ML20023B703

Annual Financial Rept 1982

ML20023B703
Person / Time
Site:	Fort Calhoun
Issue date:	04/29/1983
From:	Spence G OMAHA PUBLIC POWER DISTRICT
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ML20023B697	List: ML20023B696 ML20023B703
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NUDOCS 8305060091
Download: ML20023B703 (24)

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OMAHA PUBLIC POWER DISTRICT

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L OMAHA PUBLIC POWER DISTRICT t

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i EXECUTIVE OFFICES - i f Electric Building i

' 1623 Harney Street Omaha, Nebraska 68102 TRUSTEES Morgan Guaianty Trust Company of New York, New York, New York (1954,1956,1957,1958, 1961,1966,1968, and 1969 Bonds)

The Northern Trust Company, Chicago, Illinois (1972,1973,1975 Series A and B,1976 Series A and B, and 1977 Series A, B, and C Bot kis)

PAYING AGENTS The Bank of New York, New York, New York (1975 Series A Bonds)

Morgan Guaranty Trust Company of New York, New York, New York (1954,1956,1957,1958, 1961,1966,1968,1969,1972,1973,1975 Series B,1976 Series A and B, and 1977 Series A, B, and C Bonds)

Continental Illinois National Bank and Trust Company of Chicago, Chicago, Illinois (1954, 1956,1957,1958,1961,1966,1968,and -

1969 Bonds)

The Northern Trust Company, Chicago, Illinois (1972,1973,1975 Series A and B,1976 Series A and B, and 1977 Series A, B, and C Bonds)

First Northwestern Trust Company of Nebraska, Omaha, Nebraska GENERAL COUNSEL Fraser, Stryker, Veach, Vaughn, Meusey, Olson, Goyer & Bloch, P.C., Omaha, Nebraska l

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Abouthe Cover The cowrof Omaha Public PowerDistrict' s 1982 Annual Rtport shows the utshtys' new corporate logo and colors.

This new visualidentity was adopted as part of a multi-phase Energy Management Program, which has gained nationalandever Intemationalattention. The purpose of this program is to shape customer usage to available capacity, delay construction of our next generating unit, improve the haancial stability of the corporation, achieve and maintain m favorable rate control, and help our customers save money

OPPD SERVICE AREA: 1982 HIGHLIGHTS 5,000 SQUARE MILES The District serves 570,000 people in all or part of Operating Revenues 13 counties in eastern Nebraska. Electric service Operating revenues for 1982 were $233,319,000, is provided to the following 48 incorporated com- an increase of $10.773,000, or 4.8%, over 1981 munities at retail: operating revenues of $222,546,000.

Alvo Colon Louisville Rogers Arlington Cook Manley Rulo Operation and Maintenance Expenses Ashland Eagle Mead Salem Avcca Elkhorn Memphis South Bend Operation and maintenance expenses for 1982 Bellevue Elmwood Morse Bluff Spongfield were $145,666,000, an increase of $9,531,000, or Bennington Fort Calhoun Murdock Valley 7.0%, over 1981 operation and maintenance Boys Town Gretna Nickerson Washington expenses of $136,135,000.

Burr Herman North Bend Watertoo Cartir Lake Hooper Omaha Weeping Oowa) ithaca Papillion Water Net Operating Revenues Cedar Bluffs Kennard Peru Winslow Net operating revenues, before depreciation, were

$80,088,000, an increase of $77,000, or 0.1%,

over 1981 net operating revenues of $80,011,000.

OPPD also serves Blair Elk Creek, Greenwood, Syracuse, and Tecumseh at wholesale. Net Earnings Reinvested in the Business

.. Net earnings . reinvested in the business totaled

$1,880,000, a decrease of S4,443,000, or 70.3%,

under 1981 net earnings reinvested in the busi-

"""" ness of $6,323,000.

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[ General Business Sales Fmt General business sales to District customers were J 5,050,841,000 kilowatt-hours in 1982, an increase

,h, of 48,903.000, or 1.0%, over 1981 sales of 5,001,938,000 kilowatt-hours.

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, Average Number of Customers

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- savaus The District served an average total of 216.556

, customers in 1982, an increase ct 1,769, or 0.8%,

over the 1981 average total of 214,787 customers.

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' ' ' * ' Average Residential Use Average annual use per residential customer in "8 1982 was 9,898 kilowatt-hours, an increase of

" 319, or 3.3%, over the 1981 average of 9,579 kilowatt-hours. The average annual residential use

_ by OPPD customers was 12.2% above the

'* national average of 8,821 kilowatt-hours as com-g puted by the Edison Electric Institute.

Average Residential Cost The District's residential customers paid an aver-age of 4.74c per kilowatt-hour during 1982 compared to 3.39c per kilowatt-hour in 1946,

( ' muust g. eceasesse OPPD's initial year of operation. OPPD customers

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paid 26.1% less than the national average of w.% . _ . ' ~ ~ ^ -

6.41c per kilowatt-hour as computed by the Edison Electric Institute.

1982 Construction Expenditures Expansion and improvement of system facilities during 1982 required construction expenditures of

$41,033,100.

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PRESIDENTS REPORT

, expenditures for system mainte- 1981. Much of this can be attrib-

f. nance and capitalimprovements uted to a 16.1 percent increase

( to $41 million in 1982. That was in revenues from residential cus-9.7 percent lower than the previ- tomers and a 16.9 percent ous year and the lowest in the increase from commercial and past seven years. industrial customers. These A portion of the funds normally increases in operating revenues U: were due to several factors, t used for capitalimprovements including increased funds col-was diverted in 1982 to the Dis-trict's investment in fuel lected through the fuel and inventories. Despite efforts to production cost adjustment hold these inventories down, clause, which is included in the

' District's rate structure, and a

- they have increased substan.

tially in recent years because of 5 percent rate increase which lower than projected demands, went into effect in March 1982.

the existence of take-or-pay fuel OPPD's net earnings reinvested contracts, and the requirement in the business, which mirrors t $ 9 the overall health of the corpora-en] t ot us tion, were $1.9 million in 1982, quently cancelled nuclear unit. a decline from the 1981 total of l It should be pointed out that $6.3 million. This drop in earn-Con ress is not considering ings signaled the need for this

'I legis ation which would allow utility to raise revenues and I utilities to renegotiate coal con- reduce operating costs.

s tracts as it did with the natural gas industry. We continue to re- Another significant step in main-evaluate our operations in order taining OPPD's financial to see if we can further econo- strength came in February 1983, mize and still continue to when the Board of Directors P approved two rate increases.

Gene R Spence Omaha Public Power District e e system hey **Pe -

President of implemented a number of pro- The first of these increases,9.7 Omaha Public grams in 1982 aimed at in addition to its ambitious cost- percent, will be effective March Power Distnct strengthening the utility's long. cutting efforts OPPD 1983. The second,0.6 percent, President. Western term operating and financial implemented a long-term Energy will be effective March 1984.

Secunties Com- positions. The programs had Management Program dunng pany. Omaha three basic objectives: cut 1982 which is initially aimed at During 1982. OPPD sought to operating costs, increase sales, load building or increasing sales estabfish a more progressive and increase revenues. Success of e.lectricity during off-peak and aggressive image. As a in achieving these objectives will periods. In the future, the pro- result, a new corporate 1000 and enable this utility to maintain a gram will be expanded to colors are now carried onDis-sound financial position and emphasize reduced usage of trict vehicles, stationery. and all assure our customer-owners a electricity during peak demand corporate communications.

continued reliable supply of penods.

e!ectric,ity at costs well below The need for load buildin pro- changes in ap a ance how-the national average. grams is reflected in OP Ds ever, is the fact that OPPD is A number of activities were initi. 1982 sales and revenue figures. working even harder to live up to ated during the year to reduce Energy sales in 1982 to residen- this new image. We have always operating costs. Examples of tial and small commercial and been a good utility but we are these activities include industrial customers increased now striving to serve our cus-renegotiated contracts for fuel 4.1 percent and.3.1ficantpe:

respectively, a signi cent tomer-owers even better. We and freight rates, reduced are committed to the people of expenditures for construction, improvement over 1981. How- eastern Nebraska and their ever, those increases were energy needs today and in the and increased automation of records management and job offset by a decline in sales to years ahead. As a result of this scheduling. As a result,in spite other utilities which were 60.1 commitment. we are working of inflation, increased regulatory percent be. low 1981. The cause harder than ever to provide them requirements and other uncon. of the decline stems from lower all of the energy information tained expenditures, the growth in, electrical demand they want and need. This is a District's operating expenses resulting in surplus capacity. significant communications increased only 7.0 percent dur- Total operating revenues during effort, but one that will ultimately ing the year. We also limited our 1982 increased 4.8 percent over serve our customer-owners well.

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BOARD OF DIRECTORS All of the programs introduced at OPPD this past year were (L) Richard RJettries influenced and guided by a Vice Fresident highly motivated and profes- Decutive vice sional senior management staff. President.

Each of these managers, under -

Godtarher's the direction of the general man- Investments. /nc.,

ager, have exhibited outstanding Omaha leadership, qualities and have played an important part in the j utility's successes during the (

, (R) Warren B.Swigart past year. y Secretary Sales Representative.

During 1982, we welcomed War- N Roodge l

ren R. Swigart to the Board of .' Company. Omaha Directors. A longtime member of f the Omaha City Council and a , I,'i '

k former state senator, Mr. Swigart c (L) Mary Alice Race

.g began a six-year term on the <

Treasurer Board, January 6,1983. He replaced John P. Munnelly who

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Retired. Veterans chose not to run for another C Administration, Omaha term. Mr. Munnelly served on ,

the Board from 1975 through ' -

1982.

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(R) Keith B.Edquist l Two vacancies were created on '. sV  ;.4 Board Member the Board in January 1983, the first by the death of Frank J.

- g x Mi President.

Husker-Hawkeye Hogan and the second by the Distnbuting resignation of Michael F. Egan. 0o.. Inc..

In addition to being a board Omaha Bellevue member, Mr. Hogan served as OPPD president for four years.

He was dedicated to the people of this District and served with

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'~~'t Vr pr -

x- ;r - y (L) Dennis 0.Jorgensen Board Member distinction. r President.

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In March 1983, Nebraska Gov- -

ernor Robert Kerrey appointed .

Morris F. Miller and Dennis D. pgk '

Jorgensen to fill the vacancies. (R) Morris E M!l.'er Both directors were appointed Board Member to serve untilJanuary 1985. Retired. Omaha National Bank.

The future looks promising for Omaha Omaha Public Power District.

The increased efforts to hold down costs and increase sales, plus adequate revenues through '

newly adopted rates, assure us that OPPD will continue to fulfill its commitments of responsibility and reliability to its bondholders, its ratepayers, and to the State of Nebraska.

A.y Ac6 Gsne P. Spence President

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GENERAL MANAGER'S REPORT needs for generating facilities. A record of 203 days of continu-The first part of the program is ous operation was established

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an off-peak marketing plan at the 486.300-kilowatt Fort Cal-designed to build load during houn Station in 1982, breaking the cooler months when load the previous record of 99 days.

demand is low. The emphasis in A new capacity recorc' was set d this part of the program is cen- at the nuclear plant in January w n tered around promotion of the when it reached a net electrical

( 7 .3 Y electric heat pump. All available media are being used to inform output of 486,300 kilowatts. In addition, a new monthly produc-g ~- - M O our customer-owners that elec,-

tricity is now the fnost econom-tion record was set in March.

ical energy source in eastern These Ws se a h ie Nebraska for heating and cool- cation of the cont.nued reliability ing. The year-end results of of the Fort Calhoun Station.

f these efforts were very promis- The coal-fired Nebraska City

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ing. Between August 18 and Station set a continuous opera-December 31, a total of 291 tion record in 1982 of 126 days.

heat pumps were sold and This was the best production

( installed in our service area. run since the 585,700-kilowatt Projections in 1983 for in- plant went on line in May 1979 cieased commercial and resi- and broke the previous reccrd of dential housing construction in 76 days.

S the OPPD service area are also OPPD.s response to two major

• Y cause for optimism.

storms in 1982 demonstrated The second part of the Energy f".. .

. Management Program will b the effectiveness of our Storm Restoration Plan under all-out effort to establish is util- th extremely e an adverse conditions BemardW Reznicek Action to assume an aggressive sty as the energy information and the skill and professionalism GeneralManager role as a dynamic energy com- leader of eastern Nebraska. of the many employees who OmahaPcbhc pany and energy information To accomplish this, we are were involved in restoration Power District increasing our customer com- activities. On June 14, strong leader, implementation of our strategic plan, plus new produc. munications in all areas of winds and heavy rain moved tion records at two generating energy usage and conservation. into the District's service area plants, made 1982 one of the Part three of the program, causing severe damage to the most exciting years in recent encouragement of on-peak con- electrical system. Quick and OPPD history. trols,is currently in the research concerted response by the Dis-Implementation of a strategic stage and is expected to be fully trict resulted in service being planning process, a modern and implemented in the mid-1980s. restored to all customers the fol-professio,ial management tool, At that time, customers will be lowing day. Hundreds of OPPD was the basis for many changes encouraged to utilize control employees worked around the at OPPD in 1982. The plan, systems in an effort to reduce clock for four days to restore air conditioner usage during service following a December 27 which addressed all areas of our operations, enables senior man- peak periods. The long-range ice storm and blizzard that left goal of this part of the program over 51,000 customer-owners agement and the Board of Directors to effectively antici- is to defer construction of new without electricity throughout generating facilities, which our 13-county service area. This pate events, evaluate their impact, and develop specific would result in savings of mil- storm resulted in hundreds of lions of dollars in capital downed poles and primary and actions to create desired results.

expenditures and interest. service wires. Final restoration One of the most signi,icant costs totaled $821,000.

results of the strategic p'anning A major benefit to OPPD and process was the deveicpment of our customer-owners in 1982 Continued favorab!e relations a multi-phase Energy Manage- was the outstanding perfor- with labor unions at OPPD ment Program. Launched mance of the Fort Calhoun and in 1982 resulted in ratification in August, this is an innovative Nebraska City generating of one-year contracts with three-part effort to improve plants. Records for continuous two locals of the International our load factor and increase operation were established at Brotherhood of Electrical revenues while defemng future both facilities during the year. Workers. These two locals 6

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t ASSISTANT GENERAL MANAGERS l

i represent approximately 80 percent of OPPD's 1,915 F WW'~

" V: q (L)GerhardtRBahle

, employees. SeniorAssistant

' GeneralManager

! During 1982, two membe s of  ; w senior managemer:t- Gerhardt

P. Bahle and Eldon C. Pape - +

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(R) Eldon C.Pape were appointed senior assistant q SeniorAssistant general managers. Mr. Pape, GeneralManager OPPD's chief financial officer, is _

now also responsible for Strategic Planning, Budgets and i Forecasting. He will continue to direct the Accounting, System Planning, Finance, and Finan-cial Auditing Divisions. Mr. Bahle is in charge of two of OPPD's g g largest divisions- Electric (L) Kenneth S.fieldins Operations and Engineering.

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s 488/Stant General Manager i

The enthusiasm and coopera-l tive spirit exhibited among d} ,

employees in the past will again . o - (gj panfef p, getfy be called upon in 1983. We'll be -i' ' Assistant General striving to hold the line on m Managar

spending and to make improve-

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ments in operations whenever they will be in the best interest of +

our customer-owners. With this .

l positive attitude, I am confident - "I we will be able to continue serv-ing the energy needs of eastern

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- d Nebraska in a reliable manner and at the lowest possible cost. (L) William E. Miller Assistant Generr Manager

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,. (R)lloyd C.Shalla SpecialAssistant GeneralManager B:rnard W. Reznicek 5

General Manager e

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m 1982 OPERATIONS REVIEW Strong employee support for centralized records manage-actions to reduce the impact of ment and overa!! District rising costs and sales that were operations. One major benefit below projections made 1982 a which is currently being realized year of success for Omaha as a result of this additional I y~. - w ' ~

Public Power District. computer capacity is the auto-mation o' job scheduling during

! In April 1982, a renegotiated the refueling and maintenance g agreement between OPPD and outage at the Fort Calhoun Sta-

- the Rosebud Coal Sales Com-e pany resulted in savings to the tion. This type of activity will ,

M utility of $7.6 million. This new result in mcreases in overall effi-contract, for Wyoming coal used ciency and productivity N" 1 I at the North Omaha Power Sta- throughout OPPD.

I l W8l tion,is based on a revised Analysis of data from the 1962 formula for payment of reclama- experimental load management tion costs. program indicates signikant

, A $6.7 million refund from Bur- potential for long-term savings lington-Northern Railroad in July for OPPD's customer-owners

, resulted from an out-of-court throagh voluntary control of resi-

,, settlement of a lawsuit over dential air conditioners. Initiated freight rates for coal which had in 1978, in cooperation with the 1 been delivered to the Nebraska Department of Energy, the load City Station. OPPD filed the management research points to lawsuit in April 1982 after Bur- a possible 100,000-kilowatt lington refused to honor a 1978 reduction in projected peak load contract in which the railroad by 1990 if 70 percent of the p ug w vug OPPD agreed to refund the difference single-family residential homes pgnFetN!H MAKING between freight rates charged in OPPD's service area are con-AtT5 YOUR BEST ENERGY BUY OPPD and rates charged a trolled. Air conditioners in those II OMANA EVEN BETTER neighboring towa utility. homes would be controlled an While savings from negotiations average of 14 days a year. It haE,

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on coal contracts and freight also been proj,ected that sys-rates were felt immediately, temwide implementation of the other programs initiated in 1982 voluntary air conditioner control system could delay construction

, C will mean long-term benefits and of a new generation facility by savings for OPPD and our cus.

-.  ? tomer-owners. For example, a three to four years, if that is i ,- # - ,

major records management pro. achieved. millions of collars will be saved in capital expenditures ject was imp!cmented during the and interes'. Although partial year which automated manual

- -1 i " ' - Db .- tasks required to maintain over funding foi the project trorr the

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1,000,000 quality assurance Department of Energy was dis-(top) Senior Meter Man Grant Keran snd Construction continued in June 1982. OPPD Equipment Pool Supervisor Vem Capatite display an OPPD records for the Fort Calhoun vehtde with the new corporate logo, which is part of the nuclear plant. With this new pro-new visualident/ty program introduced in 1982. cess, records are now classified, ment experiment through the microfilmed, indexed, and sum r of 1984 to explore he s cment Program po or even grea ne-(bottom) was announced OPPD' innovative Energy Manheeting. entered at the annualEmployee held at into the computer for Omaha's histonc orpheum Theatre. quick retrieval and reference. fits for customer-owners.

Significant savings are also Further development and expected in the future as a expansion of the utility's Work resuit of action taken in 1982 to Force Management Program in update OPPD's data processing the Electric Operations and Pro-capabilities. Two additions to our duction Operations Divisions in corporate computer were 1982 also resulted in additional installed during the past year to savings to the utility. This accommodate more efficient expanded program, which is M

designed to improve the effi- has been in operation ten years, ,

ciency of operations, now was a workhorse for OPPD cus- l covers 61 percent of the non- tomer-owners in 1982. With j supervisory work force. scheduled outages at the other -

Cumulative savings totaled major plants, the Fort Calhoun approximately $1.9 million nuclear plant produced almost through 1982. Even greater 3.5 billion kilowatt-hours, or annual savings are expected in nearly 56 percent of our total g the future with further expansion generation. This reliance on the of the program into other areas nuchar unit in 1982 also of District operations. resulted in lower fuel costs of S73,866,000 for the year, com-  %

While many OPPD activities in l pared to $77,399,000 in 1981.

l 1982 centered around success- The heavy demand and ability '

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ful cost-cutting measures, to deliver underscored the ~

considerable attention was also value of the nuclear facihty .

directed toward improving the in 1982.

efficiency of operations to com- g bat risMg coats. Evidence of the Production at the Nebraska City

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/, _ g Station in 1982 totaled 1.8 billion success of those efforts was the in-depth evaluation of the Fort Calhoun Station by a team of kilowatt-hours, or 28.7 percent of the total generation. During .

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4 inspectors from the hstitute of 1982, a scheduled maintenance y Nuclear Power Operations outage in the first half of the g- '; .

(INPO), a non-profit organiza-tion that establishes standards year and a damaged turbine feed pump restricted output to ,

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for excellence in the operation 60 to 70 percant of capacity for ) 4 i

. l of nuclear plants. All utilities several months. Increased pro- -

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with nuclear plants belong to duction at the coal-fired plant is _

INPO, which has proven to be expected in 1983. , ,

an excellent information clear- The 629,600-kilowatt North inghouse for members. The INPO team noted the plant's Omaha Power Station, OPPD's k oldest coal-fired generation s record of availability and capac-ity factor and concluded that the facility, was used primarily as a peaking station in 1982 because

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plant was being operated and of the high levels of availability 6 maintained by a high'y experi- of the Fort Calhoun and i~'

enced and professional staff. ."

Nebraska City plants. The five '

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Thorough planning and a high North Omaha generating units ,

l level of professionalism were produced 990 million kilowatt-also evident in the tenth annual hours last year.

(q 7 emergency drill at the Fort Cal-of total generat ion. or 15.8 percent -.

houn Station, conducted ,in Because of OPPD's commit- (top) Planning Anal

, September to test OPPD s ment to cut costs and the Specialist Damon bst strop andLynette SeniorMeter Hansen Short. Planning Man AlKeating l emergency procedures under reduced demand on OPPD's closely monitor progress and development at OPPD ~s simulated conditions. Represen- system, the oil- and gas-fired experimenta/ Load Management Pragram.

tatives from the Nuclear peaking units at the Jones (bottom) Foreman Floyd Malm and Joomeyman Machinist

Regulatory Commission and the Street and Sarpy County Sta- De/ GreunAe inspect repairs made on the turbine ryor Federal Emergency Manage- tions were only used sparingly betore installation at OPPDs ' fort Calhour "uclear piant.

ment Agency observed and in 1982.

critiqued the drill. They con-cluded that OPPD personnel Long-term savings, plus mproved daily ef ficiency and

, and officials from four surround- safety of operations, will result ing counties who part.icipated in from the add!! ion of a new the drill performed according to mobile radio communications e industry standards.

system, which was purchased in The Fort Calhoun Station, which 1982 to replace a system that E'

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1982 OPERATIONS REVIEW (CONTINUED) l i

( had been in use by the utility implementation of sound and l

since 1949. This new radio sys- innovative programs to improve tem will consoldate all radio the financial position of OPPD  ;

systems usea by OPPD and link and to satisfy the energy all vehicles and facilities needs of its customer-owners throughout our 13-county ser- and identification of clearly vice area. The new system will defined short- and long-term also improve OPPD's response goals made 1982 a significant s' time during major storm restora- year for OPPD. The accomplish-tion activities. ments in 1982 are a source of Two new programs developed in optimism as directors, manage-

' ment, and employees renew s 1982 focus on the health and x safety of all employees and their the comm,tment i to provide the families. The Employee Assis, best possible service to our tance Program, a confidential customer-owners at the lowest counseling service, was initiated possible cost.

N in August in cooperation with a N local hospital to help employees and family members resolve

_N s x personal problems and promote A positive morale.

OPPD also joined the Wellness Council of the Midlands, an organization comprised of mid-west corporations that emphasizes staying well g through good health and safety practices rather than treatment

. of medical problems. The con-cept is a b-cad approach to a long-standing OPPD concern for A -- -

n = (4 -

s 4g employee health, accident pre-vention, and safety on and off the job. One goal of the program

~

is to encourage employees to g S"" practice effective safety . habits at work and home. Plans call for this program to be expanded in 1983.

Customer participation in OPPD's Residential Conserva-OPPD line crews and hundreds c!brhnicians and special. tion Service Program increased ists maintain 12,5?3 mdes of eigtet:hnes within a during 1982. As part of the 5.000-squaren.;;e service area. Natsonal Energy Conservation Policy Act,the program provides home energe audits to custom-i ers as a means of promotir g I

energy efficiency and conserva-tion. By year-end,1,475 energy audits had been performed by OPPD auditors. Since the pro-i gram began in March 1981, l 2,670 audits have been l performed.

I 10 l _ - - .

FINANCING AUDITOR 5' OPINION 1,' December 1946, Omaha Omaha Public Power District:

Public Power District funded the purchase of The Nebraska We have examined the balance sheets of Omaha Public Power Power Company with a bank District as of December 31, loan fer $42.,000,000. Revenue 1982 and 1981, and the related bonds were issued in February statements of net earnings and 1947 to pay off this loan. accumulated earnings re-Since then, $1,357,200,000 of invested in the business and of additional revenue bonds have changes in financial position for be:n sold. each of the three years in the The District retired $11,590,000 period ended December 31, of revenue bonds in 1982. 1982. Our examinations were These retirements bring the total made in accordance with gener-of bonds redeemed and ally accepted auditing standards refunded through 1982 to and, accordingly, included such

$540,065,000, leaving an out- tests of the accounting records standing bonded debt of and such other auditing proce-

$859,135,000 at December 31, dures as we considered 1982. The District has not necessary in the circumstances.

issued revenue bonds since in our opinion, such financial December 1977. During 1982, statements present fairly the

$47,926,000 of interest expense f nancial position of the District was charged to operations on at December 31,1982 and outstanding bonds, representing 1981, and the results of its oper-an average annual rate of 5.6%, .

ations and the changes in its in January 1982, the District sold financial position for each of the

$55,000,000 of 9%% Electric three years in the period ended Revenue Notes due February 1, December 31,1982, in conform-1985. The proceeds of this issue ity with generally accepted ware used to pay off the accounting principles applied on

$30.000,000 Electric Revenue a consistent basis, after restate-Notes due March 12,1982, with ment for the change in the balance being devoted to accounting for vacation pay and other corporate purposes. Out- except for the change in 1981 in standing notes at December 31, the method of accounting for 1982, totaled $85,520,000. Dur- deferred production costs; we ing 1982,57,213,000 of interest concur with both of these expense was charged to opera- changes, which are described tions on outstanding notes, in Notes 8 and 9 to the financial representing an average annual statements.

rate of 8.8%

Gross Electric Plant amounted to $1,176,777,000 and Nuclear

///

q[4//f 4g) 'l //l

.. 9/

Fuel (at amortized cost) amounted to $146,658,000 at DELOITTE HASKINS & SELLS December 31,1982. Accumu. Omaha, Nebraska lated earnings reinvested in the February 25,1983 business increased $1,880,000 to a total of $326,408,000 dur-ing 1982 while total assets increased $23,259,000 to a total of $1,370,260,000.

N

OMAHA PUBLIC POWER DISTRICT BALANCE SHEETS, DECEMBER 31,1982 AND 1981 ASSETS NOTES 1982 1981 (thousands)

UT!UTY PLANT- At cost: 2,6 Eboctric plant (includes c3nstruction work in progress of $48,420,000 and $42,934,000, respectively) ..... ..... $1,176,777 $1,140,777 Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . 268.856 236.382 Electric plant - net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 907,921 904,395 Nuclear fuel - at amortized cost . . . . . . . . . . . . . ........... 146.658 145.397 Utility plant-net ............................. . ... 1.054.579 1.049.792 CONSTRUCTION FUND ... ... ....... .... ... ....... 3 24.867 4.000 ELECTRIC SYSTEM REVENUE BOND FUND l (Net of current) . . . . . . . . . . . . . . . . . . . . . . . .. .......... 3 44.044 44.333 l DEBT SERVICE FUND . . . . . . . . . . . . . . . . . . . ............ 3 10.691 11.018 SEGREGATED FUND (See contra) . . . . . . . . . . . . . . ...... 3 4,977 5.029 l

i CURRENT ASSETS:

l Cash ......... ..... ......... ...... . ............... 24 70 i U.S. Government Securities - at amortized cost which approximates market . . . . . . . . . . . . . . . . . . . . 36,865 30,262 Electric System Revenue Bond Fu.nd - current . . . . . . . . . . . 3 23,633 22,573 Accounts receivable - net . . . . . . . . . . . . .. .. ....... 19,592 16,374 Unbilled revenues .. . ... ..... .. ....... 7,400 8,200 Fossil fuels - at average cost . . . ........ ... ... . 37,007 29,018 l Materials and supplies - at average ccst . . . . . . . . . . . . . . . 17,811 17,720 Deferred production costs . . . . . . . . . . . . . . . . . . . ...... 8 4,693 5,813 Othe r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... .......... 3.440 3.174 Total current assets ..... . ..... ........... ... ...... 150.465 133.204 DEFERRED DEBITS . . . . . . . . . .... .. .............. 4 80.637 99.625 TOTAL.... ....... .. . ... ...... ... . .. ......... $1.370,260 $1.347.001 See notes to financialstatements.

12

1 UABluTIES NOTES 1982 1981 t

(thousands)

LONG-TERM DEBT: 2 l

4 Electric system revenue bonds - net of current portion:

l Serial bonds,2%% to 6% due annually from 1984 to 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . $252,395 $265,025 c

Term bonds,5%% to 6%% due

[ at various dates from 1995 to 2017 . . . . . . . . . . . . . . . . . . . . 594.110 594.110 Total long-term bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 846,505 859,135 Electric revenue notes due September 1984,

variable rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 30,000 Electric revenue notes due February 1985, 9%% . . . . . . . . . . . . 55,000 Subordinated notes due December 1990, 6%% . . . . . . . . . . . . . . 520 520 Total ................... ............................ .. 932,025 889,655 Less unamortized discounts . . . . . . . . . . . ..... .......... 10.598 10.555 Long-term debt - net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 921.427 879.100 COMMITMENTS AND CONTINGENT UABILITIES 6,7 UABILITIES PAYABLE FROM SEGREGATED FUND (See contra) . . . . . . . . . . . . . . . . . . . . . . ................ 3 4.977 5.029 CURRENT UABILITIES

f Current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . 12,630 11,590 l Electric revenue notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 l Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,576 30,985 Accrued payments in lieu of taxes . . . . . . . . . . . . . . . . . . . . . . . . 6,660 5,496 Accrued interett . . . . . . . . . . . . . . . . ........ ........... ... 22,387 20,324 Other................................................. 4.664 4.065 l Totalcurrentliabilities .. ............................... 70.917 102.460 L

OTHER UABlUTIES:

Nuclear fuel disposal costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,739 32,197 OtMr.................................................. 6.792 3.687 Total other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46.531 35.884 ACCUMULATED EARNINGS .

. REINVESTED IN THE BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . 326.408 324.528 TOTAL................................................ $1.370.260 $1.347.001 s

4 9

D 1

STATEMENTS OF NET EARNINGS AND ACCUMULATED EARNINGS REINVESTED IN THE BUSINESS FOR THE THREE YEARS ENDED DECEMBER 31,1982 NOTES 1982 1981 1980 (thousands)

OPERATING REVENUES . . . . . . . . . . . . . ......... $233.319 $222.546 $227.014 OPERATING EXPENSES: 9 Operation:

Fuel................... ..................... 73,866 77,399 71,531 Other production . . . . . . . . .......... ..... 16,692 13,098 18,924 Transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,526 1,327 1,257 Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,671 6,506 6.229 Customer accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,326 4,853 4,395 Customer service and information . . . . . . . . . ... 2,229 1,849 1,793 Administrative and general . . . . . . . . . . . . . . . . . . 17,666 14,836 12,618 Maintenance . . . . . . . . . . . . . . . . . . . . . . . . .. 20.690 16.267 18.882 Total operation and maintenance . . . . . . . . . . . 145,666 136,135 135,629 Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,160 35,605 34,465 Payments in lieu of taxes . . . . . . . . . . . . . . . . . . . 7.565 6.400 6.191 Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . 188,391 178.140 176.285 OPERATING INCOME . ... .. . ...... .... 44,928 44.406 50.729 OTHER INCOME CREDITS (CHARGES):

Interestincome . . .. ... . . ......... . 13,913 12,021 10,468 Allowance for funds used during construction . . . . . . . 1,056 807 875 Allowance for funds used for nuclear fuel . . . . . . . 6,271 5,841 5,933 Amortization of cancelled project costs . . .... .. (5,182) (4,610) (4,598)

Other- net . ... ... .. . . .... 341 (135) 11 Total other income credits-net . ......... . . 16,399 13.924 12.689 EARNINGS BEFORE INTEREST EXPENSE . . 61,327 58,330 63,418 INTEREST EXPENSE . . . . . . . . ... . ... ... 59.447 54.658 54.256 EARNINGS BEFORE THE CUMULATIVE EFFECT OF THE CHANGE IN ACCOUNTING PRINCIPLE . . . . . . . . .. . .. 8.9 1,880 3,672 9,162 CUMULATIVE EFFECT ON PRIOR YEARS (DECEMBER 31,1980) OF THE CHANGE IN ACCOUNTING PRINCIPLE-Deferred production costs ... .. . ..... 8 2.651 NET EARNINGS . . . . . . . . .. . . . . . .. 9 1,880 6,323 9,162 ACCUMULATED EARNINGS REINVESTED IN THE BUSINESS, BEGINNING OF THE YEAR - AS RESTATED . . . . . . . . . . . . . 9 324,528 318.205 309.043 ACCUMULATED EARNINGS REINVESTED IN THE BUSINESS, END OF THE YEAR ....... $326.408 $324.528 $318.205 PRO FORMA AMOUNTS ASSUMING THE NEW METHOD OF ACCOUNTING FOR DEFERRED PRODUCTION COSTS IS APPLIED RETROACTIVELY-Net eamings . . . . . . . . . . . . . . . . . . . . . . . . . .. $ 3.672 $ 6.146 See notes to financialstatements.

+

!4

STATEMENTS OF CHANGES IN FINANCIAL POSITION FOR THE THREE YEARS ENDED DECEMBER 31,1982 1982 1981 1980 (thousands)

SOURCE OF FUNDS:

1 Funds provided by operations:

e Earnings before the cumulative effect of the change in accounting principle . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,880 $ 3,672 $ 9,162 Cumulative effect on prior years (to December 31,1980) of the change in accounting for deferred production costs . ......... ... .......... 2.651 Net earnings ........... . .. . ..................... 1,880 6,323 9,162 Charges (credits) to operations not affecting funds:

Depreciation . .................... ........ ...... 35,160 35,605 34,465 Amortization of nuclear fuel . .. . .................. 26,885 15,473 10,679 Allowances for funds used . . . . . . .......... . . ... (7,327) (6,648) (6,808)

Amortization of cancelled project costs . . . . . . . . . . . . . . 5,182 4,610 4,598 Decrease in deferred debits-net . .. . .. . . . . 7,504 Other - net . . . . . . . . . ...... ..... .. .. .. .. 3,206 4.192 3.207 Funds provided by operations . . . . . . . . . . . .. .. ...... . 72,490 59,555 55,303 Proceeds from sale of notes . . . . . . ......... . . ..... 54,205 30,300 220 Withdrawals from Construction Fund . ..... .. . .... . 33,885 Withdrawals from Debt Service Fund . . . . . . . . . . . . .. 327 Withdrawals from Electric System Revenue Bond Fund .. ... 289 146 268 Increase in deferred credits-net . ...... ... ........ 2,122 Total source of funds . . . . . . . . . . .. . . ........ 129.433 90.001 89.676 USE OF FUNDS:

Construction expenditures-net ... .. .. .. . ... 37,630 43,276 42,741 Nuclear fuel expenditu:es- net .... . . ... .. . 9,502 17,265 15,144 increase in deferred debits-net .... ... ... .. ... . 12,631 730 Reduction of long-term debt . .. .. ..... .... ....... 12,630 41,590 10,290 Additions to Construction Fund . . . . . . . . . . .. ... ...... 20,867 405 Other - net . . . . . . . . . . ....... .. .. . ... . 6 20 Total use of funds . . . . . .. .. .. . ... ..... 80,629 115.173 68.925 INCREASE (DECREASE) lN WORKING CAPITAL . . . . . . . $ 48.804 _$(25.172) $ 20.751

. CHANGES IN WORKING CAPITAL COMPONENTS:

Increase (decrease) in current assets:

Cash and U.S. Government Securities . . . . . ... .....$ 6,557 $ (2,825) $ 17,453 Electric System Revenue Bond Fund .. . . ... 1,060 928 96 Accounts receivable . . . . . . . . . ... ... ... . 3,218 (236) 1,169

. Unbilled revenues .... . . ..... .. ....... .. (800) 1,000 600 Fossil fuels . . . . . . ..... . .. .... .. . . ...... . 7,989 (6,532) (1,234)

Materials and supplies . . . . . ... . ............ .. . .. 91 694 3,200

! (1,120) 5,813 h Deferred production costs . . . . .................... ...

Other . . . . . . . . . . . . . . . . . . 266 766 (1,094)

} .. ... ..... ... .......

Total ................... .. .. ... ..... . .......... . 17.261 (392) 20.190 Increase (decrease) in current liabilities:

Current portion of long-term debt . . . . . . . . . . . . . . ........ 1,040 1,300 375

{

r Electric revenue notes . . . ... .............. .... .. (30,000) 30,000 I Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,409) 1,164 (7,170) 209 (2,361) 939

$ Accrued payments in lieu of taxes . . . . . . . . . . . . .........

~. Accrued interest .......... ......... .................. 2,063 (11 0) (111)

Other . . . . . . . . . . . . . . . . . . . . . ............. ......... 599 551 597 Total.............. ....................... ... ..... (31.543) 24.780 (561) t INCREASE (DECREASE)IN WORKING CAPITAL . . . . . . . $ 48.804 $(25.172) $ 20.751 See notes to financialstatements.

1l

[

I .

NOTES TO FINANCIAL STATEMENTS FOR THE THREE YEARS ENDED DECEMBER 31,1982

1.

SUMMARY

OF SIGNIFICANT tenance or refueling are amortized over the ACCOUNTING POLICIES appropriate generation cycles.

Organization and Business - Omaha Public Power Deferred Production Costs - Certain production District, a political subdivision of the State of Nebraska, costs are recovered under the Fuel and Production is a public utility engaged solely in the generation, Cost Adjustment (FPA) clause of the District's rate sched-transmission, and distribution of electric power and ules. These costs are deferred until they are collected energy and other related activities necessary thereto. by FPA billings. The Districta policy prior to 1981 The Board of Directors is authorized to establish rates. was to expense these cests as incurred. (See Note 8).

The District is not liable for Federal and state income or ad valorem taxes on property; however, payments in 2. LONG-TERM DEBT lieu of taxes are made to various local governments. The District utilizes proceeds of debt issues primarily in Basis of Accounting-The accounting records of the financing its construction program.

District are maintained generally in accordance with the Maturities of electric system revenue bonds during the Uniform System of Accounts prescribed by the Federal years 1983 through 1987 are as follows (in thousands):

Energy Regulatory Commission. 1983. . . . . . . $12,630 Accounting for Revenues - Meters are read and bills 1984. . . $13,155 are rendered on a cycle basis. Revenues earned after 1985. ... . . $13.295 rneters are read are estimated and accrued as unbilled 1986. ... . $13,840 rervenues at the end of each accounting period. 1987. . . . . $14,300 Property-The costs of property additions, replace-ments of units of property, and betterments are charged The , District,s bond indentures and note agreements provide for certain restrictions, the most significant of to electric plant. Maintenance and replacements of which are:

minor items are charged to operating expenses. Costs of depreciable units of utility plant retired are eliminated Additional bonds may not be issued unless from utility plant accounts by charges, less salvage and estimated net receipts (as defined) for each future plus removal expenses, to the accumulated deprecia. year will equal or exceed 1.4 times the debt service tion account. on all bonds outstanding including the additional bonds being issued or to be issued in the case of a An allowance for funds used, approximating the Dis-power plant (as defined) being financed in trict's current cost of financing electric plant increments.

construction and the purchase of nuclear fuel, is capitalized as a component of the cost of the utility An amount at least equivalent to 12%% of gross plant. This allowance was computed at 7%% for both operating revenue (as defined) must be spent annu-construction work in progress and nuclear fuel. ally for maintenance, replacements, or additions to Depreciation and Amortization - Depreciation is the electr,ic system, or if not so spent is to be placed computed on the straight-line basis at rates based in a speciaMund,to be used for such purposes or for retirements of onginal bonds (as defined) in advance on the estimated usefullives of the various classes of of maturdy property. Depreciation expense averaged approxi-mately 3.4%,3.4% and 3.5% of depreciable property in any three-year period, at least 7%% of general for the years 1982,1981 and 1980, respectively. business income (as defined) mu,st be spent for Amortization of nuclear fuelis based upon the cost replacements, renewals, or additions to the electric system. Any deficiency is to be spent within two thereof, including current estimates of future nuclear fuel disposal costs, as adjusted during periodic reviews; years thereafter for such purposes,or if not so spent is to be used for bond retirements in advance of this cost is pro-rated by fuel assembly in accordance maturdy with the thermal energy that each assembly produces.

Deferred Debits - Certain costs and charges are 3. SPECIAL PURPOSE FUNDS deferred and amortized over the period that rate payers The assets of the special purpose funds of the District are expected to benefit.The most significant of which are: (Construction Fund, Electric System Revenue Bond Deferred Financing Costs - Debt discount and Fund, Debt Service Fund, and Gegregated Fund) con-expense and amortizable charges relating to sisted primarily of securities of the U.S. Govemment refunded debt are amortized ratably over the lives of and related agencies, stated at amortized cost which the related issues to which they pertain. approximated market, and the remainder was cash.

Deferred Cancelled Project Costs - Fort Cal- The Construction Fund is to be used for capital houn Station - Unit No. 2 - Costs arising from improvements, additions and betterments to and exten-the termination of contracts relating to Fort Calhoun sions of the District's electric system, or for payment of Station - Unit No. 2 are being amortized over ten principal and interest on Electric System Revenue years through 1989. Bonds Deferred Major Maintenance and Fuel Costs - The E ectric System Revenue Bond Fund and Debt Costs of refueling the nuclear reactor, changes Service Fund are held by Trustees for the retirement of in current estimates of future nuclear fuel disposal term and serial bonds and the payment of the related costs, costs of unusual maintenance undertaken interest.

during the refueling process, and addit >onal produc- The Segregated Fund represents customer deposits tion costs arising during periods when major and refundable advances.

generating units are out of service for major main-6

1 I t 1

r

4. DEFERRED DESITS North Omaha and $186,975,000 for Nebraska City. The j The composition of deferred detxts at December 31, coal contract prices are subf ect to escalation based 1982 and 1981 was as follows upon the suppliers' costs.

}'

1982 1981 Contracts with estimated future payments of Amortizable charges relating to (thousands) $86,000,000 are in effect for nuclear fuel. In addition, financing costs . . . . . . . . . . . . . . $35,866 $37,153 a mntract with the United States Department of Energy Deferred canceHed protect costs- with estimated future payments of $500,000,000 for me Fort Calhoun Station- furrushing of uranium enrichment sennces extends to Unit No. 2 . . . . . . . . . . . . . . . . . . . 32,379 37,612 the year 2002.

Deferred major maintenance and 514 7,967 7. CONTINGENT LIABILITIES d  ; " g ;'fy".

3,676 5,500 Under the provisions of the Federal Price-Anderson Act, the District could be assessed for claims in the D$tsddssdrsidiiME'f"t;lf event of a nuclear incident in amounts not to exceed

. nuclear fuel disposal costs . . . . 6,809 $5,000,000 per incident to a maximum of $10,000,000 I Deferred charges relating to in any one calendar year.

Nebraska City Power station . 3,880 The District is engaged in routine litigation incidental to

! Other . . . . . . . . . . . . . . . . . . . . . . . . . 4.322 4.584 the conduct of its business and, in the opinion of its i

Totti . . . . . . . . . . . . . . . . . . . . . . . $80.637 $99.625 Genwal Cwnsel, the aggmgate amwnts M h Dic'd W ie ent emimakd

5. PENSION PLAN amounts W in MW stamments Winsun Substantially all District r.pej;;; are members of its ance wage, am maw

[

contributory pension plan and are not covered by Social 8. ACCOUNTING CHANGE-1981

) Security. Generally, the plan provides for benefits at age The District's accounting policy prior to 1981 was to

> 65 with reduced benefits for earlier retirements. Provi- record production expenses in the period incurred.

sion is made annually for actuarially computed current Under this procedure, revenues collected under the

! costs, which were $4,691,000, $4,177,000 and Fuel and Production Cost Adjustment (FPA) clause of

$3,617,000 for 1982,1981 and 1980, respectively. The the District's rate schedules were not matched with the

! District's policy is to fund pension costs accrued related expenses since these revenues are collected by Accumulated plan benefits and not assets at January 1, FPA biilings over the following six months. In 1981 the

1982 and 1981 were as follows

District changed its method of accounting to defer pro-4 1982 1981 duction costs until the related revenues are recorded

} Actuarial present value of (thousands) The change was prompted by the increasing monetary accumulated plan benefits significance of such production costs and was made to Vested . . . . . . . . . . . . . . . . . . $36,455 $42,055 better match revenues and expenses. The change s

' Non-vested . . . . . . . . . . . . . 2.106 2.497 decreased 1981 operating expenses and increased Total . . . . . . . . . . . . . . . . . . . . . . . $38.561 $44.552 1981 eammgs, before the cumulative effect of changes in accounting, by $3,162,000. The cumulative effect on Net assets available for benefits .. $65.667 $60.818 prior years of the change in accounting for deferred The assumed rate of return used in computing the peduction was $2,651,000.

[

actuarial present value of plan benefits was 10.8% for 9. ACCOUNTING CHANGE-1982 retired members and 10% for all other members rhe Finanaal Accounting Standards Board has issued of the plan.

s Statement Number 43,

• Accounting for Compensated

( 6. COMWTMENTS Absences"(FAS No. 43), which requires the District to e

The District's Construction Budget provides for accme a HabiW for employees' right b meewe com-I983 and ,265 000 du ng la e/' yea of The st et ed 1 ,

approximately $20,783,000 was under contract at reducing 1982 not sammgs by approximately $506.000.

t AH financial WWm pmunkh ben m'ad g December 31,1982.

4 Dunng 1982, Wie District estabhshed a deformd com-2 mis mehod rWroactivdy. Acmrdmgly, me cumulative effect of this accounting change as of Janu-

{ pensation plan for all ehgible employees. All ary 1,1980, approximately $2,699,000, is shown as an mntributions to the plan,are made by the employees. adjustment to accumulated sammps reinvested in the 1 By agreement, contributions under the plan remam the busmess at that date. The effect or this restalement

! property of tie District until an employee leaves the was to reduce 1981 and 1980 not sammes by approxi-District. Funds on depoest at December 31,1982 of mately $363,000 and $324,000, respectively.

appro-, _ ; $800,000 are not recorded in the accom-

} ponymg financial statements 10. SUBSEQUENT EVENT Coal supply contracts extend to 1984 (with options to in February 1983, the Board of Directors approved gen-1989) for the North Omaha generating station and to oral rate increases of 9.7% effective March 1,1983 and 1998 for the Nebraska City station - Unit No.1. 6.8% effective March 1,1984.

, Mirumum future payments amount to $3,441,000 for

p. . _

SUPPLEMENTARY STATEMENT OF EARNINGS FROM CONTINUING OPERATIONS ADJUSTED FOR CHANGING PRICES FOR THE YEAR ENDED DECEMBER 31,1982 (UNAUDITED)

Conventional Constant Dollar Current Cost Historical Average Average Cost 1982 Dollars 1982 Dollars (thousands)

. Operating revenues . . . . . . . . . . . . . . . . . . . . . . . . . . 1233.319 $233,319 $233.319

- Total operation and maintenance expenses . . . . . . 145,666 148,543 153,106 Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,160 66,980 69,466 Payments in lieu of taxes . . . . . . . . . . . . . . . . . . . . . . . 7.565 7.565 7,565 Total operating expenses . . . . . . . . . . . . . . . . . . . . . . ,_168,391 223.088 230.139 Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . 44,928 10,231 3,180 Other income credits . . . . . . . . . . . . . . . . . . . . . . . . . 16,399 16.399 16.399 Earnings before interest expense . . . . . . . . . . . . . . 61,327 26,630 19,579 Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,447 59.447 59.447 Earnings (loss) from continuing operations . . . . . . . . $ 1,080 $ (32,817) $ (39,868) increase in current cost of utility plant held during the year ... .... .... .... ..... $ 53,814 Increase (reduction) to the net recoverable cost . . . . $ (453) 23,209 Effect of increase in general price level . . . . . . . . . . (70.900)

Excess of increase in current costs after increase to net recoverable cost over increase in general price level . . . . . . . . . . . . 6,123 Gain from decline in purchasing power of net amounts owed . . . . . . . . . . . . . . . . . 26,305 26.305 Net......................... ... .......... $ 25,852 $ 32.428 SUPPLEMENTARY FIVE YEAR COMPARISON OF SELECTED FINANCIAL DATA ADJUSTED FOR THE EFFECTS OF CHANGING PRICES (UNAUDITED)

Year Ended December 31, 1978 1979 1980 1981 1982 (thousands)

HISTORICAL COST INFORMATION ADJUSTED FOR GENERAL INFLATION Operating revenues . . . . . . . . . . . . . . . . . $217.662 $258,098 $265,815 $236,276 $233,319 (Loss) from continuing operations . . . . . . . . $ (894) $(15,694) $(26,848) $(32.817) l l Net assets at year-end at net recoverable cost . . . . . . . . . . . . . . . . . . . . .

$292,239 $304.043 $313,922 $322,724 CURRENT COST INFORMATION (Loss) from continuing operations . . . . . . . . $ (4.239) $(21,831) $ (32.906) $(39,868) l Excess of increase (decrease)in general price level over increase in current costs after reduction to net recoverable cost . . . . . . . . . . . . . $ 96,957 $ 87.399 $ 50,492 $ (6.123) i Net assets at year-end at l net recoverable cost . . . . . . . . . . . . . . . . . $292,239 $304.043 $313.922 $322,724 i

! GENERAL INFORMATION l Gain from decline in purchasing power i of net amcunts owed . . . . . . . . . . . .. $ 82.543 $ 79,995 $ 58,838 $ 26,305 Average consumer price index . . . . . . . . . . 195.4 217.4 246.9 272.3 289.1 See notes to supplementary financial data.

____m_ .

NOTES TO THE SUPPLEMENTARY FINANCIAL DATA .

ADJUSTED FOR THE EFFECTS OF CHANGING PRICES FOR THE YEAR ENDED DECEMBER 31,1982 (UNAUDITED)

The supplementary information is supplied in accord- Inventories-Fossil fuel inventories and the cost of fuel anca with the requirements of FAS Statement No. 33, used in generation have not been restated from their Financial Reporting and Changing Prices, for the pur- historical cost in nominal dollars. The District's rate pose of providing certain information about the offects structure limits the recovery of fuel through the opera-of changing prices, it should be viewed as an estimate tions of adjustment clauses or adjustments in basic rate of the approximate effect of inflation, rather than as a schedules to actual costs. For this reason fuel inven-precise measure. tories are efiectively monetary assets.

Utility Plant, Depreciation and Amortization- Effect of the District's Rate Structure-Under the Constant dollar amoun*.s represent historical costs rate making structure adopted by the District. only the stated in terms of dollars of equal purchasing power. as historical cost of utility plant is recoverable in revenues me".sured by the Consumer Price index for All Urban as depreciation or amortization. Therefore. the excess Consumers (CPI-U). Current cost amounts reflect the of the cost of plant stated in terms of constant dollars changes in specific prices of the utility plant from the or current costs over the historical cost of plant is not dat3 the plant was acquired to the present. and differ presently recoverable in rates as depreciation or from constant dollar amounts to the extent that specific amortization, and is reflected as a reduction to net pricis have increased more or less rapidly than prices recoverable cost.

in general. To property reflect the economics of the District's rate The current cost of the utility plant represents the structure in the Statement of Earnings from Continuing estimated cost of repitcing existing plant assets. The Operations, the reduction of the utility plant should be curr:nt cost of the electric plant was determined by offset by the gain from the decline in purchasing power

ndexing the surviving plant by the Handy-Whitman of net amounts owed. During a period of inflation, Index of Public Utility Construction Costs. The electric holders of monetary assets suffer a loss of general pur-plant was aged on the basis of clearings from construc- chasing power while holders of rnonetary liabilities tion work in process to electric plant in service. The experience a gain. The gain from the decline in pur-current cost of nuclear fuel in the reactor was based chasing power of net amounts owed is primarily upon the actual cost of the most recent assemblies to attributable to the substantial amount of debt which has be placed in the reactor. The cost of nuclear fuel was been used to finance the utility plant. Since the depreci-not adjusted from historical amounts. The current year's ation and amortization on this plant is limited to the provision for depreciation and nuclear fuel amortization recovery of historical costs, the District does not have was determined by applying the District's effective the opportunity to realize a holding gain on debt and is depreciation and amortization rates to the computed limited to recovery only of the embedded cost of constant dollar and current cost amounts of the utility debt capital.

plant.

NET RECEIPTS AND DEBT SERVICE COVERAGE FOR THE FIVE YEARS ENDED DECEMBER 31,1982 (UNAUDITED) 1982 1981 1980 1979 1978 (thousands)

, Operating revenues . . $233,319 $222,546 $227,014 $194,087 $147,116 l Operation and maintenance expenses... ...... ... ... 145,666 136,135 135,629 112,045 86,237 Payments in lieu of taxes . . .. 7.565 6.400 6,191 5.252 4,836 Net operating revenues . ... .. 80,088 80,011 85,194 76,790 56,043 investmentincome (1) .. . ... 5.307 4.798 4.490 4.386 4.333 Net receipts . . . .. . . . . $ 85,395 0 84,809 $ 89.684 $ 81.176 $ 60.376 Total debt service (2) .......... $ 60,470 $ 59,826 $ 58,969 $ 44,772 $ 30,613 Debt service coverage . . . . . . . . . 1.41 1.41 1.52 1.81 1.97 (IHncome denved from the mestment of moneys in the Debt service Fund and the Reserve Account of the Electre system Revenue Bond Fund under the Distrct's bond indentures (Resolution No.19 and Resolution No.1788).

(2) Total Debt sennce for both Resolution No.19 and Resolur m No.1788 Bonds is accrued on a calendar-year basis smtar to the computation of Net

(

Rece.. inieresi funded f,om band proceeos is noi .nciuded n Tow oebi semce.

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ELECTRIC SYSTEM RWENUE BONDS OUTSTANDING (in Thousands) as of December 31,1982 1954 ISSUE 1956 ISSUE 1958 ISSUE 1961 ISSUE 1966 ISSUE 1968 ISSUE 1969 ISSUE Mesurty Dese int. tit. K h int. K Int.

Fetruary 1 Rate Amt. Rate Amt. Rate Amt Rate Amt. Rate Amt. Rate Amt. Rate Amt 1983 2% 1.100 3 1.000 3% 600 34 680 4% 890 4% 1.850 5.80 800 1984 2% 1.100 3 1.000 3% 600 3% 800 4% 930 4% 1.900 4.70 850 1985 3 1,300 3% 600 34 840 4% 1.000 4% 2.200 4% 900 1986 3 1.400 3% 500 34 1.000 4% 1.040 4% 2.200 4% 950 1987 3% 500 34 1.000 44 1.150 4% 2200 4.80 950 1988 3% 500 34 1.000 4% 1.250 4% 2200 4.90 990 1989 3% 1.000 44 1.400 4% 2.200 4 90 1.000 1990 3% 1.000 4% 1.425 4% 2.300 5 1.000 1991 3% 1.000 4% 1.500 4% 2.300 5 1.000 1992 4% 1.500 4% 2.300 5 1.000 1993 4% 1.500 4% 2.300 5 1.000 1994 4% 1.500 4% 2.400 5.10 1.100 1995 44 1.500 4% 2.400 5.10 1.100 1996 4 1.500 4% 2.400 5.10 1.100 1997 4% 2.400 5.10 1.100 1998 4 2.500 4% 1.100 4% 1.100 1999 2000 2001 1002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Outstardng 2200 4.700 3.300 8.320 18.085 36.050 17.040 Bonds Redeemed to 1201/82 9.800 10.300 3.700 8.680 6.915 8.950 2.960 Orgnal 15.000 7.000 17.000 25.000 45,000 20.000 leeue 12.000

• Term Bonds "The 1975 Senos A and B Band issues were ret.Jnded by the 1977 Seres A lasus.

""The 1978 Seres A and B Band issues were refurried ty the 1977 Seres c issue.

s s

L .

)

0 5

I 1977 ISSUE 1977 ISSUE 1977 ISSUE TWELVE MONTHS ENDED 1972 ISSUE 1973 ISSUE SERIES A" SERIES B SERIES C " FEBRUARY 1 0- teal Total let K kt K trt Prrepel Actrurig Debt Rate Ant Rose Ant Rene Arrt Rees Amt Rate Ant Matuntaos interest Service 1 .

4% 3.156 4% 880 4.35 1.965 12,830 47.891 60.521 4.00 3.330 4.85 820 44 2.025 13.155 47.374 80.529 4.70 3.510 4.95 860 4.00 2.295 13.295 46.834 60,129 l-4.80 3.705 5 800 4.70 2.365 13.840 46.264 60.104 4.90 3.910 5.10 710 4.80 1.300 4.80 2.580 14.300 45.664 59.964

5 4.125 5.15 745 4.90 1.500 4.85 2.650 14.960 45.010 59.970 5 4.350 5.20 700 5 2.000 4.95 2.925 15.655 44.317 59.972 5.10 4.500 5% 820 5.15 2.250 5 3.015 16.400 43.578 59.978 5.10 4.845 5.30 800 5.30 2.000 5.05 3.100 17.205 42.791 59.996 4

520 5.110 5J0 905 5.40 3.850 5.10 3.380 18.045 41.958 60.003 520 5.300 5.40 950 5% 4.150 5.20 3.620 18.910 41.055 $9.965 520 5.685 5.40 1.000 5.60 4.500 5% 3.720 19.905 40.097 60.002 5%* 6.000 5%* 1.050 5.70 4.900 5.30 3,970 20.920 39.077 59,997 5%* 6.330 5W 1.110 5% 5.350 5.40 4.170 21.960 37.982 59.942 5%* 6.800 SW 1.170 5.80 7.300 5.45 4.485 23.135 36.824 59.959 I 5%* 7.045 5%* 1,235 5.85 7.900 5% 4.590 24.370 35.568 59.938 5%* 7.430 SW 1.300 5.90 10.900 5% 4.910 25.600 34.252 59.942 f Sh* 7.840 5%* 1.370 6* 12,600 5%* 5.335 27.145 32.810 59.955 5%* 8.275 5%* 1.450 6* 13.450 5%* 5.470 28.645 31247 59.892 SW 8.725 5%* 1.525 6* 14.350 SW 5.7t 0 30.310 29.597 59.907 5%* 9.205 5%* 1.610 6* 15.250 SW 5.955 32.020 27.851 59.871 5W 9.715 6* 17.300 5%* 6.820 33.835 26.006 59.841 5%* 10.250 6* 18.550 5%* 6.970 35.770 24.054 59.824 5%* 10.810 6* 19.900 5%* 7.140 37.850 21.989 59.839 6* 30.100 SW 9.885 39.965 19.804 59.789 i

6%* 12.900 5%* 10.780 23.680 17.429 41.109 6%* 13.670 5.90* 11.200 24.870 16.019 40.889 64* 14.490 5.90* 11.730 26.220 14.521 40.741 6%* 15.360 5.90* 12.345 27.705 12.941 40.646 6%* 16.285 5.90* 13.005 29.290 11.272 40.562 i 6%* 17.260 5.90* 13.715 30.975 9.508 40.483 6%* 18.295 5.90* 14.435 32,730 7.641 40.371 f

6%* 19.395 5.90* 15215 34.610 5.669 40.279 6%* 20.555 5.90* 16,775 37.330 3.583 40.913 6%* 21.790 21.790 1.335 23.125 150.010 21.130 200.000 170.000 228.300 859.135 1.029.812 1.888.947 1

1 19.900 3.870 900 76.065

, 170.On0 25.000 200.000 170.000 229 200 935.200 i

.f a .

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d 1982-1981 COMPARISONS OPERATING REVENUES Percent mdhms of dofars .

N) * #

233'3 War of War increare 227.0 Oneedicaten 1982 Total 1981 (Decrease) g, Reedental . S 89.949 38.5 $ 77.500 16.1 dh General Serwoo-Sman 72,495 31.0 80.992 18.9 N7'l 2::a]j General Serwee-4.arge . 41,293 17;7 30.345 13 6 '%;

Governmort and Munopel 5.570 2.4 4.516 40,003 23.3 120.

d1 1

Omer Electnc Utilities 21.867 9.4 (45.3)  !

Accrued Untulled Rewonues (800) ( 3) 1.000 (20 0) {74,, 1 Total Electric Rowenues $230.374 98.7 $220.356 4.5 N Revenues 2,945 1.3 34 5 64'0 -

2.190 g,' j Total Operatog Rowenues $233,319 100 0 $222,546 48 P ~; .

i IGLOWATTHOUR SALES miums ohhrs I 6419 casedication 5633 < 5553 Reedential . 1.898,606 34 2 1.824 285 4.1 4699 4810 .' ,

General Serwoe-Small 1.743.804 31.4 1.691.815 3.1 4319 General Servicar-4.arge 1.334.043 24.0 1.411.394 (5.5) b*.

Gowemment and Munopel 74.388 1.4 74,444 (.1) P Other Electne Utiletes 501,704 90 1.258.803 (80 1) -i' Total Energy Sales 5,552,545 100.0 6,260.741 (11 ?

7_

%{

.j OPERATION AND mi#ms of do#ars MAINTENANCE EXPENSES (thousands)

Casedicaten Generatog Expense . . . . . . . . $106.709 73.3 $101.643 5.0 Purchased and Interchanged 135.6

! Power . . . . . . . . . . . . . . . (4,162) (2.9) (2.589) (60.8)

Yansmission and Distribution . 17.793 12.2 15.420 15.4 ,A Customer Accounts . . . . 5,326 3.7 4,853 9.7 44 +

00 Customer Service and informaton . . . . . 2.229 1.5 1.849 20 6

/[

i 14,959 66.7 ie Adrnnstrative and General 17.771 12.2 18 8 39A 41. ~ JM Total Operaton and Mantenana Exponess $145,666 100.0 $136.135 70 AVERAGE NUMBER h

• OIN8 N OF CUSTOMERS

• 216.6 205.5 E 196'6 Oasadoston 177.9 189 5 ,y Reedental . 191.808 24,264 88.6 190,451 .7 h' General Serwce-Sman 11 2 23.833 1.8 General Serwee-4.arge 73 -

75 (2.7) 4 Other . 411 .2 428 (4 0)

T, ;j Average Customers 216 556 100 0 214.787 .8 f

v

• Awarage Total Twelve Months Ended December i 2