ML20033A734

Annual Financial Rept,1980

ML20033A734
Person / Time
Site:	Comanche Peak
Issue date:	03/26/1981
From:	Farrington J DALLAS POWER & LIGHT CO.
To:
Shared Package
ML20033A729	List: ML20033A731 ML20033A733 ML20033A734 ML20033A735 ML20033A738 ML20033A741 ML20033A742 TXX-3438, Forwards Amend 1 to Application for Ol,Per R Tedesco 811006 Request & Annual Financial Repts for 1980
References
NUDOCS 8111270182
Download: ML20033A734 (26)

Text

,_.

1 To Our Shareholders Dallas economy. continarg effort is made Inflation and the uncertain national en-to offset this inflationary spiral through im-ergy situation were widely reflected during proved productivity and cost control.

4 e

1980.1hese factors touch the lives of every-Faced with these rising costs, it was nec-

-)

one and the growing wave of national inter-essarv in September to ask for an increase

~

ps%

est in finding sound and permanent in annual raenues. llearings before the City w

r b,

' p~ t : "%

Your Company has an important role in of Taas were held and interim rates that iii solutions is wident.

of Dallas and the Public l'tility Commission

+

m-+

y being a pan of those solutions and has been are designed to incrase revenues by $56.3 0,'

carning that out for the past several tears.

million were put into effect on cust'omer YM,Ib in tfie late 1960s DP&L and other members billings starting in.\\ larch 1981.

1 O % p%TM of the Taas l'tihties System started a The economy of Dallas remained sound h d 7Ej ptgyeji7 D g,

planned, long-range p' gram to reduce de-during the sear'with all-time records set in m

D $ M % - M ; p *.._.

pendence on nsural gas and oil by shifting commercial building. In the central busi-i 7 WmL.

a to the more abundant and less apensisce ness district the e major office towers were domestic lignite coal and uranium fuels.

under construction at year-end and nine lhe first lignite-fueled unit went into opera-other office buildings and two hotels had tien in 1971, and there are now eight units been announced. Almost 20.000 new cus-oprating. During 1980 more than half the tomers were added during the year.

g

electric energv supplied to our customers in November Thomas L Ilaker wa3 elec-was generated by hgnite, with the 100-ted vice president of the Company with c

millionth ton being mined for use in responsibilities for rates, economic research Iomily-owned plants during the year.

and regulatory semces. Wayne E. Patterson g, (p The accomplishment of a major portion was elected assistant treasurer in.\\tay. In 3%

kh c.e d

of th< fuel conversion program is being another management change, Don J.

N o m$@%,;..3(

u

--q reflected in the level of construction expen-llampton was elected vice president in Feb-r%c.-

~~

ditures. These expenditures averaged $163 ruary 1981 with responsibilities as chief fi-million in 1978 and 1979 but decreased to nancial officer. George L Clark and Richard about $122 million in 1980 and are esti-

.\\l. Ilart were elected to the board of direc-mated at $134 million in 1981.

tors in.\\tay to serve in positions vacated by Also part of the solution to the national Gene 11. Ilishop and Elvis L..\\tason.

4 ons/rm#m continues on liv nuclear-energy proNem is the wise and efficient use Dallas and the surrounding area is an C

) fueled Cmnanc/v Rahplant (a/xne).

of energv. Our conservation programs em-outstanding place to work, raise a family During //c rear hkm/e-/ueled units phasize techniques which can accomplish and live a quality life. We are dedicated to (kmer) suppliedin & DIES custom.

the most at the lowest costs to customers.

continue meeting the needs of its people ers'neede.

These include information on thermostat for ekttric senice and are confident in settings, insulation, energv-efficient equip-the ability of our emplovees who make ment, and do-it-yourself home conservation that possible.

projects. In January 1981 DP&L was pre-sented the President's A.vard for Energv Effi-ciencv at a White llouse ceremony.

W Ours is a public sen-ice busine'ss made I, g;i gy up of people who work around the clock serving other people. The high quality of senice npected by our customers requires

~ +

the dedication and understanding of em-i plosees. Many of these people are called on to function under trying conditions and thev proudly perform wilf1 the knowledge that '

others are depending on them.

g L%

1his was demonstrated again during the record hot summer of 1980. The atteme

~

m_

l heat placed severe burdens on generating g-Ti plants and transmission and distribution fa-g cilities. Ilowever, the people who designed.

I built and operated them met the challenge and Dallas came through with no brownouts or blackouts in this severe weather.

~

Inflation continued to be felt during the Jerry Farrington year in every aspect of our business. The President & ChMf Executive cost of operations continues to increase, yct it is necessary to build and operate the required facilities to sene an expanding 8111270102 811123 I

DR ADOCK 05000445 PDR

Dallas Summer Brings Adequate facilities and a dependable fuel m a e.

m usu Challenges. OnJune 23, one day after supply kept sufficient enargy available. Be-c,.mmmi n summer otIicially began, use of electricity by cause many air conditioners ran continu-DP&l. customen exceeded not only the 1979 ously, some customers received electric bills peak but also the all-time peak. Before June considerably above those during the com-(_

was over, customer usage had reached 2810 paratively mild summer of 1979. Average l

megawatts, and the temperature had soared electrical use per residential customer dur-l to 113. A new all-time peak load of 2844 ing 1980 was 12,994 kilowatt-hours, com-l mw occurred on August 22. During the 1980 pared with 11.606 kwh the presious year, heat wave Dallas experienced 69 days of an increase of 12 percent.

100 plus temperatures, the hottest month 1he number of customers served by the induseur im came=(

on record (Iuly, with an average daily high Company at year-end increased by almost l

• ""'"d#"*

of 105.3*) and an average suramer daily 20,00016 more than 305.000, an'd general high of 101.6.

business kilowatt-hour sales rose 10 percent to 12.2 billion.

1 EUSSEs PJfl D

((catmn ami Omtenarxe 19 '%

Taxe le 2%

Dmdends a.nl IMamed m Business 12 5%

interem and Lcellmmu 63% 66%

("Titamir l'nsmom R fl mix 19 1 19'5 1980 Naural Ga & Fact ed Operat.ing Highlights E imm, Thousands of Dollars 1980 19'9 Operating Revenues

$ 523.816 $ 422,441 Operating Expenses 434.040 359,929 Fuel Cost.

207,802 172,642 Other Operation and Maintenance Expense.

105.830 91.484 Taxes.....

87.243 70,174 Expenditures for Construction.

121.693 167,600 Electric Plant at Year-End.

1.372 382 1,318,354 Total Generating Capability at iear-End (Kilowatts) 4.055.834 4.055.834 2

Construction Program Leadership in Conservation. The c4 ~:.

d.

Continues. For the second straight year.

President's Award for Energv Efficiency has r

DP&L generated more than half its elec-brought national recognition to DP&L's i L d

tricty with lignite coal. During 1980 almost continuing programs designed to help cus-y.

m * ::S ~-- 9 52 percent was generated bv lignite and.

tomers use energy wisely. Presented at the I) yy m L.

with the aception of a small quantity of White llouse in January 1981, the award k.;(

fuel oil, all the remainder was generated by honored DP&L as a leader in helping cus-d natural gas. Although large capital invet-tomers conserve energv.

J ments are necessary to build lignite plants, The programs' effectiveness is also dem-those added costs have been more than onstrated through a 1980 servey, which offset by the les apensive fuel. Fuel cost shows that an increasing number of cus-savings to our customers amounted to about tomers are adding insulation, storm win-l 570 million during 1980 and more than dows and doors, weatherstripping and 5200 million over the past five years.

caulking. Of the customen surged who

+

l The construction schedule continues to had repired air conditioning equipment I

respond to toisions in projected customer during the past year,80 percent nid they

. <,4 needs, while recognizing the progress that had installed more efficient equipment.

.. f i O has been made in our fuel convenion pm-Sixtv-five percent of all customus suneyed f.!

gram Eten considering the heat related said thev had received informwonal mate-

.,f lf 1

i loads aperienced during the 19SO summer, rial from DP&L on wap to use energv i

the long-term forecast of annual load wisely.

g 16 growth for DP&L is projected to be appmx-31uch of the contact with customers

- M j1 imately three percent. The moderation in during the summer concentrated on con-apected load gmath allowed the company Senativa as a means of helping them to transfer a five percent ownenhip in Co-through the aceptionally hot weather while i

l q

1 manche Itak and five percent of 5tartin keeping energv waste and energy cost as lw l

1 Lake Unit a to Taas Electric Senice Com-as possible. Efforts will be strengthened in y

(

pany and Taas Power & Light Company.

1981 with particular emphasis on the use of g

I nN j

DP&L now has an 18% percent share of high efficiency air conditioning equipment y'[ [t j '

.l, I

both Comanche Peak units and a 20 percent and heat pumps. This will enable cusomen l

I L

N share of 31artin Lake Unit i to improve savings during peak electric L

Remvialyde Mer //dello make uar During the year the pmjected operation usage periods and will act to reduce the

-)fr a nar dou7z!orivi miriplev a/Inits afull dates for Comanche Itak were te ised to need for new facilities and im rove ccerall rier g//v hstoric arch /w/ure(DPez s 1982 for Unit i and I?84 for Unit 2. Atj 1r-efficiency in the production o electricity.

/vad uar/crs bm/ ding end the Comanche Peak project was 76 f

percent complete.

The projected in-senice dates for two

! ignite units have also been changed. Forest Gmve Unit 1 is now scheduled to begin operation in 1989 and Startin lake Unit 4 in1990.

4

. - ~

--+

.w wuHmumi"~

t i

yx a

g 4

6 tlin $ $ 1ns W E II M B.

j

('

emnanm 1

p;"r:mT~rdf:@aaw,

1 pd l3 1

?

m 27 tc rP -

w e

~' ' ' T

($ l l&Ll l~f.!IiiNDlIO[F s

t.;_m_

m r.

')

~~

v 3,(.g r

~

'- v g

• [

I E; "[

f 's,,

,,.. g:l ',

t

.- *.....(,,

I f.

, ) '

-N

• ~& :

g 'g/, I

• i '$,,%..;.,,

"/,wS s

j

, }v _[A,;--

?

P;;

l n

?,:

' i

. ; ;j( ~~ l;}

.f:_"

. yj f

M

)

w ty g,f/fh]

~kkf /f b f

~b p

yiy Ar g p

g n.,

3

~;

j l*.a 3

l l

e.

o:

y,,

4

~... - - - - - -. -.. - -

"" C 9

$Ul Serving Customers Better.

Ahr Te4thme Srstem

,I i

}

, y ?j M kusig hwe am/ Gwline in April the Company convened to the

-~

q Temporary senice crew center:, we

" Dimension" telephone sutem, which in-i f

l opened in the southeastem and northem cludes a new switchboard and features that

,i i

~,.

a

]

pans of DP&L's service area during the year.

allow emplovees to handle Company busi-

)

' 'bx %

1 These centers base crews near out!ving ness more efficiently by phone. For example, B

i&

g areas, sasing both transportation c'osts and direct phone lines to many employees per-

- 9.C travel time m prosiding senice to custom-mit customers to contact them more easily

~~

'q. 4 M:% D 7 ers. A new permanent senice crew center and quickly. The system also adds efficiericy t

will be built in the far nonhem part of the to overall operations by automatically per-par-a' senice area.

forming many functions which formerly s

[ N j f

Buildingfor Oestomer Mwh were done by' switchboard operators.

I j

,yd 1he Greemille Avenue substation wm Construction and Financing.

A O i; i T dlDi6 Constmction apenditures during 1980 to-C ar d the C it ile I d 18 ilo t taled $122 million and are projected to be transmission switching station was placed in II34 *iIII " I f I98I-senice in July to aid in sening the northern in May the Company received $71 mil-and northeastem parts of the sutem.1his li n f r transfer of a portion of the switching station and associate'd transmis_

v anership of the Comanche Peak plant and N#

MOx sion lines connect DP&L's sutem with the Martin Lake i nit 4 to Taas Electric Service

1. I grid which brings pwer directly from lignite Company arid Taas Power & Light Com-r plants in East Texas. In 1981 two new 13 kv pany. Als, m December DP&L sold substations with eight feeder lines will be 1.000,000 shares of common stock for $29.5 N,O' placed in senice, and two transformers and mdhon. h peds from the sale of plant

,1 six feeders will be added to existing and common stock were used for the Com-3 2.,.

substations.

p nys cmistruction program and other cor-Mountain Creek l' nit 8, seserelv damaged by an aplosion and fire'in p rate purposes.

/-

1977, was retumed to senice in June.

/,

w s

J

,,\\'

Emergencr Readinas Testing of the Company's emergency op-erating plans and procedures included par-D ticipation in a simulated tomado aercise called " Operation Prairie Wind." a joint P t-effort of the City of Dalhis and the Federal Emergency Management Agencv. Other tests of emergency preparedness included a simu-3

-q lated storm which pixed designated person-J.

nel at their appropriate posts and permitted p

a realistic review of DP&L's ability to handle I

e emergencies that affect supply an' delivery d

h g4 j

sutems.

g-~.

kpty Part of doing the job well is doing it i

- /)

safely, without injury to emplovees or the public, and with no propertv damage. Dur-

=

ing 1980 DP&L maintained a safety record ithether testing ehrtric meters. daigmnl*,

better than the national average for the neirpahtin or broadcasting enerqr con ~

electric utility industry which. in turn, serratirm tips to Ibe blind. Drei em-has a better record th'an for all industrv p/mres are con /muallr imrkmg to throughout the L'nited States. In addition to impmre serrice to customers.

regular safety training and review programs, the Company's Accident Prevention Commit-tee, made up of employees from various departments, is instrumental in keeping safety on the minds of DP&L people at all times.

~)

I

. - _. _., - - -.. - -. _ _. -.. -. -.. ~ -. ~ _. - - _.. -. - -

I DP&L Employees. Citv-wide honor Continuing efforts to encourage educa-

"DP&i. Family Day went to two DP&L people du' ring 1980 when tional and job opportunities for minorities, thev received the Citizens' Certificate of the Company panicipated in programs with gives us an Merit from the Dallas Police Depanment for the Dal:as hiinonty Business Center, the opportunity to their rescue of a handicapped woman from Dallas Urban Irague Youth Motivation, Job (

OXplain Our Work to her buming home. That is just one example Opportunities for Youth, inroads and the of the concem emplovees have for their Dallas Alliance of Minorities in Engineering.

our families and neighbors, both on and off the job, as Fifty emplatees have been trained as con-

)

other employees."

shown by a steadv stream of "thank you" ference leaders and have conducted infor-i mail from customers.

mation programs for all DP&L employees.

Recent awards recognizing group profes-Another 25 employees, functioning as mem-sional achievements include:

bers of the Company's speakers bureau,

. Silver Amil Award from the Public Rela-made presentations to 17,800 members of tions Society of America, for overall out-civic, professional anJ. other community standing emergency communications with groups in Dallas.

custemers.

Personnel changes include the election of

. Silver Spur Award from the Taas Public Domas L Baker and Don J. flampton as b

Relations Association, alsc for emergency vice presidents and the election of Wayne E.

d communications.

Patterson as assistant treasurer. George L 1

4,,

(

. Associate of the Year Award from the llome Clark and Richard M. Hart were elected to Ee and Apartment Builders Association of the board of directors to serve in the posi-h';

N Metropolitan Dallas, for the Company's tions vacated by Gene 11 Bishop and Ehis q

_M role in the home building industry and L Mason.

,7 >

f'

[),

(

g--

the community.

Strong emphasis was placed on the Em-Research: Important Part of p

(ay,g f,f: j playee Visual Inspection Program to encour-Planning. Research and development g-, 7

%~g age all employees to n port broken or aid in defining the most efficient and reli-m.

malfunctioning equipmmt throughout the able ways to poside electricity to customers senice area. The program gives employees a in the long-term future. DP&L continues to direct role in maintaining senice reliability support a wide variety of research through and in making valuable contributions to the Electric Power Research Institute. FPRI productivity.

is a non-profit organization and is the ma-More than 1,000 emplosees participated jor industry research effort funded by util-(

p_gs,

last year in seminars and programs to im-ities throughout the country. EPRI projects Og D

prove job skills and performance. One hun-include power plant research, fuel develop-dred employees pursued advanced studies ment such as coal gasification and liquefac-I (d;

under the Company-sponsored tuition aid tion, and environmental research. He

~

~

M program.

institute is committed to funding $1.3 bil-Aids in finding the most qualified new lion for research and development during

("

employees included the Summer Technical the next five years.

. D{'

J y

Employment Program, the Cooperative Engi-Along with other investor owned utilities neering Program with the l'niversity of in Taas, bP&L has pioneered fusion re-Texas at Arlington, worivstudy programs search tnrough th; Texas Atomic Energv with the Dallas County Community College Research Foundation since the mid 1950s. A District and the Dallas Independent School new nuclear fusion desice, the Texas Experi-Emphpm dacribe rarious tyn ofjok to District, the Electric Power Technologv Pro-mental Tokamak (TEXT), has been built at IWlas bigh sdm/ stra/ents during a tour gram with Richland College and a recruit-the L'niversite of Texas at Austin to continue cfD/'eLpcrhtia.

ing program with the Texas State Technical the research.'The TEXT started operating in Institute.

late 1980.

Company involvement in research lo-cally, particularly ir, solar energy, was ex-panded during the year. DP&L is now monitoring a solar-as'isted heat pump sp-tem, a solar heating system and a solar collector system. And, a " Solar information Line" was implemented to answer questions by phone from the public about solar energv.

I 6

~

Efforts to protect the emironment include Office buildings accounted for more than "At DP&L we're a

""k "he Bh' Bnmu Environmental Re-35 percent of Dallas ~ total commercial con-search Center which will mark its tenth tear struction la31 vear. At year-end three major lot like a family and of operation in 1981. The center. on Fairf'ield office towers were und'er construction in the

)

We're prjud Of the ~

Lake is used for research projects by gradu-downtown area. Among fxilities either ate students from leading universities in the planned or under construction in the cen-

. good Ser$CO We Southwest. Directing and retiewing the work tral business district are the Cadilix-Fair-furnish der is a committee of university scientists with view I and 11. Dallas Centre 11 and 111, the CuStomerE.*'

expertise in a varietv of emironment-related Olympia-York building, three structures at fields. Studies at the center have included

.\\ lain Place and the skverer office towers l

revegetation and animal repopulation in the being built by ARCO and Placid Oil Com-lignite mining area. aquatic data, soil anal-pany. During 1980 the Bakcr llotel was yses and reforestation studies. As a result, razed to make way for an operations com-

,, e f.; g -g improvements have been made in the effi-plex to be buih by Southwestem Bell Tele-

+

L"*%q g ciency of mining, land reclamation and phone Company in downtown Dallas.

p H*

other operations.

Construction was abo begun on a dwntown fine arts museum and citizens have ap-A Partner in Dallas Growth, pmved bonds for the purchase of a site for M^

W With an estimated 90000 residents, up the future home of the Dallas Symphony seven percent from 1970. Dallas is now the Orchestra.

seienth largest city in the L'nited States.

Dallas was the nation's third busiest con-

~

~

f **

according to the l'980 census. De health of vention city in 1980, drawing nearly 1.7 4

the Dallas business climate remained strong million people to more than 1,500 con-e with unemplovment in the Dallas-Fort ventions. In all, more than six million Worth.\\letroplex averaging 4.4 percent, visitors came to Dallas last year, adding an compared with 5.3 percent in Texas and 7.1 estimated $2 billion to the city's economy.

I "e

percent nationwide in 1980.

The area's growing role as an intema-During the year, companies from many tional trade cer.ter became more evident areas of the nation relocated to Dallas, with the addition of four new foreign air providing additional jobs for both new-carriers - Thai international. Lufthansa.

r I,-

comers and establi3hed residents Among the AirJamaica and British Caledonian -

iarger corporations which recently decided which began service from Dallas Fort Worth t

)

I to call the Dallas area home was Caltex Regional Airport during the year. Five of 11 r

Petroleum Corporation which has been 10-buildings have been compkted or are near l

cared in New York City.

completion in the foreign trade zone at the The city is now headquarters for almost airport. Aircraft operations increased seven 700 firms with a net worth of $1 million or percent at D 1T in 1980. making it the g

more, and accordmg to 7k EllStreet world's fourth busiest airport in the number Journal Dallas is third in the country in the of scheduled take-offs and landings.

LR u

number of major company headquarters.

b

~

after New York and Chicago d

'o Commercial and industrial construction

.[ %

'%n m M

permits in the Dallas area broke the billion

[,J g

N dollar mark for the first time in 1980. at

$1.1 billion. This was a six percent mcrease N the 19N0 State Fair rf Taas ethilnt. a fmm 1979. The c tv has had major annual rohet um used to splain hur Ignite coa!

increases in total construction figures for the Ixvietits custorners in North Tecas-past fire years.

l l

7 l

a

(,"

'T

'?

~

www, r, kl.

w

]y f

[amm y

4

-(FEM,$. &

~.

1 i

-]

,~

7 c

.,e

,m-m.

4 2.

t:

n o

e

" {$

El1/$$El.

Ei:

.j i

b3Y$$$d$;INEIslN '

l d

n

~

,s.

a q

.A f

3 g _..

f l,r ' ' l r-...

i

. 44

., Aj

.Y

y' Xk

. "a se.

[' i Qlf f.

y

)

'e-J I i.-

L l':_

-?

[.'IjkA es x-

{f hl h'

(.--

,W

_4p' t r

._ f

}

j

s lf, s

~ 1:.

B' w

i

. 4 ge.

4 Q: ' '

G' i.

i l

l 1

l,/

-7 g -

- s4 s

l

l

/'

U T

Legal and Regulatory Matters.

It was the Court's opinion that the Com-S Be Company and other Texas Utilities Sys-pany, Texas Electric Service Company and tem companies operate entirely within the Texas Power & Light Compaav ne affiliates 3

Wh, State of Texas and are not subject to the of each other under the Public ctility Reg-

')

• f, $, h-.

jurisdiction of the Federal Energy Regulatory ulatory Act. Based on this determination the Commission (FERC). Central and South Court concluded that the prmisions of the y

Y West Corporation (CSW), a registemi hold-Public Utility Regulatory Act require a prior

/-

\\'

ing company, for the past five years has regulatory determination of the reasonable-

/ A a number of regulatory and judicial pro-among affiliates recovered from customers

/

imolved the Company and other utilities in ness of charges invohed in transactions e

/

1-ceedings in an effort to retain its status as a through fuel adjustment clauses. The Com-5 Ml$j holding company, such status being chal-pany intends to appeal any adverse order lenged in a pending regulatory proceeding.

entered by the Court.

/g ne CSW actions have sought genera!!y to In September DP&L filed applications l

Id.

I require the Texas l'tilities System companies with the Public Utility Commission of Texas l

and other utilities in Texas to change from and with the municipalities of Dallas, Ifigh-i intrastate to interstate operations.

land Park, University lurk and Cockrell liill In October the Texas Etilities Sutem for upward adjustments in electric service companies, CSW and flouston Ughting &

rates estimated to increase revenues by ap-Power Company (lil&P) filed an Offer of proximately $81.7 million or 16.4 percent.

l Settlement in pending FERC proceedings.

On February 26,1981 the PLC issued an The settlement offer was based upon a June order which recognized a need for increased agreement between the Texas Utilities Sys-revenues of approximately $56 3 million, or tem companies, CSW and til&P which l!.4 percent, for customers subject to the provided for two direct current interstate original jurisdiction of the PEC. Either interconnections established in such a man-through placing rates in effect under bond ner so as to have no adverse effect upon or through issuance of interim orders by the senice reliability or cu<tomer costs. Re PEC acting in its appellate jurisdicticn, agreement's continued effectiveness is con-DP&L began billing increased rates to all ditioned upon the issuance of a FERC order customers in March.

I I

exempting the Texas Utilities System com-

% A lullgame on top (fpoks (upper)is a panies and ill&P from additional federal J training mdialusalto detelop agility regulation. The offer of Settlement would andmnfidence. Custanurservice npre_

resolve the FERC proceedings but is subject sentatins flouer) ansuer questions about to various other regulatory approvals and subjectsfmm billingprocedures to lle the resolution of related proceedings. ne latst consermton programs.

offer has received the concurrence of the FERC Staf( but Department ofJustice inter-vention has necessitated further hearings.

Be Public Etility Commission of Texas l

(PEC) called speciaI hearings in 1979 and conducted a comprehensive resiew of certain transactions between the Company, its sister l

companies, Texas Electric Senice Company l

and Texas Power & Light Corrpany, and other subsidiary companies of Texas Etil-ities. Based upon its resiew, the PLC found that the Company and its sister companies were not affiliates of each other and gener-

,lly concluded that the transactions resiewed b in the public interest. In December a tring was held in a state district court in

.onnection with the appeal of the PEC's April 1979 order. In oral comments follow-ing the hearing, the Court announced its l

intention to enter an order remanding the matter to the PLC for further consideration.

l l

9

m fla!!asIbrar & Light Com/way Selected FinancM Data FIMNCIAL STAllSilCS 1980 1979 1978 1977 1976 1UTAL ASSETS end of year (thousan6).

$ 1,126,170 $ 1.100.995 5 1.M7,450 $ 945.202 $ 824.069 ELECTRIC PIANT end of year (thousands).

$ I,372,482 $ 1.318.354 $ 1,244,40 $ 1,078,157 $ 948.359 Accumulated depreciation - end of year.

$ 313,797 $ 277.817 $ 245,683 $ 218,848 $ 200,927 Construction expen6tures (including allowance for funds used during construction).

$ 121,693 $ 167.600 $ 158.438 $ 136.775 $ 114.746 CAPITALIZATION end of year (thousands) long-term debt.

$ 345,817 $ 346,443 $ 373,017 $ 380,718 $ 298,858 Preferred stock..

104,722 IM.722 104,722 104,722 104.722 Common stock equity.

432,% 2 375.690 339.279 322.072 270.898 Total.

$ 883,501 $ 826.855 $ 817.018 $ 807.512 $ 674.478 AVERAGE INTEREST COST ON IONG-lIRM DEBTend of year.

6.9%

6.6%

6.5%

65%

6.2%

I AVERAGE DMDEND COST ON PREFERRED STOCK end of year.

6.3%

63%

63%

63%

63%

NET INCOME (thousan6).

67,383 $

45,932 $

42,953 $

42,405 $

31,927 DIYlDENDS DECIN(ED ON COMMON STOCK (thousands) 33,040 $

32.450 $

19,175 $

14.160 $

13,098 COMMON STOCK DATA Shares outstanding - average.

14,083,333 13,833.333 13,000.000 12.083,333 11,175,000 Shares outstan&ng - end of year.

15,000,000 14,000.000 13.000.000 13,000,000 12,000.000 1

Eamings per average share 4.32 $

2.85 $

2.80 $

2.97 $

2.27 DMdends declared per share...

2.36 $

2.36 $

1.48 $

1.18 $

1.18 Return on average commor stock equity 15.0%

11.0%

11.0 %

12.1 %

10.1%

RATIO OF F.\\RNINGS TO FLXED CHARGES..

4.0 32 3.1 3.4 30 SUPPLEMENTAL RATIO OF J

3.0 EARNINGS TO FLXED CHARGES

• 3.3 2.9 30 3.4 AllIKANCE FOR FUNDS USED DURING CONSTRUCTION AS PERCENT OF EARNINGS TO COMMON STUCK 20.4%

41.9%

43 2%

35.5%

33.'%

FUNDS FROM OPERATIONS AS PERCENT OF CONSTRIlCTION EXPEND 11TRES Mcluding allowance for fuads used dunng construction).

56.9%

29 3 %

35 9 %

43 8 %

36 7%

% sqpemental rano d camme to ined cha res mcludes the comrancs alloca'de portion d interest on wnior notes d ah:ed comr2nies shich pnmde smices to the rempany

)

I oPEMr!NG IOW Es OluAnoN BD RMYTEWI

1. Awes </lMian EXPENsr3 011 TEES

1. ew,(Mm 3'i 300 i

N M

1_lI1%II lI Im 1%

I

b OPER TING STATISTICS 3 pgggg 1980 1979 1978 1977 1976 ElICTRIC ENERGY GENERATED AND PERCRASED (mwh)

Generated - net station output.

12,713,256 11,720,463 12.011,330 12 '&3,846 11,523,507 Purchased and net interchange.

134,090 165.132 89.923 22.145 2.884 Total generated and purchased...

12,847,346 11,885,595 12,101,253 12,410,991 11,526.391 l

Company use, losses, and unaccounted for.

598,289 585.817 652.025 563.025 511.980 Total electric energv sales 12,249,057 11,299.778 11,449.228 11.847.966 11.014.411 FEEL. MIX FOR ElICTRIC GENERATION Gas.

48.1%

48.2%

55.1%

64.5 %

65.7%

i Oil.

0.7 0.6 1.1 0.5 Ugnite.

51.9 51.1 44.3 34.4 33 8 Total.

100.0%

100.0%

100.0 %

100.0 %

100.0 %

ElICTRIC ENERGY SALIS (mwh)

Residential.

4,880,144 4.301,795 4,554,102 4,295,782 3,828,422 Commercial.

4,975,876 4,570,382 4,609,565 4,374,875 4,147,511 Industrial....

1,842,414 1,773,866 1,696,511 1,616,720 1,540,560 Govemment and municipal.

365,588 520.003 119.097 287.433 241.235 Total general business.

12,064,022 10,966,046 11,179,275 10.574,810 9,757,728 i

Other electric utilities.

185,035 333.732 269.953 1.273 156 1.256 683 1

Total electric energy sales 12,249,057 11.299.778 11,449.228 11.847,966 11.014.411 OPERATING REVENUES (thousands)

Residential..

$ 232,071 $ 177,173 $ 165,413 $ 148,828 $ 117,883 Commerc'a!,

197,473 167,411 144,985 133,742 109,316 Industrial....

65,185 56,332 47,114 43,5 %

35,088 Gmemment and municipal.

13,423 9.720 7.455 6.362 4.466 L

Total general business.

508,152 410,636 364.967 332,528 266,753

-)

Other electric utilities.

3,491 6.653 5,5M 22.996 18.088 Total from electric energy sales.

511,643 417,289 370,471 355,524 284,841 Other operating evenues.

12,173 _ 5,152 4.871 6.700 4.678 Total operating nsenues.

$_523,816 $ 422.441 $ 375.342 $ 362.224 $ 289,519 ELECTRIC CUSTOMERS (end of year)

Residential..

270,347 254,586 241,201 228,393 224,347 Commercial.

29,855 28,567 27,272 25,644 24,854 Industrial....

2,362 2.328 2,199 2,108 2,036 Govemment and municipal.

395 877 825 777 743 Total general business.

305,959 286,358 271,497 256,922 251,980 Other electr.c utilities.

2 2

2 2

2 Total electric customers.

305,%1 286.360 271.499 256.924 251.982 i

Residential classification ixludes indirect sales (apartments, etc.);

dwelling units not included in number of customers.

130,781 143,088 142.485 137,732 131,279 l

nu ouest m otsr-c cmam Mams <fMm rksuamb of ham l'5 ll19llI 32 i

125 g

1

'l

'2

'i 74

~5

'6

'7

'8

'9 m

'o

'l 72 73 N 75 76 7'

78

'9 80 11

i i

M M w &Ligim npuo-7 gMOM.,,

.r. ;k. m@A Management's Discussion and Analysis of Financial Condition and O

S

$th OUt$M l Results of Operations

. 07 GC!UNOS- -

Uquidity and Capital Resources

~

.M.g ^ p ($ $ r 3qlb N lhe pnmary capital requirements of the Company for 1980 and as estimated for 1981 through 1983 g,

.. qi ml3 are as follon 1980 1981 1982 1983 s ' : I.3 ai

.g g -

.~4 r:F Thou> ands ofI)ollars Constmction expenditures

. W M-l' t 7::Mi (excluding AFL110

$109,000 $122.000 $112.000 $ 87,000

.gggd W3. "p'h3 Mear fuel..

SM 3.W M

IM 6x L.s

...;o w.e d a Matunties of long-tenn debt and sinking fund requirements.

30,000 35.000 Total.

$144.000 $125.000 $122.000 $135.000 Q,7;.

'-. _.[

Be Company generates funds from oper-ne Company expects to sell additional ations sufficient to meet operating needs, securities as needed, in amounts and of

-~;

pay dividends on capital stock and finance types presently undetermined. Although the

~'

• f a significant portion of capital requirements.

Company cannot predict future regulatory

'j' &

lhese funds are derived from net income, practices and is ;o some degree exposed to

' ~

-5

+

~- "i depreciation, deferred taxes, and federal in-fluctuating economic and securities market M,_

~

b_.; /jg (y, m.

/

vestment tax credits. Factors affecting the conditions, it does not currently expect any W j, '

ability of the Company to fund a portion of changes in trends or commitments which V

its capital requirements from operations in-might significantly alter its basic financial d

5-clude adequate rate relief and regulatory position or ability to finance capital require-7

\\-

practicos allowing a substantial portion of ments in the future.

.s 1} ' '\\

~~

adequate depreciation rates, normalization construction work in progress in rate base, of feueral income taxes, full current recovery x*

f of the cost of fuel used in the generation of

! ; )1 $

/

eixtricity, and the opportunity to eam com-J,

.dj[yl//l/

/d tal markets.For 1980, approximately 57% of

(

4

'/

petitive rates of return required in the capi-

.*Y

/%

the funds needed for construction was gen-Oj erated from operations.

I!

4S Extemal funds of a permanent or long-

_ il term nature are obtained by the Company kj through the sales of commcn stock pri.

C marily to Texas l'tilities Company (prent),

l W

preferred stock and long-term debt. The capitalization ratios of the Company at Ik-cember 31,1980 consisted of approximately 39% long-term debt,12% preferred stock and 49% common stock couity, and similar t

ratios are expected to be maintained in the Regular inaintenance ofpland in ofpah future. To provide for immediate cash re-tims be s insure //w/ DPel can meet the quirements during periods between long-J detnark Jbr serrice allyvar.

term financings, the Company obtains short-term loans from Texas l'tilities Com-pany, which has lines of credit with com-mercial banks aggregating $300,000.000 at December 31,1980. The Company does not maintain separate credit arrangements with banks or other lenders.

I 12

Results of Operations Opinion ofIndependent increases in operating revenues include Certified Public Accountants rate increases granted the Company of ap-Dallas Ibwer & l.ight Company:

g proximately 10% in October 1979 and 13i, We have examined the balarice sheet of in August 1978, recovery of higher fuel costs on a current basis, customer growth, and Dallas Power & l.ight Company as of Ik-increased energy consumption by customers.

cember 31.1980 and 1979 and the related Erargv consumpnon per customer is affected statements of income, retained eamings, bv material vanations in weather conditions and source of funds for construction for a'nd was particularly impacted by the un-each of the three years in the period ended usually hot and dry summer of 1980 com-December 31,1980. Our aaminations were pared 'to the relatiiely mild summer of 1979 made in accordance with generally accepted and by warmer summer and colder winter auditing standards and, acconfingly, in-weather in 1978. Customer consumption cluded such tests of the accounting records also reflects the effects of energy con-and such other auditing procedures as we senation on the part of some customers.

considered necessary in the circumstances.

Operation and maintenance expenses Ir. our opinion, the financial statements have increased substantially as a result of referred to above present fairly the financial the continuing inflationary' pressures on the position of the Company at Iiecember 31, cost of labor, materials and senices and the 1980 and 1979 and the results of its opera-additional lignite-fueled generating units tions and the source of its funds for con-placed in senice during 1979 and 1978; struction for each of the three years in the such expnses were also affected by the period ended December 31,1980, in con-higher costs of operating and maintaining formity with generally accepted accounting existing lignite-fueled generating units, in-principles applied on a consistent basis.

cluding the additional costs of operating DEIDilTE ilASKINS & sells and maintaining the pollution control equipment required in connection therewith and unscheduled maintenance on several D6s, Taas

} such units m 1979. Increases in taxes umr wch 26,1981 than income resulted primarily from irr D creases in revenue and property basea taxes.

Allowance for funds used during con-struction decreased in 1980 primanly be-cne of the allowaver 4 a greater portion of consruen v,, u arogress in rate base by the Company s rsiatory authorities.

The increase in allowance for funds used during construction in 197c was attributable ptincipally to increases in amounts of con-struction work in progress. Increases in other income and deductions -- net and rederal income taxes on other income in 1979 resulted primarily fmm the gain on the sale of a portion of the Comanche Itak nuclear station.

The Company expects to pursue adeguate and timely rate relief in the future to orfset the effects of increases in the costs of provid-ing electric senice.

The Company has prepared supnlemen-tary information concerning the effects of changing prices in compliance with the reporting requirements of Financial Ac-counting Standards Board Statement No. 31 such information is included on page 22 of this nprt.

k 13

l Q

aittas ninr & pgu Compmr n

"At DP&L We h+ ve Balance Sheet

~

o lot of chance's for. ' -

ASSE13 training in addition

,9[' 3,93

(

tethe educational EirCTRIC riasT Thousands of Doiiars

-- assistance in senice.

l programs available Nijin s jg7 2jz s 4gl j to Us."

Distribution 317,886 2 %.638 i

General.

34,870 29,513 l

Total.....

1,002,540 951,998

'i Construction work in progress 349,623 347,199 Nuclear fuel,

17,831 16,680 Feld for future use.

2,488 2.477 Total electric plant.

1,372,482 1,318.354 iC ig tess accumulated depreciation 313,797 277.817 q

l Electric plant, less accumulated depreciation.

1,058,685 1.NO.537

~

w CL'RRENT ASSETS l

M Cash in banks.

2,284 2,329 I

Special deposits..

4,340 2,515 i

Accounts receivable:

i Customers 26,271 24.609

~

Affiliates.

350 1,020 Other....

1,011 1,168 Allowance for uncollectible accounts (2,020)

(1,700)

I Inventories - at average cost:

I.. -

Materials and supplies.

9,738 10,919

i i

Fuel stock.

11,941 9,995

' E Other current wets.

10,942 5.099 i

8 Total current assets.

64,857 55,954 3g 7

DEFERRED DEB 113.

2,628 4.5M d

TUTAL.

$1,126,170 $1.100,995 s

a l

See accompanving Notes to Financial Statements.

.m r -

C#.

Testing ofcontrol room eqtapment arul intensite operator training are ongoing actiniks at liv Comanche Ihth plim! near Glen Rose.

I 14 6

l

-) LLGluTIES December 31.

1980 1979 c-1housands of Dollars CAPITU.17ATION Common sock (Note 3).

$ 328,500 $ 299.000 Retained eamings (Nate 4) 104,462 76.690 Total.

432, % 2 375.690 IWferred stock (Note 3).

104,722 IM.722 long-term debt - less amounts due currently (Note 5):

First mortgage bonds 305,000 305,000 Other long-term debt 39,725 40.282 t'ntmortized premium 1,092 1.161 Total.

345,817 346.443 Total capitalization.

883,501 826.855 CL'RRENT LlG!UTIES Notes payable - Texas L:tilities Company (parent).

50,600 76,500 Accounts payable:

j Affiliates.

18,168 11,258 Other........

I1,737 22,921 l

Dividends declared.

1,643 1/>i3

!ong-term debt due curantly.

28,739

' tstomers' deposits 3,040 3,119 Tns accrued..

35,728 16.865 Inw accrued...

6,874 7,521 Other current liabilitis 5,529 7.641 Total current liabilities.

133,319 176.207 RESEI6T.S FOR INSL'RANCE ANT) CASl'AIIIES.

942 1,833 l

ACCLWIATED DEFERRED TEDERAL INCOME

'N TAXES...

51,362 42,938

/ l%B10RTIZED FEDERAL INTESTMENT TAX CREDITS.

57,046 53,162

[

COMMITMENTS AND CONTINGENCIES (Note 6)

TOTAL.

$1,126,170 $1.100.995 l

1 l

l i

')

15

7 2

Ikdkulbuer & L&bt Com/wiy

_/

Statement ofIncome

,7 i

Year Ended December 31, 1980 1979 1978 I

y lhousands of Dollars Jg OPERATING REVENt'ES

$523,816 $422.441 $375.342 OPERATING EXPENSES Ibel 207,802 172,612 164,476 Operation.

68,192 57,332 44.242 Maintenance.

37,638 34,152 23,546 l

~'Wfr Depreciation.

33,758 31,218 28,843 l

. :fE.,

Federal income taxes (Note 7) 38,407 21318 19.086 i

Taxes other than income.

48,243 43.267 39.481 l

Total operating expenses.

434,040 359.929 319.674 OPER\\ TING INCOME.

89,776 62,512 55.668 UDIER INCOME

(

{ l'

• Allowance for equity funds used during construction.....

8,906 11.M6 7,665 Other income and deductions - net.

1,275 5,432 3.328 y.

l Federal income taxes (Note 7)

(593)

(5.589)

(1.603)

I Total other income.

9,588 11.687 9.390 TOTAL INCOME.

99,366 74.199 65.058 i

INTEREST Cit \\RGES y

interest on mortgage bonds...

21,793 22.258 22,474 Interest on other long-term det.

2,412 2,549 2.495 0 her interest.........

Albwance for borrowed funds used.

I1,298 8.093 5,181 during construction.

(3,522)

(4.633)

(8.N5)

'* " " " " ~ ~

Total interest charges.

31,981 28.267 22,105 NET INCOME.

67,383 45,932 42,953 Rtwgm/ionforpnfessionaland a>m-PREFERRED STOCK DIVIDENDS.

6,571 6.571 6.571 q

mum /y service during 1980 inchuledlie NET lNCOME AFTER YREFERRED Public Relati<ms Society ofAmerica's Siher STOCK DIYlDENDS

$ 60,812 $ 39.361 $ 36.382 AmilAttard(k>p) and the Dcdlas Home g.erage shares of common stock

(; Apartmen/ Builders' Asociale (f the outstanding (thousands)......

I4,083 13.833 13.000 lear Ana' rd Eaming and dividends per share of common stocle Earnings (on avnage sh.aes outstanding).

$4.32

$2.85

$2.80 Dividends declared.

$2.36

$2.36

$1.48 See accompanying Notes to Fir.ancial Statements.

I l

i 16

Ihllas Rmr c; Light com/tmy Statement of Retained Earnings Year Ended December 31.

l 1980 19'9 19'8 1housands of Dollars R\\ LANCE AT BEGINNING OF iTAR.

$ 76,690 $ 69.779 $52.572 ADD - Net income.

67,383 45.932 42.953 Total.

144,073 115.711 95.525 DEDl'CT Dnidends (cash)

Iwferred stock:

$4 series ($4.00 per share per annum) 280 280 280

$4 24 senes ($4.24 per share per annum) 424 424 424 54 50 series ($4 50 per share per annum) 335 135 335

$4 80 series ($4.80 per share per annum) 480 480 480

$6 84 senes ($6 84 per share per snnum) 1,368 1,36s 1,3 68

$7.20 series ($'.20 per share per annum) 1,440 1.440 1,440

$148 series ($7.48 per share per annum) 2,244

2. 44 2.244 Common stock (for amounts per share, see Statement of Income) 33,040 32.450 19.175 Total dwidends.

39.611 39.021 25.746 RAL\\NCE AT END OF YEAR (Note 4).

$106,462 $ 76.690 $69.779 5ee accompanving Notes to financial Statements.

I l

17

IMlasIbtar & Liek Com/my

!' Working as a Statement of Source of Funds For Construction DP&L meter reader year Ended December 31.

gives me the chancef 1980 19 3

_ 19 8

{

to see and visit with musans a teltars Fl'NDS FRO.\\1 OPER\\TIONS ou,r customers m.rall Net incon.e.

$ 67,383 $ 45.932 $ 42.953 ports of the city."

tymaum...

33,758 3i.2is 2sm3 Deferred federal income taxes - net.

8,424 8,575 6.265 Federal imestment tax credits - net.

4,670 14.087 14.703 Allmance for funds used during construction (12,428) (16.477) (15.710)

Total funds from operations.

101.807 83.335 77.0 3 f f.

less - Dividends declared.

p

[

preferred stock..

6,571 6,571 6.571 f

Common stock.

33.040 32.450 19.175

.(

Total dividends declared.

39.611 39.021 2;.746 jj E

[ ' '.,

Net funds from operations.

62.1%

44.314 51.308 3,

[~

w' FUNDS FR051 FINANCING c1mL EE Sales of securities:

4.1 l

l Other Img-term debt.

279 2.750 3.398 y

Common stock.....

29,500 29.500 h

Retirement of long-term debt....

(29,575) (10.516)

(1.028)

I increase (decrease) in notes payable to i

/

Texas i ti'ities Company (parent).

(25.900)

'600) 54.100 p

l

{

,9 Net funds from financing (25.696) 21.134 56.470 wh%

MllER SOURCES (l'SES) 0F FUNDS Changes in working capital excludmg notes payable and l

long-term debt due currently:

j Cash in banks and tenyorary casb inve3tinents.

45 300 1.274 Accounts receivable - net (515)

(4.779)

(5.009) l i

Inventories....

(765)

(4.643)

(l.038) l Accounts p.r.able.

(4,274)

(3h0) 9.693

{

Taxes accruel.

18.863 6.428 (3.056) l Other - net (9.895)

(174) 1.332 Net change....

3,459 (5.908) 3.1%

Investment advances to affiliates.

43.440 Nuclear fuel....

(4,776)

(5.248)

(9.915)

Sale of electnc plant.

74.327 99.s71 Other - net (245) _ 1040)

(1.771)

(

Net Mher sources (ms)of funds.

72,765 85.675 34.9;0 TWAl-

$109.265 $151.123 $142.728 CONSTRUCTION EXPENDITl RES Electric plant.........

$I21,693 $167.600 $158.438 l

Allowance for funds used during construction (12.428) (16.477) (15.710)

CONSTRUCTION EXPENDIRE5 (excluding allowance for funds used dunng construction).'

$109.265 $151.123 $142.728 i

See accompanying Notes to Financial Statements.

i I

IS

(

l l

__ m e

w ead

[tiiidi(N 1 ~~.fi t ~ ~ $'

i "No matter what my job is at DP&L i

/

g can helpkeep I

~ - o [.

T 9

service reliable by j

rep.orting any

,.. y, g'

- problems witlpr

/ L'O.

>^",f+.?

~

~ ystem that I see s

<jfy

'<<j. f i-when rm out in the neighborhogtl."

j. E.

rj j-9 o

g;

=

n

((

L, t.,

.o

g

{ _l

' t.-

• g

.g x '-

4 4

x K;

\\.

\\

~

^**

,,.w.,

?,

D t

n f'

j p :-

4 YNu LL.;*

p N

'l1 K '

Qth ~./

}

E

~; :;.,;

jf...

i

~ ~,w :...

W.h'dC:

h f

d..'

l

+

19

m M--N M

l'

/ 4...

Ar e /. - t t ""f. / 4

' r y,t er m 4.let u h ne r m l 162 I nlmn l

Notes % Gnancial Statements encrap ;i nr wra mp m i oran tht enth me:

,u n! La nnhn r ).t.

e w r ::ng s

'o xr r s a

1. Sipificant Accounti.sg Polkie -

' m : t N!.

dihl 'pt r% e H' if IJt:1, dh

,an Uh P il a,.,.o i

l h t/rh ! b Ni Rrdrh r! art M: at -neu d s

y,, g3 g g 7 y,,

g 7,g,rn,..g,g,.,,

s I

Ot O rs! i d pt:>pe$ j&iRoqs s hdQtd D. tjedn, p!.U)

I Nldts Jh-r md Mulenab rphta:S Tht.;d 31. '

t.n' I,a

.h I a3 h'. irk

, s ts I,e.

i

,, i 1.,

s l

"I d ' l C 6e lf.d li' di h tht It J IJ;,

ht il

rl f ::,

4

i. Lts o, a,

.e. ct Int i'!s s

-rr, i

ya: 6,i pD,s :n gyy,,,

g,,,,,, 3. g,,, g

.g g,

,.,g

{

m ustrL a m

.b 'i edh V M hb ' t'tl l1, r!UL f r h (1

\\

1

(,

y, 7_ gg

,q g

1 is inn te i Mhb i 6i J.nnJ wnstr:J' it : ik s

t !T't et ' ' e,... c, p.1, :Me ',, s

m{ : f I, h s k n

. s

' s

< i T [ r' % N J"' %l te' b Ji;i

.tyd Gh i'i 1;;ttrm!

.i s >

' N, l' ; r A,

,,, i,1 ag7prp n.

, i r g : g n,

,1, at rn i r

r s

i l

.b li '1%

.{k l Jr ! Lg'. Uti kls, }.i r(M H '": %t1*g t

i71 i'

- i en ga:t e, lit t

@\\ ta c!!.

4, i n..rtn,

, a ime a

i i

I h t'

' 'P'd r' t'Ili d !.ir' t ' L1"'et Y

't, % -lII t

!.U. N it'

- 1l a 4-e it, it 1 3i[ a.. a L < 4

,e !

1 o

r;

.. t

. !. J i mpx ia n OI l 'I di :, U dd "P rsidIMhn!..

..Q C

.ti s " o

" tJ'A ts,4 '.ht

'o ! J 5t " h ! i i"s : i d rQrtN.

' ! utd r"

i

'h h it

',Lini

'd[:fdi. (d \\f [d 1

'l : 0 i

I m.4 C e e :mded sun, an.aF 4 np, '.i ' rn :

3. Common and Preferred Stoclo d

% g! U.

Lit ' w "* :y:,J(,

t

, pn et m e

su 4

,y..

cLi Flit N N re M a!i r, a,!!b r ;n l tp r (at i1 TT'4' ej!+ J ' ' 'L:d I. t hN

,t-Ette o

..c i

a

,o-

.a art Q

• ),

'! n d

.'3'____.

r n 1+

6-

- te s.1[ Ia: 4 et! - ( J.t'h t the

's! "

, r grari t [h t

I 1

i <

4 t

i: m M,

i:ih Js

>ya1a ' e t, i

i t

JF1 - "

a 4

l

. kTf( k s[ ' '1[

k "'t l

'_st %., i if i

I

,d' d% ; i gi'-

n,y *Gr"t Lth t

r. >p. rt e s. a

r. ch l

' u +4rr :he nip Jeg ste, q in,4 L t <,,k,t y,.,

t

• ls c,t gt jf p:r:

l

! y' t ',

'd-

Trt r

i t

l

.=-

n se app 1 m te o

t.

- cia 3 s i

/ e rg ra ' e up f,e Th s

h. ] Ir. '

f

.,hiirG I't! #d) : K '!ilt I tA ls

,n ! < ir!)

'w I

a i

j

[=

l Ji.

.NdLi" s i "a.

4Ht !M ist bd tr o T jp, i > d ie l

i %.ded 't l'.

V t '

l 1

s

't"7 d I

• it.is n Jrt gr ' ri j

y h

t :'h f

4 l

,j t

rr d.< n - men;ns, s I,t p et r

• g, s

' r

,a1 t,,m % m i!

l s KD 9th n Jn n i

s le; r

! d i '!. il a

'It h t 'rC M l

s' r i p o

s l

t. "n

' In e ' !

lk rs ' J. -  % "rl.

+

I 1'

t 16.th le r

"'t:

e 4

.i't b ::1 i:b d':

I! n n i \\ r j

4, r* ;

s,3

.h -

Ni npa we. i a, i s.

j preem,'se

.< at y ' sr ", i i;u

,4 d,,,

4

.. r. s f.,

ir n:b,

a rri n g dtrs dare s

'! p i: ' 3

,.r'.

r

, it, p!, / <,

yi.'e f%.

74 f s

c s,*

t r.o 81, m:w <

r-unitH46

)irm by

_J bb;iku:

'r t. a! ".i ; L 'r9 m qu 1 c,<

as i I

l C,

V

'F-t rts I; < ( '

4H-HH1 r hi s

!Mb i

u "s i

i i

't[s ki M b ihHI,

i

\\l s f ) j t %

6 t

1 1

"E y ti.L

n n' a;i s r i

'.t

• u

H+

s:;drn -

MU4 a 6

+

i

't p g g; j jt reg,gt t

,! t a; ::a

],

d[gliales cart g,gs 1

7

{

?

l m,

rirtv P b

e,, ves r ;., ts s

s,

4" m' *

'r'r %

T., e s

s t

.s h -

m 4

irr *

' ' to av "t "

am as l

y s

,,,i

,,1 r

Is t'

.a?

sis

't 2"-

t

.T h + ' '

ie'

i

~w s

-.(.

2.,

r,s i

o' I

l!

s I

(

g

"' ~

r s

.t +x,

]

j l

i s

s 4 ~.

! s g 3:

jy s

i ;

se l t

'[

e y n..~

.m,

,s y.-

m

2--

3 r

(

l

4. Retained Earnings Restrictions Sinld ig fund and maturity requiremer.13 for the years 1981 l

l The Campany's artMes of incorporation, the mortpge, as

. through 1985 under long-term debt instruments in effect at I

supplemented, and the debenture agreements centain provi-December 31,1o80 are as follows:

sions which; under certain conditions, restrict d'stributions on y m,,,,,

or acquisitions of its common stock. At December 31,1980, cash 1

sinlung Maunty Require-none of the retained earnings was thus restricted.

Icar rund(a) (See alGT) IDent(a)(b) nasands of in 5 1%1.

$3.050 5 --

1982.

3.147 97 1983 4.2'6 t.G 34.566

5. Long-Term Debt (less amounts due currently) 19 s.

3.m 2sao 2s.m 1985.

2.810 25.000 25.600 g

1980 19 7 (a) Excluding amounts satisfied pner to December 31.19h0. $600.000 for 1981.

~

fiO3A9 for 1982, and $3Cxo for 1983.

/

hsands d rdrs (b) other regwrements may be sabfied tw certification of pmperty additions at the

' I'

'#9*'""'"

3..

$ 4.900

$ 9.000 unes kN$$I9sii

$'s s ll $

The total amounts of Sinking Fund Debentures authorized m senes due 19ss..

2sao 2s m in the ddlenture agreements have been issued. The Company's 3g-gg gn

["

First Eisgage Bonds may be issued in additional amounts,'

./

without limitation as to the maximum thereot but limited by m mes te im.

2sw 2sw property, eamings, and other provisions of the mortgage. None m ms se we 20.m0 20Ao MZlj%

of the iong-term debt is pledged, held by or for account of the 40.m0

[io 000 issuer, or held in its sinking or other special funds. Substan-r M senes due 2001.

m unewco02 30x00 30M tially all of the electric plant is subject to the lien of the sw senes Le 20os.

s0m s0m mMe.

Total hst mortg. ige bonds.

405 000 30s.000 other long temt debt.

scong fund eene es M% due 19W 10.89' 11.09) 6w. due 1993.

iiw 12 6m

6. Commitments and Contingencies 2*3 25 #

For major new construction work now in progress or

", $ % N ""

contemplated, and commitments with respect thereto, see page 6m senes due 2n.

8.s9a 8.s90 5 conceming the Company's construction program.

)

Q[g{

yjj

))

The Company, along with Texas Electric and Texas Power, has entered into contracts with pubhc agencies to purchase Funds on deposit oth trustee.

(8 3)

(1.15r) ra.

16.s62 16.ssi cooling water for use in the generation of electric energy and has agreed. in efkt, to guarantee its share of the principal, Toul other long4ern debt.

39.72s 42s2

$46.031000 at December 31,1980, and interest en the bonds twnorted crenuum tw usi issued to finance the reservoirs from which the water is w iong term at._ iess amounts due cum. tty.

$wn

$Mus supplied.

The Company is involved in various legal and administra-tive proceedings which, in the opinion of the Company, are not expected to have a material effect upon the financial position or results of operations of the Company.

1 21

7. Federal Income Taxes iMis /ktr 6 Lijf/ Com/uny The details of federal inmme taxes are as follows:

Supplementary Information Concerning wr raid oece*r n Effects of Changing Prices 1%)

19'9 19'8 Enaudited information fumished in compliance with the

{

D "

m.ed eng -

reporting requirements of Financial Accounting Standards crem uni mcoce uxa.

ssm saw seus Board Statement No. 33, Financial Reporting and Changing neferw arahncome mes - net Prices (Fb8 33), follows. The S*atement indicates the need for F

ta-bem emaam metM information about the effects of 1

aperimentation in providN' ation is intended to and Irm.... -

6.4)

,A H 5,'9' changing prices. Such inform...

i Certun cpita!ued construchon costs.

1.s34 1Afl t46 better understand the impact of mflation on the Company.

ohr.

uo m9) c2m nui.......

8.a 8.rs 6..ws Because the information is presented on an aperimental inetmeni ax creets - na wo w nm basis, it should be viewed with caution Calculation d the ope $rmN inf maation inhermtly !=lves the use of assumptions, ap-m o' u.us

19w, proximations, and estimates and, therefore, the resultmg mea-ggg cam on asrosnon d rne 8s s.*o a

surements should be considered in that context and not as ohr.

sm 29 1.s9s precise indications of the effects of infiation. The effects of Toul a 21 mcome mes charxa to mher mcome.

s95 sv9 ao3 changing prices are not recognized for income tax or rate-Taal aral acome mes swwe sur sm89 making purposes, therefore the supplementary information should not be interpreted as ad ustments to earnings reported i

Federal income taxes were less than the amount computed in the Financial Statements.

by applying the federal statutory rate to pre-tax book income Information concerning the effects of general inflation as follows:

(constant dollar) was determined by converting historical cost wr r a.mu+r n amounts into dollars of equal purchasing power, as measured 19so in 39 3 by the Consumer Price Index for All Urban Consumers.

%2nds a Nun Information conceming changes in specific prices (current Fwerahncome axes a stxutorv rue 96v cost) represent such changes in electric plant from the date m enor o m9i.

s49% su sce susa costs were initiallt incurred to present, and differs from rectons m ar21 mcome mes resultog f=

conr. ant dollar information to the extent that the specific

$572N2.c," * " """ " " * -

O, prices have increased at a rate different from the general rate AmnrMabon d mvesment ux cre6ts.

1.sN 918 719 of inflation. The current cost of electric plant was computed bv other im mon 7s4 ndexing the misting historical cost of plant by the Handv- '

Tout n.ducaons 9.9%

6w 9 ss9

%hitman index of Nblic Ltility Construction P.osts for th'e Tour a ai ecnme axes swam sur sm South Central Region and othe'r appropriate indices. Such FAcme ux rme -

• ,,

• 95 3m current costs are not necessarily representatise of the replace-ment costs of the Company's productive capacity that might be incurred in a future period.

Depreciation on the constant dollar and current cost basis

8. Retirement Plan was determined by applying the Company's straight-line de-The Company has a retirement plan cosering substantially preciation rates used for financial accounting purposes to the appropriate indeed electric plant amounts, and is the only all emplovees. The cost of the plan is determined by an independent actuarv and is funded by the Company as ac.

income statement item that has been restated from the crued The cost of t'he plan, includin'g amounts capitalized, Finencial Statements In compliance with FASB 33, no adjust-approximated $5.656,000 for 1930, $4.822,000 for 1979, and ment has been made to federal income taxes.

$3.93M00 for 1978. As of the annual valuations atJuly 1.

Under rate-making ru!es prescnbed by the Public Etility 1980 and 1979, accumulated benefits and net fund asse'ts were Commission of Texas, only the original cost of electric pla'nt is as folla recoverable through revenues as depreciation. Therefore, the acess of the cost of plant stated in terms of constant dollars J?

and current cost over the original cost is not recoverable

""^"

cuan2r gesennate a uumazed bert:ts.

through rates as depreciation and is reflected as Reduction to teet schs scro Net Recoverable Cost of Electric Plant. The Company believes.

N="d W

4'"

based on past experiences, that it will be allowed to eam on Tout ssm sol the net investment in electric plant when replacement of sN asets sw saw facilities actually occurs.

An maa rre c; mum d m us usa m dewrrmnag the uue s accumuleed benefits u

During periods of inflation, the holders of monetary assets Comparison of Selected Financial Data Adjusted for suffer a loss of general purcha>ing power while holders of Effects of Changing Prices monetary liabilities aperience a gain. The amount abovn as war tre ier 31.

Gain frem Dechne in Purdasing Iber t.f Net Amounts Owed 3%

9,9

,9,3 39,,

,9, rtflects :he net of them two items and is primarily attributsble

.w a y,7,y i9gn sii,,

to tne substantial amount of long-term deh: which nas been opersma menue...

sinsi6 s 4 9ro sc4r6 $4 2.w s419#1 9

used to finance electric plant. Since tiepreciation on this Consta..t tvillr Inkammn

! electric plant is limited by regulation to th :eoxerv of set incane.......

s also s at:

historical costs, a holding gain on del:t is nat alloied ard Eaming pn eare d mmm

1. ,"' 8

1. 5 recovery is limited to only the embeddai co3t of debt capital.

O, mr eni, net t

To reflect the result < of rate regula: ion. Gain From Declire mmrdle cnt -

553.5c 8 5102' C""d :"***'""

[ in Parchasing Power of Net Amounts Owed is offset bv the

} Reduction to Net Recoverable Cost of Electric Plant. ~

s',Qe shue a comrnon stock..

$ 120 $

.14 3

'l Efkct d general mflemn in acess d merece m gwific g

il pnce d elecinc plant h

after rtdoction to re t

Year En&d Iktember 31.1%

gg.gg, cg,,.

$ g3 nqi gggy,gg) f Thot ands d Ik;llas ya,yg,g recrwerable cost.

$513.%' $ 515.'27 MM kr Gene alInf rmsmn "h.ceng Pncs n

Francial General Infixion Speofic Pnce Gam imm aduie m pWmng pm d nd amounts med $ W3 $ 7 %

}

statements tronstant Dullm) (Curmnt Casti Dmdends 4tlared per share of

(

4erage 1480 Iktus common stock.

5 236 5 268 5 18' $ 160 $ 131 f

operatir.g menues...

$5R816 5; 3 816

$523 816 Consumer pnce inda -

Operatmg at% (21 434J)40 4'2.243 4Hwl zwrage 24 8 217 4 195 4 181 5 l'05 opersmg mctnie.

89."6 51.;'i 45.814 odier income 4.W 9M8 9M8 Tatal mcome.

99.;M 61 161 is #2 Interes chart,e 41981

31. % I 31 481 Set mmme.

$ b'.V4 5 29.180

$ R421 inaeme m specific pnces of ekctnc plant held dunng the year (b) 51 %.413 l< eduction to net recreerfle cost d cleanc plant.

$ t85.8131 66FM n

E5ect d general infl.ttion en ekttnc plant,

(222 68m Efea d genera! cdlarmn m acess d matase in yecif t pnce of dertnc plant aner reduction to i

tiet recmerable cost.

(80.9 % l i

Gam from atime m purchemg Fuer d nd amoun:s med.

6494 64 ;M Net change m purciusng peer.

5121.;;01 S 1bi91l recanon amounts J $44.99Uion br hi<2oncal cost. S'2.1% in) for l

tal ladudes c.}dar and 5" 993 tH) br current crs.

constant i a (b) At Dect her 31, IWO electnc plant. nei of accumulated dep earson. was SL982 2%20 for current cast and $1.0%.fMml for LNoncal cost 1

h I

1 l

u

Diredors Officers tT. L Austin,Jr.

1. S. Farrington Chuman if tk thmtand ChafEmmtur <f

'l+rnkwt arulL3nf Emwine Ter.u iI:in.t Gnpar

~

W. W. Aston t'#11enry C. Beck J nrt w kwa T. L Baker

• #IJord S. Bowles ur twtent adrman ofik Swedand1%knt $lkt:!as rek,ulsamgs e tam ranzmn

• • D.J.11ampton

[

av lwkwt George L Clark aurman and C3.fEmw.w cger gueramla, G. W. Sellar

.\\atsmalknk atikdLa

\\kr 1%kett tRobert B. Cullum 51.11. Tanner, Jr.

Churrmm $tk Emm.%e Comms.w q Cullum hr1 % kst Omlwnn. Inc.

'muu-r aiutruent ser.m t #J. S. Farrington i

l%ksit an1Cimf Emwtur ofikdla Pms &

twht Comjanr J.W.Teague

.wvitry J. D. Francis i+rskknt ofik Eiptable Comjuny of Teau J. T. IEVIS reurant Tmuurer Richard 51. Ilart nr C&, rman $tklearda,ulC3.f J.11. 'wughan Admmutratne l@vr t(First.Va:sma!&mk en Ank"! W dwrY W. E. Patterson James W. Near Astont Dum ~

Wr Churman r{tk ourd ofRept.hix <f Tenu Grprswn t - Man vr e A F.xecutne Crmmita

- Member el re undit Committee

m. lent

.4 de,itm13 4

• • Elected F6ruuv 1%I tjohn 51. Stemmons a.ormam tfiruitutrust >gn'rtws Corjorainirs TRANSFER AGENT (Ar Pnferralsock)

First National Bank in Dallas, Dallas, Texas REGISTRAR (kr1%ferralStock)

Republic National Bank of Dallas, Dallas. Texas This repon is transmitted to the shareholders and employees of the Company, and to others, for the sole purpose of fumishing information cot.ceming the Company and is not issued in connittion with any sale or offer for sale of, or solicitation of an offer to buy, any securities of the Company.

I 24

(

4 l

g Dal!as Power & Light Company l

m.m 1980 Annua Report

=,m. -

l l

D 1

l l

l l

l 5

TexasElectric Service Company 1980AnnualReport

--