ML20054K707

Annual Financial Rept,1981

ML20054K707
Person / Time
Site:	Fort Calhoun
Issue date:	06/28/1982
From:	Reznicek B, Spence G OMAHA PUBLIC POWER DISTRICT
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Omaha Public'P.d,w'er DistrictM %. ~

SERVING THE ENERGY-NEEDS OF EASTERN NEBRASKA K y

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Executive Offices Electnc Building 1623 Hamey Street Omaha. Nebraska 68102 Trustees Morgan Guaranty Trust Company of New York. New York.

1;wr York ( 1952. 1954. 1956. 1957. 1958. 1961. 1966.

t od *. and 1969 Bonds)

The Ny+ hem Trust Company. Chicago. Ilknots ( 1972.1973.

1975 Series A and B.1976 Series A and B. and 1977 Series A B. and C Bonds)

Paying Agents The Bank of New York. New York. New York (1975 Senes A Bonds)

Morgan Guaranty Dust Company of New York. New York.

New York (1952.1954.1956.1957.1958.1961.1966.1968 1969.1972.1973.1975 Series B.1976 Senes A and B and 1977 Senes A. B. and C Bonds)

Continental nlinois National Bank and Trust Company of Chicago. Chicago. Illinois (1952.1954.1956.1957.1958 1961.1966.1968. and 1969 Bonds) 1he Northem Trust Company. Chicago. Illinois ( 1972.1973 1975 Senes A and B.1976 Senes A and B. and 1977 Senes A B. and C Bonds)

First Northwestem Tmst Company of Nebraska. Omaha.

Nebraska General Counsel Fraser. Stryker.Vecch Vaughrt Meusey. Olsort Boyer &

Bloch. PC.. Omaha. Nebraska

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About in. e=r The illustrutton on the cover of

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this report indicates the diversity of creas served by the

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^"".',N Distnct The strength of the

- f, L 'e Distnct lies in the vanety of custornerowners-residentici.

tann. rutcl. commerc3cl and g

industnal-who use above-average amounts od electocity

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1981 Highlights Contents 3

Operating Revenues 1981 Highlights Operating revenues for 1981 were $222.546.000, a President's Report....................... 4-5 decrease o! S4.468.000. or 2 0%. from 1980 operating Directors........

5 revenues of S227.014.000 General Manager's Report.

.............6-7 1981 Operations Review......

. 8-13 Operation and Maintenance Expenses Serving the Energy Needs of Operation and maintenance expenses for 1981 were Eastern Nebraska.................... 14-15 S135.772.000. an increase of S467.000. or 0 3%. over 1980 Assistant General Managers............

. 16 operation and maintenance expenses of $135.305.000-Financing.................

17 Not Operating Revenues Balance Sheets.' '..... *.'***.

18-19 Net operating revenues, before depreciation. were Statements of Net Earnings and Accumulated

$80.374.000. a decrease of S5.144.000. or 6 0%. from 1980 Earnings Reinvested in the Business 20 n:t operating revenues of S85.518.000.

Statements of Changes in Financial Position.... 21 Not Earnings Reinvested in the Business Notes to Financial Statements.

22-23 Net eamings reinvested in the business totaled'S6.686.000.

Supplementary Statement of Earnings a decrease of S2.800.000. or 29 5%. under 1980 net from Continuing Operations camings reinvested in the business of 59.486.000 Adjusted for Changing Pnces.........

24 Supplementary Five-Year Companson of General Business sales Selected Financial Data Adjusted for General business sales to Distnct customers were the Effects of Changing Pnces.

24 5.001.938.000 kilowatt hours in 1981, a decrease of Notes to the Supplementary Financial Data 141.936.000. or 2 8%. from 1980 sales of 5.143.874.000 Adjusted for the Effects of Changing Prices.. 25 lclowatt-hours Net Receipts and Debt Service Coverage.

25 Electnc System Revenue Bonds Outstanding. 26-27 Average Number of Customers 1981-1980Componsons................

28 The Distnct served an average total of 214.787 customers Electric Statistics.

29 in 1981, an increase of 2.940. or 14%. over the 1980 Mid-Continent Area Power Pool.

30 average total of 211.847 customers OPPD Service Area Map..

. 30 Division Managers and Executive Stat!.....

31 Average Residential Use Average annual use per residential customer in 1981 was 9.579 kilowatt-hours. a decrease of 819. or 7 9% from the 1980 average of 10.398 kilowatt-hours The average annual residential use by OPPD customers was 9 0%

above the national average of 8.789 kilowatt-hours as computed by the Edison Elertnc Institute Average Residential Cost The Distnct's residential customers paid an average of 4 25c per kilowatt hour dunng 1981 compared to 3 39c per kilowatt hour in 1946. OPPD's initial year of operation.

OPPD customers paid 24 4% less than the national average of 5 62c per kilowatt-hour as computed by the Edison Electnc Institute 1981 Construction Expenditures Expansion and improvement of system facilities dunng 1981 required construction expenditures of S45.424.000 e

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PRESIDENT'S REPORT I

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~ secretary of the District and i

~~y Although inflation accounted for significant increases in the is chairman of the Legislative cost of.tll operations last year.

Committee. John P Munnelly is

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emphaus on cost-control aided in the finalyear of a six-year l

term and is a member of the our financial position. Many

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utihties throughout the nation Legislative. Public Information, f

reduced services. curtailed and Finance and Insurance j

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construction activity. levied Committees.

large rate increases. and In May 1981. Bemard W.

Reznicek was oppointed t

implemented other stringent cost-control measures to general manager of the Distnct.

l maintain financial stability He succeeded Lloyd C. Shalla

- t Slower load growth was a who resigned the position for i

health and family reasons Mr common problem among electnc utilities in 1981. A warm Reznicek began his OPPD career in 1958 and advanced winter and cool summer in our service area last year. plus through many management l

conservation. were major positions to assistant general l

reasons for a 25 percent managerin 1977 and was

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decline in total energy sales.

designated chief financial The fact that we satisfied the operating officerin 1978 He demands of our customers. at a held an executive position cost far below the nationa]

with another utility from May 1979 to Apnl 1980 when he average. is good reason for retumed to OPPD.

J confidence and optimism about Mr. Shalla continues to serve with the Distnct as assistant I

the future Dunng 1981. two Board members completed their 11st general manager in charge of year on the Board Keith B specialprojects AllBoard j

Gene P. Spence'aha Public Edquist and Richard P. Jeffnes.

members are grateful that we 4

have the advantage of Mr President of Orn Mr Edquist, who represents Power Distnct.

customers in the south sub-Shalla's experience President. Wes'ern Secunties Animpodant event in 1981 division. was elected treasurer Cornpany Ornaha was the S22.500.000 settlement of the Distnct in February 1982.

He is chairman of the Audit and of a suit with Westinghouse Few years have been as the Finance and Insurance Electric Corporation that resulted from the Distnct's 1977 challenging and exciting as Committees.

decision to cancel a second 1981 in the utility industly While Mr Jeffnes represents nuclear unit at the Fod Calhoun i

inflation. lower revenues. and a customers in Omaha He Station The settlement was drop in sales, plus increased is chairman of the Personne]

in the best interest of the Distnct regulation, adversely offected Committee the financial status of utihties Frank J Hogan. my and completed alllitigation across the country. a wave of predecessor as president, resulting from the cancellation optimism is also evident Many served as District president the Although not as dramatic. but positive changes at Omaha last fouryears Iwant to very important to the Distnct's future. was the initiation of our Public Power Distnct resulted personally thank Mr Hogan for from the challenges we faced his candor and gentlemanly hrst strategic plan The plan will i

help the Distnct chart the path dunng the past year that will conduct dunng my tenure on the Board He added dignity to of its future as a pnncipal make the Distnct a stronger.

more progressive utihty in the the position of president which energy source for the Midlands over the~ next two decades. Such f

future as we assume an active I hope I will not diminish Mr role in serving the energy needs Hogan has accepted an planning gives those of us of eastem Nebraska For that appointment as chairman of the working for you a direction for i

the future. which can be reason. I am proud to present Construction and Additions changed and revised as needs our 1981 Annual Report to Committee for the coming year change. Nonetheless. it helps us Govemor Charles Thone. the Michael F Egan. former to understand more present Nebraska Legislature. o!!1cials of Distnct secretary. was elected thinking as to our future needs the State. counties. and vice president at the January 14.1982 Board meeting and is Our utlhty experienced a communities we serve. our decline in sales growth in 1981.

bondholders. and the citizens also se_rving as chairman of the who own us in our 13-county Pubhc laformation Committee Although many factors affect j

Mary Ahc s Race was elected sales growth. the utthty industry service crea 4

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is highly weather-sensitive and billings The second hve percent Many of the challenges we mild temperatures played a increase became effective faced in 1981 seve' rely tested dramatic role in the reduction cf with Apnl 1982 billings. The two our financial stabi'lty However.

electricity sales in 1981.

increases are expected to budgets were cut <md belts The District's sales ate an produce S16.900.000 in were tightened in all areas of extremely important element in additional revenue during 1982.

operation in an effort to reduce determining our overall We also anticipate 1982 expenses Somechanges financial situation. but sales by increases in the fuel and implemented in IC81 offered no means tell the whole story A production cost adjustment to immediate financial relief and major monetary drain has total approximately $13.100.000 long-range plans for 1982 and been the growing cost of above the 1981 level.

beyond will ensure that our modifications to meet In spite of the November rate customers continue to receive regulatory requirements at the increase, residential. form.

reliable service at the lowest Fort Calhoun Station Since 1974.

and rural customers paid an possible cost. Although the cost we have spent over S23.000.000 average of 4 25 cents per of energy will continue to be on modifications at the station.

kilowatt-hour for electricity in volatile. I'm confident that we A total of $9.700.000 is budgeted 1981. 24 4 percent below the are prepaled to counteract for 1982 modifications national average of 5 62 cents.

such volatility and improve our The first of two five percent At the same time, average financial position as we work to rate increases approved by the consumption among our serve the energy needs of i

Board in August 1981 became residential customers was 9.0 eastem Nebraska.

effective with November 1981 percent above the national We are looking forward to a i

average.

successful 1982 and pledge our continued efforts to keep our Directors electric rates substantially below the nationalaverage while continuing to direct management to implement

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responsible economies and solid fiscal planning for the near and long-term benefit of the N

citizens of our service crec I

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Gene P. Spence President Michael F. Egan.

Mary Alice Race.

Keith B. Edquist.

Vice-President. President.

Secretary. Retired Weasurer. President.

I Egan Enterpnses.

Veterans Admirustration.

Husker Hawkeye Fremont Omaha Distnbuting Co. Inc..

Omaho/ Bellevue r

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Frank J. Hogan.

Richard P. Jeffries.

John P. Munnelly.

l Board Member Retired Board Member Board Member Mutual et Omaha.

Executive Vice-President.

SC Manager / Postmaster Omaha Godfather's Investments.

Omaha Inc. Omaha 5

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i GENERAL MANAGER'S REPORT Change was a key word Kenneth S. Fielding was l

in 1981 for Omaha Public Power appointed assistant general j

District and the utihty industry manager in charge of at large. Many changes that Employee Relations. Materia!

OPPD expenenced last year Management. and closely mirrored the national Management Systems Services.

scene and can be traced to A former OPPD division events of the mid-1970s.

manager. Mr Fielding's business Following a penod of rapid and utihty experience will be growth and prosperityin the a great asset as we work to late '60s and early '70s, the meet eastem Nebraska's energy utihty industry eased into a new

needs, l

era triggered by the oil Our three major generating l

embargo of 1973. Fuel pnces facihties-Nebraska City. North j

skyrocketed. load growth Omaha and Fort Calhoun slowed. and utilities were faced Stations-operated very with increased govemment efficiently during 1981 to meet i

regulation The likehhood of record peak customer demand.

l continued inflation and A new system peak load of l

regulation and the possibihty of 1.382.400 kilowatts was

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increased transportation rates estabhshed July 14 for coalwill continue to impact Our coal-fired Nebraska City the cost of energy Station. the Distnct's largest Many positive changes were generating unit. completed its j

evident throughout the Distnct second fullyear of operation in i

during 1981. In addition to our 1981. Despite a problem with i

cost-cutting programs and the electrostatic precipitator efficient operations. a system. Nebraska City Station comprehensive strategic produced 2.977.400.000 planning process was initiated kilowatt-hours of electncity or 45 Bemard W Reznicek General Manager.

Ornaha Pubbe dunng the past year The percent of the Distnct's Power Disinct consulting firTn of Theodore total generation.

Barry & Associates was retained Because of the precipitator Our senior management to work with us on the problem and our efforts to team. in cooperation with the developrnent of this plan. The comply with federaland state Board of Directors. took many strategic planning process will clean air standards. we were aggressive steps in 1981 aimed enable us to more accurately forced to restnct the output of at combating inflation.

read and respond to our ever-the 585.000-kilowatt facihty to 60 improving operations. and changing environment. The to 70 percent of capacity strengthening cur financial plan itself will be the basis for dunng the year position We also proceeded our future direction and goal-Unsuccessful efforts to energetically to comply with setting processes. It will also be correct the precipitator system i

sinngent govemment safety and used to develop and implement resulted in a lawsuit in 1981 I

environmental regulations specific operating plans at all agamst the contractor.

relating to our generating levels of the corporation manufacturer, and design l

plants. Progress was also made In addition. we strengthened engineers to recover costs We i

dunng the year to develop our management team with the are continuing our effcris to J

and implement our strategic oppointment of Lloyd C ShcIla improve precipitator j

plan. a comprehensive and as special assis+ ant general performopce through the formal method of managing manager His expenence as chemical treatment of coal and change and our future general manager and other equ'pment modifications knowledge of operations The Fort Calhoun nuclear gained in over 30 years with the station also achieved on District will contnbute to our outstanding performance growth and development in the record in 1981. producing future as he directs special 2.137.000.000 kilowatt-hours or projects 32 percent of the Distnct s 6

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total generation. The station was and with no refuehng scheduled This report shows that 1981 taken off hne in September for during the year, the plant will was an eventfuland scheduled refuehng. main-play an even greater role in our challenging year for Omaha tenance, and modifications.

1982 energy picture. The Public Power Distnct. We are Completion of more than 100 station is scheduled to produce proud of our performance modifications required by the approximately 55 percent of record and are very optimistic Nuclear Regulatory Commission our total generation in 1982 and about our future in eastem~

during this period extended the will continue to be a workhorse Nebraska. We are acutely scheduled outage time to for Distnct customersin the future.

cware that we must manage three months improvements in our our future to continue as a Since Fod Calhoun Station transmission and distribution responsible and rehable utility began operations in 1973.11 has system in 1981 included As we look to 1982 and the

, produced 44 percent of the construction of two substations future. it is clear that emphasis District's total generation and an and completion of 15 miles of a must be placed on reinforcing January 1982 the plant 161.000-volt transmission line.

our financial position. effectively echieved a record 486.300-Along record of innovative allocating our resources. and kilowatt capacity and beneficial soilconservation meeting future generation Our 629.600-kilowatt North practices at District substations needs. Economic conditions that Omaha Power Station was and other facilities was prevailed in 1981 and the again a rehable source of recognized in 1981 when we adjustments that were necessary electncity in 1981. The five coal-received the Papio Natural to reduce the effects of nsing fired generating uruts produced Resources District's annual costs underscored the need for 1.554.400.000 kilowatt-hours of urban conservation award-prudent planning to achieve electncity last year. 23 percent Active employee support in our short-and long-term goals of our total generation.

1981 for management decisions That will be accomphshed A 100-car unit coal train went to reduce spending was a major through careful and constant into service in 1981 at the Nodh factorin the success of our cost-evaluation of OPPD systems and Omaha plant to ensure timely cutting programs Employees methods of operation. by and sufficient coal dehvery 'lhe will be called upon for support anticipating changes among train is expected to save an again in 1982 as we continue our customer-owners and within estimated S1.000.000 annually in our fight against inflation as we the industry. and byinitiating transpodation costs focus on our strategic plan, and changes needed to meet our At OPPD. we anticipate a as we work to serve the energy goals. As in the past. our balance between coal and needs of eastem Nebraska.

pnmary goals for the future will nuclear power to meet future OPPD continued its be to maintain a strong increases in customer demand.

commitment to affirmative financial position, satisfy the Evidence of our commitment action and equal opportunity energy needs of our customer-to coolis the 1.214.600-kilowatt placement in 1981. For owners. and carefully plan for generating capacity of our example. of all employees hired future recuirements-coal-fired facilities at North in 1981.10.3 percent were Omaha and Nebraska City An minonties in clerical and craft 7

estimated 45 percent of our total positions In addition.176

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generation in 1982 will come percent of the females hired last from the two stations. despite year were placed in non-shutdowns at both facihties for traditionaljobs The impact of scheduled maintenance this program is important to Contracts with westem mines OPPD and our customer-owners.

Bemard W. Resnicek guarantee an adequate supply and future plans call for our General Manager of coal through the year 2000.

continued support of this We also enjoy on enviable program-position in the industry with regard to our Fort Calhoun nuclear station Fort Calhoun has been a consistently efficient and economical source of energy for our customer-owners.

7

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1981 OPERATIONS REVIEW e

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A renewed spint of 4

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i Public Power Distnct's 1.819 employees contributed to the

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District's successful effoits in 1981 f.

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with a dependable supply of

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electncity Employees in all of ge the Distnct's divisions also ga worked closely to hold costs 11 1

down last year. which allcreed y

j the District to reduce the in: pact j

of inflation Increased govemmental regulation and a dechne in sales were common problems j

among utihties in 1981. Those problems decreased revenues l

and, in some cases. resulted in a reduction of services and lower credit ratings At OPPD. however.

rate increase action by the Boc d of Directors brought some rehet to the financial situation.

Steps taken to reduce costs included emphasis on I.ine Dispatcher Tem Mensik is part of a team on duty around the clock to keep a increased efficiency in all watchful ere on the District's traraminion and distribution system to ensure Distnct operations Another customeromrs a reliable suppir of electricity.

measure was the January 1982 decision to borrow $55.000.000 quahty of service to our new loads connected dunng through the sale of short term customer-owners. Emphasis is the year totalopproximately I

electric revenue notes The being placed on the continued

$4000.000. OPPD is excited interest rate for the notes is 9 5 use of the computerized about its growlh potential and is i

percent Proceeas from the de Md' a Mem sWW a 'eMe b hew financial planning system to manage the energy future of ote tha m ured developed to project the eastem Nebraska.

March 12.1982. The remaining Distncrs fmancial rieeds. Ms toolis used to forecast revenues -

Fuel Costs Increase S25.000.000 will be used for other corporate purposes.

The impact of inflation in 1981 and operating and construction was evident in all aspects of including long-term capital costs and serves as a guide for atim most me@

improvements Moody's the efficient operation of in the cost of fuel The Distnct Investment Service assigned the the i notes a MIG 1 credit rating. the spent S77.399.000 on fuellast i

H e given to highest rating possible year. an 8 2 percent increase programs designed to boost h

{53 Balanced Budget sales to all classes of customers P rt of e reason In view of the expected dunng o!!-peak hours. Efforts for higher fuel costs in 1981 was continuation of nsing costs in all will also continue in 1982 to the extended outage at the areas of operations. one of our expand the District's present economfcal nuclear-powered most important goals in 1982 commercial /industrialload by Fort Calhoun Station to will be to operate within a attracting new industry complete plant modifications balanced budget Adherence to As in the past. the Distnct will required by the Nuclear this basic business prmciple will continue to work closely with Pegulatory Commission (NRC) ensure more sinngent control of local and state officials to attract u G G

spending and contribute to new customers into our 5.000 e Dst

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ed to improved efficiency square-mile service area More the coal-fired Nebraska City Long-term savings are than 300 new all-electric homes and North Omaha generating anticipated from reduced were added in 1981. bringing stations This increased use of construction and streamhning the total to over 16.000 The coal added to overall fuel costs services without sacnficing the estimated annual revenues from f

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the year 2005 call for continued annual growth but at a lesser rate. and for below the 7 0 percent which OPPD averaged l

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dunng the more predictable a

1960s and early 1970s Since 1977, an econometnc j

l model has been used to project l

T sales and peak demand L

Currently in the process of being converted to an "end-use" method. the model allows the l

Distnct to use a more detailed approach to relate energy sales to specific uses of energy and population growth

, s, Load Study Continues Because of the key role OPPD expects to play in the energy future of eastem Nebraska. an expenmentalload management program. initiated in 1978. was I

continued in 1981 to study the electncalusage habits of volunteer residential customers The coal bucket wheel reclaimer, which transfers the coal onto the converer at th*

Through this program. the fir braska City Station,is capable of moving 3.500 tons or 35 carloads of DistnCl Controls and monitors the use of major electnc appliances and air conditioners Data collected in 1981 will Although increased load Construction Budget Low growth is anticipated in 1982.

With no generating facihties help the Distnct assess the overall fuel costs are estimated under construction in 1981, the potential of applying load to be S65.308.000. more than construction budget was management techniques on a S12.000.000 below 1981 figures established at S47.302.000 for system-wide basis Use of load Lower fuel costs will be realized projects designed to improve management equipment could through increased prcduction at existing Distnct facilities and help postpone the need for the nuclear-powered Fort customer sennces construction of a new l

Calhoun Station and reduced The 1982 construction budget generating racinty Partial I

production at our coal-fired of $45.391.000 is the lowest in funding for the load generatmg facihties recent years !! includes management project from the However. the cost of both coal extensions to our transmission Department of Energy will and nuclear fuelis expected to and distnbution system.

cease in June 1982 Because of nse as much as 30 percent in additions to District substations.

the potential benefits of load the next three years The Distnct the fust phase of a three-year management. however, the has contracts for uranium program to convert our mobile expenment will be continued ennchment services to the year communications to an 800-through the summer of 1983 i

2002 for the Fort Calhoun megahedz radio system.

Continuation of the load i

Station Coal contracts for the improvements at generation charactenstics. study is also j

Nebraska City Station ensure an facilities. and additional expected to provide valuable i

l cdequate supply of low-sulfur mod 111 cations ordered by information forload forecasting i

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Wyoming coal through 1998 An the NRC.

cost of service, and electnc i

additional coal contract for the Although the slowerload rate design Previously hmited to Nodh Omaha Power Station growth in 1981 was a major residential customers. the mns through September 1984.

concem. annual growth study was expanded in 1981 to with the option of a five-year forecasts pomt to lower but include commercial and extension consistent load growth in the Industnol customers future An average annualload

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increase of approximately 3 2 percent is forecast for 1982 through 1985 Forecasts through 9

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i Utilities Cooperate As an active member of the Nebraska Power Association I

(NPA) the Distnct is working closely with all Nebraska utlhties to ensure the most efficient and 1

economical production of i

electricity to meet customer demands in the future. The NPA's pnmary goalis to determine the f,

generating capacity of the state.

what generation additions are scheduled, and the best plan for

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production of electncity on a

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statewide basis i

A recent NPA study concluded that Nebraska utihties as a l

I whole will need additional generating facihties to meet a j

projected increase in the j

demand for electricity

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To meet shod-term energy demands. the study indicated

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Nebraska utlhties should l

concentrate on interconnections with other utihties and Installation in 1981 of the computer <xided design (CAD) system operated by Junior construction of a coal-fired Engineer Henry Preciado, will help modernize the development, storage, and L

generating unit retrieval of engineering drawings and is expected to reap substantial savings for l

l Although OPPD is not directly the District.

I involved in the Nebraska Pubhc Power Distnct's Mandan The average OPPD residential A significant dechne in the project--a 500-kilovolt customer used 9.579 kilowatt-demand for electricity among transmission line between hours in 1981. a 7.9 percent many interconnected utihties in Manitoba. Canada and decline from the 1980 cverage the Midwest accounted for a northeastem Nebraska-of 10.398 kilowatt-hours The 19.9 percent drop in revenue preliminary studies have shown drop of 819 kilowatt-hours in from sales to other utihties to that the annual purchase of up 1981 was primanly attributed to

$40.003.000 That compares to to 225.000 kilowatts by the reduced air conditioner use the 1980 figure of S49.931.000 Distnct could reap economic dunng the cool summer l

s ner benefits in the 1990s OPPD has However. despite the lower g and ma n enance gone on record in support of the sales, a new system peak load expenses in 1981 totaled project. which is scheduled for of 1.382.400 kilowatts was

$135.772.000. only up slightly completion in the late 1980s estabhshed on July 14 dunng a over the 1980 figure of j

brief hot spell. That surpassed S135.305.000 The smallincrease l

Cogeneration Policy Adopted the previous peak load record was attributed to the District's Following a pubhc meeting.

of 1.348A owans set oW abihty to hold costs down in all the Board of Directors adopted 14.1980 areas of operation.

pohcies to govem cogeneration and the addition of small Revenues Decline Net eamings reinvested in the electncity-producing fac1hties Total electnc operating business m 1981 totaled within the Distnct's service crea.

revenues for 1981 were S6.686.000, a dechne frcm the The Public Utihty Regulatog

$222.546.000. which is S4.468.000 1980 totalof S9.486.000 The Policies Act of 1978 required or 2 0 percent less than the 1980 drop in eamings reinvested m utihties to estabhsh the pohcies revenues of $227.014 000 the business was a reflection of General business revenues the dechne in revenues s

from commercial and industrial Debt service coverage. the en da ong customers in 1981 rose 60 ratio of net receipts to the debt residential. farm. and rural perced to SmM.000.

sace on Ws outstanding customers in 1981 was a major compared to 1980 revenues of was 142 at the end of 1981. the reason for the drop in sales S91.806.000 lowest since the current bond resolution was adopted in 1972 10

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g g 4.h V -

Interest in standard 1zmg state t ~

~.,

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1. e and federal regulanons

?

concerr.ing nuclect and

'r

~

^

environmer.tal pclicles 1 ~ -

-g3 i.

1C

^

4 Many projects at the Fcrt

' "~

.f 1

Calhoun Station m 19e: were g

g' ',

')

• .,1-v%.

required by the NRC Those f

projects included modincations C.,.

i 3

of pipe suppods to mee'

• A.

seismic cntena changes in a._

~

• 4

.i W*, _.,

T,.

1., h-

. f

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safety equipment and th:>

f.

..- s.;

?f Instrumentation the adincr. cf Morth Omaha Power Station Machinist Clit! Baldwin (left) receives assistance from Installaflon ct a radio cCntrolled Journeyman Machinist Del Grounke (far right) and General Electric representattve Siren alerting system within a Moe Pine during repairs on Unit No 5 at the coal fired facility ten mile area arour.d the plant The 95 stren aleMing systern has just one purpose and that is to A re 1u^tmn m treight rates A:. In-depth evaluation of our notify the public to tum on raic

!c r shiprner.! ct coal to the Fon Calhoun Station was or television for mic mm.lon Wt r nk. : '^1+y Stan ~'. resulted m conducted m 1981 by m the event of an emergency at funher ssrnngs ~! af r roximately the Institute of Nuclear Power 1

the F.o talhoun Statior.

24 a h. Dt K / nu: 11y Operations INPO, a non profit The vistnct purchased a c

l N.rg ' ate re Jre currently organizancn that estatlishes S3 000 000 computer system for ur. '1, r way with Burhng'cr.

standards for excellence m the the Fon c.alhour. Stanon which c

N. Nherr e dread which cperanor. of r.uclear plan!s The will assist Control roCrn an-a I

tr x s; rr al frarn 01h,ette evaluat:cr. concluded that 'he technical suppoM perscr r.e! In W n.mg n m.es t< the plant was bemg operatea safely dete'mming what actrr r nk. ; 1?y Sta'ior. tu a d?ust by ar. expenenced and u,

r snould be taken dunr.g ar a' rn r, rece: t freigh' rate quallfled prc>!essional sta!!

emergenci,lhe systern is a.,sc 1r r" se acticns are bemg taken tc l

required by the N, A,_

i

.he,.stn

'l'

.e: a Lsc impiernert reccmrnenactm.s a

nnaminonaia,OCba has been budgeted m ;.'-. ic mee, e mple'" 1 n. exchange o!

for improvements surmittea w

ur e um in its minal stage tcr by IN,FC-or ccmplete vancus N.< _-

vened uranium resu!!mg tr.

The NRt conducted a requiroments This mcm,.es.

e e n ' m ! s m/ m gs ct C; O T- 00(,

comprehensive appraisal of

,,,_, ^' -

^'

"'t sM-Fon Calhoun Station Refueled opera"~"s o' l'ho F"-"' ~clh"'u r' emergency cperancns h ::1*y 1

Stan c r' ' r' ' ' O c' ' t H c" ' "' "' e~ !c""

ter the nuc! ear f !ar

• whid will m

"'r c

inng th" sche iubwi

~ i c e r

• o "4' " " m' ' ' h s~

r"Irovemer k be located at the Norr :rnaha shut icwn at the FcP alhaar

~ '

appraisa! are temg a-idressea Power St nor The fac@y whd 9A' C M the ' ' i t' ;,

s. ty'o/ y

' I W11! alSc be used as ar asse mt b we-rere;! '"iand OFF t s Jr r.ual emergeni v.4 were > repes;' !.t > *

,.h e educa': 7. and tralr 'r.g cPr '+ "

dnl: at the F,en Calhoun Stan--

' ' w has w1!1 be equl; pea ic se r/- as '.>c

n.

w Js Con"ductFi Ir,uly IC !Pst s"y

'a u, ' ' !ast thrwh emergenri c rerancr.5 N:.ter 01stnnt emergency procedures e 'e m t.e r,A shoula ar. emergenri xcur T

.r under Simulated Con n ns : h" c

,ht p,.,

c.m a j h.

, a t,,m,,_

m.

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a

i i

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Emergency planning a

information was distnbuted 2

' t e "l in 1981 to all residences within a

' (-

,L 1.

j ~ ~7"3AliSI '~

1. i ten-trule radius of the Fort h

il f ~ i. ~

.~

k ~' '

Calhoun Station. As required by

. g{~.g 4 a

NRC directive, brochures were S

' ~

produced in cooperation with iy. f Yp state and local officials in

}g > -

f - (4 4

J

{

i Nebraska and Iowa to provide f'

s s

., 4;g y l

i information that will be usefulin the event of an emergenc'/ at 2 ' m. m = z :

.f

" mq g. -

l the Fort Calhoun Station.

1

J fa' Coal Fired Stations Reliable L

7-'

1'"i'#" ' M'.s '

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The Distnct's Nebraska City s' '

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Station achieved an outstanding 95 6 availabihty factor for the year which is an indication

'14 s of the unit's reliabihty and value

., t 1

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1

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i to OPPD Two 100-car unit coal trains 1~vf

.m

,s

[

owned by the Distnct deliver 4%*."

' ' ~

i cA

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coal to the Nebraska City

.a' i

[~# ' ',

a@.

Station During 1981.the trains

[ ~#

..s

(

dehvered 1.800.778 tons of low-pV

~.a.'* [' ? -~~

fy. f.

7./ i.

sulfur Wyoming coal to the s.,

t system operator Itichard Smith closely monitors the output of oPPD's generating l

station At year-end. the station units, which produced 6.667.800.000 kilowatt-hours of electricity in 1981.

had a coalinventory of 880.686 tons.

j North Omaha Power Station.

OPPD's largest generating Improvements to transmission enhanced the operation of the facihty, was used heavily in 1981 and distribution facihties Distnct's energy management j

during scheduled outages at throughout the Distnct are part system, which last year other major plants of an ongoing program to achieved an overall availabihty Scheduled maintenance was maintain a constant and of 99.5 percent.

l performed on the 102.000-rehable supply of electricity for OPPD's computenzed kilowatt Unit No 3 during the customer-owners.

maintenance relay file was j

year at the North Omaha Power Communication systems were completed during the year This Station Past performance improved throughout the Distnct file allows the Distnct to closely has shown that the Distnct s dunng 1981. New t tophone monitor the performance of the scheduled maintenance systems were instched at approximately 8.000 relays program extends the useful Nebraska City and Fort Calhoun throughout its 5.000-square-mile operating hfe of its Stations The cost for the new service area and perform coal-fired units systems. which are OPPD-owned quick maintenance when a The Distnct's 13 generating and operated. will be malfunction occurs units produced a total of recovered within two years in Installation of a computer-6.667.800.000 kilowatt-hours savings from rental fees A new aided design (CAD) system in compared to 6.581.800.000 emergency telephone switching 1981 improved the kilowatt-hoursin 1980 Of that system was installed at Electnc development. storage. and amount. 67 6 percent was Operations Headquarters which retneval ei engineenng generated from coal. 321 enables the Distnct to respond drawings Formerlya l

percent from nuclear. 0 2 more quickly to customer completely manual process.

I percent from natural gas. and outages. especially dunng significant savings are expected i

O 1 petcent from oil.

severe storms in manhours and costs required Construction Completed A significant improvement in to create and update drawings 1581 was the transfer of some Construction projects dunng Energy Audits Offered communication circuits from i

1981 included extensions and Home energy audits were leased lines to the Distnct s improvements to the Distnct's offered to customers for the first j

microwave system. resulting in time in 1981 as part of the transmission and distnbution reduced costs and improved system and additions to ReMeM Nemon i

rehabihty This trans!er to the Service Program (RCS) The I

l substations. plus modifications to microwave system has generating plants goal of the program. which is i

12

\\

the District's non-supervisory

/'

work force. with an estimated cumulative savings of approximately S2.500.000 by year-end.

Intemal operation reviews i

i i

were also continued to provide l

the recommendations for use of the most modem and effective 4- -

management techniques 3

throughout OPPD Substantial productivity improvements have resulted and early signs i

j indicate a significant savings s

over a period of time.

4 p: t a 9.o Employee Benefits Stressed y -

y.I ~ %

• /

.[

An important employee

' M2.

p benefit program was initiated in 1981. A deferred compensation "p

i plan was formulated to give

~ "

employees the opportunity to establish a personal retirement

,., M Q fund in addition to OPPD's

( ',. y h & p i

employee retirement fund Fast nd easy retri val of ents is one of the f es of the Kodak 50 emphasize education programs Microimage Terminal, operated by Tochinical Coder Mazy Pojat The sTstem, installed in 1981. is used for more ottictent records management at the District.

during 1981. Employee pcMicipation in the education assistance program increased part of the National Energy installation of a word processing 34 percent over the previous Conservation Policy Act is to center to assist employees in year. and numerous intemal promote energy efficiency and the compilation and storage of management and development conservation. After the program lengthy documents and seminars were also conducted was announced ir. March.

manuals. pnnianly for the Fort A resource library was also energy audits were offered to Calhoun Station. Plans call for developed as a first step toward 70.662 customels A total of 1.358 expanded use of the timesaving organizing a complete customers requested audits and equipment.

corporate resource and l.195 had been performed by education center year-end Customers are Work Force Management charged SIS for an audit and Expanded Energy Issues Emphasized The Distnct worked closely SIS for OPPD assistance in Further progress and savings selecting financing and were achieved in 1981 in the dunng the year with both contractors to make energy expansion of OPPD's Work Force federal and state legislators on issues involving the utility conservation improvements in Management program, their homes designed to improve the use of industry Heavy emphasis was District resources The program placed on energy issues and OPPD's role as a major energy Data Processing Studies was expanded to include 52 A thorough data processing percent of OPPD's non.

supplierin eastem Nebraska study was performed in 1981 supervisory work torce dunng l

that will form the basis for major the year and productivity innovations in the future The improvements have been noted study was conducted to identify in all creas where data processing growth plans implemented Annual savings of throughout the Distnct. with the over S t.000.000 have resulted l

goal of improving the overall from the program Plans for efficiency of operations An 1982 call for expansion of the early result of that study was the program to cover 80 percent of i

13

@ w y.EAD SERVING THE ENERGY NEEDE 1,

i ed Serving the energy needs of eastem

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E r l U

Nebraska.. not merely words. but a bold, g

4 {T j

r: 7 7 new attitude at the Omaha Public Power 4

g,y -7@}

lj i

District and a commitment to our

,g customer-owners.

1 i

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Dynamic social, economic, and political y

4" e-1

(;

changes in the last ten years have altered n

e, h

5[f [

the predictable environment that once g

g characten, zed planning and growth in the c

i er.

M 1

I Ei i

utility industry. These changes have forced

[

]

utilities to take a studied and professional j

[ yp look into the future, to critically evaluate s

plans for generation, growth, service, and

)

~ ultimately. evolution of their roles m _[

7 cs energy suppliers to that of l

L energy managers.

q This exciting new era of energy i

i g

management will have far-reaching p

{,'l

.a y

effects on both utilities and customers.

g=

At OPPD, for instance, recent

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=

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9'" 4 implementation of a strategic plan

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will assist Senior Management in j! g$

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t formulating an aggressive i

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qu s

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s j i I DqlM marketing plan to develop new i -

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j h

j; cvenues of growth within our 5.000-I d

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OF EASTERN NEBRASKA ff rx Active participation in the Mid-Continent Area g

,p.y y

l Power Pool (MAPP) and the Nebraska Power y

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Association (NPA) fosters a spirit of cooperation fj [

among Midwest utilities and provides valuable sewe the energy needs of eastem Nebraska in

• j

[V assistance that will be necessary to successfully f

d the future.

-- _=

Effective management of change is also a key

' **g element in the success of OPPD in the future.

g Management of change will be accomplished "y

)

through OPPD's strategic plan, a process of 3

anticipating events. evaluating potential impact.

I and developing specific actions to create y

desired results. The strategic plan is a modem,

,s i

professional, and essential method of managing our business and is the comerstone of the District's /

p i

future. The plan is a comprehensive and formal 5

E process. yet it allows flexibility in the pursuit g

of specific goals.

OPPD is an aggressive and up-to-date

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3 i

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utility with a strong commitment to growth i

M and quality sewice to our customer-owners wm j

at the lowest possible cost Our potential

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for growth in the future is a source of

=

optimism and enthusiasm as we work i

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j energetically to seme the energy needs 9-_

1 of eastem Nebraska.

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i ASSISTANT GENERAL MANAGERS F

Gerhardt P Bahle Kenneth S nolding DanielD Kelly William E. Miller Edon C. Pepe Lloyd C. Shalic l

nr:rMy7m'c

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s

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k II.<-tne OreraErs Ernploy+w Relat:or.s Customer ferr.ces Envimr.rnental Account:ng Special Ass: star.t Eng:n.4 nr.g Manapment Eystems Operations and Pegulatcry Ccrpc ate Ger.eral Manage.

Ee:vic + <

Gove rt. mental A tm:s Forecast.r.g and l

M_ren :1 A: tam fuels Analys:s M

r Irrn+ r.t Ett hc Pelat:cr.s F?cducticn Finance l

CTerat. ns Fir.cnc:c! Auit:ng i

System Flanr.:ng i

l i

i J

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4 L._

s In December 1946. Omaha Public Omaha Public Power District:

Power District funded the purchase of The We have examined the balance sheets Nebraska Power Company with a bank of Omaha Public Power District as of loan for S42.000.000 Revenue bonds were December 31.1981 and 1980 and the issued in February 1947 to pay off this related statements of net earnings and loan Since then. Sl.357.200.000 of accumulated eamings reinvested in the additional revenue bonds have been sold.

business and of changes in financial The District retired $10.290.000 of position fcr each of the three years in the revenue bonds in 1981. These retirements period ended December 31.1981. Our bnng the total of bonds redeemed and examinations were made in accordance refunded through 1981 to SS28.475.000.

with generally accepted auditing leaving an outstanding bonded debt of standards and, accordingly, included such

$870.725.000 at December 31.1981. The tests of the accounting records and such District has not issued revenue bonds since other auditing procedures as we December 1977. During 1981. S48.345.000 considered necessary in the circumstances-of interest expense was charged to In our opinion, such financial statements operations on outstanding bonds.

present fairly the financial position of the representing an average annual rate District at December 31.1981 and 1980.

of 5 5%

and the results of its operations and the In 1981. the District borrowed on its changes in its financial position for each existing revolving credit arrangement of the three years in the period ended resulting in the issuance of S30.000.000 of December 31.1981, in conformity with Electric Revenue Notes due September 11.

generally accepted accounting principles 1984 An additional $300.000 was consistently applieci during the period borrowed under the subordinated note except for the changes, with which we agreement which along with S220.000 concur,in 1979 in the method of borrowed in 1980is due December 31.

occounting for unbilled revenues and in 1990 Outstanding notes at December 31.

1981 in the method of accounting for 1981 totaled S60.520.000. In January 1982.

deferred production costs as described in the District sold $55.000.000 of 9M% Electric Notes 8 and 9 to the financial statements Revenue Notes due February 1.1985.

The proceeds of this issue will be used to pay off the S30.000.000 Electric Revenue

/

Notes due March 12,1982. with the

[4

'1 4x) gX/

balance being devoted to other corporate purposes. During 1981.

DELOl'ITE HASKINS & SELIS S3.056.000 of interest expense was Omaha Nebraska charged to operations on outstanding February 26.1982 notes. representing an average annual rate of 7 6%

Gross Electric Plant amounted to

$1.140.777.000 and Nuclear Fuel (at amortized cost) amounted to S145.397.000 at December 31.1981. Accumulated camings reinvested in the business increased S6.686.000 to a total of S327.914.000 dunng 1981 while total assets e

increased S28.486.000 to a total of

$1.347.001.000 17

l

+

.--e.

as

.re; yw em ~ t -7 7.~ m. -

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' '.,,' f,JZ., < '. '.

si 24 i.

ASSETS NOTES 1981 1980 (thousands)

UTILITY PLANT - At cost:

2.3.6 l

Electric plant (includes construction work in progress of $42.934.000 and $36.395.000. respectively).........

$1,140,777

$1.098.693 Less accumulated depreciation................

236,382 202.776 904,395 895.917 Electric plant - net.....

Nuclear f uel - at amortized cost.......

145,397 124.9f.6 1,049,792 1.020.883 Utility plant - net.......

CONSTRUCTION FUND.......

3 4,000 3.595 ELECTRIC SYSTEM REVENUE BOND FUND l

(Net of current)....

3 44,333 44.479 DEBT SERVICE FUND................

3 11,018 11.016 SEGREGATED FUND (See contra).

3 5,029 5.011 j

I CURRENT ASSETS:

Cash.

70 47 l

U.S Government Securities - at amortized cost which approximates market....

30,262 33.110 Electric System Revenue Bond Fund - current.

3 22,573 21.645 Accounts receivable - net..

16,374 16.610 Unbilled revenues...

8 8 200 7.200 l

Fossil f uels - at average cos!.......

29,018 35.550 Materials and supplies - at average cost.

17,720 17.026 Deferred production costs.

9 5,813 Other..

3,174 2.408 l

Total current assets.

133,204 133.596 DEFERRED DEBITS 4

99,625 99.935 i

TOTAL......

$1,347,001

$1.318.515 I

See notes to financial statements.

18

,, n s

u. -.w..-...

_...a..-._.

~...x m,~,_.

LIABILITIES NOTES 1981 1980 (thousands)

LONG TERM DEST:

2 Electric system revenue bonds - net of current:

Serial bonds. 2%% to 6% due annually from 1983 to 1999......

$ 265,025

$ 276.615 Term bonds. 5% to 6%% due at various dates from 1995 through 2017..

594,110 594.110 Total long-term bonds.........

859,135 870.725 Electric revenue notes due March 12.1982, variable rate..

30.000 Electric revenue notes due September 11.1984 variable rate.....

30,000 Subordinated notes due December 31.1990. 6%.....

520 220 Total.

889,655 900.945 Less unamortized discounts...

10,555 11.044 Long. term debt - net.

879,100 889.901 COMMITMENTS AND CONTINGENT LIABILITIES.....

6. 7 LIABILITIES PAYABLE FROM SEGREG ATED FUND (See contra)..

3 5,029 5.011 CURRENT LIABILITIES:

Current portion of long-term debt.

11,590 10.290 Electric revenue notes due March 12,1982, variable rate.

30,000 Accounts payable.

30,985 38.155 Accrued payments in lieu of taxes 5,496 5.287 Accrued interest..

20,324 20.434

()ther 679 491 Total current liabilities 99,074 74.657 OTi1ER LIABILITIES:

Nuclear fuel disposal costs.

32,197 25.178 Other 3,687 2.540 Total other liabilities 35,884 27.718 ACCUMULATED EARNINGS REINVESTED IN THE BUSINESS....

327,91,4 321.228 TOTAL,

$1,347.001 51.318.515 i

10

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b NOTES 1981 1980 1979 (thousands)

O PER ATIN G R EV ENU E S........................

8

$222,546

$227.014

$194.087 OPERATING EXPENSES:

Operation:

Fuel......................

77,399 71.531 59.608 Other production.

18,803 18.833 14.572 9

(5,813)

Deferred production costs................

Transmissior'......

1,321 1.251 1,164 Distribution.

6,451 6.179 5,488 Customer accounts....................

4,817 4.36E 3.942 Customer service and information...........

1,833 1.779 1.653 Administrative and generai 14,789 12.579 11.460 Maintenance 16,172 18.788 13.869 Total operation and maintenance 135,772 135.305 111.756 Depreciation 35,605 34.465 29.484 Payments in lieu of taxes..

6,400 6.191 5.252 Total operating expenses.

177,777 175.961 14(.492 OPER ATING INCOME...........

44,769 51.053 47.595 OTHER INCOME CREDITS (CHARGES):

Interest income.......

12,021 10,468 14.522 Allowance for funds used during construction...

807 875 7,648 Allowance for funds used for nuclear fuel 5,841 5.933 5.198 Amortization of cancelled project costs (4,610)

(4.598)

(3,437)

Other - net.....

(135) 11 2.657 Total other income credits - net....

13,924 12.689 26.588 EARNINGS BEFORE INTEREST EXPENSE.....

58,693 63.742 74.183 INTEREST EXPENSE,...............

54,658 54.256 54.542 EARNINGS BEFORE THE CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES.

8,9 4,035 9.486 19.641 CUMULATIVE EFFECT ON PRIOR YEARS (TO DECEMBER 31,1978 AND 1980 OF THE CHANGES IN ACCOUNTING PRINCIPLES):

For unbilled revenues...

8 6.100 For deferred production costs 9

2,651 IL T E AR NING S................

6,686 9.486 25.741 ACCUMULATED EARNINGS REINVESTED IN THE BUSINESS, BEGINNING OF THE YEAR.

321,228 311.742 286.001 ACCUMULATED EARNINGS REINVESTED IN THE BUSINESS, END OF THE YEAR.....

$327,914

$321.228

$311.742 PRO FORMA AMOUNTS ASSUMING THE NEW METHODS OF ACCOUNTING FOR UNBILLED REVENUES AND DEFERRED PRODUCTION COSTS ARE APPLIED RETROACTIVELY -

Net earnings

$ 4,035

$ 6.470

$ 19.161 20 See notes to financial statements.

/

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.ne-M w..a w 1981 1980 1979 (thousands)

SOURCE OF FUNDS:

Funds provided by operations:

Earnings before the cumulative effect of changes in accounting principles..............

$ 4,035

$ 9.486

$ 19.641 Cumulative effect on prior years (to December 31, 1978 and 1980) of the changes in accounting:

For unbilled rever'ues..

6.100 For deferred production costs...............

2,651 N et ea r n i n g s...................................

6,686 9.486 25,741 Charges (credits) to operations not affecting funds:

Depreciation 35,605 34.465 29.484 Amortization of nuclear fuel.......

15,473 10.679 12.769 Allowances for funds used (6,648)

(6.808)

(12.846)

Amortization of cancelled project costs......

4,610 4.598 3.437 Other-net..

4,192 3.207 5.713 Funds provided by operations 59,918 55.627 64.298 Proceeds from sale of notes..

30,300 220 30.000 Withdrawals from Construction Fund.

33.885 90.729 Withdrawals from Electric System Revenue Bond Fund.

146 268 59 Other-net 562 Total source of funds 90,364 90.000 185.648 USE OF FUNDS:

Construction expenditures-net 43,276 42.741 53.062 Nuclear fuel expenditures-net 17,265 15.144 35.524 Charges to deferred debits-net 12,631 730 37.101 Reductian of long-term debt.,.

41,590 10.200 9.915 Additions to Construction Fund..

405 6

20 Other-net.

Total use of funds 115,173 68.925 135.602 INCREASE (DECREASE) IN WORKING CAPITAL

_$124,809) 521.075 S 50.046 CHANGES IN WORKING CAPITAL COMPONENTS:

Increase (decrease) in current assets-Cash and U.S. Government Secunties.

$ (2,825)

$17.453 5 14.790 Electric System Revenue Bond Fund.

928 96 (14.052)

Accounts receivable (236) 1.169 3.913 Unbilled revenues 1,000 600 6.600 Fossil fuels.

(6,532)

(1.234) 17.162 Materials and supplies 694 3.200 3.172 Defer;ed production costs.

5,813 Other 766 (1.094)

(3.091)

Total (392) 20.190 28.494 increase (decrease) in current liabilities:

Current portion of long. term debt.

1,300 375 365 Electric revenue notes,

30,000 (30.000)

Accounts payable.

(7.170)

(2.361) 8.605 Accrued payments in lieu of taxes 209 939 417 Accrued interest..

(110)

(111)

(233)

Other 188 27_3 (706)

Total 24.417 (885)

_ 21.552)

(

INCREASE (DECREASE) IN WORKING CAPITAL

$(24,809) 521.075 5 50.046 See notes to hnancialstatements.

21

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... -. - - ~ -

1.

SUMMARY

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

Organization and Business-Omaha Public Power Deferred Production Costs-Oertain production District. a political subdivision of the State of costs are recovered under the Fuel and Production Nebraska, is a public utility engaged solely in the Cost Adjustment (FPA) clause of the District's rate generation, transmission, and distribution of schedules. These costs are deferred until they are electric power and energy and other related collected by FPA billings. The District's policy prior activities necessary thereto. The Board of Directors to 1981 was to expense these costs when they were is authorized to establish rates. The District is not incurred (See Note 9).

liable for Federal and state income or ad valorem

2. LONG TERM DEST taxes: however, payments in lieu of taxes are made to various local govemments.

The District utilizes proceeds of debt issues Basis of Accounting-The accounting records of primarily in financing its construction program.

the District are maintained generally in accordance Maturities of electric system revenue bonds during with the Uniform System of Accounts prescribed by the years 1982 through 1986 are as follows (in the Federal Energy Regulatory Commission.

thousands):

Accounting for Revenues-Meters are read and 1982............................511.590 bills are rendered on a cycle basis. Revenues 1983.......................... 512.630 eamed after meters are read are estimated and 1984....

.... 513.155 accrued as unbilled revenues at the end of each 1985.

. 513.295 accounting period (Sea Note 8).

1986............................. 513.840 Property-The costs of property additions.

In 1981. the District borrowed on its existing replacements of units of property, and betterments revolving credit arrangement with several banks are charged to electric plant. Maintenance and and issued $30,000.000 of electric revenue notes.

replacements of minor items are charged to These electric revenue notes are due September 11 operating expenses. Costs of depreciable units of 1984 and bear interest at a rate equal to the lesser utility plant retired are eliminated from utility of 6%% or 64% of the prime commercial rate of the plant accounts by charges,less salvage and plus major lending bank.

emov i xpenses to the accumulated

.s Dond indentures and note a 6eements provide for certain restrictions, the most s(i pnficant An allowance for funds used, approximating the of which are:

District's current cost of financing electric plant Additional bonds may tiot be issued unless construction and th(< purchase of nuclear fuel, is estimated net receipts (as defmed) for each capitalized as a component of the cost of the utility future year will equal or exceed 1.4 times the olant. In 1981 and 1980. this allowance was debt service on all bonds outstanding including computed at 7%% for both construction work in the additional bonds being issued or to be issued progress and nuclear fuel. The rate was 7% in 1979.

in the case of a power plant (as defined) being Depreciation and Amortization-Depreciation is financed in increments.

An amount at least equivalent to 12%% of gross on he s i ated u eful o th vano s c asses operatng revenue (as defined) must be spent of property Depreciation expense averaged annually for maintenance, replacements, or approximately 3 4%. 3.5% and 3.7% of depreciable additions to the electric system. or if not so spent property for the years 1981,1980 and 1979, is to be placed in a special fund to be used for respectively.

such purposes or for retirements of original Amortization of nuclear fuelis based upon the cost bonds (as defined) in advance of maturity.

thereof, including current estimates of future in any three-year period, at least 7%% of general nuclear fuel disposal costs. as adjusted dunng business income (as defined) must be spent for periodic reviews; this cost is pro-rated by fuel replacements, renewals. or additions to the assembly in accordance with the thermal energy electric system. Any deficiency is to be spent that each assembly produces.

within two years thereafter for such purposes or Deferred Financing Costs-Debt discount and if not so spent is to be usep for bond retirements expense and amortizable charges relating to in advance of matunty.

refunded debt are amortized ratably over the lives of the related issues to which they pertain.

3. SPECIAL PURPOSE FUNDS Deferred Cancelled Project Costs-Fort Calhoun The assets of the special purpose funds of the Station-Unit No. 2-Costs arising from the District (Construction Fund. Electric System termination of contracts relating to Fort Calhoun Revenue Bond Fund. Debt Service Fund, and Station-Unit No. 2 are being amortized over ten Segregated Fund) consisted primarily of secunties years beginning Apnl1979.

of the U.S. Government and related agencies.

stated at amortized cost which approx! mated Deferred Major Maintenance and Fuel Costs-market. and the remainder was cash.

Costs of refueling the nuclear reactor, changes in current estimates of future nuclear fuel disposal The Construction Fund is to be used for capital costs costs of unusual maintenance undertaken improvements, additions and betterments to and during the refueling process. and additional extensions of the District's electric system, or for production costs ansing during periods when major payment of principal and interest on Electric 22 generating units are out of service for major System Revenue Bonds.

y The Electnc System Revenue Bond Fund and Debt

7. CONTINGENT LIABILITIES Service Fund are held by the Trustees for the Under the provisions of the Federal Price-Anderson retirement of term and serial bonds and the Act as amended August 1.1977, the District could payment of the related interest-be assessed for claims in the event of a nuclear The Segregated Fund represents customer deposits incident in amounts not to exceed $10.000.000 in and refundable advances.

any one calendar year.

The District is engaged in routine litigation

4. DEFERRED DEBITS incidental to the conduct of its business and. in the The composition of deferred debits at December 31 opinion of its General Counsel, the aggregate 1981 and 1980 was as follows:

1981._

1980 amounts recoverable from or to the Distnct. taking Amortizable charges relatir.g to (thousands) into account estimated amounts provided in the financial statements and insurance coverage, are refunded debt..

. $37.153 $38.439 n t matMal Deferred cancelled project costs-Fort Calhoun Station-Unit No. 2..

37.612 37.879

8. ACCOUNTING CHANGE-1979 Deferred major maintenance and The District's accounting policy prior to 1979 was

'"9

~

Def n e-s e'r'ecla' mat [on CEsts'." [.

to record revenues in the period during which mes wem mad and Ms wem mnded, wM Deferred charges relating to future was on a cycle basis. Under this procedure. there 6.809 9.683 nuclear fuel disposal costs "". '..*

was unrecorded revenue to the extent of usage 4.584 3.480 Other between the date of meter readings and the end of Total..........

. $99 625 599.935 a financial period. In 1979, the District changed its method of accounting to record currently all

5. PENSION PLAN estimated unbilled revenues. The change was Substantially all District employees are members of prompted by the increasing monetary significance its contnbutory pension plan and are not covered of such unbilled amounts and was made to better by Social Secunty. Generally, the plan provides for match revenues and expenses. The change benefits at age 65 with reduced benefits for earlier increased 1979 operating revenues and earnings retirements. Provision is made annually for before the cumulative effect of a change in actuarially computed current costs, which were accounting principle by $500,000. The cumulative

$4.177.000, $3.617.000 and $3.062/'00 for 1981 effect on prior years of the change in accounting 1980 and 1979, respectively. The District's policy is for unbilled revenues was $6.100.000.

to fund pension costs accrued. Accumulated plan benefits and net assets at January 1.1981 and 1980

9. ACCOUNTING CHANGE-1981 were as follows:

1981 1980 The District's accounting policy prior to 1981 was to record production expenses in the period Actuarial present value of (thousands) incurred. Under this procedure, revenues collected accumulated plan benefits:

under the Fuel and Production Cost Adjustinent

. $42.055 544.599 Vested...

(FPA) clause of the District's rate schedules were Non vested 2.497 2.805 not matched with the related expenses since these Total......

. 544.552 547.4Si revenues are collected by FPA billings over the Net assets available for benefits.

. S60.818 550.085 following six months. In 1981, the District changed its method of accounting to defer production costs The assumed rate of return used in computing the until the related revenues are recorded. The change actuarial present value of plan benefits for retired was prompted by the increasing monetary members was 10.8% in 1981 and 8.7% in 1980. The significance of such production costs and was assumed rate of return for all other members was made to better match revenues and expenses. The 10 0% in 1981 and 8.2% in 1980 change decreased 1981 operating expenses and increased 1981 earnings, before the cumulative

6. COMMITMENTS effect of changes in accounting. by $3.162.000. The The District's Construction Budget provides for cumulative effect on pnor years of the change in expenditures of approximately $45.391.000 during accounting for deferred production was $2.651.000.

1982 and $37,779.000 during later years, of which

10. SUBSEQUt!NT EVENT amounts approximately $21.094.000 was under contract at December 31.1981.

In January 1982, the District sold $55.000.000 of e

nc mvem noms due hay L M Coal supply contracts extend to 1984 (with options l

to 1989) for the North Omaha generating station

11. RECLASSIFICATIONS l

and to 1998 for the Nebraska City Station-Unit No.

Certain amounts in the prior year's financial

1. Minimum future payments amount to $5.408.000 statements have been reclassified to conform with for North Omaha and $199.800.000 for Nebraska the 1981 presentation.

City. The coal contract prices are subject to escalation based upon the suppliers' costs.

Contracts with estimated future payments of

$87.000.000 are in effect for nuclear fuel. In addition, a contract with the United States Department of Energy with estimated future payments of $526.000.000 for the furnishing of uranium enrichment services extends to the year 2002.

22

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Conventional Constant Dollar Current Cost Historical Average Average Cost 1981 Dollars 1981 Dollars (thousands)

Ope rating reven ues...........................

$222.546

$222.546

$222.546 Total operation and maintenance expenses......

135.772 136,654 138.736 D ep reciation..................................

35.605 65.243 69.219 Payments in lieu of taxes.......................

6.400 6.400 6.400 Total operating ex penses......................

177.777 208.297 214.355 Operating income.............................

44.769 14,24?

8,191 Other income credits.......................

13.924 13.924 13.924 Earnings before interest expense...............

58.693 28,173 22,115 I nterest ex pen se.............................

54,658 54.658 54.658 Earnings (foss) from continuing operations......

$ 4.035

$ (26.485)

$ (32.543)

Increase in current cost of utility plant held during the year........................

$135.521 Reduction to net recoverable cost..............

$ (56.673)

(32.923)

Effect of increase in general price level.........

(153.090)

Excess of increase in general price level over increase in current costs af ter reduction to net recoverable cost (50,492)

Gain from decline in purchasing power of net amounts owed 58.565 58.565 Net........................................

$ 1.892

$ 8.073 e,

i Year Ended December 31, 1977 1978 1979 1980 1981 (thousands)

HISTORICAL COST INFORMATION ADJUSTED FOR GENERAL INFLATION Operating revenues.......

$197.744 $205.014 $243.100 $250.368 $222.546 (Loss) from continuing operations......

(605) $ (15.370) $ (26.485)

Net assets at yttar-end at net recoverable cost..............

$294.792 $306.932 $317.197 CURRENT COST INFORMATION (Loss) from continuing operations.......

$ (3.950) $ (27.508) $ (32.543)

Excess of increase in general price level over increase in specific pnces af ter reduction S 96.957 $ 87.399 $ 50.492 to net recovprable cost....

Net assets at year-end at net recoverable cost......

$294.792 $306.932 $317.197 GENER AL INFORM ATION Gain from decline in purchasing power of net amount 5 owed S 82.224 $ 79.660 $ 58.565 Average consurrer price index...

181.5 195.4 217.4 246.9 272.3 24 See notes to supplementary financialdata.

h

.I.

f y

The supplementary information is supplied in inventories-Fossil fuel inventories and the cost of accordance with the requirements of FASB fuel used in generation have not been restated Statement No. 33, Financial Reporting and from their historical cost in nominal dollars. The Changing Prices, for the purpose of providing District's rate structure limits the recosery of fue!

certain information about the effects of changing through the operations of adjustment clauses prices. It should be viewed as an estimate of the or adjustments in basic rate schedules to actual approximate effect of inflation, rather than as a costs. For this reason fuel inventories are precise measure.

effectively monetary assets.

Utility Plant, Depreciation and Amortization-Effect of the District's Rate Structure-Under the Constant dollar amounts represent historical costs rate making structure adopted by the Distrir,t. only stated in terms of dollars of equal purchasing the historical cost of utility plant is recoverable in power, as measured by the Consumer Price index revenues as depreciation or amortization. There-for All Urban Consumers (CPI-U). Current cost fore, the excess of the cost of plant sta'ed in terms amounts reflect the changes in specific prices of of constant dollars or current costs over the the utikty plant from the date the plant was historical cost of plant is not presently recoverable acquired to the present, and differ from constant in rates as depreciation or amortization, and is dollar amounts to the extent that specific reflected as a reduction to net recoverable cost.

pnces have increased more or less rapidly than To properly reflect the economics of the District's prices in general-rate structure in the Statement of Earnings from The current cost of the utihty plant represents the Continuing Operations the reduction of the utikty estimated cost of replacing existing plant assets.

plant should be offset by the gain from the decline The current cost of the electric plant was in purchasing power of net amounts owed. During determined by indexing the surviving plant by the a period of inflation, holders of monetary assets Handy-Whitman index of Pubhc Utikty suffer a loss of general purchasing power while Construction Costs. The electric plant was aged holders of monetary liabilities experience a gain.

on the basis of clearings from construction The gain from the decline in purchasing power of work in process to electric plant in service. The net amounts owed is pnmarily attributable to the current cost of nuclear fuel in the reactor was substantial amount of debt which has been used based upon the actual cost of the most recent to finance the utility plant. Since the depreciation assembhes to be placed in the reactor. The cost of and amortization on this plant is limited to the nuclear fuel was not adjusted from historical recovery of historical costs, the District does not amounts. The current year's provision for have the opportunity to realize a holding gain on depreciation and nuclear fuel amortization was debt and is limited to recovery only of the determined by applying the District's effective embedded cost of debt capital.

depreciation and amortization rates to the computed constant dollar and current cost amounts of the utihty plant.

1981 1980 1979 1978 1977 (thousands)

Operating revenues......

$222,546

$227.014

$194.087

$147.116

$131.805 Operation and maintenance expenses 135,772 135.305 111,756 85.979 64.230 Payments in lieu of taxes.....

6,400 6.191 5.252 4.836 4.428 Net operating revenues..

80,374 85.518 77.079 56.301 63.147 investment income (1).....

4,798 4.490 4.386 4.333 4.062 Net receipts.

5 85,172

$ 90.008

$ 81.465

$ 60.634

$ 67.209 Total debt service (2)..

$ 59,826

$ 58.969

$ 44,772 S 30.613

$ 32.391 Debt service coverage 1.42 1.52 1.81 1.98 2 07 (1) income derived from the investment of moneys in the Debt Service Fund and the Reserve Account of the Electric System Revenue Bond Fund under the District's bond indentures (Resolution No 19 and Resolution No 1788)

(2) Total Debt Service for both Resolution No 19 and Resolution No 1788 Bonds is accrued on a calendar. year basis similar to the computation of Net Receipts Interest funded from bond proceeds is not included in Total Debt Service 25

1. ~., 7

- - ~ - -- -

gr.,

",. ie!.. ***j.ffse~s.s <' n.z,.',.,1;.r i L

,.., t

+

as

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" $ * *. a T/.-M.a abd2. k SEid DIET 78. '7Me.4.$

r7 1952 ISSUE 1954 ISSUE 1956 ISSUE 1957 ISSUE 1958 ISSUE 1961 ISSUE 1966 ISSUE 1968 ISS d

Maturity Date int Int Int Int int Int Int Int February 1 Rate Amt Rate Amt Rate Amt Rate Amt Rate Amt Rate Amt Rate Amt Rate A 1982 2%

2,100 23 1.000 3

1 000 34 220 33 300 31 625 4'.

560 4.

1983 24 1.100 3

1 000 33 600 33 680 4.

890 4'.

1 1984 24 1,100 3

1.000 33 600 31 800 4.

930 4.

I 1985 3

1.300 3%

600 34 840 4.

1 000 4'.

2 1986 3

1 400 3 '.

500 33 1.000 4.

1.040 4.

2 1987 3%

500 34 1.000 4%

1.150 4'.

2 1988 34 500 34 1.000 4%

12'4 4'

2 1989 34 1.000 4~.

1400 4'.

2 1990 3N 1.000 44 1 425 4'.

2 1991 3N 1.000 4,

1500 4 s.

2 4'.

1500 4'.

2 1992 4'.

1.500 4'.

2 1993 4'.

1 500 4%

2 1994 4e 1.500 4%

2 1995 4

1.500 4%

2 1996 4%

2 1997 4

2 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Outstanding 2.100 3 200 5.700 220 3 600 8 945 18 645 3'-

Bonds Redeemed to 12 '31e81 14 900 8 800 9 300 7.780 3 400 8 055 6.355 Original Issue 17.000 12 000 15 000 8 000 7.000 17.000 25 000 4-e

' Term Bonds "The 1975 Series A and B Bond issues were refunded by the 1977 Series A issue

'"The 1976 Series A and B Bond issues were refunded by the 1977 Series C issue 26

1977 ISSUE 1977 ISSUE 1977 ISSUE TWELVE MONTHS ENDED 1969 ISSUE "2 ISSUE 1973 ISSUE SERIES A" SERIES B SERIES C"*

FEBRUARY 1 Total Total nt Int ont let Int int Pnncipal Accrwng Debt hte A mt Rate Amt Rate Amt Rate A mt Rate Amt Rate Amt Matunties interest Servece 5

350 4 40 2 990 5 565 4 20 900 11.590 48 314 59 904 5 80 800 4%

3 155 44 590 4 35 1.365 12.630 47 891 60 521 4 70 850 4 60 3 330 4 85 620 44 2 025 13.155 47.374 60 529 4%

900 4 70 3 510 4 95 650 4 60 2.295 13 295 46 834 60 129 4%

950 4 80 3 705 5 680 4 70 2 365 13 840 46 264 60.104 4 80

• 950 4 90 3 910 5 10 710 4 80 1.300 4 80 2.580 14 360 45 664 59 964 4 90 990 5 4 125 5 15 745 4 90 1 500 4 85 2 650 14 960 45 010 59 970 4 90 1 000 5 4 350 5 20 780 5 2 000 4 95 2 925 15 655 44 317 59 972 5

1 000 5 to 4 590 5'.

820 5 15 2 250 5

3 015 16 400 43 578 59 978 5

1 000 5 10 4 845 5 30 860 5 30 2 600 5 05 3 100 17 205 42 791 59 996 5

1 000 5 20 5 110 5 30 905 5 40 3 850 5 10 3 380 18 045 41 958 60.003 5

1 000 5 20 5 390 5 40 950 5w 4 150 5 20 3 620 18 910 41 055 59 965 5 10 1100 5 20 5 685 5 40 1W 5 60 4 500 5'.

3 720 19 905 40 097 60.002 5 10 1 100 5 %*

6 000 5 %*

1050 5 70 4 900 5 30 3 970 20 920 39 077 59 997 5 10 1 100 5 s*

6 310 5%

1110 5%

5350 5 40 4 170 21 960 37 982 59 942 5 to 1100 5 %*

6 680 5%

1.170 5 80 7.300 5 45 4 485 23 135 36 824 59 959 4'.

1 100 54' 7 045 5%

1235 5 85 7 900 5S 4 590 24 370 35 568 59 938 4.

1100 5 %*

7430 5 %*

1 300 5 90 10 900 53 4 960 25 690 34 252 59 942 54' 7840 5 %*

1370 6*

12 600 5 %*

5335 27.145 32 810 59 955 5 %*

8275 5 %*

1 450 6*

13 450 5 %*

5 470 28 645 31 247 59 892 5 %*

8 725 5%

1 525 6*

14 350 5%

5 710 30 310 29 59'7

' 59 907 5 N' 9 205 5%

1610 6*

15 250 5 %*

5955 32 020 27 851 59 871 5 %*

9 715 6*

17 300 5%

6 820 33 835 26 006 59 841 5 %*

10 250 6*

18t50 5%

6 970 35 770 24 054 59 824 5 %*

10 810 6*

19 900 5 %*

7.140 37 850 21 989 59 839 6*

30 100 5 %*

9 885 39 985 19 804 59 789 6'.

12 900 5 %*

10.780 23 680 17 429 41.109 6.

13 670 5 90* 11 200 24 870 16 019 40 889 6'.

14 490 5 90* 11.730 26 220 14 521 40 741 6.

15.360 $ 90* 12 345 27 705 12 941 40 646

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

6.

16 285 5 90* 13 005 29 290 11 272 40 562 6.

17260 5 90* 13,715 30 975 9 508 40 483 6.

18 295 5 90* 14 435 32.730 7 641 40 371 6.

19 395 5 90*

15 215 34 610 5669 40 279 6.

20 555 5 90* 16 775 37 330 3 583 40 913 6-21 790 21 790 1 335 23 125

_ _ _. _ _ _.~_. _

17 390 153 000 21 695 200 000 170 000 229 200 870 725 1 078 126 1 948 851

. - - _ ~.. -

2 610 17 000 3 305 89 475 20 000 170 000 25 000 200 000 170 000 229 200 960 200

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

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

OPERATING REVENUES Percent g

(thousands)

Percent of M'nons of Dotiars 50 75 100 125 150 175 200 225 250 I

Year of Year increase Classification 1981 Totat 1980 (Decrease) 1981 Assedential.

$ 77.500 34 8 5 78 708 (15) 1979 Generat Serv ce-Sman.

60 992 27 4 57.515 60 General Service-Large,

36 345 16 3 34 291 60 1977 Government and Municipal.

4 516 20 3 983 13 4 Other Electnc Ut:hties.

40 003 18 0 49 931 (19 9) 1975 Accrued Unbdied Revenues 1 000 5

600 66 7 1973 Total Electnc Aevenues.

5 220 356 99 0

$ 225 028 (2 16 Mescenaneous Reven es.

2.190 10 1.986 10 3 1971 u

Total Operating Revenues.

5 222 546 100 0

$ 227 014 (2 0)

J

'l Malions of Kilowatt Hours 3000 3500 4000 4500 5000 5500 6000 6500 7000 KILOWATT. HOUR SALES 1981 (thousands) 1979 Classification 1977 Res*dential.

1 824 285 29 1 1 952 851 (6 6)

Generat Service-Sman.

1 691 815 27 0 1 684 631 4

1975 Gener al Service-L arge.

1 411 394 22 6 1 431 067 (1 di Government and Municipal.

74 444 12 75 325 41 2) 3973 Other Electric Utihties.

1 258 803 20 1 1 275 171

1. 1 31 l

I'7' Total Energy Sales.

6 260 741 100 0 6 419 045 (2 5) r i

OPERATION AND MAINTENANCE EXPENSES Malions of Donars 20 35 50 65 80 95 110 125 140 i

i (thousands) 1981 Classification 1979 1

j Generating E mpense.

$ 101485 74 7

$ 98 412 31 1977 Purchased and Interchanged Power.

(2.589p (19) 2 782 (193 1) 1975 Teansm:ssion and Distribution.

15.315 11 3 15 278 2

Custoteer Accounts.

4 817 35 4 365 10 4 j

3973 Customer Service and information......

1.833 14 1 779 30

397, 1

Administrative and Genceal.

14 911 11 0 12 689 17 5 Total Operation and Maintenance Eapenses.

$ 135 772 100 0 5 135 305

.3 h

r AVER AGE NUMBER CF CUSTOMER $*

o[Cus o e s 150 160 170 180 190 200 210 220 230 6

Classification 1981 i

Residential......

190 451 88 7 187 802 14 1979 Generat Servece-Small.

23 833 II I 23.541 12 Gener al service-Large.

75 89 (15 7) 1977 Other.

428 2

415 31 1975 l

Average Customers.

214 787 100 0 211 847 14 1973 1971 A

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1

' Average Total T*eive Months Ended December i

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-u, 1981 1980 1979 1978 1977 1976 1975 1974 1973 1972 Total Utsty Plent, including Nucteer Fuel (at year end)

(sn thousands of dollarsJ.

1,284.174 1.223 659 1.167.444 1.072.189 948 864 825.597 652 688 567.704 546 230 504.106 Boneed -- if at year end1

(#n thousands oldottars).

870.725 881.015 890.930 900.480 890.480 699 344 497 680 334 758 339 668 320.296 Operating Reeenues ton thousands of dollarsJ Residential.

77,500 78 708 65.388 60 819 54.392 51 684 45 629 34 183 29 254 26.112 General Service-Sn.als.

80.992 57.515 49 581 44.277 41.197 38 592 33 830 25 496 23,364 20 690 General Service-Large.

36.345 34 291 29 249 24 916 22.217 21.162 17.465 13 741 12 067 10.249 Government and Municipal.

4.516 3 983 3.462 2 541 3.282 3 760 2.917 2 281 2.006 1 664 Other Electnc Utaht.en.

40.003 49 931 44 008 12.926 9 081 4 285 2 890 5 301 4 024 3697 Accrued Unbilled Revenues.

1.000 600 500 Mmenancous.

2,190 1.986 1.899 1.637 1.636 1.593 2 929 2.099 1654 1 554 Totas.

222.544 227.014 194 087 147.116 131.805 120 576 105 660 83 101 72.369 63 966 Operation & Maintenance Espenses Charged to Operations ten thousands of doirar:J.

135.772 135.305 111.756 85.979 64 230 66 482 55 325 41.320 43 056 39 296 P ymente in Lieu of Teses (en thossands or dottersl.

S.400 6 191 5 252 4.836 4 428 4 224 3 763 2.904 2.619 2.345 Not Operating Re-enues before Depreciat6on (en thousands of dollarsJ.

80.374 85.518 77.079 56.301 63347 49 870 46 572 38 877 26 694 22.323 Not Earnings Re6nvested in the Business (en thousands of dollarsJ.

S.846 9 486 25 741 19.301 25.246 18 274 18 386 13.385 13 228 11.409 Kilomett-Hear Sales On thousands)

Residential.

1,874.285 1 952 851 1 835 250 1.881.529 1.717.117 1.665 518 1 674.761 1.507.187 1.486 826 1.363 492 General Service -Smau.

1.891.815 1.684.631 1 666 849 1 649.361 1.580 095 1.500.223 1.437.146 1.362.698 1.473 943 1.400.564 General Service-Large.

1.411.394 1,431 067 1.438 732 1.382.366 1.302.821 1.270,736 1.163 250 1.140 723 1.030 553 942 236 Government and Municipal.

74.444 75 325 74 653 77.675 127.367 144 932 134.1/6 133 703 126 973 121 233 Other Electnc Utihtees.

1,258.003 1 275 171 1 452.337 642.399 491.884 229 073 219 924 554 713 534 645 491.894 Totat.

4.260.741 6 419 045 6 467 821 5 b33.330 5.219 284 4 810 482 4 629 257 4 699 024 4 652.940 4.319 419 Number of Customers f avorage per years Residential 190.451 187.802 185.358 182.156 178 259 174 331 171,239 167.843 163 320 157 662 Generat Service-Smail.

23.833 23 541 23 484 22.919 22 250 21 824 21.387 21.261 20 445 19 676 General Service-Large.

75 89 88 85 80 84 85 80 252 322 Gosernment and Municipai.

410 403 386 363 363 351 331 321 282 253 Other Es ctnc Utahties.

10 12 15 16 12 10 9

11 9

9 e

Total.

214.747 211 847 209 331 205.539 200.964 1 % 600 193.051 189 516 184 308 177 922 Resident 6al Statistics (averageJ kWh. Customer....

9.579 10 398 9 901 10 329 9 633 9 554 9 780 8 980 9 104 8 648 Douar Revenue Customer 406 93 419 10 352 76 333 89 305 13 296 47 266 46 203 66 179 12 165 62 Cents kwt).

4.25 4 03 3 56 3 23 3 17 3 10 2 72 2 27 1 97 1 92 Generating Capsbety tat year end; ten edomarts).

1,992.100 1 979 800 1.960.000 1.382.000 1.373.700 1.371.700 1.411.000 1 411 000 1.492.000 933 000 System Peek Loads (en hifowarfs #. 1,382.400 1 348 400 1 265 200 1 257.300 1.222.900 1,188 100 1 134 000 1.117 000 1 058 300 989 900 Not Systern Requirements s

t holowart-hour s m thousands 6 Generated....

5.667.831 6 581 819 6 823 834 5 538 844 5 631 403 5 092.064 5 023 719 5.773.486 4 446 % 4 3 561.731 Purchased and Net interchanged (1.335.512) (1,084 0951 (1 413 746) (163 599) (586 776)

(165.542)

(310 093) (1332 610p (19 094) 578 204 Nor.

5.332.319 5 497.724 5 410 088 5 375 245 5 044 627 4 926 522 4 713 626 4 440 876 4 427 870 4 139 935

( ) Denotes Negative l

29 i

Mid-Continent Area Power Pool (MAPP).-..

I Mid-Continent Area Power Pool

'/**.****

j I. -

(MAPP)is an organization of 43

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Independent power suppliers that

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have joined together to work for a

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reliable and adequate supply of 8c-electncity in the Upper Midwest Omaha Public Power Distnct is a i

charter member and actively

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supports the organization While 1

L each system is responsible forits own needs. all have pledged to cooperate in planning.

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constmction. and operation of new r

f generating and transmission

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LEGEND

,,,,,,j,, f High-voltage lines

• • • In%tconnection with adjacent e

utilities' high-voltage hnes Omaha Public Power District Service Area: 5,000 Square Miles The District serves 570.000 people in all or part of 13 counties in Southeastem Nebraska Electnc service is provided r

to the following 48 incorporated communities at retail Alvo Elmwood Net *h Bend Arlinyon Fc:1 Calhoun Omaha Ashland Gretna Peptillon Avoca Herman Feru Beuevue Hocper Ralston Benrung'on Ithaca Rogers Boys Tcwn Ker. nard Rulo Burr loVista Salem Cc:1ericke(Icwa) Leshara South Bend Cedar Plu!+.5 Lou:sv:lle Spnng*2 eld Cedar Creek MarJey Valley Ceresco Mead Washmg'en Colon Mernphis Waterloo Cock Mc:se Blu:2 Weeping Water Eagle Murdock Winslow Elkhom Nickerson Yutan CFFD also serves Blair Elk Creek. Greenwood Syracuse and Tecumseh at wholesale 30

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7 Divisi@n Managers J

3aT1 aced A Bosg Balph E Chatnekt Wlutam D. Dermyer Customer Services Ibels Electnc Operations 2

j Oimiukas

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j Dolbert E. Dinta L Verdall Goldberg William C Jones Govemmental Attairs hnancial Auditing Production 1

Operations 5 Geruid J. Krause Robert C Imarch John W. MarctX System Planrung Accounting Finance I

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i k. Darleen17etut Allen W. Enggert Sk2ard I W

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Act:no DMston Mgr Employee Relations Management Pubbc Pelations Systems Services

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Fted M. Petersen Carol J. EeDeT i

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tan Assistant Secreiarv

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"WtrTae Steelo Frank A Thurtell Dayton D.WIttbo 4 - Matena!

Enytmnmental and Engineenng

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Art and Design Orent Express Inc.

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l A business-managed. publicly owned electric utility An equal opportunity employer without regard I

to race, sex. age or impairment.

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