ML20055A299
| ML20055A299 | |
| Person / Time | |
|---|---|
| Site: | Crystal River  |
| Issue date: | 07/12/1982 |
| From: | Mardis D FLORIDA POWER CORP. |
| To: | Harold Denton Office of Nuclear Reactor Regulation |
| References | |
| 3F-0782-04, 3F-782-4, NUDOCS 8207160104 | |
| Download: ML20055A299 (18) | |
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,3-cwe NNNI Power m........
July 12,1982
- 3F-0782-04 File: 3-0-3-a-3 Mr. Harold R. Denton, Director Of fice of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, D.C. 20555
Subject:
Crystal River Unit 3 Docket No. 50-302 Operating License No. DPR-72 Annual Financial Reports for Florida Power Corporation and Participants
Dear Mr. Denton:
In our letter of May 12, 1982, Florida Power Corporation (FPC) submitted the 1981 Annual Financial Reports for Florida Power Corporation and Participants (co-owners of Crystal River Unit 3). At that time, FPC had yet to receive the 1981 Annual Financial Report for Sebring Utilities Commission. FPC has now received this infortnation and hereby submits the aforementioned report in compliance with 10CFR50.71(b) and Regulatory Guide 10.1
" Compilation of Reporting Requirements for Persons Subject to NRC Regulations."
Should you have any questions concerning this submittal, please contact this office.
Very truly yours, Y
Mb David G. Mardis Acting Manager Nuclear Licensing 06Y BAH:mm S
Enclosure cc:
Mr. J. P. O'Reilly, Regional Administrator I
lO Of fice of Inspection & Enforcement U.S. Nuclear Regulatory Commission 101 Marietta Street N.W., Suite 3100 Atlanta, GA 30303 8207160104 820712 PDR ADOCK 05000302 I
PDR General Office 3201 inirty fourth sueet soutn. P O Box 14042. St Petersburg. Forida 33733 e 813-866-5151
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WICKS, BROWN & WILLIAMS CERTIFIED PUBLIC ACCOUNTANTS o
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SEBRING ITTILITIES COMMISSION
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SEBRING, FLORIDA REPORT OF EXAMINATION AS OF AND FOR THE YEARS ENDED SEPTEMBER 30, 1981 AND 1980
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Certihed Pubhc Accountants (Wicks, Brown, Williams &Co)
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140 South Commerce Avenue. Post Ot*ce Boa 587, Setxn g Fionda 33870 -(813) 382-1157 Charles F. Wo 5 (RefJed)
Lake Placid Office
[ J Rchard Brown Frank L Walams (813)465-2835 Constance P Athos Hobert P Marchewha Avon Park Office
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Sebring Utilities Commission (813)453-7525 debring, Florida
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We have examined the balance sheets of Sebring Utilities Commission as of Sept ember 30, 1981 and 1980, and the related statements of retained earnings, sources.of funds used for construction, and income for the years then ended.
Our examinations were
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made in accordance with generally accepted auditing standards and, accordingly, included such tests of the account ing records and such other auditing procedures as we considered necessary in the circumstances.
As discussed in Note 10 to the financial statements, the Commission has included in income for 1981 and 1980 ca'sh set t lements which may be required to be repaid if certain conditions are met.
Management and counsel believe that the requirement of such
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repayment in a substant ial amount is unlikely, but the ultimate outcome of this uncertainty cannot present ly be determined.
No provision for any liability that may result has been made in the financial statements.
In our report dated January 30, 1981, our opinion on the 1980 financial s t ateme nt s was qualified as being subject to the effects on the 1980 financial statements of such ad j u s t ment s, if any, as might have been required had the ou t c ome c,f t he events described
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in Not e 10 - Power Project been known. The sale of the 1981 bond issue provided the financing necessary to ult imately realize the value of the assets.
Accordingly, presented herein, is dif ferent our present opinion on the 1980 financial statements, as
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from that expressed in our previous report.
In our opinion, subject to the the ef fect s on the 1981 and 1980 financi al stat ement s
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of such adjustment s, if any, as might have been required had the outcome of the uncert ainty referred to in the second paragraph been known, the financi al statement s examined by us present fairly the financial position of the Sebring Utilities Commission at September 30, 1981 and 1980, and the results of its operations and sources of funds
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used for construction for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis.
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Wicks, Brown & Williams & Co.
January 29, 1982
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SEBRING IfrILITIES COMMISSION BALANCE SHEETS SEPTEMBER 30, 1981 AND 1980 1981 1980 E
ASSETS 3
PROPERTY, PLANT AND EQUIPMENT, at cost:
Property, plant and equipment in service
$ 21,246,715
$19,702,282 Less: Accumulated depreciation
(
7,180,024) ( 6,453,154)
Total 14,066,691 13,249,128 Construction work in progress 6,765,531 55,421 Nuclear fuel, at amortized cost 346,368 281,229 Total property, plant and equipment 21,178,590 13,585,778 RESTRICTED ASSETS:
Bond service fund 23,903,425 Reserve account 10,542,643 Emergency 6 f acilities account 902,528 Construction fund 42,748,000 7,842 Sinking fund 786,388 Renewal and replacement fund 391,300 Accrued interest rece ivab le 3,538,152 1,874 Total restricted assets 81,634,748 1,187,404 CURRENT ASSETS:
Cash 26,748 113,938 Accounts receivable, net of allowance for doubtful accounts of $59,550 for 1981 and $42,583 for 1980 1,048,684 903,896 Inventories of fuel and materials 506,748 469,934 Prepaid expenses 60,954 52,677 Total current assets 1,643,134 1,540,445 DEFERRED CllARGES:
Unamort ized bond expense 4,171,904 173,880 Other deferred charges 426,901 Tot al de ferred charges 4,171,904 600,781 TOTAL ASSETS
$108,628,376
$16,914,408 I
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I ii 1981 1980 LIABILITIES AND CAPITALIZATION ICAPITALIZATION:
Long-t erm debt :
Revenue bonds payable
$ 92,750,N0
$ 8,160,000 Unamortized discount
(
2,776,240) (
99,603)
I Revenue certificate payable, less amount due current ly 100,000 150,000 Customer deposit s 521,632 476,434 Obligation under capital lease 65,886 82,792 I
Accrued interest 5,775,846 Tot al long-term debt 96,437,124 8,769,623 Equity:
I Contributed by City of Sebring 712,648 712,648 Retained earnings 8,474,941 4,840,170 Total equity 9,187,589 5,552,818 I
Contributions in aid of construction 984,833 747,580 Tot al capitalization 106,609,546 15,070,021 ICURRENTLIABILITIES:
Current portion of revenue certificate 100,000 50,000 Current obligation under capital lease 35,673 21,598 Account s payable 1,468,227 1,110,366 I
Accrued pension liability 199,549 62,232 Other accr ;ed expenses 215,381 100,191 Total 2,018,830 1,344,387 i
Bond anticipation revenue certificate 500,000 Tot al current liabilities 2,018,830 1,844,387 I
TOTAL LIABILITIES AND CAPITALIZATION
$108,628,376
$16,914,408 I
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I The notes to the financial statements are an integral part of this statement.
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I SEBRING LJrILITIES COMMISSION STATEMENTS OF RETAINED EARNINGS I
FOR THE YEARS ENDED SEPTEMBER 30, 1981 AND 1980 RETAINED EARNINGS - BEGINNING OF YEAR:
As previously reported
$4,840,170
$4,548,097 Adjustment (Note 3)
(
97,687)
I As restated 4,840,170 4,450,410 Net income for the year 4,102,641 804,945 Transfers to the City of Sebring:
Cash 215,000 200,000 I
Receivables balances 252,870 215,185 467,870 415,185
$8,474,941
$4,840,170 I
RETAINED EARNINGS - END OF YEAR I
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I The notes to the financial statements are an integral part of this statement.
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SEBRING ITTILITIES (X)MMISSION STATEMENTS OF SOURCES OF FUNDS USED FOR CONSTRUCTION I
FOR THE YEARS ENDED SEPTEMBER 30,1981 AND 1980 1981 1980 SOURCE OF FUNDS:
Funds derived from operations:
Net income for the year
$ 4,102,641
$ 804,945 I
Add:
Items charged to net income not requiring (providing) cash outlay Gain on refunding bonds
(
2,181,567)
I Deprec iat ion 738,834 628,860 Amortization of nuclear fuel 84,480 36,605 Bond expense and discount amo rt izat ion 17,550 35,107 I
Total funds derived from operations 2,761,938 1,505,517 Decrease in net current assets 21,754 842,760 Funds from financing and other sources:
Net proceeds from sale of revenue bonds 85,801,856 I
Accrued interest on bonds payable 5,775,846 Obligation under capital lease, less current port ion
(
16,906) 82,792 Bonds redeemed
(
7,904,067)
(
120,000)
I Repayment of revenue certificate
(
50,000)
Decrease in deferred charges 426,901
(
349,614)
Net (increase) decrease in restricted assets
( 80,447,344) 282,436 I
Payments and commitments to the City of Sebring
(
467,870)
(
415,185)
Contributions in aid of construct ion 237,253 133,650 Customer deposits 45,198 49,835 Cain on refunding bonds 2,181,567 I
5,632,434
(
386,086)
$ 8,416,126
$1,962,191 1
FUNDS USED FOR CONSTRUCTION CHANCES IN NET CURRENT ASSETS:
I Increase (decrease) in current assets:
Cash (S
87,190)
S 76,149 Accounts receivable 144,788 147,756 Inventories of fuel and materials 36,814 66,553 Prepaid expenses 8,277 6,504 Decrease (increase) in current liabilities:
Current obligation under capital lease
(
14,075)
(
21,598)
Accounts payable
(
357,861)
(
553,549)
Accrued pension liability
(
137,317)
(
34,642)
Other accrued expenses
(
115,190)
(
29,933)
Bond anticipatisn revenue certificate 500,000
(
500,000)
DECREASE IN NET CURRENT ASSETS
($
21,754)
($ 842,760)
The notes to the financial statements are an integral part of this statement.
SEBRING ITTILITIES COMMISSION STATEMENTS OF INCOME FOR THE YEARS ENDED SEPTEMBER 30,1981 AND 1980 f
1981 1980 OPERATING REVENUE:
f Sales
$ 9,220,4 35
$7,539,473 Gas supplier recovery 137,520 310,494 Other 107,622 159,287 Total operating revenue 9,465,577 8,009,254 OPERATING EXPENSES 8,443,129 6,767,449
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OPERATING INCOME 1,022,448 1,241,805 IlffEREST INCOME (After credit to construction costs
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of $1,400,525 in 1981 and $9,097 in 1980) 3,579,138 101,748 4,601,586 1,343,553
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INTEREST EXPENSE (Af ter charge to construction costs
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of $2,428,232 in 1981 and $42,543 in 1980) 2,680,512 538,608 INCOME BEFORE EXTRAORDINARY ITEM 1,921,074 804,945 EXTRAORDINARY ITEM:
Gain on refunding bonds 2,181,567
. NET INCOME
$4,102,641
$ 804,945 l
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The notes to the financial statements are an integral part of this statement.
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SEBRING UTILITIES C0KMISSION NOTES TO Tile FINANCIAL STATEMENTS c
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Note 1 - The Sebring Utilities Commission is an independent speci al dist. ict that is incorporated under the laws of the State of Florida.
Note 2 - Summary of Significant Accounting Policies:
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The financial statements have been prepared on the accrual basis of accounting based upon the Uniform System of Accounts prescribed for electric utilities by the Federal Energy Regulatory Commission and upon the Uniform System of Accounts for Water Utilities issued by the National Association of Regulatory Utility Commissioners.
Propert y, plant and equipment are stated at cost.
Construction costs include payroll and the related costs, such as taxes, pensions and other f ringe benefit s, and allocation of indirect ch arge s for engineering, supervision and transportat ion expenses. Construction period interest is capitalized.
The assets are depreciated
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over estimated useful lives ranging from 5 to 50 years, using the straight-line method of depreciation. A summary of property, plant and equipment and accumulated depreciation is included in Note 11.
Maintenance is charged with the cost of repairs of property, and the plant ac count s are charged with the cost of renewals and replacements.
Puclear fuel is carried in the electric plant ac count s at cost, net of estimated energy consumed. The amount consumed is charged to nuclear fuel expense.
Amortization of energy consumed has been determined by the unit-of product ion method, based on engineering estimates.
Nuclear fuel expense does not include a provision for salvage value nor a provision fo r future disposition costs.
J Restricted fund investments are carried at cost.
Unbilled utility revenues are accrued based on the estimated usage between the last
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meter reading dates and year end.
Inventories are stated at the lower of cost or market. Cost is determined generally on an average cost method, except for fuel inventory costs, which are determined using the last-in, first-out (LIFO) method.
Reu sab le materials that have been removed from service are included in inventories at the carrying value of similar new materials.
a Issuance discount and expenses related to the bonds payable are de f e r red and amort ized over the life of the bonds on the bonds outstanding method.
SEBRING UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
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Note 3 - Prior Period Adjustments:
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Due to a mathematical error in computing unbilled water revenue at September 30 1979, a prior period adjustment to retained earnings has been recorded. The effect of the adjustment is a $97,687 decrease in retained earnings as of October 1,1979.
Note 4 - Long-Term Debt:
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Revenue bonds outstanding at September 30, are as follows :
1981 1980 Series of 1978, 5.5% to 6.8% due serially to 2000
$ 8,160,000 l
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Series of 1981, 8.25% to 11.25% due in varying I
amount s from 1981 through 2011
$92,750,000 $
In September, 1978, the commission provided for advance refunding on the Series 1964,1973 and 1975 revenue bonds (Refunded Bonds) by the sale of $8,400,000 Utilities System Revenue Bonds (Series 1978) and Utilities System Special Obligation Bonds (Series 1978A). From the proceeds of the sale of the two issues, and other sources, sufficient monies were deposited into irrevocable escrow accounts, and invested in United States obligations that will provide suf ficient funds for the payment of the maturing principal and interest on the Series 1964,
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1973 and 1975 outstanding revenue bonds.
In March 1981, the Series 1981 Bonds were issued and a portion of the proceeds was used to refund the Series 1978 Bonds in same manner that the 1978 Bonds refunded prior issues, as described above. The
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Refunded Bonds have been treated as extinguished debts.
The Utilities System Revenue Bonds (Series 1978) and the Series 1981 Bonds are
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secured by a pledge of the net revenues of the Commission.
The Utilities System Special Obligation Bonds (Series 1978A) are secured by a pledge on the interest to be paid on the escrow funds.
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SEBRING UTILITIES 00HMISSION NOTES TO THE FINANCI AL STATEMENTS s
Not e 4 - Long-Te rm Debt (Continued):
The maturity schedule for the Ut ilit ies System Revenue Bonds (Series 1981) i s as follows:
Tot al Year Ending Principal Principal
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L October 1 Amount Interest and Interest 1981 S
35,000 5,775,000
$ 5,810,000 1982 35',000 9,897,000 9,932,000 1983 40,000 9,894,000 9,934,000 1
1984 640,000 9,891,000 10,531,000 1985 695,000 9,837,000 10,532,000 1986 755,000 9,775,000 10,530,000 1987 825,000 9,706,000 10,531,000 I
1988 905,000 9,628,000 10,533,000 l
1989 990,000 9,541,000 10,531,000 l
1990 1,090,000 9,443,000 10,533,000 I
1991 1,200,000 9,333,000 10,533,000 1992 1,320,000 9,210,000 10,530,000 1993 1,460,000 9,07:,000 10,531,000 1994 1,625,000 8,907,000 10,532,000 I
1995 1,805,000 8,724,000 10,529,000 1996 2,010,000 8,521,000 10,531,000 1997 2,235,000 8,295,000 10,530,000 1998 2,490,000 8,043,000 10,533,000 1999 2,765,000 7,763,000 10,528,000 2000 3,080,000 7,542,000 10,523,000 2001 3,415,000 7,113,000 10,528,000 2002 3,795,000 6,738,000 10,533,000 2003 4,210,000 6,320,000 10,530,000 2004 4,675,000 5,857,000 10,532,000 2005 5,190,000 5,343,000 10,533,000 2006 5,760,000 4,772,000 10,532,000 2007 6,395,000 4,138,000 10,533,000 2008 7,095,000 3,435,000 10,530,000 2009 7,875,000 2,654,000 10,529,000 2010 8,745,000 1,788,000 10,533,000 2011 9,595,000 936,000 10,531,000 I
$92,750,000
$227,890,000
$320,541,000 The revenue ce rt i f icat e is payable $50,000 annually, plus int erest at 7.25%.
The ce rt i fi cat e is subordinate to the revenue bonds.
The bond anticipation revenue certificate was payable March 29, 1981, plus interest at 7%.
The certificate was subordinate to the revenue bonds and revenue certificate.
Proceeds from the 1981 bond issue were used to pay of f the certificate.
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SEBRING UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS N:ta 5 - Employee Pension Plan:
The Commission has a pension plan covering the majority of its employees. Pension expense amounted to $211,173 and $87,471 in 1981 and 1980, respectively, including amortization of prior service costs over forty years. At September 30, 1981 and
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1980, the actuarial value of assets of the pension fund is in excess of the actuarially computed value of vested benefits.
Unfunded prior service cost is approximately $358,700 and $353,700 at September 30, 1981 and 1980, respectively.
Nate 6 - Capital Leases:
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During 1980, the Commission leased computer equipment under a capital lease which expires in 1985. During 1981, the Commission leased a word processor under a capital lease which expires in 1985. Subsequent to September 30, 1981, the Commission purchased the leased computer equipment for an additional cost of
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$118,213. The balance owed on the lease at the time of purchase was $82,792.
Following is a schedule of future minimum lease payments for the word processor by years:
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Fiscal Year Minimum Payment 1982
$ 8,858 1983 8,858
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1984 8,858 1985 8,858 Total 35,432 Less: Amount representing interest 16,665 Present value of minimum lease paynents
$18,767 Depreciation of leased property under capital leases is $18,627 and $3,600 in 1981 and 1980, respectively, and interest expense is $12,127 and $1,327 for 1981 and 1980, respectively. The plant accounts include $131,448 and $107,990 capitalized cost and $22,227 and $3,600 accumulated depreciation as of September 30, 1981 and 1980 respectively.
Note 7 - Insurance in Force:
Coverage Limits Workmen's Compensation & Employer's Liability 100,000 Automobile Bodily Injury - Each Person
$1,000,000
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- Each Occurrence
$1,000,000 Property Damage - Each Occurrence 100,000 General Liability
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Bodily Injury - Each Occurrence
$1,000,000 Property Damage - Each Occurrence 100,000 Fire, Lightning and Extended Coverages Listed Items - 80% Co-Insurance
$4,626,000
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Listed Items - 100% Co-Insurance
$2,558,050 Boiler and Machinery - Each Accident
$8,000,000
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SEBRING UTILITIES COMMISSION NOTES TO THE FINANCI AL STATEMENTS Note 8 - Budget Analyses:
1981 1980 Budget Actual Budget Actual Operating revenue
$9,330,000
$9,328,057
$6,728,400 $6,009,254
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Operating expense 6,514,590 7,553,695 4,791,567 6,101,984 Net interest (income) expense 613,500 (
151,396) 437,600 401,753 Net income before depreciation and amort ization 42,201,910
$1,925,758
$1,499,233 $1,505,517 Variance over (under) budget
($ 276,152) 6,284 Note 9 - Rate Revisions:
The Commission increased electric rates 2 mills ef fective December 1,1979, and 9 mills effective January 1, 1981. Water rates were increased 25% ef fective Novembe r 1, 1979. Water and electric rates were agcin raised ef fective June 1, 1981 in accordance with newly adopted rate schedules.
Note 10 - Contingencies and Commitment s:
Gas Supplier Recovery - The Commission, together with seven other municipal utilities, asserted a joint claim against a natural gas supplier for damages resulting from breach of agreements to supply natural gas.
The damages were incurred during several prior fiscal years. As a result of a settlement, the Commission received $137,520 in fiscal 1981 and $310,494 in fiscal 1980 which is included in incore for the respective years. Under the settlement agre eme nt, if the supplier provides sufficient gas deliveries prior to cert ain dates, the Commission may have to repay all or part of the cash received. Management and counsel believe that the requirement of such repayment in a substantial amount is unlikely.
No provision for eny liability that may result has been made in the financial statements.
g Power Project - Included among other deferred charges in the balance sheet as of September 30, 1980, are investments in a large slow-speed diesel generation plant amounting to approximately $363,000. The investments are primarily in design, engineering and contract procurement. The ultimate realization of the $363,000 invested at September 30, 1980, and similar advance costs incurred subsequent to that date was contingent on the successful sale of the 1981 bond issue.
In March of 1981, the revenue bonds were sold.
The Commission estimates the total direct construction cost of the installation will amount to approximately $60,000,000, a
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W SEBRING UTILITIES COMMISSION NOTES TO Tile FINANCI AL STATEMENTS Note 11 - Property, Plant and Equipment in Service:
September 30, 1981 1980
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Accumulated Accumu lat ed Cost Depreciation Cost Depreciation Land S
218,250 S
218,250 S
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Electric generation plants 7,938,089 3,303,557 7,817,089 3,106,631 Electric transmission system 2,049,853 270,851 1,876,494 206,671
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Electric distribution sy s t em 6,302,503 1,610,478 5,490,222 1,406,437 Water system 3,535,279 1,428,661 3,338,647 1,296,268
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Equipme nt 1,097,865 531,572 857,987 407,363 Storage buildings 104,438 34,905 103,593 29,784 S21,246,277
$7,180,024 S19,702,282
$6,453,154
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SUPPLEMENTARY FINANCIAL INFORMATION Our examinations were made for the purpose of forming an opinion on the basic financial p
otctements taken as a whole. The supplementary schedules of income for the electric and L
w:ter systems are presented for purposes of additional analysis and are not a required part of the basic financial statements.
Such information has been subjected to the auditing procedures applied in the examinations of the basic financial statements and, in our
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epinion, are fairly stated in all material respects in relation to the basic financial etctements taken as a whole.
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1 Wicks, Brown, Williams & Co.
Jcnuary 29, 1981
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SEBRING 17FILITIES COMMISSION SUPPLEMENTARY SCHEDULES OF INCOME ELECTRIC SYSTEM l
FOR THE YEARS ENDED SEPTEMBER 30,1981 AND 1980 l
1981 1980 1
OPERATING REVENUE:
Sale of electricity
$8,220,880
$6,772,968 Interdepartmental sales 77,990 70,547 I
Gas supplier recovery 137,520 310,494 Miscellaneous sales and service 94,575 79,719 Total operating revenue 8,530,965 7,233,728 OPERATING EXPENSES:
Generation and transmission:
Fuel 2,087,715 1,929,347 I
Purchased power 2,666,394 2,360,021 Operation and maintenance 1,034,273 993,675 Transmission system operation and maintenance 401,466 75,667 I
Distribution system operation and maintenance:
Operating expenses 107,158 34,415 Maintenance expenaes 193,358 141,843 Depreciation 285,591 212,264 I
Ceneral and administrative expenses 836,103 439,751 State utility taxes 98,814 72,791 Total operating expenses 7,710,872 6,259,774 OPERATING INCOME
$ 820,093
$ 973,954 I
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SUPPLEMENTARY SCHEDULES OF INCOME WATER SYSTEM FOR THE YEARS ENDED SEPTEMBER 30, 1981 AND 1980 I
1981 1980 OPERATING REVENUE:
Sale of water
$921,565
$766,505 Interdepartmental sales 900 3,300 I
Miscellaneous sales and service 12,147 5,721 Total operating revenue 934,612 775,526 OPERATING EXPENSES:
Product ion operat ion and maint enance:
Electricity for pumping 77,990 70,547 Operating expenses 56,707 53,884 Maintenance expenses 12,634 26,903 Transmission and distribution operation and maintenance:
Operating expenses 28,959 21,931 Maintenance expenses 90,258 47,034 Depreciation 154,070 131,258 General and administrative expenses 311,639 156,118 I
Total operating expenses 732,257 507,675 OPERATING INCOME
$202,355 S267,851 I
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