ML20043H628

City Public Svc 1989-90 Annual Rept

ML20043H628
Person / Time
Site:	South Texas
Issue date:	12/31/1989
From:	Legan P, Von Rosenberg SAN ANTONIO CITY PUBLIC SERVICE BOARD
To:
Shared Package
ML20043H620	List: ML20043H628 ML20043H630 ML20043H637 ML20043H640 ST-HL-AE-3491, Forwards 1989 Annual Financial Repts for Licensees for Plant
References
NUDOCS 9006260207
Download: ML20043H628 (31)

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CITY PUllLIC SERVICE 1989 90 ANNUAL REPORT l

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. HIGHLIGilTS OF THE.YEARm

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E*TAdsets ine'reai4d bpj w

1 $198,648/WX) to,i..G. >..,,. x $4A81.796,000 :

y e < City equity' increased :. g

' $51,769.000 to.. i,. c. w..,, c.: $1,674,394,000 )

Le City payments were up, 3 57.561JWX) to... < :..,.. <...;.. ; $112,345,000 ?

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• = Oros revenues increased p

1$$8,09$fK10 ~ to,.. /........ v. 4 $836,486/X)0 ?

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Cost to residential customer '

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- per KWil increased 0.8% to ;

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' 6.57C A l ei Cost to reside'ntl'al'c'ustome'ri

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.. per,MCF of gas declined 2.4% t.o:,w,-i.1..-l.$4.81$

eI Maximuin electric system loadL

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sincreased 33JKX) KW.toL,.,.:. 1 7.

2.697.000?

e93,629 eleditie'rudomers s

w ere added to total.< v.......,.'. '.,,1166,478 :

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ou KWil sales increased 6.5% 107...... I t,702.673/44 ;

s MCitsales increased 15,.1% to.c.....,.' 27.659A6tm e

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SUMMARY

OF APPLICATION OF REVENUE?

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. Gross revenue for 1989-90 ;,. c, ;...:, r.;;$836,486/xXh N a

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' Application of Revenue:

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' Fuel, purclu3 sed power hnd resale gas '., t$223,008/X)0 j 10th r operating and generni expenses... :I17,423.000j #

'Mainteiiance of the systemG,' '..... 60,508JKX)E Q For debt requirements '

. and' other interest,,=, $245,838JX)0, Lessinterest charged to comt.i j24,780JXX) -

Net debt requirements and other interest '. 221,058JK)0 ; /

Payspents to the Citi of Slm A'ntonio',,,ll2,345dK)0 j i

Halance from operations avalLble for const. 102.143fX)0- 4 Total'

.,..,,....,.. f.. :.1,.. $836,486,(XX) 1 q A

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Gross amount spent for replacements.

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' improvements and expansion os gas >

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sund electric systems.......i;;,,. $295,139J)00 W

liunds obtained from:

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J Operations........... c.. f 5102.053,0(Kh U Commercial Paper.........,.

til,401/X10f Q L mprov' ment and Contingencies Fund.. L47,631,0001 1 i

e Contributiom and advances in aid of con A 3,961JXX)1.

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...., }).hXX)P j Sale of property.

Litigation Settlement ' Proceeds,,,.

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• Aw CITYPUBLICSERVICEl H

Saik Antoni6's Natural GasSnd Electric Utilitya

, ' Annual Report ForYear Endedjanuary 31,1990[ '

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. City Public Service, San Antonid's natural gas and electrid utility,is poised Id, r g

?.the challenges of the'90s. Achisvements during tlyeyear put the utility in af J 1

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positiye position to' serve San Ant 6nio's energy needs as the 1480s came toa 1,

O closeand the'90s began.

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Dhring the year, CPS coiytinued to supply _nattiral gas and ch

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m-dvhich wercamong thelowest when compared withothercitiesin thestate. ;.y X,

g Theutility'saverat;enmnthlyratesrankedlowestwhencompand viththoseg R

t of the 10 largest cities in the countryi As onc of the largest mu'nicipal htilities 4 in thcU.S.,CPSdistribUtesnaturalgasint1 eSanAntoniometropolitansre 3

l' andgeneratesanddistributeselectricityinBexarCodntyandsniallportions} ' 7 of seven surrou6dingcounties.,

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CPS finished the 19880 year in a strotig; financial positlon; EINtbc sa10s l'n-

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creased during the year, while the cost per kilowatt hour remahad almost ; a s

unchanged fronythepn viousycar.CPSwork'e' withareagroups hky6nomici :m y d

.- developmenteffortsand showeditscommitment tothecommtmitythrisugh L >

service projects. In 1989-90 the u tilit.y built and imp' roved facilities to assure ;

tha t reliable service will continue. These efforts vsulted in quality, low;costf service for current cnstomeriand \\ vill help' assure continnation of'r'eliabhi m

- service at reasonable rates in th6 future?

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s As CPS hioks ahead to the newjlecade(the utility has h sdlld financial'f6u,nda-j tion, modern facilities and a ennscientious work force t6 meet its g;6alof proE '

il viding a reliable source.M gas and electricity at the lowest possible price. '

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• W l'at Legan Mrthur von RmenlYrg14 d

Chairman -

' GeneralManager '

0 ACIIIEVEMENTS DURING 1989-90' M

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. FACILITIES IMPROVEMENTS In June 1989, Unit 2 6f the South Texas :

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Project eompleted thelast milestone in its constructinn timetable with the be- '

.j ginning of commercial opera tio n.The South Texas Project is en nehtly the only; j

operating nuclear plant in the state and at 2,500 megawatt' sis one of the larg-1 est in the country. CPS owns 28 percent of the project a nd receives 700 mehal watts as its share.

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Unit 1, which had begun commercial operation in August 1988, operhted sp- -

pmximately 61 percent of the time during the fiscalyearand prodneed 1.85 -,

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billion kilowatt hours of electricity forSan Antonio. During the six months.

1 Unit 2 operated commercially, it pmvided CIS custdmers with 942 milllori j

t kilowatt hours of electricity. Together the units provided 22.8 percent of the -

i utility's total electric generation for the fiscal year. Construction at theJ.K.:

q Spruce Plant, being buill u nder a $444 mill.lon fixbd price contract, was 45.6 j

percent complete by fiscal' ear end, including engineering, pmeurement,;

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"iJ L construction a nd fabrica tion of equipment. Completion of the unit in 1992 will ;

add 500megawattsefm:' firikigeneratingdapacityNtheCalaverastakesite

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which currently has both coal-fired and gas-fired plantsJ '

l f As part of this project,impmvements to' the coal, dumping facility were comf TheSouthTexas Project is i pleted to serve the new Spruce pla nt as well as the existing J.T. Deely coal-fired ;

currently the only operating.

plant; The improved d u mping facility is designed 'to ha ndle all the coal CPS j

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nu' clear plant in the state expects to receive with both theJ.T. Decly and J.K. Spruce plants in full opera-and al 2,500 megawatts-tion. -

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.'1 isoneof the; Anewc mputcrsystemattheGasandElectricoperationyenterhadmproved largest in the country.

speed and efficiency in the monitoring and operation of gas and electric fai to meet custone nmp new syskm aHows opnaton quicQ c

CPS owns 28 percent of Ihe.

implement remedies in case of service interruptions and pmvides the conk project and receives.

putercapacitynecessarytocontroloperationsdurm, g hemostcriticalemer <

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gencies in more than 8,400 miles of electric transmission and distribution lines I

as its share, and through more than 3,800 miles of gas pipelines.

CIS is evaluating all the genera ting stations in its system in a study designed to

. determine if older units should be retinxi or modified forextended operation. ~

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The study is expected to becompleted during the first qua rter of t 990/

The wisdom of building the new North Gate Pipeline was demonstrated diir-ing December when CPS set hourly and daily records fordistributiongas purt chased.The use of 383,976 MCF of gas' for' resale to cust 1mers on December:

.l 22 set a new one; day record, exceeding the old record by8,5 percenQ Renovation work at th$ 30 year old ViHita Assembly Bu'ikling ns started to make the facilities more functional.The in't'crio'r of the building was remod-q eled so the ground fioor a nd basement can be utilked separa telyavhile facili-J ties were added to the pa tio to make lt more compatible with its Riverwalkand [

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a FINANCIAL CIScustonierscontinued topaylowratesduring1989-90when I

compared with ratepayers in other major cities in the state and nation. Elec-a tric rates during the fiscal year generally were in the lowest quartile among '

the 25 largest cities in the country. The com' bined average mant' hly gas and j

electrie bill for Cis residential ra tepayers was consistently thelowest among -

the larger cities in Texas and the loivest of the 10 largest cities in thb U.S. The -

utility, through reductions in' costs and increased operating efficiencies, was -

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4 able to forego an ex pected rate inerea se d u ring t he fiscal ycar, t hus providing

. a benefit to ratepayers.Tlw financial plan for the fiscal year ending in Janu-

~ ary 1991 likewise does not include a rate increase.

. CPS had record electric sales'.

during the fiscalycar ?

In Octolbr,CIS sold $576.6 million in refu nding bond s t o refina nce oider, high*

with11.7 billion interest eketric and gas systems bonds and to convert $100 million of short-kilowatt hours sold /

term commercial paper to long-termixmds while interest rates were low.The '

- action to ad vance refund older bonds will save Cl$ customers 538.9 million,

-Thc 6.5 percent increase'in '

primarilyduring thi next 14 years,and willdisplacebonds withinterest rates -

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ranging from 8.6 pexent to 11.5 percent. The new bonds were sold at an in.

' terest rate of 7.35 percent.The average interest raic on all outstanding gas and yearis duc to increased electric J electric bonds is now 7.09 percent..

usage per customer and an!

'increasc of 3,629 customers.

CIS had record electric sal 6s during the fiscal year with 11.7 billion kilowatt i

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centincreaseinclectrie :

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yearlsductoincreased

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tomer and an increase.

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of 3,629. customers.

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I Gassales were up 15.1

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ousycar,with27.7 mil.

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revenue also rose, up Th R F :

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7.5 percent,during the

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1989 4 0 fiscal : year A study of average residential electric and 'as bills in the nation's 10 b a

st citles indicates San Antonto leads in bw cost energy with an av. -'

compared tothe previ-I ous year, erage bill of $87.86for 1,000 kilowa tt hours and 5,000 cubicfeet ofgas.

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' SERVICETOCUSTOMERS Anemphasisonservicecharacterizedthe1989-'

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90 year as City Public Service expanded its facilities to serve customers a nd j

enhanced an employee awareness program stressing quality service. The d

Eastside Customer Service Center wa s moved tola rger facilities to better serve customers.The center is part of a network of four service centers hicated i

around the city in an effort to make servWs convenient for customers.

1 An awareness program, which began as an effort to remind employees that i

serviceis partof theCPSname,restiltedindevelopmentof aspecialtraining.

j program for customer services personnel. Em playees receive instruction in g

dealing more effectively with customers in various circumstances.

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' A customer surveyfconducted by. marketing students at a local university; shond 92.4 percent of the respondents rated overall service provided by CIS T L as satisfactory or better.Thesunyy wascond ucted as a pilot st6dy todevel6p pmced ures to respond to customer needs niorc effectively.

- Employees met the challenge of pmviding electric sen: ice d uring an early hea t l wave in May when 100-plus degree temperatums pushed demand almost 300 megawatts beyond the projected peak of 2,278 tnegawatts for the' month, Al-thoub usagepas high in May, the record peak demand of 2,697 megawatts i d h

On August 31c a new 24 hour2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> generation -

was not set untilJuly.On August 31,a new 24 hour2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> generatiori record of nearly c 4 -

g l record of nearly,.

50 million kilowatt hours -

Another challenge during thd year occurmd in December when record setting; was estabilshed.

IdQ temperatu res a round the state strained t he generating ca pability of mem-twrs of the Electric Reliability Council of Texas, Electric ~ demand approxi-mately 50 percent beyond the norcaal usage required CIS to operate all of its.

available generating units. As temperatu res d ropped to 6 degrees, the loss of J '

. thr ee CPS genera ting units required t hc u tility to buy power and, as the state supply of electricity)vas depleted, to' tempora rity shut off power to custoni-ers, on a rotating basis., for shori time periods, As a result of sking the emer-gencysteps,CISwasabletoavokilongserviceoutagestoct stomersatatime -

. when theentire state system'was injeopardy,Through efforts of CISand other utilities across Texas, full serWce was restored to all CPS customers within.

three hours after the mtating ot.tages began.,

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ECONOMIC DEVELOPMENTj City Public Service participated in eco-?

.. nomiedevelopment activities during theyear, with theresult that a majorgas :

e and electric customer will hxate on CPS pmperty adjacent to an electric M

' generating station, Golden l Alumitmm Co will build an aluminum rolling.

y mill near Braunig Lake where a three4mit generating station is hicated.l-Golden Aluminum willinveva pproximately $150 million in its new plant and ?-

1 will employ about 200 persons. CPS continues to work with the City of San -

1 Antonio and the Economic Development Foundation in an effo t to attract j

ot her businesses to the San A ntonlo a rea,The economic development efforts j

- target significant indust rial gas and etectric users as well as companies which a

would increase employment opportunities for the area.

During the year CPS also provided economic development workshops for-suburban cities and wholesale customers. These workshops, conducted by CIS personnel a nd representa tives of other organiza tions, provided in' forma-tion to help attract new business throughout the areas served by the utility.

j CPS also conducted workshops to assist k) cal small and minority owned L companies which wish to gain more of the utility's business,The workshops J

were part of a n effort by CPS to increase the participation of small, women-owned and minor ity-owned compa nies in su pplying prod ucts and services i y

to CPS,

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( ONt Niil'I t () I(1 l'ROVil>lN(. I NLI I I I N I si RVit i.

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C EM PLOYEE DEVELOPMENT Througha seriesof development pmgrams, Cl$ is assuring that thc utilhy will continue to havc an excellent work force that is representative of the community in its ethnic makeup. Special pm-grams attract high school students to work at CPS d uring the summer. A co-op pmgram was started to allow college students to work full time nt CPS for periods of sis months foron the-job training.The programs target hiring stu-dents in fields such as engineering where women and minorities tradition-ally are underrepresented. Through the work experience, Cls personnel expect that outstanding students can te recruited for full time employment when they graduate.

CPS employees achieved a At the same time Cis is striving 19 fill its ranks with quality employees in the milestone in safety future, the utility also is developing its current work force. During the year, when the Electric operations 148 cmployees a t tend ed college cou rses in the evenings and on weekends at i

Division received Cl3 expense as they pursued studies related to their jobs. Another 1,242 emP oyamparticipatedincoursestaught byCPSthroughitstrainingdivision.

l an award of merit msuh o w on going cHorta is a weH+ainal work force commined from the Southwest Electric

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Safety Enhange for one million hours of work The commitment to equal employment opportun.ty was enhanced d uring the without year with establishment of an Affirmative Actioa Council comprised of citi-a lost timc accident.

tens in leadership positions in the community. Tin Cou ncil has begun study-ing information about the CIS work force in an effot : to help the u tility main-tain its positive track record on hiring and advancing w, men and minorities.

CPS employees achieved a milestone in safety when the Electric Operations Division rweived an award of merit from the Southwest Electric Safety Ex-change forone million hoursof work without a lost timeaccident.TheSESE, comprised of t h utilities in fou t states, also presental CPS t he' Ibm i lughston STOl' Shock Safety Award for a year without a disabling injmy due to an electric shock or burn accident. Employees who work under thel laxardous Duty Sa fety Guidelines al3o received 395 a wards from management for sa fety during the previous year.

CPS maintains a strong rela tionship wit h its retired employees t hrough the CPS lietirees Assoelation. Membership in the association, which was started in 1986, now stands at 300 members who assist 5 maine hung strong ties with the community.

COMMUNITY SERVICE Volunteersin PublicService,a program tomatch V

employee talents with needs for volunteer work in the community, was started in August 1989. A 12-member mployeesteeringcommitteeevaluates requests for assistance from organizations and agencies and then recruits employees to work on projects w hich are selected. During the five mont hs t he program operated in 1989, CIS employees spent more than 2,800 hours0.00926 days <br />0.222 hours <br />0.00132 weeks <br />3.044e-4 months <br /> of their free time working on projects to benefit non profit organizationsin the community.

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i CIS employees also showed their concern for the conimunity through partici.

-i pation in the United Way campaign. Again selected as a Pacesetter organiza-

~ ylon, City Public Service cond ucted an early campaign to set an example for -

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. o'ther businesses a nd contribu ted $380,413, exceeding the utility's goal by 8.7-CPS employees sp'ent '

penent, The nu mber of employees contributing their

• Fair Share" increased more than 2,800 hours0.00926 days <br />0.222 hours <br />0.00132 weeks <br />3.044e-4 months <br /> 18.1 percent over the previous year..

of their free time:

City Public Service continued to 'take its mosage of safety and energy conser-working on pr6lccts; I

vation to the commu nity through presentations to school groups, bus 5 esses to benefit non profit -

and community organizations. During the fiscal year, C S personnel pre :

, organizations in the -

sented 671 safety programs in the community to 61,511 [vrsons, an 8.2 perp community.

j eent increase in programs and a 39.3 percent increase in contacts over the

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previous year, in addition,information about the efficie it use of gas and electricity was presented to more than 27,700 pers(ms.

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ISSUES FOR Tile FUTURE During theyearCPS faced severalchallenges g s;

and issues that will continue into the new decade-from pollution control i

issues tochanges in ctstomer growth. CPS is pla nning strategies to meet these

.,j complex challenges so it can continue to meet its customer needs at the low-est cost in the future.

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Many people aiready are describing the 1990s as the decade of the environment, as concern about air and water pollutio'n increases. As a user of natural re-4 sources and a pnxtucer of electricity,CIS has a keen interest in regulations which a f fect its ability to opera te effectively while al the same time maintain'-

Ing its positionas a responsiblecitizen of the hicalcommunity.Toachieve the balancebetween a clean environment and growth of thecommunity through?

continued availability of low-cost utilities, Cl$ su pports responsible regula-tion of pollutants, A proponent of clean air legislation, CPS believes it is -

l possible to enact sta nda rds w hich w til promote t he effective a nd environmen-tally sound use of fossil fuels to generate electricity, 1

As customer growth has slowed in recent years, planners at CPS have studied L

theeffect on generation needs for the next 20 years.The result of these projec-tions has been a change to generation plans for the new decade. Under cur-i rent plans, Unit I of the coal fired J.K. Spruce Plant will be the only large generating unit completed during the '90s. Other units planned to be built 7

d u ring the decad e will be smallergas-fired pea king units. The t wo proposed units, about 200 megawatts each, are planned for construction in 1998 and q

1999.The planned units will require less capital,aftera period of high capital need s to build la rge genera ting projects for fuel d iversifica tion.The gas-fired peaking units also will allow the utility to respond to changing customer demands, as the small units will add an element of flexibility to the CPS

-generatingpability.

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' Construction of the first unit at theJ.K. Spruce Plant has been a challenge since 4

y T

?its twginning. Construck was delayed apprmimately 30 days by a late -

request for a public hearing on envimamentalissues. Another appeal, filed 1

with the Texas Air C6ntrol ikiard af ter const ruction commenced, resulted inD

}

7 a hearing during the year. Late in December, the hearing examiner recom-mended that theTACilissue the air perniit,a recommendation which was, >

adopted unanimously by the full tkurd in January 1940. CPS hhbs pr6 -

• fl :Toachievei ebalance ;

t reating with construction d uring the hea ring process, since the issues ralsed

.. between : +

> Involved l environmental concernhvhich the utilit/s staff already had ad-a clean Enkironment and :

dressed (n requesting the permiti

- growthof thEcommunity' 7

~

3 through chnlinued

. Low rates (Sr CPS cust6mers are expected to continue tid next seveia>l years !

. because $ favorable fuel prices and operating efficiencies. A h;ve.

yearcon-a availabilityof.

(d I

u 1 ola rgecompanies extends untiljune 1093 Iow cost utilities, During the current fiscal year, the cost of naiural' gas toed bot'h to' generate

' CPS supports responsible -

~

electricity and for resale to gas customers dcclined slightly Irom the previous -

regulation of pollutants.

f scalycar.Cas pricesarcexpected toincreasesomewhatin theye' rsnhsd;L a

3 h'nvever, CPS projects a declining use of gas for generat{on because of full (

- opeationof theSouthTexas Project and theadditionsf theSpmcecoal firal -

.4 -

unit in 1992.

L !

q>

Arbitration with the rallnud which hauls co.d to the utility's coal fired plant restdted in a $51 million refund during the fiscal year to CPS for charges in' -

excess of the contractual rate. Arbitration also resulted in significant wduc.

%j tionsin the freight rate.

g d;

Use of nuclear fuel for generating electricity is expected to continue pnxlucing '

a positiye effect on CPS customer bills as the low cost of the fuelis expected to remahi stable during the next fiscal year. At the same tim 4the utility ey S

. pects the Sout h Texas Project to provide 37 perwnt of its tot'al clNt ric gener-:

[

ating requirements for 199M I, an increase of 62 }wrcent sver the$urrent pear, I

' thus providing even greater benefits for cust6mers, l

J PE RS O N N E L CH A NG ESThe iku rd elected two newTrYtees i6 i 989 tE fill'

- vacancies on the ikurd. Al Aleman,a business and'civicleade6 was elected toa five year term to replace Ruben Escobedo who completed 11 172 yearr.

d of servicc on Ja nua ry 31,1989. Gloria Leal Herna ndez wa s elected to complete j

Lila Cockrell's term which expires in 1991.The replacement was necessary L 1

W when Mrs.Cockrell was re-elected as Mayorof San Antonloand assumed the '

i

(-

ex officio member position on the Ikurd. Mrssilernandez is owner and '

[

manager of kicai retall and w nolesale businesses.

y Pat Legan and Dr. Frank Ilryant were elected Chairman and Vice Chairman respectively in June 1989. Mr. Legan, elected to the ikurd in April 1987,is in,

a the third year of his first five-year term on the ik>ardil-le had served as Vice 3

Chairman since February 1988. Dr. Ilryant has been a membet; of be (kurd since March 1988.

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CPS M AN AGliMiiNT STAIi l

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- 1989 90 FINANCIAL STATEMENTS 1

i I

i i

?

ELECTRIC GENERATION & CAPACIT

/

i o.....no, mun. x wn, Capacity (WW);.

l BY FUEL TYPE' A..

[ ! 4' l' \\

la 5 _ '}

y 4000 s

l f

??

4 4

. -).l 10

.k

_q,

- 8000

\\ i g

0 (f

pa

~

>+ 2000 S

t,i".. '

Wh i

g

? ;~

4

), -,

S O

~

,. j p

• 1000 e

,,f,

'l i

! k r

O-

- 19 8 4 ~

test

,1086 togg

- 1990 -

FISCAL YEAR tassag Jeavery 4:

M c Asioit m eoAL-M NuctsAn

-I

't2

, )

T

),

i l;

,i

M AN AGEMENT REVIEW OF FIN ANCI AL l'ROGRESS DURING 1989 90 1een 1987 tese inee teso Cny Public Senice expenenced good growth in pas and electric sales and m grow

^

resenues when compared wnh the presimn thcal year filectnc sales reached a

('

y._

record at I l.7 bilhon kilowatt hours. up 6.5 percent from 1988-89 The mcrease

\\

in sales was due pnmanly to greater customer usage which rose 5.6 percent mer

'~

the pres iou, year Residenual electric sales chmhed 9 percent, while commercial and mdustnal sales mereased 3.5 percent.1he total electnc customers were up O.8 percent to 466.478 at year end.

l Gas sales mereused 15.1 percent f rom the presious year, pnmarily due to the cold I)evember weather, reachmg 27.7 milhon MCF. Gas customers increased nmumally and totaled 2M4,324 at year end.

l Grow resenues for the fiscal year totaled 5836.5 milhon, up 558 I milhon or 7.5

,.. sor" " 26 oos~~pa 64e 24 oi?~

27 ese Pe cm f rom the presima a pnneipally due to the mereined sales Electric f

GAS SALES (MILLION MOF) resenues of 56hl I nulhon increased 547 milhon or 7.4 percent, while gas j

1966 19er 1986 1989 1990 cost recosenes were more than off set by the resenue trom higher salet Intesest j

and other non-operatmp mcome dechned 3 9 percent to $34.8 tmlhon as funds asailable for mvestment dechoed.

The cost of f uel for elecint generation contmued to decline in fiscal year 1989 AM) l as lowersosi nuclear fuel prosided a greater portion of the sy stem's electncal l

needs. The South 'lexas Project nuclear plant (STPi prouded 22.8 percent of l

generation at a tuel cost of 45 cenh per mdhon llTlis compared u nh 7.8 percent of generanon the pres sous year. 'lhe f uel cost for generanon f rom STP a 77 percent lower than the cost of gavlueled generation and 6S percent lower than that l

generated from coal. Gavlueled electric generation was 16.4 percent lew than the

[..,.

presious year wlule electne generanon from coal was 6.3 percent lower than last I

to od i 10387 to 674 10 990 t i 703 sear. l)nenitication of the f uel inis resulted in an oserall fuel cost of 51.38 per ELECTFitC SALES (BILLION KWH)

MMitTl,u a decime ut 10.3 percent f rom the prevmus year.

Electnc and gas opera,mg expenses of 5400 9 million were 544.7 milhon or 12.5 percent higher than a year ago Non fuel costs awociated with the STP accounted for more than $17 nulhon of the mcrease as Umt I was m operanon for the tull l

year and l'mt 2 for nearly sesen and one-hall months Other mereases were due to wage and salary costs and benefits and to increased mamtenance cosh for electnc generating plants and the electnc dhtnhunon system Fuel, purchased power and resale pas costs declined 2 4 percent to 5223 nullion Reduction of 510 nulhon m electnc tuel costs and 52.5 nulhon in purchased power and STP test energy costs were partially ottset by an merease of 56.8 nulhon to supply the lx percent higher solume of gas needed for resale to gas customert Interest and I)eht Expense remamed relausely unchanged ior the year. however, the amount transf erred from operanons, through the allowance f or mterest used dunny wnstrucuon. declined dramancally as txdh umb of the nuclear plant were m I

operation The decime m mterest costs of 52.9 nulhon due to adsance refundmg

(

lugher mterest bonds was oliset by a 52.8 null.on increase m amortved debt expense and mterest on oubtandmg commercial paper 1)cpreciation espense mereased a sigmhcant 536.1 nulhon f rom last year, because of addinonal l

deprecianon to, twnh umts of SIP

)

2 i

l

,___m i

2 7

Construction experiditures of $295.1 million were $56 million less than the previous :p year as completion of STP Unit.2 resulted in decreased co.its of $187.8 million.

L Significa'nt expenditureiincurred for construction on the J.is.' Spruce Plant partly; offset the lower STP costs. This unit ' accounted for 58.9 percent'of total capital costs and increased $121.lLmillion over last year to total $173.8 million Tayexempt commer ial peer was used to pay for 37.7 percent of the capital program,.

. while 50.7 percent w as financed fri)m internally generated funds or funds provided for construction during prior years,:The balance of construction funding was, provided by litigation ictilement proceeds and customer contributions.-

As of January 31,' 1990,.LCPS assets reached nearly $4.5 billion,' an increase of -

5198.6 million or 4.6 percent. Utility plant ln service rose 18.1 percent from the i

= previous fiscal year to $3.8 billion,' as STP Unit 2 was placed in commercial.

operation during June. Revenue Borids outstanding totaled $2.6 billion and had an average interest rate of 7.09 percent which was lower than the 7,56 percent for

{

. last year, primarily due to advance refunding certain high interest bonds during the year.,

CPS advance refunded $397.2 million of previously issued bonds bearing interest rates of 8.6 pen ent to,11..$ percent.during November at an average interest rate -

of 7.35 percent. The refunding will save CPS customers more than $38 million' in interest cost' primarily during the next 14 years.

s During 1989, $102 million of tax exempt commerclal paper was issued,' bringing the -.

,l total outstanding;to $200 million.' in November, $100 million of commercial

~

a

. paper was refunded with the pmceeds of the Series 1989.B Bonds. The isiuance --

of an additional $25 million'during January brought thibalance'of tax exempt, commercial paper outstanding to $125 million,[with a' weighted average interest.

q rate of 5.82 percent at year end. CPS plans to use the balance of its authorized tax H

exempt commercial paper l supplemented with long term debt, to finance most'of' its capital requiremenis during 1990-91.

,j NM '

' $083.1

. #2 i

geni?

.tAAA 1 1

)

127 0'

[.126.6 -

~106.1i I IO'O 1986 ~

1987.

1988 1989 1990 -

TOTAL REVENUE (MILLIONS) i M ELECTHic REVENUE. E OAS REVENUE 1

3-1 y

.. - - -._----------l

E i BALANCE SHEETS J ANUARY 31,1990 AND 1989 '

- Notes 1990L 1989 ASSETS

~

. ls :bwwaruh) -

I UTILITY PLANT. at cost:..

1.8 -~

. $2.921.759 Elec tric,......................................,...

$3,495,763 :

Gas-..........-..........

.239,447 231.207 Ge ner al '. -.......,.............................,...

. 92,769; 89.166,

Construction work in progress..............................,..

279,642 586.197 '

Nuclear fuel, less accumulated amortitation of $16.030 in 1990 and $4,446 in 1989.

112,489 '

119.383 licld for future use '.. '..... -.,,................,......... :,

33,102

'31,877 Total utility plant........................ L... s.

4.253,212; 3,979.589:

1.ess - Accumulated depreciation...

r.

- 608,257.

522371 U t ilit y plant.' net,................. -....,............ c...

3,644.955 3.457.218 RESTRICTED CAS11 AND INVESTMENTS:

l.23.

llond reserve -

Old Series ilonds....................,..............

4 -

17,400 L 17,279 New Series 11onds.......,..........

4 191.221.

180,917 <

Improvements and Contingencies Fum!,............,,......,.,...

108,536 1$6,167,

Other,.........,...........................=....,.1 30.692 9.741.

Total restricted cash and investments..

..... =..........,.

347.849 364,104

- CURRENT ASSETS:

Cash, including temporary cash investments..,

1,2 63,538.

- 47,198 Customer accounts receivable, less allowance for doubtful accounts of $1,479 !

in 1990 and $1,335 in 1989..........,.......

4.........

'52,669 44,291 Other receivables..

8.9 45,727.

49,889 inventeries and supplies. at nverage cost -

46,371 37,406 Materials and supplies......,

Fuel stock..

21,321 28,983 Prepayments...,..........,,...

6.088 4.628

- Intal current assets.....

235,714 212395' LITIGATION SEITLEMENTS 13ENEFITS RECEIVAHLE...........

- 8,9 82.500 124.000 DEFERRED DEBITS AND OTilER.

-1 170,778 125.431-TOT 1L..

$4,481,7%.. $4.283.148 The acchmpanying notes are an integralpart of thesefinancial statements.

4.

E EQUITY AND LIABILITIES Notes

-1990-1989 (In thousands) -

p LONG TERM DEBT. Revenue improvement Bonds

3.4 t

1,

n O ld Series............ ' c,..... -.... ;......,...... -....

$. 74,560 85,505 -

1l

' Ne w Se ries.... c....... -.......... '............

2,443,155. 2,215,805-0

+

less - Unamortired discount on Ne'w Series Bonds..,..........:......

(154,094);

= (25.462)-

Net long. term debt,. -. -.............,. _.,......,......

2,363,621 2.275.848 EQUITY:

Appropriated retained earningsi

~3-t Bond Reserve -

Old Se ries Bonds.......,......., =.......... -.. -........

17,4001 17,279 New Series Bonds........... :..... i.

, 138,764.-

'128,460

= improvements and Contingencies Fund '.,.....

.-. r...

= 108,536 --

156.167 Total appropriated retained earnings........... '..............

.264,700' 301,906 d

Reinvested ea rnings.............................,......

1,409,694 1,320,719 -

l Total equity...

1,674,394-1.622,625' CURRENT LIABILITIES:

Current maturities of long term debt,.............,,

4 64,570 -

53,370.

Short. term debt.......

5 125,000 i

' 98.000 :

Accounts payable and accrued liabilities...........,.............

82,300 :

61.074 l Litigation settlement benefits payable to customers................. :...

.9 11,174 10,649 '

t Customer service deposits............,......

19.928 17,794' lbtal current liabilities...............,

-302.972 240.887'

]

~ DEFERRED CREDITS AND OTilER:

Customer advances for construction...............

10,861 13,234

. Other....

23,308 17.361 q

4..........,............,.

lbtal deferred credits and other.............

34,169-

30.595 1

4 LITIGATION SLTTLEMENT BENEFITS PAYABLE,....

9-48,042-59,083 i.

CONTRIBUTIONS IN AlD OF CONSTRUCTION,...

'l 58,598 54,110 COMMITMENTS AND CONTINGENCIES..

.3,6,8.9 i

i TOTAL,,,.

- $4,481,7%.$4.283.148 1

The acwmpanying notes are an integralpart of_thes. financial statements.

s I

'I I

'S j

~

t i

i STATEMENTS OF EARNINGS AND APPI,1 CATION OF EARNINGS; o

Years ended Jan.uary 31 Notes 1990 1989 LIn thousants) i REVENUE:.

I '

' $683.106 -- ' $636,086 1 Elec t rie...... c................................. -..

Gas.;..

=....s..-..................,'

.............(.

118,607 106,114 -

Interest and other income..

,,,......:.E.

34,773'-

36.191:

Gms s : re ve n ue ~......,,,... -.. -.,. $...,....,

XM,486-

= 778.391-EXPEkSES:

'l-Fuct, purchased power and resale gas............

..-..=. =..

223,008

_ 228.547 '

- Other operating and general...... '............. -.... - -....... -..

l37,423,

- 84.781-i Maintenance..........

c.

... c.

60,508 42.948 Depreciation !.......................

102,498,

. 66.397

= Interest and debt expense... =,..

-193,715 o

193.817-Allowance for interest'used during construction i....

, f (24,780) ;

'(88.008)

Payments to the City of San Antonio....,,....

..'.....i.

7 112.345 104.784

'{

'Ibtal expenses......... -....

.'._784,717,

= 633,266 t

......,.......... c.

i a

NET ' EARNINGS '...

51,769 f 145.125 -

....3 ADD:

i Depreciation.....

102,498-66,397 j

Accretion of capital appreciation bond di< count. ~..

%3 l

Amortiration of bond discount and refunding debt costs...

' -10,708 8,916 l

Interest requirements on New Series lionds (payable froni improvements and -

Contingencies Fund)..

168,675-172.023 AVAILAHLE FOR APPLICATION....

. $334.613

$392,461

- l.

APPLICATION:

1 To pay long-term debt requirements -

~

Old Series lionds:

^l Principal - payments,..............,.

$ 10J75 -

$1 9.905 -

[

B ond rese n e....................

-121

Ib reinvested earnings - Net gain on sale of assets........,...

90

133 j

'Ib improvements and Contingencles Fund:

Minimum requirement (12%% of gross revenue),.....

'3-104.561 97300 q

Balance of available net earnings.

... =,..

219,466 '

' 285.123 1

~ APPLICATION.

==2. -,3

$392.461 -

'I

$334.61 i

T e awwupanying notes are an integral art af thesefinancral statensenn i

1 r

1 l

i 6

4 a

4 6:

3-j.

.{

?,

E te m.

STATEMENTS OF CHANGES IN EQUITY

- Years ended January 31, 1990-1989

' ilOND RESERVE, OLD SERIES IlONDS:

vu shmaadd llalance, beginning of year.-.

17,279 5 17,279:

- Additium - Net occumulation of income not transferred.................,,,,.

.121' llulance, end of year....:. :

17.400 17,279 IlOND RESERVE. NEW SERIES BONDS:

!!alance, beginning of year.....,.,....................,, a......' $ - 128A60 - $ 130.180 L '

Additions -.- tramfer from improvements and Contis.aencies Fund for debt service.....=....

10,304 Deductions - trumfer to improvements and Contingencies Fund for debt service,,.....

7, 1,720 italance, end of year,,.,..,.... <,.....

4.......

.... $ = 138,764 ' c $ ' 128,460

. IMPROVEMENTS.AND CONTINGENCIES FUND:

Halance, beginning of yea r J,...,. : c.......,,,................... $ f 156,167

$ ! 140,078 -

Additiom - -

From application of carnings:

Minimum requirement (12'h% of gross revenue)...................., ;.,....

104,561-

-97.300

~ llalance of available net earnings.,,....

219,466 t

.285,123 :

Tramfer from lx,nd reserve, new series........

1.720-Total.'................,,.,,,..

480,194 524.221--

+

Deductiom -

.a New Series Bonds -

L!

Additions to reserve.,,......................................

10,304' 1

Payment of bond interest,

168.675 172.023' u

Payment nf bond principal,..

'42,995(

27.535 j

..................,,,,,.,,,, c....

Comtruction expenditures.......

149,684 :

,159.580 <

i Transfer to reinvested earnings for aniortization of bond discount and refunding debt costs...

j 8.916,

}

7btal.

371,658i

.i68,054 l

Balance, end of year..

$,,_108J)6 $ 156,1671

)

REINVESTED EARNINGS:

s

.i llalance, beginning of year...................,,,,

..... $ 1,320,719.. $ 1,189,%3.-

i Additions -

From improvements and Contingencies Fund -

For comtruction.

149,684 159,580 '

O For New Series 11onds principal payments......

42,995 27,535 For Bond discount and~ refund debt costs,..,,,,

3 8,916 f H

- From application of earnings -

Old Series Bonds prine _ipal payments...

~ 10,375-9,9051

, 1

.s.

Net gain on sale of assets.....,

- 90 z 133

)

'Ibtal

-203,144

' 206,069 Deductiom -

Depreciation.

, 102,498 66,397 Accretion of capital uppreciation bond discount.

963'

^

'Amortiration of b(md discount and refumii-debt costs.

10,708 8,916.

'Ibtal.

114,169 75,313 -

llalance. cnd of year..... -

a

..,, $ 1,409,69,4 $ 1,320,719 -

)

. The accrepanying notes are an bere,tralpart of thesefinancialstatement.t.

l 6

}

' gl a

j y

=1

STATEMENTS OF CASH FLOWS.

Years ended J:nuary 31, 1990 1989 IIn thawandu iCASH FLOWS FROM OPERATING ACTIVITIES:

Nei carnings.................1.

$ :,51,769 $ 145,125 Noncash items included in net earnings -

~ Allowance for interest used during. onstruction. a................ '.......

(24,780)

(88.008)

Depreciation expense....,

102,498

_66397 LAmortization expense -

De bt e x pens e..,,.......................................

8,819 7.567-Discount on long. term debt.......................... -.........

2,091 1.538 N uclea r fue !.................................. -.....

10,761 3.191 Accretion of capital appreciation lxmd discount...... -....'.................

963-0;in on sale of utility plant J......

'(90).

(133)

Changes in current assets and current liabilities <,,..,....................

16,881., ; (8,032) -

Proceeds from freight litigation settlement. c..

.'11,000:

10,5001 Refund of freight litigation settlement benefits payable to customers............

(10,516)-

(10.070)

Increae in other liabilities.. :.....,................... s.......,.

3.925 1302-Q Net cash provided by operating activities.,,.....

3....... :.4 173.321 129377-NET CASil FL.OWS FROM INVESTING ACrlVITIES:

' Proceeds from sale of utility plant.............. _...........,........

93' J138

'(273,375) '(265J99)'

)

Additions to utility plant...,......

Purchase of nuclear fuel.

(4,690)

(1.541 ).

Net cash used by investing activities..........,.

(277,9.72)- (266.802)

L l

1 CASil FLOWS FROM FINANCING ACTIVITIES:

Contributions in aid and customer advances for construction.............

3,%I

-3,465 Pro.ds from issuance of long team debt...............

v -157.940 S:le of refunding bonds...............

540,931 S le of commercial paper..,.......

127,000 '

~

= l Defeasance of bonds refunded..............,,....

(397,200)

Commercial paper refunded....................................

(100,000) l i Debt costs.......

(2,466F

-(632)

Excess of reacquisition amounts over principal of bonds refunded in advance..........

- (44,120) -

Principal payments on long. term debt.

(53,370):

(37,440).

Proceeds from STP litigation settlement........,....

430,000 30.000

?

Net cash provided by financing activities...............,...........

'104,736-

'153333 NET INCREASE IN CASil AND CASil EQUIVALENTS.

85 5 15,908-

[CASil, including temporary cash investments:

]

Beginning of year.......

. $ ' = 47,198 $ 37,687 l

End of year.......

63,538 47,198

,1 1

Net increase..........

~l6,340 -

9,511

}l o

~ RESTRICTED CASil AND INVESTMENTS:.............,

'I Beginning of year...,........,

364,104 >

357.707

.i End of yea r...............

347,849

3 % I04 f

^q

' Net increase (decrease).....

(16,255):

'6397 i

• a

NET INCREASE IN CASil AND CASil EQUIVALENTS,..

85 $'

15.908' q

The tccompanying notes are an integralpart of thesefinancial statenwntt

-)

t t

8, 9

6 h

{

}

....._s

NOTFS TO FINANCI Alo STATEMENTS - J ANUARY 31,1990 AND 1989 -

?

1,

SUMMARY

OF SIGNIFICANT ACCOUNTING' equipment for general and administrative purposes that l

POLICIES:

are used commonly in electric and gas operatiom.

1. "* E"

1. I

" "" "E

1. """ E ORGANIZATION - City Public Service (CPS), a mer the estimated service lives of the various classes of-

~

municipal utility owned by the C,ity of San Antonio (the depreciable property as determ.med by periodic engineer-Cityh provides electricity and natural gas to the San Antomo metropolitan area. As a municipal utility, CPS ing studies. Deprec,iation as a percentace of average.

is exempt from payment of income taxes, state franchise depreciable plant was 2.98 percent in l990 and 2.86~~

m in 1989.

and sales tases and teal and personal property taxes. Cl% -

provides certain payments and benefits to the City as Contributions in aid of con truction are amortired over a described more fully in Note 7.

period equal to the lives of the related assets.

IIASIS OF ACCOUNTING - The accounting records OTilER RESTRICTED CASil-These funds, which are of CPS are maintained in accordance with generally not generaHy-availabic for current operations, consist.

accepted accounting principles for rate regulated enter, primarilytf the current ponion of the New Series Bonds prises, as prescribed by the Financial Accounting Stan, sinking. fund, customer auistance pmgram funds and

-dards lloard (FASil) and, where applicable, the Govern, short term msestments from tax exempt commercial paper mental Accounting Standanh floard (GASil). The ac.

proceeds, counting records of CPS follow the Uniform System of INVESTMENTS - Investments are stated at cost which Acconnts for Gas and Electrie Utilities issued by the upproximates market value. The specific identification National Association of Regulatory Utility Commission.

method is used to determine cost in computing gain or l

ers. Certain prior period amounts have tw en reclassified less on sales of securities. Amortiration of premium and for comparatise purpmes, accretion of discount is recorded over the term of the.

FISCAL YEAR - The fiscal year ended January 31, investment.

1990, is referred to herein as 1990 and the year ended DEFERRED DElllTS AND OTilER - These amounts January 31.1989, as 1989.

consist primarily of the unamortired balances of bond REVENUES AND EXPENSES - Res enue is recognized issuance espenses and excess of reacquisition amounts as billed on a cycle basis. Rate schedules include fuel and over res enue Exmd principal amounts refunded in advance.

pas cost adjustment clauses that permit reemery of fuel Amortitation is recorded over the period of the outstanding and gas costs in the month incurred. CPS charges to londs.

~ _

expeme the cost of electric production fossil fueh in the NUCLEAR DECOMMISSIONING - CPS' portion of period that it is consumed and ti-cost of resale pas in the the estimated costs for decommissioning the STP nuclear.

i period of purchase, pow er plant is approximately $150 million in 1989 dollars, CPS amortires its share of nuclear fuel for the South Texas.

based upon an engineering study. This cost estimate will Project (STP) to fuel expense on a unit of production be reviewed and updated periodically and could change method. Under the Nuclear Waste Policy Act of 1982, the by a material amount. CPS will record the expense of l

Federal Government awumed responsibility for the deemnmissioning over the life of the STP nuclear power permanent disposal of spent nuclear fuel. CPS is charged plant. CPS will fund decommissioning requirements j

a fee for disposal of spent nuclear fuel, w hich is included thmugh an external trust, in accordance with the Nuclear 3

in fuel expense, in the amount of $.001 per Lilowatt hour Regulatory Commission's (NRC) regulations. A nuclear

-l (KWill for its share of electricity produced by STP, other decommissioning plan must be submitted to the NRC by i

than for precommercial power generation. For further July 1990.

j discussio,i regarding the STP, see Note 8.

STATEMEL OF CASil Fl.OWS - For purposes of UTILITY PLANT - These assets are stated at the cmt reporting cash flow s, CPS considers all highly liquid debt l

of construction, including costs of contracted services, instruments purchased with a maturity of approximately direct material and lalor, indirect costs, including general three months or less to be short term investments, engineering, labor and material merhead, and an allew.

Accordingly, CPS' temporary cash investments and ance for interest used during comtruction ( AIUDC). CPS restricted cash and investments are cash equivalents. No l

computes AIUDC using rates representing the cost of material nencash investing or financing transactions were borrowed funds on projects estimated to cost in excess of recorded during 1990 and 1989.

$1 million. Retirements of utility plant, together with in order to determine net cash pmvided by operating j

remmal cost less salvage, are charged to accumulated activities, net earnings have been adjusted by, among other

-1 depreciation. The maintenance of property, and replace-things, changes in current assets and current liabilities,

{

ments and renewals ofitems determined to be less than a excluding changen in cash and temporary cash invest.

j unit of property, are charged to maintenance expense.

ments, current maturities of long term debt, short term

]

General utility plant assets consist of land, buildings and debt and litigation settlements benefits receivable and 9

I

payable. Thee changes shown as an (increase) decrease (3) The following funds are established: (a) peneral in current awets and as an increase (decrease) m current fund, (b) impmvements and contingencies fund, (c) bond liabihties ate us follow v construction fund (cor/.aining the proceeds of revenue j

txmdu, (d) principal and imerest current requirements (containing the monthly payments of annual debt require-

• '*d" ments) and (e) txmd reserve fund (containing an amount ruum,, ma no rnmssir t A m i i n.2i:

equal to the next fiscal year's principal and interest oon, enmm w o# nowiu nsuunn.,,,e tepn-we a4in

,,uwn.cnn benern,,n en o,k.

requirements). These funds may be imested with author-in.<,m.in.na u.p>

io n m.m>

i/cd depmitory banks or in (LS. Government securities.

hepaym nn i l 460 i i 1.HM i e Beginning with the year ended January 31,1976, new An no.u p.,s.ie mi mn.co ti#,ia.n 2m am,

< ouan.r,.m., e.k.r n uu un series electric and gas systems revenue improvement hands n.nm m.one,o.. cw.na umm i.s.a..

5 imi s qin2, (New Series llonds) were issued These bonds are junior

/

.the Iollow my provides information related to cash intetest and subordmate to the Old Series Bonds.1he bond paid by (,PS f.or the years mdicated ordmances authorizing these inues provide that no further tumds or obhgatiom will be authon./ed or tuued under go 19w the terna of the trust indenture for Old Series llonds.

ria h'"

While any of the Old Series llends are outstandmg, the j

imucu n, cia An m s ne no s vt "4 New Senes Bonds are payable solely from the net revenues of the systems (1) deposited and available for deposit in j

2.

CASil.TEMpOR ARY CASillNVESTMEN1S AND

'_he improvements and contingencies fund und (2) from lunds payable to the City. At such time as the trust INVESTMEN'I S:

mdenture covering the Old Series Bonds becomes CPS depmus at January 31,1990 and 1989, were enurely moperatise. resenues will be applied as followt (a) for collaterahied by banks for the account of CPS. I;ully maintenance and operating expenses of the systems, (b) collateralized cash was 53.H nothon at Januar) 31,1990.

for payments of the New Series Bonds (c) for the payment CPS' msessments, meludmg both restricted and unre.

of any obhgations mferior in hen to the New Series Bonds atricted at January 31,1990 and 19H9, weie all m thS.

w hich may be iwued, (d) for an amount equal to 6 percent Treasury secunnes and were held for the account of cps of the grow resenues of the systems to be deposited in a l

at us general depmitory bank CPS' msestments are repair and replacement fund, (e) for cash payments and j

renerally Imoted to lLS Government or t hS. Gmernment benefits to the Cuy not to eseced 14 percem of the grms guaranteed ohhganom. Imestments in thS. Government resenues of the systems and (f) any remaming revenues j

or iLS Government guaranteed obhgattom, meludmg to the repair and replacement fund. The New Series Bonds restncted amounts of $343.2 nnthon, were $4016 milhon ordmances require that a tend reserse fund at least equal l

with a market s ahte of 5410.4 nuthou at January 31.1990 to the aserage annual prmeipal and interest requirements of all outstandmg New Series Bonds be estabhshed.

t R EVI!N t 'E BON D IN DEN 1'llRE R EQlilR EM ENTS:

As of January 31, 1990, lund reserve requirements for the Old Series Bonds and New Senes Bonds have been

.lhe trmt indenture esecuted by the Cay m conjuncnon w Hh the swuance of the resenue honds dated February i, 1951, through August 1,

1974 (Old Series Bondo, contaim, among others, the following provntons:

DEB 1 l

tl) All of the awets of the pas and electne systenw, A summar) of long-term debt is as follows-.

together wah the net resenue3 of the systenn, as dehned.

l are pledged with the Harns Trust and Savmps Bank of

""8'"*"^'"""

Chicago, Ilknon. as Corporate Trustee, to secure the i h1 I)uhiamtmg Linu,n) u paymCnt of the Ghl Senes Bonds gg g4y (2) Grow resenues of the pas and electnc systems 3" " 3 "" _._ ".*_.._

i

~

((#d shall be apphed to: (a) eyrnses of operatmp and gy py, g

y.

maintanung the systems, ih> debt service and reserve w s<ne, requirements on the Old Senes Bonds. (c) payment of an N"2*

7 i"*

14*

• 2N*

'm heu of tas' amount to the Cuy. (d) an amount equal

"((,' [,l "

gy,

gg to 12'/2 percent of gross revenues to the imprmements

~

i ym men mg and conungencies fund. ten addmonal benefits and t es, cuntm manne, M 3?o s i i7o payment.s to the Cuy to hnnp Cn> benefus and payments I "ar ic"*'i 52 " 5 L 2 "*

to 14 percent of pow resenues. (f) additional payments f

to the unprovernents and contmgent ses fund until such fund equals 20 perc.ent of the s alue of hsed capital awets and (g) the balance to a surplus f und l

10 iv

1 Principal due (in thousands) for the next five years are:

percent and which had an average life outstanding of

%,.i me apprmimately 65 days as of March 9,1990. All proceeds u%

% s,,7 hase been, or will be, used for construction purposet w

tw, sua w

The TECP n equally and ratably payable f rom and is iwi m so s i e,s o.: m secured by (i) the pioceeds from (a) the sale of the bonds nm nw smo e,e "

issued for such pur;xwe and (b) the sale of project notes

]

swued ppmni to Ons ordinance: (ii) borrowings under iws um aw now the credit apreement; (iii) the amounts held in the TECP note payment and the construction accounts until Dunng Nith 1990 and poor years, CPS refunded amounts deposited therein are used for authorized previously iuued and outstanding New Series lionds purposes; provided, howeser. that amounts in the TECP through the issuance of New Senes Revenue Refundmg note payment account attributable to and derived from Honds. The refunded Nmd iuues and trust accounts are Nmowmps under and pursuant to the agreement are not mcluded in CPS financial statements, At January 31, pledged to, and shall be used to pay. the principal of, 1990, portions of the Nmds which hase been defeased premmm, if any, and imerest on the project notes and (iv) m substance were still outstanding as follows:

the net revenues of the Systems, such pledge of net res enues, however, being subordinate to the pledge thereof Fiscal year 1986 refunding 5 97,130,000 secunng the payment of Sy stems revenue pnority Fiscal year 1987 ref undmg 253350fXK) obliganons. Such pledgc on net resenuo is subordmate Escal year 19xx refundmg 280,H45 jKl0 and infenor to the pledge securing payment of the Old e

Hm the New bo Bona and any New Senes hscal year 1990 tefunding 397,200JK N1 Bonds to be issued in the future. The City has cosenanted i

in the note ordmance to maintain at all times credit facilities l

On Noumber 14, 1989, the City sold approsimatel) ed wWd p We available Nirrowings sufficient to 5576,559J K K) of the City of San Antomo Texas Electoc pay the principal of the TI CP. Unless and until the credit and Gas Systems Resenue Relundmg Honds, New Series agreernem is amended or a new credit agretment is entered 1989, 1989 A and 1989B tRehmdmp Honda The into which would allow CPS to borrow in escess of 5200 Retundmg Honds were issued to pnwide money suff cient nsom CPS may not have outstanding more than 5200 to ref und certam outstandmg New Serio Bonds, to pay nullion commercial paper Any borrowings under the 5100JK)OJMK) of commercial paper maturmp m less than creda agreement are equally and ratably secured by and 90 days follow mg the dehsery of the Relundmg Hond' payable from the aNwe-desenbed sources pledged for and to pay the costs and espenso related to the issuance p

em of dw TECP. There base been no borrowings of the Ref undmg Bonds.

under the credit agreement as of January 31,1990.

The 1989 New Senes Ref undmg Honds included a par s alue of $164,945,tKK) in Capital Apprecianon Honds n PENSION Pl AN:

(CABi issued at a $101,616JNNI discount. resultmg m CPS has a self administered, defined benefit contnhutor) proceeds of 561,329JNio The CAHs debt sen ice pension plan (Plan) cosering substantially all employees reqmrements occur dunng the yean 2002 through 2005, who hae completed one year of service. Participating at w hich time, the par s alue t sales pnce plus accreted employees contribute 5 percent of their base pay and are dneouno will be due' normaHy tully sested in CPS' contnbunon after complet-5.

SilORT TERM DEB ~l:

> #"" "I #

"""I '#N"'*## " "F#

65. honeser, early retirement is asailable with 25 years in Nosember 19S3, the Cuy Council of San Antomo, of benent senice. Rehrement benefits are based on length Tesas (City Councih, authon/ed the issuance of $100 of senice and compensanon, and benefits are reduced for milhon in TaoEsempi Commercial Paper (TECP) to assnt retirement before age 55.

in the financmg of chgible projec t s.

mcluding fuel Tk total employer and employee pendon cost (au acquisition and capitalimprovements to the utihty sy stein' f unded), w hich includes amorti/ation of pasteen ice costs (the Systemst On October 20 195X. the Cny Council oser 10 years usmg the unit credit cost actuanal method, adopted an ordmance to estend and broaden the Conuner-is summan/ed as foHows:

cial Paper Program m an amount up to 53(K) million of outstandmp TECP at any one tune The prog ram 's scheduled masimum matunnes u 11 not estend beyond

• f *~e Nosember I, 2028. As of January 31,1990, 's125 nulhon uc,,m o,mnsm.

s 4 ms s imis s n.

in prmeipal amount was outstandmg. with a weighted-Ws u=Na*

OU

' l e" average interet rate of apprositnalel) 5.M2 percent altd I I I

I an average life outstanding of approsnnatels 82 das s. In

' -w r-o s Cu s cNs MM4 March 1990 CPS sold $50 milhon in TECP which had a i* w.m s im m s

'o m s y weighted average interest rate of approsimately 5 73

~

lI

1 G ASil Statement No. 5, ef fective for years tegmmng after 7,

1%YN1ENTS 'IO Tile CITY:

December 19K6, requires that a pensmo benefit obligation The trust indenture prosides for benefits and seruces be measured usinF the actuarial present value of credited totalmg 14 percent of CPS gross revenues, as defined, to projected benefih. as adjusted for projected salar) be paid or provided to the City. Payments to the City for increases. Th6 measure is mdependent of the f undmg 1990 and 989, based on allow able resenues, were as method used to deternune contribuuons to the Piem twiigw y q

howeser, the significant actuarial assumptions used to

)

imo im compute the contribution requirement are the same as those y,, %,,,

used to compute the pension benefit obhgation. The iis i w,%

5 n.w s vm ac t ua nal s aluation and Ihe actua nally determmed contribu-Rouna y, mi cie, m, me, i?.ow is. 29 tion f equirement as of December 31,1989, were computed

"""*d'"*)"**'

"24 M

j 5 ' 2" **T l

usmg an assumed rate of return of M.5 percent and projected salary mereases useragmg 6.5 percent As a result, under TH TNS PMM M't UASil No 5, the following represents CPS pensmn benefit obhgation on thousands) as of Decen.ber 31,1989 CPS n one el four participants m the STP, which consists l

198h and 1987:

of t w o-1,250 megaw att nuclear generating units in N1atagorda County, Texat The other participants in the f

im em W

project are Houston Lightmg & Power Company (llL&P),

j n$,Ir$,Ni[

the project manager, Central Power and Light Company s eu s wsuw s o. w g, norm, ICPla and the City of Austm ( Austm). Under the terms i mpio,c w emel" of the STP Participation Agreement, each participant

(

iI i$.I,b$b<a prmides fundmg for its share of construction and opeiating

(

w,,ci,a 2m

" na 2s m expenditurev Full power operating heenses were nsued j

bs the Nuclear Rgulators Commission (NRC) on Niarch l

im.c pen

.n imn, om,gn m 2 e~m 2si m "m

22, 1988, for Umt I and N1 arch 2S,1959, for Unit 2.

l s,c.,,m um u s.m wnoin information relaine to CPS' 28 percent ownership in the l(

w so, m. w un +

2m em ire ni m os STP m hum 31,19% n m Mm m t%mM tmu.arapen,- w ea,,Nig e s m s n sm s N sta i m,,, gm m

,,,m g m ;is i

bumidatea kThN8dt*

i

'I 2 U l

()l the anioufits c(ndtlbuted during )eaIs !NI, !W and 198M, approsiinatel) blO d IDilbon, bNM Inl!!lon and b4

< mum nm e n m pingen s

W nulhon. re pectnely, w as tunded each year to cover riormal costs of the Plan The remalmnf ConInbution In j'

each year w as tunded to coser the amortuation of the gg g

( m,,

w im untunded actuanal accrued liabilil)

On January 7,1988, HL&P filed pleadmgs against CPS, Poor to (; ^ S %. 5. CPS. reported the Plan status as the CPL and its parent compans, Csentral and S,outh W,est actur ial peesent s alue W. rumulated ;;an henefits Under C

on WSW), m the State District Court m such method. the actuarial present s alues at accumulated

&C Ss

& Wd N hP mW plan benefits usmg an assumed rate of return of M.5 percent these parties m the Dallas County District Court in which w as $177 KO4JKMi at Detember 31, 1988. At that nme.

litigation by Austin against HL&l, was pendmp, seekmg net assets asadable for plan benefits were 5167.954,t x M) m CPS d CPWSW W@ s k Mn at f air market salue As of December Tl. 1989 the htigation as third party defendantt.t he causes of action actuanal present salue of accumulated plan benefits was M by MP ww CPS ad CPWSW m 519h 145JXW) Thn 5 alue compares to the net assei s alue of5'01,601JMX) as reported ahme IN in M e MP dsd hin claims based on breach of. contract, meloding mistnang i mployees that retired prior to 19X3 are reteis mg annuu) ment, in connection with HL&P's performance o project payrnents from an msurance turner as well as retemnF manager, but asserted that it is entuled to mdemmty and some benetits directly t m CPS. These meremental costs contribution f rom CPS and cpl /CSW to the extent any for 1999 and 1989 w ere 5694JXWi nd $6993NHL habihty n imposed on HL&P for these or AustmN other

(

respecmely, and were retorded wh dd. CPS liso claims m the Dallas litigation, which include traudulent

{

prosides cenain health care and hte inst.. ice benehts f or inducement and breach of ohhgation by HL&P as project retued employeet CPS employees ate eligible for these

manager, benefits upon retirement from CPS The cost of retiree health care and life msurance benefits funded by CPS and in N1 arch 1988, CPS and cpl. made a call for bmdmp arbitratien and desienated arbitrators, under the tenns of rented employee contribunons. n recognved as an expense of CPS as employer contributions are made to the me STP Participation Agreemem. concerning their dn-wuh HMP oar Me STP meludmg any breach of programs. These costs approumated 51,071 JM)O and

@l e

HMP, and have requested that any 5x81J0) for 1990 and 19S9, respectnely 12 l

l

._i

t:.1:

1: :

proceedings on HLAP's pleadings against CPS tad CPL '

incident i3 any one y:ar. CPS and cach of the other' he stayed pending the arbitration. The arbitration call, participants of STP are subjeci ta such assessments. which which is binding on the participants and should supersede CPS and the other participants huve agreed will be borne filAP's district court actions apinst CPL and CPS, on the basis of their respectise ownership interots in asserts issues concerning (1) the estent to which lilAP STP, For purposes of these assessments, STP has two has breached its obligations under the Participation licensed reactors. The participants have purchased the Agreement and the amoum of damages caused by such maximum limits of nucicar liability insurance, as required breach and (h that neither CPS nor CPL is liable to by law, and have cAccuted indemnification agreements llLAP for any portion of the damages alleged against,

with the NRC, in accordance with the financial protection llLAP by Austin. CPS has filed a pleading in the Dallas requirements of the Price-Anderson Act.NRC regulations County case denying lil4P's allegatiom, seeking an require licensen of nuclear power plants to obtain on. site.

order compelling arbitration and subject thereto, urging a property damage insurance in a m'aimum amount of $1.06 -

counterclaim for damages. Trial of Austin's claims in billion. NRC regulations also, require that the' proceeds Dallas resulted in a jury verdict on July $,1989, Onding _

from this insurance be used Grst to emure that the licemed that, although illAP failed to supply the partierpants with reactor is in a safe and stable condition so as to prevent information as and when required by' the Participation any significant risk to the public health or safety,'and then Agreement, no costs were incurred in the construction of to complete any decontamination operations that 'may be.

STP due to that breach, which in reasonable probability, ordered by the NRC, Any funds remaining would then would not have been otherwise incurred! Austin has be available for emering direct Imses to property, appealed the adversejudgment, and that ap; walls pending.

The participants of STP currently maintain on site property

(

in the meantime, both lilAP and Austin named arbitrators damage insurance in the amount of $1.585 billion, which

.in the CPS /CPt. arbitration, and CPS has filed a Motion

. amount is less than the total amount of such imurance to Compel Arbitration of its claims before a panel of currently available to cover such losses but more than arbitrators named by it CPL and tilAP,' ilL&P has required by NRC regulatiom, responded by raising issues necking to avoid arattation.

narrow the issues or change the panel of arbitrators in the 9 COMMITMENTS AND CONTINGENCIES:

arbitration sought by CPS and CPL, and has filed a motion in December 1986, CPS approved a settlement offer from "

for summary judgment lased on the results of the Austin railroads involved in disputed issues about the proper and litigation. CPS cannot predict how these issues will be lawful freight rates. As a result, CPS received a $11.0 resolved, the forum in which its claims will be determined million pay..it from the railmads in January 1990, and or the outcome of these actions but does not believe there a $10.5 million payment in January 1989. CPS will receive -

is any basis for liability to it!AP for Austin's claims or additional annual payments ranging from 511.5 to 513.0 otherwise, in the opinion of management of CPS, the

- million, totaling 549.0 million, over the next four > cars outcome of such proceedings will not have a material from the railroads, which is expected to le returned to adverse effect on the financial position or results of cu tomers as payments are received. The amounts due in operatiom of CPS.

1991 have been recorded as current other receivables with in December 1985, a suit involving the STP was settled the remaining amounts due recorded as litigation settle-on the agreement of Brown & Root, the former ments benefits receivable, architect / engineer and constructor for the STP, to pay the plaintiffs. CPS and the other participants,5750 million.

OTilER ~

CPS commenced receipt of its 5210 million share of the CPS is involved in various other legal proceedings related settlement in January 1986, of which 57$ million was to alleged personal and property damages, breach of j

outstanding at January 31,1990 Quarterly imtallments, contract, environmental matters, condemnation appeals without interest, in the amount of 57.5 million are remitted and discrimination cases. In the opinion of management to CPS pursuant to an unqualified contractual obligation

. of CPS, the outcome of such procudings will not have a

- of Aetna Lifc Insurance Comp.my. Payments expceted to material adverse effect on the financial position or results be received during 1991 have been recorded as current of operations of CPS.

other receivables with the remaining expected payments Purchase and construction commitments amounted to recorded as litigation settlements benents receivable, approximately $1.213 billion at January 31 1990. This

. The-Price-Anderson Act, a comprehen.,ive statutory amount includes approximately 5599 million for varmus arrangement providing limitatiom on nuclear liability and -

gas purchase contracts,562 million for the purchase of governmental indemnities, is in efferA otil August 1, coal over the next five years and $294 million for railroad 2002. The limit of !iability under the Price Anderson Act '

services for hauling coal. Also included is $250 million for licensees of nuclear power plants is 57.807 billion se for the balance still owing on a turnkey contract for the incident. The_ maximum amount that each licensee may comtruction of a new 500 megawatt coal fired electric j

be assessed following a nuclear incident at any imured generating plant to be completed by the summer of 1992.

l facility is $66.15 million for each licensed reactor, but All permits for comtruction of the plant has e been ehtained not more than 510 million per reactor for each nuclear and construction has begun.

I

'l 13

,1 t

10. SEGMENT INFORM ATION:

1990

'1989 Electric Gas 70tal Electric Gas Ibtal (In rhouwuh)

(In rhousands)

REVENUE,

,..............5 683.106 S t 18.607 5 801.713 5 636.0h6 5106.114 5 742.200 EXPEN5ES -

- Operating and inaintenance espemes..

315,754 85.185 4(K),939 279.954' 76322 356.276 Depreciation...............

95.545 6.953 102.498

_ 59,906 6.491 66397 Total................

411.299 92.138 503.437

, '339.860 82.813 422,673 OPERATING INCOME......

,. 5_271 ko7

_5 2 _6.469_

298.276 5,,296 _,226 5 233.01 319.527 Interest and other incorne..........

34.773 36,191 Net interest and debt espeme and payments to the City of San Antonio..

281.280 210.593 NET EARNINGS,.........

5 51.769 5 145.12,5

===__=m CAPITAL. EXPENDITURES,..... 5 280.213 5 14.926 5 295 G9 5 328.305 5 22.817 5 351.122

--a am

= =un.u m muu:==m w

UTil.lTY ASSETS............ 53.956.613 5245.541 54,202,154 53.455,647 5241.304 53.6 %.951 CONSTRUCTION WORK IN PROGRESS 268.963 10.679 279.642 579.815 6382 586.197 TOTAL. ASSETS.......... 54.225.576 5256.220 54.481.796 54.035.462 5247.686 54.283.148 REPORT OF INI)EPENDENT PUHLIC ACCOUNTANTS

'Ib the lloard of Trustees of City Public Service:

1 We have audited ths.sompanying balance sheet of City alout whether the' financial statements are free of material Public Service as of January 31, 1990, and the related miutatement. An audit includes examining, on a test basis.-

statements of carnings and application of earnings, changes evidence supporting the amounts and ' disclosures in the in cquity and cash flowa lor the year then emled. These financial statements. An audit also includes auessing the

- financial statements are the responsibility of the management accounting principles used and significant estimates made of City Public Service. Our respomibility is to exprew an by manapenmnt, as well as evaluating the metall financial opinion on these financial statements based on our audit %e statement presentation. We believe that our audit provides a financial statements of City Public Service as of January 31, reasonable h. sis fra out opinion.

t 1989, were audited solely by Arthur Andersen & Co. whme report dated March 13. 1989, expreued an unqualified in our opinion, the fmancial catenwnts refermi to above opinion on those statements.

pitscot fairly, in all material res;wett the financial ysition.

We conducted our audit in accordance with penerally of City Pubhc Service as of Januury 31,1990, and the results acc:pted auditing standards. Those standards require thar of M opertuarw and its cash Dows for the year ther, ended we plan and perform the audit to obtain reasonable assurance in conformity with pnerally accep:cd acwunting principles.

I F/A d.

M.

R E

i i

San Antonio. Texas March 9,1990

t k

Years ended January 31 FIVE.YEAlt FINANCIAL EEVIEW 19e0' 19N9 1988

~~7 1986 i

""**"*'M REVENUE AND APPLICATION Revenues:

Electric sales.........

$ 683.106.

5 636.086 5 626.726 5 639.626 5 700371

.i Gas sales...,...............

-118,607 106.114 126,581 127,814 136.500 Interest and other income......

34,773 36.191 35.450 36,778 31.962 Total revenues.,............

5_85486

5. 778)9J.

5 -791,7.57 5,8N,218 5_8 MAL 33 Revenues applied:

Cost of operating systems:

Fuel purchased power and resale pas....

5 223,008, 5 228,547 5 284,0l9 5 316,251 5 397,414 Other operating and general expenses *,..

117,423 84,781 69.302 67,479 63,773 M:intenance............. '...

50,508 42,948 36.025 32,761 33379

' Total.... :.......

5' 400,939 5 356.276 5 389346 5 416.491

$ 494,566 Operating fund.........

0 5 '

5 0-5 5 2.500 Debt requirements for Old Series lionds:

.a Interest 5,937 5

6,454 5'

6,954 5

7,426 7,875 Principal requirements...........

10,375 9.905

' 9,435 9,(XXI.

8,600 Reserve requirements............

121 0

.(74)

(84 ).

(46)'

Il 12 14 12 12 Debt expense....

Total................,,.. =,

16,444-5 16371 5

16329' 16356 5

16.441 Paments and services to City:

Payment in lieu of taxes....,,...,.

(1,0$0 9,891 5

8.946 5

7,799

~ 7,096 Refunds for services.....

17,059 16.255 15,656 15,286 171X)9 Additional payment.............

84,236 78,638 75.044 73.106 79,867 Total,,,..

$ 112 345 5 IN.784 5 99.646 5 96.191 5 103.97' Debt requirements for New Series ilonds/Other:

Interest expense,

$ 168,675

.5 172,023 5 162,143

$ 153.411 5 135,235 Principal requirements..

42,995 27,535 25385 23350 21,440 Reserve requirements 10,304 (I,720 )

8.852 20.112 11,503 Debt expense.....

110 9.N9 8.956

$.178 1,867 Other interest *.....

7,310 6,279 5.619 1,519 1,262

'Ibtal..,,..............,

$ 229,394 5 213,166 5 210.955 5 203,570-5 1713 07

^

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

(24,780)

(88.008 )

(107,025)

(101.402 )

(87,296)

Additions to plant:

'Ibtal expenditures for year,,,,....

$ 295,139

$ 351,122 5 '408,852 -

5 430.610

$ 435,060 Less construction funds provided by sources other than ivvenues.

145,365 191,409 234,985 315,451 261,235 Revenues used for additions to plant..,,

5. 149,774 5 159,713 5 173,867

$ l15,159 5 173,825 Addition to improvements and Contingencies fund,,,..

$ (47,631) 16.089 8.639 57,853 t6.482)

Total......

$ 102,143 5 175,802 5 182.506

$ 173.012 -

5 167343 i

Total revenues al plied...

$ _836,486_

5 778,391

$ _791,757 5 8N,218 5 868,833 E MANCE SilEET DATA thiliry plant al cost..

54,253,212 53,979.589 53.646.858 53,255,479 52.838,847

' Annual construction additions...

295,139 351,122 408,852 430,610 435,060 Accumulated depreciation...

608,257 522,371 473.275 446,913 418.743 Annual depreciation allowance,,.

102,498 66,397 44/>09 41.811 40,351 q~~

Principal and interest coverage.....,,

1.91s 1.95x 1,97x 2.0l x 2.16x

'* Frufucalysars vntascJ to segrrgare other unn w.

~ FIDYEAR OPERATIONS REVIEW Years ended January 31, 1990 1989 1988 1987 1986 sla thnuwmio OPERATING REVENUES Electric:

Residential......

$ 311,104

$ 283355

$ 271302 5 276,307

$ 292,216 Commercial and industrial.........

268,738 256,794 254.156 266.747 295.158 Street lighting........

9,0!E 8,459 -

8,049 -

7,781 8,241 Public authonties.............

79,53N.

75.259 73319' 71,073 80.007 Other utilities....,,..........

9,133 7.572 14.795 13.982 20,638 -

hiiscellaneous....

5,578 4.647 5 (K)$

3.736 4.111 lbtal electrie...............

$ 683,106

. $ 636,086 5 626,726 5 639,626

$ 700371:

Gas:

Residential

$. 73,330

$. 63,858

$ 76,060

$ 75,091 S. 79346 Commercial and industrial..

37,112 34,662 41,375 44357 47,957 Public authorities...........,,.

7,367 6,746 8.185 -

7,442 8.153 hiiscellaneous....,,,,.....,.

798 848 961 924 1.044 Total gas................

$ 11N,607

$ 106.114 5 126,581

$ 127,814

$ 136,500 SALES (000 OhtlTTED)

Electric - KWil:

Residential............,,,,.

.4,732,736 4,343,500 4,141,93b 4,036,562

- 3.782.693 Commercial and industrial.........

5,001.737 4,833,460 4/45,938 4.636308-4,465,682-Street lighting...........

82,791 81,257,

79.548

'78,732

. 78,445 Public authorities..............

1,646,668 1.551.533 1,468.775 1,358,027 1300,515 Other utilities......,,........

_ 238,741 179.981 237,855 257.848-413381 lbtal..,............

11,702,673 10.989,731 10.574.054 10367,477 10.040,716 G a - htCF:

Residential 15,237 12,949 14,846 13,576 14332 Commercial and industrial.

10,291 9.240 9,814 9,770 10,206 Public authorities 2,131 1.838 1,988 1,657 1.764 Total...................

27,659 24.027 26,648 25.003 26302 PURCilASE FOR RESALE:

Electric (1.(XX)) KWil.............

3,986 18.148 15,039 398,401

-0 1

Gu (1,(KXI) h1CF..............

28,286 23,968 27,127 25,701 26.040 1

ELEC1RIC GENERATION -

( 1,000) K Wil'..........,,...

12,420.044 11,677,624 11,213.230 10,617,859 10/d17,972 Electric Gen. Capacity, KW (Gas)",,,.

2,400,000 2,400,(XXI 2,400,000 2,400,(XX) 2,400,000 Electric Gen. Capacity, KW (Coal)....

836,000 836,000 836,000 836,(XX) 836.000 Electric Gen. Capacity, KW (Nuclear)..,

700,000 350,(XX)

ELECTRIC PEAK DEhtAND - KW..,,

2,697,000 2J,64,000 2,551,0(X) 2,596,(XX) 2,350,000 NUh1BER OF CUSTOh1ERS:

Electrie 466,478 462.849 459,766

-458,037 446.573 Ga,....,,.

284.324 284.130 284.122 285.697 284.876 ~

RESIDENTIAL AVERAGES:

l Electric:

.{

Res enue per customer,,

$ 758.65 696.61 5

67135

$ 692.51

$ 765.21 KWil per customer.............

11,541 10.678 10,246 10,117 9,906 Revenue per KWil....

6.57v 6.52e 6.55e 6.84e 7,73e

'l Gas:

l Revenue per customer.

$ 277.94 5

242.46 28833 284.45

$ 303.34 i

h1CF per customer 57.8 49.2 56 3 51.4 54.8 Revenue per h1CF..........

4.81 5

4.93 5.12 5

5.53 5.54

' 1989 und IVuo include lest I.nergs of 290,%24 wul 149.V72 remetthrtr.

• • I Oilratingfor the gas units Lt 2,19MKlo KWfw theJhe year twrked

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PHOTOS 4

,. ;. "To

,1

.0; Page 2..

The J.K. Spruce ' Power Plant under construction.

Page 6.

Lineman Gary Conaway works -

near the I:olanical Center Con-4 servatory,

, 7 i

y o,.

- Page 9

' a -l."

!'i4 lelephone Contact Representa.

T tire frene Jaramillo with Crrstal Olley, a resident of the Ali$sion -

x Road Developmental Center, at the San Jose Alission.

Page10

- n- ;

Afeter Reading investigator Alci Villafranco at the San Antonio Riverwalk.

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.1 CityPutsc Semice P.O. ItOX 1771. SAN ANTONIO, TEXAS 782%

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