
3,413,31.
- 9. m v e st.m a ss-c.. ac..m a r oon a c t e a a,+ at 48,777 2,
e.g.ar y u, m s,,,,
,,,a
.. (
3,362,279
- 8. lN V t5 7. I N A5 sC.:. O RG,.QTH E T1 G EN.8 VN 05___
1,065 2 s. = =t a a risc wa a 9s - c ua at u r v t a a..
..(
"l,663,994 s.s INVEST.. A55Cc. O RG.. OTwr N. NON C.F.
4,909,809_
- 20. wesoacaa'mc wa asms.
165,579 12,600
- v. orata unacms + c:omes.
535,436 s.or-ca m.csrut es.
- o. sat:ia t ruwes...
2 2. r o t a t us e s s ec u m t s e.'nt t w ri...(
911,37!
.. r ov a t o r, =.a c or a r v a m mr.u th,= ice 4,972,251 n tc~c ' tau crer - ata 63,555,349
,2. c a s - c e s t a
- L r u~ t s,
3,207 is.touc-rEau Oc97 - T -* E a..
4 2 7 d14, 7 5 h,
- o. c a s-. c%s r auc tiO N r u N C s. T a u s r e s..
9,4Q3 1s, 7 0
- a, t;q3 r e a u O g g r / o. m.
. __4 9 0, 6 7 0,10 ~
,s.s t:ia.. otposit s.
656,784
% sorts on.a ste 1,725,000
.s. r e u.
.. a < m e t s r u t u r s.
400,000
- n. accou~ rs a a v n ett.
17,716,25~
is. worts at:tiv a s te. %e -
11,250
- n. r a v es a ccano..
77,661 9,3'O'3,7 _56
.. accou,-s at:tiv a sts nc e.
1B,140,227! n. m r r = tsi a t:a u t o.
is. rec t s r ec <.
16,778,715 ao. o r Ea cuaa c 9 r s a cc =u t o v a siu vits..
377.370 29,200,O U i,. w a r r aia ts s su aav es. o ~ta.
3, 2 8 2., 1 9 9 si.
cr a t cu== cur s ac:=uto t.a s. w.m m
^
2a.
atoavut es.
5 7 3, 7 0 0 l a2. c r e c ac e c =t:ir s..
2,. or ta cunat%r s ac: auto assets.
25,933 a cotaarm: a tsc a s t s..
l_3_g, 917
- 22. vor at :v==tur s ac auto asscto e rri 39,881,508 sa. A c :,,,.,u t a t c c E r taar : inc:ut
- a x es.
a s. usuca'.:c er cisc. s t = T a a oac.==o tess 923,927 as. Y or a t t.a etu ric s s c % r, c at oies 5.j., l a,, 0 9 --
9 2a. oe-E n :t t t = at e e t si's.
6,067,474
' ' ' -
- 8 ' r w e r r..
519,117,6951 ~'
./ 25 o n
.e at i m n.- ~,a ~ a.-s See B-Statement of Cperaticas fra Sales 1,000,416 1,250,860 1,268,645 238,643 l
Y E AR - TO - DarE u t.. '.s ircu
'wisvram aym$g+
tasT wraa l
. Ett:taic E scaov arvzuu rs.
37.499.585 I 50,926,331 50,894,900 9,939,055
- z. mccut r =ou t r a sco== oat arv - ~c t.
473,197 l 986,953 359,910 171,934
- s. orata catma rmo arvewut a mceur.
31,no7 t 14,234 35.000 9.53
- 4. rora s cata. a r v r wuts s pa r aowa st c a p. < l rw 0.
3R,On3,469 i 51,A27 51PI 51,239.9101 10,120,42:
- s. owt a n no, e v ar us t-paeouc rien-t = ct r u c..
725,595 6 800,744 916,1801 179,069 sa cata a rios c u atust a=ocuc tion ruct..
11,422,475 i 16,434,693 18,363,40B!
3,139,732_
- o. esta a rios t = atust - ov=ta aca ta suppty.
1s,34i 956 l 20,514,09e 17,132,650i 3,979,546
- 7. ces a a tion t < =sust - r aa nsuissiew.
241,403 i 943,302 912,3101 193,792
- s. cavia riou ex atwsc - cis+aieu'iew.
--- I
- s. co< aa now ex acust - cowsvuta ace:ves.
8,101 9,963 8,460 2,489 s.t cara a tiow e x ar wse - cess. stav. s'+.rc eu.
io cataa rien E xecust - satts.
___ j
-c -
ii. ootea rios t = =cwst - acumisraarve s cent aa t.
-c 7, nn s i 837,o,-
006,1601
- 164, 2(
12)torat opta a rios tr ousst a tw ili.
39,540,377i 36,139,169
.,/,bao,400, i s (wa mt t ~a nc e e x ac Nst
- vcries.
28,501,535 3 1
616,836 I 609,5261 767,07SI 9 2, h 5 s a lva mrt na sc e e x as ss e - ra a sswission.
279,507 i 400,314 431,0801 31,542 s
is. uamrtwa wer c a ptust - cisvaisu riew.
1
--- I is. u a m e tw a nc e t r atwsc - ocN e aa t at a nt.
52,409 i 48,9401 36,755, 13, 0 %._
t v. 7 0 r at ua m r tw a nc e s = =c us t ri t % la s.
~
948,752 1 1,067,2511 1,234,9101 137,06j t e. ossatein rioy s aucarizar ew trotuse.
3,040,941 l 3,078.255l 3,140,92;l 643, T e s. r a x t s.
9,072 1 122,4461 136,09 1
,, a ~-
a.,--
,---,._-_l 4,450,24
- 22. m tats? On Lewo-r t au : tar
.I 3,345,552 1 19,501,763 3,,. 3 3, >3 - -
2 e.t et a t st c-a as te t o cc~s* =uc i:w-: = t:.7.
.0 7 9 -' 736 h 9.925,637 0
20.2 OTHtR Intent:T ExotNSc
. -, s 's y
' A, _' _'.'
'; ' ~
7,981 8 3,.' o.'
s 2'. O'-t a O t ou t 'c N s.
24,091 23,722f 25,315!
4,~2'
- 22. T a' a t ccs? e r E t t e t =ic sc avict 't:, i: tw m 40,563,186 1 53,431,asa o
,4.:;,.
H TO,5 6 3,3 2 ;
2 3. 0 =c a a v o v a n a m s, s - ;;i--
.d( 2,564,319)4 1,663,9941( 1,133,4630 (
449,'55
?-
- 'T ra w are e ur
,1
,gc,9q-i 2-M :d
<c..
,..g=57
(
- 26. OTwcrt won.catta tsso sNCOUt. Ne t.
f
- 47. G E N c2A 'sCN 4 f nA N$wissiCN OA#f f A L C#EOi's..
1
~==
27.1 OTHE A CAD 8T AL cetO8Ts ANO PAT. Olyj0$NCs,
69 j 4h h
se.txtmaccoiwanv etus..
i l
as. = t ? *a r ecuac t c a pir a t on u anciwn tw m..
( 2,297.295)i ( l.499.409 (
'd3.4o30 4* U N'
,u.
i viuus n a s g c r,.a
- s. e, v., s.,;
n.tute'=ctweasy=estuvepen4 45 Lo.
40.71 40.12 41.65 i
an. votat c=cnariou aue vain twa wer pta Ant soto.
32.46 31.03 32.89 nr. vorat ces' or alterare gge,. t *ta na4 solo.
42.76 41.32
- u. oue: w a s t: me.g. ::sr ege5.*
44.29_,
1 c;, o i g,q3 17,39 l e ne*e n certa, tut ts* ent** e e ss rus e:er*
i M the system est that the report re!!rets the status of the s pstem to the best of our (non ledse and behef., s nels Mg M t. l Form
}
9 m.
rin.p e-t.
I cart-sic ae a r.; r 4 'iT L t e r s't a tns c a r na m.no trour cart i
m u a 'if re e e
,r n e e na-l.
g,,
e po-a Y
V d
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Me,.
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