ML20054L350

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Annual Financial Rept 1981
ML20054L350
Person / Time
Site: Grand Gulf  
Issue date: 04/08/1982
From:
SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION
To:
Shared Package
ML20042C738 List:
References
NUDOCS 8207070440
Download: ML20054L350 (33)
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a ~ t4 m 1 _a - t h.in ges in tht elet trit utilits ind ust r s f uel pr1t es ath! t rist < >l building p< iw et f at dities si nn e d. maie r uls, interest on nu;ncs, t r ans-p<ntainen all a spe r ating tiists / < n >m ed upward It w as a detade <>t tintertatrits rlCw ( c( d( e ls (jfli)tl lis c k Ink !N KIP 45 ' d, k g ( t 4 impi u tant f at et < >t gr i >w t h ,5 .N - _. 4 % >ut h \\lississ i p p i l let t r h Pi>wer \\ssir 4 3, 9j,.7w. qq.,,s.. g- .,N h f ai 9 ^* Md?;tj,4c o >oper atis e se n i n g the pi,w e r suppls needs ,,T' jM 'd -xwmfy rural cl n trit J Kir ibu tit in u stems t 2..a ff[hhM M is e NN 4+ - gk,h'% MM m \\lississippi. I < a us, l%1 w as a time to gain A NdM#d.

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[* @> y%syp .e g strength f rom the past and r e new < >ur hi,pe g gy dg3 0.%Q, %.e 'M jc;. gU 1, u t h t tuture. 8 It took Jedh at uin, hard w or k and a neser p y# 4',' gy /< ~* t'ntfifly ialIh f(It cIct t l 1( pt )w el i() li '((inle 1 t w. ? r ealit s t< >r r u ral at t as ii! the state < >t \\lWsmsippi. (. (*y N I,_ IhW ded h itiiin helped bring life to rural y x . h,._ ;' \\lississippi and br ought mio being thm entits s. 5outh \\1nsissippi i let tr it P< >w er we k n< iw as % b i. ~~ ' \\ssi >t ia t u in. liniking at the future, we k ni >w that elet t r h it s is a sital r esi >u r t e and we know that rural Niississippi depends upon us to keep r all abundanI supp!s ()I mt) del n c!ct t r1t p()w ei t ..m E.. < >n its w as. I hri> ugh planning and w ise usage,

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r0 elet tr h n s w ill still be one of our greatest r esou r t es. We are loc >kmg ti > t omor r ow, w e .n e w or king t< > t md lasting solu tions to energs puiblems, plannmg f or the f uture and keeping pate w ith the gn >w ing needs of r ural N1ississippi 19S1 a s car of sett'ing in, prepar mg t() meet the t h alle n ge of the future For us, ( nergs is not rust an industr y it 's a w ay <>f Itte. 19 81: A Settling In

4 lt seems a bit redundant to start this report We must continue to prepare ourselves and with the idea that 1981 presented more than our members for the difficult periods that lie its share of challenges. It seems we have been ahead. We must continue to seek adequate saying that for a good number of years, and financing at reasonable rates, and this may we have. We should be thankful to have had require new avenues never before travelled. numerous challenges to face during 1981. I We must look for new ways to improve effi-have learned that the greatest periods of growth ciency and productivity while at the same time for all of us occur when we are faced with maintaining the level of service and performance challenges that appear to be beyond solution, we have taken pride in providing. As I look back over the years, I find that We must continue to work with others in South Mississippi Electric Power Association the rural electrification program to find better has experienced tremendous growth, both ways of meeting the many problems that face in physical plant and organizationally. This us. We must support these organizations who growth, most all of it, occurred in the midst ' have worked diligently in our behalf through of difficult situations. High costs, excessive the years, such as NRECA, CFC and our state-regulation, inflation and increasing demand wide organization. l have all presented challenges to our team., We must renew our efforts to communicate i We have accepted those challenges in the past, l with the public on all fronts. We have a story l however, and turned them into opportunities j to tell, and we must tell it often and with l and victories. We strove for success.

accuracy.

The challenge of maintaining our program Perhaps, more than anything else, it is i was once again dealt with during 1981. The ' imperative that we keep our eye on the goal administration's proposal to make drastic cuts l that we established a long time ago. When in the REA program was soundly defeated. everything else is said and done, the service However, we cannot rest on the victory of ' provided to our members at the lowest cost this past year. There is an ever present challenge possible is our first and foremost objective. to maintain the program that brought light to l l am grateful to the members of the board I rural Mississippi and rural America. We will of directors who have given so generously of i continue to fight for fair and equitable treat-their time and talent this past year. I appreciate ! ment from this administration and those that the leadership of our general manager and the { follow. { employees who have made a contribution to i i note with deep appreciation the work of l the success achieved under most difficult cir-our elected representatives and senators in cumstances. Congress who have worked with us this year. The years that lie immediately ahead will be Without their support, it would be impossible filled with many varied challenges. How well we to maintain the REA program as we know it meet those challenges will depend largely upon today. I am also appreciative of the efforts of the measure with which we are willing to work the REA administrator and his staff, the together to meet our common goals. I look management and staff of NRECA and CFC and forward to the opportunity to continue to work the many elected officials, both at the national with others who have the best interest of this level and the state level. We recognize that all Association in the forefront of their efforts. of these people have an impact on what we are able to accomplish, and we acknowledge their help and their support and offer our sincere appreciation. You will have the opportunity to read I specific accomplishments of the year just ended in other sections of this annual report. However, we cannot rest on the accomplish-ments of the past.

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6 j 1981 has been a year of adjustment, it was As can be seen from the above situation, the the first full year of membership for the four total load being supplied by the Association's new " West Mississippi" cooperatives, and much generating resources in 1981 was 620 MW. of the year was spent in "getting used to" the When the required 15 per cent reserve is added larger board of directors and the larger to this, the total requirement for generation was ) service area. This adjustment period has been 713 MW. Since the total generating resources very successful, however, and the Association in 1981 amounted to only 573 MW, it was is working together with a fine spirit of necessary to purchase 140 MW in order to ! cooperation. meet the needs of the Association. 50 MW of I this was purchased from Southeastern Power Load Growth Administration and the balance was purchased I from Big Rivers Electric Corporation. Load growth, as measured by KWH sales to lt is anticipated that adequate power can be i members, faltered again in 1981. Hot weather purchased during the remainder of this decade during the summer undoubtedly contributed to the slight rate of growth, but indications are to meet the requirements of the Association,

assuming the Grand Gulf Nuclear Plant units that the rate of load growth is probably slowing No.1 and No. 2 are completed as scheduled. j down with the general economy of the country.

The KW demand placed upon the actual Cost of Power generating facilities of the Association, of course, has increased dramatically with the The cost of power to the members of the addition of new members and the assumption Association, as reflected only by the revenue of new load. And the number of member-received by this Association, is shown in the consumers served by our member cooperatives following table. It is noted that this measure of has increased dramatically through the years cost continues to increase, as new cooperatives became members of the Association. Revenue in Mills % increase Over These factors can be seen more clearly by Year ner KWH Previous Year reference to the following table: No. ot 1971 7.62 5.8 MW Demand on Members Consumers 1972 9.05 18 5 I 5 increase ig Generating gt Year's Served Yeas KW11 Sales System 3 End by Memberna 1973 11.61 28.3 1974 16.83 45.0 uti n.n i44 in,,3: un 1$." isi e us.sn 1975 20*47 21*6 1978 9.9 its s 1:sl04s is74 4.to in s 1976 23.97 17.1 us 4n N 'N l "l;j'j 1977 27.29 13.9 $ 28 27 s in. n 1978 31.49 15.4 NN $:N> 1979 37.45 18.9 NN

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'"ji 1980 37.26 ( 0.5 ) 1981 41.64 11.8 ,tocrease in KWH sales for the same cooperatives for the pre-vious year. Does not include the effect of adding new I o W on am L all se ed generating resources of the Associa-tion. For 1981, this does not include Coahoma EPA, broken down on page 26 of this report. A l st EP and that portion of Singing River EPA in study of the Chart on that page will reveal the ' ]This represents the total consumer-members of sticooperatives increases in the various components of the cost + i who were members of SMEPA on December 31 of the l during the last several years. year in question. This includes those consumers served from the generating resources of this Association, as well as those served from generating resources of others,

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8 Grand Gulf Nuclear. Plant in commercial service, adequate financing will be available and work on unit No. 2 can be Under the provisions of the purchase agree-resumed. While no official date is indicated ment for the Grand Gulf Nuclear Plant, the for the completion of unit No. 2, it is now Association was to contribute the total construc-felt that it will be finished in the 1988 time tion cost for the project each month until its frame. 1 10 per cent ownership interest was reached, i This 10 per cent level was reached on June 15, System Reliability 1981, and the Association's total investment i at that point was $228,101,410. Since that Through the years of its operation, the time, the Association has contributed 10 per Association has striven for better reliability. cent of the construction cost each month, and 1981 has been an outstanding year in at year's end, the total investment of the Asso-reliability the best year on record. A i ciation in this project, including interest during measure of system reliability can be seen from construction was $265,080,323. the following table, which gives the number Work continued on the plant during the of consumer-hours of outage time each year. 3 year, with most of the systems being turned This table is broken down into two categories: over to MP&L Company for testing and opera-(1) that transmission system connected directly ' tion before the year's end. The first shipment to our generating plants and operated as an of nuclear fuel arrived on site on October 1, integrated system and (2) those remotely 1981, but, of course, fuel cannot be loaded located transmission lines operated by the into the reactor until a limited operating permit Association but served from the transmission has been obtained from NRC. ' system of others. Only outages caused by By year's end, it became apparent that conditions on SMEPA's lines are listed in this the fuel could not be loaded on the previous tabulation. schedule, and consequently, the commercial Consumer Hours Outage Consumer Hours outage operation date could not be met as expected. Year It is now felt that the plant will be in full on SMEPA's System on Remote Trans. Taps Total commercial operation during the spring of 1983. 1971 72,o34 o 72,034 Although no final or firm figures are avail-1] S0j3} 50j3] O g 3 g able at the time of this writing, it is estimated 1974 21,o72 1,107 22.179 that the wholesale rates of the Association will 1975 78.121 0 78,121 have tc, be increased by approximately 25 per j9y 23 o 244 g cent to meet the cost of adding the Grand 1978 23.148 s,si4 28.sso Gulf Nuclear Plant to the system. According 1979 480,848' 215,704* 696,552' 1980 17,434 10,444 27,878 to estimates available at this time,it is estimated 1981 7,886 o 7,88s that approximately 58 per cent of the total cost of owning and operating the 10 per cent . Hurricane Frederick interest in this plant will go for the payment accounted for of interest on the debt. It is readily apparent, 484,452 21s,704 sao.ise then, that if the interest rate could be reduced 4 to levels anticipated by the feasibility studies for this plant, the total cost of owning and operating the plant could be reduced substan-tiallly. Work on Grand Gulf unit No. 2 was halted in late 1979, due primarily to the shortage of financing available to Middle South Energy,Inc. It is anticipated that when unit No.1 is placed

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yh .N.;) N. p %g T C D h2(( Construttom has taken a bac k seat to other Q ', Si I attnities m retent s cars. E uept f or the Grand 4 - - g f'fi l (> ult Nutlear Plant, w hich is being tonstructed ,. ~ i, ' .C' ^ s a' y", 2-x- hs others, no mapir construction at tnits has l been undertaken b3 the Association. Some of ..s s ~ l the nunor prolects are listed here for reference: + ~$,, e l ie.bac k sy stem for the trestle area at hh h.; Plant Niorrow w as t ompleted. I his system is designed to stabilize the w alls in the J-conses or belt area below the trestle. j

  • 115-K V transmission tap (9.62 miles)

_y to the new Borg Warner Plant in Hancock l Counts was completed. h" S

  • Built the West Ya/oo 115-KV switching

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  • Began construction of the Little Yazoo tap.

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  • Began construction of the Nitta Y u m a-1

) Hampton i15-KV line and switching station.

  • Added a second 150 N1V A transf ormer at

..f2 3 h i Niagee. ,e i \\ + i e Replaced cast burner tronts at Plant N1orrow [ with fabricated burner f ronts. l Fuel and Power Purchases I l The Association continued to receise its ~ ~ ! total coal supply from its property in southeast Kentuckv. T he coal is leased to Sandy Fork Niinmg Cumpans, Inc., and coal is purchased .]. g j " w back f rom Sandy For k under a long term f contract. The Association owns a coal washing ~ + / / tacility in Clay County, Kentucks, w hich is / leased to Sandy Fork f or operation. The Asso-tiation pass the total cost of ownership and / operation of that plant. 820,164 tons of coal were burned at Plant -3 Niorrow during the year. E The size of the unit train w as increased if g during the s ear from 72 cars to 80 cars. The coal supply agreement with Sandy Fork l was amended during the year to provide for: ^

  • 4 I (1) an adjustment in the selling price of coal

[^ { to c om pen sa t e for the added costs caused hs 4Q the w ashing process, (2) a new guaranteed . ' '.g base BlU per pound, and (3) additional sp 4

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11 i Reference to these tables reveals the coal reserves to third parties. dramatic rise in the cost of fuel and shows The Association filed a complaint before the interstate Commerce Commission regarding the the swing from gas to oil and then to coal in unit train freight rate. This complaint was filed an effort to control the effect of rising fuel cost, Several factors go to make up the total cost unaer provisions of the Staggers Rail Act of f c al as burned at Plant Morrow. These 1979, in order to protect the interests of the factors are listed below for a typical month to Association in the matter of rail rates. That complaint has not yet been heard. ! demonstrate the effect of varying influences n the total cost. The oil and gas rights on the Kentucky [ property were leased to Cabot Oil & Gas Corp-PLANT MORROW COAL COST At year s end,4 wells had either been ! oration. December,1981 completed or started andprospectsfor producing $/ ton i oil and/or gas on the property were bright. l The gas contract for Plant Moselle and Plant Contract price -loaded on train $31.64 l 3enndale was amended on May 1,1981, t Freight 14.40 I provide for an increase in the rates and for other p ,g rate-related changes. & maintenance 5.80 The cost of fuel to the Assoc. t.ia ion through Rail cars - ownership and maintenance 1.00 the years is shown in the following table: Loading facility - Kentucky .50 Cost of Fuel Delivered - $/Million BTU Use Tax .46 Other .01 Plant Moselle Plant Morrow l Date Gas Oil Oil Coal Total $53.81

1971

.29 .75 { 1972 .30 .75 The generating units at Plant Morrow were i 1973 .56 .83 uprated from 180 MW net to 200 MW net, to j 1974 .69 1.41 be effective January 1,1982. This action was 1975 l~.10 1.47 taken because the units have been proved to bc l 1976 1.64 1.54 capable of producing this much power, and the 1977 1.76 1.76 Association wanted to take advantage of the 1978 1.86 1.80 2.75 1.55 maximum output in planning for its power 1979 2.23 1.94 3.11 1.64 supply. i I 1980 2.78 2.19 4.48 1.80 The Association continued to purchase 1981 3.53 2.24 6.15 2.06 power from Big Rivers Electric Corporation Types of fuel expressed as percent of total in Kentucky. A maximum of 120 MW and j;eneration are shown here: 237,960 MWH were purchased during' the year. The Association participated in hearings j l l Year % Oil % Gas % Coal conducted by Southeastern Power Administra-tion to determine SEPA's marketing policy 1971 4 96 for the Cumberland River Basin power sales. 1979 18 82 Under the policy proposed by SEPA, members ! 1973 47 53 i of the Association could receive a substantial hydroelectric power from the Cum-1975 56 44 1976 41 59 1977 60 40 1978 46 23 31 1979 11 20 69 1980 0 14 86 l 1981 1 12 87 I l

12 Finances Property inrurance was purchased for outlying substations and switchir.g stations Advances received from the Federal for the first time. Financing Bank (FFB) during the year totaled The position of internal auditor for the $180,835,000 at an average interest of 13.9623 Association was established, and an internal per cent. auditor was employed for the first time. FFB notes maturing and " rolled over" The board of directors approved a midyear short term totaled $38,700,000. The average increase in the wholesale power rate of 1.03 rate on these notes increased from 9.8733 mills per KWH to offset losses occurring to date. per cent before extension to 14.0471 per cent This action was taken in order to assure fulfill-after extension. ment of the Association's TIER objective for FFB notes maturing and extended to long the year. term during the year totaled $5,250,000. The The Association was saddened by the death average rate on these notes increased from of Horace A. Bradley, its auditor since 1962, 9.8411 per cent before extension to 12.5883 on November 7,1981. The firm of Ernst & per cent after extension. Whinney was selected by the board of directors Advances from FFB through 1981 totaled to perform the audits for 1981 and 1982. $436,094,000 at an average interest rate of Planning 13.0673 per cent. The board of directors selected the New Buford Goff & Associates completed work Orleans Bank for Cooperatives to be financial on the radio communications study, with advisor to the Association, recommendations for the specific work to be The Association renewed its line of credit done to improve and upgrade the communica-with CFC in the amount of $25,000,000 and tions system. with Deposit Guaranty National Bank in the Burns & McDonnell Engineering Company amount of $3,000,000. completed the power planning study with The application to New Orleans Bank for recommendations as to how the Association Cooperatives for a seasonal loan in the amount would meet its load during the 1980's. This of $60,000,000 was still pending at year's end, study recommended that the next generating NOBC had approved the loan, subject to REA's unit be in service in approximately 1990. acceptance of certain conditions, but the details Planning continued on the proposed inter-of that acceptance had not been worked out at connection with Alabama Electric Cooperative. year's end. Construction of the interconnection was Refunds from Mississippi Power Company approved by the board of directors, subject i totaling $4,966,003 were received on to loan funds being made available. December 7,1981 and the refund was passed on / to the member cooperatives the same day. Safety Capital credits in the amount of $ 3,413,822.10 were refunded to the member At year's end, all but six employees had cooperatives on November 6,1981. All capital been certified in the Red Cross Multimedia credits allotted to date have been returned in First Aid Course and all but 10 employees cash to members. had been certified in CPR. Margins for 1981, in the amount of The following table indicates a history $ 2,811,554, were used to offset larger losses of the safety record of the Association. A during 1980, and no capital was available for study of this table will reveal the decrease in allocation to members for 1981, the number and severity of accidents among A new collection policy was approved by employees of the Association through the years. the board of directors. The policy provides for a penalty for late payment of power bills. i ___.-m

13 Reportable Lost Time Lost Time Man-Hours In Conclusion, I would like to personally h Accidents Accidents Days Worked thank the member cooperatives, the board of 1971 3 0 0 100 350 c;irectors and each employee for making 1981 1972 2 1 8 106,114 the successful year it was. We have all worked 1973 7 1 2 137,489 1974 7 3 8 165.417 together as a team, and each member of that 9j4 team has contributed significantly to the success 12 6 s 2 7 io 2 1977 24 8 80 286,634 of the team. The high standard of leadership !7! N $98jy n the part of the directors and the deJication o 1980 18 2 15 408.978 and loyalty of the men and women employed 1981 28 3 8 436,343 by the Association make possible the rendering of dependable service to all our members at the lowest possible cost. The Association has a safety program involving the use of Top Value stamps on a team basis. This program has been in effect / / for 2% years, and the program is credited with / keeping interest in safety awareness at a high / / ~ level. ggt g [.

  • Transmission Maintenance

/ 'i / i Approximately 133 miles of transmission line was inspected at the ground line and treated during the year. This inspection and treatment is carried out under a contract with Osmose Wood Preserving Company. 255 miles of transmission line was inspected by walking patrol during the year. l 315 miles of transmission right of way was j cleared. j Danger timber was cut on 120 miles of transmission line. 1 ( Computer Equipment l I The new Harris 800 computer was installed l in service in 1981. Acceptance ! and placed tests were made, and personnel of the Asso-ciation were trained by the Harris Corporction, at that company's training center. Programs for load forecasting, load flow, short circuit studies and payroll were placed l in operation during the year. f l 600 tapes for member systems for use in the The Association translated approximately PURPA load survey programs. I

14 South Mississippi Electric Power Association Wholesale purchases from Mississippi Power f was born in the old Forrest Hotelin Hattiesburg and Mississippi Power & Light Company were on April 4,1941, at such a level that it was not feasible to build Representatives of seven ciectric power a self. owned generating plant at that time. The associations adopted a resolution on that date price for power was the governing consideration, which paved the way for the birth of SMEPA. and REA would not entertain an application The purpose of the formation of the new for a loan unless it was justified by sufficient l association was to make possible a dependable difference in price. l supply of whoicsale electricity at reasonable With a threatened increase in wholesale power j costs, and further extending the fundamentals rates in 1958, however, a price differential did upon which electric power associations are exist and Mr. David A. Hamil, who was then

founded, administrator of REA, made a loan of The Secretary of State acknowledged the

$ 13,971,000 which, when added to the previous certificate on April 8,1941, and the charter loan of $2,100,000, made it possible to proceed. of incorporation listed the principal office in Legal maneuvering between the Association Collins, Mississippi, and the commercial power companies consumed At a meeting held in Jackson on June 16, considerable time and delayed the construction 1941, the firm of Gibbs and Hill of New York for nine years, but funds were released and was selected to do the engineering work. A construction finally began in late 1967. resolution was adopted to make application An additional loan of $20,671,000 was to the Rural Electrification Administration obtained from REA in 1966, bringing the total for a loan to construct a generating plant and loans to $36,742,000. From those humble build adequate transmission facilities to serve beginnings, SMEPA now boasts a thriving the power needs of the seven cooperatives. reputation in the state of Mississippi as an t As a result, SMEPA received a loan allocation electric utility. SMEPA employs 215 people, ~ from REA on June 12, 1942, in the amount and maintains offices on Highway 49 North, of $2,100,000 for a plant with 12,500 KW Hattiesburg, Mississippi. capacity and 232 miles of 44 KV transmission SMEPA operates two steam electric plants, line. one near Moselle, and the other near Purvis. Work could not proceed because of a short. Two gas turbines provide necessary peaking age of materials during World War 11. power. On November 18, 1944, the board met in SMEPA operates approximately 1,250 miles Jackson and authorized Gibbs and Hill to of high voltage transmission lines and maintains proceed with a resurvey and requested them interconnections with Mississippi Power to make specific recommendations. The board Company and Mississippi Power & Light j r I also voted to join the National Rural Electric Company. A sophisticated control center { Cooperative Association. controls the SMEPA system and offers the Burns & McDonnell Engineering Company latest in data acquisition and economic dispatch of Kansas City, Missouri, in 1946 was employed of generation. to make further studies on the feasibility of Member systems include: Dixie Electric building a plant. Power Association, Magnolia Electric Power j By the January 1947 Board meeting, Capital Association, Pearl River Valley Electric Power

EPA, Southwest EPA, and Washington-St.

Association, Singing River Electric Power Tammany Electric Cooperative in Louisiana Association, Southern Pine Electric Power had been added to the membership. Association, Southwest Mississippi Electric From 1947 until the next loan was obtained Power Association, Delta Electric Power from REA in July,1958, several complete Association, Twin County Electric Power feasibility studies were made and applications Association, Yazoo Valley Electric Power filed. Association, Coahoma Electric Power Asso. ciation, and Coast Electric Power Association. }

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16 December 31 1981 1980 ASSETS-Note E ELECTRIC PLANT-Note C in service $287,884,147 $283,748,343 Construction work in process-Note B 267,597,784 91,237,467 555,481,931 374,985,810 Less allowances for depreciation 37.804.451 29.447.020 517,677,480 345,538,790 OTHER ASSETS AND INVESTMENTS Investments in associated organizations-Note D 5,640,779 4,992,701 Other noncurrent assets 12,600 417,800 5,653,379 5,410,501 CURRENT ASSETS General fund cash 134,640 103,890 Construction fund cash and investments 3,904,018 2,267,705 Short-term investments 2,050,000 862,600 Accounts receivable 12,470,154 11,915,213 Inventories: Coal 8,379,286 10,853,541 Other fuel (principally fuel oil) 2,238,591 2,365,553 Materials and supplies 3,459,077 3,212,153 14,076,954 16,431,247 Other 892,220 527.523 33,527,986 32,108,178 DEFERRED CHARGES 3,514,966 5.016,192 $560,373,811 $388,073,661 g i i

17 December 31 1981 1980 EQUITIES AND LIABILITIES EQUITIES Memberships 55 55 Donated capital 535,436 535,436 Patronage capital (deficit) (550,725) 51,543 (l5,234) 587,034 LONG-TERM DEBT, excluding current maturities--Note E 544,510,628 364,612,844 CURRENT LIABILITIES Notes payable to National Rural Utilities Cooperative Finance Corporation 2,900,000 Accounts payable 11,357,307 15,049,669 Accrued expenses 1,340,683 1,877,649 Current maturitics of long-term debt 3,180,427 3,046,465 15,878,417 22,873,783 COMMITMENTS-Note B $ 560,373,811 $ 388,073,661 t See notes to financial statements. I Balance Sheet

18 Year Ended December 31 1981 1980 Operating revenue and patronage capital-Note E: Electric energy revenues $ 146,381,767 $ 108,389,316 Other income 1,089,140 1,010,451 147,470,907 109,399,767 Operating expenses: Operaticn expenses: Fuel 52,656,303 39,810,419 Production 2,290,904 1,972,854 Purchased power 50,556,392 37,511,186 Transmission 2,923,166 1,438,895 Administrative and general 2,114,424 1,866,389 110,541,189 82,599,743 Maintenance expenses: Production 1,508,449 1,571,563 Transmission 1,149,140 922,129 General 135,882 100,987 2,793,471 2,594,679 Depreciation 7,524,662 7,362,869 Taxes 286,360 233,915 121,145,682 92,791,206 OPERATING MARGIN BEFORE INTEREST AND OTHER DEDUCTIONS 26,325,225 16,608,561 Interest and other deductions: Interest, net of interest income on unexpended bond funds 52,614,430 22,217,640 Allowance for borrowed funds used during construction (28,710,365) (1,677,085) Other deductions 360,879 118,170 24,264,944 20,658,725 OPERATING MARGIN (LOSS) 2,060,281 (4,050,164) Non-operating margin-principally { interest income 751,273 687,885 ) NET MARGIN (LOSS) 2,811,554 (3,362,279) Patronage capital at beginning of year 51,543 3,413,822 Patronage dividends (3,413,822) (DEFICIT) AT END OF YEAR (550,725) 51,543 See notes to financial statements. Patronage Capital

19 Year Ended December 31 1981 1980 SOURCE OF FUNDS Net margin (loss) $ 2,811,554 $ ( 3,362,279 ) Add (deduct) items not affecting working capital: Provision for depreciation and depletion 8,544,872 8,103,414 Preliminary surveys abandoned 165,231 Other (6,632 ) TOTAL PROVIDED BY OPERATIONS 11,521,657 4,734,503 Additional long-term borrowings 182,944,249 97,089,000 Other-net 450.434 (41,257 ) 194,916,340 101,782,246 APPLICATION OF FUNDS Payment of patronage dividends 3,413,822 Additions to utility plant less carrying amount of retirements 180,683,773 96,837,785 Principal payments on long-term debt 3,046,254 2,960,217 Increase in investment in associated organizations 648,078 617,212 187,791,927 100,415,214 INCREASE IN WORKING CAPITAL $ 7,124,413 1.367.032 CHANGES IN COMPONENTS OF WORKING CAPITAL Increase (decrease) in current assets: General funds cash 30,750 $ ( 284,379) Construction fund cash and investments 345,552 1,310,612 Short-term investments 1,187,400 ( 349,900) Accounts receivable 554,941 3,070,837 j (2,354,293) 4,155,168 Inventories Other 364,697 57,081 l Decrease (increase) in current liabilities: Notes payable 2,900,000 (2,840,761) Accounts payable 3,692,362 (2,915,254) Accrued expenses 536,966 (836,372) Current maturities of long-term debt (133,962) 3 INCREASE IN WORKING CAPITAL $ 7,124,413 1,367,032 i Changes In See notes to financial statements. Financial Position

20 ~ ^ December 31,1981 involving less th'a'n a designated unit of property are charged to maintenance expense. I Coal reserves are stated at cost. Depletica is NOTE A-TH E ASSOCIATION AND ITS provided by the units mined method. lhe coal, -, ~ 1 ACCOUNTING POLICIES mine is operated under an operating agreement with a third party. Suostantially all of the toal South Mississippi Electric Power Association used in SMEPA's 2cneration of electricity is (SMEPA) is a tural electric cooperative utility supplied from coal mines located on SMEPA's f established under the ws of the State of ? property. Mississippi. Finacing assistance is provided by Allowance for Funds Used During Con-the U. S. Department of Agriculture,. Rural struction: Allowance for funds used during Electrification Ad.uinistratian (REA) an,1,_there-construction represents the cost of directly fore, SMEPA is subject to certain rules and ' related borrowed funds used for construction regulations promulgated - for rural electric of electric plant. The allowance is capitalized borrowers by REA. SMEPA is a generati n as a component of the cost of the electric 7 and transmission cooperative, providing power plant while it is under construction supply te eleven owner /jnembers who are rural Capitali1ation ceases when the cle7ctric plant electric distribution cooperative utilities which ./ is placed in service, or, in the case of electric provide electric power to customers in certam-generating stations and related facilities, at the areas of Mississippi. d date of commercial operation. ThE rates used in SMEPA maintams its accounting records.in determining the allowance vvje'd; from 5.0% [ accordance with the Federal Energy Regula-to 16.5% in 1981 ind 5.0%.to M.0% in 1980. i tory Commission s chart of accounts as modified deocnding on the sour of fui'absAl. and adopted by RE.' The more significant loventariec-Iriv'entorics are 'stited at average ~T accounting policies are described below. ~ cost Electric Plant ami Depreciation: - Electric Deferred C_harges: 'Co> ts of picliminary plant is uted at cost, which includes contract su5c[s for developm5nt of po<sible methods i j work, materials and direct labor, alMvance fo < . tc,6btain and deliver energy to fulfill ruembers' funds used duri,g construction and allocable , f, tore regt.ittmeids while costinuing to meet .s overhead costs. The cost of electric generatins Invironmental ' tandvds (including. feasibility stations and related racilities also includes costs - s 4tudies leading ~ to financing.necessary olant of tramin;; and production incurred, less . expenditures) are recorde(! as deferred charges. revenues earned prior to the date of commerc. i-+ w u I fj.onst ruct. ion of a project results f rom wch t-operation. 'furWys' tht m I eterred charges are. transferred d The provision for depreciat,on of electric i to the cost of the f acilit.ies. lf a ptelimmary + plant beg. ins when additions are placed.m servwe H is ab$tened, the costs, incurred'se survey or, in the case of electric generating stations, at written off. c the date of conimercial operation. The po-Bond issue cows are being amortized b'y the ? visions are computed on the stra1y,ht-k.ne method straigh t-h.ne method overthe term of the re'ated at the follow.ing annual composite rates: TN m in h N g h W d construction is capitalized. s i i Production plant 3.00% to 3.10?o, Patronage Cap.tal:,The bylaws oi9.dCM..: i Transm.ission plant 2.759, revenuis oYcr l rovide that any exceR of expenses and accumulated prior year deficits l' General plant and transportation l equipment. 4.00% to 25.00% I shall be treated as advances of capital by the y member patrons and eredited to <them on the l A At the time units of electric plant are retired, basis of their patronage.' SMFPA r'.cNis the their original cost and cost of removal, less net Interchange Power: salvage value, is charged td the allowance for electrical power received detM d mit an depreciation. Replac~ menW of electric plant c interchang(basis,W its chst av detcitnined __. _ _ _.2 _a ,/, j 7 u-_ 7n / s 8 g s

F 21 under various contractual arrangements. NOTE D-INVESTMENTS IN ASSOCI ATED Reclassification: Certain amounts for 1980 ORGANIZATIONS have been reclassified to conform to the 1981 presentation. investments in associated organizations I consist of-I { NOTE B - CONSTRUCTION WORK IN oecemt.er 31 l l PROCESS AND COMMITMENTS __ i 1981 1980 SMEPA is a 10% participant in the construc- "h "[ ",",',f. "p'[,'[c', tion and operation of a 2,500 megawatt nuclear Corporation 4FC) generating station known as " Grand Gulf Capital Term Certificates $5,583,186 $4,909,809 other 57,593 _ _. __82,892 Nuclear Station" (GGNS), consisting of two 1,250 megawatt generating units. The first $5,640,779 $4,992,701 unit is scheduled for commercial operation in 1983. The second unit is 20% complete and SMEPA is com.nitted to annual purchases ! commercial operation is anticipated for 1988. of Capital Term Certificates from CFC through l The first unit is scheduled for fuel loading in 1984. The amount to be purchased each year is l carly 1982. SMEPA's accumulated costs of determined by applying an average power cost j construction at December 31, 1981, are factor (as determined by CFC) to SMEPA's pre-

$ 265,000,000, including allowance for funds ceding year's gross operating revenue.The aggre-used during construction of $ 30,000,000, gate commitment remaining at December 31, SMEPA's share of the basic costs of construc.

1981, was estimated to be $3,400,000, of which tion, excluding allowance for funds used during $ 876,000 is estimated to be due in 1982 based construction, to complete the units are on 1981 revenues. Capital Term Certificates estimated to be approximately $ 16,000,000 bear interest at 3% and begin maturing in 2007. l for the first unit and $107,000,000 for the second unit. NOTE C-ELECTRIC UTILITY PLANT Electric utility plant consists of the following: December 31 1981 1980 / Intangible plant 459,285 $ 459,285 l Land and land rights 9,360,751 8,219,097 Production plant 205,347,564 205,312,248 Transmission plant 45,374,265 43,963,081 i Coal properties 23,282,752 21,905,009 Genaral plant and transpor-tation equipment 4,05_9,530 3,889,623 j ELECTnlC PLANT IN SERVICE 287.884,147 283,748,343 Construction work in process 267,597,784 91,237,467 $555,481,931 $374,985,810 Financial e; Statements L___

22 t t l NOTE E-LONG TERM DEBT t to refinance for 34 years. Based on the intention described in the ; Long term debt consists principally of mort-preceding paragraph, approximate annual I to the United States of maturities of long-term debt for the next five l l gage notes payable America acting through the Rural Electrification years are as follows: l Administration (REA) and the Federal 1982 $ 3,180,427 f l revenue bonds payable issued by Lamar County, Financing Bank (FFB) and pollution control i 1983 3,511,671 i 1984 3,758,432 ! Mississippi. i 1985 4,001,056 l Substantially all the assets, rents, revenues, ! 1986 4,206,089 ! and profits of the Association are pledged as l l collateral. Long term debt consists of the i SMEPA follows the practice of partially j following: l financing its construction costs through short-l o,comt,,, 3, ! term borrowings from the National Rural Utilities Cooperative Finance Corporation (CFC) l 1981 1980 ! and FFB pending long-term financing with REA, . [ in. m,$nt. j FFB, or other outside sources. Interest rates on ve j through 2009 s 42,874.583 s 44,321,710 j short term borrowings with CFC averaged ! 5% nE A mortyge notes payarse. j approximately 19.6% and 13.0% for the years h",*ob["20Er E 8 21.531,210 19,580,672 Mortege notes payatile to r F D ! tively. at intnest rates arvin9 rom At December 31, 1981, SMEPA had unused t 8 7r uei o],j14 loan commitments from FFB and REA of ,t, 1982 and 2015 436,094.000 255,259,000 $ 173,819,000 and $ 3,167,000, respectively. j t.. mar county, u,uimppi. At December 31, 1981, SMEPA has an ronution controi nonds: ! established line of credit for short-term l 1977 Series,4.6% to 6.125% due 1982 through 2007 38,G75.000 39.350,000

borrowing of $25,000,000 with CFC. There 1978 A Series,4.7% to 6.125%

j are no borrowings against this line at due 1982 through 2008 2,740,000 2,785,000

December 31,1981.

2t ut 8 980,000 990,000 SMEPA is required by mortgage covenants i 19eo c seri.. c5% or prime ! to maintain certain levels of interest coverage i and annual debt service coverage. The Asso-l t i O.24%.tfectnm.t ciation was in compliance with such require-ue i 2 2,4s5,000 2,455,000 ments at December 31,1981.

other

_ 2,341,:62 _ _ 2,917,927 l 547.691,0s5 307,659,309

Len current m.turities

. 3.180,427 _. _. 3,040,4c5 l NOTE F-INCOME TAXES k I ss44.siO.028 $364 si2.n44 l l SMEPA is exempt from United States income l SMEPA has the option on FFB promissory l taxes pursuant to Section 501(c)(12) of the j note advances to elect (subject to REA : Internal Revenue Code, which requires that at 4 ) l approval) interim maturity dates of not less ! least 85% of the Association's gross income l than two years nor more than seven years ! comes from its members. I after the date of the advance. At the date of i the advance or on the maturity of an interim NOTE G--PENSION PLAN l l advance, SMEPA may also designate that it ) desires a long-term maturity of 34 years after Substantially all of SM EPA's employees I the end of the calendar year in which the participate in the National Rural Electric Coop-i l advance was made. At December 31, 1981, crative Association (NRECA) Retirement and I SMEPA had $430,844,000 of advances Security Program. SMEPA make annual contri-l maturing in 1982 through 1986 which it intends butions to the plan equal to the amounts I i i J

f ~ 23 accrued for pension expense. in this master NOTE il-PURCilASED POWER REFUND multiple-employer plan, which is available to all member cooperatives of NRECA, the During 1981, SMEPA received a refund of accumulated benefits and plan assets are not $4,966,000 from Mississippi Power Company determined or allocated separately by individual as a result of a refund Mississippi Power Com-employer. SMEPA's pension expense for this pany received from a coal supplier. The refund i plan for the years ended December 31, 1981 j applied to amounts reported as purchased power and 1980 was $310,000 and $275,000, respec-l in 1980 and prior years. At the direction of tively. ! REA, the entire refund was repaid to members j based on patronage in the years involved and is I not reflected in the statement of operations. l i Board of Directors South AfississippiElectricPower Association Hattiesburg, hfississippi We have examined the balance sheet of South Afininippi Electric Pour Association as of December 31,1981 and the related statements of opera-tiens andpatronage capital and changes in financialposition for the year then ended. Our examination was 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 necenary in the circumstances. The financialstatements of South Afissinippi Electnc Power Anociation for the year ended December 31, 1980 were examinedby other auditors whose report dated Afarch 31,1981 exprened an unqualified opinion on those statements. In our opinion, the 1981 financialstatements referred to above present fairly the financialposition of South Afississippi Electric Power Associa-tion at December 31,1981 and the results ofits operations and the changes in its financialposition for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. vN Jackson, Missinippi April 8,1982

24 Milly KWH of Per-Sales cent A & G Expense 1.88 4.35 I Transmission Expense 2.87 6.64 d Other Power Supply 3.42 7.89 Other Prod. Expense 12.79 29.55 - Fuel 22.31 51.57 TOTAL 43.27 100.00 3 Milly KWH of Per-Sales cent l L_ Contract Maint. .21 .48 ,D p Other 1.92 4.45 L_ Payroll, Benefits & Taxes 1.99 4.61 / I Depreciation 3.31 7.65 Purchased Power 3.42 7.89 / Interest 10.11 23.35 _ Fuel 22.31 51.57 l TOTAL 43.27 100.00 \\ ) \\ These two pie charts show the utual 1981 empenses of the seneration and transmiss on system operated by sMEPA (without the ** Borderline" Trant actions). Chart A shoes these empenses broken down by maior Ecountmg catesones. Chart 8 shoes the same empenses broken down differently in s l order to clearly show the types of empenses. l )

r 25 Mills / KWH of Per-Sales cent A & G Expense 1.26 3.07 . _. - _ __ _ __ ___.-- - Tra nsmissio n E x pense 1.94 4.70 . Other Prod. Expense 8.58 20.87 - Other Power Supply 14.38 34.95 - - Fuel 14.97 36.41 TOTAL 41.13 100.00 l I l i 1 i l l / Mills / KWH of Per-r. Sales cent '- -- - ~ ~ - -- ]..- O t h e r 1.29 3.14 ~ ~ ~ ~, u__ Payroll, Benefits & Taxes 1.34 3.25 A l--- Depreciation 2.23 5.41 Interest 6.78 16.50 .--Purchased Power 14.38 34.95 - Fuel 14.97 36.41 l l TOTAL 41.13 100.00 1 i i f l I l Thew two pie charts show the actual 1981 empenws of the generation ! and transmmeon system operated by sMEPA (includmg the Borderline A N ' Transactions). Chart C shows thew empenws broken down by maior ! accounting categories. Chart D shows the same espenws broken down __.._I differently in order to clearly show the types of enpenws. 1981 Operating Expenses I

26 l l i

1. SMt PA's Own Gerutatmn & Tranunnsion $ntem 1975 1976 1977 1978 1979 1950 1981 Cmt of f uel Borned in SMEPAi Plants. g /MMBTU 131.15 160 12 177.03 175.30 181.87 196.72 222 91 Pn>ductior Costs and Purchased Power l Interchanged Power mills lKwit 16 60 20.29 22.42 22.15 21.54 23.78 27.34 reansmisuon O & M m th/ Awil 48

.49 .74 * .89 .87 1.34 1.73 A & G I spenses. mitis lAWil .59 61 .75 1.00 1.37 1.11 .95 Depreoation & Amort -mills / AWil 1.37 1.40 1.41 3 40 5.86 4 18 3 18 Interest. mills.' Awlt 1.12 1.25 1.08 5.57 13.10 11.57 9.91 Taies and othcts milk lAWit .11 .09 .35 27 .25 .16 .16 TOT AL. milk! AW H 20 27 24 13 26.75 3328 42.99 42.14 43 27 II. Borderline Sntem 1975 1976 1977 1978 1979 1980 19511 Purthased Power / Interchanged Powcr mithi AWil 20.55 23 39 27.39 28.09 30 61 33.94 36.73 f ransmnuon O & M. mills, K% H .01 .01 .02 .03 Depreoation a Amort. - mithlKW H .04 .04 .05 .05 .04 .02 01 Interest - mills / AW H .03 03 .06 06 .05 .03 01 TO T AL. milh! Aw H 20.61 23.47 27.52 28 23 30.70 33.99 36.75 111 T otal 53 stem 1975 1976 1977 1978 1979 1980 1981 Production Cmts and Purchased Power /interchangcJ Power-m th/ AwH 18.35 21 67 24.68 24 82 26.26 27.80 30.43 Transmmion O & M. milhlKWH .27 .27 .41 .50 .42 .81 1.16 A & G L apenses - milk lKWH .33 .34 .41 .55 .66 .68 .64 Depreciation and Amorritation - malls l AwH .78 .80 .79 1.89 2.83 2.53 2.14 Interest. milk l Aw H .64 .71 .62 3.10 6.30 7.00 6.65 Tases and Other. milkjKwH .06 .05 .19 15 .12 .10 .11 TOT AL millsjk%H 20.43 23.84 -27.10 31.01 36.59 38.92 41.13 4 i l Elements Of Cost i )

27 [ NI RGY SOURCLS. MWH 1975 197(2 121.7 1976 l'f 7L_ _L950 J25L_ Generated - Steam 514.545 479,771 779,572 1,228,110 1,282,352 1,857,173 2,124,364 -,540 20.117_ 233)O ]J J_1__ _ IJ')4 .615-5 Other Gerwr4 tion _ 6,501 521,016 485,617 799,689 1,252,040 1,290,327 1,838,967 2,124,979 Purthawd f irm 508/180 619,912 195,125 74,270( A) 78,150 83,801 314,740 florderline u?9),124___ _560)% __ Jt.Q,?2$ 4)f/27[Al 73,416_,__bb.64 2 93J1[ f,301,214 1,480,688 1,356,103 118,197 153,566 170,443 409,854 924,939[A)_l,1 6/81 964.70) ._1,0_80,126 Interchanged Power _ _.. _ _ _ _ _ _ _ _f,966,305 1,155,792 2,295,176 2,600,576 2.974,113 3,614,959 s T otal I,822,260 5All5 MWil Southwest Miwwppi f PA 165,478 185,646 241,433 254,388 254,046 266,854 252,113 Deue E PA 236,925 254,539 28),556 325,892 316,449 135,904 338,972 Pearl Rever Valley i PA 216,602 229,617 244,581 266,292 280,759 308,089 329,312 %ngeng kever l PA 466,085 501,061 545,442 562,480 543,743 598,207 613,529 Southern Pine t PA 536,285 578,605 611,838 642,224 634,255 678,457 669,113 Magnoha l PA 165,411 177,535 178,268 192,592 197,845 219,749 21'.217 ContiPA 334,848 406,035 442,I28 Y4 ion Valley 1 PA 68,553 168, 22 Coahorna L PA 5,258 77,279 Delta L PA 18,255 206,886 Twin County E PA 7,781 134,1.16 Mmiwppi Power Cornpany 215 175 8,372 3J52 Arkanus E lettric Cooperative Corp. _ _.. _ _. _ _ _ _1,927,178 2,113,490 2,243,868 2,561,945 2,909,142 3,i l 6,4 59 Total 1,787,041 IOI AL SY5fl M DI M AND-KW 417,139 445,817 473,251 520,432 619,162 742,680 960,538 ( A) Accounting Method thanged in 1978. I Comparative Summary

28 R['v l N U L 197j 12]6 1977 1975 192') 12hD 1981 _ u $4les of I ncray $ 36,5 81,399 $ 46,195, M8 $ 57,399,015 570,655,998 $95.9 38,9 3 5 1108,389,316 5146,381,767 Other 140,631 172,778 _] 72,% 8 2h?.147 1.1.11,575 1.010,411 1.089.141 T otal R evenue 36,721,030 46,367,966 57,671,903 70,945,145 97,050,830 109,399,767 147.470,907 I XPE NSE Open arain ! a renw - Prodot teon I uct Cmt 8,370,'i88 9,571,057 16,770,261 26,160,937 26,973,759 39,810,419 52,656,303 Other Pu=Juttaan f arenws 411,795 452,645 458,811 1,201,621 1,587,006 1,972,854 2,290,904 Pur hawd Power 23,806,259 31,492,195 34,429,746 27,721,339 37,582,696 37,511,186 50,556,392 s T ranvn rwon 172,436 207,643 382,677 447,997 451.314 1,438,895 2,923,166 (r.nsumer Amnunts 10,243 9,504 12,342 10,679 13.160 19,932 27,721 Adm.mstratne & General 552J22____61lJ 72___. _ $ 14.011 J.17_5.7] 5 f.611,516.__1,846,4 5 7 2,086,703_ T otal Orerati. n I art nw 33,328,950 42,344,716 52,871,848 56,758,308 68,219,751 82,599,743 110.541,189 hetenante E aren* Po *1us t en 208,428 192,450 494,113 604,850 1,138,781 1,571,563 1,508,449 T r ansm m.on 335,783 342,217 488,335 637,655 616,613 922.129 1,149.140 Gec' al Plant _ 1330l _ _ _ 26,619 J LijQ___ _4)l92 59.795 100,947 13t882_ Toial %ntenanc e i spenw $ 58,112 561,286 1,019,558 1,286,297 1,815.099 2,594,679 2,793,471 I)ccreuat uin 1,371,296 1,504,568 1,648,309 4,224,653 7,225,336 7,362.869 '.524,662 I a s es 64,433 71,493 96,883 161,134 219,556 233,915 2h6,360 Interni I. = rense (Neil 1 495/NO If 76,134 IJ95,200 7,362f 57 16,495]rJ4 20,658,725 24,264,944_ T ot al i mren* 36,817 f,81 46,158,197 57 53 1798 69j9 3,049 93,974,836 113,449,931 145,410p26_ 1 N1 T OPL R ATING M SRGIN5 (95,851) 209,769 140,105 1,152,096 3,075,994 (4.050,164) 2,060,281 NON OPE R AllNG M ARGIN5 53,961 52,795 82,130 138,308 337,828 687,885 751,273 NL1 M ARGIN5 (Lou) 1 (41,890) $ 262,5c 4 $ 222.235 5 1,290,404 5 3,413,822 5 ( 3,362,279) $ 2,811,554 i l l Comparative Operating Costs (

l MEMBER SYSTEMS BOARD OF DIRECTORS I I h .d ASST. TO THE INTERNAL AUDITOR i i. GENERAL MANAGER 1 GENERAL MANAGER f i I ___.._______.____.I y--- i i ii i MANAGER OF i MANAGER Of i }[ h MANAGER OF l l MANAGER OF ilj l FINANCE & ACCTNG. l l LAND j ENGINE E RING PRODUCTION l E NGINE E RING PRODUCTION FINANCE & ACCTNG. LAND DE PART Mt. N T DEPARTMENT DEPARTMENT DEPARTMENT 12 employees 122 employees l to employees 2 employees ! l 1 Manager 1 Manager 1 Manager 1 Manager 4 Engineers I Dir.of f uels I Chief Accountant 1 R/W Agent 3 Draf tsmen 35 Plant Moselle l 1 Accountant 1 Construction Supervisor 85 Plant Morrow l 7 Accounting Clerks 1 Work Order & Billing Clerk 2 Coop 5tudents b l' I i

!------7 p

I f MANAGER OF MANAGER OF _ d i _- MANAGER OF STAFF j l SUPPORT SERVICES j TR ANSMISSION j i ENVIRONMENTAL AFF. ATTORNEY { l t SUPPORT SERVICES TR ANSMISSION ENVIRONMENT AL AFF. STAFF DEPARTMENT DEPARTMENT DEPARTMENT ATTORNEY 19 employees 48 employees 1 emplo)ce 1 employee 1 Manager 1 Manager 1 Manager 1 Attorney 2 Personnel 6 Control Center 3 Purchasing i R/W Maintenante 2 Computer Analysts 3 Vehale Mam. 2 Material Clerks 2 Building & Grounds 1 job Trainmg & Safety 15 Eine Section 1 Office Hilper 20 Elettro;ncs & 7 Secretaries Substations General Counsel John K. Keye5 Independent Auditor 5 % "e tn,:,:r., Organization l

.a,. : 1-l - "4-3 3' ~

j.. "J,Ni,.;.-

l,, ge' a a. _ f.. . ~ #: ,ir-j.,'- l f,,.,;a C. C. Clark, V6ce President. Magnolia Electne Power Assn., L. G. Pierce. !.=

v..

Assistant Secretary - Dixie Electric l ' .g '2 f-Power Assn.. D. R. Ware. Secretary - Singing River Electric Power Assn.. _ hML 'i..,',.. N '.%f-;g, sj, ). i .ej ) 3,k.. W. W. Bond, President. Pearl Ries s.. .h 1 *' ~ M/, ',: 8K#y, Valley Electric Power Assn. ..hv.3 jQr,1* " *h.. . J ;.. ; d;;.. My 1 J%'fy f:~L,... .T

  • ;Y

_ f 'C'-: ' L,L .,. -[. .' gf ? -r ' ll.. 1 : .a l5 L '. Y, i., M - r f +.. *Jh' : y ., VR.j-}.,.}Ns v ~e

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.- % W N yd f ^ i

  1. WY/Q ! '

' lf ap (Standing) ^ ', 1 L. C. Spencer Delta Electric Power g.4 Asan., Jack Ware - Singing River f Electne Power Assn. (Seated) llenry C. Waterer, Jr. Delta Electric i Power Assn., llenty L. Thomas - l '(,' 'p-i g-Coast Electne Power Assn., Blaine a 'f A

11. Eaton. Southern Pine Electrte Power Assn., James A. Rester - Coast Electric Power Assn.

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