ML20050B205
| ML20050B205 | |
| Person / Time | |
|---|---|
| Site: | Summer  |
| Issue date: | 03/25/1982 |
| From: | SOUTH CAROLINA ELECTRIC & GAS CO. |
| To: | |
| Shared Package | |
| ML20050B196 | List: |
| References | |
| NUDOCS 8204050096 | |
| Download: ML20050B205 (51) | |
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Financial Stc+ements antee l
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1 5
Auditors' Opinion August 28,1981 The Advisory Board and Board of Directors South Carolina Public Service Authority Columbia, South Caro!!na We have made joint examinations of the balance sheets of the South Carolina Public Service Authority at June 30,1981 and 1980, and the related statements of reinvested earnings, accumulated earnings reinvested in the business and changes in financial position for the years then ended. Our joint examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the above mentioned financial statements examined jointly by us present fairly the financial position of the South Carolina Public Service Authority at June 30,1981 and 1980, and the results of its operations and the changes in its '5ncial position for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis.
.O.Qy...Vk J. W. Hunt and Company Columbia, South Carolina aY Coo ers & Lybrand Atlanta, Georgia 1
Balance Sheets June 30,1981 and 1980 antee Cooper
= =r AuYMORTY 1981 1980 Assets Utility Plant - At Cost (Note 1):
Electric plant in service
$ 703,271.968
$ 679,121,568 Construction work in progress 615,301,455 369,348,S56 Total 1,318.573,423 1,044,470,124 132,401,145 112,541,568 Less accumulated depreciation Electric plant - net 1,186,172,278 931,928,556 Nuclear fuel (Note 3) 18,152,742 18,699,741 Utility plant - net 1,204,325,020 950,628,297 Other Physical Property (Net of Accumulated Depreciation) 446,889 460,073 Unexpended Funds from Sale of Electric System Expansion Revenue Bonds (Note 2) 157,556,248 148,300,048 Debt Service and Other Special Funds (Note 2) 247,359,232 163,067,305 Current Assets:
Cash and securities:
Held by trustee 10,736,424 8.155,645 Other 2,709,016 7,726,502 Accounts receivable 29,945,276 15,790,976 Accrued interest receivable 1.538,544 398,753 Inventories, at average cos+:
Fuel (coal and oil) 32,251,003 24,232,534 Materials and supplies 3,407.847 3,061,678 Other 599,618 450,587 Total current assets 81,187,728 59,816,675 Deferred Debits:
Unamortized debt expense (Note 1) 11,634,937 3,697,726 Unamortized loss on reacquired debt (Note 1) 9,594,766 9,973,043 Other 339,226 484,016 Tetal deferred debits 21,568,929 14,154,785 Total
$1.712,444,046
$1,336,427,183 I% accer:p:r ymq t;&5 CTV C3 LT;h%!U! Dirt C$ the bnL1DCit1I S?']??!"6D?S-2
Liabilities 1981 1980 Long-Term Debt (Note 4):
Priority obligations S 70,594.343
$ 72,072,356 Electr': System Expansion Revenue Bonds 1,192,285,000 919,890,000 Electric Revenue Notes 75,000,000 Capitalized lease obligations 87,930,536 86,077,282 Bank credit agreement 50,000,000 S0,000,000 Other 225,000 300,000 Totallong term debt 1,476,034,879 1,128,339,638 Less:
Reacquired debt 320,000 Unamortized debt discount and premium - net 21.070,747 15,466,791 Long-term debt - net 1,454,644.132 1,112,872,847 Accrued Interest on Long-Term Debt 36,531,682 29,387,048 Construction Fund Liabilities - Accounts Payable 17,178,485 20,448,863 Current Liabilities:
Accounts Payable 23,609,256 13,284,925 Customer deposits 2,614,965 2,417,646 Accrued sums in lieu of taxes 453,962 405,884 Other
?42,126 427,079 Total current liabilities 26,920,309 16,535,534 Csmmitments (Note 7)
Deferred Credits:
Unamerti:cd gain en rea~;atred debt (Nete 1) 1,267.439 1,401358 Nuclear fuel settlement (Note 3) 10.546.135 10,173,64S Total deferred crects 11,813,574 11,575,003 Capital Contributions - U.S. Government Grants 34.438,264 34,438,264 Accumulated Earnings Reinvested in the Business 130,917,600 111,169,624 Total
$1,712.444,046
$1,336,427,183 3
Statements of Accumulated Earnings Reinvested in the Business Years Ended June 30,1981 and 1980 1981 1980 Accumulated earnings reinvested in the business - beginning of period
$111.169.624
$91,063,369 Reinvested earnings for the period 21.048.272 21,406,400 Tota 1 132.217.896 112,469,769 Distrioution to the State of South Carolina 1.300,296 1,300,145 Accumulated earnings re.nvested in the business - end of period
$130,917.600
$111,169,624 I?<e awmienying,' c es a:v an an.%;.~alput cf the f;nanu:Jl s! :ements.
4
Statements of Reinvested Earnings
',' ears Ended June 30,1981 and 1980 1981 1980 Operating Revenues:
Sales of electricity
$244,851,426
$150,428,642 Other operating revenues 1,494,725 1,364,741 Total operating revenues 246,346,151 151,793,383 bperating Expenses:
Operation expense:
Production 149,427.242 93,325,069 Purchased and interchanged power -- net 9,275,103 (2,841,1 IS)
Transmission 1,873,222 1,369,954 Distribution 1.190.841 809,891 Customer accounts 1.590,345 1,297,428 Sales 167,585 242,216 Admirsistrative and general 5,739,323 4,663,853 Maintenance expense 18,626,164 11,129,889 Total operation and maintenance expense 187,889,825 109,997,18S Depreciation 21,237,703 14,574.923 Sums in lieu of taxes 965,799 928,098 Total operating expenses 210.093.327 12S,500,206 Operating income 36,252,824 26,293,177 Other income:
Interest income:
Other funds 8.612.182 S,576,531 Borrowed funds 22.407.053 25,S76,023 Allowance for funds used durina construction - other than borrowed funds (Note 1) 83,422 44,425 Other - net 45,326 (52,316)
Total other income 31,147,983 31,144,663 Total 67.400,807 57,437,840 Interest Charges:
Interest on long-term debt 75,628,944 59,597,774 Allowance for funds used during construction - borrowed funds (Note 1)
(30,425,506)
(24,415,117)
Other 1,149,097 848,783 Total interest charges 46,352,535 36,031,440 Reinvested Earnings
$ 21,048,272
$ 21,406,400 The muv sunymq nc&s am an inwmi;>>rt c! the Imancu.2! st=!e.r:ents.
S b
Statements of Changes in Financial Position Years Ended June 30,1981 and 1980 1981 1980 Funds Provided By:
Operations:
Reinvested earnings S 21.048,272
$ 21,406,400 Charges (credits) to reinvested earnings not providing or requiring funds:
Depreciation 21,522,875 14,574,923 Allowances for funds used during construction (30,508,928)
(24,459,542)
Amortization of debt discount and expense 926,484 621,302 Amortization of reacquired debt --- net 115,108 95,493 Total from operations 13,103,811 12,238,576 Sale of bonds / notes 350,000,000 75,000,000 Capitalized lease obligations 4,000,000 Bank loans 25,000,000 Increase in accrued interest on long-term debt 7,144,634 4,153,246 Nuclear fuel settlement 372,490 10,173,645 Other 144,790 (130,990)
Total funds provided 374,765,725 126,434,477 Funds Applied To:
Increase in utility plant 244,697,487 180,881,743 Retirement of long-term debt 4,158,012 3,060,453 Principal payments - capitalized lease obligations 2,146,746 1,978,740 Increase (decrease) in unexpended funds from sale of Electric System Expansion Revenue Bonds 9,256,200 (60,463,620)
Increase (decrease) in debt service and other special funds 84,291,927 (7,0S0,843)
Decrease (increase) in construction fund liabilities 3,270,378 (4,403,925)
Distributions to the State of South Carolina 1.300,296 1,300,14S AJJuium iu unamviilzed debt discount and expense 14,467,651 2,196,698 Reacquired serial bonds 190,750 Total funds applied 363,779,447 117,499,391 Increase in Working Capital S 10,986.278
$ 8,935,086 Increase (Decrease) in Working Capital by Component:
Cash and securities:
Held by trustee
$ 2.580,779 948,62S Other (5,017,486) 5,264,S41 Accounts receivable 14,154,300 2,655,694 Accrued interest receivable 1,139,791 (429,453)
Inventories 8.364,638 6,908,117 Oth current assets 149,031 80,897 Accounts payable (10,324,331)
(5,81S,405)
Customer deposits (197,319)
(344,780)
Accrued sums in lieu of taxes (48,078)
(52,580)
Other current liabihties 184,953 (280,570)
Increase in working capital
$ 10,986,278
$ S,935,086 The wuc:p ny.ng in es am an.n >q'ullw! cd t.he !m.1nc.31 s':!en:ents.
I O
1
_=r Notes to Financial Statements m_-
June 30,1981
=_t 5
durim construction ( AFUDC) reflects the cost for Note 1 - Summary of Significant Accounting the period of capital devoted to plant under Policies:
construction, including nuclear fuel. This cost f
A - System of Accounts - The accounting represents interest charges on borrowed funds and a records of the Authority are mair.tained reasonable rate of return on other funds used to substantially in accordance with the Uniform System finance plant additions during construction periods B-of Accounts prescribed by the Federal Energy and is capitalized in the same manner as construc-T Regulatory Commission (FERC). See Note F below tion labor and material costs.
relating to calculation of allowance for funds used Construction projects are substantially financed P
durmg construction, oy identifiable borrowings, and AFUDC on specific B - Utility Plant Capitali74cn and Maintenance construction projects is calculated using the effec-
- Additions to plant are recorded at cost, which tive interest rates of the respective borrowings.
incudes material, labcr, overhead and allowance AFUDC for other funds utilized was calculated for funds used during construction. The costs of cur-based on the Authority's average rate of return for rent reppirs and minor replacen.ents are charged to the last three years.
appropriate operating expense and clearing G - Amortization - Unamortized debt discount, accounts. Costs of renewals and betterments are premium and expense are being amortized over the capitalized. The original cost of utility plant lives of the related debt issues. Unamortized gains retired and the cost of removal less salvage are and losses on reacquired debt are being amortized charged to accumulated depreciation.
over the respective lives of the refunding debt C - Depreciation - Depreciaticn is provided on issues.
a straight line basis over the estimated useful lives of the various classes of the plant. Annual Note 2 - Unexpended Funds From Sale of depreciation provisions, expressed as a percent Expansion Bonds, Debt Service and Other Special
~
of average depreciable utility plant in service, Funds:
were approximately 3.25% and 3.11% for 1981 and Unexpended funds from the sale of expansion 1980, respectively.
bonds, debt service funds, and other special funds Effective January 1,1980, depreciation rates were are held and maintained by trustees and their use revised to conform to e depreciation study which wah annlicable ~~'+"i-increased depreciation expense by approximately
~ ~ ~ ~ ~. ~ - - ~
m
" * * " ~ -
- ~~
f vari us trust indentures, bond resolutions, lease
$ 1,168.000 for the year ended June 30, 1980.
agreements, and the Enabling Act included in the D - Operating Revenues and Energy Costs -
South Carolina law. Such funds consist principally Revenues from sale of electric energy, includmg of investments in government securities carried at amounts resulting from application of fuel amortized cost.
adjustment clauses, are recorded as meters are read. Fuel costs are reflected in operating expenses Note 3 - Summer Nuclear Station:
as consumed.
E - Pension Costs - Employees of the Authority The Authority and South Carolina Electric and are covered by a State Pension Plan administered Gas (SCE&G) are parties to a joint ownership by the South Carolina State Retirement System agreement providing that the Authority and SCE&G which provides for employee and Authority con-shall own the Summer Nuclear Station presently tributions. Contribution rates are fixed by State under construction as tenants in common with statutes. The Authority's contributions to the State undivided interest of 33-1/3% and 66 2/3%,
Pension Plan were $1 A17,837, and $1.053,000 for respectively. SCE&G, as agent for itself and the the years ended June 30,1981 and 1980, respec-Authority, is solely responsible for the design, tively. Data concerning accrued benefits and construction, operation, maintenance and decom-pension fund assets relating to Authcrity employees missioning of the Summer Plant and the Authority is are not available.
obligated to pay its ownership share of all costs F - Allowance for Funds Used During relating thereto. At June 30,1981 and 1980 con-Construction - The allowance for funds used struction woric in progress included approximately
-E 7
$300,691,000 and $245,086,000, respectively, approximately $10,000,000 in cash as partial representing the Authority's investment, including settlement of the lawsuit. Additionally, the AFUDC, in the Summer Plant. Nuclear fuel agreement provides for delivery of some uranium, represents the Authority's investment in the initial long term deliveries of equipment and services core of three regions and a portion of Region Four (including fuel fabrication) at a discount, and the that will be used for the first reload.
prospect of additional cash payments pending the The supplier under the original uranium supply outcome of litigation between the supplier and a contract breached the contract in 1975 due to group of uranium producers.
uranium market conditions. SCE&G initiated action Amounts received have been included in de-seeking specific performance of the contract ferred credits and will be applied as a reduction provisions, and a final settlement was reached and of uranium fuel costs once the plant begins cpera-approved by all parties in April,1980. By terms of tion consistent with SCE&G's treatment pursuant the order approving the settlement, the court to an order from the South Carolina Public imposed confidentiality upon the details of the Service Commission.
settlement. The Authority has received Note 4 - Long-Term Debt Outstanding:
Priority Obligations:
June 30, Electric Revenue Bonds, Series of 19S0, bearing in+erest at 2.70%
1981 1980 and due 1981 to 1993
$ 10,635,000 10,880,000 Electric Revenue Bonds, Series of 1967, bearing interest at 4% and 4.10% and due 1981 and 2006 53,575,000 50,725,000 Electric Revenue Bonds, Refunding Series of 1973, bearing interest from 5% to S.4% and due 1981 to 1989 7,925,000 8,605,000 Contract Obligations, payable 1981 to 1985 1,459,343 1,862,356 Total Priority Obligations 70.594,343 72,072,356 Eiectric System Expansion Revenue Bonds:
Expansion Bonds,1973 Series, bearing interest frcm S% to 5%%
and due 1981 to 1993 and 2013 99,175,000 100,000,000 Expansion Bonds,1974 Series, bearing interest from 6% to 6%% and
- 1981 to 1999 and 2014 108.900,000 109,000,000 1,. nsion Bonds,1977 Refunding Series, bearing interest from 4%
to 6% and due 1981 to 1997 and 2002 and 2016 209,275,000 210,890,000 Expansion Bonds,1977 Series, bearing interest from 4% to S%% and due 1982 to 2002 and 2017 115,000,000 115,000,000 Expansion Bonds,1978 Series, bearing interest from 4.20% to S-7/8%
and due 1981 to 1998 and 2008 and 2018 200,000,000 200,000,000 Expansion Bonds,1979 Series A, bearing interest from S.40% to 6-7/8% and due 1981 to 2003 and 2009 and 2019 109,935,000 110,000,000 Expansion Bonds,1980 Series A, bearing interest from 8%% to 10-1/8% and due 1981 to 1995 and 2002 and 2010 75,000,000 75,000,000 Expansion Bonds,1981 Series A, bearing interest from 7h% to 10%% and due 1985 to 1997 and 2002 and 2020 75,000,000 Expansion Bonds,1981 Series B, bearing interest from 9%% to 12%
and due 1995 to 2000 and 2013 and 2020 and 2021 200,000,000 Total Expansion Bonds 1.192,285,000 919,890,000 8
N Note 4 - Long-Term Debt Outstanding: (continued)
Electric Revenue Notes:
1981 1980 Electric Revenue Notes,1980, bearing interest at 5%% due December 1,1983 50,000,000 Electric Revenue Notes,1981, bearing interest at 7%% and due June 1,1984 25,000,000 Total Electric Revenue Notes 75,000,000 Bank Credit Agreement 50,000,000 S0,000,000 Capitalized Subordinated Lease Contracts, payable 1981 to 2015 87,930,536 86,077,282 Other 225,000 300,000 Total long-term debt
$1,476,034,879
$1,128,339,638 The Authority utilizes proceeds of debt issues Authority's Consulting Engineer certifies that net primarily in fmancing its construction program.
revenues (as defined) in each succeeding fiscal The Electric System Expansion Revenue Bonds, year after the date on which such additional 1971 and 1976 Series, were advanced refunded bonds are sold to and including the later of (a) and defeased in 1977 by issuance of 1977 Refundmg the third succeeding full fiscal year after such Series Bonds and Special Obligation Refu.idmg date, or, (b) the first full fiscal year after the Series Bonds. The principal amount of the refunded estimated date of commercial operation of any bonds and Special Obligation Bonds remaining power plant to pay the cost of construction of outstanding at June 30, 1981, totaled $233,345,000.
which additional expansion bonds have been, are Such bonds will be retired as they mature from the being, or are then authorized to be issued, shall prcceeds of Government Obligations held by the be at least equal to the sum of the amounts Refanding Trustee.
required in such fiscal year for (i) debt service The Authority's bond indentures provide for on the priority obligations and the expansion certain restrictions, the most significant of bonds then outstanding, being issued, or which are:
authorized but not yet issued, (ii) payments into The Authority covenants to establish rates and the lease fund, and (iii) payments into the capital charges adequate to provide revenues sufficient, improvement fund.
among other things, to pay debt service when due on the priority obligations and expansion Maturities of electric revenue notes, priority bonds, to make required payments when due into obligations, and expansion bonds during the years the lease fund and *he capital improvement fund, endmg June 30,1982 through 1986 are as follows:
and to pay the costs of operation and main-tenance of the Authority's electric system and all necessary repairs, replacements and Elecmc Pnonty renewals thereof.
Revenue Obimnon &
The Authority is presently required to pay Notes Expanmon Bonds Total annually into its capital improvement fund an June I.1982 5 1 5,976.891 S 5.976.891 amcunt which, together with the amounts June 30.1983 6.719.728 6.719.728 deposited therein in the two preceding fiscal Ju w 30. m um s.216.0 0 s3.216.017 years, ir at least equal to 8% of the Authority's gross revenues (as defined) in the three pre-June 30.1985 9.479.051 9.478.051 ceding iiscal years.
June N 19H6 10.S00.000 10.500.000 The Authority may issue additional parity Tetal $75 000.000 540.891.m7 s115.est.ss7 expansion bonds if, among other things, the 9
f W
/
The contract obligations included above arose approximated $87,S29,000 and $63,419,000 for the through an agreement to purchase certain years ended June 30,1981 and 1980, respectively.
transmission lines (generally known as the "A-B" Future minimum lease payments on Central leases System) from Central Electric Power Cooperative, at June 30,1981, were:
Inc. Principal and interest at 2% per annum are Years ending June 30:
Amount payable in semiannual installments. See Note 6 for S 5 8 details concerning long-term lease obligations.
1984 5.492,975 Note 5 - Bank Credit Agreement:
1985 5,506,538 1986 5,506,540 The Authority has a credit agreement with several Thereafter 113,805,792 banks which expires in 1982 The participating banks agreed to loan the Authority, from time to Total minimum lease payments 141.122,343 time, up to $50,000,000 et a fluctuating rate per Less, amounts representing interest 53,191,807 annum equal to 40% of the prime commercial rate of one of the major lending banks, plus 2% per Balance at June 30,1981 S 87,930,536 annum (10% at June 30,1981). The proceeds from such borrowing must be used solely for Leases, other than Central leases, are not material.
plant construction.
Note 6 - Long-Term Lease Commitments:
The Authority's Construction Budget, as adjusted The Authority has lease contracts with Central for known changes, provides for expenditures Electric Power Cooperative, Inc., covering a steam (principally consisting of generating facilities -
electric generating plant, transmission facilities' Summer Plant, Cross #2, Cross #1 and other and various other facilities. The lease terms range construction) of approximately $297,334,000 during from fourteen to thirty four years. Quarterly lease the fiscal year ending June 30,1982, and payments are based on a sum equal to the interest
$S55,559,000 during later years.
on and principal of Central's indebtedness to the Rural Electrification Administration for funds borrowed to construct the above-mentioned facili-Note 8 - Malcr Customer:
ties. The Authority has an option to purchase the leased properties at any time during the period of Sales to Alumax of South Carolina, Inc., a major the lease agreement for a sum equal to Central's industrial customer of the Authority, were indebtedness remaining outstanding on the property
$50,840,814 for the year ended June 30,1981.
involved at the time the option is exercised or to return the properties at the termination of the lease.
The Authority plans to exercise each and every option to acquire ownership of such facihties prior to expiration of the leases. In addition, the Authority and Central are parties to a power contract which provides that the Authority will provide and Central will purchase all of its energy requirements less amounts which Central purchases directly from the Southeastern Power Administration through December 1982, at which time power supply and transmission services will be provided to Central in accordance with the Power System Coordination and Integration Agreement dated January 19,1981. Revenues received from Central 10