ML20053A432

Annual Financial Rept 1981

ML20053A432
Person / Time
Site:	Waterford
Issue date:	02/15/1982
From:	LOUISIANA POWER & LIGHT CO.
To:
Shared Package
ML20053A427	List: ML20053A432 W3P82-1268, Forwards Annual Financial Rept 1981
References
NUDOCS 8205260091
Download: ML20053A432 (34)

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Area Ser ed by 1.P&L Louisiana Power & Light Company operates in 46 of the M parishes of Louisiana-a 19.NN)-square-mde area which hml an estimated population of 1.585jKM) as of December 31.19x1.

'Ihe area sened by LP&L inthides most of North Louisiana, a small part of East Central Louisiana, and most of Southeastern Louisiana including the metropolitan area around the City of New Orleans and the 15th Ward of the City of New Orleans.

LP&Cs system is a part of, and is interconnected with the operating companies t

of, the Middle South Utilities Sy stem. This prosides more dependable electric service for customers, and also results in the greatest economy in generation of electric power, with resultant sasings to customers.

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General Office:

Registrar for Preferred Stock:

142 Delanmde Street W hitney National llank of New Os eans P O. Ilos N ON 225 St. Charles Atenae New Orleans. I ouisiana 70174 New Orleans. Liuisiana 701.M) l'elepinine: i N W.%2M5 Irustee for l'irst Tlortgage Ilonds:

'fransfer Agent for Preferred Simk:

The Chase Manhattan llank. N.A.

Ihbernia Nationalibnk of New Orleans Corgurate Trust Administratise Ibision 313 Canindelet street i New York Plaia-- 14th Hoor New Orleans. Luinsiana ~0130 New York New York 100h1

'Ihis 1981 Annual Report is prepared for the information of saockholders, empksyees, and other Interested perums.

'Ihe Company's 1981 Annual Report to the Securities and Eschange Commission on Form 10-K (including financial statemes.ts and financial statement schedules) is availshic to any stockholder upam request without charge. Stockholders interessed in obtaining a copy should write to:

J. II. Erwin, Jr.

Vice President and l'reasurer louisiana Power & l.ight Company P. O. Hos (M8 New Orleans, louisiana 70174 / Telephone:(Sol) 3% 2345 i

l Front Cover:

Algiers ibint, home of Louisiana Power & Light Company's General Office since 1927.

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As of As of l

I)ee.31.19st Dec. 31,19N) i Plant Investment.

. 52.63-l.(XX) 000 52.319.246,(X)0 Resenue.

.51,117.761,000 5 853,523.000 Net Income.

.5 121,469.000 5 100.676.000 Peak Load ioccurred 7/15/81 and 7/I6 SO).

4.256.000 KW 4,078.000 KW l

Generating Capability..

1.625.000 KW 4,625.000 KW Costomers.

530,579 515,904 Aserage annual kilowatt-hours per l

reside-customer.

13.791 14,177 Aserage annual revenue per residential kilowatt-hour..

5.33c 4.14e Population in area serve (I.

1,585,000 1,553,000 l

'llises charged to operating espenses. 5 98.413.000 5

66,874.000 Employees..

2,499 2.342 l

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A Message million of 10-year, first mortgage bonds which carry a l'roin the President 16.25% interest rate. Also, in November, the Company repaid $N)million of 9h% first mortgage funds at maturity.

Short-term borrowings were used deri.ig the interim s

periods.

With its improving financial condition, the Company was able to proceed without delays during 1981 in its construction of Waterford 3, its 1,1(MJXX)-kilowatt nu-clear generating facility being constructed at Taft, e

Louisiana, in St. Charles Parish. Waterford 3 is sched-uled for commercial operation in July 1983. Alore than

$1.2 billion has been invested in this facility by LP&L, Folkming several years of serious financial strain, and its total cost is projected to be $1.8 billion.

Louisiana Power & Light Company emerienced a LP&L is a participant in another nuclear power healthy upturn in 1981. N1uch needed rme relief and project-Grand Gulf Nuclear Plant near Port Gibson, continued dedicated team effort by employees were the N1ississippi, an.1 w hich is ow ned by N1iddle South Energy, major reasons for this improvmg snuation.

Inc., a subsidiary of Niiddle South Utilities, Inc Grand The leuisiana Public Service Commission ILPSC)

Gulf Unit I, which will have a 1,250JXX)-kiknvatt capa-granted LP&L a rate increase of SI17.8 minon N1av 26, bility, was 95% complete at the end of 1981, and is 1%I.1his was an increase of appnnima'ely 15"G'and scheduled for commercial operation in February 1983.

was in addition to a 532.4 million,4% emergency interim LP& Us share of this capability will be 422JXX) kik) watts, or about 34% of the unit. LP&L's share of Grand Gulf increase gramed by the LPSC October 8,19N). For cus_

tomers in Ward 15 ( Algiers) of New Orleans, the Council Unit 2, which is 22% complete :..id identical to Unit 1, of the City of New Orleans granted the Company $3.1 is 287JXX) Lilowatts. Construction on Unit 2 was sus-million July 23,1981. This was an increase of about 19%.

pended in December 1979. Resumption of this project is No emerg'ency interim increase was granted by the currently under resieve.

Council.

Net income of LP&L in 1981 was $124.5 million, an increase of $23.8 million over 1980. Of 1981's net in-

'I he Company's 1981 construction costs totaled $320.9 million and required $187.6 million imm external sources.

come,39% was comprised of Alh>wance for Funds Used Internal funds included proceeds from the sale of During Construction ( AFUDC), a non-cash item, com-6.060,700 shares of common stock during the War to pared to the 49% of net income represented by AFUDC LP&Cs parent, N1iddle South Utilities, Inc., for'an ag.

in 19N). This was among the most encouraging finan-gregate price of 540 million, the sale in April of $75 cial improvements for the year.

million of 10 year, first mortgage imnds which carry an Operating resenues in 1981 totaled 51.1 billion,31%

interest rate of 16%, and the sale in December of $100 more than the 5853.5 million for 1980. This increase was due primarily to the reco.ery through fuel adjustment of the rapidly increasing cost of fuel for generation and to the rate increase granted by the LPSC in Alay 1981.

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110 weather in July pushed the peak demand on the The Company announced an earnings increase of 10.5%

LP&L system to 4.256fX)0 kilowatts July 15,19MI. This for employees not in the Salary Administration Program.

compared to the 19N) peak demand of 4.078JXX) kilo-This increase became effective November 15, 1981.

watts set July 16 of that year. Even so, the 1981 summer, Increases for those employees covered by the Salary from an overall standpoint, was not as hot as the record-Administration Program also became effective in breaking summer of 1980. LP&Us average residential November.

customer used 13,791 kilowatt-hours in 19Mt. This com-On July 31, 1981, LP&L and New Orleans Public pared to 14,177 kih> watt-hours used by the average resi-Service Inc. jointly announced that they were de-dential customer m 19N). The decrease m 19MI also was seloping a pian to consolidate the two companies. A new partially due to serious efforts to conserve electrie energy company will result from the consolidation and also will by LP&L customers.

be called Louisiana Rnver & Light Company. The present At the close of 19XI, LP& L was sersing 530,579 custo-LP&L represents about b0% of the combined company mers-an increase of 14,675 over the 515,9N served at in customer electric energy use and peak requirements.

the end of 19N).

Improved efficiency is the principal reason for this con-solidation, which could become effective in 1982.

'I broughout its history, LP&Us retail customers have been under the regulatory jurisdiction of the LPSC with LP&L looks toward 1982 hopefully, but with some the exception of appnnimately IXJXX) customers in the serious apprehensions. Some problems and challenges 15th Ward of the City of New Orleans ( Algiers), who will be different from last year, but financial stress will have been under the regulatdry authority of the Council be heavier. Whereas Louisiana has not felt the full of the City of New Orleans. On November 28, 1981, seserity of economic reversals of the recent past, it is the voters of New Orleans approsed the transfer of this feeling the effect of such economic reversals at this time, regulatory authority from the Council of the City of with unemployment equalling or perhapsslightly exceed-New Orleans to the LPSC. This decision of the voters ing the national average. Ilowever, it is expected that i

became effectise January 1,19M2.

Louisiana's economy will begm to improve at a more rapid rate than other areas of the nation.

While LP&L did not file for a rate increase in 1981, the Company will file such a request with the LPSC during 1982. This requested increase will be necessary Ibr the Board of Directors to coser the resenue requirements of Waterford 3 upon l'ebruary 15,19M2 its commercial opetation and Ihe continuing increase in operating espenses, and to recoser the capacity pay-ments for LPA Us portion of the new Grand Gulf Nuclear

!! nit scheduled for commercial operation in early 1953.

-pp g,^ C. 3 LP&Us employee benefit program was further im-pnned by the Company in 19XI. Effective Janu iry 1, LM. Wyatt 19h2, all LP&L employees were offered an opportunity President to elect any one of four options under its G.oup Life I

insurance Plan, prosiding greater flexibility in meeting indisidual employee needs. Also effective January 1, 1

19S2. the Company began to pay to all eligible retired employees and spouses of deceased retirees the cost of I

their.\\ledicare premiums.

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Louisiana Power & Light Company Net Income Operating Taxes tion in yniy i933 tpg es presen, The 19XI net income was $124.5 Local, state, and federal taxes on generating capability of 4.625.(XX) million, an increase of 523.8 mil-operating income totaled 598.4 kilowatts will be increased about lion oser net income of $100.7 million in 1981. an increase of 24% with the addition of Waterford million in 19N). Of LP&Cs 1981 531.; million over those taxes in

3. At the close of 1981 more than net income. 39"o was represented 19N). This was a 47% increase, due 51.2 billion had been invested in by Allowance for Funds Used Dur-primarily to the increase in operat-Ihe nuclear facility by LP&L.

ing Construction ( AFUDC), a non-ing resenues.

cash item. Ilowever, this was an LP&L Customers improsement oser 19N) when Construction Costs Al UDC was 49% of net income.

At the end of 1981. LP&L served and much better than 1979 when it LP&L construction costs in 1981 530.579 customers, an increase of was 70"o of net income.

totaled 5321 million, a 561 million 14.675 over the customer total of increase over the 5260 million 515.904 at the end of 1980. This spent by the Company on construe-was a 2.8% increase.

Operat.ing Reventues froin tion in 1950. In 1981,5266 million

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Retail Custainers was spent in continuing construe-Energy Sales to

()peratmg resenues from retail tion of W,aterford 3, the Com-Retail Custoiners customers in 1981 were 51.05 bil.

pany's 1,104.000-kilowatt nuclear lion. a 3X"o increase owr the 57M.I generating facility being built at Electric energy sales to retail million in 1950. The sustair.ed

'Ilift. Louisiana 25 miles upriver customers totaled 23.0 billion rapid rise in ol'erating revenues has from New Orleans on the west bank kilowatt-hours in 1981, a 6% in-been caused primarily by continu-of the Niississippi River. Waterford crease owr the 21.7 billion kikwvatt-ally higher fuel cost adjustments 3 is scheduled for commercial opera-hours sold by LP&L in 1980.

in customer service bills and the rate increases granted the Company ir ()etober 1950 and Ntav 1981 by the LPSC, and in July 19'XI by th'e Retail Energy Sales Council of the City of New ()rleans.

KWH Sales % Gain Rewnees

% Gain iMillions) Owr 19A0 tMillions) Owr 1990 Total Operatiiig 1:xpciises n,,ideniisi...........................

6,405 S 34i.6 29 Commercial.........................

3,016 5

164.7 33

()perating expenses in 19hl to-Industrial.

13,067 9

525.3 47 taled 59M.6 million, a 31"o increase G=am'"I........................

479 3

22.8 32 Iotal Sales to oser the 1950 operating expenNeN of actail Customers..................... 22,967 6

31.054.4 38 5737.2 million. This increase was caused primarily by necessary pur-chases of higher cost fuel for gen-()perating Expenses l

eration to replace shortages of de-liseries of natural gas imder esist-

,93, ilig cotltritets, and ildditionill po"-

(Millions) (Millions) Over 19R0 er plirchased froni other titilities Fuel Purchased for Generation..................... 8356.8

$296.8 20 when this became more econonlj.

Isme r Purc hased............................... 335.3 242.3 38 l

Delerred fuel Omts....

18.0 12.0) cal Ihan for LPA L to generate Imer im......

98.4 66.9 47 Lising higher cost ftiel.

De Precia t ion.....................................

43.6 42.5 3

Pairoll Char 14.6 31.0 11 Other..... gest to Operating Es penses................

77.9 59.7 30 Total.......................

$964.6 3737.2 31 l

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Average Residential Use uled for commercial operation in The Company has been granted 1

, had Mn in opaadon during rate relief by the LPSC on only two The average residerWal use of I"MI, appnnimately $157 million of previous occasions-513.8 million electric power in the LPK L system t h n. fud bill charged to customers (6h% increase) m 1978, and 559.6 dropped to 13,791 kilowatt-hours in 19M1, a decrease of 3X6 kilowatt-woulg ham been saved. Delays m nullion (17% increase) m 1979. On buildmg W,aterford 3 have been both occasions, rate relief granted hours from the 14,177 kilowatt-caused by regulatory requirements, the Company was far less than re-hours used by the aserage LP&L residential customer in 1980. This nucim ppwn ppponena, LP&Ls quested. I n its 34-year history, LP& L umwd financial (ondition, retro-had previously placed into effect 29 w as a 10% decrease. and was fitting, and the difficulty m ob-rate reductions,9 of which were tain ng una n nafum n wiwn major decreases in retail electric

.t elf rt iy I i iai tise response from LP&L custo-For its Ward 15 ( Algiers) custo-mers in conserving energy. The de-

,u n' tml Peer crease also was attributable, in mers then under thejurisdiction of part, to a milder summer in 1981 Power purchased in 1981 cost the Council of the City of New compared to the record-breaking LP&L 5335.3 million-38"o more Orleans,the Company also had been hot weather of 19h0.

than the 5242.3 million spent for granted rate relief on only two purchased power in 1950. The cur-previous occasions-5443,000 (6"6 LP&lls Peak Demanti tailment of deliveries of lower-increase) in 1978, and $1.3 million priced natural gas for generation (17"o increasel in 1950.

LP&l's 1981 peak demand oe-curred at 5 p.m July 15. and was

"'. contracted for by certam sup-phen, cauwd gmata anmunn of h,uant'ing 4.256.000 kilow at ts. This com-pares to LPAUs peak demand of

.wd pown to become less LP&Us 19M1 financing resulted P""

4.07X.tXX) kilowatts July 16.1980 "P"".9 i n the gnaanon of in net proceeds to th-Company electricity by LPAL using higher of 5187.6 million.

I cost fuel.

1,ucl for G,enerat. ion A total of 6,060,700 shares of co mon stock was sold during the Fuel purchased for generation lletail llate Inercases ym to I_P&Cs pamnt. Middle of electricity by Lll& L m 1981 cost Grantetl to 1 P&l' 5357 milhon, an merease of 560

' outh Utilities. Inc., at an ag-

.On May 30.19h0 LP&L filed gregate price of 540 million.

million.or 20"..,oser tuel purchased with the LPSC for a rate increase for eeneration in 1950. Fuel pur.

Jn April, the C,ompany sold 573 chased for generation in 1950 cost of 52016 million. The Company

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10-yar. fint inongap 5297 million. N1uch of the increase was granted an emergency interini bonds,w?ith an interest rate of 16"L.

increase of 532.4 million October was caused by the continuine need

""'I of ihis money to LP&L to purchast iiicher cost fuei to re.

S.19h0, and an increase of an addi-

'.in December, LP&L tional 5117.8 million Niav 26.1981.

called forund[has not delivered as place natural These mereases tocether' amounted

"""E"#,p"7nds w! of 10-yea r esisting contracts ah an interest rate Fuel for eeneration ainounted to to an appnnimate'19"a increase for those customers under LPSC "f' """ '" LENE 37"o of the Company's 1981 operat.

wm 16.59 4. In November, LP&L ine espenses, jurisdiction, repaid 550 million of 9h"h first For appnnimately IM,(Wh) custo-mortgage bonds at maturity.

in 1981, natural gas fueled hh"o of LPA Us generation, as use of oil mers in Ward 15 ( Algiers) of New Short-term bornmings, consisti.1g was reduced to 12"o. In 1980,81".,

Orleans, the Council of the Citv of bank loans and commercial

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o of LP&Us fuel requirements were New Orleans granted the Company an increase of 511 million July 23',

E"P.a. wae uwd during the interim met with natural gas w hile 19"o

'" " " " " " * "* P""Y ' ""F" "F 1981. This was an increase of about came from oil.

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19"o. The City had not # ranted If Li,& L,s %.ateiford 3 nuclear LPKL an eme'rgency interim in-facility, which was originally sched-crease.

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Waterford 3 Construction

,l' At the end of 1981, Waterford 3, LP&Cs nuclear generating unit at 1

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X r--T Taft, Louisiana, 25 miles upriver

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operation in July 1983. Hearings i

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for the plant's operating license are scheduled to begin in the spring l.

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.M capability of 4,625,000 kilowatts.

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Future Fuels

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As natural gas and fuel oil soar a.

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1.1%l. workers piep. ire to lay 115 KV cable under the Niississippi Riser between in price and become less available ik lie ch.nse anti l' ort Nickel.

in quantities needed for reliable generation, LP&L is diversifying

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its fuel mix for generation. In ad-dition to its nuclear plant at Taft, LP&L is building two 800,000-y Lik> watt, coal-fired generating units at its Wilton site on the east bank of the Mississippi River at Central, Louisiana,in St. James Parish.The j

first of these units is expected to be completed in 19M8,and the second

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in 1991. Both will use low-sulfur, western coal.

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Research and

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LPAL has been engaged in re-S gg{.gf search since 1927 to pnwide elee-T L

tne power at lower cost as well as OS.

[h to improse the quality and reli-

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ability of electric sersice. In 1951,

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LPA L insested $1.307.(xW) in re-s'

,X search. 53.Mh.tXW) of w hich went

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b development ai a program to im-

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prose generating unit reliability.an i[ ^4 j ' %

investigation of the measurement N

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m the power system, and solar bbw energy.

I l's t \\teiennan Ch.nles buckler checks data tor a meter resi.

Load Forecasting l

The increasing cost of energy L} q L.N()}n;}

the City ), abo serses electncity to and the econoric recession con-Consolidation

" ' customers e\\ cept 1" tinued to impact the use of elec-Ward 15 t Algierst where LPAL has trie enerev and the Company's l

t >n July 31. 1951. LPAL and been the supplier of electricity.

forecast ol future electric energy

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New t hleans Public Sersice Inc.

The new company will continue to demand. Etforts continued in 19hi a NOPSIi. an associate company in operate all the gas and electric to denlop mathematical models the Niiddle South !!iilities System.

properties of NOPSI. The ow ner-which can be used to predict fu-announced plans to consolidate. A ship and operation of transit facili-ture electric enerev use under new company will result from the ties are espected to be transferred varying economic c'onditions.

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consolidation and also w ill be called either to the City of New Orleans l.ouisiana Power A Light Compam.

or to a recional' transit authority,

.l he 1981 forecast pn'jected a 1 he area now sersed electricits and although ii is possible that this will 3 7 " "V""EC """""I '""f"1 '"

gas by NOPSI will become a fourth not tal'e place prior to the consoli-use of elet tnt-enagy by operating disision in the new dation.

eustomers between 19X1 and 1191.

(.ompa"F The projected annual rate of the The increased economic effi-urowth in peak load for the 10-I he electric systems of the two ciency to result from the consoli-iear period between 1951 and 1991 compai.ies hase long operated on dation of the two companies is was 3.5%. Actual data thus far in-

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an interconnected. integrated basis espected to sase customers more dicates that the recession has lasted as member companies of the Niiddle than 56.5 miHion annually. The loneer than predicted at the time South Utilities Sy stem. NOPSI.

consoli lation is planned to be of tihe 1951 forecast.and that fore-i w hich now serses pas throughout completed in 1952.

casted annual unwvth rates through I

the Cits of New Orleans tin addi-tion to prosithng transit seruce in 1991 are likely to be less than pro-jected.

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"C" Energ,y Conservation g

'I he Company continued in 19XI its long-standing effort to help ns customers make the wisest and

. T most efficient use of electricity.

' gfWP The residential and commercial g;

gij ~

consenation programs base been l

highly successful oser the 3 ears.

W th'ough LPAL plans to make a few

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T

~

changes in the coming year. includ-ing a new "Ett Watchers Pnigram" in 19X2. 'I his is an effort to per-g gj suade customers to practice energy i

se conservation at home.and to learn

" N N T ;T fz b\\ k

~~

how their energy dollars are spent.

Qd in 19XI. more than bin. of all e

new construction residential cuv 1

tomers were total electrie custo-

.)

mers, and this trend is espected

~.

to continue. In the commercial s.

b area. grow th continued almost un-diminished in 19XI.with I.b3M new

/J customers added during the year.

g y,

()f these. M22 were total electrie.

1 Industrial sales of electricity in-

?@

3 creased about 9".. in 1951, primarily because of the completion of seseral g

large industrial projects. Among I

c:

tht se were projects by Consent

~ ~: ik:s D..

Chemical Corporation and llayou n T.4

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~~

SteelCorporation. Alsoduring l4XI.

w m-59 indust rial eustomers cont racted Y

.E'~

'N gg~.1 for an additional 120J N M) kilowatts for new or espanded operations e -

?s 1

which will adil 6N) new jobs in the

%k q,h '

N area LPA L senes, lloweser, the h Y industrial outlook has worsened

)

3 -+M the economy by mid-year.1952 in-h' N4; somenhat. Assuming an upturn in 4

4 dustrial sales are espected to be N

about the same as sales in 19St.

'I he posernment-inandated llesi-dential Consenution Senices tIRCSI l'rogram began in 1951, with an-1:hs llenns record, d;ua ai LPAlls Southern Comrol Center in Gretna.

11ouncement mailings bekng conl-pleted in July.113 the end of the year. LP&L had mailed offers to audit residential premises to 170.-

(MX) customers. Plans call for com-pleting these offers to audit in April 1952.

r-

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4

Offices Closet!

~']

Continuing its pnigram of tight.

I ening and consolidating its opera-p tions w here possible. the Company

(

closed two sub-district offices in 1981 - its of fice in Kentwood June 3

30. and its office at independence December 31. Customers base been assured that they adl continue to receise the same high (guality ser-vice which they hase had in past i~4 1, '

years ibrough the principal district ottices senine those areas.

_g 3

Renewed Franchises One parish and fise municipal franchises were renewed in 1951.

ad s

Catahoula Parish renew ed its G Q[

i.

n e

franchise as did White Castle, f.

i Ridecerest, Choudrant. Saline.

and I illie.

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y

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i'F' col %

'""i' E "'"b" ""'" "'i*d '" '"*' " u h neadp yearwn ia and w as de senior actise LPA L employee w hen he retired. Ilis wife and Norman Cohin stand LPA Cs employee political ac-with him.

tion committee. LECOPA-LPAL 4 Louisiana Employees Committee on Political Action of Louisiana New D.irector and Chief E.ngmeer of the C,ompany, Power A Light Companyi had a Staff Changes was named Vice President-Plan-South herv&"."Inc. m August. lie

" "E ""

busy and productise year in 19M1.

William Clifford Smith, Presi-ices

,\\ldiough P)X1 was rmt an e1ection dent of T. llaker Smith & Son,was was succeeded as Chief Eneineer year for the Louisiana legisla-elected a director of the Company by Jerry J. Saacks, formerl'y Sys-ture or the national Congress-in Ntav succeeding Charles J.

LECOPA-LPAL nonetheles. kept Cassid, who has been an LP&L

* f 3 ""*."#

"""E" "

closely abreast of issues on both director for the past 15 years, and P""} '

the state and national lesels that who reached the mandatory re-D. E. Knowles, Jr., Ntanager of impact on LPAL and the electric tirement ace for directors. Cassidy Divisions.was named Vice Pre ident

~

industry nationwide. It especiall) is Chairmim of the Board of the

-Division Operations. Charles E.

monitored deselopments affectinF F rst State llank & Trust Company Vaughan, Jr., Nianager of LP&Cs

'he upcoming 14M2 national elec-in Bogalusa.

~

Northern Division, was elected tions and the Louisiana leeislature Vice President in Julv. Lee V.

elections of 1953.

L,aw.dy wm omned to the nt w N1 aurin, who heads the Company's tule of director emeritus along w,ith nuclear operations, was nam'ed

.I.he solunteer employee PAL, W O. 'Iurner and G. C. Rawls, both V. ice I3 resident -N.uclear Opera-w hich iias a memIiersiiip of :diout of New Orleans and both formerly tions in December. Robert N1. Red-0 members, will pursue an aF-chief esecutive officers of LP&L.

head formerly Governmental Af-gressne program m 1182 to enlist and Donald 11. Fiske a retired fm.rs.\\lanaeer was promoted to new memI>ers among eligibie businessman and former LP&L Director of Public Relations in em phiy ees.

director fn>m Oak Gnwe, Louisiana.

February, succeeding O. K. LeBlane Jack Dasey. Vice President-who retired.

in

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('uuomer Nemce Superdsor Francis frances Tingsmim checks data at Customer Sersice Center in Gretna.

\\lt ('ulla talks w ith a customer.

l l

Company Employees mittee considers suggestions, proh-Nuclear Education The loyal, dedicated employees lenw, and mmplaints of emphyees, LP&L continued to make prog-of Li%L brought the Company

",nd makes recommendations to ress in educating its customers on through challenging times in 19S1.

C ompany manage ent. l'he Lom-the safety and benefits of nuclear pany has 46 hourly employees.

power. $1 ore than 7,600 people The average emplovee has more every department toured LP&L's Waterford 3 nuclear than 12 years of service with the representmg and inajor section of the Lom-plant in 1981, and more are ex-Company. Of the 2.499 emplosees at the end of the year. 424 were pany, to serve as communicators peeted to tour the facility in 1982.

promoted during th'e year.

for employees to the illue Ribbon Those touring have included mem-( om mit tee.

i bers of the news media.

The Company announced in Nosember a 10.M. carnines in.

LP& L plaud suond in its cate-crease for its houriv employe'es. At gory of employee safety m 1981 m Looking at 1982 l

the same time, saiaries also were the Southeastern Eleetne l:xchange.

Primarily because of the reces-increased for those employees in Seseral training and dewlopment sion from' which the American the Salarv Administration Pmgram, programs were continued by the economy is still emerging,1982 is l

The Company's illue Ribbon Coinpany thmugh 1981, and in-expected to be much like 1981.

l Committee, comprised of five em-h@olwd participation by more than ihnvever, Louisiana is expected l

etnP oyees-to recover Imm its economic ployees representing major areas of the Company, completed its problems more rapidly than most of the rest of the nation.

third full year at niid-year. The com.

-. ~.

II

n_

Customers Operating Revenues (Thousands)

From Retail Customers (Millions of oollars) 7"7 g

$1000 9 kfi ), [:]

1

,q q f ] k$),i-h 1:j 400 2

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0 1972 73 74 75 76 77 78 79 80 81 1972 73 74 75 76 77 78 79 80 81 Energy Sales Average KWII Use To Retail Customers (Bdlions of Kilowatt Nours)

Per Residential Customer 25 13000 mb 12500 20

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1972 73 74 75 76 77 78 79 80 81 1972 73 74 75 76 77 78 79 80 T1 Construction Expenditures Gross Utility Plant iMdhons oiDoliars)

(Millions ofDollars) 5400

$3000 N

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1972 73 74 75 76 77 78 79 80 81 1972 73 74 75 76 77 78 79 80 81 12 i

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Management's Discussion and Analysis of Financial Condition end Results of Operations l

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l. I' inane!al Condition Preferred Stock, when related earnings coverages, mar-Oser the last three years, the Company's cash require.

Let conditions and other factors permitted, and sales of ments necessary to finance its large construction programs Common Stock to Niiddle South Utilities, Inc. Bank loans were a major problem for the Company. The investment and commercial paper were used to finance construction in Construction Work in Progress (CWIP) at the end of on an interim basis pendmg long-term financing.

l 1981 amounted to $ t,302,147,0tX), including $1,276,466/XX)

The Company estimates that its requirements for capital l

related to the construction of Waterford No. 3, a nuclear funds from external sources during the period 1982-1984 generating unit scheduled for operation in 1983. As a will be approximately $489fXX),000, principally for con-result of the need to issue and sell large amounts of struction programs totalling 5975JXX)JXX) and for the pay-Bonds and Preferred Stock to finance the annual con.

ment of $N).000,000 of maturing long-term debt and Pre-struction programs, the Company's Bond and Preferred ferred Stock sinking fund requirements. The ability of the Stock carnings coverages were kept at depressed levels Company to meet such requirements is subject ro impnwed during ihis three-year period.

earnings through adequate rate relief so that the Company's Earnings did, howewr,impnwe in 1981 and in 1980 as a earnings coverages will enable the Company to sell addi-result of rate increases granted to the Company by the tional First Niortgage Bonds and Preferred Stock over the Louisiana Public Service Commission (LPSC) in Niay 1981 period to provide funds as needed to continue the con-(including the interim emergency rate relief granted in struction programs. Additional sales of Common Stock to October 19Nh and December 1979, along with the unusually Niiddle South Utilities, Inc. and short-term bornwvings are hot summer of 19N). As of December 31,1981, the Com.

estimated to provide a major portion of the balance of pany could have issued, under the Company's coverage funds fmm external sources. If the Company is unable to restrictions contained in its Nfortgage and Charter approxi.

obtain the necessary rate relief, the Company may be re-mately $197JXX)JXX) of additional First Alortgage Bonds quired to reduce, defer, or eliminate certain construction at an assumed annual interest rate of 15% (plus any First expenditures.

Niortgage lionds issued for refunding purposes) or approxi-mately 575JXX)JXX) of additional Preferred Stock at an

3. Results of 0perations assumed annual dividend rate of 15%.

Net income increased $23,793JXX), 535,547JXX) and 511,385.(XX) for the yea s 1981,1980 and 1979, respectively,

(

2.1iquidity and Capital Resources while net income exclusive of the effect of Alkwvance for l

As mentioned above, meeting the Company's cash re.

Funds Used During Construction (AFDC) increased

{

quirements has been a major problem over the last three 524,784 AXX)and 531,880JXX)in 1981 and 1980,respectively, i

vears. Primarily as a result of increased construction costs, and declined ',3,389.000 in 1979. The folkwving factors, I

the Company's not financing transactions amounted to which may not be indicative of future operations orearnings.

5187,579J X X),5174,652j XX) and 5252,927 AXX) for 1981,19N) have had a significant effect upon the Company's results and 1979, respectively, or 58%,67% and 90%, respectively, of operations during the years 1981,1980 and 1979.

d of construction expenditures (including Alkwvance for Operating reu nues increased $2R238/XX),5296fM7/XX)

~

Funds Used During Construction). SucIh financing con.

and $101,101JXX) for the years 1981,1980 and 1979, re-sisted principally of the sale of First Niortgage Bonds and spectiwly. Increased fuel cost recovered through fuel ad-4 l

9 i.

14

l i

justment clauses and increased fuel cost included in new addition, the 1979 change is partially attributable to a 4

lesels of base rates accounted for 55%,69% and 103% of change in the Federalincome tax rate.

the respective increases. Rate increases received in this The increase in AFDC in 1980 and 1979 is primarily time period increased revenue by 40% in 1981 and by 27% in attributable to the increased amounts of CWIP. The net 19N). Changes in sales of energy were relatively small in decrease in AFDC in 1981 is attributable to the applica-each of the years 1981,19N) and 1979.

tion of a knver accrual rate (see Note IF to Financial Increases in operation and maintenance expenses were Statements," Summary of Significant Accounting Pblicies-primarily due to higher fuel and purchased power costs.

Alkmance for Funds Used During Construction").

Fuel costs nwe over the 1979-1981 period, reflecting in-Interest charges increased during each year primarily creases in the average unit prices for natural gas and oil.

as a result of issuances of additional debt at high interest increased purchased power costs reflected not only higher rates in conjunction with financing the construction average unit prices but also larger volumes of energy pur-programs.

chased to displace even higher cost gas and/or oil-fired generation. Other operation expense, exclusive of deferred 4, Effects of Inflation fuel costs, increased as a result of the effects of infla.

tion on labor, materials and supplies and services. Effective inflation has had a significant impact on the Company's January 1979, the Company commenced deferring fuel costs operations in recent years (see Note 12 to Financial State-in excess of base levels alkmed in rate schedules until ments,"Effect of inflation on Operations (Unaudited)").

these costs are reflected in billings to customers (gener-ally two months later) pursuant to the fuel adjustment cla'use. The deferral results in a better matching of energy

5. Summary costs with related revenues. Thus, the deferred fuel cost With the rate relief received in May 1981, the Company's amount represents a net adjustment of energy costs. When financial condition and results of operation improved sub-there are wide fluctuations in the cost of energy between stantially in 1981 notwithstanding the effects of continuing

~

periods, the necessary adjustments can be quite large.

inflationary pressures on the cost of capital, labor, ma-Maintenance expense increased in 1981 due to increased terials and services. The Company will continue its efforts scheduled maintenance on generating units, unscheduled to contml costs in all areas of operation and to pursue maintenance and inflationary pressures.

adequate and timely rate relief when needed. In this respect, The increase in taxes other than income taxes for each the Company will file a rate increase application with the of the years 19M1,19N) and 1979 is due primarily to in.

LPSC in 1982 to cover the revenue requirements of Water-creased real and personal property taxes and franchise ford No. 3 and the continuing increase in operating ex-taxes.

penses, and to recover the capacity payments for the Com-The fluctuations in total income tax expense in.

pany's portion of the Grand Gulf Unit No. I scheduled cluded in operating expenses and in other income in 1981, for commercial operation in early 1983 (see Note 4 to 19N) and 1979 are primarily attributable to changes in Financial Statements," Commitments and Contingencies").

income before income taxes, and, in 19M0 and 1979, to differences in timing between deductions for tax and book purposes for which deferred taxes were not provided. In i

15

REPORT OF MANAG131ENT The management of Louisiana Power & Light Company The Icard of directors pursues its responsibility for has prepared and is responsible for the financial statements reported financialinformation thmugh its audit committee, and related financial informarion included in this annual composed of outside directors. The audit committee meets report. T he financial statements are based on generally periodically with management, the internal auditors, and accepted accounting principles consistently applied. Financial Ihe independent public accountants to discuss auditing, information included elsew here in this report is consistent internal control, and financial reporting matters. The in-1 with the financial siatements.

dependent public accountants base free access to the audit L meet its responsibilities with respect to financial in.

committee at any time.

formation, management maintains and enforces a system The independent public accountants panide an objectise of internal accounting controls w hich is designed to panide assessment of the degree to which management meets its reasonable assurance, on a cost effective basis, as to the responsibility for fairness of financial reporting. They reg-integrity,objectisity and reliability of the financial records ularly evaluate the system of internal accounting controls and as to the protection of assets. This system includes and perform such tests and other procedutes as they deem communication through written policies and procedures, nece,sary to reach and express an opinion on the fair-and an organization structure that panides for appropriate ness of the financial statements.

disision of responsibility and the training of personnel.

Manacement believes that these policies and procedures This sy stem is also tested by a comprehensive internal audit pn> vide ' reasonable assurance that its operations are car-program.

ried out with a high standard of business conduct.

AUDIl' ORS' OPINION Louisiana Pinver & Light Company:

We aave examined the balance sheets of Louisiana Power & Light Company as of December 31,1981 and 19N) and the related statements of income, retained earnings. and changes in financial position for each of the three years in the period ended December 31,19XI. Our 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 opimon, the abose-mentioned financial statements present fairly the financial position of the Company at December 31,1981 and 19N) and the results of its operations and the changes in its financial position for each of the three years in the period ended December 31,1981,in conformity with j

generally accepted accounting principles applied on a consistent basis.

_Y%

T 1

I I

New Orleans, Louisiana I:ebruary 12,1952 i

4 3

4 f

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

---~-a 16

STATEMENTS OF INCOME l'or the years ended 1)ccember 31,1981,1980 and 1979 81 M

79 (In Thousands)

OPEHATING REVENUES.

.. 51,Il7,7M 5853,523 5557,47_6 i

OPER ATING IiXPENSES:

Operation:

356,786 2 %,820 190,226 Fuel.

335.353 242,279 140,111 Purchased power.

91,582 59,830 38,318 Other.

38.873 28,906 31,269 Maintenance.

43,619 42,513 40,863 Depreciation.

l Amortization of property losses.

4,101 21,216 18,733 15,977 Taxes other th m income taxes.

77,197 48,141 22.750 income taxes t Note 6).

964,626 737,222 483,615 lbtal.

l 153.135 116,301 73,861 OPER ATING INCOME.

OTilER INCOME:

Alkmance for equity funds used during construction (Note IF)..

33.398 31,693 30,722 Miscellaneous income and deductions-net.

8,991 7,301 4,920 13,782 13,117 11,75I Income taxes (Note 6).

56,171 52,_i_11 47,393 Tbtal.

INTEREST Cil ARGES:

Interest on long-term debt.

85,632 69.3 %

60,263 14,336 16,167 10,993 Other interest-net.

Allowance for lurrowed funds used during construction (Note IF).

(15,131) (17,827) (15,131) 84,837 67M 56,125 lbtal.

...... 5 124,469 5100,676 5 65,129 NET INCOME.

STATEMENTS OF RETAINED EARNINGS For the years ended 1)ccenser 31,1981,1980 and 1979 RiiTAINED EARNINGS. January 1....

5 65,209 5 58,541 5 63,292 124,469 100,676 65,129 ADD-Net income.

lbtal.

189,678 159,217 128.421 DEDUCT:

Disidends-cash:

Preferred stock at prescribed rates (Note 2)..

28,366 24,883 16,749 Common stock (per share: 1981,51.075; 19b0,50.97 and 1979,50.872)...

84,136 69,110 52,673 181 15 458 Capital stock expenses, etc......

' Intal.

I12,683 94,008 69.880 RETAINED EARNINGS, December 31 (Note 31.

5 76,995 5 65,209 5 58,541 See Notes to Financial Statements.

17

BALANCE SHEETS December 31,1981 and 1980 ASSETS 81 80 (In Thousands)

UTILITY Pl. ANT (Notes 4 and 7):

El ec t ri c................................

.................. 51,331,853 51.288,901 Construction work in progress......

1,302,147 1,030,MS 1

N uclea r t u el...........................

3,832 15.175 To t al.........................................................

2,637,832 2,334,421 Less accumulated depreciation...............

431.775 393,342 Utility plant-net............................................

2,206,057 1,941,079 OTilER PROPERTY AND INVESTMENTS:

Investment in associated com 42,157 36,137 Ot her.................. pany-at eq uity ( Note 4)...................

439 407 Total....................................................

42,5 %

36.544 l

CURRENT ASSETS:

l Cash (Note 5)...............

11,081 12,6 %

l Special deposits.................

11,584 10,636 Temporary inwstments-at cost, which approximates market..................

11,000 i

Notes receivable...................

957 812 Accounts receivable-Gess alkvance for doubtful customer accounts of 5135 thousand):

Custome r.........................

33,669 28,847 Other......................................................

2,023 2,046 Associa ted com panies.............................................

115 115 I)eferred fuel costs.......................

(943) 17,056 l

Materials and supplies-at average cost....

13,137 10,299 I

O t h e r.....................

6,849 4.474 I

Total.........................

78,472 97.981 DEFER RED DEBITS-Unamortized debt expense...........................

3,076 2,841 I

t l

TOTA L................................................ 52.330.201 52,078,445 See Notes to Financial Statements.

18

7 r

CAPITALIZATION AND LIABILITIES 81 80 (in 7housands)

CAPITAllZATION:

Common stock, no par value, authorized (50,000,000 shares; issued and outstanding. 81,807,100 shares in 1981 and 75,746,400 shares in 1980 (Note 2)... 5 538,900 $ 498,900 Retained earnings (Note 3).........

76.995 65,209 Total common sharebolder's equity.

615,895 564,109 Preferred stock, without sinking iund (Note 2)........

145,882 145,882 Preferred stock. with sinking fund (Note 2)...

121,381 121,381 Long-term debt (Note 3).

1.001,209 828,989 Total.

1.884,367 1.660.361 CURRENT LI AlllLITIES:

Notes payable (Note 5):

llanks.

37,059 44,293 Commercial paper.

20.000 Currently maturing long-term debt..

2,267 52,162 Accounts payable:

29.068 28,015 Associated companies....

Other.

50,471 38,372 Customer deposits.

19.445 16.368

'linxes accrued.

11,924 12,099 Accumulated deferred income taxes (Note 6).

(457) 8,259 Interest accrued...

24,669 20,833 Dividends declared.

25,539 23,882 Other......

2.2 79 811 Total..

222,264 245.094 DEFERRED CREDITS:

Accumulated deferred income taxes (Note 6).............

98,951 91,744 Accumulated deferred inwstment tax credits (Note 6).....

90,469 47,360 Other.

26,620 26.888

' Intal...

216fM0 165.992 RESERVES:

)

6,136 5,905 Property insurance....

Injuries and damages.

1.3%

l.093 Total..

7.530 6.998 CONINilTNIENTS AND CONTINGENCIES (Notes 4,7 and 9)

TOTAL.,

................ 52,330,201 52,078.445 See Notes to Financial Statements.

19

STATEMENTS OF CIIANGES IN FINANCIAL POSITION For the years ended December 31,1981,1980 and 1979 81 80 79 (In Thousands)

FUNDS PROVIDED BY:

Operations:

Net income....

5124,469 5100,676 5 65.129 Depreciation....

43,619 42.513 40.863 Amortization of property losses...

4,101 Deferred income taxes and investment tax credit adjustments-net...

41,600 20,471 10,8 %

Allowance for funds used during construction (Note IF).

(48.529) 149.520) (45.853)

Total funds provided from operations...

161,159 i14,140 75,135 Other:

Allowance for funds used during construction (Note IF).

48,529 49.520 45,853 Investment in associated company.

Decrease in working capital *.....

860 31.524 30,063 Aliscellaneous-net.

4,033 979 Total funds provided, excluding financing transactions.

241,212 19M,616 121.968 Financing transactions and other:

Common stock...............

40,0X) 70.000 75,000 Preferred stock...

28,391 128,063 First mortgage bonds.

175.000 50,000 100,000 Other long-term debt......

975 4.572 11.458 Short-term securities..

23;766 8,918 Sale and leaseback transactioris......

24.771 j

Total funds provided from financing transactions and other...... 239.741 186.652 314,521 Total funds provided...........

... 5480,953 5385.268 5436.489 FUNDS APPLIED TO:

l Utility plant additions:

j Construction expenditures for utility plant.

. 5320,925 5259.979 5280,346 Nuclear fuel......................

(11.343) 15.175 Other-net.

4,121 1,7%

Total gross additions (includes allowance for funds used during construction).............

309,582 279.275 282,142 Other:

Dividends declared on preferred stock..........

28,366 24,883 16,749 Dividends declared on common stock....

84,136 69,110 52.673 Investment in associated company.......................

6,020 16,195 Increase in working capital'..................

7,136 hliscellaneous-net...

687

'lotal funds applied to other................

I19.209 93,993 92,753 d

Financing transactions:

Retirement of first mortgage bonds.............

50,000 9.900 Retirement of other to:1g-term debt.......

2.162 2.100 1,879

{

Repayment of short-term securities...........

59.715 Total funds applied to financing transactions...

52,162 12,000 61.594

' Intal funds applied................................ 5480.953 5385.268 5436,489

'%rking capital escludes short-term securities, current maturities and deferred tases included in current liabilities. The 1%I net decrease in working capital is primarily due to a decrease in deferred fuel costs and to an increase in accounts payable. The 19N) net decrease m workmg capital is primarily due to the increases in disidends declared, tases accrued and accounts payable, while the 1979 net increase is primarily due to increases in accounts receivable and deferred fuel costs, reduced by an increase in accounts payable.

1 See Notes to Financial Statements.

Ju l

Notes to Financial Staternents for the years ended December 31,1981,1980 and 1979

1. Summary of Significant Accounting Policies A. System of Accounts by the regulatory bodies for rate-making purposes. Invest-The accounts of ti.e Company are maintained in ac-ment tax credits alk)cated to the Company are deferred cordance with the system of accounts prescribed by the and amortized based on the average useful life of the re-Louisiana Public Service Commission (LPSC) which sub-lated property beginning with the year allowed in the stantially conforms to that of the Federal Energy Regulatory censolidated tax return.

Commission

• E Allowance for Funds Used During Construction H. Hesenues To the extent that the Company is not permitted by its l

The Companv records revenues as billed to its customers regulatory bodies to recover in current rates the carrying on a cycle billin'g basis. Revenue is not accrued for energy costs of funds used for construction,it capitalizes, as an delivered but not billed at t e end of the fiscal period.

appropriate cost of utility plant, AFDC which is calculated h

The rate schedules of the Company include fuel adjustment and recorded as provided by the regulatory system of clauses under which fuel costs above or below the levels accounts. Under this utility industry practice, construction allowed in the various rate schedules are permitted to be work in progress (CWIP) on the balance sheet is charged billed or required to be credited to customers.

and the income statement is credited for the approximate The Company defers on its books fuel costs in excess net composite interest cost of borrowed funds and for a of base rates until these costs are reflected in billings to reasonable return on the equity funds used for construction.

customers pursuant to the fuel adjustment clause.

This procedure is intended to remose from the income statement the effect of the cost of financing the construction C. Utility Plant and Depreciation program and results in treating the AFDC charges in the same manner as construction labor and material costs.

Utility plant is stated at original cost. The cost of As non-cash items, these credits to the income statement additions to utility plant includes contracted work, direct labor and materials, allocable overheads, and an allowance have no effect on current cash earnings. After the property for ihe composite cost of funds used during construction is placed in senice, the AFDC charged to construction costs

( AFDC L The costs of units of property retired are removed is recoverable from customers through depreciation pro-visions included in rates charged for utility service. Effectise from utdity plant and such costs plus removal costs,less salvage, are charged to accumulated depreciation. Ntainte.

Niay 27,1981, the Company used an accrual rate of 3%

nanc'e and repairs of pniperty and the replacement of items on its investment in Waterford No. 3, a nuclear generating unit scheduled for operation in 1983, up to an investment of determined to be less than units of property are charged to 51,260.000.000, and an accrual rate of 9.40% on the re-operating espenses. Substantially all of the utility. plant is maining CWIP and any investment in Waterford No. 3 in ex-subject to ihe lien of the Company's Stortgage.

cess of $1,260,000,000 in accordance with a rate order Depreciation is computed on the straight-line basis at l

rates based on the estimated senice lives of the various from the LPSC. For the period January 1,1980 through Slay 26,1981, the Company used an accrual rate of 5%

classes of property. Depreciation prosided on aserage de.

on a portion of CWIP in the amount of $736,180,000 in

~

preciable pn>perty amounted to appnnimately 3.4% in 1981 accordande with a December 1979 LPSC rate order, and and M% in 1%0 and 1979.

accrual rates of 8.31% through N1ay 26,1981 and 7.9%

k D. Pemion Plea in 1%0 on the balance of CWIP. The accrual rate was 6.94% for 1979.

'I he Company's pension plan is non-contributory and cosers substantiidly all employees. The Company's policy The Company's policy is to continue to capitalize AFDC on projects during periods of interrupted construction when is to fund pension cost accrued.

i such interruption is temporary and the continuation can be l

E. Income Tases justified as being reaso'nable under the circumstances.

The Company joins its parent in filing a consolidated G. Resenes Federal income tas return and income taxes are allocated to the Company in proportion to its comribution to the The Company provides reserves for uninsured property consolidated tai liabilitv.

risks and for claims for injunes and damages through charges Deferred income tases are pnnided for differences be.

to operating expense on an accrual basis. Accruals for these tween book and taxable income to the extent permitted reserves have been a!! owed for rate-making purposes.

I 21

2. Preferred and Comm<m Stock i

Preferred stock at December 31.19XI and 19N) consisted of the folkwing:

4 Shares Authorized at Shares Outstanding Current December 31.

at December 31, Call Price Cumulative,5100 Par Wlue 19XI 1981 19N)

Per Share Without sinking fund:

4.96% Series.

N)JXX)

N)JXX)

N)JXX)

SitM.25 4.16% Series.

70fMX) 70Jxx) 70JN M) 144.21 4.41% Seriet 70JMX) 70J N O 70JMM) l(M.06 4

5.16% Serie%...

75)Mio 75jux) 75ftX) 104.18 l

5.40% Seric..

N),1X X) 80JXX)

N)JKM) 103.(M) 6.44% Series.

N),000 80jxX)

N)JX10 102.92 9.52% Series....

70JXX) 70JKO 70JXX) 106.58 7.84% Series..

1(X),(X O 100,0ix) 100JXX) 105.74 7.36% Series.

l(X)JXh) 1(X)JXX) 100JXX) 105.20 M.56% Series.

100jXU 100JWX) 1(X)JMX) 107.42 9.44% Se:ict.

3(X)JXh) 3(X)JKX) 3(OjMX) 111.44 t

ll.4S% Series.

3N)JNX) 3N)JNx) 3N)JWx) 113.9M Ltal.

1,455JXX) 1.455JXX) 1.455JX X)

Uniwued.

3fM5fMW) i Total.

4,Nx),tx o 1,455Jxo 1,455Jun 1

Cumulative. 525 Par Wlue With sinkmg fund:

10.72% Series.

2,400fXX) 2,400JXX) 2,400JXX) 27.68 13.12% Series....

1.N)oJXX) 1,NX)JXX) 1.600/XX) 28.28 15.20% Series..

1.200j)IN) 1,200Jn) 1,200JMO 28.80 Total.

5,200,000 5.200JX)0 5.200fXX)

Unissued.

6,800Jn)

Total..

. 12/W),000 5.200/XX) 5.200Jn) i981 1980 i

lin Thoustmds)

Without sinking fund:

Stated at 5100 a share.

.. $145.500 5145.5(0 Premium.

382 382 i

T.tal preferred stock and premium, without sinking fund.

. 5145.882 sl45.XM2 With sinking fund:

Stated at 525 a share.

. 5130J100 s t30,0tX)

Issuance espense..

48.619 e 18.619) j Ltal preferred stock and iwuance expense, with sinking fund.

. 5121.3XI 5121 381 The 10.72%.13.12% and 15.20% preferred stock issues been redeemed, 120.000,80,000 and 60,000 shares, respec-are each subject to a sinking fund pursuant to which the tively, at a nrice of $25 per share plus accumulated and Company is obligated to redeem, out of funds legally unpaid divioends.

l amilable therefor, commencing on July 1.1984. October The increases in the number of shares of Common and l

1.1984 and November 1,1985, respectively, and ending Preferred Stock outstanding during the three years ended in the year in which all of the shares of said issues haw December 31,1981 were as follows:

4 4

~.

i Year Ended December 31.

19M1 19N) 19',

Common Stock shares sold...

6.060.7(X) 10.606.400 Il.3MJMM)

Sl(M) Preferred Stock shares sold..

350/XX) 525 Preferred Stock shares sekt.

1.20)JW N) 41XM)JXX)

The Company has received authorization from the has been made with the SEC for the purpose of obtain-Securities and Exchange Commission (SEC) to sell ing authorization to sell 550,000.000 aggregate par value 15.152JXX) shares of common stock, no par udue, to its of preferred stock in April 1982.

parent company for $1(X),(XX),(XX) during 1982. A filing

3. long. Term Debt Long term debt at December 31,1981 and 1980 consisted of the folkming:

31 19N) ein Thousands)

First N1ortgage Ilonlis:

5 50AXX) 5 50.000 9%% Seiies due 1983...

IMJXX)

IMJXX) 3%% Series due 1984.

75fMX). 75.ux) 9 % Series due 1986.

20fuX) 203XX) 4%*. Series due 19M7...

15%% Series due 19M8.

50,0 X) 50fXX) 45JXX) 45fMX) 10%*. Series duc 1989.

5 % Series due 1990.

20fXX) 20.000 753NX) 16 % Scries due 1991.

100.000 16%% Series due December I,1991....

25fXX) 25JXN) l 4%% Series due 1994.

35J)00 35.000 5%% Scrics due 1996..

16JXX) 16fXX) 5%% Series due 1997.

IMJXX) 18JXX) 6%% Series due September 1.1997....

35JXX) 35.000 7%% Series due 1998..

25.000 25.000 t

9%% Series due 1999.

20fXK) 201XX) 9%% Series due 20X).

25.000 25JXX) 7%% Series due 2(M)l..

253XX) 25JXX) 7%% Series due 2002.

251XX) 25.000 l

7%% Series duc November l.2002.

45.000 45JNM) j M % Series due 2(X)3.

45.000 45fXX)

M%% Series due 2004.

40fXX) 40fXX) 8% S Series due 2006..

60fXX) 60fXX) l 10 % Series due 20(1M.

55JXX) 55.0fC l

13%% Sesles due 2009.

947JXX) 772.000 l

Total First Ntortgage Bonds...

l-Other:

Principal amount of municipal raenue bond obligations.1%%8% due serially 19M3-20fM. and other future I

39.154 41.421 obligations under operating agreements.,

Ibtlution control and industrial deselopment rewnue txmd obligations. 6.40%-M% due 19M8-2009.

16.300 16.300 1256 a1.000)

Less: Amounts held by trustees.

55.429

%.721 Total Other (1.220 t 26M Unamortiied premium and discount on long-term debt-net.

51 f)01.209 5M2M.9M9 Total long-Term Debt..

t

.- ~..,,.

Sinking fund requirements on First Mortgage Bonds and maturities under long-term debt instruments, in effect at December 31,1981 for the years 1981 through 1986 are as follows:

year Sinking Fund

• Maturities" tin Thousands) 1981.

57,720 552,162 1982.

7,720 2.267 1983.

1984.

9 470 52,350 8,790 20,462 1985.

8,790 2.549 1986.

8.(M0 77,675

' Sinking fund requirements may be satisfied by certification of property additions at a rate of 167% of such requirements.

• • lt is anticipated that First Mortgage Hond maturities will be refinanced at maturity.

The hfortgage, which is presently more restrictive than The Company has made a filing with the SEC for the the Articles of Incorporation, contains prtwisions restricting purpose of obtaining authorization to sell 575fXX)JKX) the payment of dividends or other distributions to common principal amount of First hjortgage Bonds in the second stockholders. At December 31,1981, 562,873,000 of quarter of 1982.

retained earnings was free fmm such restrictions.

l l

l

4. Commitments and Contingencies The Company's construction program contemplates ex-have covenanted and agreed, severally in accordance with penditures of approximately 5413,600,000 in 1982, 5270,-

their respective shares of ownership of SFI's common 900,000 in 1983 and $290,800.000 in 1984.

stock, that they will take any and all action necessary to The Company has a 33% interest in System Fuels, Inc.

keep SFI in a sound financial condition and to place SFI (SFI), a jointly owned subsidiary of the four operating in a position to discharge, and to cause SFl to discharge its subsidiaries of hliddle South Utilities, Inc. SFl operates obligations under these arrangements. At December 31, on a non-profit basis for purpose of planning and imple-1981, the totalloan commitment under these arrangements menting programs for the procurement of fuel supplies amounted to $221,022,000 of which 5163,637,000 was out-for dl of the operating companies; its costs are primarily standing at that date. Also SFrs paient companiet including recowred through charges for fuel delivered and services the Company, haw made similar conwnants and agreements rendered.

in connection with long-term leases by SFl of oil storage The parent companies of SFI haw made loans to S.FI and handling facilities and coal hopper cars. At December to finance its fuel supply business under a loan agreement 31, 1981, the aggregate discounted value of these lease dated January 4,1978, as amended January 1,1982, which arrangements was $58,307,000.

provides for SFI to Imrrow up to $327JXX)JX)0 from its 5F1 has entered into a contract with a joint wnture for a parent companies through December 31,1982. As of supply of coal from a mine to be developed in Wyoming, December 31,1981, the Company had loaned $28,155,000 which is expected to provide 150 to 210 million tons over

(

to SFI pursuant to this loan agreement and the Company's a period of 26 to 42 years: the coal supplied is expected to be share of the unased loan commitment was 5110,30ijXJ0.

used at a future Arkansas Power & l.ight Company Power Notes under this agreen.ent mature December 31,2007.

Plant. SFrs parent companies, including the Company, each in addition, the Company had loaned SFl $13,995,250 actint n accordance with their respectim shares of owner-i under previous loan agreements. Notes mature in 10 and ship of offs common stock, joined in, ratified, confirmed 25 years fron-date of borrowing under the provisions of and adopted the contract and obligations of SFl thereunder.

the previous hxm agreements. hlaturities in 1982 0f 52,788,250 The Company, together with the other hiiddle South are expected to be refinanced as part of the amended System operating companies,is obligated under agreements January 4,1978 agreement.

(NISE Agreements) with h1iddle Scuth Energy,Inc. (htSE) 1 In connection with certain of SFI's borrowing arrange-in accordance with fixed percentages specified therein to ments, SFI's parent companies, including the Company, make payments or subordinated advances adequate to 24

coser all of the operating expenses and certain of the the Company, hiississippi Power & Light Company, and capital costs of 51Sli and, in return is entitled to receive New Orleans Public Service Inc., in proportion to such a share of the power available to SISli from the Grand Gulf allocations, have agreed to a2ume and hold Arkansas Plant. I he Company's percentage responsibility and re-Power & Light Company harmless from all of the responsi-lated entitlement under the A1Sli Agreements is 26.9%

bilities and obligations of that company under the h1SE T hrough 19XI, 52.2 billion had been expended by N1Sli Agreements and.in consideration thereof, Arkansas Power on the Grand Gulf Plant's two units, the first unit of

& Light Company has relinquished its rights in the Grand which is scheduled for commercial operation in February Gulf Plant and the energy therefrom.

19X3. Under certain circumstances, the Company may be The Rderalincome tax returns for the years 1971 through required under the A1Sli Agreements to make its share 1976 have been examined by the Internal Revenue Sersice i

i of advance power purchase payments of $12.5 million and adjustments have been proposed. The principal issue per month commencing January 2,1984 if the first unit of is whether customer deposits are includible in taxable the Grand Gulf Plant has not been placed in commercial income. Formal written pmtests have been filed cnd con-operation by December 31,1983.

fererees are being held with Appeals Officers of the liffective November 1981, the System operating com-Internal Revenue Sersice, Any final liability for taxes re-l panies entered into a reallocation agreement to revise the sulting from settlement with the internal Revenue Service fixed percentage allocations for Unit No. I and Unit No. 2 would not have a material effect on net income. Income of Grand Gulf to be as follows: the Company,38.57% and taxes on customer deposits would be normalized. hiost 26.23% h1ississippi Power & Light Company,31.63% and of the other issues haw been settled and adequate provisions 43.97% and New Orleans Public Service Inc.,29.2 and have been recorded.

29.Nr%, respectively. Under the reallocation agreement, l

5, IJnes of Credit and Short.serm Horrowings At Decembcr 31,1981,Ihe Company had $28,585.000 in ihe end of 1981 and 1980 5190,800,000 and $223,000,000, lines of credit with Louisiana banks. Additionally, the respectively, under the consolidated lines of credit. Com-Company has joined with the three other hiiddle South pensating balances, required by certain of these lending System operating companies in establishing 5243,000,000 banks, were 58,910J000 at December 31,1981 and 57,128,000 in consolidated lines of credit with banks outside the h1id-at December 31,1980.

die South System service area. The Company may bornnv The Company has receiwd authorization from the SEC any portion of these lines subject only to its maximum to have outstanding at ary one time through June 30,1982 authorized level of short-term borrowings. The aggregate short-term tmrrowings (bank loans and commercial paper) amounts of the unused lines of credit with Louisiana banks aggregating not more than the lesser of $190,000,000 or

(

at the end of 1981 and 1960 were 525,726,500 and 514,292,500, 10% of the Company's capitalization (approximately respectively. The operating companies had available at

$183,000,000 at December 31,1981).

l The short term borr wvings and the applicable interest rates (determined by dividing actual interest expense dur-k ing the year by the average amount borrowed) were as follmvs:

Year Ended December 31.

1981 1980 1979

.. 5106,442,500 5131,750.000 5114,627,500 Maximum aggregate amount outstanding.

Aserage 1 ornming:

. 5 44,463,000 5 92.302,000 5 52,773,000 llank loans.

. 5 27.544,000 5 9.604,000 5 29,503.000 Commercial paper.

Aserage interest rate during the period:

llank loans.

17.6%

14.7 %

12.1%

17.6 %

13.7 %

11.5 %

Commercial paper.

Aserage interest rate at end of period:

llank loans.

14.1%

20.8 %

15.3%

b Commercial paper.

14.1%

25

_ ~_

1 J

J i.

1 i

6. Income Tases Income tax expense is composed of the following:

1981 1980 1979 (In Thousands)

Current:

Federal...

. 511,495 5 8.627 5 106 State.

10,320 5,926 (3)

Total..

21,815 14,553 103 I

Deferred-net:

Liberalized depreciation...

6,020 7.269 7,674 Difference between book and tax gains and losses on sales of property.

250 (4,949) (1,986)

Deferred fuel cost...

18,715) 969 7.289 Other..

936 (1,7%) (1,062) 9 Tntal...

(1 SIN) 1,493 11,915 Insestment tax credit adjustments-net...

43,109 18,978 (1,019) 1 Recorded income tax expense...

.... 563,415 535,024 510,999 3

Charged ro operations...........

.... 577.197 548,141 522.750 Credited to other income.....

.... (13,782) (13.117) (11,751) l Recorded income tax expense..

.... 63.415 35.024 10.999 income taxes applied against the del I component of AFDC.

14,0M9 16,717 14.189 i

Total income taxes.

... 577,5N $51.741 525,188 i

i Total income taxes differ from the amount computed by applying the statutory Federal income tax a te to income before taxes. The reasons for the differences are as folkms:

19! i 19NO 1919

[

%of Pre-Tax

% of Pre-Tax

% of Pre-Tax Amount Income Amount income Amount income Computed at statutory rate..........

586,427 46.0%

$62,422 46.0%

535,019 46.0%

Increases (reductions) in tax resuhing fmm:

Allowance for funds used during construction.

(22.323)

(11.9)

(22,779)

(16.8)

(21,092)

(27.7) l Taxes capitalized on teoks and deducted on tax returns.....

(13)

(0.0)

(1.795)

(1.3)

(1,797)

(2.4)

Tax savings due to filing a consolidated return...

(4.300)

(2.3)

(4,500)

(3.3)

State income taxes net of I'ederalincome tax effect..

5,484 2.9 3,088 2.2 650

.8 Other-net.

(1,860)

J,LO)

(1,412)

M)

(1,781)

M)

..... 63,415 33.7 35.024 25.8 10,999 14.4 Recorded income tax expense....

Income taxes applied against debt component of AFDC...

14/189 4.7 16,717 8.1 14.189 p.5 Total income taxes..............

... 577,5N 38.4 %

$51,741 525,188

_E9*/.

33.9 l

Unused imestment tax credits at December 31, 1981 carried forward through 1992, 524,269,000 through 1993, i

amounted to 540.523,fxX) of which 59.992,000 may be and 56.262fXX) through 1996.

i i

i 7.I. eases The Company accounts for leases on the same basis'as Rental expense amounted to apprmimately $4,839,000, that used by its regulatory authority in the rate-making 51,519,000 and 51.204fXX)in 1981,1980 and 1979, respectiwly.

pmcess which determines the revenues utilized to recover The Company has SEC authorization to lease nuclear the lease costs, fuel up to $105JXX).dX). Lease payments, based on nuclear On October 30,1980, the Company entered into a sale fuel use, will be treated as cost of fuel. The lease, unless and leaseback of certain office buildings and related real sooner terminated by one of the parties, will continue pmperties. A gain of $13,438,000 has been deferred and is through 5 e 1,2028. The unrecowred cost base of the being amortized over the life of the lease. The lease is for lease at l>ecember 31,1981,1980 and 1979 was $94fr78,000, a primary term of 20 years and requires minimum annual 559,400.000 and $13,425,000, respectiwly.

rentals of approximately $2.996,000 through 1985 and Other lease commitments are not significant.

53,307,000 thereafter.

2ei

i 2

8. Transactions with Affiliates The Company buys electricity from and sells electricity Operating rewnues include rewnues from sales to afhliates ounting to 531.915JMX)in 1981,546,778.0(X)in 19N)and to Ihe operating subsidiaries of hiiddle South Utilities,Inc.,

a

[

its parent, under rate schedules filed with the Federal Energy 529.366JXX) in 1979. Operating expenses include charges Regulatory Commission. In addition, the Company purchases from affiliates for fuel ost, purchased power, and techni-i fuel from SFI and receises technical and adsisory services cal and adsisory services totilling 5516,3M)JXX) in 1981, I

from hiiddle South Sersices,Inc.

SMI,981JXX)in 19N) and 5166,373fXX)in 1979.

l

9. Propowd Consolidation l

On July 31,1981. it was announced that,in the interest and other approvals, the two companies will be consoli-of increased economic efficiency, the Company and New dated into a new company to be called Louisiana Powu &

Orleans Public Service Inc. INOPSI) have jointly begun Light Company. Niiddle South Utilities, Inc., which cur-i deselopment of a plan to consolidate the two companies rently owns all the outstanding common stock of the Com-and their operations. It is anticipated that the consolida-pany and NOPSI, would own all the common stock of the tion will become effective in 1982. Under the proposed new company, arrangement, subject to the receipt of necessary regulatory l

10. Pemion Plan During 1981 the companies of the Niiddle South System by the new actuary did not vary significantly from these selected a single trustee for all of their retirement plans.

used by the previous actuaries.

The plans' assets were traasferred or assigned to this new The pension expense of the Company for 1981, 1980 trmtee who assumed responsibility for pension payments to and 1979 was $7,008JXX), 55.M6.000 and 54,654,000, retirees. Responsibility for management of the plans' assets respectively, which includes amortization of past service remained with the then existing investment managers until cost over periods of up to 25 years. A comparis(m of the the beginning of 1982 when additional managers were re-actuarial present value of accumulated plan benefits and tained. In addition to this master trust arrangement, the plan net assets for the defined benefit plans is presented t

companies also selected a single actuary to perform the bekw. This comparison was determined in accordance with l

necessary actuarial valuations for the individual company the pmvisions of Statement of Financial Accounting Stan-plans beginning with the January 1,1981 valuation. Other dards No. 36 which requires the use of certain assumptions than the change in the assumed rate of return noted bekw, which are different from those used by our actuary in ihe actuarial assumptions and accounting methods utilized determining an appmpriate lew! of funding for the Company.

/

January 1 l

1981 1986

\\

(In Thousands)

Actuarial present value of accumulated plan benefits:

537,783 545.290 Vested.

Nons ested.

5.775 2.7b6 Total.

543,558 548.076 i

562.9 %

$56.184 Net assets asailable for I;lan benefits.

.i l

'I he weighted awrage assumed rate of return used in change in the assumed rate of return is the principal cause determinirg the actuarial present values of accumulated for the decrease imm 1980 to 1981 in the actuarial present plan benetits was 9% in 1981 and 6b% in 19N). This values of the plan benefits.

V e

t r

27 y

5

II. Quarterly itesults { Unaudited)

Unaudited operating results for the four quarters of 1981 and 1980 folknv:

Quarter operating Operating linited Resenues income Net income tin I hocando 1981:

March.

5224, % 4

$27.626

$25.N)7 June.

233.06X 30,979 28.835 Seinember.

374,114 58,176 43,947 December.

2X5.615 36.354 25,8N) 19h0:

March.

IM,921 25.47X 21,697 June.

169,310 21,315 15,772 September.

273.717 40.050 3(Q63 December.

245,575 29,45M 26.M4

'I he business of the Company is subject to seasonal interim period should not be considered as a basis for fluctuations with the peak period occurring during the estimating the results of operations for a full year.

sunuuer months. Accordingly. earnings information for any

12. litfect of Inflation on Operations (Unaudited)

The folkming supplementary information about the from historical cost in nominal dollars. Regulation limits effects of changing prices on the Company is pr nided in the recovery of fuel costs through the operation of adjust-accordanee with the requirements of $tatement of Financial ment clauses or adjustments in basic rate schedules to Accounting Standards No. 33, " Financial Reporting and actual costs.

Changing Prices". It should be siewed as an estimate of the As prescribed in Statement of Financial Accounting effects of changing prices, rather than as a precise measure.

Standar is No. 33, income taxes were not adjusted.

Constant dolla amounts represent historical costs ad-The regulatory commissions to which the Company is justed for the effects of general inflation. The effects are subject alknv only the historical cost of plant to be recosered determined by conserting these costs into dollars of equal in resenues as depreciation. Therefore the eseess of plant purchasing pimer using the Consumer Price Indes for all stated in terms of constant dollars or current cost oser Urban Consuniers (CPI U).

the historical cost of plant is not presently recoverable in Current cost amounts reflect the changes in specific rates. This excess is reflected as a reduction to net recoser-prices of property, plant and equipment from the year of able cost. While the rate-making process gises no recognition acquisition to the present. The current costs of property, to the current cost of replacing property. plant and equip-plant and equipment, which represent the estimated costs ment, the Company believes, based on past esperiences, of replacing esisting plant assets, are determined by ap-that it will be allowed to earn on the increased cost of its plying the llandy-Whitman Indm of Public Utility Con-net in estment when replacement of facilities actually occurs.

struction Costs dlWil to the cost of the survising plart by

'Ib properly reflect the economics of rate regulation in year of acquisition. Land and certain other plant assets the Statement of income from Operations presented below.

v hich are not included in llWI were converted using the the reduction of net property, plant and equipment to net cpl-ll recowrable cost is offset by the gain from the decline in

'I he difference between current cost amounts and con-purchasing power of net amounts owed. During a period stant dollar amounts results from specific prices of property, of inflation. hoklers of monetary assets suffer a loss of plant and equipment Ias menured by the llWil changing general purchasing power while holders of monetary liabil-at a rate different from the rate of general inflation tas ities esperience a gain. The gain from the decline in measured by the cpl-U).

purchasing power of net amounts owed is primarily at-The current year's depreciation expense on the constant tributable to the substantial amount of debt w hich has been dollar and current cost amounts of property, plant and used to finance property, plant and equipment. Since the equipment were determined by applying the reported de-depreciation on this plant is limited to the recovery of l

preciation rate of Ihe Company to the indesed amounts.

hiuorical costs, the Company does not hase the opportunity The cost of fuel used in generation has not been restated to realize a holding gain on debt.

28

Sassement of locome from Operations and Other Financial Data Adjusted for Effects of Changing Prices for the Year Ended December 31,1981 (In Thousands)

As Reported in Adjusted for Adjusted for the General Changes in Financial inflation Specific Prices Starements (Constant Dollars) (Current Costs)

Revenues *..

51,117,761 51,I17,761 51,117,761 (921J)07)

(921 f)07)

(921,007)

Operating expenses (excluding depreciation)*..

(43,619) 194,050)

(108,408)

Depreciation.

(9M,626)

(1,015,057)

(l 029,415)

Ltal operating expense.

153,135 102.741 88,346 Operating income.

Other income'.

56,171 56,171 56,171 Interest & other charges *.

(84,837) 184,837) i84,837)

Income from operations (excluding reduction to net recoverable cost)".

5 124,469 5 74,038 5 59,680 increase in specific prices (current costs) of property, plant and equipment held during the year"*.

5 310,172 5 (119,919) 199,628)

Reduction to net recuserable cost.

(316,105)

Effect of increase in general price level..

Excess of increase in general priec level tner increase in specific prices after reduction to net rectwerable cost.

(105,561)

Gain from decline in purchasing power of net amounts owed..

125/162 125J)62 5

5,143 5 19,501 Net.

• Assumed to be " average for the year" dollars and thus are not restated.

" Including the reduction to net recoverable cost, the loss from operations on a constant dollar basis would have been $45,881,000 for 1981,

'"At December 31, 1981, current cost of property, plant and equipment net of accumulated depreciation was 53,977,618,000 w hile historical cost or net cost recoverable through depmeistion was 52,202,225,000.

Fise-Year Comparium of Selected Supplementary Financial Data Adjusted for Effects of Changing Prices (in Thousands of Average 1981 Dollars) 1981 1980 979 1978 1977 OPERATING REVENUES.

51,117,761 5942,057 5698,512 5636,216 5568,740 tilVIORICAL COST INFORNIATION ADJUSTED FOR i

GENER AL INFLATION income from operations (excluding reduction to net recoserable cost).. 5 74,038 5 61,624 5 27,375 Net awets at year-end at net recoverable cost.

5 595,985 5594,672 5577.550

(

CURRENT COST INFORNIATION Income from operations (excluding reduction to net recoverable cost).

5 59,680 5 51,005 5 26,184 Excess of increase in general price lesel(wer increase in specific prices after 5 105,561 5171,356 5189,102 reduction to net recoserable cost..

Net assets at year-end at net recoserable cost.

5 595,985 5594,672 5577,550 GENERAL INFORNI ATION Gain from decline in purchasing power of net amounts owed.

5 125.062 5167.081 5175,219 272.4 246.8 217.4 195.4 181.5 Aserage consumer price index.

NOTE: SFAS No. 33 requires that historical cost information adjusted for general inflation and current cost information be provided for 1979 and subsequent years. Comparable information is not readily available for the years prior to 1979 and thus is not pnnided.

4

RECORD OF PROG" :SS 1911-1981 1981 1950 1979 Estimated population served..

1,585,000 1,553.(XX) 1,509,000 Electric customers-year end Residential..................

469,998 457.191 443,527 Commercial..

50,574 48,617 46.848 Industrial..

6,655 6,846 7,162 Other....

3352 3,250 3,173 Total electric customers...

530,579 515.90 500,710 Electric operating revenues (5000)

Residential...

. 5 341,555 5 265,080 5 180J M Commercia!..................

IM,653 123,656 85,983 Industrial.

525,349 358,177 212,853 Other........

86,234 106,610 78.276 Ltal electric operating revenues.

51,117,761 5 853,523 5 557,476 KWil sales (millions)

}

Residential....

6,405 6,398 5,996 Commercial................

3.016 2,876 2,721 Industrial.....

?3,067 11,963 11,388 Other.....

1,6 M 2,708 3,147 Total sales...

24,152 23,945 23,252 Residential customer data Aserage annual use-KWil...........

13,791 14,177 13,758 Awrage annual revenue per KWil.

5.33e 4.14e 3.01c

)

Commercial customer data Average annual use-KWil........

60,669 60.129 59,363 Average annual revenue per KWil...

5.46c 430c 3.16e Peak System demand (N!W)..

4.256 4,078

~,091 4

System input (KWil in millions)

(

Generation....

15,471 16,440 18,429

\\

Purchased power...........

9,745 8,670 5,860

(

Total system input...

25.216 25,110 24.289 Fuel cost for generation (5000)..

.. 5 356,786 5 296,820

$ 190,226 Generating capability (N1W).

4,625 4,625 4.612

\\

lleat rate-HTU Per KWil generated.

10,681 10.753 10,625 Operating income (5000)......

.5 153,135 5 116,301 5 73,861

)

Net income (5000).....

124,469 5 100,676 5 65,129 Gross electric plant (5000).

... 52,6M,000 52,319.246 52,069.106 Total assets (5000).

... 52,330.201 52,078,445 51,842,365 Capitalization (500t))

Long-term debt......

. 51,001,209 5 828,989 5 827,430 Preferred stock, with sinkin fund...

121,381 121,381 92,990 Preferred stock, without sin ing fund.....

145,882 145,882 145.882 Common equity.

615,895 5M,109 487,441 1

Total capitalization..

. 51,884,367 51,660 361 51,553,743 Employees-gar end...

2,499 2,M2 2329 y

m

t 1978 1977 1976 1975 1974 1973 1972 1971 1,455jxx) 1,345jxx)

I,3(MJ)00 1,250JNx) 1,225jxx) 1,187,000 1,150,000 1,130JXX) 427,938 395,479 384,213 366,242 356,479 346,088 334,375 318,740 44,884 40,096 38/332 36,166 35J)l4 33,839 32,608 31,254 7,518 7,651 6,586 5,824 5,424 5,733 6,333 5,872

.5j u4 2,770 2,634 2,496 2,425 2,313 2,2 47 2,167 483,384 445,996 432,065 410,728 399,342 387,973 375.563

_358,033 5 146,326 5 124,500

$ 93,712 5 87,819 5 85,791 5 78,809 5 71,622 5 61,292 68,328 55,398 42,505 39,789 38,092 34,049 30,793 27,384 141,N)3 114,874 77,278 M,386 65,2M 53,453 44,827 37,682

_ 94,918 84,179 117,782 72,850 53 # )5 43,085 34,980 27,285 5 456,375 5 378,951 5 331,277 5 2M,844 5 242,752 5 209,3 %

$ 182.222 5 153,M3 5,862 5,334 4.597 4,346 3,956 3,951 3,6M 3,105 2,624 2,268 1,965 1,852 1,671 1,5%

1,468 1,298 9,685 9,028 MJ)68 6/dx) 6,133 5,823 5,215 4,482 4 s41

__ 4,322 6,921 6,359 6,788 6,627 5,576 4,565

{

22,712 20,952 21,551 19,157 18,548 17,997 15,923 13,450 1

14,063 13,680 12,328 12,028 11.249 11,594 11,220 9,941 2.50c 2.33e 2.(Mc 2.02c 2.17e 1.99c 1,95c 1.97c N),498 57,502 53,115 51,940 48,447 47,986 45,865 42,286 2.N)e 2.44c 2.16c 2.15c 2.28c 2.13e 2,10c 2.lle 3,852 3.515 3,1 N) 2,883 2,692 2,563 2,389 2,096

(

21,251 20,2(4 21,541 18,931 17,904 17,832 15,768 12,807 2,799 1,901 1,077 1,154 1,594 1,034 1,145 1.4M 24.050 22,105 22,618 20,085 19,498 18,866 16,913 14,271

(

) 168,117 5 141,236 5 135,211 5 85,134 5 76,846 5 56,597 5 41,760 5 27,878 4,603 4,447 4,392 4,346 3,569 3,481 2,580 2,654 10,185 10,202 10,036 10,198 10,345 10,198 10,105 10,199 5 69,310

$ 62,556 5 59,053 5 59.629 5 59,146 5 52,636 5 46,400 5 39,678 5 53,744 5 44,406 5 39,277 5 43,695 5 40,886 5 36,946 5 32,226 5 26,182 51,792,952 51,509,785 51.309,439 51,172,911 51,077,798 5 933,393 5 826,139 5 729,0M 51,557,157 51,298,7 il 51,158,262 51,051,242 5 946,933 5 814,275 5 719,120 5 621,639 5 728,748 5 566,315 5 575 N)9 5 519J)88 5 468,987 5 389,186 5 -342,197 5 292,197 1 IO,NN 110,809 N),776 80,776 80,776 70,760 70,760 60,720 417,192 363,763 332,725 307,361 247,174 235,276 208,914 177,768 51,256,749 51JMO,887 5 9S9,310

$ 907,225 5 796,937 5 695,222 5 621,871 5 530,685

(

2,216 2,129 2,118 2,1G4 2,089 2,090 2,003 1,962 31

l i

DIRECTORS I

.s fu

[

1 g

p f-

/

\\

-o

.s o

t

?

, W 7

u "a

1.

James N1. Cain liarry 51. England

• Tex R. Kilpatrick*

Fh d W. Lewis 3

New Orleans, tousunna Meimir:c. Loumana

%cu M inn e. louisiana New Oricans Louivana 1

Prewlent. New Orleans Pubhc Prcudent. Coastal Canning Preudent. Central Amernan Chauaun of the thwrd and i

r Serswe Inc.

I-nrerpriws. Inc.

Lafe losurance Compem

( ha f I s taw a rr M=Lile l

E E. A. Ihlrigue

11. Duke Shackleford' W. Clifford Smith

• J. 51. Wyat t Ilarahan toutuana lh ensia. L.ousuana Itouma. Louisaana New Orleans. lounaana RetircJ Agrwultural interests IWudent. T ILkcr $nuth & Son l'rcudent of the Companv t 75'l,?:lLMCi"rzil the ( onapan, j

DIRECTORS E31ERITUS 1

e s

[n n

(M v

,. 3 3

g n

e Charles J. Cassidy Donald B. Fiske G. C. Rawls W. O. Turner lloit41 usa. L.ousuana

( hek (inew. Lousuana New Orleans. tousuana New Oricant Louswana Chaseman of the 'h ard. E erst Retired flownewman, kirmer Revered Retired State Ibnk and Iruu Cornpam thrector of the Company hirmer Chief Faccussw Officer hirmerChief f v;utswOfhcer of the Company of the Compan, I

DIVISION

"" m%]

l MANAGERS c

V e

i i

J. Q. Cipriana J. J. NicCloskey, Jr.

C. E. Vaughan, Jr.

Manas Manager Vwe Prcudent - thvwon

%cu Bank Ihsiuon Southeavern thuwin Manager.

Northern thuuon

• Met er of Audit Commarec 32

r i

f I

i l

()FillCEltS ANI) I)El%ItTMENT llEAI)S r

I I N1 us.itt (L 1) N1c t.cndon l). l.. Aswell K. N1. IlrumfiJJ l

n... i..,

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